Document:

Credit Agreement

 Exhibit 10.1 
 Execution Version 
  
  

 
 Published CUSIP Number: 41086PAE5

 Revolving Credit CUSIP Number: 41086PAF2 
 U.S. $200,000,000 
 CREDIT AGREEMENT 

Dated as of August 2, 2011 
 among 
 THE HANOVER INSURANCE GROUP, INC. 

as Borrower 
 THE
LENDERS NAMED HEREIN 
 as Lenders 
 WELLS FARGO SECURITIES, LLC 
 and 

BARCLAYS CAPITAL 

as Joint Lead Arrangers and Joint Lead Bookrunners 
 BARCLAYS CAPITAL 
 as Syndication Agent 

BRANCH BANKING AND TRUST COMPANY, 
 JPMORGAN CHASE BANK, N.A., and 
 LLOYDS TSB BANK PLC, 

as Co-Documentation Agents 
 and 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 

as Administrative Agent, Fronting Bank and L/C Agent 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	
	ARTICLE 1	  
	
	DEFINITIONS AND ACCOUNTING TERMS	  
			
	 Section 1.01
	  	Certain Defined Terms	  	 	2	  
	 Section 1.02
	  	Terms Generally	  	 	23	  
	 Section 1.03
	  	Captions	  	 	24	  
	 Section 1.04
	  	Accounting Terms; GAAP	  	 	24	  
	
	ARTICLE 2	  
	
	AMOUNTS AND TERMS OF THE LOANS	  
			
	 Section 2.01
	  	Commitments and Borrowings	  	 	24	  
	 Section 2.02
	  	Making the Loans	  	 	25	  
	 Section 2.03
	  	Letters of Credit	  	 	26	  
	 Section 2.04
	  	Certain Fees	  	 	37	  
	 Section 2.05
	  	Reduction; Increase and Extension of the Commitments	  	 	38	  
	 Section 2.06
	  	Repayment	  	 	42	  
	 Section 2.07
	  	Interest	  	 	42	  
	 Section 2.08
	  	Interest Rate Determinations; Changes in Rating Systems	  	 	43	  
	 Section 2.09
	  	Voluntary Conversion and Continuation of Loans	  	 	44	  
	 Section 2.10
	  	Prepayments of Loans	  	 	45	  
	 Section 2.11
	  	Increased Costs	  	 	45	  
	 Section 2.12
	  	Illegality	  	 	46	  
	 Section 2.13
	  	Payments and Computations	  	 	46	  
	 Section 2.14
	  	Taxes	  	 	48	  
	 Section 2.15
	  	Set-Off; Sharing of Payments, Etc.	  	 	50	  
	 Section 2.16
	  	Right to Replace a Lender	  	 	51	  
	 Section 2.17
	  	Evidence of Debt	  	 	52	  
	 Section 2.18
	  	Notes	  	 	52	  
	 Section 2.19
	  	Recovery of Payments	  	 	53	  
	 Section 2.20
	  	Defaulting Lender	  	 	53	  
	
	ARTICLE 3	  
	
	CONDITIONS OF LENDING	  
			
	 Section 3.01
	  	Conditions Precedent to Closing	  	 	56	  
	 Section 3.02
	  	Conditions Precedent to Each Credit Extension	  	 	57	  
	
	ARTICLE 4	  
	
	REPRESENTATIONS AND WARRANTIES	  
			
	 Section 4.01
	  	Representations and Warranties	  	 	58	  

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
	
	ARTICLE 5	  
	
	COVENANTS OF THE BORROWER	  
			
	 Section 5.01
	  	Affirmative Covenants	  	 	61	  
	 Section 5.02
	  	Financial Covenants	  	 	65	  
	 Section 5.03
	  	Negative Covenants	  	 	65	  
	
	ARTICLE 6	  
	
	EVENTS OF DEFAULT	  
			
	 Section 6.01
	  	Events of Default	  	 	69	  
	 Section 6.02
	  	Remedies	  	 	71	  
	
	ARTICLE 7	  
	
	THE ADMINISTRATIVE AGENT	  
			
	 Section 7.01
	  	Appointment of Administrative Agent	  	 	71	  
	 Section 7.02
	  	Power and Duties	  	 	72	  
	 Section 7.03
	  	General Immunity	  	 	72	  
	 Section 7.04
	  	Administrative Agent Entitled to Act as Lender	  	 	73	  
	 Section 7.05
	  	Lenders’ Representations, Warranties and Acknowledgement	  	 	73	  
	 Section 7.06
	  	Right to Indemnity	  	 	74	  
	 Section 7.07
	  	Successor Administrative Agent	  	 	74	  
	 Section 7.08
	  	Lead Arrangers, Etc.	  	 	75	  
	
	ARTICLE 8	  
	
	MISCELLANEOUS	  
			
	 Section 8.01
	  	Amendments, Etc.	  	 	75	  
	 Section 8.02
	  	Notices, Etc.	  	 	76	  
	 Section 8.03
	  	No Waiver; Remedies	  	 	78	  
	 Section 8.04
	  	Costs, Expenses and Indemnification	  	 	78	  
	 Section 8.05
	  	Binding Effect	  	 	80	  
	 Section 8.06
	  	Assignments and Participations	  	 	80	  
	 Section 8.07
	  	Governing Law; Submission to Jurisdiction	  	 	83	  
	 Section 8.08
	  	Severability	  	 	83	  
	 Section 8.09
	  	Execution in Counterparts	  	 	84	  
	 Section 8.10
	  	Survival	  	 	84	  
	 Section 8.11
	  	Waiver of Jury Trial	  	 	84	  
	 Section 8.12
	  	Confidentiality	  	 	84	  
	 Section 8.13
	  	No Fiduciary Relationship	  	 	85	  

  
 ii 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 Section 8.14
	  	USA PATRIOT Act	  	 	85	  
	 Section 8.15
	  	Maximum Rate	  	 	86	  

  
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 EXHIBITS 

 

			
	Exhibit A	  	Form of Notice of Borrowing
	Exhibit B	  	Form of Assignment and Assumption
	Exhibit C-1	  	Form of Syndicated Letter of Credit
	Exhibit C-2	  	Form of Participated Letter of Credit
	Exhibit C-3	  	Form of Letter of Credit Notice
	Exhibit D	  	Form of Note
	Exhibit E	  	Form of Notice of Conversion/Continuation
	Exhibit F	  	Form of Compliance Certificate

 SCHEDULES 
  

			
	Schedule I	  	Lenders and Commitments
	Schedule II	  	Financial Debt; Liens
	Schedule III	  	Subsidiaries
	Schedule IV	  	Burdensome Agreements

 THIS CREDIT AGREEMENT (this “Agreement”) dated as of August 2,
2011 among THE HANOVER INSURANCE GROUP, INC., a Delaware corporation (the “Borrower”), the Lenders (as hereinafter defined), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, L/C Agent and Fronting
Bank for the Lenders. 
 The Borrower has requested that the Lenders (as hereinafter defined) make available to Borrower a
revolving credit facility in the aggregate principal amount of $200,000,000 (as the same may be increased as hereinafter provided) for the general corporate purposes of the Borrower and its subsidiaries, and the Lenders are prepared to make
available to the Borrower the credit facility described hereunder subject to and on the terms and conditions set forth in this Agreement. 
 AGREEMENT 
 The parties hereto agree as follows: 

ARTICLE 1 

DEFINITIONS AND ACCOUNTING TERMS 
 Section 1.01 Certain Defined Terms. As used in this Agreement, the following terms shall have the following respective meanings: 

“ABR” means a fluctuating interest rate which shall at any time be equal to the highest of: 

(a) the Prime Rate, as adjusted to conform to changes as of the opening of business on the date of any such change in such Prime Rate;

 (b) 1/2 of 1% per annum above the Federal Funds Rate, as adjusted to conform to changes as of the opening of business on
the date of any such change in the Federal Funds Rate; and 
 (c) The Eurodollar Rate (giving effect to any adjustment pursuant
to Section 2.07(c)) for an Interest Period of one month plus 1% per annum, as adjusted to conform to changes as of the opening of business on the date of any such change of such Eurodollar Rate. 

“ABR Loan” means, at any time, a Loan which bears interest at rates based upon the ABR. 

“Acquisition” means any transaction, or any series of related transactions, by which the Borrower and/or any of its
Subsidiaries directly or indirectly (i) acquires any ongoing business or all or substantially all of the assets of any Person or division thereof, whether through purchase of assets, merger or otherwise, (ii) acquires (in one transaction
or as the most recent transaction in a series of transactions) Control of at least a majority in ordinary voting power of the securities of a Person which have ordinary voting power for the election of directors or (iii) otherwise acquires
Control of a more than 50% ownership interest in any such Person. 

  
 2 

 “Additional Commitment Lender” has the meaning specified in
Section 2.05(c)(iv). 
 “Additional Lender” has the meaning specified in
Section 2.05(b). 
 “Administrative Agent” means Wells Fargo, in its capacity as Administrative
Agent appointed under Section 7.01. 
 “Administrative Questionnaire” means an administrative
questionnaire in a form supplied by the Administrative Agent. 
 “Affected Person” has the meaning specified in
Section 2.16. 
 “Affiliate” means, as to any Person, any other Person that, directly or
indirectly, Controls, is Controlled by or is under common Control with such Person. For the avoidance of doubt, any Lloyd’s syndicate which is not a legal entity and has no power to enter into contracts or other binding obligations shall not be
deemed to be an Affiliate of the Borrower. 
 “Agent Affiliates” has the meaning specified in
Section 8.02(b)(iii). 
 “Agreement” means this Credit Agreement. 

“Applicable Lending Office” means, with respect to any Lender, such Lender’s Domestic Lending Office in the case of
an ABR Loan and such Lender’s Eurodollar Lending Office in the case of a Eurodollar Loan. 
 “Applicable
Margin” means, from time to time, the following percentages per annum, based upon the Debt Rating as set forth below: 
  

															
	 Pricing
Level
	  	 Debt Ratings

(S&P/Moody’s)
	  	Applicable Margin
For
Eurodollar Loans /
Letter of Credit Fee	 	 	Applicable Margin
for
ABR Loans	 	 	Commitment Fee	 
	 1
	  	BBB+/Baa1 or above	  	 	1.500	% 	 	 	0.500	% 	 	 	0.200	% 
	 2
	  	BBB/Baa2	  	 	1.625	% 	 	 	0.625	% 	 	 	0.225	% 
	 3
	  	BBB-/Baa3	  	 	1.875	% 	 	 	0.875	% 	 	 	0.275	% 
	 4
	  	BB+/Ba1 or below	  	 	2.125	% 	 	 	1.125	% 	 	 	0.350	% 

 “Debt Rating” means, as of any date of determination, the rating of the Borrower’s
senior, unsecured, non-credit enhanced, long-term debt obligations then outstanding most recently announced by Standard & Poor’s and Moody’s; provided that (i) if the respective Debt Ratings issued by the foregoing rating
agencies differ by one level, then the Pricing Level for the higher of such Debt Ratings shall apply (with the Debt Rating for Pricing Level 1 being the highest and the Debt Rating for Pricing Level 4 being the lowest); (ii) if there is a split
in Debt Ratings of more than one level, then the Pricing Level that is one level lower than the Pricing Level of the higher Debt Rating shall apply, (iii) if the Borrower has only one Debt Rating, the Pricing Level for that Debt Rating shall
apply, and (iv) if the Borrower does not have any Debt Rating, Pricing Level 4 shall apply. 

  
 3 

 Each change in the Applicable Margin resulting from a publicly announced change in the Debt Rating shall be
effective on the date on which the relevant change in such rating is first announced by Moody’s or Standard & Poor’s, as the case may be. 
 “Approved Electronic Communications” means any notice, demand, communication, information, document or other material that the Borrower or any of its Subsidiaries provides to the
Administrative Agent hereunder or pursuant to the transactions contemplated hereby which is distributed to the Administrative Agent, any Lead Arranger or the Lenders by means of electronic communications pursuant to Section 8.02(b).

 “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate
of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 
 “Assignment and
Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee, and accepted by the Administrative Agent, in substantially the form of Exhibit B. 

“Assignment Taxes” has the meaning specified in Section 2.14(b). 

“Bankruptcy Code” means 11 U.S.C. §§ 101 et seq., as amended from time to time, and any successor statute, and
all regulations from time to time promulgated thereunder. 
 “Beneficial Owner” means the beneficial owner, for
U.S. federal income tax purposes, of a payment to which any U.S. federal withholding tax relates. 

“Borrowing” means a borrowing consisting of Loans of the same Type made by the Lenders at the same time pursuant to
Section 2.01. 
 “Burdensome Agreement” has the meaning specified in Section 5.03(g).

 “Business Day” means a day on which banks are not required or authorized to close in New York City and
Charlotte, North Carolina and, if the applicable Business Day relates to any Eurodollar Loan, on which dealings are carried on in the London interbank market. 
 “Cash Collateral Account” has the meaning specified in Section 2.03(f). 
 “Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the Administrative Agent or the Fronting Bank (as applicable) and the
Lenders, as collateral for the Letter of Credit Exposure or obligations of Lenders to fund participations in respect of either thereof (as the context may require), cash or deposit account balances or, if the Fronting Bank benefiting from such
collateral shall agree in its sole discretion, other credit support, in each case pursuant to documentation in form and substance reasonably satisfactory to (a) the Administrative Agent and (b) the Fronting Bank. “Cash
Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support. 

  
 4 

 “Change in Control” means any of the following events: 

(a) any “person” or “group” (as such terms are used for purposes of sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, whether or not applicable, except that for purposes of this paragraph (a) such person or group shall be deemed to have “beneficial ownership” of all shares that such person or group has the right to acquire,
whether such right is exercisable immediately or only after the passage of time), is or becomes the “beneficial owner” (as such term is used in Rule 13d-3 promulgated pursuant to said Act), directly or indirectly, of more than 35% of the
Voting Shares of the Borrower; or 
 (b) during any period of 25 consecutive calendar months, a majority of the board of
directors of the Borrower shall no longer be composed of individuals (i) who were members of said board on the first day of such period or (ii) whose election or nomination to said board was approved by a majority of the board of the
directors of the Borrower, which members comprising such majority were either the individuals referred to in clause (i) or whose election or nomination was previously so approved. 

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

“CIC” means Citizens Insurance Company of America, a property and casualty insurance company organized under the laws of
Michigan as a corporation. 
 “CitySquare Project” means the CitySquare development in Worcester, Massachusetts
as described in Form 10-K of The Hanover Insurance Group, Inc. for the fiscal year ended December 31, 2010. 

“Closing Date” has the meaning set forth in Section 3.01. 

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

“Commitment” means, as to each Lender, the obligation of such Lender, on and subject to the terms and conditions of this
Agreement, to make Loans and to issue and/or participate in Letters of Credit in an aggregate principal amount at any time outstanding up to the amount set forth opposite such Lender’s name on Schedule I, as such amount may be reduced,
increased or terminated from time to time in accordance with this Agreement. 

  
 5 

 “Commitment Fee” has the meaning specified in Section 2.04(a).

 “Commitment Termination Date” means August 2, 2015, as the same may be extended pursuant to
Section 2.05(c); provided that if such date is not a Business Day, the Commitment Termination Date shall be the immediately preceding Business Day. 
 “Consolidated” refers to the consolidation of accounts of the Borrower and its Subsidiaries in accordance with GAAP. 

“conservator” has the meaning specified in Section 6.01(f). 

“Continuation”, “Continue” and “Continued” each refers to a continuation of Eurodollar
Loans from one Interest Period to the next Interest Period pursuant to Section 2.09(b). 

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

“Controlled Investment Affiliate” means, as to any future, present, or former employee, director, officer or consultant
of the Borrower and its Subsidiaries, any other Person, which directly or indirectly is in Control of, is Controlled by, or is under common Control with such Person and is organized by such Person (or any Person Controlling such Person) primarily
for making direct or indirect equity investments in the Borrower or its Subsidiaries. 
 “Convert”,
“Conversion” and “Converted” each refers to a conversion of Loans of one Type into Loans of the other Type pursuant to Section 2.08 or Section 2.09(a). 

“Credit Exposure” means, with respect to any Lender at any time, the amount of the sum of (i) the aggregate
principal amount of all Loans made by such Lender that are outstanding at such time and (ii) such Lender’s Letter of Credit Exposure at such time. 
 “Credit Extension” means either of the following: (i) a Borrowing of Loans and (ii) the Issuance of any Letter of Credit. 

“CSL” means Chaucer Syndicates Limited. 
 “Debt” of any Person means, without duplication, (a) indebtedness of such Person for borrowed money, (b) obligations of such Person evidenced by bonds, debentures, notes or
other similar instruments, (c) obligations of such Person to pay the deferred purchase price of Property or services (other than trade payables and accrued expenses incurred in the ordinary course of business and not overdue by more than 90
days), (d) obligations of such Person as lessee under leases which shall have been or should be, in accordance with GAAP, recorded as capital leases, (e) Debt of others secured by a Lien on the Property of such Person, whether or not the
Debt so secured has been assumed by such Person, (f) obligations of such Person under Guaranties in respect of Debt of others, (g) without duplication, (A) obligations of such Person in respect of Hybrid Securities (disregarding
clause (ii) of the definition thereof) and (B) in each case, Disqualified Equity Interests (disregarding clause (ii) of the definition thereof) and Preferred 

  
 6 

 
Securities (disregarding clause (ii) of the definition thereof) requiring repayments, prepayments, mandatory redemptions or repurchases prior to 91 days after the Commitment Termination
Date, with the amount of Debt represented by such Disqualified Equity Interest or Preferred Security being equal to the greater of its voluntary or involuntary liquidation amount and its maximum fixed repurchase price or redemption amount,
(h) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to Property acquired by such Person, (i) the net termination obligations of such Person under any Hedge Agreements,
calculated as of any date as if such agreement or arrangement were terminated as of such date and (j) the principal balance outstanding and owing by such Person under any synthetic lease, tax retention operating lease or similar off-balance
sheet financing product. 
 “Debtor Relief Laws” means the Bankruptcy Code, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in
effect. 
 “Default” means an event that, with notice or lapse of time or both, would become an Event of
Default. 
 “Defaulting Lender” means, subject to Section 2.20(b), any Lender that (i) has
failed to (A) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent in writing that such failure is the result of such
Lender’s determination in good faith that one or more conditions precedent (specifically identified and including the particular default, if any) to funding has not been satisfied, or (B) pay to the Administrative Agent, the Fronting Bank,
the L/C Agent or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit) within two Business Days of the date when due, (ii) has notified the Borrower, the
Administrative Agent, the Fronting Bank or L/C Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect unless such writing or public statement relates to such
Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination in good faith that a condition precedent (specifically identified and including the particular default, if any) to funding
cannot be satisfied, (iii) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective
funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (iii) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (iv) has, or has a
direct or indirect parent company that has, (A) become the subject of a proceeding under any Debtor Relief Law, or (B) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors
or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided that a Lender
shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result
in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender

  
 7 

 
(or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a
Defaulting Lender under clauses (i) through (iv) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.20(b)) upon delivery of written
notice of such determination to the Borrower, the Fronting Bank, the L/C Agent and each Lender. 
 “Disqualified Equity
Interest” means, with respect to any Person, any Equity Interest of such Person that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event or
otherwise, (i) (a) matures or is mandatorily redeemable or subject to any mandatory repurchase requirement, pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as the rights
of holder thereof upon the occurrence of a change of control or asset sale event shall be subject to (1) the prior repayment in full of the Loans and all other Obligations that are accrued and payable, (2) the termination of the
Commitments and (3) the Cash Collateralization all Letters of Credit then outstanding (whether or not any beneficiary under any such Letter of Credit shall have drawn or be entitled at such time to draw thereunder) in an amount of cash equal to
103% of the aggregate Stated Amount thereof), (b) is redeemable or subject to any mandatory repurchase requirement at the sole option of the holder thereof, or (c) is convertible into or exchangeable for (whether at the option of the
issuer or the holder thereof) (y) debt securities or (z) any Equity Interest referred to in (a) or (b) above, and (ii) requires no such repayments, prepayments, mandatory redemptions or repurchases, in each case in the
foregoing clauses (a), (b) and (c), prior to 91 days after the Commitment Termination Date; provided that (1) if such Equity Interests are issued pursuant to a plan for the benefit of employees of the Borrower or any of its
Subsidiaries or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by the Borrower or its Subsidiaries in order to satisfy applicable
statutory or regulatory obligations and (2) no such Equity Interests held by any future, present or former employee, director, officer or individual consultant (or their respective Controlled Investment Affiliates or Immediate Family Members)
of the Borrower (or any of its Subsidiaries) shall be considered Disqualified Equity Interests because such Equity Interests are redeemable or subject to repurchase pursuant to any management equity subscription agreement, stock option, stock
appreciation right or other stock award agreement, stock ownership plan, put agreement, stockholder agreement or similar agreement that may be in effect from time to time. 
 “Dollars” and “$” refers to lawful money of the United States of America. 
 “Domestic Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Domestic Lending Office” in the Administrative Questionnaire of such
Lender or in the Assignment and Assumption pursuant to which it became a Lender, or such other office of such Lender as such Lender may from time to time specify to the Borrower and the Administrative Agent. 

“Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, (d) any
other Person (other than a natural person) approved by the Administrative Agent, the Fronting Bank, and, unless an Event of Default has occurred and is continuing, by the Borrower (each such approval not to be unreasonably withheld or delayed);
provided, that notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or Subsidiaries. 

  
 8 

 “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. 
 “Equity Issuance” means any issuance or sale by the Borrower or any of its Subsidiaries after the
Closing Date of Equity Interests, other than (a) any such issuance or sale by a Subsidiary of the Borrower to the Borrower or to a Wholly-Owned Subsidiary of the Borrower, (b) any capital contribution by the Borrower or a Wholly-Owned
Subsidiary of the Borrower to any Subsidiary of the Borrower, (c) stocks, warrants, options or other rights to obtain Equity Interests issued to directors, officers, consultants and other employees of the Borrower or any of its Subsidiaries or
(d) any sale or disposition of a non-Material Subsidiary. 
 “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 

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

“ERISA Event” means (a) any “reportable event”, as defined in section 4043 of ERISA or the regulations
issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) a determination that a Plan is, or is expected to be, in “at risk” status (as defined in Section 303(i)(4) of
ERISA); (c) the failure to timely make a contribution required to be made with respect to any Plan or any Multiemployer Plan; (d) a determination that a Multiemployer Plan is, or is expected to be, in “endangered status” or
“critical status” (each as defined in section 305(b) of ERISA); (e) 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; (f) the
receipt by the Borrower or any of its ERISA Affiliates 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; (g) 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 (h) the receipt by the Borrower or any of its ERISA Affiliates of any notice, or the receipt
by any Multiemployer Plan from the Borrower or any of its ERISA Affiliates 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; or (i) the occurrence of a non-exempt prohibited transaction under section 406 of ERISA or section 4975 of the Code which could reasonably be expected to result in liability to the Borrower or any of its ERISA
Affiliates. 
 “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D. 

  
 9 

 “Eurodollar Lending Office” means, with respect to any Lender, the office
of such Lender specified as its “Eurodollar Lending Office” in the Administrative Questionnaire of such Lender or in the Assignment and Assumption pursuant to which it became a Lender (or, if no such office is specified, its Domestic
Lending Office), or such other office of such Lender as such Lender may from time to time specify to the Borrower and the Administrative Agent. 
 “Eurodollar Loan” means, at any time, a Loan which bears interest at rates based upon the Eurodollar Rate. 
 “Eurodollar Rate” means, for any Interest Period for each Eurodollar Loan, an interest rate per annum equal to (a) the rate per annum for deposits in Dollars having a maturity
closest to such Interest Period which appears on Reuters Page LIBOR01 as of approximately 11:00 a.m., London time, on the day two London Banking Days prior to the first day of such Interest Period, (b) in the event the rate referenced in the
preceding clause (a) does not appear on Reuters Page LIBOR01 or ceases to be available thereat, the rate determined by the Administrative Agent to be the offered rate on such other commercially available page or service which displays an
average British Bankers Association Interest Settlement Rate for deposits (for delivery on the first day of such period) in Dollars having a maturity closes to such Interest Period determined as of approximately 11:00 a.m., London time, on the day
two London Banking Days prior to the first day of such Interest Period, or (c) in the event the rates referenced in the preceding clauses (a) and (b) are not available, the rate per annum determined by the Administrative Agent to be
the rate at which deposits in Dollars having a maturity closest to such Interest Period are offered to the principal London office of first class banks in the London interbank market as of approximately 11:00 a.m., London time, on the day that is
two London Banking Days preceding the first day of such Interest Period in minimum amounts of at least $5,000,000. 

“Eurodollar Rate Reserve Percentage” of any Lender means, for any Interest Period for any Eurodollar Loan, the reserve
percentage applicable during such Interest Period (or if more than one such percentage shall be so applicable, the daily average of such percentages for those days in such Interest Period during which any such percentage shall be so applicable)
under regulations issued from time to time by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) for
such Lender with respect to liabilities or assets consisting of or including Eurocurrency Liabilities having a term comparable to such Interest Period. 
 “Events of Default” has the meaning specified in Section 6.01. 
 “Existing Commitment Termination Date” has the meaning specified in Section 2.05(c)(i). 
 “Extending Lender” has the meaning specified in Section 2.05(c)(ii). 
 “FATCA” means sections 1471 through 1474 of the Code and any applicable Treasury regulation promulgated thereunder or published administrative guidance implementing such sections or any
amended or successor version thereof. 

  
 10 

 “Federal Funds Rate” means, for any period, a fluctuating interest rate per
annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not
a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing selected by it after consultation with the Borrower. 
 “Fee Letters” means (i) the letter agreement from Wells Fargo and Wells Fargo Securities, LLC to the Borrower, dated June 3, 2011, relating to certain fees payable by the
Borrower in respect of the transactions contemplated by this Agreement, as amended, modified, restated or supplemented from time to time, and (ii) the letter agreement between Barclays Bank PLC and the Borrower, dated June 3, 2011,
relating to certain fees payable by the Borrower in respect of the transactions contemplated by this Agreement, as amended, modified, restated or supplemented from time to time. 

“Financial Debt” means, without duplication, Debt of the kinds set forth in clauses (a), (b), (d) or (g) of
the definition of Debt, or of the kinds set forth in clauses (e) or (f) thereof to the extent relating to Debt of the type referred to in (a), (b), (d) and (g) of the definition thereof. 

“Fronting Bank” means Wells Fargo, in its capacity as issuer of Participated Letters of Credit, together with its
respective successors and permitted assigns in such capacity. 
 “Fronting Exposure” means, at any time there
is a Defaulting Lender, such Defaulting Lender’s Letter of Credit Exposure with respect to Letters of Credit issued by the Fronting Bank other than such portion of such Defaulting Lender’s Letter of Credit Exposure as to which such
Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with Section 2.20. 
 “Fund” means any Person (other than a natural person) that is or will be engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit
in the ordinary course of its business. 
 “GAAP” means generally accepted accounting principles in the United
States of America as in effect from time to time. 
 “Governmental Authority” means any federal, state,
municipal, national or other government, governmental department, commission, board, bureau, court, agency or instrumentality or political subdivision thereof or any entity, officer or examiner exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to any government or any court, in each case whether associated with a state of the United States, the United States, or a foreign entity or government (including any supra-national bodies such as the
European Union or the European Central Bank). 
 “Guaranty” of or by any Person (the
“guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Debt of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, and 

  
 11 

 
including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or to advance or supply funds for the purchase or payment of) such Debt or to purchase (or to advance
or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease Property or services for the purpose of assuring the owner of such Debt or other obligation of the payment thereof, or (c) to maintain
working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Debt or other obligation or as an account party in respect of any letter of credit or
letter of guarantee issued to support such Debt; provided that the term “Guaranty” shall not include (i) endorsements for collection or deposit in the ordinary course of business or (ii) credit insurance or payment
obligations under insurance policies or surety bonds issued by the Borrower and its Subsidiaries in the ordinary course of business. 
 “Hedge Agreement” means any interest or foreign currency rate swap, cap, collar, option, hedge, forward rate or other similar agreement or arrangement designed to protect against
fluctuations in interest rates or currency exchange rates. 
 “HIC” means The Hanover Insurance Company, a
property and casualty insurance company organized under the laws of New Hampshire as a corporation. 
 “Hybrid
Securities” means securities (i) that afford equity benefit to the issuer thereof (under the procedures and guidelines of Standard & Poor’s) by having ongoing payment requirements that are more flexible than interest
payments associated with conventional indebtedness for borrowed money and by being contractually subordinated to such indebtedness and (ii) that require no repayments or prepayments and no mandatory redemptions or repurchases, in each case,
prior to 91 days after the Commitment Termination Date. 
 “Immediate Family Member” means with respect to any
individual, such individual’s child, stepchild, grandchild or more remote descendant, parent, stepparent, grandparent, spouse, former spouse, qualified domestic partner, sibling, mother-in-law, father-in-law, son-in-law and daughter-in-law
(including adoptive relationships) and any trust, partnership or other bona fide estate-planning vehicle the only beneficiaries of which are any of the foregoing individuals or any private foundation or fund that is controlled by any of the
foregoing individuals or any donor-advised fund of which any such individual is the donor. 
 “Increased Commitment
Date” has the meaning specified in Section 2.05(b). 
 “Indemnified Party” has the meaning
specified in Section 8.04(b). 
 “Insurance Regulatory Authority” means, for any Insurance
Subsidiary, the insurance department or similar administrative authority or agency located in the state or other jurisdiction in which such Insurance Subsidiary is domiciled (including “commercially domiciled” as that term is defined under
relevant state law), including, for the avoidance of doubt, the Society and Corporation of Lloyd’s. 
 “Insurance
Subsidiary” means a Subsidiary of the Borrower that is licensed to do an insurance or reinsurance business. 

  
 12 

 “Interest Period” means, with respect to any Eurodollar Loan, the period
beginning on the date such Eurodollar Loan is made or Continued, or Converted from an ABR Loan, and ending on the last day of the period selected by the Borrower pursuant to the provisions below. The duration of each Interest Period shall be one,
two, three, six, or with the consent of the Administrative Agent, other periods (provided that any such other period is available to all Lenders) as the Borrower may, upon notice received by the Administrative Agent not later than 11:00 A.M.
(Charlotte, North Carolina time) on the third Business Day prior to the first day of such Interest Period, select; provided that: 
 (i) the Borrower may not select any Interest Period that ends after the Commitment Termination Date; 
 (ii) each Interest Period that begins on the last Business Day of a calendar month (or on any day for which there is no numerically corresponding day in the appropriate subsequent calendar month) shall
end on the last Business Day of the appropriate subsequent calendar month; and 
 (iii) whenever the last day of
any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided that, if such extension would cause the last day of such
Interest Period to occur in the next following calendar month, the last day of such Interest Period shall occur on the next preceding Business Day. 
 “IRS” has the meaning specified in Section 2.14(e). 

“Issue” means, with respect to any Letter of Credit, to issue, to amend in a manner which extends the expiry of, or to
renew or increase the Stated Amount of, such Letter of Credit; and the terms “Issued”, “Issuing” and “Issuance” have corresponding meanings, provided that the term “Issue” shall not
include the automatic renewal of a Letter of Credit in accordance with its terms. 
 “Issuing Bank” means,
(i) with respect to any Participated Letter of Credit, the Fronting Bank and (ii) with respect to a Syndicated Letter of Credit, each Lender in its capacity as the issuer of such Syndicated Letter of Credit. 

“L/C Advance” has the meaning specified in Section 2.03(b)(v). 

“L/C Agent” means Wells Fargo, and its successors and permitted assigns in such capacity. 

“L/C Disbursement” means (i) with respect to any Participated Letter of Credit, a payment made by the Fronting Bank
pursuant thereto and (ii) with respect to any Syndicated Letter of Credit, a payment made by a Lender pursuant thereto. 

“L/C Disbursement Date” means, with respect to each L/C Disbursement made under any Letter of Credit, if the Borrower
receives notice from the Administrative Agent of any L/C Disbursement prior to 12:00 p.m., Charlotte, North Carolina time, on any Business Day, such Business Day and if such notice is received after 12:00 p.m., Charlotte, North Carolina time, on any
Business Day, the following Business Day. 

  
 13 

 “Lead Arrangers” means Wells Fargo Securities, LLC and Barclays Capital,
the investment banking division of Barclays Bank PLC, as joint lead arrangers and joint lead bookrunners in connection herewith. 
 “Lenders” means the Lenders listed on the signature pages hereof and each Person that shall become a party hereto as a “Lender” pursuant to Sections 2.05 or 8.06.

 “Letter of Credit” means any standby letter of credit Issued hereunder, whether Issued as a Syndicated
Letter of Credit or Participated Letter of Credit, and “Letters of Credit” means all of the foregoing. 

“Letter of Credit Documents” means, with respect to any Letter of Credit, collectively, such Letter of Credit and any
application therefor and any other documents attached thereto. 
 “Letter of Credit Exposure” means, at any
time for each Lender, such Lender’s Ratable Share of the amount equal to the sum of (i) the aggregate Stated Amount of all outstanding Letters of Credit and (ii) the aggregate amount of all outstanding Reimbursement Obligations
at such time. 
 “Letter of Credit Fee” has the meaning set forth in Section 2.04(d). 

“Letter of Credit Notice” means a Syndicated Letter of Credit Notice or a Participated Letter of Credit Notice, as the
context may require. 
 “Letter of Credit Subcommitment” means $50,000,000 or, if less, the aggregate
Commitments at the time of determination, as such amount may be reduced at or prior to such time pursuant to the terms hereof. 

“Leverage Ratio” means, at any time, the ratio of (i) Modified Total Debt to (ii) Total Capitalization.

 “Lien” means any lien, security interest or other charge or encumbrance of any kind, or any other type of
preferential arrangement, including, without limitation, the lien or retained security title of a conditional vendor. 

“Loan” has the meaning set forth in Section 2.01(a). 

“Loan Documents” means this Agreement, any Notes, the Letter of Credit Documents, and the Fee Letters, in each case as
amended, modified, supplemented or restated from time to time. 
 “London Banking Day” shall mean any day on
which commercial banks are open for business (including dealings in foreign exchange and foreign currency deposits) in London. 

  
 14 

 “Majority Lenders” means, at any time, Lenders whose Commitments (or, after
the termination of the Commitments, Credit Exposure) represent more than 50%, at such time, of the aggregate Commitments (or, after the termination of the aggregate Commitments, the aggregate Credit Exposure at such time); provided, that the
Commitment of, and the portion of the outstanding Credit Exposure held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Majority Lenders. 

“Margin Stock” means margin stock within the meaning of Regulation U. 

“Material Adverse Change” or “Material Adverse Effect” means a material adverse change in or effect on
(i) the business, financial condition or results of operations of the Borrower and its Subsidiaries, taken as a whole, or (ii) the ability of the Borrower to perform its obligations under this Agreement, or (iii) the legality,
validity or enforceability of this Agreement. 
 “Material Debt” has the meaning specified in
Section 6.01(d). 
 “Material Insurance Subsidiary” means any of CIC, HIC and CSL and any other
Insurance Subsidiary that constitutes a Material Subsidiary. 
 “Material Subsidiary” means any Subsidiary of
the Borrower, other than any Subsidiary the book value of whose assets do not constitute more than 5% of the book value (determined on a Consolidated basis) of the total assets of the Borrower and its Subsidiaries. 

“Modified Total Debt” means, at any time, the sum of the following: 

(a) Total Debt plus 
 (b) Without duplication, the amount (if any) by which (i) the aggregate outstanding amount of all Hybrid Securities that is attributed to Net Worth pursuant to clause (b) of the definition of
“Net Worth” plus (ii) the portion of all Preferred Securities issued by the Borrower or any Subsidiary that is deemed to constitute equity, as determined in accordance with Standard & Poor’s methodology at such
time plus (iii) the portion of all Disqualified Equity Interests issued by the Borrower or any Subsidiary that is deemed to constitute equity, as determined in accordance with Standard & Poor’s methodology at such time,
exceeds 15% of Total Capitalization. 
 “Moody’s” means Moody’s Investors Service, Inc. and its
successors. 
 “Moody’s Rating” means, at any time, the rating of the Borrower’s senior, unsecured,
non-credit-enhanced, long-term debt obligations then outstanding most recently announced by Moody’s. 

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

“NAIC” means the National Association of Insurance Commissioners or any successor thereto, or in lieu thereof, any other
association, agency or other organization performing 

  
 15 

 
substantially similar advisory, coordination or other like functions among insurance departments, insurance commissions and similar governmental authorities of the various states of the United
States of America toward the promotion of uniformity in the practices of such governmental authorities. 
 “Net Equity
Proceeds” means, with respect to any Equity Issuance, the aggregate amount of all cash received by the Borrower and its Subsidiaries in respect of such Equity Issuance net of all reasonable fees and expenses incurred by the Borrower and its
Subsidiaries in connection therewith. 
 “Net Worth” means, at any time, the sum of the following for the
Borrower and its Subsidiaries (determined on a Consolidated basis without duplication in accordance with GAAP): 
 (a) total
shareholders’ equity of the Borrower determined in accordance with GAAP; provided that the net unrealized appreciation and depreciation of securities that are classified as available for sale and are subject to ASC 320 shall be excluded,
plus 
 (b) without duplication of clauses (c) and (d) hereof, solely for purposes of determining “Total
Capitalization” the portion of all outstanding Hybrid Securities that is deemed to constitute equity, as determined in accordance with Standard & Poor’s methodology at such time, minus 

(c) without duplication of clauses (b) and (d) hereof, solely for purposes of determining “Total Capitalization” the
portion of all outstanding Preferred Securities that is deemed to constitute indebtedness, as determined in accordance with Standard & Poor’s methodology at such time, minus 

(d) without duplication of clauses (b) and (c) hereof, solely for purposes of determining “Total Capitalization” the
portion of all outstanding Disqualified Equity Interests that is deemed to constitute indebtedness, as determined in accordance with Standard & Poor’s methodology at such time. 

“Non-Public Information” means information which has not been disseminated in a manner making it available to investors
generally, within the meaning of Regulation FD. 
 “Note” has the meaning specified in
Section 2.18. 
 “Notice Date” has the meaning specified in Section 2.05(c)(ii).

 “Notice of Borrowing” has the meaning specified in Section 2.02(a). 

“Obligations” means all principal of and interest (including interest accruing after the filing of a petition or
commencement of a case by or with respect to the Borrower seeking relief under any applicable Debtor Relief Law, whether or not the claim for such interest is allowed in such proceeding) on the Loans and Reimbursement Obligations and all fees,
expenses, indemnities and other obligations owing, due or payable at any time by the Borrower to the Administrative Agent, any Lender, the Fronting Bank, the L/C Agent, the Issuing Banks or any

  
 16 

 
other Person entitled thereto, under this Agreement or any of the other Loan Documents, in each case whether direct or indirect, joint or several, absolute or contingent, matured or unmatured,
liquidated or unliquidated, secured or unsecured, and whether existing by contract, operation of law or otherwise. 

