Document:

ndsn-ex10p_161.htm

 

Exhibit 10-p

EXECUTION VERSION

STOCK PURCHASE AGREEMENT

by and among

VP ACQUISITION HOLDINGS, INC.,

THE STOCKHOLDERS OF VP ACQUISITION HOLDINGS, INC.,

THE OPTIONHOLDERS OF VP ACQUISITION HOLDINGS, INC.,

AMERICAN CAPITAL, LTD.,
as Securityholder Representative,

and 

NORDSON CORPORATION 

Dated as of July 15, 2011 

 

 

 

 

TABLE OF CONTENTS

 

	
 
	
Page

	
 
	
 

	
ARTICLE 1 DEFINITIONS
	
1

	
 
	
 

	
Section 1.01. Definitions
	
1

	
 
	
 

	
Section 1.02. Cross-References to Other Defined Terms
	
7

	
 
	
 

	
ARTICLE 2 PURCHASE AND SALE
	
9

	
 
	
 

	
Section 2.01. Estimated Purchase Price
	
9

	
 
	
 

	
Section 2.02. Purchase and Sale of the Shares; Payment of Options
	
10

	
 
	
 

	
Section 2.03. The Closing
	
10

	
 
	
 

	
Section 2.04. Post-Closing Adjustment
	
11

	
 
	
 

	
Section 2.05. Reserve Account
	
13

	
 
	
 

	
ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	
13

	
 
	
 

	
Section 3.01. Organization and Qualification
	
13

	
 
	
 

	
Section 3.02. Capitalization; Subsidiaries; Securities Owned
	
13

	
 
	
 

	
Section 3.03. Authority of the Company
	
14

	
 
	
 

	
Section 3.04. Compliance with Laws
	
15

	
 
	
 

	
Section 3.05. Advisory and Other Fees
	
15

	
 
	
 

	
Section 3.06. Taxes
	
15

	
 
	
 

	
Section 3.07. Officers and Directors; Books and Records
	
16

	
 
	
 

	
Section 3.08. Litigation
	
16

	
 
	
 

	
Section 3.09. Financial Statements
	
16

	
 
	
 

	
Section 3.10. Transactions with Affiliates
	
17

	
 
	
 

	
Section 3.11. Real Properties
	
17

	
 
	
 

	
Section 3.12. Absence of Material Adverse Effect
	
17

	
 
	
 

	
Section 3.13. Absence of Certain Changes
	
17

	
 
	
 

	
Section 3.14. Tangible Personal Property
	
17

	
 
	
 

	
Section 3.15. Intellectual Property
	
18

	
 
	
 

	
Section 3.16. Contracts
	
18

	
 
	
 

	
Section 3.17. Insurance
	
20

	
 
	
 

	
Section 3.18. Permits
	
20

	
 
	
 

	
Section 3.19. Employee Benefit Plans
	
20

	
 
	
 

	
Section 3.20. Employees; Labor Matters
	
21

	
 
	
 

	
Section 3.21. Environmental Matters
	
21

i

 

	
 
	
Page

	
 
	
 

	
Section 3.22. Employee Relations
	
22

	
 
	
 

	
Section 3.23. Accounts Receivable
	
22

	
 
	
 

	
Section 3.24. Bank Accounts
	
22

	
 
	
 

	
Section 3.25. Foreign Corrupt Practices Act
	
22

	
 
	
 

	
Section 3.26. No Other Representations and Warranties
	
23

	
 
	
 

	
ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE SECURITYHOLDERS
	
23

	
 
	
 

	
Section 4.01. Organizational Authorization
	
23

	
 
	
 

	
Section 4.02. Governmental Authorization
	
23

	
 
	
 

	
Section 4.03. Noncontravention
	
23

	
 
	
 

	
Section 4.04. Ownership of Securities
	
23

	
 
	
 

	
Section 4.05. Advisory and Other Fees
	
23

	
 
	
 

	
Section 4.06. No Action
	
24

	
 
	
 

	
Section 4.07. No Other Representations and Warranties
	
24

	
 
	
 

	
ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF THE BUYER
	
24

	
 
	
 

	
Section 5.01. Existence and Power
	
24

	
 
	
 

	
Section 5.02. Organizational Authorization
	
24

	
 
	
 

	
Section 5.03. Governmental Authorization
	
24

	
 
	
 

	
Section 5.04. Noncontravention
	
24

	
 
	
 

	
Section 5.05. Financing
	
25

	
 
	
 

	
Section 5.06. Purchase for Investment
	
25

	
 
	
 

	
Section 5.07. Actions and Proceedings
	
25

	
 
	
 

	
Section 5.08. Finder’s Fees
	
25

	
 
	
 

	
Section 5.09. Solvency
	
25

	
 
	
 

	
Section 5.10. Acknowledgment by the Buyer
	
25

	
 
	
 

	
Section 5.11. No Knowledge of Misrepresentations or Omissions; No Reliance
	
26

	
 
	
 

	
Section 5.12. No Other Representations and Warranties
	
26

	
 
	
 

	
ARTICLE 6 COVENANTS OF THE COMPANY AND THE SECURITYHOLDERS
	
27

	
 
	
 

	
Section 6.01. Conduct of the Company and the Subsidiaries
	
27

	
 
	
 

	
Section 6.02. Access
	
29

	
 
	
 

	
Section 6.03. Subsequent Actions
	
29

	
 
	
 

	
ARTICLE 7 COVENANTS OF THE BUYER
	
29

	
 
	
 

	
Section 7.01. Confidentiality
	
29

ii

 

	
 
	
Page

	
 
	
 

	
Section 7.02. Access
	
29

	
 
	
 

	
Section 7.03. Notification
	
30

	
 
	
 

	
Section 7.04. Director and Officer Liability, Indemnification and Insurance
	
30

	
 
	
 

	
Section 7.05. Regulatory Filings
	
31

	
 
	
 

	
Section 7.06. Contact with Employees, Customers and Suppliers
	
31

	
 
	
 

	
ARTICLE 8 ADDITIONAL COVENANTS OF THE PARTIES
	
31
	
 

	
 
	
 
	
 

	
Section 8.01. Reasonable Best Efforts; Further Assurances
	
31
	
 

	
 
	
 
	
 

	
Section 8.02. Further Cooperation
	
32
	
 

	
 
	
 
	
 

	
Section 8.03. Public Announcements
	
32
	
 

	
 
	
 
	
 

	
Section 8.04. Tax Matters
	
32
	
 

	
 
	
 
	
 

	
Section 8.05. Disclosure Generally
	
32
	
 

	
 
	
 
	
 

	
Section 8.06. Conflicts and Privilege
	
33
	
 

	
 
	
 
	
 

	
Section 8.07. Antitrust Filings
	
33
	
 

	
 
	
 
	
 

	
Section 8.08. WARN
	
34
	
 

	
 
	
 
	
 

	
ARTICLE 9 CONDITIONS TO CLOSING
	
34
	
 

	
 
	
 
	
 

	
Section 9.01. Conditions to the Buyer’s Obligations
	
34
	
 

	
 
	
 
	
 

	
Section 9.02. Conditions to the Company and the Securityholders’ Obligations
	
35
	
 

	
 
	
 
	
 

	
ARTICLE 10 TERMINATION
	
36
	
 

	
 
	
 
	
 

	
Section 10.01. Termination
	
36
	
 

	
 
	
 
	
 

	
Section 10.02. Effect of Termination
	
36
	
 

	
 
	
 
	
 

	
ARTICLE 11 INDEMNIFICATION/SECURITYHOLDER REPRESENTATIVE
	
37
	
 

	
 
	
 
	
 

	
Section 11.01. Survival Period
	
37
	
 

	
 
	
 
	
 

	
Section 11.02. Indemnification
	
37
	
 

	
 
	
 
	
 

	
Section 11.03. Limitation of Recourse
	
39
	
 

	
 
	
 
	
 

	
Section 11.04. Securityholder Representative
	
40
	
 

	
 
	
 
	
 

	
ARTICLE 12 MISCELLANEOUS
	
42
	
 

	
 
	
 
	
 

	
Section 12.01. Notices
	
42
	
 

	
 
	
 
	
 

	
Section 12.02. Amendments and Waivers
	
43
	
 

	
 
	
 
	
 

	
Section 12.03. Construction; Severability
	
43
	
 

	
 
	
 
	
 

	
Section 12.04. Expenses
	
43
	
 

	
 
	
 
	
 

	
Section 12.05. Successors and Assigns
	
44
	
 

	
 
	
 
	
 

	
Section 12.06. Governing Law
	
44
	
 

iii

 

	
 
	
Page

	
 
	
 
	
 

	
Section 12.07. Arbitration
	
44
	
 

	
 
	
 
	
 

	
Section 12.08. Forum
	
45
	
 

	
 
	
 
	
 

	
Section 12.09. Waiver of Jury Trial
	
45
	
 

	
 
	
 
	
 

	
Section 12.10. Specific Performance
	
45
	
 

	
 
	
 
	
 

	
Section 12.11. Prevailing Party
	
46
	
 

	
 
	
 
	
 

	
Section 12.12. Counterparts; Third Party Beneficiaries
	
46
	
 

	
 
	
 
	
 

	
Section 12.13. Entire Agreement
	
46
	
 

	
 
	
 
	
 

	
Section 12.14. Termination of Agreements
	
46
	
 

	
 
	
 
	
 

 

	
INDEX OF EXHIBITS

	
 
	
 

	
Exhibit A 
	
Initial Securityholder Allocations

	
 
	
 

	
Exhibit B 
	
Transaction Expenses

	
 
	
 

	
Exhibit C 
	
Securityholders Party to Joinder Agreements

	
 
	
 

	
Exhibit D 
	
Joinder Agreement

	
 
	
 

 

	
INDEX OF SCHEDULES

	
 
	
 
	
 

	
Schedule 1.01 
	
—
	
Persons with Knowledge

	
 
	
 
	
 

	
Schedule 2.01(f) 
	
—
	
Net Working Capital

	
 
	
 
	
 

	
Schedule 2.03(b)(v) 
	
—
	
Indebtedness to be Repaid

	
 
	
 
	
 

	
Schedule 9.01(c) 
	
—
	
Required Consents

	
 
	
 
	
 

	
Schedule 9.01(d)
	
—
	
Governmental Approvals

	
 
	
 
	
 

	
Disclosure Schedules

 

 

 

iv

 

STOCK PURCHASE AGREEMENT

          THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of July 15, 2011, by and among VP Acquisition Holdings, Inc., a Delaware corporation (the “Company”), the Persons identified as “Stockholders” of the Company listed on the signature pages hereto (each, a “Stockholder,” and collectively, the “Stockholders”), the Persons identified as “Optionholders” on the signature pages hereto (each, an “Optionholder,” and collectively, the “Optionholders”), and the Persons listed on Exhibit C hereto and which have, or by the Closing Date will have, joined in this Agreement pursuant to a Joinder Agreement (the “Joinder Agreements”) in the form attached hereto as Exhibit D (together with the Stockholders and the Optionholders sometimes referred to herein as the “Securityholders,” and each, a “Securityholder”), ACAS, in its capacity as the Securityholder Representative (the “Securityholder Representative”), and Nordson Corporation, an Ohio corporation (the “Buyer”). Unless otherwise provided, capitalized terms used herein are defined in Article 1 below. 

PRELIMINARY STATEMENTS

          A. The Stockholders collectively own all of the issued and outstanding capital stock of the Company, which as of the date hereof consists of 36,040 shares of Common Stock (the “Shares”). 

