Document:

EX-10.2

 Exhibit 10.2 
 LETTER OF CREDIT FACILITY AGREEMENT 
 dated as of 

December 27, 2012 
 among 
 PAR PETROLEUM CORPORATION, 

as Borrower, 
 COMPASS BANK, 
 as Lender 

 This Letter of Credit Facility Agreement, dated as of December 27, 2012 (the
“Effective Date”), is among PAR PETROLEUM CORPORATION, a Delaware corporation (the “Borrower”) and COMPASS BANK as lender (the “Lender”). 

R E C I T A L S 

A. The Borrower has requested that the Lender provide extensions of credit on behalf of the Borrower. 

B. The Lender has agreed to make such extensions of credit subject to the terms and conditions of this Agreement. 

C. In consideration of the mutual covenants and agreements herein contained and extensions of credit and commitments hereinafter referred
to, the parties hereto agree as follows: 
 ARTICLE I 

Definitions and Accounting Matters 
 Section 1.01 Certain Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 

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

“Agreement” means this Letter of Credit Facility Agreement, as the same may from time to time be amended, modified,
supplemented or restated. 
 “Alternate Base Rate” means, for any day, a rate per annum
equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1% and (c) the LIBO Rate for a one month interest period in effect on such day plus 3.50%. Any change in the
Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the LIBO Rate shall be effective from and including the effective day of such change in the Prime Rate, the Federal Funds Effective Rate and the LIBO Rate,
respectively. 
 “Availability Period” means the period from and including the Effective Date to but excluding
the Termination Date. 
 “Board” means the Board of Governors of the Federal Reserve System of the United States
of America or any successor Governmental Authority. 
 “Borrower” has the meaning given in the introductory
paragraph. 
 “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks
in Houston, Texas, are authorized or required by law to remain closed. 
 “Cash Collateral Account” means the
account established by Borrower with Lender for the benefit of the Lender and designated as account no. 6703130060 on the Effective Date. 
 “Change in Law” means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by the Lender by any lending office of such Lender or by such Lender’s holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement. 

 “Code” means the Internal Revenue Code of 1986, as amended from time to
time, and any successor statute. 
 “Collateral Value” means, as of any date of determination, the aggregate
dollar value of the cash or cash equivalents on deposit in the Cash Collateral Account. 
 “Commitment” means
$30,000,000. 
 “Complete Collateral Compliance” as of any date means that as of such date the Collateral Value
is equal to or greater than the Required Collateral Amount. 
 “Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. For the purposes of this definition, and without limiting the
generality of the foregoing, any Person that owns directly or indirectly 25% or more of the Equity Interests having ordinary voting power for the election of the directors or other governing body of a Person (other than as a limited partner of such
other Person) will be deemed to “control” such other Person. “Controlling” and “Controlled” have meanings correlative thereto. 

“Debt” means, for any Person, the sum of the following (without duplication): (a) all obligations of such Person for
borrowed money or evidenced by bonds, bankers’ acceptances, debentures, notes or other similar instruments; (b) all obligations of such Person (whether contingent or otherwise) in respect of letters of credit, surety or other bonds and
similar instruments; (c) all accounts payable and all accrued expenses, liabilities or other obligations of such Person to pay the deferred purchase price of Property or services; (d) all capital lease obligations; (e) all obligations
under synthetic Leases; (f) all Debt (as defined in the other clauses of this definition) of others secured by a Lien on any Property of such Person, whether or not such Debt is assumed by such Person; (g) all Debt (as defined in the other
clauses of this definition) of others guaranteed by such Person or in which such Person otherwise assures a creditor against loss of the Debt (howsoever such assurance shall be made) to the extent of the lesser of the amount of such Debt and the
maximum stated amount of such guarantee or assurance against loss; (h) all obligations or undertakings of such Person to maintain or cause to be maintained the financial position or covenants of others or to purchase the Debt or Property of
others; (i) obligations to deliver commodities, goods or services, in consideration of one or more advance payments, other than gas balancing arrangements in the ordinary course of business; (j) any Debt of a partnership for which such
Person is liable either by agreement, by operation of law or by a Governmental Requirement but only to the extent of such liability; (k) preferred stock; and (l) the undischarged balance of any production payment created by such Person or
for the creation of which such Person directly or indirectly received payment. The Debt of any Person shall include all obligations of such Person of the character described above to the extent such Person remains legally liable in respect thereof
notwithstanding that any such obligation is not included as a liability of such Person under GAAP. 
 “Default”
means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default. 
 “Deposit Account Control Agreement” means the Deposit Account Control Agreement executed by Borrower in substantially the form attached hereto as Exhibit A. 

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

“Effective Date” has the meaning given in the introductory paragraph. 

“Environmental Laws” means any and all Governmental Requirements pertaining in any way to health, safety, the environment
or the preservation or reclamation of natural resources, in effect in any and all jurisdictions in which the Borrower or any Subsidiary is conducting or at any time has conducted business, or where any Property of the Borrower or any Subsidiary is
located, including without limitation, the Oil Pollution Act of 1990 (“OPA”), as amended, the Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980 (“CERCLA”),
as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976 

  
 3 

 
(“RCRA”), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended,
the Hazardous Materials Transportation Act, as amended, and other environmental conservation or protection Governmental Requirements. The term “oil” shall have the meaning specified in OPA, the terms “hazardous substance” and
“release” (or “threatened release”) have the meanings specified in CERCLA, the terms “solid waste” and “disposal” (or “disposed”) have the meanings specified in RCRA and the term “oil and gas
waste” shall have the meaning specified in Section 91.1011 of the Texas Natural Resources Code (“Section 91.1011”); provided, however, that (a) in the event either OPA, CERCLA, RCRA or
Section 91.1011 is amended so as to broaden the meaning of any term defined thereby, such broader meaning shall apply subsequent to the effective date of such amendment and (b) to the extent the laws of the state or other jurisdiction in
which any Property of the Borrower or any Subsidiary is located establish a meaning for “oil,” “hazardous substance,” “release,” “solid waste,” “disposal” or “oil and gas waste” which is
broader than that specified in either OPA, CERCLA, RCRA or Section 91.1011, such broader meaning shall apply. 

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

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

“ERISA Affiliate” means each trade or business (whether or not incorporated) that, together with the Borrower or a
Subsidiary is treated as a “single employer” under Section 414(b) or (c) of the Code, or solely for the proposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code. 
 “ERISA Event” means (a) any “reportable event”, as
defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) the existence with respect to any Plan of a failure to meet the minimum
funding standards under Section 412 of 430 of the Code or Section 303 of ERISA; (c) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan;
(d) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (e) the determination that
any Plan is considered an “at risk” plan or a plan in endangered or critical status within the meaning of Section 430 of the Code or Section 303 of ERISA; (f) the incurrence by the Borrower or any of its ERISA Affiliates of
any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA. 

“Event of Default” has the meaning assigned such term in Section 10.01. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Excluded Taxes” means, with respect to the Lender, (a) income or franchise taxes imposed on (or measured by) its
net income by the United States of America or such other jurisdiction under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located
and (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction in which the Borrower is located. 
 “Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, New York or, if such rate is not so published for any day that is a Business Day, the
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Lender from three Federal funds brokers of recognized standing selected by it. 

  
 4 

 “Financial Officer” means, for any Person, the chief financial officer,
principal accounting officer, treasurer or controller of the Borrower. 
 “GAAP” means generally accepted
accounting principles in the United States of America as in effect from time to time. 
 “Governmental
Authority” means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government over the Borrower, any Subsidiary, any of their Properties or the Lender. 

“Governmental Requirement” means any applicable law, statute, code, ordinance, order, rule, regulation, judgment, decree,
injunction, franchise, permit, certificate, license, authorization or other legal requirement, whether now or hereinafter in effect, including, without limitation, Environmental Laws, energy regulations and occupational, safety and health standards
or controls, of any Governmental Authority. 
 “Highest Lawful Rate” means, as to any Lender, the maximum
non-usurious interest rate, if any (or, if the context so requires, an amount calculated at such rate), that at any time or from time to time may be contracted for, taken, reserved, charged, or received by such Lender under applicable laws with
respect to an obligation, as such laws are presently in effect or, to the extent allowed by applicable law, as such laws may hereafter be in effect and which allow a higher maximum non-usurious interest rate than such laws now allow. The
determination of the Highest Lawful Rate shall, to the extent required by applicable law, take into account as interest paid, taken, received, charged, reserved or contracted for any and all relevant payments or charges under the Loan Documents.

 “Indemnified Taxes” means Taxes other than Excluded Taxes. 

“Investment” means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or
otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any “short sale” or any sale of any securities at a time when such securities are not owned by the
Person entering into such short sale) or any capital contribution to any other Person; (b) the making of any deposit with, or advance, loan or capital contribution to, assumption of Debt of, purchase or other acquisition of any other Debt or
equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such
Person); or (c) the entering into of any guarantee of, or other contingent obligation (including the deposit of any Equity Interests to be sold) with respect to, Debt or other liability of any other Person and (without duplication) any amount
committed to be advanced, lent or extended to such Person. 
 “Jefferies Credit Agreement” means that certain
Delayed Draw Term Loan Credit Agreement dated as of August 31, 2012, by and among the Borrower, the Guarantors party thereto, the lenders party thereto and Jefferies Finance LLC, as administrative agent for the lenders as in effect on the date
hereof, without giving effect to any subsequent amendments or waiver thereto. 
 “LC Disbursement” means a
payment made by the Lender pursuant to a Letter of Credit. 
 “LC Exposure” means, at any time, the sum of
(a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time. 

“Lender” has the meaning given in the introductory paragraph. 

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

  
 5 

 “Letter of Credit Applications” means all letter of credit applications and
other agreements (including any amendments, modifications or supplements thereto) submitted by the Borrower, or entered into by the Borrower, with Lender relating to any Letter of Credit. 

“LIBO Rate” means, the rate appearing on Reuters BBA Libor Rates LIBOR01 (or on any successor or substitute page of such
service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by the Lender from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the London interbank market) as the rate for dollar deposits of $5,000,000 with a maturity of one month. 
 “Lien” means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law,
statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a) the lien or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust
receipt or a lease, consignment or bailment for security purposes or (b) royalties, production payments and the like. The term “Lien” shall include easements, restrictions, servitudes, permits, conditions, covenants,
encroachments, exceptions or reservations. For the purposes of this Agreement, the Borrower and its Subsidiaries shall be deemed to be the owner of any Property which it has acquired or holds subject to a conditional sale agreement, or leases under
a financing lease or other arrangement pursuant to which title to the Property has been retained by or vested in some other Person in a transaction intended to create a financing. 

“Loan Documents” means this Agreement, the Letter of Credit Applications, the Letters of Credit, the Note, the Security
Instruments and each other certificate, document, instrument or agreement from time to time executed by Borrower or any Responsible Officer and delivered in connection with this Agreement. 

“Loan Parties” means the Borrower and each Subsidiary that is a party to any Loan Document. 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, Property or condition
(financial or otherwise) of the Borrower and the Subsidiaries taken as a whole, (b) the ability of any Loan Party to perform any of its obligations under any Loan Document, (c) the validity or enforceability of any Loan Document or
(d) the rights and remedies of or benefits available to the Lender under any Loan Document. 
 “Material
Indebtedness” means other Debt (other than the Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $100,000. For
purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any
netting agreements) that the Borrower or such Subsidiary would be required to pay if such Swap Agreement were terminated at such time. 
 “Maturity Date” means December 26, 2013. 

“Note” means the promissory note of the Borrower described in Section 2.08 and being substantially in the
form of Exhibit B, together with all amendments, modifications, replacements, extensions and rearrangements thereof. 

“Obligations” means, without duplication, (a) all Debt evidenced hereunder, (b) the obligation of the Loan
Parties for the payment of the fees payable hereunder or under the other Loan Documents, and (c) all other obligations and liabilities (monetary or otherwise, whether absolute or contingent, matured or unmatured) of the Loan Parties to the
Lender, including reimbursement obligations with respect to LC Disbursements, in each case now existing or hereafter incurred under, arising out of or in connection with any Loan Document, and to the extent that any of the foregoing includes or
refers to the payment of amounts deemed or constituting interest, only so much thereof as shall have accrued, been earned and which remains unpaid at each relevant time of determination. 

  
 6 

 “Other Taxes” means any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement and any other Loan Document. 

“Participant” has the meaning set forth in Section 11.04(c)(i). 

“Patriot Act” has the meaning set forth in Section 11.14. 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA, and any successor entity
performing similar functions. 
 “Permitted Holders” means any Beneficial Owner of Equity Interest of the
Borrower on the Effective Date. 
 “Person” means any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
 “Plan” means
any employee pension benefit plan (other than a Multiemployer Plan), subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if
such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
 “Prime Rate” means the prime rate of interest published by the Wall Street Journal from time to time; each change in the Prime Rate shall be effective from and including the date such
change is published as being effective. 
 “Property” means any interest in any kind of property or asset,
whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights. 
 “Redemption” means with respect to any Debt, the repurchase, redemption, prepayment, repayment or defeasance (or the segregation of funds with respect to any of the foregoing) of such
Debt. “Redeem” has the correlative meaning thereto. 
 “Regulation D” means Regulation D of the
Board, as the same may be amended, supplemented or replaced from time to time. 
 “Related Parties” means, with
respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors (including attorneys, accountants and experts) of such Person and such Person’s Affiliates. 

“Required Collateral Amount” means, at any time, 105% of the LC Exposure. 

“Responsible Officer” means, as to any Person, the Chief Executive Officer, the Chief Operating Officer, the President,
any Financial Officer or any Vice President of the Borrower. 
 “SEC” means the U.S. Securities and Exchange
Commission or any successor Governmental Authority. 
 “Security Instruments” means the security agreements,
deposit account control agreements and other agreements, instruments or certificates, and any and all other agreements, instruments, certificates or certificates now or hereafter executed and delivered by the Borrower or any other Person in
connection with, or as security for the payment or performance of the Obligations, this Agreement, or reimbursement obligations under the Letters of Credit, as such agreements may be amended, modified, supplemented or restated from time to time,
including, without limitation, the Deposit Account Control Agreement. 
 “Subsidiary” means (a) any Person
of which at least a majority of the outstanding Equity Interests having by the terms thereof ordinary voting power to elect a majority of the board of directors, manager or other governing body of such Person (irrespective of whether or not at the
time Equity Interests of any other class or classes of such 

  
 7 

 
Person shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or Controlled by the Borrower or one or more of its
Subsidiaries or by the Borrower and one or more of its Subsidiaries and (b) any partnership of which the Borrower or any of its Subsidiaries is a general partner. Unless otherwise indicated herein, each reference to the term
“Subsidiary” shall mean a Subsidiary of the Borrower. 
 “Swap Agreement” means any agreement
with respect to any swap, forward, future or derivative transaction or option or similar agreement, whether exchange traded, “over-the-counter” or otherwise, involving, or settled by reference to, one or more rates, currencies,
commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no
phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement. 

“Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed
by any Governmental Authority. 
 “Termination Date” means the earlier of the Maturity Date and the date of
termination of the Commitments. 
 “Transactions” means the execution, delivery and performance by the Borrower
of this Agreement, each other Loan Document to which it is a party, the use of the proceeds thereof and the issuance of Letters of Credit hereunder, and the grant of Liens pursuant to the Security Instruments. 

Section 1.02 Terms Generally; Rules of Construction. The definitions of terms herein shall apply equally to the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall
be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of
or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any law shall be construed as referring to such law as amended, modified, codified or reenacted, in whole or in part, and in effect from time to time,
(c) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to the restrictions contained herein), (d) the words “herein”, “hereof” and “hereunder”,
and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) with respect to the determination of any time period, the word “from” means “from and
including” and the word “to” means “to and including” and (f) any reference herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement. No provision of this Agreement or any other Loan Document shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision. In the event of a conflict between this
Agreement and the Application for Letter of Credit, the Application for Letter of Credit shall control. In the event of a conflict between this Agreement and any Security Instrument, the Security instrument shall control. 

Section 1.03 Accounting Terms and Determinations; GAAP. Unless otherwise specified herein, all accounting terms
used herein shall be interpreted, all determinations with respect to accounting matters hereunder shall be made, and all financial statements and certificates and reports as to financial matters required to be furnished to the Lender hereunder shall
be prepared, in accordance with GAAP, applied on a basis consistent except for changes in which Borrower’s independent certified public accountants concur and which are disclosed to Lender on the next date on which financial statements are
delivered to the Lender. 
 ARTICLE II 
 Letters of Credit 
 Section 2.01 General. Subject to the
terms and conditions set forth herein, the Borrower may, from time to time, request that Lender issue Letters of Credit in dollars for its own account or for the account of any 

  
 8 

 
of its Subsidiaries, in a form reasonably acceptable to the Lender, at any time during the Availability Period. In no event shall the aggregate face amount of the Letters of Credit issued under
this Agreement result in the LC Exposure exceeding the Commitment. The reimbursement obligations of Borrower for LC Disbursements shall be evidenced by the Note. In the event of any inconsistency between the terms and conditions of this Agreement
and the terms and conditions of any Letter of Credit Application, the terms and conditions of this Agreement shall control. 

Section 2.02 Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a
Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the Lender) to
Lender (not less than three (3) Business Days in advance of the requested date of issuance, amendment, renewal or extension) a notice: (i) requesting the issuance of a Letter of Credit or identifying the outstanding Letter of Credit issued
by Lender to be amended, renewed or extended; (ii) specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day); (iii) specifying the date on which such Letter of Credit is to expire (which shall comply
with Section 2.03); (iv) specifying the amount of such Letter of Credit; (v) specifying the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such
Letter of Credit; and (vi) at least 2 Business Days prior to the requested date of issuance, amendment, renewal or extension, the Borrower shall deposit cash in the Cash Collateral Account necessary to achieve Complete Collateral Compliance
after giving effect to the issuance of the requested Letter of Credit (or amendment, renewal or extension, as the case may be). If requested by the Lender, the Borrower shall submit a letter of credit application on Lender’s standard form in
connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and with respect to each notice provided by the Borrower above and any issuance, amendment, renewal or extension of each
Letter of Credit, the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension the LC Exposure shall not exceed the Commitment. 

Section 2.03 Expiration Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of
(i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal, which renewal may be provided for in the initial Letter of Credit, or extension thereof, one year after such renewal or extension)
and (ii) the date that is twenty (20) Business Days prior to the Maturity Date. 
 Section 2.04
Reimbursement. If the Lender shall make any LC Disbursement, the Borrower authorizes Lender to pay such LC Disbursement from the funds on deposit in the Cash Collateral Account, or at its option Borrower may reimburse such LC Disbursement
by paying to the Lender an amount equal to such LC Disbursement not later than 12:00 noon, Houston, Texas time, on the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC Disbursement prior to 10:00 a.m.,
Houston, Texas time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date, then not later than 12:00 noon, Houston, Texas time, or the Business Day immediately following the date that Borrower
receives such notice. In the event that the Cash Collateral Account does not have sufficient funds to reimburse Lender for any LC Disbursement and the Borrower fails to otherwise reimburse Lender by the time specified in the preceding sentence, the
Borrower agrees to pay to the Lender forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such LC Disbursement is made to but excluding the date of payment to the Lender, at the interest rate
set forth in Section 2.07. 
 Section 2.05 Obligations Absolute. The Borrower’s obligation
to reimburse LC Disbursements as provided in Section 2.05 shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of Credit, any Letter of Credit Application or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a
Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by Lender under a Letter of Credit against presentation of a draft or other
document that does not comply with the terms of such Letter of Credit or any Letter of Credit Application, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the
provisions of this Section 2.05, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder. Neither the Lender nor any of its Related Parties shall have any liability or
responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any
error, 

  
 9 

 
omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Lender; provided that the foregoing shall not be construed to excuse Lender from liability to the Borrower to the
extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by Lender’s failure to exercise
care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Lender
(as finally determined by a court of competent jurisdiction), the Lender shall be deemed to have exercised all requisite care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree
that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Lender may, in its sole reasonable discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 Section 2.06 Disbursement Procedures. Lender shall, promptly following its receipt thereof, examine all
documents purporting to represent a demand for payment under a Letter of Credit. Lender shall promptly notify the Borrower by telephone (confirmed by telecopy) of such demand for payment and whether Lender has made or will make an LC Disbursement
thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Lender with respect to any such LC Disbursement. 

Section 2.07 Interim Interest. If Lender shall make any LC Disbursement, then, until the Borrower shall have
reimbursed Lender for such LC Disbursement or Lender shall have deducted such amount from the Cash Collateral Account, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but
excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum equal to Alternate Base Rate plus 2%. 
 Section 2.08 Note. The Borrower’s Obligations to lender shall be evidenced by a single promissory note payable to the order of the Lender in substantially the form of Exhibit
B, dated as of the date of this Agreement. 
 ARTICLE III 

Fees and Interest 
 Section 3.01 Fees. 
 (a) Letter of Credit Fees. The
Borrower agrees to pay to the Lender (i) upon issuance and upon any extension or renewal thereof, a Letter of Credit fee, equal to 1.5% per annum of the stated face amount of each Letter of Credit calculated for the number of days such
Letter of Credit is to remain outstanding based on its stated term, and (ii) its standard and customary fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit issued by Lender or processing of drawings
thereunder. The Letter of Credit fee shall be payable upon issuance and upon any renewal of such Letter of Credit. Any other fees payable to Lender pursuant to this Section 3.01(a) shall be payable within 10 days after demand. All Letter of
Credit fees and fronting fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 
 (b)
Other Fees. The Borrower agrees to pay to the Lender all closings costs and fees payable in the amounts and at the times specified in that certain Term Sheet dated December 4, 2012 by and between Borrower and Lender, or otherwise
separately agreed upon between the Borrower and Lender (but without duplication of the fees payable in Section 3.01(a)). 

  
 10 

 Section 3.02 Post-Default Rate. 

Notwithstanding the foregoing, if any fee or other amount payable by the Borrower hereunder or under any other Loan Document is not paid
when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to Alternate Base Rate plus two percent (2%), but in no event to exceed the
Highest Lawful Rate. 
 Section 3.03 Interest Rate Computations. All interest hereunder shall be computed on
the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), except that interest computed by reference to
the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). The applicable Alternate Base Rate or LIBO Rate shall be determined by the Lender, and such determination shall be conclusive absent manifest error, and be binding upon the parties hereto.

 ARTICLE IV 
 Payments. 
 Section 4.01 Payments Generally.

 (a) Payments by the Borrower. The Borrower shall make each payment required to be made by it hereunder (whether of fees
or reimbursement of LC Disbursements, or of amounts payable under Section 5.01 or otherwise) prior to 12:00 noon, Houston, Texas time, on the date when due, in dollars that constitute immediately available funds, without defense,
deduction, recoupment, set-off or counterclaim. Fees, once paid, shall not be refundable under any circumstances absent manifest error (e.g., as a result of a clerical mistake). Any amounts received after such time on any date may, in the discretion
of the Lender, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Lender at its offices specified in Section 11.01. If any payment
hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such
extension. All payments hereunder shall be made in dollars. 
 (b) Application of Insufficient Payments. If at any time
insufficient funds are received by and available to the Lender to pay fully all amounts of unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of unreimbursed LC Disbursements then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of unreimbursed LC Disbursements then due to such parties. 
 ARTICLE V

 Taxes; Illegality 
 Section 5.01 Taxes. 
 (a) Payments Free of Taxes. Any and
all payments by or on account of any obligation of the Borrower under any Loan Document shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required to deduct
any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this
Section 5.01(a)), the, Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted
to the relevant Governmental Authority in accordance with applicable law. 

  
 11 

 (b) Payment of Other Taxes by the Borrower. The Borrower shall pay any Other Taxes to
the relevant Governmental Authority in accordance with applicable law. 
 (c) Indemnification by the Borrower. The
Borrower shall indemnify the Lender, within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Lender on or with respect to any payment by or on account of any obligation of the
Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 5.01) and any penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate of the Lender as to the amount of such payment or liability under this
Section 5.01 shall be delivered to the Borrower and shall be conclusive absent manifest error. 
 (d) Evidence of
Payments. As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the Lender the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Lender. 
 (e) Tax Refunds. If the Lender determines, in its reasonable discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with
respect to which the Borrower has paid additional amounts pursuant to this Section 5.01, it shall pay over such refund to the Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under
this Section 5.01 with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Lender and without interest (other than any interest paid by the relevant Governmental Authority with
respect to such refund); provided, that the Borrower, upon the request of the Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the
Lender in the event the Lender is required to repay such refund to such Governmental Authority. This Section 5.01 shall not be construed to require the Lender to make available its tax returns (or any other information relating to its taxes
which it deems confidential) to the Borrower or any other Person. 
 Section 5.02 Mitigation Obligations. If
the Borrower is required to pay any additional amount to the Lender or any Governmental Authority for the account of the Lender pursuant to Section 5.01, then the Lender shall use reasonable efforts to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment of the Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 5.01 in the future and (ii) would
not subject the Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to the Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by the Lender in connection with any such designation
or assignment. 
 ARTICLE VI 
 Conditions Precedent 
 Section 6.01 Conditions to
Effectiveness. This Agreement shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 11.02): 

(a) The Lender shall have received all fees and other amounts due and payable, including, to the extent invoiced, reimbursement or payment
of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder. 
 (b) The Lender shall have received
a certificate of the Secretary or an Assistant Secretary of the Borrower setting forth (i) resolutions of its board of directors with respect to the authorization of Borrower to execute and deliver the Loan Documents to which it is a party and
to enter into the transactions contemplated in those documents, (ii) the officers of the Borrower who are authorized to sign the Loan Documents to which Borrower is a party, (iii) specimen signatures of such authorized officers, and
(iv) the articles or certificate of 

  
 12 

 
incorporation and bylaws of the Borrower, certified as being true and complete. The Lender may conclusively rely on such certificate until the Lender receives notice in writing from the Borrower
to the contrary. 
 (c) The Lender shall have received certificates of the appropriate State agencies with respect to the
existence, qualification and good standing of the Borrower. 
 (d) The Lender shall have received counterparts (in such number as
may be requested by the Lender) of this Agreement signed on behalf of such party. 
 (e) The Lender shall have received a duly
executed Note, in substantially the form attached hereto as Exhibit B. 
 (f) The Lender shall have received duly executed
counterparts (in such number as may be requested by the Lender) of the Deposit Account Control Agreement in respect of the Cash Collateral Account. 
 (g) The Lender shall have received the opinions of Porter Hedges LLP, special counsel to the Borrower, in form reasonably acceptable to Lender. 

(h) The Lender shall have received appropriate judgment, tax, bankruptcy and Uniform Commercial Code search certificates reflecting no
prior judgment or taxes are outstanding or unpaid by the Borrower or Liens encumbering the Properties of the Borrower. 
 (i) The
Lender shall be reasonably satisfied that the Borrower has commenced the transfer to or establishment with the Lender, of the required deposit accounts of the Borrower and its Subsidiaries. 

(j) The Lender shall be reasonably satisfied that the Borrower has executed that certain Third Amendment to the Jefferies Credit
Agreement. 
 (k) The Lender shall have received such other documents as the Lender or its counsel may reasonably request.

 Section 6.02 Each Credit Event. The obligation of the Lender to issue, amend, renew or extend any Letter
of Credit, is subject to the satisfaction of the following conditions: 
 (a) At the time of and immediately after giving effect
to the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have occurred and be continuing. 
 (b) At the time of and immediately after giving effect to the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no event, development or condition that has or could
reasonably be expected to have a Material Adverse Effect shall have occurred. 
 (c) The representations and warranties of the
Borrower set forth in this Agreement and in the other Loan Documents shall be true and correct in all material respects on and as of the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, except to the extent
any such representations and warranties are expressly limited to an earlier date, in which case, on and as of the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, such representations and warranties shall
continue to be true and correct as of such specified earlier date. 
 (d) The issuance, amendment, renewal or extension of such
Letter of Credit, as applicable, would not conflict with, or cause the Lender to violate or exceed, any applicable Governmental Requirement, and no Change in Law shall have occurred, and no litigation shall be pending or threatened, which does or,
with respect to any threatened litigation, seeks to, enjoin, prohibit or restrain, the issuance, amendment, renewal, extension or repayment of any Letter of Credit or any participations therein or the consummation of the transactions contemplated by
this Agreement or any other Loan Document. 

