Document:

EXECUTION VERSION

 

MDC Partners Inc.

 

11% Senior
Notes due 2016

 

unconditionally
guaranteed as to the

payment
of principal, premium,

if any, and interest by

 

the Guarantors
listed in Exhibit C hereto

_________

 

Exchange and Registration Rights
Agreement

 

December 10, 2012

J.P. Morgan Securities LLC,

As representative of the several
Purchasers

named in Exhibit D hereto

c/o J.P. Morgan Securities LLC 

383 Madison Avenue

New York, New York 10179

 

Ladies and Gentlemen:

 

MDC Partners Inc.,
a corporation continued under the laws of Canada (the “Company”), proposes to issue and sell to the Purchasers
(as defined herein) upon the terms set forth in the Purchase Agreement (as defined herein) $80,000,000 in aggregate principal amount
of its 11% Senior Notes due 2016, which are unconditionally guaranteed by the Guarantors listed in Exhibit C hereto (the “Guarantors”).
These notes constitute a further issuance of, and will be consolidated and form a single series with, the $345,000,000 11% Senior
Notes due 2016 issued by the Company on October 23, 2009, May 14, 2010 and April 19, 2011 (such notes collectively, together with
the guarantee provided by each of the Guarantors in the Indenture, the “Existing Securities”, and, when registered
under a freely transferable CUSIP number under the terms of the Exchange and Registration Rights Agreement dated October 23, 2009,
May 11, 2010 and April 19, 2011, respectively, the “Existing Exchange Securities”). As an inducement to the
Purchasers to enter into the Purchase Agreement and in satisfaction of a condition to the obligations of the Purchasers thereunder,
the Company and the Guarantors agree with the Purchasers for the benefit of holders (as defined herein) from time to time of the
Registrable Securities (as defined herein) as follows:

 

1.   Certain Definitions.
For purposes of this Exchange and Registration Rights Agreement (this “Agreement”), the following terms shall
have the following respective meanings:

 

“Base
Interest” shall mean the interest that would otherwise accrue on the Securities under the terms thereof and the Indenture,
without giving effect to the provisions of this Agreement.

 

The term
“broker-dealer” shall mean any broker or dealer registered with the Commission under the Exchange Act.

 

    	 

    	 

    

 

“Business
Day” shall have the meaning set forth in Rule 13e-4(a)(3) promulgated by the Commission under the Exchange Act,
as the same may be amended or succeeded from time to time.

 

“Closing
Date” shall mean the date on which the Securities are initially issued.

 

“Commission”
shall mean the United States Securities and Exchange Commission, or any other federal agency at the time administering the Exchange
Act or the Securities Act, whichever is the relevant statute for the particular purpose.

 

“DTC”
means The Depository Trust Company.

 

“EDGAR
System” means the EDGAR filing system of the Commission and the rules and regulations pertaining thereto promulgated
by the Commission in Regulation S-T under the Securities Act and the Exchange Act, in each case as the same may be amended or succeeded
from time to time (and without regard to format).

 

“Effective
Time,” in the case of (i) an Exchange Registration, shall mean the time and date as of which the Commission declares
the Exchange Registration Statement effective or as of which the Exchange Registration Statement otherwise becomes effective and
(ii) a Shelf Registration, shall mean the time and date as of which the Commission declares the Shelf Registration Statement
effective or as of which the Shelf Registration Statement otherwise becomes effective.

 

“Electing
Holder” shall mean any holder of Registrable Securities that has returned a completed and signed Notice and Questionnaire
to the Company in accordance with Section 3(d)(ii) or Section 3(d)(iii) and the instructions set forth in the Notice
and Questionnaire.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission
thereunder, as the same may be amended or succeeded from time to time.

 

“Exchange
Offer” shall have the meaning assigned thereto in Section 2(a).

 

“Exchange
Registration” shall have the meaning assigned thereto in Section 3(c).

 

“Exchange
Registration Statement” shall have the meaning assigned thereto in Section 2(a).

 

“Exchange
Securities” shall have the meaning assigned thereto in Section 2(a).

 

“Freely
Transferable” means, with respect to a Security, a Security that at any time of determination (i) is freely transferable
without volume restrictions by a holder that is not an “affiliate” (as defined in Rule 144 under the 1933 Act (“Rule
144”)) of the Company where no conditions of Rule 144 are then applicable (other than the holding period requirement in paragraph
(d)(1)(ii) of Rule 144 so long as such holding period requirement is satisfied at such time of determination) in accordance with
Rule 144 , or otherwise, (ii) whose restrictive legend relating to the 1933 Act has been removed and (iii) does not bear a restricted
CUSIP number.

 

“Guarantor”
shall have the meaning assigned thereto in the Indenture.

 

The term
“holder” shall mean each of the Purchasers and other persons who acquire Securities from time to time (including
any successors or assigns), in each case for so long as such person owns any Securities.

 

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“Indenture”
shall mean collectively the trust indenture, dated as of October 23, 2009, among the Company, the Guarantors and The Bank
of New York Mellon, as trustee, as supplemented by the First Supplemental Indenture dated as of May 14, 2010, the Second Supplemental
Indenture dated as of October 23, 2010, the Third Supplemental Indenture dated as of April 19, 2011, the Fourth Supplemental Indenture
dated as of May 2, 2011, the Fifth Supplemental Indenture dated as of September 19, 2011, the Sixth Supplemental Indenture dated
as of March 23, 2012 and the Seventh Supplemental Indenture dated as of December 10, 2012, as the same may be amended from time
to time.

 

“Notice
and Questionnaire” means a Notice of Registration Statement and Selling Securityholder Questionnaire substantially in
the form of Exhibit A hereto.

 

The term
“person” shall mean a corporation, limited liability company, association, partnership, organization, business,
individual, government or political subdivision thereof or governmental agency.

 

“Purchase
Agreement” shall mean the Purchase Agreement, dated as of December 6, 2012 among the Purchasers, the Company and the
Guarantors relating to the Securities.

 

“Purchasers”
shall mean the Purchasers named in Schedule I to the Purchase Agreement.

 

“Registrable
Securities” shall mean the Securities; provided, however, that a Security shall cease to be a Registrable Security
upon the earliest to occur of the following: (i) in the circumstances contemplated by Section 2(a), the Security has
been exchanged for an Exchange Security in an Exchange Offer as contemplated in Section 2(a); (ii) in the circumstances contemplated
by Section 2(b), a Shelf Registration Statement registering such Security under the Securities Act has been declared or becomes
effective and such Security has been sold or otherwise transferred by the holder thereof pursuant to and in a manner contemplated
by such effective Shelf Registration Statement; (iii) when such Security is Freely Transferable or (iv) when such Security
shall cease to be outstanding.

 

“Registration
Default” shall have the meaning assigned thereto in Section 2(c).

 

“Registration
Default Period” shall have the meaning assigned thereto in Section 2(c).

 

“Registration
Expenses” shall have the meaning assigned thereto in Section 4.

 

“Resale
Period” shall have the meaning assigned thereto in Section 2(a).

 

“Restricted
Holder” shall mean (i) a holder that is an affiliate of the Company within the meaning of Rule 405, (ii) a
holder who acquires Exchange Securities outside the ordinary course of such holder’s business, (iii) a holder who has
arrangements or understandings with any person to participate in the Exchange Offer for the purpose of distributing Exchange Securities
and (iv) a holder that is a broker-dealer, but only with respect to Exchange Securities received by such broker-dealer pursuant
to an Exchange Offer in exchange for Registrable Securities acquired by the broker-dealer directly from the Company.

 

“Rule 144,”
“Rule 405”, “Rule 415”, “Rule 424”, “Rule 430B” and “Rule 433”
shall mean, in each case, such rule promulgated by the Commission under the Securities Act (or any successor provision), as the
same may be amended or succeeded from time to time.

 

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“Securities”
shall mean, collectively, the $80,000,000 in aggregate principal amount of the Company’s 11% Senior Notes due 2016 to be
issued and sold to the Purchasers pursuant to the Purchase Agreement dated December 6, 2012, and securities issued in exchange
therefor or in lieu thereof pursuant to the Indenture. Each Security is entitled to the benefit of the guarantee provided by each
of the Guarantors in the Indenture (the “Guarantees”) and, unless the context otherwise requires, any reference
herein to a “Security,” an “Exchange Security” or a “Registrable Security” shall include a
reference to the related Guarantees.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder,
as the same may be amended or succeeded from time to time.

 

“Shelf
Registration” shall have the meaning assigned thereto in Section 2(b).

 

“Shelf
Registration Statement” shall have the meaning assigned thereto in Section 2(b).

 

“Special
Interest” shall have the meaning assigned thereto in Section 2(c).

 

“Trust
Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules and regulations promulgated by the
Commission thereunder, as the same may be amended or succeeded from time to time.

 

“Trustee”
shall mean The Bank of New York Mellon, as trustee under the Indenture, together with any successors thereto in such capacity.

 

Unless the context otherwise
requires, any reference herein to a “Section” or “clause” refers to a Section or clause, as the case may
be, of this Agreement, and the words “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular Section or other subdivision.

 

2.   Registration
Under the Securities Act.

 

(a) Except
as set forth in Section 2(b) below, and to the extent there are Registrable Securities outstanding on the fifth Business Day
after the one year anniversary of the Closing Date, the Company and the Guarantors agree to file under the Securities Act a registration
statement relating to an offer to exchange (such registration statement, the “Exchange Registration Statement”,
and such offer, the “Exchange Offer”) any and all of the Securities for a like aggregate principal amount of
debt securities issued by the Company and guaranteed by the Guarantors, which debt securities and guarantees are substantially
identical to the Securities and the related Guarantees, respectively (and are entitled to the benefits of the Indenture), except
that they have been registered pursuant to an effective registration statement under the Securities Act and do not contain provisions
for Special Interest contemplated in Section 2(c) below (such new debt securities hereinafter called “Exchange Securities”).
The Company and the Guarantors agree to use all commercially reasonable efforts to cause the Exchange Registration Statement to
become effective under the Securities Act as promptly as practicable and no later than 45 calendar days after the Effective Time
of such Exchange Registration Statement. The Exchange Offer will be registered under the Securities Act on the appropriate form
and will comply with all applicable tender offer rules and regulations under the Exchange Act. Unless the Exchange Offer would
not be permitted by applicable law or Commission policy, the Company further agrees to use all commercially reasonable efforts
to (i) commence the Exchange Offer promptly following the Effective Time of such Exchange Registration Statement, (ii) hold
the Exchange Offer open for at least 30 calendar days in accordance with Regulation 14E promulgated by the Commission under the
Exchange Act and (iii) exchange Exchange Securities for all Registrable Securities that have been properly tendered and not
withdrawn promptly following the expiration of the Exchange Offer. The Exchange Offer will be deemed to have been “completed”
only (i) if the debt securities and related guarantees received by holders other than Restricted Holders in the Exchange Offer
for Registrable Securities are, upon receipt, transferable by each such holder without restriction under the Securities Act and
the Exchange Act and without material restrictions under the blue sky or securities laws of a substantial majority of the States
of the United States of America and (ii) upon the Company having exchanged, pursuant to the Exchange Offer, Exchange Securities
for all Registrable Securities that have been properly tendered and not withdrawn before the expiration of the Exchange Offer,
which shall be on a date that is at least 30 calendar days following the commencement of the Exchange Offer. The Company and the
Guarantors agree (x) to include in the Exchange Registration Statement a prospectus for use in any resales by any holder of Exchange
Securities that is a broker-dealer and (y) to keep such Exchange Registration Statement effective for a period (the “Resale
Period”) beginning when Exchange Securities are first issued in the Exchange Offer and ending upon the earlier of the
expiration of the 90th day after the Exchange Offer has been completed or such time as such broker-dealers no longer
own any Registrable Securities. With respect to such Exchange Registration Statement, such holders shall have the benefit of the
rights of indemnification and contribution set forth in Subsections 6(a), (c), (d) and (e).

 

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(b) If
(i) the Securities are Registrable Securities and (ii) on or prior to the time the Exchange Offer is completed, existing law or
Commission interpretations are changed such that the debt securities or the related guarantees received by holders other than Restricted
Holders in the Exchange Offer for Registrable Securities are not or would not be, upon receipt, transferable by each such holder
without restriction under the Securities Act, (iii) the Exchange Offer has not been completed within 45 days of the fifth Business
Day after first anniversary of the Closing Date or (iv) any holder of Registrable Securities notifies the Company prior to the
20th Business Day following the completion of the Exchange Offer that: (A) it is prohibited by law or Commission
policy from participating in the Exchange Offer, (B) it may not resell the Exchange Securities to the public without delivering
a prospectus and the prospectus supplement contained in the Exchange Registration Statement is not appropriate or available for
such resales or (C) it is a broker-dealer and owns Securities acquired directly from the Company or an affiliate of the Company,
then the Company and the Guarantors shall, in lieu of (or, in the case of clause (iv), in addition to) conducting the Exchange
Offer contemplated by Section 2(a), file under the Securities Act as promptly as practicable, a “shelf” registration
statement providing for the registration of, and the sale on a continuous or delayed basis by the holders of, all of the Registrable
Securities, pursuant to Rule 415 or any similar rule that may be adopted by the Commission (such filing, the “Shelf
Registration” and such registration statement, the “Shelf Registration Statement”). The Company and
the Guarantors agree to use all commercially reasonable efforts to cause the Shelf Registration Statement to become or be declared
effective no later than 90 days after such Shelf Registration Statement filing obligation arises; provided, that if at any
time the Company is or becomes a “well-known seasoned issuer” (as defined in Rule 405) and is eligible to file
an “automatic shelf registration statement” (as defined in Rule 405), then the Company and the Guarantors shall
file the Shelf Registration Statement in the form of an automatic shelf registration statement as provided in Rule 405. The
Company and the Guarantors agree to use all commercially reasonable efforts to keep such Shelf Registration Statement continuously
effective until such time as there are no longer any Registrable Securities outstanding. No holder shall be entitled to be named
as a selling securityholder in the Shelf Registration Statement or to use the prospectus forming a part thereof for resales of
Registrable Securities unless such holder is an Electing Holder. The Company and the Guarantors agree, after the Effective Time
of the Shelf Registration Statement and promptly upon the request of any holder of Registrable Securities that is not then an Electing
Holder, to use all commercially reasonable efforts to enable such holder to use the prospectus forming a part thereof for resales
of Registrable Securities, including, without limitation, any action necessary to identify such holder as a selling securityholder
in the Shelf Registration Statement (whether by post-effective amendment thereto or by filing a prospectus pursuant to Rules 430B
and 424(b) under the Securities Act identifying such holder), provided, however, that nothing in this sentence shall (A)
relieve any such holder of the obligation to return a completed and signed Notice and Questionnaire to the Company in accordance
with Section 3(d)(iii) or (B) require the Company or the Guarantors to file more than one post-effective amendment to the
Shelf Registration Statement in any 30 day period. Notwithstanding anything to the contrary in this Section 2(b), (A) no holder
of Registrable Securities may include any of its Registrable Securities in any Shelf Registration Statement pursuant to this Agreement
unless and until such holder furnishes to the Company in writing, within 20 Business Days after receipt of a request therefor,
such information as the Company may reasonably request for use in connection with any Shelf Registration Statement, prospectus
or preliminary prospectus and such holder agrees to furnish promptly to the Company all information required to be disclosed in
order to make the information previously furnished to the Company by such holder not materially misleading and (B) upon notice
to the Electing Holders, the Company may suspend the use or the effectiveness of such Shelf Registration Statement, or extend the
time period in which it is required to file the Shelf Registration Statement for one or more periods up to 60 days in the aggregate
in any 12-month period (each, a “Suspension Period”) if the Board of Directors of the Company determines that
there is a valid business purpose for suspension of the Shelf Registration Statement; provided that the Company shall promptly
notify the Electing Holders when the Shelf Registration Statement may once again be used or is effective. 

 

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(c)
In the event that (i) the Company and the Guarantors have not filed the Exchange Registration Statement or the Shelf
Registration Statement on or before the date on which such registration statement is required to be filed pursuant to Section 2(a)
or Section 2(b), respectively, or (ii) such Exchange Registration Statement or Shelf Registration Statement has not become
effective or been declared effective by the Commission on or before the date on which such registration statement is required to
become or be declared effective pursuant to Section 2(a) or Section 2(b), respectively, or (iii) the Exchange Offer has
not been completed within 45 calendar days after the Effective Time of the Exchange Registration Statement relating to the Exchange
Offer (if the Exchange Offer is then required to be made) or (iv) any Exchange Registration Statement or Shelf Registration
Statement required by Section 2(a) or Section 2(b) is filed and declared effective but shall thereafter either be withdrawn
by the Company or shall become subject to an effective stop order issued pursuant to Section 8(d) of the Securities Act suspending
the effectiveness of such registration statement (except as specifically permitted herein including with respect to any Shelf Registration
Statement during any applicable Suspension Period in accordance with the last sentence of Section 2(b)) without being succeeded
immediately by an additional registration statement filed and declared effective for more than 60 calendar days in any 12 month
period prior to the time the Securities cease to be Registrable Securities (each such event referred to in clauses (i) through
(iv), a “Registration Default” and each period during which a Registration Default has occurred and is continuing,
a “Registration Default Period”), then, as liquidated damages for such Registration Default, subject to the
provisions of Section 9(b), special interest (“Special Interest”), in addition to the Base Interest, shall
accrue on all Registrable Securities then outstanding at a per annum rate of 0.25% for the first 90 days of the Registration Default
Period, at a per annum rate of 0.50% for the second 90 days of the Registration Default Period, at a per annum rate of 0.75% for
the third 90 days of the Registration Default Period and at a per annum rate of 1.0% thereafter for the remaining portion of the
Registration Default Period; provided, however, that upon the exchange of the Exchange Securities for all Registrable
Securities tendered, or upon the effectiveness of the applicable Shelf Registration Statement which had ceased to remain effective,
Special Interest on the Registrable Securities in respect of which such Registration Default exists shall cease to accrue. Special
Interest shall accrue and be payable only with respect to a single Registration Default at any given time, notwithstanding the
fact that multiple Registration Defaults may exist at such time. The accrual of Special Interest shall be the exclusive monetary
remedy available to the holders of Registrable Securities for any Registration Default. Notwithstanding anything to the contrary
in this Section 2(c), the Company shall not be obligated to pay Special Interest in this Section 2(c) during a Suspension Period
permitted by Section 2(b) hereof.

 

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(d) The
Company shall take, and shall cause the Guarantors to take, all actions necessary or advisable to be taken by it to ensure that
the transactions contemplated herein are effected as so contemplated, including all actions necessary or desirable to register
the Guarantees under any Exchange Registration Statement or Shelf Registration Statement, as applicable.

 

(e) Any
reference herein to a registration statement or prospectus as of any time shall be deemed to include any document incorporated,
or deemed to be incorporated, therein by reference as of such time; and any reference herein to any post-effective amendment to
a registration statement or to any prospectus supplement as of any time shall be deemed to include any document incorporated, or
deemed to be incorporated, therein by reference as of such time.

 

3.   Registration
Procedures.

 

If the Company and
the Guarantors file a registration statement pursuant to Section 2(a) or Section 2(b), the following provisions shall
apply:

 

(a)   At
or before the Effective Time of the Exchange Registration or any Shelf Registration, whichever may occur first, the Company shall
qualify the Indenture under the Trust Indenture Act.

 

(b)   In
the event that such qualification would require the appointment of a new trustee under the Indenture, the Company shall appoint
a new trustee thereunder pursuant to the applicable provisions of the Indenture.

 

(c)  In
connection with the Company’s and the Guarantors’ obligations with respect to the registration of Exchange Securities
as contemplated by Section 2(a) (the “Exchange Registration”), if applicable, the Company and the Guarantors
shall:

 

(i)     prepare
and file with the Commission, no later than 45 days after the fifth Business Day following the one year anniversary of the Closing
Date, an Exchange Registration Statement on any form which may be utilized by the Company and the Guarantors and which shall permit
the Exchange Offer and resales of Exchange Securities by broker-dealers during the Resale Period to be effected as contemplated
by Section 2(a), and use all commercially reasonable efforts to cause such Exchange Registration Statement to become effective
no later than 45 days after the Effective Time of such Exchange Registration Statement;

 

(ii)    as
soon as practicable prepare and file with the Commission such amendments and supplements to such Exchange Registration Statement
and the prospectus included therein as may be necessary to effect and maintain the effectiveness of such Exchange Registration
Statement for the periods and purposes contemplated in Section 2(a) and as may be required by the applicable rules and regulations
of the Commission and the instructions applicable to the form of such Exchange Registration Statement, and promptly provide each
broker-dealer holding Exchange Securities with such number of copies of the prospectus included therein (as then amended or supplemented),
in conformity in all material respects with the requirements of the Securities Act and the Trust Indenture Act, as such broker-dealer
reasonably may request prior to the expiration of the Resale Period, for use in connection with resales of Exchange Securities;

 

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(iii)    promptly
notify each broker-dealer that has requested or received copies of the prospectus included in such Exchange Registration Statement,
and confirm such advice in writing, (A) when such Exchange Registration Statement or the prospectus included therein or any
prospectus amendment or supplement or post-effective amendment has been filed, and, with respect to such Exchange Registration
Statement or any post-effective amendment, when the same has become effective, (B) of any comments by the Commission and by
the blue sky or securities commissioner or regulator of any state with respect thereto or any request by the Commission for amendments
or supplements to such Exchange Registration Statement or prospectus or for additional information, (C) of the issuance by
the Commission of any stop order suspending the effectiveness of such Exchange Registration Statement or the initiation or threatening
of any proceedings for that purpose, (D) if at any time the representations and warranties of the Company contemplated by
Section 5 cease to be true and correct in all material respects, (E) of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Exchange Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, (F) the occurrence of any event that causes the Company to become an “ineligible
issuer” as defined in Rule 405, or (G) if at any time during the Resale Period when a prospectus is required to
be delivered under the Securities Act, that such Exchange Registration Statement, prospectus, prospectus amendment or supplement
or post-effective amendment does not conform in all material respects to the applicable requirements of the Securities Act and
the Trust Indenture Act or contains an untrue statement of a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein not misleading in light of the circumstances then existing;

 

(iv)    in
the event that the Company and the Guarantors would be required, pursuant to Section 3(c)(iii)(G), to notify any broker-dealers
holding Exchange Securities (except as otherwise permitted during any Suspension Period), promptly prepare and furnish to each
such holder a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to purchasers
of such Exchange Securities during the Resale Period, such prospectus shall conform in all material respects to the applicable
requirements of the Securities Act and the Trust Indenture Act and shall not contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light
of the circumstances then existing;

 

(v)    use
all commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of such Exchange Registration
Statement or any post-effective amendment thereto at the earliest practicable date;

 

(vi)    use
all commercially reasonable efforts to (A) register or qualify the Exchange Securities under the securities laws or blue sky
laws of such jurisdictions as are contemplated by Section 2(a) no later than the commencement of the Exchange Offer, to the
extent required by such laws, (B) keep such registrations or qualifications in effect and comply with such laws so as to permit
the continuance of offers, sales and dealings therein in such jurisdictions until the expiration of the Resale Period, (C) take
any and all other actions as may be reasonably necessary or advisable to enable each broker-dealer holding Exchange Securities
to consummate the disposition thereof in such jurisdictions and (D) obtain the consent or approval of each governmental agency
or authority, whether federal, state or local, which may be required to effect the Exchange Registration, the Exchange Offer and
the offering and sale of Exchange Securities by broker-dealers during the Resale Period; provided, however, that neither
the Company nor the Guarantors shall be required for any such purpose to (1) qualify as a foreign corporation in any jurisdiction
wherein it would not otherwise be required to qualify but for the requirements of this Section 3(c)(vi), (2) consent
to general service of process in any such jurisdiction or become subject to taxation in any such jurisdiction or (3) make
any changes to its certificate of incorporation or by-laws or other governing documents or any agreement between it and its stockholders;

 

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(vii)    to
the extent permitted by DTC and applicable law, register all Exchange Securities under the CUSIP number
for the Existing Exchange Securities, or, if the Company fails to register the securities under
such CUSIP number, obtain a new unrestricted CUSIP number for such Exchange Securities, in either case not later than the applicable
Effective Time; and

 

(viii)    comply
with all applicable rules and regulations of the Commission, and make generally available to its securityholders no later than
eighteen months after the Effective Time of such Exchange Registration Statement, an “earning statement” of the Company
and its subsidiaries complying with Section 11(a) of the Securities Act (including, at the option of the Company, Rule 158
thereunder); provided, however, that this requirement shall be deemed to be satisfied by the Company’s compliance
with Section 3.16 of the Indenture.