          B. The Optionholders own all of the Options, which as of the date hereof consists of Options to acquire up to 3,289 shares of Common Stock on the terms and conditions provided in the Stock Incentive Plan and the agreements evidencing such Options. 

          C. Upon the terms and subject to the conditions set forth herein, the Buyer desires to acquire from the Stockholders, and the Stockholders desire to sell to the Buyer, all of the issued and outstanding Shares as of the Closing. 

STATEMENT OF AGREEMENT

          NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

ARTICLE 1

DEFINITIONS 

     Section 1.01. Definitions. The following terms, as used herein, have the following meanings: 

          “ACAS” means American Capital, Ltd. 

          “ACEI” means American Capital Equity I, LLC. 

          “ACEII” means American Capital Equity II, LP. 

          “Affiliate” means (except as otherwise specifically defined herein), as to any Person, any other Person which, directly or indirectly, controls, or is controlled by, or is under common control with, such Person. As used in this definition, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of management or policies of a Person, whether through the ownership of securities or partnership or other ownership interests, by contract or otherwise. Notwithstanding the foregoing, no Person of which ACAS, ACEI or ACEII owns debt or equity interests, other than the Company and its Subsidiaries, shall be deemed an Affiliate of the Company or any Subsidiary for purposes of this Agreement. 

1

 

          “Antitrust Approval Fees” means all fees payable by the Company, any Subsidiary and the Securityholders to any Governmental Authority in connection with the Antitrust Approvals to the extent not paid by the Buyer pursuant to Section 8.07(a). 

          “Antitrust Approvals” means each notification of the transactions contemplated hereby filed with the appropriate Governmental Authority, and the approval of the transactions contemplated hereby by such Governmental Authority and/or the expiration of any applicable waiting period related thereto, in each case as required pursuant to such Antitrust Law. 

          “Antitrust Law” means any applicable antitrust and competition Law, including the HSR Act. 

          “Business Day” means any day excluding Saturday, Sunday and any day on which banking institutions located in the State of Colorado are authorized or required to close. 

          “Cap” means $12,500,000. 

          “Cash” means cash, cash equivalents and marketable securities. 

          “Cash Amount” means the bank balance of all Cash held by the Company or any Subsidiary as of the close of business on the Closing Date plus an amount equal to the aggregate exercise price the Optionholders would have paid if the Optionholders had exercised all Options immediately prior to the Closing, before giving effect to the transactions contemplated hereby, plus any deposits posted by the Company or any Subsidiary as reserves, escrows, security deposits, cash collateral or other similar amounts, as all are to be classified in accordance with GAAP. 

          “Code” means the Internal Revenue Code of 1986, as amended, and any reference to any particular Code section shall be interpreted to include any revision of or successor to that section regardless of how numbered or classified. 

          “Common Stock” means the Company’s common stock, par value $0.001 per share. 

          “Employee Benefit Plan” means each retirement, welfare, severance, incentive or bonus, deferred compensation, cafeteria or Section 125, profit sharing, vacation or paid-time-off, stock purchase, stock option or equity incentive plan, program, agreement or arrangement, and any other material employee benefit plan, program or arrangement that is maintained or contributed to by the Company or any ERISA Affiliate, other than (i) statutorily-mandated plans or programs and (ii) any agreement or arrangement for future benefits contained or described in this Agreement or in an agreement, document or instrument to be executed and delivered by the Company or any Subsidiary pursuant to or as contemplated in this Agreement. 

          “ERISA Affiliate” means any Subsidiary of the Company and any trade or business (whether or not incorporated) that is part of the same controlled group, or under common control with, or part of an affiliated service group that includes the Company or any Subsidiary within the meaning of Section 414(b), (c), (m), or (o) of the Code. 

          “Fully Diluted Number of Shares” means the sum of the total number of shares of Common Stock issued and outstanding immediately prior to the Closing held by the Stockholders, plus the total number of shares of Common Stock that the Optionholders could have purchased if the Optionholders had exercised their Options in full immediately prior to the Closing. 

2

 

          “GAAP” means United States generally accepted accounting principles, consistently applied in accordance with the Latest Balance Sheet. 

          “HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder. 

          “Indebtedness” means, with respect to any Person at any date, without duplication, all obligations of such Person: 

          (a) under capitalized leases; 

          (b) for borrowed money or in respect of loans or advances; 

          (c) for notes payable and drafts accepted representing extensions of credit whether or not representing obligations for borrowed money; 

          (d) for the face amount of any letter of credit issued as to which that Person is otherwise liable for reimbursement of drawings; 

          (e) for the direct or indirect guarantee, endorsement, co-making, discounting with recourse of sale with recourse by such Person of the obligation of another Person; 

          (f) for all obligations of such Person in respect of any exchange traded or over the counter derivative transaction, including, without limitation, any interest rate agreement and currency agreement, whether entered into for hedging or speculative purposes; 

          (g) for all unpaid or deferred income Tax liabilities; 

          (h) with regard to the Company, the amount of any unpaid management fees payable to ACAS or its Affiliates; and 

          (i) for all accrued interest, prepayment premiums or penalties and fees on the foregoing which would be payable if such obligations were paid in full as of such date. 

          For the avoidance of doubt, Indebtedness shall not include (i) any guarantees, letters of credit, performance bonds, bid bonds or other sureties of any kind or nature issued by or on behalf of the Company or any Subsidiary in connection with any customer contracts, proposals or otherwise, (ii) any trade payables accumulated in the ordinary course of business of the Company or any Subsidiary, or (iii) payables or loans of any kind or nature between the Company and its Subsidiaries or between Subsidiaries. 

          “Indebtedness Amount” means the amount required to repay all outstanding Indebtedness of the Company and any Subsidiary as of the close of business on the date immediately preceding the Closing Date. The foregoing shall be determined on a consolidated basis for the Company and its Subsidiaries and in accordance with GAAP (except as otherwise provided in the definition of Indebtedness), consistent with the preparation of the Latest Balance Sheet. 

          “Knowledge” when used in the phrase “to the Knowledge of the Company” or similar phrases means, and shall be limited to, the actual knowledge of the individuals listed on Schedule 1.01 hereto. 

          “Lazard” means Lazard Middle Market LLC. 

3

 

          “Material Adverse Effect” means a material adverse effect which has occurred to the financial condition or results of operations of the Company and the Subsidiaries on a consolidated basis; provided, that for purposes of this Agreement, a Material Adverse Effect shall not include the effect of (a) changes to the industry or markets in which the business of the Company or any Subsidiary operates that are not unique to such business, (b) the announcement or disclosure of the transactions contemplated herein, (c) general economic, regulatory or political conditions or changes, (d) changes in or the condition of financial, banking or securities markets (including any disruption thereof and any decline in the price of any security or any market index), (e) military action or any act of terrorism, (f) changes in Law or GAAP after the date hereof, (g) compliance with the terms of this Agreement or any request of the Buyer, (h) actions taken or to be taken in connection with the sale of the Shares, (i) a flood, hurricane, earthquake or other natural disaster, or (j) the failure of the Company or any Subsidiary to meet or achieve the results set forth in any internal projection, or (k) any matter set forth in Schedule 3.06, Schedule 3.08, Schedule 3.12, items 9, 10 or 11 of Schedule 3.19, or Schedule 3.21. The Buyer acknowledges that there could be a disruption to the Company or any Subsidiary’s business as a result of the execution of this Agreement, the announcement by the Buyer of its intention to purchase the Company or the announcement of the Stockholders of their intention to sell the Company, and the consummation of the transactions contemplated hereby, and the Buyer agrees that such disruptions do not and shall not constitute a Material Adverse Effect. 

          “Net Working Capital” means, subject to the exceptions and qualifications, if any, set forth on Schedule 2.01(f) hereto, the excess of (a) the Company’s current assets (excluding Cash, Tax assets and the Payable Amount), over (b) the Company’s current liabilities (excluding Tax liabilities and Indebtedness).

          “Net Working Capital Amount” means the Net Working Capital of the Company as of the close of business on the date immediately preceding the Closing Date. 

          “Options” shall mean all options to purchase Common Stock of the Company validly issued under the Stock Incentive Plan which are vested and exercisable (or will become vested and exercisable as a result of the transactions contemplated hereby) and which are outstanding immediately prior to the Closing. 

          “Payables Amount” means the aggregate amount of all accounts payable owed by the Buyer or any of its Affiliates to the Company or any of its Subsidiaries as of the Closing Date. 

          “Permitted Liens” means any (i) Liens in respect of Taxes and other government charges and assessments the validity of which is being contested in good faith by appropriate proceedings or Liens in respect of Taxes and other government charges and assessments not yet due and payable or which can be paid currently with no penalty; (ii) landlords’, lessors’, warehousemens’, employees’, materialmens’, mechanics’, carriers’, workmen’s, repairmen’s, statutorily imposed or other like Liens arising or incurred in the ordinary course of business for amounts not yet due and payable; (iii) Liens arising under original purchase price conditional sales contracts and equipment leases with third parties that are contracts entered into in connection with the Company or any Subsidiary; (iv) limitations on the rights of the Company or any Subsidiary under any Contract or Real Property Lease that are expressly set forth in such contract or lease; (v) survey exceptions, imperfections of title, Liens or other title matters affecting any tangible asset owned by the Company or any Subsidiary that would not, individually or in the aggregate, impair the occupancy or current use of the tangible asset they encumber; (vi) Liens and other similar restrictions of record identified in any title reports obtained by or made available to Buyer; (vii) with respect to the Leased Real Property, zoning, building codes and other land use Laws regulating the use or occupancy of such Leased Real Property or the activities conducted thereon that are imposed by any Governmental Authority having jurisdiction over such Leased Real Property and do not materially interfere with the present use of the Leased Real Property; (viii) any and all service contracts and agreements affecting any tangible asset owned by the Company or any Subsidiary; (ix) Liens securing Indebtedness to be repaid and released in connection with the Closing; (x) with respect to Shares or Options, restrictions on transfer under applicable 

4

 

securities Laws, the Stock Incentive Plan, or the Stockholders’ Agreement; (xi) Liens that secure obligations reflected as liabilities in the Financial Statements (or the existence of which is referred to in the notes accompanying the Audited Financial Statements); (xii) deposits or pledges to secure the payment of workers’ compensation, unemployment insurance, social security benefits or obligations arising under similar laws, or to secure the performance of public or statutory obligations, surety or appeal bonds, and other obligations of a like nature; (xiii) Liens which are being contested in good faith solely to the extent of any reserve included in the calculation of Net Working Capital hereunder; and (xiv) Liens which, individually or in the aggregate, do not materially detract from the value, or materially interfere with the present use, of the Company’s tangible personal property. 

          “Person” means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a government or political subdivision or any agency or instrumentality thereof.

          “Reference Date” means October 14, 2005. 

          “Securityholder Allocation Percentage” means (A) with respect to each Stockholder, the quotient determined by dividing (i) the number of Shares held by such Stockholder immediately prior to the Closing by (ii) the Fully Diluted Number of Shares, and (B) with respect to each Optionholder, the quotient determined by dividing (i) the number of shares of Common Stock such Optionholder could have purchased if such Optionholder had exercised such Optionholder’s Options in full immediately prior to the Closing by (ii) the Fully Diluted Number of Shares. The initial Securityholder Allocation Percentage for each Securityholder is set forth on Exhibit Ahereto, which exhibit may be updated and delivered to the Buyer in connection with the deliveries to be made pursuant to Section 2.01. Notwithstanding the foregoing, the Securityholder Representative shall have the right and authority to equitably adjust the Securityholder Allocation Percentages of the Securityholders with respect to the amounts to be released to the Securityholders from the Reserve Account in connection with the payment of Losses resulting from breaches of a particular Securityholder’s representations, warranties, covenants or agreements hereunder. 