  
 13 

 (e) The receipt by the Lender of a request for a Letter of Credit in accordance with
Section 2.02. 
 (f) Each issuance, amendment, renewal or extension of any Letter of Credit shall be deemed to
constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in Section 6.02(a) through (e). 
 ARTICLE VII 
 Representations and Warranties 

The Borrower represents and warrants to the Lender that: 
 Section 7.01 Organization; Powers. The Borrower is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power
and authority, and has all material governmental licenses, authorizations, consents and approvals necessary, to own its assets and to carry on its business as now conducted, and is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required, except where failure to have such power, authority, licenses, authorizations, consents, approvals and qualifications could not reasonably be expected to have a Material Adverse Effect. 

Section 7.02 Authority; Enforceability. The Transactions to be entered into by each Loan Party are within such Loan
Party’s corporate powers and have been duly authorized by all necessary corporate and, if required, stockholder action (including, without limitation, any action required to be taken by any class of directors of such Loan Party or any other
Person, whether interested or disinterested, in order to ensure the due authorization of the Transactions). Each Loan Document to which any Loan Party is a party has been duly executed and delivered by such Loan Party and constitutes a legal, valid
and binding obligation of such Loan Party enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles
of equity, regardless of whether considered in a proceeding in equity or at law. 
 Section 7.03 Approvals; No
Conflicts. The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any other third Person (including shareholders or any class of directors,
whether interested or disinterested, of any Loan Party or any other Person), nor is any such consent, approval, registration, filing or other action necessary for the validity or enforceability of any Loan Document or the consummation of the
transactions contemplated thereby, except such as have been obtained or made and are in full force and effect other than (i) the recording and filing of the Security Instruments as required by this Agreement and (ii) those third party
approvals or consents which, if not made or obtained, would not cause a Default hereunder, could not reasonably be expected to have a Material Adverse Effect or do not have an adverse effect on the enforceability of the Loan Documents, (b) will
not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Borrower or any Subsidiary or any order of any Governmental Authority, (c) will not violate or result in a default under any
indenture, agreement or other instrument binding upon the Borrower or any Subsidiary or its Properties, or give rise to a right thereunder to require any payment to be made by the Borrower or such Subsidiary and (d) will not result in the
creation or imposition of any Lien on any Property of the Borrower or any Subsidiary (other than the Liens created by the Loan Documents). 
 Section 7.04 Financial Condition; No Material Adverse Change. 

(a) The Borrower has heretofore furnished to the Lender its (i) audited consolidated balance sheet and statement of income,
stockholders equity and cash flows as of and for the fiscal year ended December 31, 2011, all reported on by a firm of independent public accountants acceptable to the Lender and (ii) unaudited consolidated balance sheet and statements of
income, stockholders equity and cash flows as of and for the fiscal quarter and the portion of the fiscal year ended September 30, 2012, certified by a Financial Officer. Such financial statements present fairly, in all material respects, the
financial position and results of operations and cash flows of the Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, 

  
 14 

 
subject to year-end audit adjustments and the absence of footnotes in the case of the unaudited quarterly financial statements. 

(b) Since December 31, 2011, (i) there has been no event, development or circumstance that has had or could reasonably be
expected to have a Material Adverse Effect and (ii) the business of the Borrower and its Subsidiaries has been conducted only in the ordinary course consistent with past business practices. 

Section 7.05 Litigation; ERISA Events. There are no actions, suits, investigations or proceedings by or before any
arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened in writing against or affecting the Borrower or any Subsidiary (i) as to which there is a reasonable possibility of an adverse determination
that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve any Loan Document or the Transactions. No ERISA Event has occurred or is reasonably
expected to occur. 
 Section 7.06 Compliance with the Laws and Agreements; No Defaults. Each of the Borrower
and each Subsidiary is in compliance with all Governmental Requirements (including without limitation, Environmental Laws) applicable to it or its Property and all agreements and other instruments binding upon it or its Property, and possesses all
licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. Neither the Borrower nor any Subsidiary is in default nor has any event or circumstance occurred which, but for the expiration of any applicable grace period or the giving of notice, or
both, would constitute a default or would require the Borrower or a Subsidiary to Redeem or make any offer to Redeem under any indenture, note, credit agreement or instrument pursuant to which any Material Indebtedness is outstanding or by which the
Borrower or any Subsidiary or any of their Properties is bound. No Default has occurred and is continuing. 

Section 7.07 Investment Company Act. Neither the Borrower nor any Subsidiary is an “investment company” or a
company “controlled” by an “investment company,” within the meaning of, or subject to regulation under, the Investment Company Act of 1940, as amended. 
 Section 7.08 Taxes. Each of the Borrower and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be
paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves in
accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect. The charges, accruals and reserves on the books of the Borrower and its Subsidiaries in respect of
Taxes and other governmental charges are, in the reasonable opinion of the Borrower, adequate. No Tax Lien relating to Taxes described in the first sentence of this Section 7.08 has been filed and, to the knowledge of the Borrower, no
claim is being asserted with respect to any such Tax or other such governmental charge. 
 Section 7.09 Disclosure;
No Material Misstatements. The Borrower has disclosed to the Lender all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or
in the aggregate, could reasonably be expected to result in a Material Adverse Effect. To the knowledge of Borrower, taken as a whole, none of the other reports, financial statements, certificates or other information furnished by or on behalf of
the Borrower or any Subsidiary to the Lender or any of its Affiliates in connection with the negotiation of this Agreement or any other Loan Document or delivered hereunder or under any other Loan Document (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that,
with respect to projected financial information, prospect information, geological and geophysical data and engineering projections, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be
reasonable at the time. 
 Section 7.10 Insurance. The Borrower has, and has caused all its Subsidiaries to
have, (a) all insurance policies sufficient for the compliance by each of them with all material Governmental Requirements and all material agreements and (b) insurance coverage in at least amounts and against such risk (including, without

  
 15 

 
limitation, public liability) that are usually insured against by companies similarly situated and engaged in the same or a similar business for the assets and operations of the Borrower and its
Subsidiaries. 
 Section 7.11 Location of Business and Offices. The Borrower’s jurisdiction of
organization is Delaware; the name of the Borrower as listed in the public records of Delaware is Par Petroleum Corporation; and the organizational identification number of the Borrower in Delaware is 4042296. 

Section 7.12 Use Letters of Credit. The Letters of Credit shall be used to backstop the existing letters of credit
issued by SEACOR’s Holdings Inc. It is further anticipated that that additional Letters of Credit will be issued in furtherance of Borrower’s and its Subsidiaries’ business. The Borrower and its Subsidiaries are not engaged
principally, or as one of its or their important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the
Board). No part of the proceeds of any Letter of Credit will be used for any purpose which violates the provisions of Regulations T, U or X of the Board. 
 Section 7.13 Solvency. Before and after giving effect to the Transactions, (a) the aggregate assets, at a fair valuation, of the Borrower and its Subsidiaries, taken as a whole,
will exceed the aggregate Debt of the Borrower on a consolidated basis, as the Debt becomes absolute and matures, (b) none of the Borrower nor any Subsidiary will have incurred or intended to incur, and will not believe that it will incur, Debt
beyond its ability to pay such Debt as such Debt becomes absolute and matures and (c) none of the Borrower nor any Subsidiary will have (nor will have any reason to believe that it will have thereafter) unreasonably small capital for the
conduct of its business. 
 ARTICLE VIII 
 Affirmative Covenants 
 Until the Commitments have expired or been
terminated and all fees payable hereunder and all other amounts payable under the Loan Documents shall have been paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, the
Borrower covenants and agrees with the Lender that: 
 Section 8.01 Financial Statements; Other Information.
The Borrower will furnish to the Lender the financial statements and other material required under the Letter of Credit Applications within the time periods required thereunder. The Borrower will furnish to the Lender copies of any financial
statements, notices of default of events of default, or any requested waivers furnished to the lenders under the Jeffries Credit Agreement, contemporaneously with the transmittals thereunder. Promptly following any request therefor, the Borrower
will furnish such other information regarding the operations, business affairs and financial condition of the Borrower or compliance with the terms of this Agreement or any other Loan Document, as the Lender may reasonably request. 

Section 8.02 Notices of Material Events. The Borrower will furnish to the Lender prompt written notice of the
following: 
 (a) the occurrence of any Default; 
 (b) the filing or commencement of, or the threat in writing of, any action, suit, proceeding, investigation or arbitration by or before any arbitrator or Governmental Authority against the Borrower or any
Affiliate thereof not previously disclosed in writing to the Lender or any material adverse development in any action, suit, proceeding, investigation or arbitration previously disclosed to the Lender that, if adversely determined, could reasonably
be expected to result in a Material Adverse Effect; 
 (c) the occurrence of any ERISA Event that, alone or together with any
other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect; and 

  
 16 

 (d) any other development that results in, or could reasonably be expected to result in, a
Material Adverse Effect. 
 Each notice delivered under this Section 8.02 shall be accompanied by a statement of a Responsible
Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 
 Section 8.03 Existence; Conduct of Business. The Borrower will, and will cause each Subsidiary to, do or cause to be done all things necessary to preserve, renew and keep in full force
and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business and maintain, if necessary, its qualification to do business in each jurisdiction in which the ownership of its
Properties requires such qualification, except where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 9.05. 
 Section 8.04 Payment of Obligations. The Borrower
will, and will cause each Subsidiary to, pay its obligations, including Tax liabilities of the Borrower and all of its Subsidiaries before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being
contested in good faith by appropriate proceedings and the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make payment pending such contest could not
reasonably be expected to result in a Material Adverse Effect or result in the seizure or levy of any material Property of the Borrower or any Subsidiary. 
 Section 8.05 Performance of Obligations under Loan Documents. The Borrower will do and perform every act and discharge all of the obligations to be performed and discharged by them
under the Loan Documents, including, without limitation, this Agreement, at the time or times and in the manner specified. 

Section 8.06 Books and Records; Inspection Rights. The Borrower will, and will cause each Subsidiary to, keep proper
books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities. The Borrower will, and will cause each Subsidiary to, permit any representatives designated by
the Lender, upon reasonable prior notice, to visit and inspect its Properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such
reasonable times during normal business hours and as often as reasonably requested on an individual and aggregate basis. 

Section 8.07 Compliance with Laws. The Borrower will, and will cause each Subsidiary to, comply with all laws
(including Environmental Laws), rules, regulations and orders of any Governmental Authority applicable to it or its Property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect. 
 Section 8.08 Further Assurances. The Borrower at its expense will promptly
execute and deliver to the Lender all such other documents, agreements and instruments reasonably requested by the Lender to comply with, cure any defects or accomplish the conditions precedent, covenants and agreements of the Borrower or any
Subsidiary, as the case may be, in the Loan Documents, or to further evidence and more fully describe the cash collateral intended as security for the Obligations, or to correct any omissions in this Agreement or the Security Instruments, or to
state more fully the obligations secured therein, or to perfect, protect or preserve any Liens created pursuant to this Agreement or any of the Security Instruments or the priority thereof, or to make any recordings, file any notices or obtain any
consents, all as may be reasonably necessary or appropriate, in the sole discretion of the Lender, in connection therewith. 

Section 8.09 ERISA Compliance. In addition to and without limiting the generality of Section 8.04, the
Borrower shall and shall cause each of its Subsidiaries to (a) comply in all material respects with all applicable provisions of ERISA and the regulations and published interpretations thereunder with respect to all employee benefit plans (as
defined in ERISA), (b) not take any action or fail to take action the result of which could be (i) a liability to the PBGC (other than liability for PBGC premiums) or (ii) a past due liability to any Multiemployer Plan, (c) not
participate in any prohibited transaction that could result in any material civil penalty 

  
 17 

 
under ERISA or any tax under the Code, (d) operate each employee benefit plan in such a manner that will not incur any material tax liability under Section 4980B of the Code or any
liability to any qualified beneficiary as defined in Section 4980B of the Code except to the extent such failure to comply could not reasonably be expected to have Material Adverse Effect and (e) furnish to the Lender upon request such
additional information about any employee benefit plan as may be reasonably requested by the Lender. 
 Section 8.10
Establishment and Maintenance of Accounts; Cash Collateral. 
 (a) On or before the Effective Date, the Borrower shall
establish and maintain a Cash Collateral Account with the Lender. The Borrower shall at all times maintain a balance in the Cash Collateral Account that achieves Complete Collateral Compliance; provided that, the Borrower shall make and maintain an
initial deposit into the Cash Collateral Account equal to at least $19,000,000 on the Effective Date and continuing until January 11, 2013 (unless the Borrower’s acquisition of equity interests of SEACOR Energy, Inc. does not close on
December 31, 2012, in which case the initial Letter of Credit to be issued to SEACOR Holdings, Inc. shall be returned to Lender for cancellation and the initial deposit of $19,000,000, less any fees or expenses, can thereafter be returned to
the Borrower so long as Complete Collateral Compliance exists). 
 (b) In connection with the cancellation, expiration,
termination of or reduction in value of a Letter of Credit, or after January 11, 2013 with respect to the initial deposit referenced in preceding clause (a), the Borrower may submit a request to withdraw collateral in the form attached hereto
as Exhibit C, requesting that the Lender approve a release of cash in the Cash Collateral Account securing such Letter of Credit, so long as Complete Collateral Compliance exists and would exist after giving effect to such release and in such event
Lender shall promptly approve such release. 
 ARTICLE IX 

Negative Covenants 
 Until the Commitments have expired or terminated and all fees payable hereunder and all other amounts payable under the Loan Documents have been paid in full and all Letters of Credit have expired or
terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lender that: 

Section 9.01 Debt. The Borrower will not, and will not permit any Subsidiary to, incur, create, assume or suffer to
exist any Debt, except: 
 (a) the Notes or other Obligations arising under the Loan Documents. 

(b) Debt arising under or permitted under the Jefferies Credit Agreement. 

Section 9.02 Liens. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to
exist any Lien on any of its Properties (now owned or hereafter acquired), except: 
 (a) Liens securing the payment of any
Obligations. 
 (b) Liens arising under or permitted under the Jefferies Credit Agreement. 

Section 9.03 Investments, Loans and Advances. The Borrower will not, and will not permit any Subsidiary to, make or
permit to remain outstanding any Investments in or to any Person, except as permitted under the Jefferies Credit Agreement. 