 

(d)In
connection with the Company’s and the Guarantor’s obligations with respect to the Shelf Registration, if applicable,
the Company and the Guarantor shall:

 

(i)    prepare
and file with the Commission, within the time periods specified in Section 2(b), a Shelf Registration Statement on any form
which may be utilized by the Company and which shall register all of the Registrable Securities for resale by the holders thereof
in accordance with such method or methods of disposition as may be specified by the holders of Registrable Securities as, from
time to time, may be Electing Holders and use all commercially reasonable efforts to cause such Shelf Registration Statement to
become effective within the time periods specified in Section 2(b); 

 

(ii)    mail
the Notice and Questionnaire to the holders of Registrable Securities not less than 30 days prior to the anticipated Effective
Time of the Shelf Registration Statement, and no holder shall be entitled to be named as a selling securityholder in the Shelf
Registration Statement, and no holder shall be entitled to use the prospectus forming a part thereof for resales of Registrable
Securities at any time, unless and until such holder has returned a completed and signed Notice and Questionnaire to the Company;

 

(iii)    after
the Effective Time of the Shelf Registration Statement, upon the request of any holder of Registrable Securities that is not then
an Electing Holder, promptly send a Notice and Questionnaire to such holder; provided that the Company shall not be required
to (A) take any action to name such holder as a selling securityholder in the Shelf Registration Statement or to enable such holder
to use the prospectus forming a part thereof for resales of Registrable Securities until such holder has returned a completed and
signed Notice and Questionnaire to the Company and (B) nothing in this clause (iii) shall require the Company or the Guarantors
to file a post-effective amendment to the Shelf Registration Statement more than once in any 30-day period;

 

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(iv)    as
soon as practicable prepare and file with the Commission such amendments and supplements to such Shelf Registration Statement and
the prospectus included therein as may be necessary to effect and maintain the effectiveness of such Shelf Registration Statement
for the period specified in Section 2(b) and as may be required by the applicable rules and regulations of the Commission
and the instructions applicable to the form of such Shelf Registration Statement, and furnish to the Electing Holders copies of
any such supplement or amendment simultaneously with or prior to its being used or filed with the Commission to the extent such
documents are not publicly available on the Commission’s EDGAR System;

 

(v)    comply
with the provisions of the Securities Act with respect to the disposition of all of the Registrable Securities covered by such
Shelf Registration Statement in accordance with the intended methods of disposition by the Electing Holders provided for in such
Shelf Registration Statement;

 

(vi)    provide
a representative of the Electing Holders and not more than one counsel for all the Electing Holders the opportunity to participate
in the preparation of such Shelf Registration Statement, each prospectus included therein or filed with the Commission and each
amendment or supplement thereto;

 

(vii)    for
a reasonable period prior to the filing of such Shelf Registration Statement, and throughout the period specified in Section 2(b),
make available at reasonable times at the Company’s principal place of business or such other reasonable place for inspection
by the persons referred to in Section 3(d)(vi) who shall certify to the Company that they have a current intention to sell
the Registrable Securities pursuant to the Shelf Registration such financial and other information and books and records of the
Company, and cause the officers, employees, counsel and independent certified public accountants of the Company to respond to such
inquiries, as shall be reasonably necessary (and in the case of counsel, not violate an attorney-client privilege, in such counsel’s
reasonable belief), in the judgment of the respective counsel referred to in Section 3(d)(vi), to conduct a reasonable investigation
within the meaning of Section 11 of the Securities Act; provided, however, that the foregoing inspection and information
gathering on behalf of the Electing Holders shall be conducted by one counsel designated by the holders of at least a majority
in aggregate principal amount of the Registrable Securities held by the Electing Holders at the time outstanding and provided
further that each such party shall be required to maintain in confidence and not to disclose to any other person any information
or records reasonably designated by the Company as being confidential, until such time as (A) such information becomes a matter
of public record (whether by virtue of its inclusion in such Shelf Registration Statement or otherwise), or (B) such person
shall be required so to disclose such information pursuant to a subpoena or order of any court or other governmental agency or
body having jurisdiction over the matter (subject to the requirements of such order, and only after such person shall have given
the Company prompt prior written notice of such requirement), or (C) such information is required to be set forth in such
Shelf Registration Statement or the prospectus included therein or in an amendment to such Shelf Registration Statement or an amendment
or supplement to such prospectus in order that such Shelf Registration Statement, prospectus, amendment or supplement, as the case
may be, complies with applicable requirements of the federal securities laws and the rules and regulations of the Commission and
does not contain an untrue statement of a material fact or omit to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the circumstances then existing;

 

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(viii)    promptly
notify each of the Electing Holders and confirm such advice in writing, (A) when such Shelf Registration Statement or the
prospectus included therein or any prospectus amendment or supplement or post-effective amendment has been filed, and, with respect
to such Shelf Registration Statement or any post-effective amendment, when the same has become effective, (B) of any comments
by the Commission and by the blue sky or securities commissioner or regulator of any state with respect thereto or any request
by the Commission for amendments or supplements to such Shelf Registration Statement or prospectus or for additional information,
(C) of the issuance by the Commission of any stop order suspending the effectiveness of such Shelf Registration Statement
or the initiation or threatening of any proceedings for that purpose, (D) if at any time the representations and warranties
of the Company set forth in Section 5 cease to be true and correct in all material respects, (E) of the receipt by the
Company of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose, (F) the occurrence of any event that causes the Company
to become an “ineligible issuer” as defined in Rule 405, or (G) if at any time when a prospectus is required
to be delivered under the Securities Act, that such Shelf Registration Statement, prospectus, prospectus amendment or supplement
or post-effective amendment does not conform in all material respects to the applicable requirements of the Securities Act and
the Trust Indenture Act or contains an untrue statement of a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein not misleading in light of the circumstances then existing;

 

(ix)    use
all commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of such Shelf Registration
Statement or any post-effective amendment thereto at the earliest practicable date;

 

(x)    if
requested by any Electing Holder, promptly incorporate in a prospectus supplement or post-effective amendment such information
as is required by the applicable rules and regulations of the Commission and as such Electing Holder specifies should be included
therein relating to the terms of the sale of such Registrable Securities, including information with respect to the principal amount
of Registrable Securities being sold by such Electing Holder, the name and description of such Electing Holder, the offering price
of such Registrable Securities and any discount, commission or other compensation payable in respect thereof and with respect to
any other terms of the offering of the Registrable Securities to be sold by such Electing Holder; and make all required filings
of such prospectus supplement or post-effective amendment promptly after notification of the matters to be incorporated in such
prospectus supplement or post-effective amendment;

 

(xi)    furnish
to each Electing Holder and the counsel referred to in Section 3(d)(vi) an executed copy (or a conformed copy) of such Shelf
Registration Statement, each such amendment and supplement thereto (in each case including all exhibits thereto (in the case of
an Electing Holder of Registrable Securities, upon request) and documents incorporated by reference therein) and such number of
copies of such Shelf Registration Statement (excluding exhibits thereto and documents incorporated by reference therein unless
specifically so requested by such Electing Holder) and of the prospectus included in such Shelf Registration Statement (including
each preliminary prospectus and any summary prospectus), in conformity in all material respects with the applicable requirements
of the Securities Act and the Trust Indenture Act to the extent such documents are not available through the Commission’s
EDGAR System, and such other documents, as such Electing Holder may reasonably request in order to facilitate the offering and
disposition of the Registrable Securities owned by such Electing Holder and to permit such Electing Holder to satisfy the prospectus
delivery requirements of the Securities Act; and subject to Section 3(e), the Company hereby consents to the use of such prospectus
(including such preliminary and summary prospectus) and any amendment or supplement thereto by each such Electing Holder (subject
to any applicable Suspension Period), in each case in the form most recently provided to such person by the Company, in connection
with the offering and sale of the Registrable Securities covered by the prospectus (including such preliminary and summary prospectus)
or any supplement or amendment thereto;

 

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(xii)    use
all commercially reasonable efforts to (A) register or qualify the Registrable Securities to be included in such Shelf Registration
Statement under such securities laws or blue sky laws of such jurisdictions as any Electing Holder shall reasonably request, (B) keep
such registrations or qualifications in effect and comply with such laws so as to permit the continuance of offers, sales and dealings
therein in such jurisdictions during the period the Shelf Registration Statement is required to remain effective under Section 2(b)
and for so long as may be necessary to enable any such Electing Holder to complete its distribution of Registrable Securities pursuant
to such Shelf Registration Statement, (C) take any and all other actions as may be reasonably necessary or advisable to enable
each such Electing Holder to consummate the disposition in such jurisdictions of such Registrable Securities and (D) obtain
the consent or approval of each governmental agency or authority, whether federal, state or local, which may be required to effect
the Shelf Registration or the offering or sale in connection therewith or to enable the selling holder or holders to offer, or
to consummate the disposition of, their Registrable Securities; provided, however, that neither the Company nor the Guarantors
shall be required for any such purpose to (1) qualify as a foreign corporation in any jurisdiction wherein it would not otherwise
be required to qualify but for the requirements of this Section 3(d)(xii), (2) consent to general service of process
in any such jurisdiction or become subject to taxation in any such jurisdiction or (3) make any changes to its certificate
of incorporation or by-laws or other governing documents or any agreement between it and its stockholders;

 

(xiii)    unless
any Registrable Securities shall be in book-entry only form, cooperate with the Electing Holders to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be sold, which certificates, if so required by any securities
exchange upon which any Registrable Securities are listed, shall be printed, penned, lithographed, engraved or otherwise produced
by any combination of such methods, on steel engraved borders, and which certificates shall not bear any restrictive legends;

 

(xiv)    to
the extent permitted by DTC and applicable law, register all Securities that have been registered under the Securities Act under
the CUSIP number for the Existing Exchange Securities, or, if the
Company fails to register the securities under such CUSIP number, obtain a new unrestricted CUSIP number for such Securities, in
either case not later than the applicable Effective Time; 

 

(xv)    notify
in writing each holder of Registrable Securities of any proposal by the Company to amend or waive any provision of this Agreement
pursuant to Section 9(h) and of any amendment or waiver effected pursuant thereto, each of which notices shall contain the
text of the amendment or waiver proposed or effected, as the case may be; and

 

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(xvi)    comply
with all applicable rules and regulations of the Commission, and make generally available to its securityholders no later than
eighteen months after the Effective Time of such Shelf Registration Statement an “earning statement” of the Company
and its subsidiaries complying with Section 11(a) of the Securities Act (including, at the option of the Company, Rule 158
thereunder); provided, however, that this requirement shall be deemed satisfied by the Company’s compliance
with Section 3.16 of the Indenture.

 

(e)    In
the event that the Company would be required, pursuant to Section 3(d)(viii)(G), to notify the Electing Holders, the Company
shall promptly prepare and furnish to each of the Electing Holders a reasonable number of copies of a prospectus supplemented or
amended so that, as thereafter delivered to purchasers of Registrable Securities, such prospectus shall conform in all material
respects to the applicable requirements of the Securities Act and the Trust Indenture Act and shall not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing. Each Electing Holder agrees that upon receipt of any notice from the Company
pursuant to Section 3(d)(viii)(G), such Electing Holder shall forthwith discontinue the disposition of Registrable Securities
pursuant to the Shelf Registration Statement applicable to such Registrable Securities until such Electing Holder shall have received
copies of such amended or supplemented prospectus, and if so directed by the Company, such Electing Holder shall deliver to the
Company (at the Company’s expense) all copies, other than permanent file copies, of the prospectus covering such Registrable
Securities in such Electing Holder’s possession at the time of receipt of such notice.

 

(f)    In
the event of a Shelf Registration, in addition to the information required to be provided by each Electing Holder in its Notice
and Questionnaire, the Company may require such Electing Holder to furnish to the Company such additional information regarding
such Electing Holder and such Electing Holder’s intended method of distribution of Registrable Securities as may be required
in order to comply with the Securities Act. Each such Electing Holder agrees to notify the Company as promptly as practicable of
any inaccuracy or change in information previously furnished by such Electing Holder to the Company or of the occurrence of any
event in either case as a result of which any prospectus relating to such Shelf Registration contains or would contain an untrue
statement of a material fact regarding such Electing Holder or such Electing Holder’s intended method of disposition of such
Registrable Securities or omits to state any material fact regarding such Electing Holder or such Electing Holder’s intended
method of disposition of such Registrable Securities required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing, and promptly to furnish to the Company any additional information required
to correct and update any previously furnished information or required so that such prospectus shall not contain, with respect
to such Electing Holder or the disposition of such Registrable Securities, an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances
then existing.

 

(g)    Until
the Securities have become Freely Transferable, the Company will not, and will not permit any of its “affiliates” (as
defined in Rule 144) to, resell any of the Securities that have been reacquired by any of them except pursuant to an effective
registration statement, or a valid exemption from the registration requirements, under the Securities Act.

 

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(h)    As
a condition to its participation in the Exchange Offer, each holder of Registrable Securities shall furnish, upon the request of
the Company, a written representation to the Company (which may be contained in the letter of transmittal or “agent’s
message” transmitted via The Depository Trust Company’s Automated Tender Offer Procedures, in either case contemplated
by the Exchange Registration Statement) to the effect that (A) it is not an “affiliate” of the Company, as defined
in Rule 405 of the Securities Act, or if it is such an “affiliate”, it will comply with the registration and prospectus
delivery requirements of the Securities Act to the extent applicable, (B) it is not engaged in and does not intend to engage
in, and has no arrangement or understanding with any person to participate in, a distribution of the Exchange Securities to be
issued in the Exchange Offer, (C) it is acquiring the Exchange Securities in its ordinary course of business, (D) if
it is a broker-dealer that holds Securities that were acquired for its own account as a result of market-making activities or other
trading activities (other than Securities acquired directly from the Company or any of its affiliates), it will deliver a prospectus
meeting the requirements of the Securities Act in connection with any resales of the Exchange Securities received by it in the
Exchange Offer, (E) if it is a broker-dealer, that it did not purchase the Securities to be exchanged in the Exchange Offer
from the Company or any of its affiliates, and (F) it is not acting on behalf of any person who could not truthfully and completely
make the representations contained in the foregoing subclauses (A) through (E).

 

Notwithstanding anything
in this Section 3 to the contrary, the requirements to file and consummate an Exchange Offer and/or file a Shelf Registration Statement
shall terminate at such time as all the Registrable Securities are Freely Transferable.

 

4.    Registration
Expenses.

 

The Company agrees
to bear and to pay or cause to be paid promptly all expenses incident to the Company’s performance of or compliance with
this Agreement, including (a) all Commission and any FINRA registration, filing and review fees and expenses including reasonable
fees and disbursements of counsel for the Eligible Holders in connection with such registration, filing and review, (b) all
fees and expenses in connection with the qualification of the Registrable Securities and the Exchange Securities, as applicable,
for offering and sale under the State securities and blue sky laws referred to in Section 3(d)(xii) and determination of their
eligibility for investment under the laws of such jurisdictions as the Electing Holders may designate, including any reasonable
fees and disbursements of counsel for the Electing Holders in connection with such qualification and determination, (c) all
expenses relating to the preparation, printing, production, distribution and reproduction of each registration statement required
to be filed hereunder, each prospectus included therein or prepared for distribution pursuant hereto, each amendment or supplement
to the foregoing, the expenses of preparing the Securities or Exchange Securities, as applicable, for delivery and the expenses
of printing or producing any selling agreements and blue sky or legal investment memoranda and all other documents in connection
with the offering, sale or delivery of Securities or Exchange Securities, as applicable, to be disposed of (including certificates
representing the Securities or Exchange Securities, as applicable), (d) messenger, telephone and delivery expenses relating
to the offering, sale or delivery of Securities or Exchange Securities, as applicable, and the preparation of documents referred
in clause (c) above, (e) fees and expenses of the Trustee under the Indenture, any agent of the Trustee and any counsel for
the Trustee and of any collateral agent or custodian, (f) internal expenses (including all salaries and expenses of the Company’s
officers and employees performing legal or accounting duties), (g) reasonable fees, disbursements and expenses of counsel
and independent certified public accountants of the Company, (h) reasonable fees, disbursements and expenses of one counsel
for the Electing Holders retained in connection with a Shelf Registration, as selected by the Electing Holders of at least a majority
in aggregate principal amount of the Registrable Securities held by Electing Holders (which counsel shall be reasonably satisfactory
to the Company) (i) any fees charged by securities rating services for rating the Registrable Securities or the Exchange Securities,
as applicable, and (j) fees, expenses and disbursements of any other persons, including special experts, retained by the Company
in connection with such registration (collectively, the “Registration Expenses”). To the extent that any Registration
Expenses are incurred, assumed or paid by any holder of Registrable Securities, Securities or Exchange Securities, as applicable,
the Company shall reimburse such person for the full amount of the Registration Expenses so incurred, assumed or paid promptly
after receipt of a request therefor. Notwithstanding the foregoing, the holders of the Registrable Securities being registered
shall pay all agency fees and commissions and underwriting discounts and commissions, if any, and transfer taxes, if any, attributable
to the sale of such Registrable Securities and Exchange Securities, as applicable, and the fees and disbursements of any counsel
or other advisors or experts retained by such holders (severally or jointly), other than the counsel and experts specifically referred
to above.

 

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5.    Representations
and Warranties.

 

The Company and each
of the Guarantors, jointly and severally, represents and warrants to, and agrees with, each Purchaser and each of the holders from
time to time of Registrable Securities that:

 

(a)    Each
registration statement covering Registrable Securities, Securities or Exchange Securities, as applicable, and each prospectus (including
any preliminary or summary prospectus) contained therein or furnished pursuant to Section 3(c) or Section 3(d) and any
further amendments or supplements to any such registration statement or prospectus, when it becomes effective or is filed with
the Commission, as the case may be, will conform in all material respects to the requirements of the Securities Act and the Trust
Indenture Act and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading; and at all times subsequent to the Effective Time when a prospectus
would be required to be delivered under the Securities Act, other than (A) from (i) such time as a notice has been given to
holders of Registrable Securities pursuant to Section 3(c)(iii)(G) or Section 3(d)(viii)(G) until (ii) such time
as the Company furnishes an amended or supplemented prospectus pursuant to Section 3(c)(iv) or Section 3(e) or (B) during
any applicable Suspension Period, each such registration statement, and each prospectus (including any summary prospectus) contained
therein or furnished pursuant to Section 3(c) or Section 3(d), as then amended or supplemented, will conform in all material
respects to the requirements of the Securities Act and the Trust Indenture Act and will not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading
in the light of the circumstances then existing; provided, however, that this representation and warranty shall not apply
to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Company by
a holder of Registrable Securities expressly for use therein.

 

(b)    Any
documents incorporated by reference in any prospectus referred to in Section 5(a), when they become or became effective or
are or were filed with the Commission, as the case may be, will conform or conformed in all material respects to the requirements
of the Securities Act or the Exchange Act, as applicable, and none of such documents will contain or contained an untrue statement
of a material fact or will omit or omitted to state a material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing; provided, however, that this representation and warranty
shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to
the Company by a holder of Registrable Securities expressly for use therein.

 

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(c)    The
compliance by the Company with all of the provisions of this Agreement and the consummation of the transactions herein contemplated
will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default
under, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its
subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of
the Company or any of its subsidiaries is subject, (ii) result in any violation of the provisions of the certificate of incorporation,
as amended, or the by-laws or other governing documents, as applicable, of the Company or the Guarantors or (iii) 
result in any violation of any statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction
over the Company or any of its subsidiaries or any of their respective properties, except in the case of (i) and (iii) above, for
any default, breach, violation or conflict which would not reasonably be expected to have a material adverse effect on the current
or future condition (financial or otherwise), business or results of operations of the Company and its subsidiaries, taken as a
whole (“Material Adverse Effect”); and no consent, approval, authorization, order, registration or qualification
of or with any such court or governmental agency or body is required for the consummation by the Company and the Guarantors of
the transactions contemplated by this Agreement, except (w) the registration under the Securities Act of the Registrable Securities
and the Exchange Securities, as applicable, and qualification of the Indenture under the Trust Indenture Act, (x) such consents,
approvals, authorizations, registrations or qualifications as may be required under state securities or blue sky laws in connection
with the offering and distribution of the Registrable Securities and the Exchange Securities, as applicable and (y) such consents,
approvals, authorizations, registrations or qualifications that have been obtained and are in full force and effect as of the date
hereof.

 

(d)    This
Agreement has been duly authorized, executed and delivered by the Company and by the Guarantors.

 

6.    Indemnification
and Contribution.

 

(a)    Indemnification
by the Company and the Guarantors. The Company and the Guarantors, jointly and severally, will indemnify and hold harmless
each of the holders of Registrable Securities included in an Exchange Registration Statement and each of the Electing Holders as
holders of Registrable Securities included in a Shelf Registration Statement against any losses, claims, damages or liabilities,
joint or several, to which such holder or such Electing Holder may become subject under the Securities Act or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement
or alleged untrue statement of a material fact contained in any Exchange Registration Statement or any Shelf Registration Statement,
as the case may be, under which such Registrable Securities or Exchange Securities were registered under the Securities Act, or
any preliminary, final or summary prospectus (including, without limitation, any “issuer free writing prospectus” as
defined in Rule 433) contained therein or furnished by the Company to any such holder or any such Electing Holder, or any
amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each such holder
and each such Electing Holder for any and all legal or other expenses reasonably incurred by them in connection with investigating
or defending any such action or claim as such expenses are incurred; provided, however, that neither the Company nor the
Guarantors shall be liable to any such person in any such case to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration
statement, or preliminary, final or summary prospectus (including, without limitation, any “issuer free writing prospectus”
as defined in Rule 433), or amendment or supplement thereto, in reliance upon and in conformity with written information furnished
to the Company by such person expressly for use therein.

