Document:

Second Lien Credit Agreement dated as of June 14, 2007

 Exhibit 10.2 
  

 $165,000,000 
 SECOND LIEN CREDIT AGREEMENT 
 Dated as of June 14, 2007 
 among 
 GOLDEN NUGGET, INC.,

 as Borrower, 
 the Lenders
referred to herein, 
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 as Administrative Agent and Collateral Agent, 
 and 
 BANK OF AMERICA, N.A., 
 as Syndication
Agent, 
  

 WACHOVIA
CAPITAL MARKETS, LLC, 
 as Sole Lead Arranger and Sole Bookrunner 
  

 Cahill Gordon & Reindel
LLP 
 80 Pine Street 
 New York, New York 10005 
  

 TABLE OF CONTENTS 
  

					
	Section	 	 	  	Page
	ARTICLE I	  	
		
	DEFINITIONS AND ACCOUNTING TERMS	  	
			
	 SECTION 1.01.
	 	Certain Defined Terms	  	1
	 SECTION 1.02.
	 	Computation of Time Periods; Other Definitional Provisions	  	22
	 SECTION 1.03.
	 	Accounting Terms	  	23
		
	ARTICLE II	  	
		
	AMOUNTS AND TERMS OF THE ADVANCES	  	
			
	 SECTION 2.01.
	 	The Advances	  	23
	 SECTION 2.02.
	 	Making the Advances	  	23
	 SECTION 2.03.
	 	[Reserved]	  	24
	 SECTION 2.04.
	 	Repayment of Advances	  	24
	 SECTION 2.05.
	 	[Reserved]	  	24
	 SECTION 2.06.
	 	Prepayments	  	25
	 SECTION 2.07.
	 	Interest	  	27
	 SECTION 2.08.
	 	Agents’ Fees	  	27
	 SECTION 2.09.
	 	Conversion of Advances	  	28
	 SECTION 2.10.
	 	Increased Costs, Etc.	  	28
	 SECTION 2.11.
	 	Payments and Computations	  	30
	 SECTION 2.12.
	 	Taxes	  	32
	 SECTION 2.13.
	 	Sharing of Payments, Etc.	  	34
	 SECTION 2.14.
	 	Use of Proceeds	  	35
	 SECTION 2.15.
	 	Defaulting Lenders	  	35
	 SECTION 2.16.
	 	Evidence of Debt	  	35
		
	ARTICLE III	  	
		
	CONDITIONS OF LENDING	  	
			
	 SECTION 3.01.
	 	Conditions Precedent to the Extension of Credit	  	36
	 SECTION 3.02.
	 	[Reserved]	  	41
	 SECTION 3.03.
	 	[Reserved]	  	41
	 SECTION 3.04.
	 	[Reserved]	  	41
		
	ARTICLE IV	  	
		
	REPRESENTATIONS AND WARRANTIES	  	
			
	 SECTION 4.01.
	 	Representations and Warranties of the Loan Parties	  	41
	 SECTION 4.02.
	 	Survival of Representations and Warranties, Etc.	  	49

  

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	 	 	 	  	Page
	ARTICLE V
		
	COVENANTS OF THE LOAN PARTIES	  	
			
	 SECTION 5.01.
	 	Affirmative Covenants	  	49
	 SECTION 5.02.
	 	Negative Covenants	  	54
	 SECTION 5.03.
	 	Reporting Requirements	  	64
	 SECTION 5.04.
	 	Financial Covenants	  	67
		
	ARTICLE VI	  	
		
	EVENTS OF DEFAULT	  	
			
	 SECTION 6.01.
	 	Events of Default	  	68
	 SECTION 6.02.
	 	[Reserved]	  	71
	 SECTION 6.03.
	 	Borrower’s Right to Cure	  	71
	 SECTION 6.04.
	 	Parent Capital Contribution. .	  	72
		
	ARTICLE VII	  	
		
	THE AGENTS, ETC.	  	
			
	 SECTION 7.01.
	 	Authorization and Action	  	73
	 SECTION 7.02.
	 	Agents’ Reliance, Etc.	  	73
	 SECTION 7.03.
	 	Wachovia and Affiliates	  	73
	 SECTION 7.04.
	 	Lender Credit Decision	  	74
	 SECTION 7.05.
	 	Indemnification	  	74
	 SECTION 7.06.
	 	Successor Agents	  	74
	 SECTION 7.07.
	 	Administrative Agent May File Proofs of Claim	  	75
	 SECTION 7.08.
	 	Collateral and Guaranty Matters	  	75
	 SECTION 7.09.
	 	Other Agents, Etc.	  	76
	 SECTION 7.10.
	 	Appointment of Supplemental Collateral Agents	  	76
		
	ARTICLE VIII	  	
		
	MISCELLANEOUS	  	
			
	 SECTION 8.01.
	 	Amendments, Etc.	  	77
	 SECTION 8.02.
	 	Notices, Etc.	  	78
	 SECTION 8.03.
	 	No Waiver; Remedies; Entire Agreement	  	79
	 SECTION 8.04.
	 	Costs and Expenses	  	79
	 SECTION 8.05.
	 	Right of Set-off	  	81
	 SECTION 8.06.
	 	Binding Effect	  	81
	 SECTION 8.07.
	 	Successors and Assigns; Participations	  	81
	 SECTION 8.08.
	 	Execution in Counterparts	  	83
	 SECTION 8.09.
	 	[Reserved]	  	83
	 SECTION 8.10.
	 	Confidentiality	  	84
	 SECTION 8.11.
	 	Release of Collateral, Etc.	  	84
	 SECTION 8.12.
	 	Patriot Act Notice	  	84
	 SECTION 8.13.
	 	Gaming Authorities	  	84

  

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	 	 	 	  	Page
	 SECTION 8.14.
	 	[Intentionally Omitted].	  	84
	 SECTION 8.15.
	 	No Advisory or Fiduciary Responsibility	  	84
	 SECTION 8.16.
	 	Jurisdiction, Etc.	  	85
	 SECTION 8.17.
	 	GOVERNING LAW	  	86
	 SECTION 8.18.
	 	WAIVER OF JURY TRIAL	  	86

  

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	 SCHEDULES
	 		  	
			
	 Schedule I
	 	-	  	Commitments and Applicable Lending Offices
	 Schedule 3.01(a)(xvii)
	 	-	  	Mortgaged Real Property
	 Schedule 4.01(b)
	 	-	  	Subsidiaries
	 Schedule 4.01(u)
	 	-	  	Surviving Debt
	 Schedule 4.01(w)
	 	-	  	Liens
	 Schedule 4.01(y)
	 	-	  	Investments
	 Schedule 4.01(aa)
	 	-	  	Material Contracts
	 Schedule 4.01(bb)
	 	-	  	Collective Bargaining Agreements
	 Schedule 4.01(dd)
	 	-	  	Pending Litigation
	 Schedule 4.01(ll)
	 	-	  	Gaming Matters
	 Schedule 5.01(u)
	 	-	  	Post-Closing Matters
	 Schedule 5.02(c)(i)
	 	-	  	Investments in Subsidiaries
	 Schedule 5.02(h)(B)
	 	-	  	Transactions with Affiliates
			
	EXHIBITS	 		  	
			
	 Exhibit A
	 	-	  	Form of Note
	 Exhibit B-1
	 	-	  	Form of Notice of Borrowing
	 Exhibit B-2
	 	-	  	Form of Notice of Prepayment
	 Exhibit C
	 	-	  	Form of Assignment and Acceptance
	 Exhibit D
	 	-	  	Form of Security Agreement
	 Exhibit E
	 	-	  	Form of Guaranty
	 Exhibit F
	 	-	  	[Reserved]
	 Exhibit G
	 	-	  	[Reserved]
	 Exhibit H
	 	-	  	Form of Mortgage
	 Exhibit I
	 	-	  	Form of Compliance Certificate
	 Exhibit J
	 	-	  	Form of Perfection Certificate
	 Exhibit K
	 	-	  	Form of Intercreditor Agreement

  

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 SECOND LIEN CREDIT AGREEMENT 
 SECOND LIEN CREDIT AGREEMENT dated as of June 14, 2007 among GOLDEN NUGGET, INC., a Nevada corporation (the
“Borrower”), each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), WACHOVIA BANK, NATIONAL ASSOCIATION
(“Wachovia”), as Administrative Agent and Collateral Agent, and BANK OF AMERICA, N.A., as syndication agent, and WACHOVIA CAPITAL MARKETS, LLC (“WCM”), as sole bookrunner and sole lead
arranger. 
 PRELIMINARY STATEMENTS: 
 (1) The Borrower desires to obtain from the Lenders (such capitalized term, and all other capitalized terms used in these Preliminary Statements without definition, to have the meanings specified in Section 1.01 below) financings
(collectively, the “Financings”) in an aggregate principal amount of $165,000,000, in a seven and a half year Second Lien Term Facility, the proceeds of which, together with the proceeds of the First Lien Term Loan Facility
to be entered by the Borrower on the Closing Date, will be used for (i) the payment of a one-time dividend (the “Dividend”) to its parent Landry’s Restaurants, Inc. (the “Parent”) or a
designated Subsidiary of Parent (as defined herein) and (ii) the refinancing (the “Refinancing” and, together with the Dividend, the “Transactions”) in full on the Closing Date of certain of the
Existing Debt. 
 (2) The Lenders have indicated their willingness to provide the Financings, but only on and subject to the terms and
conditions of this Agreement, including the granting of the Collateral pursuant to the Collateral Documents and the making of the guarantees pursuant to the Guaranties. 
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, the parties hereto hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS AND ACCOUNTING TERMS 
 SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined): 
 “Administrative Agent” means Wachovia, in
its capacity as Administrative Agent hereunder or any successor thereto appointed pursuant to Section 7.06. 
 “Administrative Agent’s Account” means the account of the Administrative Agent maintained by the Administrative Agent at its office at 301 South College Street, Charlotte, North Carolina, 28288, Attention:
Agency Services, and designated by the Administrative Agent to the Lenders as the “Administrative Agent’s Account” or such other account for such purpose as the Administrative Agent shall specify in writing to the Lenders. 

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

 “Advance” has the meaning specified in Section 2.01(a). 

 “Affiliate” means, as to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such Person or is a director or executive officer of such Person. For purposes of this definition, the term “control” (including the terms “controlling”,
“controlled by” and “under common control with”) of a Person means the possession, direct or indirect, of the power to vote 10% or more of the Voting Interests of such Person or to direct or cause the direction of the management
and policies of such Person, whether through the ownership of Voting Interests, by contract or otherwise. 
 “Agents”
means the Administrative Agent and the Collateral Agent. 
 “Agreement” means this Second Lien Credit Agreement, as
amended. 
 “Agreement Value” means, for each Hedge Agreement, on any date of determination, an amount equal to all
obligations thereunder (including the amount of any termination payments that would payable on such date if the Hedge Agreement were terminated). 
 “Applicable Law” means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders of courts or Governmental
Authorities and all orders and decrees of all courts and arbitrators. 
 “Applicable Lending Office” means, with
respect to each Lender, such Lender’s Domestic Lending Office in the case of a Base Rate Advance and such Lender’s Eurodollar Lending Office in the case of a Eurodollar Rate Advance. 
 “Applicable Margin” means, in respect of the Term Facility, (i) 2.00% per annum for Base Rate Advances and
(ii) 3.25% per annum for Eurodollar Rate Advances. 
 “Appropriate Lender” means, at any time, a Lender
that has a Commitment with respect to the Facility at such time. 
 “Approved Fund” means any Fund that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
 “Arranger” means WCM in its capacity as sole lead arranger and sole bookrunner. 
 “Asset Disposition” means the disposition of any or all of the assets (including, without limitation, the Equity Interests of a Subsidiary or any ownership interest in a joint venture) of any Loan Party or any
Subsidiary thereof whether by sale, lease, transfer or otherwise, in a single transaction, or in a series of related transactions, excluding any Asset Disposition of the Borrower and its Subsidiaries permitted pursuant to Section 5.02(e)(i),
(ii) and (iv). The term “Asset Disposition” shall not include any Equity Issuance. 
 “Assignment and
Acceptance” means an assignment and acceptance entered into by a Lender and an Eligible Assignee, and accepted by the Administrative Agent, in accordance with Section 8.07 and in substantially the form of Exhibit C hereto or
as otherwise approved by the Administrative Agent. 
 “Bankruptcy Law” means any proceeding of the type referred to
in Section 6.01(s) or Title 11, U.S. Code, or any similar foreign, federal or state law for the relief of debtors. 
  

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 “Base Rate” means a fluctuating interest rate per annum in effect from time to
time, which rate per annum shall at all times be equal to the higher of: 
 (a) the rate of interest established by Wachovia
in Charlotte, North Carolina, from time to time, as its prime rate for dollars loaned in the United States of America; and 
 (b)  1/2
 of 1% per annum above the Federal Funds Rate. 
 The Base Rate is
an index rate and is not necessarily intended to be the lowest or best rate of interest charged to other customers in connection with extensions of credit or to other banks. Any change in the Base Rate due to change in prime rate or Federal Funds
Rate shall be effective on the date of such change, as the case may be. 
 “Base Rate Advance” means an Advance that
bears interest as provided in Section 2.07(a)(i). 
 “Borrower” has the meaning specified in the recital of
parties to this Agreement. 
 “Borrower’s Account” means the account of the Borrower maintained by the Borrower
with the Administrative Agent at its office at 301 South College Street, Charlotte, North Carolina 28288, and designated between the Borrower and the Administrative Agent as the “Borrower’s Account”, or such other account for such
purpose as the Borrower shall specify in writing to the Administrative Agent. 
 “Borrowing” means a borrowing
consisting of simultaneous Advances of the same Type made by the Lenders or conversion or rollover of outstanding Borrowings at the end of the Interest Period. 
 “Business Day” means a day of the year on which banks are not required or authorized by law to close in New York, New York or Charlotte, North Carolina and, if the applicable Business Day
relates to any Eurodollar Rate Advances, on which dealings are carried on in the London interbank market. 
 “Cap
Amount” shall have the same meaning as “Cap Amount” in the Intercreditor Agreement. 
 “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) as determined in accordance with GAAP. 
 “Capitalized Leases” means all leases that have been or
should be, in accordance with GAAP, recorded as capitalized leases. 
 “CERCLA” means the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended from time to time. 
 “CERCLIS” means the Comprehensive
Environmental Response, Compensation and Liability Information System maintained by the U.S. Environmental Protection Agency. 
  

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 “Certificate of Occupancy” means a temporary or permanent certificate of
occupancy, in either case, for the Hotel Project issued by the appropriate Governmental Authority, pursuant to Applicable Law which permanent or temporary certificate of occupancy shall permit the Hotel Project to be used for its respective intended
purposes and shall be in full force and effect and, in the case of a temporary certificate of occupancy, if such temporary certificate of occupancy shall provide for an expiration date, any items which must be completed in order for such temporary
certificate of occupancy to be renewed or extended shall be completed no later than 15 days prior to the applicable expiration date. 
 “CFC” means an entity that is a controlled foreign corporation under Section 957 of the Internal Revenue Code. 
 “Change of Control” means the occurrence of any of the following: (a) any Person or two or more Persons acting in concert other than any Permitted Holder shall have acquired beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934), directly or indirectly, of Voting Interests of the Borrower (or other securities convertible into such Voting
Interests) representing 40% or more of the combined voting power of all Voting Interests of the Borrower; or (b) during any period of up to 24 consecutive months, commencing after the date of this Agreement, individuals who at the beginning of
such 24-month period were directors of the Borrower shall cease for any reason to constitute a majority of the board of directors of the Borrower; (c) any Person or two or more Persons acting in concert other than any Permitted Holder shall
have acquired by contract or otherwise, or shall have entered into a contract or arrangement that, upon consummation, will result in its or their acquisition of control over Voting Interests of the Borrower (or other securities convertible into such
Voting Interests) representing 40% or more of the combined voting power of all Voting Interests of the Borrower; or (d) prior to an initial public offering of the Borrower’s Equity Interests Parent ceases to own 100% of the Equity
Interests of the Borrower, or following an initial public offering of the Borrower’s Equity Interests Parent ceases to own more than 50% of the Equity Interests of the Borrower. 
 “Closing Date” means the date of this Agreement or such later Business Day upon which the conditions set forth in
Section 3.01 shall have been satisfied. 
 “Collateral” means all “Collateral” referred to in the
Collateral Documents and all “Mortgaged Property” or “Trust Property” referred to in each Mortgage and all other property that is subject to any Lien in favor of the Collateral Agent for the benefit of the Secured Parties.

 “Collateral Account” has the meaning specified in the Security Agreement. 
 “Collateral Agent” shall mean Wachovia in its capacity as collateral agent hereunder. 
 “Collateral Documents” means the Security Agreement, the Intellectual Property Security Agreement, the Mortgages, the
Intercreditor Agreement each of the collateral documents, instruments and agreements delivered pursuant to Sections 3.01, 5.01(l) or (m), and each other agreement that creates or purports to create a Lien in favor of the Collateral Agent for the
benefit of the Secured Parties. 
 “Commitment” means, with respect to any Lender at any time, the amount set forth
opposite such Lender’s name on Schedule I hereto under the caption “Commitment” or, if such Lender has entered into one or more Assignment and Acceptances, set forth for such Lender in the Register maintained by the
Administrative Agent pursuant to Section 8.07(d) as such Lender’s “Commitment”, as such amount may be reduced at or prior to such time pursuant to Section 2.05. 
  

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 “Completion” shall have the same meaning as “Completion” in the First
Lien Credit Agreement. 
 “Completion Certificate” means a written certificate executed by the architect, General
Contractor and the Lenders’ Consultant certifying that the applicable Project has been completed in all material respects (subject to customary punch list items) in accordance with its Project Plans together with a certificate executed by a
Responsible Officer to that effect. 
 “Completion Date” shall have the same meaning as “Completion Date”
in the First Lien Credit Agreement. 
 “Compliance Certificate” means a certificate of a Financial Officer
substantially in the form of Exhibit I. 
 “Confidential Information” means information that any Loan Party
furnishes to any Agent or any Lender in a writing designated as confidential or is known by the Lenders to be material non-public information, but does not include any such information that is or becomes generally available to the public or that is
or becomes available to such Agent or such Lender from a source other than the Loan Parties. 
 “Consolidated” means,
when used with reference to financial statements or financial statement items of any Person, such statements or items on a consolidated basis in accordance with applicable principles of consolidation under GAAP. 
 “Consolidated EBITDA” means, for any period, the sum of (without duplication) (a) Consolidated Net Income or Consolidated
Net Loss, as the case may be, for such period plus (b) the sum of (i) Consolidated Interest Expense, (ii) income and franchise taxes, (iii) depreciation expense, (iv) amortization expense, (v) extraordinary
losses, (vi) one time costs related to the Refinancing, including without limitation tender premiums, and (vii) non-cash items, in each case, which were deducted in determining Consolidated Net Income or Consolidated Net Loss, as the case
may be, of the Borrower and its Subsidiaries on a Consolidated basis for such period minus (c) to the extent included in determining Consolidated Net Income or Consolidated Net Loss, as the case may be, of the Borrower and its
Subsidiaries on a Consolidated basis for such period, (i) non-cash gains, (ii) gains arising from asset dispositions not in the ordinary course of business and (iii) non-cash gains under Hedge Agreements. The historical Consolidated
EBITDA for the relevant measurement period of entities (A) that are acquired by the Borrower or any of its Subsidiaries after the Closing Date as permitted under the Loan Documents will be included in the calculation of Consolidated EBITDA for
the entire period of determination on a pro forma basis (determined in accordance with adjustments reasonably agreed by the Administrative Agent based on demonstrated cost savings and excluding extraordinary items) and (B) that are disposed of
by the Borrower or any of its Subsidiaries after the Closing Date for the entire period of determination following such disposition, in each case, will be excluded in the calculation of Consolidated EBITDA; provided that, in the case of
entities that are acquired by the Borrower or any of its Subsidiaries after the Closing Date, the Administrative Agent and the Lenders are furnished with audited financial statements, or if audited financial statements are not available, other
financial statements reasonably acceptable to the Administrative Agent and the Required Lenders, of such entities (or if the acquisition is of a division or branch of a larger business or a group of businesses, the audited financial statements, or
if audited financial statements are not available, other financial statements reasonably acceptable to the Administrative Agent and the Required Lenders, of such larger business or group of businesses, so long as the individual activities of the
acquired entity are clearly reflected in such financial statements, together with a certificate certifying that the Borrower has reviewed the historical financial statements of the division or branch and that they reflect proper divisional
accounting in relation to the large business or group of businesses), reasonably satisfactory to the Administrative Agent and the Required Lenders in all respects, confirming such historical results. 
  

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 “Consolidated Interest Expense” means, with respect to the Borrower and its
Subsidiaries for any period, the gross interest expense (including, without limitation, interest expense attributable to Capital Leases and all net payment obligations pursuant to Hedge Agreements and excluding non-cash amortization of loan costs)
of the Borrower and its Subsidiaries, all determined for such period on a Consolidated basis, without duplication, in accordance with GAAP. 
 “Consolidated Net Income” and “Consolidated Net Loss” mean, with respect to the Borrower and its Subsidiaries, for any period of determination, the net income (or loss) of the Borrower and its
Subsidiaries for such period, determined on a Consolidated basis in accordance with GAAP; provided that there shall be excluded from Consolidated Net Income (a) the net income (or loss) of any Person (other than a Subsidiary which shall
be subject to clause (c) below), in which the Borrower or any of its Subsidiaries has a joint interest with a third party, except to the extent such net income is actually paid in cash to the Borrower or any of its Subsidiaries by dividend or
other distribution during such period, (b) the net income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of such Person or is merged into or consolidated with such Person or any of its Subsidiaries or that
Person’s assets are acquired by such Person or any of its Subsidiaries except to the extent included pursuant to the foregoing clause (a), (c) the net income (if positive) of any Subsidiary to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary to the Borrower or any of its Subsidiaries of such net income (i) is not at the time permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, order,
statute rule or governmental regulation applicable to such Subsidiary or (ii) would be subject to any taxes payable on such dividends or distributions, and (d) cash and non-cash losses related to The Fremont Street Experience Limited
Liability Company in an amount not to exceed $2,500,000 in the aggregate in any fiscal year. 
 “Construction
Contracts” means any and all contracts, written or oral, between the Borrower, any applicable Loan Party and any contractor and any subcontractor and between any of the foregoing and any other Person (including, without limitation, any
architect or engineer) relating in any way to the construction of the Hotel Project, including the performing of labor or the furnishing of standard or specially fabricated materials in connection therewith or the preparation or furnishing of any
drawings, renderings, plans, design documents or other related items for the design, architecture or construction of the Hotel Project. 
 “Contingent Obligation” means, with respect to any Person, any obligation or arrangement of such Person to guarantee or intended to guarantee any Debt, leases, dividends or other payment obligations
(“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including, without limitation, (a) the direct or indirect guarantee, endorsement
(other than for collection or deposit in the ordinary course of business), co making, discounting with recourse or sale with recourse by such Person of the obligation of a primary obligor, (b) the obligation to make take-or-pay or similar
payments, if required, regardless of nonperformance by any other party or parties to an agreement or (c) any obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting
direct or indirect security therefor, (ii) to advance or supply funds (A) for the purchase or payment of any such primary obligation or (B) to maintain working capital or equity capital of the primary obligor or otherwise to maintain
the net worth or solvency of the primary obligor, (iii) to purchase property, assets, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of
such primary obligation or (iv) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof. The amount of any Contingent Obligation shall be deemed to be an 

  

 -6- 

 
amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made (or, if less, the maximum
amount of such primary obligation for which such Person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof
(assuming such Person is required to perform thereunder), as determined by such Person in good faith. 
 “Conversion”, “Convert” and “Converted” each refer to a conversion of Advances of one Type into Advances of the other Type pursuant to Section 2.09 or 2.10.

 “Cure Amount” has the meaning set forth in Section 6.03. 
 “Debt” means, with respect to the Borrower and its Subsidiaries at any date without duplication, the sum of the following
calculated in accordance with GAAP: (a) all liabilities, obligations and indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services (other than trade payables
not overdue by more than 90 days incurred in the ordinary course of such Person’s business), (c) all indebtedness of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all obligations of such Person
created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited
to repossession or sale of such property), (e) all obligations of such Person as lessee under Capitalized Leases, (f) all obligations of such Person under acceptance, letters of credit or other similar arrangements or credit support
facilities, (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interests in such Person or any other Person or any warrants, rights or options to acquire such Equity
Interests, valued, in the case of Redeemable Preferred Interests, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends, (h) all Contingent Obligations (other than Contingent Obligations
with respect to underlying payment obligations for leases and other obligations that are incurred in the ordinary course of business and are otherwise not prohibited by the terms of this Agreement) and Off Balance Sheet Obligations of such Person
and (i) all indebtedness and other payment obligations referred to in clauses (a) through (h) above of another Person secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by)
any Lien on property (including, without limitation, accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Debt or other payment obligations. 
 “Debt for Borrowed Money” of any Person means, at any date of determination, all items that, in accordance with GAAP, would be
classified as indebtedness for borrowed money on a Consolidated balance sheet of such Person at such date but excluding any intercompany debt between the Loan Parties. 
 “Debt Issuance” shall mean the issuance of any Debt for borrowed money by the Borrower or any of its Subsidiaries, excluding any Equity Issuance, any issuance of Equity Interests of the
Borrower or Subsidiaries to Parent or any Loan Party, or any Debt of the Borrower and its Subsidiaries permitted to be incurred pursuant to Section 5.02(a). 
 “Default” means any Event of Default or any event that would constitute an Event of Default but for the passage of time or the requirement that notice be given or both. 
 “Default Interest” has the meaning set forth in Section 2.07(b). 
 “Defaulting Lender” has the meaning specified in Section 2.15. 
  

 -7- 

 “Discharge Conditions” shall have the same meaning as “Discharge of First
Lien Obligations” in the Intercreditor Agreement. 
 “Disqualified Stock” means any capital stock that, by its
terms (or by the terms of any security into which it is convertible, or for which it is exchangeable, in each case at the option of the holder thereof), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking
fund obligation or otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is one year after the Termination Date. Notwithstanding the preceding sentence, any Equity Interests that would
constitute Disqualified Stock solely because the holders thereof have the right to require the Borrower to repurchase such capital stock upon the occurrence of a change of control or an asset sale shall not constitute Disqualified Stock if the terms
of such capital stock provide that the Borrower may not repurchase or redeem any such capital stock pursuant to such provisions unless such repurchase or redemption complies with Section 5.02. The term “Disqualified Stock” shall also
include any options, warrants or other rights that are convertible into Disqualified Stock or that are redeemable at the option of the holder, or required to be redeemed, prior to the date that is one year after the Termination Date. 
 “Distribution Amount” means the sum of, without duplication, (i) 50% of cumulative Consolidated Net Income of the Borrower
since the Closing Date or if such Consolidated Net Income is of a deficit, 100% of such deficit, plus (ii) Parent Qualified Contributions (excluding Parent Qualified Contributions applied toward the Cure Amount and excludes Parent
Qualified Contributions used to consummate a Permitted Acquisition) after the Closing Date to a Loan Party not otherwise prohibited by this Agreement, minus (iii) the dollar amount of Restricted Payments made pursuant to
Section 5.02(f)(iv), plus (iv) $10,000,000. 
 “Dividend” has the meaning specified in the
Preliminary Statements. 
 “Domestic Lending Office” means, with respect to any Lender, the office of such Lender
specified as its “Domestic Lending Office” opposite its name on Schedule I hereto or in the Assignment and Acceptance pursuant to which it became a Lender, as the case may be, or such other office of such Lender as such Lender may
from time to time specify to the Borrower and the Administrative Agent. 
 “Eligible Assignee” means (a) a
Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; (d) a commercial bank organized under the laws of the United States, or any State thereof, and having total assets in excess of $5 billion; (e) a finance company,
insurance company or other financial institution or fund (whether a corporation, partnership, trust or other entity) that is engaged in making, purchasing or otherwise investing in commercial loans in the ordinary course and having total assets in
excess of $100,000,000; and (f) any other Person (other than a natural person) approved by (i) the Administrative Agent and (ii) the Borrower (which approval not to be unreasonably withheld or delayed); provided that the
Borrower shall not have any approval rights in connection with any of the foregoing (x) if an Event of Default shall have occurred and be continuing or (y) to the extent determined by the Administrative Agent to be reasonably necessary to
achieve a successful initial syndication of the Commitments hereunder. Notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of the Borrower’s Subsidiaries or Affiliates or any Person found
unsuitable under any Gaming Laws. 
 “Employee Benefit Plan” means any employee benefit plan within the meaning of
Section 3(3) of ERISA which (a) is maintained for employees of any Credit Party or any ERISA Affiliate or (b) has at any time within the preceding six (6) years been maintained for the employees of any Credit Party or any current
or former ERISA Affiliate. 
  

 -8- 

 “Environmental Action” means any action, suit, demand, demand letter, claim,
notice of non compliance or violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement relating in any way to any Environmental Law, any Environmental Permit or Hazardous Material or arising
from alleged injury or threat to health, safety or the environment, including, without limitation, (a) by any governmental or regulatory authority for enforcement, cleanup, removal, response, remedial or other actions or damages and (b) by
any governmental or regulatory authority or third party for damages, contribution, indemnification, cost recovery, compensation or injunctive relief. 
 “Environmental Law” means any Federal, state, local or foreign statute, law, ordinance, rule, regulation, code, order, writ, judgment, injunction, decree or judicial or agency interpretation,
policy or guidance relating to pollution or protection of the environment, health, safety or natural resources, including, without limitation, those relating to the use, handling, transportation, treatment, storage, disposal, release or discharge of
Hazardous Materials. 
 “Environmental Permit” means any permit, approval, identification number, license or other
authorization required under any Environmental Law. 
 “Equity Interests” means, with respect to any Person, shares
of capital stock of (or other ownership or profit interests in) such Person, warrants, options or other rights for the purchase or other acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such
Person, securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or other acquisition from such Person of such shares (or such
other interests), and other ownership or profit interests in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other
interests are authorized or otherwise existing on any date of determination. 
 “Equity Issuance” means any issuance
by the Borrower or any Subsidiary to any Person which is not the Parent or a Loan Party of (a) shares of its Equity Interests, (b) any shares of its Equity Interests pursuant to the exercise of options or warrants or (c) any shares of
its Equity Interests pursuant to the conversion of any debt securities to equity. The term “Equity Issuance” shall not include (i) any Asset Disposition or (ii) any Debt Issuance. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated
and rulings issued thereunder. 
 “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a
member of the controlled group of any Loan Party, or under common control with any Loan Party, within the meaning of Section 414 of the Internal Revenue Code. 
 “ERISA Event” means (a) unless the applicable 30 day notice requirement with respect to such event has been waived by the PBGC, (i) the occurrence of a reportable event, within the
meaning of Section 4043 of ERISA, with respect to any Plan or (ii) the requirements of Section 4043(b) of ERISA apply with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event
described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within the following 30 days; (b) the application for a minimum funding waiver with
respect to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate such Plan, pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in
Section 4041(e) of ERISA); (d) the cessation of operations at a facility of any Loan Party or any ERISA Affiliate in the circumstances described in Section 4062(e) of 

  

 -9- 

 
ERISA; (e) the withdrawal by any Loan Party or any ERISA Affiliate from a Multiple Employer Plan during a plan year for which it was a substantial
employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for imposition of a lien under Section 302(f) of ERISA shall have been met with respect to any Plan; (g) the adoption of an amendment to a Plan requiring the
provision of security to such Plan pursuant to Section 307 of ERISA; or (h) the institution by the PBGC of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in
Section 4042 of ERISA that constitutes grounds for the termination of, or the appointment of a trustee to administer, such Plan. 
 “Eurocurrency Liabilities” has the meaning specified in Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
 “Eurodollar Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Eurodollar
Lending Office” opposite its name on Schedule I hereto or in the Assignment and Acceptance pursuant to which it became a Lender (or, if no such office is specified, its Domestic Lending Office), or such other office of such Lender as
such Lender may from time to time specify to the Borrower and the Administrative Agent. 
 “Eurodollar Rate” means a
rate per annum (rounded upwards, if necessary, to the next higher 1/100th of 1%) determined by the Administrative Agent pursuant to the following formula: 
  

			
	LIBOR Rate =	  	                                    LIBOR 
                                   
		  	1.00-Eurodollar Reserve Percentage

 “Eurodollar Rate Advance” means an Advance that bears interest as provided
in Section 2.07(a)(ii). 
 “Eurodollar Reserve Percentage” for any Interest Period for all Eurodollar Rate
Advances comprising part of the same Borrowing means the reserve percentage applicable two Business Days before the first day of such Interest Period under regulations issued from time to time by the Board of Governors of the Federal Reserve System
(or any successor) for determining the maximum reserve requirement (including, without limitation, any emergency, supplemental or other marginal reserve requirement) for a member bank of the Federal Reserve System in New York City with respect to
liabilities or assets consisting of or including Eurocurrency Liabilities (or with respect to any other category of liabilities that includes deposits by reference to which the interest rate on Eurodollar Rate Advances is determined) having a term
equal to such Interest Period. 
 “Events of Default” has the meaning specified in Section 6.01. 
 “Excess Cash Flow” means, for any period of determination, the sum of the following determined on a Consolidated basis, without
duplication, in accordance with GAAP: (a) Consolidated EBITDA of the Borrower and its Subsidiaries for such period minus (b) the sum of the cash amounts expended during such period for (i) expenditures made in connection with
any acquisition permitted under Section 5.02(c)(iii) and to the extent not funded by Debt or equity, (ii) Investments made under other clauses of Section 5.02(c) to the extent not funded by Debt or equity, (iii) Restricted
Payments made under Section 5.02(f), (iv) Capital Expenditures, (v) Consolidated Interest Expense, (vi) taxes paid in cash during such period with respect to income of the Borrower and its Subsidiaries on a Consolidated basis,
and (vii) regularly scheduled and optional repayments or optional prepayments made with respect to principal on outstanding Debt (other than revolving Debt), as the case may be, of the Borrower and its Subsidiaries, plus or minus,
as the case may be, any changes in working capital of the Borrower and its Subsidiaries for such period. 
  

 -10- 

 “Existing Debt” means Debt of the Borrower and its Subsidiaries outstanding
immediately before the occurrence of the Closing Date, as set forth on Schedule 4.01(v). 
 “Extraordinary
Receipt” means any cash received by or paid to or for the account of any Person not in the ordinary course of business, including, without limitation, pension plan reversions, proceeds of insurance (including, without limitation, any
key man life insurance but excluding proceeds of business interruption insurance to the extent such proceeds constitute compensation for lost earnings), condemnation and casualty awards (and payments in lieu thereof), indemnity payments and any
purchase price adjustment received in connection with any purchase agreement, but in any event excluding any tax refund; provided, however, that, so long as no Event of Default has occurred and is continuing, an Extraordinary Receipt
shall not include cash receipts received from proceeds of insurance, condemnation awards (or payments in lieu thereof) or indemnity payments to the extent that such proceeds, awards or payments (a) do not exceed, individually or in the
aggregate, $5,000,000 or (b) in respect of loss or damage to equipment, fixed assets or real property are applied (or in respect of which expenditures were previously incurred) to replace or repair the equipment, fixed assets or real property
in respect of which such proceeds were received in accordance with the terms of the Loan Documents. 
 “Facility”
means, at any time, the aggregate amount of the Lenders’ Commitments at such time. 
 “FDIC” means the Federal
Deposit Insurance Corporation, or any successor thereto. 
 “Federal Funds Rate” means, for any period, a fluctuating
interest rate per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it. 
 “Fee
Letter” means the fee letter dated April 30, 2007, between the Borrower, the Administrative Agent and WCM, as amended from time to time in accordance with the terms thereof. 
 “Financial Officer” of any Person shall mean the chief financial officer, principal accounting officer, treasurer or controller
of such Person. 
 “Financial Performance Covenants” means the covenants of the Borrower set forth in Sections
5.04(a) and (b). 
 “Financings” has the meaning specified in the Preliminary Statements. 
 “FIRREA” means the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended. 
 “First Lien Administrative Agent” means Wachovia as Administrative Agent under the First Lien Credit Agreement, and any successor
administrative agent thereunder. 
  

 -11- 

 “First Lien Credit Agreement” means the First Lien Credit Agreement, dated as of
the Closing Date, by and among the Borrower, the lenders party thereto and the First Lien Administrative Agent, as in effect on the date hereof. 
 “First Lien Loan Documents” means Loan Documents as defined in the First Lien Credit Agreement. 
 “Fiscal Year” means a fiscal year of the Borrower and its Consolidated Subsidiaries ending on December 31 in any calendar year. 
 “Force Majeure” means any cause beyond the reasonable control of the Borrower and occurring without the Borrower’s fault or negligence, including acts of God, unforeseen Government
restrictions (including the denial or cancellation of license), wars or insurrections. 
 “Foreign Lender” means any
Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction. 
 “Fund” means any Person (other than an individual) that is or will be engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course. 
 “Funded Debt” of any Person means Debt in respect of the Loan Documents and the First Lien Loan Documents, in the case of the Borrower, and all other Debt for Borrowed Money of such Person that by its terms matures
more than one year after the date of determination or matures within one year from such date but is renewable or extendible, at the option of such Person, to a date more than one year after such date or arises under a revolving credit or similar
agreement that obligates the lender or lenders to extend credit during a period of more than one year after such date. 
 “GAAP” has the meaning specified in Section 1.03. 
 “Gaming Authority” means
any agency, authority, board, bureau, commission, department, office or instrumentality of any nature whatsoever of the federal government or any state, county, city or other political subdivision, whether now or hereafter in existence, or any
officer or official thereof, but only to the extent that such agency, authority, board, bureau, commission, department, office or instrumentality possesses authority to regulate any gaming operation owned, managed or operated, or proposed to be
owned, managed or operated, by the Borrower or any of its Subsidiaries. 
 “Gaming Laws” means all applicable
federal, state and local laws, rules and regulations pursuant to which Gaming Authorities possess regulatory, licensing or permit authority over the ownership or operation of gaming facilities. 
 “Gaming License” means any finding of suitability, registration, license, franchise or other approval or authorization issued by
or from any Gaming Authority under Gaming Laws that is required to own, lease, operate or otherwise conduct or manage the gaming activities of the Borrower and its Subsidiaries in any state or jurisdiction in which any Borrower or any of its
Subsidiaries conduct business. 
  