          “Stock Incentive Plan” shall mean the Company’s Stock Incentive Plan dated December 31, 2008. 

          “Stockholders’ Agreement” means that certain Stockholders’ Agreement dated as of October 14, 2005, by and among the Company and the Stockholders party thereto, as amended. 

          “Subsidiary” means any entity, the securities or other ownership interests of which are directly or indirectly owned by the Company. 

          “Target Working Capital Amount” means $3,747,145.33. 

          “Tax” means any federal, state, local or foreign income, gross receipts, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property, ad valorem/personal property, stamp, excise, occupation, sales, use, transfer, value added, alternative minimum, estimated or other tax, assessment, duty, fee, levy or other governmental charge, including any interest, penalty or addition thereto. 

          “Tax Returns” means any return, report, information return or other document (including schedules or any related or supporting information) filed or required to be filed with any Governmental Authority or other authority in connection with the determination, assessment or collection of any Tax or the administration of any Laws relating to any Tax. 

5

 

          “Transaction Expenses” means the fees, costs or expenses incurred by any Securityholder, the Company or any Subsidiary in connection with the sale of the Shares or the cancellation of the Options and set forth on Exhibit B hereto (as the same may be updated on or prior to the Closing Date), including all fees and expenses of Lazard but excluding Antitrust Approval Fees. 

          “Transaction Tax Benefit Amount” means the amount obtained by multiplying (A) the sum of (i) all of the Optionholder Closing Payment Amounts for all Optionholders, (ii) payments under deferred compensation arrangements and (iii) any other deductible Transaction Expenses by (B) 39.6%. 

          “Treasury Regulations” means the regulations promulgated under the Code. Any reference in this Agreement to Treasury Regulations are intended to refer to such regulations and to such regulations as they may be amended and to any corresponding provision or provisions of succeeding Law. 

6

 

     Section 1.02. Cross-References to Other Defined Terms. Each term listed below is defined in the Section of this Agreement listed opposite such term: 

 

	
Term 
	
 
	
Section 

	
Agreement 

 
	
 
	
Preface

	
AP 

 
	
 
	
Section 8.06

	
Approvals 

 
	
 
	
Section 3.18

	
Assignee 

 
	
 
	
Section 12.05

	
Audited Financial Statements 

 
	
 
	
Section 3.09(a)(i)

	
Buyer 

 
	
 
	
Preface

	
Buyer’s Representatives 

 
	
 
	
Section 7.01

	
Closing 

 
	
 
	
Section 2.03(a)

	
Closing Date 

 
	
 
	
Section 2.03(a)

	
Collateral Source 

 
	
 
	
Section 11.02(e)

	
Company 

 
	
 
	
Preface

	
Confidentiality Agreement 

 
	
 
	
Section 7.01

	
Contracts 

 
	
 
	
Section 3.16

	
Draft Computation 

 
	
 
	
Section 2.04(a)

	
Environmental Requirement(s) 

 
	
 
	
Section 3.21

	
ERISA 

 
	
 
	
Section 3.19(b)

	
Estimated Purchase Price 

 
	
 
	
Section 2.01

	
Financial Statements 

 
	
 
	
Section 3.09(a)(ii)

	
Firm 

 
	
 
	
Section 2.04(a)

	
Fundamental Representations 

 
	
 
	
Section 11.01

	
Governmental Authority 

 
	
 
	
Section 3.04

	
Indemnified Representative 

 
	
 
	
Section 7.04

	
Indemnitee 

 
	
 
	
Section 11.02(d)

7

 

	
Term 
	
 
	
Section 

	
Indemnitors 

 
	
 
	
Section 11.02(d)

	
Initial Reserve Amount 

 
	
 
	
Section 2.05

	
Joinder Agreements 

 
	
 
	
Preface

	
Judicial Action 

 
	
 
	
Section 12.08

	
Latest Balance Sheet 

 
	
 
	
Section 3.09(a)(ii)

	
Laws 

 
	
 
	
Section 3.04

	
Leased Real Property; Leased Real Properties 

 
	
 
	
Section 3.11(b)

	
Liens 

 
	
 
	
Section 3.14

	
Loss; Losses 

 
	
 
	
Section 11.02

	
Objection Notice 

 
	
 
	
Section 2.04(a)

	
Optionholder; Optionholders 

 
	
 
	
Preface

	
Optionholder Closing Payment Amount 

 
	
 
	
Section 2.02(b)

	
Panel 

 
	
 
	
Section 12.07(b)

	
PB 

 
	
 
	
Section 2.03(a)

	
Purchase Price 

 
	
 
	
Section 2.01

	
Real Property Lease; Real Property Leases 

 
	
 
	
Section 3.11(a)

	
Reserve Account 

 
	
 
	
Section 2.05

	
Schedule; Schedules 

 
	
 
	
Article 3 Preamble

	
Securityholder; Securityholders 

 
	
 
	
Preface

	
Securityholder Representative 

 
	
 
	
Section 11.04(a)

	
Securityholder Working Capital Payment 

 
	
 
	
Section 2.04(b)(ii)

	
Shares 

 
	
 
	
Preliminary Statement A

	
Stockholder; Stockholders 

 
	
 
	
Preface

	
Stockholder Closing Payment Amount 

 
	
 
	
Section 2.02(a)

	
Survival Period 

 
	
 
	
Section 11.01

8

 

	
Term 
	
 
	
Section 

	
Tax and ERISA Representations 

 
	
 
	
Section 11.01

	
Tax Benefit 

 
	
 
	
Section 11.02(e)

	
Terminating Agreements 

 
	
 
	
Section 12.14

	
Third Party Claim 

 
	
 
	
Section 11.02(d)

	
Unaudited Financial Statements 

 
	
 
	
Section 3.09(a)(ii)

	
Updated Schedules 

 
	
 
	
Section 6.03

ARTICLE 2 
PURCHASE AND SALE 

     Section 2.01. Estimated Purchase Price. At least two (2) Business Days prior to the Closing Date, the Company shall deliver to the Buyer the Company’s good faith estimate, on a reasonable basis using the Company’s then available financial information, of the Purchase Price (such estimate is referred to as the “Estimated Purchase Price”) and the initial Securityholder Allocation Percentage for each Securityholder. The Estimated Purchase Price, and each component thereof, shall be determined on a consolidated basis using the same accounting methods, policies, principles, practices and procedures, with consistent classifications, judgments and estimation methodology, as were used in preparation of the Latest Balance Sheet or, to the extent applicable, in accordance with any changes to such accounting methods, policies, principles, practices and procedures which are documented in the Company’s books and records prior to the Closing. The amount of the Estimated Purchase Price payable to each Securityholder is set forth on Exhibit A hereto, which exhibit may be updated and delivered to the Buyer in connection with the deliveries to be made pursuant to this Section 2.01. For purposes of this Agreement, “Purchase Price” means an amount equal to: 

          (a) $250,000,000, 

          (b) plus the Cash Amount, 

          (c) plus the Payables Amount, 

          (d) minus the Indebtedness Amount, 

          (e) plus the Transaction Tax Benefit Amount, 

          (f) (i) plus the excess of the Net Working Capital Amount over the Target Working Capital Amount, if any, or (ii) minus the excess of the Target Working Capital Amount over the Net Working Capital Amount, 

          (g) minus the amount of the Transaction Expenses, 

          (h) plus the amount of the Antitrust Approval Fees. 

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     Section 2.02. Purchase and Sale of the Shares; Payment of Options. 

          (a) Purchase and Sale of Shares. As of the Closing, upon the terms and subject to the conditions set forth in this Agreement, each Stockholder shall sell, assign, transfer and convey to the Buyer, and the Buyer shall purchase and acquire from each such Stockholder, all of the Shares held by such Stockholder. Subject to Section 2.04, the purchase price to be paid by the Buyer to each Stockholder for the Shares held by such Stockholder shall consist of a payment at the Closing, by wire transfer of immediately available funds to the account of such Stockholder set forth on Exhibit A hereto (as the same may be updated prior to Closing), of an amount of cash equal to the result of (A) the Estimated Purchase Price multiplied by such Stockholder’s Securityholder Allocation Percentage, minus (C) the Initial Reserve Amount multiplied by such Stockholder’s Securityholder Allocation Percentage (with respect to a Stockholder, such Stockholder’s “Stockholder Closing Payment Amount”). 

          (b) Cash Out of the Options. As of the Closing and simultaneously with the payment to the Stockholders of the Stockholder Closing Payment Amounts, upon the terms and subject to the conditions set forth in this Agreement (including Section 2.04), the Buyer shall pay, or irrevocably cause the Company to pay (by providing funds to the Company or otherwise), to each Optionholder, in cancellation of such Optionholder’s Options, an amount in cash equal to the excess of (i) the result of (A) the Estimated Purchase Price multiplied by such Optionholder’s Securityholder Allocation Percentage, minus (B) the Initial Reserve Amount multiplied by such Optionholder’s Securityholder Allocation Percentage, over (ii) the aggregate exercise price such Optionholder would have paid if such Optionholder had exercised all such Options immediately prior to the Closing (with respect to an Optionholder, such Optionholder’s “Optionholder Closing Payment Amount”), less all applicable withholding Taxes. Each Optionholder agrees that he or she will not exercise his or her Option at or prior to the Closing, and that upon the payment by the Company or the Buyer to such Optionholder of the Optionholder Closing Payment Amount, less all applicable withholding Taxes, the Options held by such Optionholder will be cancelled and of no further force and effect. 

     Section 2.03. The Closing.

          (a) The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Patton Boggs LLP (“PB”) in Dallas, Texas, at 10:00 a.m. on the third (3rd) Business Day following full satisfaction or due waiver of all of the closing conditions set forth in Article 9 hereof (other than those to be satisfied at the Closing) or on such other date as is mutually agreeable to the Buyer and Securityholder Representative. The date of the Closing is referred to herein as the “Closing Date.”

          (b) Upon the terms and subject to the conditions set forth in this Agreement, the parties hereto shall consummate the following transactions as of the Closing: 

          (i) each Stockholder shall deliver to the Buyer all of the stock certificates representing the Shares held by such Stockholder duly endorsed for transfer or accompanied by duly executed stock powers (or other form of assignment or transfer) or a duly executed lost stock affidavit in a form reasonably acceptable to the Buyer and the Company; 

          (ii) the Buyer shall deliver to each Stockholder, by wire transfer of immediately available funds to the account designated by such Stockholder, cash in an amount equal to such Stockholder’s Stockholder Closing Payment Amount; 

          (iii) the Buyer shall pay to each such Optionholder, by wire transfer of immediately available funds to the account designated by such Optionholder, an amount equal to such Optionholder’s Optionholder Closing Payment Amount, less all applicable withholding Taxes; 

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          (iv) the Buyer shall deliver to the Securityholder Representative, for the benefit of the Securityholders in accordance with their respective Securityholder Allocation Percentages, by wire transfer of immediately available funds to the Reserve Account, cash in an amount equal to the Initial Reserve Amount; 

          (v) the Buyer shall pay on behalf of the Company and the Subsidiaries, all Indebtedness of the Company and the Subsidiaries set forth on Schedule 2.03(b)(v) hereto in accordance with the payoff letters and other payment instructions provided by the Company or the Securityholder Representative; 

          (vi) the Buyer shall pay on behalf of the Company and the Securityholders, the Transaction Expenses set forth on Exhibit B hereto; and 

          (vii) the Buyer, the Company and the Securityholders shall make such other deliveries as are required by and in accordance with Article 9 hereof. 