 

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(b)    Indemnification
by the Electing Holders. The Company may require, as a condition to including any Registrable Securities in any Shelf Registration
Statement filed pursuant to Section 2(b), that the Company shall have received an undertaking reasonably satisfactory to it from
each Electing Holder of Registrable Securities included in such Shelf Registration Statement, severally and not jointly, to (i) indemnify
and hold harmless the Company, the Guarantors and all other Electing Holders of Registrable Securities included in such Shelf Registration
Statement, against any losses, claims, damages or liabilities to which the Company, the Guarantors or such other Electing Holders
may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in
such registration statement, or any preliminary, final or summary prospectus (including, without limitation, any “issuer
free writing prospectus” as defined in Rule 433) contained therein or furnished by the Company to any Electing Holder,
or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company by such Electing Holder expressly for use therein, and
(ii) reimburse the Company and the Guarantors for any legal or other expenses reasonably incurred by the Company and the Guarantors
in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however,
that no such Electing Holder shall be required to undertake liability to any person under this Section 6(b) for any amounts
in excess of the dollar amount of the proceeds to be received by such Electing Holder from the sale of such Electing Holder’s
Registrable Securities pursuant to such registration.

 

(c)    Notices
of Claims, Etc. Promptly after receipt by an indemnified party under subsection (a) or (b) above of written notice of
the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against an indemnifying
party pursuant to the indemnification provisions of or contemplated by this Section 6, notify such indemnifying party in writing
of the commencement of such action; but the omission so to notify the indemnifying party shall not relieve it from any liability
which it may have to any indemnified party otherwise than under the indemnification provisions of or contemplated by Section 6(a)
or Section 6(b). In case any such action shall be brought against any indemnified party and it shall notify an indemnifying
party of the commencement thereof, such indemnifying party shall be entitled to participate therein and, to the extent that it
shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying
party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof,
such indemnifying party shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses,
in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs
of investigation. No indemnifying party shall, without the prior written consent of the indemnified party, effect the settlement
or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect
of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential
party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the
indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to, or an
admission of, fault, culpability or a failure to act by or on behalf of any indemnified party.

 

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(d)    Contribution.
If for any reason the indemnification provisions contemplated by Section 6(a) or Section 6(b) are unavailable to
or insufficient to hold harmless an indemnified party in respect of any losses, claims, damages or liabilities (or actions in respect
thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party
as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate
to reflect the relative fault of the indemnifying party and the indemnified party in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable
considerations. The relative fault of such indemnifying party and indemnified party shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by such indemnifying party or by such indemnified party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties hereto agree that
it would not be just and equitable if contributions pursuant to this Section 6(d) were determined by pro rata allocation (even
if the holders were treated as one entity for such purpose) or by any other method of allocation which does not take account of
the equitable considerations referred to in this Section 6(d). The amount paid or payable by an indemnified party as a result
of the losses, claims, damages, or liabilities (or actions in respect thereof) referred to above shall be deemed to include any
legal or other fees or expenses reasonably incurred by such indemnified party in connection with investigating or defending any
such action or claim. Notwithstanding the provisions of this Section 6(d), no Electing Holder shall be required to contribute
any amount in excess of the amount by which the dollar amount of the proceeds received by such holder from the sale of any Registrable
Securities (after deducting any fees, discounts and commissions applicable thereto) exceeds the amount of any damages which such
holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.
No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any person who was not guilty of such fraudulent misrepresentation. The holders’ obligations in this
Section 6(d) to contribute shall be several in proportion to the principal amount of Registrable Securities registered by
them and not joint.

 

(e)    The
obligations of the Company and the Guarantors under this Section 6 shall be in addition to any liability which the Company
or the Guarantors may otherwise have and shall extend, upon the same terms and conditions, to each officer, director and partner
of each holder, each Electing Holder, and each person, if any, who controls any of the foregoing within the meaning of the Securities
Act; and the obligations of the holders and the Electing Holders contemplated by this Section 6 shall be in addition to any
liability which the respective holder or Electing Holder may otherwise have and shall extend, upon the same terms and conditions,
to each officer and director of the Company or the Guarantors (including any person who, with his consent, is named in any registration
statement as about to become a director of the Company or a Guarantor) and to each person, if any, who controls the Company within
the meaning of the Securities Act, as well as to each officer and director of the other holders and to each person, if any, who
controls such other holders within the meaning of the Securities Act.

 

7.    Underwritten
Offerings.

 

Each holder of Registrable
Securities hereby agrees with the Company and each other such holder that no holder of Registrable Securities may participate in
any underwritten offering hereunder unless (a) the Company gives its prior written consent to such underwritten offering,
(b) the managing underwriter or underwriters thereof shall be designated by Electing Holders holding at least a majority in
aggregate principal amount of the Registrable Securities to be included in such offering, provided that such designated
managing underwriter or underwriters is or are reasonably acceptable to the Company, (c) each holder of Registrable Securities
participating in such underwritten offering agrees to sell such holder’s Registrable Securities on the basis provided in
any underwriting arrangements approved by the persons entitled selecting the managing underwriter or underwriters hereunder and
(d) each holder of Registrable Securities participating in such underwritten offering completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting
arrangements. The Company hereby agrees with each holder of Registrable Securities that, to the extent it consents to an underwritten
offering hereunder, it will negotiate in good faith and execute all indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements, including all commercially reasonable efforts to procure customary
legal opinions and auditor “comfort” letters.

 

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8.    Rule 144.

 

(a)    Facilitation
of Sales Pursuant to Rule 144.  The Company covenants to the holders of Registrable Securities that to the extent it shall
be required to do so under the Exchange Act, the Company shall timely file the reports required to be filed by it under the Exchange
Act or the Securities Act (including the reports under Sections 13 and 15(d) of the Exchange Act referred to in subparagraph
(c)(1) of Rule 144), and shall take such further action as any holder of Registrable Securities may reasonably request, all
to the extent required from time to time to enable such holder to sell Registrable Securities without registration under the Securities
Act within the limitations of the exemption provided by Rule 144. Upon the request of any holder of Registrable Securities
in connection with that holder’s sale pursuant to Rule 144, the Company shall deliver to such holder a written statement
as to whether it has complied with such requirements.

 

(b)    Availability
of Rule 144 Not Excuse for Obligations under Section 2. The fact that holders of Registrable Securities may become eligible
to sell such Registrable Securities pursuant to Rule 144 without such Securities having become Freely Transferable shall not (1)
cause such Securities to cease to be Registrable Securities or (2) excuse the Company’s and the Guarantors’ obligations
set forth in Section 2 of this Agreement, including without limitation the obligations in respect of an Exchange Offer, Shelf Registration
and Special Interest.

 

9.    Miscellaneous.

 

(a)    No
Inconsistent Agreements.  The Company represents, warrants, covenants and agrees that it has not granted, and shall not grant,
registration rights with respect to Registrable Securities, Exchange Securities or Securities, as applicable, or any other securities
which would be inconsistent with the terms contained in this Agreement.

 

(b)    Specific
Performance. The parties hereto acknowledge that there would be no adequate remedy at law if the Company fails to perform any
of its obligations hereunder and that the Purchasers and the holders from time to time of the Registrable Securities may be irreparably
harmed by any such failure, and accordingly agree that the Purchasers and such holders, in addition to any other remedy to which
they may be entitled at law or in equity, shall be entitled to compel specific performance of the obligations of the Company under
this Agreement in accordance with the terms and conditions of this Agreement, in any court of the United States or any State thereof
having jurisdiction. Time shall be of the essence in this Agreement.

 

(c)    Notices.
 All notices, requests, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been duly given when delivered by hand, if delivered personally, by facsimile or by courier, or three days after being
deposited in the mail (registered or certified mail, postage prepaid, return receipt requested) as follows: If to the Company,
to it at 745 Fifth Avenue, 19th Floor, New York, NY 10151, Attention: General Counsel,
and if to a holder, to the address of such holder set forth in the security register or other records of the Company, or to such
other address as the Company or any such holder may have furnished to the other in writing in accordance herewith, except that
notices of change of address shall be effective only upon receipt.

 

    	19

    	 

    

 

(d)    Parties
in Interest. All the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall
be enforceable by the parties hereto, the holders from time to time of the Registrable Securities and the respective successors
and assigns of the foregoing. In the event that any transferee of any holder of Registrable Securities shall acquire Registrable
Securities, in any manner, whether by gift, bequest, purchase, operation of law or otherwise, such transferee shall, without any
further writing or action of any kind, be deemed a beneficiary hereof for all purposes and such Registrable Securities shall be
held subject to all of the terms of this Agreement, and by taking and holding such Registrable Securities such transferee shall
be entitled to receive the benefits of, and be conclusively deemed to have agreed to be bound by all of the applicable terms and
provisions of this Agreement. If the Company shall so request, any such successor, assign or transferee shall agree in writing
to acquire and hold the Registrable Securities subject to all of the applicable terms hereof.

 

(e)    Survival.
The respective indemnities, agreements, representations, warranties and each other provision set forth in this Agreement or made
pursuant hereto shall remain in full force and effect regardless of any investigation (or statement as to the results thereof)
made by or on behalf of any holder of Registrable Securities, any director, officer or partner of such holder, or any controlling
person of any of the foregoing, and shall survive delivery of and payment for the Registrable Securities pursuant to the Purchase
Agreement, the transfer and registration of Registrable Securities by such holder and the consummation of an Exchange Offer.

 

(f)    Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

(g)    Headings.
The descriptive headings of the several Sections and paragraphs of this Agreement are inserted for convenience only, do not constitute
a part of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement.

 

(h)    Entire
Agreement; Amendments. This Agreement and the other writings referred to herein (including the Indenture and the form of Securities)
or delivered pursuant hereto which form a part hereof contain the entire understanding of the parties with respect to its subject
matter. This Agreement supersedes all prior agreements and understandings between the parties with respect to its subject matter.
This Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively) only by a written instrument duly executed by the Company and the holders of
at least a majority in aggregate principal amount of the Registrable Securities at the time outstanding. Each holder of any Registrable
Securities at the time or thereafter outstanding shall be bound by any amendment or waiver effected pursuant to this Section 9(h),
whether or not any notice, writing or marking indicating such amendment or waiver appears on such Registrable Securities or is
delivered to such holder.

 

(i)    Inspection.
For so long as this Agreement shall be in effect, this Agreement and a complete list of the names and addresses of all the record
holders of Registrable Securities shall be made available for inspection and copying on any Business Day by any holder of Registrable
Securities for proper purposes only (which shall include any purpose related to the rights of the holders of Registrable Securities
under the Securities, the Indenture and this Agreement) at the offices of the Company at the address thereof set forth in Section 9(c)
and at the office of the Trustee under the Indenture.

 

    	20

    	 

    

 

(j)    Counterparts.
This Agreement may be executed by the parties in counterparts, each of which shall be deemed to be an original, but all such respective
counterparts shall together constitute one and the same instrument.

 

(k)    Severability.
If any provision of this Agreement, or the application thereof in any circumstance, is held to be invalid, illegal or unenforceable
in any respect for any reason, the validity, legality and enforceability of such provision in every other respect and of the remaining
provisions contained in this Agreement shall not be affected or impaired thereby.

 

(l)    Agent
for Service; Submission to Jurisdiction. To the fullest extent permitted by applicable law, the
Company and each of the Guarantors (i) agrees that any legal suit, action or proceeding against the Company or any Guarantor brought
by any Electing Holder or by any person who controls any Electing Holder arising out of or based upon this Agreement or the transactions
contemplated thereby may be instituted exclusively in the U.S. District Court for the Southern District of New York, or if that
court does not have subject matter jurisdiction, any New York state court located in the Borough of Manhattan in the City of New
York (a “New York Court”), (ii) waives, to the fullest extent it may effectively do so, any objection that it
may now or hereafter have to the laying of venue of any such proceeding and (iii) submits to the non-exclusive jurisdiction of
such courts in any such suit, action or proceeding. The Company and each of the Guarantors has appointed the Company’s New
York office, currently located at 745 Fifth Avenue, 19th Floor, New York, NY 10151, as its authorized agent (the “Authorized
Agent”) upon whom process may be served in any such action arising out of or based on this Agreement or the transactions
contemplated hereby which may be instituted in any New York Court by any Electing Holder or any person who controls any Electing
Holder, expressly consents to the jurisdiction of any such court in respect of any such action, and waives any other requirements
of or objections to personal jurisdiction with respect thereto. Such appointment shall not be revoked without your prior written
consent. The Company and each of the Guarantors represents and warrants that its Authorized Agent has agreed to act as such an
agent for service of process and agrees to take any and all action, including the filing of any and all documents and instruments,
as may be necessary to continue such appointment in full force and effect as aforesaid. Service of process upon the Authorized
Agent and written notice of such service to the Company shall be deemed, in every respect, effective service of process upon the
Company and such Guarantors.

 

    	21

    	 

    

 

If the foregoing
is in accordance with your understanding, please sign and return to us four counterparts hereof, and upon the acceptance hereof
by you, on behalf of each of the Purchasers, this letter and such acceptance hereof shall constitute a binding agreement between
each of the Purchasers, the Guarantors and the Company. It is understood that your acceptance of this letter on behalf of each
of the Purchasers is pursuant to the authority set forth in a form of Agreement among Purchasers, the form of which shall be submitted
to the Company for examination upon request, but without warranty on your part as to the authority of the signers thereof.

 

	 	Very truly yours,
	 	 
	 	MDC Partners Inc.
	 	 
	 	By:	/s/ David Doft
	 	 	Name: David Doft
	 	 	Title:Chief Financial Officer

 

    	22

    	 

    

 

	 	Guarantors:
	 	 
	 	Accent Marketing Services, LLC
	 	Ashton Potter Canada Inc.
	 	Computer Composition of Canada LP
	 	Crispin Porter & Bogusky LLC
	 	Dotglu LLC
	 	KBP Holdings LLC
	 	kbs+p Canada LP
	 	Kirshenbaum Bond Senecal & Partners LLC
	 	Maxxcom (USA) Holdings Inc.
	 	Maxxcom Inc. (US)
	 	MDC Acquisition Inc.
	 	MDC Corporate (US) Inc.
	 	MDC/KBP Acquisition Inc.
	 	MF+P Acquisition Co.
	 	Redscout LLC
	 	RJ Palmer Partners LLC
	 	TargetCom LLC
	 	TC Acquisition Inc.
	 	Union Advertising Canada LP
	 	Varick Media Management LLC
	 	Yamamoto Moss Mackenzie, Inc.
	 	ZG Acquisition Inc.
	 	 
	 	By:	/s/ David Doft
	 	 	Name: David Doft
	 	 	Title:  Chief Financial Officer

 

    	23

    	 

    

 

	Accepted as of the date hereof:	 
	J.P. Morgan Securities LLC	 
	 	 
	By:	/s/ Earl Dowling	 
	Name: Earl Dowling	 
	Title:  Executive Director	 
	 	 
	On behalf of each of the Purchasers	 
	 	 	 

 

    	24

    	 

    

 

Exhibit A

 

MDC Partners Inc.

 

INSTRUCTION TO DTC PARTICIPANTS

 

(Date of Mailing)

 

URGENT - IMMEDIATE ATTENTION REQUESTED

 

DEADLINE
FOR RESPONSE: [DATE] *

 

The Depository Trust Company (“DTC”)
has identified you as a DTC Participant through which beneficial interests in MDC Partners Inc. (the “Company”)
11% Senior Notes due 2016 (the “Securities”) are held.

 

The Company is in the process of registering
the Securities under the Securities Act of 1933 for resale by the beneficial owners thereof. In order to have their Securities
included in the registration statement, beneficial owners must complete and return the enclosed Notice of Registration Statement
and Selling Securityholder Questionnaire.

 

It is important that beneficial owners
of the Securities receive a copy of the enclosed materials as soon as possible as their rights to have the Securities included
in the registration statement depend upon their returning the Notice and Questionnaire by [Deadline For Response]. Please
forward a copy of the enclosed documents to each beneficial owner that holds interests in the Securities through you. If you require
more copies of the enclosed materials or have any questions pertaining to this matter, please contact MDC Partners Inc., 745
Fifth Avenue, 19th Floor, New York, NY 10151; Telephone No.: (646) 429-1800.

 

 

 *Not
less than 28 calendar days from date of mailing.

 

    	A-1

    	 

    

 

MDC Partners Inc.

 

Notice of Registration Statement

and

Selling Securityholder Questionnaire

 

(Date)

 

Reference is hereby made to the Exchange
and Registration Rights Agreement (the “Exchange and Registration Rights Agreement”) among MDC Partners, Inc.
(the “Company”), the Guarantors named therein and the Purchasers named therein. Pursuant to the Exchange and
Registration Rights Agreement, the Company has filed or will file with the United States Securities and Exchange Commission (the
“Commission”) a registration statement on Form S-3 (the “Shelf Registration Statement”)
for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”),
of $80,000,000 the Company’s 11% Senior Notes due 2016 (the “Securities”) issued by the Company on December
10, 2012. A copy of the Exchange and Registration Rights Agreement has been filed as an exhibit to the Shelf Registration Statement
and can be obtained from the Commission’s website at www.sec.gov. All capitalized terms not otherwise defined herein
shall have the meanings ascribed thereto in the Exchange and Registration Rights Agreement.

 

Each beneficial owner of Registrable Securities
(as defined below) is entitled to have the Registrable Securities beneficially owned by it included in the Shelf Registration Statement.
In order to have Registrable Securities included in the Shelf Registration Statement, this Notice of Registration Statement and
Selling Securityholder Questionnaire (“Notice and Questionnaire”) must be completed, executed and delivered
to the Company’s counsel at the address set forth herein for receipt ON OR BEFORE [Deadline for Response]. Beneficial
owners of Registrable Securities who do not properly complete, execute and return this Notice and Questionnaire by such date (i) will
not be named as selling securityholders in the Shelf Registration Statement and (ii) may not use the Prospectus forming a
part thereof for resales of Registrable Securities.

 

Certain legal consequences arise from being
named as a selling securityholder in the Shelf Registration Statement and related Prospectus. Accordingly, holders and beneficial
owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named
or not being named as a selling securityholder in the Shelf Registration Statement and related Prospectus.

 

The term “Registrable Securities”
is defined in the Exchange and Registration Rights Agreement.

 

    	A-2

    	 

    

 

 

ELECTION

 

The undersigned holder (the “Selling
Securityholder”) of Registrable Securities hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3). The undersigned, by signing and returning this Notice and
Questionnaire, agrees to be bound with respect to such Registrable Securities by the terms and conditions of this Notice and Questionnaire
and the Exchange and Registration Rights Agreement, including, without limitation, Section 6 of the Exchange and Registration
Rights Agreement, as if the undersigned Selling Securityholder were an original party thereto. In addition, the undersigned, by
signing and returning this Notice and Questionnaire, represents and warrants that the representation set forth in Section 3(h)
of the Exchange and Registration Rights Agreement is true and correct as of the date hereof.

 

Pursuant to the Exchange and Registration
Rights Agreement, the undersigned has agreed to indemnify and hold harmless the Company, its officers who sign any Shelf Registration
Statement, and each person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act
or Section 20 of the Exchange Act of 1934, as amended (the “Exchange Act”), against certain loses arising
out of an untrue statement, or the alleged untrue statement, of a material fact in the Shelf Registration Statement or the related
prospectus or the omission, or alleged omission, to state a material fact required to be stated in such Shelf Registration Statement
or the related prospectus, but only to the extent such untrue statement or omission, or alleged untrue statement or omission, was
made in reliance on and in conformity with the information provided in this Notice and Questionnaire.

 

Upon any sale of Registrable Securities
pursuant to the Shelf Registration Statement, the Selling Securityholder will be required to deliver to the Company and Trustee
the Notice of Transfer set forth in Appendix A to the Prospectus and as Exhibit B to the Exchange and Registration Rights
Agreement.

 

The Selling Securityholder hereby provides
the following information to the Company and represents and warrants that such information is accurate and complete:

  

    	A-3

    	 

    

 

QUESTIONNAIRE

 

	(1)	(a)	Full legal name of Selling Securityholder:

 

 

		(b)	Full legal name of registered Holder (if not the same
as in (a) above) of Registrable Securities listed in Item (3) below:

 

 

		(c)	Full legal name of DTC Participant (if applicable and
if not the same as (b) above) through which Registrable Securities listed in Item (3) below are held:

 

 

		(2)	Address for notices to Selling Securityholder:

 

	 	 	 
	 	 	 
	 	 	 
	 	Telephone:	 	 
	 	Fax:	 	 
	 	Contact Person:	 	 

	 	E-mail for Contact Person:	 	 

 

		(3)	Beneficial Ownership of Securities:

 

			Except as set forth below in this Item (3), the undersigned does not beneficially own any
Securities.

 

		(a)	Principal amount of Registrable Securities beneficially owned:	 

	 	CUSIP No(s). of such Registrable Securities:	 

 

		(b)	Principal amount of Securities other than Registrable
Securities beneficially owned:

 

	 	CUSIP No(s). of such other Securities:	 

 

		(c)	Principal amount of Registrable Securities that the undersigned
wishes to be included in the

	 	Shelf Registration Statement:	 

 CUSIP
No(s). of such Registrable Securities to be included in the Shelf Registration Statement:

 

 

		(4)	Beneficial Ownership of Other Securities of the Company:

 

			Except as set forth below in this Item (4), the undersigned Selling Securityholder is not
the beneficial or registered owner of any other securities of the Company, other than the Securities listed above in Item (3).
	 	 	 

			State any exceptions here:

 

	 	 
	 	 
	 	 

 

    	A-4

    	 

    

 

		(5)	Individuals who exercise dispositive powers with respect
to the Securities:

 

		 	If the Selling Securityholder is not an entity that
is required to file reports with the Commission pursuant to Section 13 or 15(d) of the Exchange Act (a “Reporting
Company”), then the Selling Securityholder must disclose the name of the natural person(s) who exercise sole or shared
dispositive powers with respect to the Securities. Selling Securityholders should disclose the beneficial holders, not nominee
holders or other such others of record. In addition, the Commission has provided guidance that Rule 13d-3 of the Securities
Exchange Act of 1934 should be used by analogy when determining the person or persons sharing voting and/or dispositive powers
with respect to the Securities.

 

		(a)	Is the holder a Reporting Company?

 

Yes                                             No               

  

If “No”, please answer Item
(5)(b).

 

		(b)	List below the individual or individuals who exercise
dispositive powers with respect to the Securities:

  

	 	 
	 	 
	 	 
	 	 
	 	 

 

			Please note that the names of the persons listed in (b) above will be included in the Shelf
Registration Statement and related Prospectus.

 

		(6)	Relationships with the Company:

 

			Except as set forth below, neither the Selling Securityholder nor any of its affiliates, officers,
directors or principal equity holders (5% or more) has held any position or office or has had any other material relationship with
the Company (or its predecessors or affiliates) during the past three years.
	 	 	 