 -12- 

 “General Contractor” means any Person who contracts for the construction of any
entire Project, rather than for a portion of the work relating thereto and otherwise has the obligation to retain and pay subcontractors and coordinates the work to be performed. 
 “Governmental Authority” means any nation or government, any state, province, city, municipal entity or other political
subdivision thereof, and any governmental, executive, legislative, judicial, administrative or regulatory agency, department, authority, instrumentality, commission, board, bureau or similar body, whether federal, state, provincial, territorial,
local or foreign. 
 “Governmental Authorization” means any authorization, approval, consent, franchise, license,
covenant, order, ruling, permit, certification, exemption, notice, declaration or similar right, undertaking or other action of, to or by, or any filing, qualification or registration with, any Governmental Authority. 
 “Governmental Real Property Disclosure Requirements” shall mean any requirement of any Governmental Authority requiring
notification of the buyer, lessee, mortgagee, assignee or other transferee of any Real Property, facility, establishment or business, or notification, registration or filing to or with any Governmental Authority, in connection with the sale, lease,
mortgage, assignment or other transfer (including any transfer of control) of any Real Property, facility, establishment or business, of the actual or threatened presence or release or discharge in or into the Environment, or the use, disposal or
handling of Hazardous Materials on, at, under or near the Real Property, facility, establishment or business to be sold, leased, mortgaged, assigned or transferred. 
 “Guaranties” means, collectively, the Guaranty made by the Guarantors in favor of the Administrative Agent on behalf of the Lenders, substantially in the form of Exhibit E, together with
each guaranty and guaranty supplement delivered pursuant to Section 5.01(l) or (m). 
 “Guarantors” means the
Subsidiaries of the Borrower. 
 “Hazardous Materials” means (a) petroleum or petroleum products, by-products or
breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and radon gas and (b) any other chemicals, materials or substances designated, classified or regulated as hazardous or toxic or as a pollutant
or contaminant under any Environmental Law. 
 “Hedge Agreements” means interest rate, commodity or currency swap,
cap or collar agreements, future or option contracts and other hedging agreements (including, without limitation, all “swap agreements” as defined in 11 U.S.C. § 101). 
 “Hedge Bank” means any Lender or Affiliate of a Lender in its capacity as a party to a Secured Hedge Agreement and any
counterparty to such Secured Hedge Agreement that was a Lender or Affiliate of a Lender at the time such Secured Hedge Agreement was entered into. 
 “Hotel Project” shall have the same meaning as “Hotel Project” in the First Lien Credit Agreement. 
 “Indemnified Party” has the meaning specified in Section 8.04(b). 
 “Information
Memorandum” means the Confidential Information Memorandum dated May 2007, used by the Arranger in connection with the syndication of the Commitments. 
  

 -13- 

 “Insufficiency” means, with respect to any Plan, the amount, if any, by which its
benefit liabilities, as defined in Section 4001(a)(16) of ERISA, determined using the actuarial assumptions used for funding purposes in the most recent actuarial report prepared for such Plan, exceeds the fair market value of such Plan’s
assets. 
 “Insurance and Condemnation Event” means the receipt by the Borrower or any of its Subsidiaries of any
cash insurance proceeds or condemnation award payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of their respective property or assets. 
 “Intellectual Property Security Agreement” has the meaning specified in Section 3.01(a)(iii). 
 “Intercreditor Agreement” means the Intercreditor Agreement among Borrower, Collateral Agent, and the Collateral Agent (as
defined under the First Lien Loan Documents) to be dated the Closing Date in the form attached hereto as Exhibit K, as in effect on the date hereof. 
 “Interest Period” means, for each Eurodollar Rate Advance comprising part of the same Borrowing, the period commencing on the date of such Eurodollar Rate Advance or the date of the Conversion
of any Base Rate Advance into such Eurodollar Rate Advance, and ending on the last day of the period selected by the Borrower pursuant to the provisions below and, thereafter, each subsequent period commencing on the last day of the immediately
preceding Interest Period and ending on the last day of the period selected by the Borrower pursuant to the provisions below. The duration of each such Interest Period shall be one, two, three or six months (nine or twelve months if agreed to by all
participating lenders), as the Borrower may, upon notice received by the Administrative Agent not later than 11:00 A.M. (New York City time) on the third Business Day prior to the first day of such Interest Period, select; provided,
however, that: 
 (a) the Borrower may not select any Interest Period with respect to any Eurodollar Rate Advance under
a Facility that ends after any principal repayment installment date for such Facility unless, after giving effect to such selection, the aggregate principal amount of Base Rate Advances and of Eurodollar Rate Advances having Interest Periods that
end on or prior to such principal repayment installment date for such Facility shall be at least equal to the aggregate principal amount of Advances under such Facility due and payable on or prior to such date; 
 (b) Interest Periods commencing on the same date for Eurodollar Rate Advances comprising part of the same Borrowing shall be of the same
duration; 
 (c) whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the
last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided, however, that, if such extension would cause the last day of such Interest Period to occur in the next following calendar month,
the last day of such Interest Period shall occur on the next preceding Business Day; and 
 (d) whenever the first day of any
Interest Period occurs on a day of an initial calendar month for which there is no numerically corresponding day in the calendar month that succeeds such initial calendar month by the number of months equal to the number of months in such Interest
Period, such Interest Period shall end on the last Business Day of such succeeding calendar month. 
  

 -14- 

 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from
time to time, and the regulations promulgated and rulings issued thereunder. 
 “Investment” in any Person means any
loan or advance to such Person, any purchase or other acquisition of any Equity Interests or Debt or the assets comprising a division or business unit or a substantial part or all of the business of such Person, any capital contribution to such
Person or any other direct or indirect investment in such Person, including, without limitation, any acquisition by way of a merger or consolidation (or similar transaction) and any arrangement pursuant to which the investor incurs Debt of the types
referred to in clause (h) or (i) of the definition of “Debt” in respect of such Person. 
 “Lenders” means each Person executing this Agreement as a Lender (including, without limitation, the Issuing Lender and the Swingline Lender unless the context otherwise requires) set forth on the signature pages
hereto and each Person that shall become a Lender hereunder pursuant to Section 8.07 hereunder. 
 “Lender’s
Consultant” shall have the same meaning as “Lender’s Consultant” in the First Lien Credit Agreement. 
 “Leverage Ratio” means, at any date of determination, the ratio of (a) total Debt for Borrowed Money of the Borrower and its Subsidiaries as of such date to (b) Consolidated EBITDA of the Borrower and its
Subsidiaries for the period of the four consecutive fiscal quarters of the Borrower then most recently ended; provided that for purposes of determining the Leverage Ratio at any date, such Debt for Borrowed Money shall include, with respect
to any entities acquired by the Borrower or any of its Subsidiaries after the Closing Date as permitted under the Loan Documents, the Debt for Borrowed Money of such entities as of the date of determination. 
 “LIBOR” means the rate of interest per annum determined on the basis of the rate for deposits in Dollars in minimum amounts of at
least $1,000,000 for a period equal to the applicable Interest Period which appears on the Reuters Screen LIBOR01 Page at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of the applicable Interest Period
(rounded upward, if necessary, to the nearest 1/100th of 1%). If, for any reason, such rate does not appear on Reuters Screen LIBOR01 Page, then “LIBOR” shall be determined by the Administrative Agent to be the arithmetic average of the
rate per annum at which deposits in Dollars in minimum amounts of at least $1,000,000 would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) two (2) Business
Days prior to the first day of the applicable Interest Period for a period equal to such Interest Period. Each calculation by the Administrative Agent of LIBOR shall be conclusive and binding for all purposes, absent manifest error. 
 “Lien” means any lien, mortgage, deed of trust, security interest or other charge or encumbrance of any kind, or any other type
of preferential arrangement, including, without limitation, the lien or retained security title of a conditional vendor and any easement, right of way or other encumbrance on title to real property. 
 “Loan Documents” means (a) this Agreement, (b) the Notes, (c) the Collateral Documents, (d) the Guaranties,
(e) the Fee Letter, and (f) any certificate, letter or other document executed in connection herewith or therewith or pursuant hereto or thereto, excluding, in each case, any Secured Hedge Agreement. 
 “Loan Parties” means the Borrower and the Guarantors. 
  

 -15- 

 “Margin Stock” has the meaning specified in Regulation U. 
 “Material Adverse Effect” means a material adverse effect on (a) the business, operations, condition, assets or liabilities
of the Borrower and its Subsidiaries, taken as a whole, (b) the ability of any Loan Party to any Loan Documents or any document related thereto to perform its obligations thereunder or (c) the validity or enforceability of any Loan
Documents or the rights and remedies of the Lenders. 
 “Material Contract” means, with respect to any Person, each
contract to which such Person is a party involving aggregate consideration payable to or by such Person of $5,000,000 or more in any year or otherwise material to the business, condition (financial or otherwise), operations, performance or
properties of such Person. 
 “Moody’s” means Moody’s Investors Service, Inc. 
 “Mortgaged Property” shall mean each Real Property, if any, which shall be subject to a Mortgage delivered on or after the
Closing Date pursuant to Section 5.01(l). 
 “Mortgages” has the meaning specified in Section 3.01(a)(xv).

 “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which any Loan
Party or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation to make contributions. 
 “Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is
maintained for employees of any Loan Party or any ERISA Affiliate and at least one Person other than the Loan Parties and the ERISA Affiliates or (b) was so maintained and in respect of which any Loan Party or any ERISA Affiliate could have
liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be terminated. 
 “Net Cash
Proceeds” means, with respect to (a) any sale, lease, transfer or other disposition of any asset, (b) the incurrence or issuance of any Debt, (c) the sale or issuance of any Equity Interests (including, without
limitation, any capital contribution) by any Person, or (d) any Extraordinary Receipt received by or paid to or for the account of any Person, the aggregate amount of cash received from time to time (whether as initial consideration or through
payment or disposition of deferred consideration) by or on behalf of such Person in connection with such transaction after deducting therefrom only (without duplication) (i) reasonable and customary brokerage commissions, underwriting fees and
discounts, legal fees, finder’s fees and other similar fees, commissions, costs and expenses directly relating to such transaction, (ii) the amount of taxes payable in connection with or as a result of such transaction and (iii) the
amount of any Debt secured by a Lien on such asset that, by the terms of the agreement or instrument governing such Debt, is required to be repaid upon such disposition, in each case to the extent, but only to the extent, that the amounts so
deducted are, at the time of receipt of such cash, actually paid to a Person that is not an Affiliate of such Person or any Loan Party or any Affiliate of any Loan Party and are properly attributable to such transaction or to the asset that is the
subject thereof; provided, however, that in the case of taxes that are deductible under clause (ii) above but for the fact that, at the time of receipt of such cash, such taxes have not been actually paid or are not then payable,
such Loan Party or such Subsidiary may deduct an amount (the “Reserved Amount”) equal to the amount reserved in accordance with GAAP for such Loan Party’s or such Subsidiary’s reasonable estimate of such taxes,
other than taxes for which such Loan Party or such Subsidiary is indemnified, provided further, however, that, 

  

 -16- 

 
at the time such taxes are paid, an amount equal to the amount, if any, by which the Reserved Amount for such taxes exceeds the amount of such taxes actually
paid shall constitute “Net Cash Proceeds” of the type for which such taxes were reserved for all purposes hereunder; provided further that, so long as no Event of Default has occurred and is continuing, Net Cash Proceeds shall not
include any cash receipts from any transaction described in clause (a) above to the extent the proceeds of such cash receipts (individually or in the aggregate) shall not exceed $1,000,000. 
 “Non-Consenting Lender” has the meaning specified in Section 2.10(f). 
 “Note” means a promissory note of the Borrower payable to the order of any Lender, in substantially the form of Exhibit A
hereto, evidencing the Debt of the Borrower to such Lender resulting from the Advance made by such Lender, as amended, endorsed or replaced. 
 “Notice of Borrowing” has the meaning specified in Section 2.02(a). 
 “Notice of
Issuance” has the meaning specified in Section 2.03(a). 
 “Notice of Prepayment” has the meaning
assigned thereto in Section 2.06(a). 
 “NPL” means the National Priorities List under CERCLA. 
 “Obligation” means, with respect to any Loan Party under any and all of the Loan Documents, (a) the obligation to pay
principal, interest, reimbursement amounts, charges, expenses, fees, attorneys’ fees and disbursements, indemnities and other amounts payable by such Loan Party under any Loan Document and (b) the obligation of such Loan Party to reimburse
any amount in respect of any of the foregoing that any Lender, in its sole discretion, may elect to pay or advance on behalf of such Loan Party. 
 “Off Balance Sheet Obligation” means, with respect to any Person, any obligation of such Person under a synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing
classified as an operating lease in accordance with GAAP, if such obligations would give rise to a claim against such Person in a proceeding referred to in Section 6.01(f). 
 “Other Taxes” has the meaning specified in Section 2.12(b). 
 “Parent” has the meaning specified in the Preliminary Statements. 
 “Parent Qualified Contributions” means the amount of Net Cash Proceeds actually received by the Borrower or any Guarantor from
the issuance of any Equity Interests (excluding Disqualified Stock), and any capital contribution from Parent in respect thereof. 
 “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into law October 26, 2001. 
 “PBGC” means the Pension Benefit Guaranty Corporation (or any successor). 
 “Perfection Certificate” means a perfection certificate, executed by the Loan Parties substantially in the form of Exhibit
J. 
  

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 “Permitted Acquisition” means any investment by the Borrower or any Subsidiary in
the form of acquisitions of all or substantially all of the business or a line of business (whether by the acquisition of capital stock, assets or any combination thereof) of any other Person if each such acquisition meets all of the following
requirements: 
 (a) no less than ten (10) Business Days prior to the proposed closing date of such acquisition, the
Borrower shall have delivered written notice of such acquisition to the Administrative Agent and the Lenders, which notice shall include the proposed closing date of such acquisition; 
 (b) such acquisition shall not be hostile; 
 (c) the Person or business to be acquired shall be in a substantially similar line of business as the Borrower and its Subsidiaries pursuant to Section 5.02(1); 
 (d) if such transaction is a merger or consolidation, the Borrower or a Subsidiary shall be the surviving Person and no Change of Control
shall have been effected thereby; 
 (e) the Borrower shall have delivered to the Administrative Agent such documents
reasonably requested by the Administrative Agent or the Required Lenders (through the Administrative Agent) pursuant to Section 5.01(l) to be delivered at the time required pursuant to Section 5.01(1); 
 (f) no later than five (5) Business Days prior to the proposed closing date of such acquisition, the Borrower shall have delivered to
the Administrative Agent and the Lenders a Compliance Certificate for the most recent fiscal quarter end preceding such acquisition demonstrating, in form and substance reasonably satisfactory thereto, pro forma compliance (as of the date of the
acquisition and after giving effect thereto and any Extensions of Credit made or to be made in connection therewith) with each covenant contained in Section 5.04; 
 (g) no later than five (5) Business Days prior to the proposed closing date of such acquisition the Borrower, to the extent requested
by the Administrative Agent, shall have delivered to the Administrative Agent promptly upon the finalization thereof copies of substantially final Permitted Acquisition Documents; 
 (h) no Event of Default shall have occurred and be continuing both before and after giving effect to such acquisition; 
 (i) the Borrower shall have obtained the prior written consent of the Administrative Agent and the Required Lenders prior to the
consummation of such acquisition if (A) the Permitted Acquisition Consideration for any such acquisition (or series of related acquisitions), together with all other acquisitions consummated during the previous twelve (12) month period,
and (B) the Permitted Acquisition Consideration for all acquisitions (or series of related acquisitions), together with all other acquisitions consummated during the term of this Agreement exceeds $100,000,000 in the aggregate; and 

(j) the Borrower shall provide such other documents and other information available to it as may be reasonably requested by the
Administrative Agent or the Required Lenders (through the Administrative Agent) in connection with the consummation of the acquisition no later than ten (10) days prior to the acquisition. 
  

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 “Permitted Acquisition Consideration” means the aggregate amount of the purchase
price (including, but not limited to, any assumed debt, earn-outs (valued at the maximum amount payable thereunder), deferred payments, or Equity Interests of the Borrower, net of the applicable acquired company’s cash (including investments of
the type described in Section 5.02(c)(vi)) balance as shown on its most recent financial statements delivered in connection with the applicable Permitted Acquisition) to be paid on a singular basis in connection with any applicable Permitted
Acquisition as set forth in the applicable Permitted Acquisition Documents executed by the Borrower or any of its Subsidiaries in order to consummate the applicable Permitted Acquisition. 
 “Permitted Acquisition Documents” means, with respect to any acquisition proposed by the Borrower or any Subsidiary, final copies
or substantially final drafts if not executed at the required time of delivery of the purchase agreement, sale agreement, merger agreement or other agreement evidencing such acquisition, including, without limitation, all legal opinions and each
other document executed, delivered, contemplated by or prepared in connection therewith and any amendment, modification or supplement to any of the foregoing. 
 “Permitted Holder” means Tilman J. Fertitta and his estate, spouse and lineal descendants, and the legal representatives of any of the foregoing, and the trustees of any bona fide trusts of
which any of the foregoing are the sole beneficiaries and grantors, or any corporation, limited partnership, limited liability company or similar entity, all of the Voting Interests of which are owned by any of the foregoing. 
 “Permitted Liens” means the Liens permitted pursuant to Section 5.02(b). 
 “Person” means an individual, partnership, corporation (including a business trust), limited liability company, joint stock
company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. 
 “Plan” means a Single Employer Plan or a Multiple Employer Plan. 
 “Pledged Debt”
has the meaning specified in the Security Agreement. 
 “Pledged Equity” has the meaning specified in the Security
Agreement. 
 “Preferred Interests” means, with respect to any Person, Equity Interests issued by such Person that
are entitled to a preference or priority over any other Equity Interests issued by such Person upon any distribution of such Person’s property and assets, whether by dividend or upon liquidation. 
 “Project” shall have the same meaning as “Project” in the First Lien Credit Agreement. 
 “Project Budgets” shall have the same meaning as “Project Budgets” in the First Lien Credit Agreement. 
 “Project Construction Schedules” shall have the same meaning as “Project Construction Schedules” in the First Lien
Credit Agreement. 
 “Project Cost” shall have the same meaning as “Project Cost” in the First Lien Credit
Agreement. 
  

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 “Project Plans” shall have the same meaning as “Project Plans” in the
First Lien Credit Agreement. 
 “Real Property” shall mean, collectively, all right, title and interest (including
any leasehold, mineral or other estate) in and to any and all parcels of or interests in real property owned, leased or operated by any Person, whether by lease, license or other means, together with, in each case, all easements, hereditaments and
appurtenances relating thereto, all improvements and appurtenant fixtures and equipment, all general intangibles and contract rights and other property and rights incidental to the ownership, lease or operation thereof. 
 “Redeemable” means, with respect to any Equity Interest, any Debt or any other right or obligation, any such Equity Interest,
Debt, right or obligation that (a) the issuer has undertaken to redeem at a fixed or determinable date or dates, whether by operation of a sinking fund or otherwise, or upon the occurrence of a condition not solely within the control of the
issuer or (b) is redeemable at the option of the holder. 
 “Refinancing” has the meaning specified in the
Preliminary Statements. 
 “Register” has the meaning specified in Section 8.07(c). 
 “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve System, as in effect from time to time.

 “Related Parties” means, with respect to any Person, such Person’s Affiliates and the directors, officers,
employees, agents and advisors of such Person and of such Person’s Affiliates. 
 “Required Lenders” means, at
any time, Lenders owed or holding at least a majority in interest of the aggregate principal amount of the Advances outstanding at such time; provided, however, that if any Lender making Advances shall be a Defaulting Lender at such
time, there shall be excluded from the determination of Required Lenders at such time the aggregate principal amount of the Advances owing to such Lender (in its capacity as a Lender) and outstanding at such time. 
 “Responsible Officer” means the chief executive officer, president, chief financial officer, chief administrative officer,
treasurer or assistant treasurer of a Loan Party. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 
 “Restricted Payment” has the meaning specified in Section 5.02(f). 
 “S&P”
means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. 
 “Sale-and-Leaseback
Transaction” has the meaning specified in Section 5.02(r). 
 “Secured Hedge Agreement” means any
Hedge Agreement permitted by Article V that is entered into by and between any Loan Party and any Hedge Bank and that is secured by the Collateral Documents. 
 “Secured Obligations” means, collectively, the “Secured Obligations” defined in Section 2 of the Security Agreement. 
  

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 “Secured Parties” means the Agents, the Lenders, the Indemnified Parties and the
Hedge Banks. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder. 
 “Security Agreement” has the meaning specified in Section 3.01(a)(ii). 
 “Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained
for employees of any Loan Party or any ERISA Affiliate and no Person other than the Loan Parties and the ERISA Affiliates or (b) was so maintained and in respect of which any Loan Party or any ERISA Affiliate could have liability under
Section 4069 of ERISA in the event such plan has been or were to be terminated. 
 “Solvent” and
“Solvency” mean, with respect to any Person on a particular date, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including, without limitation,
contingent liabilities, of such Person, (b) the present fair saleable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and
matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in business or
a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital. The amount of contingent liabilities at any time shall be computed as the amount that, in
the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
 “Subordinated Debt” means the collective reference to any Debt of the Borrower or any Subsidiary subordinated in right and time of payment to the Obligations and containing such other terms and
conditions, in each case as are reasonably satisfactory to the Administrative Agent. 
 “Subsidiary” of any Person
means any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in which) more than 50% of (a) the issued and outstanding capital stock (or membership interests) having ordinary voting power to elect a
majority of the Board of Directors (or equivalent governing body) of such Person (irrespective of whether at the time capital stock of any other class or classes of such Person shall or might have voting power upon the occurrence of any
contingency), (b) the interest in the capital or profits of such partnership, joint venture or limited liability company or (c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled by
such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries. For the avoidance of doubt, The Freemont Street Experience Limited Liability Company is not a Subsidiary of any Loan
Party. 
 “Supplemental Collateral Agent” has the meaning specified in Section 7.10(a). 
 “Survey” shall mean a survey of any Mortgaged Property (and all improvements thereon) which is (a) (i) prepared by a
surveyor or engineer licensed to perform surveys in the jurisdiction where such Mortgaged Property is located, (ii) dated (or redated) not earlier than six months prior to the date of delivery thereof unless there shall have occurred within six
months prior to such date of delivery any exterior construction on the site of such Mortgaged Property or any easement, right of way or other interest in the Mortgaged Property has been granted or become effective through operation of law or
otherwise with respect to such Mortgaged Property which, in either case, can be depicted on a survey, in which 

  

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events, as applicable, such survey shall be dated (or redated) after the completion of such construction or if such construction shall not have been
completed as of such date of delivery, not earlier than 20 days prior to such date of delivery, or after the grant or effectiveness of any such easement, right of way or other interest in the Mortgaged Property, (iii) certified by the surveyor
(in a manner reasonably acceptable to the Administrative Agent) to the Administrative Agent, the Collateral Agent and the Title Company, (iv) complying in all respects with the minimum detail requirements of the American Land Title Association
as such requirements are in effect on the date of preparation of such survey and (v) sufficient for the Title Company to remove all standard survey exceptions from the title insurance policy (or commitment) relating to such Mortgaged Property
and issue the endorsements of the type required by Section 3.01(xvi) or (b) otherwise acceptable to the Collateral Agent. 
 “Surviving Debt” means Debt of the Borrower and its Subsidiaries outstanding immediately before and after giving effect to the Initial Extension of Credit. 
 “Taxes” has the meaning specified in Section 2.12(a). 
 “Termination Date” means the earlier of (A) the payment in full of the Facility and (B) December 31, 2014.

 “Title Company” shall mean any title insurance company as shall be retained by Borrower and reasonably acceptable
to the Administrative Agent. 
 “Title Policy” shall have the meaning assigned to such term in
Section 3.01(xvi). 
 “Transactions” has the meaning specified in the Preliminary Statements. 
 “Type” refers to the distinction between Advances bearing interest at the Base Rate and Advances bearing interest at the
Eurodollar Rate. 
 “UCC” means the Uniform Commercial Code as in effect, from time to time, in the State of New
York. 
 “Voting Interests” means shares of capital stock issued by a corporation, or equivalent Equity Interests in
any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been suspended by the
happening of such a contingency. 
 “Wachovia” has the meaning specified in the recital of parties to this Agreement.

 “WCM” has the meaning specified in the recital of parties to this Agreement. 
 “Withdrawal Liability” has the meaning specified in Section 4201(b) of ERISA. 
 SECTION 1.02. Computation of Time Periods; Other Definitional Provisions. In this Agreement and the other Loan Documents in the computation of
periods of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but
excluding”. References in the Loan Documents to any agreement or contract “as amended” shall mean and be a reference to such agreement or contract as amended, amended and restated, supplemented or otherwise modified from
time to time in accordance with its terms. All notices shall be required to be in writing. 
  

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 SECTION 1.03. Accounting Terms. All accounting terms not specifically defined herein shall be
construed in accordance with generally accepted accounting principles in effect from time to time in the United States of America (“GAAP”). If, at any time after the date of this Agreement, any material change is made to GAAP
or the Borrower’s accounting practices that would affect in any material respect the determination of compliance with the covenants set forth in this Agreement, the Borrower shall notify the Administrative Agent of the change and the Borrower
and the Administrative Agent shall negotiate in good faith to amend such covenant to restore the Borrower and the Lenders to the position they occupied before the implementation of such material change in GAAP or accounting practices;
provided that if the Borrower and the Administrative Agent are unable to reach agreement within 30 days following the implementation of such material change, the Administrative Agent shall be permitted, acting in good faith, to make such
amendments to the covenants set forth in this Agreement as it reasonably determines are necessary to restore the Borrower and the Lenders to the position they occupied prior to the implementation thereof. 
 ARTICLE II 
 AMOUNTS AND TERMS OF
THE ADVANCES 
 SECTION 2.01. The Advances. Each Lender severally agrees, on the terms and conditions hereinafter set forth, to
make a single advance (an “Advance”) to the Borrower on the Closing Date in an amount not to exceed such Lender’s Commitment at such time. The Borrowing shall consist of Advances made simultaneously by the Lenders
ratably according to their Commitments. Amounts borrowed under this Section 2.01 and repaid or prepaid may not be reborrowed. 
 SECTION
2.02. Making the Advances. 
 (a) Each Borrowing shall be made on notice, given not later than 12:00 noon (New York City time) on the
third Business Day prior to the date of the proposed Borrowing in the case of a Borrowing consisting of Eurodollar Rate Advances, or the Business Day of the proposed Borrowing in the case of a Borrowing consisting of Base Rate Advances, by the
Borrower to the Administrative Agent, which shall give to each Appropriate Lender prompt notice thereof. Each such notice of a Borrowing (a “Notice of Borrowing”) shall be in writing or electronic mail or by telephone,
confirmed immediately in writing, or telecopier or electronic communication, in substantially the form of Exhibit B-1 hereto, specifying therein the requested (i) date of such Borrowing, (ii) Type of Advances comprising such
Borrowing, (iii) aggregate amount of such Borrowing and (iv) in the case of a Borrowing consisting of Eurodollar Rate Advances, initial Interest Period for each such Advance. Each Appropriate Lender shall, before 1:00 P.M. (New York City
time) on the date of such Borrowing, make available for the account of its Applicable Lending Office to the Administrative Agent at the Administrative Agent’s Account, in same day funds, such Lender’s ratable portion of such Borrowing in
accordance with the respective Commitments under the applicable Facility of such Lender and the other Appropriate Lenders. Upon fulfillment of the applicable conditions set forth in Article III, the Administrative Agent will make such funds
available to the Borrower by crediting the Borrower’s Account. 
 (b) [Reserved]. 
 (c) Anything in subsection (a) above to the contrary notwithstanding, (i) the Borrower may not select Eurodollar Rate Advances for any
Borrowing if the aggregate amount of such Borrowing is less than $1,000,000 or if the obligation of the Appropriate Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to Section 2.09 or 2.10 and (ii) the Advances may
not be outstanding as part of more than 8 separate Borrowings with more than 8 different Interest Periods. 
  

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 (d) Each Notice of Borrowing shall be irrevocable and binding on the Borrower. In the case of any
Borrowing that the related Notice of Borrowing specifies is to be comprised of Eurodollar Rate Advances, the Borrower shall indemnify each Appropriate Lender against any loss, cost or expense incurred by such Lender as a result of any failure to
fulfill on or before the date specified in such Notice of Borrowing for such Borrowing the applicable conditions set forth in Article III, including, without limitation, any loss (including loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the Advance to be made by such Lender as part of such Borrowing when such Advance, as a result of such failure, is not made on such date.

 (e) Unless the Administrative Agent shall have received written notice from an Appropriate Lender prior to the date of any Borrowing under
the Facility that such Lender will not make available to the Administrative Agent such Lender’s ratable portion of such Borrowing, the Administrative Agent may assume that such Lender has made such portion available to the Administrative Agent
on the date of such Borrowing in accordance with subsection (a) of this Section 2.02 and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If and to the
extent that such Lender shall not have so made such ratable portion available to the Administrative Agent, such Lender and the Borrower severally agree to repay or pay to the Administrative Agent forthwith on demand such corresponding amount and to
pay interest thereon, for each day from the date such amount is made available to the Borrower until the date such amount is repaid or paid to the Administrative Agent, at (i) in the case of the Borrower, the interest rate applicable at such
time under Section 2.07 to Advances comprising such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate for 3 days, and then the interest rate applicable at such time under Section 2.07 to Advances comprising such
Borrowing. If such Lender shall pay to the Administrative Agent such corresponding amount, such amount so paid shall constitute such Lender’s Advance as part of such Borrowing for all purposes. 
 (f) The failure of any Lender to make the Advance to be made by it as part of any Borrowing shall not relieve any other Lender of its obligation, if any,
hereunder to make its Advance on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by such other Lender on the date of any Borrowing. 
 (g) The Administrative Agent may conclusively rely on the purported genuineness of all telephonic notices, without any responsibility or liability,
except for its own gross negligence or willful misconduct. 
 SECTION 2.03. [Reserved]. 
 SECTION 2.04. Repayment of Advances. The Borrower hereby promises to pay and shall repay to the Administrative Agent the aggregate principal
amount of all Loans outstanding for the ratable account of the Lenders on the Termination Date. 
 SECTION 2.05. [Reserved].

  

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 SECTION 2.06. Prepayments. 
 (a) Optional. Following the second anniversary of the Closing Date and after the satisfaction of the Discharge Conditions or as permitted by the
First Lien Credit Agreement, the Borrower may, upon at least three Business Days’ notice to the Administrative Agent substantially in the form of Exhibit B-2 (a “Notice of Prepayment”) stating the proposed date
and aggregate principal amount of the prepayment, and if such notice is given the Borrower shall, prepay the outstanding aggregate principal amount of the Advances comprising part of the same Borrowing in whole or ratably in part, together with
accrued interest to the date of such prepayment on the aggregate principal amount prepaid; provided, however, that (i) each partial prepayment shall be in an aggregate principal amount of $1,000,000 in the case of Eurodollar Rate
Advances and $1,000,000 in the case of Base Rate Advances, in each case an integral multiple of $1,000,000 in excess thereof and (ii) if any prepayment of a Eurodollar Rate Advance is made on a date other than the last day of an Interest Period
for such Advance, the Borrower shall also pay any amounts owing pursuant to Section 8.04(d); provided that all prepayments made pursuant to this Section 2.06(a) shall be subject to (i) following the second anniversary of the
Closing Date and on or prior to the third anniversary of the Closing Date, a prepayment premium of 2% of the principal amount thereof and (ii) following the third anniversary of the Closing Date and on or prior to the fourth anniversary of the
Closing Date, a prepayment premium of 1% of the principal amount thereof. Each such prepayment of any Term Advances shall be applied ratably to the installments thereof. Following the fourth anniversary of the Closing Date, prepayment of the
Facility in whole or in part shall not be subject to any prepayment premium. 
 (b) Mandatory. 
 (A) Debt Issuances. After the satisfaction of the Discharge Conditions, the Borrower shall prepay the Advances in the manner set forth in clause
(F) below in amounts equal to one hundred percent (100%) of the aggregate Net Cash Proceeds from any Debt Issuance. Such prepayment shall be made within three (3) Business Days after the date of receipt of Net Cash Proceeds of any
such transaction. 
 (B) Equity Issuances. After the satisfaction of the Discharge Conditions, the Borrower shall prepay the Advances
in the manner set forth in clause (F) below in amounts equal to fifty percent (50%) of the aggregate Net Cash Proceeds from any Equity Issuance or capital contribution to any of the Loan Parties other than (i) sales or issuances of
Equity Interests by Borrower or its Subsidiaries as part of employee benefit plan in existence from time to time or (ii) conversion to equity of any debt securities in connection with which a prepayment under Section 2.06(b)(i)(A) has been
made. Such prepayment shall be made within three (3) Business Days after the date of receipt of Net Cash Proceeds of any such transaction; provided that, no such prepayment shall be required hereunder in connection with Net Cash Proceeds
received by the Borrower from a Parent Qualified Contribution made pursuant to Section 2.06(b)(D), 6.03 or 6.04. 
 (C) Asset
Dispositions. After the satisfaction of the Discharge Conditions, the Borrower shall prepay the Advances in the manner set forth in clause (F) below in amounts equal to one hundred percent (100%) of the aggregate Net Cash Proceeds from
any Asset Disposition by the Borrower or any of its Subsidiaries. Such prepayments shall be made within three (3) Business Days after receipt of Net Cash Proceeds of any such transaction by the Borrower or any of its Subsidiaries;
provided that no prepayments shall be required hereunder for (i) aggregate Asset Dispositions of less than $10,000,000 in any Fiscal Year and (ii) from Asset Dispositions which is reinvested within one hundred and eighty
(180) days after receipt of such Net Cash Proceeds by the Borrower or any of its Subsidiaries in similar replacement assets, or (ii) in connection with Asset Dispositions permitted pursuant to Section 5.02(e). 
  

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 (D) Insurance and Condemnation Events. After the satisfaction of the Discharge Conditions, the
Borrower shall prepay the Advances in the manner set forth in clause (F) below in amounts equal to one hundred percent (100%) of the aggregate Net Cash Proceeds from any Insurance and Condemnation Event by the Borrower or any of its
Subsidiaries. Such prepayments shall be made within three (3) Business Days after receipt of Net Cash Proceeds of any such transaction by the Borrower or any of its Subsidiaries; provided that, if no Default or Event of Default has then
occurred and remains continuing, then no such prepayment shall be required hereunder in connection with Net Cash Proceeds from Insurance and Condemnation Events received by the Borrower or any of its Subsidiaries if the Borrower or any of its
Subsidiaries commits to reinvest to repair, replace or construct the property damaged within three hundred sixty-five (365) days (for the avoidance of doubt the three hundred sixty-five days applies to the commitment to use the funds and not to
the completion of such reinvestment). Upon making such commitment to reinvest such Net Cash Proceeds as described above, to the extent that the aggregate amount of such Net Cash Proceeds exceed $20,000,000, the Borrower shall remit such excess to
the Administrative Agent to be held as cash collateral for the Obligations hereunder, and thereafter, the excess Net Cash Proceeds shall be remitted to the Borrower by the Administrative Agent at such time the Administrative Agent determines that
such Net Cash Proceeds are adequate (when taken together with any Parent Qualified Contributions agreed to by the Borrower and any other cash resources reasonably available to Borrower) to so repair, replace or construct the property damaged (it
being understood that the Administrative Agent shall not unreasonably withhold or delay its approval). 
 (E) Excess Cash Flow. After
the satisfaction of the Discharge Conditions or as permitted by the First Lien Credit Agreement, no later than five (5) days after the date set forth for delivery of annual financials pursuant to Section 5.03(b) the Borrower (commencing
after the Completion) shall make mandatory principal prepayments of the Advances in the manner set forth in clause (F) below in an amount equal to fifty percent (50%) of Excess Cash Flow, if any, for such Fiscal Year; provided that
such percentage shall be reduced to twenty-five percent (25%) if the Leverage Ratio is less than 5.00:1.00 but greater than or equal to 4.00:1.00, and zero percent (0%) if the Leverage Ratio is less than 4.00:1.00, in each case based on the
most recent financial statements of the Borrower delivered pursuant to Section 5.03(b) or (c), as applicable; provided further that first prepayment pursuant to this Section 2.06 (b)(i)(E) shall be for the period commencing the
first full quarter after Completion until the end of such Fiscal Year. 
 (F) Notice; Manner of Payment. Upon the occurrence of any
event triggering the prepayment requirement under clauses (A) through and including (E) above, the Borrower shall promptly deliver a Notice of Prepayment to the Administrative Agent and upon receipt of such notice, the Administrative Agent
shall promptly so notify the Lenders. Each prepayment of the Advances under this Section shall be applied to the Facility. 
 (c) All
prepayments under Section 2.06(b) shall be made together with accrued interest to the date of such prepayment on the principal amount prepaid, together with any amounts owing pursuant to Section 8.04(d). If any payment of Eurodollar Rate
Advances otherwise required to be made under Section 2.06(b) would be made on a day other than the last day of the applicable Interest Period therefor, the Borrower may direct the Administrative Agent to (and if so directed, the Administrative
Agent shall) deposit such payment in the Collateral Account until the last day of the applicable Interest Period at which time the Administrative Agent shall apply the amount of such payment to the prepayment of such Advances; provided,
however, that such Advances shall continue to bear interest as set forth in Section 2.07 until the last day of the applicable Interest Period therefor. 
 (d) No prepayment made pursuant to this Section 2.06, no repayment or acceleration under this Agreement and no change in the terms hereof shall affect the obligations of each Loan Party under any Secured Hedge
Agreement, which obligations shall remain in full force and effect notwithstanding such prepayment, repayment, acceleration or change, subject to the terms of such Hedge Agreement. 
  