“Other Taxes” has the meaning specified in Section 2.14(b). 

“PATRIOT Act” means The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56 (signed into law October 26, 2001)). 

“PBGC” means the Pension Benefit Guaranty Corporation or any successor. 

“Participant” has the meaning specified in Section 8.06(d). 

“Participant Register” has the meaning specified in Section 8.06(d). 

“Participated L/C Honor Date” has the meaning specified in Section 2.03(b)(vi). 

“Participated L/C Non-Extension Notice Date” has the meaning specified in Section 2.03(b)(iii). 

“Participated Letter of Credit Notice” has the meaning given to such term in Section 2.03(b)(ii).

 “Participated Letters of Credit” means Letters of Credit issued by the Fronting Bank under
Section 2.03(b)(i). 
 “Permitted Liens” means any of the following Liens: 

(a) Liens imposed by any governmental authority for taxes, assessments or charges not yet due or that are being contested in good faith
and by appropriate proceedings; 
 (b) carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s, construction contractors’ or other like Liens arising in the ordinary course of business that are not overdue for a period of more than 60 days or that are being contested in good faith and by appropriate proceedings and
Liens securing judgments or orders for the payment of money but only to the extent not resulting in an Event of Default under Section 6.01(g) hereof; 
 (c) pledges or deposits made (i) in connection with, or to secure payment of, worker’s compensation, unemployment insurance, old age pensions, other social security legislation and other
statutory obligations and in each case in compliance therewith, (ii) to secure in the ordinary course of business the performance of bids, tenders, contracts or leases, (iii) to secure statutory obligations, surety and customs bonds,
performance bonds and other obligations of a like nature (including those to secure health, safety and environmental obligations) in the ordinary course of business, (iv) to secure stay and appeal bonds, (v) to secure indemnity,
performance or other similar bonds in the ordinary course of business, or (v) in connection with contested amounts in the ordinary course of business; 

  
 17 

 (d) encumbrances in the nature of (i) easements, (ii) rights-of-way,
(iii) zoning restrictions or similar laws or rights reserved to or vested in any Governmental Authority to control or regulate the use of any real property, (iv) leases and subleases (other than any capital leases or synthetic leases), and
licenses and sublicenses, (v) encroachments, protrusions and other similar encumbrances and restrictions on the use of real property or minor imperfections in title thereto, (vi) landlords’ and lessors’ Liens on rented premises,
and (vii) restrictions on transfers or assignment of leases, which in each case do not secure monetary obligations and do not in any case materially detract from the value of the property subject thereto or interfere with the ordinary conduct
of the business of the Borrower or any of its Subsidiaries; 
 (e) Liens arising under escrows, trusts, custodianships, separate
accounts, funds withheld procedures, and similar deposits, arrangements, or agreements established with respect to insurance or reinsurance policies, annuities, guaranteed investment contracts and similar products underwritten by, or Reinsurance
Agreements entered into by, the Borrower or any Insurance Subsidiary in the ordinary course of business; 
 (f) deposits with
Insurance Regulatory Authorities; 
 (g) Liens securing obligations under letters of credit issued for the benefit of Insurance
Regulatory Authorities and letters of credit issued in support of funds at the Society and Corporation of Lloyd’s requirements, including as permitted under Section 5.03(a)(xiv); 

(h) Liens granted in connection with Securitization Transactions; 

(i) Liens on Property of any corporation that becomes a Subsidiary of the Borrower after the date hereof, provided that such Liens are in
existence at the time such corporation becomes a Subsidiary of the Borrower and were not created in anticipation thereof; 
 (j)
Liens upon real and/or tangible personal Property acquired after the date hereof (by purchase, construction or otherwise) by the Borrower or any of its Subsidiaries, each of which Liens either (A) existed on such Property before the time of its
acquisition and was not created in anticipation thereof or (B) was created solely for the purpose of securing Debt representing, or incurred to finance, refinance or refund, the cost (including the cost of construction) of such Property,
provided that no such Lien shall extend to or cover any Property of the Borrower or such Subsidiary other than the Property so acquired and improvements thereon; 
 (k) Liens on securities or financial instruments arising out of repurchase agreements with respect to securities and financial instruments having an aggregate fair market value of not more than
$100,000,000 and entered into in the ordinary course of business and on ordinary business terms; 
 (l) the sale of delinquent
accounts receivable for collection in the ordinary course of business; 
 (m) Liens in existence on the date hereof and set
forth in Schedule II (and any extension, renewal or replacement thereof permitted under Section 5.03(a)(xv)); 

  
 18 

 (n) Liens in favor of a Federal Home Loan Bank to secure borrowings from such Federal Home
Loan Bank in the ordinary course of business and on ordinary business terms pursuant to a membership in such Federal Home Loan Bank; 
 (o) Liens on deposits made in connection with the discharge, defeasance or redemption of Debt; 
 (p) Liens securing Debt permitted under Section 5.03(a)(v); 
 (q)
Liens (i) of a collection bank arising under Section 4-208 of the Uniform Commercial Code on the items in the course of collection and (ii) in favor of a banking or other financial institution arising as a matter of law or under
customary contractual provisions encumbering deposits or other funds maintained with such banking or other financial institution (including the right of set off and grants of security interests in deposits and/or securities held by such banking or
other financial institution) and that are within the general parameters customary in the banking industry; 
 (r) Liens deemed
to exist in connection with reasonable customary initial deposits, margin deposits and similar Liens attaching to brokerage accounts maintained in the ordinary course of business and not for speculative purposes; 

(s) Liens arising from Uniform Commercial Code financing statements or similar filings that have not been authorized by the Borrower or a
Subsidiary of the Borrower; 
 (t) Liens solely on any cash earnest money deposits made by the Borrower or any of its
Subsidiaries in connection with any letter of intent or purchase agreement, provided that any such Lien is in existence for a period of no longer than one year; 
 (u) Liens on insurance policies and the proceeds thereof securing the financing of the premiums with respect thereto; 
 (v) Customary rights of first refusal and tag, drag and similar rights relating to the sale of equity in joint venture agreements and franchise agreements entered into in the ordinary course of business;
and 
 (w) Liens securing Debt in an aggregate principal amount at any time outstanding not to exceed $25,000,000. 

“Person” means an individual, partnership, corporation (including a business trust), limited liability company, joint
stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. 
 “Plan” means an employee benefit or other plan established or maintained by the Borrower or any ERISA Affiliate and that is covered by Title IV of ERISA, including a Multiemployer Plan.

 “Platform” has the meaning specified in the final paragraph of Section 5.01(a). 

  
 19 

 “Preferred Securities” of any Person shall mean any preferred Equity
Interests (or capital stock) of such Person that (i) have preferential rights with respect to dividends or redemptions or upon liquidation or dissolution of such Person over shares of common Equity Interests (or capital stock) of any other
class of such Person and (ii) that require no repayments or prepayments and no mandatory redemptions or repurchases, in each case, prior to 91 days after the Commitment Termination Date. 

“Prime Rate” means, at any time, the rate of interest per annum publicly announced from time to time by the
Administrative Agent as its prime rate. The parties hereto acknowledge that the rate announced publicly by the Administrative Agent as its prime rate is an index or base rate and shall not necessarily be its lowest or best rate charged to its
customers or other banks. The Administrative Agent shall notify the Borrower of any change in its prime rate. 

“Property” of any Person means any property or assets, or interest therein, of such Person. 

“Public Lenders” means the Lenders that do not wish to receive material non-public information with respect to the
Borrower, its Subsidiaries or their securities. 
 “RBC Ratio” of any Person means, at any time, the ratio of
(i) “Total Adjusted Capital” of such Person to (ii) the amount equal to (x) “Authorized Control Level Risk-Based Capital” of such Person multiplied by (y) 2, as such terms are defined by the
Insurance Regulatory Authority of the State in which such Person is incorporated, as amended from time to time. Using the annual SAP Financial Statements form prescribed by the NAIC Risk-Based Capital (RBC) for Insurers Model Act for the year ended
December 31, 2010 (the “Convention Blank”), the RBC Ratio as of December 31, 2010 is equal to the quotient of (a) the amount that appears on line 28 on page 17 of the Convention Blank divided by (b) the
amount equal to (x) the amount that appears on line 29 on page 17 of the Convention Blank multiplied by (y) 2. 

“Ratable Share” of any amount means, at any time for each Lender, a percentage obtained by dividing such Lender’s
Commitment at such time by the aggregate Commitments then in effect, provided that, if the Commitment Termination Date has occurred, the Ratable Share of each Lender shall be determined by dividing such Lender’s Credit Exposure by the
aggregate Credit Exposure of all Lenders then outstanding. 
 “Register” has the meaning specified in
Section 8.06(c). 
 “Regulation D” means Regulation D issued by the Board of Governors of the
Federal Reserve System, as from time to time amended. 
 “Regulation FD” means Regulation FD as promulgated by
the U.S. Securities and Exchange Commission under the Securities Act of 1933 and the Securities and Exchange Act of 1934 as in effect from time to time. 
 “Regulations T, U and X” means Regulations T, U and X issued by the Board of Governors of the Federal Reserve System, as from time to time amended. 

  
 20 

 “Reimbursement Obligations” means the obligation of the Borrower to
reimburse the applicable Issuing Banks for any payment actually made by such Issuing Banks under any Letter of Credit, together with interest thereon payable as provided herein. 

“Reinsurance Agreement” means any agreement, contract, treaty or other arrangement whereby other insurers assume
insurance from the Borrower or any Insurance Subsidiary. 
 “Requirement of Law” means, with respect to any
Person, the charter, articles or certificate of organization or incorporation and bylaws or other organizational or governing documents of such Person, and any statute, law, treaty, rule, regulation, order, decree, writ, injunction or determination
of any arbitrator or court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject or otherwise pertaining to any or all of the
transactions contemplated by this Agreement and the other Loan Documents. 
 “Responsible Officer” of the
Borrower means the President, the Chief Executive Officer, the Chief Financial Officer, the Treasurer, any Executive Vice President, any Senior Vice President, or any Vice President of the Borrower. 

“Restricted Payments” means (a) any cash dividend or other distribution in cash with respect to any Equity
Interests in any Person, or any cash payment, including any sinking fund or similar cash deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in such Person or any option,
warrant or other right to acquire any such Equity Interests in such Person and (b) any prepayment, redemption, purchase, defeasance or other satisfaction prior to the scheduled maturity thereof in any manner of any Debt of any Person (it being
understood that payments of regularly scheduled principal and interest payments shall not constitute a Restricted Payment). 

“Reuters Page LIBOR01” means Reuters Page LIBOR01 or such other page as may replace that page on that service for the
purpose of displaying London interbank offered rates of major banks. 
 “SAP” means the accounting procedures
and practices prescribed or permitted by the applicable Insurance Regulatory Authority. 
 “Securitization
Transaction” means any transaction or series of transactions that may be entered into by the Borrower or any of its Subsidiaries pursuant to which the Borrower or such Subsidiary, as the case may be, may sell, convey or otherwise transfer
assets to any special purpose, bankruptcy-remote Subsidiary in a true sale transaction, provided that there shall be no recourse under any such securitization to the Borrower or any of its other Subsidiaries other than pursuant to Standard
Securitization Undertakings. 
 “Solvent” means, with respect to any Person at any time, that (a) the fair
value of the Property of such Person is greater than the total amount of liabilities (including without limitation contingent liabilities) of such Person, (b) the present fair saleable value of the Property of such Person is not less than the
amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such
Person’s ability to pay 

  
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as such debts and liabilities mature, and (d) such Person is not engaged in a business and is not about to engage in a business for which such Person’s Property would constitute an
unreasonably small capital. 
 “Standard & Poor’s” means Standard & Poor’s Ratings
Service, presently a division of The McGraw-Hill Companies, Inc., and its successors. 
 “Standard &
Poor’s Rating” means, at any time, the rating of the Borrower’s senior, unsecured, non-credit enhanced, long-term debt obligations then outstanding most recently announced by Standard & Poor’s. 

“Standard Securitization Undertakings” means representations, warranties, covenants and indemnities entered into by the
Borrower or any Subsidiary in connection with any Securitization Transaction that are customary in non-recourse securitization transactions of comparable assets. 
 “Stated Amount” means, with respect to any Letter of Credit at any time, the aggregate amount available to be drawn thereunder at such time (regardless of whether any conditions for
drawing could then be met). 
 “Statutory Statement” means, as to any Material Insurance Subsidiary, a
statement of the condition and affairs of such Material Insurance Subsidiary, prepared in accordance with SAP, and filed with the applicable Insurance Regulatory Authority. 
 “Subsidiary” means, with respect to any Person, any other Person of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting
power to elect a majority of the board of directors or other persons performing similar functions of such other Person (irrespective of whether or not at the time securities or other ownership interests of any other class or classes of such other
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 such Person or one or more Subsidiaries of such first Person or by such first Person and one or
more Subsidiaries of such first Person. For the avoidance of doubt, any Lloyd’s syndicate which is not a legal entity and has no power to enter into contracts or other binding obligations shall not be deemed to be a Subsidiary of the Borrower.

 “Syndicated L/C Honor Date” has the meaning specified in Section 2.03(a)(vii). 

“Syndicated L/C Non-Extension Notice Date” has the meaning specified in Section 2.03(a)(iii). 

“Syndicated Letter of Credit Notice” has the meaning given to such term in Section 2.03(a)(ii). 

“Syndicated Letters of Credit” means Letters of Credit issued under Section 2.03(a)(i). 

“Taxes” has the meaning specified in Section 2.14(a). 

“Total Capitalization” means, at any time, the sum of (a) Total Debt plus (b) Net Worth. 

  
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 “Total Debt” means, at any time, an amount equal to the aggregate
outstanding principal amount of Debt of the Borrower and its Subsidiaries of the kinds set forth in clauses (a) through (g) of the definition of Debt determined on a Consolidated basis without duplication in accordance with GAAP, but
without giving effect to any election under the Statement of Financial Accounting Standards No. 159 (ASC 825) (or any similar accounting principle) permitting a Person to value its financial liabilities or indebtedness at the fair value
thereof; provided, that solely for purposes of determining “Total Debt,” (i) without duplication of clauses (ii) and (iii) hereof, the outstanding principal amount of Debt attributed to any Hybrid Security shall be
deemed equal to the portion of such Hybrid Security that is deemed to constitute indebtedness, as determined in accordance with Standard & Poor’s methodology at such time, (ii) without duplication of clauses (i) and
(iii) hereof, the outstanding principal amount of Debt attributed to any Disqualified Equity Interest shall be deemed equal to the portion of such Disqualified Equity Interest that is deemed to constitute indebtedness, as determined in
accordance with Standard & Poor’s methodology at such time and (iii) without duplication of clauses (i) and (ii) hereof, the outstanding principal amount of Debt attributed to any Preferred Security shall be deemed equal
to the portion of such Preferred Security that is deemed to constitute indebtedness, as determined in accordance with Standard & Poor’s methodology at such time. 
 “Type” refers to whether a Loan is an ABR Loan or a Eurodollar Loan. 
 “UKGAAP” means generally accepted accounting principles in the United Kingdom as in effect from time to time. 
 “Unreimbursed Amount” has the meaning specified in Section 2.03(a)(vii). 
 “Voting Shares” means, with respect to any Person at any time, Equity Interests entitling the holder thereof to vote generally in an election of directors or other individuals performing
similar functions. 
 “Wells Fargo” means Wells Fargo Bank, National Association. 

“Wholly-Owned Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company or
other entity of which all of the equity securities or other ownership interests (other than, in the case of a corporation, directors’ qualifying shares) are directly or indirectly owned or Controlled by such Person or one or more Wholly-Owned
Subsidiaries of such Person or by such Person and one or more Wholly-Owned Subsidiaries of such Person. 
 “Withdrawal
Liability” has the meaning specified in Part 1 of Subtitle E of Title IV of ERISA. 
 Section 1.02 Terms
Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. In the computation of periods of time from a specified date to a later specified date, the word “from” means
“from and including” and the words “to” and “until” mean “to but excluding”. 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 

  
 23 

 
requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such
Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import shall be construed to refer to this Agreement in its entirety and not to any particular provision
hereof, and (d) all references herein to Articles, Sections, Annexes, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement. 

Section 1.03 Captions. The table of contents, captions, and section headings appearing herein are included solely for
convenience of reference and are not intended to affect the interpretation of any provision of this Agreement. 

Section 1.04 Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP, as in effect from time to time; provided, that if the Borrower notifies the Administrative Agent that it requests an amendment to any provision hereof to eliminate the effect of any change occurring
after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Majority Lenders request an amendment to any provision hereof for such purpose), regardless
of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision amended in accordance herewith. To enable the ready and consistent determination of compliance with the covenants set forth in Section 5.02, the Borrower will cause the last
day of its fiscal year to be December 31. 
 ARTICLE 2 

AMOUNTS AND TERMS OF THE LOANS 
 Section 2.01 Commitments and Borrowings. 
 (a) The Lenders severally
agree, on and subject to the terms and conditions of this Agreement, to make Loans to the Borrower (each a “Loan” and, collectively, the “Loans”) from time to time on any Business Day during the period from the
Closing Date to but excluding the Commitment Termination Date in Dollars in an aggregate amount not to exceed their respective Commitments, provided that (i) the aggregate Credit Exposure shall not at any time exceed the aggregate
Commitments and (ii) the Credit Exposure of any Lender shall not at any time exceed such Lender’s Commitment. 
 (b)
Each Borrowing and each Conversion or Continuation thereof (i) shall be in an aggregate amount not less than $10,000,000 or an integral multiple of $1,000,000 in excess thereof and (ii) shall consist of Loans of the same Type (and, if such
Loans are Eurodollar Loans, having the same Interest Period) made, Continued or Converted on the same day by the Lenders ratably according to their respective Commitments. 

  
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 (c) Within the limits of each Lender’s Commitment, the Borrower may from time to time
borrow, prepay pursuant to Section 2.10 and reborrow Loans under this Section 2.01, and may obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed. 

Section 2.02 Making the Loans. 
 (a) (i) Each Borrowing shall be made on notice, given not later than 11:00 A.M. (Charlotte, North Carolina time) on the third Business Day prior to the date of such Borrowing (in the case of a Borrowing
consisting of Eurodollar Loans) or given not later than 11:00 A.M. (Charlotte, North Carolina time) on the Business Day of such Borrowing (in the case of a Borrowing consisting of ABR Loans), by the Borrower to the Administrative Agent, which
shall give to each Lender prompt notice thereof. 
 (ii) Each such notice of a Borrowing (a “Notice of
Borrowing”) shall be in substantially the form of Exhibit A, specifying therein the requested (i) date of such Borrowing, (ii) Type of Loans comprising such Borrowing, (iii) aggregate amount of such Borrowing, and
(iv) in the case of a Borrowing consisting of Eurodollar Loans, initial Interest Period for each such Loan. There shall not be more than ten (10) Interest Periods outstanding at any time. 

(iii) Each Lender shall, before 2:00 P.M. (Charlotte, North Carolina time) on the date of such Borrowing, make available
for the account of its Applicable Lending Office to the Administrative Agent at its address referred to in Section 8.02, in immediately available funds, such Lender’s ratable portion of such Borrowing. 

(iv) After the Administrative Agent’s receipt of such funds and subject to fulfillment of the applicable conditions
set forth in ARTICLE 3, the Administrative Agent will make such funds available to the Borrower at the Administrative Agent’s aforesaid address. 
 (b) Each Notice of Borrowing shall be irrevocable and binding on the Borrower. In the case of any Borrowing which the related Notice of Borrowing specifies is to be comprised of Eurodollar Loans, the
Borrower shall indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any failure to make such Borrowing (including, without limitation, as a result of any failure to fulfill, on or before the date specified
in such Notice of Borrowing, the applicable conditions set forth in ARTICLE 3) and the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the Loan to be made by such Lender as part of such Borrowing. A
certificate as to the amount of such losses, costs and expenses, submitted to the Borrower and the Administrative Agent by such Lender, shall be conclusive and binding for all purposes, absent manifest error. 

(c) Unless the Administrative Agent shall have received notice from a Lender prior to the date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender’s Ratable Share of such Borrowing, the Administrative Agent may assume that such Lender has made such Ratable Share available to the Administrative Agent on the date of such Borrowing in
accordance with clause (a) of this Section 2.02 and the Administrative Agent may, 

  
 25 

 
in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If and to the extent that such Lender shall not have so made such Ratable Share available to
the Administrative Agent, such Lender and the Borrower severally agree to repay to the Administrative Agent forthwith on demand (but without duplication) such corresponding amount together with interest thereon, for each day from the date such
amount is made available to the Borrower until the date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrower, the interest rate applicable at the time to Loans comprising such Borrowing and (ii) in the case
of such Lender, the Federal Funds Rate. If such Lender shall repay to the Administrative Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Loan as part of such Borrowing for purposes of this Agreement (and
such Loan shall be deemed to have been made by such Lender on the date on which such amount is so repaid to the Administrative Agent). 
 (d) The failure of any Lender to make the Loan to be made by it as part of any Borrowing shall not relieve the other Lenders of their obligations hereunder to make a Loan on the date of such Borrowing,
and no Lender shall be responsible for the failure of any other Lender to make the Loan to be made by such other Lender on the date of any Borrowing. The amounts payable at any time hereunder to each Lender shall be a separate and independent debt
and each Lender shall be entitled to protect and enforce its rights under this Agreement, and it shall not be necessary for any other Lender to be joined as an additional party in any proceedings for such purpose. 

Section 2.03 Letters of Credit. 
 (a) Syndicated Letters of Credit. 
 (i) General. The
Lenders severally agree, on and subject to the terms and conditions of this Agreement, to Issue Letters of Credit as Syndicated Letters of Credit for the account of the Borrower in Dollars from time to time on any Business Day during the period from
the Closing Date to but excluding the fifth Business Day prior to the Commitment Termination Date, provided that (i) the aggregate Credit Exposures shall not at any time exceed the aggregate Commitments, (ii) the Credit Exposure of
any Lender shall not at any time exceed such Lender’s Commitment and (iii) the aggregate Letter of Credit Exposure shall not exceed the Letter of Credit Subcommitment. Each Syndicated Letter of Credit shall be substantially in the form of
Exhibit C-1 or in such other form as may be agreed by the Borrower and the L/C Agent; provided that the L/C Agent will only agree to reasonable changes to such form that are not adverse in any material respect to the interests of the
Lenders. Absent the prior written consent of each Lender, no Syndicated Letter of Credit may be Issued that would vary the several and not joint nature of the obligations of the Lenders thereunder as provided in the next succeeding sentence. Each
Syndicated Letter of Credit shall be Issued by all of the Lenders acting through the L/C Agent, at the time of Issuance as a single multi-bank letter of credit, but the obligation of each Lender thereunder shall be several and not joint, in the
amount of its Ratable Share of the Stated Amount of such Syndicated Letter of Credit. 

  
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 (ii) Notice of Issuance. To request the Issuance of a Syndicated
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 L/C Agent) to the L/C Agent (which will promptly notify the Lenders) at least 3 Business
Days in advance of the requested date of Issuance (or such shorter period as is acceptable to the L/C Agent) a notice, signed by a Responsible Officer, in the form of Exhibit C-3 (a “Syndicated Letter of Credit Notice”),
requesting the Issuance of a Syndicated Letter of Credit, or identifying the Syndicated Letter of Credit to be amended, renewed, extended or increased, as the case may be, and specifying the date of Issuance (which shall be a Business Day), the date
on which such Syndicated Letter of Credit is to expire (which shall comply with Section 2.03(a)(iii)), the amount of such Syndicated Letter of Credit (which shall not be less than $100,000), the name and address of the beneficiary
thereof and the terms and conditions of (and such other information as shall be necessary to prepare, amend, renew, extend or increase, as the case may be) such Syndicated Letter of Credit, it being understood and agreed that Syndicated Letters of
Credit may be extended and renewed in accordance with Section 2.03(a)(iii). If requested by the L/C Agent, the Borrower shall submit a letter of credit application on the L/C Agent’s standard form (with such changes as the L/C Agent
shall reasonably deem appropriate) in connection with any request for a Syndicated Letter of Credit. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit
application submitted by the Borrower to the L/C Agent relating to any Syndicated Letter of Credit, the terms and conditions of this Agreement shall control. 
 (iii) Expiration of Syndicated Letters of Credit. Each Syndicated Letter of Credit shall expire at or prior to the earlier of (i) the close of business on the date one year after the date of
the issuance of such Syndicated Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension), or (ii) the fifth Business Day prior to the Commitment Termination Date; provided,
however, that at the Borrower’s request a Syndicated Letter of Credit shall provide by its terms, and on terms acceptable to the L/C Agent, for renewal for successive periods of one year or less (but not beyond the fifth Business Day
prior to the Commitment Termination Date) unless and until the L/C Agent shall have delivered prior written notice of nonrenewal to the beneficiary of such Syndicated Letter of Credit no later than the time specified in such Syndicated Letter of
Credit (the “Syndicated L/C Non-Extension Notice Date”), which the L/C Agent shall do only if (A) the L/C Agent has determined that it would not be permitted, or would have no obligation, at such time to issue such Letter of
Credit in its revised form (as extended) under the terms hereof, or (B) it has received notice (which may be by telephone or in writing) on or before the day that is five Business Days before the Syndicated L/C Non-Extension Notice Date
(1) from the Administrative Agent that the Majority Lenders have elected not to permit such extension or (2) from the Administrative Agent, any Lender or the Borrower that one or more of the applicable conditions specified in
Section 3.02 is not then satisfied, and in each such case directing the L/C Agent not to permit such extension. The L/C Agent shall promptly provide a copy of any such notice to the Borrower. 

(iv) Obligation of Lenders. The obligation of any Lender under any Syndicated Letter of Credit shall be several and
not joint and shall be in an amount equal 

  
 27 

 
to such Lender’s Ratable Share of the aggregate Stated Amount of such Syndicated Letter of Credit at the time such Syndicated Letter of Credit is Issued, and each Syndicated Letter of Credit
shall expressly so provide. No increase of Commitments under Section 2.05 or assignment of Commitments under Section 2.16 or Section 8.06(b) shall change or affect the liability of any Lender under any outstanding
Syndicated Letter of Credit until such Syndicated Letter of Credit is amended giving effect to such increase or assignment, as the case may be. The failure of any Lender to make any L/C Disbursement in respect of any Syndicated Letter of Credit on
any date shall not relieve any other Lender of its corresponding obligation, if any, hereunder to do so on such date, but no Lender shall be responsible for the failure of any other Lender to make its L/C Disbursement in respect of any Syndicated
Letter of Credit. 
 (v) Issuance Administration. Each Syndicated Letter of Credit shall be executed and
delivered by the L/C Agent in the name and on behalf of, and as attorney-in-fact for, each Lender party to such Syndicated Letter of Credit, and the L/C Agent shall act under each Syndicated Letter of Credit, and each Syndicated Letter of Credit
shall expressly provide that the L/C Agent shall act, as the agent of each such Lender to (i) execute and deliver such Syndicated Letter of Credit, (ii) receive drafts, other demands for payment and other documents presented by the
beneficiary under such Syndicated Letter of Credit, (iii) determine whether such drafts, demands and documents are in compliance with the terms and conditions of such Syndicated Letter of Credit, (iv) notify such Lender and the Borrower
that a valid drawing has been made and the date that the related L/C Disbursement is to be made and (v) exercise all rights held by the issuer of a letter of credit under the documents for which such Syndicated Letter of Credit shall provide
credit enhancement (or designate any Person as its representative for all such purposes under such documents); provided that the L/C Agent shall have no obligation or liability for any L/C Disbursement under such Syndicated Letter of Credit,
and each Syndicated Letter of Credit shall expressly so provide. Each Lender hereby irrevocably appoints and designates the L/C Agent as its attorney-in-fact, acting through any duly authorized officer, to execute and deliver in the name and on
behalf of such Lender each Syndicated Letter of Credit to be issued by such Lender hereunder and to take such other actions contemplated by this Section 2.03(a)(v). Promptly upon the request of the L/C Agent, each Lender will furnish to
the L/C Agent such powers of attorney or other evidence as any beneficiary of any Syndicated Letter of Credit may reasonably request in order to demonstrate that the L/C Agent has the power to act as attorney-in-fact for such Lender to execute and
deliver such Syndicated Letter of Credit. 
 (vi) Disbursement Procedures. The L/C Agent shall, within a
reasonable time following its receipt thereof (and, in any event, within any specific time specified in the text of the relevant Syndicated Letter of Credit), examine all documents purporting to represent a demand for payment under any Syndicated
Letter of Credit. The L/C Agent shall promptly after such examination and before such L/C Disbursement notify each applicable Issuing Bank and the Borrower by telephone (confirmed by telecopy or email) of such demand for payment. With respect to any
demand for payment made under a Syndicated Letter of Credit which the L/C Agent has informed the applicable Issuing Banks is valid, each such Issuing Bank will make an L/C Disbursement in respect of such Syndicated Letter of Credit promptly in
accordance with the amount of its liability under 

  
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such Syndicated Letter of Credit and this Agreement, such L/C Disbursement to be made to the account of the L/C Agent most recently designated by it for such purpose by notice to the Lenders. The
L/C Agent will make such L/C Disbursement available to the beneficiary of such Syndicated Letter of Credit by promptly crediting the amounts so received, in the funds so received, to the account identified by such beneficiary in connection with such
demand for such L/C Disbursement. Promptly following any L/C Disbursement by any Issuing Bank in respect of any Syndicated Letter of Credit, the L/C Agent will notify the Borrower of such L/C Disbursement. 

(vii) Reimbursement. The Borrower agrees that it shall reimburse the Lenders in respect of L/C Disbursements made
under the Borrower’s Syndicated Letter of Credit by paying to the Administrative Agent an amount in Dollars equal to the aggregate of the amount of each such L/C Disbursement no later than 2:00 p.m., Charlotte, North Carolina time, on the first
Business Day after the L/C Disbursement Date (the “Syndicated L/C Honor Date”) with respect to such Syndicated Letter of Credit together with interest thereon payable as provided herein. If the Borrower fails to so reimburse the
Lenders by such time of the amount of the unreimbursed drawing (the “Unreimbursed Amount”), so long as the conditions set forth in Section 3.02 (other than the delivery of a Notice of Borrowing) are satisfied and subject
to the amount of the unutilized portion of the Commitments, the Borrower shall be deemed to have requested a Borrowing of ABR Loans to be disbursed on the Syndicated L/C Honor Date in an amount equal to the Unreimbursed Amount, without regard to the
minimum and multiples specified in Section 2.01(b) for the principal amount of Borrowings, and the L/C Disbursements of each of the Issuing Banks shall be deemed to have satisfied their obligation fund their Ratable Share of such
Borrowing. 
 (b) Participated Letters of Credit. 

(i) General. The Fronting Bank agrees, on and subject to the terms and conditions of this Agreement and in reliance
upon the agreements of the Lenders set forth in this Section 2.03(b), to Issue Letters of Credit as Participated Letters of Credit for the account of the Borrower in Dollars from time to time on any Business Day during the period from
the Closing Date to but excluding the fifth Business Day prior to the Commitment Termination Date, provided that (i) the aggregate Credit Exposures shall not at any time exceed the aggregate Commitments, (ii) the Credit Exposure of
any Lender shall not at any time exceed such Lender’s Commitment and (iii) the aggregate Letter of Credit Exposure shall not exceed the Letter of Credit Subcommitment. Each Participated Letter of Credit shall be substantially in the form
of Exhibit C-2 or in such other form as may be agreed by the Fronting Bank; provided that the Fronting Bank and the Borrower will agree to reasonable changes to such form that are not adverse in any material respect to the interests of
the Lenders. 
 (ii) Notice of Issuance. To request the Issuance of a Participated 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 Fronting Bank) to the Fronting Bank at least 3 Business Days in advance of the requested date of Issuance (or
such shorter period as is acceptable to the Fronting Bank) a notice, signed by 

  
 29 

 
a Responsible Officer, in the form of Exhibit C-3 (a “Participated Letter of Credit Notice”), requesting the Issuance of a Participated Letter of Credit, or identifying
the Participated Letter of Credit to be amended, renewed, extended or increased as the case may be, and specifying the date of Issuance (which shall be a Business Day), the date on which such Participated Letter of Credit is to expire (which shall
comply with Section 2.03(b)(iii)), the amount of such Participated Letter of Credit (which shall not be less than $100,000), the name and address of the beneficiary thereof and such other information as shall be necessary to prepare,
amend, renew, extend or increase, as the case may be) such Participated Letter of Credit, it being understood and agreed that Participated Letters of Credit may be extended and renewed in accordance with Section 2.03(b)(iii). If
requested by the Fronting Bank, the Borrower shall submit a letter of credit application on the Fronting Bank’s standard form (with such changes as the Fronting Bank shall reasonably deem appropriate) in connection with any request for a
Participated Letter of Credit. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application submitted by the Borrower to the Fronting Bank relating to
any Participated Letter of Credit, the terms and conditions of this Agreement shall control. 
 (iii)
Expiration of Participated Letters of Credit. Each Participated Letter of Credit shall expire at or prior to the earlier of (i) the close of business on the date one year after the date of the issuance of such Participated Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension), or (ii) the fifth Business Day prior to the Commitment Termination Date; provided, however, that at the Borrower’s
request a Participated Letter of Credit shall provide by its terms, and on terms acceptable to the Fronting Bank, for renewal for successive periods of one year or less (but not beyond the fifth Business Day prior to the Commitment Termination Date)
unless and until the Fronting Bank shall have delivered prior written notice of nonrenewal to the beneficiary of such Participated Letter of Credit no later than the time specified in such Participated Letter of Credit, (the “Participated
L/C Non-Extension Notice Date”), which the Fronting Bank shall do only if (A) the Fronting Bank has determined that it would not be permitted, or would have no obligation, at such time to issue such Letter of Credit in its revised form
(as extended) under the terms hereof, or (B) it has received notice (which may be by telephone or in writing) on or before the day that is five Business Days before the Participated L/C Non-Extension Notice Date (1) from the Administrative
Agent that the Majority Lenders have elected not to permit such extension or (2) from the Administrative Agent, any Lender or the Borrower that one or more of the applicable conditions specified in Section 3.02 is not then
satisfied, and in each such case directing the Fronting Bank not to permit such extension. The Administrative Agent shall promptly provide a copy of any such notice to the Borrower. 

(iv) Participations. By the Issuance of a Participated Letter of Credit by the Fronting Bank and without any
further action on the part of the Fronting Bank or the Lenders, the Fronting Bank hereby grants to each applicable Lender in respect of such Participated Letter of Credit, and each such Lender hereby acquires from the Fronting Bank, participation in
such Participated Letter of Credit in an amount equal to the amount of such Lender’s Ratable Share of the Stated Amount of such Participated Letter of Credit and any drawings thereunder. Each Lender acknowledges and agrees that its

  
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obligation to acquire participations pursuant to this paragraph in respect of Participated Letters of Credit is absolute and unconditional and shall not be affected by any circumstance, including
(A) any setoff, counterclaim, recoupment, abatement, withholding, reduction, defense or other right which such Lender may have against the Fronting Bank, the Borrower or any other Person for any reason whatsoever; (B) the occurrence or
continuance of a Default or Event of Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing. In consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for account of the Fronting Bank, the amount of such Lender’s Ratable Share of each L/C Disbursement made by the Fronting Bank in respect of any Participated Letter of Credit promptly
upon the request of the Fronting Bank at any time from the time such L/C Disbursement is made until such L/C Disbursement is reimbursed by the Borrower or at any time after any reimbursement payment is required to be disgorged or refunded to the
Borrower for any reason. Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to Section 2.03(b)(v)(B), the Administrative Agent shall distribute such payment to the Fronting Bank or, to the
extent that any Lenders have made payments pursuant to this paragraph to reimburse the Fronting Bank, then to such Lenders and the Fronting Bank. Any payment made by a Lender pursuant to this paragraph to reimburse the Fronting Bank for any L/C
Disbursement made by it shall not relieve the Borrower of its obligation to reimburse such L/C Disbursement. Notwithstanding anything herein to the contrary, effective upon the increase or decrease of the Commitments pursuant to the terms of this
Agreement, each Lender’s participation in any Participated Letter of Credit outstanding on such date shall be adjusted to reflect its Ratable Share after giving effect to such increase or decrease. 

(v) Disbursement Procedures; Funding of Participations. 

(A) The Fronting Bank shall, within a reasonable time following its receipt thereof (and, in any event, within any time
specified in the text of the relevant Participated Letters of Credit issued by it), examine all documents purporting to represent a demand for payment under a Participated Letter of Credit. The Fronting Bank shall promptly after such examination
notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy or email) of such demand for payment and whether the Fronting Bank has made or will make a L/C Disbursement thereunder. If the Borrower shall fail to reimburse the
Fronting Bank for such L/C Disbursement on the date and time specified in Section 2.03(b)(vi) and, thereafter, the Borrower is unable to request a Borrowing of ABR Loans because it cannot satisfy each of the conditions set forth in
Section 3.02 or for any other reason, the Administrative Agent shall notify each applicable Lender of the applicable L/C Disbursement, the payment then due from the Borrower in respect thereof and the amount of such Lender’s Ratable
Share thereof. Each applicable Lender shall upon such notice make funds available in Dollars to the Administrative Agent for the account of the Fronting Bank in an amount equal to the amount of its Ratable Share of the unpaid L/C Disbursement (such
amount, its “L/C Advance”) not later than 2:00 p.m. on the Business Day specified in such notice by the Administrative Agent. No such making of an L/C 

  
 31 

 
Advance shall relieve or otherwise impair the obligation of the Borrower to reimburse the Fronting Bank for the amount of any payment made by such Fronting Bank under such Participated Letter of
Credit, together with interest as provided herein. 
 (B) If any Lender fails to make available to the
Administrative Agent for the account of the Fronting Bank any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.03(b)(v) by the time specified in Section 2.03(b)(vi), the
Fronting Bank shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is
immediately available to the Fronting Bank at a rate per annum equal to the Federal Funds Rate from time to time in effect. A certificate of the Fronting Bank submitted to any Lender (through the Administrative Agent) with respect to any amounts
owing under this clause (B) shall be conclusive absent manifest error. Until a Lender funds its L/C Advance pursuant to this Section 2.03(b)(v) to reimburse the Fronting Bank for any L/C Disbursement made by it, interest in respect
of such Lender’s L/C Advance shall be solely for the account of the Fronting Bank. 
 (vi)
Reimbursement. The Borrower agrees that it shall reimburse the Fronting Bank in respect of any L/C Disbursement made under the Borrower’s Participated Letter of Credit by paying to the Administrative Agent an amount in Dollars equal to
the amount of such L/C Disbursement no later than 2:00 p.m., Charlotte, North Carolina time, on the first Business Day after the L/C Disbursement Date (the “Participated L/C Honor Date”) with respect to such Participated Letter of
Credit together with interest thereon payable as provided herein. If the Borrower fails to so reimburse the Lenders by such time, the Administrative Agent shall promptly notify each Lender of the amount of the Unreimbursed Amount, and the amount of
such Lender’s Ratable Share thereof. In such event, the Borrower shall be deemed to have requested a Borrowing of ABR Loans to be disbursed on the Participated L/C Honor Date in an amount equal to the Unreimbursed Amount, without regard to the
minimum and multiples specified in Section 2.01(b) for the principal amount of Borrowings, but subject to the amount of the unutilized portion of the Commitments, and subject to the conditions set forth in Section 3.02 (other
than the delivery of a Notice of Borrowing), and each Lender shall fund its Ratable Share of such Borrowing as set forth in Section 2.02(a)(iii). If the Borrower is unable to request a Borrowing of ABR Loans because it cannot satisfy
each of the conditions set forth in Section 3.02 or for any other reason, each Lender shall fund its L/C Advances as set forth in Section 2.03(b)(v)(A). 