			State any exceptions here:

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

		(7)	Plan of Distribution:

 

			Except as set forth below, the undersigned Selling Securityholder intends to distribute the
Registrable Securities listed above in Item (3) only as follows (if at all): Such Registrable Securities may be sold from time
to time directly by the undersigned Selling Securityholder. Such Registrable Securities may be sold in one or more transactions
at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the time of sale, or at negotiated
prices. Such sales may be effected in transactions (which may involve crosses or block transactions) (i) on any national securities
exchange or quotation service on which the Registered Securities may be listed or quoted at the time of sale, (ii) in the over-the-counter
market, (iii) in transactions otherwise than on such exchanges or services or in the over-the-counter market, or (iv) through the
writing of options. In connection with sales of the Registrable Securities or otherwise, the Selling Securityholder may enter into
hedging transactions with broker-dealers, which may in turn engage in short sales of the Registrable Securities in the course of
hedging the positions they assume. The Selling Securityholder may also sell Registrable Securities short and deliver Registrable
Securities to close out such short positions, or loan or pledge Registrable Securities to broker-dealers that in turn may sell
such securities.

 

    	A-5

    	 

    

 

			State any exceptions here:

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

Note: In no event may such
method(s) of distribution take the form of an underwritten offering of Registrable Securities without the prior written agreement
of the Company.

 

		(8)	Broker-Dealers:

 

			The Commission requires that all Selling Securityholders that are registered broker-dealers
or affiliates of registered broker-dealers be so identified in the Shelf Registration Statement. In addition, the Commission requires
that all Selling Securityholders that are registered broker-dealers be named as underwriters in the Shelf Registration Statement
and related Prospectus, even if they did not receive the Registrable Securities as compensation for underwriting activities.

 

		(a)	State whether the undersigned Selling Securityholder
is a registered broker-dealer:

 

Yes                                             No               

 

		(b)	If the answer to (a) is “Yes”, you must answer
(i) and (ii) below, and (iii) below if applicable. Your answers to (i) and (ii) below, and (iii) below if applicable, will
be included in the Shelf Registration Statement and related Prospectus.

 

		(i)	Were the Securities acquired as compensation for underwriting
activities?

 

Yes                                             No               

 

			If you answered “Yes”, please provide a brief description of the transaction(s) in
which the Securities were acquired as compensation:

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

		(ii)	Were the Securities acquired for investment purposes?

 

Yes                                             No               

 

		(iii)	If you answered “No” to both (i) and (ii), please explain the Selling Securityholder’s
reason for acquiring the Securities:

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

    	A-6

    	 

    

 

		(c)	State whether the undersigned Selling Securityholder
is an affiliate of a registered broker-dealer and, if so, list the name(s) of the broker-dealer affiliate(s):

 

Yes                                             No               

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

		(d)	If you answered “Yes” to question (c) above:

 

		(i)	Did the undersigned Selling Securityholder purchase Registrable
Securities in the ordinary course of business?

 

Yes                                             No               

 

		 	If the answer is “No” to question (d)(i),
provide a brief explanation of the circumstances in which the Selling Securityholder acquired the Registrable Securities:

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

		(ii)	At the time of the purchase of the Registrable Securities,
did the undersigned Selling Securityholder have any agreements, understandings or arrangements, directly or indirectly, with any
person to dispose of or distribute the Registrable Securities?

 

Yes                                             No               

 

		 	If the answer is “Yes” to question (d)(ii),
provide a brief explanation of such agreements, understandings or arrangements:

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

If the answer is “No”
to Item (8)(d)(i) or “Yes” to Item (8)(d)(ii), you will be named as an underwriter in the Shelf Registration Statement
and the related Prospectus.

 

		(9)	Hedging and short sales:

 

		(a)	State whether the undersigned Selling Securityholder
has or will enter into “hedging transactions” with respect to the Registrable Securities:

 

Yes                                             No               

 

		 	If “Yes”, provide below a complete description
of the hedging transactions into which the undersigned Selling Securityholder has entered or will enter and the purpose of such
hedging transactions, including the extent to which such hedging transactions remain in place:

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

    	A-7

    	 

    

 

		(b)	Set forth below is Interpretation A.65 of the Commission’s
July 1997 Manual of Publicly Available Interpretations regarding short selling:

 

		 	“An issuer filed a Form S-3 registration statement
for a secondary offering of common stock which is not yet effective. One of the selling shareholders wanted to do a short sale
of common stock “against the box” and cover the short sale with registered shares after the effective date. The issuer
was advised that the short sale could not be made before the registration statement becomes effective, because the shares underlying
the short sale are deemed to be sold at the time such sale is made. There would, therefore, be a violation of Section 5 if
the shares were effectively sold prior to the effective date.”

 

By returning this Notice and Questionnaire,
the undersigned Selling Securityholder will be deemed to be aware of the foregoing interpretation.

 

*          *          *          *          *

 

By signing below, the Selling Securityholder
acknowledges that it understands its obligation to comply, and agrees that it will comply, with the provisions of the Exchange
Act, particularly Regulation M (or any successor rule or regulation).

 

The Selling Securityholder hereby acknowledges
its obligations under the Exchange and Registration Rights Agreement to indemnify and hold harmless the Company and certain other
persons as set forth in the Exchange and Registration Rights Agreement.

 

In the event that the Selling Securityholder
transfers all or any portion of the Registrable Securities listed in Item (3) above after the date on which such information
is provided to the Company, the Selling Securityholder agrees to notify the transferee(s) at the time of the transfer of its rights
and obligations under this Notice and Questionnaire and the Exchange and Registration Rights Agreement.

 

By signing below, the Selling Securityholder
consents to the disclosure of the information contained herein in its answers to Items (1) through (9) above and the inclusion
of such information in the Shelf Registration Statement and related Prospectus. The Selling Securityholder understands that such
information will be relied upon by the Company in connection with the preparation of the Shelf Registration Statement and related
Prospectus.

 

In accordance with the Selling Securityholder’s
obligation under Section 3(d) of the Exchange and Registration Rights Agreement to provide such information as may be required
by law for inclusion in the Shelf Registration Statement, the Selling Securityholder agrees to promptly notify the Company of any
inaccuracies or changes in the information provided herein which may occur subsequent to the date hereof at any time while the
Shelf Registration Statement remains in effect and to provide such additional information that the Company may reasonably request
regarding such Selling Securityholder and the intended method of distribution of Registrable Securities in order to comply with
the Securities Act. Except as otherwise provided in the Exchange and Registration Rights Agreement, all notices hereunder and pursuant
to the Exchange and Registration Rights Agreement shall be made in writing, by hand-delivery, first-class mail, or air courier
guaranteeing overnight delivery as follows:

 

    	A-8

    	 

    

 

	 	(i) To the Company:	 
	 	 	MDC Partners Inc.
	 	 	745 Fifth Avenue
	 	 	19th Floor
	 	 	New York, NY 10151
	 	 	Attention: General Counsel
	 	 	 
	 	(ii) With a copy to:	 
	 	 	Simpson Thacher & Bartlett LLP
	 	 	425 Lexington Avenue
	 	 	New York, NY 10017
	 	 	Attention: Risë Norman, Esq.

 

Once this Notice and Questionnaire is executed
by the Selling Securityholder and received by the Company’s counsel, the terms of this Notice and Questionnaire, and the
representations and warranties contained herein, shall be binding on, shall inure to the benefit of and shall be enforceable by
the respective successors, heirs, personal representatives, and assigns of the Company and the Selling Securityholder (with respect
to the Registrable Securities beneficially owned by such Selling Securityholder and listed in Item (3) above). This Notice and
Questionnaire shall be governed in all respects by the laws of the State of New York.

 

    	A-9

    	 

    

 

IN WITNESS WHEREOF, the undersigned, by
authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized
agent.

 

Dated:                                         

 

	 	 
	 	Selling Securityholder
	 	 
	 	(Print/type full legal name of beneficial owner of Registrable Securities)
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

PLEASE RETURN THE COMPLETED AND EXECUTED
NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY’S COUNSEL AT:

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, NY 10017

Attention: Risë Norman, Esq.

 

    	A-10

    	 

    

 

Exhibit B

 

NOTICE OF TRANSFER PURSUANT TO REGISTRATION
STATEMENT

Bank of New York Mellon

MDC Partners Inc.

c/o Bank of New York Mellon

[Address of Trustee]

 

Attention: Trust Officer

 

	 	Re:	MDC Partners Inc. (the “Company”)
	 	 	11% Senior Notes due 2016

 

Dear Sirs:

 

Please be advised that                                                                
has transferred $                                                        aggregate principal amount of the above-referenced Notes pursuant to an effective Registration
Statement on Form [ ] (File No. 333- ) filed by the Company.

 

We hereby certify that the prospectus delivery
requirements, if any, of the Securities Act of 1933, as amended, have been satisfied and that the above-named beneficial owner
of the Notes is named as a “Selling Holder” in the Prospectus dated [date] or in supplements thereto, and that
the aggregate principal amount of the Notes transferred are the Notes listed in such Prospectus opposite such owner’s name.

 

Dated:

 

	 	Very truly yours,
	 	 
	 	 	 
	 	 	(Name)
	 	By:	 
	 	 	(Authorized Signature)

 

    	Endnotes-1

    	 

    

 

Exhibit C

 

List of Guarantors
and Jurisdictions of Formation

  

	 	 	Subsidiary	 	Jurisdiction of Formation
	 	 	 	 	 
	1.	 	Accent Marketing Services, LLC	 	Delaware
	 	 	 	 	 
	2.	 	Ashton Potter Canada Inc.	 	Ontario
	 	 	 	 	 
	3.	 	Computer Composition of Canada LP	 	Ontario
	 	 	 	 	 
	4.	 	Crispin Porter & Bogusky LLC	 	Delaware
	 	 	 	 	 
	5.	 	Dotglu LLC	 	Delaware
	 	 	 	 	 
	6.	 	KBP Holdings LLC	 	Delaware
	 	 	 	 	 
	7.	 	kbs+p Canada LP	 	Ontario
	 	 	 	 	 
	8.	 	Kirshenbaum Bond Senecal & Partners LLC	 	Delaware
	 	 	 	 	 
	9.	 	Maxxcom (USA) Holdings Inc.	 	Delaware
	 	 	 	 	 
	10.	 	Maxxcom Inc. (US)	 	Delaware
	 	 	 	 	 
	11.	 	MDC Acquisition Inc.	 	Delaware
	 	 	 	 	 
	12.	 	MDC Corporate (US) Inc.	 	Delaware
	 	 	 	 	 
	13.	 	MDC/KBP Acquisition Inc.	 	Delaware
	 	 	 	 	 
	14.	 	MF+P Acquisition Co.	 	Delaware
	 	 	 	 	 
	15.	 	Redscout LLC	 	Delaware
	 	 	 	 	 
	16.	 	RJ Palmer Partners LLC	 	Delaware
	 	 	 	 	 
	17.	 	TargetCom LLC	 	Delaware
	 	 	 	 	 
	18.	 	TC Acquisition Inc.	 	Delaware
	 	 	 	 	 
	19.	 	Union Advertising Canada LP	 	Ontario
	 	 	 	 	 
	20.	 	Varick Media Management LLC	 	Delaware
	 	 	 	 	 
	21.	 	Yamamoto Moss Mackenzie, Inc.	 	Delaware
	 	 	 	 	 
	22.	 	ZG Acquisition Inc.	 	Delaware

 

    	Endnotes-2

    	 

    

 

Exhibit D

	Initial Purchasers
	 
	J.P. Morgan Securities LLC
	Goldman, Sachs & Co.
	BMO Capital Markets Corp.
	Deutsche Bank Securities Inc.
	RBC Capital Markets, LLC
	 

 

    	Endnotes-3CREDIT AGREEMENT

 

dated as of

 

December 7, 2012

 

among

 

Hurco
Companies, Inc.

 

The Lenders Party Hereto

 

and

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

 

  

	J.P. MORGAN SECURITIES LLC,
	as Sole Bookrunner and Sole Lead Arranger
	 

  

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	ARTICLE I           Definitions	1
	 	 
	SECTION 1.01.	Defined Terms	1
	SECTION 1.02.	Classification of Loans and Borrowings	19
	SECTION 1.03.	Terms Generally	19
	SECTION 1.04.	Accounting Terms; GAAP	19
	 	 	 
	ARTICLE II           The Credits	20
	 	 
	SECTION 2.01.	Commitments	20
	SECTION 2.02.	Loans and Borrowings	20
	SECTION 2.03.	Requests for Revolving Borrowings	21
	SECTION 2.04.	[Intentionally Omitted]	21
	SECTION 2.05.	Letters of Credit	22
	SECTION 2.06.	Funding of Borrowings	25
	SECTION 2.07.	Interest Elections	26
	SECTION 2.08.	Termination and Reduction of Commitments	27
	SECTION 2.09.	Repayment of Loans; Evidence of Debt	28
	SECTION 2.10.	Prepayment of Loans	28
	SECTION 2.11.	Fees	29
	SECTION 2.12.	Interest	30
	SECTION 2.13.	Alternate Rate of Interest	30
	SECTION 2.14.	Increased Costs	31
	SECTION 2.15.	Break Funding Payments	33
	SECTION 2.16.	Taxes	33
	SECTION 2.17.	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	37
	SECTION 2.18.	Mitigation Obligations; Replacement of Lenders.	38
	SECTION 2.19.	Defaulting Lenders.	39
	 	 	 
	ARTICLE III           Representations and Warranties	41
	 	 
	SECTION 3.01.	Organization; Powers	41
	SECTION 3.02.	Authorization; Enforceability	41
	SECTION 3.03.	Governmental Approvals; No Conflicts	41
	SECTION 3.04.	Financial Condition; No Material Adverse Change	42
	SECTION 3.05.	Properties	42
	SECTION 3.06.	Litigation and Environmental Matters	42
	SECTION 3.07.	Compliance with Laws and Agreements	42
	SECTION 3.08.	Investment Company Status	43
	SECTION 3.09.	Taxes	43
	SECTION 3.10.	ERISA	43
	SECTION 3.11.	Disclosure	43

 

    	i

    	 

    

 

	SECTION 3.12.	Subsidiaries	43
	SECTION 3.13.	Regulation U	44
	 	 	 
	ARTICLE IV           Conditions	44
	 	 
	SECTION 4.01.	Effective Date	44
	SECTION 4.02.	Each Credit Event	45
	 	 	 
	ARTICLE V           Affirmative Covenants	45
	 	 
	SECTION 5.01.	Financial Statements; Ratings Change and Other Information	45
	SECTION 5.02.	Notices of Material Events	47
	SECTION 5.03.	Existence; Conduct of Business	47
	SECTION 5.04.	Payment of Obligations	47
	SECTION 5.05.	Maintenance of Properties; Insurance	48
	SECTION 5.06.	Books and Records; Inspection Rights	48
	SECTION 5.07.	Compliance with Laws	48
	SECTION 5.08.	Use of Proceeds and Letters of Credit	48
	SECTION 5.09.	Subsidiary Guaranty	48
	SECTION 5.10.	Further Assurances	48
	 	 	 
	ARTICLE VI           Negative Covenants	49
	 	 
	SECTION 6.01.	Indebtedness	49
	SECTION 6.02.	Liens	50
	SECTION 6.03.	Fundamental Changes.	50
	SECTION 6.04.	Investments, Loans, Advances, Guarantees and Acquisitions	51
	SECTION 6.05.	Restricted Payments	53
	SECTION 6.06.	Transactions with Affiliates	53
	SECTION 6.07.	Restrictive Agreements	53
	SECTION 6.08.	Minimum Working Capital	53
	SECTION 6.09.	Minimum Tangible Net Worth	54
	SECTION 6.10.	Sale and Leaseback Transactions	54
	SECTION 6.11.	Banking Relationship	54
	 	 	 
	ARTICLE VII           Events of Default	54
	 	 	 
	ARTICLE VIII           The Administrative Agent	56
	 	 
	SECTION 8.01.	Appointment	56
	SECTION 8.02.	Rights and Power	57
	SECTION 8.03.	Exculpatory Provisions	57
	SECTION 8.04.	Administrative Agent Reliance	57
	SECTION 8.05.	Delegation of Duties	57
	SECTION 8.06.	Resignation	58
	SECTION 8.07.	Lender Non-Reliance	58
	SECTION 8.08.	Other Titles	58

 

    	ii

    	 

    

 

	ARTICLE IX         Miscellaneous	58
	 	 	 
	SECTION 9.01.	Notices	58
	SECTION 9.02.	Waivers; Amendments	59
	SECTION 9.03.	Expenses; Indemnity; Damage Waiver	60
	SECTION 9.04.	Successors and Assigns	62
	SECTION 9.05.	Survival	65
	SECTION 9.06.	Counterparts; Integration; Effectiveness	65
	SECTION 9.07.	Severability	66
	SECTION 9.08.	Right of Setoff	66
	SECTION 9.09.	Governing Law; Jurisdiction; Consent to Service of Process	66
	SECTION 9.10.	WAIVER OF JURY TRIAL	67
	SECTION 9.11.	Headings	67
	SECTION 9.12.	Confidentiality	67
	SECTION 9.13.	Interest Rate Limitation	68
	SECTION 9.14.	USA PATRIOT Act	68
	SECTION 9.15.	No Fiduciary Duty	69

 

SCHEDULES:

 

Schedule 1.01– Inactive Subsidiaries

Schedule 2.01 – Commitments

Schedule 3.12 – Subsidiaries

Schedule 6.01 – Existing Indebtedness

Schedule 6.02 – Existing Liens

Schedule 6.04 – Existing Investments

Schedule 6.07 – Existing Restrictions

 

EXHIBITS:

 

Exhibit A — Form of Assignment and Assumption

Exhibit B-1 — U.S. Tax Certificate (For Non-U.S. Lenders
that are not Partnerships for U.S. Federal; Income Tax Purposes

Exhibit B-2 — U.S. Tax Certificate (For Non-U.S. Lenders
that are Partnerships for U.S. Federal; Income Tax Purposes

Exhibit B-3 — U.S. Tax Certificate (For Non-U.S. Participants
that are not Partnerships for U.S. Federal; Income Tax Purposes

Exhibit B-4 — U.S. Tax Certificate (For Non-U.S. Participants
that are Partnerships for U.S. Federal; Income Tax Purposes

 

 

    	iii

    	 

    

 

CREDIT AGREEMENT dated
as of December 7, 2012, among Hurco Companies, Inc., the LENDERS party hereto, and
JPMORGAN CHASE BANK, N.A., as Administrative Agent.

 

The parties hereto agree
as follows:

 

ARTICLE I

 

Definitions

 

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

 

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

 

"Acquisition"
means any transaction, or any series of related transactions, consummated on or after the Effective Date, by which the Borrower
or any of its Subsidiaries (i) acquires any going business or all or substantially all of the assets of any firm, corporation or
limited liability company, or division thereof, whether through purchase of assets, merger or otherwise or (ii) directly or indirectly
acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes)
of the securities of a corporation which have ordinary voting power for the election of directors (other than securities having
such power only by reason of the happening of a contingency) or a majority (by percentage or voting power) of the outstanding ownership
interests of a partnership or limited liability company.

 

“Adjusted LIBO
Rate” means, for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of
1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

 

“Administrative
Agent” means JPMCB, in its capacity as administrative agent for the Lenders hereunder.

 

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

 

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

 

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

 

    	1

    	 

    

 

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

 

“Applicable
Percentage” means, with respect to any Lender, the percentage of the total Commitments represented by such Lender’s
Commitment; provided that in the case of Section 2.19 when a Defaulting Lender shall exist, “Applicable Percentage”
shall mean the percentage of the total Commitments (disregarding any Defaulting Lender’s Commitment) represented by such
Lender’s Commitment. If the Commitments have terminated or expired, the Applicable Percentages shall be determined based
upon the Commitments most recently in effect, giving effect to any assignments and to any Lender’s status as a Defaulting
Lender at the time of determination.

 

“Applicable
Rate” means, for any day, (a) with respect to any ABR Loan, 1.0% and (b) with respect to any Eurodollar Loan, 1.0%.

 

“Approved Fund”
means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar
extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate
of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

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

 

“Availability
Period” means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and
the date of termination of the Commitments in accordance with Section 2.08 or Article VII.

 

“Bankruptcy
Event” means, with respect to any Person, such Person becomes the subject of a bankruptcy or insolvency proceeding, or
has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged
with the reorganization or liquidation of its business appointed for it, or, in the good faith determination of the Administrative
Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding
or appointment, provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition
of any ownership interest, in such Person by a Governmental Authority or instrumentality thereof, provided, further, that such
ownership interest does not result in or provide such Person with immunity from the jurisdiction of courts within the United States
or from the enforcement of judgments or writs of attachment on its assets or permit such Person (or such Governmental Authority
or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.

 

    	2

    	 

    

 

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

 

“Borrower”
means Hurco Companies, Inc., an Indiana corporation.

 

“Borrowing”
means Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as
to which a single Interest Period is in effect.

 

“Borrowing Request”
means a request by the Borrower for a Revolving Borrowing in accordance with Section 2.03.

 

“Business Day”
means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required
by law to remain closed; provided that, when used in connection with a Eurodollar Loan, the term “Business Day”
shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market.

 

“Capital Lease
Obligations” of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to
be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations
shall be the capitalized amount thereof determined in accordance with GAAP.

 

"Capital Stock"
of any person means any equity securities, any securities exchangeable for or convertible into equity securities, and any warrants,
rights, or other options to purchase or otherwise acquire such securities.

 

“Change in Law”
means the occurrence, after the date of this Agreement (or with respect to any Lender, if later, the date on which such Lender
becomes a Lender), of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b)
any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental
Authority, or (c) the making or issuance of any request, rules,
guideline, requirement or directive (whether or not having the force of law) by any Governmental Authority;
provided however, that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection
Act and all requests, rules, guidelines, requirements and directives thereunder, issued in connection therewith or in implementation
thereof and (ii) all requests, rules, guidelines, requirements and directives promulgated by the Bank
for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United
States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change
in Law” regardless of the date enacted, adopted, issued or implemented.

 

    	3

    	 

    

 

“Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving
Loans.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

“Commitment”
means, with respect to each Lender, the commitment of such Lender to make Revolving Loans and to acquire participations in Letters
of Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit Exposure
hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time
to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s Commitment
is set forth on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment,
as applicable. The initial aggregate amount of the Lenders’ Commitments is $12,500,000.

 

“Connection
Income Taxes” means Other Connection Taxes that are imposed on or measured by Net Income (however denominated) or that
are franchise Taxes or branch profits Taxes.

 

“Consolidated”
means, with respect to any Person, the accounts of such Person and its Subsidiaries consolidated in accordance with GAAP.

 

“Consolidated
Current Assets” means, with respect to any Person at any date, the total Consolidated current assets of such Person at
such date.

 

“Consolidated
Current Liabilities” means, with respect to any Person at any date, all liabilities of such Person and its Subsidiaries
at such date that should be classified as current liabilities on a Consolidated balance sheet of such Person; provided,
however, that “Consolidated Current Liabilities” shall exclude the principal amount of the Loans then
outstanding.

 

"Contingent Obligation"
of a Person means any agreement, undertaking or arrangement by which such Person assumes, guarantees, endorses, contingently agrees
to purchase or provide funds for the payment of, or otherwise becomes or is contingently liable upon, the obligation or liability
of any other Person, or agrees to maintain the net worth or working capital or other financial condition of any other Person, or
otherwise assures any creditor of such other Person against loss, including, without limitation, any comfort letter, operating
agreement, take-or-pay contract or the obligations of any such Person as general partner of a partnership with respect to the liabilities
of the partnership.