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 SECTION 2.07. Interest. 
 (a) Scheduled Interest. The Borrower shall pay interest on the unpaid principal amount of each Advance owing to each Lender from the date of such
Advance until such principal amount shall be paid in full, at the following rates per annum: 
 (i) Base Rate Advances.
During such periods as such Advance is a Base Rate Advance, a rate per annum equal at all times to the sum of (A) the Base Rate in effect from time to time plus (B) the Applicable Margin in effect from time to time, payable in
arrears quarterly on the last day of each March, June, September and December during such periods and on the date such Base Rate Advance shall be Converted or paid in full. 
 (ii) Eurodollar Rate Advances. During such periods as such Advance is a Eurodollar Rate Advance, a rate per annum equal at all
times during each Interest Period for such Advance to the sum of (A) the Eurodollar Rate for such Interest Period for such Advance plus (B) the Applicable Margin in effect on the first day of such Interest Period, payable in arrears
on the last day of such Interest Period and, if such Interest Period has a duration of more than three months, on each day that occurs during such Interest Period every three months from the first day of such Interest Period and on the date such
Eurodollar Rate Advance shall be Converted or paid in full. 
 (b) Default Interest. Upon the occurrence and during the continuance of
an Event of Default, the Administrative Agent, upon the request of the Required Lenders, shall require that the Borrower pay interest (“Default Interest”) on (i) the unpaid principal amount of each Advance owing to each
Lender at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on such Advance pursuant to clause (i) or (ii) of Section 2.07(a), as applicable, and (ii) to the fullest extent
permitted by Applicable Law, the amount of any interest, fee or other amount payable under this Agreement or any other Loan Document to any Agent or any Lender that is not paid when due, from the date such amount shall be due until such amount shall
be paid in full, payable at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid, in the case of interest, on the Type of Advance on which such interest has accrued pursuant to clause (i) or
(ii) of Section 2.07(a), as applicable, and, in all other cases, on Base Rate Advances pursuant to clause (i) of Section 2.07(a); provided, however, that following the acceleration of the Advances, or the giving of
notice by the Administrative Agent to accelerate the Advances, pursuant to Section 6.01, Default Interest shall accrue and be payable hereunder whether or not previously required by the Administrative Agent. 
 (c) Notice of Interest Period and Interest Rate. Promptly after receipt of a Notice of Borrowing pursuant to Section 2.02(a), a notice of
Conversion pursuant to Section 2.09 or a notice of selection of an Interest Period pursuant to the terms of the definition of “Interest Period”, the Administrative Agent shall give notice to the Borrower and each Appropriate Lender of
the applicable Interest Period and the applicable interest rate determined by the Administrative Agent for purposes of clause (a)(i) or (a)(ii) above. 
 SECTION 2.08. Agents’ Fees. The Borrower shall pay to the Arranger and the Administrative Agent for their respective own accounts such fees as may from time to time be agreed between the Borrower and such
Agent. 
  

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 SECTION 2.09. Conversion of Advances. 
 (a) Optional. The Borrower may on any Business Day, upon notice given to the Administrative Agent not later than 11:00 A.M. (New York City time) on
the third Business Day prior to the date of the proposed Conversion and subject to the provisions of Sections 2.07 and 2.10, Convert all or any portion of the Borrowings of one Type comprising the same Borrowing into Borrowings of the other Type;
provided, however, that any Conversion of Eurodollar Rate Borrowings into Base Rate Borrowings shall be made only on the last day of an Interest Period for such Eurodollar Rate Borrowings, any Conversion of Base Rate Borrowings into
Eurodollar Rate Borrowings shall be in an amount not less than the minimum amount specified in Section 2.02(c), no Conversion of any Borrowings shall result in more separate Borrowings than permitted under Section 2.02(c) and each
Conversion of Borrowings comprising part of the same Borrowing under any Facility shall be made ratably among the Appropriate Lenders in accordance with their Commitments under such Facility. Each such notice of Conversion shall, within the
restrictions specified above, specify (i) the date of such Conversion, (ii) the Borrowings to be Converted and (iii) if such Conversion is into Eurodollar Rate Borrowings, the duration of the initial Interest Period for such
Borrowings. Each notice of Conversion shall be irrevocable and binding on the Borrower. 
 (b) Mandatory. On the date on which the
aggregate unpaid principal amount of Eurodollar Rate Borrowings comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to less than $1,000,000, such Borrowings shall automatically Convert into Base Rate Borrowings at the
end of the applicable Interest Period. 
 (i) If the Borrower shall fail to select the duration of any Interest Period for any Eurodollar
Rate Borrowings in accordance with the provisions contained in the definition of “Interest Period” in Section 1.01, the Administrative Agent will forthwith so notify the Borrower and the Appropriate Lenders, whereupon each such
Eurodollar Rate Borrowing shall automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Borrowing. 
 (ii) Upon the occurrence and during the continuance of any Default or any Event of Default, (A) each Eurodollar Rate Borrowing will automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate
Advance and (B) the obligation of the Lenders to make, or to Convert Borrowings into, Eurodollar Rate Borrowings shall be suspended. 
 SECTION 2.10. Increased Costs, Etc. 
 (a) If, due to either (i) the introduction of or any change in or in the
interpretation of any law or regulation or (ii) the compliance with any guideline or request from any central bank or other governmental authority (whether or not having the force of law), there shall be any increase in the cost to any Lender
of agreeing to make or of making, funding or maintaining Eurodollar Rate Borrowings (excluding, for purposes of this Section 2.10, any such increased costs resulting from (x) Taxes or Other Taxes (as to which Section 2.12 shall
govern) and (y) changes in the basis of taxation of overall net income or overall gross income by the United States or by the foreign jurisdiction or state under the laws of which such Lender is organized or has its Applicable Lending Office or
any political subdivision thereof), then the Borrower shall from time to time, upon demand by such Lender (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender additional amounts
sufficient to compensate such Lender for such increased cost incurred by such Lender; provided, however, that a Lender claiming additional amounts under this Section 2.10(a) agrees to (x) use reasonable efforts (consistent
with its internal policy and legal and regulatory restrictions) to designate a different Applicable Lending Office if the making of such a designation would avoid the need for, or reduce the 

  

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amount of, such increased cost that may thereafter accrue and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such
Lender and (y) promptly notify the Borrower of the circumstances. A certificate as to the amount of such increased cost, submitted to the Borrower by such Lender, shall be conclusive and binding for all purposes, absent manifest error.

 (b) [Reserved]. 
 (c) If,
with respect to any Eurodollar Rate Advances under any Facility, Lenders owed at least 51% of the then aggregate unpaid principal amount thereof notify the Administrative Agent that the Eurodollar Rate for any Interest Period for such Advances will
not adequately reflect the cost to such Lenders of making, funding or maintaining their Eurodollar Rate Advances for such Interest Period, the Administrative Agent shall forthwith so notify the Borrower and the Appropriate Lenders, whereupon
(i) each such Eurodollar Rate Advance under such Facility will automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance and (ii) the obligation of the Appropriate Lenders to make, or to
Convert Advances into, Eurodollar Rate Advances shall be suspended until the Administrative Agent shall notify the Borrower that such Lenders have determined that the circumstances causing such suspension no longer exist. 
 (d) Notwithstanding any other provision of this Agreement, if the introduction or effectiveness of or any change in or in the interpretation of any law
or regulation shall make it unlawful, or any central bank or other governmental authority shall assert that it is unlawful, for any Lender or its Eurodollar Lending Office to perform its obligations hereunder to make Eurodollar Rate Advances or to
continue to fund or maintain Eurodollar Rate Advances hereunder, then, on notice thereof and demand therefor by such Lender to the Borrower through the Administrative Agent, (i) each Eurodollar Rate Advance under each Facility under which such
Lender has a Commitment will automatically, upon such demand, Convert into a Base Rate Advance and (ii) the obligation of the Appropriate Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended until the
Administrative Agent shall notify the Borrower that such Lender has determined that the circumstances causing such suspension no longer exist; provided, however, that, before making any such demand, such Lender agrees to use reasonable
efforts (consistent with its internal policy and legal and regulatory restrictions) to designate a different Eurodollar Lending Office if the making of such a designation would allow such Lender or its Eurodollar Lending Office to continue to
perform its obligations to make Eurodollar Rate Advances or to continue to fund or maintain Eurodollar Rate Advances and would not, in the judgment of such Lender, be otherwise disadvantageous to such Lender. 
 (e) In the event that any Lender demands payment of costs or additional amounts pursuant to Section 2.10 or Section 2.12 or asserts, pursuant
to Section 2.10(d), that it is unlawful for such Lender to make Eurodollar Rate Advances or becomes a Defaulting Lender then (subject to such Lender’s right to rescind such demand or assertion within 10 days after the notice from the
Borrower referred to below) the Borrower may, so long as no Event of Default has occurred and is continuing and so long as such costs or additional amounts are materially more than those charged by other Lenders, upon 20 days’ prior written
notice to such Lender and the Administrative Agent, elect to cause such Lender to assign its Advances and Commitments in full to one or more Persons selected by the Borrower so long as (a) each such Person satisfies the criteria of an Eligible
Assignee and is reasonably satisfactory to the Administrative Agent, (b) such Lender receives payment in full in cash of the outstanding principal amount of all Advances made by it and all accrued and unpaid interest thereon and all other
amounts due and payable to such Lender as of the date of such assignment (including, without limitation, amounts owing pursuant to Sections 2.10, 2.12, 2.15 and 8.04) and (c) each such Lender assignee agrees to accept such assignment and to
assume all obligations of such Lender hereunder in accordance with Section 8.07. 
  

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 (f) If any Lender (such Lender, a “Non-Consenting Lender”) has failed to consent
to a proposed amendment, waiver, discharge or termination which pursuant to the terms of Section 8.01 requires the consent of all of the Lenders affected and with respect to which the Required Lenders shall have granted their consent, then
provided no Event of Default then exists, such Borrower shall have the right to replace such Non-Consenting Lender and shall have the right to assign all of such Non-Consenting Lender’s rights and obligations under this Agreement of such
Non-Consenting Lender (including, without limitation, the Advances owing to it, its Commitment or Commitments hereunder and the Note or Notes held by it) to one or more assignees selected by the Borrower so long as any such assignee satisfies the
criteria of an Eligible Assignee and is reasonably acceptable to the Administrative Agent (evidenced by prior written consent), provided that: (a) all Obligations of the Borrower owing to such Non-Consenting Lender being replaced shall
be paid in full to such Non-Consenting Lender concurrently with such assignment, and (b) the replacement Lender shall purchase the foregoing by paying to such Non-Consenting Lender a price equal to the principal amount thereof plus accrued and
unpaid interest and fees thereon. In connection with any such assignment each Borrower, Administrative Agent, such Non-Consenting Lender and the replacement Lender shall otherwise comply with Section 8.07. 
 SECTION 2.11. Payments and Computations. 
 (a) The Borrower shall make each payment hereunder and under the Notes, irrespective of any right of counterclaim or set-off, not later than 12:00 noon (New York City time) on the day when due in U.S. dollars to the Administrative Agent at
the Administrative Agent’s Account in same day funds, with payments being received by the Administrative Agent after such time being deemed to have been received on the next succeeding Business Day. The Administrative Agent will promptly
thereafter cause like funds to be distributed (i) if such payment by the Borrower is in respect of principal, interest, commitment fees or any other Obligation then payable hereunder and under the Notes to more than one Lenders, to such Lender
for the account of their respective Applicable Lending Offices ratably in accordance with the amounts of such respective Obligations then payable to such Lenders and (ii) if such payment by the Borrower is in respect of any Obligation then
payable hereunder to one Lender, to such Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and recording of the
information contained therein in the Register pursuant to Section 8.07(d), from and after the effective date of such Assignment and Acceptance, the Administrative Agent shall make all payments hereunder and under the Notes in respect of the
interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Acceptance shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves. 

(b) The Borrower hereby authorizes each Lender and each of its Affiliates, if and to the extent payment owed to such Lender is not made when due
hereunder or, in the case of a Lender, under the Note held by such Lender, to charge from time to time, to the fullest extent permitted by law, against any or all of the Borrower’s accounts with such Lender or such Affiliate any amount so due.

 (c) All computations of interest based on the Base Rate and fees shall be made by the Administrative Agent on the basis of a year of 365
or 366 days, as the case may be, and all computations of interest based on the Eurodollar Rate or the Federal Funds Rate shall be made by the Administrative Agent on the basis of a year of 360 days, in each case for the actual number of days
(including the first day but excluding the last day) occurring in the period for which such interest, fees or commissions are payable. Each determination by the Administrative Agent of an interest rate, fee or commission hereunder shall be
conclusive and binding for all purposes, absent manifest error. 
  

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 (d) Whenever any payment hereunder or under the Notes shall be stated to be due on a day other than a
Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or commission, as the case may be; provided, however,
that, if such extension would cause payment of interest on or principal of Eurodollar Rate Advances to be made in the next following calendar month, such payment shall be made on the next preceding Business Day. 
 (e) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to any Lender hereunder
that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon such assumption,
cause to be distributed to each such Lender on such due date an amount equal to the amount then due such Lender. If and to the extent the Borrower shall not have so made such payment in full to the Administrative Agent, each such Lender shall repay
to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the
Administrative Agent, at the Federal Funds Rate. 
 (f) Whenever any payment received by the Administrative Agent under this Agreement, any
of the other Loan Documents or any Secured Hedge Agreement is insufficient to pay in full all amounts due and payable to the Agents, the Lenders and the Hedge Banks under or in respect of this Agreement, the other Loan Documents and the Secured
Hedge Agreements on any date, such payment shall be distributed by the Administrative Agent and applied by the Agents and the Lenders in the following order of priority: 
 (i) first, to the payment of all of the fees, indemnification payments, costs and expenses that are due and payable to the Agents
(solely in their respective capacities as Agents) under or in respect of this Agreement and the other Loan Documents on such date, ratably based upon the respective aggregate amounts of all such fees, indemnification payments, costs and expenses
owing to the Agents on such date; 
 (ii) second, to the payment of all of the indemnification payments, costs and
expenses that are due and payable to the Lenders under Section 8.04 hereof, Section 23 of the Security Agreement and any similar section of any of the other Loan Documents on such date, ratably based upon the respective aggregate amounts
of all such indemnification payments, costs and expenses owing to the Lenders on such date; 
 (iii) third, to the
payment of all of the amounts that are due and payable to the Administrative Agent and the Lenders under Sections 2.10 and 2.12 hereof on such date, ratably based upon the respective aggregate amounts thereof owing to the Administrative Agent and
the Lenders on such date; 
 (iv) fourth, to the payment of all of the accrued and unpaid interest on the Obligations
of the Borrower under or in respect of the Loan Documents that is due and payable to the Administrative Agent and the Lenders under Section 2.07(b) on such date, ratably based upon the respective aggregate amounts of all such interest owing to
the Administrative Agent and the Lenders on such date; 
 (v) fifth, to the payment of all of the accrued and unpaid
interest and commissions on the Advances that are due and payable to the Administrative Agent and the Lenders under Sections 2.07(a) on such date, ratably based upon the respective aggregate amounts of all such interest owing to the Administrative
Agent and the Lenders on such date; 
  

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 (vi) sixth, ratably to (A) the payment of the principal amount of all of the
outstanding Advances that is due and payable to the Administrative Agent and the Lenders on such date, ratably based upon the respective aggregate amounts of all such principal owing to the Administrative Agent and the Lenders on such date and
(B) the payment of all amounts payable under Secured Hedge Agreements on such date, ratably based upon the respective aggregate amounts of all such amounts owing to the Hedge Banks on such date; and 
 (vii) seventh, to the payment of all other Obligations of the Loan Parties owing under or in respect of the Loan Documents that are
due and payable to the Administrative Agent and the other Secured Parties on such date, ratably based upon the respective aggregate amounts of all such Obligations owing to the Administrative Agent and the other Secured Parties on such date.

 (g) If the Administrative Agent receives funds for application to the Obligations of the Loan Parties under or in respect of the Loan
Documents under circumstances for which the Loan Documents do not specify the Advances or the Facility to which, or the manner in which, such funds are to be applied, the Administrative Agent shall distribute such funds to each of the Lenders in
accordance with such Lender’s pro rata share of the aggregate principal amount of all Advances outstanding at such time, in repayment or prepayment of such of the outstanding Advances or other Obligations then owing to such Lender, and, in the
case of the Facility, for application to such principal repayment installments thereof, as the Administrative Agent shall direct. 
 SECTION
2.12. Taxes. 
 (a) Any and all payments by any Loan Party to or for the account of any Lender or any Agent hereunder or under the
Notes or any other Loan Document shall be made, in accordance with Section 2.11 or the applicable provisions of such other Loan Document, if any, free and clear of and without deduction for any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto, excluding, in the case of each Lender and each Agent, taxes that are imposed on its overall net income by the United States and taxes that are imposed on its
overall net income (and franchise taxes imposed in lieu thereof) by the state or foreign jurisdiction under the laws of which such Lender or such Agent, as the case may be, is organized or any political subdivision thereof and, in the case of each
Lender, taxes that are imposed on its overall net income (and franchise taxes imposed in lieu thereof) by the state or foreign jurisdiction of such Lender’s Applicable Lending Office or any political subdivision thereof (all such non excluded
taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect of payments hereunder or under the Notes being hereinafter referred to as “Taxes”). If any Loan Party shall be required by law to deduct any
Taxes from or in respect of any sum payable hereunder or under any Note or any other Loan Document to any Lender or any Agent, (i) the sum payable by the Borrower shall be increased as may be necessary so that after such Loan Party and the
Administrative Agent have made all required deductions (including deductions applicable to additional sums payable under this Section 2.12) such Lender or such Agent, as the case may be, receives an amount equal to the sum it would have
received had no such deductions been made, (ii) such Loan Party shall make all such deductions and (iii) such Loan Party shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with Applicable
Law. 
 (b) In addition, a Loan Party shall pay any present or future stamp, documentary, excise, property, intangible, mortgage recording or
similar taxes, charges or levies that arise from any payment made by such Loan Party hereunder or under any Notes, any of the Mortgages or any other 

  

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Loan Documents or from the execution, delivery or registration of, performance under, or otherwise with respect to, this Agreement, the Notes or the other
Loan Documents (hereinafter referred to as “Other Taxes”). 
 (c) The Loan Parties shall indemnify each Lender and
each Agent for and hold them harmless against the full amount of Taxes and Other Taxes, and for the full amount of taxes of any kind imposed or asserted by any jurisdiction on amounts payable under this Section 2.12, imposed on or paid by such
Lender or such Agent (as the case may be) and any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with respect thereto. This indemnification shall be made within 30 days from the date such Lender or such
Agent (as the case may be) makes written demand therefor. 
 (d) Within 30 days after the date of any payment of Taxes directly by a Loan
Party, the appropriate Loan Party shall furnish to the Administrative Agent, at its address referred to in Section 8.02, the original or a certified copy of a receipt evidencing such payment, to the extent such a receipt is issued therefor, or
other written proof of payment thereof that is reasonably satisfactory to the Administrative Agent. In the case of any payment hereunder or under the Notes or the other Loan Documents by or on behalf of a Loan Party through an account or branch
outside the United States or by or on behalf of a Loan Party by a payor that is not a United States person, if such Loan Party determines that no Taxes are payable in respect thereof, such Loan Party shall furnish, or shall cause such payor to
furnish, to the Administrative Agent, at such address, an opinion of counsel acceptable to the Administrative Agent stating that such payment is exempt from Taxes. For purposes of subsections (d) and (e) of this Section 2.12, the
terms “United States” and “United States person” shall have the meanings specified in Section 7701 of the Internal Revenue Code. 
 (e) Each Lender organized under the laws of a jurisdiction outside the United States shall, on or prior to the date of its execution and delivery of this
Agreement in the case of each Lender and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in the case of each other Lender, and from time to time thereafter as reasonably requested in writing by the Borrower (but
only so long thereafter as such Lender remains lawfully able to do so), provide each of the Administrative Agent and the Borrower with two original Internal Revenue Service Forms W-8BEN or W-8ECI or in the case of a Lender that has certified in
writing to the Administrative Agent that it is not (i) a “bank” as defined in Section 881(c)(3)(A) of the Internal Revenue Code, (ii) a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Internal
Revenue Code) of the Borrower or (iii) a controlled foreign corporation related to the Borrower (within the meaning of Section 864(d)(4) of the Internal Revenue Code), Internal Revenue Service Form W-8BEN, as appropriate, or any successor
or other form prescribed by the Internal Revenue Service, certifying that such Lender is exempt from or entitled to a reduced rate of United States withholding tax on payments pursuant to this Agreement or the Notes or any other Loan Document or, in
the case of a Lender that has certified that it is not a “bank” as described above, certifying that such Lender is a foreign corporation, partnership, estate or trust. If the forms provided by a Lender at the time such Lender first becomes
a party to this Agreement indicate a United States interest withholding tax rate in excess of zero, withholding tax at such rate shall be considered excluded from Taxes unless and until such Lender provides the appropriate forms certifying that a
lesser rate applies, whereupon withholding tax at such lesser rate only shall be considered excluded from Taxes for periods governed by such forms; provided, however, that if, at the effective date of the Assignment and Acceptance
pursuant to which a Lender becomes a party to this Agreement, the Lender assignor was entitled to payments under subsection (a) of this Section 2.12 in respect of United States withholding tax with respect to interest paid at such date,
then, to such extent, the term Taxes shall include (in addition to withholding taxes that may be imposed in the future or other amounts otherwise includable in Taxes) United States withholding tax, if any, applicable 

  

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with respect to the Lender assignee on such date. If any form or document referred to in this subsection (e) requires the disclosure of information,
other than information necessary to compute the tax payable and information required on the date hereof by Internal Revenue Service Form W-8BEN or W-8ECI or the related certificate described above, that the applicable Lender reasonably considers to
be confidential, such Lender shall give notice thereof to the Borrower and shall not be obligated to include in such form or document such confidential information. 
 (f) For any period with respect to which a Lender has failed to provide the Borrower with the appropriate form, certificate or other document described in subsection (e) above (other than if such failure is due
to a change in law, or in the interpretation or application thereof, occurring after the date on which a form, certificate or other document originally was required to be provided or if such form, certificate or other document otherwise is not
required under subsection (e) above), such Lender shall not be entitled to indemnification under subsection (a) or (c) of this Section 2.12 with respect to Taxes imposed by the United States by reason of such failure;
provided, however, that should a Lender become subject to Taxes because of its failure to deliver a form, certificate or other document required hereunder, the Loan Parties shall take such steps as such Lender shall reasonably request
to assist such Lender to recover such Taxes. 
 (g) Any Lender claiming any additional amounts payable pursuant to this Section 2.12
agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to change the jurisdiction of its Applicable Lending Office if the making of such a change would avoid the need for, or reduce the amount
of, any such additional amounts that may thereafter accrue and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender. 
 SECTION 2.13. Sharing of Payments, Etc. If any Lender shall obtain at any time any payment (whether voluntary, involuntary, through the exercise of any right of set off, or otherwise, other than as a result of
an assignment pursuant to Section 8.07) (a) on account of Obligations due and payable to such Lender hereunder and under the Notes and the other Loan Documents at such time in excess of its ratable share (according to the proportion of
(i) the amount of such Obligations due and payable to such Lender at such time to (ii) the aggregate amount of the Obligations due and payable to all Lenders hereunder and under the Notes and the other Loan Documents at such time) of
payments on account of the Obligations due and payable to all Lenders hereunder and under the Notes at such time obtained by all the Lenders at such time or (b) on account of Obligations owing (but not due and payable) to such Lender hereunder
and under the Notes and the other Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations owing to such Lender at such time to (ii) the aggregate amount of the
Obligations owing (but not due and payable) to all Lenders hereunder and under the Notes and the other Loan Documents at such time) of payments on account of the Obligations owing (but not due and payable) to all Lenders hereunder and under the
Notes at such time obtained by all of the Lenders at such time, such Lender shall forthwith purchase from the other Lenders such interests or participating interests in the Obligations due and payable or owing to them, as the case may be, as shall
be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided, however, that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase
from each other Lender shall be rescinded and such other Lender shall repay to the purchasing Lender the purchase price to the extent of such Lender’s ratable share (according to the proportion of (i) the purchase price paid to such Lender
to (ii) the aggregate purchase price paid to all Lenders) of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of such other Lender’s required repayment to
(ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered; provided further that, so long as the Obligations under
the Loan Documents shall not have been accelerated, any excess payment received by any Appropriate 
  

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Lender shall be shared on a pro rata basis only with other Appropriate Lenders. The Borrower agrees that any Lender so purchasing an interest or
participating interest from another Lender pursuant to this Section 2.13 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such interest or participating interest,
as the case may be, as fully as if such Lender were the direct creditor of the Borrower in the amount of such interest or participating interest, as the case may be. 
 SECTION 2.14. Use of Proceeds. The proceeds of the Advances and issuances of Letters of Credit shall be available (and the Borrower agrees that it shall use such proceeds and Letters of Credit) solely to
consummate the Transactions and to finance the ongoing working capital and other general corporate purposes of the Borrower and its Subsidiaries, including the financing of Permitted Acquisitions. 
 SECTION 2.15. Defaulting Lenders. Notwithstanding anything in this Agreement to the contrary, as to any Lender which (a) has refused to make
available its portion of any Borrowing (to be made in compliance with Section 3.02) or to fund its portion of any unreimbursed (or disgorged) payment under Section 2.03(c) or (b) has given notice to the Administrative Agent and/or the
Borrower that it does not intend to comply with its obligations under Section 2.01 (in respect of Borrowings that comply with Section 3.02) or under Section 2.03(c) (a “Defaulting Lender”): 
 (a) such Lender shall not be deemed a Required Lender hereunder and such Lender’s (A) Notes, (B) Commitments and
(C) Advances, as applicable, shall be excluded from the calculations set forth in the definition of “Required Lenders” above, 
 (b) [reserved], and 
 (c) such Lender shall not be entitled to receive and Borrower shall not
be required to pay any commitment fee payable in respect of the Commitments. 
 The provisions of this Section 2.15 are not in lieu of any other claim
the Borrower may have against such Defaulting Lender. 
 SECTION 2.16. Evidence of Debt. 
 (a) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Debt of the Borrower to such Lender resulting
from each Advance owing to such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. The Borrower agrees that upon notice by any Lender to the Borrower (with a copy of
such notice to the Administrative Agent) to the effect that a promissory note or other evidence of Debt is required or appropriate in order for such Lender to evidence (whether for purposes of pledge, enforcement or otherwise) the Advances owing to,
or to be made by, such Lender, the Borrower shall promptly execute and deliver to such Lender, with a copy to the Administrative Agent, a Note, in substantially the form of Exhibit A hereto, payable to the order of such Lender in a principal
amount equal to the Commitment of such Lender. All references to Notes in the Loan Documents shall mean Notes, if any, to the extent issued hereunder. 
 (b) The Register maintained by the Administrative Agent pursuant to Section 8.07(d) shall include a control account, and a subsidiary account for each Lender, in which accounts (taken together) shall be recorded
(i) the date and amount of each Borrowing made hereunder, the Type of Advances comprising such Borrowing and, if appropriate, the Interest Period applicable thereto, (ii) the 

  

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terms of each Assignment and Acceptance delivered to and accepted by it, (iii) the amount of any principal or interest due and payable or to become due
and payable from the Borrower to each Lender hereunder, and (iv) the amount of any sum received by the Administrative Agent from the Borrower hereunder and each Lender’s share thereof. 
 (c) Entries made in good faith by the Administrative Agent in the Register pursuant to subsection (b) above, and by each Lender in its account or
accounts pursuant to subsection (a) above, shall be prima facie evidence of the amount of principal and interest due and payable or to become due and payable from the Borrower to, in the case of the Register, each Lender and, in the case
of such account or accounts, such Lender, under this Agreement, absent manifest error; provided, however, that the failure of the Administrative Agent or such Lender to make an entry, or any finding that an entry is incorrect, in the
Register or such account or accounts shall not limit or otherwise affect the obligations of the Borrower under this Agreement. 
 ARTICLE
III 
 CONDITIONS OF LENDING 
 SECTION 3.01. Conditions Precedent to the Extension of Credit. The obligation of each Lender to make an Advance on the occasion of the Extension of Credit hereunder is subject to the satisfaction of the following conditions precedent
before or concurrently with the Extension of Credit: 
 (a) In addition to its receipt of executed counterparts of this
Agreement by the Borrower and each Lender, the Administrative Agent shall have received on or before the day of the Initial Extension of Credit the following, each dated such day (unless otherwise specified), in form and substance satisfactory to
the Administrative Agent (unless otherwise specified) and (except for the Notes) in sufficient copies for each Lender: 
 (i)
The Notes payable to the order of the Lenders to the extent requested by the Lenders pursuant to the terms of Section 2.16. 
 (ii) A security agreement in substantially the form of Exhibit D hereto (together with each other security agreement and security agreement supplement delivered pursuant to Section 5.01(l), in each case as amended, the
“Security Agreement”), duly executed by the Borrower and each Subsidiary of the Borrower, as grantors thereunder, together with: 
 (A) certificates representing any Pledged Equity (other than Pledged Equity of Loan Parties that requires Gaming Authority approval) referred to therein accompanied by undated stock powers executed in blank and
instruments evidencing any Pledged Debt indorsed in blank, 
 (B) proper financing statements in form appropriate for filing
under the Uniform Commercial Code of all jurisdictions that the Administrative Agent may deem necessary or desirable in order to perfect and protect the first priority liens and security interests created under the Security Agreement, covering the
Collateral described in the Security Agreement, 
 (C) completed requests for information, dated on or before the date of the
Initial Extension of Credit listing all effective financing statements filed in the jurisdictions referred to in clause (B) above that name any of its Subsidiaries as debtor, together with copies of such other financing statements, 

 

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 (D) evidence that all instruments and documents sufficient for all other recordings and
filings of or with respect to the Security Agreement that the Administrative Agent may deem necessary or desirable in order to perfect and protect the security interest created thereunder have been delivered to the Administrative Agent, 

(E) evidence of the insurance required by the terms of the Security Agreement, and 
 (F) evidence that all other action that the Administrative Agent may deem necessary or desirable in order to perfect and protect the
first priority liens and security interests created under the Security Agreement has been taken, completed or otherwise provided for in a manner reasonably satisfactory to the Administrative Agent (including, without limitation, receipt of duly
executed payoff letters and UCC-3 termination statements) except for any approvals required under Gaming Laws for the pledge of Equity Interests in the Loan Parties that hold licenses which will be applied for and obtained after the Closing Date.

 (iii) An intellectual property security agreement in substantially the form of Exhibit C to the Security Agreement
(together with each other intellectual property security agreement and intellectual property security agreement supplement delivered pursuant to Section 5.01(l), in each case as amended, the “Intellectual Property Security
Agreement”), duly executed by the Borrower and each of its Subsidiaries, together with evidence that all action that the Administrative Agent may deem necessary or desirable in order to perfect and protect the first priority liens and
security interests created under the Intellectual Property Security Agreement has been taken. 
 (iv) Certified copies of the
resolutions of the Board of Directors of each Loan Party approving the transaction contemplated hereby and each Loan Document to which it is or is to be a party, and of all documents evidencing other necessary corporate action and governmental and
other third party approvals and consents, if any, with respect to the transaction contemplated hereby and each Loan Document to which it is or is to be a party. 
 (v) A copy of a certificate of the Secretary of State of the jurisdiction of organization of each Loan Party, dated reasonably near the
date of the Initial Extension of Credit, certifying (A) as to a true and correct copy of the charter or other constitutive document of such Loan Party and each amendment thereto on file in such Secretary’s office and (B) that
(1) such amendments are the only amendments to such Loan Party’s charter or other constitutive document on file in such Secretary’s office, and (2) such Loan Party is in good standing or presently subsisting under the laws of the
State of the jurisdiction of its organization. 
 (vi) A certificate of each Loan Party, signed on behalf of such Loan Party
by its President or a Vice President or such other officer as reasonably approved by the Administrative Agent, dated the date of the Initial Extension of Credit (the statements made in which certificate shall be true on and as of the date of the
Initial Extension of Credit), 

  

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certifying as to (A) the absence of any amendments to the charter or other constitutive document of such Loan Party since the date of the Secretary of
State’s certificate referred to in Section 3.01(a)(v), (B) a true and correct copy of the bylaws or other governing document of such Loan Party as in effect on the date on which the resolutions referred to in Section 3.01(a)(iv)
were adopted and on the date of the Initial Extension of Credit, (C) the due organization and good standing or valid existence of such Loan Party under the laws of the jurisdiction of its organization, and the absence of any proceeding for the
dissolution or liquidation of such Loan Party, (D) the truth of the representations and warranties contained in the Loan Documents as though made on and as of the date of the Initial Extension of Credit, (E) the absence of any event
occurring and continuing, or resulting from the Initial Extension of Credit, that constitutes a Default, and (F) the names and true signatures of the officers of such Loan Party authorized to sign each Loan Document to which it is or is to be a
party and the other documents to be delivered hereunder and thereunder. 
 (vii) Such financial, business and other
information regarding each Loan Party and its Subsidiaries as the Administrative Agent shall have requested, including, without limitation: (A) copies of satisfactory unaudited consolidated balance sheets, statements of income and cash flows
for the Borrower and its subsidiaries for the year ended December 31, 2006, (B) evidence of the Borrower having filed with the Securities and Exchange Commission on Form 8-K the unaudited consolidated balance sheets, statements of income
and cash flows for the Borrower and its subsidiaries for the year ended December 31, 2006, (C) copies of satisfactory audited consolidated financial statements for the Borrower and its subsidiaries for the three fiscal years ended
December 31, 2005 and interim unaudited financial statements for each quarterly period ended since the last audited financial statements for which financial statements are available, (D) pro forma consolidated balance sheets,
statements of income and cash flows for the Borrower and its subsidiaries for the four-quarter period most recently ended prior to the Closing Date for which financial statements are available giving pro forma effect to the Transactions
(prepared in accordance with Regulation S-X under the Securities Act of 1933, as amended, and all other rules and regulations of the SEC under such Securities Act, and including other adjustments reasonably acceptable to the Arranger) and
(E) yearly projections prepared by management of balance sheets, income statements and cash flow statements of the Borrower and its subsidiaries, in each case in form and substance satisfactory to the Administrative Agent. 
 (viii) The Guaranty made by the Subsidiaries of the Borrower. 
 (ix) Evidence of the Borrower’s insurance coverage reasonably satisfactory to the Administrative Agent, demonstrating that the
Borrower’s existing insurance coverage remains in effect. 
 (x) A Notice of Borrowing or Notice of Issuance, as
applicable, relating to the Initial Extension of Credit. 
 (xi) [Reserved]. 
 (xii) A favorable opinion of Andrews Kurth LLP, counsel for the Loan Parties, in form reasonably acceptable to the Administrative Agent.

  

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 (xiii) Favorable opinions of Brownstein Hyatt Farber Schreck, P.C., local counsel for the
Loan Parties, in substantially the form reasonably acceptable to the Administrative Agent. 
 (xiv) A favorable opinion of
Steven L. Scheinthal, General Counsel for the Borrower, in form reasonably acceptable to the Administrative Agent. 
 (xv)
Deeds of trust, trust deeds and mortgages in substantially the form of Exhibit H hereto (with such changes as may be required to account for local law matters) and otherwise in form and substance satisfactory to the Collateral Agent, covering
the Mortgaged Properties as of the Closing Date (together with each other mortgage delivered pursuant to Section 5.01(l), in each case as amended, amended and restated, supplemented or modified the “Mortgages”), duly
executed by the Borrower or such other appropriate Loan Party, together with such certificates, affidavits, questionnaires or returns as shall be required in connection with the recording or filing thereof to create a lien under Applicable Law, and
such financing statements and any other instruments necessary to grant a mortgage lien under the Applicable Laws of any applicable jurisdiction, all of which shall be in form and substance reasonably satisfactory to Collateral Agent. 
 (xvi) With respect to each Mortgage, a policy of title insurance (or marked up title insurance commitment or pro forma policy having the
effect of a policy of title insurance) insuring the Lien of such Mortgage as a valid first mortgage Lien on the Mortgaged Property and fixtures described therein in the amount equal to not less than 115% of the fair market value of such Mortgaged
Property and fixtures, which fair market value is set forth on Schedule 3.01(a)(xvi), which policy (or such marked-up commitment) (each, a “Title Policy”) shall (A) be issued by the Title Company, (B) to the
extent necessary, include such reinsurance arrangements (with provisions for direct access, if necessary) as shall be reasonably acceptable to the Collateral Agent, (C) contain a “tie-in” or “cluster” endorsement, if
available under Applicable Law (i.e., policies which insure against losses regardless of location or allocated value of the insured property up to a stated maximum coverage amount), (D) have been supplemented by such endorsements as shall be
reasonably requested by the Collateral Agent, and (E) contain no exceptions to title other than exceptions reasonably acceptable to the Collateral Agent. 
 (xvii) With respect to each Mortgaged Property, such affidavits, certificates, information (including financial data) and instruments of
indemnification (including a so-called “gap” indemnification) as shall be required to induce the Title Company to issue the Title Policy/ies and endorsements contemplated above. 
 (xviii) Evidence reasonably acceptable to the Collateral Agent of payment by Borrower of all Title Policy premiums, search and examination
charges, escrow charges and related charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of the Mortgages and issuance of the Title Policies referred to above. 
 (xix) With respect to each Mortgaged Property, each Loan Party shall have made all notifications, registrations and filings, to the extent
required by, and in accordance with, all Governmental Real Property Disclosure Requirements applicable to such Mortgaged Property. 
  

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 (xx) A completed Federal Emergency Management Agency Standard Flood Hazard Determination
with respect to each Mortgaged Property. 
 (xxi) Appraisals for the Mortgaged Properties that satisfy the applicable
requirements of the Real Estate Appraisal Reform Amendments of FIRREA and are otherwise in form and substance satisfactory to the Collateral Agent. 
 (xxii) A survey with respect to each Mortgaged Property to the extent required by the Administrative Agent. 
 (xxiii) Evidence of the insurance required by the terms of the Mortgages and other Loan Documents. 
 (xxiv) With respect to each Mortgaged Property, to the extent required by the Administrative Agent a Phase I environmental assessment and such other environmental report reasonably requested by the Administrative Agent by an environmental
engineering firm and satisfactory to the Administrative Agent showing no environmental conditions in violation of Environmental Laws or liabilities under Environmental Laws. 
 (xxv) Such other consents, agreements and confirmations of third parties as the Administrative Agent may deem necessary or desirable and
evidence that all other actions that the Administrative Agent may deem necessary or desirable in order to create valid first and subsisting Liens on the property described in the Mortgages has been taken. 
 (xxvi) The Existing Debt shall be repaid in full and terminated and all collateral security therefor shall be released, and the
Administrative Agent shall have received a pay-off letter in form and substance satisfactory to it evidencing such repayment, termination, reconveyance and release. 
 (xxvii) The Intercreditor Agreement, duly executed by the parties thereto. 
 (xxviii) A Perfection Certificate, duly executed by the Loan Parties. 
 (b) The Administrative Agent shall have received satisfactory confirmation that the Facilities shall have been rated by each of
Moody’s and S&P. 
 (c) Since December 31, 2006, there shall not have occurred any change, development, event or
circumstance which in the opinion of the Lenders could reasonably be expected to have a Material Adverse Effect and the Administrative Agent shall not have become aware of any information or other matter that is inconsistent in a material and
adverse manner with any information or other material theretofore disclosed to the Administrative Agent. 
 (d) The
Administrative Agent shall have received all fees, and the Administrative Agent shall have received all reasonable expenses (including the accrued reasonable fees and expenses of counsel to the Administrative Agent, including local counsel) required
to be paid, reimbursed or delivered on or before the Closing Date. 
  

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 (e) The Administrative Agent shall be satisfied that there are no encumbrances on any
material real property owned by the Borrower or any of its Subsidiaries other than Permitted Liens. 
 (f) [Reserved].