     Section 2.04. Post-Closing Adjustment. 

          (a) Post-Closing Determination. Within forty-five (45) days after the Closing Date, the Buyer and its auditors shall prepare and deliver to the Securityholder Representative (i) the Buyer’s determinations of the Cash Amount, the Indebtedness Amount, and the Net Working Capital Amount, and (ii) the Buyer’s calculation of the Purchase Price (collectively, the “Draft Computation”). The Draft Computation shall be prepared and the Cash Amount, the Indebtedness Amount, and the Net Working Capital Amount shall be determined on a consolidated basis using the same accounting methods, policies, principles, practices and procedures, with consistent classifications, judgments and estimation methodology, as were used in preparation of the Latest Balance Sheet or, to the extent applicable, in accordance with any changes to such accounting methods, policies, principles, practices and procedures which are documented in the Company’s books and records prior to the Closing, and shall not include any changes in assets or liabilities as a result of purchase or other non-cash accounting adjustments or other changes arising from or resulting as a consequence of the transactions contemplated hereby. The parties agree that the purpose of preparing the Draft Computation and determining the Cash Amount, the Indebtedness Amount, and the Net Working Capital Amount and the related purchase price adjustment contemplated by this Section 2.04 is to measure the amount of Cash and Indebtedness and changes in Net Working Capital, and such processes are not intended to permit the introduction of different judgments, accounting methods, policies, principles, practices, procedures, classifications or estimation methodologies for the purpose of preparing the Draft Computation or determining Cash, Indebtedness or Net Working Capital. The Company and its auditors will make available to the Buyer and its auditors, employees and advisors all records and work papers used in preparing the Estimated Purchase Price. The Buyer and its auditors will make available to the Securityholder Representative and its auditors, employees and advisors all records and work papers used in preparing the Draft Computation and will prepare and deliver to the Securityholder Representative a detailed analysis of the changes behind any material variance(s) between the Buyer’s determination of the Cash Amount, the Indebtedness Amount and the Net Working Capital Amount, and the corresponding estimates of such amounts as determined by the Company pursuant to Section 2.01 hereof. If the Securityholder Representative disagrees with any aspect of the Draft Computation, the Securityholder Representative may, within forty-five (45) days after receipt of the Draft Computation, deliver a notice (an “Objection Notice”) to the Buyer setting forth the Securityholder Representative’s determination of the Cash Amount, the Indebtedness Amount, and/or the Net Working Capital Amount and the Securityholder Representative’s calculation of the Purchase Price. If the Securityholder Representative does not deliver an Objection Notice to the Buyer within forty-five (45) days after receipt of the Draft Computation, then the parties hereto will be deemed to have agreed to the Draft Computation and the components of such Draft Computation shall be deemed to be finally determined as set forth therein. The Buyer and the Securityholder Representative shall use reasonable efforts to resolve any disagreements as to the Draft 

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Computation and the Objection Notice, but if they do not obtain a final resolution within forty-five (45) days after the Buyer has received the Objection Notice, the Buyer and the Securityholder Representative shall jointly retain Grant Thornton LLP or such other accounting firm acceptable to the Buyer and the Securityholder Representative (the “Firm”) to resolve any remaining disagreements. The Buyer and the Securityholder Representative shall direct the Firm to render a determination within thirty (30) days after its retention and the Buyer, the Securityholder Representative and their respective agents shall cooperate with the Firm during its engagement. The Firm will act as an expert and not as an arbitrator in conducting its analysis and may consider only those items and amounts in the Draft Computation or Objection Notice which the Buyer and the Securityholder Representative are unable to resolve. In resolving any disputed item, the Firm may not assign a value to any item greater than the greatest value for such item claimed by either party or less than the smallest value for such item claimed by either party. The Firm’s determination shall be based solely on written submissions by the Buyer and the Securityholder Representative (i.e., not on independent review) and on the definitions included herein. The determination of the Firm shall be conclusive and binding upon the Buyer, the Securityholder Representative and the Securityholders. Until the Firm makes its determination, the costs and expenses of the Firm shall be borne equally by the Buyer, on the one hand, and the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages), on the other hand; provided, that when the Firm makes its determination, any costs and expenses (including costs and expenses previously advanced) shall be allocated between the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages), on the one hand, and the Buyer, on the other hand, based upon the percentage that the portion of the contested amount not awarded to each party bears to the amount actually contested by such party. For example, if the Securityholder Representative claims the Net Working Capital Amount is $1,000 greater than the amount determined by the Buyer, and the Buyer contests only $500 of the amount claimed by the Securityholder Representative, and if the Firm ultimately resolves the dispute by awarding the Securityholders $300 of the $500 contested, then the costs and expenses of the Firm will be allocated 60% (i.e., 300 ÷ 500) to the Buyer and 40% (i.e., 200 ÷ 500) to the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages). 

          (b) Post-Closing Adjustment. 

          (i) Payment by the Buyer. If the Purchase Price as finally determined pursuant to Section 2.04(a) exceeds the Estimated Purchase Price by more than $250,000, then within five (5) Business Days after such final determination, the Buyer shall pay to the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages), by wire transfer or delivery of other immediately available funds, an amount equal to the amount by which such excess exceeds $250,000; provided, however, that in lieu of any distribution of such amount to the Securityholders, the Securityholder Representative, in its sole discretion, may retain all or any portion of such amounts as part of the Reserve Account. 

          (ii) Payment by the Securityholders. If the Purchase Price as finally determined pursuant to Section 2.04(a) is less than the Estimated Purchase Price, then within five (5) Business Days after the determination thereof, the Securityholder Representative shall pay to the Buyer from the Reserve Account an amount equal to the amount by which such excess exceeds $250,000 (the amount of such excess, the “Securityholder Working Capital Payment”) and, in the event that the Reserve Account is insufficient to pay the full amount of the Securityholder Working Capital Payment, then each Securityholder shall promptly pay to Buyer by wire transfer or delivery of other immediately available funds, an amount equal to (i) the unpaid portion of the Securityholder Working Capital Payment multiplied by (ii) such Securityholder’s Securityholder Allocation Percentage. 

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     Section 2.05. Reserve Account. At Closing, the Securityholder Representative shall retain from the Estimated Purchase Price the sum of One Million Dollars ($1,000,000) (the “Initial Reserve Amount”) for deposit into a bank account controlled by the Securityholder Representative (together with any amount retained by the Securityholder Representative pursuant to Section 2.04(b)(i), the “Reserve Account”). All amounts on deposit in the Reserve Account, including any earnings thereon, shall be available to the Securityholder Representative to cover costs and expenses incurred by the Securityholder Representative in the performance of its obligations as Securityholder Representative, including, without limitation, costs and expenses, if any, incurred by the Securityholder Representative (i) in resolving any adjustments pursuant to Section 2.04, (ii) in defending any indemnification claims brought under Article 11hereof, and (iii) in paying any amounts (including fees, costs and expenses) otherwise payable by the Securityholders to the Buyer or the Securityholder Representative pursuant to the terms hereof. Amounts in the Reserve Account may also be applied by the Securityholder Representative as permitted in accordance with Section 11.04. 

ARTICLE 3 
REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

          The Company represents and warrants to the Buyer that each statement contained in this Article 3 is correct and complete, except as set forth in the Schedules accompanying this Agreement or in any Updated Schedule delivered pursuant to Section 6.03 (each a “Schedule” and, collectively, the “Schedules”). Capitalized terms used in the Schedules and not otherwise defined therein shall have the meanings ascribed to such terms in this Agreement. 

     Section 3.01. Organization and Qualification. 

          (a) The Company and each of the Subsidiaries are corporations duly organized, validly existing and, where applicable, in good standing under the Laws of their respective jurisdictions of organization. The Company and each of its Subsidiaries have full corporate power and authority to own or lease their respective properties and to conduct their businesses in the manner and in the places where such properties are owned or leased and where such businesses are currently conducted, except where the failure to have such power and authority would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The copies of the Company’s and the Subsidiaries’ respective certificates or articles of incorporation and bylaws, as each have been amended to date and heretofore made available to the Buyer and/or its agents, are complete and correct, and no amendments thereto are pending. 

          (b) The Company and each of the Subsidiaries are duly licensed and qualified to do business and in good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business makes such licensing or qualification to do business necessary, except where the failure to be so licensed or qualified would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

     Section 3.02. Capitalization; Subsidiaries; Securities Owned. 

          (a) The authorized capital stock of the Company consists of 1,000,000 shares of Common Stock, 36,040 shares of which are issued and outstanding as of the date hereof. Schedule 3.02hereto sets forth (i) all of the holders of the Company’s issued and outstanding Shares and Options, and (ii) the number of Shares and Options held by each such holder. All of the Shares have been duly authorized, are validly issued, fully paid and nonassessable, and are neither subject to, nor were they issued in violation of, any preemptive rights. The Company is the sole owner, directly or indirectly, of 100% of the outstanding capital stock of each of the Subsidiaries which are listed on Schedule 3.02 hereto. The ownership and capitalization of each of the Subsidiaries is as set forth on Schedule 3.02 hereto. Other than the shares the Company owns in the Subsidiaries, the Company does not own any capital stock or other equity securities issued by any 

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other Person (other than Cash). Except for this Agreement, the Options, as contemplated by the Stock Incentive Plan, the rights and restrictions set forth in the Stockholders’ Agreement or as set forth on Schedule 3.02 hereto, there are no outstanding or authorized options, warrants, rights, contracts, rights to subscribe, conversion rights, preemptive rights, or other agreements or commitments to which the Company or any Subsidiary is a party or which are binding upon the Company or any Subsidiary providing for the issuance, disposition or acquisition of any shares of capital stock of the Company or any Subsidiary. Except as set forth on Schedule 3.02, the outstanding capital stock of each Subsidiary is free and clear of any Lien, except for Permitted Liens. 

          (b) Except as set forth on Schedule 3.02: 

          (i) there are no outstanding or authorized stock appreciation, phantom stock, profit participation or similar rights with respect to the Company or any Subsidiary; 

          (ii) except as set forth in the Stockholders’ Agreement, there are no voting trusts, proxies or other written agreements or understandings with respect to the voting of the capital stock of the Company or any Subsidiary; 

          (iii) there are no dividends which have accrued or been declared but are unpaid on any of the Shares or the capital stock of any Subsidiary; and 

          (iv) except as set forth in the Stockholders’ Agreement, there are no shareholder or similar agreements which affect or restrict the voting rights or right to transfer any of the Shares or the capital stock of any Subsidiary, and there are no registration rights or similar agreements with respect to the Company or any Subsidiary in force or effect. 

     Section 3.03. Authority of the Company.

          (a) The Company has the full right, power and authority to enter into this Agreement and each agreement, document and instrument to be executed and delivered by it pursuant to or as contemplated by this Agreement and to carry out the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the performance of the Company’s obligations hereunder have been duly authorized by all necessary corporate action on the part of the Company. This Agreement and each agreement, document and instrument to be executed and delivered by the Company pursuant to this Agreement constitute, or will when executed and delivered constitute, valid and binding obligations of the Company, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). 

