Document:

Exhibit 4.5

 Exhibit 4.5 

WARRANT AGREEMENT 

This Warrant Agreement made as of
[                    ], 2010, is between Aldagen, Inc., a Delaware corporation, with offices at 2810 Meridian Parkway, Suite 148, Durham, NC
27713 (the “Company”), and StockTrans, Inc., with offices at 44 West Lancaster Avenue, Ardmore, PA 19003 (the “Warrant Agent”). 

WHEREAS, the Company is engaged in a public offering of units, each unit comprised of one share of Common Stock (as defined below) and
one Warrant (as defined below) to purchase one-half of a share of Common Stock (the “Units”) and, in connection therewith, has determined to issue and deliver up to
[                    ] warrants (the “Warrants”) to the investors in the public offering, each Warrant evidencing the right
of the holder thereof to purchase one-half of a share of the Company’s common stock, par value $.001 per share (the “Common Stock”), at a price per whole share of
$[            ], subject to adjustment as described herein; 

WHEREAS, the Company has filed with the Securities and Exchange Commission a registration statement on Form S-1 (File
No. 333-162700), as amended (the “Registration Statement”), for the registration under the Securities Act of 1933, as amended (the “Act”), of, the Units, the Warrants and the Common Stock issuable upon exercise
of the Warrants; 
 WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is
willing to so act, in connection with the issuance, registration, transfer, exchange, redemption and exercise of the Warrants; 

WHEREAS, the Company desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and
exercised, and the respective rights, limitation of rights and immunities of the Company, the Warrant Agent and the holders of the Warrants; and 

WHEREAS, all acts and things have been done and performed which are necessary to make the Warrants, when executed on behalf of the
Company and countersigned by or on behalf of the Warrant Agent, as provided herein, the legally valid and binding obligations of the Company, and to authorize the execution and delivery of this Warrant Agreement. 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows: 

1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants,
and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this Agreement. 

2. Warrants. 

2.1 Form of Warrant. Each Warrant shall be (a) issued in registered form only, (b) in substantially the form of Exhibit
A attached hereto, the provisions of which are incorporated herein, (c) signed by, or bear the facsimile signature of, the Chairman of the Board or, the Chief Executive Officer or the President, and the Treasurer, Secretary or Assistant
Secretary of the Company, and (d) shall bear a facsimile of the Company’s seal. In the event the person whose facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity in which such person signed the
Warrant before such Warrant is issued, it may be issued with the same effect as if he or she had not ceased to be such at the date of issuance. 

2.2 Effect of Countersignature. Unless and until a Warrant certificate is countersigned by the Warrant Agent pursuant to this
Agreement, a Warrant certificate shall be invalid and of no effect and may not be exercised by the holder thereof. Warrant certificates shall be dated the date of countersignature by the Warrant Agent. 

2.3 Registration. 

2.3.1 Warrant Register. The Warrant Agent shall maintain books (“Warrant Register”), for the registration of the
original issuance and transfers of the Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue and register the Warrants in the names of the respective holders thereof in such denominations and otherwise in accordance with
instructions delivered to the Warrant Agent by the Company. 
  

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 2.3.2 Registered Holder. Prior to due presentment for registration of transfer of
any Warrant, the Company and the Warrant Agent may deem and treat the person in whose name such Warrant shall be registered upon the Warrant Register (“Registered Holder”), as the absolute owner of such Warrant (notwithstanding any
notation of ownership or other writing on the warrant certificate made by anyone other than the Company or the Warrant Agent), for the purpose of any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall
be affected by any notice to the contrary. 
 2.4 Separability of Warrants. The Warrants and the shares of Common Stock
included in the Units will not be separately transferable until [                    ], 2010, unless Boenning & Scattergood
determines that an earlier date, which may not be earlier than [            ], 2010, is acceptable for separate trading to begin, in which case the Company will publicly announce the date
for separate trading to begin (the earlier of such dates, the “Separation Date”). 
 3. Terms and Exercise
of Warrants. 
 3.1 Warrant Price. Each Warrant certificate shall, when countersigned by the Warrant Agent, entitle
the Registered Holder thereof, subject to the provisions of such Warrant certificate and of this Warrant Agreement, to purchase from the Company the number of shares of Common Stock stated therein, at the price of
$[            ] per whole share, subject to the adjustments provided in Section 4 hereof and in the last sentence of this Section 3.1. The term “Warrant
Price” as used in this Warrant Agreement refers to the price per whole share at which Common Stock may be purchased at the time a Warrant is exercised. The Company, in its sole discretion, may lower the Warrant Price at any time prior to
the Expiration Date (as defined below); provided, that any such reduction shall be identical in percentage terms among all of the Warrants. 

3.2 Duration of Warrants. A Warrant may be exercised only during the period (“Exercise Period”) commencing on the
Separation Date and terminating at 5:00 p.m., New York City time, on the Expiration Date. For purposes of this Warrant Agreement, the “Expiration Date” shall mean the earlier to occur of
(i) [                    ], 2015, and (ii) the date fixed for redemption of the Warrants as provided in Section 6 of this
Warrant Agreement. Except with respect to the right to receive the Redemption Price (as set forth in Section 6 hereunder), each Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all
rights in respect thereof under this Agreement shall cease at the close of business on the Expiration Date. The Company may extend the duration of the Warrants by delaying the Expiration Date; provided, however, that the Company will provide notice
to registered holders of the Warrants of such extension of not less than 20 days. 
 3.3 Exercise of Warrants.

 3.3.1 Payment. Subject to the provisions of the Warrant certificate and this Warrant Agreement, a Warrant
certificate, when countersigned by the Warrant Agent, may be exercised by the Registered Holder thereof by surrendering it, at the office of the Warrant Agent, or at the office of its successor as Warrant Agent, with the subscription form, as set
forth in the Warrant certificate, duly executed, and by paying in full, in lawful money of the United States, by certified check made payable to the Company or by wire transfer of immediately available funds to an account designated by the Company
(or as otherwise agreed to by the Company), the Warrant Price for each full share of Common Stock as to which the Warrant is exercised and any and all applicable taxes due in connection with the exercise of the Warrant and the issuance of the Common
Stock. In no event shall the Registered Holder of any Warrant be entitled to “net cash settle” the Warrant. 

3.3.2 Issuance of Certificates. As soon as practicable after the exercise of any Warrant and the clearance of the funds in
payment of the Warrant Price, the Company shall issue to the Registered Holder of such Warrant a certificate or certificates representing the number of full shares of Common Stock to which he, she or it is entitled, registered in such name or names
as may be directed by him, her or it, and, if such Warrant shall not have been exercised or surrendered in full, a new countersigned Warrant certificate for the number of shares as to which such Warrant shall not have been exercised or
surrendered. Subject to Section 7.4 and notwithstanding the foregoing, the Company shall not be obligated to deliver any securities pursuant to the exercise of a Warrant 

 

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unless a registration statement under the Act with respect to the Common Stock issuable upon exercise of such Warrants is effective and a current prospectus relating to the shares of Common Stock
issuable upon exercise of the Warrants is available for delivery to the Warrant holders and such securities are qualified for sale or exempt from qualification under applicable securities laws of the states or other jurisdictions in which the
Registered Holder resides. Warrants may not be exercised by, or securities issued to, any Registered Holder in any state in which such exercise or issuance would be unlawful. In the event a registration statement under the Act with respect to the
Common Stock underlying the Warrants is not effective or a prospectus is not available, or because such exercise would be unlawful with respect to a Registered Holder in any state, the Registered Holder shall not be entitled to exercise such
Warrants and such Warrants may have no value and expire worthless. In no event will the Company be obligated to pay such Registered Holder any cash consideration upon exercise (except pursuant to Section 4.5). 

3.3.3 Valid Issuance. All shares of Common Stock issued upon the proper exercise or surrender of a Warrant in conformity with
this Agreement shall be validly issued, fully paid and nonassessable. 
 3.3.4 Date of Issuance. Each person or entity
in whose name any such certificate for shares of Common Stock is issued shall, for all purposes, be deemed to have become the holder of record of such shares on the date on which the Warrant was surrendered and payment of the Warrant Price was made,
irrespective of the date of delivery of such certificate, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares
at the close of business on the next succeeding date on which the stock transfer books are open. 
 4. Adjustments.

 4.1 Stock Dividends and Split-Ups. If, after the date hereof, and subject to the provisions of Section 4.6 below,
the number of outstanding shares of Common Stock is increased by a stock dividend payable in shares of Common Stock, or by a split-up of shares of Common Stock, or other similar event, then, on the effective date of such stock dividend, split-up or
similar event, the number of shares of Common Stock issuable on exercise of each Warrant shall be increased in proportion to such increase in outstanding shares of Common Stock. 

4.2 Aggregation of Shares. If, after the date hereof, and subject to the provisions of Section 4.6, the number of outstanding
shares of Common Stock is decreased by a consolidation, combination, reverse stock split or reclassification of shares of Common Stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split,
reclassification or similar event, the number of shares of Common Stock issuable on exercise of each Warrant shall be decreased in proportion to such decrease in outstanding shares of Common Stock. 

4.3 Adjustments in Warrant Price. Whenever the number of shares of Common Stock purchasable upon the exercise of the Warrants is
adjusted, as provided in Sections 4.1 and 4.2 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price, immediately prior to such adjustment, by a fraction, (a) the numerator of which shall be the
number of shares of Common Stock purchasable upon the exercise of the Warrants immediately prior to such adjustment, and (b) the denominator of which shall be the number of shares of Common Stock so purchasable immediately thereafter.

 4.4 Extraordinary Dividends. If the Company, at any time during the Exercise Period, shall pay a dividend in cash,
securities or other assets to the holders of Common Stock (or other shares of the Company’s capital stock into which the Warrants are convertible), other than (i) as described in Sections 4.1, 4.2 or 4.5 or (ii) regular quarterly or
other periodic dividends (any such non-excluded event being referred to herein as an “Extraordinary Dividend”), then the Warrant Price shall be decreased, effective immediately after the effective date of such Extraordinary
Dividend, by the amount of cash and/or the fair market value (as determined by the Company’s Board of Directors, in good faith) of any securities or other assets paid on each share of Common Stock in respect of such Extraordinary Dividend.

  

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 4.5 Replacement of Securities upon Reorganization, etc. In case of any
reclassification or reorganization of the outstanding shares of Common Stock (other than a change covered by Sections 4.1 or 4.2 hereof or one that solely affects the par value of such shares of Common Stock), or, in the case of any merger or
consolidation of the Company with or into another corporation (other than a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding shares of
Common Stock), or, in the case of any sale or conveyance to another corporation or entity of the assets or other property of the Company as an entirety or substantially as an entirety, in connection with which the Company is dissolved, the Warrant
holders shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the shares of Common Stock of the Company immediately theretofore purchasable and receivable
upon the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution
following any such sale or transfer, that the Warrant holder would have received if such Warrant holder had exercised his, her or its Warrant(s) immediately prior to such event; and if any reclassification also results in a change in shares of
Common Stock covered by Sections 4.1 or 4.2, then such adjustment shall be made pursuant to Sections 4.1, 4.2, 4.3 and this Section 4.5. The provisions of this Section 4 shall similarly apply to successive reclassifications,
reorganizations, mergers or consolidations, sales or other transfers. 
 4.6 Notices of Changes in Warrant. Upon every
adjustment of the Warrant Price or the number of shares issuable upon exercise of a Warrant, the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting from such adjustment and the
increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of
any event specified in Sections 4.1, 4.2, 4.3, 4.4 or 4.5 the Company shall give written notice to each Warrant holder, at the last address set forth for such holder in the Warrant Register, of the record date or the effective date of the event.
Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event. 
 4.7 No
Fractional Shares. No fractional shares of Common Stock shall be issued upon the partial or full exercise of a Warrant. If the partial or full exercise would result in the issuance of a fractional share, the number of shares of Common Stock to
be issued will be rounded down to the nearest whole share. 
 4.8 Form of Warrant. The form of Warrant need not be
changed because of any adjustment pursuant to this Section 4, and Warrants issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants initially issued pursuant to this Agreement.
However, the Company may, at any time, in its sole discretion, make any change in the form of Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter issued or countersigned, whether
in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so changed. 
 4.9 Notice of
Certain Transactions. In the event that the Company shall propose to (a) offer to all the holders of its Common Stock rights to subscribe for or to purchase any securities convertible into shares of Common Stock or shares of stock of
any class or any other securities, rights or options, (b) issue any rights, options or warrants entitling all the holders of Common Stock to subscribe for shares of Common Stock or (c) make a tender offer, redemption offer or exchange
offer with respect to the Common Stock, the Company shall send to the Warrant holders a notice of such proposed action or offer. Such notice shall be mailed to the registered holders at their addresses as they appear in the Warrant Register, which
shall specify the record date for the purposes of such dividend, distribution or rights, or the date such issuance or event is to take place and the date of participation therein by the holders of Common Stock, if any such date is to be fixed, and
shall briefly indicate the effect of such action on the Common Stock and on the number and kind of any other shares of stock and on other property, if any, and the number of shares of Common Stock and other property, if any, issuable upon exercise
of each Warrant and the Warrant Price after giving effect to any adjustment pursuant to this Article 4 which would be required as a result of such action. Such notice shall be given as promptly as practicable after the Board has determined to take
any such action and (x) in the case of any action covered by clause (a) or (b) above at least 10 days prior to the record date for determining the holders of the Common Stock for purposes of such action or (y) in the case of any
other such action at least 20 days prior to the date of the taking of such proposed action or the date of participation therein by the holders of Common Stock, whichever shall be the earlier. 