  
 18 

 Section 9.04 Nature of Business. The Borrower will not, and will not
permit any Subsidiary to, allow any material change to be made in the character of its business as an independent oil and gas exploration and production company with midstream, marketing and trading components. 

Section 9.05 Mergers, Etc. Neither the Borrower nor any Subsidiary will merge into or with or consolidate with any
other Person, or sell, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its Property to any other Person (any such transaction, a “consolidation”); provided
that (a) any Subsidiary may participate in a consolidation with the Borrower (provided that the Borrower shall be the continuing or surviving corporation) or any Subsidiary (provided that such Subsidiary shall be the continuing or
surviving Person) (b) any Subsidiary may be a party to a merger, consolidation or disposition permitted under the Jefferies Credit Agreement and (b) in the case of an Subsidiary merging into Borrower, no Default or Event of Default shall
result. 
 Section 9.06 Negative Pledge Agreements. The Borrower will not create, incur, assume or suffer to
exist any contract, agreement or understanding which in any way prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of its Cash Collateral Account in favor of the Lender; provided, however, that
the preceding restrictions will not apply to encumbrances or restrictions arising under or by reason of (a) this Agreement or the Security Instruments (b) the Jeffries Credit Agreement and (c) applicable law, rule, regulation or
order. 
 Section 9.07 Proceeds of Letters of Credit. No Loan Party has taken or will take any action which
might cause any of the Loan Documents to violate Regulations T, U or X or any rule or regulation thereunder, in each case as now in effect or as the same may hereinafter be in effect. If requested by the Lender, the Borrower will furnish to the
Lender a statement to the foregoing effect in conformity with the requirements of FR Form U-1 or such other form referred to in Regulations U, T or X of the Board, as the case may be. 

ARTICLE X 

Events of Default; Remedies 
 Section 10.01 Events of Default. One or more of the following events shall constitute an “Event of Default”: 

(a) the Borrower shall fail to pay any reimbursement obligation in respect of any LC Disbursement that is not otherwise reimbursed from
the Cash Collateral Account or any fee or other amount when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof, by acceleration or otherwise. 

(b) any representation or warranty made or deemed made by or on behalf of the Borrower or any Subsidiary in or in connection with any Loan
Document or any amendment or modification of any Loan Document or waiver under such Loan Document, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with any Loan Document or any amendment or
modification thereof or waiver thereunder, shall prove to have been incorrect when made or deemed made in any material respect. 

(c) the Borrower or any Subsidiary shall fail to observe or perform any covenant, condition or agreement contained in
Section 8.01, Section 8.02, Section 8.03 or ARTICLE IX. 
 (d) any Loan Party shall
fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in Section 10.01(a) or Section 10.01(c)) or any other Loan Document, and such failure shall continue
unremedied for a period of thirty (30) days after the earlier to occur of (i) notice thereof from the Lender to the Borrower (which notice will be given at the request of any Lender) or (ii) a Responsible Officer of the Borrower or
such Subsidiary otherwise becoming aware of such default. 
 (e) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Subsidiary or its debts, or of a 

  
 19 

 
substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or
decree approving or ordering any of the foregoing shall be entered. 
 (f) the Borrower or any Subsidiary shall
(i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect,
(ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in Section 10.01(e), (iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding,
(v) make a general assignment for the benefit of creditors, (vi) take any action for the purpose of effecting any of the foregoing or (vii) shall become unable, admit in writing its inability, or fail generally to pay its debts as
they become due. 
 (g) the Loan Documents after delivery thereof shall for any reason, except to the extent permitted by the
terms thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with their terms against the Borrower or shall be repudiated, or cease to create a valid and perfected Lien of the priority required thereby on any
of the collateral purported to be covered thereby, except to the extent permitted by the terms of this Agreement, or the Borrower or any Subsidiary or any of their Affiliates shall so state in writing. 

(h) any event shall have occurred that, in the opinion of the Lender, could reasonably be expected to result in a Material Adverse Effect.

 (i) the Borrower or any Subsidiary (A) fails to make any payment when due (whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise) in respect of any Debt under the Jefferies Credit Agreement or any Material Indebtedness, or (B) fails to observe or perform any other agreement or condition relating to any such Debt under the
Jefferies Credit Agreement or any Material Indebtedness, or any other event or default occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Debt to cause, with the giving of notice if required,
such Debt to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Debt to be made, prior to its stated maturity, or to become payable
or cash collateral in respect thereof to be demanded. 
 Section 10.02 Remedies. 

(a) In the case of an Event of Default other than one described in Section 10.01(e), or Section 10.01(f), at any
time thereafter during the continuance of such Event of Default, the Lender may, by notice to the Borrower, take either or both of the following actions, at the same or different times: (i) terminate the Commitments, and thereupon the
Commitments shall terminate immediately, and (ii) declare the Note to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon
all fees and other obligations of the Borrower accrued hereunder and under the Note and the other Loan Documents, shall become due and payable immediately, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration
or other notice of any kind, all of which are hereby waived by the Borrower; and in case of an Event of Default described in Section 10.01(e) or Section 10.01(f), the Commitments shall automatically terminate and the Note,
together with accrued interest thereon and all fees and the other obligations of the Borrower accrued hereunder and under the other Loan Documents, shall automatically become due and payable, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrower. 
 (b) In the case of the occurrence of an Event of Default, the Lender
will have all other rights and remedies available at law and equity. 
 (c) All proceeds realized from the liquidation or other
disposition of collateral or otherwise received after maturity of the Note, whether by acceleration or otherwise, shall be applied: first, to reimbursement of 

  
 20 

 
expenses and indemnities provided for in this Agreement and the Security Instruments; second, to fees; third, pro rata to Obligations referred to in Clause (b) of the
definition of Obligations owing to a Lender or an Affiliate of a Lender; fourth, to any other Obligations; fifth, any excess shall be paid to the Borrower or as otherwise required by any Governmental Requirement. 

ARTICLE XI 

Miscellaneous 
 Section 11.01 Notices. 
 (a) Except in the case of notices and
other communications expressly permitted to be given by telephone (and subject to Section 11.01(b)), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopy, as follows: 
 (i) if
to the Borrower, to it at Par Petroleum Corporation, 1301 McKinney, Suite 2025, Houston, Texas 77010, Attention John T. Young (Telecopy No. (713) 650-0502), with a copy to Porter Hedges LLP, 1000 Main Street, 36th Floor , Attention: James Cowen (Telecopy No. (713) 226-6249);
and 
 (ii) if to the Lender, to it at Compass Bank, 24 Greenway Plaza, Suite 1601, Houston, Texas, 77046,
Attention Eric Appel (Telecopy No. (713) 966-2388, with a copy to Duane Morris LLP, 1330 Post Oak Boulevard, Suite 800, Houston, Texas 77056, Attention Charles E. Harrell (Telecopy No. (713) 402-3901). 

(b) Notices and other communications to the Lender hereunder may be delivered or furnished by electronic communications pursuant to
procedures approved by the Lender. The Lender or the Borrower may, in their discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or communications. 
 (c) Any party hereto may change its
address or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to
have been given on the date of receipt. 
 Section 11.02 Waivers; Amendments. 

(a) No failure on the part of the Lender to exercise and no delay in exercising, and no course of dealing with respect to, any right,
power or privilege, or any abandonment or discontinuance of steps to enforce such right, power or privilege, under any of the Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege
under any of the Loan Documents preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies of the Lender hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or any other Loan Document or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall
be permitted by Section 11.02(b), and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the issuance of a Letter of Credit
shall not be construed as a waiver of any Default, regardless of whether the Lender may have had notice or knowledge of such Default at the time. 
 (b) Neither this Agreement nor any provision hereof nor any Security Instrument nor any provision thereof may be waived, amended or modified except pursuant to an agreement or agreements in writing
entered into by the Borrower and the Lender. 

  
 21 

 Section 11.03 Expenses, Indemnity; Damage Waiver. 

(a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Lender and its Affiliates, including, without
limitation, the reasonable fees, charges and disbursements of counsel and other outside consultants for the Lender, the reasonable travel, photocopy, mailing, courier, telephone and other similar expenses, and the cost of environmental audits and
surveys and appraisals, in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration (both before and after the execution hereof and including advice of counsel
to the Lender as to the rights and duties of the Lender with respect thereto) of this Agreement and the other Loan Documents and any amendments, modifications or waivers of or consents related to the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all costs, expenses, Taxes, assessments and other charges incurred by the Lender in connection with any filing, registration, recording or perfection of any security
interest contemplated by this Agreement or any Security Instrument or any other document referred to therein, (iii) all reasonable out-of-pocket expenses incurred by the Lender in connection with the issuance, amendment, renewal or extension of
any Letter of Credit or any demand for payment thereunder, (iv) all out-of-pocket expenses incurred by the Lender, including the reasonable fees, charges and disbursements of any outside counsel for the Lender, in connection with the
enforcement or protection of its rights in connection with this Agreement or any other Loan Document, including its rights under this Section 11.03, or in connection with the Letters of Credit issued hereunder, including, without
limitation, all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Letters of Credit. 
 (b) The Borrower shall indemnify the Lender and each Related Party of any of the foregoing persons (each such person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the reasonable fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out
of, in connection with, or as a result of (i) the execution or delivery of this Agreement or any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto or the parties to any
other Loan Document of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or by any other Loan Document, (ii) the failure of the Borrower to comply with the terms of any Loan
Document, including this Agreement, or with any Governmental Requirement, (iii) any inaccuracy of any representation or any breach of any warranty or covenant of the Borrower set forth in any of the Loan Documents or any instruments, documents
or certifications delivered in connection therewith, (iv) any loan or Letter of Credit or the use of the proceeds therefrom, including, without limitation, (A) any refusal by Lender to honor a demand for payment under a Letter of Credit if
the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit, or (B) the payment of a drawing under any Letter of Credit notwithstanding the non-compliance, non-delivery or other improper
presentation of the documents presented in connection therewith, (v) the operations of the business of the Borrower by the Borrower, (vi) any assertion that the Lender was not entitled to receive the proceeds received pursuant to the
Security Instruments, (vii) any Environmental Law applicable to the Borrower or any Subsidiary or any of their properties, including without limitation, the presence, generation, storage, release, threatened release, use, transport, disposal,
arrangement of disposal or treatment of oil, oil and gas wastes, solid wastes or hazardous substances on any of their properties, (viii) the breach or non-compliance by the Borrower or any Subsidiary with any Environmental Law applicable to the
Borrower or any Subsidiary, (ix) the past ownership by the Borrower or any Subsidiary of any of their properties or past activity on any of their properties which, though lawful and fully permissible at the time, could result in present
liability, (x) the presence, use, release, storage, treatment, disposal, generation, threatened release, transport, arrangement for transport or arrangement for disposal of oil, oil and gas wastes, solid wastes or hazardous substances on or at
any of the properties owned or operated by the Borrower or any Subsidiary or any actual or alleged presence or release of hazardous materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, (xi) any
environmental liability related in any way to the Borrower or any of its Subsidiaries, or (xii) any other environmental, health or safety condition in connection with the Loan Documents, or (xiii) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any indemnitee is a party thereto, and such Indemnity shall extend to each Indemnitee
notwithstanding the sole or concurrent negligence of every kind or character whatsoever, whether active or passive, whether an affirmative act or an omission, including 

  
 22 

 
without limitation, all types of negligent conduct identified in the restatement (second) of torts of one or more of the Indemnitees or by reason of strict liability imposed without fault on any
one or more of the Indemnitees; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (a) are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee, (b) relate to agreements, or obligations to which Borrower and its subsidiaries are not parties,
(c) relate to claims between or among any of the lenders, the agent or any of their shareholders, partners or members, or (d) relate to laws, rules or regulations affecting the lenders or the agent and not the borrower or the subsidiaries,
or (e) in respect of any property for any occurrence arising from the acts or omissions of the agent or any lender during the period after which such person, its successors or assigns shall have obtained possession of such property (whether by
foreclosure or deed in lieu of foreclosure, as mortgagee-in-possession or otherwise). 
 (c) To the extent permitted by
applicable law, the Borrower and the Indemnified Parties shall not assert, and hereby waive, any claim against each other, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the Transactions, any Letter of Credit or the use of the proceeds thereof. 

(d) All amounts due under this Section 11.03 shall be payable promptly after written demand therefor. 

Section 11.04 Successors and Assigns. 
 (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of Lender),
except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of lender), Participants (to the
extent provided in Section 11.04(c)) and, to the extent expressly contemplated hereby, the Related Parties of the Lender) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

(b) The Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment at the time owing to it) without the prior written consent of the Borrower. 
 (c) (i) The Lender may,
without the consent of the Borrower, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of the Lender’s rights and obligations under this Agreement (including all or a portion of
its Commitment owing to it); provided that (1) the Lender’s obligations under this Agreement shall remain unchanged, (2) the Lender shall remain solely responsible to the Borrower hereto for the performance of such obligations
and (3) the Borrower shall continue to deal solely and directly with the Lender in connection with the Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to which the Lender sells such a
participation shall provide that the Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the proviso to Section 11.02 that affects such Participant. In addition such agreement must provide that the
Participant be bound by the provisions of Section 11.03. Subject to Section 11.04(c)(ii), the Borrower agrees that each Participant shall be entitled to the benefits of Section 5.01 to the same extent as if it
were a Lender and had acquired its interest by assignment pursuant to Section 11.04(b). To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 12.08 as though it were a Lender,
provided such Participant agrees to be subject to Section 4.01(c) as though it were a Lender. 

  
 23 

 (ii) A Participant shall not be entitled to receive any greater payment
under Section 5.01 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior
written consent. 
 (d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under
this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
 Section 11.05
Survival; Revival; Reinstatement. 
 (a) All covenants, agreements, representations and warranties made by the
Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the
execution and delivery of this Agreement and the issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as any Letters of Credit shall be outstanding or any fee or any other amount payable under this Agreement is
outstanding and unpaid and so long as the Commitments have not expired or terminated. The provisions of Section 5.01 and Section 11.03 and ARTICLE XI shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the Obligations, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement, any other Loan Document or any provision hereof
or thereof. 
 (b) To the extent that any payments on the Obligations or proceeds of any collateral are subsequently invalidated,
declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law, common law or equitable cause, then to such extent, the Obligations so satisfied
shall be revived and continue as if such payment or proceeds had not been received and the Lender’s Liens, security interests, rights, powers and remedies under this Agreement and each Loan Document shall continue in full force and effect. In
such event, each Loan Document shall be automatically reinstated and the Borrower shall take such action as may be reasonably requested by the Lender to effect such reinstatement. 