 (g) Concurrently with the initial borrowing hereunder, the First Lien Loan Documents shall be fully executed and delivered,
and not more than $210,000,000 shall be borrowed under the First Lien Loan Documents, the proceeds to be applied, along with the proceeds of the Advances hereunder, to fund the Transactions. 
 (h) The Borrower shall have paid to the Administrative Agent and the Lenders the fees set forth or referenced in Section 2.08 and any
other accrued and unpaid fees or commissions due hereunder (including, without limitation, legal fees and expenses) and to any other Person such amount as may be due thereto in connection with the transactions contemplated hereby, including all
taxes, fees and other charges in connection with the execution, delivery, recording, filing and registration of any of the Loan Documents. 
 (i) The Administrative Agent shall have received (i) copies of the most recent Gaming Authority gaming audit reports of the Borrower’s operations and the results of such audit reports shall be reasonably
satisfactory to the Administrative Agent and (ii) reasonable confirmation from the Borrower that all Gaming Licenses are in full force and effect as of the Closing Date and that the Loan Parties are in good standing with all applicable Gaming
Authorities. 
 (j) All opinions, certificates and other instruments and all proceedings in connection with the transactions
contemplated by this Agreement shall be satisfactory in form and substance to the Administrative Agent. The Administrative Agent shall have received copies of all other documents, certificates and instruments reasonably requested thereby, with
respect to the transactions contemplated by this Agreement. 
 SECTION 3.02. [Reserved]. 
 SECTION 3.03. [Reserved]. 
 SECTION
3.04. [Reserved]. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 
 SECTION 4.01. Representations and Warranties of the Loan
Parties. Each of the Borrower and its Subsidiaries represents and warrants as follows: 
 (a) Organization; Power;
Qualification. The Borrower and each of its Subsidiaries (i) is a corporation or limited liability company duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) is duly
qualified and in good standing as a foreign corporation in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify or be licensed except where the failure to so qualify or be
licensed would not be reasonably likely to have a Material Adverse Effect and (iii) has all requisite corporate or limited liability company power and authority (including, 

  

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without limitation, all Governmental Authorizations) to own or lease and operate its properties and to carry on its business as now conducted and as proposed
to be conducted. All of the outstanding Equity Interests in the Borrower have been validly issued, are fully paid and non assessable and free and clear of all Liens, except those created under the Collateral Documents. 
 (b) Ownership. Set forth on Schedule 4.01(b) hereto is a complete and accurate list of all Subsidiaries of each Loan Party,
showing as of the date hereof (as to each such Subsidiary) the jurisdiction of its organization, the number of shares of each class of its Equity Interests authorized, and the number outstanding, if any, on the date hereof and the percentage of each
such class of its Equity Interests owned (directly or indirectly) by such Loan Party and the number of shares covered by all outstanding options, warrants, rights of conversion or purchase and similar rights at the date hereof. All of the
outstanding Equity Interests in each Loan Party’s Subsidiaries have been validly issued with respect to those Subsidiaries which are corporations, are fully paid and non assessable, and are owned by such Loan Party or one or more of its
Subsidiaries free and clear of all Liens, except those created under the Collateral Documents. 
 (c) Authorization of
Agreement, Loan Documents and Borrowing. The execution, delivery and performance by such Loan Party of each Loan Document to which it is or is to be a party, and the consummation of the transactions contemplated hereby, are within such Loan
Party’s corporate or limited liability company powers, have been duly authorized by all necessary corporate or limited liability company action, and do not (i) contravene such Loan Party’s constitutive or governing documents,
(ii) violate any law, rule, regulation (including, without limitation, Regulation X of the Board of Governors of the Federal Reserve System), order, writ, judgment, injunction, decree, determination or award, (iii) conflict with or result
in the breach of, or constitute a default or require any payment to be made under, any contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument binding on or affecting any Loan Party, any of its Subsidiaries or any of
their properties which breach or conflict could reasonably be expected to have a Material Adverse Effect or (iv) except for the Liens created under the Loan Documents, result in or require the creation or imposition of any Lien upon or with
respect to any of the properties of any Loan Party or any of its Subsidiaries. None of such Loan Parties or any of its Subsidiaries is in violation of any such law, rule, regulation, order, writ, judgment, injunction, decree, determination or award
or in breach of any such contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument, the violation or breach of which would be reasonably likely to have a Material Adverse Effect. 
 (d) Authorization of Agreement, Loan Documents and Borrowing. Each of the Borrower and its Subsidiaries has the right, power and
authority and has taken all necessary corporate, limited liability company and other action to authorize the execution, delivery and performance of this Agreement and each of the other Loan Documents to which it is a party in accordance with their
respective terms. This Agreement and each of the other Loan Documents have been duly executed and delivered by the duly authorized officers of the Borrower and each of its Subsidiaries party thereto, and each such document constitutes the legal,
valid and binding obligation of the Borrower or its Subsidiary party thereto, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal
debtor relief laws from time to time in effect which affect the enforcement of creditors’ rights in general and the availability of equitable remedies. 
 (e) Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. The execution, delivery and performance by the Borrower
and its Subsidiaries of the Loan Documents to which each such Person is a party, in accordance with their respective terms, the 

  

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Borrowings hereunder and the transactions contemplated hereby do not and will not, by the passage of time, the giving of notice or otherwise,
(i) violate any Applicable Law relating to the Borrower or any of its Subsidiaries where the failure to obtain such Governmental Authorization could reasonably be expected to have a Material Adverse Effect, (ii) conflict with any
Governmental Approval relating to such Person, which could reasonably be expected to have a Material Adverse Effect or (iii) require any consent or authorization of, filing with, or other act in respect of, an arbitrator or Governmental
Authority or other Governmental Approval and no consent of any other Person is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement other than consents, authorizations, filings or other acts
or consents the failure to obtain or make which could not reasonably be expected to have a Material Adverse Effect and other than consents or filings under the UCC and other than approval of the pledge of Equity Interests of the Loan Parties that
hold Gaming Licenses by the Gaming Authorities. 
 (f) Compliance with Law; Governmental Approvals. Each of the
Borrower and its Subsidiaries (i) has all Governmental Approvals required by any Applicable Law for it to conduct its business, each of which is in full force and effect, is final and not subject to review on appeal and is not the subject of
any pending or, to the best of its knowledge, threatened attack by direct or collateral proceeding, (ii) is in compliance with each Governmental Approval applicable to it and in compliance with all other Applicable Laws relating to it or any of
its respective properties and (iii) has timely filed all material reports, documents and other materials required to be filed by it under all Applicable Laws with any Governmental Authority and has retained all material records and documents
required to be retained by it under Applicable Law except in each case (i), (ii) or (iii) where the failure to have, comply or file could not reasonably be expected to have a Material Adverse Effect. 
 (g) [Reserved]. 
 (h) [Reserved]. 
 (i) Financial Statements. The audited Consolidated balance sheet of the Borrower and its
Subsidiaries as at December 31, 2005 and the related audited Consolidated statement of income and Consolidated statement of cash flows of the Borrower and its Subsidiaries for the Fiscal Year then ended and, accompanied by an unqualified
opinion of Pricewaterhouse Coopers, independent public accountants, fairly present the Consolidated financial condition of the Borrower and its Subsidiaries as of such date and the Consolidated results of operations of the Borrower and its
Subsidiaries for the periods ended on such date, in each case all in accordance with GAAP applied on a consistent basis. The unaudited Consolidated balance sheet of the Borrower and its Subsidiaries as at December 31, 2006 and the related
unaudited Consolidated statement of income and Consolidated statement of cash flows of the Borrower and its Subsidiaries for the Fiscal Year then ended, and the financial information as presented in Borrower’s Form 8-K dated April 30,
2007, each fairly present the Consolidated financial condition of the Borrower and its Subsidiaries as of such date and the Consolidated results of operations of the Borrower and its Subsidiaries for the periods ended on such date, in each case all
in accordance with GAAP applied on a consistent basis. Since December 31, 2005 there has been no Material Adverse Effect. 
 (j) Pro Forma Financial Statements. The Consolidated pro forma balance sheet of the Borrower and its Subsidiaries as at March 31, 2007, and the related Consolidated pro forma statements of income of the Borrower and its
Subsidiaries for the year then ended, certified by the Chief Financial Officer of the Borrower, copies of which have been furnished to the Administrative 

  

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Agent, fairly present the Consolidated pro forma financial condition of the Borrower and its Subsidiaries as at such date and the Consolidated pro forma
results of operations of the Borrower and its Subsidiaries for the period ended on such date, in each case giving effect to the transactions contemplated hereby. 
 (k) Projections. The Consolidated projections, forecasted balance sheet, statement of income and statement of cash flows of the
Borrower and its Subsidiaries delivered to the Administrative Agent pursuant to Section 3.01(a)(vii), and of each of the Borrower and its Subsidiaries and of the Borrower and its Subsidiaries delivered to the Administrative Agent pursuant to
Section 5.03, were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such forecasts, and represented, at the time of delivery, the
Borrower’s best estimate of its future financial performance. 
 (l) Information Memorandum. All written
information (other than projections) that has been or will hereafter be made available to the Administrative Agent, any Arranger, any other Lender or any potential Lender by the Borrower or any of its representatives in connection with preparation
of the Information Memorandum pertaining to the Loan Parties taken as a whole is and will be, as of the dates on which such information was provided or to which such information relates, complete and correct in all material respects and does not or
will not, as of the dates on which such information was or is to be provided or to which such information relates, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained
therein not misleading in light of the circumstances under which such statements were or are made and all projections, if any, that have been or will be prepared by the Borrower and made available to the Administrative Agent, any Arranger, any other
Lender or any potential Lender in connection with the Loan Documents have been or will be prepared in good faith based upon reasonable assumptions at the time they were made (it being understood that such projections are subject to significant
uncertainties and contingencies, many of which are beyond the Borrower’s control, and that no assurance can be given that the projections will be realized). 
 (m) Margin Stock. The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin
Stock, and no proceeds of any Advance will be used directly or indirectly to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock. 
 (n) Investment Company Act. Neither any Loan Party nor any of its Subsidiaries is an “investment company”, or an
“affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company”, as such terms are defined in the Investment Company Act of 1940, as amended. Neither the making of any Advances,
nor the issuance of any Letters of Credit, nor the application of the proceeds or repayment thereof by the Borrower, nor the consummation of the other transactions contemplated by the Loan Documents, will violate any provision of any such Act or any
rule, regulation or order of the Securities and Exchange Commission thereunder. 
 (o) Other Agreements. Neither any
Loan Party nor any of its Subsidiaries is a party to any indenture, loan or credit agreement or any lease or other agreement or instrument or subject to any charter or constitutive or corporate restriction that would be reasonably likely to have a
Material Adverse Effect. 
  

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 (p) Perfection. All filings and other actions necessary or desirable to perfect
and protect the security interest in the Collateral created under the Collateral Documents have been duly made or taken or otherwise provided in a manner reasonably satisfactory to the Administrative Agent for and are in full force and effect,
except for delivery of the stock certificates of the Loan Parties which hold Gaming Licenses pursuant to the Security Agreement, and the Collateral Documents create, or will create, upon delivery of such certificate, in favor of the Collateral Agent
for the benefit of the Secured Parties a valid and, together with such filings and other actions, perfected first priority security interest in the Collateral (other than Equity Interests in Unrestricted Subsidiaries) and perfected first priority
security interest in Equity Interests issued by Subsidiaries to the extent not prohibited by the terms of financing arrangements of the Subsidiaries, in each case subject to Permitted Liens and securing the payment of the Secured Obligations, and
all filings and other actions necessary or desirable to perfect and protect such security interest have been duly taken or otherwise provided for in a manner reasonably satisfactory to the Administrative Agent. The Loan Parties are the legal and
beneficial owners of the Collateral free and clear of any Lien, except for the liens and security interests created or permitted under the Loan Documents and Permitted Liens. 
 (q) Solvency. Immediately following the making of Initial Extension of Credit and after giving effect to the application of the
proceeds of the Initial Extension of Credit, the Borrower and its Subsidiaries on a Consolidated basis will be Solvent. The Borrower does not intend to, or to permit any of its Subsidiaries to, and does not believe that it or any of its Subsidiaries
will, incur debts beyond its ability to pay such debts as they mature, taking into account the timing of and amounts of cash anticipated to be received by it or any such Subsidiary and the timing of the amounts of cash anticipated to be payable on
or in respect of its Debt or the Debt of any such Subsidiary. 
 (r) Environmental Laws. (i) The operations and
properties of each Loan Party and each of its Subsidiaries comply in all material respects with all applicable Environmental Laws and Environmental Permits, all past non-compliance with such Environmental Laws and Environmental Permits has been
resolved without material ongoing obligations or costs, and no circumstances exist that would be reasonably likely to (A) form the basis of an Environmental Action against any Loan Party or any of its Subsidiaries or any of their properties
that would have a Material Adverse Effect or (B) cause any such property to be subject to any restrictions on ownership, occupancy, use or transferability under any Environmental Law. 
 (ii) None of the properties currently or formerly owned or operated by any Loan Party or any of its Subsidiaries is listed or proposed for
listing on the NPL or on the CERCLIS or any analogous foreign, state or local list or is adjacent to any such property; there are no and never have been any underground or aboveground storage tanks or any surface impoundments, septic tanks, pits,
sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed on any property currently owned or operated by any Loan Party or any of its Subsidiaries in violation of Environmental Laws or, to the best of its
knowledge, on any property formerly owned or operated by any Loan Party or any of its Subsidiaries in violation of Environmental Laws; there is no asbestos or asbestos-containing material on any property currently owned or operated by any Loan Party
or any of its Subsidiaries in violation of Environmental Laws; and Hazardous Materials have not been released, discharged or disposed of on any property currently or formerly owned or operated by any Loan Party or any of its Subsidiaries in
violation of Environmental Laws. 
  

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 (iii) Neither any Loan Party nor any of its Subsidiaries is undertaking, and has not
completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any actual or threatened release, discharge or disposal of Hazardous Materials at any
site, location or operation, either voluntarily or pursuant to the order of any governmental or regulatory authority or the requirements of any Environmental Law; and all Hazardous Materials generated, used, treated, handled or stored at, or
transported to or from, any property currently or formerly owned or operated by any Loan Party or any of its Subsidiaries have been disposed of in accordance with Environmental Laws. 
 (s) (i) Neither any Loan Party nor any of its Subsidiaries is party to any tax sharing agreement other than a tax sharing agreement with
the Parent or as otherwise approved by the Administrative Agent. 
 (ii) Each Loan Party and each of its Subsidiaries and
Affiliates has filed, has caused to be filed or has been included in all tax returns (Federal, state, local and foreign) required to be filed and has paid all taxes shown thereon to be due, together with applicable interest and penalties.

 (t) Neither the business nor the properties of any Loan Party or any of its Subsidiaries are affected by any fire,
explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not covered by insurance) that would be reasonably likely to have a Material
Adverse Effect. 
 (u) [Reserved]. 
 (v) Set forth on Schedule 4.01(v) hereto is a complete and accurate list of all Surviving Debt, showing as of the date hereof the
obligor and the principal amount outstanding thereunder, the maturity date thereof. 
 (w) Set forth on Schedule
4.01(w) hereto is a complete and accurate list of all Liens on the property or assets of the Borrower or any of its Subsidiaries, showing as of the date hereof the principal amount of the obligations secured thereby. 
 (x) Schedules 8(a) and 8(b) to the Perfection Certificate dated the Closing Date contain a true and complete list of each
interest in Real Property (i) owned by any Loan Party as of the date hereof and describes the type of interest therein held by such Loan Party and whether such owned Real Property is leased and if leased whether the underlying lease contains
any option to purchase all or any portion of such Real Property or any interest therein or contains any right of first refusal relating to any sale of such Real Property or any portion thereof or interest therein and (ii) leased, subleased or
otherwise occupied or utilized by any Loan Party, as lessee, sublessee, franchisee or licensee, as of the date hereof and describes the type of interest therein held by such Loan Party and, in each of the cases described in clauses (i) and
(ii) of this Section 4.01(x), whether any lease requires the consent of the landlord or tenant thereunder, or other party thereto, to the Transactions. 
 (y) Set forth on Schedule 4.01(y) hereto is a complete and accurate list of all Investments held by any Loan Party or any of its
Subsidiaries on the date hereof, showing as of the date hereof the amount, obligor or issuer and maturity, if any, thereof. 
 (z) [Reserved]. 
  

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 (aa) Material Contracts. Set forth on Schedule 4.01(aa) hereto is a
complete and accurate list of all Material Contracts of each Loan Party and its Subsidiaries as of the Closing Date, showing as of the Closing Date the parties, subject matter and term thereof. Each such Material Contract (i) has been duly
authorized, executed and delivered by all parties thereto, (ii) has not been amended or otherwise modified, (iii) is in full force and effect and is binding upon and enforceable against all parties thereto in accordance with its terms, and
(iv) there exists no default under any Material Contract by any party thereto, except, with respect to clauses (ii) and (iii) after the Closing Date, to the extent such Material Contract has been appropriately replaced with other
agreements reasonably satisfactory to the Administrative Agent. 
 (bb) Employee Relations. Each of the Borrower and
its Subsidiaries is not, as of the Closing Date, party to any collective bargaining agreement nor has any labor union been recognized as the representative of its employees except as set forth on Schedule 4.01(bb). The Borrower knows of no
pending, threatened or contemplated strikes, work stoppage or other collective labor disputes involving its employees or those of its Subsidiaries that could reasonably be expected to have a Material Adverse Effect. 
 (cc) Burdensome Provisions. No Subsidiary is party to any agreement or instrument or otherwise subject to any restriction or
encumbrance that restricts or limits its ability to make dividend payments or other distributions in respect of its Equity Interests to the Borrower or any Subsidiary or to transfer any of its assets or properties to the Borrower or any other
Subsidiary in each case other than existing under or by reason of the Loan Documents or Applicable Law. 
 (dd)
Litigation. Except for matters existing on the Closing Date and set forth on Schedule 4.01(dd), there are no actions, suits or proceedings pending nor, to the knowledge of the Borrower, threatened against or in any other way relating
adversely to or affecting the Borrower or any Subsidiary thereof or any of their respective properties in any court or before any arbitrator of any kind or before or by any Governmental Authority that (i) have or could reasonably be expected to
have a Material Adverse Effect, or (ii) materially adversely affect the enforceability of the Loan Documents. 
 (ee) (i)
No ERISA Event that would reasonably be expected to have a Material Adverse Effect has occurred or is reasonably expected to occur with respect to any Plan. 
 (ii) Schedule B (Actuarial Information) to the most recent annual report (Form 5500 Series) for each Plan, copies of which have been filed
with the Internal Revenue Service and furnished to the Lenders, is complete and accurate in all material respects and fairly presents the funding status of such Plan, and since the date of such Schedule B there has been no material adverse change in
such funding status. 
 (iii) Neither any Loan Party nor any ERISA Affiliate has incurred or is reasonably expected to incur
any material Withdrawal Liability to any Multiemployer Plan. 
 (iv) Neither any Loan Party nor any ERISA Affiliate has been
notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or has been terminated, within the meaning of Title IV of ERISA, and no such Multiemployer Plan is reasonably expected to be in reorganization or to be
terminated, within the meaning of Title IV of ERISA. 
 (ff) The Borrower has insurance in full force and effect which
satisfies the requirements of Section 5.01(e). 
  

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 (gg) No event of default (or condition which would constitute an event of default with
the giving of notice or the passage of time) under any material capital stock, financing agreements, lease agreements or other Material Contracts of the Borrower or any of its Subsidiaries has occurred or is continuing. 
 (hh) Each Loan Party is in compliance in all material respects with the requirements of all Applicable Laws (including, without
limitation, the Patriot Act), rules, regulations and all orders, writs, injunctions, decrees, determinations or awards applicable to it or to its properties, except in such instances in which (i) such requirement of law, rule, regulation,
order, writ, injunction, decree, determination or award is being contested in good faith by appropriate proceedings diligently conducted or (ii) the failure to comply therewith, either individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect. 
 (ii) None of the Loan Parties or any of their Subsidiaries is (i) named on
the list of Specially Designated Nationals or Blocked Persons maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control available at http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or (ii)(A) an agency of the
government of a country, (B) an organization controlled by a country, or (C) a person resident in a country that is subject to a sanctions program identified on the list maintained by the U.S. Department of the Treasury’s Office of
Foreign Assets Control and available at http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html, or as otherwise published from time to time, as such program may be applicable to such agency, organization or person, and the proceeds from any
Advances hereunder will not be used to fund any operations in, finance any investments or activities in, or make any payments to, any such country, agency, organization or person. 
 (jj) No Debt other than the Debt in respect of the Obligations under the Loan Documents has been designated as “Designated Senior
Debt” (or any comparable term) under any instrument, indenture, loan or credit or similar agreement evidencing any Debt that is subordinated to the Obligations under the Loan Documents. 
 (kk) The Borrower and each of its Subsidiaries have valid fee, leasehold or other interests in all Real Property which they use in their
respective businesses, as well as good and marketable title to all their other property, and none of such property is subject to any Lien, except as permitted in Section 5.02(b). The Borrower and each of its Subsidiaries own, or possess the
right to use, all trademarks, trade names, copyrights, patents, patent rights, franchises, licenses and other intangible assets that are used in the conduct of their respective businesses as now operated, and none of such items, to the best
knowledge of the Borrower, conflicts with, infringe, misappropriate, dilute, misuse or otherwise violate the intellectual property rights of any other Person to the extent that such conflict, infringement, misappropriation, dilution, misuse or
violation would reasonably be expected to have a Material Adverse Effect. 
 (ll) Gaming Matters. Except as set forth
on Schedule 4.01(ll), Borrower, and its Subsidiaries, have obtained (i) approval for all Gaming Licenses necessary or appropriate to conduct their businesses and operations conducted or as contemplated to be conducted, and (ii) as
of the Closing Date, all required approvals from Gaming Authorities of the transactions contemplated hereby and by the other Loan Documents, subject to the provisions of such approvals or conditions in respect of the Gaming License as are
satisfactory to the Administrative Agent. 
  

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 SECTION 4.02. Survival of Representations and Warranties, Etc. All representations and warranties
set forth in this Article IV and all representations and warranties contained in any certificate or any of the Loan Documents (including, but not limited to, any such representation or warranty made in or in connection with any amendment thereto)
shall constitute representations and warranties made under this Agreement. All representations and warranties made under this Agreement shall be made or deemed to be made at and as of the Closing Date (except those that are expressly made as of a
specific date), shall survive the Closing Date and shall not be waived by the execution and delivery of this Agreement, any investigation made by or on behalf of the Lenders or any borrowing hereunder. 
 ARTICLE V 
 COVENANTS OF THE LOAN
PARTIES 
 SECTION 5.01. Affirmative Covenants. So long as any Advance or any other Obligation of any Loan Party under any Loan
Document shall remain unpaid, each of the Borrower and its Subsidiaries will: 
 (a) Compliance with Laws, Etc. Comply,
and cause each of its Subsidiaries to comply, in all material respects, with all Applicable Laws, rules, regulations and orders the non-compliance with which would be reasonably expected to have a Material Adverse Effect, such compliance to include,
without limitation, compliance with the Patriot Act and Racketeer Influenced and Corrupt Organizations Chapter of the Organized Crime Control Act of 1970. 
 (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its Subsidiaries to pay and discharge, before the same shall become delinquent, (i) all taxes, assessments and governmental charges or levies
imposed upon it or upon its property and (ii) all lawful claims that, if unpaid, might by law become a Lien upon its property; provided, however, that neither the Borrower nor any of its Subsidiaries shall be required to pay or
discharge any such tax, assessment, charge or claim that is being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained and if the contest stays enforcement of the Lien. 
 (c) Compliance with Environmental Laws. Comply, and cause each of its Subsidiaries and all lessees and other Persons operating or
occupying its properties to comply, in all material respects, with all applicable Environmental Laws and Environmental Permits; obtain and renew, and cause each of its Subsidiaries to obtain and renew, all Environmental Permits necessary for its
operations and properties; and conduct, and cause each of its Subsidiaries to conduct, any investigation, study, sampling and testing, and undertake any cleanup, removal, remedial or other action necessary to remove and clean up all Hazardous
Materials from any of its properties in accordance with the requirements of all Environmental Laws, in each case where failure would be reasonably expected to have a Material Adverse Effect; provided, however, that neither the Borrower
nor any of its Subsidiaries shall be required to undertake any such cleanup, removal, remedial or other action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and appropriate reserves are being
maintained with respect to such circumstances. 
 (d) Compliance with ERISA. In addition to and without limiting the
generality of Section 5.01(a), (a) except where the failure to so comply could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) comply with all material applicable provisions of
ERISA and the regulations and published interpretations thereunder with respect to all Employee Benefit Plans, (ii) not take any action or fail to take action the result of 

  

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which could be a liability to the PBGC or to a Multiemployer Plan, (iii) not participate in any prohibited transaction that could result in any civil
penalty under ERISA or tax under the Internal Revenue Code and (iv) operate each Employee Benefit Plan in such a manner that will not incur any tax liability under Section 4980B of the Internal Revenue Code or any liability to any
qualified beneficiary as defined in Section 4980B of the Internal Revenue Code and (b) furnish to the Administrative Agent upon the Administrative Agent’s request such additional information about any Employee Benefit Plan as may be
reasonably requested by the Administrative Agent. 
 (e) Maintenance of Insurance. Maintain, and cause each of its
Subsidiaries to maintain, insurance with responsible and reputable insurance companies or associations and such insurance shall be maintained in such amounts and covering such risks as is usually carried by companies engaged in similar businesses
and owning similar properties in the same general areas in which the Borrower or any of its Subsidiaries operates. The Administrative Agent shall have received a copy of, or a certificate as to coverage under, the insurance policies required by
Section 3.01(a)(xxiii) and the applicable provisions of the Loan Documents, each of which shall be endorsed or otherwise amended to include a “standard” or “New York” lender’s loss payable or mortgagee endorsement (as
applicable) and shall name the Collateral Agent, on behalf of the Secured Parties, as additional insured, in form and substance satisfactory to the Administrative Agent. 
 (f) Flood Insurance. With respect to each Mortgaged Property, obtain flood insurance in such total amount as the Administrative
Agent or the Required Lenders may from time to time require, if at any time the area in which any improvements are located on any Mortgaged Property is designated a “flood hazard area” in any Flood Insurance Rate Map published by the
Federal Emergency Management Agency (or any successor agency), and otherwise comply with the National Flood Insurance Program as set forth in the Flood Disaster Protection Act of 1973, as amended from time to time. 
 (g) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause each of its Subsidiaries to preserve and maintain,
its existence, legal structure, legal name, rights (charter and statutory), permits, licenses, approvals, privileges and franchises, except as permitted herein and except where the failure would not reasonably be expected to cause a Material Adverse
Effect. Maintain and operate its business in substantially the same manner as operated and conducted on the Closing Date 
 (h) Visitation Rights. At any reasonable time and from time to time and, unless an Event of Default or Default has occurred and is continuing, upon reasonable notice subject to applicable Gaming Laws, permit any of the Agents or any
of the Lenders, or any agents or representatives thereof, to examine and make copies of and abstracts from the records and books of account of, and visit the properties of, the Borrower and any of its Subsidiaries, and to discuss the affairs,
finances and accounts of the Borrower and any of its Subsidiaries with any of their officers or directors and with their independent certified public accountants, all at the expense of the Borrower. 
 (i) Accounting Methods and Financial Records. Maintain a system of accounting, and keep proper books, records and accounts (which
shall be true and complete in all material respects) as may be required or as may be necessary to permit the preparation of financial statements in accordance with GAAP and in compliance with the regulations of any Governmental Authority having
jurisdiction over it or any of its properties. 
  

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 (j) Maintenance of Properties, Etc. (i) Maintain and preserve, and cause each
of its Subsidiaries to maintain and preserve, all of its properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted and (ii) from time to time make or cause to be made,
and cause each of its Subsidiaries to make or cause to be made, all appropriate repairs, renewals and replacements thereof except where failure to do so would not materially adversely affect the use of the related property. 
 (k) [Reserved]. 
 (l) Covenant to Guarantee Obligations and Give Security. Upon (x) the request of the Collateral Agent following the occurrence and during the continuance of an Event of Default, (y) the formation or acquisition of any new
direct or indirect Subsidiary by the Borrower or any of its Subsidiaries or (z) the acquisition of any material property by the Borrower or any of its Subsidiaries, and such property, in the judgment of the Collateral Agent, shall not already
be subject to a perfected security interest having the priority required under the applicable Collateral Documents in favor of the Collateral Agent for the benefit of the Secured Parties, then in each case at the Borrower’s expense: 

(i) in connection with the formation or acquisition of a Subsidiary, within 15 days after such formation or acquisition, cause each
such Subsidiary, and cause each direct and indirect parent of such Subsidiary (if it has not already done so), to duly execute and deliver to the Collateral Agent a guaranty or guaranty supplement, in form and substance satisfactory to the
Collateral Agent, guaranteeing the other Loan Parties’ obligations under the Loan Documents, 
 (ii) within 15 days after
(A) such request, furnish to the Collateral Agent a description of the real and personal properties of the Loan Parties and their respective Subsidiaries in detail satisfactory to the Collateral Agent and (B) such formation or acquisition,
furnish to the Collateral Agent a description of the real and personal properties of such Subsidiary or the real and personal properties so acquired, in each case in detail satisfactory to the Collateral Agent, 
 (iii) within 30 days after (A) such request or acquisition of property by the Borrower or any of its Subsidiaries, duly execute and
deliver, and cause each Subsidiary of the Borrower to duly execute and deliver, to the Collateral Agent such additional mortgages, deeds of trust, pledges, assignments, security agreement supplements, intellectual property security agreement
supplements and other security agreements as specified by, and in form and substance satisfactory to the Collateral Agent, securing payment of all the Secured Obligations of such Subsidiary of the Borrower under the Loan Documents and constituting
valid and enforceable perfected Liens subject only to Permitted Liens or other Liens reasonably acceptable to the Collateral Agent on all such properties and (B) such formation or acquisition of any new Subsidiary, duly execute and deliver and
cause each Subsidiary to duly execute and deliver to the Collateral Agent mortgages, deeds of trust, pledges, assignments, security agreement supplements, intellectual property security agreement supplements and other security agreements as
specified by, and in form and substance satisfactory to the Collateral Agent, securing payment of all of the obligations of such Subsidiary under the Loan Documents; provided that if such new property is Equity Interests in a CFC, only 66% of
such voting Equity Interests and 100% of such non-voting Equity Interests (to the extent and for so long as the pledge of any greater percentage would have material adverse tax consequences for the Borrower) shall be pledged in favor of the Secured
Parties, 
  

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 (iv) within 30 days after such request, formation or acquisition, take, and cause each
such Subsidiary of the Borrower and each newly acquired or newly formed Subsidiary to take, whatever action (including, without limitation, the filing of Uniform Commercial Code financing statements, the recording of mortgages or deeds of trust, the
giving of notices and the endorsement of notices on title documents) may be necessary or advisable in the opinion of the Collateral Agent to vest in the Collateral Agent (or in any representative of the Collateral Agent designated by it) valid and
subsisting Liens on the properties purported to be subject to the mortgages, deeds of trust, pledges, assignments, security agreement supplements, intellectual property security agreement supplements and security agreements delivered pursuant to
this Section 5.01(l), enforceable against all third parties in accordance with their terms, 
 (v) within 60 days after
such formation or acquisition, deliver to the Collateral Agent, upon the request of the Collateral Agent in its sole discretion, a signed copy of a favorable opinion, addressed to the Collateral Agent and the other Secured Parties, of counsel for
the Loan Parties acceptable to the Collateral Agent as to (1) the matters contained in clauses (i), (iii) and (iv) above (2) such guaranties, guaranty supplements, pledges, assignments, security agreement supplements,
intellectual property security agreement supplements and security agreements being legal, valid and binding obligations of each Loan Party thereto enforceable in accordance with their terms, as to the matters contained in clause (iv) above, and
(3) such recordings, filings, notices, endorsements and other actions being sufficient to create valid perfected Liens on such properties, 
 (vi) as promptly as practicable after such request, formation or acquisition, deliver, upon the request of the Collateral Agent in its sole discretion, to the Collateral Agent with respect to each parcel of Real
Property owned, leased or otherwise held by the Borrower or any of its Subsidiaries and each newly acquired or newly formed Subsidiary title reports, surveys, counsel opinions and other reports, each in scope, form and substance satisfactory to the
Collateral Agent to the extent not previously provided; provided, however, that to the extent that the Borrower or any of its Subsidiaries shall have otherwise received any of the foregoing items with respect to such real property,
such items shall, promptly after the receipt thereof, be delivered to the Collateral Agent, and 
 (vii) at any time and from
time to time, promptly execute and deliver, and cause to execute and deliver, each Subsidiary of the Borrower and each newly acquired or newly formed Subsidiary any and all further instruments and documents and take, and cause each Subsidiary of the
Borrower and each newly acquired or newly formed Subsidiary to take, all such other action as the Collateral Agent may deem necessary or desirable in obtaining the full benefits of, or in perfecting and preserving the Liens of, such guaranties,
mortgages, deeds of trust, pledges, assignments, security agreement supplements, intellectual property security agreement supplements and security agreements. 
 (m) Further Assurances. 
 (i) Promptly upon request by the Administrative Agent, correct, and cause each of its Subsidiaries promptly to correct, any material defect or error that may be discovered in any Loan Document or in the execution,
acknowledgment, filing or recordation thereof, and 
  

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 (ii) Promptly upon request by the Administrative Agent, do, execute, acknowledge,
deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, conveyances, pledge agreements, mortgages, deeds of trust, assignments, financing statements and continuations thereof, termination statements,
notices of assignment, transfers, certificates, assurances and other instruments as the Administrative Agent, may reasonably require from time to time in order to (A) carry out more effectively the purposes of the Loan Documents, (B) to
the fullest extent permitted by Applicable Law, subject any Loan Party’s or any of its Subsidiaries’ properties, assets, rights or interests to the Liens now or hereafter intended to be covered by any of the Collateral Documents,
(C) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be created thereunder and (D) assure, convey, grant, assign, transfer, preserve, protect and confirm more
effectively unto the Secured Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under any Loan Document or under any other instrument executed in connection with any Loan Document to which any Loan Party or
any of its Subsidiaries is or is to be a party, and cause each of its Subsidiaries to do so. 
 (n) Preparation of
Environmental Reports. At the request of the Administrative Agent or the Collateral Agent from time to time on account of a material environmental condition relating to any of the properties described in the Mortgages or during the continuance
of an Event of Default, but in any event no more than once during any year, provide to the Lenders within 60 days after such request, at the expense of the Borrower, an environmental site assessment report for any of its or its Subsidiaries’
properties described in the Mortgages, prepared by an environmental consulting firm reasonably acceptable to the Administrative Agent or the Collateral Agent, indicating the presence or absence of Hazardous Materials and the estimated cost of any
compliance, removal or remedial action as required by Environmental Laws in connection with any Hazardous Materials on such properties; without limiting the generality of the foregoing, if the Administrative Agent or the Collateral Agent determines
at any time that a material risk exists that any such report will not be provided within the time referred to above, the Administrative Agent or the Collateral Agent may retain an environmental consulting firm to prepare such report at the expense
of the Borrower, and the Borrower hereby grants and agrees to cause any Subsidiary that owns any property described in the Mortgages to grant at the time of such request to the Agents, the Lenders, such firm and any agents or representatives thereof
an irrevocable non exclusive license, subject to the rights of tenants and to the requirement that business operations not be substantially impaired or limited, to enter onto their respective properties to undertake such an assessment. 

(o) Compliance with Terms of Leaseholds. Make all payments and otherwise perform all obligations in respect of all leases of
Real Property to which the Borrower or any of its Subsidiaries is a party as the tenant, keep such leases in full force and effect and not allow such leases to lapse or be terminated or any rights to renew such leases to be forfeited or cancelled,
notify the Administrative Agent of any default by any party with respect to such leases and cooperate with the Administrative Agent in all respects to cure any such default, and cause each of its Subsidiaries to do so, except, in any case, where the
failure to do so, either individually or in the aggregate, would not be reasonably likely to have a Material Adverse Effect. 
 (p) Hedging. Within 90 days of the Closing Date hedge the floating interest expense of Funded Debt of the Borrower and its Subsidiaries for at least three years after the Closing Date, by maintaining one or more interest rate Hedge
Agreements with any of the Lenders (or with another financial institution approved by the Administrative Agent in writing) in such aggregate notional amount as is necessary so that, with respect to at least 30% of the outstanding 

  

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principal balance as of the Closing Date of all Funded Debt of the Borrower and its Subsidiaries, the obligations of the Borrower and its Subsidiaries to
make floating rate payments thereunder over such three years will be hedged with fixed rate payments to be paid by the Borrower and its Subsidiaries under such Hedge Agreements, all upon terms and subject to such conditions as shall be reasonably
acceptable to the Administrative Agent and the Lender entering into such transaction with the Borrower or any other applicable Subsidiary. Any prepayment, acceleration, reduction, increase or any other change in the terms of the Advances hereunder
will not alter the notional amount of any such interest rate Hedge Agreements or otherwise affect the obligation of the Borrower or any of its Subsidiaries to continue making payments under any such interest rate Hedge Agreements, which will remain
in full force and effect notwithstanding any such prepayment, acceleration, reduction, increase or change, subject to the terms of such interest rate Hedge Agreements. 
 (q) Performance of Material Contracts. Perform and observe all the terms and provisions of each Material Contract to be performed
or observed by it, maintain (to the extent necessary in the exercise of its reasonable business judgment) each such Material Contract in full force and effect, enforce each such Material Contract in accordance with its terms and, upon request of the
Administrative Agent, make to each other party to each such Material Contract such demands and requests for information and reports or for action as the Borrower or any of its Subsidiaries is entitled to make under such Material Contract, and cause
each of its Subsidiaries to do so, except, in any case, where the failure to do so, either individually or in the aggregate, would not be reasonably likely to have a Material Adverse Effect. 
 (r) Equity Interest of Borrower’s Subsidiaries. The Borrower shall own at all times 100% of the Equity Interests in each of
its Subsidiaries. 
 (s) Capital Expenditures. Make capital expenditures for maintenance in the amount of no less than
$7,500,000 in the aggregate for the Borrower and its Subsidiaries during each period of four consecutive fiscal quarters of the Borrower. 
 (t) Gaming Licenses. (a) Ensure that all necessary Gaming Licenses from any Gaming Authority for the ownership, use, or operation of the businesses or properties owned or operated by each Borrower and its
Subsidiaries are in full force and effect, and (b) comply, in all material respects, with all of the provisions thereof applicable to them. 
 (u) Post-Closing Matters. The Borrower shall execute and deliver the documents and complete the tasks set forth on Schedule 5.01(u), in each case within the time limits specified on such schedule.