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

 

“Credit Documents”
means this Agreement and, after the execution and delivery thereof pursuant to the terms of this Agreement, each Note, and the
Subsidiary Guaranty, each amendment or waiver hereof or hereunder and each other document or agreement executed and delivered from
time to time by any Credit Party in connection with or pursuant to the terms of this Agreement or any other Credit Document.

 

    	4

    	 

    

 

“Credit Party”
means the Borrower and each Subsidiary Guarantor.

 

“Default”
means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured
or waived, become an Event of Default.

 

“Defaulting
Lender” means any Lender that (a) has failed, within two Business Days of the date required to be funded or paid, to
(i) fund any portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or (iii) pay over to any Lender
Party any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative
Agent in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to
funding (specifically identified and including the particular default, if any) has not been satisfied, (b) has notified the Borrower
or any Lender Party in writing, or has made a public statement to the effect, that it does not intend or expect to comply with
any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based
on such Lender’s good faith determination that a condition precedent (specifically identified and including the particular
default, if any) to funding a loan under this Agreement cannot be satisfied) or generally under other agreements in which it commits
to extend credit, (c) has failed, within three Business Days after request by a Lender Party, acting in good faith, to provide
a certification in writing from an authorized officer of such Lender that it will comply with its obligations (and is financially
able to meet such obligations) to fund prospective Loans and participations in then outstanding Letters of Credit under this Agreement,
provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Lender Party’s receipt
of such certification in form and substance satisfactory to it and the Administrative Agent, or (d) has become the subject of a
Bankruptcy Event.

 

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

 

“Domestic Subsidiary”
shall mean, as to any Person, any Subsidiary of such Person incorporated or organized in the United States or any State or territory
thereof.

 

“Effective Date”
means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02).

 

“Environmental
Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation
or reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to health and safety
matters.

 

“Environmental
Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based
upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal
of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials
into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

 

    	5

    	 

    

 

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

 

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

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under
Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Section 414 of the Code.

 

“ERISA Event”
means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect
to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under
Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the
PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer
any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or
partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice,
or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal
Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning
of Title IV of ERISA.

 

“Eurodollar”,
when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate, except in the case in which the Adjusted LIBO Rate is used
to determine the Alternate Base Rate.

 

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

 

    	6

    	 

    

 

“Excluded Taxes”
means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment
to a Recipient, (a) Taxes imposed on or measured by Net Income (however denominated), franchise Taxes, and branch profits Taxes,
in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in
the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision
thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. Federal withholding Taxes imposed on amounts
payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in
effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment
request by the Borrower under Section 2.18(b)) or (ii) such Lender changes its lending office, except in each case to the extent
that, pursuant to Section 2.16, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately
before such Lender acquired the applicable interest in a Loan or Commitment or to such Lender immediately before it changed its
lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.16(f) and (d) any U.S. Federal
withholding Taxes imposed under FATCA.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is
substantively comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations
thereof.

 

“Federal Funds
Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of
the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers,
as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published
for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for
such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected
by it.

 

“Financial Officer”
means the chief financial officer, principal accounting officer, treasurer or controller of the Borrower.

 

“Foreign Lender”
means (a) if the Borrower is a U.S. Person, a Lender, with respect to such Borrower, that is not a U.S. Person, and (b) if the
Borrower is not a U.S. Person, a Lender, with respect to such Borrower, that is resident or organized under the laws of a jurisdiction
other than that in which the Borrower is resident for tax purposes.

 

“Foreign Subsidiary”
means any Subsidiary that is incorporated or organized under the laws of any jurisdiction other than the United States of America,
any State thereof or the District of Columbia.

 

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

 

“Governmental
Authority” means the government of the United States of America, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

    	7

    	 

    

 

“Guarantee”
of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing
or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase
or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to
advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities
or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable
the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit
or letter of guaranty issued to support such Indebtedness or obligation; provided, that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee made by any guarantor shall
be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which
such Guarantee is made and (b) the maximum amount for which such guarantor may be liable pursuant to the terms of the instrument
embodying such Guarantee, unless (in the case of a primary obligation that is not Indebtedness) such primary obligation and the
maximum amount for which such guarantor may be liable are not stated or determinable, in which case the amount of such Guarantee
shall be such guarantor’s maximum reasonably anticipated liability in respect thereof as determined by the Borrower in good
faith.

 

“Hazardous Materials”
means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including
petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious
or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

 

“Hurco BV”
means Hurco B.V., a limited liability company organized under the laws of the Netherlands, and an indirect wholly-owned subsidiary
of the Borrower.

 

"Hurco Deferred
Compensation Plan" means the unfunded plan adopted by the Borrower for the purpose of providing deferred compensation
for a select group of management personnel or other employees of the Borrower, as evidenced by the CORPORATE plan for Retirement
Select Plan and Basic Plan Document effective as of July 1, 1996, as amended, and the related Hurco Deferred Compensation Plan
Trust Agreement.

 

"Hurco Deferred
Compensation Plan Trust Agreement" means the Trust Agreement dated as of April 11, 1996, between the Borrower and Fidelity
Management Trust Company, as amended.

 

“Hurco Europe”
means Hurco Europe Limited, a corporation organized under the laws of England and Wales and a Subsidiary of the Borrower.

 

“Hurco GmbH”
means Hurco GmbH Werkzeugmaschinen CIM-Bausteine Vertreib und Service, a corporation organized under the laws of the Federal Republic
of Germany, and an indirect wholly-owned subsidiary of the Borrower.

 

    	8

    	 

    

 

“Hurco GmbH
Facility” means a credit facility of Hurco GmbH and Hurco BV in a maximum principal amount of One Million Five Hundred
Thousand Euros obtained from Commerzebank AG Munich Branch or any affiliate or successor thereof which may include an unsecured
guaranty of payment by the Borrower, and any modification, replacement or refinancing thereof so long as the maximum principal
amount does not exceed Three Million Euros.

 

“Hurco Taiwan”
means Hurco Manufacturing Ltd., Taiwan, a corporation organized under the laws of Taiwan and a Subsidiary of the Borrower.

 

"Hurco UK Guaranty”
means the guaranty dated on or about the Effective Date, executed by the Borrower in favor of JPMCB, by which the Borrower has
guaranteed to JPMCB the obligations of Hurco Europe under the UK Facility, as it may be amended, modified or confirmed and in effect
from time to time.

 

“Hurco Taiwan
Guaranty” means the guaranty dated on or about the Effective Date, executed by the Borrower in favor of JPMCB, by which
the Borrower has guaranteed to JPMCB the obligations of Hurco Taiwan under the Taiwan Facility, as it may be amended, modified
or confirmed and in effect from time to time.

 

"Inactive Subsidiary"
means a Subsidiary of the Borrower not actively engaged in business, and which has assets with a book value less than or equal
to $10,000. Schedule 1.01 lists all Inactive Subsidiaries existing on the Effective Date. Notwithstanding anything to the contrary,
so long as Hurco Technology, Inc., an Indiana corporation, holds only patents and other intellectual property and has total annual
revenues of not greater than $500,000, all of which is derived from licensing of that intellectual property, it shall be deemed
an Inactive Subsidiary.

 

“Indebtedness”
of a Person means, without duplication, such Person's (i) obligations for borrowed money (including without limitation, with respect
to the Borrower, all reimbursement obligations for LC Exposure and all Rate Management Obligations), (ii) obligations representing
the deferred purchase price of property or services (other than accounts payable arising in the ordinary course of such Person's
business payable on terms customary in the trade), (iii) obligations, whether or not assumed, secured by Liens or payable out of
the proceeds or production from property now or hereafter owned or acquired by such Person, (iv) obligations which are evidenced
by notes, acceptances, or other instruments, (v) obligations of such Person to purchase securities or other property arising out
of or in connection with the sale of the same or substantially similar securities or property, (vi) Capital Lease Obligations,
(vii) all obligations of such Person to purchase goods, property, or services where payment therefor is required, regardless of
whether delivery of such goods or property or the performance of such services is ever made or tendered (generally referred to
as "take or pay contracts"), (viii) all liabilities of such person in respect of unfunded liabilities under any Plan
of such Person or of any ERISA Affiliate, (ix) any other obligation for borrowed money or other financial accommodation which in
accordance with GAAP would be shown as a liability on the consolidated balance sheet of such Person, including without limitation
all obligations of others similar in character to those described in clauses (i) through (viii) of this definition for which such
Person is contingently liable, as guarantor, surety, accommodation party, partner or in any other capacity, or in respect of which
obligations such person assures a creditor against loss or agrees to take any action to prevent any such loss (other than endorsements
of negotiable instruments for collection in the ordinary course of business), including without limitation all reimbursement obligations
of such Person in respect of letters of credit, surety bonds, or similar obligations, and all obligations of such Person to advance
funds to, or to purchase assets, property or services from, any other Person in order to maintain the financial condition of such
other Person, and (x) all Off-Balance Sheet Liabilities of such Person. The Indebtedness of any Person shall include the Indebtedness
of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor
as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms
of such Indebtedness provide that such Person is not liable therefor.

 

    	9

    	 

    

 

“Indemnified
Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account
of any obligation of any Credit Party under any Credit Document and (b) to the extent not otherwise described in (a), Other
Taxes.

 

“Ineligible
Institution” means a (a) natural person or (b) holding company, investment vehicle or trust for, or owned and operated
for the primary benefit of, a natural person or relative(s) thereof; provided that, such holding company, investment vehicle
or trust shall not constitute an Ineligible Institution if it (x) has not been established for the primary purpose of acquiring
any Loans or Commitments, (y) is managed by a professional advisor, who is not such natural person or a relative thereof, having
significant experience in the business of making or purchasing commercial loans, and (z) has assets greater than $25,000,000 and
a significant part of its activities consist of making or purchasing commercial loans and similar extensions of credit in the ordinary
course of its business; provided that upon the occurrence of an Event of Default, any Person (other than a Lender) shall be an
Ineligible Institution if after giving effect any proposed assignment to such Person, such Person would hold more than 25% of the
then outstanding Revolving Credit Exposure or Commitments, as the case may be.

 

“Interest Election
Request” means a request by the Borrower to convert or continue a Revolving Borrowing in accordance with Section 2.07.

 

“Interest Payment
Date” means (a) with respect to any ABR Loan, the last day of each March, June, September and December and (b) with respect
to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the
case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day
of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period.

 

“Interest Period”
means with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months (or, with the consent of each Lender, nine or twelve
months) thereafter, as the Borrower may elect; provided, that (i) if any Interest Period would end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day
would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii)
any Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day
for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business
Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date
on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such
Borrowing.

 

    	10

    	 

    

 

“IRS”
means the United States Internal Revenue Service.

 

“Issuing Bank”
means JPMCB, in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section
2.05(i). The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing
Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued
by such Affiliate.

 

“JPMCB”
means JPMorgan Chase Bank, N.A.

 

“LC Disbursement”
means a payment made by the Issuing Bank pursuant to a Letter of Credit.

 

“LC Exposure”
means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the
aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC
Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

 

“Lenders”
means the Persons listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment
and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption and in accordance
with Section 9.04.

 

“Lender Party”
means the Administrative Agent, the Issuing Bank and each other Lender.

 

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

 

“LIBO Rate”
means, for any Interest Period, the rate appearing on the Reuters BBA Libor Rates Page 3750 (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service, providing rate quotations comparable to those currently
provided on such page of such Service, as determined by the Administrative Agent from time to time for purposes of providing quotations
of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest
Period. In the event that such rate is not available at such time for any reason, then the “LIBO Rate” for such
Interest Period shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period
are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank market
at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period.

 

    	11

    	 

    

 

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

 

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

 

“Material Adverse
Effect” means a material adverse effect on (a) the business, assets, operations, prospects or condition, financial or
otherwise, of the Borrower and the Subsidiaries taken as a whole, (b) the ability of the Borrower to perform any of its obligations
under this Agreement or (c) the rights of or benefits available to the Administrative Agent or the Lenders under this Agreement
or any other Credit Document.

 

“Material Indebtedness”
means Indebtedness (other than the Loans and Letters of Credit) or obligations in respect of one or more Swap Agreements of any
one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $500,000. For purposes of determining
Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Subsidiary in respect of any
Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or
such Subsidiary would be required to pay if such Swap Agreement were terminated at such time.

 

“Maturity Date”
means December 7, 2014.

 

“Maximum Rate”
has the meaning set forth in Section 9.13.

 

“Moody’s”
means Moody’s Investors Service, Inc. and any successor to its rating agency business.

 

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

 

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

 

“New Taiwan
Dollars” shall mean the lawful currency of Taiwan.

 

“Notes”
means the promissory notes, if any, delivered pursuant to Section 2.09(e).

 

“Off-Balance
Sheet Liability” of a Person means (a) any repurchase obligation or liability of such Person with respect to accounts
or notes receivable sold by such Person, (b) any liability under any Sale and Leaseback Transaction other than Capital Lease Obligations,
(c) any liability under any so-called “synthetic lease” arrangement or transaction entered into by such Person, or
(d) any obligation arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing
but which does not constitute a liability on the balance sheets of such Person.

 

    	12

    	 

    

 

“Other Connection
Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such
Recipient and the jurisdiction imposing such Taxes (other than connections arising from such Recipient having executed, delivered,
become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged
in any other transaction pursuant to or enforced any Credit Document, or sold or assigned an interest in any Loan or Credit Document).

 

“Other Taxes”
means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment
made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security
interest under, or otherwise with respect to, any Credit Document, except any such Taxes that are Other Connection Taxes imposed
with respect to an assignment (other than an assignment made pursuant to Section 2.18).

 

“Parent”
means, with respect to any Lender, any Person as to which such Lender is, directly or indirectly, a subsidiary.

 

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

 

“Participant
Register” has the meaning set forth in Section 9.04(c).

 

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

 

“Permitted Encumbrances”
means:

 

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

 

(b)      carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law, arising in
the ordinary course of business and securing obligations that are not overdue by more than 60 days or are being contested in compliance
with Section 5.04;

 

(c)      pledges and deposits
made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social
security laws or regulations;

 

(d)      deposits to secure
the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations
of a like nature, in each case in the ordinary course of business;

 

(e)      judgment liens
in respect of judgments that do not constitute an Event of Default under clause (k) of Article VII;

 

    	13

    	 

    

 

(f)      easements, zoning
restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business
that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere
with the ordinary conduct of business of the Borrower or any Subsidiary;

 

(g)      The interest or
title of a lessor under any lease (including without limitation Capital Leases) otherwise permitted under this Agreement with respect
to the property subject to such lease; and

 

(h)      Liens of a collecting
bank arising in the ordinary course of business under Section 4-208 of the Uniform Commercial Code in effect in the relevant
jurisdiction covering only the items being collected upon;

 

provided that the term “Permitted
Encumbrances” shall not include any Lien securing Indebtedness.

 

“Permitted Investments”
means:

 

(a)      direct obligations
of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by
any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in
each case maturing within one year from the date of acquisition thereof;

 

(b)      investments in
commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest
credit rating obtainable from S&P or from Moody’s;

 

(c)      investments in
certificates of deposit, banker’s acceptances and time deposits maturing within 180 days from the date of acquisition thereof
issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial
bank organized under the laws of the United States of America or any State thereof which has a combined capital and surplus and
undivided profits of not less than $500,000,000;

 

(d)      fully collateralized
repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a
financial institution satisfying the criteria described in clause (c) above; and

 

(e)      money market funds
that (i) comply with the criteria set forth in Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of
1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000.

 

“Person”
means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

 

“Plan”
means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were
terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 

    	14

    	 

    

 

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

 

“Rate Management
Obligations” of a Person means any and all obligations of such Person, whether absolute or contingent and howsoever and
whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions
therefor), under (i) any and all Rate Management Transactions, and (ii) any and all cancellations, buy backs, reversals, terminations
or assignments of any Rate Management Transactions.

 

“Rate Management
Transaction” means any transaction (including an agreement with respect thereto) now existing or hereafter entered into
between the Borrower and any Person which is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option,
equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction,
currency option or any other similar transaction (including any option with respect to any of these transactions) or any combination
thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures.

 

“Recipient”
means, as applicable, (a) the Administrative Agent, (b) any Lender and (c) the Issuing Bank.

 

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

 

“Related Parties”
means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and such Person’s Affiliates.

 

“Replacement
Taiwan Facility” means a senior revolving credit facility issued by a Replacement Taiwan Lender to be used by Hurco Taiwan
for its general working capital purposes at any time the Taiwan Facility no longer is available to Hurco Taiwan and all amounts
owing under the Taiwan Facility have been paid in full. Without limitation, the Taiwan Facility shall be deemed no longer available
if: (i) JPMCB demands payment of all or any portion of the principal amount outstanding under the Taiwan Facility and at the time
of such demand no "Event of Default" (as that term is defined in the Taiwan Facility Documents) has occurred and is continuing;
or (ii) JPMCB fails to honor any proper request for an advance or loan under the Taiwan Facility at a time when all conditions
to availability under the Taiwan Facility have been satisfied, no "Event of Default" (as that term is defined in the
Taiwan Facility Documents) has occurred and is continuing and, if such advance or loan were made, the aggregate principal amount
of all loans and advances outstanding under the Taiwan Facility would not exceed the "Ceiling" (as that term is defined
in the Taiwan Facility Documents).

 

    	15

    	 

    

 

“Replacement
Taiwan Lender” means any depository bank customarily providing senior revolving credit facilities denominated in New
Taiwan Dollars to borrowers in Taiwan for working capital purposes.

 

“Required Lenders”
means, at any time, Lenders having Revolving Credit Exposures and unused Commitments representing more than 50% of the sum of the
total Revolving Credit Exposures and unused Commitments at such time; provided, that for the purpose of determining the Required
Lenders needed for any waiver, amendment, modification or consent, any Lender that is the Borrower, or any Affiliate of the Borrower
(and the Revolving Credit Exposure and Commitments of such Lender) shall be disregarded.

 

“Restricted
Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any
Equity Interests in the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of
any such Equity Interests in the Borrower or any Subsidiary or any option, warrant or other right to acquire any such Equity Interests
in the Borrower or any Subsidiary.

 

“Revolving Credit
Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s
Revolving Loans and its LC Exposure at such time.

 

“Revolving Loan”
means a Loan made pursuant to Section 2.01.

 

“S&P”
means Standard & Poor’s Rating Services, and any successor to its rating agency business.

 

“Sale and Leaseback
Transaction” means any sale or other transfer of property by any Person with the intent to lease such property as lessee.

 

“Statutory Reserve
Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve percentage (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject with respect to the Adjusted
LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board).
Such reserve percentage shall include those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve
Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

"Subordinated
Indebtedness" of a Person means any Indebtedness of such Person for borrowed money the payment of which is subordinated
to payment of the Obligations and any Rate Management Obligations to the written satisfaction of the Administrative Agent.

 

    	16

    	 

    

 

“subsidiary”
means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated
financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation,
limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing
more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled,
by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

 

“Subsidiary”
means any subsidiary of the Borrower.

 

“Subsidiary
Guarantor” shall mean each Subsidiary of the Borrower which has executed and delivered the Subsidiary Guaranty, unless
and until such time as the respective Subsidiary is released from all of its obligations under the Subsidiary Guaranty Agreement
in accordance with the terms and provisions thereof.

 

“Subsidiary
Guaranty” shall mean the Subsidiary Guaranty Agreement of even date herewith executed by the Subsidiary Guarantors party
thereto in favor of the Administrative Agent, for the ratable benefit of the Lenders, as amended, restated, supplemented or otherwise
modified from time to time.

 

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

 

“Swap Agreement”
means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving,
or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination
of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services
provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap
Agreement.

 

“Taiwan Facility”
means the credit facility made available by JPMCB to Hurco Taiwan pursuant to the Taiwan Facility Documents, whereby the Bank will
made, subject to the terms and conditions thereof, a revolving credit facility to Hurco Taiwan in an aggregate principal amount
not to exceed New Taiwan Dollars 100,000,000 for Hurco Taiwan's general working capital purposes.

 

    	17

    	 

    

 

“Taiwan Facility
Documents” means, collectively, a General Agreement for Banking Transactions and a Banking Facilities Confirmation Letter
entered into by Hurco Taiwan and JPMCB, together with any promissory note(s) and security documents entered into in connection
therewith from time to time, all as amended or modified from time to time, including any agreement(s) or instrument(s) entered
into with JPMCB in replacement thereof.

 

“Tangible Net
Worth” means, at any date, an amount equal to (a) the total common stockholder’s equity of the Borrower, minus
the amount of all intangible items included therein, including, without limitation, goodwill, franchises, licenses, patents, trademarks,
tradenames, copyrights, service marks and brand names, all as determined in accordance with GAAP.

 

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments,
fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Transactions”
means the execution, delivery and performance by the Borrower of this Agreement, the borrowing of Loans, the use of the proceeds
thereof and the issuance of Letters of Credit hereunder.

 

“Type”,
when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising
such Borrowing, is determined by reference to the Alternate Base Rate or the Adjusted LIBO Rate (other than as part of the determination
of the Alternate Base Rate).

 

“UK Facility”
means the credit facilities made available by JPMCB to Hurco Europe pursuant to a Revolving Facility Agreement, dated as of December
7, 2007 and amended and restated on December 7, 2012, between Hurco Europe and JPMCB, as amended or modified from time to time,
whereby JPMCB made revolving credit loans to Hurco Europe in an aggregate principal amount not to exceed British Pounds Sterling
1,000,000 for Hurco Europe's general working capital purposes, and any modification, replacement or refinancing thereof so long
as the maximum principal amount of such financing does not exceed British Pounds Sterling 2,000,000.

 

“U.S. Person”
means a “United States person” within the meaning of Section 7701(a)(30) of the Code.

 

“U.S. Tax Certificate”
has the meaning assigned to such term in Section 2.16(f)(ii)(D)(2).

 

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

 

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“Withdrawal
Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

 

“Working Capital”
means, for any Person at any date, its Consolidated Current Assets at such date minus its Consolidated Current Liabilities
at such date.

 

SECTION 1.02.
Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Class
(e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g.,
a “Eurodollar Revolving Loan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving
Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar
Revolving Borrowing”).

 

SECTION 1.03.
Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”.
The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed
as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject
to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof”
and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not
to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed
to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

 

SECTION 1.04.
Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Administrative
Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the
date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such
notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on
the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance herewith. Notwithstanding any other provision contained herein, all terms
of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein
shall be made, (i) without giving effect to any election under Accounting Standards Codification 825 (or any other Accounting Standards
Codification or update having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any
Subsidiary at “fair value”, as defined therein, (ii) without giving effect to any treatment of Indebtedness in respect
of convertible debt instruments under Accounting Standards Codification 470-20 (or any other Accounting Standards Codification
or update having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described in such
provision, and such Indebtedness shall at all times be valued at the full stated principal amount thereof and (iii) in a manner
such that any obligations relating to a lease that was accounted for by a Person as an operating lease as of the Effective Date
and any similar lease entered into after the Effective Date by such Person shall be accounted for as obligations relating to an
operating lease and not as obligations relating to a Capitalized Lease.

 

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ARTICLE II

 

The Credits

 

SECTION 2.01.
Commitments. Subject to the terms and conditions set forth herein, each Lender agrees to make Revolving Loans to the Borrower
from time to time during the Availability Period in an aggregate principal amount that will not result in (a) such Lender’s
Revolving Credit Exposure exceeding such Lender’s Commitment or (b) the sum of the total Revolving Credit Exposures exceeding
the total Commitments. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow,
prepay and reborrow Revolving Loans.