Section 11.06 Counterparts; Integration; Effectiveness. 

(a) This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract. 
 (b) This Agreement, the other
Loan Documents and any separate letter agreements with respect to fees payable to the Lender constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof and thereof. This Agreement and the other Loan Documents represent the final agreement among the parties hereto and thereto and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. 
 (c)
Except as provided in Section 6.01(a), this Agreement shall become effective when it shall have been executed by the Lender and when the Lender shall have received counterparts hereof which, when taken together, bear the signatures of
each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy
shall be effective as delivery of a manually executed counterpart of this Agreement. 

  
 24 

 Section 11.07 Severability. Any provision of this Agreement or any other
Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 

Section 11.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, the Lender and each of
its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other
obligations at any time owing by the Lender or Affiliate to or for the credit or the account of the Borrower against any of and all the obligations of the Borrower owed to such Lender now or hereafter existing under this Agreement or any other Loan
Document, irrespective of whether or not the Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations may be unmatured. The rights of the Lender under this Section 11.08 are in
addition to other rights and remedies (including other rights of setoff) which such Lender or its Affiliates may have. 

Section 11.09 Governing Law; Jurisdiction; Consent to Service of Process. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Texas. Any legal action or proceeding with respect to the Loan Documents shall be brought in the courts of the State of Texas sitting in Harris County and of the United States District Court of
the Southern District of Texas, and, by execution and delivery of this Agreement, each party hereby accepts for itself and (to the extent permitted by law) in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid
courts. Each party hereby irrevocably waives any objection, including, without limitation, any objection to the laying of venue or based on the grounds of forum non conveniens, which it may now or hereafter have to the bringing of any such action or
proceeding in such respective jurisdictions. This submission to jurisdiction is non-exclusive and does not preclude a party from obtaining jurisdiction over another party in any court otherwise having jurisdiction. Each party irrevocably consents to
the service of process of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to it at the address specified in Section 11.01 or such other
address as is specified pursuant to Section 11.01 (or its assignment and assumption), such service to become effective thirty (30) days after such mailing. Nothing herein shall affect the right of a party or any holder of a note to
serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against another party in any other jurisdiction. Each party hereby (i) irrevocably and unconditionally waives, to the fullest extent
permitted by law, trial by jury in any legal action or proceeding relating to this Agreement or any other Loan Document and for any counterclaim therein; (ii) irrevocably waives, to the maximum extent not prohibited by law, any right it may
have to claim or recover in any such litigation any special, exemplary, punitive or consequential damages, or damages other than, or in addition to, actual damages; (iii) certifies that no party hereto nor any representative or agent of counsel
for any party hereto has represented, expressly or otherwise, or implied that such party would not, in the event of litigation, seek to enforce the foregoing waivers, and (iv) acknowledges that it has been induced to enter into this Agreement,
the Loan Documents and the transactions contemplated hereby and thereby by, among other things, the mutual waivers and certifications contained in this Section 11.09. 

Section 11.10 Headings. Article and Section headings and the Table of Contents used herein are for convenience of
reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
 Section 11.11 No Third Party Beneficiaries. This Agreement, the other Loan Documents, and the agreement of the Lender to issue, amend, renew or extend Letters of Credit hereunder are
solely for the benefit of the Borrower, and no other Person shall have any rights, claims, remedies or privileges hereunder or under any other Loan Document against the Lender for any reason whatsoever. There are no third party beneficiaries.

 Section 11.12 US Patriot Act Notice. The Lender hereby notifies the Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes
the name and address of the Borrower and other information that will allow the Lender to identify the Borrower in accordance with the Patriot Act. 

  
 25 

 Section 11.13 Interest Rate Limitation. Each provision in this Agreement
and each other Loan Document is expressly limited so that in no event whatsoever shall the amount paid, or otherwise agreed to be paid, by the Borrower for the use, forbearance or detention of the money to be loaned under this Agreement or any other
Loan Document or otherwise (including any sums paid as required by any covenant or obligation contained herein or in any other Loan Document which is for the use, forbearance or detention of such money), exceed that amount of money which would cause
the effective rate of interest thereon to exceed the Highest Lawful Rate, and all amounts owed under this Agreement and each other Loan Document shall be held to be subject to reduction to the effect that such amounts so paid or agreed to be paid
which are for the use, forbearance or detention of money under this Agreement or such Loan Document shall in no event exceed that amount of money which would cause the effective rate of interest thereon to exceed the Highest Lawful Rate. To the
extent that the Highest Lawful Rate applicable to the Lender is at any time determined by Texas law, such rate shall be the “weekly ceiling” described in the Texas Finance Code, Chapter 303, as amended; provided, however, to
the extent permitted by such Finance Code, the Lender from time to time by notice to Borrower may revise the aforesaid election of such interest rate ceiling as such ceiling affects the then-current or future balances of the LC Disbursements.
Notwithstanding any provision in this Agreement or any other Loan Document to the contrary, if the maturity of the obligations in respect of the other Loan Documents are accelerated for any reason, or in the event of prepayment of all or any portion
of the obligations in respect of the other Loan Documents by the Borrower or in any other event, earned interest on the LC Disbursements and such other obligations of the Borrower may never exceed the maximum amount permitted by applicable law, and
any unearned interest otherwise payable under the obligations in respect of the other Loan Documents that is in excess of the maximum amount permitted by applicable law shall be cancelled automatically as of the date of such acceleration or
prepayment or other such event and, if theretofore paid, shall be credited on the principal thereof or, if paid in full, refunded to the Borrower. In determining whether or not the interest paid or payable, under any specific contingency, exceeds
the Highest Lawful Rate, the Borrower and the Lender shall, to the maximum extent permitted by applicable law, amortize, prorate, allocate and spread, in equal parts during the period of the actual term of this Agreement, all interest at any time
contracted for, charged, received or reserved in connection with the Loan Documents. 
 [REMAINDER OF PAGE IS INTENTIONALLY
BLANK] 

  
 26 

 The parties hereto have caused this Agreement to be duly executed as of the day and year
first above written. 
  

			
	BORROWER:
	
	PAR PETROLEUM CORPORATION,
	a Delaware corporation
		
	By:	 	/s/ R. Seth Bullock
	Name:	 	R. Seth Bullock
	Title:	 	Chief Financial Officer
	
	LENDER:
	
	COMPASS BANK
		
	By:	 	/s/ Eric Appel
	Name:	 	Eric Appel
	Title:	 	Senior Vice President

  
 27EX-10.8

 EXHIBIT 10.8 
 ROSENTHAL & ROSENTHAL, INC. 
 Financing Agreement 

AGREEMENT dated December 28, 2012 between Meade Instruments Corp. (“Borrower”), a Corporation duly organized and
presently existing in good standing under the laws of the State of Delaware whose chief executive office is at 27 Hubble, Irvine, CA 92618-4209, and ROSENTHAL & ROSENTHAL, INC. (“Lender”), a New York corporation with an
address at 1370 Broadway, New York NY 10018. 
 Borrower desires to obtain loans and other financial accommodations from Lender
on a revolving basis upon the security of the Collateral (as herein defined). Now, therefore, Borrower and Lender agree as follows: 
  

	1.	DEFINITIONS 

 As used in
this Agreement, these terms shall have the following meanings which shall be applicable to both the singular and plural forms of such terms. 
 1.1.        “Account Debtor” shall mean the account debtor with respect to a Receivable and any other person who is obligated on such Receivable.

 1.2.        “Affiliate” of a party shall mean any entity controlling,
controlled by, or under common control with, the party, and the term “controlling” and such variations thereof shall mean ownership of a majority of the voting power of a party. 

1.3.        “Business Day” shall mean a day on which Lender and major banks in
New York City are open for the regular transaction of business. 

1.4.        “Change in Control” shall mean a sale of all or substantially all
Borrower’s capital stock to a third party. 
 1.5.        “Closing
Date” shall mean the date set forth in the first paragraph of this Agreement. 

1.6.        “Collateral” shall have the meaning given in Section 4.1 hereof.

 1.7.        “Collateral Documents” shall mean any and all security
agreements, deposit account control agreements, mortgages and other documents executed and delivered to Lender to secure the Obligations. 
 1.8.        “Default” shall have the meaning provided in Section 8.1 hereof. 

1.9.        “Effective Rate” shall have the meaning provided in Section 3.1
hereof. 
 1.10.        “Eligible Receivables” shall mean Receivables
created by Borrower in the ordinary course of its business which have been validly assigned to Lender and in which Lender holds a perfected security interest pursuant to the terms hereof ranking prior to and free and clear of all interests, claims,
and rights of others and which are and at all times shall continue to be acceptable to Lender in all other respects. Standards of eligibility may be fixed and revised from time to time solely by Lender in its exclusive judgment. In determining
eligibility Lender may, but need not, rely on ageings, reports and schedules of Receivables furnished by Borrower, but reliance thereon by Lender from time to time shall not be deemed to limit Lender’s right to revise standards of eligibility
at any time. In general, a Receivable shall not be deemed eligible unless the Receivable complies with the Minimum Receivable 

 
Eligibility Requirements and the Account Debtor on such Receivable is and at all times continues to be acceptable to Lender and unless each Receivable complies in all respects with the
representations, covenants and warranties hereinafter set forth and in the event such Receivable arises from the sale of goods meet all standards imposed by any governmental agency or authority. 

1.11.        “Equipment” shall mean equipment as defined in Article 9 of the UCC.

 1.12.        “ERISA” shall mean the Employee Retirement Income
Security Act. 
 1.13.        “Inventory” shall mean inventory as
defined in Article 9 of the UCC. 
 1.14.        “Lease” and
“Leased Premises” shall have the meanings given in Section 8.1 hereof. 

1.15.        “Loan Account” shall mean the Loan Account as described in
Section 2.2 hereof. 
 1.16.        “Loan Availability” shall have
the meaning given in Section 2.1 hereof. 
 1.17.        “Loan
Documents” shall mean, collectively, this Agreement, the Collateral Documents, and each guaranty, certificate, agreement, or document executed by Borrower or any of its guarantors and delivered to Lender in connection with the foregoing.

 1.18.        “Margin” shall mean 4 percent per annum. 

1.19.        “Maximum Credit Facility” shall mean $3,000,000. 

1.20.        “Maximum Rate” shall have the meaning provided in Section 9.2
hereof. 
 1.21.        “Minimum Receivable Eligibility Requirements”
shall have the meaning given in Section 2.3 hereof. 
 1.22.        “Net
Amount of Eligible Receivables” shall mean the gross amount of Eligible Receivables less sales, excise or similar taxes, returns, discounts, claims, credits and allowances of any nature at any time issued, owing, granted, outstanding or
claimed, and less (without duplication) all amounts payable by any Account Debtor on Eligible Receivables if any Eligible Receivable of such Account Debtor is unpaid more than 90 days following its invoice date. 

1.23.        “Obligations” shall mean all obligations, liabilities and
indebtedness of Borrower to Lender or an Affiliate of Lender, however evidenced, arising under this Agreement, any other Loan Document (whether by reason of extension of credit, guaranty, indemnity or otherwise), or under any other or supplemental
financing provided to Borrower by Lender or an Affiliate of Lender, or independent hereof or thereof, whether now existing or incurred from time to time hereafter and whether before or after termination hereof, absolute or contingent, joint or
several, matured or unmatured, direct or indirect, primary or secondary, liquidated or unliquidated, and whether arising directly or acquired from others (whether acquired outright, by assignment unconditionally or as collateral security from
another and including participations or interest of Lender in obligations of Borrower to others), and including (without limitation) all of Lender’s charges, commissions, fees, interest, expenses, costs and attorneys’ fees chargeable to
Borrower in connection therewith. 
 1.24.        “Over-advance” shall
mean any portion of all loans and advances made hereunder which on any day exceeds the Loan Availability. 

1.25.        “Permitted Liens” means the liens of Lender granted under the Loan
Documents and any other liens, if any, described on the attached Exhibit A. 

1.26.        “Person” shall mean any person, firm, corporation, partnership,
limited liability company, association, company, trust, estate, custodian, nominee or other individual or entity. 

  
 2 

 1.27.        “Prime Rate” shall
mean the prime rate from time to time publicly announced in New York City by JPMorgan Chase Bank. 

1.28.        “Receivables” shall mean all obligations to Borrower for the payment
of money arising out of the sale of goods by Borrower, now existing or hereafter arising, however evidenced, including all accounts, contract rights, general intangibles, documents, chattel paper and instruments (as each of such terms is defined in
the UCC). 
 1.29.        “Receivable Availability” shall have the
meaning specified in Section 2.1 hereof. 
 1.30.        “Restricted
Subsidiary” or “Restricted Subsidiaries” means any or all of MTSC Holdings, Inc., MC Holdings, Inc., Coronado Instruments, Inc., and Simmons Outdoor Corporation. 

1.31.        “SEC” shall mean the United States Securities and Exchange
Commission. 
 1.32.        “Subsidiaries” shall mean of Borrower’s
subsidiaries set forth on Exhibit D hereto. 
 1.33.        “UCC” shall
mean the Uniform Commercial Code as in effect from time to time in the State of New York, provided, however, that in the event by reason of mandatory provisions of law, any of the attachment, perfection, or priority of Lender’s security
interest in any of the Collateral is governed by the Uniform Commercial Code as in effect in any jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction
for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such provisions. 
  

	2.	LOANS; ELIGIBILITY OF RECEIVABLES 

2.1.        Lender shall, in its commercially reasonable discretion, make loans to Borrower from
time to time, at Borrower’s request, which loans in the aggregate shall not exceed the lesser of (A) the Maximum Credit Facility; or (B) the Loan Availability, which means the Receivable Availability equal to (i) seventy
percent (70%) of the Net Amount of Eligible Receivables arising from sales made to customers located in the United States of America and Canada and (ii) 50% of the Net Amount of Eligible Receivables arising from sales made to customers
outside the United States of America and Canada, provided that in the case of (B)(ii) such sales are subject to a credit insurance policy satisfactory to us and issued by an insurer satisfactory to us, minus, in the case of (B) (i) and
(ii) such reserves as Lender may deem, in its sole discretion, to be necessary from time to time. 