 

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 4.10 Other Events. If any event occurs as to which the foregoing provisions of
this Article 4 are not strictly applicable or, if strictly applicable, would not, in the good faith judgment of the Board, fairly and adequately protect the purchase rights of the registered holders of the Warrants in accordance with the essential
intent and principles of such provisions, then the Board shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as shall be reasonably necessary, in the good faith opinion of the
Board, to protect such purchase rights as aforesaid. 
 5. Transfer and Exchange of Warrants. 

5.1 Transfer of Warrants. Prior to the Separation Date, the Warrants may be transferred or exchanged only together with the Unit
in which such Warrant is included, and only for the purpose of effecting, or in conjunction with, a transfer or exchange of such Unit. Furthermore, each transfer of a Unit on the register relating to such Units shall operate also to transfer the
Warrants included in such Unit. From and after the Separation Date, this Section 5.1 will have no further force and effect. 

5.2 Registration of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant into
the Warrant Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to time upon the Company’s request. 

5.3 Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request for
exchange or transfer, and, thereupon, the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the Registered Holder of the Warrants so surrendered, representing an equal aggregate number of Warrants; provided,
however, that, in the event a Warrant surrendered for transfer bears a restrictive legend, the Warrant Agent shall not cancel such Warrant and shall issue new Warrants in exchange therefor until the Warrant Agent has received an opinion of counsel
for the Company stating that such transfer may be made and indicating whether the new Warrants must also bear a restrictive legend. 

5.4 Fractional Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will
result in the issuance of a warrant certificate for a fraction of a warrant. 
 5.5 Service Charges. No service charge
shall be made for any exchange or registration of transfer of Warrants. 
 5.6 Warrant Execution and Countersignature.
The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the terms of this Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company, whenever required by the
Warrant Agent, will supply the Warrant Agent with Warrants duly executed on behalf of the Company for such purpose. 
 6.
Redemption. 
 6.1 Redemption. Subject to the final sentences of this Section 6.1, not less than all of the
outstanding Warrants may be redeemed, at the option of the Company, at any time after they become exercisable and there is an effective Registration Statement covering the shares of Common Stock issuable upon exercise of the Warrants current and
available and prior to their expiration, at the office of the Warrant Agent, upon the notice referred to in Section 6.2, in whole but not in part, at the price of $0.01 per Warrant (“Redemption Price”), provided that the last
sales price of the Common Stock has been equal to or greater than $[            ] per share for any twenty (20) trading days within a thirty (30) consecutive trading day
period ending on the third business day prior to the date on which notice of redemption is given. Notwithstanding anything to the contrary contained herein, the Company shall not call the Warrants for redemption unless there is an effective
registration statement under the Act relating to the shares of Common Stock issuable upon exercise of the Warrants current and available throughout the “30-day redemption period” and a prospectus is available. 

 

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 6.2 Date Fixed for, and Notice of, Redemption. In the event the Company shall elect
to redeem all of the Warrants, the Company shall fix a date for the redemption. Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not less than 30 days prior to the date fixed for redemption to the Registered
Holders of the Warrants to be redeemed at their last addresses as they shall appear on the Warrant Register. Any notice mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the Registered Holder
received such notice. 
 6.3. Exercise After Notice of Redemption. The Warrants may be exercised in accordance with
Section 3 of this Warrant Agreement at any time after notice of redemption shall have been given by the Company pursuant to Section 6.2 hereof and prior to the time and date fixed for redemption. On and after the redemption date, the
record holder of the Warrants shall have no further rights except to receive, upon surrender of the Warrants, the Redemption Price. 

7. Other Provisions Relating to Rights of Holders of Warrants. 

7.1 No Rights as Stockholder. A Warrant does not entitle the Registered Holder thereof to any of the rights of a stockholder of
the Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights to vote or to consent or to receive notice as stockholders in respect of the meetings of stockholders or the election
of directors of the Company or any other matter. 
 7.2 Lost, Stolen Mutilated or Destroyed Warrants. If any Warrant is
lost, stolen, mutilated or destroyed, the Company and the Warrant Agent may, on such terms as to indemnity or otherwise as they may in their discretion impose (which terms shall, in the case of a mutilated Warrant, include the surrender thereof),
issue a new Warrant of like denomination, tenor and date as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen,
mutilated or destroyed Warrant shall be at any time enforceable by anyone. 
 7.3 Reservation of Common Stock. The
Company shall at all times reserve and keep available a number of its authorized but unissued shares of Common Stock that will be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Warrant Agreement.

 7.4 Registration of Common Stock. The Company will use its best efforts to maintain the effectiveness of the
Registration Statement, including by the filing of any required post-effective amendments to such Registration Statement, and ensure that a prospectus is available for delivery to the Warrant holders until the expiration of the Warrants in
accordance with the provisions of this Warrant Agreement. The Warrants shall not be exercisable and the Company shall not be obligated to issue Common Stock unless, at the time a holder seeks to exercise Warrants, a prospectus related to the
Common Stock issuable upon exercise of the Warrants is current and the Common Stock has been registered or qualified or deemed to be exempt under the laws of the state of residence of the holder of the Warrant. In addition, the Company agrees to use
its best efforts to register such securities under the blue sky laws of the states of residence of exercising warrant holders, if permitted by the blue sky laws of such jurisdictions, in the event that an exemption is not available; provided,
however, that the Company shall not be required to register or qualify in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such
registration or qualification. The provisions of this Section 7.4 may not be modified, amended or deleted without the prior written consent of Boenning & Scattergood, Inc. 

8. Concerning the Warrant Agent and Other Matters. 

8.1 Payment of Taxes. The Company will, from time to time, promptly pay all taxes and charges that may be imposed upon the Company
or the Warrant Agent in respect of the issuance or delivery of shares of Common Stock upon the exercise of Warrants, but the Company shall not be obligated to pay any transfer taxes in respect of the Warrants or such shares. 

 

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 8.2 Resignation, Consolidation, or Merger of Warrant Agent. 

8.2.1 Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its
duties and be discharged from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise,
the Company shall appoint, in writing, a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of 30 days after it has been notified in writing of such resignation or incapacity by
the Warrant Agent or by the holder of the Warrant (who shall, with such notice, submit his, her or its Warrant for inspection by the Company), then the holder of any Warrant may apply to the Supreme Court of the State of New York for the County of
New York for the appointment of a successor Warrant Agent. Any successor Warrant Agent, whether appointed by the Company or by such court, shall be a corporation organized and existing under the laws of the State of New York, in good standing and
have its principal office in the Borough of Manhattan, City and State of New York, and be authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state authorities. After appointment, any
successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties and obligations of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed;
but, if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights of
such predecessor Warrant Agent hereunder; and, upon request of any successor Warrant Agent, the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such
successor Warrant Agent all such authority, powers, rights, immunities, duties and obligations. 
 8.2.2 Notice of Successor
Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any such
appointment. 
 8.2.3 Merger or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent may be
merged or with which it may be consolidated or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor Warrant Agent under this Warrant Agreement without any further act on the
part of the Company or the Warrant Agent. 
 8.3 Fees and Expenses of Warrant Agent. 

8.3.1 Remuneration. The Company agrees to pay the Warrant Agent reasonable remuneration for its services as Warrant Agent
hereunder as set forth on Exhibit B hereto and will reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution of its duties hereunder. 

8.3.2 Further Assurances. The Company agrees to perform, execute, acknowledge and deliver, or cause to be performed, executed,
acknowledged and delivered, all such further and other acts, instruments and assurances as may reasonably be required by the Warrant Agent for the carrying out or performing of the provisions of this Warrant Agreement. 

8.4 Liability of Warrant Agent. 

8.4.1 Reliance on Company Statement. Whenever, in the performance of its duties under this Warrant Agreement, the Warrant Agent
shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed)
may be deemed to be conclusively proved and established by a statement signed by the Chief Executive Officer, President, Chief Financial Officer or Chairman of the Board of the Company and delivered to the Warrant Agent. The Warrant Agent may rely
upon such statement for any action taken or suffered in good faith by it pursuant to the provisions of this Warrant Agreement. 

8.4.2 Indemnity. The Warrant Agent shall be liable hereunder only for its own negligence, willful misconduct or bad faith. The
Company agrees to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Warrant Agreement,
except as a result of the Warrant Agent’s negligence, willful misconduct or bad faith. 
  

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 8.4.3 Exclusions. The Warrant Agent shall have no responsibility with respect to the
validity of this Warrant Agreement or with respect to the validity or execution of any Warrant (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Warrant
Agreement or in any Warrant; nor shall it be responsible to make any adjustments required under the provisions of Section 4 hereof or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of
facts that would require any such adjustment; nor shall it, by any act hereunder, be deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock to be issued pursuant to this Warrant Agreement
or any Warrant or as to whether any shares of Common Stock will when issued be valid and fully paid and nonassessable. 
 8.5
Acceptance of Agency. The Warrant Agent hereby accepts the agency established by this Warrant Agreement and agrees to perform the same upon the terms and conditions herein set forth and, among other things, shall account promptly to the
Company with respect to Warrants exercised and concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the purchase of shares of the Company’s Common Stock through the exercise of Warrants. 

9. Miscellaneous Provisions. 

9.1 Successors. All the covenants and provisions of this Warrant Agreement by or for the benefit of the Company or the Warrant
Agent shall bind and inure to the benefit of their respective successors and assigns. 
 9.2 Notices. Any notice,
statement or demand authorized by this Warrant Agreement to be given or made by the Warrant Agent or by the holder of any Warrant to or on the Company shall be delivered by hand or sent by registered or certified mail or overnight courier service,
addressed (until another address is filed in writing by the Company with the Warrant Agent) as follows: 
 Aldagen, Inc.

 2810 Meridian Parkway, Suite 148 

Durham, NC 27713 

Attn: David Carberry, Chief Financial Officer 

Any notice, statement or demand authorized by this Warrant Agreement to be given or made by the holder of any Warrant or by the Company to or on the
Warrant Agent shall be delivered by hand or sent by registered or certified mail or overnight courier service, addressed (until another address is filed in writing by the Warrant Agent with the Company), as follows: 

StockTrans, Inc. 

44 West Lancaster Avenue 

Ardmore, PA 19003 

Attn: 
 Any notice, sent
pursuant to this Warrant Agreement shall be effective, if delivered by hand, upon receipt thereof by the party to whom it is addressed, if sent by overnight courier, on the next business day of the delivery to the courier, and if sent by registered
or certified mail on the third day after registration or certification thereof. 
 9.3 Applicable Law. The validity,
interpretation, and performance of this Warrant Agreement and of the Warrants shall be governed in all respects by the laws of the State of New York, without giving effect to conflict of laws. The Company hereby agrees that any action, proceeding or
claim against it arising out of or relating in any way to this Warrant Agreement shall be brought and enforced in the courts of the State of New York or the United States District Court for the Southern District of New York, and irrevocably submits
to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any such process or summons to be served upon the Company may
be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 9.2 hereof. Such mailing shall be deemed personal service and shall be
legal and binding upon the Company in any action, proceeding or claim. 
  

 8 

 9.4 Persons Having Rights under this Warrant Agreement. Nothing in this Warrant
Agreement expressed and nothing that may be implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the Registered Holders of the Warrants
and, for the purposes of Sections 7.4, 9.2 and 9.8 hereof, the underwriters in the public offering, any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant, condition, stipulation, promise, or agreement hereof.
Each underwriter in the public offering shall be deemed to be a third-party beneficiary of this Agreement with respect to Sections 7.4 and 9.8 hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Agreement
shall be for the sole and exclusive benefit of the parties hereto (and the underwriters in the public offering with respect to the Sections 7.4 and 9.8 hereof) and their successors and assigns and of the Registered Holders of the Warrants.

 9.5 Examination of the Warrant Agreement. A copy of this Warrant Agreement shall be available at all reasonable times
at the office of the Warrant Agent for inspection by the Registered Holder of any Warrant. The Warrant Agent may require any such holder to submit his, her or its Warrant for inspection. 

9.6 Counterparts. Facsimile Signatures. This Warrant Agreement may be executed in any number of counterparts, and each of such
counterparts shall, for all purposes, be deemed to be an original, and all such counterparts shall together constitute one and the same instrument. Facsimile signatures shall constitute original signatures for all purposes of this Warrant Agreement.

 9.7 Effect of Headings. The section headings herein are for convenience only and are not part of this Warrant
Agreement and shall not affect the interpretation thereof. 
 9.8 Amendments. 