 

SECTION 2.02.
Loans and Borrowings. (a) Each Revolving Loan shall be made as part of a Borrowing consisting of Revolving Loans made by
the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be
made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders
are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required.

 

(b)      Subject
to Section 2.13, each Revolving Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request
in accordance herewith. Each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate
of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower
to repay such Loan in accordance with the terms of this Agreement.

 

(c)      At the
commencement of each Interest Period for any Eurodollar Revolving Borrowing, such Borrowing shall be in an aggregate amount that
is an integral multiple of $100,000 and not less than $1,000,000. At the time that each ABR Revolving Borrowing is made, such Borrowing
shall be in an aggregate amount that is an integral multiple of $10,000 and not less than $100,000; provided that an ABR
Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments or that is
required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e). Borrowings of more than one Type
and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of 6 Eurodollar Revolving
Borrowings outstanding.

 

    	20

    	 

    

  

(d)      Notwithstanding
any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing
if the Interest Period requested with respect thereto would end after the Maturity Date.

 

SECTION 2.03.
Requests for Revolving Borrowings. To request a Revolving Borrowing, the Borrower shall notify the Administrative Agent
of such request by telephone (a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business
Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m., New York City
time, one Business Day before the date of the proposed Borrowing; provided that any such notice of an ABR Revolving Borrowing
to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e) may be given not later than 10:00 a.m., New
York City time, on the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be
confirmed promptly by hand delivery or electronic mail to the Administrative Agent of a written Borrowing Request in a form approved
by the Administrative Agent and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following
information in compliance with Section 2.02:

 

(i)        the
aggregate amount of the requested Borrowing;

 

(ii)       the
date of such Borrowing, which shall be a Business Day;

 

(iii)      whether
such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

 

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

 

(v)      the
location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements
of Section 2.06.

 

If no election as to the Type of Revolving
Borrowing is specified, then the requested Revolving Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Eurodollar Revolving Borrowing, then the Borrower shall be deemed to have selected an Interest Period
of one month’s duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative
Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested
Borrowing.

 

SECTION 2.04.
[Intentionally Omitted]

 

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SECTION 2.05.
Letters of Credit. (a) General. Subject to the terms and conditions set forth herein, the Borrower may request the
issuance of Letters of Credit as the applicant thereof, for the support of its or its Subsidiaries’ obligations, in a form
reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time to time during the Availability
Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any
form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the
Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

 

(b)          Notice
of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or transmit by electronic mail to the
Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension,
but in any event no less than three Business Days or such lesser period to which the Issuing Bank may consent) a notice requesting
the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the
requested date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit
is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the name and address
of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit.
If requested by the Issuing Bank, the Borrower also shall submit a letter of credit application on the Issuing Bank’s standard
form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only
if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrower shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed $3,000,000 and
(ii) the sum of the total Revolving Credit Exposures shall not exceed the total Commitments.

 

(c)          Expiration
Date. Each Letter of Credit shall expire (or be subject to termination by notice from the Issuing Bank to the beneficiary thereof)
at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit
(or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is five
Business Days prior to the Maturity Date.

 

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

 

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(e)          Reimbursement.
If the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement
by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, New York City time, on
the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to 10:00 a.m.,
New York City time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date, then
not later than 12:00 noon, New York City time, on (i) the Business Day that the Borrower receives such notice, if such notice is
received prior to 10:00 a.m., New York City time, on the day of receipt, or (ii) the Business Day immediately following the day
that the Borrower receives such notice, if such notice is not received prior to such time on the day of receipt; provided
that the Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03
that such payment be financed with an ABR Revolving Borrowing in an equivalent amount and, to the extent so financed, the Borrower’s
obligation to make such payment shall be discharged and replaced by the resulting ABR Revolving Borrowing. If the Borrower fails
to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment
then due from the Borrower in respect thereof and such Lender’s Applicable Percentage thereof. Promptly following receipt
of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower,
in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis
mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank
the amounts so received by it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from the
Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Issuing Bank or, to the extent
that Lenders have made payments pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders and the Issuing
Bank as their interests may appear. Any payment made by a Lender pursuant to this paragraph to reimburse the Issuing Bank for any
LC Disbursement (other than the funding of ABR Revolving Loans as contemplated above) shall not constitute a Loan and shall not
relieve the Borrower of its obligation to reimburse such LC Disbursement.

 

    	23

    	 

    

 

(f)          Obligations
Absolute. The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall
be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under
any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or
this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to
be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment
by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms
of such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against,
the Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their
Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any
Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to
in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice
or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder),
any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Bank; provided
that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of any direct
damages (as opposed to special, indirect, consequential or punitive damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s failure
to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.
The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Issuing Bank
(as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such
determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect
to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing
Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation,
regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents
are not in strict compliance with the terms of such Letter of Credit.

 

(g)          Disbursement
Procedures. The Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by
telephone (confirmed by electronic mail) of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement
thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation
to reimburse the Issuing Bank and the Lenders with respect to any such LC Disbursement.

 

(h)          Interim
Interest. If the Issuing Bank shall make any LC Disbursement, then, unless the Borrower shall reimburse such LC Disbursement
in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including
the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate
per annum then applicable to ABR Revolving Loans; provided that, if the Borrower fails to reimburse such LC Disbursement
when due pursuant to paragraph (e) of this Section, then Section 2.12(d) shall apply. Interest accrued pursuant to this paragraph
shall be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant
to paragraph (e) of this Section to reimburse the Issuing Bank shall be for the account of such Lender to the extent of such payment.

 

    	24

    	 

    

 

(i)          Replacement
of the Issuing Bank. The Issuing Bank may be replaced at any time by written agreement among the Borrower, the Administrative
Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such
replacement of the Issuing Bank. At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees
accrued for the account of the replaced Issuing Bank pursuant to Section 2.11(b). From and after the effective date of any such
replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the Issuing Bank under this Agreement
with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall
be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the
context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto
and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit
issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.

 

(j)          Cash
Collateralization. If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice
from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure
representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the
Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit
of the Lenders, an amount in cash equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided
that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately
due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower
described in clause (h) or (i) of Article VII. Such deposit shall be held by the Administrative Agent as collateral for the payment
and performance of the obligations of the Borrower under this Agreement. The Administrative Agent shall have exclusive dominion
and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of
such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrower’s
risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such
account. Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements
for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement
obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject
to the consent of Lenders with LC Exposure representing greater than 50% of the total LC Exposure), be applied to satisfy other
obligations of the Borrower under this Agreement. If the Borrower is required to provide an amount of cash collateral hereunder
as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to
the Borrower within three Business Days after all Events of Default have been cured or waived.

 

SECTION 2.06.
Funding of Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire
transfer of immediately available funds by 12:00 noon, New York City time, to the account of the Administrative Agent most recently
designated by it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower
by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative
Agent in New York City and designated by the Borrower in the applicable Borrowing Request; provided that ABR Revolving Loans made
to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e) shall be remitted by the Administrative Agent
to the Issuing Bank.

 

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(b)          Unless
the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender
will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume
that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance
upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its
share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally
agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from
and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative
Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate
applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s
Loan included in such Borrowing.

 

SECTION 2.07.
Interest Elections. (a) Each Revolving Borrowing initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Eurodollar Revolving Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.
Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case
of a Eurodollar Revolving Borrowing, may elect Interest Periods therefor, all as provided in this Section. The Borrower may elect
different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated
ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered
a separate Borrowing.

 

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

 

(c)          Each
telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02:

 

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

 

(ii)         the
effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

 

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(iii)        whether
the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

 

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

 

If any such Interest Election Request requests
a Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest
Period of one month’s duration.

 

(d)          Promptly
following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and
of such Lender’s portion of each resulting Borrowing.

 

(e)          If
the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Revolving Borrowing prior to the
end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest
Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default
has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower,
then, so long as an Event of Default is continuing (i) no outstanding Revolving Borrowing may be converted to or continued as a
Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Revolving Borrowing shall be converted to an ABR Borrowing at the
end of the Interest Period applicable thereto.

 

SECTION 2.08.
Termination and Reduction of Commitments. (a) Unless previously terminated, the Commitments shall terminate on the Maturity
Date.

 

(b)          The
Borrower may at any time terminate, or from time to time reduce, the Commitments; provided that (i) each reduction of the
Commitments shall be in an amount that is an integral multiple of $500,000 and not less than $1,000,000 and (ii) the Borrower shall
not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section
2.10, the sum of the Revolving Credit Exposures would exceed the total Commitments.

 

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

 

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SECTION 2.09.
Repayment of Loans; Evidence of Debt. (a) The Borrower hereby unconditionally promises to pay to the Administrative Agent
for the account of each Lender the then unpaid principal amount of each Revolving Loan on the Maturity Date.

 

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

 

(c)          The
Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class and
Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become
due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent
hereunder for the account of the Lenders and each Lender’s share thereof.

 

(d)          The
entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence
of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the
Loans in accordance with the terms of this Agreement.

 

(e)          Any
Lender may request that Loans made by it be evidenced by a promissory note. In such event, the Borrower shall prepare, execute
and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender
and its registered assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by such promissory
note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more
promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note,
to such payee and its registered assigns).

 

(f)          If
at any time the aggregate Revolving Credit Exposure of the Lenders exceeds the aggregate Commitments of the Lenders, the Borrower
shall immediately prepay the Revolving Loans in the amount of such excess. To the extent that, after the prepayment of all Revolving
Loans an excess of the Revolving Credit Exposure over the aggregate Commitments still exists, the Borrower shall promptly cash
collateralize the Letters of Credit in the manner described in Section 2.05(j) in an amount sufficient to eliminate such excess.

 

SECTION 2.10.
Prepayment of Loans. (a) The Borrower shall have the right at any time and from time to time to prepay any Borrowing in
whole or in part, subject to prior notice in accordance with paragraph (b) of this Section.

 

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(b)          The
Borrower shall notify the Administrative Agent by telephone (confirmed by electronic mail) of any prepayment hereunder (i) in the
case of prepayment of a Eurodollar Revolving Borrowing, not later than 11:00 a.m., New York City time, three Business Days before
the date of prepayment or (ii) in the case of prepayment of an ABR Revolving Borrowing, not later than 11:00 a.m., New York
City time, one Business Day before the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment
date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment
is given in connection with a conditional notice of termination of the Commitments as contemplated by Section 2.08(c), then such
notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.08(c). Promptly following
receipt of any such notice relating to a Revolving Borrowing, the Administrative Agent shall advise the Lenders of the contents
thereof. Each partial prepayment of any Revolving Borrowing shall be in an amount that would be permitted in the case of an advance
of a Revolving Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Revolving Borrowing shall be applied
ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required
by Section 2.12.

 

SECTION 2.11.
Fees. (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which
shall accrue at the rate of 0.05% per annum on the daily amount of the difference between the Commitment of such Lender and the
Revolving Credit Exposure of such Lender during the period from and including the date hereof to but excluding the date on which
such Commitment terminates. Accrued commitment fees shall be payable in arrears on the third Business Day following the last day
of March, June, September and December of each year and on the date on which the Commitments terminate, commencing on the first
such date to occur after the date hereof. All commitment fees shall be computed on the basis of a year of 360 days and shall be
payable for the actual number of days elapsed (including the first day but excluding the last day).

 

(b)          The
Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations
in Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurodollar
Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed
LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such
Lender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to the Issuing
Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the LC Exposure (excluding
any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but
excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure, as
well as the Issuing Bank’s standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit
or processing of drawings thereunder. Participation fees and fronting fees accrued through and including the last day of March,
June, September and December of each year shall be payable on the third Business Day following such last day, commencing on the
first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the
Commitments terminate and any such fees accruing after the date on which the Commitments terminate shall be payable on demand.
Any other fees payable to the Issuing Bank pursuant to this paragraph shall be payable within 10 days after demand. All participation
fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).

 

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(c)          The
Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately
agreed upon between the Borrower and the Administrative Agent.

 

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

 

SECTION 2.12.
Interest. (a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable
Rate.

 

(b)          The
Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for
such Borrowing plus the Applicable Rate.

 

(c)          Notwithstanding
the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by the Borrower hereunder is not
paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well
as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable
to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate
applicable to ABR Loans as provided in paragraph (a) of this Section.

 

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

 

(e)          All
interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate
Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days
(or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day
but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative
Agent, and such determination shall be conclusive absent manifest error.

 

SECTION 2.13.
Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurodollar Borrowing:

 

(a)          the
Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means
do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or

 

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(b)          the
Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest
Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its
Loan) included in such Borrowing for such Interest Period;

 

then the Administrative Agent shall give
notice thereof to the Borrower and the Lenders by telephone or electronic mail as promptly as practicable thereafter and, until
the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist,
(i) any Interest Election Request that requests the conversion of any Revolving Borrowing to, or continuation of any Revolving
Borrowing as, a Eurodollar Borrowing shall be ineffective and such Borrowing shall be continued as an ABR Borrowing and (ii) if
any Borrowing Request requests a Eurodollar Revolving Borrowing, such Borrowing shall be made as an ABR Borrowing; provided
that if the circumstances giving rise to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall
be permitted.

 

If, after the date hereof, the introduction
of, or any change in, any applicable Law or any change in the interpretation or administration thereof by any Governmental Authority,
central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any of the Lenders
(or any of their respective Lending Offices) with any request or directive (whether or not having the force of Law) of any such
Governmental Authority, central bank or comparable agency, shall make it unlawful or impossible for any of the Lenders (or any
of their respective Lending Offices) to honor its obligations hereunder to make or maintain any Eurodollar Loan or any ABR Loan
as to which the interest rate is determined by reference to the Adjusted LIBO Rate, such Lender shall promptly give notice thereof
to the Administrative Agent and the Administrative Agent shall promptly give notice to the Borrower and the other Lenders. Thereafter,
until the Administrative Agent notifies the Borrower that such circumstances no longer exist, (i) the obligations of the Lenders
to make Eurodollar Loans or ABR Loans as to which the interest rate is determined by reference to the Adjusted LIBO Rate, and the
right of the Borrower to convert any Loan to a Eurodollar Loan or continue any Loan as a Eurodollar Loan or an ABR Loan as to which
the interest rate is determined by reference to the Adjusted LIBO Rate shall be suspended and thereafter the Borrower may select
only ABR Loans as to which the interest rate is not determined by reference to the Adjusted LIBO Rate hereunder, (ii) all
ABR Loans shall cease to be determined by reference to the Adjusted LIBO Rate and (iii) if any of the Lenders may not lawfully
continue to maintain a Eurodollar Loan to the end of the then current Interest Period applicable thereto, the applicable Loan shall
immediately be converted to an ABR Loan as to which the interest rate is not determined by reference to the Adjusted LIBO Rate
for the remainder of such Interest Period.

 

SECTION 2.14.
Increased Costs. (a) If any Change in Law shall:

 

(i)          impose,
modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets
of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the
Adjusted LIBO Rate) or the Issuing Bank;

 

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(ii)         impose
on any Lender or the Issuing Bank or the London interbank market any other condition, cost or expense (other than Taxes) affecting
this Agreement or Eurodollar Loans made by such Lender or any Letter of Credit or participation therein; or

 

(iii)        subject
any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition
of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations,
or its deposits, reserves, other liabilities or capital attributable thereto;

 

and the result of any of the foregoing
shall be to increase the cost to such Lender or such other Recipient of making, converting into, continuing or maintaining any
Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender, the Issuing Bank
or such other Recipient of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received
or receivable by such Lender, the Issuing Bank or such other Recipient hereunder (whether of principal, interest or otherwise),
then the Borrower will pay to such Lender, the Issuing Bank or such other Recipient, as the case may be, such additional amount
or amounts as will compensate such Lender, the Issuing Bank or such other Recipient, as the case may be, for such additional costs
incurred or reduction suffered.

 

(b)          If
any Lender or the Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has or would have
the effect of reducing the rate of return on such Lender’s or the Issuing Bank’s capital or on the capital of such
Lender’s or the Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below
that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company could have achieved
but for such Change in Law (taking into consideration such Lender’s or the Issuing Bank’s policies and the policies
of such Lender’s or the Issuing Bank’s holding company with respect to capital adequacy and liquidity), then from time
to time the Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such reduction
suffered.

 

(c)          A
certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or the Issuing
Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered
to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender or the Issuing Bank, as the case
may be, the amount shown as due on any such certificate within 10 days after receipt thereof.

 

(d)          Failure
or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall not constitute
a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation; provided that the Borrower
shall not be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions
incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower of
the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing Bank’s intention
to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect
thereof.

 

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SECTION 2.15.
Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last day
of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any
Eurodollar Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.10(b) and is revoked in accordance therewith) or (d) the assignment of any Eurodollar Loan other than on the last
day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.18, then, in any such
event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar
Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess,
if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred,
at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last
day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that
would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount
for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks in the eurodollar market. A certificate of any Lender setting forth
any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall
be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within
10 days after receipt thereof.

 

SECTION 2.16.
Taxes. (a) Payments Free of Taxes. Any and all payments by or on account of any obligation of any Credit Party under
any Credit Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any
applicable law (as determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding
of any Tax from any such payment by a withholding agent, then the applicable withholding agent shall be entitled to make such deduction
or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with
applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Credit Party shall be increased as
necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional
sums payable under this Section 2.16) the applicable Recipient receives an amount equal to the sum it would have received had no
such deduction or withholding been made.

 

(b)          Payment
of Other Taxes by the Borrower. The Credit Parties shall timely pay to the relevant Governmental Authority in accordance with
applicable law, or at the option of the Administrative Agent timely reimburse it for, Other Taxes.

 

(c)          Evidence
of Payments. As soon as practicable after any payment of Taxes by any Credit Party to a Governmental Authority pursuant to
this Section 2.16, such Credit Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued
by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment
reasonably satisfactory to the Administrative Agent.

 

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(d)          Indemnification
by the Borrower. The Credit Parties shall jointly and severally indemnify each Recipient, within 10 days after demand therefor,
for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable
under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and
any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered
to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf
of a Lender, shall be conclusive absent manifest error.

 

(e)          Indemnification
by the Lenders. Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i)
any Indemnified Taxes attributable to such Lender (but only to the extent that any Credit Party has not already indemnified the
Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Credit Parties to do so), (ii) any Taxes
attributable to such Lender’s failure to comply with the provisions of Section 9.04(c) relating to the maintenance of a Participant
Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative
Agent in connection with any Credit Document, and any reasonable expenses arising therefrom or with respect thereto, whether or
not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount
of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each
Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under
any Credit Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due
to the Administrative Agent under this paragraph (e).

 

(f)          Status
of Lenders. (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made
under any Credit Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested
by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower
or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In
addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation
prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or
the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.
Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation
(other than such documentation set forth in Section 2.16(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the
Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed
cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

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(ii)         Without
limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

 

(A)         any
Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative
Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. Federal backup withholding tax;

 

(B)         any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such
number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent),
whichever of the following is applicable:

 

(1)         In
the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect
to payments of interest under any Credit Document, executed originals of IRS Form W-8BEN establishing an exemption from, or reduction
of, U.S. Federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any
other applicable payments under any Credit Document, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. Federal
withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

 

(2)         executed
originals of IRS Form W-8ECI;

 

(3)         in
the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x)
a certificate substantially in the form of Exhibit B-1 to the effect that such Foreign Lender is not a “bank” within
the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section
881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S.
Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN; or

 

(4)         to
the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI,
IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit B-2 or Exhibit B-3, IRS Form W-9, and/or
other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership
and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign
Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit B-4 on behalf of each such direct and
indirect partner;

 

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(C)         any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such
number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent),
executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S.
Federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law
to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

 

(D)         if
a payment made to a Lender under any Credit Document would be subject to U.S. Federal withholding Tax imposed by FATCA if such
Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b)
or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times
prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation
prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation
reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent
to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations
under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA”
shall include any amendments made to FATCA after the date of this Agreement.

 

(iii)        Each
Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect,
it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal
inability to do so.

 

(g)          Treatment
of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a refund
of any Taxes as to which it has been indemnified pursuant to this Section 2.16 (including by the payment of additional amounts
pursuant to this Section 2.16), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of
indemnity payments made under this Section 2.16 with respect to the Taxes giving rise to such refund), net of all out-of-pocket
expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such
indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by
the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental
Authority. Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to
pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in
a less favorable net after-Tax position than the indemnified party would have been in if the indemnification payments or additional
amounts giving rise to such refund had never been paid. This paragraph shall not be construed to require any indemnified party
to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying
party or any other Person.

 

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(h)          Survival.
Each party’s obligations under this Section 2.16 shall survive the resignation or replacement of the Administrative Agent
or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction
or discharge of all obligations under any Credit Document.

 

(i)          Issuing
Bank. For purposes of this Section 2.16, the term “Lender” includes any Issuing Bank.

 

SECTION 2.17.
Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) The Borrower shall make each payment required to be made
by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section
2.14, 2.15 or 2.16, or otherwise) prior to 12:00 noon, New York City time, on the date when due, in immediately available funds,
without set off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative
Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such
payments shall be made to the Administrative Agent at its offices at 270 Park Avenue, New York, New York, except payments to be
made directly to the Issuing Bank as expressly provided herein and except that payments pursuant to Sections 2.14, 2.15, 2.16 and
9.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received
by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder
shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and,
in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments
hereunder shall be made in dollars.

 

(b)          If
at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of
interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and
fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due
to such parties.

 

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(c)          If
any Lender shall, by exercising any right of set off or counterclaim or otherwise, obtain payment in respect of any principal of
or interest on any of its Revolving Loans or participations in LC Disbursements resulting in such Lender receiving payment of a
greater proportion of the aggregate amount of its Revolving Loans and participations in LC Disbursements and accrued interest thereon
than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at
face value) participations in the Revolving Loans and participations in LC Disbursements of other Lenders without recourse or warranty
from the other Lenders except as contemplated by Section 9.04 in respect of assignments to the extent necessary so that the benefit
of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued
interest on their respective Revolving Loans and participations in LC Disbursements; provided that (i) if any such
participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall
be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this
paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms
of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any
of its Loans or participations in LC Disbursements to any assignee or participant, other than to the Borrower or any Subsidiary
or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees,
to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as
if such Lender were a direct creditor of the Borrower in the amount of such participation.

 

(d)          Unless
the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative
Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has not in fact
made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative
Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater
of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules
on interbank compensation.

 

(e)          If
any Lender shall fail to make any payment required to be made by it pursuant to Section 2.05(d) or (e), 2.06(b), 2.17(d) or 9.03(c),
then the Administrative Agent may, in its discretion and notwithstanding any contrary provision hereof, (i) apply any amounts thereafter
received by the Administrative Agent for the account of such Lender and for the benefit of the Administrative Agent or the Issuing
Bank to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid, and/or
(ii) hold any such amounts in a segregated account over which the Administrative Agent shall have exclusive control as cash collateral
for, and application to, any future funding obligations of such Lender under any such Section, in the case of each of clause (i)
and (ii) above, in any order as determined by the Administrative Agent in its discretion.