 SECTION 5.02. Negative Covenants. Until all of the Obligations have been paid and satisfied in full, the Borrower has not and will
not permit any of its Subsidiaries to: 
 (a) Limitations on Indebtedness. Create, incur, assume or suffer to exist any
Debt except: 
 (i) Debt incurred pursuant to the Loan Documents (excluding Hedge Agreements permitted pursuant to the
following clause (ii)) and First Lien Loan Documents in an amount not to exceed the Cap Amount; 
  

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 (ii) Debt incurred in connection with a Hedge Agreements (A) with a counterparty and
upon terms and conditions (including interest rate) reasonably satisfactory to the Administrative Agent or (B) required pursuant to Section 5.01(p); provided that any counterparty that is a Lender shall be deemed satisfactory to the
Administrative Agent; 
 (iii) Debt existing on the Closing Date and not otherwise permitted under this Section and listed on
Schedule 4.01(v), and the renewal, refinancing, extension and replacement (but not the increase in the aggregate principal amount) thereof; and listed on Schedule 4.01(v) and any refinancings, refundings, renewals or extensions
thereof; provided that (A) the principal amount of such Debt 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 and by an amount equal to any existing commitments unutilized thereunder and (B) any refinancing, refunding, renewal or extension of any Subordinated Debt shall be
(1) on subordination terms at least as favorable to the Lenders, (2) no more restrictive on the Borrower and its Subsidiaries than the Subordinated Debt being refinanced, refunded, renewed or extended and (3) in an amount not more
than the amount outstanding at the time of such refinancing, refunding, renewal or extension; 
 (iv) Debt of the Borrower and
its Subsidiaries incurred in connection with Capitalized Leases in an aggregate amount not to exceed $12,000,000 on any date of determination; 
 (v) purchase money Debt of the Borrower and its Subsidiaries in an aggregate amount not to exceed $12,000,000 on any date of determination; 
 (vi) Debt of a Person existing at the time such Person became a Subsidiary or assets were acquired from such Person, to the extent such
Debt was not incurred in connection with or in contemplation of such Person becoming a Subsidiary or the acquisition of such assets, not to exceed in the aggregate at any time outstanding $30,000,000; 
 (vii) Guaranties in favor of the Administrative Agent for the benefit of the Administrative Agent and the Lenders; 
 (viii) Guaranties with respect to Debt permitted pursuant to clauses (i) through (v) of this subsection; 
 (ix) additional Subordinated Debt so long as after giving effect to such Subordinated Debt the Leverage Ratio would be less than or equal
to .25 below the applicable Leverage Ratio set forth in Section 5.04(a) calculated on a pro forma basis on the date of the last quarter reported and the Interest Coverage Ratio (as defined in the First Lien Credit Agreement) would be at
least .25 greater than the applicable Interest Coverage Ratio set forth in Section 5.04(b) of the First Lien Credit Agreement calculated on a pro forma basis on the date of the last quarter reported; provided that in the case of
each issuance of Subordinated Debt, (A) no Default or Event of Default shall have occurred and be continuing or would be caused by the issuance of such Subordinated Debt, and (B) the Administrative Agent shall have received satisfactory
written evidence that the Borrower would be in compliance with all covenants contained in this Agreement on a pro forma basis after giving effect to the issuance of any such Subordinated Debt; 
  

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 (x) Additional Debt not otherwise permitted pursuant to this Section in an aggregate
amount outstanding not to exceed $12,000,000; 
 (xi) Debt incurred in the ordinary course of business in respect of
obligations of the Borrower or any Subsidiary to pay the deferred purchase price of goods or services or progress payments in connection with such goods and services that are paid by the Borrower or such Subsidiary in accordance with the applicable
payment terms; and 
 (xii) Debt of any Loan Party owed to any other Loan Party in an aggregate amount not to exceed
$60,000,000; 
 provided that no agreement or instrument with respect to Debt permitted to be incurred by this Section shall restrict,
limit or otherwise encumber (by covenant or otherwise) the ability of any Subsidiary of the Borrower to make any payment to the Borrower or any of its Subsidiaries (in the form of dividends, intercompany advances or otherwise) for the purpose of
enabling the Borrower to pay the Obligations. 
 (b) Limitations on Liens. Create, incur, assume or suffer to exist any
Lien on or with respect to any of its assets or properties (including, without limitation, shares of Equity Interests), real or personal, whether now owned or hereafter acquired, except: 
 (i) Liens for taxes, assessments and other governmental charges or levies (excluding any Lien imposed pursuant to any of the provisions of
ERISA or Environmental Laws) not yet due or as to which the period of grace (not to exceed thirty (30) days), if any, related thereto has not expired or which are being contested in good faith and by appropriate proceedings if adequate reserves
are maintained to the extent required by GAAP and otherwise comply with the provisions of Section 5.01(b); 
 (ii) the
claims of materialmen, mechanics, carriers, warehousemen, processors or landlords for labor, materials, supplies or rentals incurred in the ordinary course of business, (A) which are not overdue for a period of more than thirty (30) days
or (B) which are being contested in good faith and by appropriate proceedings if adequate reserves are maintained to the extent required by GAAP and if the contest stays enforcement of the Lien; 
 (iii) Liens consisting of deposits or pledges made in the ordinary course of business in connection with, or to secure payment of,
obligations under workers’ compensation, unemployment insurance or similar legislation; 
 (iv) Liens constituting
encumbrances in the nature of zoning restrictions, easements and rights or restrictions of record on the use of real property, which in the aggregate do not, in any case, detract from the value of such property or impair the use thereof in the
ordinary conduct of business; 
 (v) Liens of the Administrative Agent and Collateral Agent for the benefit of the Secured
Parties under the Loan Documents and the Liens of the First Lien Administrative Agent for the benefit of the First Lien Secured Parties under the First Lien Loan Documents provided that such Lien shall be subject and subordinated to the Lien granted
to the Administrative Agent and Collateral Agent and shall be subject to the provisions of the Intercreditor Agreement; 
  

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 (vi) Liens existing on any asset of any Person at the time such Person becomes a
Subsidiary or is merged or consolidated with or into a Subsidiary which (i) were not created in contemplation of or in connection with such event and (ii) do not extend to or cover any other property or assets of the Borrower or any
Subsidiary, so long as any Debt related to any such Liens is permitted under Section 5.02(a)(vi); 
 (vii) Liens not
otherwise permitted hereunder securing obligations not at any time exceeding in the aggregate $12,000,000; 
 (viii) Liens not
otherwise permitted by this Section and in existence on the Closing Date and described on Schedule 4.01(w); 
 (ix)
Liens securing Debt permitted under Sections 5.02(a)(v) and (vi); provided that (A) such Liens shall be created substantially simultaneously with the acquisition or lease of the related asset, (B) such Liens do not at any time
encumber any property other than the property financed by such Debt, (C) the amount of Debt secured thereby is not increased and (D) the principal amount of Debt secured by any such Lien shall at no time exceed one hundred percent
(100%) of the original purchase price or lease payment amount of such property at the time it was acquired; 
 (x)
Deposits or pledges to secure the performance of bids, tenders, contracts (other than contracts for the payment of Debt), leases, or other similar obligations arising in the ordinary course of business; and 
 (xi) Liens securing obligations of the Borrower or any Subsidiary under Secured Hedge Agreements pursuant to the Collateral Documents.

 (c) Limitations on Loans, Advances, Investments and Acquisitions. Purchase, own, invest in or otherwise acquire,
directly or indirectly, any Equity Interests, interests in any partnership or joint venture (including, without limitation, the creation or capitalization of any Subsidiary), evidence of Debt or other obligation or security, substantially all or a
portion of the business or assets of any other Person or any other investment or interest whatsoever in any other Person, or make or permit to exist, directly or indirectly, any loans, advances or extensions of credit to, or any investment in cash
or by delivery of property in, any Person except: 
 (i) investments (A) in Persons that are not Loan Parties in amounts
not to exceed (1) $15,000,000 in the aggregate if the Leverage Ratio based on the most recent financial statements of the Borrower delivered pursuant to Section 5.03(b) or (c), as applicable, is greater than or equal to 6.0:1.0, or
(2) $18,000,000 in the aggregate if the Leverage Ratio based on the most recent financial statements of the Borrower delivered pursuant to Section 5.03(b) or (c), as applicable, is less than 6.0:1.0, (B) in Loan Parties existing on
the Closing Date, (C) in Loan Parties formed or acquired after the Closing Date so long as the Borrower and the Loan Parties comply with the applicable provisions of Section 5.02(l) and (D) in the other loans, advances and investments
described on Schedule 5.02(c)(i) existing on the Closing Date; 
 (ii) investments in (A) marketable direct
obligations issued or unconditionally guaranteed by the United States or any agency thereof maturing within one hundred twenty (120) days from the date of acquisition thereof, (B) commercial paper maturing no more than one hundred twenty
(120) days from the date of creation thereof and currently 

  

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having the highest rating obtainable from either S&P or Moody’s, (C) certificates of deposit maturing no more than one hundred twenty
(120) days from the date of creation thereof issued by commercial banks incorporated under the laws of the United States, each having combined capital, surplus and undivided profits of not less than $500,000,000 and having a rating of
“A” or better by a nationally recognized rating agency, or (D) time deposits maturing no more than thirty (30) days from the date of creation thereof with commercial banks or savings banks or savings and loan associations each
either having membership in the FDIC or the deposits of which are insured by the FDIC and in amounts not exceeding the maximum amounts of insurance thereunder; 
 (iii) investments by the Borrower or any of its Subsidiaries in the form of Permitted Acquisitions; 
 (iv) Hedge Agreements permitted pursuant to Section 5.02(a); 
 (v) purchases of assets in the ordinary course of business; 
 (vi) investments in the form of loans and advances to employees in the ordinary course of business, which, in the aggregate, do not exceed
at any time $2,000,000; 
 (vii) intercompany Debt permitted pursuant to Section 5.02(a); and 
 (viii) other additional investments not otherwise permitted pursuant to this Section not exceeding (x) $6,000,000 in the aggregate in
any Fiscal Year prior to the Completion of the Hotel Project or (y) $12,000,000 in the aggregate in any Fiscal Year following the Completion of the Hotel Project. 
 (d) Limitations on Mergers and Liquidation. Merge, consolidate or enter into any similar combination with any other Person or
liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution) except: 
 (i) any Subsidiary of the Borrower
may be merged or consolidated with or into the Borrower (provided that the Borrower shall be the continuing or surviving Person) or with or into any Guarantor (provided that the Subsidiary Guarantor shall be the continuing or surviving
Person); 
 (ii) any Subsidiary may sell, lease, transfer or otherwise dispose of any or all of its assets (upon voluntary
liquidation or otherwise) to the Borrower or any other Subsidiary (provided that if the transferor in such a transaction is a Guarantor, then the transferee must either be the Borrower or a Guarantor); 
 (iii) any Subsidiary of the Borrower may wind up into the Borrower or any Guarantor; 
 (iv) the Borrower or any Subsidiary of the Borrower may be merged into or combined with any other Person in connection with, and according
to the terms of, a Permitted Acquisition. 
  

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 (e) Limitations on Asset Dispositions. Make any Asset Disposition (including,
without limitation, the sale of any receivables and leasehold interests and any Sale-and-Leaseback Transaction or similar transaction) except: 
 (i) the sale of inventory in the ordinary course of business; 
 (ii) the sale of obsolete,
worn-out or surplus assets no longer used or usable in the business of the Borrower or any of its Subsidiaries (including without limitation dispositions of slot machines); 
 (iii) the transfer of assets to the Borrower or any Guarantor pursuant to Section 5.02(d)(iii); 
 (iv) the sale or discount without recourse of accounts receivable arising in the ordinary course of business in connection with the
compromise or collection thereof; 
 (v) the disposition of any Hedge Agreement; 
 (vi) additional Asset Dispositions not otherwise permitted pursuant to this Section in an aggregate amount not to exceed $12,000,000 in
any Fiscal Year; and 
 (vii) Asset Dispositions pursuant to any Sale-and-Leaseback Transaction permitted pursuant to
Section 5.02(r). 
 (f) Limitations on Dividends and Distributions. Declare or pay any dividends upon any of its
Equity Interests; purchase, redeem, retire or otherwise acquire, directly or indirectly, any shares of its Equity Interests, or make any distribution of cash, property or assets among the holders of shares of its Equity Interests (each, a
“Restricted Payment”), or make any change in its capital structure which such change in its capital structure could reasonably be expected to have a Material Adverse Effect; provided that: 
 (i) the Borrower or any Subsidiary may pay dividends in shares of its own Equity Interests; 
 (ii) any Subsidiary may pay cash dividends to the Borrower; 
 (iii) the Borrower may pay the Dividend on or within five (5) Business Days of the Closing Date in an amount not to exceed
$187,500,000; 
 (iv) the Borrower or any of its Subsidiaries may make additional Restricted Payments after Completion of the
Hotel Project in an aggregate amount not exceeding the Distribution Amount immediately prior to the time of the making of such Restricted Payment; provided that (A) immediately prior to and after giving effect to such Restricted Payment,
the Leverage Ratio is less than or equal to 6.00 to 1.00 based on the most recent financial statements of the Borrower delivered pursuant to Section 5.03(b) or (c), as applicable; and a (B) no Default or Event of Default has occurred and
is continuing or would result therefrom; and 
 (v) additional Restricted Payments not to exceed $12,000,000 over the term of
this Agreement. 
  

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 (g) Limitations on Exchange and Issuance of Equity Interests. Issue, sell or
otherwise dispose of any class or series of Equity Interests that, by its terms or by the terms of any security into which it is convertible or exchangeable, is, or upon the happening of an event or passage of time would be, (i) convertible or
exchangeable into Debt or (ii) required to be redeemed or repurchased, including at the option of the holder, in whole or in part, or has, or upon the happening of an event or passage of time would have, a redemption or similar payment due.

 (h) Transactions with Affiliates. Directly or indirectly (i) make any loan or advance to, or purchase or assume
any note or other obligation to or from, any of its officers, directors, shareholders or other Affiliates, or to or from any member of the immediate family of any of its officers, directors, shareholders or other Affiliates, or subcontract any
operations to any of its Affiliates, or (ii) enter into, or be a party to, any other transaction not described in clause (i) above with any of its Affiliates other than: 
 (A) transactions permitted by Sections 5.02(c), (d), (f) and (g); 
 (B) transactions existing on the Closing Date and described on Schedule 5.02(h)(B); 
 (C) normal compensation and reimbursement of reasonable expenses of officers and directors; and 
 (D) other transactions in the ordinary course of business on terms as favorable as would be obtained by it on a comparable
arm’s-length transaction with an in-dependent, unrelated third party; provided that for all such transactions in excess of $24,000,000, the Borrower shall deliver an opinion as to the fairness to the Borrower or such Subsidiary of such
transaction or series of related transactions (other than Restricted Payments and cost reimbursements) from a financial point of view issued by an independent accounting, appraisal or investment banking firm of national standing or a comparable
report, certification or recommendation by an executive compensation consulting firm of national standing, as applicable. 
 (i) Certain Accounting Changes; Organizational Documents. (i) Change its Fiscal Year end, or make any change in its accounting treatment and reporting practices except as required by GAAP or (ii) amend, modify or change its
articles of incorporation (or corporate charter or other similar organizational documents) or amend, modify or change its bylaws (or other similar documents) in any manner adverse in any respect to the rights or interests of the Lenders. 

(j) Amendments; Payments and Prepayments of Subordinated Debt. 
 (i) Amend or modify (or permit the modification or amendment of) any of the terms or provisions of any Subordinated Debt in any respect
which would shorten the maturity thereof, increase the principal amount thereof, increase the interest rate thereof or alter the subordination provisions. 
 (ii) Cancel, forgive, make any payment or prepayment on, or redeem or acquire for value (including, without limitation, (A) by way of depositing with any trustee with respect thereto money or securities before
due for the purpose of paying when due and (B) at the maturity thereof), any Subordinated Debt. 
  

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 (k) [Reserved]. 
 (l) Nature of Business. Alter the character or conduct of the business conducted by the Borrower and its Subsidiaries as of the
Closing Date. 
 (m) Impairment of Security Interests. Take or omit to take any action which might or would have the
result of materially impairing the security interests in favor of the Administrative Agent or Collateral Agent with respect to the Collateral or grant to any Person (other than the Administrative Agent or Collateral Agent for the benefit of itself
and the other Secured Parties pursuant to the Security Documents) any interest whatsoever in the Collateral, except for Permitted Liens and asset sales permitted under Section 5.02(e). 
 (n) Negative Pledge. Except as required by Gaming Authorities, enter into or suffer to exist, or permit any of its Subsidiaries to
enter into or suffer to exist, any agreement prohibiting or conditioning the creation or assumption of any Lien upon any of its property or assets except (i) in favor of the Secured Parties or (ii) in connection with (A) any purchase
money Debt permitted by Section 5.02(a)(iii) solely to the extent that the agreement or instrument governing such Debt prohibits a Lien on the property acquired with the proceeds of such Debt, (B) any Capitalized Lease permitted by
Section 5.02(a)(iv) solely to the extent that such Capitalized Lease prohibits a Lien on the property subject thereto, (C) any Debt outstanding on the date any Subsidiary of the Borrower becomes such a Subsidiary (so long as such agreement
was not entered into solely in contemplation of such Subsidiary becoming a Subsidiary of the Borrower), or (D) pursuant to the terms of any Surviving Debt. 
 (o) Speculative Transactions. Engage, or permit any of its Subsidiaries to engage, in any transaction involving commodity options
or futures contracts or any similar speculative transactions other than transactions engaged in the ordinary course of business of the Borrower or any such Subsidiary, as the case may be, and reasonably related to the Borrower’s and its
Subsidiaries’ permitted lines of business. 
 (p) Payment Restrictions Affecting Subsidiaries. Except as required
by any Gaming Authority, directly or indirectly, enter into or suffer to exist, or permit any of its Subsidiaries to enter into or suffer to exist, any agreement or arrangement limiting the ability of any of its Subsidiaries to declare or pay
dividends or other distributions in respect of its Equity Interests or repay or prepay any Debt owed to, make loans or advances to, or otherwise transfer assets to or invest in, the Borrower or any Subsidiary of the Borrower (whether through a
covenant restricting dividends, loans, asset transfers or investments, a financial covenant or otherwise), except (i) the Loan Documents and (ii) any agreement in effect at the time such Subsidiary becomes a Subsidiary of the Borrower, so
long as such agreement was not entered into solely in contemplation of such Person becoming a Subsidiary of the Borrower. 
 (q) Amendment, Etc., of Material Contracts. Except in the exercise of its reasonable business judgment, cancel or terminate any Material Contract or consent to or accept any cancellation or termination thereof, amend or otherwise
modify any Material Contract or give any consent, waiver or approval thereunder, waive any default under or breach of any Material Contract, agree in any manner to any other amendment, modification or change of any term or condition of any Material
Contract or take any other action in connection with any Material Contract that would impair the value of the interest or rights of the Borrower or any of its Subsidiaries thereunder or that would impair the interest or rights of any Agent or any
Lender, or permit any of its Subsidiaries to do any of the foregoing. 
  

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 (r) Sales and Leasebacks. Enter into any arrangement with any Person (other than
Subsidiaries of the Borrower) providing for the leasing by the Borrower or any Subsidiary of real or personal property that has been or is to be sold or transferred by the Borrower or such Subsidiary to such Person or to any other Person to whom
funds have been or are to be advanced by such Person on the security of such property or rental obligations of the Borrower or such Subsidiary (any such arrangement, a “Sale-and-Leaseback Transaction”), except for
Sale-and-Leaseback Transactions not to exceed an aggregate fair market value of $10,000,000 for all Sale-and-Leaseback transactions consummated pursuant to this Section 5.02(r). 
 (s) Use of Proceeds. Use the proceeds of any Advance for any purpose other than for purposes set forth in Section 2.14; or use
any such proceeds (i) in a manner which violates or results in a violation of any law or regulation, or (ii) to purchase or carry any Margin Stock in violation of this Agreement or Regulation U or to extend credit to others for that
purpose. 
 (t) Designated Senior Debt. Designate any Debt other than the Debt in respect of the Obligations under the
Loan Documents as “Designated Senior Debt” (or any comparable term) under any instrument, indenture, loan or credit or similar agreement evidencing any Debt that is subordinated to the Obligations under the Loan Documents. 
 (u) Construction of the Hotel Project: 
 (i) Fail to diligently pursue the Hotel Project to Completion in accordance with the Project Plans, Project Budgets and Project
Construction Schedules; 
 (ii) Fail to provide the Lenders’ Consultant with all reasonably requested access to each
Project’s construction site without unreasonable delay (including any advance notice which is reasonable under the circumstances), and access to the Project Plans, Project Budgets, Project Construction Schedules, all related plans, Project
Budgets, drawings, Project Construction Schedules, and other related papers, including status reports and logs describing all executed contracts and subcontracts to which Borrower or any of its Subsidiaries are party for such work, and the then
current lists of the names, addresses and telephone numbers of each material contractor, material subcontractor and material supplier with respect to such Project and the dollar value and amounts paid with respect to the related contracts;

 (iii) [Reserved]. 
 (iv) Fail to maintain a full set of the current working drawings available for review by the Lenders’ Consultant at the construction office for the Hotel Project or at another location reasonably acceptable to
the Lenders’ Consultant; 
 (v) Amend any Project Construction Schedule in any manner which would defer the completion of
any material construction benchmark set forth therein unless the General Contractor and architect concur that such amendment will not cause Borrower to fail to achieve Completion of that Project by the date which is twenty-four (24) months from
the start of construction or fail to provide the Lenders’ Consultant, if requested, with a letter from the General Contractor and architect to the Lenders’ Consultant indicating their concurrence that the revised Project Construction
Schedule is reasonable and feasible; 
 (vi) [Reserved]. 
  

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 (vii) Fail to construct the Hotel Project in a good and workmanlike manner in accordance
with sound building practices and without material deviation from the Project Plans, and comply in all material respects with all existing Applicable Laws and requirements of all Governmental Authorities having jurisdiction over the Hotel Project;

 (viii) Fail to promptly pay prior to delinquency (subject to applicable retentions) or otherwise discharge all Liens and
other material claims for labor done and materials and services furnished in connection with the construction of the Hotel Project, except for Liens and other claims contested in good faith by appropriate actions and without prejudice to the
applicable Project Construction Schedule except to the extent not prohibited hereby; 
 (ix) Fail to properly obtain as and
when required, comply with and keep in effect all material permits, licenses and approvals which are required to be obtained from any Governmental Authority in order to construct and occupy the Hotel Project as of the then current stage of
construction; 
 (x) Fail to make the permits, licenses and approvals required by clause (i) of this Section available
for review by the Lenders’ Consultant and deliver copies of all such permits, licenses and approvals to the Lenders’ Consultant promptly following a written request therefor; 
 (xi) Fail to promptly notify the Lenders’ Consultant if Borrower or its Subsidiaries pays $5,000,000 or more, in the aggregate, for
any tangible construction materials for any Project that are not located on the site of the Hotel Project, or will not be delivered within 45 days after such payment (describing such construction materials, the purchase price therefor and the
location thereof) and, if requested by the Lenders’ Consultant in writing provide to the Lenders’ Consultant the written acknowledgment of the Person having custody of such construction materials of the existence of the Lenders’
Consultant’s Lien on such construction materials and the right of the Lenders’ Consultant, as against such Person, to have access to and to remove such construction materials (subject to the requirement of the payment of any remaining
purchase price for such materials); 
 (xii) Fail on or before the opening for business of the applicable Project, to provide
the Administrative Agent a Completion Certificate; 
 (xiii) [Reserved]. 
 (xiv) Fail, as soon as practicable, but in any event not later than 180 days after the Completion Date, to provide the Administrative
Agent and Collateral Agent with (i) an “as built” Survey of such Project as of the date of Completion that (x) sets forth all recorded easements and licenses burdening the project site as of Completion, (y) reflects no
unpermitted encroachments onto that property or onto adjoining real property, and (z) certifies the legal description of the property subject to the related Mortgage in favor of the Administrative Agent and Collateral Agent to be the same as
that set forth in the related title insurance policies and (ii) a bringdown endorsement to its Title Policy covering the Hotel Project in favor of the Administrative Agent and Collateral Agent for the benefit of the Secured Parties covering the
estimated fair market value of the applicable Mortgaged Property as of the Completion Date (as reasonably determined in good faith by the Borrower not to exceed the aggregate principal amount of the Facilities, and insuring the continuing first
priority Lien of the Mortgage (without a mechanics’ or materialmen’s Lien exception) and the continued compliance of the Mortgaged Property with applicable zoning and similar laws, in each case, in form and substance satisfactory to the
Administrative Agent, subject only to Permitted Liens and encumbrances substantially similar to the exceptions shown on the existing policies. 
  

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 (xv) Fail as soon as practicable, but in no event any later than 180 days after the date
of Completion, to have prepared and caused to be executed, delivered and recorded such amendments to the Mortgages or other confirmatory documents (including, without limitation, local counsel opinions) as may have been reasonably requested by the
Administrative Agent in order to protect or confirm the Lien of each Mortgage on the Mortgaged Property affected by any Project, as reflected in the final “as built” Survey delivered pursuant to this Section 5.02(u)(xiv). 

(xvi) [Reserved]. 
 (xvii) The Borrower shall: 
 (A) agree that all material changes to Project Plans and Construction Contracts
which shall result in the Project Cost being (1) greater than 110% but less than 115% of the Project Cost shall be approved by the Administrative Agent or (2) greater than or equal to 115% of the Project Cost shall be approved by the
Required Lenders; 
 (B) cooperate with the Lenders’ Consultant and grant access and visitation and inspection rights to
the Administrative Agent and the Lenders’ Consultant during normal business hours in connection with any Additional Term Advance and in all other matters; and 
 SECTION 5.03. Reporting Requirements. So long as any Advance or any other Obligation of any Loan Party under any Loan Document shall remain unpaid, the Borrower will furnish to the Agents and the Lender.

 (a) Default Notice. As soon as possible and in any event within two days after the Borrower’s knowledge of the
occurrence of each Default or any event, development or occurrence reasonably likely to have a Material Adverse Effect continuing on the date of such statement, a statement of the Chief Financial Officer of the Borrower setting forth details of such
Default and the action that the Borrower has taken and proposes to take with respect thereto. 
 (b) Annual Financials.
As soon as available and in any event within 90 days after the end of each Fiscal Year, a copy of the annual audit report for such year for the Borrower and its Subsidiaries, including therein Consolidated balance sheets of the Borrower and its
Subsidiaries as of the end of such Fiscal Year and Consolidated and statements of income and a Consolidated statement of cash flows of the Borrower and its Subsidiaries for such Fiscal Year, and the annual internal operating statement, all in
reasonable detail setting forth in comparative form the corresponding figures as of the end of and for the preceding Fiscal Year and prepared in accordance with GAAP (except for the annual internal operating statement) and, if applicable, containing
disclosure of the effect on the financial position or results of operations of any change in the application of accounting principles and practices during the year in each case (except for the annual internal operating statement) accompanied by an
opinion acceptable to the Administrative Agent of independent public accountants of recognized national standing reasonably acceptable to the Administrative Agent (without a “going concern” or like qualification or exception and without
any qualification or exception to the scope of such audit) to the effect that such Consolidated and consolidating financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its
Subsidiaries on a consolidated basis in 

  

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accordance with GAAP consistently applied, together with (i) a certificate of such accounting firm to the Lenders stating that in the course of the
regular audit of the business of the Borrower and its Subsidiaries, which audit was conducted by such accounting firm in accordance with generally accepted auditing standards, such accounting firm has obtained no knowledge that an Event of Default
has occurred and is continuing, or if, in the opinion of such accounting firm, an Event of Default has occurred and is continuing, a statement as to the nature thereof, (ii) a Compliance Certificate from the Borrower to the Administrative Agent
of the computations used in determining, as of the end of such Fiscal Year, compliance with the covenants contained in Section 5.04, provided that in the event of any change in generally accepted accounting principles used in the
preparation of such financial statements, the Borrower shall also provide, if necessary for the determination of compliance with Section 5.04, a description of such changes and the related effect on such financial statements and
(iii) (A) a certificate of a Financial Officer of the Borrower stating that no Event of Default has occurred and is continuing or, if an Event of Default has occurred and is continuing, a statement as to the nature thereof and the action
that the Borrower has taken and proposes to take with respect thereto and (B) a schedule in form satisfactory to the Administrative Agent of the computations used in determining, as of the end of such Fiscal Year, compliance with the covenants
contained in Section 5.04. 
 (c) Quarterly Financials. As soon as available and in any event within 45 days after
the end of each of the first three quarters of each Fiscal Year, Consolidated balance sheets of the Borrower and its Subsidiaries as of the end of such quarter and Consolidated statements of income and a Consolidated statement of cash flows of the
Borrower and its Subsidiaries for the period commencing at the end of the previous fiscal quarter and ending with the end of such fiscal quarter and Consolidated statements of income and a Consolidated statement of cash flows of the Borrower and its
Subsidiaries for the period commencing at the end of the previous Fiscal Year and ending with the end of such quarter, all in reasonable detail setting forth in comparative form the corresponding figures as of the end of and for the corresponding
period in the preceding Fiscal Year and prepared by the Borrower in accordance with GAAP, setting forth in each case in comparative form the corresponding figures for the corresponding date or period of the preceding Fiscal Year, all in reasonable
detail and duly certified (subject to normal year end audit adjustments) by the Chief Financial Officer of the Borrower as having been prepared in accordance with GAAP, together with (i) a certificate of said officer stating that no Event of
Default has occurred and is continuing or, if a Default has occurred and is continuing, a statement as to the nature thereof and the action that the Borrower has taken and proposes to take with respect thereto and (ii) a Compliance Certificate
of the computations used by the Borrower in determining compliance with the covenants contained in Section 5.04, provided that in the event of any change in GAAP used in the preparation of such financial statements, the Borrower shall
also provide, if necessary for the determination of compliance with Section 5.04, a description of such changes and the related effect on such financial statements. 
 (d) Annual Budgets. As soon as available and in any event no later than the end of each Fiscal Year, updated budgets for the
following Fiscal Year prepared by management of the Borrower, in form satisfactory to the Administrative Agent, of balance sheets, income statements and cash flow statements. 
 (e) Litigation. Promptly after the commencement thereof, notice of all material actions, suits, investigations, litigation and
proceedings before any Governmental Authority affecting the Borrower or any of its Subsidiaries of the type described in Section 4.01(dd). 
  

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 (f) Securities Reports. Promptly after the sending or filing thereof, copies of
all proxy statements, financial statements and reports that the Borrower or any of its Subsidiaries sends to its stockholders, and copies of all regular, periodic and special reports, and all registration statements, that the Borrower or any of its
Subsidiaries files with the Securities and Exchange Commission or any governmental authority that may be substituted therefor, or with any national securities exchange. 
 (g) Creditor Reports. Promptly after the furnishing thereof, copies of any statement or report furnished to any holder of Debt
securities of the Borrower or any of its Subsidiaries pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished to the Lenders pursuant to any other clause of this Section 5.03.

 (h) Agreement Notices. Promptly upon receipt thereof, copies of all notices, requests and other documents received
by the Borrower or any of its Subsidiaries under or pursuant to any Material Contract or instrument, indenture, loan or credit or similar agreement regarding or related to any breach or default by any party thereto or any other event that would
materially impair the value of the interests or the rights of the Borrower or any of its Subsidiaries or otherwise have a Material Adverse Effect and copies of any amendment, modification or waiver of any provision of any Material Contract or
instrument, indenture, loan or credit or similar agreement and, from time to time upon request by the Administrative Agent, such information and reports regarding the Material Contracts and such instruments, indentures and loan and credit and
similar agreements as the Administrative Agent may reasonably request. 
 (i) Gaming Information. As soon as
practicable and in any event within 10 days after the receipt by the Borrower or any Subsidiary from any Gaming Authority or other Governmental Authority having jurisdiction over the operations of the Borrower or any Subsidiary or filing or receipt
thereof by the Borrower or any Guarantor, (A) copies of any order or notice of such Gaming Authority or such other governmental authority or court of competent jurisdiction which designates any material Gaming License or other material
franchise, permit or other governmental operating authorization of the Borrower or any Subsidiary, or any application therefor, for a hearing or which refuses renewal or extension of, or revokes or suspends the authority of the Borrower or any
Subsidiary to construct, own, manage or operate a casino (or portion thereof) and (B) a copy of any material citation, notice of violation or order to show cause issued by any Gaming Authority or other governmental authority or any material
complaint filed by any Gaming Authority or other governmental authority which is available to the Borrower or any Subsidiary. 
 (j) ERISA. 
 (i) ERISA Events and ERISA Reports. (A) Promptly and in any event within 10 days
after any Loan Party or any ERISA Affiliate knows or has reason to know that any ERISA Event has occurred, a statement of the Chief Financial Officer of the Borrower describing such ERISA Event and the action, if any, that such Loan Party or such
ERISA Affiliate has taken and proposes to take with respect thereto and (B) on the date any records, documents or other information must be furnished to the PBGC with respect to any Plan pursuant to Section 4010 of ERISA, a copy of such
records, documents and information. 
 (ii) Plan Terminations. Promptly and in any event within five Business Days
after receipt thereof by any Loan Party or any ERISA Affiliate, copies of each notice from the PBGC stating its intention to terminate any Plan or to have a trustee appointed to administer any Plan. 
  