(vii) Repayment of Participations. 

(A) At any time after the Fronting Bank has made a payment under any Participated Letter of Credit and has received from
any Lender such Lender’s L/C Advance in respect of such payment in accordance with Section 2.03(b)(v), if the Administrative Agent receives for the account of the Fronting Bank any payment in respect of the related unpaid L/C
Disbursement or interest thereon (whether 

  
 32 

 
directly from the Borrower or otherwise, including proceeds of cash collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its Ratable
Share thereof (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s L/C Advance was outstanding) in the same funds as those received by the Administrative Agent. 

(B) If any payment received by the Administrative Agent for the account of the Fronting Bank pursuant to
Section 2.03(b)(vi) is required to be returned under any of the circumstances described in Section 2.19 (including pursuant to any settlement entered into by the Fronting Bank in its discretion), each Lender shall pay to the
Administrative Agent for the account of the Fronting Bank its Ratable Share thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per annum
equal to the Federal Funds Rate from time to time in effect. 
 (viii) Failure to Make L/C Advances. The
failure of any Lender to make the L/C Advance to be made by it on the date specified in Section 2.03(b)(v) or an ABR Loan as specified in Section 2.03(b)(vi) shall not relieve any other Lender of its obligation hereunder to
make its L/C Advance on such date, but no Lender shall be responsible for the failure of any other Lender to make the L/C Advance to be made by such other Lender on such date. 
 (c) Conditions Precedent to the Issuance of Letters of Credit. The Issuing Banks shall not be under any obligation to Issue any Letter of Credit if: 

(i) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or
restrain such Issuing Bank from issuing such Letter of Credit, or any Requirement of Law applicable to such Issuing Bank or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over such
Issuing Bank shall prohibit, or request that such Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such Issuing Bank with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which such Issuing Bank is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon such Issuing Bank any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which such Issuing Bank in good faith deems material to it; 
 (ii) the expiry
date of such requested Letter of Credit would occur after the fifth Business Day prior to the Commitment Termination Date, unless all the Lenders have approved such expiry date. 

(iii) the L/C Agent or the Fronting Bank, as the case may be, shall have delivered a Notice of Nonrenewal with respect to
such Letter of Credit; 

  
 33 

 (iv) such Issuing Bank has received written notice from the Administrative
Agent, any Lender or the Borrower that one or more of the applicable conditions specified in Section 3.02 is not then satisfied; 
 (v) the expiry date of such Letter of Credit would occur more than twelve months after the date of issuance or last extension unless the Majority Lenders have approved such expiry date; 

(vi) such Letter of Credit is not substantially in the form of Exhibit C-1 or Exhibit C-2 hereto, as the
case may be, or is not otherwise in form and substance reasonably acceptable to the Administrative Agent and the L/C Agent or Fronting Bank, as the case may be; provided that the Administrative Agent and, in respect of any change to a
Syndicated Letter of Credit, the L/C Agent, or in respect of any change to a Participated Letter of Credit, the Fronting Bank, can and will agree to reasonable changes to such form, not adverse to the interests of the Lenders, requested by any
beneficiary or applicable insurance regulator; 
 (vii) such Letter of Credit is denominated in a currency other
than Dollars; or 
 (viii) with respect to the issuance of a Participated Letter of Credit, a default of any
Lender’s obligations to fund under Section 2.03(b)(iv) exists or any Lender is at such time a Defaulting Lender, unless the Fronting Bank has entered into satisfactory arrangements, including the delivery of Cash Collateral,
satisfactory to the Fronting Bank (in its sole discretion) with the Borrower or such Lender to eliminate the Fronting Bank’s actual or potential Fronting Exposure (pursuant to and after giving effect to Section 2.20(a)(iii)) with
respect to the Defaulting Lender arising from either the Letter of Credit then proposed to be issued or that Letter of Credit and all other Letter of Credit Exposure as to which the Fronting Bank has actual or potential Fronting Exposure (pursuant
to Section 2.20(a)(iii)), as it may elect in its sole discretion. 
 (d) Obligations Absolute. The
obligations of the Borrower to reimburse with respect to a L/C Disbursement under any Letter of Credit and of any Lender to reimburse the Fronting Bank with respect to any L/C Disbursement made by the Fronting Bank under any Participated Letter of
Credit shall be unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement and any Letter of Credit Document under all circumstances, including the following circumstances: 

(i) any lack of validity or enforceability of this Agreement, any other Loan Document, any Letter of Credit Document or
any other agreement or instrument relating thereto; 
 (ii) the existence of any claim, set-off, defense or other
right that the Borrower may have at any time against any beneficiary or any transferee of a Letter of Credit (or any Persons for which any such beneficiary or any such transferee may be acting), any Issuing Bank, the Administrative Agent, the L/C
Agent, the Fronting Bank, any Lender or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any other Letter of Credit Document or any unrelated transaction; 

  
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 (iii) any statement or any other document presented under a Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; 
 (iv) payment by any Issuing Bank under a Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by any
Issuing Bank under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any
transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor Relief Law; or 
 (v) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge
of, the Borrower, other than as may be expressly set forth in this Agreement. 
 None of the Administrative Agent, the L/C
Agent, the Fronting Bank, any Lender, any of their Affiliates, or any of their respective partners, directors, officers, employees, agents and advisors shall have any liability or responsibility to the Borrower 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, or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to
any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond their control; provided that the foregoing shall not be
construed to excuse the Administrative Agent, the L/C Agent, the Fronting Bank, any Issuing Bank or any Lender from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which in
connection with this Section 2.03 are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the gross negligence, willful misconduct or breach in bad faith of the obligations
of the Administrative Agent, the L/C Agent, the Fronting Bank, any Issuing Bank or any Lender when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. 

(e) Interest. Unless the Borrower reimburses each L/C Disbursement made in respect of Letters of Credit issued for its account in
full on the date such L/C Disbursement is made, the unpaid amount of the Reimbursement Obligation thereof shall bear interest, subject to Section 2.07(b), for each day from and including the date such L/C Disbursement is made to but
excluding the date that such L/C Disbursement is reimbursed, at the rate per annum equal to ABR in effect from time to time during such period plus the Applicable Margin for ABR Loans as in effect from time to time during such period. Interest
accrued pursuant to this paragraph with respect to any Participated Letter of Credit shall be for account of the Fronting Bank, except that interest accrued on and after the date of payment by any Lender pursuant to paragraph (f) of this
Section to reimburse the Fronting Bank shall be for account of such Lender to the extent of such payment. 

  
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 (f) Collateralization of Letters of Credit. 

(i) At any time and from time to time (i) upon the Administrative Agent’s request given in accordance with
Section 6.02 after the occurrence and during the continuance of an Event of Default and (ii) on the Commitment Termination Date, the Borrower shall deliver to the Administrative Agent as cash collateral an amount in cash equal to
103% of the aggregate Stated Amount of all Letters of Credit issued for the account of the Borrower outstanding at such time (whether or not any beneficiary under any Letter of Credit shall have drawn or be entitled at such time to draw thereunder).
The Administrative Agent shall deposit such cash in a blocked, non-interest bearing deposit account of the Borrower pursuant to arrangements reasonably satisfactory to the Administrative Agent (such account, the “Cash Collateral
Account”) for the benefit of the Administrative Agent, the Issuing Banks and the Lenders. 
 (ii)
[Reserved]. 
 (iii) The Borrower hereby grants to the Administrative Agent, for the benefit of the Issuing Banks
and the Lenders, a Lien upon and security interest in its Cash Collateral Account and all amounts held therein from time to time as security for the Letter of Credit Exposure of the Borrower, and for application to its aggregate Reimbursement
Obligations as and when the same shall arise. The Administrative Agent shall have exclusive dominion and control of the Cash Collateral Account for the payment and performance of outstanding Reimbursement Obligations, including the exclusive right
of withdrawal, over such account for the benefit of the Issuing Banks and the Lenders and the Borrower shall have no interest therein except as set forth in Section 2.03(f)(iv). Amounts in the Cash Collateral Account shall not bear
interest. 
 (iv) In the event of a drawing, and subsequent payment by any Issuing Bank, under any Letter of
Credit at any time during which any amounts are held in the applicable Cash Collateral Account, the Administrative Agent will deliver to such Issuing Bank an amount equal to the Reimbursement Obligation created as a result of such payment (or, if
the amounts so held are less than such Reimbursement Obligation, all of such amounts) to reimburse such Issuing Bank therefor. Notwithstanding anything in this Agreement to the contrary, to the extent any such drawing is made, the Borrower’s
Reimbursement Obligation shall be deemed to have been satisfied and discharged to the extent of any such payment from the Cash Collateral Account. Any amounts remaining in any Cash Collateral Account (including interest and profits) after the
expiration of the Letters of Credit and reimbursement in full of the Issuing Banks for all of their respective obligations thereunder shall be applied against the Obligations of the Borrower in such order and manner as the Administrative Agent may
direct and, if there are any amounts remaining after payment in full of the Obligations, such amounts shall be promptly returned to the Borrower. If the Borrower is required to provide cash collateral as a result of an Event of Default, such amount
(to the extent not applied as aforesaid) shall be returned to the Borrower within three (3) Business Days after all Events of Default have been cured or waived. 

  
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 (g) Use of Letters of Credit. The Letters of Credit shall be available and the
Borrower agrees that it shall use its Letters of Credit for general corporate purposes. 
 Section 2.04 Certain
Fees. 
 (a) Commitment Fee. The Borrower agrees to pay to the Administrative Agent for the account of each Lender a
commitment fee (the “Commitment Fee”) on the daily average unused amount of such Lender’s Commitment from the date hereof, or, in the case of any Lender becoming a party hereto pursuant to an Assignment and Assumption, from the
effective date specified in such Assignment and Assumption, until the Commitment Termination Date at a rate per annum equal to the Applicable Margin in effect for such fee from time to time; provided, however, that no Commitment Fee
shall accrue on the Commitment of a Defaulting Lender during any period that such Lender shall be a Defaulting Lender. The Commitment Fee shall be payable quarterly in arrears on the last Business Day of each March, June, September and December and
on the Commitment Termination Date. 
 (b) Administrative Agent’s Fee. The Borrower agrees to pay to the
Administrative Agent for the Administrative Agent’s own account an annual administrative agency fee at the times and in the amounts separately agreed to in the Fee Letter between the Borrower and the Administrative Agent. 

(c) Fronting Fee. The Borrower agrees to pay to the Fronting Bank, a fronting fee in respect of each Participated Letter of Credit
issued by it under this Agreement at the rate per annum as separately agreed to in the Fee Letter between the Borrower and the Fronting Bank. 
 (d) Letter of Credit Fee. The Borrower agrees to pay to the Administrative Agent, for the account of each Lender, a letter of credit fee (the “Letter of Credit Fee”) for each
calendar quarter (or portion thereof) in respect of all Letters of Credit outstanding during such quarter, at a per annum rate equal to the Applicable Margin in effect for such fee from time to time during such quarter, on such Lender’s Ratable
Share of the average daily aggregate Stated Amount of such Letters of Credit. The Letter of Credit Fee shall be due and payable quarterly in arrears (i) on the last Business Day of each calendar quarter, commencing with the first such date to
occur after the Closing Date, and (ii) on the later of the Commitment Termination Date and the date of termination of the last outstanding Letter of Credit; provided, however, that any Letter of Credit Fees otherwise payable for
the account of a Defaulting Lender with respect to any Participated Letter of Credit as to which such Defaulting Lender has not provided Cash Collateral satisfactory to the Fronting Bank pursuant to Section 2.03(c)(viii) shall be
payable, to the maximum extent permitted by applicable Law, to the other Lenders in accordance with the upward adjustments in their respective Applicable Percentages allocable to such Participated Letter of Credit pursuant to
Section 2.20(a)(iii), with the balance of such fee, if any, payable to the Fronting Bank for its own account. 
 (e)
Other Fees. The Borrower agrees to pay to the L/C Agent and the Fronting Bank, each for its own account, with respect to the Issuance of each Letter of Credit hereunder, such 

  
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reasonable fees and expenses as the L/C Agent or the Fronting Bank, as the case may be, customarily requires in connection with the issuance, amendment, transfer, negotiation, processing and/or
administration of letters of credit. 
 (f) Payments. Fees paid hereunder shall not be refundable under any
circumstances. 
 Section 2.05 Reduction; Increase and Extension of the Commitments. 

(a) Termination and Reduction of Commitments. 

(i) The Commitment of each Lender shall be automatically reduced to zero on the Commitment Termination Date. 

(ii) The Borrower shall have the right, upon at least three Business Days’ notice to the Administrative Agent, to
terminate in whole or reduce ratably in part the unused portions of the respective Commitments of the Lenders; provided that (x) the aggregate amount of the Commitments of the Lenders shall not be reduced to an amount which is less than
the aggregate principal amount of the Loans and the aggregate Letter of Credit Exposure then outstanding, (y) each partial reduction shall be in an aggregate amount of at least $2,500,000 or an integral multiple of $1,000,000 in excess thereof
and (z) any such notice may be conditioned on the effectiveness of other credit facilities in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied. Once reduced or terminated, the Commitments may not be reinstated. 
 (iii) Each
reduction of Commitments pursuant to this Section shall be applied ratably among the Lenders according to their Ratable Shares. Notwithstanding any provision of this Agreement to the contrary, any reduction of the Commitments pursuant to this
Section 2.05 that has the effect of reducing the aggregate Commitments to an amount less than the amount of the Letter of Credit Subcommitment at such time shall result in an automatic corresponding reduction of the Letter of Credit
Subcommitment to the amount of the aggregate Commitments (as so reduced), without any further action on the part of the Borrower or any Lender. 
 (b) Commitment Increases. The Borrower shall have the right at any time to increase the aggregate Commitments in integral multiples of $10,000,000 but not to exceed an aggregate amount for all
Commitments (after giving effect to such increase and including the aggregate amount of the Commitments in effect immediately prior to such increase) equal to (i) $250,000,000 minus (ii) the then aggregate amount of reductions in
the Commitments pursuant to Section 2.05(a), by adding to this Agreement one or more Eligible Assignees (which may include any Lender (with the consent of such Lender in its sole discretion)) (each such Eligible Assignee, an
“Additional Lender”), with the approval of the Administrative Agent (not to be unreasonably withheld), each of which Additional Lender shall have entered into an Assignment and Assumption pursuant to which such Additional Lender
shall undertake a Commitment, which Commitment shall be in an amount (together with any existing Commitment of such Additional Lender as a Lender) at least equal to $10,000,000 or a larger integral multiple of $1,000,000, and upon the effectiveness
of such agreement (the date of the effectiveness of any 

  
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such agreement being hereinafter referred to as the “Increased Commitment Date”) such Additional Lender shall thereupon become a “Lender” for all purposes of this
Agreement. Notwithstanding the foregoing, the increase in the aggregate Commitments pursuant to this Section 2.05(b) shall be effective only if: 
 (i) the Borrower shall have given the Administrative Agent notice requesting such increase at least three Business Days prior to any such Increased Commitment Date; 

(ii) no Default or Event of Default shall have occurred and be continuing as of the date of the notice referred to in the
foregoing clause (i) or on the Increased Commitment Date; 
 (iii) The Administrative Agent shall have
received copies, certified by the secretary or an assistant secretary of the Borrower, of (x) the certificate of incorporation and by-laws of the Borrower, (y) resolutions adopted by the board of directors (or similar governing body) of
the Borrower approving or consenting to the increase in the Commitments, and (z) all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to the increase in the Commitments; 

(iv) The Administrative Agent shall have received a certificate of a Responsible Officer, certifying that (y) as of
the Increased Commitment Date, all representations and warranties of the Borrower contained in this Agreement and the other Loan Documents qualified as to materiality are true and correct and those not so qualified are true and correct in all
material respects, both immediately before and after giving effect to the increase in Commitments and any Borrowings or Letters of Credit issued in connection therewith (except to the extent any such representation or warranty is expressly stated to
have been made as of a specific date, in which case such representation or warranty is true and correct (if qualified as to materiality) or true and correct in all material respects (if not so qualified), in each case as of such date), and
(z) no Default or Event of Default has occurred and is continuing, both immediately before and after giving effect to the increase in Commitments (including any Borrowings or Letters of Credit issued in connection therewith and the application
of the proceeds thereof); 
 (v) if any Loan shall be outstanding on such Increased Commitment Date, the Borrower
shall have borrowed Loans from each of the Additional Lenders on such Increased Commitment Date, and the Additional Lenders shall have made Loans to the Borrower (in the case of Eurodollar Loans, with Interest Period(s) ending on the date(s) of any
then outstanding Interest Period(s)), and (notwithstanding the provisions of Section 2.13(a) requiring that borrowings and prepayments be made ratably in accordance with the principal amounts of the Loans held by the Lenders) the
Borrower in coordination with the Administrative Agent shall have taken such actions, including, if necessary, prepaying Loans held by the other Lenders (together with accrued interest thereon and any amounts owing pursuant to
Section 8.04(c) as a result of such payment) in such amounts as may be necessary so that after giving effect to such Loans and prepayments the Loans (and Interest Period(s) of Eurodollar Loan(s)) shall be held by the Lenders pro
rata in accordance with the respective amounts of their Commitments (as so increased); 

  
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 (vi) the Administrative Agent shall have received customary legal opinions
reasonably requested by Administrative Agent in connection with any such Commitment increase; and 
 (vii) in the
case of any Credit Extension in connection with such Commitment increase, the conditions precedent set forth in Section 3.02 shall have been satisfied. 
 As soon as possible following the Increased Commitment Date, each Syndicated Letter of Credit outstanding as of the Increased Commitment Date shall be amended to reflect any new Lenders and the revised
Ratable Shares of the Lenders, it being understood for the avoidance of doubt that such amendment shall not be deemed a Credit Extension hereunder. Until each such Syndicated Letter of Credit has been amended in accordance with this Section, each
Lender under such Syndicated Letter of Credit shall be deemed to have sold and transferred to those Persons who, immediately after giving effect to the Commitment increase, are Lenders under this Agreement, and such purchasing Lenders shall be
deemed irrevocably and unconditionally to have purchased and received from such selling Lender, without recourse or warranty, an undivided interest and participation, to the extent of such purchasing Lender’s Ratable Share, in such Syndicated
Letter of Credit, each drawing made thereunder, the obligations of the Borrower under this Agreement with respect thereto and any security therefor or guaranty pertaining thereto. 

(c) Extension of Commitment Termination Date. 

(i) Requests for Extension. The Borrower may, by notice to the Administrative Agent (who shall promptly notify the
Lenders) not earlier than 120 days and not later than 90 days prior to the Commitment Termination Date then in effect hereunder (the “Existing Commitment Termination Date”), request that each Lender extend such Lender’s
Commitment Termination Date for an additional 364 days from the Existing Commitment Termination Date. 
 (ii)
Lender Elections to Extend. Each Lender, acting in its sole and individual discretion, shall, by notice to the Administrative Agent not later than the date (the “Notice Date”) that is 75 days prior to the Existing Commitment
Termination Date, advise the Administrative Agent whether or not such Lender agrees to such extension (and each Lender that determines not to so extend its Commitment Termination Date (a “Non-Extending Lender”) and any Lender that
does not so advise the Administrative Agent on or before the Notice Date (or such later date reasonably acceptable to the Administrative Agent) shall be deemed to be a Non-Extending Lender. The election of any Lender to agree to such extension (such
Lender, an “Extending Lender”) shall not obligate any other Lender to so agree. 
 (iii)
Notification by Administrative Agent. The Administrative Agent shall notify the Borrower of each Lender’s determination under this Section no later than the date 60 days prior to the Existing Commitment Termination Date (or, if such date
is not a Business Day, on the next preceding Business Day). 

  
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 (iv) Additional Commitment Lenders. The Borrower shall have the right
on or before the Existing Commitment Termination Date to replace each Non-Extending Lender with, and add as “Lenders” under this Agreement in place thereof, one or more Eligible Assignees (each, an “Additional Commitment
Lender”) with the approval of the Administrative Agent and the Fronting Bank (which approvals shall not be unreasonably withheld), each of which Additional Commitment Lenders shall have entered into an agreement in form and substance
satisfactory to the Borrower and the Administrative Agent pursuant to which such Additional Commitment Lender shall, effective as of the Existing Commitment Termination Date, undertake a Commitment (and, if any such Additional Commitment Lender is
already a Lender, its Commitment shall be in addition to such Lender’s Commitment hereunder on such date). 

(v) Minimum Extension Requirement. If (and only if) the total of the Commitments of the Extending Lenders and the
additional Commitments of the Additional Commitment Lenders shall be more than 50% of the aggregate amount of the Commitments in effect immediately prior to the Existing Commitment Termination Date, then, effective as of the Existing Commitment
Termination Date, the Commitment Termination Date of each Extending Lender and of each Additional Commitment Lender shall be extended to the date falling 364 days after the Existing Commitment Termination Date (except that, if such date is not a
Business Day, such Commitment Date as so extended shall be the next preceding Business Day) and each Additional Commitment Lender shall thereupon become a “Lender” for all purposes of this Agreement. 

(vi) Conditions to Effectiveness of Extensions. Notwithstanding the foregoing, the extension of the Commitment
Termination Date pursuant to this Section shall not be effective with respect to any Lender unless: 
 (A) no
Default or Event of Default shall have occurred and be continuing on the date of such extension and after giving effect thereto; 
 (B) the representations and warranties contained in this Agreement are true and correct on and as of the date of such extension and after giving effect thereto, as though made on and as of such date (or,
if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date); and 
 (C) on or before the Commitment Termination Date of each Non-Extending Lender, (1) the Borrower shall have paid in full the principal of and accrued interest on all of the Loans made by such
Non-Extending Lender to the Borrower hereunder, and (2) the Borrower shall have paid in full all other amounts owing to such Lender hereunder (including any Reimbursement Obligations). 

  
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 (vii) Amendment to Syndicated Letters of Credit. To the extent
necessary to keep the outstanding Syndicated Letters of Credit ratable in the event not all Lenders elect to extend their Commitments pursuant to this Section, as soon as possible following the Existing Commitment Termination Date, each Syndicated
Letter of Credit shall be amended to reflect the new Ratable Shares of the extending Lenders. Until a Syndicated Letter of Credit has been amended in accordance with this Section, each Non-Extending Lender shall be deemed to have sold and
transferred to each Extending Lender and Additional Commitment Lender, and each Extending Lender and Additional Commitment Lender shall be deemed irrevocably and unconditionally to have purchased and received from the Non-Extending Lenders, without
recourse or warranty, an undivided interest and participation, to the extent of such Lender’s revised Ratable Share, in such Syndicated Letter of Credit, each drawing made thereunder, the obligations of the Borrower under this Agreement with
respect thereto and any security therefor or guaranty pertaining thereto. 
 Section 2.06 Repayment. The Borrower
shall repay the full principal amount of each Loan on the Commitment Termination Date. 
 Section 2.07 Interest.

 (a) Ordinary Interest. The Borrower shall pay interest on the unpaid principal amount of each Loan, from the date of
such Loan until such principal amount shall be paid in full, at the following rates per annum: 
 (i) ABR
Loans. While such Loan is an ABR Loan, a rate per annum equal to the ABR in effect from time to time plus the Applicable Margin for ABR Loans as in effect from time to time, payable quarterly in arrears on the last Business Day of each March,
June, September and December and on the date such ABR Loan shall be Converted or paid in full. 
 (ii)
Eurodollar Loans. While such Loan is a Eurodollar Loan, a rate per annum for each Interest Period for such Loan equal to the sum of the Eurodollar Rate for such Interest Period plus the Applicable Margin for Eurodollar Loans as in
effect from time to time, payable on the last day of such Interest Period and, if such Interest Period has a duration of more than three months, on each of the days which occur at three-month intervals after the first day of such Interest Period,
and on each date on which such Eurodollar Loan shall be Continued, Converted or paid in full. 
 (b) Default Interest.
Notwithstanding the foregoing, if any Event of Default under Section 6.01(a) shall have occurred and be continuing, the Borrower shall pay interest on: 

(i) the unpaid principal amount of each Loan and each Reimbursement Obligation owing to each Lender, payable on demand
(and in any event in arrears on the dates referred to in Section 2.07(a)) at a rate per annum equal at all times to two percent (2%) per annum above the rate per annum required to be paid on such Loan pursuant to said
Section 2.07(a) or such Reimbursement Obligation pursuant to Section 2.03(e), as applicable; provided that if such Event of Default shall be continuing at the end of any Interest Period for any Eurodollar Loan, such
Loan shall forthwith be Converted to an ABR Loan bearing interest as aforesaid in this Section 2.07(b)(i); and 

  
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 (ii) the amount of any interest, fee or other amount payable hereunder that
is not paid when due, from the date such amount shall be due until such amount shall be paid in full, payable on demand (and in any event in arrears on the date such amount shall be paid in full), at a rate per annum equal at all times to two
percent (2%) per annum above the rate per annum required to be paid on ABR Loans pursuant to Section 2.07(a)(i) above. 
 (c) Additional Interest on Eurodollar Loans. The Borrower shall pay to each Lender additional interest on the unpaid principal amount of each Eurodollar Loan of such Lender, from the date of such
Loan until such principal amount is paid in full, at an interest rate per annum equal at all times to the remainder obtained by subtracting (i) the Eurodollar Rate for each Interest Period for such Loan from (ii) the rate obtained by
dividing such Eurodollar Rate by a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage of such Lender for such Interest Period, payable on each date on which interest is payable on such Loan. Such additional interest shall
be determined by such Lender and notified to the Borrower through the Administrative Agent. 
 Section 2.08 Interest
Rate Determinations; Changes in Rating Systems. 
 (a) The Administrative Agent shall give prompt notice to the Borrower and
the Lenders of the applicable interest rates determined by the Administrative Agent for the purposes of Section 2.07. 
 (b) If the Administrative Agent shall determine (which determination shall be conclusive and binding absent manifest error) that reasonable and adequate means do not exist for the ascertaining the
Eurodollar Rate for the relevant Interest Period with respect to a proposed Eurodollar Loan, 
 (i) the
Administrative Agent shall forthwith notify the Borrower and the Lenders that the interest rate cannot be determined for such Eurodollar Loans for such Interest Period, 

(ii) each Eurodollar Loan will automatically, on the last day of the then existing Interest Period therefor, Convert into
an ABR Loan, and 
 (iii) the obligation of the Lenders to make or Continue, or to Convert Loans into, Eurodollar
Loans shall be suspended until the Administrative Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist. 
 (c) If, with respect to any Eurodollar Loans, the Majority Lenders notify the Administrative Agent that the Eurodollar Rate for any Interest Period for such Loans will not adequately reflect the cost to
such Majority Lenders of making, funding or maintaining their respective Eurodollar Loans for such Interest Period, the Administrative Agent shall forthwith so notify the Borrower and the Lenders, whereupon: 

(i) each Eurodollar Loan will automatically, on the last day of the then existing Interest Period therefor, Convert into
an ABR Loan, and 

  
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 (ii) the obligation of the Lenders to make or Continue, or to Convert Loans
into, Eurodollar Loans shall be suspended until the Administrative Agent shall notify the Borrower and such Lenders that the circumstances causing such suspension no longer exist. 

(d) If the Borrower shall fail to select the duration of any Interest Period for any Eurodollar Loans in accordance with the provisions
contained in the definition of “Interest Period” in Section 1.01, the Administrative Agent will forthwith so notify the Borrower and the Lenders and such Loans will automatically, on the last day of the then existing Interest
Period therefor, Continue as Eurodollar Loans having an Interest Period of one month. If the Borrower shall fail to give a timely notice requesting a conversion into, or a continuation of any Eurodollar Loan, then the applicable Eurodollar Loan will
automatically, on the last day of the then existing Interest Period therefor, Convert into an ABR Loan. 
 (e) Upon the
occurrence and during the continuance of any Event of Default, (x) each Eurodollar Loan will automatically, on the last day of the then existing Interest Period therefor, Convert into a ABR Loan and (y) the obligation of the Lenders to
make or Continue, or to Convert Loans into, Eurodollar Loans shall be suspended. 
 (f) If the rating system of either
Moody’s or Standard & Poor’s shall change, or if either such rating agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Administrative Agent (on behalf of the Lenders) shall
negotiate in good faith to amend the references to specific ratings in this Agreement to reflect such changed rating system or the non-availability of ratings from such rating agency (provided that any such amendment to such specific ratings
shall not be effective without the approval of the Majority Lenders). 
 Section 2.09 Voluntary Conversion and
Continuation of Loans. 
 (a) Optional Conversion. Subject to Section 2.08(e), the Borrower may on any
Business Day, upon notice given to the Administrative Agent (in the form of Exhibit E) not later than 11:00 A.M. (Charlotte, North Carolina time) on the third Business Day prior to the date of the proposed Conversion, Convert all or any
portion of the outstanding Loans of one Type comprising part of the same Borrowing into Loans of the other Type; provided that in the case of any such Conversion of a Eurodollar Loan into a ABR Loan on a day other than the last day of an
Interest Period therefor, the Borrower shall reimburse the Lenders in respect thereof pursuant to Section 8.04(c). Each such notice of a Conversion shall, within the restrictions specified above, specify (x) the date of such
Conversion, (y) the Loans to be Converted, and (z) if such Conversion is into Eurodollar Loans, the duration of the initial Interest Period for each such Loan. Each notice of Conversion shall be irrevocable and binding on the Borrower.

 (b) Continuations. Subject to Section 2.08(e), the Borrower may, on any Business Day, upon notice given to
the Administrative Agent (in the form of Exhibit E) not later than 11:00 A.M. (Charlotte, North Carolina time) on the third Business Day prior to the date of the 

  
 44 

 
proposed Continuation, Continue all or any portion of the outstanding Eurodollar Loans comprising part of the same Borrowing for one or more Interest Periods; provided that in the case of any
such Continuation on a day other than the last day of an Interest Period therefor, the Borrower shall reimburse the Lenders in respect thereof pursuant to Section 8.04(c). Each such notice of a Continuation shall, within the restrictions
specified above, specify (x) the date of such Continuation, (y) the Eurodollar Loans to be Continued and (y) the duration of the initial Interest Period for the Eurodollar Loans subject to such Continuation. Each notice of
Continuation shall be irrevocable and binding on the Borrower. 
 Section 2.10 Prepayments of Loans. 

(a) Voluntary. The Borrower may, on notice given not later than 11:00 A.M. (Charlotte, North Carolina time) on the third Business
Day prior to the date of the proposed prepayment (in the case of an Eurodollar Loans) or given not later than 11:00 A.M. (Charlotte, North Carolina time) on the Business Day of the proposed prepayment (in the case of ABR Loans), stating the proposed
date and aggregate principal amount of the prepayment, and if such notice is given the Borrower shall, prepay the outstanding principal amounts of the Loans comprising part of the same Borrowing in whole or ratably in part, without premium or
penalty, together with accrued interest to the date of such prepayment on the principal amount prepaid; provided, however, that (x) each partial prepayment shall be in an aggregate principal amount not less than $2,500,000 or an
integral multiple of $1,000,000 in excess thereof and (y) in the case of any such prepayment of a Eurodollar Loan on a day other than the last day of an Interest Period therefor, the Borrower shall reimburse the Lenders in respect thereof
pursuant to Section 8.04(c). 
 (b) Mandatory. In the event that, at any time, the aggregate Credit Exposure
shall exceed the aggregate Commitments at such time (after giving effect to any concurrent termination or reduction thereof), the Borrower will immediately prepay the outstanding principal amount of Loans in the amount of such excess. 

Section 2.11 Increased Costs. 
 (a) If, due to any Change in Law (other than any change by way of imposition or increase of reserve requirements included in the Eurodollar Rate Reserve Percentage), there shall be any increase in the
cost to any Lender of agreeing to make or making, funding or maintaining Eurodollar Loans, then the Borrower shall from time to time, upon demand by such Lender (with a copy of such demand to the Administrative Agent), pay to the Administrative
Agent for the account of such Lender additional amounts sufficient to compensate such Lender for such increased cost. Notwithstanding anything in this Section 2.11 to the contrary, compensable increased costs shall not include any such
increased costs or reduction in amount resulting from (x) Taxes or Other Taxes subject to indemnification under Section 2.14 or (y) any taxes with respect to payments made by the Borrower hereunder that are excluded from the
definition of Taxes or Other Taxes pursuant to clauses (i) through (vi) of Section 2.14(a) (including by reason of the last sentence of Section 2.14(e) or Section 2.14(g)). A certificate as to the amount
of such increased cost, submitted to the Borrower and the Administrative Agent by such Lender, shall be conclusive and binding for all purposes, absent manifest error. 

  
 45 

 (b) If any Lender or the Fronting Bank determines that any Change in Law affects or would
affect the amount of capital required or expected to be maintained by such Lender or such Fronting Bank or any corporation Controlling such Lender or such Fronting Bank and that the amount of such capital is increased by or based upon the existence
of the Commitments of such Lender or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Lenders or the Fronting Bank, then, upon demand by such Lender or such Fronting Bank (with a
copy of such demand to the Administrative Agent), the Borrower shall immediately pay to the Administrative Agent for the account of such Lender or such Fronting Bank, from time to time as specified by such Lender or such Fronting Bank, additional
amounts sufficient to compensate such Lender, such Fronting Bank or such corporation in the light of such circumstances, to the extent that such Lender or such Fronting Bank reasonably determines such increase in capital to be allocable to the
obligations of such Lender or such Fronting Bank hereunder. A certificate as to such amounts submitted to the Borrower and the Administrative Agent by such Lender or such Fronting Bank shall be conclusive and binding for all purposes, absent
manifest error. 
 Section 2.12 Illegality. Notwithstanding any other provision of this Agreement, if any Lender
shall notify the Administrative Agent that any Change in Law makes it unlawful, or any central bank or other governmental authority asserts that it is unlawful, for such Lender or its Eurodollar Lending Office to perform its obligations hereunder to
make or Continue Eurodollar Loans or to fund or otherwise maintain Eurodollar Loans hereunder, (i) the obligation of such Lender to make or Continue, or to Convert Loans into, Eurodollar Loans shall be suspended until the Administrative Agent
shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist and (ii) each Eurodollar Loan of such Lender shall Convert into an ABR Loan either (a) on the last day of the current Interest Period
for such Eurodollar Loan or (b) immediately, if such Lender may not lawfully continue to maintain such Eurodollar Loan. 

Section 2.13 Payments and Computations. 
 (a) The Loans comprising each Borrowing shall be made pro rata among the Lenders according to their respective Ratable Share or on the basis of their respective outstanding Loans (in the
case of continuations and conversions of Loans pursuant to Section 2.09), as the case may be from time to time. All payments of principal of and interest on account of any Obligations of the Borrower shall be made for the pro
rata account of the Lenders based upon their respective share, if any, with respect to any such Obligation pursuant to which such payment was made, and all payments of Commitment Fees shall be made for the pro rata account of
the Lenders (other than Defaulting Lenders) according to the amounts of their respective Commitments. 
 (b) The Borrower shall
make each payment hereunder without set-off or counterclaim not later than 11:00 A.M. (Charlotte, North Carolina time) on the day when due in Dollars and immediately available funds to the Administrative Agent (except as otherwise expressly provided
herein as to payments required to be made directly to the Fronting Bank, the L/C Agent or any Lender) at its address referred to in Section 8.02. The Administrative Agent will promptly thereafter cause to be distributed like funds
relating to the payment of principal, interest or Commitment Fees ratably (subject to Sections 2.02(b), 2.11, 2.14 and 8.04(c)) to the Lenders for the account of their respective Applicable Lending Offices, and like funds
relating to 

  
 46 

 
the payment of any other amount payable to any Lender to such Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement.
Upon its acceptance of an Assignment and Assumption and recording of the information contained therein in the Register pursuant to Section 8.06(c), from and after the effective date specified in such Assignment and Assumption, the
Administrative Agent shall make all payments hereunder in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Assumption shall make all appropriate adjustments in such payments for
periods prior to such effective date directly between themselves. The Administrative Agent will distribute to the Fronting Bank like amounts relating to payments made to the Administrative Agent for the account of the Fronting Bank in the same
manner, and subject to the same terms and conditions, as set forth hereinabove with respect to distributions of amounts to the Lenders. 
 (c) All computations of interest based on the Prime Rate shall be made by the Administrative Agent on the basis of a year of 365 or 366 days, as the case may be, for the actual number of days (including
the first day but excluding the last day) occurring in the period for which such interest is payable. All computations of interest based on the Eurodollar Rate or the Federal Funds Rate and of Commitment Fee shall be made by the Administrative Agent
on the basis of a year of 360 days, for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or fee is payable. Each determination by the Administrative Agent of an interest
rate hereunder shall be conclusive and binding for all purposes, absent manifest error. 
 (d) Whenever any payment hereunder
would be due on a day other than a Business Day, such due date shall be extended to the next succeeding Business Day, and any such extension of such due date shall in such case be included in the computation of payment of interest or Commitment Fee,
as the case may be; provided however that if such extension would cause payment of interest on or principal of or interest on any Eurodollar Loan to be made in the next following calendar month, such payment shall be made on the next preceding
Business Day. 
 (e) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any
payment is due to the Lenders or the Fronting Bank hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the
Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender or the Fronting Bank on such due date an amount equal to the amount then due such Lender or the Fronting Bank. If and to the extent that the Borrower
shall not have so made such payment in full to the Administrative Agent, each Lender or the Fronting Bank, as applicable, shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender or the Fronting Bank
together with interest thereon, for each day from the date such amount is distributed to such Lender or the Fronting Bank, as applicable, until the date such Lender or the Fronting Bank repays such amount to the Administrative Agent, at the Federal
Funds Rate. 

  
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 Section 2.14 Taxes. 