9.8.1 This Warrant Agreement and any Warrant certificate may be amended by the parties hereto by executing a supplemental warrant
agreement (a “Supplemental Agreement”), without the consent of any of the Warrant holders, for the purpose of (i) curing any ambiguity, or curing, correcting or supplementing any defective provision contained herein, or making
any other provisions with respect to matters or questions arising under this agreement that is not inconsistent with the provisions of this agreement or the Warrant certificates, (ii) evidencing the succession of another corporation to the
Company and the assumption by any such successor of the covenants of the Company contained in this agreement and the Warrants, (iii) evidencing and providing for the acceptance of appointment by a successor Warrant Agent with respect to the
Warrants, (iv) adding to the covenants of the Company for the benefit of the Holders or surrendering any right or power conferred upon the Company under this Agreement, or (viii) amending this Warrant Agreement and the Warrants in any
manner that the Company may deem to be necessary or desirable and that will not adversely affect the interests of the Warrant holders in any material respect. 

9.8.2 The Company and the Warrant Agent may amend this Warrant Agreement and the Warrants by executing a Supplemental Agreement with the
consent of the Holders of not fewer than a majority of the unexercised Warrants affected by such amendment, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Warrant Agreement or of
modifying in any manner the rights of the Holders under this Warrant Agreement; provided, however, that, without the consent of each of the Warrant holders affected thereby, no such amendment may be made that (i) changes the Warrants so as to
reduce the number of shares purchasable upon exercise of the Warrants or so as to increase the Warrant Price (other than as provided by Section 4), (ii) shortens the period of time during which the Warrants may be exercised,
(iii) otherwise adversely affects the exercise rights of the Holders in any material respect, or (iv) reduces the number of unexercised Warrants the holders of which must consent for amendment of this Warrant Agreement or the Warrants.
Notwithstanding anything contained herein to the contrary, Section 9 may be amended only by the parties hereto with the consent of Boenning & Scattergood. 

9.8.3 The parties hereto acknowledge that each underwriter in the public offering shall be an intended third party beneficiary of this
Section 9.8. 
  

 9 

 9.9 Severability. This Warrant Agreement shall be deemed severable, and the
invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Warrant Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or
provision, the parties hereto intend that there shall be added as a part of this Warrant Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable. 

IN WITNESS WHEREOF, this Warrant Agreement has been duly executed by the parties hereto as of the day and year first above written.

  

					
	ALDAGEN, INC.
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  

					
	STOCKTRANS, INC.
		
	By:	 	  

		 	[Name, Title]	 	

  

 10 

 EXHIBIT A 

Form of Warrant 

 EXHIBIT B 

Warrant Agent FeesLoan Agreement

 Exhibit 10.1 

LOAN AGREEMENT 

This agreement (as amended, modified or otherwise supplemented, this “Agreement”) dated as of June 30, 2010, is
between Bank of America, N.A. (the “Bank”) and K•Swiss Inc. (the “Borrower”). 
  

	1.	FACILITY NO. 1: LINE OF CREDIT AMOUNT AND TERMS 

1.1    Line of Credit Amount. 

(a) During the availability period described in Section 1.2 (the “Availability Period”), the
Bank will provide a line of credit to the Borrower. The amount of the line of credit (the “Facility No. 1 Commitment”) is Twenty-One Million and 00/100 Dollars ($21,000,000.00). 

(b) This is a revolving line of credit. During the availability period, the Borrower may repay principal amounts and
reborrow them up to the Facility No. 1 Borrowing Limit. “Facility No. 1 Borrowing Limit” means, as of any date of determination, an amount (the “Facility No. 1 Available Amount”) equal to (i) the
Facility No. 1 Commitment minus (ii) the Foreign Credit Exposure. 
 (c) The Borrower agrees not
to permit the principal balance outstanding to exceed the Facility No. 1 Borrowing Limit. If the Borrower exceeds this limit, the Borrower will immediately pay the excess to the Bank upon the Bank’s demand. 

1.2    Availability Period. The line of credit is available between the date of this Agreement and
July 1, 2013, or such earlier date as the availability may terminate as provided in this Agreement (the “Facility No. 1 Expiration Date”). 

The first paragraph of this Section 1.2 notwithstanding, the Availability Period may be extended if and only if the Bank has
sent to the Borrower a written notice of renewal effective as of the Facility No. 1 Expiration Date for the line of credit which is countersigned by the Borrower (the “Renewal Notice”). lf this line of credit is renewed, it
will continue to be subject to all the terms and conditions set forth in this Agreement except as modified by the Renewal Notice. If this line of credit is renewed, the term “Facility No. 1 Expiration Date” shall mean the date set
forth in the Renewal Notice as the Facility No. 1 Expiration Date and the same process for renewal will apply to any subsequent renewal of this line of credit. A renewal fee may be charged at the Bank’s option. The amount of the renewal
fee will be specified in the Renewal Notice and will be earned and accrue upon Borrower’s execution of the Renewal Notice. 

1.3    Repayment Terms. 

(a) The Borrower will pay interest on July 1, 2010, and then on the first day of each month thereafter until payment
in full of any principal outstanding under this facility. 
 (b) The Borrower will repay in full any principal,
interest or other charges outstanding under this facility no later than the Facility No. 1 Expiration Date. Any interest period for an optional interest rate (as described below) shall expire no later than the Facility No. 1 Expiration
Date. 
 1.4    Interest Rate. 

 

 1 

 (a)    The interest rate is a rate per year equal to the
Bank’s Prime Rate minus 0.75 percentage point(s). 
 (b)    The Prime Rate is the
rate of interest publicly announced from time to time by the Bank as its Prime Rate. The Prime Rate is set by the Bank based on various factors, including the Bank’s costs and desired return, general economic conditions and other factors, and
is used as a reference point for pricing some loans. The Bank may price loans to its customers at, above, or below the Prime Rate. Any change in the Prime Rate shall take effect at the opening of business on the day specified in the public
announcement of a change in the Bank’s Prime Rate. 
 1.5    Optional Interest Rates. Instead of
the interest rate based on the rate stated in the paragraph entitled “Interest Rate” above, the Borrower may elect the optional interest rate listed below for this Facility No. 1 during interest periods agreed to by the Bank and the
Borrower. The optional interest rate shall be subject to the terms and conditions described in Section 2 of this Agreement. Any principal amount bearing interest at an optional rate under this Agreement is referred to as a
“Portion.” The following optional interest rate is available: 
 (a)    The
IBOR Rate plus 1.25 percentage point(s). 
 1.6    Letters of Credit. 

(a)    During the availability period, at the request of the Borrower, the Bank will issue:

 (i)    commercial letters of credit with a maximum maturity of two hundred twenty-five
(225) days but not to extend more than one hundred eighty (180) days beyond the Facility No. 1 Expiration Date. Each commercial letter of credit will require drafts payable at sight. 

(ii)    standby letters of credit with a maximum maturity of three hundred sixty-five (365) days
but not to extend more than three hundred sixty-five (365) days beyond the Facility No. 1 Expiration Date. The standby letters of credit may include a provision providing that the maturity date will be automatically extended each year for
an additional year unless the Bank gives written notice to the contrary. 
 (b)    The amount
of the letters of credit outstanding at any one time (including the drawn and unreimbursed amounts of the letters of credit) may not exceed Five Million and 00/100 Dollars ($5,000,000). 

(c)    In calculating the principal amount outstanding under the Facility No. 1 Available Amount,
the calculation shall include the undrawn amount of any letters of credit outstanding and any and all amounts drawn on any letters of credit and not yet reimbursed. 

(d)    The following letters of credit are outstanding from the Bank for the account of the Borrower
as of the date hereof: 
  

				
	 Letter of Credit Number
	  	Amount
	         3066459
	  	$	500,000
	         3066463
	  	$	70,000
	         3066464
	  	$	100,000
	         3066465
	  	$	30,120

  

 2 

 As of the date of this Agreement, these letters of credit shall be deemed to be outstanding
under this Agreement, and shall be subject to all the terms and conditions stated in this Agreement. 

(e)    The Borrower agrees: 

(i)    Any sum drawn under a letter of credit may, at the option of the Bank, be added to the
principal amount outstanding under this Agreement. The amount will bear interest and be due as described elsewhere in this Agreement. 

(ii)    If an Event of Default shall occur and be continuing, to immediately prepay and make the Bank
whole for any outstanding letters of credit. 
 (iii)    The issuance of any letter of credit
and any amendment to a letter of credit is subject to the Bank’s written approval and must be in form and content satisfactory to the Bank and in favor of a beneficiary acceptable to the Bank. 

(iv)    To sign the Bank’s form Application and Agreement for Commercial Letter of Credit or
Application and Agreement for Standby Letter of Credit, as applicable. 
 (v)    To pay
negotiation fees of the greater of two-tenths (0.20%) of the amount of each drawing or Seventy Five Dollars ($75), and other reasonable fees at the times and in the amounts Bank advises Borrower from time to time, as being generally applicable to
commercial letters of credit issued by the Bank, including without limitation, amendment, discrepancy, and cancellation fees. 

(vi)    To pay any reasonable issuance and/or other fees that the Bank notifies the Borrower are
generally applicable to letters of credit issued by the Bank and will be charged for issuing and processing letters of credit for the Borrower. 

(vii)    To allow the Bank to automatically charge its checking account for applicable fees,
discounts, and other charges; provided, that, the Bank shall provide written notice to the Borrower at least concurrently with any such charge. 

(viii)    To pay the Bank a non-refundable fee equal to 1% per annum of the outstanding undrawn
amount of each standby letter of credit, payable quarterly in arrears, calculated on the basis of the face amount outstanding on the day the fee is calculated. 

1.7    Acceptances. This line of credit up to a maximum face value outstanding of Five Million and 00/100
Dollars ($5,000,000.00) may be used for financing acceptance transactions for a maximum tenor of one hundred eighty (180) days but not to extend beyond the Facility No. 1 Expiration Date. In calculating the principal amount outstanding
under the Facility No. 1 Available Amount, the calculation shall include the face amount of any acceptances outstanding. 

The Borrower agrees: 

(a)    Each acceptance shall be in an amount not less than Two Hundred Fifty Thousand and 00/100
Dollars ($250,000.00). 
  

 3 

 (b)    Any sum owed to the Bank under an acceptance may,
at the option of the Bank, be added to the principal amount outstanding under this Agreement. The amount will bear interest and be due as described elsewhere in this Agreement. 

(c)    If an Event of Default shall occur and be continuing, to immediately prepay and make the Bank
whole for any outstanding acceptances. 
 (d)    The issuance of any acceptance is subject to
the Bank’s express approval, in its reasonable discretion, and must be in form and content satisfactory to the Bank. 

(e)    To sign the Bank’s standard form agreement for acceptances, and to pay any issuance and/or
other fees that the Bank notifies the Borrower will be charged for issuing and processing acceptances for the Borrower. 

(f)    To allow the Bank to automatically charge its checking account for applicable fees, discounts,
and other charges; provided, that the Bank shall provided written notice to the Borrower at least concurrently with any such charge. 

(g)    The discount for each draft shall be at the discount rate in effect on the date of such
acceptance for prime acceptances of equal tenor. The commission for each draft shall be equal to: 

(i)    one percent (1.0%) per annum of the face amount thereof for each acceptance greater than
or equal to One Million Dollars ($1,000,000); 
 (ii)    one and one half percent
(1.50%) per annum of the face amount for each acceptance greater than or equal to Five Hundred Thousand Dollars ($500,000) but less than One Million Dollars ($1,000,000); 

(iii)    one and three fourths percent (1.75%) per annum of the face amount for each acceptance
less than Five Hundred Thousand Dollars ($500,000); 
 (iv)    provided,
however, that in no event shall the acceptance commission be less than Five Hundred Dollars ($500). 
 The acceptance
commission with respect to each acceptance shall be payable in full on the date of creation of such acceptance. 
  

	2.	OPTIONAL INTEREST RATES 

2.1    Optional Rates. Each optional interest rate is a rate per year. Interest will be paid on July 1,
2010, and then on the first day of each month thereafter until payment in full of any principal outstanding under this Agreement. No Portion will be converted to a different interest rate during the applicable interest period. Upon the occurrence of
an Event of Default, the Bank may terminate the availability of optional interest rates for interest periods commencing after the Event of Default occurs. At the end of each interest period, the interest rate will revert to the rate stated in
Section 1.4, unless the Borrower has designated another optional interest rate for the Portion. 

2.2    IBOR Rate. The election of IBOR Rates shall be subject to the following terms and requirements:

  

 4 

 (a)    The interest period during which the IBOR Rate
will be in effect will be no shorter than thirty (30) days and no longer than one year. The last day of the interest period will be determined by the Bank using the practices of the offshore dollar inter-bank market. 

(b)    Each IBOR Rate Portion will be for an amount not less than One Hundred Thousand and 00/100
Dollars ($100,000.00). 
 (c)    The “IBOR Rate” means the interest rate determined
by the following formula, rounded upward to the nearest 1/100 of one percent. (All amounts in the calculation will be determined by the Bank as of the first day of the interest period.) 