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 (iii) Plan Annual Reports. Upon the reasonable request of the Administrative Agent
or any Lender, copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) with respect to each Plan. 
 (iv) Multiemployer Plan Notices. Promptly and in any event within five Business Days after receipt thereof by any Loan Party or any ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of each notice concerning
(A) the imposition of Withdrawal Liability by any such Multiemployer Plan, (B) the reorganization or termination, within the meaning of Title IV of ERISA, of any such Multiemployer Plan or (C) the amount of liability incurred, or that
may be incurred, by such Loan Party or any ERISA Affiliate in connection with any event described in clause (A) or (B). 
 (k) Environmental Conditions. Promptly after the assertion or occurrence thereof, notice of any Environmental Action against or of any noncompliance by the Borrower or any of its Subsidiaries with any Environmental Law or
Environmental Permit that would (i) reasonably be expected to have a Material Adverse Effect or (ii) cause any material real property to be subject to any material restrictions on ownership, occupancy, use or transferability under any
Environmental Law. 
 (l) [Reserved]. 
 (m) Insurance. As soon as available and in any event within 30 days after the end of each Fiscal Year, a report summarizing the
insurance coverage (specifying type, amount and carrier) in effect for the Borrower and its Subsidiaries and containing such additional information as any Agent, or any Lender through the Administrative Agent, may reasonably specify. 
 (n) Other Information. Such other information respecting the business, condition (financial or otherwise), operations, performance
or properties of the Borrower or any of its Subsidiaries as any Agent, or any Lender through the Administrative Agent, may from time to time reasonably request. 
 SECTION 5.04. Financial Covenants. Until all of the Obligations have been paid and satisfied in full and the Commitments terminated, unless consent has been obtained in the manner set forth in
Section 8.01, the Borrower and its Subsidiaries on a Consolidated basis will not as of any fiscal quarter end, permit the Leverage Ratio to be greater than the corresponding ratio set forth below: 
  

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	 Period
	  	 Leverage Covenant

	 From the Closing Date
 through September 30, 2010
	  	8.25 to 1.00
		
	 From October 1, 2010
 through December 31, 2010
	  	7.25 to 1.00
		
	 From January 1, 2011
 through March 31, 2011
	  	7.00 to 1.00
		
	 From April 1, 2011
 through June 30, 2011
	  	6.75 to 1.00
		
	 From July 1, 2011
 through September 30, 2011
	  	6.50 to 1.00
		
	 From October 1, 2011
 through December 31, 2011
	  	6.25 to 1.00
		
	 From January 1, 2012
 through the Termination Date
	  	6.00 to 1.00

 ARTICLE VI 
 EVENTS OF DEFAULT 
 SECTION 6.01. Events of Default. If any of the following events
(“Events of Default”) shall occur and be continuing: 
 (a) (i) the Borrower shall fail to pay any
principal of any Advance when the same shall become due and payable or (ii) the Borrower shall fail to pay any interest on any Advance, or any Loan Party shall fail to make any other payment under any Loan Document, in each case under this
clause (ii) within three days after the same shall become due and payable; or 
 (b) any representation or warranty made
by any Loan Party (or any of its officers) under or in connection with any Loan Document shall prove to have been incorrect in any material respect when made; or 
 (c) the Borrower shall fail to perform or observe any term, covenant or agreement contained in Section 2.14, 5.01(d), (e), (h), (i),
(l) or (s), 5.02, 5.03 or 5.04; or 
 (d) any Loan Party shall fail to perform or observe any other term, covenant or
agreement contained in any Loan Document on its part to be performed or observed if such failure shall remain unremedied for 30 days after the earlier of the date on which (i) a Responsible Officer becomes aware of such failure or
(ii) written notice thereof shall have been given to the Borrower by any Agent or any Lender; or 
 (e) the Borrower or
any of its Subsidiaries shall fail to pay any principal of, premium or interest on or any other amount payable in respect of any Debt of the Borrower or such Subsidiary (as the case may be) that is outstanding in a principal amount (or, in the case
of any Hedge Agreement, an Agreement Value) of at least $6,000,000 either individually or in the aggregate for the Borrower and all such Subsidiaries (but excluding Debt outstanding hereunder), when the same becomes due and payable (whether by
scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or any other event shall occur or
condition shall exist under any agreement or instrument relating to any such Debt and shall continue after the applicable grace period, if 

  

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any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of
such Debt or otherwise to cause, or to permit the holder thereof to cause, such Debt to mature; or any such Debt shall be declared to be due and payable or required to be prepaid or redeemed (other than by a regularly scheduled required prepayment
or redemption), purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof; or 
 (f) (i) a payment “Event of Default” (as defined in the First Lien Loan Documents) shall have occurred and be continuing under
the First Lien Credit Agreement and such “Event of Default” has not been cured within 90 days; or (ii) the obligations under the First Lien Credit Agreement have been accelerated; or 
 (g) (i) any judgments or orders, either individually or in the aggregate, for the payment of money in excess of $6,000,000 shall be
rendered against any Loan Party or any of its Subsidiaries and either (A) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (B) there shall be any period of 20 consecutive days during which a
stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; provided, however, that any such judgment or order shall not give rise to an Event of Default under this
Section 6.01(g) if and for so long as (x) the amount of such judgment or order is covered by a valid and binding policy of insurance between the defendant and the insurer, which shall be rated at least “A” by A.M. Best Company,
covering full payment thereof (subject to customary deductibles and self-insurance retentions) and (y) such insurer has been notified, and has not disputed the claim made for payment, of the amount of such judgment or order or (ii) the
Borrower and its Subsidiaries shall have (claims asserted against it that have not been satisfied for expenditures) at least $6,000,000 in respect of Environmental Actions so long as such Environmental Action is being contested in good faith; or

 (h) any non-monetary judgment or order shall be rendered against any Loan Party or any of its Subsidiaries that would be
reasonably likely to have a Material Adverse Effect, and there shall be any period of 20 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or

 (i) any provision of any Loan Document after delivery thereof pursuant to Section 3.01 or 5.01(l) shall for any reason
cease to be valid and binding on or enforceable against any Loan Party to it, or any such Loan Party shall so state in writing; or 
 (j) any Collateral Document or financing statement after delivery thereof pursuant to Section 3.01 or 5.01(l) shall for any reason (other than pursuant to the terms thereof) cease to create a valid and perfected first priority lien on
and security interest in the Collateral purported to be covered thereby (or any Loan Party shall so assert or shall take any action to discontinue or to assert the invalidity or unenforceability thereof); or 
 (k) a Change of Control shall occur; or 
 (l) an “Event of Default” (as defined in any Mortgage) shall have occurred and be continuing; or 
  

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 (m) a default giving rise to the right of a Hedge Bank to immediately terminate a Secured
Hedge Agreement shall have occurred and be continuing for a period of 30 days at a time when an amount exceeding $6,000,000 would be owing by a Loan Party thereunder; or 
 (n) any ERISA Event shall have occurred and be continuing for a period of 30 days with respect to a Plan and the sum (determined as of the
date of occurrence of such ERISA Event) of the Insufficiency of such Plan and the Insufficiency of any and all other Plans with respect to which an ERISA Event shall have occurred and then exist (or the liability of the Loan Parties and the ERISA
Affiliates related to such ERISA Event) exceeds $6,000,000; or 
 (o) any Loan Party or any ERISA Affiliate shall have been
notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to such Multiemployer Plan in an amount that, when aggregated with all other amounts required to be paid to Multiemployer Plans by the Loan Parties and the
ERISA Affiliates as Withdrawal Liability (determined as of the date of such notification), exceeds $6,000,000, and such Withdrawal Liability shall have occurred and be continuing for 30 days; or 
 (p) any Loan Party or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is
in reorganization or is being terminated, within the meaning of Title IV of ERISA, and as a result of such reorganization or termination the aggregate annual contributions of the Loan Parties and the ERISA Affiliates to all Multiemployer Plans that
are then in reorganization or being terminated have been or will be increased over the amounts contributed to such Multiemployer Plans for the plan years of such Multiemployer Plans immediately preceding the plan year in which such reorganization or
termination occurs by an amount exceeding $6,000,000, and such notification shall have occurred and be continuing for a period of 30 days; or 
 (q) any default by any Loan Party under any Material Contract shall have occurred and be continuing for 30 days, the effect of which would be reasonably likely to have a Material Adverse Effect; or 
 (r) any of the Obligations for any reason shall cease to be “Senior Debt” (or any comparable term) or “Designated Senior
Debt” (or any comparable term) under, and as defined in, any instrument, indenture, loan or credit or similar agreement evidencing any Debt that is subordinated to the Obligations; or 
 (s) the Borrower or any Subsidiary thereof shall (i) commence a voluntary case under the federal bankruptcy laws (as now or hereafter
in effect), (ii) file a petition seeking to take advantage of any other laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding up or composition for adjustment of debts, (iii) consent to or fail to contest
in a timely and appropriate manner any petition filed against it in an involuntary case under such bankruptcy laws or other laws, (iv) apply for or consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the
taking of possession by, a receiver, custodian, trustee or liquidator of itself or of a substantial part of its property, domestic or foreign, (v) admit in writing its inability to pay its debts as they become due, (vi) make a general
assignment for the benefit of creditors, or (vii) take any corporate action for the purpose of authorizing any of the foregoing; or 
 (t) a case or other proceeding shall be commenced against the Borrower or any Loan Party in any court of competent jurisdiction seeking (i) relief under the federal bankruptcy laws 

  

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(as now or hereafter in effect) or under any other laws, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding up or adjustment of
debts, or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like for the Borrower or any Loan Party or for all or any substantial part of their respective assets, domestic or foreign, and such case or proceeding shall
continue without dismissal or stay for a period of ninety (90) consecutive days, or an order granting the relief requested in such case or proceeding (including, but not limited to, an order for relief under such federal bankruptcy laws) shall
be entered; or 
 (u) if the Borrower or any of its Subsidiaries fails to keep in full force and effect, suffers the
termination, revocation, forfeiture, nonrenewal or suspension of, or suffers a material adverse amendment, condition or limitation to, any Gaming License, finding of suitability or other approval or authorization required to enable Borrower or
Subsidiary to own, operate, or otherwise conduct or manage any gaming activities where Borrower or any of its Subsidiaries conduct such business for seven consecutive calendar days; or 
 (v) the subordination provisions of any Subordinated Debt cease to be in full force and effect; or any Loan Party or any other Person
contests in any manner the validity or enforceability of such subordination provisions; 
 (w) the Hotel Project has not
reached Completion and is not operating by June 30, 2010, subject to delay caused by any Force Majeure; provided that , with respect to any such failure, such failure shall only constitute and Event of Default under this
Section 6.01(w), if the Hotel Project has commenced; 
 (x) any event of default that remains uncured after notice
thereof or the acceleration of debt under the $4 million promissory note owing by LGE, Inc. to K&F Limited Partnership; or 
 (y) the failure of the Parent to cause one of its unrestricted subsidiaries to make a Parent Qualified Contribution pursuant to Section 6.04 and such failure shall continue for 30 days. 
 then, and in any such event, the Administrative Agent (i) shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrower, declare
all or any portion of the Commitments of each Lender and the obligation of each Lender to make Borrowings to be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the request, or may with the consent, of the Required
Lenders, by notice to the Borrower, declare all or any portion of the Advances, all interest thereon and all other amounts payable under this Agreement and the other Loan Documents to be forthwith due and payable, whereupon all or such portion, as
applicable, of the Advances, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower;
provided, however, that in the event of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Law, (x) the Commitments of each Lender and the obligation of each Lender to make Advances
shall automatically be terminated and (y) the Advances, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly
waived by the Borrower. 
 SECTION 6.02. [Reserved]. 
 SECTION 6.03. Borrower’s Right to Cure. Notwithstanding anything to the contrary contained in Section 6.01, in the event that the Borrower fails to comply with the requirement of any Financial

  

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Performance Covenant, until the expiration of the fifth Business Day subsequent to the date on which financial statements with respect to the fiscal period
for which such Financial Performance Covenant is being measured are required to be delivered pursuant to Section 5.03, the Borrower has the right to receive Parent Qualified Contributions in cash (the “Cure Right”), and
upon the receipt by the Borrower of cash from such Parent Qualified Contributions (such amount of cash being referred to as the “Cure Amount”) pursuant to such Cure Right, such Financial Performance Covenants shall be
recalculated giving effect to the following pro forma adjustments: 
 (1) Consolidated EBITDA shall be increased, solely for
the purpose of determining the existence of a Default or Event of Default under the Financial Performance Covenants with respect to any period of four consecutive fiscal quarters that includes the fiscal quarter for which the Cure Right was
exercised and not for any other purpose under this Agreement, by an amount equal to the Cure Amount; and 
 (2) if, after
giving effect to the foregoing recalculations, the Borrower shall then be in compliance with the requirements of all Financial Performance Covenants (including for purposes of Section 3.02, 3.03 or 3.04), the Borrower shall be deemed to have
satisfied the requirements of the Financial Performance Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the
Financial Performance Covenants that had occurred shall be deemed cured for the purposes of this Agreement. 
 Notwithstanding anything
herein to the contrary, the Cure Amount during the term of this Agreement shall not exceed an aggregate amount of $20,000,000; provided that (i) in each four fiscal quarter period following the six month anniversary of Completion there
shall be a period of at least two fiscal quarters in which no Cure Right is made, (ii) the Cure Amount shall be no greater than the amount required to cause the Borrower to be in compliance with such Financial Performance Covenant, and
(iii) no part of the Cure Amount shall be used in determining the Distribution Amount or to make a Restricted Payment. 
 SECTION 6.04.
Parent Capital Contribution. Notwithstanding anything to the contrary contained in this Article VI, if at any time prior to and through December 31, 2009, the Leverage Ratio is greater than 7.00:1.00 based on the most recent financial
statements of the Borrower delivered pursuant to Section 5.03(b) or (c), as applicable, then, within 10 Business Days of the date of such delivery, Parent shall cause an appropriately funded unrestricted subsidiary of Parent to make a Parent
Qualified Contribution to the Borrower equal to an amount (up to $25,000,000) that shall cause the Leverage Ratio, after giving effect to the Parent Qualified Contribution as an increase in Consolidated EBITDA, to be less than 7.00:1.00;
provided that in no event shall any such Parent Qualified Contributions made hereunder be applied toward any Cure Amount or be used to make a Restricted Payment or in the calculation of Distribution Amount or for any other purposes under this
Agreement. Once Parent Qualified Contributions in the aggregate amount of $25,000,000 have been made pursuant to this Section 6.04, no further Parent Qualified Contributions shall be required under this Section 6.04. 
  

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 ARTICLE VII 
 THE AGENTS, ETC. 
 SECTION 7.01. Authorization and Action. Each Lender hereby appoints and
authorizes each Agent to take such action as agent on its behalf and to exercise such powers and discretion under this Agreement and the other Loan Documents as are delegated to such Agent by the terms hereof and thereof, together with such powers
and discretion as are reasonably incidental thereto. As to any matters not expressly provided for by the Loan Documents (including, without limitation, enforcement or collection of the Notes), no Agent shall be required to exercise any discretion or
take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Lenders, and such instructions shall be binding upon all Lenders and
all holders of Notes; provided, however, that no Agent shall be required to take any action that exposes such Agent to personal liability or that is contrary to this Agreement or applicable law. Each Agent agrees to give to each Lender
prompt notice of each notice given to it by the Borrower pursuant to the terms of this Agreement. 
 SECTION 7.02. Agents’ Reliance,
Etc. Neither the Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with the Loan Documents, except for its or their own gross negligence
or willful misconduct. Without limitation of the generality of the foregoing, each Agent: (a) may treat the payee of any Note as the holder thereof until Wachovia receives and accepts an Assignment and Acceptance entered into by the Lender that
is the payee of such Note, as assignor, and an Eligible Assignee, as assignee, as provided in Section 8.07; (b) may consult with legal counsel (including counsel for any Loan Party), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (c) makes no warranty or representation to any Lender and shall not be
responsible to any Lender for any statements, warranties or representations (whether written or oral) made in or in connection with the Loan Documents; (d) shall not have any duty to ascertain or to inquire as to the performance, observance or
satisfaction of any of the terms, covenants or conditions of any Loan Document on the part of any Loan Party or the existence at any time of any Default under the Loan Documents or to inspect the property (including the books and records) of any
Loan Party; (e) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of any lien or security interest created or purported to be
created under or in connection with, any Loan Document or any other instrument or document furnished pursuant thereto; and (f) shall incur no liability under or in respect of any Loan Document by acting upon any notice, consent, certificate or
other instrument or writing (which may be by telegram, telecopy or telex) believed by it to be genuine and signed or sent by the proper party or parties. 
 SECTION 7.03. Wachovia and Affiliates. With respect to its Commitments, the Advances made by it and the Notes issued to it, if any, Wachovia shall have the same rights and powers under the Loan Documents as any
other Lender and may exercise the same as though it were not an Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include Wachovia in its individual capacity. Wachovia and its affiliates may
accept deposits from, lend money to, act as trustee under indentures of, accept investment banking engagements from and generally engage in any kind of business with, any Loan Party, any of its Subsidiaries and any Person that may do business with
or own securities of any Loan Party or any such Subsidiary, all as if Wachovia was not an Agent and without any duty to account therefor to the Lenders. No Agent shall have any duty to disclose any information obtained or received by it or any of
its Affiliates relating to any Loan Party or any of its Subsidiaries to the extent such information was obtained or received in any capacity other than as such Agent. 
  

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 SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it has, independently and
without reliance upon any Agent or any other Lender and based on the financial statements referred to in Section 4.01 and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon any 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 this Agreement. 
 SECTION 7.05. Indemnification. 
 (a) Each Lender severally agrees to indemnify each Agent (to the extent not promptly reimbursed by the Borrower) from and against such Lender’s
ratable share (determined as provided below) of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or
asserted against such Agent in any way relating to or arising out of the Loan Documents or any action taken or omitted by such Agent under the Loan Documents (collectively, the “Indemnified Costs”); provided,
however, that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such Agent’s gross negligence or willful
misconduct as found in a final, non-appealable judgment by a court of competent jurisdiction. Without limitation of the foregoing, each Lender agrees to reimburse each Agent promptly upon demand for its ratable share of any costs and expenses
(including, without limitation, fees and expenses of counsel) payable by the Borrower under Section 8.04, to the extent that such Agent is not promptly reimbursed for such costs and expenses by the Borrower. In the case of any investigation,
litigation or proceeding giving rise to any Indemnified Costs, this Section 7.05 applies whether any such investigation, litigation or proceeding is brought by any Lender or any other Person. 
 (b) [Reserved]. 
 (c) For purposes of this
Section 7.05, the Lenders’ respective ratable shares of any amount shall be determined, at any time, according to the aggregate principal amount of the Advances outstanding at such time and owing to the respective Lenders. The failure of
any Lender to reimburse any Agent promptly upon demand for its ratable share of any amount required to be paid by the Lenders to such Agent as provided herein shall not relieve any other Lender of its obligation hereunder to reimburse such Agent for
its ratable share of such amount, but no Lender shall be responsible for the failure of any other Lender to reimburse such Agent for such other Lender’s ratable share of such amount. Without prejudice to the survival of any other agreement of
any Lender hereunder, the agreement and obligations of each Lender contained in this Section 7.05 shall survive the payment in full of principal, interest and all other amounts payable hereunder and under the other Loan Documents. 

SECTION 7.06. Successor Agents. Any Agent may resign at any time by giving written notice thereof to the Lenders and the Borrower. Upon any
such resignation, the Required Lenders, after consultation with the Borrower, shall have the right to appoint a successor Agent having a combined capital and surplus of at least $500,000,000. If no successor Agent shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Agent’s giving of notice of resignation, then the retiring Agent may, after consultation with the Borrower, on behalf of the Lenders, appoint a
successor Agent, which shall be a commercial bank organized under the laws of the United States or of any State thereof and having a combined capital and surplus of at least $500,000,000. Upon the acceptance of any appointment as Agent hereunder by
a successor Agent and, in the case of a successor Collateral Agent, upon the execution and filing or recording of such financing statements, or amendments thereto, and such amendments or supplements to the Mortgages, and such 
  

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other instruments or notices, as may be necessary or desirable, or as the Required Lenders may request, in order to continue the perfection of the Liens
granted or purported to be granted by the Collateral Documents, such successor Agent shall succeed to and become vested with all the rights, powers, discretion, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged
from its duties and obligations under the Loan Documents. If within 45 days after written notice is given of the retiring Agent’s resignation under this Section 7.06 no successor Agent shall have been appointed and shall have accepted such
appointment, then on such 45th day (a) the retiring Agent’s resignation shall become effective, (b) the retiring Agent shall thereupon be discharged from its duties and obligations under the Loan Documents and (c) the Required
Lenders shall thereafter perform all duties of the retiring Agent under the Loan Documents until such time, if any, as the Required Lenders appoint a successor Agent as provided above. After any retiring Agent’s resignation hereunder as Agent
shall have become effective, the provisions of this Article VII shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. 
 SECTION 7.07. Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Advance shall then be due and payable as herein expressed or by
declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise: 
 (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Advances, Letters of
Credit Agreement and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 2.07, 2.08(b) and 8.04) allowed
in such judicial proceeding; and 
 (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same; 
 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent
any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.08 and 8.04. 
 Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any
plan of reorganization, arrangement, adjustment or composition affecting the obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding. 
 SECTION 7.08. Collateral and Guaranty Matters. The Lenders irrevocably authorize the Administrative Agent, at its option and in its discretion,

 (a) to release any Lien on any property granted to or held by the Administrative Agent under any Loan Document
(i) upon termination of the Commitments and payment in full 

  

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of all Obligations (other than contingent indemnification obligations) and the expiration or termination of all Letters of Credit, (ii) that is sold or
to be sold as part of or in connection with any sale permitted hereunder or under any other Loan Document, or (iii) subject to Section 8.01, if approved, authorized or ratified in writing by the Required Lenders; and 
 (b) to release any Guarantor from its obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a transaction
permitted hereunder. 
 Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative
Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to this Section 7.08. 
 SECTION 7.09. Other Agents, Etc. None of the Lenders or other Persons identified on the facing page or signature pages of this Agreement as a
“syndication agent”, “documentation agent”, “bookrunner”, “joint bookrunner”, “arranger” or “joint lead arranger” shall have any right, power, obligation, liability, responsibility or duty
under this Agreement other than to the extent expressly set forth herein and, in the case of such Lenders, those applicable to all Lenders as such. Without limiting the foregoing, none of the Lenders or other Persons so identified shall have or be
deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the Lender or other Persons so identified in deciding to enter into this Agreement or in taking or not taking
action hereunder. 
 SECTION 7.10. Appointment of Supplemental Collateral Agents. 
 (a) It is the purpose of this Agreement and the other Loan Documents that there shall be no violation of any law of any jurisdiction denying or
restricting the right of banking corporations or associations to transact business as agent or trustee in such jurisdiction. It is recognized that in case of litigation under this Agreement or any of the other Loan Documents, and in particular in
case of the enforcement of any of the Loan Documents, or in case the Collateral Agent deems that by reason of any present or future law of any jurisdiction it may not exercise any of the rights, powers or remedies granted herein or in any of the
other Loan Documents or take any other action which may be desirable or necessary in connection therewith, it may be necessary that the Collateral Agent appoint an additional individual or institution as a separate trustee, co-trustee, collateral
agent, collateral sub-agent or collateral co-agent (any such additional individual or institution being referred to herein individually as a “Supplemental Collateral Agent” and collectively as “Supplemental
Collateral Agents”). 
 (b) In the event that the Collateral Agent appoints a Supplemental Collateral Agent with respect to any
Collateral, (i) each and every right, power, privilege or duty expressed or intended by this Agreement or any of the other Loan Documents to be exercised by or vested in or conveyed to the Collateral Agent with respect to such Collateral shall
be exercisable by and vest in such Supplemental Collateral Agent to the extent, and only to the extent, necessary to enable such Supplemental Collateral Agent to exercise such rights, powers and privileges with respect to such Collateral and to
perform such duties with respect to such Collateral, and every covenant and obligation contained in the Loan Documents and necessary to the exercise or performance thereof by such Supplemental Collateral Agent shall run to and be enforceable by
either the Collateral Agent or such Supplemental Collateral Agent, and (ii) the provisions of this Article and of Section 8.04 that refer to the Collateral Agent shall inure to the benefit of such Supplemental Collateral Agent and all
references therein to the Collateral Agent shall be deemed to be references to the Collateral Agent and/or such Supplemental Collateral Agent, as the context may require. 
  

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 (c) Should any instrument in writing from any Loan Party be required by any Supplemental Collateral Agent
so appointed by the Collateral Agent for more fully and certainly vesting in and confirming to him or it such rights, powers, privileges and duties, such Loan Party shall execute, acknowledge and deliver any and all such instruments promptly upon
request by the Collateral Agent. In case any Supplemental Collateral Agent, or a successor thereto, shall die, become incapable of acting, resign or be removed, all the rights, powers, privileges and duties of such Supplemental Collateral Agent, to
the extent permitted by law, shall vest in and be exercised by the Collateral Agent until the appointment of a new Supplemental Collateral Agent. 
 ARTICLE VIII 
 MISCELLANEOUS 
 SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of this Agreement or the Notes or any other Loan Document, nor consent to any departure by the Borrower or any other Loan Party therefrom,
shall in any event be effective unless the same shall be in writing and signed by the Required Lenders (or by the Administrative Agent on their behalf upon its receipt of the consent thereof) and the Borrower or the applicable Loan Party, as the
case may be, and acknowledged by the Administrative Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver
or consent shall: 
 (a) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to
Article VI) without the written consent of such Lender; 
 (b) postpone any date scheduled for or the amount of any scheduled
payment of principal or interest under Section 2.04 or 2.07, or any date fixed by the Administrative Agent for the payment of fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the
written consent of each Lender directly affected thereby; 
 (c) reduce or forgive the principal of, or the rate of interest
specified herein on, any Advance, or any fees or other amounts payable hereunder or under any other Loan Document, or change the manner of computation of any financial ratio (including any change in any applicable defined term) used in determining
the Applicable Margin that would result in a reduction of any interest rate on any Advance or any fee payable hereunder without the written consent of each Lender directly affected thereby; provided, however, that only the consent of
the Required Lenders shall be necessary (i) to amend the definition of “Default Interest” or to waive any obligation of the Borrower to pay interest at the Default Interest or (ii) to amend any financial covenant hereunder (or
any defined term used therein) for purposes other than to reduce the rate of interest on any Advance or to reduce any fee payable hereunder; 
 (d) [reserved]; 
 (e) change any provision of this Section 8.01 without the written
consent of each Lender, or change (i) the definition of (A) “Required Lenders” without the written consent of each Lender, or (B) “Secured Obligations” without the written consent of each Hedge Bank or
(ii) any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each
Lender; 
  

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 (f) release all or substantially all of the Collateral in any transaction or series of
related transactions, without the written consent of each Lender (except for the release of Collateral pursuant to Section 8.11); 
 (g) release any material Guarantor (except pursuant to the provisions hereof) from the applicable Guaranty, without the written consent of each Lender; 
 (h) as to any Facility, impose any greater restriction on the ability of any Lender under such Facility to assign any of its rights or
obligations hereunder without the written consent of Lenders having more than 50% of the sum of (i) the unused portion, if any, of the Commitments under such Facility plus (ii) the total outstanding amount of the Commitments under
such Facility, in each case, at such time then in effect; 
 (i) [reserved]; 
 (j) [reserved]; 
 (k) change the description set forth in Section 2.06(b)(i) (or any related definition set forth in Section 1.01) of any event giving rise to a required prepayment under such Section without the consent of the Required Revolving
Lenders and the Required Term Lenders; 
 and provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by
the Administrative Agent in addition to the Lenders required above, affect the rights or duties of, or any fees or other amounts payable to, the Administrative Agent under this Agreement or any other Loan Document and (ii) the Fee Letter may be
amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto. 
 SECTION 8.02. Notices, Etc.
All notices and other communications provided for hereunder shall be in writing (including fax or e-mail communication) and mailed, telegraphed, telecopied, telexed or delivered, if to the Borrower, at its address at 1510 West Loop South, Houston,
Texas 77027, Attention: General Counsel and Chief Financial Officer; if to any Lender, at its Domestic Lending Office specified opposite its name on Schedule I hereto; if to any other Lender, at its Domestic Lending Office specified in the
Assignment and Acceptance pursuant to which it became a Lender; if to the Administrative Agent or the Collateral Agent, at its address at 201 South College Street, Charlotte Plaza 8th Floor, Charlotte, North Carolina 28288, Attention: Agency
Services and 301 South College Street, NC5562, Charlotte, North Carolina 28288, Attention: Mark Felker; or, as to any party, at such other address as shall be designated by such party in a written notice to the other parties. All such notices and
other communications shall, when mailed, faxed or e-mailed, be effective when deposited in the mails, transmitted by fax or e-mail, except that notices and communications to any Agent pursuant to Article II, III or VII shall not be effective until
received by such Agent. Delivery by fax of an executed counterpart of a signature page to any amendment or waiver of any provision of this Agreement or the Notes or of any Exhibit hereto to be executed and delivered hereunder shall be effective as
delivery of an original executed counterpart thereof. Electronic mail and Internet and intranet websites may be used by the Administrative Agent and/or the Agents to distribute communications, such as financial statements and other information as
provided in Section 5.03, and to distribute Loan Documents for execution by the parties thereto, and the Administrative Agent and the Agents shall not be responsible for any losses, costs, expenses and liabilities that may arise by reason of
the use thereof, except for their own gross negligence or willful misconduct. The Administrative Agent and the Lenders shall be entitled to rely and act upon any notices (including telephonic notices) purportedly given by or on behalf of the
Borrower even if (a) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by 
  

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any form of notice specified herein, or (b) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall
indemnify each Agent and each Lender from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower in accordance with this Agreement, other than, with
respect to any Agent or Lender, the losses, costs, expenses and liabilities that result from the gross negligence or willful misconduct of such Agent or Lender. All telephonic notices to and other communications with the Administrative Agent may be
recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording. 
 SECTION 8.03. No Waiver;
Remedies; Entire Agreement. No failure on the part of any Lender or any Agent to exercise, and no delay in exercising, any right hereunder or under any Note or any other Loan Document shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. This Agreement and the other Loan
Documents constitute the entire agreement of the parties with respect hereto. 
 SECTION 8.04. Costs and Expenses. 
 (a) The Borrower and any other Loan Parties, jointly and severally, shall pay on demand (and whether or not the Closing Date occurs) (i) all
reasonable out-of-pocket costs and expenses of each Agent in connection with the preparation, execution, delivery, administration, modification and amendment of, or any consent or waiver under, the Loan Documents (including, without limitation,
(A) all due diligence, collateral review, arrangement, syndication, transportation, computer, duplication, appraisal, audit, insurance, consultant, search, filing and recording fees and expenses, (B) the costs and Expenses of the
Lenders’ Consultant and (C) the reasonable fees and expenses of counsel for the Administrative Agent and the Collateral Agent with respect thereto, with respect to advising the Administrative Agent and the Collateral Agent as to its rights
and responsibilities, or the perfection, protection, interpretation or preservation of rights or interests, under the Loan Documents, with respect to negotiations with any Loan Party or with other creditors of any Loan Party or any of its
Subsidiaries arising out of any Default or any events or circumstances that may give rise to a Default and with respect to presenting claims in or otherwise participating in or monitoring any bankruptcy, insolvency or other similar proceeding
involving creditors’ rights generally and any proceeding ancillary thereto) and (ii) all out-of-pocket costs and expenses of each Agent and each Lender in connection with the enforcement of the Loan Documents, whether in any action, suit
or litigation, or any bankruptcy, insolvency or other similar proceeding affecting creditors’ rights generally (including, without limitation, the reasonable fees and expenses of counsel for the Administrative Agent and each Lender with respect
thereto). The Borrower further agrees to pay any stamp or other taxes that may be payable in connection with the execution or delivery of any Loan Document. 
 (b) The Borrower shall indemnify, defend and save and hold harmless each Agent, each Lender and each of their Affiliates and their respective officers, directors, trustees, employees, (each, an “Indemnified
Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable out-of-pocket fees and expenses of counsel) that may be incurred by or asserted
or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation of a defense in connection
therewith) (i) the Facilities, the actual or proposed use of the proceeds of the Advances or the Letters of Credit, the Loan Documents or any of the transactions contemplated thereby or (ii) the actual or alleged presence of Hazardous
Materials on any property of any Loan Party or any of its Subsidiaries or any Environmental Action relating in any way to any Loan Party or any of its Subsidiaries, except to the extent such claim, damage, loss, liability 

  

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or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross
negligence or willful misconduct or actions taken in bad faith. In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 8.04(b) applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by any Loan Party, its directors, shareholders or creditors or an Indemnified Party or any other Person, whether or not any Indemnified Party is otherwise a party thereto and whether or not the
transactions contemplated hereby are consummated. 
 (c) Each Loan Party also agrees that, without the prior written consent of the
Administrative Agent (not to be unreasonably withheld), neither it nor any of its Affiliates will settle, compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding in respect of which indemnification
has been or could be sought under the indemnification provisions hereof (whether or not any Indemnified Party is an actual or potential party to such claim, action or proceeding), unless such settlement, compromise or consent (i) includes a
full and unconditional written release of each Indemnified Party from all liability arising out of such claim, action or proceeding and (ii) does not include any statement as to or an admission of fault, culpability or failure to act by or on
behalf of any Indemnified Party. In the event that an Indemnified Party is requested or required to appear as a witness in any action brought by or on behalf of or against any Loan Party or any of its Subsidiaries or Affiliates in which such
Indemnified Party is not named as a defendant, such Loan Party agrees to reimburse such Indemnified Party for all reasonable out-of-pocket expenses incurred by it in connection with such Indemnified Party’s appearing and preparing to appear as
such a witness, including, without limitation, the reasonable fees and expenses of its legal counsel. Each Loan Party also agrees not to assert any claim against any Agent, any Lender or any of their Affiliates, or any of their respective officers,
directors, employees, agents and advisors, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to the Facilities, the actual or proposed use of the proceeds of the Advances or the
Letters of Credit, the Transaction Documents or any of the transactions contemplated by the Transaction Documents. 
 (d) If any payment of
principal of, or Conversion of, any Eurodollar Rate Advance is made by the Borrower to or for the account of a Lender other than on the last day of the Interest Period for such Advance, as a result of a payment or Conversion pursuant to
Section 2.06, 2.09(b)(i) or 2.10(d), acceleration of the maturity of the Notes pursuant to Section 6.01 or for any other reason, or by an Eligible Assignee to a Lender other than on the last day of the Interest Period for such Advance upon
an assignment of rights and obligations under this Agreement pursuant to Section 8.07 as a result of a demand by the Borrower pursuant to Section 2.10, or if the Borrower fails to make any payment or prepayment of an Advance for which a
notice of prepayment has been given or that is otherwise required to be made, whether pursuant to Section 2.04, 2.06 or 6.01 or otherwise, the Borrower shall, upon demand by such Lender (with a copy of such demand to the Administrative Agent),
pay to the Administrative Agent for the account of such Lender any amounts required to compensate such Lender for any additional losses, costs or expenses that it may reasonably incur as a result of such payment or Conversion or such failure to pay
or prepay, as the case may be, including, without limitation, any loss (including loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or
maintain such Advance. 
 (e) If any Loan Party fails to pay when due any costs, expenses or other amounts payable by it under any Loan
Document, including, without limitation, fees and expenses of counsel and indemnities, such amount may be paid on behalf of such Loan Party by the Administrative Agent or any Lender, in its sole discretion. 
  

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 (f) Without prejudice to the survival of any other agreement of any Loan Party hereunder or under any
other Loan Document, the agreements and obligations of the Borrower contained in Sections 2.10 and 2.12 and this Section 8.04 shall survive the payment in full of principal, interest and all other amounts payable hereunder and under any of the
other Loan Documents; provided, however, that any Lender requesting payment under such sections must make demand therefore within 180 days of its knowledge of such required payment. 
 SECTION 8.05. Right of Set-off. Upon (a) the occurrence and during the continuance of any Event of Default and (b) the making of the
request or the granting of the consent specified by Section 6.01 to authorize the Administrative Agent to declare the Notes due and payable pursuant to the provisions of Section 6.01 or otherwise with the consent of the Required Lenders,
each Agent and each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and otherwise apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other Debt at any time owing by such Agent, such Lender or such Affiliate to or for the credit or the account of the Borrower against any and all of the Obligations of the Borrower now or hereafter
existing under the Loan Documents, irrespective of whether such Agent or such Lender shall have made any demand under this Agreement or such Note or Notes and although such Obligations may be unmatured. Each Agent and each Lender agrees immediately
to notify the Borrower after any such set-off and application; provided, however, that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Agent and each Lender and their
respective Affiliates under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) that such Agent, such Lender and their respective Affiliates may have. 
 SECTION 8.06. Binding Effect. This Agreement shall become effective when it shall have been executed by the Borrower and each Agent and the
Administrative Agent shall have been notified by each Lender that such Lender has executed it and thereafter shall be binding upon and inure to the benefit of the Borrower, each Agent and each Lender and their respective successors and assigns,
except that the Borrower shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of all the Lenders. 
 SECTION 8.07. Successors and Assigns; Participations. 
 (a) Successors and Assigns Generally.
The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Loan Party may assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an
Eligible Assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section or (iii) by way of pledge or assignment of a
security interest subject to the restrictions of paragraph (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
  

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 (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible Assignees
all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Advances at the time owing to it); provided that 
 (i) except in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Advances at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of the Commitment (which for this
purpose includes Advances outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Advances of the assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $1,000,000, unless
(A) such assignment is made to an existing Lender, to an Affiliate thereof, or (with respect to any Term Advance) to an Approved Fund, in which case no minimum amount shall apply, or (B) each of the Administrative Agent and, (1) so
long as no Default or Event of Default has occurred and is continuing, and (2) after sixty (60) days following the Closing Date, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed);
provided that the Borrower shall be deemed to have given its consent five (5) Business Days after the date written notice thereof has been delivered by the assigning Lender (through the Administrative Agent) unless such consent is
expressly refused by the Borrower prior to such fifth (5th) Business Day provided that simultaneous assignments to or by Approved Funds shall be
aggregated for this purpose; 
 (ii) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement with respect to the Loan or the Commitment assigned; 
 (iii) [reserved]; and 
 (iv) the parties to each assignment shall execute and deliver to the Administrative Agent an
Assignment and Assumption, together with a processing and recordation fee of $3,500, and the Eligible Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 
 Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in
each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and
the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 2.10, 2.12 and 7.05 with respect to facts and circumstances occurring prior
to the effective date of such assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (d) of this Section. 
 (c) Register. The
Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in Charlotte, North Carolina, a copy of each Assignment and Assumption delivered to it and a register for the recordation of the
names and addresses of the Lenders, 

  

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and the Commitments of, and principal amounts of the Advances owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 (d) Participations. Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent,
sell participations to any Person (other than a natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or
obligations under this Agreement (including all or a portion of its Commitment and/or the Advances owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement. 
 Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver or modification described in Section 8.01 that directly affects such Participant. Subject to paragraph (e) of this Section,
the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.10, 2.12 and 7.05 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the
extent permitted by law, each Participant also shall be entitled to the benefits of Section 8.04(f) as though it were a Lender, provided such Participant agrees to be subject to Section 2.10(f) as though it were a Lender.

 (e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under Sections 2.10 and
2.12 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.12 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of
the Borrower, to comply with Section 2.12 as though it were a Lender. 
 (f) Certain Pledges. Any Lender may at any time pledge
or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that
no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
 SECTION 8.08. Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement. Delivery by fax of an executed counterpart of a signature page to this Agreement shall be effective as delivery of an original executed counterpart of this
Agreement. 
 SECTION 8.09. [Reserved]. 
  

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 SECTION 8.10. Confidentiality. Neither any Agent nor any Lender shall disclose any Confidential
Information to any Person without the consent of the Borrower, other than (a) to such Agent’s or such Lender’s Affiliates and their officers, directors, employees, agents and advisors and to any pledgees under Section 8.07(f) and
to actual or prospective Eligible Assignees and participants, and then only on a confidential basis, (b) as required by any law, rule or regulation or judicial process, (c) as requested or required by any state, Federal or foreign
authority or examiner (including the National Association of Insurance Commissioners or any similar organization or quasi-regulatory authority) regulating such Lender, (d) to any rating agency when required by it, provided that, prior to
any such disclosure, such rating agency shall undertake to preserve the confidentiality of any Confidential Information relating to the Loan Parties received by it from such Lender, (e) in connection with any litigation or proceeding to which
such Agent or such Lender or any of its Affiliates may be a party or (f) in connection with the exercise of any right or remedy under this Agreement or any other Loan Document. 
 SECTION 8.11. Release of Collateral, Etc. Upon the sale, lease, transfer or other disposition of any item of Collateral of any Loan Party
(including, without limitation, as a result of the sale, in accordance with the terms of the Loan Documents, of the Loan Party that owns such Collateral) in accordance with the terms of the Loan Documents, the Collateral Agent will, at the
Borrower’s expense, execute and deliver to such Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted under the Collateral
Documents in accordance with the terms of the Loan Documents. The Administrative Agent on behalf of the Lenders will release any Guarantor from its obligations under the Guaranty if such Guarantor ceases to be a Subsidiary as a result of a
transaction permitted under this Agreement and will, at the Borrower’s expense, execute and deliver to such Guarantor such documents as such Guarantor may reasonably request to evidence such release. 
 SECTION 8.12. Patriot Act Notice. Each Lender and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Loan
Parties that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of such Loan Party and other information that will
allow such Lender or the Administrative Agent, as applicable, to identify such Loan Party in accordance with the Patriot Act. The Borrower shall, and shall cause each of its Subsidiaries to, provide, to the extent commercially reasonable, such
information and take such actions as are reasonably requested by the Administrative Agent or any Lenders in order to assist the Administrative Agent and the Lenders in maintaining compliance with the Patriot Act. 
 SECTION 8.13. Gaming Authorities. The Administrative Agent and each of the Lenders agree to cooperate with all Gaming Authorities in connection
with the administration of their regulatory jurisdiction over the Administrative Agent, each of the Lenders, and the Borrower and its Subsidiaries, including the provision of such documents or other information as may be requested by any such Gaming
Authority relating to Borrower or any of its Subsidiaries or to the Loan Documents. A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to apply. 
 SECTION 8.14. [Intentionally Omitted]. 
 SECTION 8.15. No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby, the Borrower and
each other Loan Party acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) the credit facility provided for hereunder and any related arranging or other services in connection therewith (including in
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any amendment, waiver or other modification hereof or of any other Loan Document) are an arm’s-length commercial transaction between the Borrower, the
other Loan Parties and their respective Affiliates, on the one hand, and the Administrative Agent and the Lead Arranger, on the other hand, and the Borrower and the other Loan Parties are capable of evaluating and understanding and understand and
accept the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents (including any amendment, waiver or other modification hereof or thereof); (ii) in connection with the process leading to such
transaction, the Administrative Agent and the Lead Arranger are and have been acting solely as a principal and is not the financial advisor, agent or fiduciary, for any of the Borrower, any other Loan Parties or any of their respective Affiliates,
stockholders, creditors or employees or any other Person; (iii) neither the Administrative Agent nor the Lead Arranger has assumed or will assume an advisory, agency or fiduciary responsibility in favor of any Borrower or any other Loan Party
with respect to any of the transactions contemplated hereby or the process leading thereto, including with respect to any amendment, waiver or other modification hereof or of any other Loan Document (irrespective of whether the Administrative Agent
of the Lead Arranger has advised or is currently advising any of the Borrower, the other Loan Parties or their respective Affiliates on other matters) and neither the Administrative Agent nor the Lead Arranger has any obligation to any of the
Borrower, the other Loan Parties or their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; (iv) the Administrative Agent, the Lead
Arranger and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower, the other Loan Parties and their respective Affiliates, and neither the Administrative Agent nor
the Lead Arranger has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Administrative Agent and the Lead Arranger have not provided and will not provide any legal,
accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or other modification hereof or of any other Loan Document) and the Borrower and each other Loan Party has consulted
its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. The Borrower and each other Loan Party hereby waives and releases, to the fullest extent permitted by law, any claims that it may have against the
Administrative Agent and the Lead Arranger with respect to any breach or alleged breach of agency or fiduciary duty. 
 SECTION 8.16.
Jurisdiction, Etc. 
 (a) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO
THE NONEXCLUSIVE JURISDICTION OF ANY NEW YORK STATE COURT OR FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN NEW YORK CITY, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OF THE OTHER LOAN DOCUMENTS TO WHICH IT IS A PARTY, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING
MAY BE HEARD AND DETERMINED IN ANY SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL AFFECT ANY RIGHT THAT ANY PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OF
THE OTHER LOAN DOCUMENTS IN THE COURTS OF ANY JURISDICTION. 
  