          (b) The execution, delivery and performance by the Company of this Agreement and each such agreement, document and instrument contemplated by this Agreement to which it is a party: 

          (i) do not and will not violate any provision of the certificate of incorporation or bylaws of the Company or the equivalent governing documents of any Subsidiary;

          (ii) subject to the Antitrust Approvals, do not and will not violate any Laws of the United States, or any state or other jurisdiction applicable to the Company or any Subsidiary, or require the Company to obtain any Approval, consent or waiver of, or make any filing with, any Person (including any Governmental Authority) that has not been obtained or made, which violation or failure to obtain or make would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and 

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          (iii) do not and will not result in a breach of, constitute a default under, accelerate any obligation under, or give rise to a right of termination of any indenture, loan or credit agreement, or any other agreement, contract, instrument, mortgage, deed of trust, lien, lease, permit, authorization, order, writ, judgment, injunction, decree, determination or arbitration award, whether written or oral, to which the Company or any Subsidiary is a party or by which the property of the Company or any Subsidiary is bound, except where any of the foregoing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or except as otherwise set forth on Schedule 3.03(b)(iii)hereto. 

     Section 3.04. Compliance with Laws. Except as set forth on Schedule 3.04 hereto, and except with respect to the subject matter of the representations and warranties set forth in Section 3.06 (Taxes), Section 3.15 (Intellectual Property), Section 3.18(Permits), Section 3.19 (Employee Benefit Plans), Section 3.21 (Environmental Matters), and Section 3.22 (Employee Relations), the Company and each of the Subsidiaries are in material compliance with all applicable statutes, ordinances, orders, rules and regulations (“Laws”) promulgated by any federal, state, territory, municipal or other governmental authority (each, a “Governmental Authority”), which are necessary for the operation of the business of the Company or such Subsidiary as presently conducted. 

     Section 3.05. Advisory and Other Fees. Neither the Company nor any of the Subsidiaries has incurred or shall become liable for any advisory fee, broker’s commission or finder’s fee relating to or in connection with the transactions contemplated by this Agreement, other than fees payable to Lazard and ACAS, which fees shall be paid as provided in Section 12.04, and other than the Transaction Expenses. 

     Section 3.06. Taxes. Except as set forth on Schedule 3.06 hereto: 

          (a) (i) since the Reference Date, all United States federal income Tax Returns of or with respect to the Company and the Subsidiaries required by Law to be filed have been timely filed (after giving effect to any applicable extensions granted) and all other material Tax Returns of or with respect to the Company and the Subsidiaries required by applicable federal, foreign, state, local or other Law to be filed have been timely filed (after giving effect to any applicable extensions granted); 

          (ii) since the Reference Date, the Company and each of the Subsidiaries have timely paid or caused to be paid as of the date hereof all Taxes shown as due on the Tax Returns referred to in Section 3.06(a)(i), except to the extent such Taxes are being contested in good faith by the Company or a Subsidiary or are properly reserved for on the books or records of the Company or such Subsidiary; and 

          (iii) since the Reference Date, there has not been any audit of any Tax Return filed by or with respect to the Company or any Subsidiary for which the applicable statute of limitations has not expired; no audit of any such Tax Return of or including the Company or any Subsidiary is in progress; and neither the Company nor any Subsidiary has been notified in writing by any Governmental Authority that any audit is contemplated or pending. Since the Reference Date, no written claim has been made by any Governmental Authority in a jurisdiction where the Company or any Subsidiary does not file Tax Returns that the Company or such Subsidiary is or may be subject to taxation by that jurisdiction. 

          (b) Neither the Company nor any Subsidiary is a party to, bound by or has any obligation under any agreement relating to allocating or sharing the payment of, or liability for, Taxes or has any liability for Taxes of any Person other than members of the affiliated group, within the meaning of Section 1504(a) of the Code, filing consolidated federal income tax returns of which the Company is the common parent under Treasury Regulation § 1.1502-6 (or a similar provision of state, local or foreign Law), as a transferee or successor, by contract or otherwise. 

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          (c) No closing agreement pursuant to Section 7121 of the Code or any similar provision of any state, local or foreign Law has been entered into by or with respect to the Company or any Subsidiary. Neither the Company nor any Subsidiary has agreed to, or is required to make any adjustment for, any period after the Closing Date pursuant to Section 481(a) of the Code by reason of any change in any accounting method. There is no application pending with any Governmental Authority requesting permission for any such change in any accounting method of the Company or any Subsidiary and the Internal Revenue Service has not proposed in writing any such adjustment or change in accounting method. 

     Section 3.07. Officers and Directors; Books and Records.

          (a) Schedule 3.07(a) hereto sets forth the name and title of each officer and director of the Company and each Subsidiary. 

          (b) The copies of the records of the Company and the Subsidiaries, as made available by the Company to the Buyer and/or its agents, are true and complete copies of the originals of such documents. 

     Section 3.08. Litigation. Schedule 3.08 hereto sets forth each continuing action, suit, investigation and other proceeding pending or, to the Company’s Knowledge, threatened against the Company or any of the Subsidiaries, at law or in equity, or before or by any Governmental Authority (including any action, suit, investigation or proceeding (i) regarding the existence of a defect in the manufacture, production, distribution or sale of any products made or sold by or on behalf of the Company or any Subsidiary, or (ii) against or relating to any Employee Benefit Plan), other than workers’ compensation claims and routine claims for benefits under the Company’s Employee Benefit Plans, which would not reasonably be expected to have a Material Adverse Effect, and any action, suit, investigation or proceeding that is reasonably expected to be covered by insurance. Except as set forth on Schedule 3.08, neither the Company nor any Subsidiary is a party to any judgment, order or decree of any court, administration agency, commission or other Governmental Authority. 

     Section 3.09. Financial Statements.

          (a) The Company has delivered to the Buyer the following financial statements, attached as Schedule 3.09(a) hereto: 

          (i) audited consolidated balance sheet of the Company and the Subsidiaries as of December 31, 2010 and audited consolidated statements of operations, stockholders’ equity, and cash flows for the fiscal year then ended (collectively, the “Audited Financial Statements”); and 

          (ii) unaudited consolidated balance sheets of the Company and the Subsidiaries as of June 30, 2011 (the “Latest Balance Sheet”), and the related statements of operations and cash flows for the fiscal year and the six (6) months then ended (collectively, the “Unaudited Financial Statements” and, together with the Audited Financial Statements, the “Financial Statements”). 

          (b) The Audited Financial Statements have been prepared in accordance with GAAP applied consistently during the periods covered thereby, and present fairly in all material respects the financial condition of the relevant entities at the dates of said statements and the results of their operations and cash flows for the periods covered thereby. The Unaudited Financial Statements have been prepared in accordance with GAAP applied consistently during the period covered thereby, and present fairly in all material respects the financial condition of the Company and the Subsidiaries at the date of such statements and the results of their operations and cash flows for the period covered thereby, except that they do not contain the materials and disclosures to be found in notes to financial statements prepared in accordance with GAAP, nor do they reflect year-end adjustments. 

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          (c) Except as set forth on Schedule 3.09(c) hereto, neither the Company nor any Subsidiary has any liabilities that would be required to be reflected on a balance sheet prepared in accordance with GAAP, except for (i) liabilities reflected or reserved against on the Latest Balance Sheet (including all notes thereto); (ii) liabilities incurred in the ordinary course of business since the date of the Latest Balance Sheet; (iii) liabilities incurred in connection with the transactions contemplated hereby; (iv) liabilities arising under Contracts or other matters otherwise set forth in the Schedules hereto; and (iv) the Transaction Expenses. 

     Section 3.10. Transactions with Affiliates. Except (i) for intra-company transactions amongst the Company and the Subsidiaries, (ii) transactions, agreements, contracts or understandings between ACAS, ACEI or ACEII and the Company or any Subsidiary or which otherwise relate to the purchase, transfer or voting of securities, in each case, which will be terminated as of the Closing, (iii) the Company’s or any Subsidiary’s organizational documents, (iv) as set forth on Schedule 3.10 hereto, and (v) to the extent reflected in the Financial Statements, since the date of the Latest Balance Sheet there have been no material transactions, contracts, understandings or agreements of any kind between the Company or any Subsidiary and any Person which is an Affiliate of the Company or such Subsidiary.

     Section 3.11. Real Properties. 

          (a) The Company owns no real property. 

          (b) Schedule 3.11(b) hereto sets forth each lease or other agreement under which the Company or any Subsidiary leases or has rights to use any material real property owned by a Person other than the Company or a Subsidiary (the “Real Property Leases” and, each individually, a “Real Property Lease”). The Real Property Leases are in full force and effect and (i) the Company or the applicable Subsidiary, as the case may be, has not defaulted thereunder and (ii) to the Knowledge of the Company, no event has occurred that with notice or lapse of time, or both, would constitute a default by the Company or the applicable Subsidiary, as the case may be, which would reasonably be expected to result in a termination of the applicable Real Property Lease. True and complete copies of the Real Property Leases have been made available to the Buyer and/or its agents by the Company. Except as set forth on Schedule 3.11(b) hereto, the Company or a Subsidiary has a valid and subsisting leasehold interest in all the real property which is the subject of each of the respective Real Property Leases set forth on Schedule 3.11(b) hereto (individually, the “Leased Real Property” and, collectively, the “Leased Real Properties”). 

          (c) To the Knowledge of the Company, no material permit, license or certificate of occupancy pertaining to the leasing or operation of any Leased Real Property, other than those which are transferable with such property, is required by any Governmental Authority. 

     Section 3.12. Absence of Material Adverse Effect. Except as set forth on Schedule 3.12 hereto, since the date of the Latest Balance Sheet, there has not been any Material Adverse Effect. 

     Section 3.13. Absence of Certain Changes. Except as set forth on Schedule 3.13hereto, or as contemplated by this Agreement, the Company and each Subsidiary have complied in all material respects with the covenants and restrictions set forth in Section 6.01 hereof to the same extent as if this Agreement had been executed on, and had been in effect since, the date of the Latest Balance Sheet. 

     Section 3.14. Tangible Personal Property. Except as set forth on Schedule 3.14hereto, (a) the Company or a Subsidiary has valid title to or a valid license or leasehold interest in all of the material items of tangible personal property reflected on the Latest Balance Sheet, except as sold or disposed of subsequent to the date thereof in the ordinary course of business consistent with past practices, and (b) all such tangible personal property (other than licensed or leased tangible property) is owned or, in the case of licensed or leased tangible 

17

 

personal property, the Company or the applicable Subsidiary has a valid license or leasehold interest in such tangible personal property, in each case free and clear of all liens, encumbrances, contracts and security interests (collectively, “Liens”), except for Permitted Liens. Except as set forth on Schedule 3.14 hereto, to the Knowledge of the Company, the facilities, plants, machinery and equipment of the Company and the Subsidiaries are in good working order and condition, ordinary wear and tear excepted and subject to routine maintenance, and are fit for the purpose for which they are currently being used. 