 

			
	IBOR Rate  =	  	            IBOR Base Rate           
 
(1.00 - Reserve Percentage)

 Where, 

(i)    “IBOR Base Rate” means the interest rate at which Bank of America’s Grand
Cayman Banking Center, Grand Cayman, British West Indies, would offer U.S. dollar deposits for the applicable interest period to other major banks in the offshore dollar inter-bank market. 

(ii)    “Reserve Percentage” means the total of the maximum reserve percentages for
determining the reserves to be maintained by member banks of the Federal Reserve System for Eurocurrency Liabilities, as defined in Federal Reserve Board Regulation D, rounded upward to the nearest 1/100 of one percent. The percentage will be
expressed as a decimal, and will include, but not be limited to, marginal, emergency, supplemental, special, and other reserve percentages. 

(d)    The Bank will have no obligation to accept an election for an IBOR Rate Portion if any of the
following described events has occurred and is continuing: 
 (i)    Dollar deposits in the
principal amount, and for periods equal to the interest period, of an IBOR Rate Portion are not available in the offshore dollar inter-bank market; or 

(ii)    the IBOR Rate does not accurately reflect the cost of an IBOR Rate Portion. 

(e)    Each prepayment of an IBOR Rate Portion, whether voluntary, by reason of acceleration or
otherwise, will be accompanied by the amount of accrued interest on the amount prepaid, and a prepayment fee as described below. A “prepayment” is a payment of an IBOR Rate Portion earlier than the end of the applicable interest period.

 (f)    The prepayment fee shall be in an amount sufficient to compensate the Bank for any
loss, cost or expense incurred by it as a result of the prepayment, including any loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Portion or from fees payable
to terminate the deposits from which such funds were obtained. The Borrower shall also pay any customary administrative fees charged by the Bank in connection with the foregoing. For purposes of this paragraph, the Bank shall be deemed to have
funded each Portion by a matching deposit or other borrowing in the applicable interbank market, whether or not such Portion was in fact so funded. 
  

 5 

	2A.	COLLATERAL 

2A.1    Personal Property. The personal property listed below now owned or owned in the future by the parties
listed below will secure the Borrower’s obligations to the Bank under this Agreement or, if the collateral is owned by a guarantor, will secure the guaranty, if so indicated in the security agreement and/or pledge agreement. The collateral is
further defined in security agreements and/or pledge agreements executed by the owners of the collateral. In addition, all personal property collateral owned by the Borrower securing the Borrower’s obligations under this Agreement shall also
secure all other present and future obligations of the Borrower to the Bank (excluding any consumer credit covered by the federal Truth in Lending law, unless the Borrower has otherwise agreed in writing or received written notice thereof). All
personal property collateral securing any other present or future obligations of the Borrower to the Bank shall also secure the Borrower’s obligations under this Agreement. 

(a)    Securities and other investment property owned by the Borrower as described in the Pledge Agreements required
by the Bank and executed in connection with this Agreement. 
 Regulation U of the Board of Governors of the Federal Reserve
System places certain restrictions on loans secured by margin stock (as defined in the Regulation). The Bank and the Borrower shall comply with Regulation U. If any of the collateral is margin stock, the Borrower shall provide to the Bank a Form U-1
Purpose Statement. 
  

	3.	FEES AND EXPENSES 

3.1    Fees. 

(a)    Unused Commitment Fee. The Borrower agrees to pay a fee on any difference between the
Facility No. 1 Available Amount and the amount of credit it actually uses, determined by the daily amount of credit outstanding during the specified period. The fee will be calculated at 0.125% per year. 

This fee is due on July 1, 2010, and on the first day of each following quarter until the expiration of the
availability period. 
 (b)    Waiver Fee. If the Bank, at its discretion, agrees to
waive or amend any terms of this Agreement, the Borrower will, at the Bank’s option, pay the Bank a fee for each waiver or amendment in an amount advised by the Bank at the time the Borrower requests the waiver or amendment. Nothing in this
paragraph shall imply that the Bank is obligated to agree to any waiver or amendment requested by the Borrower. The Bank may impose additional requirements as a condition to any waiver or amendment. 

(c)    Late Fee. To the extent permitted by law, the Borrower agrees to pay a late fee in an
amount not to exceed four percent (4%) of any payment that is more than fifteen (15) days late. The imposition and payment of a late fee shall not constitute a waiver of the Bank’s rights with respect to the Default. The imposition of
a late fee shall be made in the Bank’s sole discretion. 
 3.2    Expenses. The Borrower agrees
to immediately repay the Bank for reasonable and documented expenses that include, but are not limited to, filing and recording and search fees. 
  

 6 

 3.3    Reimbursement Costs. The Borrower agrees to reimburse the
Bank for any reasonable and documented expenses it incurs in the preparation of this Agreement and any agreement or instrument required by this Agreement. Expenses include, but are not limited to, reasonable attorneys’ fees. 

 

	4.	DISBURSEMENTS, PAYMENTS AND COSTS 

4.1    Disbursements and Payments. 

(a)    Each payment by the Borrower will be made in U.S. Dollars and immediately available funds by
direct debit to a deposit account as specified below or, for payments not required to be made by direct debit, by mail to the address shown on the Borrower’s statement or at one of the Bank’s banking centers in the United States.

 (b)    Each disbursement by the Bank and each payment by the Borrower will be evidenced by
records kept by the Bank. In addition, the Bank may, at its discretion, require the Borrower to sign one or more promissory notes. 

4.2    Telephone and Telefax Authorization. 

(a)    The Bank may honor telephone or telefax instructions for advances or repayments or for the
designation of optional interest rates and telefax requests for the issuance of letters of credit given, or purported to be given, by any one of the individuals authorized to sign loan agreements on behalf of the Borrower, or any other individual
designated by any one of such authorized signers. 
 (b)    Advances will be deposited in and
repayments will be withdrawn from account number 14650-50692 owned by the Borrower or such other of the Borrower’s accounts with the Bank as designated in writing by the Borrower. 

(c)    The Borrower will indemnify and hold the Bank harmless from all liability, loss, and costs in
connection with any act resulting from telephone or telefax instructions the Bank reasonably believes are made by any individual authorized by the Borrower to give such instructions. This paragraph will survive this Agreement’s termination, and
will benefit the Bank and its officers, employees, and agents. 
 4.3    Direct Debit (Pre-Billing).

 (a)    The Borrower agrees that the Bank will debit deposit account number 14650-50692
owned by the Borrower or such other of the Borrower’s accounts with the Bank as designated in writing by the Borrower (the “Designated Account”) on the date each payment of principal and interest and any fees from the Borrower
becomes due (the “Due Date”). 
 (b)    Prior to each Due Date, the Bank
will mail to the Borrower a statement of the amounts that will be due on that Due Date (the “Billed Amount”). The bill will be mailed a specified number of calendar days prior to the Due Date, which number of days will be mutually
agreed from time to time by the Bank and the Borrower. The calculations in the bill will be made on the assumption that no new extensions of credit or payments will be made between the date of the billing statement and the Due Date, and that there
will be no changes in the applicable interest rate. 
  

 7 

 (c)    The Bank will debit the Designated Account for
the Billed Amount, regardless of the actual amount due on that date (the “Accrued Amount”). If the Billed Amount debited to the Designated Account differs from the Accrued Amount, the discrepancy will be treated as follows:

 (i)    If the Billed Amount is less than the Accrued Amount, the Billed Amount for the
following Due Date will be increased by the amount of the discrepancy. The Borrower will not be in Default by reason of any such discrepancy. 

(ii)    If the Billed Amount is more than the Accrued Amount, the Billed Amount for the following Due
Date will be decreased by the amount of the discrepancy. 
 Regardless of any such discrepancy, interest will
continue to accrue based on the actual amount of principal outstanding without compounding. The Bank will not pay the Borrower interest on any overpayment. 

(d)    The Borrower will maintain sufficient funds in the Designated Account to cover each debit. If
there are insufficient funds in the Designated Account on the date the Bank enters any debit authorized by this Agreement, the Bank may reverse the debit. 

(e)    The Borrower may terminate this direct debit arrangement at any time by sending written notice
to the Bank at the address specified at the end of this Agreement. If the Borrower terminates this arrangement, then the principal amount outstanding under this Agreement will at the option of the Bank bear interest at a rate per annum which is 0.5
percentage point(s) higher than the rate of interest otherwise provided under this Agreement. 

4.4    Banking Days. Unless otherwise provided in this Agreement, a banking day is a day other than a
Saturday, Sunday or other day on which commercial banks are authorized to close, or are in fact closed, in the state where the Bank’s lending office is located, and, if such day relates to amounts bearing interest at an offshore rate (if any),
means any such day on which dealings in dollar deposits are conducted among banks in the offshore dollar interbank market. All payments and disbursements which would be due on a day which is not a banking day will be due on the next banking day. All
payments received on a day which is not a banking day will be applied to the credit on the next banking day. 

4.5    Interest Calculation. Except as otherwise stated in this Agreement, all interest and fees, if any, will
be computed on the basis of a 360-day year and the actual number of days elapsed. This results in more interest or a higher fee than if a 365-day year is used. Installments of principal which are not paid when due under this Agreement shall continue
to bear interest until paid. 
 4.6    Default Rate. Upon the occurrence of any Event of Default and
while such Event of Default exists or after maturity or after judgment has been rendered on any obligation under this Agreement, all amounts outstanding under this Agreement, including any interest, fees, or costs which are not paid when due, will
at the option of the Bank bear interest at a rate which is 2.0 percentage point(s) higher than the rate of interest otherwise provided under this Agreement. This may result in compounding of interest. This will not constitute a waiver of any Event
of Default. 
 4.7    Taxes. If any payments to the Bank under this Agreement are made from outside
the United States, the Borrower will not deduct any foreign taxes from any payments it makes to the Bank. If any such foreign taxes are imposed on any payments made by the Borrower (including payments under this paragraph), the Borrower will pay the
taxes and will also pay to the Bank, at the time interest is paid, any additional amount which the Bank specifies as necessary to preserve the after-tax yield the Bank would have received if such foreign taxes had not been imposed. The Borrower will
confirm that it has 
  

 8 

 
paid the foreign taxes by giving the Bank official tax receipts (or notarized copies) within thirty (30) days after the due date. 

 

	5.	CONDITIONS 

 Before the
Bank is required to extend any credit to the Borrower under this Agreement, it must receive any documents and other items it may reasonably require, in form and content acceptable to the Bank, including any items specifically listed below.

 5.1    Authorizations. If the Borrower or any guarantor is anything other than a natural person,
evidence that the execution, delivery and performance by the Borrower and/or such guarantor of this Agreement and any instrument or agreement required under this Agreement have been duly authorized, certified by an authorized officer of the Borrower
or such guarantor, as applicable. 
 5.2    Governing Documents. A copy of the Borrower’s and
K-Swiss Sales’s organizational documents, certified by an authorized officer of the Borrower or K-Swiss Sales, as applicable, and as of a recent date by the appropriate governmental authority of the state or other jurisdiction of the
Borrower’s or K-Swiss Sales, as applicable, incorporation or organization. 
 5.3    Loan
Documents. Receipt by the Bank of executed counterparts of this Agreement and the following documents, each executed by an authorized officer of the Borrower: (a) a Guaranty signed by K-Swiss Sales Corp. (“K-Swiss Sales”),
(b) pledge agreements in favor of the Bank, (c) a collateral account control agreement by and between the Bank, the Borrower and Banc of America Securities LLC and (d) a collateral account control agreement by and between the Bank and
the Borrower, in each case in form and substance satisfactory to the Bank. 
 5.4    Payment of Fees.
Payment of all fees and other amounts due and owing to the Bank, including without limitation payment of all accrued and unpaid expenses incurred by the Bank as required by the paragraph entitled “Reimbursement Costs.” 

5.5    Good Standing. Certificates of good standing for the Borrower and K-Swiss Sales from the Secretary of
State of the State of Delaware. 
 5.6    Insurance. Evidence of insurance coverage, as required in
the “Covenants” section of this Agreement. 
 5.7    Legal Opinion. Receipt by the Bank of
a favorable opinion of legal counsel to the Borrower and K-Swiss Sales, addressed to the Bank, dated as of the date hereof, and in form and substance satisfactory to the Bank. 

 

	6.	REPRESENTATIONS AND WARRANTIES 

When the Borrower signs this Agreement and on the date of each borrowing and/or other credit extension hereunder, the Borrower makes the
following representations and warranties. Each request for an extension of credit shall be deemed to constitute a renewal of these representations and warranties as of the date of the request: 

6.1    Formation. It is duly incorporated and validly existing under the laws of its state of incorporation.

  

 9 

 6.2    Authorization. This Agreement, and any instrument or
agreement required hereunder, are within the Borrower’s powers, have been duly authorized, and do not conflict with any of its organizational papers. 

6.3    Enforceable Agreement. This Agreement is a legal, valid and binding agreement of the Borrower,
enforceable against the Borrower in accordance with its terms, and any instrument or agreement required hereunder, when executed and delivered, will be similarly legal, valid, binding and enforceable, 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. 