 

SECTION 2.18.
Mitigation Obligations; Replacement of Lenders.

 

(a)          If
any Lender requests compensation under Section 2.14, or if the Borrower is required to pay any Indemnified Taxes or additional
amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.16, then such Lender
shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation
or assignment (i) would eliminate or reduce amounts payable pursuant to Sections 2.14 or 2.16, as the case may be, in
the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous
to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.

 

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(b)          If
any Lender requests compensation under Section 2.14, or if the Borrower is required to pay any Indemnified Taxes or additional
amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.16, or if any Lender
becomes a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained
in Section 9.04), all its interests, rights (other than its existing rights to payments pursuant to Sections 2.14 or 2.16)
and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if
a Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of
the Administrative Agent (and if a Commitment is being assigned, the Issuing Bank), which consent shall not unreasonably be withheld,
(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations
in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to
the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and
(iii) in the case of any such assignment resulting from a claim for compensation under Section 2.14 or payments required
to be made pursuant to Section 2.16, such assignment will result in a reduction in such compensation or payments. A Lender
shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise,
the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

 

SECTION 2.19.
Defaulting Lenders.

 

Notwithstanding any provision
of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so
long as such Lender is a Defaulting Lender:

 

(a)          fees
shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 2.11(a);

 

(b)          the
Commitments, LC Exposure and Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whether the
Required Lenders have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section
9.02), provided that this clause (b) shall not apply to the vote of a Defaulting Lender in the case of an amendment, waiver
or other modification requiring the consent of such Lender or each Lender affected thereby;

 

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

 

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(i)          all
or any part of such LC Exposure shall be reallocated among the non-Defaulting Lenders in accordance with their respective Applicable
Percentages but only to the extent that (x) the sum of all non-Defaulting Lenders’ Revolving Credit Exposures plus such Defaulting
Lender’s LC Exposure does not exceed the total of all non-Defaulting Lenders’ Commitments and (y) the conditions set
forth in Section 4.01 are satisfied at such time;

 

(ii)         if
the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall within one Business
Day following notice by the Administrative Agent cash collateralize for the benefit of the Issuing Bank only the Borrower’s
obligations corresponding to such Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant
to clause (i) above) in accordance with the procedures set forth in Section 2.05(j) for so long as such LC Exposure is outstanding;

 

(iii)        if
the Borrower cash collateralizes any portion of such Defaulting Lender’s LC Exposure pursuant to clause (ii) above, the Borrower
shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.11(b) with respect to such Defaulting Lender’s
LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;

 

(iv)        if
the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause (i) above, then the fees payable to the Lenders
pursuant to Section 2.11(a) and Section 2.11(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable
Percentages; or

 

(v)         if
all or any portion of such Defaulting Lender’s LC Exposure is neither cash collateralized nor reallocated pursuant to clause
(i) or (ii) above, then, without prejudice to any rights or remedies of the Issuing Bank or any other Lender hereunder, all facility
fees that otherwise would have been payable to such Defaulting Lender (solely with respect to the portion of such Defaulting Lender’s
Commitment that was utilized by such LC Exposure) and letter of credit fees payable under Section 2.11(b) with respect to such
Defaulting Lender’s LC Exposure shall be payable to the Issuing Bank until such LC Exposure is cash collateralized and/or
reallocated; and

 

(d)          so
long as such Lender is a Defaulting Lender, the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit,
unless it is satisfied that the related exposure and the Defaulting Lender’s then outstanding LC Exposure will be 100% covered
by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with Section
2.19(c), and participating interests in any such newly issued or increased Letter of Credit shall be allocated among non-Defaulting
Lenders in a manner consistent with Section 2.19(c)(i) (and such Defaulting Lender shall not participate therein).

 

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If (i) a Bankruptcy Event
with respect to a Parent of any Lender shall occur following the date hereof and for so long as such event shall continue or (ii)
the Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its obligations under one or more other agreements
in which such Lender commits to extend credit, the Issuing Bank shall not be required to issue, amend or increase any Letter of
Credit, unless the Issuing Bank shall have entered into arrangements with the Borrower or such Lender, satisfactory to the Issuing
Bank to defease any risk to it in respect of such Lender hereunder.

 

In the event that the
Administrative Agent, the Borrower and the Issuing Bank each agrees that a Defaulting Lender has adequately remedied all matters
that caused such Lender to be a Defaulting Lender, then the LC Exposure of the Lenders shall be readjusted to reflect the inclusion
of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Loans of the other Lenders as
the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Applicable
Percentage.

 

ARTICLE
III

 

Representations and Warranties

 

The Borrower represents
and warrants to the Administrative Agent and the Lenders that:

 

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

 

SECTION 3.02.
Authorization; Enforceability. The Transactions are within the Borrower’s corporate powers and have been duly authorized
by all necessary corporate and, if required, stockholder action. This Agreement has been duly executed and delivered by the Borrower
and constitutes a legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

SECTION 3.03.
Governmental Approvals; No Conflicts. The Transactions (a) do not require any consent or approval of, registration
or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force
and effect, (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of
the Borrower or any of its Subsidiaries or any order of any Governmental Authority, (c) will not violate or result in a default
under any indenture, agreement or other instrument binding upon the Borrower or any of its Subsidiaries or its assets, or give
rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries, and (d) will not result
in the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries.

 

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SECTION 3.04.
Financial Condition; No Material Adverse Change. (a) The Borrower has heretofore furnished to the Lenders its consolidated
balance sheet and statements of income, stockholders equity and cash flows (i) as of and for the fiscal year ended December 31,
2011, reported on by Ernst & Young, independent public accountants, and (ii) as of and for the fiscal quarter and the
portion of the fiscal year ended July 31, 2012, certified by its chief financial officer. Such financial statements present fairly,
in all material respects, the financial position and results of operations and cash flows of the Borrower and its consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence
of footnotes in the case of the statements referred to in clause (ii) above.

 

(b)          Since
October 31, 2011, there has been no change in the business, assets, operations, prospects or condition, financial or otherwise,
of the Borrower and its Subsidiaries which would reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.05.
Properties. (a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests in, all its real
and personal property material to its business, except for minor defects in title that do not interfere with its ability to conduct
its business as currently conducted or to utilize such properties for their intended purposes.

 

(b)          Each
of the Borrower and its Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by the Borrower and its Subsidiaries does not infringe upon the rights of
any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.

 

SECTION 3.06.
Litigation and Environmental Matters. (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any of its Subsidiaries
(i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, could reasonably
be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve this Agreement or the
Transactions.

 

(b)          Except
with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect, neither the Borrower nor any of its Subsidiaries (i) has failed to comply with any Environmental Law or to obtain,
maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to
any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of
any basis for any Environmental Liability.

 

SECTION 3.07.
Compliance with Laws and Agreements. Each of the Borrower and its Subsidiaries is in compliance with all laws, regulations
and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments
binding upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect. No Default has occurred and is continuing. Neither the Borrower nor any Subsidiary is a
party to any agreement or instrument or subject to any charter or other corporate restriction which could reasonably be expected
to have a Material Adverse Effect.

 

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SECTION 3.08.
Investment Company Status. Neither the Borrower nor any of its Subsidiaries is an “investment company” as defined
in, or subject to regulation under, the Investment Company Act of 1940.

 

SECTION 3.09.
Taxes. Each of the Borrower and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required
to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being
contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside
on its books adequate reserves or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material
Adverse Effect.

 

SECTION 3.10.
ERISA. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA
Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect.
The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement
of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts,
exceed by more than $500,000 the fair market value of the assets of such Plan, and the present value of all accumulated benefit
obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $500,000 the
fair market value of the assets of all such underfunded Plans.

 

SECTION 3.11.
Disclosure. The Borrower has disclosed to the Lenders all agreements, instruments and corporate or other restrictions to
which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect. None of the reports, financial statements, certificates or other
information furnished by or on behalf of the Borrower to the Administrative Agent or any Lender in connection with the negotiation
of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that, with respect to projected financial information, the Borrower
represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

 

SECTION 3.12.
Subsidiaries. Schedule 3.12 contains an accurate list of all Subsidiaries of the Borrower as of the date of this
Agreement, setting forth their respective jurisdictions of organization and the percentage of their respective Capital Stock or
other ownership interests owned by the Borrower or other Subsidiaries. All of the issued and outstanding shares of Capital Stock
or other ownership interests of such Subsidiaries have been (to the extent such concepts are relevant with respect to such ownership
interests) duly authorized and issued and are fully paid and non-assessable. Each Subsidiary of the Borrower has and will have
all requisite corporate power to own or lease the properties used in its business and to carry on its business as now being conducted
and as proposed to be conducted.

 

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SECTION 3.13.
Regulation U. Margin stock (as defined in Regulation U) constitutes less than 25% of the value of those assets of the Borrower
and its Subsidiaries which are subject to any limitation on sale, pledge, or other restriction hereunder.

 

ARTICLE
IV

 

Conditions

 

SECTION 4.01.
Effective Date. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder
shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with
Section 9.02):

 

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

 

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

 

(c)          The
Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and
dated the Effective Date) of Faegre Baker Daniels LLP, counsel for the Credit Parties, in form and substance reasonably satisfactory
to the Administrative Agent and covering such matters relating to the Borrower, this Agreement or the Transactions as the Administrative
Agent shall reasonably request. The Borrower hereby requests such counsel to deliver such opinion.

 

(d)          The
Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably
request relating to the organization, existence and good standing of the Credit Parties, the authorization of the Transactions
and any other legal matters relating to the Credit Parties, this Agreement or the Transactions, all in form and substance satisfactory
to the Administrative Agent and its counsel.

 

(e)          The
Administrative Agent shall have received a certificate, dated the Effective Date and signed by the President, a Vice President
or a Financial Officer of the Borrower, confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section
4.02.

 

(f)          The
Administrative Agent shall have received satisfactory payoff letters for all existing Indebtedness to be repaid on the Effective
Date.

 

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

 

The Administrative Agent shall notify the
Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding.

 

SECTION 4.02.
Each Credit Event. The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of the Issuing Bank
to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:

 

(a)          The
representations and warranties of the Credit Parties set forth in the Credit Documents shall be true and correct on and as of the
date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable.

 

(b)          At
the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter
of Credit, as applicable, no Default shall have occurred and be continuing.

 

Each Borrowing and each issuance, amendment,
renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date
thereof as to the matters specified in paragraphs (a) and (b) of this Section.

 

ARTICLE
V 

 

Affirmative Covenants

 

Until the Commitments
have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid
in full and all Letters of Credit shall have expired or terminated, in each case, without any pending draw, and all LC Disbursements
shall have been reimbursed, the Borrower covenants and agrees with the Lenders that:

 

SECTION 5.01.
Financial Statements; Ratings Change and Other Information. The Borrower will furnish to the Administrative Agent and each
Lender:

 

(a)          within
90 days after the end of each fiscal year of the Borrower, (i) its audited consolidated balance sheet and related statements of
operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative
form the figures for the previous fiscal year, all reported on by Ernst & Young or other independent public accountants of
recognized national standing (without a “going concern” or like qualification, commentary or exception and without
any qualification or exception arising out of the scope of such audit) to the effect that such consolidated financial statements
present fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently applied (except that consolidated balance sheets and
related statements of operations and retained earnings need not be provided for Inactive Subsidiaries or Subsidiaries whose only
asset is the Capital Stock of another Subsidiary of the Borrower and consolidating statements need not be certified by such accountants)
and (ii) a consolidating balance sheet and related statements of operations, stockholders’ equity and cash flows for Borrower
and the Subsidiaries as of the end of and for such year, setting forth in each case in comparative form the figures for the previous
fiscal year;

 

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(b)          within
45 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, consolidated and consolidating
balance sheets of the Borrower and Subsidiaries and related statements of operations, stockholders’ equity and cash flows
as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative
form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous
fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition
and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis or consolidating basis, as
applicable in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes
(except that consolidated balance sheets and related statements of operations and retained earnings need not be provided for Inactive
Subsidiaries or Subsidiaries whose only asset is the Capital Stock of another Subsidiary of the Borrower and consolidating statements
need not be certified by such accountants);

 

(c)          concurrently
with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer of the Borrower (i)
certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken
or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with
Sections 6.08 and 6.09 and (iii) stating whether any change in GAAP or in the application thereof has occurred since the date of
the audited financial statements referred to in Section 3.04 and, if any such change has occurred, specifying the effect of such
change on the financial statements accompanying such certificate;

 

(d)          concurrently
with any delivery of financial statements under clause (a) above, a certificate of the accounting firm that reported on such
financial statements stating whether they obtained knowledge during the course of their examination of such financial statements
of any Default (which certificate may be limited to the extent required by accounting rules or guidelines or by the policies of
such accounting firm);

 

(e)          promptly
after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed
by the Borrower or any Subsidiary with the Securities and Exchange Commission, or any Governmental Authority succeeding to any
or all of the functions of said Commission, or with any national securities exchange, or distributed by the Borrower to its shareholders
generally, as the case may be;

 

(f)          within
45 days of the end of each fiscal year of the Borrower, an operating and cash flow budget prepared in a manner consistent with
the budgets delivered by Borrower to the Administrative Agent prior to the Effective Date or otherwise in a manner reasonably satisfactory
to the Administrative Agent; and

 

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(g)          promptly
following any request therefor, such other information regarding the operations, business affairs and financial condition of the
Borrower or any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender may reasonably
request.

 

SECTION 5.02.
Notices of Material Events. The Borrower will furnish to the Administrative Agent and each Lender prompt written notice
of the following:

 

(a)          the
occurrence of any Default;

 

(b)          the
filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting
any Credit Party that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;

 

(c)          the
occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected
to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $500,000;

 

(d)          any
claim to the effect that the Borrower or any of its Subsidiaries has become subject to any Environmental Liability or any allegation
that the Borrower or any of its Subsidiaries has violated any Environmental Law; and

 

(e)          any
other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.

 

Each notice delivered under this Section
shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details
of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

 

SECTION 5.03.
Existence; Conduct of Business. The Borrower will, and will cause each of its Subsidiaries to, do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges
and franchises material to the conduct of its business; provided that the foregoing shall not prohibit any merger, consolidation,
liquidation or dissolution permitted under Section 6.03. The Borrower will, and will cause each Subsidiary to, carry on and conduct
its business in substantially the same manner and in substantially the same fields of enterprise as it is presently conducted.

 

SECTION 5.04.
Payment of Obligations. The Borrower will, and will cause each of its Subsidiaries to, pay its obligations, including Tax
liabilities, that, if not paid, could result in a Material Adverse Effect before the same shall become delinquent or in default,
except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, and (b) the Borrower
or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP.

 

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SECTION 5.05.
Maintenance of Properties; Insurance. The Borrower will, and will cause each of its Subsidiaries to, (a) keep and maintain
all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, and
(b) maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as
are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations.

 

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

 

SECTION 5.07.
Compliance with Laws. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations
and orders of any Governmental Authority applicable to it or its property, except where the failure to do so, individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

 

SECTION 5.08.
Use of Proceeds and Letters of Credit. The proceeds of the Loans will be used only for general corporate purposes. No part
of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the
Regulations of the Board, including Regulations T, U and X. Letters of Credit will be issued for the Borrower’s general corporate
purposes.

 

SECTION 5.09.
Subsidiary Guaranty. The Borrower will promptly, but not more than 10 days after such event, cause each Domestic Subsidiary
which is acquired or created or which ceases to be an Inactive Subsidiary after the date hereof to execute and deliver to the Administrative
Agent a Subsidiary Guaranty. The Borrower shall notify the Administrative Agent, within 10 days after the occurrence thereof, of
any Person becoming a Subsidiary.

 

SECTION 5.10.
Further Assurances. The Borrower will, and will cause each Guarantor to, execute and deliver within 30 days after request
therefor by the Administrative Agent, all further instruments and documents and take all further action that may be necessary or
desirable, or that the Administrative Agent may request, in order to give effect to, and to aid in the exercise and enforcement
of the rights and remedies of the Administrative Agent under, this Agreement, the Notes and the Subsidiary Guaranty. In addition,
the Borrower agrees to deliver to the Administrative Agent within 30 days after the acquisition or creation of any Subsidiary not
listed in Schedule 3.12 hereto, supplements to Schedule 3.12 such that such Schedule, together with such supplements,
shall at all times accurately reflect the information provided for thereon.

 

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ARTICLE VI

 

Negative Covenants

 

Until the Commitments
have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in
full and all Letters of Credit shall have expired or terminated, in each case, without any pending draw, and all LC Disbursements
shall have been reimbursed, the Borrower covenants and agrees with the Lenders that:

 

SECTION 6.01.
Indebtedness. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any
Indebtedness, except:

 

(a)          Indebtedness
created hereunder;

 

(b)          Indebtedness
arising under Rate Management Transactions;

 

(c)          Indebtedness
existing on the date hereof and set forth in Schedule 6.01 and extensions, renewals and replacements of any such Indebtedness that
do not increase the outstanding principal amount thereof;

 

(d)          Indebtedness
of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary;

 

(e)          Indebtedness
of the Borrower or any Subsidiary incurred to finance the acquisition, construction or improvement of any fixed or capital assets,
including Capital Lease Obligations and any Indebtedness assumed in connection with the acquisition of any such assets or secured
by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals and replacements of any such Indebtedness
that do not increase the outstanding principal amount thereof; provided that (i) such Indebtedness is incurred prior to
or within 90 days after such acquisition or the completion of such construction or improvement and (ii) the aggregate principal
amount of Indebtedness permitted by this clause (e) shall not exceed $1,000,000 at any time outstanding;

 

(f)          Product
warranty obligations incurred in the ordinary course of business;

 

(g)          Subordinated
Indebtedness in an aggregate principal amount not to exceed $10,000,000 at any time outstanding;

 

(h)          The
Hurco GmbH Facility and a guaranty of payment of the Hurco GmbH Facility from the Borrower or any Subsidiary;

 

(i)          The
UK Facility and the Hurco UK Guaranty;

 

(j)          The
Taiwan Facility (or one or more Replacement Taiwan Facilities in an aggregate principal not exceed New Taiwan Dollars 200,000,000)
and the Hurco Taiwan Guaranty;

 

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(k)          Indebtedness
of the Borrower’s wholly-owned Subsidiary, Ningbo Hurco Machine Tools Co. Inc., to JPMCB (the “Ningbo Hurco Indebtedness”)
and a guaranty of payment of the Ningbo Hurco Indebtedness from the Borrower or any Subsidiary in favor of the Bank; and

 

(l)          Indebtedness
(other than Indebtedness permitted above in this Section 6.01) in the aggregate outstanding amount not exceeding $10,000,000 at
any time.

 

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

 

(a)          Permitted
Encumbrances;

 

(b)          any
Lien on any property or asset of the Borrower or any Subsidiary existing on the date hereof and set forth in Schedule 6.02; provided
that (i) such Lien shall not apply to any other property or asset of the Borrower or any Subsidiary and (ii) such Lien shall
secure only those obligations which it secures on the date hereof and extensions, renewals and replacements thereof that do not
increase the outstanding principal amount thereof;

 

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

 

(d)          Liens
on fixed or capital assets acquired, constructed or improved by the Borrower or any Subsidiary; provided that (i) such security
interests secure Indebtedness permitted by clause (f) of Section 6.01, (ii) such security interests and the Indebtedness secured
thereby are incurred prior to or within 90 days after such acquisition or the completion of such construction or improvement, (iii)
the Indebtedness secured thereby does not exceed 100% of the cost of acquiring, constructing or improving such fixed or capital
assets and (iv) such security interests shall not apply to any other property or assets of the Borrower or any Subsidiary.

 

SECTION 6.03.
Fundamental Changes.

 

(a)          The
Borrower will not, and will not permit any Subsidiary to, merge into or consolidate with any other Person, or permit any other
Person to merge into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and immediately after
giving effect thereto no Default shall have occurred and be continuing (i) any Person may merge into the Borrower in a transaction
in which the Borrower is the surviving corporation, (ii) any Person may merge into any Subsidiary in a transaction in which the
surviving entity is a Subsidiary (and, if either such Subsidiary is a Guarantor, then the surviving entity shall also be a Guarantor)
and (iii) any Subsidiary may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution
is in the best interests of the Borrower and is not materially disadvantageous to the Lenders; provided that any such merger
involving a Person that is not a Wholly-Owned Subsidiary immediately prior to such merger shall not be permitted unless also permitted
by Section 6.04.

 

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(b)          The
Borrower will not, nor will it permit any Subsidiary to, lease, sell or otherwise dispose of its property (other than cash) to
any other Person, except:

 

(i)          Sales
and leases of inventory in the ordinary course of business, and licensing of software, patents, and other assets in the ordinary
course of business.

 

(ii)         Leases,
sales or other dispositions of its property that, together with all other property of the Borrower and its Subsidiaries previously
leased, sold or disposed of (other than inventory in the ordinary course of business) as permitted by this Section during the twelve-month
period ending with the month in which any such lease, sale or other disposition occurs, do not constitute a Substantial Portion
of the property of the Borrower and its Subsidiaries.

 

(iii)        Sales
of the Borrower's Capital Stock.

 

(c)          The
Borrower will, and will cause each Subsidiary to, carry on and conduct its business in substantially the same manner and in substantially
the same fields of enterprise as it is presently conducted and do all things necessary to remain duly incorporated or organized,
validly existing and (to the extent such concept applies to such entity) in good standing as a domestic corporation, partnership
or limited liability company in its jurisdiction of incorporation or organization, as the case may be, and maintain all requisite
authority to conduct its business in each jurisdiction in which its business is conducted.