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 (b) EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY
LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS TO WHICH IT IS A PARTY IN ANY NEW
YORK STATE OR FEDERAL COURT. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. 
 SECTION 8.17. GOVERNING LAW. THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK. 
 SECTION 8.18. WAIVER OF JURY TRIAL. EACH OF THE BORROWER, THE GUARANTORS, THE AGENTS AND THE LENDERS IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS, THE ADVANCES, THE LETTERS OF CREDIT OR THE ACTIONS OF ANY AGENT OR ANY LENDER IN
THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF. 
 [Remainder of Page Intentionally Left Blank] 
  

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

			
	GOLDEN NUGGET, INC.
		
	By:	 	  

	Title:	 	

 GOLDEN NUGGET, INC. 
 SECOND LIEN CREDIT AGREEMENT 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written for the sole purpose of acknowledging and agreeing to the terms of Section 6.04 hereof. 
  

			
	LANDRY’S RESTAURANTS, INC.
		
	By:	 	  

	Title:	 	

 GOLDEN NUGGET, INC. 
 SECOND LIEN CREDIT AGREEMENT 

			
	 WACHOVIA BANK, NATIONAL ASSOCIATION,
     as Administrative Agent, Collateral Agent and
     Lender

		
	By:	 	  

	Title:	 	

 GOLDEN NUGGET, INC. 
 SECOND LIEN CREDIT AGREEMENT 

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

		
	By:	 	  

	Title:	 	

 GOLDEN NUGGET, INC. 
 SECOND LIEN CREDIT AGREEMENT 

			
	Lenders
	
	[NAME OF LENDER]
		
	By:	 	  

	Title:	 	

 GOLDEN NUGGET, INC. 
 SECOND LIEN CREDIT AGREEMENTLoan and Security Agreement

 EXHIBIT 10.1 
 Execution Version 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of the Effective Date among SILICON VALLEY BANK, a California
corporation (“Bank”), SUNRISE TELECOM INCORPORATED, a Delaware corporation (“Parent”), and SUNRISE TELECOM BROADBAND INC., a Georgia corporation (“Broadband”) (each of Parent and
Broadband may be referred to as a “Borrower” and together, “Borrowers”), provides the terms on which Bank shall lend to Borrowers and Borrowers shall repay Bank. The parties agree as follows: 
 1 ACCOUNTING AND OTHER TERMS 
 Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in
Section 13. All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. 
 2 LOAN AND TERMS OF PAYMENT 
 2.1 Promise to Pay. Each Borrower, jointly and severally, hereby unconditionally promises to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon as and when due in accordance
with this Agreement. 
 2.1.1 Revolving Advances. 
 (a) Availability. Subject to the terms and conditions of this Agreement, Bank shall make Advances not exceeding the Availability Amount. Amounts borrowed under the Revolving Line may be repaid and, prior to the
Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 
 (b) Termination;
Repayment. The Revolving Line terminates on the Revolving Line Maturity Date, when the principal amount of all Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately due and payable.
The Revolving Line may be prepaid, in whole or in part, at any time without penalty. 
 2.1.2 Letters of Credit Sublimit. 

(a) As part of the Revolving Line, Bank shall issue or have issued Letters of Credit for Borrowers’ account. The face amount of outstanding
Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) may not exceed the Availability Amount. Such aggregate amounts utilized hereunder shall at all times reduce the amount otherwise available for
Advances under the Revolving Line. If, on the Revolving Maturity Date, there are any outstanding Letters of Credit, then on such date Borrowers shall provide to Bank cash collateral in an amount equal to 105% of the face amount of all such Letters
of Credit plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to said Letters of Credit. All Letters of Credit shall be
in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s standard Application and Letter of Credit Agreement (the “Letter of Credit Application”). Borrower
agrees to execute any further documentation in connection with the Letters of Credit as Bank may reasonably request. 
 (b) The obligation of
Borrowers to immediately reimburse Bank for drawings made under Letters of Credit shall be absolute, unconditional, and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, such Letters of Credit, and the
Letter of Credit Application. 
 (c) Borrowers may request that Bank issue a Letter of Credit payable in a Foreign Currency. If a demand for
payment is made under any such Letter of Credit, Bank shall treat such demand as an Advance to Borrowers of the equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges) in Dollars
at the then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency. 

 (d) To guard against fluctuations in currency exchange rates, upon the issuance of any Letter of Credit
payable in a Foreign Currency, Bank shall create a reserve (the “Letter of Credit Reserve”) under the Revolving Line in an amount equal to ten percent (10%) of the face amount of such Letter of Credit. The amount of the Letter
of Credit Reserve may be adjusted by Bank from time to time to account for fluctuations in the exchange rate. The availability of funds under the Revolving Line shall be reduced by the amount of such Letter of Credit Reserve for as long as such
Letter of Credit remains outstanding. 
 2.1.3 Foreign Exchange Sublimit. As part of the Revolving Line, Borrowers may enter into
foreign exchange contracts with Bank under which a Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency (each, a “FX Forward Contract”) on a specified date (the “Settlement Date”).
FX Forward Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent (10%) of each outstanding FX Forward Contract in a maximum aggregate amount
equal to $1,000,000 (the “FX Reserve”). The aggregate amount of FX Forward Contracts at any one time may not exceed ten (10) times the amount of the FX Reserve. The obligations of Borrowers relating to this section may not
exceed the Availability Amount. 
 2.1.4 Cash Management Services Sublimit. Borrowers may use up to the Availability Amount (the
“Cash Management Services Sublimit”) for Bank’s cash management services which may include merchant services, direct deposit of payroll, business credit card, and check cashing services identified in Bank’s various cash
management services agreements (collectively, the “Cash Management Services”). Any amounts Bank pays on behalf of Borrowers or any amounts that are not paid by Borrowers for any Cash Management Services will be treated as Advances
under the Revolving Line and will accrue interest at the interest rate applicable to Advances. 
 2.2 Overadvances. If, at any time,
the Credit Extensions under Sections 2.1.1 , 2.1.2, 2.1.3 and 2.1.4 exceed the lesser of either (a) the Revolving Line or (b) the Borrowing Base, Borrowers shall immediately pay to Bank in cash such excess. 
 2.3 Payment of Interest on the Credit Extensions. 
 (a) Interest Rate. 
 (i) Advances. Subject to Section 2.3(b), the principal amount
outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the Prime Rate, which interest shall be payable monthly in accordance with Section 2.3(f) below. 
 (b) Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per
annum which is five percentage points above the rate effective immediately before the Event of Default (the “Default Rate”). Payment or acceptance of the increased interest rate provided in this Section 2.3(b) is not a
permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 
 (c) Adjustment to Interest Rate. Changes to the interest rate of any Credit Extension based on changes to the Prime Rate shall be effective on the effective date of any change to the Prime Rate and to the
extent of any such change. 
 (d) 360-Day Year. Interest shall be computed on the basis of a 360-day year for the actual number of
days elapsed. 
 (e) Debit of Accounts. Bank may debit any of any Borrower’s deposit accounts, including the Designated Deposit
Account, for principal and interest payments or any other amounts any Borrower owes Bank when due. These debits shall not constitute a set-off. 
 (f) Payments. Unless otherwise provided, interest is payable monthly on the first calendar day of each month. Payments of principal and/or interest received after 12:00 p.m. Pacific time are considered received at the opening of
business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest, as applicable, shall continue to accrue. 
  

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 2.4 Fees. Borrowers shall pay to Bank: 
 (a) Commitment Fee. A fully earned, non-refundable commitment fee of $30,000, on the Effective Date; 
 (b) Letter of Credit Fee. Bank’s customary fees and expenses for the issuance or renewal of Letters of Credit; 
 (c) Unused Revolving Line Facility Fee. A fee (the “Unused Revolving Line Facility Fee”), payable monthly, in arrears, on a
calendar year basis, in an amount equal to one-quarter percent 0.25%) per annum of the average unused portion of the Revolving Line, as determined by Bank. Borrowers shall not be entitled to any credit, rebate or repayment of any Unused
Revolving Line Facility Fee previously earned by Bank pursuant to this Section notwithstanding any termination of the Agreement or the suspension or termination of Bank’s obligation to make loans and advances hereunder; and 
 (d) Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and expenses, plus expenses, for documentation and negotiation of
this Agreement) incurred through and after the Effective Date, when due. 
 3 CONDITIONS OF LOANS 
 3.1 Conditions Precedent to Initial Credit Extension. Bank’s obligation to make the initial Credit Extension is subject to the condition
precedent that Bank shall have received, in form and substance satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 
 (a) Borrowers shall have delivered duly executed original signatures to the Loan Documents to which it is a party; 
 (b) Borrowers shall have delivered duly executed original signatures to the Control Agreements; 
 (c) Borrowers shall have delivered its Operating Documents and good standing certificates of (i) Parent certified by the Secretary of State of the
States of Delaware and California; and (ii) Broadband certified by the Secretary of State of the State of Georgia as of a date no earlier than thirty (30) days prior to the Effective Date; 
 (d) Borrowers shall have delivered duly executed original signatures to the completed Borrowing Resolutions for each Borrower; 
 (e) Bank shall have received certified copies, dated as of a recent date, of financing statement searches, as Bank shall request, accompanied by written
evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released;

 (f) Borrowers shall each have delivered a Perfection Certificate; 
 (g) Borrowers shall have delivered evidence satisfactory to Bank that the insurance policies required by Section 6.5 hereof are in full force and
effect, together with appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Bank; and 
 (h) Borrowers shall have paid the fees and Bank Expenses then due as specified in Section 2.4 hereof. 
 3.2 Conditions
Precedent to all Credit Extensions. Bank’s obligation to make each Credit Extension, including the initial Credit Extension, is subject to the following: 
 (a) except as otherwise provided in Section 3.4(a), timely receipt of an executed Payment/Advance Form; 
  

 -3- 

 (b) the representations and warranties in Section 5 shall be true in all material respects on the
date of the Payment/Advance Form and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality
in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no Default or Event of Default shall have
occurred and be continuing or result from the Credit Extension. Each Credit Extension is each Borrower’s representation and warranty on that date that the representations and warranties in Section 5 remain true in all material respects;
provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and
warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and 
 (c)
in Bank’s sole discretion, which discretion shall be reasonable, there has not been a Material Adverse Change. 
 3.3 Covenant to
Deliver. 
 Each Borrower agrees to deliver to Bank each item required to be delivered to Bank under this Agreement as a condition to any
Credit Extension. Each Borrower expressly agrees that the extension of a Credit Extension prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of such Borrower’s obligation to deliver such item, and any such
extension in the absence of a required item shall be in Bank’s sole discretion. 
 3.4 Procedures for Borrowing. 
 (a) Advances. Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set forth in this Agreement, to
obtain an Advance, Borrowers shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Pacific time on the Funding Date of the Advance. Together with any such electronic or facsimile
notification, Borrowers shall deliver to Bank by electronic mail or facsimile a completed Payment/Advance Form executed by a Responsible Officer or his or her designee. Bank may rely on any telephone notice given by a person whom Bank believes is a
Responsible Officer or designee. Bank shall credit Advances to the Designated Deposit Account. Bank may make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the
Advances are necessary to meet Obligations which have become due. 
 4 CREATION OF SECURITY INTEREST 
 4.1 Grant of Security Interest. Each Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a
continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. Each Borrower represents, warrants, and covenants that the security
interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that may have superior priority to Bank’s Lien under this Agreement). If any
Borrower shall acquire a commercial tort claim, such Borrower shall promptly notify Bank in a writing signed by such Borrower of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof,
all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Bank. 
 If this Agreement is
terminated, Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Bank’s obligation to
make Credit Extensions has terminated, Bank shall, at Borrowers’ sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to Borrowers. 
 4.2 Authorization to File Financing Statements. Each Borrower hereby authorizes Bank to file financing statements, without notice to Borrowers,
with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by either Borrowers or any other Person, shall be deemed to violate the rights of Bank
under the Code. 
  

 -4- 

 5 REPRESENTATIONS AND WARRANTIES 
 Each Borrower represents and warrants as follows: 
 5.1 Due Organization and Authorization. Borrower and each of its Subsidiaries are duly existing and in good standing as Registered Organizations in their respective jurisdictions of formation and are qualified and licensed to do
business and are in good standing in any jurisdiction in which the conduct of their business or their ownership of property requires that they be qualified except where the failure to do so could not reasonably be expected to have a material adverse
effect on Borrower’s business. In connection with this Agreement, Borrower has delivered to Bank a completed certificate signed by Borrower entitled “Collateral Information Certificate” (the “Perfection Certificate”).
Borrower represents and warrants to Bank that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type and is organized in the
jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none; (d) the Perfection Certificate
accurately sets forth Borrower’s place of business, or, if more than one, its chief executive office as well as Borrower’s mailing address (if different than its chief executive office); (e) Borrower (and each of its predecessors) has
not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate
pertaining to Borrower and each of its Subsidiaries is accurate and complete. If Borrower is not now a Registered Organization but later becomes one, Borrower shall promptly notify Bank of such occurrence and provide Bank with Borrower’s
organizational identification number. 
 The execution, delivery and performance of the Loan Documents have been duly authorized, and do not
conflict with Borrower’s Operating Documents, nor constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound in which the
default could reasonably be expected to have a material adverse effect on Borrower’s business. 
 5.2 Collateral. Borrower has
good title to, has rights in, and the power to transfer each item of the Collateral in which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no deposit accounts other than the deposit
accounts with Bank, the deposit accounts, if any, described in the Perfection Certificate delivered to Bank in connection herewith, or of which Borrower has given Bank notice and taken such actions as are necessary to give Bank a perfected security
interest therein. 
 The Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in
the Perfection Certificate. None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as Borrower has given Bank notice pursuant to Section 7.2; provided, however,
the foregoing restriction with respect to the location of Collateral shall not apply to (i) portable items of Equipment (e.g. laptop computers and the like) that at any time may be in possession of Borrower’s employees and may be relocated
in the ordinary course of Borrower’s business; or (ii) any other item of Equipment (e.g. demonstration equipment at sales offices of Borrower and its Subsidiaries, with sales representatives or at customer locations) that at any time may
be located by Borrower in the ordinary course of its business at a location other than Borrower’s place of business specified in the Perfection Certificate. In the event that Borrower, after the date hereof, intends to store or otherwise
deliver any portion of the Collateral to a bailee, then Borrower will first receive the written consent of Bank and such bailee must execute and deliver a bailee agreement in form and substance satisfactory to Bank in its sole discretion.

 Borrower is the sole owner of its intellectual property, except for non-exclusive licenses granted to its customers in the ordinary course
of business. Each patent is valid and enforceable, and no part of the intellectual property has been judged invalid or unenforceable, in whole or in part, and to the best of Borrower’s knowledge, no claim has been made that any part of the
intellectual property violates the rights of any third party except to the extent such claim could not reasonably be expected to have a material adverse effect on Borrower’s business. Except as noted on the Perfection Certificate, Borrower is
not a party to, nor is bound by, any material license or other agreement with respect to which Borrower is the licensee that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or
agreement or any other property. 
 5.3 Accounts Receivable. For any Account in any Borrowing Base Certificate, all statements made
and all unpaid balances appearing in all invoices, instruments and other documents evidencing such Accounts are and shall be true and correct and all such invoices, instruments and other documents, and all of Borrower's Books 

  

 -5- 

 
are genuine and in all respects what they purport to be. All sales and other transactions underlying or giving rise to each Eligible Account shall comply in
all material respects with all applicable laws and governmental rules and regulations. Borrower has no knowledge of any actual or imminent Insolvency Proceeding of any Account Debtor whose accounts are an Eligible Account in any Borrowing Base
Certificate. To the best of Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Eligible Accounts are genuine, and all such documents, instruments and agreements are legally
enforceable in accordance with their terms. 
 5.4 Litigation. Except as set forth on Schedule 5.4 hereto, there are no actions or
proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by or against Borrower or any of its Subsidiaries involving more than $500,000. 
 5.5 No Material Deviation in Financial Statements. Except as set forth on Schedule 5.5 hereto, all consolidated financial statements for Borrower
and any of its Subsidiaries delivered to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations. There has not been any material deterioration in
Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Bank. 
 5.6
Solvency. The fair salable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and
Borrower is able to pay its debts (including trade debts) as they mature. 
 5.7 Regulatory Compliance. Borrower is not an
“investment company” or a company “controlled” by an “investment company” under the Investment Company Act. Borrower is not engaged as one of its important activities in extending credit for margin stock (under
Regulations T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which could
reasonably be expected to have a material adverse effect on its business. None of Borrower’s or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by
previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Except as set forth on Schedule 5.7 hereto, Borrower and each of its Subsidiaries have obtained all consents, approvals and
authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue its business as currently conducted. 
 5.8 Subsidiaries; Investments. Except as set forth on Schedule 5.8 hereto, Borrower does not own any stock, partnership interest or other equity
securities except for Permitted Investments. 
 5.9 Tax Returns and Payments; Pension Contributions. Borrower has timely filed all
required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower. Borrower may defer payment of any contested taxes, provided that Borrower
(a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Bank in writing of the commencement of, and any material development in, the proceedings,
(c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien”. Borrower is unaware of any
claims or adjustments proposed for any of Borrower's prior tax years which could result in additional taxes becoming due and payable by Borrower. Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred
compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which
could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
 5.10 Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions solely as working capital and to fund its general business
requirements and not for personal, family, household or agricultural purposes. 
  

 -6- 

 5.11 Designation of Indebtedness under this Agreement as Senior Indebtedness. 
 All principal of, interest (including all interest accruing after the commencement of any bankruptcy or similar proceeding, whether or not a claim for
post-petition interest is allowable as a claim in any such proceeding), and all fees, costs, expenses and other amounts accrued or due under this Agreement shall constitute “Designated Senior Indebtedness” under the terms of any indenture.

 5.12 Full Disclosure. No written representation, warranty or other statement of Borrower in any certificate or written statement
given to Bank, as of the date such representations, warranties, or other statements were made, taken together with all such written certificates and written statements given to Bank, contains any untrue statement of a material fact or omits to state
a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are
not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 
 6 AFFIRMATIVE COVENANTS 
 Each Borrower shall do all of the following: 
 6.1 Government Compliance. Borrower shall, and shall cause each of its Subsidiaries to, maintain its legal existence and good standing in its
jurisdiction of formation and each jurisdiction in which the nature of its business requires them to be so qualified, except where the failure to take such action would not reasonably be expected to have a material adverse effect on Borrower’s
and its Subsidiaries’ business or operations, taken as a whole; provided, that (a) the legal existence of any Subsidiary that is not a Guarantor may be terminated or permitted to lapse, and any qualification of such Subsidiary to do
business may be terminated or permitted to lapse, if, in the good faith judgment of Borrower, such termination or lapse is in the best interests of Borrower and its Subsidiaries, taken as a whole, and (b) Borrower may not permit its
qualification to do business in the jurisdiction of its chief executive office to terminate or lapse; and provided, further, that this Section 6.2 shall not be construed to prohibit any other transaction that is otherwise
permitted in Section 7 of this Agreement. 
 Borrower shall comply, and shall have each Subsidiary comply, with all laws, ordinances and
regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower’s business 
 6.2
Financial Statements, Reports, Certificates. 
 (a) Deliver to Bank: (i) as soon as available, but no later than the earlier of
(A) five (5) days after filing with the Securities Exchange Commission (“SEC”) or (B) 50 days after each fiscal quarter or 90 days after each fiscal year end, the Borrower’s 10K, 10Q, and 8K reports; (ii) a
Compliance Certificate together with delivery of the 10K and 10Q reports; (iii) within 45 days after the end of each fiscal year, annual financial projections for the following fiscal year (on a quarterly basis) as approved by Borrower’s
board of directors, together with any related business forecasts used in the preparation of such annual financial projections; (iv) a prompt report of any legal actions pending or threatened against Borrower or any Subsidiary that could
reasonably be expected to result in damages or costs to Borrower or any Subsidiary of $1,000,000 or more; and (v) budgets, sales projections, operating plans or other financial information Bank reasonably requests. Notwithstanding anything
contained in this Section 6.2(a), until such time as Borrowers are current with their SEC filings, Borrowers shall deliver to Bank in substitution of its timely 10K and 10Q reports, not later than forty-five (45) days after the end of each
fiscal quarter, a company-prepared consolidated balance sheet and income statement covering Parent’s and each of its Subsidiaries operations during the period certified by a Responsible Officer and in a form acceptable to Bank, and accompanied
by a Compliance Certificate. 
 Borrower’s 10K, 10Q, and 8K reports required to be delivered pursuant to Section 6.2(a)(i) shall be
deemed to have been delivered on the date on which Borrower posts such report or provides a link thereto on Borrower’s or another website on the Internet; provided, that Borrower shall provide paper copies to Bank of the Compliance
Certificates required by Section 6.2(a)(ii). 
 (b) Within 45 days after the last day of each month, Borrower will deliver to Bank a
cash balance report, including account statements detailing cash management, types of investments held and maturity dates. 
  

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 (c) Within forty-five (45) days after the last day of any month in which any Advances, or any other
Credit Extensions hereunder in excess of $500,000, are outstanding, deliver to Bank a duly completed Borrowing Base Certificate signed by a Responsible Officer, with (i) aged listings of accounts receivable and accounts payable (by invoice
date) and (ii) a Deferred Revenue report. In each other month, Borrower shall deliver to Bank aged listings of accounts receivable and accounts payable (by invoice date) within forty-five (45) days after the last day of such month.

 6.3 Inspections and Audits. Allow Bank to audit Borrower’s Collateral at Borrower’s expense. Following an initial audit,
to be completed within forty-five (45) days after the Effective Date, such audits shall be conducted no more often than once every year unless a Default or an Event of Default has occurred and is continuing. 
 6.4 Taxes; Pensions. Make, and cause each of its Subsidiaries to make, timely payment of all foreign, federal, state, and local taxes or
assessments (other than taxes and assessments which Borrower is contesting pursuant to the terms of Section 5.9 hereof) and shall deliver to Bank, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to
fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 
 6.5 Insurance. Keep its
business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location and as Bank may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are
satisfactory to Bank. All property policies shall have a loss payable endorsement showing Bank as an additional loss payee and waive subrogation against Bank, and all liability policies shall show, or have endorsements showing, Bank as an additional
insured. All policies (or the loss payable and additional insured endorsements) shall provide that the insurer must give Bank at least twenty (20) days notice before canceling, amending, or declining to renew its policy. At Bank’s request,
Borrower shall deliver certified copies of policies and evidence of all premium payments. If Borrower fails to obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof of payment to third persons
and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the policies Bank deems prudent. 
 6.6 Operating Accounts. 
 (a) Maintain
a depository account with Bank or Bank’s affiliates. 
 (b) In addition, for each Collateral Account that Borrower at any time
maintains, Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such
Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other
employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by Borrower as such. 
 6.7
Financial Covenants. 
 Borrower shall maintain at all times, to be tested as of the last day of each quarter, unless otherwise noted, on
a consolidated basis with respect to Borrower and its Subsidiaries: 
 (a) Quick Ratio. A ratio of Quick Assets to Current Liabilities
minus Deferred Revenue of at least 1.0 to 1.0. 
 (b) Tangible Net Worth. A Tangible Net Worth of at least $57,000,000, increasing by
50% of quarterly Net Income and 50% of issuances of equity after the Effective Date and the principal amount of Subordinated Debt. 
 6.8
Protection of Intellectual Property Rights. Borrower shall: (a) protect, defend and maintain the validity and enforceability of its intellectual property; (b) promptly advise Bank in writing of material infringements of its
intellectual property; and (c) not allow any intellectual property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Bank’s written consent. 
  

 -8- 

 6.9 Litigation Cooperation. From the date hereof and continuing through the termination of this
Agreement, make available to Bank, without expense to Bank, Borrower and its officers, employees and agents and Borrower's books and records, to the extent that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or
proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower. 
 6.10 Designated Senior
Indebtedness. Borrower shall designate all principal of, interest (including all interest accruing after the commencement of any bankruptcy or similar proceeding, whether or not a claim for post-petition interest is allowable as a claim in any
such proceeding), and all fees, costs, expenses and other amounts accrued or due under this Agreement as “Designated Senior Indebtedness”, or such similar term, in any future Subordinated Debt incurred by Borrower after the date hereof, if
such Subordinated Debt contains such term or similar term and if the effect of such designation is to grant to Bank the same or similar rights as granted to Bank as a holder of “Designated Senior Indebtedness” under such Indebtedness.

 6.11 Further Assurances. Borrower shall execute any further instruments and take further action as Bank reasonably requests to
perfect or continue Bank’s Lien in the Collateral or to effect the purposes of this Agreement. 
 7 NEGATIVE COVENANTS 

 No Borrower shall do any of the following without Bank’s prior written consent, which consent shall not be unreasonably withheld:

 7.1 Dispositions. Convey, sell, lease, transfer or otherwise dispose of (collectively “Transfer”), or permit any
of its Subsidiaries to Transfer, all or any part of its business or property, except for: 
 (a) Transfers in the ordinary course of business
for reasonably equivalent consideration; 
 (b) Transfers to a Borrower or any of its Subsidiaries from a Borrower or any of its
Subsidiaries; 
 (c) Transfers of property for fair market value; 
 (d) Transfers of property in connection with sale-leaseback transactions; 
 (e) Transfers of property to the extent such property is exchanged for credit against, or proceeds are promptly applied to, the purchase price of other property used or useful in the business of Borrower or its
Subsidiaries; 
 (f) Transfers constituting non-exclusive licenses and similar arrangements for the use of the property of Borrower or its
Subsidiaries in the ordinary course of business and other non-perpetual licenses that may be exclusive in some respects other than territory (and/or that may be exclusive as to territory only in discreet geographical areas outside of the United
States), but that could not result in a legal transfer of Borrower’s title in the licensed property; 
 (g) Transfers otherwise
permitted by the Loan Documents; 
 (h) sales or discounting of delinquent accounts in the ordinary course of business; 
 (i) Transfers associated with the making or disposition of a Permitted Investment; 
 (j) Transfers in connection with a permitted acquisition of a portion of the assets or rights acquired; 
 (k) Transfers associated with the granting of Permitted Liens; and 
 (l) Transfers not otherwise permitted in this Section 7.1, provided, that the aggregate book value of all such Transfers by Borrower and its Subsidiaries, together, shall not exceed $500,000 in any fiscal year.

  

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 7.2 Changes in Business; Change in Control; Jurisdiction of Formation. 
 Engage in any material line of business other than those lines of business conducted by Borrower and its Subsidiaries on the date hereof and any
businesses reasonably related, complementary or incidental thereto or reasonable extensions thereof; permit or suffer any Change in Control. Borrower will not, without prior written notice, change its jurisdiction of formation. 
 7.3 Mergers or Acquisitions. 
 Merge
or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any Person other than with Borrower or any Subsidiary, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or
property of a Person other than Borrower or any Subsidiary, except where no Event of Default has occurred and is continuing or would result from such action during the term of this Agreement, and (a) Borrower is the surviving entity or
(b) such merger or consolidation is a Transfer otherwise permitted pursuant to Section 7.1 hereof. 
 7.4 Indebtedness.
Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 
 7.5
Encumbrance. Create, incur, or allow any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any
Collateral not to be subject to the first priority security interest granted herein, or enter into any agreement, document, instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or
has the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s intellectual property, except as is otherwise
permitted in Section 7.1 hereof and the definition of “Permitted Lien” herein. 
 7.6 Maintenance of Collateral
Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.6.(b) hereof. 
 7.7 Distributions;
Investments. (a) Directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments, or permit any of its Subsidiaries to do so; or (b) pay any dividends or make any distribution or
payment or redeem, retire or purchase any capital stock other than Permitted Distributions. 
 7.8 Transactions with Affiliates.
Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for (a) transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms (when viewed in
the context of any series of transactions of which it may be a part, if applicable); or (b) transactions among Borrower and its Subsidiaries and among Borrower’s Subsidiaries so long as no Event of Default exists or could result therefrom.

 7.9 Subordinated Debt. Make or permit any payment on or amendments of any Subordinated Debt, except (a) payments pursuant to
the terms of the Subordinated Debt; (b) payments made with Borrower’s capital stock or other Subordinated Debt; (c) amendments to Subordinated Debt so long as such Subordinated Debt remains subordinated in right of payment to this
Agreement and any Liens securing such Subordinated Debt remain subordinate in priority to Bank’s Lien hereunder; or (d) other purchases or payments of Subordinated Debt, provided that the aggregate amount of such purchases or payments made
pursuant to this clause (d), when combined with all other distributions, dividends or purchases of Borrower’s capital stock in cash, shall not exceed $500,000 in any fiscal year, and no Event of Default then exists or could result from such
purchases. 
 7.10 Compliance. Become an “investment company” or a company controlled by an “investment company”,
under the Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of
any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate
any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries to 

  

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do so; withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other
event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its
successors or any other governmental agency. 
 8 EVENTS OF DEFAULT 
 Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 
 8.1 Payment Default. Borrowers fail to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay
any other Obligations within three (3) Business Days after such Obligations are due and payable. During the cure period, the failure to cure the payment default is not an Event of Default (but no Credit Extension will be made during the cure
period); 
 8.2 Covenant Default. 
 (a) Borrowers fail or neglect to perform any obligation in Sections 6.2 (except as set forth in subsection (b) below), 6.6, 6.7, 6.10, 6.11 or violates any covenant in Section 7; 
 (b) Borrowers fail or neglect to perform any obligation in Section 6.2(a)(iii), 6.2(a)(v), 6.2(b) or 6.2(c), or the obligation to deliver
company-prepared quarterly financial statements and the accompanying Compliance Certificate contained in the last sentence of Section 6.2(a), and has failed to cure such default within five (5) days after the occurrence thereof; or

 (c) Borrowers fail or neglect to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this
Agreement, any Loan Documents, and as to any default (other than those specified in Section 8 below) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within eight
(8) Business Days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the eight (8) Business Day period or cannot after diligent attempts by Borrowers be cured within such eight
(8) Business Day period, and such default is likely to be cured within a reasonable time, then Borrowers shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such
reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Grace periods provided under this section shall not apply, among other things, to
financial covenants or any other covenants set forth in subsections (a) or (b) above; 
 8.3 Material Adverse Change. A
Material Adverse Change occurs; 
 8.4 Attachment. (a) Any material portion of any Borrower’s assets is attached, seized,
levied on, or comes into possession of a trustee or receiver and the attachment, seizure or levy is not removed in eight () Business Days; (b) the service of process upon a Borrower seeking to attach, by trustee or similar process, any funds of
such Borrower on deposit with Bank, or any entity under control of Bank (including a subsidiary); (c) any Borrower is enjoined, restrained, or prevented by court order from conducting a material part of its business; (d) a judgment or
other claim in excess of $500,000 becomes a Lien on any of a Borrower’s assets; or (e) a notice of lien, levy, or assessment is filed against any of a Borrower’s assets by any government agency and not paid within eight(8) Business
Days after such Borrower receives notice. These are not Events of Default if stayed or if a bond is posted pending contest by such Borrower (but no Credit Extensions shall be made during the cure period); 
 8.5 Insolvency. Any Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent; (b) any
Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against any Borrower and not dismissed or stayed within thirty (30) days (but no Credit Extensions shall be made while of any of the conditions described in
clause (a) exist and/or until any Insolvency Proceeding is dismissed); 
 8.6 Other Agreements. If any Borrower fails to
(a) make any payment that is due and payable with respect to any Material Indebtedness and such failure continues after the applicable grace or notice period, if any, specified in the agreement or instrument relating thereto, or
(b) perform or observe any other condition or covenant, 

  

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or any other event shall occur or condition exist under any agreement or instrument relating to any Material Indebtedness, and such failure continues after
the applicable grace or notice period, if any, specified in the agreement or instrument relating thereto and the effect of such failure, event or condition is to cause the holder or holders of such Material Indebtedness to accelerate the maturity of
such Material Indebtedness or cause the mandatory repurchase of any Material Indebtedness; 
 8.7 Judgments. A judgment or judgments
for the payment of money in an amount, individually or in the aggregate, of at least $1,000,000) (not covered by independent third-party insurance) shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of ten
(10) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment); 
 8.8 Misrepresentations. Borrower or any Person acting for Borrower makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to
enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made; 
 8.9 Subordinated Debt. A default or breach occurs under any agreement between Borrower and any creditor of Borrower that signed a subordination, intercreditor, or other similar agreement with Bank, or any creditor that has signed
such an agreement with Bank breaches any terms of such agreement; or 
 8.10 Guaranty. (a) Any guaranty of any Obligations
terminates or ceases for any reason to be in full force and effect; (b) any Guarantor does not perform any obligation or covenant under any guaranty of the Obligations; (c) any circumstance described in Sections, 8.4, 8.5, 8.7, or 8.8.
occurs with respect to any Guarantor, (d) the liquidation, winding up, or termination of existence of any Guarantor; or (e) (i) a material impairment in the perfection or priority of Bank’s Lien in the collateral provided by
Guarantor or in the value of such collateral or (ii) a material adverse change in the general affairs, management, results of operation, condition (financial or otherwise) or the prospect of repayment of the Obligations occurs with respect to
any Guarantor. 
 9 BANK’S RIGHTS AND REMEDIES 
 9.1 Rights and Remedies. Upon the expiration of any cure period, if any, if an Event of Default occurs and while it continues Bank may, without
notice or demand, do any or all of the following: 
 (a) declare all Obligations immediately due and payable (but if an Event of Default
described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank); 
 (b) stop advancing money
or extending credit for Borrowers’ benefit under this Agreement or under any other agreement between any Borrower and Bank; 
 (c)
demand that Borrowers (i) deposit cash with Bank in an amount equal to the aggregate amount of any Letters of Credit remaining undrawn, as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrowers
shall forthwith deposit and pay such amounts, and (ii) pay in advance all Letter of Credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit; 
 (d) terminate any FX Forward Contracts; 
 (e) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers advisable, notify any Person owing Borrowers money of Bank’s security interest in such funds, and verify
the amount of such account; 
 (f) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or
its security interest in the Collateral. Borrowers shall assemble the Collateral if Bank requests and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of the
Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Each Borrower grants Bank a license to enter and occupy any of its premises, without charge,
to exercise any of Bank’s rights or remedies; 
  

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 (g) apply to the Obligations any (i) balances and deposits of Borrowers it holds, or (ii) any
amount held by Bank owing to or for the credit or the account of Borrowers; 
 (h) ship, reclaim, recover, store, finish, maintain, repair,
prepare for sale, advertise for sale, and sell the Collateral. Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrowers’ labels, patents, copyrights, mask works, rights of use of any name,
trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with
Bank’s exercise of its rights under this Section, Borrowers’ rights under all licenses and all franchise agreements inure to Bank’s benefit; 
 (i) place a “hold” on any account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar
agreements providing control of any Collateral; 
 (j) demand and receive possession of Borrower’s Books; and 
 (k) exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided under the Code
(including disposal of the Collateral pursuant to the terms thereof). 
 9.2 Power of Attorney. Each Borrower hereby irrevocably
appoints Bank as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, but in no event once Borrower has cured such Event of Default, to: (a) endorse such Borrower’s name on any
checks or other forms of payment or security; (b) sign such Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with
Account Debtors, for amounts and on terms Bank determines reasonable; (d) make, settle, and adjust all claims under such Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and
adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Bank or a third party as the Code permits. Each Borrower
hereby appoints Bank as its lawful attorney-in-fact to sign such Borrower’s name on any documents necessary to perfect or continue the perfection of any security interest regardless of whether an Event of Default has occurred until all
Obligations have been satisfied in full and Bank is under no further obligation to make Credit Extensions hereunder. Bank’s foregoing appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled with an
interest, are irrevocable until all Obligations have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates. 
 9.3 Accounts Verification; Collection. Whether or not an Event of Default has occurred and is continuing, Bank may notify any Person owing a Borrower money of Bank’s security interest in such funds and
verify the amount of such account. After the occurrence of an Event of Default, any amounts received by Borrowers shall be held in trust by Borrowers for Bank, and, if requested by Bank, Borrowers shall immediately deliver such receipts to Bank in
the form received from the Account Debtor, with proper endorsements for deposit. 
 9.4 Protective Payments. If any Borrower fails to
obtain the insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other amount which Borrowers are obligated to pay under this Agreement or any other Loan Document, Bank may obtain such insurance or make
such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest applicable rate, and secured by the Collateral. Bank will make reasonable efforts to provide Borrowers with notice
of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default. 
 9.5 Application of Payments and Proceeds. Unless an Event of Default has occurred and is continuing, Bank shall apply any funds in its possession,
whether from Borrowers account balances, payments, or proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, first, to Bank Expenses, including without limitation, the reasonable costs, expenses,
liabilities, obligations and attorneys’ fees incurred by Bank in the exercise of its rights under this Agreement; second, to the interest due upon any of the Obligations; and third, to the principal of the Obligations and any applicable fees
and other charges, in such order as Bank shall determine in its sole discretion. Any surplus shall be paid to Borrowers or other Persons legally entitled 

  

 -13- 

 
thereto; Borrowers shall remain liable to Bank for any deficiency. If an Event of Default has occurred and is continuing, Bank may apply any funds in its
possession, whether from Borrowers’ account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations in such order as Bank shall determine in its
sole discretion. Any surplus shall be paid to Borrowers or other Persons legally entitled thereto; Borrowers shall remain liable to Bank for any deficiency. If Bank, in its good faith business judgment, directly or indirectly enters into a deferred
payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the
Obligations until the actual receipt by Bank of cash therefor. 
 9.6 Bank’s Liability for Collateral. So long as Bank complies
with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the
Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrowers bear all risk of loss, damage or destruction of the Collateral. 
 9.7 No Waiver; Remedies Cumulative. Bank’s failure, at any time or times, to require strict performance by Borrowers of any provision of this
Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Bank and then is only
effective for the specific instance and purpose for which it is given. Bank’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity.
Bank’s exercise of one right or remedy is not an election, and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence. 
 9.8 Demand Waiver. Each Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment
at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrowers are liable. 
 10 NOTICES 
 All notices,
consents, requests, approvals, demands, or other communication (collectively, “Communication”) by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or
delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when
sent by electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be
addressed to the party to be notified and sent to the address, facsimile number, or email address indicated below. Bank or any Borrower may change its address or facsimile number by giving the other party written notice thereof in accordance with
the terms of this Section 10. 
  