6.4    Good Standing. It (a) is in good standing under the laws of its state of incorporation,
(b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations
under this Agreement and each other document or agreement required by this Agreement and (c) is properly licensed and in good standing under the laws of each jurisdiction where it does business; except in each case referred to in clause (b)(i)
or (c), to the extent the failure to do so could not reasonably be expected to have a Material Adverse Effect. 

“Material Adverse Effect” means (a) a material adverse change in the business condition (financial or otherwise),
operations or properties of the Borrower and its Subsidiaries taken as a whole, (b) a material impairment of the rights and remedies of the Bank under this Agreement or any document or agreement required to be delivered by this Agreement,
(c) a material impairment of the ability of the Borrower (or any guarantor) to perform its material obligations under this Agreement or any document or agreement required to be delivered by this Agreement to which it is a party or (d) a
material adverse effect upon the legality, validity, binding effect or enforceability against the Borrower (or any guarantor) of this Agreement or any document or agreement required to be delivered by this Agreement to which it is a party.

 6.5    No Conflicts. The execution, delivery and performance by the Borrower of this Agreement and
any other document or agreement required by this Agreement to which the Borrower is a party do not conflict with any law, agreement, or obligation by which the Borrower is bound. 

6.6    Financial Information. All financial and other information that has been or will be supplied to the
Bank, taken as a whole, present fairly and accurately the Borrower’s (and any guarantor’s) financial condition as of the dates and for the periods to which they relate, including all material contingent liabilities. Since the date of the
most recent financial statement provided to the Bank, there has been no event or circumstance, individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect. 

6.7    Lawsuits. There is no lawsuit, tax claim or other dispute pending or, to the knowledge of the Borrower,
threatened against the Borrower which (a) purport to effect or pertain to this Agreement or any of the transactions contemplated hereby or (b) could reasonably be expected to have a Material Adverse Effect. 

6.8    Permits, Franchises. The Borrower possesses all permits, memberships, franchises, contracts, licenses,
trademark rights, trade name rights, patent rights, copyrights and fictitious name rights material to the conduct of the business in which it is now engaged. 

6.9    Compliance with Laws. The Borrower is in compliance with the requirements of all laws and all orders,
writs, injunctions and decrees applicable to it or to its properties, except in such instances 
  

 10 

 
in which (a) such requirement of law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply
therewith could not reasonably be expected to have a Material Adverse Effect. 
 6.10    Tax Matters.
The Borrower has no knowledge of any material pending assessments or adjustments of its income tax for any year and all material taxes due have been paid, except as have been disclosed in writing to the Bank. 

6.11    No Default. No Default has occurred and is continuing. 

“Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the
passage of time, or both, would constitute an Event of Default. 
 6.12    Insurance. The Borrower
has obtained, and maintained in effect, the insurance coverage required in the “Covenants” section of this Agreement. 

6.13    Collateral. All collateral required in this Agreement is owned by the grantor of the security interest
free of any title defects or any liens or interests of others, except those in favor of the Bank or those which have been approved by the Bank in writing. 
  

	7.	COVENANTS 

 The Borrower
agrees, so long as credit is available under this Agreement and until the Bank is repaid in full: 

7.1    Use of Proceeds. 

(a)    To use the proceeds of Facility No. 1 only for working capital. 

(b)    To not use the proceeds of Facility No. 1, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally
incurred for such purpose. 
 7.2    Financial Information. To provide the following financial
information and statements in form and detail acceptable to the Bank, and such additional information as requested by the Bank from time to time: 

(a)    Within one hundred twenty (120) days of the fiscal year end, the annual financial
statements of the Borrower. These financial statements must be audited and accompanies by a report and opinion of an independent certified public accountant of nationally recognized standing reasonably acceptable to the Bank, which report and
opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit. The
statements shall be prepared on a consolidated basis. 
 (b)    Within sixty (60) days
of the period’s end, quarterly financial statements of the Borrower. These financial statements may be company-prepared. The statements shall be prepared on a consolidated basis. 

 

 11 

 (c)    Within sixty (60) days of the end of each
fiscal quarter, copies of all registration statements and regular periodic reports, if any, which Borrower shall have filed after the date hereof with the Securities and Exchange Commission (or any governmental agency substituted therefore) or any
national securities exchange; provided, that any written correspondence directing the Bank to copies of such registration statements and periodic reports available on the Securities and Exchange Commission’s EDGAR website or any successor
website thereto shall be deemed to satisfy the Borrower’s obligations under this Section 7.2(c). 

(d)    Within one hundred twenty (120) days of the end of each fiscal year and within sixty
(60) days of the end of each quarter, a compliance certificate of the Borrower signed by an authorized financial officer, and setting forth whether there existed as of the date of such financial statements and whether there exists as of the
date of the certificate, any Default under this Agreement and, if any such Default exists, specifying the nature thereof and the action the Borrower is taking and proposes to take with respect thereto. 

7.3    Bank as Principal Depository. To maintain the Bank or one of its affiliates as its principal depository
bank, including for the maintenance of business, cash management, operating and administrative deposit accounts. 

7.4    Other Debts. To not create, incur, assume or suffer to exist any Indebtedness except: 

(a)    Indebtedness under this Agreement. 

(b)    Indebtedness existing on the date hereof and listed on Schedule 7.4(b) and any renewals,
extensions or refinancings thereof; provided that the amount of any such Indebtedness shall not be increased at the time of any renewal, extension or refinancing. 

(c)    Additional purchase money Indebtedness (including obligations in respect of Capital Leases) for
the acquisition of fixed or capital assets, which does not exceed an aggregate principal amount of Two Million Dollars ($2,000,000) in any fiscal year. 

(d)    Other Indebtedness not to exceed Five Million Dollars ($5,000,000) at any time outstanding;
provided that such Indebtedness shall not be secured by a lien on the collateral described in Section 2A.1(a). 

(e)    Obligations (contingent or otherwise) existing or arising under any Swap Contract; provided
that such obligations are (or were) entered into in the ordinary course of business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets or property held or reasonably anticipated by the
Borrower, or changes in the value of securities issued by such Person and not for purposes of speculation or taking a “market view”. 

(f)    Indebtedness arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently (except in the case of daylight overdrafts) drawn against insufficient funds in the ordinary course of business; provided, that, such Indebtedness shall only be permitted for five (5) Business Days from
the date of incurrence and must be extinguished within five (5) Business Days of incurrence. 

(g)    Indebtedness in respect of deposits to secure the performance of bids, trade contracts,
statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business. 
  

 12 

 (h)    Payables due to any Subsidiary that are
(i) incurred in the ordinary course of business of the Borrower, (ii) directly attributable to cash transferred from such Subsidiary to the Borrower for investing or cash management purposes and (iii) in an amount not to exceed the
amount of cash transferred from such Subsidiary to the Borrower; for so long as such cash transferred from such Subsidiary remains an asset of the Borrower. 

7.5    Other Liens. Not to create, assume, or allow any security interest or lien (including judicial liens)
on property the Borrower now or later owns, except: 
 (a)    Liens and security interests in
favor of the Bank. 
 (b)    Liens for taxes, assessments or other governmental charges which
are not delinquent or which are being contested in good faith by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the Borrower in accordance with GAAP. 

(c)    Liens existing on the date hereof and listed on Schedule 7.5(c) and any renewals or
extensions thereof, provided, that (i) the property covered thereby is not changed, (ii) the amount secured or benefited thereby is not increased, (iii) the direct or any contingent obligor with respect thereto is not changed and
(iv) any renewal or extension of the obligations secured or permitted thereby is permitted by Section 7.4(b). 

(d)    easements, rights-of-way, restrictions (including zoning restrictions), covenants, licenses,
encroachments, protrusions and other similar charges or encumbrances and minor title deficiencies on or with respect to any real property, in each case whether now or hereafter in existence, not (i) securing Indebtedness, (ii) individually
or in the aggregate materially impairing the value or marketability of such real property and (iii) individually or in the aggregate materially interfering with the ordinary conduct of the business of the Borrower at such real property.

 (e)    Liens securing Indebtedness permitted by Section 7.4(c) and obligations
under Capital Leases permitted by Section 7.4(b); provided, that, such liens do not at any time encumber any property other than the property financed by such Indebtedness or Capital Lease, (ii) the Indebtedness secured thereby does
not exceed the cost on the date of acquisition (negotiated on an arm’s length basis) of the property being acquired and (iii) such liens attach to such property concurrently with or within ninety (90) days after the acquisition
thereof. 
 (f)    Liens of sellers of goods to the Borrower arising under Article 2 of the
Uniform Commercial Code or similar provisions of applicable law in the ordinary course of business, covering only the goods sold and securing only the unpaid purchase price for such goods and related expenses. 

(g)    normal and customary rights of setoff and bankers’ liens existing solely upon cash and
cash equivalents on deposit in one or more accounts maintained by the Borrower, in each case granted in the ordinary course of business in favor of banks or other depository institutions at which such accounts are maintained. 

(h)    any interest of title of a lessor under, and liens arising from UCC financing statements
relating to leases permitted by this Agreement. 
  

 13 

 (i)    Liens securing judgments for the payment of money
(or appeal or other surety bonds relating to such judgments not constituting an Event of Default under Section 9.8); 

(j)    statutory liens of landlords and liens of carriers, warehousemen, mechanics, materialmen and
suppliers and other liens imposed by law or pursuant to customary reservations or retentions of title arising in the ordinary course of business; provided that such liens secure only amounts not yet due and payable or, if due and payable, are
unfiled and no other action has been taken to enforce the same or are being contested in good faith by appropriate proceedings for which adequate reserves determined in accordance with GAAP have been established; 

(k)    pledges or deposits in the ordinary course of business in connection with worker’s
compensation, unemployment insurance and other social security legislation, other than any lien imposed by any Plan or the PBGC under ERISA; 

(l)    Additional liens securing Indebtedness not to exceed Five Million Dollars ($5,000,000);
provided that no such liens shall encumber the collateral described in Section 2A.1(a). 

7.6    Maintenance of Assets. 

(a)    Not to sell, assign, lease, transfer or otherwise dispose of any part of the Borrower’s
business or the Borrower’s assets outside of the ordinary course of the Borrower’s business other than (i) sales, assignments, leases, transfers or dispositions of assets in an aggregate amount not exceeding Five Hundred Thousand
Dollars ($500,000) in any fiscal year and (ii) dispositions of operating leases no longer useful in the Borrower’s business, as determined by the Borrower in a good faith determination that such action(s) is in the best interests of the
Borrower. For the avoidance of doubt, this Section 7.6(a) shall in no event prohibit leases of the intellectual property of the Borrower to Subsidiaries and third parties in the ordinary course of business. 

(b)    Not to sell, assign, lease, transfer or otherwise dispose of any assets for less than fair
market value, or enter into any agreement to do so. 
 (c)    Not to enter into any sale and
leaseback agreement covering any of its fixed assets. 
 (d)    Except with a good faith
determination of the Borrower that any such action or failure is in the best interests of the Borrower and is normal and customary in the ordinary course of the Borrower’s business, maintain and preserve all rights, privileges, and franchises
the Borrower now has. 
 (e)    Except with a good faith determination of the Borrower that
any such action or failure is in the best interests of the Borrower and is normal and customary in the ordinary course of the Borrower’s business, make any repairs, renewals, or replacements to keep the Borrower’s properties in good
working condition. 
 (f)    Not to sell, assign, lease, transfer or otherwise dispose of all
or substantially all of the Borrower’s business or the Borrower’s assets. 
 7.7    Loans and
Investments. Not to make any Investment, except: 
  

 14 

 (a)    Investments consisting of acquisitions of the
equity interests of Persons or all or substantially all of the assets of Persons in an aggregate amount not to exceed Five Million Dollars ($5,000,000) in any one fiscal year of Borrower, provided that Borrower has management and voting control of
such entity(ies), and delivers to the Bank the guaranty of any such domestic entity in which (i) the aggregate of Investments in such entity is greater than Three Million Five Hundred Thousand Dollars ($3,500,000) or (ii) such
entity’s total assets exceed Three Million Five Hundred Thousand Dollars ($3,500,000) or (iii) such entity’s total annual revenues exceed Three Million Five Hundred Thousand Dollars ($3,500,000). 

(b)    Investments consisting of extensions of credit in the nature of accounts receivable or notes
receivable arising from the grant of trade credit in the ordinary course of business and any prepayments and other credits to suppliers or vendors made in the ordinary course of business, and investments received in satisfaction or partial
satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss or in connection with a bankruptcy or reorganization. 