(a) Any and all payments by the Borrower hereunder shall be made free and clear of and without deduction for any and all present or
future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding, (i) in the case of each Lender, the Administrative Agent and the Fronting Bank, taxes imposed on its income, and franchise
taxes imposed on it, by the jurisdiction under the laws of which such Lender, the Administrative Agent or the Fronting Bank (as the case may be) is organized or any political subdivision thereof; (ii) in the case of each Lender, taxes imposed
on its income, and franchise taxes imposed on it, by the jurisdiction of such Lender’s Applicable Lending Office or any political subdivision thereof; (iii) any taxes imposed by a jurisdiction as a result of any connection between a
Lender, the Administrative Agent or the Fronting Bank (as the case may be) and such jurisdiction other than any connections arising from the execution, delivery, being party to, having engaged in any transactions pursuant to, performance of its
obligations under, or enforcement of this Agreement; (iv) any tax that is in effect and would apply to amounts payable hereunder at such time the Lender becomes a party to this Agreement, or designates a new Lending Office, except to the extent
such Lender (or its assignor, if any) was entitled at the time of designation of a new Lending Office (or assignment) to receive additional amounts with respect to such withholding tax pursuant to this Section 2.14; (v) taxes
excluded from indemnification pursuant to the last sentence of Section 2.14(e) or under Section 2.14(g); and (vi) any withholding tax to the extent imposed as a result of a failure or inability (other than as a result of
a Change in Law) by a Lender or Beneficial Owner of the payment to satisfy the conditions for avoiding withholding under FATCA (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as “Taxes”). If the Borrower shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder to any Lender, the Administrative Agent or the Fronting Bank, (x) the sum payable shall be
increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section 2.14) such Lender, the Administrative Agent or the Fronting Bank (as the case may
be) receives an amount equal to the sum it would have received had no such deductions been made, (y) the Borrower shall make such deductions and (z) the Borrower shall pay the full amount deducted to the relevant taxation authority or
other authority in accordance with applicable law. 
 (b) In addition, the Borrower agrees to pay any present or future
transfer, stamp or documentary taxes or any other excise or property taxes, charges or similar levies which arise from any payment made hereunder or from the execution, delivery or registration of, or otherwise with respect to, this Agreement,
excluding, in each case, such amounts that result from the Administrative Agent’s, the Fronting Bank’s or Lender’s Assignment and Assumption, grant of a participation, transfer or assignment to or designation of a new applicable
Lending Office or other office receiving payments made hereunder (collectively, “Assignment Taxes”) except for Assignment Taxes resulting from assignment or participation that is requested or required in writing by the Borrower (all
such non-excluded taxes described in this Section 2.14(b) being hereinafter referred to as “Other Taxes”). 
 (c) The Borrower will indemnify each Lender, the Fronting Bank and the Administrative Agent for the full amount of Taxes or Other Taxes (including, without limitation, any Taxes and Other Taxes imposed by
any jurisdiction on amounts payable under this Section 2.14) 

  
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paid by such Lender, the Fronting Bank or the Administrative Agent (as the case may be) and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto,
whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification shall be made within 30 days from the date such Lender, the Fronting Bank or the Administrative Agent (as the case may be) makes written demand
therefor. A certificate as to the amount of such Taxes and Other Taxes, submitted to the Borrower and the Administrative Agent by such Lender or such Fronting Bank, shall be conclusive and binding (as between the Borrower, the Lenders, the Fronting
Bank and the Administrative Agent) for all purposes, absent manifest error. 
 (d) Within 30 days after the date of any payment
of Taxes (or, if receipts or evidence are not available within 30 days, as soon as practicable thereafter), the Borrower will furnish to the Administrative Agent, at its address referred to in Section 8.02, the original or a certified
copy of a receipt evidencing payment thereof or other proof of payment of such Taxes reasonably satisfactory to the relevant Lender(s) or the Fronting Bank (as the case may be). If no Taxes are payable in respect of any payment hereunder, upon the
request of the Administrative Agent the Borrower will furnish to the Administrative Agent, at such address, a statement to such effect with respect to each jurisdiction designated by the Administrative Agent. 

(e) Each Lender that is not a “U.S. person” as defined in section 7701(a)(30) of the Code, on or prior to the date of its
execution and delivery of this Agreement (in the case of each Lender) and on the date of the Assignment and Assumption pursuant to which it becomes a Lender (in the case of each other Lender), and from time to time thereafter as required by law or
as requested in writing by the Borrower (but only so long as such Lender remains lawfully able to do so), shall provide the Borrower with an applicable Internal Revenue Service (“IRS”) Form W-8, as appropriate, or any successor form
prescribed by the IRS, certifying that such Lender is entitled to benefits under an income tax treaty to which the United States is a party which reduces the rate of withholding tax on payments of interest or certifying that the income receivable
pursuant to this Agreement is effectively connected with the conduct of a trade or business in the United States, or if a Lender is not the Beneficial Owner of any obligation of the Borrower (for example, where the Lender is a partnership or
participating Lender granting a typical participation), duly completed copies of IRS Form W-8IMY and the applicable IRS Form W-8 or W-9 from each Beneficial Owner. If the form(s) provided by a Lender at the time such Lender first becomes a party to
this Agreement indicates a United States interest withholding tax rate in excess of zero, withholding tax at such rate shall be considered excluded from “Taxes” as defined in Section 2.14(a). 

(f) Each Lender that is a “U.S. person” under section 7701(a)(30) of the Code, on or prior to the date of its execution and
delivery of this Agreement (in the case of each Lender) and on the date of the Assignment and Assumption pursuant to which it becomes a Lender (in the case of each other Lender), and from time to time thereafter as required by law or as requested in
writing by the Borrower (but only so long as such Lender remains lawfully able to do so), shall provide the Borrower with an IRS Form W-9 or any successor form certifying that such Lender is exempt from U.S. federal backup withholding tax.

 (g) For any period with respect to which a Lender has failed to provide the Borrower with the appropriate form described in
Section 2.14(e) or (f) (other than if such failure is due to a 

  
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change in law occurring subsequent to the date on which a form originally was required to be provided, or if such form otherwise is not required under the first sentence of clause (e) or
(f) above), such Lender shall not be entitled to indemnification under Section 2.14(a) with respect to Taxes imposed by the United States; provided however that should a Lender become subject to Taxes because of its failure
to deliver a form required hereunder, the Borrower shall take such steps as the Lender shall reasonably request to assist the Lender to recover such Taxes. 
 (h) Any Lender claiming any additional amounts payable pursuant to this Section 2.14 shall use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to
change the jurisdiction of its Applicable Lending Office(s) if the making of such a change would avoid the need for, or reduce the amount of, any such additional amounts that may thereafter accrue and would not, in the reasonable judgment of such
Lender, be otherwise disadvantageous to such Lender. 
 If any Lender, the Administrative Agent or the Fronting Bank (as the
case may be) determines, in its sole discretion, that it has received a refund in respect of any Taxes or Other Taxes as to which indemnification or additional amounts have been paid to it by the Borrower pursuant to this Section 2.14,
it shall promptly remit such refund to the Borrower, net of all out-of-pocket expenses of the Lender, the Administrative Agent or the Fronting Bank (as the case may be, in each case including any taxes imposed by reason of the receipt of such
refund), without interest (other than any interest paid by the relevant taxing authority with respect to such refund net of any Taxes payable by such Lender, the Administrative Agent or the Fronting Bank on such interest, as the case may be);
provided that the Borrower, upon the request of such Lender, the Administrative Agent or the Fronting Bank agrees promptly to return such refund (plus any penalties, interest or other charges imposed by the relevant taxing authority) to such
Lender, the Administrative Agent or the Fronting Bank in the event such party is required to repay such refund to the relevant taxing authority. This Section shall not be construed to require the Administrative Agent, the Fronting Bank or any Lender
to make available its tax returns (or any other information relating to taxes that it deems confidential) to the Borrower or any other person. 
 Section 2.15 Set-Off; Sharing of Payments, Etc. 
 (a) Without limiting
any of the obligations of the Borrower or the rights of the Lenders hereunder, if the Borrower shall fail to pay when due (whether at stated maturity, by acceleration or otherwise) any amount payable by it hereunder, each Lender is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, without prior notice to the Borrower (which notice is expressly waived by the Borrower to the fullest extent permitted by applicable law), to set off and apply against such
amount any and all deposits (general or special, time or demand, provisional or final, in any currency, matured or unmatured) and any other obligations at any time held or owing by such Lender or any Subsidiary, Affiliate, branch or agency thereof
to or for the credit or account of the Borrower, provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for
further application in accordance with the provisions of Section 2.20(a)(ii) and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative
Agent, the Issuing Banks, and the Lenders, and (y) the Defaulting Lender shall 

  
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provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. Such Lender
shall promptly provide notice to the Borrower of such set-off, provided, that failure by such Lender to provide such notice to the Borrower shall not give the Borrower any cause of action or right to damages or affect the validity of such
set-off and application. The rights of each Lender under this Section are in addition to any other rights and remedies (including, without limitation, any other rights of set-off) that such Lender may have. 

(b) If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise)
on account of its Loans or other Obligations (other than pursuant to Section 2.02(b), 2.11, 2.14 or 8.04(c)) in excess of its Ratable Share of payments on account of the Loans or other such Obligations obtained by
all the Lenders, such Lender shall forthwith purchase from the other Lenders such participations in the Loans and such other Obligations of the other Lenders as shall be necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; provided however that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender
the purchase price to the extent of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of such Lender’s required repayment to (ii) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered. The Borrower agrees that any Lender so purchasing a participation from another Lender
pursuant to this Section 2.15 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation. 
 Section 2.16 Right to Replace a Lender. If the Borrower is required
to make any additional payment pursuant to Section 2.11 or 2.14 to any Lender or if any Lender’s obligation to make or Continue, or to Convert Loans into, Eurodollar Loans shall be suspended pursuant to Section 2.12
or any Lender becomes a Defaulting Lender (in each case, such Lender being an “Affected Person”), the Borrower may elect, if such amounts continue to be charged or such suspension is still effective or such Lender remains a
Defaulting Lender, to replace such Affected Person as a party to this Agreement; provided that, no Default or Event of Default shall have occurred and be continuing at the time of such replacement; and provided further that,
concurrently with such replacement, (i) another financial institution, which is an Eligible Assignee and is reasonably satisfactory to the Borrower, the Administrative Agent and the Fronting Bank, shall agree, as of such date, to purchase, at
par, for cash the Loans, L/C Disbursements and any L/C Advances of the Affected Person pursuant to an Assignment and Assumption and to become a Lender for all purposes under this Agreement and to assume all obligations (including all outstanding
Loans) of the Affected Person to be terminated as of such date and to comply with the requirements of Section 8.06 applicable to assignments and (ii) the Borrower shall pay to such Affected Person in same day funds on the day of
such replacement all interest, fees and other amounts then due and owing to such Affected Person by the Borrower hereunder to and including the date of termination, including without limitation payments due such Affected Person under
Section 2.11 and Section 2.14 and under Section 8.04(c) (other than with respect to an Affected Person that is a Defaulting Lender) as though such assignment were a prepayment. As soon as possible after the
Affected Lender is replaced pursuant to this Section, 

  
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each Syndicated Letter of Credit outstanding at the time such replacement takes effect shall be amended to replace the Affected Person with the Eligible Assignee who replaces such Affected
Person, it being understood for the avoidance of doubt that such amendment shall not be deemed a Credit Extension hereunder. Until each such Syndicated Letter of Credit has been amended in accordance with this Section, the Affected Person shall be
deemed to have sold and transferred to the Eligible Assignee who replaces the Affected Person, and such Eligible Assignee shall be deemed irrevocably and unconditionally to have purchased and received from such Affected Person, without recourse or
warranty, an undivided interest and participation, to the extent of such Affected Person’s Ratable Share, in such Syndicated Letter of Credit, each drawing made thereunder, the obligations of the Borrower under this Agreement with respect
thereto and any security therefor or guaranty pertaining thereto. 
 Section 2.17 Evidence of Debt. 

(a) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness, Reimbursement
Obligations and fees of the Borrower owing to such Lender resulting from each Loan made by such Lender, or each Letter of Credit issued for the account of the Borrower, including the amounts of principal and interest payable and paid to such Lender
from time to time hereunder. 
 (b) The Administrative Agent shall maintain accounts in which it shall record (i) the date,
amount, Type, interest rate and duration of Interest Period (if applicable) of each Loan made hereunder, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder,
(iii) the Letter of Credit Exposure of, and Reimbursement Obligations owing to, each Lender and (iv) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

 (c) The entries made in the accounts maintained pursuant to clause (a) or (b) of this Section 2.17
shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the
obligation of the Borrower to repay the Loans and Reimbursement Obligations in accordance with the terms of this Agreement. 

Section 2.18 Notes. Any Lender may request that Loans made by it be evidenced by a promissory note. In such event, the
Borrower shall prepare, execute and deliver to such Lender a promissory note payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns), in substantially the form of Exhibit D (each, a
“Note”). Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 8.06) be represented by one or more promissory notes in such form
payable to the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 

  
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 Section 2.19 Recovery of Payments. 

(a) The Borrower agrees that to the extent it makes a payment or payments to or for the account of the Administrative Agent, any Lender,
any Issuing Bank or the Fronting Bank, which payment or payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party in connection
with any case or proceeding under any Debtor Relief Law with respect to the Borrower (whether as a result of any demand, settlement, litigation or otherwise), then, to the extent of such payment or repayment, the Obligation intended to be satisfied
shall be revived and continued in full force and effect as if such payment had not been received. 
 (b) If any amounts
distributed by the Administrative Agent to any Lender, Issuing Bank or the Fronting Bank are subsequently returned or repaid by the Administrative Agent to the Borrower, its representative or successor in interest, or any other Person, whether by
court order, by settlement approved by such Lender, such Issuing Bank or the Fronting Bank, or pursuant to applicable Requirements of Law, such Lender, such Issuing Bank or the Fronting Bank will, promptly upon receipt of notice thereof from the
Administrative Agent, pay the Administrative Agent such amount. If any such amounts are recovered by the Administrative Agent from the Borrower, its representative or successor in interest or such other Person, the Administrative Agent will
redistribute such amounts to the Lenders, the Issuing Banks or the Fronting Bank on the same basis as such amounts were originally distributed. 
 Section 2.20 Defaulting Lender. 
 (a) Notwithstanding anything to the
contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law: 

(i) Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this
Agreement shall be restricted as set forth in the definition of Majority Lenders and in Section 8.01. 
 (ii) Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to
ARTICLE 6 or otherwise) shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to
the payment of any amounts owing by such Defaulting Lender to the Fronting Bank hereunder; third, if so determined by the Administrative Agent or requested by the Fronting Bank, to be held as Cash Collateral for future funding obligations of such
Defaulting Lender in respect of any participation in any Participated Letter of Credit; fourth, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan or L/C Disbursement in respect of which that
Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a blocked, non-interest bearing
deposit account and released in order to satisfy obligations of such Defaulting Lender to fund Loans and Letters of Credit under this Agreement; sixth, to the payment of any amounts owing to the Lenders and the Fronting Bank as a result of any
judgment of a court of competent 

  
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jurisdiction obtained by any Lender or the Fronting Bank against that Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so
long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such
Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal
amount of any Loans or any L/C Disbursement in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth
in Section 3.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and obligations in respect of Letters of Credit owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the
payment of any Loans of, or obligations in respect of Letters of Credit owed to, such Defaulting Lender. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting
Lender or to post Cash Collateral pursuant to this Section shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto. 

(iii) All or any part of such Defaulting Lender’s Letter of Credit Exposure in respect of outstanding Participated
Letters of Credit shall automatically (effective on the day such Lender becomes a Defaulting Lender) be reallocated among the non-Defaulting Lenders in accordance with their respective Ratable Shares (calculated without regard to such Defaulting
Lender’s Commitment) but only to the extent that (x) no Default or Event of Default shall have occurred and be continuing (and, unless the Borrower shall have otherwise notified the Administrative Agent at the time, the Borrower shall be
deemed to have represented and warranted that such condition is satisfied at such time), and (y) such reallocation does not cause the Credit Exposure of any non-Defaulting Lender to exceed such non-Defaulting Lender’s Commitment.

 (iv) If the reallocation described in clause (iii) above cannot, or can only partially, be effected, the
Borrower shall, without prejudice to any right or remedy available to it hereunder or under law, within two Business Days following notice by the Administrative Agent, Cash Collateralize such Defaulting Lender’s Letter of Credit Exposure (after
giving effect to any partial reallocation pursuant to clause (iii) above) in accordance with the procedures set forth in Section 2.20(c). 
 (b) If the Borrower, the Administrative Agent and the Fronting Bank agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be a Defaulting Lender, the
Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender
will, to the extent applicable, purchase that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in
Participated Letters of Credit to be held on a pro rata basis by the Lenders in accordance with their respective Credit Exposures (without giving effect to Section 2.20(a)(iii), 

  
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whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower
while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of
any party hereunder arising from that Lender’s having been a Defaulting Lender. 
 (c) At any time that there shall exist a
Defaulting Lender, within two Business Days upon the request of the Administrative Agent or the Fronting Bank in accordance with Section 2.20(a)(iv), the Borrower shall deliver to the Administrative Agent Cash Collateral in an amount
sufficient to cover all Fronting Exposure (after giving effect to Section 2.20(a)(iii) and any Cash Collateral provided by the Defaulting Lender). 
 (i) All Cash Collateral (other than credit support not constituting funds subject to deposit) shall be maintained in blocked, non-interest bearing deposit accounts with the Administrative Agent. Each of
the Borrower, and to the extent provided by any Lender, such Lender, hereby grants to (and subjects to the control of) the Administrative Agent, for the benefit of the Administrative Agent, the Fronting Bank and the Lenders, and agrees to maintain,
a first priority security interest in all such cash, deposit accounts and all balances therein, and in all proceeds of the foregoing, all as security for the obligations to which such Cash Collateral may be applied pursuant to clause
(ii) below. If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent as herein provided, or that the total amount of such Cash Collateral is less
than the applicable Fronting Exposure and other obligations secured thereby, the Borrower or the relevant Defaulting Lender will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral
in an amount sufficient to eliminate such deficiency. 
 (ii) Notwithstanding anything to the contrary contained
in this Agreement, Cash Collateral provided under any of this Section 2.20 in respect of Participated Letters of Credit shall be held and applied to the satisfaction of the specific Letter of Credit Exposure, obligations to fund
participations therein (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) and other obligations for which the Cash Collateral was so provided, prior to any other application of such property
as may be provided for herein. 
 (iii) Cash Collateral (or the appropriate portion thereof) provided to reduce
Fronting Exposure or other obligations shall be released promptly following (i) the elimination of the applicable Fronting Exposure or other obligations giving rise thereto (including by the termination of Defaulting Lender status of the
applicable Lender (or, as appropriate, its assignee)), or (ii) the Administrative Agent’s good faith determination that there exists excess Cash Collateral; provided, however, (x) that Cash Collateral furnished by or on behalf of the
Borrower shall not be released during the continuance of a Default or Event of Default (and following application as provided in this Section 2.20 may be otherwise applied in accordance with Section 2.13(a)), and (y) the
Person providing Cash Collateral and the Fronting Bank may agree that Cash Collateral shall not be released but instead held to support future anticipated Fronting Exposure or other obligations. 

  
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 ARTICLE 3 
 CONDITIONS OF LENDING 
 Section 3.01 Conditions Precedent to
Closing. The obligation of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit shall not become effective until the date (the “Closing Date”) on which each of the following conditions is satisfied or
waived in accordance with Section 8.01: 
 (a) The Administrative Agent shall have received the following, each
(unless otherwise specified below) dated the Closing Date and in form and substance reasonably satisfactory to the Administrative Agent: 
 (i) This Agreement duly executed and delivered by the Borrower and each of the other parties hereto. 
 (ii) A Note executed by the Borrower in favor of each Lender requesting a Note at least two Business Days prior to the Closing Date. 

(iii) Copies, certified by the Secretary or an Assistant Secretary of the Borrower, of (x) the certificate of
incorporation and by-laws of the Borrower, (y) the resolutions of the board of directors of the Borrower authorizing this Agreement and the transactions contemplated hereby, and (z) all documents evidencing other necessary corporate action
and governmental approvals, if any, with respect to this Agreement. 
 (iv) A certificate of the Secretary or an
Assistant Secretary of the Borrower certifying the names and true signatures of the officers of the Borrower authorized to sign this Agreement and the documents to be delivered hereunder. 

(v) A certificate from the Secretary of State of the State of Delaware dated a date reasonably close to the date hereof as
to the good standing of and charter documents filed by the Borrower. 
 (vi) A favorable opinion of Ropes and
Gray LLP, counsel to the Borrower, in form and substance reasonably satisfactory to the Administrative Agent. 

(vii) A certificate of a Responsible Officer of the Borrower certifying that (i) no Default or Event of Default has
occurred and is continuing as of the Closing Date and (ii) each of the representations and warranties set forth in Section 4.01 are true and correct in all material respects as of the Closing Date. 

(viii) Evidence that all material consents, licenses, permits and governmental and third-party consents and approvals
required for the due making and performance by the Borrower of this Agreement have been obtained and remain in full force and effect. 

  
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 (ix) The audited Consolidated balance sheet and Consolidated statements of
income and cash flows of the Borrower as at and for the fiscal year ended December 31, 2010; 
 (x) The
unaudited Consolidated balance sheet and Consolidated statements of income and cash flows of the Borrower as at and for the three-month period ended March 31, 2011, accompanied by a certificate of a senior financial officer of the Borrower,
which certificate shall state that such financial statements present fairly, in all material respects, the Consolidated financial position of the Borrower and its Subsidiaries as of the date thereof and the Consolidated results of their operations
for the period covered thereby in conformity with GAAP, consistently applied (subject to normal year-end audit adjustments); 
 (xi) The annual Statutory Statement of each Material Insurance Subsidiary and an equivalent financial statement for each Lloyd’s syndicate in which a Subsidiary of the Borrower has a membership
interest, in each case for the fiscal year ended December 31, 2010, as filed with the applicable Insurance Regulatory Authority. 
 (xii) Evidence of payment by the Borrower of all documented fees and expenses of the Lenders, the Administrative Agent and the Lead Arrangers and of the expenses then due and payable under the Fee Letters
or under Section 8.04, including the reasonable fees and disbursements of counsel to the Administrative Agent, in connection with the negotiation, preparation, execution and delivery of this Agreement. 

(xiii) All documentation and other information required by regulatory authorities under applicable “know your
customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act. 
 (b) There
shall not have occurred since December 31, 2010 a Material Adverse Change. 
 The Administrative Agent shall notify the Borrower and the
Lenders of the Closing Date, and such notice shall be conclusive and binding evidence of the satisfaction of the foregoing conditions and the effectiveness of this Agreement. 
 Section 3.02 Conditions Precedent to Each Credit Extension. The obligation of each Lender and each Issuing Bank to make any Credit Extension hereunder shall be subject to the satisfaction of
the following conditions precedent on the relevant date of such Credit Extension: 
 (a) The Closing Date shall have occurred.

 (b) The Borrower shall have delivered a Notice of Borrowing in accordance with Section 2.02(a) or a Letter of
Credit Notice in accordance with Section 2.03(a)(ii) or Section 2.03(b)(ii), as applicable. 
 (c) Each
of the representations and warranties contained in Section 4.01 are true and correct in all material respects on and as of the date of such Credit Extension, before and after giving effect to the Credit Extension and to the application
of the proceeds therefrom, as though 

  
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made on and as of the date of such Credit Extension (except to the extent any such representation or warranty is expressly stated to have been made as of a specific date, in which case such
representation or warranty is true and correct in all material respects as of such date). 
 (d) With respect to the Issuance of
any Letter of Credit, the conditions in Section 2.03(c) have been satisfied. 
 (e) No Default or Event of Default
shall have occurred and be continuing on such date, both immediately before and after giving effect to such Credit Extension. 

Each giving of a Notice of Borrowing or a Letter of Credit Notice, and the consummation of each Credit Extension, shall be deemed to
constitute a representation and warranty by the applicable Borrower that the statements contained in Section 3.02(c) through Section 3.02(e) above are true as of the date such Credit Extension is made. 

ARTICLE 4 

REPRESENTATIONS AND WARRANTIES 
 Section 4.01 Representations and Warranties. The Borrower represents and warrants as follows: 
 (a) (i) the Borrower has heretofore furnished to each of the Lenders (including by furnishing the Form 10-K of the Borrower filed with the Securities and Exchange Commission) its audited Consolidated
balance sheet and Consolidated statements of income and cash flows as at and for the fiscal year ended December 31, 2010, and such financial statements fairly present, in all material respects, the Consolidated financial condition and results
of operations of the Borrower and its Subsidiaries as at the date thereof and for such fiscal year, all in accordance with GAAP; 
 (ii) the Borrower has heretofore furnished (including by furnishing the Form 10-Q of the Borrower filed with the Securities and Exchange Commission) to each of the Lenders its unaudited Consolidated
balance sheet and Consolidated statements of income and cash flows as at and for the three-month period ended March 31, 2011, and such financial statements fairly present, in all material respects, the Consolidated financial position and
results of operations of the Borrower and its Subsidiaries as at the date thereof and for such three-month period, all in accordance with GAAP (subject to normal year end audit adjustments and the absence of footnotes); 

(iii) the Borrower has heretofore furnished to each of the Lenders the annual Statutory Statement of each Material
Insurance Subsidiary and an equivalent financial statement for each Lloyd’s syndicate in which a Subsidiary of the Borrower has a membership interest, in each case for the fiscal year ended December 31, 2010, as filed with the applicable
Insurance Regulatory Authority, and each such annual Statutory Statement (or, with respect to any Lloyd’s syndicate in which a Subsidiary of the Borrower has membership interest, such equivalent financial statement filing) presents fairly, in
all material respects, the financial position and the results of operations of such Material Insurance Subsidiary or Lloyd’s syndicate, as applicable, as at and for the fiscal year ended December 31, 2010, in accordance with SAP; and

  
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 (iv) since December 31, 2010, there has been no Material Adverse
Change. 
 (b) There is no action, proceeding or investigation pending, or to the knowledge of the Borrower, overtly threatened
in writing against the Borrower or any of its Subsidiaries before any court, governmental agency or arbitrator which (i) is reasonably likely to have a Material Adverse Effect or (ii) purports to affect this Agreement or the transactions
contemplated hereby. 
 (c) The Borrower and each of its Subsidiaries (i) is duly organized, validly existing and (to the
extent applicable in respect of the relevant jurisdiction) in good standing under the laws of its jurisdiction of organization, (ii) is duly qualified and (to the extent applicable in respect of the relevant jurisdiction) in good standing as a
foreign corporation in each other jurisdiction in which it owns or leases Property or in which the conduct of its business requires it to so qualify or be licensed and where, in each case, failure so to qualify and be in good standing would
reasonably be expected to have a Material Adverse Effect and (iii) has all requisite corporate power and authority to own or lease and operate its Properties and to carry on its business as now conducted and as proposed to be conducted except
as could not reasonably be expected to have a Material Adverse Effect. 
 (d) The Borrower and each of its Subsidiaries is in
compliance with all federal, state and local laws and regulations (including, without limitation, all applicable environmental laws and ERISA) applicable to the Borrower, its Subsidiaries and their respective Properties, except to the extent failure
to so comply would not (either individually or in the aggregate) reasonably be expected to have a Material Adverse Effect. 

(e) All material consents, licenses, permits and governmental and third-party consents and approvals required for the due making and
performance by the Borrower of this Agreement and the Notes have been obtained and remain in full force and effect. 
 (f) This
Agreement is, and each Note when duly executed and delivered pursuant to Section 2.18 will be, a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws affecting enforcement of creditors’ rights generally or general principles of equity. 

(g) The making and performance by the Borrower of this Agreement and the Notes are within the Borrower’s corporate powers, have been
duly authorized by all necessary corporate action, and (i) do not contravene the Borrower’s certificate of incorporation or by-laws or (ii) contravene, violate or breach any material contractual restriction binding on the Borrower or
its Subsidiaries or any material law, rule or regulation (including Regulations T, U or X), or any material order, writ, judgment, injunction, decree, determination or award, except for any such contravention, violation or breach referred to in
clause (ii) which could not reasonably be expected to have a Material Adverse Effect. 
 (h) Each of the Borrower and its
Subsidiaries has good and marketable title to, valid leasehold interests in, or valid licenses to use, all Properties material to its business, and all such Properties are in good working order and condition, ordinary wear and tear excepted, in each
case except as would not reasonably be expected to have a Material Adverse Effect. 

  
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 (i) The Borrower and each of its Subsidiaries have paid and discharged all taxes,
assessments, claims and governmental charges or levies imposed upon it or upon its Property, except (i) any such tax, assessment, claim or charge that is being contested in good faith and by proper proceedings and as to which appropriate
reserves are being maintained in accordance with Section 5.01(b) or (ii) to the extent that any failure to do so could not reasonably be expected to have a Material Adverse Effect. 

(j) The Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose
of buying or carrying Margin Stock, and no proceeds of any Loan or Letter of Credit will be used for the purpose, whether immediate, incidental or ultimate, of buying or carrying Margin Stock or otherwise in violation of Regulations T, U or X. At
the time of each Borrowing or Issuance of a Letter of Credit and after giving effect thereto, not more than 25 percent of the value of the assets (either of the Borrower or of the Borrower and its Subsidiaries on a Consolidated basis) that are
subject to the restrictions in Section 5.03(b) and Section 5.03(d) consist of Margin Stock. 
 (k) No
ERISA Event has occurred or is reasonably expected to occur with respect to any Plan that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, has resulted or would reasonably be expected to
result in a liability to the Borrower or its ERISA Affiliates in excess of $10,000,000. 
 (l) The Borrower is not an
“investment company” as defined in the Investment Company Act of 1940, as amended. 
 (m) As of the date hereof,
(i) Schedule III hereto is a complete list of the Subsidiaries of the Borrower, (ii) each such Subsidiary is duly organized and validly existing under the jurisdiction of its organization shown in said Schedule III, and (iii) the
percentage ownership by the Borrower of each such Subsidiary is as shown in said Schedule III. 
 (n) The Borrower will use the
proceeds of the Loans and the Letters of Credit only for the general corporate purposes of the Borrower and its Subsidiaries in the ordinary course of business (in compliance in all material respects with all applicable legal and regulatory
requirements); provided that neither the Administrative Agent nor any Lender shall have any responsibility as to the use of any such proceeds. 
 (o) (i) The Borrower is, and immediately after giving effect to the making of each Credit Extension and the use of proceeds thereof, will be, Solvent and (ii) the Borrower and its Subsidiaries, on a
consolidated basis and immediately after giving effect to the making of each Credit Extension hereunder and the use of proceeds thereof, will be, Solvent. 
 (p) All written information (other than information of a general economic or industry specific nature) that has been made available by the Borrower or any of its representatives to the Administrative
Agent or any Lender in connection with the negotiation of this Agreement (including, for the avoidance of doubt, any such information in any confidential information memorandum or related materials provided in connection with the syndication of the

  
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Commitments), when taken as a whole, on or as of the dates on which such information was made available, did not contain any untrue statement of a material fact or omit to state a fact necessary
to make the statements contained therein not misleading in light of the time and circumstances under which such statements were made (after giving effect to all supplements and updates thereto). 

ARTICLE 5 

COVENANTS OF THE BORROWER 
 Section 5.01 Affirmative Covenants. So long as any principal of or interest on any Loan or any other amount payable hereunder shall remain unpaid or any Lender shall have any Commitment
hereunder, the Borrower covenants and agrees that: 
 (a) Reporting Requirements. The Borrower will furnish to the
Lenders: 
 (i) as soon as available and in any event within 60 days after the end of each of the first three
quarters of each fiscal year of the Borrower, the Consolidated balance sheet of the Borrower and its Subsidiaries as of the last day of such quarter and the related Consolidated statements of income and cash flows for such quarter, in each case
setting forth in comparative form the corresponding figures from the corresponding quarter in the previous fiscal year, all prepared in conformity with GAAP and accompanied by a certificate of a senior financial officer of the Borrower, which
certificate shall state that such financial statements present fairly, in all material respects, the Consolidated financial position of the Borrower and its Subsidiaries as of the date thereof and the Consolidated results of their operations for the
period covered thereby in conformity with GAAP, consistently applied (subject to normal year-end audit adjustments and the absence of footnotes); 
 (ii) as soon as available and in any event within 90 days after the end of each fiscal year of the Borrower, the Consolidated balance sheet of the Borrower and its Subsidiaries as of the last day of such
fiscal year and the related Consolidated statements of income and cash flows for such fiscal year, setting forth in comparative form the corresponding figures from the previous fiscal year, all prepared in conformity with GAAP and accompanied by an
unqualified report and opinion of independent certified public accountants of national standing and reputation, which shall state that such financial statements, in the opinion of such accountants, present fairly, in all material respects, the
Consolidated financial position of the Borrower and its Subsidiaries as of the date thereof and the Consolidated results of their operations for such year in conformity with GAAP, consistently applied; 

(iii) as soon as possible and in any event within five Business Days after the Borrower obtains knowledge of the
occurrence of any Event of Default or Default continuing on the date of such statement, a statement of a Responsible Officer setting forth details of such Event of Default or Default and the action which the Borrower has taken and proposes to take
with respect thereto; 

  
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 (iv) within a reasonable time after filing thereof, copies of all
registration statements (without exhibits) and all annual, quarterly and monthly reports (if any) filed by the Borrower with the Securities and Exchange Commission and promptly upon the mailing thereof to the shareholders of the Borrower generally,
copies of all financial statements, reports and proxy statements so mailed; 
 (v) promptly after the Borrower or
any ERISA Affiliate knows or should reasonably know that any ERISA Event has occurred with respect to which the liability or potential liability of the Borrower or any of its ERISA Affiliates has had or would reasonably be expected to have a
Material Adverse Effect, a statement of a Responsible Officer describing such ERISA Event and the action, if any, which the Borrower or such ERISA Affiliate proposes to take with respect thereto; 

(vi) promptly after receipt thereof by the Borrower or any ERISA Affiliate, copies of each notice from the PBGC stating
its intention to terminate any Plan or to have a trustee appointed to administer any Plan where such action would have a Material Adverse Effect; 
 (vii) promptly after filing with the applicable Insurance Regulatory Authority and in any event within 60 days after the end of each of the first three quarterly fiscal periods of each fiscal year of each
Material Insurance Subsidiary and each Lloyd’s syndicate in which a Subsidiary of the Borrower has a membership interest, the quarterly Statutory Statement of such Material Insurance Subsidiary for such quarterly fiscal period (or, with respect
to each Lloyd’s Syndicate in which the Borrower has a membership interest, an equivalent financial statement of such Lloyd’s syndicate for such quarterly fiscal period); 

(viii) promptly after filing with the applicable Insurance Regulatory Authority and in any event within 90 days after the
end of each fiscal year of each Material Insurance Subsidiary and each Lloyd’s syndicate in which a Subsidiary of the Borrower has a membership interest, the annual Statutory Statement of such Material Insurance Subsidiary, including, without
limitation, management’s discussion and analysis for such year (or, with respect to any Lloyd’s Syndicate in which the Borrower has a membership interest, an equivalent financial statement of such Lloyd’s syndicate for such year);

 (ix) promptly upon the occurrence of any change in the Moody’s Rating or the Standard &
Poor’s Rating, or an A.M. Best Financial Strength Rating with respect to any Insurance Subsidiary, notice thereof (for the avoidance of doubt, a change in outlook shall not constitute a change in rating); 

(x) promptly upon the commencement of, or any material adverse development in, any litigation, investigation or proceeding
against the Borrower or any of its Subsidiaries that could reasonably be expected to have a Material Adverse Effect, notice thereof with a description thereof in reasonable detail; and 

(xi) promptly after request therefor, such other business and financial information respecting the condition or
operations, financial or otherwise, of the Borrower or any of its Material Insurance Subsidiaries as the Administrative Agent or any Lender may from time to time reasonably request. 

  
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 Notwithstanding the foregoing, the obligations in paragraphs (i), (ii) and (iv) of this
Section 5.01(a) shall be deemed satisfied with respect to financial information of the Borrower and its Subsidiaries by the furnishing the Form 10-K or 10-Q or any other document of the Borrower filed with the Securities and Exchange
Commission, as applicable, on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet at the website address provided to the Lenders; or (ii) on which such
documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative
Agent); provided that (A) the Borrower shall deliver paper copies of such documents to the Administrative Agent or any Lender that requests in writing (including by electronic mail) the Borrower to deliver such paper copies and
(B) the Borrower shall notify the Administrative Agent (by telecopier or electronic mail) of the posting of any such documents satisfying the obligations in paragraphs (i), (ii) and (iv) of this Section 5.01(a).

 The Borrower will furnish to the Lenders at the time it furnishes its financial statements pursuant to paragraphs (i) and
(ii) above, a certificate of a Responsible Officer, in the form of Exhibit F, setting forth reasonably detailed calculations demonstrating that the Borrower is in compliance with the covenants in Section 5.02. The Borrower
and each Lender acknowledge that certain of the Lenders may be Public Lenders and, if documents or notices required to be delivered pursuant to this Section 5.01(a) or otherwise are being distributed through IntraLinks/IntraAgency,
SyndTrak or another relevant website or other information platform (the “Platform”), any document or notice that the Borrower has indicated contains Non-Public Information shall not be posted on that portion of the Platform
designated for such Public Lenders. The Borrower agrees to clearly designate all information provided to the Administrative Agent by or on behalf the Borrower which is suitable to make available to Public Lenders. If the Borrower has not indicated
whether a document or notice delivered pursuant to this Section 5.01(a) contains Non-Public Information, the Administrative Agent reserves the right to post such document or notice solely on that portion of the Platform designated for
Lenders who wish to receive material nonpublic information with respect to the Borrower, its Subsidiaries and their securities.  
 (b) Payment of Taxes, Etc. The Borrower will pay and discharge, and cause each of its Subsidiaries to pay and discharge, before the same shall become delinquent, all taxes, assessments, claims and
governmental charges or levies imposed upon it or upon its Property, except to the extent that any failure to do so would not reasonably be expected to have a Material Adverse Effect; provided that neither the Borrower nor any of its Subsidiaries
shall be required to pay or discharge any such tax, assessment, claim or charge that is being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained. 