 

SECTION 6.04.
Investments, Loans, Advances, Guarantees and Acquisitions. The Borrower will not, and will not permit any of its Subsidiaries
to, purchase, hold or acquire (including pursuant to any merger with any Person that was not a Wholly-Owned Subsidiary prior to
such merger) any capital stock, evidences of indebtedness or other securities (including any option, warrant or other right to
acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit
to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series
of transactions) any assets of any other Person constituting a business unit, except:

 

(a)          Cash
investments under the Hurco Deferred Compensation Plan made pursuant to the Hurco Deferred Compensation Plan Trust Agreement;

 

(b)          Investments
in existence on the date hereof and described on Schedule 6.04;

 

(c)          Permitted
Investments;

 

(d)          Investments
by the Borrower existing on the date hereof in the capital stock of its Subsidiaries;

 

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(e)          Loans
or advances made by the Borrower to any Subsidiary and made by any Subsidiary to the Borrower or any other Subsidiary;

 

(f)          Guarantees
constituting Indebtedness permitted by Section 6.01;

 

(g)          Investments
made after the Effective Date comprised of capital contributions (whether in the form of cash, a note or other assets), up to $5,000,000
in the aggregate, to new or existing Subsidiaries; and

 

(h)          The
Borrower or any Subsidiary may make any Acquisition so long as (i) the Borrower or such Subsidiary, as the case may be, shall be
the survivor of such Acquisition, (ii) the Acquisition is of or with a Person engaged in a line of business
similar to the lines of business presently engaged in by the Borrower, which include the manufacturing of machine tools, development
of software for machine tools and distribution of machine tools, or a line of business that reasonably would be considered an ordinary
extension of any such line of business presently engaged in by the Borrower, (iii) the Acquisition is consensual and not
hostile or contested, (iv) both immediately before and after giving effect to such Acquisition, no Default or Event of Default
shall have occurred and be continuing or would result therefrom and the representations and warranties contained in this Agreement
and in the other Credit Documents shall be true and correct on and as of the date thereof (both before and after such Acquisition
is consummated), (v) as soon as available, and in any event not later than a date that provides the Administrative Agent a reasonable
amount of time prior to the proposed date of consummation of such Acquisition to complete its review, the Borrower shall have furnished
to the Administrative Agent such agreements, documents and information relating to the Acquisition, including without limitation
pro forma covenant calculations demonstrating covenant compliance as of the last day of the most recently ending fiscal quarter
after taking into account such Acquisition, and evidence of such authorizations and consents with respect to the Acquisition and
the requirements of the Credit Documents and the Administrative Agent in connection therewith, as the Administrative Agent may
reasonably request, all in form, substance and detail satisfactory to the Administrative Agent (collectively, the “Acquisition
Documents”), (vi) neither the Borrower nor any of its Subsidiaries shall, as a result of or in connection with such Acquisition,
assume or incur any direct or contingent liabilities (whether relating to environmental, tax, litigation, or other matters) that
could reasonably be expected to have a Material Adverse Effect, (vii) all parties to the Acquisition Documents shall have consented
to the assignment to the Administrative Agent of all rights of the Borrower and its Subsidiaries under the Acquisition Documents
and to the reliance by the Administrative Agent on all opinions delivered in connection with such Acquisition, (viii) neither the
Borrower nor any of its Subsidiaries shall, as a result of or in connection with such Acquisition, assume or incur any direct or
contingent liabilities (whether relating to environmental, tax, litigation, or other matters) that could reasonably be expected
to have a Material Adverse Effect, (ix) immediately before and after the consummation of such Acquisition, the sum of the unused
amount of the Commitment plus the Borrower's cash on hand as demonstrated to the Administrative Agent to its reasonable satisfaction
shall be not less than $5,000,000, and (x) concurrently with the consummation of such Acquisition, the Borrower and its Subsidiaries,
including without limitation each such Subsidiary acquired or created in connection with such Acquisition, shall comply with all
of the requirements of this Agreement and the other Credit Documents, including without limitation causing to be executed and/or
delivered at such time all agreements and other documents of the types required under Sections 4.1, 5.09 and 5.10 of this Agreement.

 

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SECTION 6.05.
Restricted Payments. The Borrower will not, and will not permit any of its Subsidiaries to, declare, pay or make, or agree
to declare, pay or make, directly or indirectly, any Restricted Payment, except (a) the Borrower may declare and pay dividends
with respect to its Equity Interests (i) payable solely in additional shares of its common stock and (ii) so long as no Default
or Event of Default shall have occurred and be continuing or would result therefrom, payable in cash in an amount not to exceed
an aggregate of $1,000,000 per calendar year, (b) Subsidiaries may declare and pay dividends ratably with respect to their
Equity Interests, and (c) the Borrower may make Restricted Payments pursuant to and in accordance with stock option plans
or other benefit plans for management or employees of the Borrower and its Subsidiaries.

 

SECTION 6.06.
Transactions with Affiliates. The Borrower will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise
transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in
any other transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices and on terms and conditions
not less favorable to the Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third
parties, (b) transactions between or among the Borrower and its Wholly-Owned Subsidiaries not involving any other Affiliate and
(c) any Restricted Payment permitted by Section 6.05.

 

SECTION 6.07.
Restrictive Agreements. The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, enter
into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the
ability of the Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets, or (b)
with respect to any material agreement, including any agreement governing Material Indebtedness, the ability of any Subsidiary
to pay dividends or other distributions with respect to any shares of its capital stock or to make or repay loans or advances to
the Borrower or any other Subsidiary or to Guarantee Indebtedness of the Borrower or any other Subsidiary; provided that
(i) the foregoing shall not apply to restrictions and conditions imposed by law or by this Agreement, (ii) the foregoing shall
not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.07 (but shall apply to any extension
or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), (iii) the foregoing
shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such
sale, provided that such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted
hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to
secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing
such Indebtedness and (v) clause (a) of the foregoing shall not apply to customary provisions in leases restricting the assignment
thereof.

 

SECTION 6.08.
Minimum Working Capital. The Borrower will not permit its Working Capital at any time to be less than $90,000,000.

 

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SECTION 6.09.
Minimum Tangible Net Worth. The Borrower will not permit its Tangible Net Worth at any time to be less than $120,000,000.

 

SECTION 6.10.
Sale and Leaseback Transactions. The Borrower will not, nor will it permit any Subsidiary to, enter into or suffer to exist
any Sale and Leaseback Transaction if the sum of the aggregate amount of obligations of the Borrower and its Subsidiaries under
the resulting leases under all such Sale and Leaseback Transactions plus the aggregate principal amount of all Indebtedness secured
by Liens permitted under Section 6.02(d) does not exceed $10,000,000 at any time.

 

SECTION 6.11.
Banking Relationship. The Borrower will use, and cause its Subsidiaries to use, the Administrative Agent as its primary
bank of account, cash management and related account services, in each case, subject to restrictions under applicable laws.

 

ARTICLE VII

 

Events of Default

 

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

 

(a)          the
Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement or fail
to deposit any cash collateral amount due pursuant to Section 2.05(j) when and as the same shall become due and payable, whether
at the due date thereof or at a date fixed for prepayment thereof or otherwise;

 

(b)          the
Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause
(a) of this Article) payable under this Agreement, when and as the same shall become due and payable, and such failure shall continue
unremedied for a period of three days following written notice thereof to the Borrower;

 

(c)          any
representation or warranty made or deemed made by or on behalf of the Borrower or any Subsidiary in or in connection with this
Agreement or any amendment or modification hereof or waiver hereunder, or in any report, certificate, financial statement or other
document furnished pursuant to or in connection with this Agreement or any amendment or modification hereof or waiver hereunder,
shall prove to have been materially incorrect when made or deemed made and the Borrower or such Subsidiary fails to remedy such
misrepresentation within five days following written notice thereof to the Borrower or after the Borrower otherwise becomes aware
of such misrepresentation;

 

(d)          the
Borrower shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02, 5.03 (with respect to
the Borrower’s existence) or 5.08 or in Article VI;

 

(e)          the
Borrower shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified
in clause (a), (b) or (d) of this Article), and such failure shall continue unremedied for a period of 30 days after notice thereof
from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender) or after the Borrower otherwise
becomes aware of such breach;

 

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(f)          the
Borrower or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect
of any Material Indebtedness, when and as the same shall become due and payable;

 

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

 

(h)          an
involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or
other relief in respect of the Borrower or any Subsidiary or its debts, or of a substantial part of its assets, under any Federal,
state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary or for a substantial part
of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree
approving or ordering any of the foregoing shall be entered;

 

(i)          the
Borrower or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization
or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect,
(ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described
in clause (h) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Borrower or any Subsidiary or for a substantial part of its assets, (iv) file an answer
admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the
benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

 

(j)          the
Borrower or any Subsidiary shall become unable, admit in writing its inability or fail generally to pay its debts as they become
due;

 

(k)          The
Borrower or any of its Subsidiaries shall fail within 30 days to pay, bond or otherwise discharge one or more (i) judgments or
orders for the payment of money in excess of $100,000 (or equivalent thereof in currencies other than Dollars) in the aggregate,
or (ii) nonmonetary judgments or orders which, individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect, which judgment(s), in any such case, is/are not stayed on appeal or otherwise being appropriately contested in
good faith;

 

(l)          an
ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together with all other ERISA Events that
have occurred, could reasonably be expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount
exceeding $500,000;

 

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(m)          the
Subsidiary Guaranty or any provisions thereof shall cease to be in full force or effect as to the Borrower or any Subsidiary Guarantor,
or the Borrower, any Subsidiary Guarantor or any Person acting for or on behalf of the Borrower or any Subsidiary Guarantor shall
deny or disaffirm the Borrower’s or such Subsidiary Guarantor’s obligations under the Subsidiary Guaranty;

 

(n)          any
Subsidiary Guarantor shall fail to comply with any of the terms or provisions of the Subsidiary Guaranty;

 

(o)          the
occurrence of any “default”, as defined in any Credit Document (other than this Agreement) or the breach of any of
the terms or provisions of any Credit Document (other than this Agreement) which default or breach continues beyond any period
of grace therein provided; or

 

(p)          nonpayment
by the Borrower or any Subsidiary of any Rate Management Obligation when due or the breach by the Borrower or any Subsidiary of
any term, provision or condition contained in any Rate Management Transaction,

 

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

 

ARTICLE VIII

 

The Administrative
Agent

 

SECTION 8.01.
Appointment. Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent
and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto.

 

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SECTION 8.02.
Rights and Power. The bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity
as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and such bank and its
Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary
or other Affiliate thereof as if it were not the Administrative Agent hereunder.

 

SECTION 8.03.
Exculpatory Provisions. The Administrative Agent shall not have any duties or obligations except those expressly set forth
herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or
other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have
any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly
contemplated hereby that the Administrative Agent is required to exercise in writing as directed by the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), and
(c) except as expressly set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable
for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated to or obtained
by the bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage
of the Lenders as shall be necessary under the circumstances as provided in Section 9.02) or in the absence of its own gross negligence
or willful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice
thereof is given to the Administrative Agent by the Borrower or a Lender, and the Administrative Agent shall not be responsible
for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this
Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or in connection herewith, (iii)
the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement or any other agreement, instrument or document, or (v)
the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly
required to be delivered to the Administrative Agent.

 

SECTION 8.04.
Administrative Agent Reliance. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability
for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to
be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon any statement made
to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants
and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice
of any such counsel, accountants or experts.

 

SECTION 8.05.
Delegation of Duties. The Administrative Agent may perform any and all its duties and exercise its rights and powers by
or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions
of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such
sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent.

 

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SECTION 8.06.
Resignation. Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph,
the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Bank and the Borrower. Upon any such resignation,
the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor. If no successor shall have
been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Bank,
appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such
bank. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After
the Administrative Agent’s resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect
for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while it was acting as Administrative Agent.

 

SECTION 8.07.
Lender Non-Reliance. Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent
or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or based upon this Agreement, any related agreement or
any document furnished hereunder or thereunder.

 

SECTION 8.08.
Other Titles. No Lender identified in this Agreement as a “Documentation Agent” or a “Syndication Agent”
shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than those applicable to
all Lenders as such. Without limiting the foregoing, none of such Lenders shall have or be deemed to have a fiduciary relationship
with any Lender. Each Lender hereby makes the same acknowledgments with respect to such Lenders as it makes with respect to the
Administrative Agent in this Article VIII.

 

ARTICLE IX

 

Miscellaneous

 

SECTION 9.01.
Notices. (a) Except in the case of notices and other communications expressly permitted to be given by telephone (and subject
to paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or sent by electronic mail, as follows:

 

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(i)          if
to the Borrower, to it at One Technology Way, Indianapolis, Indiana 46268, Attention of CFO (E-mail: OblazneyJ@hurco.com);

 

(ii)         if
to the Administrative Agent, to JPMorgan Chase Bank, N.A., 1 East Ohio Street, 4th Floor, Indianapolis, Indiana 46277,
Attention of Thomas Harrison (E-mail: thomas.w.harrison@chase.com) and Jim MacDonald (E-mail: jim.macdonald@chase.com);

 

(iii)        if
to the Issuing Bank, to it at 10 South Dearborn, Floor 07, Chicago, Illinois 60603, Attention of Cristie Pisowicz (E-Mail: cristie.m.pisowicz@chase.com);
and

 

(iv)        if
to any other Lender, to it at its address (or e-mail address) set forth in its Administrative Questionnaire.

 

(b)          Notices
and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise
agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion,
agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by
it; provided that approval of such procedures may be limited to particular notices or communications. References elsewhere in this
Agreement to the giving of notices by electronic mail shall be effective only to the extent that the Borrower, Administrative Agent
or Issuing Bank, as applicable, has agreed to accept such notices in such manner pursuant to this Section 9.01(b).

 

(c)          Any
party hereto may change its address or E-mail for notices and other communications hereunder by notice to the other parties hereto.
Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given
when received and notices delivered through electronic communications to the extent provided in paragraph (b) of this Section shall
be effective as provided in such paragraph.

 

SECTION 9.02.
Waivers; Amendments. (a) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in exercising any
right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power,
or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof
or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders
hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision
of this Agreement or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and
for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter
of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or the
Issuing Bank may have had notice or knowledge of such Default at the time.

 

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(b)          Neither
this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing
entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required
Lenders; provided that no such agreement shall (i) increase the Commitment of any Lender without the written consent of
such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce
any fees payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the scheduled date
of payment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder, or reduce
the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written
consent of each Lender affected thereby, (iv) change Section 2.17(b) or (c) in a manner that would alter the pro rata sharing
of payments required thereby, without the written consent of each Lender, (v) change any of the provisions of this Section or the
definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required
to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent
of each Lender or (vi) release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty without the written
consent of each Lender; provided further that no such agreement shall (i) amend, modify or waive Section 2.19 without
the prior written consent of the Administrative Agent and the Issuing Bank or (ii) amend, modify or otherwise affect the rights
or duties of the Administrative Agent or the Issuing Bank hereunder without the prior written consent of the Administrative Agent
or the Issuing Bank, as the case may be.

 

SECTION 9.03.
Expenses; Indemnity; Damage Waiver. (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative
Agent, in connection with the syndication of the credit facilities provided for herein, the preparation and administration of this
Agreement or any amendments, modifications or waivers of the provisions hereof (whether or not the transactions contemplated hereby
or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket
expenses incurred by the Administrative Agent, the Issuing Bank or any Lender, including the fees, charges and disbursements of
any counsel for the Administrative Agent, the Issuing Bank or any Lender, in connection with the enforcement or protection of its
rights in connection with this Agreement, including its rights under this Section, or in connection with the Loans made or Letters
of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations
in respect of such Loans or Letters of Credit.

 

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(b)          The
Borrower shall indemnify the Administrative Agent, the Issuing Bank and each Lender, and each Related Party of any of the foregoing
Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any
and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any counsel
for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement or any agreement or instrument contemplated hereby, the performance by the parties hereto
of their respective obligations hereunder or the consummation of the Transactions or any other transactions contemplated hereby,
(ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand
for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the
terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property
owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower
or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory, whether brought by a Credit Party or a third party, and regardless
of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available
to the extent that such losses, claims, damages, liabilities or related expenses resulted from the gross negligence or willful
misconduct of such Indemnitee. This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent
losses, claims or damages arising from any non-Tax claim.

 

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

 

(d)          To
the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising
out of, in connection with, or as a result of, this Agreement or any agreement or instrument contemplated hereby, the Transactions,
any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee shall be liable for any damages arising from the
use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or
other information transmission systems in connection with this Agreement or the other Credit Documents or the transactions contemplated
hereby or thereby except to the extent such damages are found by a final, non-appealable judgment of a court to arise from the
willful misconduct or gross negligence of such indemnified person.

 

(e)          All
amounts due under this Section shall be payable promptly after written demand therefor.

 

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SECTION 9.04.
Successors and Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any
Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent
shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance
with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues
any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right,
remedy or claim under or by reason of this Agreement.

 

(b)          (i)
Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Persons (other than Ineligible
Institutions) assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld)
of:

 

(A)         the
Borrower, provided that no consent of the Borrower shall be required for an assignment to a Lender, an Affiliate of a Lender,
an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee; and provided that the Borrower
shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative
Agent within 5 Business Days after having received notice thereof;

 

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

 

(C)         the
Issuing Bank.

 

(ii)         Assignments
shall be subject to the following additional conditions:

 

(A)         except
in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans of any Class, the amount of the Commitment or Loans of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative
Agent) shall not be less than $5,000,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided
that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;

 

(B)         each
partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement;

 

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

 

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

 

(iii)        Subject
to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified
in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by
such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder
shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.14, 2.15,
2.16 and 9.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with
this Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section.

 

(iv)        The
Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each
Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the
Commitment of, and principal amount (and stated interest) of the Loans and LC Disbursements owing to, each Lender pursuant to the
terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower,
the Administrative Agent, the Issuing Bank and the Lenders shall 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, the Issuing Bank and any Lender, at any reasonable time and from time to time
upon reasonable prior notice.

 

(v)         Upon
its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee’s
completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section,
the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register;
provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by
it pursuant to Section 2.05(d) or (e), 2.06(b), 2.17(d) or 9.03(c), the Administrative Agent shall have no obligation to accept
such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been
made in full, together with all accrued interest thereon. No assignment shall be effective for purposes of this Agreement unless
it has been recorded in the Register as provided in this paragraph.

 

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(c)          Any
Lender may, without the consent of the Borrower, the Administrative Agent or the Issuing Bank, sell participations to one or more
banks or other entities (a “Participant”), other than an Ineligible Institution, in all or a portion of such
Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to
it); provided that (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, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant
to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement
and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in the first proviso to Section 9.02(b) that affects such Participant. The Borrower agrees that each Participant
shall be entitled to the benefits of Sections 2.14, 2.15 and 2.16 (subject to the requirements and limitations therein, including
the requirements under Section 2.16(f) (it being understood that the documentation required under Section 2.16(f) shall be
delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant
to paragraph (b) of this Section; provided that such Participant (i) agrees to be subject to the provisions of 2.18
as if it were an assignee under paragraph (b) of this Section; and (ii) shall not be entitled to receive any greater payment
under Sections 2.14 or 2.16, with respect to any participation, than its participating Lender would have been entitled to receive,
except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant
acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower’s request and expense,
to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.19(b) with respect to any
Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though
it were a Lender; provided that such Participant agrees to be subject to Section 2.17(c) as though it were a Lender.
Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain
a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each
Participant’s interest in the Loans or other obligations under the Credit Documents (the “Participant Register”);
provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including
the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans, Letters
of Credit or its other obligations under any Credit Document) to any Person except to the extent that such disclosure is necessary
to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of
the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and
such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all
purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in
its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

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(d)          Any
Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank,
and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

 

SECTION 9.05.
Survival. All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates
or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by
the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans and issuance
of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that
the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation
or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal
of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or
any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. Notwithstanding the foregoing
or anything else to the contrary set forth in this Agreement, in the event that, in connection with the refinancing or repayment
in full of the credit facilities provided for herein, an Issuing Bank shall have provided to the Administrative Agent a written
consent to the release of the Lenders from their obligations hereunder with respect to any Letter of Credit issued by such Issuing
Bank (whether as a result of the obligations of the Borrower (and any other account party) in respect of such Letter of Credit
having been collateralized by a deposit of cash with such Issuing Bank in an amount acceptable to such Issuing Bank in its sole
discretion, or being supported by a letter of credit acceptable to the Issuing Bank in its sole discretion that names such Issuing
Bank as the beneficiary thereunder, or otherwise to the satisfaction of such Issuing Bank), then from and after such time such
Letter of Credit shall cease to be a “Letter of Credit” outstanding hereunder for all purposes of this Agreement, and
the Lenders shall be deemed to have no participations in such Letter of Credit. The provisions of Sections 2.13, 2.14, 2.15 and
9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated
hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination
of this Agreement or any provision hereof.

 

SECTION 9.06.
Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto
on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a
single contract. This Agreement and any separate letter agreements with respect to fees payable to the Administrative Agent constitute
the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective
when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts
hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart
of a signature page of this Agreement by electronic means that reproduces an image of the actual executed signature page shall
be effective as delivery of a manually executed counterpart of this Agreement.

 

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SECTION 9.07.
Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity,
legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction
shall not invalidate such provision in any other jurisdiction.

 

SECTION 9.08.
Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is
hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Lender
or Affiliate to or for the credit or the account of the Borrower against any of and all the obligations of the Borrower now or
hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand
under this Agreement and although such obligations may be unmatured. The rights of each Lender under this Section are in addition
to other rights and remedies (including other rights of setoff) which such Lender may have.

 

SECTION 9.09.
Governing Law; Jurisdiction; Consent to Service of Process. (a)This Agreement shall be construed in accordance with and
governed by the law of the State of Indiana.

 

(b)          The
Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme
Court of the State of Indiana sitting in Marion County and of the United States District Court of the Southern District of Indiana,
and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition
or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in any such Indiana State court or, to the extent permitted
by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in
this Agreement shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring
any action or proceeding relating to this Agreement against the Borrower or its properties in the courts of any jurisdiction.

 

(c)          The
Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this
Agreement in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such
court.

 

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(d)          Each
party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01. Nothing
in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

SECTION 9.10.
WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

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

 

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

 

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EACH LENDER ACKNOWLEDGES
THAT INFORMATION AS DEFINED IN SECTION 9.12(a) FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION
CONCERNING THE BORROWER AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES
REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE
WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS. 

 

ALL INFORMATION, INCLUDING
REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING,
THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER AND ITS
AFFILIATES, THE CREDIT PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES. ACCORDINGLY, EACH LENDER REPRESENTS TO
THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE
INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.

 

SECTION 9.13.
Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to
any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively
the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted
for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest
payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum
Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable
as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect
of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with
interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.

 

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

 

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SECTION 9.15.
No Fiduciary Duty. The Administrative Agent, each Lender and their Affiliates (collectively, solely for purposes of this
paragraph, the “Lenders”) may have economic interests that conflict
with those of the Borrower, its stockholders and/or its Affiliates. The Borrower agrees that nothing in the Credit Documents or
otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any
Lender, on the one hand, and the Borrower, its stockholders or its Affiliates, on the other.  The Borrower acknowledges and
agrees that (i) the transactions contemplated by the Credit Documents (including the exercise of rights and remedies hereunder
and thereunder) are arm’s-length commercial transactions between the Lenders, on the one hand, and the Borrower, on the other,
and (ii) in connection therewith and with the process leading thereto, (x) no Lender has assumed an advisory or fiduciary responsibility
in favor of the Borrower, its stockholders or its Affiliates with respect to the transactions contemplated hereby (or the exercise
of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender has advised, is
currently advising or will advise the Borrower, its stockholders or its Affiliates on other matters) or any other obligation to
the Borrower except the obligations expressly set forth in the Credit Documents and (y) each Lender is acting solely as principal
and not as the agent or fiduciary of the Borrower, its management, stockholders, creditors or any other Person. The Borrower acknowledges
and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible
for making its own independent judgment with respect to such transactions and the process leading thereto.  The Borrower agrees
that it will not claim that any Lender has rendered advisory services of any nature or respect, or owes a fiduciary or similar
duty, to the Borrower in connection with such transactions or the process leading thereto.

 

[signature pages follow]

 

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

 

	 	HURCO COMPANIES, INC.
	 	 
	 	By:	/s/ John G. Oblazney
	 	Name: John G. Oblazney
	 	Title: Chief Financial Officer
	 	 
	 	JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent
	 	 
	 	 
	 	By: 	/s/ Thomas W. Harrison
	 	Name: Thomas W. Harrison
	 	Title: Senior Vice President

 

[Signature page to Credit Agreement –
Hurco Companies, Inc.]

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