(c)    Investments in any of the following: 

(i)    interest bearing certificates of deposit issued by any commercial banking institution issuing
short-term obligations rated at least Prime 1 by Moody’s Investors Service (“Moody’s”), or at least A-1 by Standard & Poor’s Corporation (“S&P”), or at least F-1 by Fitch and organized under the laws
of the United States or any state thereof; 
 (ii)    prime commercial paper rated at least
Prime 1 by Moody’s, or at least A-1 by S&P, or at least F-1 by Fitch; 

(iii)    U.S. treasury bills and other obligations of the federal government; 

(iv)    variable or fixed rate notes issued by any bank whose short-term commercial paper rating from
S&P is at least A-1 or the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof (any such bank being an “Approved Bank”) or by the parent company of any Approved Bank or any variable rate notes
issued by, or guaranteed by, any domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or P-1 (or the equivalent thereof) by Moody’s and maturing within six months of the date of acquisition; 

(v)    money market investment programs, classified in accordance with GAAP as current assets,
registered under the Investment Company Act of 1940 which are administered by reputable financial institutions have capital of at least $500,000,000 and the portfolios of which are limited to Investments of the character described in the foregoing
subclauses (i) through (iv). 
 (d)    Investments consisting of extensions of credit to
the Borrower’s joint ventures after the date of this Agreement that do not exceed an aggregate amount of Three Million Dollars ($3,000,000) outstanding at any one time, provided that the Borrower has management and voting control of such
entity(ies). 
 (e)    Investments consisting of loans to any of the Borrower’s
executives, officers, directors, employees or shareholders not to exceed an aggregate amount of Three Million Dollars ($3,000,000) at any one time. 
  

 15 

 (f) Investments existing on the date hereof and listed on Schedule
7.7(f). 
 (g) Investments in K-Swiss Sales or any other Subsidiary that is a guarantor of the obligations of
the Borrower hereunder prior to giving effect to such Investment. 
 (h) Other than as permitted by
Section 7.7(g), Investments in Subsidiaries not to exceed Ten Million Dollars ($10,000,000) at any one time outstanding. 

7.8    Additional Negative Covenants. Not to, without the Bank’s written consent: 

(a) Enter into any consolidation, merger, or other combination, except for an acquisition permitted by
Section 7.7(a) of this Agreement. Become a partner in a partnership, a member of a joint venture, or a member of a limited liability company except, in each case, as permitted in this Agreement. 

(b) Acquire or purchase a business or its assets for consideration, including assumption of direct or contingent debt
(except as permitted by Section 7.7(a) and 7.4 of this Agreement). 
 (c) Engage in any
business activities substantially different from the Borrower’s present business. 
 (d) Liquidate or
dissolve the Borrower’s business. 
 (e) Issue or have outstanding any shares of preferred equity interests
that are mandatorily redeemable by the Borrower at the direction of the holder of such preferred equity interest, during the term of this Agreement. 

(f) Enter into, or suffer to exist, any contractual obligation that encumbers or restricts on the ability of the Borrower
to pledge the collateral described in Section 2A.1(a) pursuant to the pledge agreements required by this Agreement. 

(g) Amend, modify or change its organizational documents in a manner materially adverse to Bank. 

7.9    Notices to Bank. To promptly notify the Bank in writing of: 

(a) Any lawsuit over One Million and 00/100 Dollars ($1,000,000.00) against the Borrower (or any guarantor) if filed or
threatened in a writing to the Borrower. 
 (b) Any substantial dispute between any governmental authority and
the Borrower (or any guarantor). 
 (c) Any Default or Event of Default. 

(d) Any Material Adverse Effect. 

(e) Any change in the Borrower’s legal name, legal structure or chief executive office. 

 

 16 

 Each notice required to be delivered pursuant to this Section 7.9 shall be accompanied
by a statement of an officer of the Borrower setting forth the details of the occurrence referred to therein and stating what action the Borrower has taken and proposes to take with respect thereto. Each notice pursuant to Section 7.9(c)
shall describe with particularity any and all provisions that have been breached. 
 7.10    General
Business Insurance. To maintain insurance satisfactory to the Bank as to amount, nature and carrier covering property damage (including loss of use and occupancy) to any of the Borrower’s properties, business interruption insurance, public
liability insurance including coverage for contractual liability, product liability and workers’ compensation, and any other insurance which is usual for the Borrower’s business. Each policy shall provide for at least 30 days prior notice
to the Bank of any cancellation thereof. 
 7.11    Compliance with Laws. To comply with the laws
(including any fictitious or trade name statute), regulations, and orders of any government body with authority over the Borrower’s business the failure with which to comply could reasonably be expected to result in a Material Adverse Effect.
The Bank shall have no obligation to make any advance to the Borrower’s except in compliance with all applicable laws and regulations and the Borrower’s shall fully cooperate with the Bank in complying with all such applicable laws and
regulations. 
 7.12    ERISA Plans. Promptly during each year, to pay and cause any subsidiaries to
pay contributions adequate to meet at least the minimum funding standards under ERISA with respect to each and every Plan; file each annual report required to be filed pursuant to ERISA in connection with each Plan for each year; and notify the Bank
within ten (10) days of the occurrence of any Reportable Event that might constitute grounds for termination of any capital Plan by the PBGC or for the appointment by the appropriate United States District Court of a trustee to administer any
Plan 
 7.13    Books and Records. To maintain adequate books and records. 

7.14    Audits. To allow the Bank and its agents to inspect the Borrower’s properties and examine, audit,
and make copies of books and records at any reasonable time and with reasonable prior notice. If any of the Borrower’s properties, books or records are in the possession of a third party, the Borrower authorizes that third party to permit the
Bank or its agents to have access to perform inspections or audits and to respond to the Bank’s requests for information concerning such properties, books and records. 

7.15    Cooperation. To take any action reasonably requested by the Bank to carry out the intent of this
Agreement. 
 7.16    Payment of Taxes. To pay and discharge, as the same shall become due and
payable, all its material tax liabilities, assessments and governmental charges or levies upon its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in
accordance with GAAP are being maintained by the Borrower. 
 7.17    Preservation of Existence, Etc.

 (a) To preserve, renew and maintain in full force and effect its legal existence under the laws of its jurisdiction of
incorporation. 
 (b) To preserve, renew and maintain in full force and effect its good standing under the laws of its
jurisdiction of incorporation, except to the extent the failure to do so could not reasonably be expected to have a Material Adverse Effect. 
  

 17 

 (c) To preserve and renew all of its material registered patents, copyrights, trademarks,
trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect. 
  

	8.	HAZARDOUS SUBSTANCES 

8.1    Indemnity Regarding Hazardous Substances. The Borrower will indemnify and hold harmless the Bank from
any loss or liability the Bank incurs in connection with or as a result of this Agreement, which directly or indirectly arises out of the use, generation, manufacture, production, storage, release, threatened release, discharge, disposal or presence
of a hazardous substance. This indemnity will apply whether the hazardous substance is on, under or about the Borrower’s property or operations or property leased to the Borrower. The indemnity includes but is not limited to attorneys’
fees (including the reasonable estimate of the allocated cost of in-house counsel and staff). The indemnity extends to the Bank, its parent, subsidiaries and all of their directors, officers, employees, agents, successors, attorneys and assigns.

 8.2    Compliance Regarding Hazardous Substances. The Borrower represents and warrants that the
Borrower has complied with all current material laws, regulations and ordinances or other requirements of any governmental authority relating to or imposing liability or standards of conduct concerning protection of health or the environment or
hazardous substances. 
 8.3    Notices Regarding Hazardous Substances. Until full repayment of the
loan, the Borrower will promptly notify the Bank in writing of any threatened or pending investigation of the Borrower or its operations by any governmental agency under any current or future law, regulation or ordinance pertaining to any hazardous
substance. 
 8.4    Definition of Hazardous Substances. “Hazardous substances” means any
substance, material or waste that is or becomes designated or regulated as “toxic,” “hazardous,” “pollutant,” or “contaminant” or a similar designation or regulation under any current or future federal, state
or local law (whether under common law, statute, regulation or otherwise) or judicial or administrative interpretation of such, including without limitation petroleum or natural gas. 

8.5    Continuing Obligation. The Borrower’s obligations to the Bank under this Article, except the
obligation to give notices to the Bank, shall survive termination of this Agreement and repayment of the Borrower’s obligations to the Bank under this Agreement. 
  

	9.	DEFAULT AND REMEDIES 

 If
any of the following occurs (each, an “Event of Default”), the Bank may do one or more of the following: stop making any additional credit available to the Borrower and require the Borrower to repay its entire debt under this
Agreement immediately and without prior notice. If a Default has occurred and is continuing, the Bank has no obligation to make advances or extend additional credit under this Agreement. In addition, if any Event of Default occurs, the Bank shall
have all rights, powers and remedies available under any instruments and agreements required by or executed in connection with this Agreement, as well as all rights and remedies available at law or in equity. If an Event of Default occurs under
Section 9.7, with respect to the Borrower, then the entire debt outstanding under this Agreement shall automatically be due immediately and the obligation of the Bank to make additional credit available to the Borrower shall
automatically terminate. 
  

 18 

 9.1    Failure to Pay. (a) The Borrower fails to make a
payment under this Agreement within five (5) days after the date when due or (b) any Obligor fails to make any payment under its guaranty. 

9.2    Other Breach Under Agreement. The Borrower fails to perform or observe any covenant or agreement
contained in this Agreement not otherwise specifically referred to in this Article and such failure continues for ten (10) days after the earlier of written notice from the Bank to the Borrower or knowledge of such failure by an executive
officer of the Borrower. 
 9.3    False Information. Any representation or warranty made or deemed
made in or in connection with this Agreement, any other document or agreement required by this Agreement, or any representation, warranty, statement or information contained in any report, certificate, financial statement or other instrument
furnished in connection with or pursuant to this Agreement shall prove to have been incorrect or misleading in any material respect when so made, deemed made or furnished. 

9.4    Default under Related Documents. (a) The Borrower or any Obligor fails to perform or observe any
covenant or agreement contained in any guaranty, subordination agreement, security agreement, pledge agreement (including without limitation the collateral maintenance provisions set forth in the pledge agreements executed in connection with this
Agreement), collateral account control agreement, deed of trust, mortgage, or other document required by or delivered in connection with this Agreement, and such failure continues for the shorter of (i) ten (10) days after the earlier of
written notice from Bank to the Borrower or knowledge of such failure by an executive officer of the Borrower or any Obligor and (ii) any applicable cure period for such covenant or agreement specified in such document or agreement or
(b) any such document or agreement is no longer in full force and effect or (c) any Obligor purports to revoke or disavow its guaranty. 

9.5    Other Bank Agreements. Any default occurs under (a) any loan agreement, letter agreement, credit
agreement or other agreement evidencing the extension of credit by the Bank or any branch, affiliate or subsidiary of the Bank to a Subsidiary or (b) any Foreign Subsidiary Guaranty or (c) any other agreement the Borrower (or any Obligor)
or any of the Borrower’s related entities or affiliates has with the Bank or any branch, affiliate or subsidiary of the Bank (other than this Agreement and/or any of the documents and agreements described in Section 9.4) and such
default continues for thirty (30) days after the date on which the Bank gives written notice of the breach to the Borrower. For purposes of this Agreement, “Obligor” shall mean any guarantor or any party pledging collateral to
the Bank. If, in the Bank’s opinion, any breach described in clauses (a) or (b) of this Section 9.2 is capable of being remedied, the breach will not be considered an Event of Default under this Agreement for a period of
five (5) days after the date on which the Bank gives written notice of the breach to the Borrower. 

9.6    Cross-default. (a) Any default occurs under any agreement in connection with any credit the
Borrower (or any Obligor) or any of the Borrower’s related entities or affiliates has obtained from anyone else or which the Borrower (or any Obligor) or any of the Borrower’s related entities or affiliates has guaranteed in the amount of
Five Hundred Thousand and 00/100 Dollars ($500,000.00) or more in the aggregate if the default consists of failing to make a payment when due or gives the other lender the right to accelerate the obligation or (b) any termination event, event
of default or similar event occurs under any Swap Contract. 
 9.7    Insolvency Proceedings, Etc.
The Borrower, any Obligor or any Significant Subsidiary institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of
any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is
appointed without the application or consent of such Person and the appointment continues 
  

 19 

 
undischarged or unstayed for sixty (60) calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted
without the consent of such Person and continues undismissed or unstayed for sixty (60) calendar days, or an order for relief is entered in any such proceeding. 

9.8    Judgments. Any judgments or arbitration awards are entered against the Borrower, any Obligor or any
Significant Subsidiary, or the Borrower, any Obligor or any Significant Subsidiary enters into any settlement agreements with respect to any litigation or arbitration, that are Three Million Dollars ($3,000,000) or more in excess of any insurance
coverage or established reserves. 
 9.9    Material Adverse Effect. A Material Adverse Effect
occurs. 
 9.10    Change of Control. A Change of Control occurs. 

9.11    ERISA Plans. Any one or more of the following events occurs with respect to a Plan of the Borrower
subject to Title IV of ERISA, provided such event or events could reasonably be expected, in the judgment of the Bank, to subject the Borrower to any tax, penalty or liability (or any combination of the foregoing) which, in the aggregate, could have
a Material Adverse Effect: 
 (a) A Reportable Event shall occur. 

(b) Any Plan termination (or commencement of proceedings to terminate a Plan) or the full or partial withdrawal from a
Plan by the Borrower or any ERISA Affiliate. 
 9.12    Other Liens. Any other lien or security
interest attaches to any of the collateral described in Section 2A.1(a), except for liens of the Bank described in Section 7.5(g). 
  