(c) Corporate Existence, Compliance with Laws, Etc. The Borrower will, and will cause each of its Material Subsidiaries to,
(i) preserve and maintain all of its material rights, privileges, licenses and franchises, including all tradenames, patents and other intellectual property necessary for its business, except to the extent the failure to preserve and maintain
the same would not reasonably be expected to have a Material Adverse Effect, and (ii) preserve and 

  
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maintain its legal existence, provided that nothing in this sentence shall prohibit any transaction not otherwise prohibited under Section 5.03(c). The Borrower will comply,
and will cause each of its Subsidiaries to comply, with all applicable laws, statutes, rules, regulations and orders, including, without limitation, ERISA, the PATRIOT Act and all applicable environmental laws, except for any non-compliance which
would not (either individually or in the aggregate) reasonably be expected to have a Material Adverse Effect. 
 (d)
Maintenance of Properties, Etc. The Borrower will maintain and preserve, and will cause each of its Subsidiaries to maintain and preserve, all of its Properties that are used or useful in the conduct of its business in good working order and
condition, ordinary wear and tear excepted, except where failure to do so would not reasonably be expected to have a Material Adverse Effect. The Borrower will maintain, and cause each of its Subsidiaries to maintain, appropriate and adequate
insurance with responsible and reputable insurance companies or associations or with self-insurance programs to the extent consistent with prudent practices of the Borrower and its Subsidiaries or otherwise customary in their respective industries
in such amounts and covering such risks as is customary in the industries in which the Borrower or such Subsidiary operates. 

(e) Keeping of Books. The Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and account as
are necessary to prepare Consolidated financial statements in accordance with GAAP, UKGAAP or SAP, as applicable, in which full and correct entries in all material respects shall be made of all financial transactions and the assets and business of
the Borrower and each such Subsidiary in accordance with GAAP, UKGAAP or SAP, as applicable. 
 (f) Visitation Rights.
The Borrower will, at any reasonable time during normal business hours and upon reasonable prior notice and from time to time, permit the Administrative Agent or any of the Lenders or any agents or representatives thereof (in each case at their own
expense (except as described below) and subject to Section 8.12 hereof) to examine and make copies of and abstracts from the records and books of account of, and visit the Properties of, the Borrower and any of its Subsidiaries, and to
discuss the affairs, finances and accounts of the Borrower and any of its Subsidiaries with any of their officers or directors; provided that, excluding any such examination or visit during the continuance of an Event of Default, the
Administrative Agent and the Lenders shall not, collectively, exercise such rights more than once during any calendar year. In addition, subject to customary access agreements, at any time when an Event of Default has occurred and is continuing, the
Borrower will, and will cause its Subsidiaries to, permit the Administrative Agent or any of the Lenders or any agents or representatives thereof to discuss the affairs, finances and accounts of the Borrower and its Subsidiaries with their
independent certified public accountants, and the Borrower will be responsible for the reasonable costs and expenses of the Administrative Agent and the Lenders and the agents and representatives thereof incurred in connection with this clause (f).

 (g) Use of Proceeds. 
 (i) The Borrower will use the proceeds of the Loans only for the general corporate purposes of the Borrower and its Subsidiaries in the ordinary course of business (in compliance in all material respects
with all applicable legal and regulatory 

  
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requirements); provided that (i) no such use of the proceeds will be, directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of buying or carrying any
Margin Stock in violation of Regulations T, U or X and (ii) neither the Administrative Agent nor any Lender shall have any responsibility as to the use of any such proceeds. 

(ii) The Borrower shall use the Letters of Credit only as permitted by Section 2.03(g). 

Section 5.02 Financial Covenants. So long as any principal of or interest on any Loan or any other amount payable hereunder
shall remain unpaid or any Lender shall have any Commitment hereunder, the Borrower covenants and agrees that: 
 (a) Minimum
Net Worth. The Borrower will not permit Net Worth as of the last day of any fiscal quarter of the Borrower to be less than the sum of (i) $1,590,000,000 plus (ii) an amount equal to 50% of the Borrower’s Consolidated net
income (if positive) for such fiscal quarter and for each prior fiscal quarter of the Borrower ending after the Closing Date plus (iii) an amount equal to 50% of the aggregate Net Equity Proceeds of any Equity Issuances made after the
Closing Date. 
 (b) RBC Ratio. The Borrower will not permit the RBC Ratio of either HIC or CIC as of the last day of any
fiscal quarter of the Borrower to be less than 175%. 
 (c) Leverage Ratio. The Borrower will not permit the Leverage
Ratio as of the last day of any fiscal quarter of the Borrower to be greater than 35%. 
 Section 5.03 Negative
Covenants. So long as any principal of or interest on any Loan or any other amount payable hereunder shall remain unpaid or any Lender shall have any Commitment hereunder, the Borrower covenants and agrees that: 

(a) Financial Debt. The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any
Financial Debt, except: 
 (i) Financial Debt created hereunder; 

(ii) Financial Debt and commitments to provide Financial Debt existing on the date hereof and set forth on Schedule II;

 (iii) Financial Debt of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other
Subsidiary; 
 (iv) Financial Debt incurred pursuant to Securitization Transactions; 

(v) Financial Debt in respect of capitalized lease obligations, synthetic lease obligations or secured by purchase money
security interests, provided that the aggregate principal amount of Financial Debt permitted by this clause (v) shall not exceed $50,000,000 at any time outstanding; 

  
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 (vi) Guaranties by the Borrower of Financial Debt incurred by its
Subsidiaries otherwise permitted under this Section 5.03(a); 
 (vii) Financial Debt in respect of
Hybrid Securities, Disqualified Equity Interests and Preferred Securities issued by the Borrower or any trust or other special purpose entity formed by the Borrower as to which no Subsidiary (other than any such trust or other special purpose
entity) of the Borrower has any obligation; 
 (viii) Financial Debt in respect of subordinated securities of the
Borrower so long as (a) the obligations of the Borrower thereunder are unsecured and fully subordinated as to payment and performance in all respects to all of the Obligations of the Borrower under this Agreement, (b) no Subsidiary of the
Borrower has any obligations thereunder and (c) such subordinated securities do not have any required amortization, maturity, mandatory put, redemption, repayment, or other similar provision or requirement, or any cash interest thereon, and in
any event is not payable, falling due or capable of falling due, prior to at least 91 days after the Commitment Termination Date, provided that the Borrower shall be permitted to make cash interest payments pursuant to the terms of such other
subordinated securities so long as (x) no payment Default or Event of Default has occurred and is continuing and (y) the interest rate in respect thereof shall be based on prevailing market rates at the time of issuance of such other
subordinated securities; 
 (ix) Financial Debt in respect of borrowings from a Federal Home Loan Bank in the
ordinary course of business and on ordinary business terms pursuant to a membership in such Federal Home Loan Bank; 
 (x) Financial Debt associated with the CitySquare Project; provided, that the aggregate principal amount of Financial Debt permitted by this clause shall not exceed $75,000,000 at any time
outstanding; 
 (xi) Financial Debt assumed in connection with any Acquisition, provided that such
Financial Debt is not incurred in contemplation of such Acquisition and no other Subsidiary (other than the Subsidiary being acquired, if applicable) has any liability or obligations in respect of such Financial Debt; 

(xii) Financial Debt incurred by the Borrower in addition to the foregoing; 

(xiii) Financial Debt incurred by the Subsidiaries of the Borrower, provided that the aggregate principal amount of
Financial Debt permitted by this clause shall not exceed $75,000,000 at any time outstanding; 
 (xiv) Financial
Debt in respect of letters of credit issued for the benefit of Insurance Regulatory Authorities and letters of credit issued in support of funds at the Society and Corporation of Lloyd’s requirements (including any such Financial Debt set forth
on Schedule II); and 
 (xv) Any extension, renewal or replacement of any of the foregoing Financial Debt that
(A) does not include Financial Debt of an obligor that was not an obligor with 

  
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respect to the Financial Debt being extended, renewed or replaced, (B) does not increase the outstanding principal amount of the Financial Debt being extended, renewed or replaced except by
an amount equal to unpaid accrued interest thereon, prepayment premiums not exceeding 5% of the outstanding principal amount of such Financial Debt, and fees and expenses incurred in connection with such extension, renewal or replacement, and by an
amount equal to any existing commitments unutilized thereunder and (C) in the case of Financial Debt that is subordinated in right of payment to the Obligations, is subordinated to at least the same extent as, and has a maturity not earlier
than, and weighted average life to maturity not shorter than, the Financial Debt being renewed or replaced. 
 For purposes of
determining compliance with this Section 5.03(a), the Borrower will be entitled to divide an item of Financial Debt that meets the criteria of one of the categories of Financial Debt described in clauses (i) through (xv) above
between such applicable clause and any other applicable clause. 
 (b) Liens. The Borrower will not, nor will it permit
any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien upon any of its Property, whether now owned or hereafter acquired, except Permitted Liens. 
 (c) Mergers, Etc. The Borrower will not, and will not permit any of its Material Subsidiaries to, merge or consolidate with or into, or convey, transfer, lease or otherwise dispose of, whether in
one transaction or in a series of transactions, all or substantially all of the Property (whether now owned or hereafter acquired) of the Borrower or such Material Subsidiary to, any Person, or liquidate or dissolve, except that, if at the time
thereof and immediately after giving effect thereto no Default shall have occurred and be continuing, (i) any Material Subsidiary may merge into (1) the Borrower in a transaction in which the Borrower is the surviving corporation or
(2) any other Subsidiary, (ii) any Material Subsidiary may sell, transfer, lease or otherwise dispose of its assets to the Borrower or to another Subsidiary, (iii) any Material Subsidiary may liquidate or dissolve if the Borrower
determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders, and (iv) any Material Subsidiary may engage in a disposition permitted by
Section 5.03(d). 
 (d) Disposition of Assets. The Borrower will not, and will not permit any of its Material
Subsidiaries to, sell, lease, transfer or otherwise dispose of any substantial part of its Property, or grant any option or other right to purchase, lease or otherwise acquire any such Property, except (i) sales of inventory in the ordinary
course of its business, (ii) sales of assets which are not material to the operation of the Borrower or such Material Subsidiaries or are no longer used or useful in connection with the operation of the Borrower or such Material Subsidiaries,
(iii) transfers of Property by the Borrower or any Material Subsidiary to the Borrower or any other Subsidiary, (iv) dispositions pursuant to Securitization Transactions, (v) dispositions in connection with the CitySquare Project, and
(vi) other dispositions during the term of this Agreement, the net cash proceeds of which shall not exceed in the aggregate 7.5% of the Net Worth of the Borrower and its Subsidiaries (determined as of the end of the most recent fiscal quarter
for which financial statements are available). 

  
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 (e) Transactions with Affiliates. The Borrower will not, and will not permit any of
its Subsidiaries to, sell, lease or otherwise transfer any Property to, or purchase, lease or otherwise acquire any assets from, or otherwise engage in any transactions with, any of its Affiliates, except (a) in the ordinary course of business
at prices and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties and (b) transactions between or among the Borrower and its
Subsidiaries not involving any other Affiliate. 
 (f) Line of Business. The Borrower will not, and will not permit any
of its Material Subsidiaries to, make any material change in the nature or conduct of the business of the Borrower or such Material Subsidiary as conducted on the date hereof. 
 (g) Anti-dividend-block. Except to the extent required by applicable law, statute, rule, regulation, order or agreement with regulators, the Borrower will not permit any of its Subsidiaries to
agree to or have in effect any contractual restriction on the payment of dividends or the making of other distributions to the Borrower (each, a “Burdensome Agreement”) other than: 

(i) Burdensome Agreements (A) in existence on the date hereof (to the extent not otherwise permitted by this
Section 5.03(g)) that are listed on Schedule IV hereto and (B) to the extent Burdensome Agreements permitted by clause (A) are contained in an agreement evidencing Financial Debt, any agreement evidencing any permitted
modification, replacement, renewal, extension or refinancing of such Financial Debt so long as such modification, replacement, renewal, extension or refinancing does not expand the scope of such Burdensome Agreement or include any other Subsidiaries
as parties thereto; 
 (ii) Burdensome Agreements that are binding on a Subsidiary of the Borrower at the time
such Person first becomes a Subsidiary of the Borrower, so long as such Burdensome Agreements were not entered into in contemplation of such Person becoming a Subsidiary of the Borrower; 

(iii) Burdensome Agreements that are customary restrictions on leases, subleases, licenses or asset sale agreements
otherwise permitted hereby so long as such restrictions relate to the assets subject thereto; 
 (iv) Burdensome
Agreements that are customary provisions restricting subletting or assignment of any lease governing a leasehold interest of any Subsidiary of the Borrower; 
 (v) Burdensome Agreements that are customary provisions restricting assignment of any agreement entered into in the ordinary course of business; 

(vi) Burdensome Agreements that are restrictions on cash or other deposits imposed by customers under contracts entered
into in the ordinary course of business; and 

  
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 (vii) Burdensome Agreements to the extent set forth in an agreement
evidencing Financial Debt of the Borrower permitted under Section 5.03(a). 
 (h) Restricted Payments. At any
time after the occurrence and during the continuance of any Event of Default under Section 6.01(a), Section 6.01(c) (only if such Event of Default arises due to the Borrower’s failure to perform or observe any term,
covenant or agreement contained in Section 5.01(a)(i), Section 5.01(a)(ii) or Section 5.02), Section 6.01(d), Section 6.01(e), Section 6.01(f), or Section 6.01(j),
the Borrower shall not, directly or indirectly declare or make, or agree to make, directly or indirectly, any Restricted Payment other than Restricted Payments for the repurchase, retirement or other acquisition or retirement for value of Equity
Interests of the Borrower by any future, present or former employee, director, officer, manager or consultant (or any Immediate Family Member thereof) of the Borrower or any of its Subsidiaries upon the death, disability, retirement or termination
of employment of any such Person or otherwise pursuant to any employee or director equity plan, employee or director stock option plan or any other employee or director benefit plan or any agreement (including any stock subscription or shareholder
agreement) with any future, present or former employee, director, officer, manager or consultant of the Borrower or any of its Subsidiaries (including, for the avoidance of doubt, any principal and interest payable on any notes issued by the
Borrower (or of any direct or indirect parent of the Borrower) in connection with any such repurchase, retirement or other acquisition or retirement). Notwithstanding the foregoing, the restrictions contained in this Section 5.03(h)
shall not prohibit the Borrower from directly or indirectly declaring or making, or agreeing to make, directly or indirectly, any Restricted Payment at any time (i) there are no Loans outstanding under this Agreement and (ii) the Borrower
has delivered to the Administrative Agent (and the Administrative Agent is in possession of) cash collateral in an amount equal to 103% of the aggregate Stated Amount of all Letters of Credit outstanding hereunder as contemplated by
Section 2.03(f). 
 ARTICLE 6 
 EVENTS OF DEFAULT 
 Section 6.01 Events of Default. The
following events shall be Events of Default (each, an “Event of Default”): 
 (a) The Borrower shall fail to
pay any principal of any Loan or Reimbursement Obligation when the same becomes due and payable; or the Borrower shall fail to pay any interest on any Loan or in respect of any L/C Disbursement, any Commitment Fee, any Letter of Credit Fee, or any
other fee or Obligation payable hereunder or under any other Loan Document when due and such failure remains unremedied for three Business Days; 
 (b) Any representation or warranty made by the Borrower herein or in connection with this Agreement shall prove to have been incorrect in any material respect when made or deemed made; 

(c) (i) The Borrower shall fail to perform or observe any term, covenant or agreement contained in Section 5.01(a)(iii),
5.01(c)(ii), 5.01(g), 5.02 or 5.03; or (ii) the Borrower shall fail to perform or observe any other term, covenant or agreement contained in this Agreement or in

  
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any other Loan Document on its part to be performed or observed, and such failure remains unremedied for 30 days after notice thereof shall have been given to the Borrower by the Administrative
Agent; 
 (d) The Borrower or any of its Subsidiaries shall fail to pay any principal of any Debt (other than Debt hereunder)
having an aggregate outstanding principal amount of more than $50,000,000 or its equivalent in other currencies (such Debt, “Material Debt”), when the same becomes due and payable (whether at scheduled maturity, by required
prepayment, acceleration, demand or otherwise); or any other event shall occur or condition shall exist under any agreement or instrument relating to any Material Debt (either individually or in the aggregate), if the effect of such event or
condition is to accelerate, or to permit the acceleration of, the maturity of any Material Debt, or to require the same to be prepaid or defeased (other than by a regularly required payment); 

(e) The Borrower or any of the Borrower’s Material Subsidiaries shall generally not pay its debts as such debts become due, or shall
admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the Borrower or any of the Borrower’s Material Subsidiaries seeking
to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its Property and, in the case of any such proceeding instituted against the
Borrower or any of the Borrower’s Material Subsidiaries, such proceeding shall remain undismissed or unstayed for a period of 60 days; or the Borrower or any of the Material Subsidiaries shall take any corporate action to authorize any of the
actions set forth above in this clause (e); 
 (f) In connection with the actual or alleged insolvency of the Borrower or any
Material Insurance Subsidiary, any Insurance Regulatory Authority shall appoint a rehabilitator, receiver, custodian, trustee, conservator or liquidator or the like (collectively, a “conservator”) for the Borrower or such Material
Insurance Subsidiary, or cause possession of all or any substantial portion of the Property of the Borrower or such Material Insurance Subsidiary to be taken by any conservator; 

(g) Any judgment or order for the payment of money in excess of $50,000,000 shall be rendered against the Borrower or any of its
Subsidiaries and there shall be any period of 45 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; 

(h) An ERISA Event shall have occurred that, in the opinion of the Majority Lenders, when taken together with all other ERISA Events that
have occurred, would reasonably be expected to have a Material Adverse Effect; or 
 (i) There shall occur a Change in Control;
and 

  
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 (j) This Agreement shall at any time and for any reason be declared by a court of competent
jurisdiction to be null and void, or a proceeding shall be commenced by the Borrower or any Subsidiary, seeking to establish the invalidity or unenforceability thereof (exclusive of questions of interpretation of any provision thereof), or the
Borrower or any Subsidiary shall repudiate or deny in writing any portion of its liability or obligations hereunder, other than in each case due to the satisfaction in full of the Obligations and the termination of the Commitments hereunder.

 Section 6.02 Remedies. If any Event of Default shall occur and be continuing, then the Administrative Agent shall
at the request, or may with the consent, of the Majority Lenders, by notice to the Borrower, (i) declare the Commitments and the Issuing Banks’ obligation to issue Letters of Credit to be terminated, whereupon the same shall forthwith
terminate, (ii) declare the Loans, all interest thereon and all other amounts whatsoever payable under this Agreement to be forthwith due and payable, whereupon the Loans, all such interest and all such other amounts shall become and be
forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower, (iii) direct the Borrower to Cash Collateralize all Letters of Credit then outstanding
(whether or not any beneficiary under any such Letter of Credit shall have drawn or be entitled at such time to draw thereunder) in an amount of cash equal to 103% of the aggregate Stated Amount thereof, such amount to be held by the Administrative
Agent in such Borrower’s Cash Collateral Account as security for the Letter of Credit Exposure as described in Section 2.03(f), (iv) terminate any Letter of Credit or give a notice of nonrewal in respect thereof if permitted in
accordance with its terms, and (v) exercise all rights and remedies available to it under this Agreement, the other Loan Documents and applicable law; provided, however, that in the event of an Event of Default with respect to the
Borrower or any Material Subsidiary of the kind referred to in clause (e) of Section 6.01 above or with respect to the Borrower or any Material Insurance Subsidiary of the kind referred to in clause (f) of Section 6.01
above, (A) the Commitments and the Issuing Banks’ obligations to issue Letters of Credit shall automatically terminate and (B) the Loans, all such interest and all such amounts shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower. 

ARTICLE 7 

THE ADMINISTRATIVE AGENT 
 Section 7.01 Appointment of Administrative Agent. Wells Fargo is hereby appointed Administrative Agent hereunder and each Lender hereby authorizes Wells Fargo to act as Administrative Agent in
accordance with the terms hereof. The Administrative Agent hereby agrees to act in its capacity as such upon the express conditions contained herein. Except as expressly set forth herein, the provisions of this ARTICLE 7 are solely for the
benefit of the Administrative Agent and Lenders and neither the Borrower nor any of its Subsidiaries shall have any rights as a third party beneficiary of any of the provisions thereof. In performing its functions and duties hereunder, the
Administrative Agent shall act solely as an agent of Lenders and does not assume and shall not be deemed to have assumed any obligation towards or relationship of agency or trust with or for the Borrower or any of its Subsidiaries. 

  
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 Section 7.02 Power and Duties. Each Lender irrevocably authorizes the
Administrative Agent to take such action on such Lender’s behalf and to exercise such powers, rights and remedies hereunder as are specifically delegated or granted to the Administrative Agent by the terms hereof, together with such powers,
rights and remedies as are reasonably incidental thereto. The Administrative Agent shall have only those duties and responsibilities that are expressly specified herein. The Administrative Agent may exercise such powers, rights and remedies and
perform such duties by or through its agents or employees. The Administrative Agent shall not have, by reason hereof, a fiduciary relationship in respect of any Lender; and nothing herein, expressed or implied, is intended to or shall be so
construed as to impose upon the Administrative Agent any obligations in respect hereof except as expressly set forth herein. 

Section 7.03 General Immunity. 
 (a) No Responsibility for Certain Matters. The Administrative Agent shall not be responsible to any Lender for the execution, effectiveness, genuineness, validity, enforceability, collectability or
sufficiency hereof or for any representations, warranties, recitals or statements made herein or made in any written or oral statements or in any financial or other statements, instruments, reports or certificates or any other documents furnished or
made by the Administrative Agent to the Lenders or by or on behalf of the Borrower to the Administrative Agent or any Lender in connection herewith and the transactions contemplated hereby or for the financial condition or business affairs of the
Borrower or its Subsidiaries or any other Person liable for the payment of any obligations hereunder, nor shall the Administrative Agent be required to ascertain or inquire as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained herein or as to the use of the proceeds of the Loans or as to the existence or possible existence of any Event of Default or Default or to make any disclosures with respect to the foregoing. Anything
contained herein to the contrary notwithstanding, the Administrative Agent shall not have any liability arising from confirmations of the amount of outstanding Loans or the component amounts thereof. 

(b) Exculpatory Provisions. None of the Administrative Agent nor any of its officers, partners, members, directors, employees or
agents shall be liable to Lenders for any action taken or omitted by the Administrative Agent hereunder or in connection herewith except to the extent caused by the Administrative Agent’s gross negligence or willful misconduct, as determined by
a final, non-appealable judgment of a court of competent jurisdiction. The Administrative Agent shall be entitled to refrain from any act or the taking of any action (including the failure to take an action) in connection herewith or from the
exercise of any power, discretion or authority vested in it hereunder unless and until the Administrative Agent shall have received instructions in respect thereof from the Majority Lenders (or such other Lenders as may be required to give such
instructions under Section 8.01) and, upon receipt of such instructions from the Majority Lenders (or such other Lenders, as the case may be), the Administrative Agent shall be entitled to act or (where so instructed) refrain from
acting, or to exercise such power, discretion or authority, in accordance with such instructions. Without prejudice to the generality of the foregoing, (i) the Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any communication, instrument or document believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be protected in relying on opinions and
judgments of attorneys (who may be attorneys for the Borrower and its Subsidiaries), accountants, experts and other professional 

  
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advisors selected by it; and (ii) no Lender shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or (where so instructed)
refraining from acting hereunder in accordance with the instructions of the Majority Lenders (or such other Lenders as may be required to give such instructions under Section 8.01). 

(c) Delegation of Duties. The Administrative Agent may perform any and all of its duties and exercise its rights and powers under
this Agreement by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective
Affiliates. The exculpatory, indemnification and other provisions of this Section 7.03 and of Section 7.06 shall apply to any the Affiliates of the Administrative Agent and shall apply to their respective activities in
connection with the syndication of the facilities provided for herein as well as activities as the Administrative Agent. All of the rights, benefits, and privileges (including the exculpatory and indemnification provisions) of this
Section 7.03 and of Section 7.06 shall apply to any such sub-agent and to the Affiliates of any such sub-agent, and shall apply to their respective activities as sub-agent as if such sub-agent and Affiliates were named
herein. Notwithstanding anything herein to the contrary, with respect to each sub-agent appointed by the Administrative Agent, (i) such sub-agent shall be a third party beneficiary under this Agreement with respect to all such rights, benefits
and privileges (including exculpatory rights and rights to indemnification) and shall have all of the rights and benefits of a third party beneficiary, including an independent right of action to enforce such rights, benefits and privileges
(including exculpatory rights and rights to indemnification) directly, without the consent or joinder of any other Person, against any or all of the Borrower and its Subsidiaries and the Lenders, (ii) such rights, benefits and privileges
(including exculpatory rights and rights to indemnification) shall not be modified or amended without the consent of such sub-agent, and (iii) such sub-agent shall only have obligations to the Administrative Agent and not to the Borrower, any
Subsidiary of the Borrower, any Lender or any other Person and none of the Borrower, any Subsidiary of the Borrower, any Lender or any other Person shall have any rights, directly or indirectly, as a third party beneficiary or otherwise, against
such sub-agent. 
 Section 7.04 Administrative Agent Entitled to Act as Lender. The agency hereby created shall in
no way impair or affect any of the rights and powers of, or impose any duties or obligations upon, the Administrative Agent in its individual capacity as a Lender hereunder. With respect to its participation in the Loans, the Administrative Agent
shall have the same rights and powers hereunder as any other Lender and may exercise the same as if it were not performing the duties and functions delegated to it hereunder, and the term “Lender” shall, unless the context clearly
otherwise indicates, include the Administrative Agent in its individual capacity. The Administrative Agent and its Affiliates may accept deposits from, lend money to, own securities of, and generally engage in any kind of banking, trust, financial
advisory or other business with the Borrower or any of its Affiliates as if it were not performing the duties specified herein, and may accept fees and other consideration from the Borrower for services in connection herewith and otherwise without
having to account for the same to Lenders. 
 Section 7.05 Lenders’ Representations, Warranties and
Acknowledgement. 
 (a) Each Lender represents and warrants that it has made its own independent investigation of the
financial condition and affairs of the Borrower and its Subsidiaries in 

  
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connection with the making of the Loans hereunder and that it has made and shall continue to make its own appraisal of the creditworthiness of Borrower and its Subsidiaries. The Administrative
Agent shall not have any duty or responsibility, either initially or on a continuing basis, to make any such investigation or any such appraisal on behalf of Lenders or to provide any Lender with any credit or other information with respect thereto,
whether coming into its possession before the making of the Loans or at any time or times thereafter, and the Administrative Agent shall not have any responsibility with respect to the accuracy of or the completeness of any information provided to
Lenders. 
 (b) Each Lender, by delivering its signature page to this Agreement or an Assignment and Assumption shall be deemed
to have acknowledged receipt of, and consented to and approved, this Agreement and each other Loan Document. 

Section 7.06 Right to Indemnity. Each Lender, in proportion to its pro rata share of the Commitments or the aggregate
principal amount of outstanding Loans hereunder, severally agrees to indemnify the Administrative Agent and the Lead Arrangers, to the extent that the Administrative Agent and the Lead Arrangers shall not have been reimbursed by the Borrower, for
and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including counsel fees and disbursements) or disbursements of any kind or nature whatsoever which may be imposed on, incurred
by or asserted against the Administrative Agent or the Lead Arrangers in exercising its powers, rights and remedies or performing its duties hereunder or under the other Loan Documents or otherwise in its capacity as the Administrative Agent or the
Lead Arrangers in any way relating to or arising out of this Agreement or the other Loan Documents; provided, no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from the Administrative Agent’s or any Lead Arranger’s gross negligence or willful misconduct, as determined by a final, non-appealable judgment of a court of competent jurisdiction. If any
indemnity furnished to the Administrative Agent or the Lead Arrangers for any purpose shall, in the opinion of the Administrative Agent, be insufficient or become impaired, the Administrative Agent may call for additional indemnity and cease, or not
commence, to do the acts indemnified against until such additional indemnity is furnished; provided, in no event shall this sentence require any Lender to indemnify the Administrative Agent against any liability, obligation, loss, damage,
penalty, action, judgment, suit, cost, expense or disbursement in excess of such Lender’s pro rata share thereof as determined based on the principal amount of such Lender’s Commitments or outstanding Loans hereunder as a percentage of the
aggregate principal amount of the total Commitments or outstanding Loans of the Lenders; and provided further, this sentence shall not be deemed to require any Lender to indemnify the Administrative Agent against any liability,
obligation, loss, damage, penalty, action, judgment, suit, cost, expense or disbursement described in the proviso in the immediately preceding sentence. 
 Section 7.07 Successor Administrative Agent. Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent shall have
the right to resign at any time by giving prior written notice thereof to Lenders and Borrower. Upon any such resignation, the Administrative Agent shall appoint a financial institution to act as the Administrative Agent hereunder, subject to the
consent of the Borrower and the Majority Lenders, not to be unreasonably withheld, conditioned 

  
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or delayed, and the Administrative Agent’s resignation shall become effective upon the acceptance of such successor Administrative Agent by the Borrower and the Majority Lenders.
Notwithstanding the foregoing, if either the Majority Lenders or the Borrower have not accepted the appointment of a successor Administrative Agent within ninety (90) days after the retiring Administrative Agent gives notice of its appointment
of a financial institution to act as the Administrative Agent hereunder, then the Majority Lenders shall be deemed to have succeeded to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent. Upon
the acceptance of any appointment as Administrative Agent hereunder by a successor Administrative Agent, that successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent and the retiring Administrative Agent shall promptly transfer to such successor Administrative Agent all sums received and held for the account of the Lenders (not otherwise distributed to the Lenders) and all records
and other documents necessary or appropriate in connection with the performance of the duties of the successor Administrative Agent under the Loan Documents, whereupon such retiring Administrative Agent shall be discharged from its duties and
obligations hereunder other than obligations under Section 8.12. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this ARTICLE 7 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent hereunder. 
 Section 7.08 Lead Arrangers,
Etc. The Lead Arrangers, the Syndication Agent and the Co-Documentation Agents named on the cover page of this Agreement, in their capacities as such, shall have no obligation, liability or responsibility hereunder. 

ARTICLE 8 

MISCELLANEOUS 
 Section 8.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same
shall be in writing and signed by the Borrower and the Majority Lenders, and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that
no such amendment, waiver or consent shall, unless in writing and signed by each Lender affected thereby, do any of the following: (a) increase the Commitment of any Lender or subject it to any additional obligations, (b) reduce the
principal of, or interest on, any Loan, any Reimbursement Obligation or any fee or other amounts payable hereunder or (c) postpone any date fixed for any payment of principal of, or interest on, any Loan or Reimbursement Obligation or any fee
or other amount payable hereunder, or extend any Letter of Credit (other than an extension thereof pursuant to an “evergreen provision” or other similar automatic renewal provisions or as contemplated by Section 2.03); and
provided further that no amendment, waiver or consent shall, unless in writing and signed by all the Lenders, do any of the following: (i) waive any of the conditions specified in Section 3.01, (ii) change the
percentage of the Commitments or of the aggregate unpaid principal amount of the Loans or Reimbursement Obligations, or the number or percentage of Lenders that shall be required for the Lenders or any of them to take or approve, or direct the
Administrative Agent to take, any action hereunder or under any other Loan Document 

  
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(including as set forth in the definition of “Majority Lenders”), (iii) amend this Section 8.01, or (iv) change or waive any provision of
Section 2.13(a), any other provision of this Agreement or any other Loan Document requiring pro rata treatment of any Lenders; and provided further that no amendment, waiver or consent shall, unless in writing and signed by
the Administrative Agent, the Fronting Bank or the L/C Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Administrative Agent, the Fronting Bank, or the L/C Agent, as applicable, under this
Agreement or any other Loan Document. This Agreement and the other agreements and instruments referred to herein constitute the entire agreement of the parties with respect to the subject matter hereof and thereof. 

Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent
hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the
Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms treats any
Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender and (ii) if the Administrative Agent and the Borrower shall have jointly identified (each in its sole discretion) an obvious error
or omission of a technical or immaterial nature, in each case, in any provision of the Loan Documents, then the Administrative Agent and the Borrower shall be permitted to amend such provision and such amendment shall become effective without any
further action or consent of any other party to any Loan Document if the same is not objected to in writing by the Majority Lenders within five Business Days following the posting of such amendment to the Lenders. 

Section 8.02 Notices, Etc. 
 (a) Any notice or other communication herein required or permitted to be given to the Borrower, the Administrative Agent or any Lead Arranger, shall be sent to such Person’s address as set forth
below, and in the case of any Lender, the address as indicated in such Lender’s Administrative Questionnaire or otherwise indicated by such Lender to the Administrative Agent in writing. Except as otherwise set forth in
Section 8.02(b), each notice hereunder shall be in writing and may be personally served or sent by telefacsimile (except for any notices sent to the Administrative Agent) or United States mail or courier service and shall be deemed to
have been given when delivered in person or by courier service and signed for against receipt thereof, upon receipt of telefacsimile, or three Business Days after depositing it in the United States mail with postage prepaid and properly addressed;
provided, no notice to the Administrative Agent or a Lead Arranger shall be effective until received by such Person; provided further, any such notice or other communication shall at the request of Administrative Agent be
provided to any sub-agent appointed pursuant to Section 7.03(c) hereto as designated by the Administrative Agent from time to time. 
 (i) if to the Borrower, to The Hanover Insurance Group, Inc., Attention: David Greenfield (Telecopy No. 508-926-4587), email: dgreenfield@hanover.com, with a copy to The Hanover Insurance Group,
Inc., Attention J. Kendall Huber (Telecopy No. 508-926-1926), email jhuber@hanover.com; 

  
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 (ii) if to the Administrative Agent, to (i) Wells Fargo Bank, National
Association, 1525 W. W.T. Harris Blvd., Building 1B1, Charlotte, North Carolina 28262, Mailcode NC MAC1109-019, Attention: Syndication Agency Services, Telecopy No. (704) 590-2790, email: Agencyservices.requests@wachovia.com, and
(ii) Wells Fargo Bank, National Association, 301 S. College Street, Charlotte, North Carolina 28288, Mailcode MAC D1053-150, Attention: Karen Hanke, Telecopy: (704) 715-1486, email: karen.hanke@wachovia.com; and 

(iii) if to any other Lender, to it at its address (or telecopy number or email) set forth in its Administrative
Questionnaire. 
 (b) Electronic Communications. 

(i) Notices and other communications to the Administrative Agent, the Issuing Banks, the Lead Arrangers and the Lenders
hereunder may be delivered or furnished by electronic communication (including e mail and Internet or intranet websites, including the Platform) pursuant to procedures approved by Administrative Agent, provided that the foregoing shall not apply to
notices to the Administrative Agent or to any Lender pursuant to ARTICLE 2 if such Person has notified Administrative Agent that it is incapable of receiving notices under such Section by electronic communication. The Administrative Agent or
the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices
or communications. Unless the Administrative Agent otherwise prescribes, notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice
or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed
receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor. 

(ii) The Borrower understands that the distribution of material through an electronic medium is not necessarily secure and
that there are confidentiality and other risks associated with such distribution and agrees and assumes the risks associated with such electronic distribution. 
 (iii) The Platform and any Approved Electronic Communications are provided “as is” and “as available”. Neither the Administrative Agent nor any of its officers, directors, employees,
agents, advisors or representatives (the “Agent Affiliates”) warrant the accuracy, adequacy, or completeness of the Approved Electronic Communications or the Platform and each expressly disclaims liability for errors or omissions in
the Platform and the Approved Electronic Communications. No warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular 

  
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purpose, noninfringement of third party rights or freedom from viruses or other code defects is made by the Agent Affiliates in connection with the Platform or the Approved Electronic
Communications. 
 (iv) Each of the Borrower, each Lender, and the Administrative Agent agrees that the
Administrative Agent may, but shall not be obligated to, store any Approved Electronic Communications on the Platform in accordance with Administrative Agent’s customary document retention procedures and policies. 

(v) Any notice of Default or Event of Default may be provided by telephone if confirmed promptly thereafter by delivery of
written notice thereof. 
 (c) Private Side Information Contacts. Each Public Lender agrees to cause at least one
individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate,
in accordance with such Public Lender’s compliance procedures and applicable law, including United States federal and state securities laws, to make reference to information that is not made available through the “Public Side
Information” portion of the Platform and that may contain Non-Public Information with respect to the Borrower, its Subsidiaries or their securities for purposes of United States federal or state securities laws. In the event that any Public
Lender has determined for itself to not access any information disclosed through the Platform or otherwise, such Public Lender acknowledges that (i) other Lenders may have availed themselves of such information and (ii) neither Borrower
nor Administrative Agent has any responsibility for such Public Lender’s decision to limit the scope of the information it has obtained in connection with this Agreement and the other Loan Documents. 

Any party hereto may change its address (street or email) or telecopy number for notices and other communications hereunder by notice to the other
parties hereto (or, in the case of any Lender, to the Borrower and the Administrative Agent). 
 Section 8.03 No Waiver;
Remedies. No failure on the part of any Lender or the Administrative Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any
other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
 Section 8.04 Costs, Expenses and Indemnification. 
 (a) The Borrower
agrees to pay and reimburse on demand all reasonable out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution, delivery, and administration of this Agreement and the other documents to be delivered
hereunder, including, without limitation, the reasonable fees and disbursements of one counsel for the Administrative Agent with respect thereto and with respect to advising the Administrative Agent as to its rights and responsibilities under this
Agreement. The Borrower further agrees to pay on demand all reasonable out-of-pocket costs and expenses, if any, incurred by the Administrative Agent or any Lender in connection with any waiver, modification or

  
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enforcement of this Agreement and the other documents to be delivered hereunder, including, without limitation, the fees, disbursements and other charges of counsel for the Administrative Agent,
but limited to one counsel for the Lenders and the Administrative Agent taken as a whole and, in the case of any actual or potential conflict of interest, one additional counsel to each group of affected parties similarly situated taken as a whole
(and, if necessary, one local counsel in any relevant material jurisdiction). 
 (b) The Borrower agrees to indemnify the
Administrative Agent, each Lead Arranger, each Lender and each of their respective Affiliates and their respective officers, directors, employees, agents, advisors, partners, members and representatives (each, an “Indemnified
Party”) from and against any and all actions, suits, losses, claims, damages, liabilities, penalties, judgments, costs, expenses and disbursements (including fees and disbursements of counsel, but limited to one counsel for the Indemnified
Parties taken as a whole and, in the case of any actual or potential conflict of interest, one additional counsel to each group of affected Indemnified Parties similarly situated taken as a whole (and, if necessary, one local counsel in any relevant
material jurisdiction)), of any kind or nature whatsoever, joint or several, that may be imposed on, incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or relating to this Agreement and the other Loan
Documents or any investigation, litigation or proceeding or the preparation of any defense with respect thereto arising out of or in connection with or relating to this Agreement or the other Loan Documents, the transactions contemplated hereby or
thereby or any use made or proposed to be made with the proceeds of the Loans or the Letters of Credit, whether or not such investigation, litigation or proceeding is brought by the Borrower, any of its shareholders or creditors, an Indemnified
Party or any other Person, or an Indemnified Party is otherwise a party thereto, and whether or not any of the conditions precedent set forth in ARTICLE 3 are satisfied or the other transactions contemplated by this Agreement or the other
Loan Documents are consummated, except to the extent any of the foregoing results from (i) such Indemnified Party’s gross negligence or willful misconduct or its material breach in bad faith of its obligations under this Agreement or any
other Loan Document, in each case as determined in a final and nonappealable judgment by a court of competent jurisdiction, or (ii) any dispute solely among Indemnified Parties other than (x) any claims against any Lead Arranger or the
Administrative Agent in their capacities as such or in fulfilling their customary duties with respect thereto or any similar role under this Agreement or under any other Loan Document and (y) any claims arising out of any act or omission on the
part of the Borrower or its Affiliates (as determined by a court of competent jurisdiction by a final and nonappealable judgment). Notwithstanding anything herein to the contrary, no Indemnified Party shall be entitled to any claim for
indemnification under this Section 8.04(b) in respect of any taxes, which are subject to indemnification pursuant solely to Section 2.14 of this Agreement. Each party hereto agrees not to assert any claim against any other
party hereto, on any theory of liability, for consequential, indirect, special or punitive damages arising out of or otherwise relating to this Agreement, any other Loan Document, or any of the transactions contemplated hereby or thereby or the
actual or proposed use of the proceeds of the Loans or the Letters of Credit (provided that this provision shall not limit the Borrower’s indemnification obligations set forth above, including, without limitation, as to any claims by an
Indemnified Party in violation of this sentence). No Indemnified Party shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or
other information transmission systems (including any Platform) in connection with this Agreement or the other Loan Documents or the transactions 

  
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contemplated hereby or thereby except those due to such Indemnified Party’s gross negligence, breach in bad faith of its obligations, or willful misconduct as determined in a final and
nonappealable judgment by a court of competent jurisdiction. 
 (c) If any payment of principal of, or Conversion or
Continuation of, any Eurodollar Loan is made other than on the last day of an Interest Period for such Loan as a result of any optional or mandatory prepayment, acceleration of the maturity of the Loans pursuant to Section 6.01 or for
any other reason whatsoever, the Borrower shall pay to the Administrative Agent for the account of such Lender any amounts required to compensate such Lender for any additional losses, costs or expenses which it reasonably incurs as a result of such
payment, Continuation or Conversion and the liquidation or reemployment of deposits or other funds acquired by such Lender to fund or maintain such Loan. A certificate as to the amount of such losses, costs and expenses, submitted to the Borrower
and the Administrative Agent by such Lender, shall be conclusive and binding for all purposes, absent manifest error. 