     Section 3.15. Intellectual Property. Schedule 3.15 hereto sets forth all patents, trademark registrations, service mark registrations, trade names, domain name registrations, copyright registrations, and all applications for any of the foregoing, that are material to the business of the Company and its Subsidiaries and that are owned by the Company or any Subsidiary. To the Knowledge of the Company, no intellectual property is owned by a third party that is necessary for the operation of the Company’s business (other than such intellectual property currently licensed by the Company or one of its Subsidiaries). Except as set forth on Schedule 3.15 hereto, since the Reference Date, neither the Company nor any Subsidiary has received any written notice of infringement of or conflict with asserted rights of others with respect to any know-how, trade secrets, patents, trademarks, trade names, brand names and copyrights that are owned or used by, or licensed to, the Company or any Subsidiary. Except as set forth on Schedule 3.15 hereto, the Company does not have Knowledge of any material infringement or misappropriation by the Company of any third party’s material intellectual property. Except as set forth on Schedule 3.15 hereto, the Company does not have Knowledge of any material infringement or misappropriation by any third party of the material intellectual property owned by the Company. 

     Section 3.16. Contracts. Except for contracts, commitments, plans, agreements and licenses listed on Schedule 3.16 hereto (true and complete copies of which or, with respect to oral Contracts, true and correct written summaries of which, in each case, together with all amendments, supplements or other modifications thereto have been made available to the Buyer and/or its agents) (in each case, whether oral or written, the “Contracts”), and except for purchase orders entered into in the ordinary course of business, neither the Company nor any Subsidiary is a party to or subject to: 

          (a) any plan or contract providing for bonuses, stock, options, stock purchases, profit sharing, collective bargaining or the like (other than the Options and the Stock Incentive Plan) or any contract or agreement with any labor union (other than the plans listed on Schedule 3.19 hereto); 

          (b) any employment contract or contract for services which requires the payment of more than $150,000 annually in total cash compensation, which is not terminable on sixty (60) or fewer days notice by the Company or a Subsidiary without liability for any material penalty or severance payment; 

          (c) any contract or agreement for the purchase of any commodity, material or equipment in excess of $150,000; 

          (d) any other contracts or agreements creating any obligation of the Company or any Subsidiary of more than $150,000 annually with respect to any such contract; 

          (e) any contract or agreement requiring the purchase of all or substantially all of its requirements of a particular product from a supplier, except any contract or agreement relating to the purchase of inventory in the ordinary course of business; 

          (f) any contract or agreement that by its terms does not terminate or is not terminable by the Company or a Subsidiary within twelve (12) months after the date hereof without payment of a penalty of $150,000 or more; 

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          (g) any contract containing covenants materially limiting the freedom of the Company or any Subsidiary to compete in any line of business or with any Person; 

          (h) any contract or agreement for the purchase of any fixed asset for a price in excess of $150,000; 

          (i) any partnership, joint venture or other similar contract or agreement; 

          (j) any material contract or agreement providing for the license of patents, trademarks, service marks, trade names or copyrights between the Company or any Subsidiary and any third party; 

          (k) any agreement concerning confidentiality, except for (i) such agreements entered into in connection with transactions or communications with third parties in the ordinary course of business, (ii) such agreements by the Company or its agents or representatives with third parties in connection with any proposed sale, financing or similar transaction of the Company or its Subsidiaries, including the transactions contemplated hereby and whether similar to the Confidentiality Agreement or otherwise, and (iii) such agreements entered into with employees of the Company or any Subsidiary in the ordinary course of business; 

          (l) any agreement in which a Securityholder, or an Affiliate of any Securityholder, is a party, other than employment, stock option or other employee benefit agreement; 

          (m) any material sales, marketing, distributorship, agency or representative agreements where the counter-party to such agreement has the right or power to bind the Company or any Subsidiary; 

          (n) any agreements with respect to reorganizations, mergers or acquisitions of capital stock or business assets of any Person since January 1, 2006; 

          (o) any power of attorney granted by the Company or any Subsidiary that is currently effective and outstanding and vests in any Person decision-making authority or the right or power to bind the Company or any Subsidiary; 

          (p) any agreements, notes, contracts or other documents under which the Company or any Subsidiary has created, incurred, assumed or guaranteed any Indebtedness, or under which it has created a Lien on any of its assets; and 

          (q) any agreement requiring the payment of any royalty. 

                All Contracts are valid and in full force and effect and constitute legal, valid and binding obligations of the Company or the applicable Subsidiary and, to the Knowledge of the Company, the other parties thereto, and are enforceable against the Company or such Subsidiary in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). To the Knowledge of the Company, neither the Company nor any Subsidiary is in default in complying with any material provisions thereof, nor has the Company or any Subsidiary received written notice of any such default, and, to the Knowledge of the Company, no condition or event or facts exist that, with notice, lapse of time or both, would constitute a default thereof on the part of the Company or any Subsidiary. 

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     Section 3.17. Insurance. The Company has made available to Buyer true and complete copies of all policies of insurance and fidelity bonds to which the Company or any Subsidiary is a party or under which the company or any Subsidiary is covered. All policies of insurance or fidelity bonds maintained by the Company or any Subsidiary are in full force and effect. All premiums due on any policy of insurance or fidelity bonds have been paid to the extent such premiums are due and payable and the Company and its Subsidiaries have otherwise performed all of their obligations under such policies. 

     Section 3.18. Permits. Except as set forth on Schedule 3.18 hereto, (i) the Company and each of the Subsidiaries have obtained all permits, registrations, licenses, franchises, certifications and other approvals (collectively, the “Approvals”) from Governmental Authorities (other than Approvals subject to the representations and warranties in Section 3.11 (Real Property), Section 3.15 (Intellectual Property) and Section 3.21(Environmental Matters)) necessary for the conduct of its business as presently conducted, except where the failure to obtain such Approvals would not reasonably be expected to have a Material Adverse Effect, (ii) all such Approvals are valid and in full force and effect and (iii) none of such Approvals is subject to termination by its terms as a result of the execution of this Agreement by the Company or by the consummation of the transactions contemplated by this Agreement. 

     Section 3.19. Employee Benefit Plans. All material Employee Benefit Plans maintained by the Company or any Subsidiary or to which the Company (or any Subsidiary) is obligated to contribute are listed on Schedule 3.19 hereto. Except as set forth on Schedule 3.19 hereto: 

          (a) all such Employee Benefit Plans have been made available to the Buyer and/or its agents; 

          (b) all such Employee Benefit Plans have been maintained, funded and administered in compliance in all material respects with all applicable Laws, including without limitation, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and the Code, except where such noncompliance would not reasonably be expected to result in a material liability; 

          (c) since the Reference Date, no such Employee Benefit Plan, or any trustee, administrator, employee or “fiduciary” thereof has, to the Knowledge of the Company, engaged in any breach of fiduciary responsibility or any “prohibited transaction” (as such term is defined in Section 406 of ERISA or Section 4975 of the Code) to which Section 406 of ERISA or Section 4975 of the Code applies and which could subject any such Employee Benefit Plan, trustee, administrator, employee or fiduciary thereof, or any party dealing with any such Employee Benefit Plan, to a material Tax or penalty on prohibited transactions imposed by Section 4975 of the Code or Section 502 of ERISA; 

          (d) no Employee Benefit Plan is a defined benefit pension plan or has within the six (6) years preceding the date of this Agreement been subject to the minimum funding requirements of Section 412 of the Code or Title IV of ERISA; 

          (e) neither the Company nor any ERISA Affiliate has or has ever had any obligation to contribute to any “multiemployer plan” within the meaning of Section 3(37) of ERISA; 

          (f) each Employee Benefit Plan intended to qualify under Section 401 of the Code has received a favorable determination letter from the Internal Revenue Service that such Employee Benefit Plan is a “qualified plan” under Section 401(a) of the Code; the related trusts are exempt from tax under Section 501(a) of the Code; and, to the Knowledge of the Company, no facts or circumstances exist that would be reasonably likely to jeopardize the qualification of such Employee Benefit Plan; 

          (g) with respect to the Employee Benefit Plans, to the Knowledge of the Company, all required contributions have been made or properly accrued on the Financial Statements; 

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          (h) neither the Company nor any ERISA Affiliate has liability under any Employee Benefit Plan, or otherwise, to provide medical or death benefits with respect to current or former employees of the Company or any Subsidiaries beyond their termination of employment (other than coverage mandated by Law), and there are no reserve assets, surplus or prepaid premiums under any such Employee Benefit Plan; 

          (i) the consummation of the transactions contemplated by this Agreement will not, other than pursuant to the Employee Benefit Plans listed on Schedule 3.19 hereto or pursuant to actions taken by the Buyer, result in any material liability to any present or former employee or independent contractor, including, but not limited to, as a result of the Worker Adjustment Retraining and Notification Act; 

          (j) except as set forth in Schedule 3.19, neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will (i) result in any payment becoming due to any current or former officer, partner, contractor or employee of Company or an ERISA Affiliate, (ii) increase any benefits otherwise payable under any Employee Benefit Plan, (iii) increase any benefits otherwise payable under any Employee Benefit Plan or (iv) result in the acceleration of the time of payment or vesting of any such benefits under any such Employee Benefit Plan; and 

          (k) no amount required to be paid or payable to or with respect to any employee or other service provider of Company or an ERISA Affiliate in connection with the transactions contemplated hereby (either solely as a result thereof or as a result of such transactions in conjunction with any other event) could be an “excess parachute payment” within the meaning of Section 280G of the Code. Each Employee Benefit Plan that constitutes a nonqualified deferred compensation plan for purposes of Section 409A of the Code has been operated in compliance in form and substance with Section 409A of the Code and all applicable guidance from the IRS. 

     Section 3.20. Employees; Labor Matters. Neither the Company nor any Subsidiary is delinquent in any material payments to any of their respective employees for any wages, salaries, commissions, bonuses, severance, termination pay or other direct compensation for any services performed for it to the date hereof or amounts required to be reimbursed to such employees. Except as set forth on Schedule 3.20 hereto, neither the Company nor any Subsidiary has any written policy, practice, plan or program of paying severance pay or any written form of severance compensation in connection with the termination of employment. Except as set forth on Schedule 3.20hereto, to the Knowledge of the Company, there are no material grievances, complaints or charges that have been filed against the Company or any Subsidiary under any dispute resolution procedure (including, but not limited to, any proceedings under any dispute resolution procedure under any collective bargaining agreement) that have not been dismissed. Except as set forth on Schedule 3.20 hereto, no collective bargaining agreements are in effect or are currently being negotiated by the Company or any Subsidiary. 

     Section 3.21. Environmental Matters. Except as set forth on Schedule 3.21 hereto, since the Reference Date, the Company and the Subsidiaries have obtained and possessed all material Approvals required under federal, state and local Laws concerning pollution or protection of the environment, in each case in effect on or prior to the date hereof, including all such Laws relating to the emission, discharge, release or threatened release of any petroleum, pollutants, environmental contaminants or hazardous or toxic materials, substances or wastes into air, surface water, groundwater or lands (“Environmental Requirements”), except where the failure to obtain or possess such Approvals would not reasonably be expected to have a Material Adverse Effect. Except as set forth on Schedule 3.21 hereto, to the Knowledge of the Company, the Company and each Subsidiary are in compliance with all terms and conditions of such Approvals and are also in compliance with all other Environmental Requirements, except for such failures to comply that would not reasonably be expected to have a Material Adverse Effect. Except as set forth on Schedule 3.21 hereto, since the Reference Date, neither the Company nor any Subsidiary has received any written notice from any Governmental Authority or other Person asserting or alleging that the Company or any Subsidiary 

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has failed in any material respect to comply with any Environmental Requirements, or that the Company or any Subsidiary is liable in any material respect for any material injury or material damages to any Person or property because of the release or threatened release of any petroleum, pollutants, environmental contaminants, hazardous or toxic materials, substances or wastes except as would not reasonably be expected to have a Material Adverse Effect. The Company has made available to the Buyer all material environmental audits and reports that are in the Company’s possession and that relate to the Company’s or any Subsidiary’s past or current properties, facilities or operations. Notwithstanding any implication to the contrary contained herein, this Section 3.21constitutes the sole and exclusive representations and warranties of the Company with respect to Environmental Requirements and all other environmental matters. 