	10.	ENFORCING THIS AGREEMENT; MISCELLANEOUS 

10.1    GAAP. Except as otherwise stated in this Agreement, all financial information provided to the Bank will
be prepared in accordance with generally accepted accounting principles in the United States as in effect from time to time, applied consistently with the most recent financial statements delivered by the Borrower pursuant to
Section 7.2(a) (“GAAP”). 
 10.2     California Law. This Agreement is
governed by California state law. 
 10.3    Successors and Assigns. This Agreement is binding on the
Borrower’s and the Bank’s successors and assignees. The Borrower agrees that it may not assign this Agreement without the Bank’s prior consent. The Bank may sell participations in or assign this loan, and may exchange information
about the Borrower (including, without limitation, any information regarding any hazardous substances) with actual or potential participants or assignees. If a participation is sold or the loan is assigned, the purchaser will have the right of
set-off against the Borrower. 
 10.4    Dispute Resolution Provision. This paragraph, including the
subparagraphs below, is referred to as the “Dispute Resolution Provision”. This Dispute Resolution Provision is a material inducement for the parties entering into this agreement. 

(a) This Dispute Resolution Provision concerns the resolution of any controversies or claims between the parties, whether
arising in contract, tort or by statute, including but not limited to controversies or claims that arise out of or relate to: (i) this agreement (including any renewals, extensions or modifications); or (ii) any document related to this
agreement 
  

 20 

 
(collectively a “Claim”). For the purposes of this Dispute Resolution Provision only, the term “parties” shall include any parent corporation, subsidiary or affiliate
of the Bank involved in the servicing, management or administration of any obligation described or evidenced by this agreement. 

(b)    At the request of any party to this agreement, any Claim shall be resolved by binding
arbitration in accordance with the Federal Arbitration Act (Title 9, U.S. Code) (the “Act”). The Act will apply even though this agreement provides that it is governed by the law of a specified state. 

(c)    Arbitration proceedings will be determined in accordance with the Act, the then-current rules
and procedures for the arbitration of financial services disputes of the American Arbitration Association or any successor thereof (“AAA”), and the terms of this Dispute Resolution Provision. In the event of any inconsistency, the
terms of this Dispute Resolution Provision shall control, If AAA is unwilling or unable to (i) serve as the provider of arbitration or (ii) enforce any provision of this arbitration clause, both parties shall agree on a successor
arbitrator, but if the parties can not agree on a successor arbitrator within 30 days, then the Bank may appoint one unilaterally. 

(d)    The arbitration shall be administered by AAA and conducted, unless otherwise required by law,
in any U.S. state where real or tangible personal property collateral for this credit is located or if there is no such collateral, in the state specified in the governing law section of this agreement. All Claims shall be determined by one
arbitrator; however, if Claims exceed Five Million Dollars ($5,000,000), upon the request of any party, the Claims shall be decided by three arbitrators. All arbitration hearings shall commence within ninety (90) days of the demand for
arbitration and close within ninety (90) days of commencement and the award of the arbitrator(s) shall be issued within thirty (30) days of the close of the hearing. However, the arbitrator(s), upon a showing of good cause, may extend the
commencement of the hearing for up to an additional sixty (60) days. The arbitrator(s) shall provide a concise written statement of reasons for the award. The arbitration award may be submitted to any court having jurisdiction to be confirmed
and have judgment entered and enforced. 
 (e)    The arbitrator(s) will give effect to
statutes of limitation in determining any Claim and may dismiss the arbitration on the basis that the Claim is barred. For purposes of the application of any statutes of limitation, the service on AAA under applicable AAA rules of a notice of Claim
is the equivalent of the filing of a lawsuit. Any dispute concerning this arbitration provision or whether a Claim is arbitrable shall be determined by the arbitrator(s), except as set forth at subparagraph (j) of this Dispute Resolution
Provision. The arbitrator(s) shall have the power to award legal fees pursuant to the terms of this agreement. 

(f)    The procedure described above will not apply if the Claim, at the time of the proposed
submission to arbitration, arises from or relates to an obligation to the Bank secured by real property. In this case, all of the parties to this agreement must consent to submission of the Claim to arbitration. 

(g)    To the extent any Claims are not arbitrated, to the extent permitted by law the Claims shall be
resolved in court by a judge without a jury, except any Claims which are brought in California state court shall be determined by judicial reference as described below. 

(h)    Any Claim which is not arbitrated and which is brought in California state court will be
resolved by a general reference to a referee (or a panel of referees) as provided in 
  

 21 

 
California Code of Civil Procedure Section 638. The referee (or presiding referee of the panel) shall be a retired Judge or Justice. The referee (or panel of referees) shall be selected by
mutual written agreement of the parties. If the parties do not agree, the referee shall be selected by the Presiding Judge of the Court (or his or her representative) as provided in California Code of Civil Procedure Section 638 and the
following related sections. The referee shall determine all issues in accordance with existing California law and the California rules of evidence and civil procedure. The referee shall be empowered to enter equitable as well as legal relief,
provide all temporary or provisional remedies, enter equitable orders that will be binding on the parties and rule on any motion which would be authorized in a trial, including without limitation motions for summary judgment or summary adjudication.
The award that results from the decision of the referee(s) will be entered as a judgment in the court that appointed the referee, in accordance with the provisions of California Code of Civil Procedure Sections 644(a) and 645. The parties reserve
the right to seek appellate review of any judgment or order, including but not limited to, orders pertaining to class certification, to the same extent permitted in a court of law. 

(i)    This Dispute Resolution Provision does not limit the right of any party to: (i) exercise
self-help remedies, such as but not limited to, setoff; (ii) initiate judicial or non-judicial foreclosure against any real or personal property collateral; (iii) exercise any judicial or power of sale rights, or (iv) act in a court
of law to obtain an interim remedy, such as but not limited to, injunctive relief, writ of possession or appointment of a receiver, or additional or supplementary remedies. The filing of a court action is not intended to constitute a waiver of the
right of any party, including the suing party, thereafter to require submittal of the Claim to arbitration or judicial reference. 

(j)    Any arbitration, judicial reference or trial by a judge of any Claim will take place on an
individual basis without resort to any form of class or representative action (the “Class Action Waiver”). Regardless of anything else in this Dispute Resolution Provision, the validity and effect of the Class Action Waiver may be
determined only by a court or referee and not by an arbitrator. The parties to this Agreement acknowledge that the Class Action Waiver is material and essential to the arbitration of any disputes between the parties and is nonseverable from the
agreement to arbitrate Claims. If the Class Action Waiver is limited, voided or found unenforceable, then the parties’ agreement to arbitrate shall be null and void with respect to such proceeding, subject to the right to appeal the limitation
or invalidation of the Class Action Waiver. The Parties acknowledge and agree that under no circumstances will a class action be arbitrated. 

(k)    By agreeing to binding arbitration or judicial reference, the parties irrevocably and
voluntarily waive any right they may have to a trial by jury as permitted by law in respect of any Claim. Furthermore, without intending in any way to limit this Dispute Resolution Provision, to the extent any Claim is not arbitrated or submitted to
judicial reference, the parties irrevocably and voluntarily waive any right they may have to a trial by jury to the extent permitted by law in respect of such Claim. This waiver of jury trial shall remain in effect even if the Class Action Waiver is
limited, voided or found unenforceable. WHETHER THE CLAM IS DECIDED BY ARBITRATION, BY JUDICIAL REFERENCE, OR BY TRIAL BY A JUDGE, THE PARTIES AGREE AND UNDERSTAND THAT THE EFFECT OF THIS AGREEMENT IS THAT THEY ARE GIVING UP THE RIGHT TO TRIAL BY
JURY TO THE EXTENT PERMITTED BY LAW. 
 10.5    Severability; Waivers. If any part of this Agreement
is not enforceable, the rest of the Agreement may be enforced. The Bank retains all rights, even if it makes a loan after Default. If the 

 

 22 

 
Bank waives a Default, it may enforce a later Default. Any consent or waiver under this Agreement must be in writing. 

10.6    Attorneys’ Fees. The Borrower shall reimburse the Bank for any reasonable costs and
attorneys’ fees incurred by the Bank in connection with the enforcement or preservation of any rights or remedies under this Agreement and any other documents executed in connection with this Agreement, and in connection with any amendment,
waiver, “workout” or restructuring under this Agreement. In the event of a lawsuit or arbitration proceeding, the prevailing party is entitled to recover costs and reasonable attorneys’ fees incurred in connection with the lawsuit or
arbitration proceeding, as determined by the court or arbitrator. In the event that any case is commenced by or against the Borrower under the Bankruptcy Code (Title 11, United States Code) or any similar or successor statute, the Bank is
entitled to recover costs and reasonable attorneys’ fees incurred by the Bank related to the preservation, protection, or enforcement of any rights of the Bank in such a case. As used in this paragraph, “attorneys’ fees” includes
the allocated costs of a party’s in-house counsel. 
 10.7    One Agreement. This Agreement and
any related security or other agreements required by this Agreement, collectively: 

(a)    represent the sum of the understandings and agreements between the Bank and the Borrower
concerning this credit; 
 (b)    replace any prior oral or written agreements between the
Bank and the Borrower concerning this credit; and 
 (c)    are intended by the Bank and the
Borrower as the final, complete and exclusive statement of the terms agreed to by them. 
 In the event of any conflict between
this Agreement and any other agreements required by this Agreement, this Agreement will prevail. Any reference in any related document to a “promissory note” or a “note” executed by the Borrower and dated as of the date of this
Agreement shall be deemed to refer to this Agreement, as now in effect or as hereafter amended, renewed, or restated. 

10.8    Indemnification. The Borrower will indemnify and hold the Bank harmless from any loss, liability,
damages, judgments, and costs of any kind relating to or arising directly or indirectly out of (a) this Agreement or any document or agreement required hereunder, (b) any credit extended or committed by the Bank to the Borrower hereunder,
and (c) any litigation or proceeding related to or arising out of this Agreement, any such document, or any such credit, except to the extent that such loss, liability, damages, judgments and/or costs are determined by a court of competent
jurisdiction or judicial or arbitral body appointed or selected in accordance with the terms of Section 10.4 of this Agreement) of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence,
bad faith or willful misconduct of the Bank. This indemnity includes but is not limited to attorneys’ fees (including the allocated cost of in-house counsel). This indemnity extends to the Bank, its parent, subsidiaries and all of their
directors, officers, employees, agents, successors, attorneys, and assigns. This indemnity will survive repayment of the Borrower’s obligations to the Bank. All sums due to the Bank hereunder shall be obligations of the Borrower, due and
payable immediately without demand. 
 10.9    Notices. Unless otherwise provided in this Agreement
or in another agreement between the Bank and the Borrower, all notices required under this Agreement shall be personally delivered or sent by first class mail, postage prepaid, or by overnight courier, to the addresses on the signature page of this
Agreement, or sent by facsimile to the fax numbers listed on the signature page, or to such other addresses as the Bank and the Borrower may specify from time to time in writing. Notices and other

  

 23 

 
communications shall be effective (i) if mailed, upon the earlier of receipt or five (5) days after deposit in the U.S. mail, first class, postage prepaid, (ii) if telecopied, when
transmitted, or (iii) if hand-delivered, by courier or otherwise (including telegram, lettergram or mailgram), when delivered. 

10.10    Headings. Article and paragraph headings are for reference only and shall not affect the
interpretation or meaning of any provisions of this Agreement. 
 10.11    Counterparts. This
Agreement may be executed in as many counterparts as necessary or convenient, and by the different parties on separate counterparts each of which, when so executed, shall be deemed an original but all such counterparts shall constitute but one and
the same agreement. 
 10.12    Prior Agreement Superseded. This Agreement supersedes and replaces
the Loan Agreement entered into as of June 1, 2005 between the Bank and the Borrower, and any credit outstanding thereunder shall be deemed to be outstanding under this Agreement. It is understood and agreed that the aggregate amount of debts,
liabilities and obligations owing by the Foreign Subsidiaries to the Bank and any branch, subsidiary or affiliate of the Bank, in each case under one or more loan agreements, credit agreements or other agreements evidencing the extension of credit
to a Foreign Subsidiary as of the date hereof, as determined by the Bank in its sole discretion, shall be deemed to be Foreign Credit Exposure hereunder. 

10.13    No Advisory or Fiduciary Relationship. In connection with all aspects of each transaction
contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other document required to be delivered hereby), the Borrower acknowledges and agrees, and acknowledges its affiliates’
understanding, that: (a)(i) the services regarding this Agreement provided by Bank, are arm’s-length commercial transactions between the Borrower and its affiliates, on the one hand, and the Bank, on the other hand, (ii) the Borrower has
consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (iii) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions
contemplated hereby and by the other documents required to be delivered hereby; (b)(i) the Bank is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not and will not be
acting as an advisor, agent or fiduciary, for the Borrower or any of affiliates or any other person and (ii) the Bank has no obligation to the Borrower or any of its affiliates with respect to the transactions contemplated hereby except those
obligations expressly set forth herein and in the other documents contemplated hereby; and (c) the Bank and its affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its
affiliates, and the Bank has no obligation to disclose any of such interests to the Borrower or its affiliates. To the fullest extent permitted by law, the Borrower hereby waives and releases, any claims that it may have against the Bank with
respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby. 