2.2.        The making of any loan in excess of the percentages set forth above shall not be
deemed to modify such percentages or create any obligation to make any further such loan. All loans (and all other amounts chargeable to Borrower under this Agreement or any supplement hereto) shall be charged to a Loan Account in Borrower’s
name on Lender’s books. Lender shall render to Borrower each month a statement of the Loan Account (and all credits and charges thereto) which, except for manifest error, shall be considered correct and accepted by Borrower and conclusively
binding upon Borrower as an account stated except to the extent that Lender receives a written notice by registered mail of Borrower’s exceptions within 30 days after such statement has been rendered by ordinary mail to Borrower. 

2.3.        A Receivable meets the Minimum Receivable Eligibility Requirements if 1) the
Receivable arose from bona fide completed transactions and has not remained unpaid for more than the number of days after the invoice date set forth in Section 1.22; 2) the amount of the Receivable reported to Lender is absolutely owing to
Borrower and payment is not conditional or contingent, (such as consignments, guaranteed sales or right of return or other similar terms); 3) the Account Debtor’s chief executive office or principal place of business is located in the United
States or Canada; 4) the Receivable did not arise from progress billings, retainages or bill and hold sales; 5) there are no contra relationships, 

  
 3 

 
setoffs, counterclaims or disputes existing with respect thereto and there are no other facts existing or threatened which would impair or delay the collectibility of all or any portion thereof;
6) the goods giving rise thereto were not at the time of the sale subject to any liens except those permitted in this Agreement; 7) the Account Debtor is not an Affiliate of Borrower; 8) there has been compliance with the Assignment of Claims Act or
similar State or local law, if applicable, if the Account Debtor is the United States or any domestic governmental unit; 9) Borrower has delivered to Lender such documents as Lender may have requested pursuant to Section 4.2 hereof in
connection with such Receivable and Lender shall have received verifications of such Receivable, satisfactory to it, if sent to the Account Debtor or any other obligors or any bailees; 10) there are no facts existing or threatened which might result
in any adverse change in the Account Debtor’s financial condition; 11) not more than 50% of the Receivables of the Account Debtor or its Affiliates owed to Borrower are more than 90 days from invoice date; 12) the total indebtedness to Borrower
of the Account Debtor does not exceed the amount of any customer credit limits as established from time to time on notice to Borrower; 13) the Account Debtor is deemed creditworthy at all times by Lender; and 14) all representations and warranties
in this Agreement or any other Loan Document with respect to such Receivable are true and correct. 
  

	3.	LENDER’S CHARGES 

3.1.        Borrower agrees to pay to Lender each month interest (computed on the basis of the
actual number of days elapsed over a year of 360 days) (a) on that portion of the average daily balances in the Loan Account during the preceding month that does not exceed the Loan Availability at a rate per annum (the “Effective
Rate”) equal to the Prime Rate plus the Margin and (b) on the amount of Over-advances, if any, at a rate of 3% per annum in excess of the Effective Rate. Any change in the effective interest rates due to a change in the Prime Rate
shall take effect on the date of such change in the Prime Rate provided, that, with respect to Lender’s charges, no decrease in the Prime Rate below 4% per annum shall be given any effect. 

3.2.        Borrower shall pay to Lender a facility fee payable on the Closing Date in the amount
of 1% of the Maximum Credit Facility and on the anniversary of such date in each succeeding year, in the amount of 1% of the Maximum Credit Facility. 
 3.3.        Borrower shall pay to Lender monthly an administration fee of $1,000 payable in arrears on the first day of each month with respect to the prior month
for the stated term of this Agreement. 
 3.4.        A statement of all of Lender’s
charges shall accompany each monthly statement of the Loan Account and such charges shall be payable by Borrower within 5 days after receipt of such statement. In lieu of the separate payment of charges, Lender at its option, shall have the right to
debit the amount of such charges to Borrower’s Loan Account, which charges shall be deemed to be first paid by amounts subsequently credited to the Loan Account. Borrower agrees that the minimum charges payable by Borrower to Lender each month
under Section 3.1 hereof shall be $3,000. As more fully provided in Section 9.2 hereof, in no event shall the interest charges hereunder exceed the Maximum Rate. 
  

	4.	SECURITY INTEREST IN COLLATERAL 

 4.1.        As security for the prompt performance, observance and payment in full of all of the Obligations, Borrower grants to Lender a security interest in, a
continuing lien upon and a right of setoff against, and Borrower hereby assigns, transfers, pledges and sets over to Lender (collectively, including 

  
 4 

 
any other assets of Borrower in which Lender may be granted a security interest under any Loan Document, the “Collateral”): (i) all Receivables (whether or not Eligible
Receivables and whether or not specifically listed on any schedules, assignments or reports furnished to Lender) (ii) all of Borrower’s property, and the proceeds thereof, now or hereafter held or received by or in transit to Lender or
held by others for Lender’s account, including any and all deposits, balances, sums and credits of Borrower with, and any and all claims of Borrower against, Lender, at any time existing, (iii) all credit insurance policies, and all other
insurance and all guarantees relating to the Receivables or other Collateral, (iv) all books, records and other general intangibles evidencing or relating to Receivables or other Collateral and the computer hardware and software and media
containing such books and records; all deposits, or other security for the obligation of any person under or relating to Receivables, all of the Borrower’s rights and remedies of whatever kind or nature it may hold or acquire for the purpose of
securing or enforcing Receivables; all right, title and interest of the Borrower in and to all goods relating to, or which by sale have resulted in, Receivables, including goods returned by or reclaimed or repossessed from Account Debtors and all
goods described in copies of invoices delivered by Borrower to Lender; all rights of stoppage in transit, replevin, repossession and reclamation and all other rights and remedies of an unpaid vendor or lienor, and all proceeds of any Letter of
Credit naming Borrower as beneficiary and which provides for, guarantees or assures the payment of any Receivable; (v) all accounts, instruments, chattel paper, documents, general intangibles, deposit accounts, investment property and letter of
credit rights, whether or not arising out of the sale of goods or rendition of services, and including choses in action, causes of action, tax refunds (and claims), and reversions from terminated pension plans; (vi) all of Borrower’s
Inventory and Equipment; and (vii) all proceeds of such Collateral, in any form, including cash, non-cash items, checks, notes, drafts and other instruments for the payment of money. Such security interest in favor of Lender shall continue
during the term of this Agreement and until indefeasible payment in full of all Obligations, whether or not this Agreement shall have sooner terminated. 
 4.2.        At Lender’s request, Borrower will provide Lender with confirmatory assignment schedules in form satisfactory to Lender, copies of customers’
invoices, evidence of shipment or delivery, and such further information as Lender may reasonably require. Borrower will take any and all steps and observe such formalities as Lender may reasonably request from time to time to create and maintain in
Lender’s favor a valid and first lien upon, security interest in and pledge of all of Borrower’s Receivables and all other Collateral, including executing all documents that may be reasonably requested by Lender to maintain such security
interest in and pledge of the Collateral. Borrower hereby authorizes Lender to file any Financing Statements under the UCC, and renewals and amendments thereof, naming Borrower as debtor, that are necessary to perfect and maintain the perfection of
Lender’s security interest in the Collateral. Borrower agrees to take all steps necessary to allow Lender to comply with any Federal or state statute, which, in Lender’s judgment, if not complied with, might afford to any Person an
interest in the Collateral that would be superior to Lender’s security interest in the Collateral. 
  

	5.	CUSTODY AND INSPECTION OF COLLATERAL AND RECORDS; 

 COLLECTION AND HANDLING OF COLLATERAL 

5.1.        Borrower shall instruct all customers to remit payments on Receivables to a lockbox
controlled by Lender and maintained at Borrower’s expense. Borrower will, at its own expense and on Lender’s behalf, collect as Lender’s property and in trust for Lender all payments and prepayments on Receivables which for any reason
are not remitted by customers to the lockbox, and shall not commingle such collections with Borrower’s own funds. As to all moneys so collected, including all prepayments by customers, Borrower shall within two (2) Business Days of
receipt, remit all such collections to Lender in the form received by depositing such collections into an account of Lender specified by Lender and 

  
 5 

 
maintained at Borrower’s expense. All amounts collected on Receivables when received by Lender shall be credited to Borrower’s Loan Account, adding 1 Business Day for collection and
clearance of remittances by wire and 3 Business Days for collection and clearance of all other remittances. Such credits shall be conditional upon final payment to Lender. Nothing contained in this Section 5.1, or otherwise in this Agreement,
shall be deemed to limit Lender’s rights and powers pursuant to Section 7 of this Agreement. 

5.2.        All records, ledger sheets, correspondence, contracts, documentation and computer
hardware and software and media relating to or evidencing Receivables or containing information relating to the Receivables shall, until delivered to Lender or removed by Lender from Borrower’s premises, be kept on Borrower’s premises,
without cost to Lender, in appropriate containers in safe places. Lender shall at all times have full access to and the right to examine and make copies of Borrower’s books and records, and shall have full access to Borrower’s computer
information systems, to confirm and verify all Receivables assigned to Lender and to do whatever else Lender deems necessary to protect its interest. Lender may at any time after the occurrence of an Event of Default remove from Borrower’s
premises, or require Borrower to deliver any contracts, documentation, files and records relating to Receivables, and any computer hardware, software and media containing information relating to the Receivables or Lender may, without cost or expense
to Lender, use such of Borrower’s personnel, supplies, computer information systems and space at Borrower’s places of business as may be necessary for collection of Receivables. 

5.3.        Borrower will promptly upon obtaining knowledge thereof report to Lender all
reclaimed, repossessed or returned merchandise, Account Debtor claims and any other matter affecting the value, enforceability or collectibility of Receivables. All claims and disputes relating to Receivables are to be promptly adjusted by Borrower
with the prior approval of Lender and within a reasonable time, at Borrower’s own cost and expense. Lender may, at its option, settle, adjust or compromise claims and disputes relating to Receivables which are not adjusted by Borrower within a
reasonable time. Following the occurrence of a Default, Lender may, at its option, revoke Borrower’s authority to settle or adjust disputes or to further communicate with Account Debtors. 

5.4.        Borrower shall reimburse Lender on demand for all reasonable costs of collection
incurred by Lender in efforts to enforce payment of Receivables, recovery of or realization upon any other Collateral, including attorneys’ fees and the fees and commissions of collection agencies. All and any reasonable fees, costs and
expenses, of whatever kind and nature, including taxes of any kind, which Lender may incur in filing public notices, obtaining appraisals of the Collateral, and the reasonable charges of any attorney whom Lender may engage in preparing and filing
documents, making title or lien examinations and rendering opinion letters, as well as all fees, costs and expenses incurred by Lender (including all attorneys’ fees and including Lender’s out of pocket expenses in conducting periodic
field examinations of Borrower and the Collateral plus Lender’s prevailing per diem charge for each of its examiners in the field and office, now $850 per person per day), in administering this Agreement, protecting, preserving, enforcing or
foreclosing any security interests or rights granted to Lender hereunder, whether through judicial proceedings or otherwise (including advertising costs), enforcing or collecting the Receivables, recovery of or realization upon any other Collateral,
or in defending or prosecuting any actions or proceedings arising out of or related to its transactions with Borrower, including actions or proceedings that may involve any person asserting a priority or claim with respect to the Collateral, shall
be borne and paid for by Borrower on demand, shall constitute part of the Obligations and may at Lender’s option be charged to Borrower’s Loan Account. Borrower’s obligations under this section shall survive termination of this
Agreement for any reason. 

  
 6 

	6.	REPRESENTATIONS, COVENANTS AND WARRANTIES 

 As an inducement to Lender to enter into this Agreement, Borrower represents, covenants and warrants (which shall survive the execution and delivery of this Agreement) that: 

6.1.        Borrower is and at all times during the term of this Agreement shall be a Corporation
duly organized and presently existing in good standing under the laws of the State of Delaware and is and at all times during the term of this Agreement shall be duly qualified and existing in good standing in every other state in which the nature
of Borrower’s business requires it to be qualified, except where the failure to be so qualified would not have a material adverse effect on Borrower. Borrower is not aware, and will upon becoming aware promptly notify Lender, of any person
organizing under its name in another state. All Subsidiaries are listed on Exhibit D. Borrower shall use commercially reasonable efforts to dissolve the Restricted Subsidiaries within 60 days of the date hereof. 

6.2.        The execution, delivery and performance of this Agreement are within the corporate
powers of Borrower, have been duly authorized by appropriate corporate action and are not in contravention of the terms of Borrower’s charter or by-laws or of any indenture, agreement or undertaking to which Borrower is a party or by which it
may be bound. Borrower is not now the subject of any pending governmental investigation or proceeding or of any insolvency proceeding. No receiver or custodian has been appointed for any of the property of Borrower. No consent, approval or
authorization of any person, including stockholders of Borrower or any governmental or regulatory authority, that has not been obtained, is required in connection with the execution, delivery and performance by Borrower of this Agreement. Borrower
warrants that all financial statements and other reports provided to Lender prior to the Closing Date are true and correct in all material respects. 
 6.3.        There are no pending suits, Federal or state tax liens, or judgment liens against Borrower or affecting its assets, except for Permitted Liens. No
assets of Borrower are subject to any liens or encumbrances except for Permitted Liens. Borrower has no employee benefit plans subject to ERISA that have accumulated funding deficiencies or liquidity shortfalls as defined and calculated under ERISA
or with respect to which Borrower presently has withdrawal liability. 

6.4.        Borrower is and shall be, with respect to all Inventory, Equipment, intellectual
property collateral, cash collateral and other Collateral, the owner thereof free from any lien, security interest or encumbrance of any kind, except for Permitted Liens. No Receivable or any other Collateral has been or shall hereafter be assigned,
pledged or transferred to any person other than the Lender or in any way encumbered or subject to a security interest except to Lender, and except for Permitted Liens, and Borrower shall defend the same against the claims of all persons. 