     Section 3.22. Employee Relations. Except as set forth on Schedule 3.22 hereto, none of the employees of the Company or the Subsidiaries is represented by a union, and, to the Knowledge of the Company, since the Reference Date, no union organizing efforts have been conducted or are now being conducted. Set forth on Schedule 3.22 hereto is a list of all material actions, suits and proceedings pending between the Company or any Subsidiary and any employees, former employees or prospective employees of the Company or such Subsidiary or involving other labor-related matters (including, without limitation, charges of employment discrimination or unfair labor practices) other than ordinary course claims for benefits under Employee Benefit Plans and workers’ compensation claims that would not reasonably be expected to have a Material Adverse Effect. To the Knowledge of the Company, neither the Company nor any Subsidiary is in violation in any material respect of any provision of any Law promulgated by any Governmental Authority regarding the terms and conditions of employees, former employees or prospective employees or other labor-related matters, including, without limitation, Laws relating to discrimination, fair labor standards and occupational health and safety, wrongful discharge or violation of the personal rights of employees, former employees or prospective employees of the Company or any Subsidiary, except where such violation would not, individually or in the aggregate, currently have a Material Adverse Effect. 

     Section 3.23. Accounts Receivable. All accounts receivable reflected on the Latest Balance Sheet and those accounts receivable that have arisen since the date of the Latest Balance Sheet and have not yet been collected, represent valid obligations of customers of the Company and its Subsidiaries arising from bona fide transactions entered into in the ordinary course of business and, except from Permitted Liens, are free and clear of all Liens. 

     Section 3.24. Bank Accounts. The Company has provided to Buyer a correct and complete list of each account maintained by the Company and its Subsidiaries at any bank or other financial institution, including the following information for each such account: (a) the name and location of the institution at which such account is maintained, (b) the name in which such account is maintained and the account number of such account, (c) a brief description of such account and (d) the names of all individuals authorized to draw on or make withdrawals from such account. 

     Section 3.25. Foreign Corrupt Practices Act. Except as would not reasonably be expected to have a Material Adverse Effect, neither the Company, nor any Subsidiary, nor any director, officer, agent, employee or other person associated with or acting on behalf of the Company or any Subsidiary has (i) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder; (ii) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity or to influence official action; (iii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee from corporate funds. 

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     Section 3.26. No Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS ARTICLE 3 (QUALIFIED BY THE SCHEDULES), NEITHER THE COMPANY NOR ANY OF THE SUBSIDIARIES MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY, AND THE COMPANY AND EACH SUBSIDIARY HEREBY DISCLAIM ANY SUCH REPRESENTATION OR WARRANTY IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS AGREEMENT AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 

ARTICLE 4 
REPRESENTATIONS AND WARRANTIES OF THE SECURITYHOLDERS 

          Each Securityholder, severally and not jointly, represents and warrants to the Buyer, as to such Securityholder that: 

     Section 4.01. Organizational Authorization. If such Securityholder is an entity, the execution, delivery and performance by such Securityholder of this Agreement and the consummation of the transactions contemplated hereby are within such Securityholder’s organizational powers and have been duly authorized by all necessary action on the part of such Securityholder. This Agreement and the Joinder Agreement, as applicable, constitutes a valid and binding agreement of such Securityholder, enforceable against such Securityholder in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). 

     Section 4.02. Governmental Authorization. Subject to the Antitrust Approvals, the execution, delivery and performance by such Securityholder of this Agreement and the Joinder Agreement, as applicable, require no material action by or in respect of, or material filing with, any Governmental Authority, agency or official. 

     Section 4.03. Noncontravention. The execution, delivery and performance by such Securityholder of this Agreement and the Joinder Agreement, as applicable, do not and will not (i) with respect to any Securityholder that is an entity, violate its certificate or articles of incorporation or bylaws or other equivalent governing documents, (ii) assuming compliance with the matters referred to in Section 4.02, violate any material Law applicable to the transactions contemplated hereby or (iii) require any material consent or other material action by any Person under, constitute a default under, or give rise to any right of termination, cancellation or acceleration of any right or obligation of such Securityholder under any provisions of any material agreement or other material instrument binding upon such Securityholder. 

     Section 4.04. Ownership of Securities. As of the date hereof, such Securityholder (a) if a Stockholder, is the owner of the number of Shares set forth opposite such Securityholder’s name on Schedule 3.02 hereto, free and clear of any Lien, except for Permitted Liens; and (b) if an Optionholder, is the owner of the number of Options at the exercise prices indicated thereon set forth opposite such Optionholder’s name on Schedule 3.02 hereto, free and clear of any Lien, except for Permitted Liens. Such Securityholder will be, as of the Closing, the record and beneficial owner of such Securityholder’s respective Shares and/or Options, free and clear of any Liens, except Permitted Liens. 

     Section 4.05. Advisory and Other Fees. Such Securityholder has not incurred nor shall become liable for any advisory fee, broker’s commission or finder’s fee relating to or in connection with the transactions contemplated by this Agreement. 

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     Section 4.06. No Action. Such Securityholder (i) does not have any action or cause of action or other claim whatsoever against the Company or any Subsidiary, (ii) except for (A) rights under this Agreement, (B) unpaid Indebtedness payable to ACAS, ACEI, ACEII or any of their respective Affiliates, which will be paid in accordance with Section 2.03(b)(v) hereof, (C) rights under matters set forth in Schedule 3.10 hereto or arising under Contracts disclosed pursuant to Section 3.16(l), (D) wages and other employee benefits owed to any Securityholder that is also an employee of the Company or a Subsidiary or (E) rights to indemnification owed to any Securityholder or its Affiliates by virtue of such Securityholder’s service as a director, employee, agent or representative of the Company or any Subsidiary, is not owed any amount by and does not owe any amount to the Company or any Subsidiary. 

     Section 4.07. No Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS ARTICLE 4, SUCH SECURITYHOLDER MAKES NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY, AND SUCH SECURITYHOLDER HEREBY DISCLAIMS ANY SUCH REPRESENTATION OR WARRANTY IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS AGREEMENT AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 

ARTICLE 5 
REPRESENTATIONS AND WARRANTIES OF THE BUYER 

          The Buyer represents and warrants to the other parties hereto that: 

     Section 5.01. Existence and Power. Buyer is a corporation duly organized, validly existing and in good standing under the Laws of the State of Ohio and has all corporate powers and all material Approvals from Governmental Authorities required to carry on its business as now conducted. 

     Section 5.02. Organizational Authorization. The Buyer has the full right, power and authority to enter into this Agreement and each agreement, document and instrument to be executed and delivered by it pursuant to or as contemplated by this Agreement and to carry out the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the performance of the Buyer’s obligations hereunder have been duly authorized by all necessary corporate action on the part of the Buyer. This Agreement and each agreement, document and instrument to be executed and delivered by the Buyer pursuant to this Agreement constitute, or will when executed and delivered constitute, valid and binding obligations of the Buyer, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). 

     Section 5.03. Governmental Authorization. Subject to the Antitrust Approvals, the execution, delivery and performance by the Buyer of this Agreement and each agreement, document and instrument to be executed and delivered by it pursuant to or as contemplated by this Agreement and the consummation of the transactions contemplated hereby or thereby require no material action by or in respect of, or material filing with, any Person (including any Governmental Authority). 

     Section 5.04. Noncontravention. The execution, delivery and performance by the Buyer of this Agreement and each agreement, document and instrument to be executed and delivered by it pursuant to or as contemplated by this Agreement and the consummation of the transactions contemplated hereby and thereby do not and will not (i) violate the certificate of incorporation or code of regulations of the Buyer, (ii) assuming compliance with the matters referred to in Section 5.03, violate any material Law, judgment, injunction, order or decree or (iii) require any material consent or other material action by any Person under, constitute a default under, or give rise to any right of termination, cancellation or acceleration of any right or obligation of the Buyer under any provisions of any material agreement or other material instrument binding upon the Buyer. 

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     Section 5.05. Financing. The Buyer has on the date hereof, and at the Closing shall have, sufficient cash, available lines of credit or other sources of immediately available funds or committed capital to enable it to fulfill its obligations hereunder and to make payment of all amounts to be paid by it hereunder on and after the Closing Date. 

     Section 5.06. Purchase for Investment. The Buyer is purchasing the Shares for investment for its own account and not with a view to, or for sale in connection with, any distribution thereof. The Buyer is an “accredited investor” and has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Shares and is capable of bearing the economic risks of such investment. 

     Section 5.07. Actions and Proceedings. There are no (i) outstanding judgments, orders, writs, injunctions or decrees of any court, Governmental Authority or arbitration tribunal against the Buyer or any of its Affiliates, which have or could have a material adverse effect on the ability of the Buyer to consummate the transactions contemplated hereby or (ii) actions, suits, claims or legal, administrative or arbitration proceedings or investigations pending or, to the knowledge of the Buyer, threatened against the Buyer, which have or could have a material adverse effect on the ability of the Buyer to consummate the transactions contemplated hereby. 

     Section 5.08. Finder’s Fees. There is no investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of the Buyer who might be entitled to any fee or commission upon the consummation of the transactions contemplated by this Agreement. 

     Section 5.09. Solvency. Immediately after giving effect to the transactions contemplated by this Agreement and any financing arrangements incurred by the Buyer in connection therewith, the Company and each Subsidiary will be able to pay their respective debts as they become due and will own property that has a fair saleable value greater than the amounts required to pay their respective debts (including a reasonable estimate of the amount of all contingent liabilities). Immediately after giving effect to the transactions contemplated by this Agreement, the Company and each Subsidiary will have adequate capital to carry on their respective businesses. No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated by this Agreement with the intent to hinder, delay or defraud either present or future creditors of the Company and the Subsidiaries. 

     Section 5.10. Acknowledgment by the Buyer.

          (A) The Buyer has conducted to its satisfaction, an independent investigation and verification of the financial condition, results of operations, assets, liabilities, properties and projected operations of the Company and, in making its determination to proceed with the transactions contemplated by this Agreement, the Buyer has relied on the results of its own independent investigation and verification and the representations and warranties of the Company and/or the Securityholders expressly and specifically set forth in this Agreement. SUCH REPRESENTATIONS AND WARRANTIES BY THE COMPANY AND/OR THE SECURITYHOLDERS CONSTITUTE THE SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES OF THE COMPANY, THE SUBSIDIARIES AND THE SECURITYHOLDERS TO THE BUYER IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY, AND THE BUYER UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT ALL OTHER REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE EXPRESSED OR IMPLIED (INCLUDING, WITHOUT LIMITATION, ANY RELATING TO THE FUTURE OR HISTORICAL FINANCIAL CONDITION, RESULTS OF OPERATIONS, ASSETS OR LIABILITIES OF THE COMPANY OR THE SUBSIDIARIES OR THE QUALITY, QUANTITY OR CONDITION OF THE ASSETS OF THE COMPANY OR THE SUBSIDIARIES) ARE SPECIFICALLY DISCLAIMED BY THE COMPANY, THE SUBSIDIARIES AND THE SECURITYHOLDERS. THE 

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COMPANY, THE SUBSIDIARIES AND THE SECURITYHOLDERS DO NOT MAKE OR PROVIDE, AND THE BUYER HEREBY WAIVES, ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE QUALITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY TO SAMPLES, OR CONDITION OF THE COMPANY’S OR ANY OF THE SUBSIDIARIES’ ASSETS OR ANY PART THEREOF. 