10.14    Patriot Act. Federal law requires all financial institutions to obtain, verify and record information
that identifies each person who opens an account or obtains a loan. The Bank will ask for the Borrower’s legal name, address, tax ID or social security number and other identifying information. The Bank may also ask for additional information
or documentation or take other actions reasonably necessary to verify the identity of the Borrower, guarantors or other related persons. 

10.15    Certain Defined Terms. As used in this Agreement, the following terms shall have the meanings set
forth below: 
 “Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease of any
Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of 
  

 24 

 
such date in accordance with GAAP, (b) in respect of any Synthetic Lease, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance sheet
of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a Capital Lease and (c) in respect of any Securitization Transaction of any Person, the outstanding principal amount of such financing, after
taking into account reserve accounts and making appropriate adjustments, determined by the Administrative Agent in its reasonable judgment. 

“Capital Lease” means, as applied to any Person, any lease of any property by that Person as lessee which, in accordance
with GAAP, is required to be accounted for as a capital lease on the balance sheet of that Person. 
 “Change of
Control” means the occurrence of any one of the following events: 
 (a)    any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such plan), other than the Nichols Persons, shall be the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a
person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire (such right, an “option right”), whether such right is exercisable immediately or only
after the passage of time), directly or indirectly, of 35% or more of the equity interests of the Borrower entitled to vote for members of the board of directors of the Borrower on a fully diluted basis (and taking into account all such securities
that such person or group has the right to acquire pursuant to any option right); or 

(b)    during any period of 24 consecutive months, a majority of the members of the board of directors
of the Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election, appointment or nomination to that board or equivalent governing body
was approved by individuals referred to in clause (i) above constituting at the time of such election, appointment or nomination at least a majority of that board or equivalent governing body or (iii) whose election, appointment or
nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election, appointment or nomination at least a majority of that board or
equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial appointment or nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a
result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board of
directors). 
 “Control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management of a Person, whether through the ability to exercise voting power, by contract or otherwise. 

“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship,
bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting
the rights of creditors generally. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time. 
  

 25 

 “ERISA Affiliate” means any trade or business (whether or not incorporated)
under common control with the Borrower within the meaning of Section 414(b) or (c) of the Internal Revenue Code (and Sections 414(m) and (o) of the Internal Revenue Code for purposes of provisions relating to Section 412 of the
Internal Revenue Code). 
 “Foreign Credit Exposure” means, as of any date of determination, the aggregate
amount of debts, liabilities and obligations owing by the Foreign Subsidiaries to the Bank and any branch, subsidiary or affiliate of the Bank, in each case under one or more loan agreements, credit agreements or other agreements evidencing the
extension of credit to a Foreign Subsidiary, as determined by the Bank in its sole discretion. 
 “Foreign
Subsidiary” means a Subsidiary that is not organized under the laws of any state of the United States or the District of Columbia. For the avoidance of doubt, K•Swiss France SAS, K•Swiss Australia Pty. Ltd., K•Swiss Germany
GMBH, KS U.K. Ltd., K•Swiss Retail Ltd., 1166789 Ontario Inc., K•Swiss International Ltd., Palladium SAS and K•Swiss Europe B.V. are Foreign Subsidiaries. 

“Foreign Subsidiary Guarantees” means the collective reference to (i) that certain guaranty dated as of the Closing
Date made by Borrower in favor of the Bank (as defined therein) guaranteeing the obligations of Palladium SAS to Bank (as defined therein), (ii) that certain guaranty dated as of the Closing Date made by Borrower in favor of the Bank (as
defined therein) guaranteeing the obligations of 1166789 Ontario Inc. to Bank (as defined therein), (iii) that certain guaranty dated as of the Closing Date made by the Borrower in favor of the Bank (as defined therein) guaranteeing the
obligations of K•Swiss France SAS to Bank (as defined therein), (iv) that certain guaranty dated as of the Closing Date made by the Borrower in favor of the Bank guaranteeing the obligations of K•Swiss Australia Pty. Ltd. to Bank (as
defined therein), (v) that certain guaranty dated as of the Closing Date made by the Borrower in favor of the Bank (as defined therein) guaranteeing the obligations of K•Swiss Germany GMBH to Bank (as defined therein), (vi) that
certain guaranty dated as of the Closing Date made by the Borrower in favor of the Bank (as defined therein) guaranteeing the obligations of KS U.K. Ltd. to Bank (as defined therein), (vii) that certain guaranty dated as of the Closing Date
made by the Borrower in favor of the Bank (as defined therein) guaranteeing the obligations of K•Swiss Retail Ltd. to Bank (as defined therein), (viii) that certain guaranty dated as of the Closing Date made by the Borrower in favor of the
Bank (as defined therein) guaranteeing the obligations of K•Swiss International Ltd. to Bank (as defined therein) and (ix) that certain guaranty dated as of the Closing Date made by the Borrower in favor of the Bank (as defined therein)
guaranteeing the obligations of K•Swiss Europe B.V. (as defined therein) to Bank, in each case as the same may be amended, amended and restated, supplemented or otherwise modified; “Foreign Subsidiary Guaranty” means any one of
the foregoing. 
 “Indebtedness” means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance with GAAP: 

(a)    all obligations for borrowed money, whether current or long-term and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments; 

(b)    all purchase money Indebtedness; 

(c)    the principal portion of all obligations under conditional sale or other title retention
agreements relating to property purchased by the Borrower or any Subsidiary (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business); 

 

 26 

 (d)    all obligations arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties, bid, performance or surety bonds and similar instruments; 

(e)    all obligations in respect of the deferred purchase price of property or services (other than
trade accounts payable in the ordinary course of business and, in each case, not past due for more than 60 days after the date on which such trade account payable was created), including, without limitation, any earn out obligations recognized as a
liability on the balance sheet of the Borrower and its Subsidiaries in accordance with GAAP; 

(f)    the Attributable Indebtedness of Capital Leases, Securitization Transactions and Synthetic
Leases; 
 (g)    all obligations of such Person to purchase, redeem, retire, defease or
otherwise make any payment in respect of any equity interests in such Person or any other Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and
unpaid dividends; 
 (h)    all indebtedness of another Person secured by (or for which the
holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any lien on, or payable out of the proceeds of production from, property owned or acquired by such Person, whether or not the obligations secured thereby
have been assumed; 
 (i)    the Swap Termination Value of any Swap Contract; 

(j)    all guarantees with respect to outstanding Indebtedness of the types specified in clauses
(a) through (i) above of any other Person; and 
 (k)    all Indebtedness of the
types referred to in clauses (a) through (j) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which the Borrower or a Subsidiary is a general partner or
joint venturer, unless such Indebtedness is expressly made non-recourse to the Borrower or such Subsidiary. 
 For purposes hereof, the amount
of any direct obligation arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments shall be the maximum amount available to be drawn thereunder. 

“Investment” means, as to any Person, the direct or indirect acquisition or investment by such Person, whether by means
of (a) the purchase or other acquisition of equity interests of another Person, (b) a loan, advance or capital contribution to, guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation
or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor guarantees Indebtedness of such other Person and (c) the acquisition, in a single
transaction or in a series of related transactions, of all or substantially all of the property of another Person or at least a majority of the voting equity interests of another Person (in each case whether or not involving a merger or
consolidation with such other Person and whether for cash, property, services, assumption of Indebtedness, securities or otherwise). 

“Nichols Persons” means the collective reference to (a) Steven Nichols, (b) the heirs, executors,
administrators, testamentary trustees, legatees or beneficiaries of Steven Nichols and (c) a trust, the beneficiaries of which, or a corporation, partnership or limited liability company, the stockholders or

  

 27 

 
general or limited partners or members of which, include only Steven Nichols or his spouse or lineal descendants, in each case to whom any Person set forth in (a) or (b) or any such
trust, corporation, partnership or limited liability company has transferred the beneficial ownership of any capital stock of the Borrower. 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company,
partnership, governmental authority or other entity. 
 “PBGC” means the Pension Benefit Guaranty Corporation
or any successor thereto. 
 “Plan” means any employee benefit plan within the meaning of Section 3(3) of
ERISA, maintained for employees of the Borrower or any ERISA Affiliate or any such Plan to which the Borrower or any ERISA Affiliate is required to contribute on behalf of any of its employees. 

“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the
thirty-day notice period has been waived. 
 “Securitization Transaction” means, with respect to any Person,
any financing transaction or series of financing transactions (including factoring arrangements) pursuant to which such Person or any subsidiary of such Person may sell, convey or otherwise transfer, or grant a security interest in, accounts,
payments, receivables, rights to future lease payments or residuals or similar rights to payment to a special purpose subsidiary or affiliate of such Person. 

“Significant Subsidiary” means (a) K•Swiss France SAS, K•Swiss Australia Pty. Ltd., K•Swiss Germany
GMBH, KS U.K. Ltd., K•Swiss Retail Ltd., 1166789 Ontario Inc., K•Swiss International Ltd., Palladium SAS and K•Swiss Europe B.V. so long as, with respect to each such Subsidiary, any loan agreement, letter agreement, credit agreement
or other agreement evidencing the extension of credit by the Bank or any branch, affiliate or subsidiary of the Bank to such Subsidiary has not expired or been terminated in accordance with the terms of such agreement and (b) any other
Subsidiary that enters into any loan agreement, letter agreement, credit agreement or other agreement evidencing the extension of credit by the Bank or any branch, affiliate or subsidiary of the Bank to such Subsidiary, so long as such agreement has
not expired or been terminated in accordance with the terms of such agreement. 
 “Subsidiary” means a
corporation, company, partnership, joint venture, limited liability company or other business entity of which a majority of the equity interests is at the time beneficially owned, or the management of which is otherwise Controlled, directly or
indirectly through one or more intermediaries, by the Borrower. 
 “Swap Contract” means (a) any and all
rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or
options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency
rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or
subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement. 
  

 28 

 “Swap Termination Value” means, in respect of any one or more Swap
Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in
accordance therewith, such termination value(s) and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or
other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include Bank or any affiliate of a Bank). 

“Synthetic Lease” means any synthetic lease, tax retention operating lease, off-balance sheet loan or similar
off-balance sheet financing arrangement whereby the arrangement is considered borrowed money indebtedness for tax purposes but is classified as an operating lease or does not otherwise appear on a balance sheet under GAAP. 

 

 29 

 This Agreement is executed as of the date stated at the beginning of this Agreement.

  

			
	BORROWER:
	
	K•SWISS INC.
		
	By:	 	/s/    George Powlick
	Name:	 	George Powlick
	Title:	 	Chief Financial Officer
	
	 Address where notices to the Borrower are to be sent:

	
	 31248 Oak Crest Drive

Westlake Village, CA 91361

		 	
		 	
	BANK:
	
	BANK OF AMERICA, N.A.
		
	By:	 	/s/    Elaine E. Colgate
	Name:	 	Elaine E. Colgate
	Title:	 	SVP
	
	 Address where notices to the Bank are to be sent:

	
	 Bank of America, N.A.

333 S. Hope Street

Los Angeles, CA 90071

 

 30 

 Schedule 7.4(b) 

Indebtedness 
 Pursuant to
that certain Amendment No. 2, dated May 1, 2010, to the Share Purchase and Shareholders’ Rights Agreement, dated May 16, 2008, as amended by Amendment No. 1 dated June 2, 2009, by and among ARFI, Christophe
Mortemousque, Palladium and K•Swiss Inc., K•Swiss Inc. is obligated to pay up to €3,500,000 in 2013 to Christophe Mortemousque in respect of the variable future price relating to K•Swiss Inc.’s acquisition in June 2009 of
the remaining 43% equity interest in Palladium. 

 Schedule 7.5(c) 

Liens 
  

									
	 DEBTOR(S)
	    	 JURISDICTION
SEARCHED
	    	 SECURED PARTY OR PLAINTIFF
	  	 FILE NO./

FILE DATE
	    	 COLLATERAL

DESCRIPTION

	 K•Swiss Inc.
	    	Delaware SOS	    	 Dell Financial Services, L.P.

12234 N. IH-35 Bldg B

Austin, Texas 78753
	  	 Initial 61691815

5/18/06
	    	Equipment
					
	 K•Swiss Inc.
	    	Delaware SOS	    	 Dell Financial Services, L.P.

12234 N. IH-35 Bldg B

Austin, Texas 78753
	  	 Initial

61725043

05/22/2006
	    	Equipment

 Schedule 7.7(f) 

Investments 
  

				
	 Initial Investments in Foreign Subsidiaries (in USD)

		
	 1951013 INVESTMENT IN K-SWISS DIRECT
	  	$	1,000.00
	 1953011 INVESTMENT IN K-SWISS INTL
	  	$	180,351.59
	 1953081 INVESTMENT IN K-SWISS JAPAN
	  	$	461,252.08
	 1954043 INVESTMENT IN ARFI
	  	$	4,919,356.63
	 1955011 INVESTMENT IN KS AUSTRALIA
	  	$	1,000.00
		
	 Other Investments in Foreign Subsidiaries
	  		
		
	 K•Swiss Japan
	  	$	557,403.25

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