Section 8.05 Binding Effect. This Agreement shall become effective upon satisfaction of the conditions set forth in
Section 3.01 and delivery of the notice by the Administrative Agent referred to therein and thereafter shall be binding upon and inure to the benefit of the Borrower, the Administrative Agent and each Lender and their respective
successors and permitted assigns, except that the Borrower shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lenders. 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. 

Section 8.06 Assignments and Participations. 
 (a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted
hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of clause (b) of this Section, (ii) by way of participation in accordance with the provisions of clause (d) of this Section or
(iii) by way of pledge or assignment of a security interest in accordance with clause (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in clause (d) of this Section and, to the extent expressly
contemplated hereby, the Affiliates of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
 (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of
its Commitments and Credit Extensions (including for purposes of this Section 8.06(b), participations in Participated Letters of Credit) at the time owing to it); provided, that 

  
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 (i) except in the case of an assignment of the entire remaining amount of
the assigning Lender’s Commitment and the Credit Extensions at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the aggregate amount of the Commitment
(which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Credit Extensions of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than
$10,000,000 or an integral multiple of $1,000,000 in excess thereof, unless each of the Administrative Agent and, unless an Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably
withheld or delayed); 
 (ii) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement with respect to the Credit Extensions or the Commitment assigned; 
 (iii) any assignment of a Commitment or Credit Extension must be approved by the Administrative Agent (such approval not to be unreasonably withheld) unless the Person that is the proposed assignee is
itself a Lender, an Affiliate of such Lender or an Approved Fund (whether or not the proposed assignee would otherwise qualify as an Eligible Assignee); and 
 (iv) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500 and the Eligible Assignee,
if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 
 Subject to acceptance and recording
thereof by the Administrative Agent pursuant to clause (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be
released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall
continue to be entitled to the benefits of Sections 2.14 and 8.04 and subject to its obligations under Section 8.12 with respect to facts and circumstances occurring prior to such effective date; provided,
however, that (i) each Syndicated Letter of Credit outstanding on the effective date specified in the Assignment and Assumption shall be amended as soon as possible to replace the assigning Lender with the Eligible Assignee, it being
understood for the avoidance of doubt that such amendment shall not be deemed a Credit Extension hereunder, and (ii) until each such Syndicated Letter of Credit has been amended in accordance with this subsection, the assigning Lender shall be
deemed to have sold and transferred to the Eligible Assignee, and such Eligible Assignee shall be deemed irrevocably and unconditionally to have purchased and received from such assigning Lender, without recourse or warranty, an undivided interest
and 

  
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participation, to the extent of such assigning Lender’s Ratable Share, in such Syndicated Letter of Credit, each drawing made thereunder, the obligations of the Borrower under this Agreement
with respect thereto. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with clause (d) of this Section. 
 (c) Register. The Administrative Agent,
acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at its address specified in Section 8.02 a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amounts of the Loans and Reimbursement Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register
shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 

(d) Participations. Any Lender may at any time, without the consent of, or notice to any Person, sell participations to any Person
(other than a natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all
or a portion of its Commitment and/or the Credit Extensions (including such Lender’s participations in Participated Letters of Credit) owing to it); provided, that (i) such Lender’s obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the Lenders shall continue to deal solely and directly
with such Lender in connection with such Lender’s rights and obligations under this Agreement. Each Lender that sells a participation pursuant to this Section 8.06(d) shall, acting solely for U.S. federal income tax purposes as a
non-fiduciary agent of the Borrower, maintain a register on which it records the name and address of each participant and the principal amounts of each participant’s participation interest (each, a “Participant Register”);
provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any participant or any information relating to a participant’s interest in any Commitments,
Credit Extensions or its other obligations under this Agreement) except to the extent that any relevant party, acting reasonably and in good faith, determines that such disclosure is necessary to establish that such Commitment, Credit Extension or
other obligation is in registered form under section 5f.103-1(c) of the United States Treasury Regulations. Unless otherwise required by the IRS or any other taxing authority, or required under section 5f.103-1(c) of the United States Treasury
Regulations, any disclosure required by the foregoing sentence shall be made by the relevant Lender directly and solely to the IRS or such other relevant taxing authority. The entries in the Participant Register shall be conclusive absent manifest
error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of a participation for all purposes under this Agreement, notwithstanding any notice to the contrary. 

  
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 Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided, that such agreement or instrument may provide that such Lender
will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso of Section 8.01 that affects such Participant or any thereof described in the second proviso of
Section 8.01. Subject to clause (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Section 2.14 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to clause (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 8.04(c) as though it were a Lender. 

(e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under Sections
2.11 and 2.14 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. 
 (f) Certain Pledges. Any Lender, without the consent of the Borrower or the Administrative Agent may
at any time grant 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 shall release such Lender from any of its obligations hereunder. 
 Section 8.07 Governing Law;
Submission to Jurisdiction. 
 (a) Governing Law. This Agreement shall be governed by, and construed in accordance
with, the law of the State of New York. 
 (b) Consent to Jurisdiction. Subject to clause (e) of the following
sentence, all judicial proceedings brought against any party arising out of or relating hereto, or any of the obligations under this Agreement, shall be brought in any federal court of the United States of America sitting in the borough of Manhattan
or, if that court does not have subject matter jurisdiction, in any state court of competent jurisdiction in the city or county of New York. By executing and delivering this agreement, each party hereto irrevocably (a) accepts generally and
unconditionally the exclusive jurisdiction and venue of such courts; (b) waives any defense of forum non conveniens; (c) agrees that service of all process in any such proceeding in any such court may be made by registered or certified
mail, return receipt requested, to its address provided in accordance with Section 8.02; (d) agrees that service as provided in clause (c) above is sufficient to confer personal jurisdiction over the Borrower and its
Subsidiaries in any such proceeding in any such court, and otherwise constitutes effective and binding service in every respect; and (e) agrees that each party hereto retains the right to serve process in any other manner permitted by law or to
bring proceedings against each other party hereto in the courts of any other jurisdiction in connection with the enforcement of any judgment. 
 Section 8.08 Severability. In case any provision in this Agreement shall be held to be invalid, illegal or unenforceable, such provision shall be severable from the rest of this Agreement, and
the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

  
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 Section 8.09 Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Any counterpart hereof may
be executed and delivered via telecopier or other electronic means, and each such counterpart so executed and delivered shall have the same force and effect as an originally executed and delivered counterpart hereof. 

Section 8.10 Survival. The obligations of the Borrower under Sections 2.02(b), 2.11, 2.14 and
8.04, and the obligations of the Lenders under Section 7.06, shall survive the repayment of the Loans, the termination of the Commitments and the repayment of the Letters of Credit. In addition, each representation and warranty
made, or deemed to be made by any Notice of Borrowing, herein or pursuant hereto shall survive the making of such representation and warranty, and no Lender shall be deemed to have waived, by reason of making any Loan, any Default or Event of
Default that may arise by reason of such representation or warranty proving to have been false or misleading, notwithstanding that such Lender or the Administrative Agent may have had notice or knowledge or reason to believe that such representation
or warranty was false or misleading at the time such extension of credit was made. 
 Section 8.11 Waiver of Jury
Trial. EACH OF THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 8.12 Confidentiality. Each of the Administrative Agent
and the Lenders agrees that it will maintain in confidence and will not disclose, publish or disseminate any confidential information designated as such by the Borrower which it has or shall acquire in connection herewith relating to the business,
operations, property, condition (financial or otherwise) or prospects of the Borrower and its Subsidiaries, except that such information may be disclosed if and to the extent that: (a) such information is in the public domain at the time of
disclosure except as a result of a breach of this paragraph by the disclosing party; (b) such information is required to be disclosed by subpoena or similar process of applicable law or regulations, provided that such Person agrees that
it will, to the extent permissible and practicable, give the Borrower prompt notice of such disclosure; (c) such information is requested to be disclosed to any regulatory or administrative body, commission or self-regulatory body to whose
jurisdiction it may be subject or that reasonably claims authority to regulate or oversee any aspect of its business or that of any of its affiliates; (d) such information is disclosed to counsel, auditors or other professional advisors to such
Person, and to any affiliates of such Person, and to its and its affiliates’ respective partners, members, directors, officers, employees, agents and other representatives, provided that such counsel, auditors, advisors, affiliates,
partners, members, directors, officers, employees, agents, advisors and other representatives are advised to keep such information confidential as set forth herein; (e) such information is disclosed in connection with any litigation or dispute
between it and the Borrower concerning this Agreement; (f) such 

  
 84 

 
information is disclosed to any other party hereto; (g) such information is disclosed, subject to an agreement containing provisions substantially the same as or no less restrictive than
those in this Section 8.12, to (x) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (y) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower and its obligations hereunder; and (h) such information is disclosed with the consent of the Borrower and (i) such information is disclosed to any rating agency when
required by such rating agency, provided that, prior to any disclosure, such rating agency shall undertake in writing to preserve the confidentiality of any confidential information relating to the Borrower and its Subsidiaries received by it from
the Administrative Agent or any Lender. In addition, the Administrative Agent and each Lender may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar services providers to the lending
industry, and service providers to the Administrative Agent and the Lenders in connection with the administration and management of this Agreement. 
 Section 8.13 No Fiduciary Relationship. The Administrative Agent, each Lead Arranger, each Lender and their Affiliates (collectively, solely for purposes of this paragraph, the
“Lenders”), may have economic interests that conflict with those of the Borrower and its Subsidiaries, their stockholders and/or their affiliates. Borrower agrees that nothing herein or otherwise will be deemed to create an
advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender, on the one hand, and the Borrower, its Subsidiaries, its stockholders or its affiliates, on the other. Borrower acknowledges and agrees that
(i) the transactions contemplated by the Loan Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lenders, on the one hand, and the Borrower, on the other,
and (ii) in connection therewith and with the process leading thereto, (x) no Lender has assumed an advisory or fiduciary responsibility in favor of the Borrower or any of its Subsidiaries, its stockholders or its affiliates with respect
to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender has advised, is currently advising or will advise the Borrower or any of its
Subsidiaries, its stockholders or its Affiliates on other matters) or any other obligation to the Borrower or any of its Subsidiaries except the obligations expressly set forth in the Loan Documents and (y) each Lender is acting solely as
principal and not as the agent or fiduciary of the Borrower or any of its Subsidiaries, its management, stockholders, creditors or any other Person. Borrower acknowledges and agrees that it has consulted its own legal and financial advisors to the
extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto. Borrower agrees that it will not claim that any Lender has rendered advisory services
of any nature or respect, or owes a fiduciary or similar duty to it or any of its Subsidiaries, in connection with such transaction or the process leading thereto. 
 Section 8.14 USA PATRIOT Act. Each Lender hereby notifies the Borrower that pursuant to the requirements of 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 such Lender to identify the Borrower in accordance with the PATRIOT Act. 

  
 85 

 Section 8.15 Maximum Rate. In no contingency or event whatsoever shall the
aggregate of all amounts deemed interest under this Agreement charged or collected pursuant to the terms of this Agreement exceed the highest rate permissible under any applicable law which a court of competent jurisdiction shall, in a final
determination, deem applicable hereto. In the event that such a court determines that the Lenders or the Fronting Bank have charged or received interest hereunder in excess of the highest applicable rate, the rate in effect hereunder shall
automatically be reduced to the maximum rate permitted by applicable law and the Lenders and Fronting Bank shall at the Administrative Agent’s option (i) promptly refund to the Borrower any interest received by the Lenders in excess of the
maximum lawful rate or (ii) apply such excess to the principal balance of the Obligations on a pro rata basis. It is the intent hereof that the Borrower not pay or contract to pay, and that neither the Administrative Agent nor any Lender or the
Fronting Bank receive or contract to receive, directly or indirectly in any manner whatsoever, interest in excess of that which may be paid by the Borrower under applicable law. 

  
 86 

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

					
	Borrower
	
	THE HANOVER INSURANCE GROUP, INC.
		
	By	 	  

		 	Name:	 	  

		 	Title:	 	  

	
	Administrative Agent
	
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as Administrative Agent, Fronting
 Bank and L/C Agent

		
	By	 	  

		 	Name:	 	  

		 	Title:	 	  

		
	By	 	  

		 	Name:	 	  

		 	Title:	 	  

					
	
	Lenders
	
	[Lender]
		
	By	 	  

		 	Name:	 	  

		 	Title:Second Amended and Restated Rights Agreement

 Exhibit 4.1 

 
  
 Harbor BioSciences, Inc. 
 and 

American Stock Transfer and Trust Company, LLC 
 as Rights Agent 
 Second Amended and Restated Rights Agreement 

Dated as of July 29, 2011 
 (original Rights Agreement dated as of November 15, 1999) 
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 Section 1.
	  	Certain Definitions	  	 	1	  
	 Section 2.
	  	Appointment of Rights Agent	  	 	5	  
	 Section 3.
	  	Issue of Right Certificates	  	 	6	  
	 Section 4.
	  	Form of Right Certificates	  	 	7	  
	 Section 5.
	  	Countersignature and Registration	  	 	7	  
	 Section 6.
	  	Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates	  	 	8	  
	 Section 7.
	  	Exercise of Rights; Purchase Price; Expiration Date of Rights	  	 	9	  
	 Section 8.
	  	Cancellation and Destruction of Right Certificates	  	 	10	  
	 Section 9.
	  	Availability of Preferred Shares	  	 	10	  
	 Section 10.
	  	Preferred Shares Record Date	  	 	11	  
	 Section 11.
	  	Adjustment of Purchase Price, Number of Shares or Number of Rights	  	 	11	  
	 Section 12.
	  	Certificate of Adjusted Purchase Price or Number of Shares	  	 	17	  
	 Section 13.
	  	Consolidation, Merger or Sale or Transfer of Assets or Earning Power	  	 	18	  
	 Section 14.
	  	Fractional Rights and Fractional Shares	  	 	20	  
	 Section 15.
	  	Rights of Action	  	 	21	  
	 Section 16.
	  	Agreement of Right Holders	  	 	22	  
	 Section 17.
	  	Right Certificate Holder Not Deemed a Stockholder	  	 	22	  
	 Section 18.
	  	Concerning the Rights Agent	  	 	22	  
	 Section 19.
	  	Merger or Consolidation or Change of Name of Rights Agent	  	 	23	  
	 Section 20.
	  	Duties of Rights Agent	  	 	23	  
	 Section 21.
	  	Change of Rights Agent	  	 	25	  
	 Section 22.
	  	Issuance of New Right Certificates	  	 	26	  
	 Section 23.
	  	Redemption	  	 	26	  
	 Section 24.
	  	Exchange	  	 	27	  
	 Section 25.
	  	Notice of Certain Events	  	 	29	  
	 Section 26.
	  	Notices	  	 	29	  
	 Section 27.
	  	Supplements and Amendments	  	 	30	  
	 Section 28.
	  	Determination and Actions by the Company’s Board of Directors	  	 	30	  
	 Section 29.
	  	Share Calculations	  	 	30	  
	 Section 30.
	  	Successors	  	 	31	  
	 Section 31.
	  	Benefits of this Agreement	  	 	31	  
	 Section 32.
	  	Severability	  	 	31	  
	 Section 33.
	  	Governing Law	  	 	31	  
	 Section 34.
	  	Counterparts	  	 	31	  
	 Section 35.
	  	Descriptive Headings	  	 	31	  
			
	 Exhibit A
	  	Certificate of Designation of Series B Junior Participating Preferred Stock	  	 	A-1	  
	 Exhibit B
	  	Amended Form of Right Certificate	  	 	B-1	  
	 Exhibit C
	  	Summary Of Rights To Purchase Preferred Shares	  	 	C-1	  

  
 i 

 Second Amended and Restated Rights Agreement 

This Second Amended and Restated Rights Agreement (“Agreement”), is entered into on July 29, 2011 and is an
amendment and restatement of the Rights Agreement dated as of November 15, 1999, as previously amended on October 13, 2009, between HARBOR BIOSCIENCES, INC., a Delaware corporation (the “Company”), and AMERICAN STOCK
TRANSFER AND TRUST COMPANY, LLC (“Rights Agent”). 
 The Board of Directors of the Company has authorized and
declared a dividend of one preferred share purchase right (a “Right”) for each Common Share (as such term is hereinafter defined) outstanding at the close of business on November 29, 1999 (the “Record Date”),
each Right representing the right to purchase one one-hundredth of a Preferred Share (as such term is hereinafter defined), upon the terms and subject to the conditions herein set forth, and has further authorized and directed the issuance of one
Right with respect to each Common Share that shall become outstanding between the Record Date and the earliest to occur of the Distribution Date, the Redemption Date and the Final Expiration Date (as such terms are hereinafter defined); provided,
however, that Rights may be issued with respect to Common Shares that shall become outstanding after the Distribution Date and before the earlier of the Redemption Date and the Final Expiration Date in accordance with the provisions of
Section 22 hereof. 
 Pursuant to Section 27 of the Rights Agreement, the Company and the Rights Agent previously
amended the Rights Agreement and the Rights, as of October 13, 2009. 
 Pursuant to Section 27 of the Rights
Agreement, the Company and the Rights Agent are hereby acting to amend and restate the Rights Agreement, and to amend the Rights issued thereunder, in each case as of July 29, 2011. 

Accordingly, in consideration of the premises and the mutual agreements herein set forth, the and the Rights Agent hereby amend and
restate the Rights Agreement to read in full as follows: 
 Section 1. Certain Definitions. For purposes of this
Agreement, the following terms have the meanings indicated: 
 (a) “Acquiring Person” shall mean
any Person (as such term is hereinafter defined) who or which shall be the Beneficial Owner (as such term is hereinafter defined) of 4.9% or more of the Common Shares then outstanding. Notwithstanding the foregoing, (A) the term Acquiring
Person shall not include an Exempt Person (as such term is hereinafter defined), and (B) no Person shall become an “Acquiring Person” either (x) as the result of an acquisition of Common Shares by the Company which, by reducing
the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 4.9% or more of the Common Shares then outstanding; provided, however, that if a Person shall become the Beneficial Owner of 4.9% or
more of the Common Shares then outstanding by reason of share purchases by the Company and shall, following written notice from, or public disclosure by the Company of such share purchases by the Company, become the Beneficial Owner of any
additional Common Shares without the prior consent of the Company and shall then Beneficially Own more than 4.9% of the Common Shares then outstanding, then such Person shall be deemed to be an “Acquiring Person,” (y) as a result of
the acquisition of Common Shares directly from the Company; provided however, that if a Person shall become the Beneficial Owner of 4.9% or more of the Common Shares then outstanding by reason of share purchases directly from the Company and shall,
after that date, become the 

  
 1 

 
Beneficial Owner of any additional Common Shares without the prior written consent of the Company and shall then Beneficially Own more than 4.9% of the Common Shares then outstanding, then such
Person shall be deemed to be an “Acquiring Person,” or (z) if the Board of Directors determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing provisions of
this paragraph (a), has become such inadvertently (including without limitation because (A) such Person was unaware that it beneficially owned a percentage of Common Shares that would otherwise cause such Person to be an “Acquiring
Person” or (B) such Person was aware that it was the Beneficial Owner of 4.9% or more of the Common Shares then outstanding but had no actual knowledge of the consequences of being a Beneficial Owner of 4.9% or more of the Common Shares
then outstanding under this Agreement), and without any intention of changing or influencing control of the Company, and such Person divests, as promptly as practicable (as determined in good faith by the Board of Directors), but in any event within
five Business Days, following receipt of written notice from the Company of such event, Beneficial Ownership of a sufficient number of Common Shares so that such Person would no longer be an Acquiring Person, as defined pursuant to the foregoing
provisions of this paragraph (a), then such Person shall be deemed not to have become an “Acquiring Person” for purposes of this Agreement; provided, however, that if such Person shall again become the Beneficial Owner of 4.9% or more of
the Common Shares then outstanding, such Person shall be deemed an “Acquiring Person,” subject to the exceptions set forth in this Section 1(a). Each and every reference to or mention of a generic or specified Acquiring Person herein
shall be deemed to be a reference to or mention of such Acquiring Person and all of such Acquiring Person’s Affiliates or Associates, collectively, as if they all together were a single person, and also shall apply with equal force to each such
Acquiring Person, Affiliate and Associate without regard to which would be the Person and which would be the Affiliate/Associate. 
 (b) “Act” shall mean the Securities Act of 1933, as amended. 
 (c) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in
effect on the date of this Agreement. 
 (d) A Person shall be deemed the “Beneficial Owner” of
and shall be deemed to “beneficially own” any securities: 
 (i) which such Person is deemed to
beneficially own, within the meaning of Rule 13d-3 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement; 
 (ii) which such Person has (A) the right to acquire (whether such right is exercisable immediately, only after the passage of time, compliance with regulatory requirements, fulfillment of a condition
or otherwise) pursuant to any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities) or upon the exercise of
conversion rights, exchange rights, rights (other than the Rights contemplated hereunder), warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, (1) securities
tendered pursuant to a tender or exchange offer made by or on behalf of such Person until such tendered securities are accepted for purchase or exchange, (2) securities which such person has the right to acquire upon the exercise of Rights at
any time before the time that any Person becomes an Acquiring Person, (3) securities issuable upon the exercise of Rights 

  
 2 

 
from and after the time that any Person becomes an Acquiring Person if such Rights were acquired by such Person before the Distribution Date or pursuant to Section 3(a), Section 22 or
Section 11 with respect to an adjustment of original Rights, or (4) securities which such Person may acquire, does or do acquire or may be deemed to have the right to acquire, pursuant to any merger or other acquisition agreement between
the Company and such Person if such agreement has been approved by the Board of Directors of the Company before such Person becoming an Acquiring Person; or (B) the right to vote pursuant to any agreement, arrangement or understanding;
provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security if the agreement, arrangement or understanding to vote such security (1) arises solely from a revocable proxy or consent given to
such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule 13D under the
Exchange Act (or any comparable or successor report); 
 (iii) which are beneficially owned, directly or
indirectly, by any other Person with which such Person has any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of
securities) for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to Section 1(c)(ii)(B) hereof) or disposing of any securities of the Company; provided, however, an agreement, arrangement or
understanding for purposes of this Section 1(c)(iii) shall not be deemed to include actions, including any agreement, arrangement or understanding, or statements by any member of the Company’s Board of Directors on the date of this
Agreement, any subsequent directors of the Company (the “Successor Directors”), or by any Person of whom such a current director or Successor Director is an Affiliate or Associate (all together the “Director
Persons”), provided, however that this exception shall not apply to anyone other than a Director Person, and provided further, that this exception also shall not apply to a particular Director Person or Director Persons if and to the extent
that such Director Person or Director Persons, after the date of this Agreement, acquires Beneficial Ownership of more than an additional 2.0% of the then outstanding Common Shares of the Company unless (A) the shares are acquired directly from
the Company or as part of an employee benefit or compensation plan of the Company or a subsidiary of the Company or (B) the Director Person establishes to the satisfaction of the directors of the Company that it is acting on its own behalf and
not in concert with any other Person and will not, upon completion of any purchases, be the Beneficial Owner of 4.9% or more of the outstanding Common Shares. Notwithstanding anything in this definition of Beneficial Ownership to the contrary, the
phrase, “then outstanding,” when used with reference to a Person’s Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding together with the number of such securities not
then actually issued and outstanding which such Person would be deemed to own beneficially hereunder; or 
 (iv)
which is the amount of securities by which a synthetic equity or other derivative position (either long or short) owned by such Person is calculated or measured (regardless of whether such synthetic equity or other derivative position would involve
any Rule 13d-3 beneficial ownership). 
 (e) “Business Day” shall mean any day other than a
Saturday, a Sunday, or a day on which banking institutions in the State of California or New York are authorized or obligated by law or executive order to close. 

  
 3 

 (f) “Close of Business” on any given date shall mean 5:00
p.m., Pacific Time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 p.m., Pacific Time, on the next succeeding Business Day. 

(g) “Common Shares” shall mean the shares of common stock, par value $.01 per share, of the Company;
provided, however, that, “Common Shares,” when used in this Agreement in connection with a specific reference to any Person other than the Company, shall mean the capital stock (or equity interest) with the greatest general voting power of
such other Person or, if such other Person is a Subsidiary of another Person, of the Person or Persons which ultimately control such first-mentioned Person. 
 (h) “Current Per Share Market Price” shall have the meaning set forth in Section 11(d) hereof. 

(i) “Distribution Date” shall have the meaning set forth in Section 3 hereof. 

(j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(k) “Exchange Ratio” shall have the meaning set forth in Section 24(a) hereof. 

(l) “Exempt Person” shall mean each of (i) the Company, (ii) any Subsidiary of the Company,
(iii) any employee benefit or compensation plan of the Company or any Subsidiary of the Company, (iv) any entity holding Common Shares for or pursuant to the terms of any employee benefit or compensation plan of the Company or any
Subsidiary of the Company, and (v) Amun LLC, a Delaware limited liability company or any of its Affiliates, so long as it (together with its Affiliates) continues to hold shares of the Company’s Series A Preferred Stock. 

(m) “Exercisability Trigger” shall have the meaning set forth in Section 11(a)(ii) hereof.

 (n) “Final Expiration Date” shall have the meaning set forth in Section 7(a) hereof.

 (o) “Flip-In” shall have the meaning set forth in Section 11(a)(ii) hereof. 

(p) “Flip-Over” shall have the meaning set forth in Section 13 hereof. 

(q) “Interested Stockholder” shall mean any Acquiring Person or any other Person in which any such
Acquiring Person has a material interest, or any other Person acting directly or indirectly on behalf of or in concert with any such Acquiring Person. 
 (r) “Person” shall mean any individual, firm, partnership, limited liability company, trust, corporation or other entity, and shall include any successor (by merger or otherwise) of such
entity. Each and every reference to or mention of a generic or specified Person herein shall be deemed to be a reference to or mention of such Person and all of such Person’s Affiliates or Associates, collectively, as if they all together were
a single person, and shall apply with equal force to each such Person, Affiliate and Associate without regard to which would be the Person and which would be the Affiliate/Associate. 

  
 4 

 (s) “Preferred Shares” shall mean shares of Series B Junior
Participating Preferred Stock, of the Company having the designations and the powers, preferences and rights, and the qualifications, limitations and restrictions set forth in the Amended and Restated Certificate of Designation of Series B Junior
Participating Preferred Stock, a copy of which is attached to this Agreement as Exhibit A. 
 (t)
“Principal Party” shall have the meaning set forth in Section 13(b) hereof. 
 (u)
“Purchase Price” shall have the meaning set forth in Section 7(b) hereof. 
 (v)
“Redemption Date” shall have the meaning set forth in Section 7(a) hereof. 
 (w)
“Redemption Price” shall have the meaning set forth in Section 23(b) hereof. 
 (x)
“Right Certificate” shall have the meaning set forth in Section 3(a) hereof. 
 (y)
“Security” shall have the meaning set forth in Section 11(d)(i) hereof. 
 (z)
“Shares Acquisition Date” shall mean the first date of public announcement (which for purposes of this definition, shall include, without limitation, the filing of a report pursuant to Section 13(d) of the Exchange Act or
pursuant to a comparable successor statute) by the Company or an Acquiring Person that an Acquiring Person has become such or that discloses information which reveals the existence of an Acquiring Person or such earlier date as a majority of the
Board of Directors shall become aware of the existence of an Acquiring Person; provided, however that, if such Person is determined by the Board of Directors of the Company not to have become an Acquiring Person pursuant to subsections 1(a)(B)(x),
1(a)(B)(y) or 1(a)(B)(z) hereof, then no Shares Acquisition Date shall be deemed to have occurred. 
 (aa)
“Spread” shall have the meaning set forth in Section 11(a)(iv) hereof. 
 (bb)
“Subsidiary” of any Person shall mean any corporation or other entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by such Person. 

(cc) “Trading Day” shall have the meaning set forth in Section 11(d)(i) hereof. 

(dd) “Transaction” shall mean any merger, consolidation, or sale, mortgage, exclusive license or other
transfer of assets described in Section 13(a) hereof or any acquisition of Common Shares which would result in a Person becoming an Acquiring Person or a Principal Party. 
 Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent
hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents as it may deem necessary or desirable. 

  
 5 

 Section 3. Issue of Right Certificates. 

(a) Until the earlier of (i) the tenth Business Day after the Shares Acquisition Date or (ii) the tenth Business
Day (or such later date as may be determined by action of the Board of Directors before such time as any Person becomes an Acquiring Person) after the date of the commencement (determined in accordance with Rule 14d-2 under the Exchange Act) by any
Person (other than an Exempt Person) of, or of the first public announcement of the intention of any Person (other than an Exempt Person) to commence, a tender or exchange offer (which intention to commence remains in effect for five Business Days
after such announcement), the consummation of which would result in any Person becoming an Acquiring Person (the earlier of such date and the tenth Business Day after the Shares Acquisition Date being herein referred to as the “Distribution
Date”), (x) the Rights will be evidenced by the certificates for Common Shares registered in the names of the holders thereof (which certificates shall also be deemed to be Right Certificates) and not by separate Right Certificates,
and (y) the Rights (and the right to receive Right Certificates therefor) will be transferable only in connection with the transfer of Common Shares. Notwithstanding the foregoing, a Distribution Date shall not be deemed to have occurred unless
directors representing at least two-thirds of the members of the Company’s Board of Directors then holding office affirmatively vote to approve such Distribution Date. As soon as practicable after the Distribution Date, the Company will prepare
and execute, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested, send) by first-class, insured, postage-prepaid mail, to each record holder of Common Shares as of the Close of
Business on the Distribution Date, at the address of such holder shown on the records of the Company, a Right Certificate, in substantially the form of Exhibit B hereto (a “Right Certificate”), evidencing one Right for each
Common Share so held, subject to the adjustment provisions of Section 11 of this Rights Agreement. As of the close of business on the Distribution Date, the Rights will be evidenced solely by such Right Certificates. 

(b) With respect to certificates for Common Shares outstanding as of the Record Date, until the Distribution Date, the
Rights will be evidenced by such certificates registered in the names of the holders thereof. Until the Distribution Date (or the earlier of the Redemption Date and the Final Expiration Date), the surrender for transfer of any certificate for Common
Shares outstanding on the Record Date shall also constitute the transfer of the Rights associated with the Common Shares represented thereby. 
 (c) Certificates for Common Shares which become outstanding (including, without limitation, reacquired Common Shares referred to in the second to last sentence of this paragraph (c)) after the Record Date
but before the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date shall have impressed on, printed on, written on or otherwise affixed to them the following legend: “This certificate also evidences and entitles
the holder hereof to certain rights as set forth in a Rights Agreement between Harbor Biosciences, Inc. (the “Corporation”) and American Stock Transfer and Trust Company, LLC, as Rights Agent (the “Rights Agent”), dated as of
November 15, 1999, as amended from time to time (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of the Corporation. Under
certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by this certificate. The Corporation will mail to the holder of this certificate a copy of the Rights
Agreement without charge after receipt of a written request therefore addressed to the Secretary of the Corporation. As described in the Rights Agreement, Rights issued to any Person who becomes an Acquiring Person or an Affiliate or Associate
thereof (as defined in the Rights Agreement) and certain related persons, whether currently held by or on behalf of such Person or by any subsequent holder, shall become null and void.” With respect to such certificates containing the foregoing
legend, until the Distribution Date, the Rights associated with the Common Shares represented by such certificates shall be evidenced by such certificates alone, and the surrender for transfer of any

  
 6 

 
such certificate shall also constitute the transfer of the Rights associated with the Common Shares represented thereby. In the event that the Company purchases or acquires any Common Shares
after the Record Date but before the Distribution Date, any Rights associated with such Common Shares shall be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights associated with the Common Shares which are
no longer outstanding. Notwithstanding this Section 3(c), the omission of a legend on any certificate for Common Shares shall not affect the enforceability of any part of this Agreement or the rights of any holder of the Rights. 

(d) No later than the time of mailing of proxy materials for the Company’s 2011 annual meeting of stockholders, the
Company will send (directly or through the Rights Agent or its transfer agent) a copy of a Summary of Rights to Purchase Preferred Shares, in substantially the form of Exhibit C hereto, by first-class, postage-prepaid mail, to each record
holder of Common Shares, at the address of such holder shown on the records of the Company. 
 Section 4. Form of Right
Certificates. 
 (a) The Right Certificates (and the form of election to purchase Preferred Shares, the form
of assignment and the form of certification to be printed on the reverse thereof) shall be substantially the same as Exhibit B hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed
thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any stock exchange or quotation system on which the Rights may from time to time be listed, or to conform to usage. Subject to the provisions of Sections 7, 11 and 22 hereof, the Right Certificates shall entitle the holders thereof to
purchase such number of one one-hundredths of a Preferred Share as shall be set forth therein at the Purchase Price, but the number of such one one-hundredths of a Preferred Share and the Purchase Price shall be subject to adjustment as provided
herein. 
 (b) Any Right Certificate issued pursuant to Section 3(a) or Section 22 hereof that
represents Rights which are null and void pursuant to Section 11(a)(ii) hereof and any Right Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other Right
Certificate referred to in this sentence shall contain (to the extent feasible) the following legend: “The Rights represented by this Right Certificate are or were beneficially owned by a Person who was or became an Acquiring Person or an
Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement). Accordingly, this Right Certificate and the Rights represented hereby are null and void.” The provisions of Section 11(a)(ii) hereof shall
be operative whether or not the foregoing legend is contained on any such Right Certificate. 
 Section 5.
Countersignature and Registration. The Right Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its President, its Vice Chairman of the Board, its Chief Financial Officer, or any
of its Vice Presidents, either manually or by facsimile signature, shall have affixed thereto the Company’s seal or a facsimile thereof, and shall be attested by the Secretary or an Assistant Secretary of the Company, either manually or by
facsimile signature. The Right Certificates shall be countersigned either manually or by facsimile signature, by the Rights Agent and shall not be valid for any purpose unless countersigned. In case any officer of the Company who shall have signed
any of the Right Certificates shall cease to be such officer of the Company before countersignature by the Rights 

  
 7 

 
Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and
effect as though the person who signed such Right Certificates had not ceased to be such officer of the Company; and any Right Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such Right
Certificate, shall be a proper officer of the Company to sign such Right Certificate, although at the date of the execution of this Agreement any such person was not such an officer. Following the Distribution Date, the Rights Agent will keep or
cause to be kept, at its office designated for such purpose, books for registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Right Certificates, the
number of Rights evidenced on its face by (and, if different, the number of Rights represented by) each of the Right Certificates and the date of each of the Right Certificates. 

Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right
Certificates. Subject to the provisions of Section 11(a)(ii), Section 14 and Section 24 hereof, at any time after the Close of Business on the Distribution Date, and at or before the Close of Business on the earlier of the
Redemption Date or the Final Expiration Date, any Right Certificate or Right Certificates may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates, entitling the registered holder to purchase a like
number of one one-hundredths of a Preferred Share (or such other number of shares or other securities) as the Right Certificate or Right Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer,
split up, combine or exchange any Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Right Certificate or Right Certificates to be transferred, split up, combined or
exchanged at the office of the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Right Certificate until the
registered holder shall have completed and signed (with signature guarantee) the certificate contained in the form of assignment on the reverse side of such Right Certificate and shall have provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request. Thereupon the Rights Agent shall, subject to Section 11(a)(ii), Section 14 and Section 24 hereof, countersign
and deliver to the person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The Company may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection
with any transfer, split up, combination or exchange of Right Certificates. 
 Upon receipt by the Company and the Rights Agent
of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, at the Company’s
request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will issue, execute and deliver a
new Right Certificate of like tenor to the Rights Agent for countersignature and delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 

Notwithstanding any other provisions hereof, the Company and the Rights Agent may amend this Rights Agreement to provide for
uncertificated Rights in addition to or in place of Rights evidenced by Right Certificates. 

  
 8 

 Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights. 

(a) The registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided
herein) in whole or in part at any time (but subject to the last sentence of Section 9) after the Distribution Date upon surrender of the Right Certificate, with the form of election to purchase on the reverse side thereof duly executed (with
signature guarantee, and expressly designated as a “Preferred Shares” exercise), to the Rights Agent at the office of the Rights Agent designated for such purpose, together with payment of the Purchase Price for each one one-hundredth of a
Preferred Share (or such other number of shares or other securities) as to which the Rights are exercised, at or before the earliest of (i) the Close of Business on November 14, 2019 (the “Final Expiration Date”),
(ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”), (iii) the consummation of any Transaction described in Section 13(a) hereof which was approved by the Board
of Directors of the Company before any Person involved in such Transaction shall have become an Acquiring Person, or (iv) the time at which such Rights are exchanged as provided in Section 24 hereof. 