6.5.        Borrower’s books and records relating to the Receivables are maintained at the
office referred to below. Except as otherwise stated below, the principal executive office of Borrower is located at such address and has been so located on a continuous basis for not less than six months. Borrower shall not change such location
without providing lender with thirty (30) days’ prior notice thereof and provided such location shall continue to be in the United States of America, and, upon making any such change, Lender shall be authorized to file any additional
financing statements or other documents or notices which may be necessary under the UCC or other applicable law and Borrower shall execute and deliver to Lender any such documents requiring Borrower’s signature, failing which Lender shall be
authorized to sign such documents on behalf of Borrower as Borrower’s attorney-in-fact. The listing of offices on Schedule 6.5 hereto represents all of Borrower’s places of business. Borrower shall notify Lender of the existence of any
additional places of business within 5 Business Days after any such place of business is established. 

  
 7 

 6.6.        All loans and advances requested by
Borrower under this Agreement shall be used for the general corporate and business purposes of Borrower and in no event shall Borrower permit the proceeds of any loans or advances to be utilized by a Restricted Subsidiary or request Lender to remit
a loan or advance to an account of Borrower that is used for the specific purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Federal Reserve Board) or to extend credit to others for the purpose of purchasing or
carrying any such margin stock in contravention of Regulation T, U or X of the Federal Reserve Board; or to the extent that any loans and advances requested by Borrower under this Agreement shall be used for paying wages of the employees of
Borrower, Borrower hereby represents and warrants that it shall withhold pay over to the applicable tax authorities any amount thereof as it shall be so required by applicable law. 

6.7.        Borrower shall maintain its shipping forms, invoices and other related documents in a
form reasonably satisfactory to Lender and shall maintain its books, records and accounts in accordance with sound accounting practice. Borrower shall furnish to Lender accounts receivable agings, accounts receivable roll forward reports (in the
form attached hereto as Exhibit B) and reconciliations of accounts receivable collateral and the loan balance on the monthly statements provided by Lender to Borrower’s records and inventory designations, monthly, not later than ten
(10) days from the end of each month, covering the previous month. Borrower shall furnish to Lender such other information regarding the business affairs and financial condition of Borrower as Lender may, from time to time, reasonably request,
including (a) financial statements as at the end of and for each fiscal year of Borrower audited by independent Certified Public Accountants reasonably acceptable to Lender, as soon as practical and in any event within 90 days after the end of
each such fiscal year, and (b) unaudited financial statements and other information included in filings made with the SEC, as at the end of, and for each of the first three quarters of each fiscal year of Borrower, as soon as practical and in
any event within 45 days after the end of each such quarter, and concurrently with such financial statements a written statement signed by the Chief Financial Officer of Borrower (“CFO”) to the effect that, (i) CFO has not
obtained any knowledge of the existence of any Default, or (ii) if such CFO has obtained from such examination any such knowledge, such CFO shall disclose in such written statement the Default and the nature thereof. All such statements and
information shall fairly present in all material respects, the financial condition of Borrower, and the results of its operations as of the dates and for the periods, for which the same are furnished and contain such detail and scope as Lender may
reasonably require including a balance sheet, a statement of income, a statement of cash flows and notes. 

6.8.        Borrower shall duly pay and discharge all taxes, assessments, contributions and
governmental charges upon or against it or its properties or assets prior to the date on which penalties attach thereto. Borrower shall be liable for any tax (excluding a tax imposed on the overall net income of Lender) imposed upon any transaction
under this Agreement or giving rise to the Receivables or which Lender may be required to withhold or pay for any reason and Borrower agrees to indemnify and hold Lender harmless with respect thereto, and to repay Lender on demand the amount
thereof. Until paid by Borrower, Borrower’s liability under this paragraph shall be added to the Obligations secured hereunder, and may at Lender’s option be charged to Borrower’s Loan Account but shall nonetheless be independent
hereof and continue notwithstanding any termination hereof. 
 6.9.        With respect
to each Receivable, Borrower hereby represents and warrants that: each Receivable represents a valid and legally enforceable indebtedness based upon an actual and bona fide 

  
 8 

 
sale and delivery of property in the ordinary course of Borrower’s business which has been completed and finally accepted by the Account Debtor and for which the Account Debtor is
unconditionally liable to make payment of the amount stated in each invoice, document or instrument evidencing the Receivable in accordance with the terms thereof, without any offset, defense or counterclaim; to the Borrower’s knowledge at the
time of billing, each Receivable will be paid in full at maturity; no Receivables have arisen from sales on bill and hold terms; all statements made and all unpaid balances appearing in any invoices, documents, instruments and statements of account
describing or evidencing the Receivables are true and correct and are in all respects what they purport to be and all signatures and endorsements that appear thereon are genuine and all signatories and endorsers have full capacity to contract; to
the Borrower’s knowledge at the time of billing, the Account Debtor owing the Receivable and each guarantor, endorser or surety of such Receivable is solvent and financially able to pay in full the Receivable when it matures; and all recording,
filing and other requirements of giving public notice under any applicable law have been duly complied with. 

6.10.        Prior to the making of any loans hereunder: 1) Lender shall have received an opinion
of Borrower’s counsel in the form, and as to the matters, required by Lender; 2) Lender shall have received Good Standing Certificates and other certifications with respect to Borrower, the Subsidiaries and any other Person liable on the
Obligations from such governmental authorities as Lender shall require; 3) Lender or its agents shall have completed such examinations and appraisals of the Collateral and such searches with regard to Borrower and its assets, as Lender shall
require, all at Borrower’s expense; 4) Lender shall have received a payoff letter duly executed and delivered by First Capital and Borrower or other evidence of such termination in form and substance satisfactory to Lender, and any other
evidence Lender may require that on the Closing Date there shall be no Liens on the Collateral other than Permitted Liens; 5) a lockbox or deposit account complying with Section 5.1 shall have been established which is satisfactory to Lender;
6) Lender shall have received evidence, in form satisfactory to Lender, that Borrower and Subsidiaries have obtained such insurance policies, including credit insurance, in such form, with such issuers and covering such risks, as Lender shall
require, with endorsements, naming Lender as loss payee, that are acceptable to Lender; and 7) the Loan Availability shall be in an amount equal to or greater than $350,000 plus the sum of all amounts required to be disbursed at closing for the
purpose of paying Lender’s expenses chargeable to Borrower hereunder and all amounts required to be paid to creditors to induce them to release any liens in the Collateral that are not Permitted Liens. 

6.11.        During the term of this Agreement, Borrower shall not make any sales to customers by
accepting a credit card issued to such customers unless Borrower has prior thereto entered into a merchant agreement with a processor, relating to sales made using such credit card, on terms that are acceptable to Lender, and such processor has
agreed to remit the proceeds of such sales to an account of Borrower with respect to which Lender has control in accordance with Section 9-104 of the UCC. 
 6.12.        Attached as Exhibit C is a listing of all of Borrower’s patents, trademarks and copyrights. So long as any Obligations remain outstanding, Lender
is hereby irrevocably authorized to use any of Borrower’s patents, trademarks and copyrights for the purpose of enforcing Lender’s security interest in the Collateral and disposing of any of the Collateral. 

6.13.        So long as any Obligations remain outstanding, Borrower shall (i) advise Lender
of the existence of any commercial tort claims in favor of Borrower, which advice shall be given to Lender in writing no later than 10 days after Borrower becomes aware of existence of such a claim in its favor; (ii) within 10 Business Days
after Lender’s request therefor, provide Lender with a listing of all deposit 

  
 9 

 
accounts and securities accounts maintained by Borrower and a listing of all letters of credit issued and outstanding in favor of Borrower as beneficiary and, if requested by Lender, arrange for
the execution by each depository bank and financial intermediary of a control agreement in Lender’s favor with respect to such accounts, and by each letter of credit issuer of a consent to an assignment of the proceeds of such letter of credit
to Lender, in each case in form and content satisfactory to Lender; and (iii) maintain in effect in favor of Lender, agreements (in form reasonably satisfactory to Lender) executed by the landlords of Borrower’s places of business and the
bailees of its property, pursuant to which Lender is granted access to such places of business and such bailees are directed to honor Lender’s instructions with respect to the disposition of such property. 

6.14.        Until indefeasible payment in full of the Obligations, Borrower shall not
(i) make any loans to officers, directors, shareholders or Affiliates; (ii) engage in any other transactions with Affiliates except on terms similar to those that would be in effect in transactions between unrelated parties
(iii) incur or repay indebtedness for borrowed money or guaranty the obligations of Affiliates or other Persons; (iv) sell, transfer or otherwise dispose of any assets except for sales of Inventory in the normal course; (v) declare
any dividends, redeem or repurchase any stock, or make any other distributions in respect of its stock; or (vi) enter into any agreements to buy or sell goods on consignment terms; or (vi) merge with or into any entity or undergo any other
restructuring or reorganization including reorganizations that would result in Borrower being organized under the laws of a state other than Delaware. 
 6.15.        Borrower shall not (i) conduct any business or engage in any transaction or dealing with any Blocked Person (as hereafter defined), including the
making or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked Person; (ii) deal in, or otherwise engage in any transaction relating to any property or interests in property blocked pursuant to
Executive Order No. 13224; or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in Executive Order
No. 13224, the USA Patriot Act or any other Anti-Terrorism Law. Borrower shall deliver to Lender any certification or other evidence requested from time to time by Lender in its sole discretion, confirming Borrower’s compliance with this
Section. Borrower is not in violation of any Anti-Terrorism Law and Borrower is not a Person (a “Blocked Person”) that (a) is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224;
(b) is owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224; (c) any financial institution is prohibited from dealing
or otherwise engaging in any transaction by any Anti-Terrorism Law; (d) commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order No. 13224; (e) is named as a “specially designated
national” on the most current list published by the U.S. Treasury Department Office of Foreign Asset Control at its official website or any replacement website or other replacement official publication of such list, or is affiliated or
associated with a person or entity listed above; (f) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person, or deals in, or otherwise engages in any
transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224. 
 For
purposes of this Section 6.15, (i) “Anti-Terrorism Laws” shall mean any laws, regulations, rules, orders and directives relating to terrorism or money laundering, including Executive Order No. 13224, the USA Patriot Act, the
Laws comprising or implementing the Bank Secrecy Act, and the Law administered by the United States Treasury Department’s Office of Foreign Asset Control (as any of the foregoing laws, regulations, rules, orders and directives may from time to
time be amended, renewed, extended, or replaced); (ii) “Executive Order No. 13224” shall mean Executive Order No. 13224 on 

  
 10 

 
Terrorist Financing, effective September 24, 2001, as the same has been, or shall hereafter be, renewed, extended, amended or replaced; and (iii) “USA Patriot Act”
shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has been, or shall hereafter be, renewed, extended, amended or replaced.

 6.16.        Borrower shall deliver to Lender within 5 days of any of Borrower’s
senior officers obtaining knowledge of any condition or event which constitutes, or might be expected to constitute, a Default or that any Person has given notice to Borrower or any Affiliates of Borrower or taken any other action with respect to a
claimed Default, Borrower shall deliver to Lender an officer’s certificate describing the same and the period of existence thereof and specifying what action Borrower has taken, are taking and propose to take with respect thereto 

 

	7.	SPECIFIC POWERS OF LENDER 

7.1.        Borrower hereby constitutes Lender or its agent, or any other person whom Lender may
designate, as Borrower’s attorney, at Borrower’s own cost and expense to exercise at any time all or any of the following powers which, being coupled with an interest, shall be irrevocable until all Obligations have been paid in full:
(a) to receive, take, endorse, assign, deliver, accept and deposit, in Lender’s or Borrower’s name, any and all checks, notes, drafts, remittances and other instruments and documents relating to Receivables and proceeds thereof;
(b) to receive, open and dispose of all mail addressed to Borrower and, after a Default, to notify postal authorities to change the address for delivery thereof to such address as Lender may designate; (c) to transmit to Account Debtors
indebted on Receivables notice of Lender’s interest therein and to request from such Account Debtors at any time, in Borrower’s name or in Lender’s or that of Lender’s designee, information concerning the Receivables and the
amounts owing thereon; (d) after a Default, to notify Account Debtors to make payment directly to Lender; and (e) after a Default, to take or bring, in Borrower’s name or Lender’s, all steps, actions, suits or proceedings deemed
by Lender necessary or desirable to effect collection of the Receivables. In addition, to the extent permitted by law, Lender may file one or more financing statements, naming Borrower as debtor and Lender as secured party and indicating therein the
types or describing the items of Collateral. Without limitation of any of the powers enumerated above, Lender is hereby authorized to accept and to deposit all collections in any form, relating to Receivables, received from or for the account of
Account Debtors (whether such collections are remitted directly to Lender by Account Debtors or are forwarded to Lender by Borrower), including remittances which may reflect deductions taken by Account Debtors, regardless of amount, the Loan Account
of Borrower to be credited only with amounts actually collected on Receivables in accordance with Section 5.1. Borrower hereby releases (i) any bank, trust company or other firm receiving or accepting such collections in any form, and
(ii) Lender and its officers, employees and designees, from any liability arising from any act or acts hereunder or in furtherance hereof, whether of omission or commission, and whether based upon any error of judgment or mistake of law or
fact, except for gross negligence or willful misconduct as determined by a final non-appealable decision of a court of competent jurisdiction. 
  