			
	If to Borrowers:	 	c/o Sunrise Telecom Incorporated
		 	 302 Enzo Drive
 San Jose, CA
95138

		 	Attn: Director, Tax & Treasury
		 	Fax: (408) 360-1215
		 	Email: osadri@sunrisetelecom.com
		
	If to Bank:	 	Silicon Valley Bank
		 	2400 Hanover Street
		 	Palo Alto, CA 94304
		 	Attn:Tom Smith,
		 	Fax: (650) 320-0016
		 	Email: tsmith@svb.com

  

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 11 CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER 
 California law governs the Loan Documents without regard to principles of conflicts of law. Borrowers and Bank each submit to the exclusive jurisdiction
of the State and Federal courts in Santa Clara County, California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on
the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank. Each Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court,
and each Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such
court. Each Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail
addressed to Borrowers at the address set forth in Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrowers’ actual receipt thereof or three (3) days after deposit in the
U.S. mails, proper postage prepaid. 
 BORROWERS AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED
UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS
WAIVER WITH ITS COUNSEL. WITHOUT INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that
any and all disputes or controversies of any nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County,
California Superior Court) appointed in accordance with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting
without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure
§§ 638 through 645.1, inclusive. The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and
appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has
not been appointed at that point pursuant to the judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief. The proceeding before the private judge shall be conducted in the same
manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a court under the rules of discovery
applicable to judicial proceedings. The private judge shall oversee discovery and may enforce all discovery rules and order applicable to judicial proceedings in the same manner as a trial court judge. The parties agree that the selected or
appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to the California Code of Civil Procedure § 644(a). Nothing in
this paragraph shall limit the right of any party at any time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The private judge shall also determine all issues relating to the applicability,
interpretation, and enforceability of this paragraph. 
 12 GENERAL PROVISIONS 
 12.1 Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrowers may not
assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in Bank’s discretion). Bank has the right, without the consent of or notice to Borrowers, to sell, transfer,
negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents. 
 12.2 Indemnification. Each Borrower agrees, jointly and severally, to indemnify, defend and hold Bank and its directors, officers, employees,
agents, attorneys, or any other Person affiliated with or representing Bank harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) asserted by any other party in connection with the
transactions contemplated by the Loan Documents; and (b) all losses or Bank Expenses incurred, or paid by Bank from, following, or arising from transactions between Bank and Borrowers (including reasonable attorneys’ fees and expenses),
except for Claims and/or losses directly caused by Bank’s gross negligence or willful misconduct. 
  

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 12.3 Time of Essence. Time is of the essence for the performance of all Obligations in this
Agreement. 
 12.4 Severability of Provisions. Each provision of this Agreement is severable from every other provision in determining
the enforceability of any provision. 
 12.5 Amendments in Writing; Integration. All amendments to this Agreement must be in writing
signed by both Bank and Borrowers. This Agreement and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and
negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 
 12.6 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, are an original, and all taken
together, constitute one Agreement. 
 12.7 Survival. All covenants, representations and warranties made in this Agreement continue in
full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been
satisfied. The obligation of Borrowers in Section 12.2 to indemnify Bank shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 
 12.8 Confidentiality. In handling any confidential information, Bank shall exercise the same degree of care that it exercises for its own
proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates; (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Bank shall use
commercially reasonable efforts to obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order; (d) to Bank’s regulators or as
otherwise required in connection with Bank’s examination or audit; and (e) as Bank considers appropriate in exercising remedies under this Agreement. Confidential information does not include information that either: (i) is in the
public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank; or (ii) is disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from
disclosing the information. 
 12.9 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrowers and Bank
arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which it may be entitled. 

13 DEFINITIONS 
 13.1
Definitions. As used in this Agreement, the following terms have the following meanings: 
 “Account” is any
“account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrowers. 
 “Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be
made. 
 “Advance” or “Advances” means an advance (or advances) under the Revolving Line.

 “Affiliate” of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls
or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members.

 “Agreement” is defined in the preamble hereof. 
  

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 “Availability Amount” is (a) the lesser of (i) the Revolving Line or
(ii) the Borrowing Base minus (b) the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit Reserves, minus (c) the FX Reserve, and minus
(d) the outstanding principal balance of any Advances (including any amounts used for Cash Management Services). 
 “Bank” is defined in the preamble hereof. 
 “Bank Expenses” are all audit fees and expenses,
costs, and expenses (including reasonable attorneys’ fees and expenses) for preparing, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or
Insolvency Proceedings) or otherwise incurred with respect to Borrowers. 
 “Bankruptcy-Related Defaults” is defined in
Section 9.1. 
 “Borrower” and “Borrowers” are defined in the preamble hereof 
 “Borrower’s Books” are all of any Borrower’s books and records including ledgers, federal and state tax returns, records
regarding such Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 
 “Borrowing Base” is Five Million Dollars ($5,000,000) plus eighty percent (80%) of Eligible Accounts, as determined by Bank from
Borrowers’ most recent Borrowing Base Certificate; provided, however, that Bank may decrease the foregoing percentage in its good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, may
adversely affect Collateral. 
 “Borrowing Base Certificate” is that certain certificate in the form attached hereto as
Exhibit C. 
 “Borrowing Resolutions” are, with respect to any Person, those resolutions adopted by such
Person’s Board of Directors and delivered by such Person to Bank approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate executed by its secretary on behalf of such
Person certifying that (a) such Person has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) that attached as Exhibit A to such certificate is a true, correct, and
complete copy of the resolutions then in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s) authorized to
execute the Loan Documents on behalf of such Person, together with a sample of the true signature(s) of such Person(s), and (d) that Bank may conclusively rely on such certificate unless and until such Person shall have delivered to Bank a
further certificate canceling or amending such prior certificate. 
 “Business Day” is any day that is not a
Saturday, Sunday or a day on which Bank is closed. 
 “Cash Equivalents” means (a) marketable direct obligations issued
or unconditionally guaranteed by the United States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its
creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue; and
(d) money market funds at least ninety-five percent (95%) of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through (c) of this definition. 
 “Cash Management Services” is defined in Section 2.1.4. 
 “Cash Management Services Sublimit” is defined in Section 2.1.4. 
 “Change in
Control” means any event, transaction, or occurrence as a result of which (a) any “person” (as such term is defined in Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934, as an amended (the “Exchange
Act”)), other than a trustee or other fiduciary holding securities under an employee benefit plan of Borrower, is or becomes a beneficial owner (within the meaning Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of
securities of any Borrower, representing fifty percent (50%) or more of the combined voting power of such Borrower’s then outstanding securities; or (b) during any period of twelve consecutive calendar months, individuals who at the
beginning of such period constituted the Board of Directors of any Borrower 

  

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(together with any new directors whose election by the Board of Directors of such Borrower was approved by a vote of at least two-thirds of the directors
then still in office who either were directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason other than death or disability to constitute a majority of the directors
then in office. 
 “Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in
the State of California; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained
in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is
governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes
on the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 
 “Collateral” is any and all properties, rights and assets of Borrowers described on Exhibit A. 
 “Collateral Account” is any Deposit Account, Securities Account, or Commodity Account. 
 “Commodity Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter be made. 
 “Communication” is defined in Section 10. 
 “Compliance Certificate”
is that certain certificate in the form attached hereto as Exhibit D. 
 “Contingent Obligation” is, for any Person,
any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made,
discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate,
currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent
Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement. 
 “Control Agreement” is any control agreement entered into among the depository institution at which any Borrower maintains a Deposit
Account or the securities intermediary or commodity intermediary at which any Borrower maintains a Securities Account or a Commodity account, such Borrower, and Bank pursuant to which Bank obtains control (within the meaning of the Code) over such
Deposit Account, Securities Account, or Commodity Account. 
 “Credit Extension” is any Advance, Letter of Credit, FX
Forward Contract, amount utilized for Cash Management Services, or any other extension of credit by Bank for Borrowers’ benefit. 
 “Current Assets” are amounts that under GAAP should be included on that date as current assets on Parent’s consolidated balance sheet. 
 “Current Liabilities” are all obligations and liabilities of Borrowers to Bank, plus, without duplication, the aggregate amount of Parent’s consolidated Total Liabilities that mature within one
(1) year. 
 “Default” means any event which with notice or passage of time or both, would constitute an Event of
Default. 
 “Default Rate” is defined in Section 2.3(b). 
  

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 “Deferred Revenue” is all amounts received or invoiced in advance of performance under
contracts and not yet recognized as revenue. 
 “Deposit Account” is any “deposit account” as defined in the Code
with such additions to such term as may hereafter be made. 
 “Designated Deposit Account” is Borrowers’ deposit
account, account number                 , maintained with Bank. 
 “Dollars,” “dollars” and “$” each mean lawful money of the United States. 
 “Domestic Subsidiary” means a Subsidiary organized under the laws of the United States or any state or territory thereof or the District of Columbia. 
 “Effective Date” is the date Bank executes this Agreement and as indicated on the signature page hereof. 
 “Eligible Accounts” are Accounts which arise in the ordinary course of any Borrower’s business that meet all Borrowers’
representations and warranties in Section 5.3. Bank reserves the right at any time and from time to time after the Effective Date, to adjust any of the criteria set forth below and to establish new criteria in its good faith business judgment.
Unless Bank agrees otherwise in writing, Eligible Accounts shall not include: 
 (a) Accounts that the Account Debtor has not paid within
ninety (90) days of invoice date; 
 (b) Accounts owing from an Account Debtor, fifty percent (50%) or more of whose Accounts have
not been paid within ninety (90) days of invoice date; 
 (c) Credit balances over ninety (90) days from invoice date; 

(d) Accounts owing from an Account Debtor, including Affiliates, whose total obligations to Borrower exceed twenty-five (25%) of all Accounts,
for the amounts that exceed that percentage, unless Bank approves in writing; 
 (e) Accounts owing from an Account Debtor which does not
have its principal place of business in the United States except for Eligible Foreign Accounts; 
 (f) Accounts owing from an Account Debtor
which is a federal, state or local government entity or any department, agency, or instrumentality thereof except for Accounts of the United States if the Borrower has assigned its payment rights to Bank and the assignment has been acknowledged
under the Federal Assignment of Claims Act of 1940, as amended; 
 (g) Accounts owing from an Account Debtor to the extent that the Borrower
is indebted or obligated in any manner to the Account Debtor (as creditor, lessor, supplier or otherwise—sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts), with the exception of customary
credits, adjustments and/or discounts given to an Account Debtor by such Borrower in the ordinary course of its business; 
 (h) Accounts for
demonstration or promotional equipment, or in which goods are consigned, or sold on a “sale guaranteed”, “sale or return”, “sale on approval”, “bill and hold”, or other terms if Account Debtor’s payment
may be conditional; 
 (i) Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee, or agent;

 (j) Accounts in which the Account Debtor disputes liability or makes any claim (but only up to the disputed or claimed amount), or if the
Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business; 
 (k) Accounts owing from an Account
Debtor with respect to which a Borrower has received Deferred Revenue (but only to the extent of such Deferred Revenue); 
  

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 (l) Accounts for which Bank in its good faith business judgment determines collection to be doubtful; and

 (m) other Accounts Bank deems ineligible in the exercise of its good faith business judgment. 
 “Eligible Foreign Accounts” are Accounts for which the Account Debtor does not have its principal place of business in the United States
but are otherwise Eligible Accounts that are (a) covered by credit insurance satisfactory to Bank, less any deductible; (b) supported by letter(s) of credit acceptable to Bank; or (c) that Bank approves in writing. 
 “Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes
without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 
 “ERISA” is the Employment Retirement Income Security Act of 1974, and its regulations. 
 “Event of
Default” is defined in Section 8. 
 “Foreign Currency” means lawful money of a country other than the United
States. 
 “Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary. 
 “Funding Date” is any date on which a Credit Extension is made to or on account of Borrowers which shall be a Business Day. 

“FX Business Day” is any day when (a) Bank’s Foreign Exchange Department is conducting its normal business and (b) the
Foreign Currency being purchased or sold by Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency. 
 “FX Forward Contract” is defined in Section 2.1.3. 
 “FX Reserve” is defined in Section
2.1.3. 
 “GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of
the accounting profession, which are applicable to the circumstances as of the date of determination. 
 “General
Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all copyright rights, copyright
applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, trademarks, service marks and, to the extent permitted under applicable law, any applications
therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone
numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise),
insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind. 
 “Guarantor” is any present or future guarantor of the Obligations. 
 “Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by
notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent Obligations. 
  

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 “Insolvency Proceeding” is any proceeding by or against any Person under the United
States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.

 “Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such
term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out
of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
 “Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person. 
 “Letter of Credit” means a standby letter of credit issued by Bank or another institution based upon an application, guarantee,
indemnity or similar agreement on the part of Bank as set forth in Section 2.1.2. 
 “Letter of Credit Application” is
defined in Section 2.1.2(a). 
 “Letter of Credit Reserve” has the meaning set forth in Section 2.1.2(d). 

“Lien” is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 
 “Loan Documents” are, collectively, this Agreement, the Perfection Certificate, any note, or notes or guaranties executed by any
Borrower or any Guarantor, and any other present or future agreement between any Borrower, any Guarantor and/or for the benefit of Bank in connection with this Agreement, all as amended, restated, or otherwise modified. 
 “Material Adverse Change” is (a) a material impairment in the perfection or priority of Bank’s Lien in the Collateral or in
the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrowers; or (c) a material impairment of the prospect of repayment of any portion of the Obligations.

 “Material Indebtedness” is any Indebtedness the principal amount of which is equal to or greater than $500,000.

 “Net Income” means, as calculated on a consolidated basis for Parent and its Subsidiaries for any period as at any date
of determination, the net profit (or loss), after provision for taxes, of Parent and its Subsidiaries for such period taken as a single accounting period. 
 “Obligations” are Borrower’s obligation to pay when due any debts, principal, interest, Bank Expenses and other amounts Borrowers owe Bank now or later, whether under this Agreement, the Loan
Documents, or otherwise, including, without limitation, all obligations relating to letters of credit, cash management services, and foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin and debts,
liabilities, or obligations of Borrowers assigned to Bank, and the performance of Borrowers’ duties under the Loan Documents. 
 “Operating Documents” are, for any Person, such Person’s formation documents, as certified with the Secretary of State of such Person’s state of formation on a date that is no earlier than 30 days prior to the
Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a
partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto. 
 “Parent” is defined in the preamble to this Agreement. 
 “Payment/Advance Form” is that certain
form attached hereto as Exhibit B. 
 “Perfection Certificate” is defined in Section 5.1. 
  

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 “Permitted Distributions” means: 
 (a) purchases of capital stock from former employees, consultants and directors pursuant to repurchase agreements or other similar agreements in an
aggregate amount not to exceed $500,000 in any fiscal year provided that at the time of such purchase no Default or Event of Default has occurred and is continuing; 
 (b) distributions or dividends consisting solely of Parent's capital stock; 
 (c) purchases for value of any
rights distributed in connection with any stockholder rights plan; 
 (d) purchases of capital stock or options to acquire such capital stock
with the proceeds received from a substantially concurrent issuance of capital stock or convertible securities; 
 (e) purchases of capital
stock pledged as collateral for loans to employees; 
 (f) purchases of capital stock in connection with the exercise of stock options or
stock appreciation rights by way of cashless exercise or in connection with the satisfaction of withholding tax obligations; 
 (g) purchases
of fractional shares of capital stock arising out of stock dividends, splits or combinations or business combinations; and 
 (h) the
settlement or performance of such Person’s obligations under any equity derivative transaction, option contract or similar transaction or combination of transactions. 
 “Permitted Indebtedness” is: 
 (a) Borrowers’ Indebtedness to Bank under this Agreement or any other Loan Document; 
 (b)(i) any Indebtedness that does not
exceed $250,000 in principal amount existing on the Effective Date, and (ii) any Indebtedness in excess of $250,000 in principal amount existing on the Effective Date and shown on the Perfection Certificate; 
 (c) Subordinated Debt; 
 (d) unsecured
Indebtedness to trade creditors and with respect to surety bonds and similar obligations incurred in the ordinary course of business; 
 (e)
guaranties of Permitted Indebtedness, guaranties of real property leases of Subsidiaries in existing as of the Effective Date, and other such guaranties of real property leases of Subsidiaries arising after the Effective Date not in excess of
$1,000,000 in the aggregate at any time; 
 (f) Indebtedness incurred as a result of endorsing negotiable instruments received in the
ordinary course of business; 
 (g) Indebtedness consisting of interest rate, currency, or commodity swap agreements, interest rate cap or
collar agreements or arrangements designated to protect a Person against fluctuations in interest rates, currency exchange rates, or commodity prices; 
 (h) Indebtedness between Borrower and any of its Subsidiaries or among any of Borrower’s Subsidiaries; 
 (i) Indebtedness with respect to documentary letters of credit; 
 (j) capitalized leases and purchase money Indebtedness not to
exceed $500,000 in the aggregate in any fiscal year secured by Permitted Liens; 
 (k) Indebtedness of entities acquired in any permitted
merger or acquisition transaction; 
  

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 (l) refinanced Permitted Indebtedness, provided that the amount of such Indebtedness is not increased
except by an amount equal to a reasonable premium or other reasonable amount paid in connection with such refinancing and by an amount equal to any existing, but unutilized, commitment thereunder; and 
 (m) other Indebtedness, if, on the date of incurring any Indebtedness pursuant to this clause (m), the outstanding aggregate amount of all Indebtedness
incurred pursuant to this clause (m) does not exceed $500,000 in the aggregate at any time. 
 “Permitted Investments”
are: 
 (a) Investments existing on the Effective Date; 
 (b) (i) marketable direct obligations issued or unconditionally guaranteed by the United States or its agencies or any State maturing within one (1) year from its acquisition, (ii) commercial paper maturing
no more than 2 years after its creation and having the highest rating from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc., and (iii) Bank’s certificates of deposit maturing no more than two
(2) years after issue; 
 (c) Investments approved by the Parent’s Board of Directors or otherwise pursuant to a Board-approved
investment policy; 
 (d) Investments in or to Borrowers; 
 (e) Investments consisting of Collateral Accounts in the name of any Borrower or any Subsidiary so long as Bank has a first priority, perfected security interest in such Collateral Accounts; 
 (f) Investments consisting of extensions of credit to any Borrower’s or its Subsidiaries’ customers in the nature of accounts receivable,
prepaid royalties or notes receivable arising from the sale or lease of goods, provision of services or licensing activities of Borrowers; 
 (g) Investments received in satisfaction or partial satisfaction of obligations owed by financially troubled obligors; 
 (h)
Investments acquired in exchange for any other Investments in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization; 
 (i) Investments acquired as a result of a foreclosure with respect to any secured Investment; 
 (j)
Investments consisting of interest rate, currency, or commodity swap agreements, interest rate cap or collar agreements or arrangements designated to protect a Person against fluctuations in interest rates, currency exchange rates, or commodity
prices; 
 (k) Investments consisting of loans and advances to employees in an aggregate amount not to exceed $500,000; and 
 (l) other Investments, if, on the date of incurring any Investments pursuant to this clause (l), the outstanding aggregate amount of all Investments
incurred pursuant to this clause (l) does not exceed $500,000 in the aggregate in any fiscal year. 
 “Permitted Liens”
are: 
 (a) (i) Liens securing Permitted Indebtedness described under clause (b) of the definition of “Permitted Indebtedness”
or (ii) Liens arising under this Agreement or other Loan Documents; 
 (b) Liens for taxes, fees, assessments or other government
charges or levies, either not delinquent or being contested in good faith and for which Borrowers maintain adequate reserves on their Books, if they have no priority over any of Bank’s Liens; 
  

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 (c) Liens (including with respect to capital leases) (i) on property (including accessions,
additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof) acquired or held by Borrowers or their Subsidiaries incurred for financing such property (including accessions, additions, parts, replacements,
fixtures, improvements and attachments thereto, and the proceeds thereof), or (ii) existing on property (and accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof) when acquired, if
the Lien is confined to such property (including accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof); 
 (d) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property
encumbered by the existing Lien and the principal amount of the indebtedness it secures may not increase; 
 (e) leases or subleases of real
property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or sublicenses of property (other than real property or intellectual property) granted in the ordinary course of Borrowers’ business, if
the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest; 
 (f) non-exclusive license of
intellectual property granted to third parties in the ordinary course of business, and licenses of intellectual property that could not result in a legal transfer of title of the licensed property that may be exclusive in respects other than
territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States; 
 (g) leases or
subleases granted in the ordinary course of any Borrower’s business, including in connection with such Borrower’s leased premises or leased property; 
 (h) Liens in favor of custom and revenue authorities arising as a matter of law to secure the payment of custom duties in connection with the importation of goods; 
 (i) Liens on insurance proceeds securing the payment of financed insurance premiums; 
 (j) customary Liens granted in favor of a trustee to secure fees and other amounts owing to such trustee under an indenture or other similar agreement;

 (k) Liens on assets acquired in mergers and acquisitions not prohibited by Section 7 of this Agreement; 
 (l) Liens consisting of pledges of cash, cash equivalents or government securities to secure swap or foreign exchange contracts or letters of credit;

 (m) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Sections 8.4 or 8.7;

 (n) Liens in favor of other financial institutions arising in connection with any Borrower’s deposit or securities accounts held at
such institutions; 
 (o) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
arising in the ordinary course of business which are not overdue for a period of more than 30 days or which are being contested in good faith and by appropriate proceeding if adequate reserves with respect thereto are maintained on the books of the
applicable Person; 
 (p) pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment
insurance and compliance with other social security requirements applicable to Borrowers; 
 (q) Liens consisting of pledges or deposits of
cash, cash equivalents or government securities to secure real property leases in existence as of the Effective Date, and additional pledges or deposits not in excess of $500,000 to secure real property leases arising after the Effective Date; and

  

 -24- 

 (r) Liens not otherwise permitted, provided that (i) the amount of all such Liens is not in excess
of $500,000 (with any such Lien valued as the amount of the obligation secured by such Lien) and (ii) such Liens are subordinate in priority to Bank’s Lien hereunder. 
 “Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated
organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 
 “Prime Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s lowest rate. 
 “Quick Assets” is, on any date, Parent’s consolidated, unrestricted cash, Cash Equivalents, net billed accounts receivable and investments. 
 “Registered Organization” is any “registered organization” as defined in the Code with such additions to such term as may hereafter be made 
 “Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial Officer and Director of Tax & Treasury
of each Borrower. 
 “Revolving Line” is an Advance or Advances in an aggregate amount of up to Ten Million Dollars
($10,000,000) outstanding at any time. 
 “Revolving Line Maturity Date” is August 13, 2008. 
 “Securities Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be
made. 
 “Settlement Date” is defined in Section 2.1.3. 
 “Subordinated Debt” is (a) Indebtedness incurred by Borrowers subordinated to Borrowers’ Indebtedness owed to Bank and which
is reflected in a written agreement in a manner and form reasonably acceptable to Bank and approved by Bank in writing, and (b) to the extent the terms of subordination do not change adversely to Bank, refinancings, refundings, renewals,
amendments or extensions of the foregoing. 
 “Subsidiary” means, with respect to any Person, any Person of which more than
50% of the voting stock or other equity interests is owned or controlled, directly or indirectly, by such Person or one or more Affiliates of such Person. 
 “Tangible Net Worth” is, on any date, the consolidated total assets of Parent and its Subsidiaries minus (a) any amounts attributable to (i) goodwill, (ii) intangible items
including unamortized debt discount and expense, patents, trade and service marks and names, copyrights and research and development expenses except prepaid expenses, (iii) notes, accounts receivable and other obligations owing to Borrowers and
their Subsidiaries from officers or other Affiliates, and (iv) reserves not already deducted from assets, minus (b) Total Liabilities 
 “Total Liabilities” is on any day, obligations that should, under GAAP, be classified as liabilities on Parent’s consolidated balance sheet, including all Indebtedness, and current portion of
Subordinated Debt permitted by Bank to be paid by Borrowers, but excluding all other Subordinated Debt. 
 “Transfer” is
defined in Section 7.1. 
 “Unused Revolving Line Facility Fee” is defined in Section 2.4(c). 
 [Signature page follows.] 
  

 -25- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
Effective Date. 
  

			
	BORROWERS:
	
	SUNRISE TELECOM INCORPORATED
		
	By:	 	 /S/ RICHARD D. KENT

	Name:	 	Richard D. Kent
	Title:	 	Chief Financial Officer
	
	SUNRISE TELECOM BROADBAND INC.
		
	By:	 	 /S/ RICHARD D. KENT

	Name:	 	Richard D. Kent
	Title:	 	Director
	
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 /S/ TOM SMITH

	Name:	 	Tom Smith
	Title:	 	Senior Relationship Manager
	Effective Date: August 13, 2007

 [Signature page to Loan and Security Agreement] 

 EXHIBIT A 
 The Collateral consists of all of each Borrower’s right, title and interest in and to the following personal property: 
 All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as provided
below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by
a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and 
 all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and
replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 
 Notwithstanding the foregoing, the Collateral does
not include any of the following, whether now owned or hereafter acquired (a) leasehold interests under real property leases, (b) more than 65% of the presently existing and hereafter arising issued and outstanding shares of capital stock
owned by any Borrower of any Foreign Subsidiary which shares entitle the holder thereof to vote for directors or any other matter, or (c) any copyright rights, copyright applications, copyright registrations and like protections in each work of
authorship and derivative work, whether published or unpublished, any patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same,
trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, and the goodwill of the business of Borrower connected with and symbolized thereby, know-how, operating manuals, trade
secret rights, rights to unpatented inventions, and any claims for damage by way of any past, present, or future infringement of any of the foregoing; provided, however, the Collateral shall include all Accounts, license and royalty fees and other
revenues, proceeds, or income arising out of or relating to any of the foregoing. 
 Pursuant to the terms of a certain negative pledge
arrangement with Bank, each Borrower has agreed not to encumber any of its copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any
patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, service marks and, to the extent permitted under applicable law,
any applications therefor, whether registered or not, and the goodwill of the business of Borrowers connected with and symbolized thereby, know-how, operating manuals, trade secret rights, rights to unpatented inventions, and any claims for damage
by way of any past, present, or future infringement of any of the foregoing, without Bank’s prior written consent. 

 EXHIBIT B 
 Loan Payment/Advance Request Form 
 DEADLINE FOR
SAME DAY PROCESSING IS NOON P.S.T. 
  

											
	Fax To:	  		  		  		 	Date:	 	  

 LOAN PAYMENT: 
 Sunrise Telecom Incorporated/Sunrise Telecom Broadband Inc. 
  

									
	From Account #	 	  
	 		 	To Account #	 	  

		 	(Deposit Account #)	 		 		 	(Loan Account #)

											
	Principal $	 	  
	 		 	and/or Interest $	 	  

  

									
	Authorized Signature:	 	  
	 		 	Phone Number:	 	  

									
	Print Name/Title:	 	  
	 		 		 	

 LOAN ADVANCE: 
 Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire. 
  

									
	From Account #	 	  
	 		 	To Account #	 	  

		 	(Loan Account #)	 		 		 	(Deposit Account #)

  

									
	Amount of Advance $	 	  
	 		 	

 All Borrower’s representations and warranties in the Loan and Security Agreement are true, correct and
complete in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in
the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date: 
  

									
	Authorized Signature:	 	  
	 		 	Phone Number:	 	  

									
	Print Name/Title:	 	  
	 		 		 	

 OUTGOING WIRE REQUEST: 
 Complete only if all or a portion of funds from the loan advance above is to be wired. 
 Deadline for same day processing is noon, P.S.T. 
  

									
	Beneficiary Name:	 	  
	 		 	Amount of Wire: $	 	  

									
	Beneficiary Bank:	 	  
	 		 	Account Number:	 	  

									
	City and State:	 	  
	 		 	

  

									
	Beneficiary Bank Transit (ABA) #:	 	  
	 		 	Beneficiary Bank Code (Swift, Sort, Chip, etc.):	 	  

		 		 		 	(For International Wire Only)	 	

  

													
	Intermediary Bank:	 	  
	 		 	Transit (ABA) #:	 	  

									
	For Further Credit to:	 	  

  

									
	Special Instruction:	 	  

 By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in
accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me (us). 
  

											
	Authorized Signature:	 	  
	 		 		 	2nd Signature (if required):	 	  

									
	Print Name/Title:	 	  
	 		 	Print Name/Title:	 	  

									
	Telephone #:	 	  
	 		 	Telephone #:	 	  

  

 1 

 EXHIBIT C 
 BORROWING BASE CERTIFICATE 
 Borrowers: Sunrise Telecom Incorporated/Sunrise Telecom Broadband Inc. 
 Lender: Silicon Valley Bank 
 Commitment
Amount:    $10,000,000 
  

					
	ACCOUNTS RECEIVABLE	  	
	1.	  	Accounts Receivable Book Value as of
                        	  	$                    
	2.	  	Additions (please explain on reverse)	  	$                    
	3.	  	TOTAL ACCOUNTS RECEIVABLE	  	$                    
		
	ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)	  	
	4.	  	Amounts over 90 days due	  	$                    
	5.	  	Balance of 50% over 90 day accounts	  	$                    
	6.	  	Credit balances over 90 days	  	$                    
	7.	  	Concentration Limits	  	$                    
	8.	  	Foreign Accounts (other than Eligible Foreign Accounts)	  	$                    
	9.	  	Governmental Accounts	  	$                    
	10.	  	Contra Accounts	  	$                    
	11.	  	Promotion or Demo Accounts	  	$                    
	12.	  	Intercompany/Employee Accounts	  	$                    
	13.	  	Disputed Accounts	  	$                    
	14.	  	Deferred Revenue	  	$                    
	15.	  	Other (please explain on reverse)	  	$                    
	16.	  	TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS	  	$                    
	17.	  	Eligible Accounts (#3 minus #16)	  	$                    
	18.	  	ELIGIBLE AMOUNT OF ACCOUNTS (     % of #17)	  	$                    
		
	INVENTORY	  	
	19.	  	N/A	  	$                    
	20.	  	N/A	  	$                    
		
	BALANCES	  	
	21.	  	Maximum Loan Amount	  	$                    
	22.	  	Total Funds Available [Lesser of #21 or #18]	  	$                    
	23.	  	Present balance owing on Line of Credit	  	$                    
	24.	  	Outstanding under Sublimits	  	$                    
	25.	  	RESERVE POSITION (#22 minus #23 and #24)	  	$                    

 The undersigned represents and warrants that this is true, complete and correct, and that the information in
this Borrowing Base Certificate complies with the representations and warranties in the Loan and Security Agreement between the undersigned and Silicon Valley Bank. 
  

									
		 		 	BANK USE ONLY
				
	COMMENTS:	 		 	Received by:	 	  

		 		 		 		 	AUTHORIZED SIGNER
					
		 		 		 	Date:	 	  

					
	By:	 	  
	 		 	Verified:	 	  

		 	Authorized Signer	 		 		 	AUTHORIZED SIGNER
					
	Date:	 	  
	 		 	Date:	 	  

					
		 		 		 	Compliance Status:	 	Yes    No
		 		 		 		 	

  

 1 

 EXHIBIT D 
 COMPLIANCE CERTIFICATE 
  

															
	TO:	  	SILICON VALLEY BANK	 		 		 		 		 	Date:	 	  

	FROM:	  	  
	 		 		 		 		 		 	

 The undersigned authorized officer of
                                        
(“Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (1) Borrower is in complete compliance for the period ending
                                        
with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided,
however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties
expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely
paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims
made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank. Attached are the required documents supporting the certification. The
undersigned certifies that these are prepared in accordance with generally GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be
requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise
defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under “Complies”
column. 
  

					
	 Reporting Covenant
	  	 Required
	  	Complies
	Quarterly financial statements with Compliance Certificate	  	Quarterly within 45 days	  	Yes    No
			
	Annual financial projections	  	FYE within 45 days	  	Yes    No
			
	10-Q, 10-K and 8-K (see 6.2(a))	  	Within 5 days after filing with SEC, but not later than 50 days after each quarter and 90 days after each FYE	  	Yes    No
			
	Borrowing Base Certificate, A/R & A/P Agings and Deferred Revenue Report	  	Monthly within 45 days when Credit Extensions in excess of $500,000 are outstanding; A/R and A/P agings monthly within 45 days otherwise	  	Yes    No
			
	Cash Balance Report	  	Monthly within 45 days	  	Yes    No

  

									
	 Financial Covenant
	  	Required	  	Actual	  	Complies
	 Maintain on a Quarterly Basis:
	  			  			  	
	 Minimum Quick Ratio
	  	 	1.0:1.0	  	 	        :1.0	  	Yes    No
	 Minimum Tangible Net Worth (see calculation)
	  	$	57,000,000	  	$	                    	  	Yes    No

  

 1 

 The following financial covenant analys[is][es] and information set forth in Schedule 1 attached hereto
are true and accurate as of the date of this Certificate. 
 The following are the exceptions with respect to the certification above: (If no
exceptions exist, state “No exceptions to note.”) 
  

  

  

  

									
	Sunrise Telecom Incorporated	 		 	BANK USE ONLY
	Sunrise Telecom Broadband Inc.	 		 	
		 		 	Received by:	 	  

		 		 		 		 	AUTHORIZED SIGNER
					
	By:	 	  
	 		 	Date:	 	  

	Name:	 	  
	 		 		 	
	Title:	 	  
	 		 	Verified:	 	  

		 		 		 		 	AUTHORIZED SIGNER
					
		 		 		 	Date:	 	  

					
		 		 		 	Compliance Status:	 	Yes    No

  

 2 

 Schedule 1 to Compliance Certificate 
 Financial Covenants of Borrower 
 Dated:
                         
  

	I.	Quick Ratio (Section 6.7(a)) 

 Required: 1.00:1.00 
 Actual: 
  

							
				
		 	A.	  	Aggregate value of the unrestricted cash and cash equivalents	  	$                    
				
		 	B.	  	Aggregate value of the net billed accounts receivable	  	$                    
				
		 	C.	  	Aggregate value of the investments	  	$                    
				
		 	D.	  	Quick Assets (the sum of lines A through C)	  	$                    
				
		 	E.	  	Aggregate value of Obligations to Bank	  	$                    
				
		 	F.	  	 Aggregate value of liabilities of Parent and its Subsidiaries (including all Indebtedness)
 that mature within one (1) year and current portion of Subordinated Debt permitted by Bank to be paid by Borrower
	  	$                    
				
		 	G.	  	Current Liabilities (the sum of lines E and F)	  	$                    
				
		 	H.	  	 Aggregate value of all amounts received or invoiced by Borrower in advance
 of performance under contracts and not yet recognized as revenue
	  	$                    
				
		 	I.	  	Quick Ratio (line D divided by line G, less Line H)	  	__________

 Is line I equal to or greater than     :1:00? 
  

			
	             No, not in compliance	  	             Yes, in compliance

 II. 
  

 3 

	VII.	Tangible Net Worth (Section 6.7(b)) 

 Required: $57,000,000 plus 50%
of quarterly Net Income and 50% of proceeds of new equity or debt 
 Actual: 
  

							
		 	A.	  	Aggregate value of total assets of Borrower and its Subsidiaries	  	$                    
				
		 	B.	  	Aggregate value of goodwill of Borrower [and its Subsidiaries]	  	$                    
				
		 	C.	  	Aggregate value of intangible assets of Borrower [and its Subsidiaries]	  	$                    
				
		 	D.	  	Aggregate value of any reserves not already deducted from assets	  	$                    
				
		 	E.	  	Aggregate value of liabilities of Parent and its Subsidiaries (including all Indebtedness) and current portion of Subordinated Debt permitted by Bank to be paid by Borrowers (but no other
Subordinated Debt)	  	$                    
				
		 	F.	  	Tangible Net Worth (line A minus line B minus line C minus line D minus line E)	  	$                    
				
		 	G.	  	50% of quarterly Net Income (cumulative since Effective Date)	  	$                    
				
		 	H.	  	50% of new equity or debt (cumulative since Effective Date)	  	$                    

 Is line F equal to or greater than $57,000,000 plus Line G and plus Line H? 
  

			
	             No, not in compliance	  	             Yes, in compliance

  

 4 

 SCHEDULE 5.4 
 CHRIS STOVAL (DERIVATIVELY ON BEHALF OF SUNRISE TELECOM, INC. V. PAUL A. MARSHALL ET AL. 
 SUNRISE TELECOM INCORPORATED V. VEEX INC. ET AL.

 IN THE MATTER OF BTT COMMUNICATIONS TECHNOLOGY LTD. V. SUNRISE TELECOM INCORPORATED ET AL 
  

 5 

 SCHEDULE 5.5 
 All of Borrower’s consolidated financial statements delivered to Bank prior to the Effective Date are preliminary and unaudited. 
 Borrower is
currently preparing its Quarterly Report of Form 10-Q for the period ended September 30, 2005 as well as its Annual Report on Form 10-K for the fiscal year ended December 31, 2005. The Annual Report will contain a restatement of its
audited consolidated financial statements and related disclosures for the three years ended December 31, 2004 and a restatement of its consolidated statements of operations and consolidated balance sheet data for the five years ended
December 31, 2004. 
  

 6 

 SCHEDULE 5.7 
 Borrower is conducting an on going review of the implementation of its import policies and procedures and its implementation of current import laws and regulations. 
  

 7 

 SCHEDULE 5.8 
  

					
	SUNRISE TELECOM AVANTRON DIVISION CORP.	 		  	Nova Scotia, Canada
			
	SUNRISE TELECOM BROADBAND CORP.	 		  	Nova Scotia, Canada
			
	SUNRISE TELECOM BROADBAND, INC.	 		  	Georgia, U.S.A.
			
	SUNRISE TELECOM CANADA, INC.	 		  	California, U.S.A.
			
	SUNRISE TELECOM (SHEN ZHEN) CO. LTD.	 		  	Republic of China (WFOE)
			
	SUNRISE TELECOM FRANCE SAS	 		  	Evry, France
			
	SUNRISE TELECOM GERMANY GmbH	 		  	Tubingen, Germany
			
	SUNRISE TELECOM ITALY, S.R.L.	 		  	Modena, Italy
			
	SUNRISE TELECOM KK	 		  	Tokyo, Japan
			
	SUNRISE TELECOM KOREA	 		  	Seoul, Korea
			
	SUNRISE TELECOM LATIN AMERICA, S.A. de C.V.	 		  	Mexico City, Mexico
			
	SUNRISE LUCIOL GmbH	 		  	Vaud, Switzerland
			
	SUNRISE TELECOM SPAIN	 		  	Madrid, Spain
			
	SUNRISE TELECOM S.R.L. (fka Sunrise Telecom Pro.Tel Division)	 		  	Modena, Italy
			
	TAIWAN SUNRISE TELECOM COMPANY LIMITED	 		  	Taipei, Taiwan

  

 8

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