(b) The purchase price (the “Purchase Price”) for each one one-hundredth of a Preferred Share pursuant to
the exercise of a Right shall initially be $100 (i.e., $10,000 per full Preferred Share) and shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof and shall be payable in lawful money of the United States of
America in accordance with paragraph (c) below. 
 (c) Upon receipt of a Right Certificate representing
exercisable Rights, with the form of election to purchase duly executed (with signature guarantee), accompanied by payment of the Purchase Price for the shares (or other securities) to be purchased and an amount equal to any applicable transfer tax
required to be paid by the holder of such Right Certificate in accordance with Section 9 hereof by wire transfer or cashier’s check, payable to the order of the Company, the Rights Agent shall thereupon promptly
(i) (A) requisition from any transfer agent for the Preferred Shares certificates for the number of Preferred Shares to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests, or
(B) if the Company, in its sole discretion, shall have elected to deposit the Preferred Shares issuable upon exercise of the Rights hereunder into a depository, requisition from the depositary agent depositary receipts representing such number
of one one-hundredths of a Preferred Share as are to be purchased (in which case certificates for the Preferred Shares represented by such receipts shall be deposited by the transfer agent with the depositary agent) and the Company hereby directs
the depositary agent to comply with such request, (ii) when appropriate, requisition from the Company the amount of cash to be paid in lieu of issuance of fractional shares in accordance with Section 14 hereof, (iii) after receipt of
such certificates or depositary receipts, cause the same to be delivered to or upon the order of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder and (iv) when appropriate,
after receipt, deliver such cash to or upon the order of the registered holder of such Right Certificate. In the event that the Company is obligated to issue securities of the Company other than Preferred Shares (including Common Shares) of the
Company pursuant to Section 11(a) hereof, the Company will make all arrangements necessary so that such other securities are available for distribution by the Rights Agent, if and when appropriate, in the same manner as contemplated by the
previous sentence. 
 (d) In case the registered holder of any Right Certificate shall exercise fewer than all
the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent to the registered holder of such Right Certificate or to his duly authorized assigns, subject
to the provisions of Section 14 hereof. 

  
 9 

 (e) The Company covenants and agrees that it will cause to be reserved and
kept available out of its authorized and unissued Preferred Shares or any Preferred Shares held in its treasury, the number of Preferred Shares that will be sufficient to permit the exercise in full of all outstanding Rights in accordance with this
Section 7. An equivalent covenant and agreement shall also apply with respect to any Common Stock or other securities for which Rights may have become exercisable. 

(f) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be
obligated to undertake any action with respect to a registered holder upon the occurrence of any purported exercise as set forth in this Section 7 unless such registered holder shall have (i) completed and signed (with signature guarantee)
the certification following the form of election to purchase set forth on the reverse side of the Right Certificate surrendered for such exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request. 
 Section 8.
Cancellation and Destruction of Right Certificates. All Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the
Rights Agent for cancellation or in canceled form, or, if delivered or surrendered to the Rights Agent, shall be canceled by it, and no Right Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this
Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The
Rights Agent shall deliver all canceled Right Certificates to the Company, or shall, at the written request of the Company, destroy such canceled Right Certificates, and in such case shall deliver a certificate of destruction thereof to the Company.

 Section 9. Availability of Preferred Shares. The Company covenants and agrees that so long as the Preferred
Shares (and, after the time any Person becomes an Acquiring Person, Common Shares or any other securities) issuable upon the exercise of the Rights may be listed on any national securities exchange or quotation system, the Company shall use its
reasonable best efforts to cause, from and after such time as the Rights become exercisable, all shares reserved for such issuance to be listed on at least one such exchange or quotation system upon official notice of issuance upon such exercise.

 The Company covenants and agrees that it will take all such action as may be necessary to ensure that all Preferred Shares
(or Common Shares and other securities, as the case may be) delivered upon exercise of Rights shall, at the time of delivery of the certificates therefor (subject to payment of the Purchase Price), be duly and validly authorized and issued and fully
paid and nonassessable shares or other securities. 
 The Company further covenants and agrees that it will pay when due and
payable any and all federal and state transfer taxes and charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any Preferred Shares or other securities upon the exercise of Rights. The Company shall not,
however, be required to pay any transfer tax which may be payable 

  
 10 

 
in respect of any transfer or delivery of Rights to a person other than, or the issuance or delivery of certificates or depositary receipts for the Preferred Shares or other securities in a name
other than that of, the registered holder of the Right Certificate evidencing Rights surrendered for exercise or to issue or to deliver any certificates or depositary receipts for Preferred Shares or other securities upon the exercise of any Rights
until any such tax shall have been paid (any such tax being payable by the holder of such Rights at the time of surrender) or until it has been established to the Company’s reasonable satisfaction that no such tax is due. 

As soon as practicable after the Distribution Date, the Company shall use its reasonable best efforts to: (i) prepare and file a
registration statement under the Act, with respect to the securities purchasable upon exercise of the Rights on an appropriate form, will use its reasonable best efforts to cause such registration statement to become effective as soon as practicable
after such filing and will use its reasonable best efforts to cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the Act) until the earliest of the dates and times listed in
Section 7(a)(i)-(iv) hereof; and (ii) use its reasonable best efforts to qualify or register the Rights and the securities purchasable upon exercise of the Rights under the blue sky laws of such jurisdictions as may be necessary or
appropriate. Notwithstanding the foregoing, and without derogation of any remedies of Rights holders for any breach of the preceding sentence, the Rights shall not be exercisable in any jurisdiction unless the requisite qualification in such
jurisdiction shall have been obtained and until a registration statement under the Securities Act (if required) shall have been declared effective. Pending such qualification and/or effectiveness, the Company shall issue a public announcement
stating that the exercisability of the Rights has been temporarily suspended; and the Company shall also issue a public announcement at such time as the suspension is no longer in effect. 

Section 10. Preferred Shares Record Date. Each person in whose name any certificate for Preferred Shares or other
securities is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares or other securities represented thereby on, and such certificate shall be dated, the date upon which the
Right Certificate evidencing such Rights was duly surrendered with the forms of election and certification duly executed (with signature guarantee) and payment of the Purchase Price (and any applicable transfer taxes) was made; provided, however,
that if the date of such surrender and payment is a date upon which the Preferred Shares or other securities transfer books of the Company are closed and/or the right to exercise has been temporarily suspended pursuant to Section 9, such person
shall be deemed to have become the record holder of such Preferred Shares or other securities on, and such certificate shall be dated, the next succeeding Business Day on which the Preferred Shares or other securities transfer books of the Company
are open and no Section 9 suspension of the right to exercise is in effect. Before the exercise of the Rights evidenced thereby, the holder of a Right Certificate, as such, shall not be entitled to any rights of a holder of Preferred Shares or
other securities for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any
proceedings of the Company, except as provided herein. 
 Section 11. Adjustment of Purchase Price, Number of Shares
or Number of Rights. The Purchase Price, the number of Preferred Shares (or other securities) covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11. 

  
 11 

 (a) (i) In the event the Company shall at any time after the date of this
Agreement (A) declare a dividend on the Preferred Shares payable in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller number of Preferred Shares or
(D) issue any shares of its capital stock in a reclassification of the Preferred Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving Company), except as
otherwise provided in this Section 11(a), the number and kind of shares of capital stock issuable at the time of the record date for such dividend or of the effective date of such subdivision, combination or reclassification shall be
proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock which, if such Right had (disregarding any impediment to exercise and any
failure of registry books to be open) been exercised immediately before such date, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification. The Company
covenants and agrees for the benefit of all Rights holders that in no event shall it declare or effect any such dividend, subdivision, combination or reclassification which would render the consideration to be paid upon the exercise of one Right to
be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. If an event occurs which would require an adjustment under both Section 11(a)(i) and Section 11(a)(ii) hereof, the
adjustment provided for in this Section 11(a)(i) shall be in addition to, and shall be made before any adjustment required pursuant to Section 11(a)(ii) hereof. 

(ii) Each holder of a Right shall, beginning at the later of such time any Person becomes an Acquiring Person or the
effective date of an appropriate registration statement filed under the Act pursuant to Section 9 hereof (such later time, the “Exercisability Trigger”), have a right to receive, upon exercise thereof (expressly designated as a
“Flip-In” exercise) at a price equal to the then current Purchase Price, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares as shall equal the result obtained by dividing such
Purchase Price by 20% of the then Current Per Share Market Price of the Common Shares on the date such Person became an Acquiring Person (the “Flip-In”). This paragraph is expressly subject to Sections 23 and 24 hereof and the
provisions of the next paragraph of this Section 11(a)(ii). 
 Notwithstanding anything in this Agreement
to the contrary, from and after the time any Person becomes an Acquiring Person, any Rights beneficially owned by (i) such Acquiring Person, (ii) a transferee of such Acquiring Person who becomes a transferee after the Acquiring Person
became such, or (iii) a transferee of such Acquiring Person who becomes a transferee before or concurrently with the Acquiring Person’s becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for
consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom the Acquiring Person has any continuing agreement, arrangement or understanding regarding the transferred Rights or
(B) a transfer which the Board of Directors of the Company has determined is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of this Section 11(a)(ii), shall become null and void without
any further action and no holder of such Rights shall have any rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. The Company shall use all reasonable efforts to ensure that the provisions of
this Section 11(a)(ii) and Section 4(b) hereof are complied with, but shall have no liability to any holder of Rights or any other Person as a result of its failure to make any determinations with respect to an Acquiring Person or its
transferees hereunder. No Right Certificate shall be issued at any time upon the transfer of any Rights to an Acquiring Person whose Rights would be void pursuant to the preceding sentence thereof or such a transferee or to any nominee of such
Acquiring Person or transferee; and any Right Certificate delivered to the Rights Agent for transfer to an Acquiring Person whose Rights would be void pursuant to the preceding sentence shall be canceled. 

  
 12 

 (iii) In lieu of issuing Common Shares upon Flip-In exercises, the Company
may, if a majority of the Board of Directors then in office determines that such action is necessary or appropriate and not contrary to the interests of holders of Rights, elect to (and, in the event that the Board of Directors has not exercised the
exchange right contained in Section 24(c) hereof and there are not sufficient treasury shares and authorized but unissued Common Shares to permit the exercise in full of the Rights in accordance with the Flip-In, the Company shall) take all
such action as may be necessary to authorize, issue or pay, upon the Flip-In exercise of the Rights, cash, property, Common Shares, other securities or any combination thereof having an aggregate value equal to the value of the Common Shares which
otherwise would have been issuable pursuant to the Flip-In, which aggregate value shall be determined by a nationally recognized investment banking firm selected by a majority of the Board of Directors then in office. For purposes of the preceding
sentence, the value of the Common Shares shall be determined pursuant to Section 11(d) hereof. Following the occurrence of the Exercisability Trigger, a majority of the Board of Directors then in office may suspend the Flip-In exercisability of
the Rights for a period of up to 40 days following the Exercisability Trigger to the extent that such directors have not determined whether to exercise their rights of election under this Section 11(a)(iii). In the event of any such suspension,
the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended; and the Company shall also issue a public announcement at such time as the suspension is no longer in effect. 

(iv) Whether or not the Company takes any action described in Section 11(a)(iii), the Company may, if a majority of
the Board of Directors then in office determines that such action is necessary or appropriate and not contrary to the interests of holders of Rights, elect to (A) determine the excess of (1) the value of the Common Shares issuable upon the
Flip-In exercise of a Right over (2) the Purchase Price (such excess, the “Spread”) and (B) with respect to each Right, take all such action as may be necessary to authorize, issue or pay, upon exercise of each Right
(expressly designated as a Flip-In exercise and in accordance with the terms of this Agreement, except with a Purchase Price of zero), cash, property, Common Shares, other securities or any combination thereof having an aggregate value equal to the
Spread, which aggregate value shall be determined by a nationally recognized investment banking firm selected by a majority of the Board of Directors then in office. For purposes of the preceding sentence, the value of the Common Shares shall be
determined pursuant to Section 11(d) hereof. Any such election by the Board of Directors must be applied without discrimination among all holders thereafter exercising pursuant to the Flip-In. 

(b) In case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of
Preferred Shares entitling them to subscribe for or purchase Preferred Shares (or shares having materially the same powers, preferences and rights, qualifications, limitations and restrictions as the Preferred Shares (“equivalent preferred
shares”)) or securities convertible into Preferred Shares or equivalent preferred shares at a price per Preferred Share or equivalent preferred share (or having a conversion price per share, if a security convertible into Preferred Shares or
equivalent preferred shares) less than the then Current Per Share Market Price of the Preferred Shares on such record date, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect
immediately before such record date by a fraction, the numerator of which shall be the number of Preferred Shares outstanding on such record date plus the number of Preferred Shares which the aggregate offering price of the total

  
 13 

 
number of Preferred Shares and/or equivalent preferred shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at
such Current Per Share Market Price of the Preferred Shares and the denominator of which shall be the number of Preferred Shares outstanding on such record date plus the number of additional Preferred Shares and/or equivalent preferred shares to be
offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible), and the number of securities issuable upon exercise of the Rights shall be increased in a similar proportion. The Company
covenants and agrees for the benefit of all Rights holders that in no event shall it so fix or effect any such issuance which would render the consideration to be paid upon the exercise of one Right to be less than the aggregate par value of the
shares of capital stock of the Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as
determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent. Preferred Shares owned by or held for the account of the Company shall not be deemed outstanding
for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such rights, options or warrants are not so issued, the Purchase Price (and number of securities issuable
upon exercise of a Right) shall be adjusted to be the Purchase Price (and number of securities issuable upon exercise of a Right) which would then be in effect if such record date had not been fixed. 

(c) In case the Company shall fix a record date for the making of a distribution to all holders of the Preferred Shares
(including any such distribution made in connection with a merger in which the Company is the continuing or surviving corporation) of evidences of indebtedness or assets or subscription rights or warrants (excluding those referred to in
Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately before such record date by a fraction, the numerator of which shall be the then Current
Per Share Market Price of the Preferred Shares (as such term is hereinafter defined) on such record date, less the fair market value (as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a
statement filed with the Rights Agent) of the portion of the assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to one Preferred Share and the denominator of which shall be such Current Per
Share Market Price of the Preferred Shares. The Company covenants and agrees for the benefit of all Rights holders that in no event shall it so fix or effect any such distribution which would render the consideration to be paid upon the exercise of
one Right to be less than the aggregate par value of the shares of capital stock of the Company to be issued upon exercise of one Right. Such adjustments shall be made successively whenever such a record date is fixed; and in the event that such
distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 

(d) (i) For the purpose of any computation hereunder, the “Current Per Share Market Price” of any
security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the mean average of the daily closing prices per share of such Security for the 30 consecutive Trading Days immediately before
such date; provided, however, that in the event that the Current Per Share Market Price of the Security is determined during a period following the announcement by the issuer of such Security of (A) a dividend or distribution on such Security
payable in shares of such Security or securities convertible into (or exercisable for a nominal exercise price for) shares of such Security, or (B) any subdivision, combination or reclassification of such Security or securities convertible into
(or exercisable for a nominal exercise price for) shares of such Security, or (C) any subdivision, combination or reclassification of such Security and before the 

  
 14 

 
expiration of 30 Trading Days after the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case,
the Current Per Share Market Price shall be appropriately adjusted to reflect the Current Per Share Market Price per share equivalent of such Security. The closing price for each day shall be the last sale price, regular way, or, in case no such
sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New
York Stock Exchange or, if the Security is not listed or admitted to trading on the New York Stock Exchange, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal national
securities exchange on which the Security is listed or admitted to trading or, if the Security is not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low
asked prices in the over-the-counter market, as reported by the OTC Bulletin Board (or successor thereto), or, if on any such date the Security is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Security selected by the Board of Directors of the Company or, if on any such date no professional market maker is making a market in the Security, the price as determined in good faith by the Board
of Directors of the Company (subject to Section 11(d)(ii) below). The term “Trading Day” shall mean a day on which the principal national securities exchange on which the Security is listed or admitted to trading is open for
the transaction of business or, if the Security is not listed or admitted to trading on any national securities exchange, a Business Day. 
 (ii) If the Preferred Shares are not publicly traded, the Current Per Share Market Price of the Preferred Shares shall be conclusively deemed to be the Current Per Share Market Price of one (appropriately
adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof) Common Share as determined pursuant to Section 11(d)(i) hereof multiplied by 100. If neither the Common Shares nor the Preferred Shares
are publicly held or so listed or traded, Current Per Share Market Price shall mean the fair value per share as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the
Rights Agent and shall be conclusive for all purposes. 
 (e) No adjustment in the Purchase Price shall be
required unless such adjustment would require an increase or decrease of at least 1% in the Purchase Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one one-hundredth of a Preferred Share or one ten-thousandth of any other share or security as the case
may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction which requires such adjustment or
(ii) the date of the expiration of the right to exercise any Rights. 
 (f) If as a result of an adjustment
made pursuant to Section 11(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock of the Company in addition to or other than Preferred Shares, thereafter the number of such other
shares so receivable upon exercise of any Right shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Sections 11(a) through
11(c) hereof, inclusive, and the provisions of Sections 7, 9, 10, 13 and 14 hereof (and any other applicable provisions hereof) with respect to the Preferred Shares shall apply on like terms to any such other shares, as if such original references
to Preferred Shares were references to such other shares (or, as the case may be, the Preferred Shares and such other shares), and to an appropriate number thereof, and with all necessary corresponding provisions deemed included. 

  
 15 

 (g) All Rights originally issued by the Company after any adjustment made to
the Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the adjusted number of Preferred Shares or other securities purchasable from time to time hereunder upon exercise of the Rights, all subject to
further adjustment as provided herein. 
 (h) Unless the Company shall have exercised its election as provided in
Section 11(i) below, upon each adjustment of the Purchase Price as a result of the calculations made in Section 11(b) and Section 11(c) hereof, each Right outstanding immediately before the making of such adjustment shall thereafter
evidence the right to purchase, at the adjusted Purchase Price, that number of Preferred Shares (calculated to the nearest one one-millionth of a Preferred Share) or other securities obtained by (i) multiplying (x) the number of Preferred
Shares or other securities covered by a Right immediately before this adjustment by (y) the Purchase Price in effect immediately before such adjustment of the Purchase Price and (ii) dividing the product so obtained by the Purchase Price
in effect immediately after such adjustment of the Purchase Price. 
 (i) The Company may elect on or after the
date of any adjustment of the Purchase Price to equivalently adjust the number of Rights, in substitution for any adjustment in the number of Preferred Shares or other securities purchasable upon the exercise of a Right. Each of the Rights
outstanding after such adjustment of the number of Rights shall be exercisable for the number of Preferred Shares or other securities for which a Right was exercisable immediately before such adjustment. Each Right held of record before such
adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one ten-thousandth) obtained by dividing the Purchase Price in effect immediately before adjustment of the Purchase Price by the Purchase Price in
effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the
adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, this record date shall be at least 10 days later than the date of the public
announcement. If Right Certificates have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Right Certificates
on such record date Right Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to
such holders of record in substitution and replacement for the Right Certificates held by such holders before the date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the Rights to which
such holders shall be entitled after such adjustment. Right Certificates so to be distributed shall be issued, executed and countersigned in the manner provided for herein and shall be registered in the names of the holders of record of Right
Certificates on the record date specified in the public announcement. 
 (j) Irrespective of any adjustment or
change in the Purchase Price or the number of Preferred Shares or other securities issuable upon the exercise of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of
Preferred Shares or other securities which were expressed in the initial Right Certificates issued hereunder. 

  
 16 

 (k) Before taking any action that would cause an adjustment reducing the
Purchase Price below one one-hundredth of the then par value, if any, of the Preferred Shares (or other securities) issuable upon exercise of the Rights or before reducing the par value of the Preferred Shares (or other securities) to the same
effect, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid and nonassessable Preferred Shares (or other securities) at such adjusted
Purchase Price. 
 (l) In any case in which this Section 11 shall require that an adjustment in the Purchase
Price be made effective as of a record date for a specified event, the Company may elect to defer until the occurrence of such event (but in no event for longer than 75 days) the issuing to the holder of any Right exercised after such record date of
the Preferred Shares and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect before such adjustment; provided, however, that the Company shall deliver to such holder a
due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares upon the occurrence of the event requiring such adjustment. 

(m) The Company covenants and agrees for the benefit of Rights holders that, after the Distribution Date, it will not,
except as permitted by Section 23, Section 24 or Section 27 hereof, take (or permit any Subsidiary to take) any action the purpose of which is to, or if at the time such action is taken it is reasonably foreseeable that the effect of
such action is to, materially diminish or eliminate the benefits intended to be afforded by the Rights. Any such action taken by the Company during any period after any Person becomes an Acquiring Person but before the Distribution Date shall be
null and void unless such action could be taken under this Section 11(m) from and after the Distribution Date. 
 (n) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase Price, in addition to those adjustments expressly required by
this Section 11, as and to the extent that it in its sole discretion shall determine to be advisable in order that any consolidation or subdivision of the Preferred Shares, issuance wholly for cash of any Preferred Shares at less than the
Current Per Share Market Price, issuance wholly for cash of Preferred Shares or securities which by their terms are convertible into or exchangeable for Preferred Shares, dividends on Preferred Shares payable in Preferred Shares or issuance of
rights, options or warrants referred to hereinabove in Section 11(b), hereafter made by the Company to holders of its Preferred Shares would not be taxable to such stockholders. 

Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in
Sections 11 and 13 hereof, the Company shall promptly (a) prepare a certificate setting forth such adjustment, and a brief statement of the facts accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent
for the Common Shares and/or the Preferred Shares a copy of such certificate and (c) mail a brief summary thereof to each holder of a Right Certificate in accordance with Section 25 hereof. The Rights Agent shall be fully protected in
relying on any such certificate and on any adjustment therein contained and shall not be deemed to have knowledge of any adjustment unless and until it shall have received such certificate. 

  
 17 

 Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power.

 (a) In the event that, directly or indirectly (x) the Company shall consolidate with, or merge with
and into, any Interested Stockholder, or if in such merger or consolidation all holders of Common Shares are not treated alike, any other Person, (y) any Interested Stockholder, or if in such merger all holders of Common Shares are not treated
alike, any other Person shall merge with and into the Company, and the Company shall be the continuing or surviving corporation of such merger (other than, in the case of either transaction described in (x) or (y), a merger or consolidation
which would result in all of the voting power represented by the securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into securities of the surviving entity)
all of the voting power represented by the securities of the Company or such surviving entity outstanding immediately after such merger or consolidation and the holders of such securities not having changed as a result of such merger or
consolidation), or (z) the Company shall sell, mortgage, exclusively-license or otherwise transfer (or one or more of its Subsidiaries shall sell, mortgage, exclusively-license or otherwise transfer), in one or more transactions, assets or
earning power aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any Interested Stockholder or Interested Stockholders, or if in such transaction all holders of Common Shares are not
treated alike, to any other Person, (other than the Company or any Subsidiary of the Company in one or more transactions each of which individually and in the aggregate does not violate Section 13(d) hereof) then, and in each such case, proper
provision shall be made so that (i) each holder of a Right, subject to the second paragraph of Section 11(a)(ii) hereof, shall have the right to receive, upon the exercise thereof (expressly designated as a “Flip-Over” exercise)
at a price equal to the then current Purchase Price and in accordance with the terms of this Agreement and in lieu of any other exercise proceeds thereunder, such number of freely tradable Common Shares of the Principal Party, free and clear of
liens, rights of call or first refusal, encumbrances or other adverse claims, as shall be equal to the result obtained by dividing the then current Purchase Price by 50% of the then Current Per Share Market Price of the Common Shares of such
Principal Party on the date of consummation of such consolidation, merger, sale or transfer; (ii) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such consolidation, merger, sale or transfer, all the
obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company” shall thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 hereof shall
apply to such Principal Party; and (iv) such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of shares of its Common Shares in accordance with Section 9 hereof) in connection
with such consummation as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to its Common Shares thereafter deliverable upon the exercise of the Rights (together,
“the “Flip-Over”). 
 Customary provisions in a merger or consolidation agreement, by which
the Company is acquired, to the effect that Common Shares of the acquired entity held by the acquiring entity and/or its affiliates shall be cancelled without consideration shall not be deemed to mean that, for purposes of the preceding paragraph or
of Section 23(b) hereof, all holders of Common Shares are not treated alike in such merger or consolidation. 
 (b) “Principal Party” shall mean: 
 (i) in the
case of any transaction described in clause (x) or (y) of the first sentence of Section 13(a) hereof, the Person that is the issuer of any securities into which Common Shares are converted in such merger or consolidation or, if there
is more than one such issuer, the issuer the Common Shares of which have the greatest aggregate market value of shares outstanding, and if no securities are so issued, the Person that is the other party to the merger or consolidation (or, if
applicable, the Company, if it is the surviving corporation), or, if there is more than one such 

  
 18 

 
Person, the Person the Common Shares of which have the greatest aggregate market value of shares outstanding, or if the Person that is the other party to the merger does not survive the merger,
the Person that does survive the merger (including the Company if it survives), or the Person resulting from the consolidation; and 
 (ii) in the case of any transaction described in (z) of the first sentence of Section 13(a) hereof, the Person that is the party receiving the greatest portion of the assets or earning power
transferred pursuant to such transaction or transactions; 
 provided, however, that in any case, (1) if either immediately before or
immediately after such transaction such Person is a direct or indirect Subsidiary or Affiliate of another Person, “Principal Party” shall refer to such other Person; (2) if such Person is a Subsidiary, directly or indirectly, or
Affiliate of more than one Person, “Principal Party” shall refer to whichever of such Persons is the issuer of Common Shares having the greatest aggregate market value; and (3) if such Person is owned, directly or indirectly, by a
joint venture formed by two or more Persons that are not owned, directly or indirectly, by the same Person, the rules set forth in (1) and (2) above shall apply to each of the chains of ownership having an interest in such joint venture as
if such party were a “Subsidiary” of both or all of such joint venturers and the Principal Parties in each such chain shall bear the obligations set forth in this Section 13 in the same ratio as their direct or indirect interests in
such Person bear to the total of such interests. 
 (c) The Company shall not consummate any such Transaction
unless the Principal Party shall have a sufficient number of authorized Common Shares that have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this Section 13 and unless prior thereto
the Company and each Principal Party and each other Person who may become a Principal Party as a result of such Transaction shall have (i) executed and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in
paragraphs (a) and (b) of this Section 13 and (ii) prepared, filed and had declared and remain effective a registration statement under the Act on the appropriate form with respect to the Rights and the securities exercisable
upon exercise of the Rights and further providing that, as soon as practicable after the date of any Transaction mentioned in paragraph (a) of this Section 13, the Principal Party at its own expense will: 

(i) cause the registration statement filed under the Act with respect to the Rights and the securities purchasable upon
exercise of the Rights on an appropriate form to remain effective (with a prospectus at all times meeting the requirements of the Act) until the Final Expiration Date; 

(ii) use its best efforts to qualify or register the Rights and the securities purchasable upon exercise of the Rights
under the blue sky laws of such jurisdictions as may be necessary or appropriate; 
 (iii) list the Rights and
the securities purchasable upon exercise of the Rights on each national securities exchange on which the Common Shares were listed before the consummation of such Transaction or, if the Common Shares were not listed on a national securities exchange
before the consummation of the Transaction, on a national securities exchange; and 

  
 19 

 (iv) deliver to holders of the Rights historical financial statements for
the Principal Party and each of its Affiliates which comply in all material respects with the requirements for registration on Form 10 under the Exchange Act. 
 The provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers. 

(d) After the Distribution Date, the Company covenants and agrees that it shall not enter into any Transaction described
in Section 13(a) hereof, if (x) at the time of or after such Transaction there are any charter or bylaw provisions or any rights, warrants or other instruments or securities outstanding, agreements in effect or any other action taken which
would eliminate or otherwise substantially diminish the benefits intended to be afforded by the Rights or (y) before, simultaneously with or immediately after such Transaction, the stockholders of the Person who constitutes, or would
constitute, the “Principal Party” for purposes of Section 13(a) hereof shall have received a distribution of Rights previously owned by such Person. The Company shall not consummate any such Transaction described in Section 13(a)
hereof unless prior thereto the Company and such other Person shall have executed and delivered to the Rights Agent a supplemental agreement evidencing compliance with this Section 13(d) and acceptance by such other Person of all provisions of
this Section 13. 
 (e) If, for any reason, the Rights cannot be exercised for Common Shares of a Principal
Party as provided in Section 13(a) (or if , whether or not before the Transaction, a majority of the Board of Directors of the Company then in office determines that such action is necessary or appropriate and not contrary to the interests of
holders of Rights), then each holder of Rights shall have the right to exchange its Rights for cash from such Principal Party in an amount equal to the number of Common Shares of such Principal Party that it would otherwise be entitled to purchase
times 50% of the Current Per Share Market Price of such Common Shares of such Principal Party. If, for any reason, the foregoing formulation cannot be applied to determine the cash amount into which the Rights are exchangeable, then the Board of
Directors of the Company (or, if the Company no longer exists, of the Principal Party), based upon the advice of one or more nationally recognized investment banking firms, shall determine such amount reasonably and with good faith to the holders of
Rights. Any such determination shall be final and binding on the Rights Agent. The holder of Rights shall, to elect to so exchange its Rights, surrender the Right Certificate, with the form of election to purchase on the reverse side thereof duly
executed (with signature guarantee, and expressly designated as a “Flip-Over” exercise with a Purchase Price of zero), and in accordance with the terms of this Agreement, to the Rights Agent at the office of the Rights Agent designated for
such purpose or to the Principal Party. 
 (f) Notwithstanding anything contained herein to the contrary, in the
event of consummation of any Transaction described in Section 13(a) hereof which was approved by the Board of Directors of the Company before any Person involved in such Transaction shall have become an Acquiring Person, this Agreement and the
rights of holders of Rights hereunder shall be terminated in accordance with Section 7(a)(iii) hereof. 
 Section 14.
Fractional Rights and Fractional Shares. 
 (a) The Company shall, if necessary, issue fractions of Rights,
and distribute Right Certificates which evidence fractional Rights. 

  
 20 

 (b) The Company shall not be required to issue fractions of Preferred Shares
(other than fractions which are integral multiples of one one-hundredth of a Preferred Share) upon exercise of the Rights or to distribute certificates which evidence fractional Preferred Shares (other than fractions which are integral multiples of
one one-hundredth of a Preferred Share). Fractions of Preferred Shares in integral multiples of one one-hundredth of a Preferred Share may, at the election of the Company, be evidenced by depositary receipts; provided, however, that holders of such
depositary receipts shall have all of the designations and the powers, preferences and rights, and the qualifications, limitations and restrictions to which they are entitled as beneficial owners of the Preferred Shares represented by such
depositary receipts. In lieu of fractional Preferred Shares that are not integral multiples of one one-hundredth of a Preferred Share, the Company shall pay to the registered holders of Right Certificates at the time such Rights are exercised as
herein provided an amount in cash equal to the same fraction of the current market value of one Preferred Share. For the purposes of this Section 14(b), the current market value of a Preferred Share shall be the Current Per Share Market Price
of the Preferred Shares for the Trading Day immediately before the date of such exercise. 
 (c) Following the
occurrence of one of the transactions or events specified in Section 11 hereof giving rise to the right to receive Common Shares, capital stock equivalents (other than Preferred Shares) or other securities upon the exercise of a Right, the
Company shall not be required to issue fractions of Common Shares or units of such Common Shares, capital stock equivalents or other securities upon exercise of the Rights or to distribute certificates which evidence fractional Common Shares,
capital stock equivalents or other securities. In lieu of fractional Common Shares, capital stock equivalents or other securities, the Company shall pay to the registered holders of Right Certificates at the time such Rights are exercised as herein
provided an amount in cash equal to the same fraction of the current market value of one Common Share or unit of such Common Shares, capital stock equivalents or other securities. For purposes of this Section 14(c), the current market value
shall be the Current Per Share Market Price for the Trading Day immediately before the date of such exercise and, if such capital stock equivalent is not traded, each such capital stock equivalent shall have the value of one one-hundredth of a
Preferred Share or such different value as may be determined in good faith by the Company’s Board of Directors. 
 (d) The holder of a Right by the acceptance of the Right expressly waives his right to receive any fractional Rights or any fractional shares upon exercise or exchange of a Right (except as provided
above). 
 Section 15. Rights of Action. All rights of action in respect of this Agreement, excepting the rights
of action given to the Rights Agent under Sections 18 and 20 hereof, are vested in the respective registered holders of the Right Certificates (and, before the Distribution Date, the registered holders of the Common Shares) and any registered holder
of any Right Certificate (or, before the Distribution Date, of the Common Shares), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, before the Distribution Date, of the Common Shares), may, in his own
behalf and for his own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise the Rights evidenced by such Right Certificate in the manner
provided in such Right Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any
breach of this Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of the obligations of any Person subject to, this Agreement. Holders of Rights shall be
entitled to recover the reasonable costs and expenses, including attorneys fees, incurred by them in any action to enforce the provisions of this Agreement. 

  
 21 

 Section 16. Agreement of Right Holders. Every holder of a Right, by accepting
the same, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that: 

(a) before the Distribution Date, the Rights will be transferable only in connection with the transfer of the Common
Shares; 
 (b) after the Distribution Date, the Right Certificates are transferable (subject to the provisions of
this Rights Agreement) only on the registry books of the Rights Agent if surrendered at the principal office of the Rights Agent, with the appropriate form of Assignment duly endorsed (with signature guarantee); and 

(c) the Company and the Rights Agent may deem and treat the person in whose name the Right Certificate (or, before the
Distribution Date, the associated Common Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right Certificates or the associated Common
Shares certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary. 

Section 17. Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Right Certificate shall be
entitled to vote, receive dividends or be deemed for any purpose the holder of the Preferred Shares or any other securities which may at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or
in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at
any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25 hereof), or to receive dividends or subscription rights, or
otherwise, until the Right or Rights evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof. 
 Section 18. Concerning the Rights Agent. The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand of
the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the
Rights Agent for, and to hold it harmless against, any loss, liability, or expense, incurred without negligence, bad faith or willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection with the
acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability in the premises. The indemnity provided herein shall survive the expiration of the Rights and the termination of this
Agreement. 
 The Rights Agent shall be protected and shall incur no liability for, or in respect of any action taken, suffered
or omitted by it in connection with, its administration of this Agreement in reliance upon any Right Certificate or certificate for the Preferred Shares or Common Shares or for other 

  
 22 

 
securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document
believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper person or persons, or otherwise upon the advice of counsel as set forth in Section 20 hereof. In no case will the Rights Agent
be liable for special, indirect, incidental or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised of such loss or damage. 

Section 19. Merger or Consolidation or Change of Name of Rights Agent. Any corporation or other entity into which the
Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any corporation or other entity resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or
any corporation or other entity succeeding to the shareholder services or corporate trust business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of
any paper or any further act on the part of any of the parties hereto, provided that such corporation or other entity would be eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof. In case at the time
such successor Rights Agent shall succeed to the agency created by this Agreement any of the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights
Agent and deliver such Right Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the
predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement. 

In case at any time the name of the Rights Agent shall be changed and at such time any of the Right Certificates shall have been
countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been countersigned, the
Rights Agent may countersign such Right Certificates either in its prior name or in its changed name; and in all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement. 

Section 20. Duties of Rights Agent. The Rights Agent undertakes the duties and obligations imposed by this Agreement upon
the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be bound: 
 (a) The Rights Agent may consult with legal counsel of its choice (who may be legal counsel for the Company), and the opinion of such counsel shall be full and complete authorization and protection to the
Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion. 
 (b)
Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter be proved or established by the Company before taking or suffering any action hereunder, such fact or matter
(unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by any one of the Chairman of the Board, the Chief Executive Officer, the President, the
Chief Financial Officer, any Vice President, the Treasurer or the Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it
under the provisions of this Agreement in reliance upon such certificate. 

  
 23 

 (c) The Rights Agent shall be liable hereunder to the Company and any other
Person only for its own negligence, bad faith or willful misconduct. 
 (d) The Rights Agent shall not be liable
for or by reason of any of the statements of fact or recitals contained in this Agreement or in the Right Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and shall be
deemed to have been made by the Company only. 
 (e) The Rights Agent shall not be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except its countersignature thereof); nor shall
it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including the Rights becoming void
pursuant to Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for in Sections 3, 11, 13, 23 or 24 hereof, or the ascertaining of the existence of facts that would
require any such change or adjustment (except with respect to the exercise of Rights evidenced by Right Certificates after receipt of a certificate pursuant to Section 12 hereof describing such change or adjustment); nor shall it by any act
hereunder be deemed to make any representation or warranty as to the authorization or reservation of any Preferred Shares to be issued pursuant to this Agreement or any Right Certificate or as to whether any Preferred Shares will, when issued, be
validly authorized and issued, fully paid and nonassessable. 
 (f) The Company agrees that it will perform,
execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the
Rights Agent of the provisions of this Agreement. 
 (g) The Rights Agent is hereby authorized and directed to
accept instructions with respect to the performance of its duties hereunder from any one of the Chairman of the Board, the Chief Executive Officer, the President, the Chief Financial Officer, any Vice President, the Secretary or the Treasurer of the
Company, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered by it in good faith in accordance with instructions of any such officer or for any delay in
acting while waiting for those instructions. Any application by the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken or omitted by the Rights Agent
with respect to its duties or obligations under this Agreement and the date on and/or after which such action shall be taken or omitted and the Rights Agent shall not be liable for any action taken or omitted in accordance with a proposal included
in any such application on or after the date specified therein (which date shall not be less than three Business Days after the date indicated in such application unless any such officer shall have consented in writing to an earlier date) unless,
before taking or omitting any such action, the Rights Agent has received written instructions in response to such application specifying the action to be taken or omitted. 

  
 24 

 (h) The Rights Agent and any stockholder, director, officer or employee of
the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act
as fully and freely as though it were not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other legal entity. 

(i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty
hereunder either itself or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from
any such act, default, neglect or misconduct, provided reasonable care was exercised in the selection and continued employment thereof. 
 (j) No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the
exercise of its rights if there shall be reasonable grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it. 