	8.	LENDER’S REMEDIES 

8.1.        Borrower agrees that all of the loans and advances made by Lender under the terms of
this Agreement, together with all Obligations of Borrower as defined herein (unless otherwise provided in any instrument evidencing the same or agreement relating thereto), shall be payable by Borrower at Lender’s demand at the office of Lender
in New York, New York. In addition, all Obligations shall be, at Lender’s option, due and payable without notice or demand upon termination of this Agreement or upon 

  
 11 

 
the occurrence of any one or more of the following events of default (“Default”): (1) if Borrower shall fail to pay to Lender when due any amounts owing to Lender under any
Obligation, or if there shall occur a breach by Borrower or any Affiliate of Borrower of any of the terms, covenants, conditions or provisions of this Agreement or any other agreement between Borrower or any of its Affiliates and Lender or any of
its Affiliates or if Borrower shall fail to pay when due any indebtedness for borrowed money, which continues after any applicable notice and cure periods have expired; (2) if any guarantor, endorser or other person liable on the Obligations or
who has pledged or granted collateral security for the Obligations, shall die, terminate or attempt to terminate its guaranty or pledge agreement or shall breach any of the terms, covenants, conditions or provisions of any guarantee, endorsement or
other agreement of such person with, or in favor of, Lender or if a material portion of any tangible Collateral for the Obligations is destroyed or lost or rendered valueless; (3) if any representation, warranty, or statement of fact made to
Lender or an Affiliate of Lender at any time by or on behalf of Borrower or an Affiliate of Borrower is or becomes false or misleading; (4) if Borrower shall become insolvent, is generally unable to pay its debts as they mature, files or has
filed against it a petition in bankruptcy, liquidation or reorganization, or if a judgment against Borrower remains unpaid, unstayed or undismissed for a period of more than five days, or if Borrower discontinues doing business for any reason, or if
a custodian, receiver or trustee of any kind is appointed for it or any of its property; (5) in the event of a Change in Control; (6)if at any time Lender shall, in its sole discretion, considers the Obligations insecure or any part of the
Receivables unsafe, insecure or insufficient and Borrower shall not on demand furnish other collateral or make payment on account, satisfactory to Lender; (7) if (x) Borrower shall default under or breach the terms of any present or future
lease (each a “Lease”) of any premises now or hereafter leased by Borrower (“Leased Premises”) which continues after any applicable notice and cure periods have expired or (y) Lender shall receive notice from
any lessor of any Leased Premises that a default has occurred under any Lease, which continues after any applicable notice and cure periods have expired, or that any Lease has been terminated; (8) the Pension Benefit Guaranty Corporation
commences proceedings for the purpose of effecting any termination of any employee benefit plan of Borrower subject to ERISA or an event or circumstance occurs which could result in any such termination; or (9) if a claim is made or threatened,
or a proceeding is commenced, by any governmental agency or authority against Borrower or any Affiliate of Borrower under any environmental protection laws. Upon the occurrence of any Default, (i) Borrower shall pay to Lender, as liquidated
damages and as part of the Obligations, in addition to amounts payable under Section 9.1 hereof, a charge at the rate of two percent per month upon the outstanding balance of the Obligations from the date of Default until the date of full
payment of the Obligations, which charge shall be in lieu of compensation payable under Section 3.1 from such date; provided, that in no event shall such rate exceed the Maximum Rate and (ii) Lender shall have the right (in addition to any
other rights Lender may have under this Agreement or otherwise) without further notice to Borrower, to enforce payment of any Receivables, to settle, compromise, or release in whole or in part, any amounts owing on Receivables, to prosecute any
action, suit or proceeding with respect to Receivables, to extend the time of payment of any and all Receivables, to make allowances and adjustments with respect thereto, to issue credits in Lender’s name or Borrower’s, to sell, assign and
deliver the Receivables (or any part thereof) and any returned, reclaimed or repossessed merchandise or other property held by Lender or by Borrower for Lender’s account, at public or private sale, at broker’s board, for cash, upon credit
or otherwise, at Lender’s sole option and discretion, and Lender may bid or become purchaser at any such sale if public, free from any right of redemption which is hereby expressly waived. Borrower agrees that the giving of ten days’
notice by Lender, sent by ordinary mail, postage prepaid, to the mailing address of Borrower set forth in this Agreement, designating the place and time of any public sale or the time after which any private sale or other intended disposition of the
Receivables or any other security held by Lender is to be made, shall be deemed to be reasonable notice thereof and Borrower waives any other notice with respect thereto. The net cash proceeds resulting from the exercise of any of the foregoing
rights or remedies shall be applied by Lender 

  
 12 

 
to the payment of the Obligations in such order as Lender may elect, and Borrower shall remain liable to Lender for any deficiency. Notwithstanding anything to the contrary contained in this
section, (i) to the extent that an event or occurrence described in this section consists of Borrower’s failure to take, do or perform an act or action, then such failure shall not constitute a Default if no other Default has occurred and
if such act or action is taken, done or performed by Borrower within 15 Business Days (except for the failure to pay any amounts due hereunder) after Borrower’s receipt of written notice from Lender that the act or action is required to be
taken, done or performed by Borrower and has not been taken, done or performed; (ii) to the extent that an event or occurrence described in this section consists of Borrower’s failure to refrain from taking, doing or performing an act or
action, then such failure shall not constitute a Default if no other Default has occurred within 5 Business Days after Borrower’s receipt of written notice from Lender that the act or action is required to be taken, done or performed by
Borrower and has not been taken, done or performed; and (iii) to the extent that an event or occurrence described in this section consists of the commencement of a proceeding against Borrower under Federal or state law or the appointment of a
receiver or custodian under Federal or state law, then the commencement of such proceeding or the appointment of such receiver or custodian shall not constitute a Default if no other Default has occurred and if such proceeding or appointment is
contested by Borrower within the time period and in the manner required by law and is dismissed, terminated or vacated within sixty (60) Business Days after such commencement or appointment 

8.2.        The enumeration of the foregoing rights and remedies is not intended to be exhaustive,
and such rights and remedies are in addition to and not by way of limitation of any other rights or remedies Lender may have under the UCC or other applicable law. Lender shall have the right, in its sole discretion, to determine which rights and
remedies, and in which order any of the same, are to be exercised, and to determine which Receivables are to be proceeded against and in which order, and the exercise of any right or remedy shall not preclude the exercise of any others, all of which
shall be cumulative. No act, failure or delay by Lender shall constitute a waiver of any of its rights and remedies. No single or partial waiver by Lender of any provision of this Agreement, or breach or default thereunder, or of any right or remedy
which Lender may have shall operate as a waiver of any other provision, breach, default, right or remedy or of the same provision, breach, default, right or remedy on a future occasion. Borrower waives presentment, notice of dishonor, protest and
notice of protest of all instruments included in or evidencing any of the Obligations or the Receivables and any and all notices or demands whatsoever (except as expressly provided herein). Lender may, at all times, proceed directly against Borrower
to enforce payment of the Obligations and shall not be required to first enforce its rights in the Receivables or any other security granted to it. Lender shall not be required to take any action of any kind to preserve, collect or protect its or
Borrower’s rights in the Receivables or any other security granted to it. 

8.3.        BORROWER HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY IN THE EVENT OF ANY LITIGATION
WITH RESPECT TO ANY MATTER CONNECTED WITH THIS AGREEMENT, THE OBLIGATIONS, THE RECEIVABLES, OR ANY OTHER TRANSACTION BETWEEN THE PARTIES AND BORROWER HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK
AND OF ANY FEDERAL COURT LOCATED IN SUCH STATE IN CONNECTION WITH ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE OBLIGATIONS. IN ANY SUCH LITIGATION BORROWER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
PROCESS AND AGREES THAT SERVICE THEREOF MAY BE MADE BY CERTIFIED OR REGISTERED MAIL DIRECTED TO BORROWER AT ITS PLACE OF BUSINESS SET FORTH ABOVE. WITHIN 30 DAYS AFTER SUCH MAILING, BORROWER SHALL APPEAR IN ANSWER TO SUCH SUMMONS, COMPLAINT OR OTHER

  
 13 

 
PROCESS, FAILING WHICH BORROWER SHALL BE DEEMED IN DEFAULT AND JUDGMENT MAY BE ENTERED BY LENDER AGAINST BORROWER FOR THE AMOUNT OF THE CLAIM AND OTHER RELIEF REQUESTED THEREIN. 

8.4.        Borrower hereby agrees to indemnify Lender and hold Lender harmless from and against
any liability, loss, damage, suit or proceeding ever suffered or incurred by Lender (including attorneys’ fee) as a result of Borrower’s failure to observe, perform or discharge Borrower’s duties hereunder or as a result of
Borrower’s breach of any of the representations, warranties and covenants of this Agreement. This indemnity shall survive termination of this Agreement for any reason. 

 

	9.	EFFECTIVE DATE, CONTROLLING LAW AND TERMINATION 

 9.1.        This Agreement shall become effective upon acceptance by Lender at its office in the State of New York, and shall continue in full force and effect
until November 30, 2015 (the “Renewal Date”) and from year to year thereafter, unless sooner terminated as herein provided. Borrower may terminate this Agreement on the Renewal Date or on the anniversary of the Renewal Date in
any year by giving Lender at least sixty (60) days’, and not more than one hundred twenty (120) days’ prior written notice by registered or certified mail, return receipt requested, and in addition to its other rights hereunder,
Lender shall have the right to terminate this Agreement at any time by giving Borrower sixty (60) days’ prior written notice. Should a Default occur hereunder, this Agreement will be terminable by Lender at any time and Borrower shall,
upon any such termination by Lender, pay to Lender, as liquidated damages and as part of the Obligations, in addition to amounts payable under Section 8.1 hereof, an amount equal to (a) three percent of the Maximum Credit Facility then in
effect, if such termination occurs prior to the first anniversary of the Closing Date; (b) two percent of the Maximum Credit Facility then in effect, if such termination occurs on or after the first anniversary of the Closing Date but prior to
the second anniversary of the Closing Date; and (c) one percent of the Maximum Credit Facility then in effect if such termination occurs on or after the second anniversary of the Closing Date. In the event that Lender shall permit termination
of this Agreement by Borrower other than as provided herein, as a condition to such termination, Borrower shall pay to Lender such additional liquidated damages in addition to performance of any other conditions to such termination. No termination
of this Agreement, however, shall relieve or discharge Borrower of its duties, obligations and covenants hereunder until such time as all Obligations have been paid in full, and the continuing security interest in Receivables and other Collateral
granted to Lender hereunder or under any other agreement shall remain in effect until such Obligations have been indefeasibly paid and performed in full and any provision hereof that by its terms survives termination of this Agreement shall survive
pursuant to such terms. No provision hereof shall be modified or amended orally or by course of conduct but only by a written instrument expressly referring hereto signed by both parties. This Agreement embodies the entire agreement between Lender
and Borrower as to the subject matter hereof and supersedes all prior agreements (whether oral or written) as to the subject matter hereof. This Agreement shall be binding upon and inure to the benefit of Borrower and Lender and their respective
heirs, executors, administrators, successors and assigns, provided, however, that Borrower may not assign this Agreement or its rights hereunder without Lender’s prior written consent. Borrower consents to Lender’s sale of participations
in the loans made under this Agreement. 
 9.2.        ALL LOANS SHALL BE DISBURSED BY
LENDER FROM ITS OFFICE IN THE STATE OF NEW YORK, SHALL BE PAYABLE BY BORROWER AT SUCH OFFICE, AND THIS AGREEMENT AND ALL TRANSACTIONS THEREUNDER SHALL BE DEEMED TO BE CONSUMMATED IN SUCH STATE AND SHALL BE GOVERNED BY AND INTERPRETED IN

  
 14 

 
ACCORDANCE WITH THE LAWS OF THAT STATE. If any part or provision of this Agreement is invalid or in contravention of the applicable laws or regulations of any controlling jurisdiction, such part
or provision shall be severable without affecting the validity of any other part or provision of this Agreement. Notwithstanding any provision herein or in any related document, Lender shall never be entitled to receive, collect, or apply, as
interest on the Loan Account, any amount in excess of the maximum rate of interest (“Maximum Rate”) permitted to be charged from time to time by applicable law (if such law imposes any maximum rate), and in the event Lender ever
receives, collects, or applies as interest, any amount in excess of the Maximum Rate, such amount shall be deemed and treated as a partial prepayment of the principal of the Loan Account; and, if the principal of the Loan Account and all other of
Lender’s charges other than interest are paid in full, any remaining excess shall be paid to Borrower. 
  

	10.	MISCELLANEOUS 

 10.1.        Unless otherwise specifically provided in this Agreement, any notices, requests, demands or other communications permitted or required to be given
under this Agreement shall be in writing and shall be sent by facsimile, hand delivery or by a nationally recognized overnight delivery service, to the addresses and facsimile numbers of the parties set forth below (or to such other address or
facsimile number as a party may hereafter designate by a notice to the other that complies with this section) and shall be deemed given (a) in the case of a notice sent by facsimile, when received by the recipient if the sending party receives
a confirmation of delivery from its own facsimile machine; and (b) in the case of a notice that is hand delivered or sent by such overnight courier, when delivered (provided that the sending party retains a confirmation of delivery). Any notice
which, pursuant to the terms hereof must be sent by certified or registered mail shall be deemed given and effective when received by Lender, or Borrower, as the case may be. 

 

			
	 If to Lender
  
	  	 If to
Borrower
  

	
ROSENTHAL & ROSENTHAL, INC.
  

1370 Broadway
  
 New York NY 10018
  
 Attn: David
Flaxman, Esq., with a copy to James Occhiogrosso
  
 Facsimile:
(212) 356-0989
  
	  	 Meade Instruments Corp.

 
 27 Hubble

 
 Irvine, CA 92618-4209

 
 Attn: John A. Elwood

 
 Facsimile: (949) 748-1604

 10.2.        Nothing contained herein shall impose on Lender any
liability for any contracts, undertakings or other obligations of Borrower to others, including obligations of Borrower to any Account Debtor for breach of the terms of any contract of sale between Borrower and the Account Debtor. 

10.3.        Wherever in this Agreement (i) the term “including” appears, such term
shall be deemed to mean “including without limitation”; (ii) the term “satisfactory” or “acceptable” to Lender appears, such terms shall be deemed to mean “acceptable” or “satisfactory” to
Lender and its counsel in their sole and absolute discretion; and (iii) the terms “in the opinion” or “in the judgment” of Lender appear, such terms shall be deemed to mean “in the sole opinion” and “in the
sole judgment” of Lender and its counsel. 

  
 15 

 10.4.        Terms used in this Agreement that are
not defined in this Agreement but are defined in the UCC shall have the meanings given in the UCC. 
 IN WITNESS WHEREOF, Lender
and Borrower have caused this Agreement to be executed by their respective corporate officers thereto duly authorized as of the day and year first above written. 
  

					
	Attest:	 		 	MEADE INSTRUMENTS CORP.
			
	/s/ JOHN A. ELWOOD	 		 	/s/ STEVEN G. MURDOCK
	 John A. Elwood
 Sr. VP –
Finance & Administration
 Chief Financial Officer and Secretary
	 		 	 Steven G. Murdock
 Chief
Executive Officer

		 		 	
		 		 	
		 		 	
		 		 	Accepted:
		 		 	
		 		 	ROSENTHAL & ROSENTHAL, INC.
			
		 		 	/s/ ROBERT MARTUCCI
		 		 	 Robert Martucci
 Senior Vice
President

  

  
 16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}]]