(k) If, with respect to any Right Certificate surrendered to the Rights Agent for exercise or transfer, the certificate
attached to the form of assignment or form of election to purchase, as the case may be, has not been executed or has not been signature-guaranteed, the Rights Agent shall not take any further action with respect to such requested exercise of
transfer without first consulting with the Company. 
 (l) At any time and from time to time after the
Distribution Date, upon the request of the Company, the Rights Agent shall promptly deliver to the Company a list, as of the most recent practicable date (or as of such earlier date as may be specified by the Company), of the holders of record of
Rights. 
 Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be
discharged from its duties under this Agreement upon 30 days’ notice in writing mailed to the Company and to each transfer agent for the Common Shares and/or Preferred Shares by registered or certified mail, and to the holders of the Rights by
first-class mail. The Company may remove the Rights Agent or any successor Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent for the Common Shares
and/or Preferred Shares by registered or certified mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such
appointment within a period of 30 days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right, then the registered
holder of any Right may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be either (a) a corporation business trust or
limited liability company organized and doing business under the laws of the United States or of any other state of the United States which is authorized under such laws to exercise corporate trust or stock transfer powers and is subject to
supervision or examination by federal or state authority and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $50 million or (b)

  
 25 

 
a direct or indirect wholly owned subsidiary of such an entity or its wholly-owning parent. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and
deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent
for the Common Shares and/or Preferred Shares, and mail a notice thereof in writing to the registered holders of the Rights. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the
legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
 Section 22. Issuance of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right
Certificates evidencing Rights in such form as may be approved by its Board of Directors to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property purchasable under the Right
Certificates made in accordance with the provisions of this Agreement. In addition, in connection with the issuance or sale of Common Shares following the Distribution Date and before the earlier of the Redemption Date and the Final Expiration Date,
the Company (a) shall with respect to Common Shares so issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement in existence before the Distribution Date, or upon the exercise, conversion or exchange of
securities, notes or debentures issued by the Company and in existence before the Distribution Date, and (b) may, in any other case, if deemed necessary or appropriate by the Board of Directors of the Company, issue Right Certificates
representing the appropriate number of Rights in connection with such issuance or sale; provided, however, that (i) the Company shall not be obligated to issue any such Right Certificates if, and to the extent that, the Company shall be advised
by counsel that such issuance would create a significant risk of material adverse tax consequences to the Company or the Person to whom such Right Certificate would be issued, and (ii) no Right Certificate shall be issued if, and to the extent
that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 
 Section 23. Redemption.

 (a) The Rights may be redeemed by action of the Board of Directors pursuant to Section 23(b) hereof
and shall not be redeemed in any other manner. 
 (b) (i) The Board of Directors of the Company may, at its
option, at any time before the Final Expiration Date, redeem all but not less than all of the then outstanding Rights at a redemption price of $.0001 per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such redemption price being hereinafter referred to as the “Redemption Price”), and the Company may, at its option, pay the Redemption Price in Common Shares (based on the Current Per Share Market
Price of the Common Shares at the time of redemption), cash or any other form of consideration deemed appropriate by the Board of Directors of the Company. The redemption of the Rights by the Board of Directors of the Company may be made effective
at such time, on such basis and subject to such conditions as the Board of Directors in its sole discretion may establish. Pending the effective date of a delayed-effectiveness redemption, the fact that any Person becomes an Acquiring Person shall
not affect such redemption and would not result in the Rights becoming exercisable. Notwithstanding the foregoing, the Board of Directors shall not be empowered to effect such a redemption at any time after any Person (other than an Exempt Person)
becomes the Beneficial Owner of 50% or more of the Common Shares then outstanding or after any event described in clause (x), (y) or (z) of the first sentence of Section 13(a) hereof. 

  
 26 

 (ii) In addition, the Board of Directors of the Company may, at its option,
at any time after the time any Person becomes an Acquiring Person and the expiration of any period during which the holder of Rights may exercise the rights under the Flip-In provision hereof but before any event described in clause (x), (y) or
(z) of the first sentence of Section 13(a) hereof, redeem all but not less than all of the then outstanding Rights at the Redemption Price (x) in connection with any merger, consolidation or sale, mortgage, exclusive license or other
transfer (in one transaction or in a series of related transactions) of assets or earning power aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) in which all holders of Common Shares are
treated alike and not involving (other than as a holder of Common Shares being treated like all other such holders) an Interested Stockholder or (y) if at the time of such redemption (A) the Acquiring Person is no longer the Beneficial
Owner of 4.9% or more of the then outstanding Common Shares, and (B) no other Persons are Acquiring Persons. 
 (c) Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights pursuant to Section 23(b) hereof, and without any further action and without any notice,
the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice of any such redemption; provided, however, that the
failure to give, or any defect in, any such notice shall not affect the validity of such redemption. Within 10 days after such action of the Board of Directors ordering the redemption of the Rights pursuant to Section 23(b) hereof, the Company
shall mail a notice of redemption to all the holders of the then outstanding Rights at their last addresses as they appear upon the registry books of the Rights Agent or, before the Distribution Date, on the registry books of the transfer agent for
the Common Shares, provided, however, that failure to give, or any defect in, any such notice shall not affect the validity of such redemption. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder
receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at
any time in any manner other than (i) that specifically set forth in this Section 23 or in Section 24 hereof, or (ii) in connection with the purchase or other reacquisition of Common Shares before the Distribution Date.

 (d) The Company may, at its option, discharge all of its obligations with respect to any redemption of the
Rights by (i) issuing a press release announcing the manner of redemption of the Rights and (ii) mailing payment of the Redemption Price to the registered holders of the Rights at their last addresses as they appear on the registry books
of the Rights Agent or, before the Distribution Date, on the registry books of the transfer agent for the Common Shares, and upon such action, all outstanding Rights and Right Certificates shall be null and void without any further action by the
Company. 
 Section 24. Exchange. 

(a) The Board of Directors of the Company may, at its option, at any time after any Person becomes an Acquiring Person,
effect a mandatory exchange of newly-issued Common Shares for all of the then outstanding and exercisable Rights (which shall not include Rights that have become void pursuant to Section 11(a)(ii) hereof) at an exchange ratio of four Common
Shares 

  
 27 

 
per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred to as the
“Exchange Ratio”). Notwithstanding the foregoing, the Board of Directors shall not be empowered to effect such exchange at any time after any Person (other than an Exempt Person) becomes the Beneficial Owner of 50% or more of the
Common Shares then outstanding. For purposes of this Section 24, if the only reason a Right is not exercisable is that a registration statement has not yet been declared effective under the Act, but no registration statement would be required
under the Act for effectuation of a Section 24 exchange, the requirement that Rights be “outstanding and exercisable” shall be deemed replaced by a requirement that such Rights merely be outstanding and references in
Section 24(c) to the occurrence of the Exercisability Trigger shall be deemed replaced by references to the date any Person becomes an Acquiring Person. 
 (b) Immediately upon the action of the Board of Directors of the Company ordering the exchange of Rights pursuant to Section 24(a) hereof and without any further action and without any notice, the
right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of Common Shares equal to the number of such Rights held by such holder multiplied by the Exchange Ratio. The
Company shall promptly give public notice of any such exchange; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company promptly shall mail a notice of any such exchange
to all of the holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. Any
notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the Common Shares for Rights will be effected.

 (c) In lieu of issuing Common Shares in accordance with Section 24(a) hereof, the Company may, if a
majority of the Board of Directors then in office determines that such action is necessary or appropriate and not contrary to the interests of the holders of Rights, elect to (and, in the event that there are not sufficient treasury shares and
authorized but unissued Common Shares to permit any exchange of the Rights in accordance with Section 24(a) hereof, the Company shall) take all such action as may be necessary to authorize, issue or pay, in effecting the exchange of the Rights,
cash, property, Common Shares, other securities or any combination thereof having an aggregate value equal to the value of the Common Shares which otherwise would have been issuable pursuant to Section 24(a) hereof, which aggregate value shall
be determined by a nationally recognized investment banking firm selected by a majority of the Board of Directors then in office. For purposes of the preceding sentence, the value of the Common Shares shall be determined pursuant to
Section 11(d) hereof. Following the occurrence of the Exercisability Trigger, a majority of the Board of Directors then in office may suspend the exercisability of the Rights for a period of up to 40 days following the date on which the
Exercisability Trigger shall have occurred to the extent that such directors have not determined whether to exercise their rights of election under this Section 24(c). In the event of any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily suspended. 
 (d) The Company
shall not be required to issue fractions of Common Shares or to distribute certificates which evidence fractional Common Shares. In lieu of such fractional Common Shares, the Company shall pay to the registered holders of the Rights with regard to
which such fractional Common Shares would otherwise be issuable an amount in cash equal to the same fraction of the current market value of a whole Common Share. For the purposes of this Section 24(d), the

  
 28 

 
current market value of a whole Common Share shall be the Current Per Share Market Price of the Common Shares for the Trading Day immediately after the date of the first public announcement by
the Company that an exchange is to be effected pursuant to this Section 24. 
 Section 25. Notice of Certain Events.

 (a) In case the Company shall propose at any time after the earlier of the Shares Acquisition Date and the
Distribution Date (i) to pay any dividend payable in stock of any class to the holders of its Preferred Shares or to make any other distribution to the holders of its Preferred Shares (other than a regular quarterly cash dividend), (ii) to
offer to the holders of its Preferred Shares rights or warrants to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of
its Preferred Shares (other than a reclassification involving only the subdivision of outstanding Preferred Shares), (iv) to effect any consolidation or merger into or with, or to effect any sale or other transfer (or to permit one or more of
its Subsidiaries to effect any sale or other transfer), in one or more transactions, of 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole), to any other Person, (v) to effect the liquidation,
dissolution or winding up of the Company, or (vi) to declare or pay any dividend on the Common Shares payable in Common Shares or to effect a subdivision, combination or consolidation of the Common Shares (by reclassification or otherwise than
by payment of dividends in Common Shares), then, in each such case, the Company shall give to each registered holder of a Right, in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date for the
purpose of such stock dividend, or distribution of rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of participation therein
by the holders of the Common Shares and/or the Preferred Shares, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least 10 days before the record date for
determining holders of the Preferred Shares for purposes of such action, and in the case of any such other action, at least 10 days before the date of the taking of such proposed action or the date of participation therein by the holders of the
Common Shares and/or the Preferred Shares, whichever shall be the earlier. 
 (b) In case the Exercisability
Trigger shall occur, then the Company shall as soon as practicable thereafter give to each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of the occurrence of such event, which notice shall describe the
Exercisability Trigger and the consequences of the Exercisability Trigger to holders of Rights under Section 11(a)(ii) hereof. 
 Section 26. Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Right to or on the Company shall be sufficiently given or
made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows: 
 Harbor BioSciences, Inc. 
 9191 Towne Centre Dr., Suite 409

 San Diego, California 92122 

  
 29 

 Subject to the provisions of Section 21 hereof, any notice or demand authorized by this
Agreement to be given or made by the Company or by the holder of any Right to or on the Rights Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the
Company) as follows: 
 American Stock Transfer and Trust Company, LLC 

59 Maiden Lane, Plaza Level 
 New York, New York 10038 
 Notices or demands authorized by this Agreement to be
given or made by the Company or the Rights Agent to the holder of any Right shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of
the Company. 
 Section 27. Supplements and Amendments. Before the Distribution Date, the Company and the Rights
Agent shall, if the Company so directs, supplement or amend any provision of this Agreement without the approval of any holders of the Rights. From and after the Distribution Date, the Company and the Rights Agent shall, if the Company so directs,
from time to time supplement or amend any provision of this Agreement without the approval of any holders of Rights in order to (i) cure any ambiguity, (ii) correct or supplement any provision contained herein which may be defective or
inconsistent with any other provisions herein, or (iii) change any other provisions with respect to the Rights which the Company may deem necessary or desirable; provided, however, that no such supplement or amendment shall be made which would
adversely affect the interests of the holders of Rights (other than the interests of an Acquiring Person). Any supplement or amendment adopted by the Company during any period after any Person has become an Acquiring Person but before the
Distribution Date shall become null and void unless such supplement or amendment could have been adopted by the Company from and after the Distribution Date. Any such supplement or amendment shall be evidenced by a writing signed by the Company and
the Rights Agent. Upon delivery of a certificate from an appropriate officer of the Company which states that the proposed supplement or amendment is in compliance with the terms of this Section 27, the Rights Agent shall execute such
supplement or amendment unless the Rights Agent shall have determined in good faith that such supplement or amendment would adversely affect its interest under this Agreement. Before the Distribution Date, the interests of the holders of Rights
shall be deemed coincident with the interests of the holders of Common Shares. 
 Section 28. Determination and
Actions by the Company’s Board of Directors. The Board of Directors of the Company shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers specifically granted to the Board of
Directors of the Company, or the Company, or as may be necessary or advisable in the administration of this Agreement, including without limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii) make all
determinations deemed necessary or advisable for the administration of this Agreement (including a determination to redeem or not redeem the Rights or to amend the Agreement). All such actions, calculations, interpretations and determinations
(including, for purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board in good faith, shall (x) be final, conclusive and binding on the Rights Agent and the holders of the Rights, and
(y) not subject the Board to any liability to the holders of the Rights. 
 Section 29. Share Calculations.
For all purposes of this Agreement, any calculation of the number of Common Shares outstanding at any particular time, including for purposes of determining the particular percentage of such outstanding Common Shares or any other securities of which
any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement. 

  
 30 

 Section 30. Successors. All the covenants and provisions of this Agreement by
or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 
 Section 31. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any person or entity other than the Company, the Rights Agent and the registered holders of
the Rights (and, before the Distribution Date, the Common Shares) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the registered
holders of the Rights (and, before the Distribution Date, the Common Shares). All covenants, agreements and undertakings of the Company and the Rights Agent herein are understood to be for the express benefit of the registered holders of the Rights
(and, before the Distribution Date, the Common Shares). 
 Section 32. Severability. If any term, provision,
covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full
force and effect and shall in no way be affected, impaired or invalidated. 
 Section 33. Governing Law. This
Agreement and each Right issued hereunder shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be
made and performed entirely within such State. 
 Section 34. Counterparts. This Agreement may be executed in
counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 

Section 35. Descriptive Headings. Descriptive headings of the several Sections of this Agreement are inserted for
convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

  
 31 

 In Witness Whereof, the parties hereto have caused this Second Amended and Restated Rights
Agreement to be duly executed, all as of the day and year first above written. 
  

			
	Harbor BioSciences, Inc.
	
	/s/ James M. Frincke
	James M. Frincke
	President
	
	/s/ Robert W. Weber
	Robert W. Weber
	Secretary

  

			
	 American Stock Transfer
 and Trust Company, LLC

	
	/s/ Paula Caroppoli
	 Paula Caroppoli

	Senior Vice President
	
	/s/ Carlos Pinto
	 Carlos Pinto 

	 Senior Vice President 

 Exhibit A 

Amended and Restated 
 Certificate of Designation 
 of 

Series B Junior Participating Preferred Stock 
 of 
 Hollis-Eden Pharmaceuticals, Inc. 

(Pursuant to Section 151(g) of the 
 Delaware General Corporation Law) 
 Hollis-Eden Pharmaceuticals, Inc., a
corporation organized and existing under the Delaware General Corporation Law (hereinafter called the “Company”), hereby certifies: 
 FIRST: that the following resolution was duly adopted by the Board of Directors of the Company at a meeting duly called and held on October 13, 2009, to constitute an amendment and restatement
of the resolution to create (and which was set forth in a Certificate of Designation creating) a series of Preferred Stock designated as Series B Junior Participating Preferred Stock: 

“RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors of the Company in accordance with the
provisions of its Amended and Restated Certificate of Incorporation (as amended), the Board of Directors hereby creates a series of Preferred Stock, par value $.01 per share, of the Company and hereby states the designation and number of shares, and
fixes the relative designations and the powers, preferences and rights, and the qualifications, limitations and restrictions thereof (in addition to the provisions set forth in the Amended and Restated Certificate of Incorporation (as amended) of
the Company, which are applicable to the Preferred Stock of all classes and series), as follows: 
 SECTION 1. Designation
and Amount. Three hundred thousand (300,000) shares of Preferred Stock, $.01 par value, are designated “Series B Junior Participating Preferred Stock” with the designations and the powers, preferences and rights, and the
qualifications, limitations and restrictions specified herein (the “Junior Preferred Stock”). Such number of shares may be increased or decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the
number of shares of Junior Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any
outstanding securities issued by the Company convertible into Junior Preferred Stock. 
 SECTION 2. Dividends and
Distributions. 
 (A) Subject to the rights of the holders of any shares of any series of Preferred Stock (or
any similar stock) ranking prior and superior to the Junior Preferred Stock with respect to dividends, the holders of shares of Junior Preferred Stock, in preference to the holders of Common Stock, par value $.01 per share (the “Common
Stock”), of the Company, and of any other junior stock, shall be entitled to receive, when, as and if declared by the Board of Directors out of funds 

  
 A-1

 
legally available for the purpose, quarterly dividends payable in cash on the first day of April, July, October and January in each year (each such date being referred to herein as a
“Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Junior Preferred Stock, in an amount per share (rounded to the nearest cent)
equal to the greater of (a) $l.00 or (b) subject to the provision for adjustment hereinafter set forth, 100 times the aggregate per share amount of all cash dividends, and 100 times the aggregate per share amount (payable in kind) of all
non-cash dividends or other distributions, other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock since the immediately
preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Junior Preferred Stock. In the event the Company shall at any time declare or
pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of
Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Junior Preferred Stock were entitled immediately before such event under clause (b) of the preceding
sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that
were outstanding immediately before such event. 
 (B) The Company shall declare a dividend or distribution on
the Junior Preferred Stock as provided in paragraph (A) of this Section immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock); provided, that in the event no
dividend or distribution shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend of $1.00 per share on the Junior Preferred Stock
shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date. 
 (C) Dividends shall begin to
accrue and be cumulative on outstanding shares of Junior Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is before the record date for the first
Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the
determination of holders of shares of Junior Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such
Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Junior Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares
shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Junior Preferred Stock entitled to receive payment of a
dividend or distribution declared thereon, which record date shall be not more than 60 days before the date fixed for the payment thereof. 

  
 A-2

 SECTION 3. Voting Rights. The holders of shares of Junior Preferred Stock shall have
the following voting rights: 
 (A) Subject to the provision for adjustment hereinafter set forth, each share of
Junior Preferred Stock shall entitle the holder thereof to 100 votes on all matters submitted to a vote of the stockholders of the Company. In the event the Company shall at any time declare or pay any dividend on the Common Stock payable in shares
of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares
of Common Stock, then in each such case the number of votes per share to which holders of shares of Junior Preferred Stock were entitled immediately before such event shall be adjusted by multiplying such number by a fraction, the numerator of which
is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately before such event. 

(B) Except as otherwise provided herein, in any other Certificate of Designation creating a series of Preferred Stock or
any similar stock, or by law, the holders of shares of Junior Preferred Stock and the holders of shares of Common Stock and any other capital stock of the Company having general voting rights shall vote together as one class on all matters submitted
to a vote of stockholders of the Company. 
 (C) Except as set forth herein, or as otherwise provided by law,
holders of Junior Preferred Stock shall have no special voting rights and their consent shall not be required (except to the extent they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action.

 SECTION 4. Certain Restrictions. 

(A) Whenever quarterly dividends or other dividends or distributions payable on the Junior Preferred Stock as provided in
Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Junior Preferred Stock outstanding shall have been paid in full, the Company shall not: 

(I) declare or pay dividends, or make any other distributions, on any shares of stock ranking junior (either as to
dividends or upon liquidation, dissolution or winding up) to the Junior Preferred Stock; 
 (II) declare or pay
dividends, or make any other distributions, on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Junior Preferred Stock, except dividends paid ratably on the Junior Preferred
Stock and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; 

(III) redeem or purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends
or upon liquidation, dissolution or winding up) to the Junior Preferred Stock, provided that the Company may at any time redeem, purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the Company ranking
junior (either as to dividends or upon dissolution, liquidation or winding up) to the Junior Preferred Stock; or 

  
 A-3

 (IV) purchase or otherwise acquire for consideration any shares of Junior
Preferred Stock, or redeem or purchase or otherwise acquire any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Junior Preferred Stock, except in accordance with a
redemption/purchase offer/acquisition offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board of Directors, after consideration of the respective annual dividend
rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes. 

(B) The Company shall not permit any subsidiary of the Company to purchase or otherwise acquire for consideration any
shares of stock of the Company unless the Company could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 

SECTION 5. Reacquired Shares. Any shares of Junior Preferred Stock purchased or otherwise acquired by the Company in any manner
whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock
subject to the conditions and restrictions on issuance set forth herein, in the Amended and Restated Certificate of Incorporation, or in any other Certificate of Designation creating a series of Preferred Stock or any similar stock or as otherwise
required by law. 
 SECTION 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of
the Company, no distribution shall be made (A) to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Junior Preferred Stock unless, prior thereto, the holders of shares
of Junior Preferred Stock shall have received the greater of (1) $100 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment, or (2) an amount,
subject to the provision for adjustment hereinafter set forth, equal to 100 times the aggregate amount to be distributed per share to holders of shares of Common Stock, or (B) to the holders of shares of stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) with the Junior Preferred Stock, except distributions made ratably on the Junior Preferred Stock and all such parity stock in proportion to the total amounts to which the holders of all such
shares are entitled upon such liquidation, dissolution or winding up. In the event the Company shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the aggregate amount
to which holders of shares of Junior Preferred Stock were entitled immediately before such event under clause (A)(2) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares
of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately before such event. 

SECTION 7. Consolidation, Merger, etc. In case the Company shall enter into any consolidation, merger, combination or other
transaction in which generally the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case each share of Junior Preferred Stock shall at the same time be similarly
exchanged or changed into an amount per share, subject to the provision for adjustment hereinafter 

  
 A-4

 
set forth, equal to 100 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock
is changed or exchanged. In the event the Company shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock
(by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount set forth in the preceding sentence with respect to the exchange
or change of shares of Junior Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately before such event. 
 If the Company has outstanding, under
any stockholder rights plan or rights agreement containing “flip-over” provisions, any rights, then the Company shall have no authority to enter into any transaction of a kind which would implicate or trigger the “flip-over”
provisions of such stockholder rights plan or rights agreement, unless the other party to such transaction (and/or, to the extent such “flip-over” provisions would apply to a parent of such other party, such parent) has expressly
undertaken, for the benefit of the holders of such rights who would be entitled to exercise such “flip-over” rights, all obligations and duties which the “flip-over” provisions of such stockholder rights plan or rights agreement
would purport to impose on such a party to such a transaction (and/or, if applicable, on such a parent), as if such party (and/or parent) had been an original contractual party to such stockholder rights plan or rights agreement. 

SECTION 8. No Redemption. The shares of Junior Preferred Stock shall not be redeemable. 

SECTION 9. Rank. The Junior Preferred Stock shall rank, with respect to the payment of dividends and the distribution of assets,
junior to all series of the Company’s Preferred Stock. 
 SECTION 10. Amendment. The Amended and Restated
Certificate of Incorporation of the Company shall not be amended in any manner which would materially alter or change the powers, preferences or special rights of the Junior Preferred Stock so as to affect them adversely without the affirmative vote
of the holders of at least two-thirds of the outstanding shares of Junior Preferred Stock, voting together as a single class.” 

SECOND: that such amended and restated determination of the designation, preferences and the relative participating, optional or other rights, and
the qualifications, limitations or restrictions thereof, relating to the Series B Junior Participating Preferred Stock, was duly made by the Board of Directors of the Company pursuant to the provisions of the certificate of incorporation, and in
accordance with all the provisions of Section 151 of the Delaware General Corporation Law. 
 THIRD: that no shares of Series B
Junior Participating Preferred Stock have been issued. 

  
 A-5

 IN WITNESS WHEREOF, the Company has caused this Certificate to be duly executed on its
behalf by its undersigned President and attested to by its undersigned Secretary on October 19, 2009. 
  

	
	
	/s/ JAMES M. FRINCKE
	James M. Frincke, President
	
	/s/ ROBERT W. WEBER
	Robert W. Weber, Secretary

  
 A-6

 Exhibit B 

Amended Form of Right Certificate 
 Certificate No. R-              Rights 
 NOT EXERCISABLE AFTER NOVEMBER 14, 2019 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.0001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT. 
 Right Certificate 
 Harbor BioSciences, Inc. 
 This certifies that ___________________ or
registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as of November 15, 1999 (as amended to
date, the “Rights Agreement”), between Harbor BioSciences, Inc., a Delaware corporation (the “Company”), and American Stock Transfer and Trust Company, LLC (the “Rights Agent”), to purchase from the
Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and before 5:00 P.M., Pacific Time, on November 14, 2019 at the office of the Rights Agent designated for such purpose, or at the office of its
successor as Rights Agent, one one-hundredth of a fully paid non-assessable share of Series B Junior Participating Preferred Stock, par value $.01 per share (one one-hundredth of a “Preferred Share”), of the Company, at a purchase
price of $100 per one one-hundredth of a Preferred Share (i.e., $10,000 per Preferred Share) (the “Purchase Price”), upon presentation and surrender of this Right Certificate with the Form of Election to Purchase duly executed. The
number of Rights evidenced by this Right Certificate (and the number of one one-hundredths of a Preferred Share which may be purchased upon exercise hereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price
as of November 29, 1999, based on the Preferred Shares as constituted at such date. 
 From and after the time any Person
becomes an Acquiring Person (as such terms are defined in the Rights Agreement), if the Rights evidenced by this Right Certificate are beneficially owned by (i) an Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as
such terms are defined in the Rights Agreement), (ii) a transferee of any such Acquiring Person, Associate or Affiliate who becomes a transferee after the Acquiring Person becomes such, or (iii) under certain circumstances specified in the
Rights Agreement, a transferee of any such Acquiring Person, Associate or Affiliate who becomes a transferee before or concurrently with the Acquiring Person becoming such, such Rights shall become null and void without any further action and no
holder hereof shall have any right with respect to such Rights from and after the time any Person becomes an Acquiring Person. 

As provided in the Rights Agreement, the Purchase Price and the number of one one-hundredths of a Preferred Share which may be purchased
upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events. 

  
 B-1

 This Right Certificate is subject to all of the terms, provisions and conditions of the
Rights Agreement, as amended from time to time, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right Certificates. Copies of the Rights Agreement are on file at the principal executive offices of the Company and the
above-mentioned office of the Rights Agent. 
 This Right Certificate, with or without other Right Certificates, upon surrender
at the office of the Rights Agent designated for such purpose, may be exchanged for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of Preferred Shares
as the Rights evidenced by the Right Certificate or Right Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof
another Right Certificate or Right Certificates for the number of whole Rights not exercised. 
 Subject to the provisions of
the Rights Agreement, the Rights evidenced by this Certificate (i) may be redeemed by the Company at a redemption price of $.0001 per Right or (ii) may be exchanged in whole or in part for shares of the Company’s Common Stock, par
value $.01 per share, or, upon circumstances set forth in the Rights Agreement, cash, property or other securities of the Company, including fractions of a Preferred Share. 
 No fractional Preferred Shares will be issued upon the exercise of any Right or Rights evidenced hereby (other than fractions which are integral multiples of one one-hundredth of a Preferred Share, which
may, at the election of the Company, be evidenced by depositary receipts) but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 
 No holder of this Right Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company which may at
any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the
Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided in the Rights Agreement. 

This Right Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent.

 [reminder of page intentionally left blank] 

  
 B-2

 Witness the facsimile signature of the proper officers of the Company and its corporate
seal. Dated as of _________, 20__. 
  

									
	Attest: Harbor Biosciences, Inc.	 		 	
					
	By:	 	 	 		 	By:	 	 
	Title:	 	 	 		 	Title:	 	 

 Countersigned: 

American Stock Transfer and Trust Company, LLC as Rights Agent 
  

					
	By:	 	 
	Print Name:	 	 
	Title:	 	 

  
 B-3

 Form of Reverse Side of Right Certificate 

FORM OF ASSIGNMENT 
 (To
be executed by the registered holder if such holder desires to transfer any Rights represented by the Right Certificate.) 
 FOR VALUE RECEIVED
______________________________________ hereby sells, assigns and transfers unto 
       

 
 (Please print name and address of transferee)

 _________________________________________________________________ Rights represented by this Right Certificate, together with all right,
title and interest therein, and does hereby irrevocably constitute and appoint ________________________ Attorney, to transfer such Rights on the books of the within-named Company, with full power of substitution. 

Dated: ____________________ 
  

			
		 	 
	Signature

  
 B-4

 Form of Reverse Side of Right Certificate — continued 

Signature Guaranteed: 
 Signatures must be
guaranteed by an “eligible guarantor institution” as defined in Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended. 
 The undersigned hereby certifies that (1) the Rights evidenced by this Right Certificate are not being sold, assigned or transferred by or on behalf of a Person who is or was an Acquiring Person, an
Interested Stockholder or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement); and (2) after due inquiry and to the best of the knowledge of the undersigned, the undersigned did not acquire the Rights evidenced
by this Right Certificate from any Person who is or was an Acquiring Person, an Interested Stockholder, or an Affiliate or Associate thereof. 
  

			
		 	 
	Signature

  
 B-5

 FORM OF ELECTION TO PURCHASE 
 (To be executed if holder desires to exercise Rights represented by the Right Certificate.) 
 To
American Stock Transfer and Trust Company, LLC: 
 The undersigned hereby irrevocably elects to exercise _________________ Rights represented by
this Right Certificate to purchase the 
 [PLEASE CHECK THE APPLICABLE BOX] 
  ̈  Preferred Shares 
  ̈  Common Shares of the Company (pursuant to the Flip-In provision) 
  ̈  Common Shares of another issuer (pursuant to the Flip-Over provision) 
 issuable upon
the exercise of such Rights and requests that certificates for such securities be issued in the name of: 

_______________________________________________________________ 
 (Please print name and address) 
 _______________________________________________________________

 Please insert social security or other identifying number: ___________________ 
 If such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new Right Certificate for the balance remaining of such Rights shall be registered in the name of and delivered
to: 
 _______________________________________________________________ 
 (Please print name and address) 
 _______________________________________________________________

 Please insert social security or other identifying number: ___________________ 
 Dated: ____________________ 
  

			
		
		 	 
	Signature

  
 B-6

 Form of Reverse Side of Right Certificate — continued 

Signature Guaranteed: 
 Signatures must be
guaranteed by an “eligible guarantor institution” as defined in Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended. 
 The undersigned hereby certifies that (1) the Rights evidenced by this Right Certificate are not beneficially owned by nor are they being exercised on behalf of an Acquiring Person, an Interested
Stockholder or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement); and (2) after due inquiry and to the best of the knowledge of the undersigned, the undersigned did not acquire the Rights evidenced by this
Right Certificate from any Person who is or was an Acquiring Person, an Interested Stockholder, or an Affiliate or Associate thereof. 
  

			
		 	 
	Signature

 NOTICE 
 The
signature in the Form of Assignment or Form of Election to Purchase, as the case may be, must conform to the name as written upon the face of this Right Certificate in every particular, without alteration or enlargement or any change whatsoever.

 In the event the certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not
completed, the Company and the Rights Agent will deem the beneficial owner of the Rights evidenced by this Right Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and such Assignment or
Election to Purchase will not be honored. 

  
 B-7

 Exhibit C 

Harbor BioSciences, Inc. 
 Summary Of Rights To Purchase 
 Preferred Shares 

On November 15, 1999, the Board of Directors of Harbor BioSciences, Inc. (the “Company”) declared a dividend of one
preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $.01 per share (the “Common Shares”), of the Company. The dividend was effective as of November 29, 1999 (the
“Record Date”) with respect to the stockholders of record on that date. The Rights also attach to new Common Shares issued after the Record Date. Each Right entitles the registered holder to purchase from the Company one
one-hundredth of a share of Series B Junior Participating Preferred Stock, par value $.01 per share (the “Preferred Shares”), of the Company at a price of $100 per one one-hundredth of a Preferred Share (i.e., $10,000 per full
Preferred Share) (the “Purchase Price”), subject to adjustment. Each Preferred Share is designed to be the economic equivalent of 100 Common Shares. The description and terms of the Rights are set forth in a Rights Agreement dated
as of November 15, 1999, as amended to date (the “Rights Agreement”), between the Company and American Stock Transfer and Trust Company, LLC (the “Rights Agent”). 

The Rights Agreements allows the Company and the Rights Agent to make certain amendments of the Rights Agreement and of the Rights. The
Company amended the Rights Agreement on October 13, 2009, in part to extend the expiration date of the Rights. The Company amended and restated the Rights Agreement on July 29, 2011, in part to decrease the ownership threshold in the
definition of “Acquiring Person” to 4.9%. This Summary takes account of such amendment, and references in this Summary to “Rights Agreement” and “Rights” should be understood to mean the Rights Agreement and Rights as
so amended. 
 Detachment and Transfer of Rights 
 Initially, the Rights will be evidenced by the stock certificates representing Common Shares then outstanding, and no separate Right Certificates will be distributed. Until the earlier to occur of
(i) the 10th Business Day after a public announcement that a person, or group of affiliated or associated persons, has become an “Acquiring Person” (as such term is defined in the Rights Agreement) or after such earlier date that the
Company’s Board of Directors becomes aware of the existence of an Acquiring Person or (ii) 10 business days (or such later date as the Board may determine) following the commencement of, or announcement of an intention to commence, a
tender offer or exchange offer which would result in the beneficial ownership by an Acquiring Person of 4.9% or more of the outstanding Common Shares (the earlier of such dates being called the “Distribution Date”), the Rights will
be evidenced, with respect to any of the Common Share certificates outstanding, by such Common Share certificate. In general, an “Acquiring Person” is a person, the affiliates or associates of such person, or a group, which has acquired
beneficial ownership of 4.9% or more of the outstanding Common Shares. Notwithstanding the foregoing, a Distribution Date shall not be deemed to have occurred unless directors representing at least two-thirds of the members of the Company’s
Board of Directors then holding office affirmatively vote to approve such Distribution Date. 

  
 C-1

 The Rights Agreement provides that, until the Distribution Date (or earlier redemption or
expiration of the Rights), the Rights will be transferable with and only with the Common Shares. Until the Distribution Date (or earlier redemption or expiration of the Rights), new Common Share certificates issued after the Record Date upon
transfer or new issuance of Common Shares will contain a notation incorporating the Rights Agreement by reference. Until the Distribution Date (or earlier redemption or expiration of the Rights) the surrender or transfer of any certificates for
Common Shares outstanding as of the Record Date, even without such notation or a copy of this Summary of Rights being attached thereto, will also constitute the transfer of the Rights associated with the Common Shares represented by such
certificate. As soon as practicable following the Distribution Date, separate certificates evidencing the Rights (“Right Certificates”) will be mailed to holders of record of the Common Shares as of the close of business on the
Distribution Date and such separate Right Certificates alone will evidence the Rights. 
 Exercisability of Rights 

The Rights are not exercisable until the Distribution Date. The Rights will expire on November 14, 2019 (the “Final
Expiration Date”), unless the Final Expiration Date is extended or unless the Rights are earlier redeemed or exchanged by the Company, in each case as described below. Until a Right is exercised, the holder thereof, as such, will have no
rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends. 
 The
Purchase Price payable, and the number of Preferred Shares or other securities or property issuable or payable, upon exercise of the Rights are subject to adjustment from time to time to prevent dilution. No fractional Preferred Shares will be
issued (other than fractions which are integral multiples of one one-hundredth of a Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts) and in lieu thereof, an adjustment in cash will be made. 

Terms of Preferred Shares 

Preferred Shares purchasable upon exercise of the Rights will not be redeemable. Each Preferred Share will be entitled to a minimum
preferential quarterly dividend payment of $l per share or, if greater, an aggregate dividend of 100 times the dividend declared per Common Share. In the event of liquidation, the holders of the Preferred Shares will be entitled to a minimum
preferential liquidation payment of $100 per share or, if greater, an aggregate payment of 100 times the payment made per Common Share. Each Preferred Share will have 100 votes, voting together with the Common Shares. Finally, in the event of any
merger, consolidation or other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to receive 100 times the amount received per Common Share. These rights are protected by customary anti-dilution provisions.
Because of the nature of the Preferred Shares’ dividend, liquidation and voting rights, the value of the one one-hundredth interest in a Preferred Share purchasable upon exercise of each Right should approximate the value of one Common Share,
and each full Preferred Share should approximate the value of 100 Common Shares. The Preferred Shares would rank junior to any other series of the Company’s preferred stock. 
 Trigger of Flip-In and Flip-Over Rights 
 As an alternative to the right to
purchase Preferred Shares upon exercise of Rights, holders of Rights shall in certain circumstances be entitled to exercise their Rights, on favorable terms, for Common Shares (a “Flip-In” right) or common stock of an acquirer of the
Company (a “Flip-Over” right). 

  
 C-2

 In the event that any person or group of affiliated or associated persons becomes an
Acquiring Person, proper provision shall be made so that each holder of a Right, OTHER THAN Rights beneficially owned by the Acquiring Person or any affiliate or associate thereof (those persons’ Rights will be void), will thereafter have the
right to receive, upon the exercise thereof at the then current exercise price of the Right, that number of Common Shares having a market value of five times the exercise price of the Right. This right will commence on the date of public
announcement that a person has become an Acquiring Person (or the effective date of a registration statement relating to the rights, if later). 
 In the event that the Company is acquired in a merger or other business combination transaction or 50% or more of its consolidated assets or earning power are sold to an Acquiring Person, its affiliates
or associates or certain other persons in which such persons have an interest, proper provision will be made so that each such holder of a Right will thereafter have the right to receive, upon the exercise thereof at the then current exercise price
of the Right, that number of shares of common stock of the acquiring company which at the time of such transaction will have a market value of two times the exercise price of the Right. 
 Redemption and Exchange of Rights 
 At any time before the Company is
acquired, the Board of Directors of the Company may redeem the Rights in whole, but not in part, at a price of $.0001 per Right (the “Redemption Price”). In general, the redemption of the Rights may be made effective at such time on
such basis with such conditions as the Board of Directors in its sole discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to
receive the Redemption Price. 
 At any time after any Person becomes an Acquiring Person and before the acquisition by such
person or group of 50% or more of the outstanding Common Shares, the Board of Directors of the Company may effect a mandatory exchange of the Rights (other than Rights owned by such person or group — their Rights will have become void) at an
exchange ratio of four newly-issued Common Shares per Right, or, under circumstances set forth in the Rights Agreement, cash, property or other securities of the Company (with total value equal to four Common Shares) per Right. 

Amendment of Rights 
 The
terms of the Rights generally may be amended by the Board of Directors of the Company without the consent of the holders of the Rights, except that from and after such time as the separate Right Certificates are to be distributed no such amendment
may adversely affect the interests of the holders of the Rights (excluding the interest of any Acquiring Person). 
 Additional Information

 A copy of the amended Rights Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a
Current Report on Form 8-K. In addition, a copy of the amended Rights Agreement is available from the Company by writing to: Harbor BioSciences, Inc., 9191 Towne Centre Drive, Suite 409, San Diego, California 92122, Attn: Corporate Secretary. This
summary description of the Rights is not intended to be complete and is qualified in its entirety by reference to the amended Rights Agreement, which is hereby incorporated herein by reference. 

  
 C-3

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