          (b) In connection with the Buyer’s investigation of the Company and the Subsidiaries, the Buyer has received from or on behalf of the Company and the Subsidiaries or the Securityholders certain projections, including projected statements of operating revenues and income from operations of the Company and the Subsidiaries for the fiscal year ending December 31, 2011 and for subsequent fiscal years and certain business plan information for such fiscal year and succeeding fiscal years. The Buyer acknowledges that there are uncertainties inherent in attempting to make such estimates, projections and other forecasts and plans, that the Buyer is familiar with such uncertainties, that the Buyer is taking full responsibility for making its own evaluation of the adequacy and accuracy of all estimates, projections and other forecasts and plans so furnished to it (including the reasonableness of the assumptions underlying such estimates, projections and forecasts), and that the Buyer shall have no claim against the Securityholders with respect thereto. Accordingly, neither the Company, the Subsidiaries nor the Securityholders make any representations or warranties whatsoever with respect to such estimates, projections and other forecasts and plans (including the reasonableness of the assumptions underlying such estimates, projections and forecasts). The Buyer agrees that neither any of the Securityholders nor any other Person will have or be subject to any liability to the Buyer or any other Person resulting from the distribution to the Buyer, or the Buyer’s use of, any information regarding the Company or any of its Subsidiaries or their respective businesses, including the Confidential Information Memorandum prepared by Lazard, and any information, document or material made available to the Buyer or its Affiliates in certain physical or on-line “data rooms,” management presentations or any other form in expectation of the transactions contemplated by this Agreement. 

     Section 5.11. No Knowledge of Misrepresentations or Omissions; No Reliance. The Buyer has no knowledge that any representation or warranty of the Company or the Securityholders in this Agreement is not true and correct in all material respects. In addition, the Buyer has no knowledge of any material errors in, or material omissions from, the Schedules. The Buyer acknowledges and agrees that the representations and warranties made by the Company in this Agreement (as qualified by the Schedules) supersede, replace and nullify in every respect the data set forth in any other document, material or statement, whether written or oral, made available to the Buyer, and the Buyer shall be deemed to have not relied on any data contained in such other document, material or statement for any purpose whatsoever, including, without limitation, as a promise, projection, guaranty, representation, warranty or covenant. 

     Section 5.12. No Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS ARTICLE 5 (AS MODIFIED BY THE SCHEDULES), THE BUYER MAKES NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY, AND THE BUYER HEREBY DISCLAIMS ANY SUCH REPRESENTATION OR WARRANTY IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS AGREEMENT AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 

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ARTICLE 6 
COVENANTS OF THE COMPANY AND THE SECURITYHOLDERS 

     Section 6.01. Conduct of the Company and the Subsidiaries. During the period from the date of this Agreement and continuing until the Closing, the Company agrees as to itself and the Subsidiaries that, except (i) as expressly contemplated or permitted by this Agreement, (ii) as required by applicable Law, or (iii) to the extent that the Buyer shall otherwise consent in writing, which consent shall not be unreasonably withheld, conditioned or delayed: 

          (a) the Company and the Subsidiaries shall use reasonable efforts to carry on their respective businesses in the usual, regular and ordinary course in all material respects, in substantially the same manner as heretofore conducted, and shall use reasonable efforts to preserve intact their present lines of business, maintain their rights and franchises and preserve their relationships (contractual or otherwise) with customers, suppliers and others having business dealings with them (including, without limitation, through ordinary course renewals, negotiations with and amendments to such relationships) to the end that their ongoing businesses shall not be impaired in any material respect at the Closing; provided, however, that no action by the Company or any Subsidiary with respect to matters specifically addressed by any other provision of this Section 6.01 shall be deemed a breach of this Section 6.01(a), unless such action would constitute a breach of one or more of such other provisions; 

          (b) neither the Company nor any Subsidiary shall incur or commit to any capital expenditures or any obligations or liabilities in connection with capital expenditures, except for (i) capital expenditures and obligations or liabilities in connection therewith incurred or committed to in the ordinary course of business consistent with past practice or (ii) other capital expenditures and obligations or liabilities in connection therewith in an amount not to exceed $150,000 in the aggregate; 

          (c) the Company shall not, and shall not permit any of the Subsidiaries to, (i) declare or pay any dividends on or make other distributions in respect of any of its capital stock or other equity interests (except for dividends in Cash and dividends by a Subsidiary to another Subsidiary or the Company), (ii) split, combine or reclassify any of its capital stock or other equity interests or issue or authorize or propose the issuance of any other securities in respect of, in lieu of or in substitution for, shares of its capital stock or other equity interests (except for any such transaction by a direct or indirect Subsidiary that remains a direct or indirect Subsidiary after consummation of such transaction), or (iii) repurchase, redeem or otherwise acquire any shares of its capital stock or any securities convertible into or exercisable for any shares of its capital stock or other equity interests (except for repurchases and redemptions paid in Cash and upon the exercise of Options); 

          (d) the Company shall not, and shall not permit any Subsidiary to, issue, deliver or sell, or authorize or propose the issuance, delivery or sale of, any shares of its capital stock of any class, or any securities convertible into or exercisable for, or any rights, warrants or options to acquire, any such shares of their respective capital stock, or enter into any agreement with respect to any of the foregoing, other than the issuance of shares upon the exercise of Options or other securities convertible into or exercisable for shares of capital stock issued and outstanding as of the date hereof, issuances of capital stock by a direct or indirect Subsidiary to such Subsidiary’s parent or another direct or indirect Subsidiary, the transactions contemplated herein or the Stock Incentive Plan; 

          (e) other than to the extent required to comply with its obligations hereunder or required by Law, the Company shall not, and shall not permit any Subsidiary to, amend or propose to amend its certificate of incorporation or bylaws or equivalent formation documents; 

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          (f) the Company shall not, and shall not permit any Subsidiary to, acquire or agree to acquire by merging or consolidating with, or by purchasing an equity interest in or any portion of the assets of, or by any other manner, any business or any corporation, partnership, association or other business organization or division thereof or otherwise acquire or agree to acquire or in-license any assets or rights (other than the acquisition or in-license of assets used in the operations of the business of the Company or any Subsidiary in the ordinary course consistent with past practice); provided, however, that the foregoing shall not prohibit (i) the creation of new direct or indirect Subsidiaries organized to conduct or continue activities otherwise permitted by this Agreement or (ii) internal reorganizations or consolidations involving existing direct or indirect Subsidiaries that remain direct or indirect Subsidiaries; 

          (g) other than (i) internal reorganizations or consolidations involving existing direct or indirect Subsidiaries that remain direct or indirect Subsidiaries or (ii) as may be required by or in conformance with applicable Law in order to permit or facilitate the consummation of the transactions contemplated hereby, the Company shall not, and shall not permit any Subsidiary to, sell, encumber (other than Permitted Liens) or otherwise dispose of, or agree to sell, encumber (other than Permitted Liens) or otherwise dispose of, any of its assets other than in the ordinary course of business consistent with past practice; 

          (h) the Company shall not, and shall not permit any Subsidiary to, (i) make any loans, advances or capital contributions to, or investments in, any other Person, other than (A) by the Company or a direct or indirect Subsidiary to or in the Company or any other direct or indirect Subsidiary, (B) pursuant to any contract or other legal obligation of the Company or in any Subsidiary as in effect as of the date hereof or (C) in the ordinary course of business consistent with past practice or (ii) create, incur, assume or suffer to exist any indebtedness, issuances of debt securities, guarantees, loans or advances to the Company or any Subsidiary not in existence as of the date of this Agreement except (A) pursuant to the credit facilities, indentures (but not in excess of amounts authorized for issuance thereunder as of the date of this Agreement) and other arrangements in existence on the date of this Agreement, (B) by the Company or a direct or indirect Subsidiary to or in the Company or any other direct or indirect Subsidiary, or (C) trade debt and commercial finance in the ordinary course of business consistent with past practice, in each case as such credit facilities, indentures and other arrangements and other existing indebtedness may be amended, extended, modified, refunded, renewed or refinanced after the date of this Agreement; 

          (i) other than as required by an existing contract or agreement, an Employee Benefit Plan or applicable Law and other than in the ordinary course of business consistent with past practice, neither the Company nor any Subsidiary shall (A) increase the amount of cash compensation or severance pay of any director or executive officer, (B) make any material increase in, or commitment to increase materially, any employee benefits, (C) adopt or make any commitment to adopt any material new Employee Benefit Plan or make any material contribution, other than regularly scheduled contributions, to any Employee Benefit Plan; or (D) enter into any employment, severance or similar contract or collective bargaining agreement with respect to any employees. 

          (j) neither the Company nor any Subsidiary shall (A) change its fiscal year, (B) make, change or revoke any material Tax election (except in the ordinary course of business consistent with past practice or as otherwise required by applicable Law) or (C) except as required by changes in GAAP or as required by applicable Law, materially change its methods of accounting in effect as of the date hereof; and 

          (k) other than in connection with any action expressly permitted by any other subsection of this Section 6.01 and except for any new contract awards, and any contract renewals, negotiations and amendments entered into in the ordinary course of business and consistent with past practice, neither the Company nor any Subsidiary shall (A) enter into or become bound by, or permit any of the assets owned or used by it to become bound by, any contract of the type required to be disclosed pursuant to Section 3.16 of this Agreement (other than in the ordinary course of business), or (B) prematurely terminate (other than in the ordinary course of business), or waive any material right or remedy under, any such contract. 

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     Section 6.02. Access. From the date hereof until the Closing Date, the Company and each Subsidiary will give the Buyer, its counsel, financial advisors, auditors and other authorized representatives reasonable access to the offices, employees, properties, books and records of the Company and the Subsidiaries; provided, that any such access (i) shall be during normal business hours on reasonable notice, (ii) shall not, except as otherwise agreed in writing by the Securityholder Representative and the Company, include sampling or testing of soil, sediment, surface or ground water and/or building material, (iii) shall not be required where such access would be prohibited or otherwise limited by any applicable Law or agreement and (iv) shall not otherwise unreasonably interfere with the conduct of the business of the Company or the Subsidiaries; provided, further, that nothing herein shall require the Company or any Subsidiary to provide access to, or to disclose any information to, the Buyer if such access or disclosure (x) would cause significant competitive harm to the Company or the Subsidiaries if the transactions contemplated by this Agreement are not consummated or (y) would be in violation of applicable Laws of any Governmental Authority (including Antitrust Laws) or the provisions of any agreement to which the Company or any of the Subsidiaries is a party. 

     Section 6.03. Subsequent Actions. On or before the Closing Date, the Company and the Securityholders may disclose to the Buyer in writing any exceptions to or variances from the representations and warranties in Article 3 or Article 4, and such disclosures shall amend and supplement the appropriate Schedules (such updated schedules to be referred to herein collectively as the “Updated Schedules”). Except for the purposes of Section 9.01(a) as specifically set forth therein, the delivery of such Updated Schedules will be deemed to have cured any misrepresentation or breach of warranty that otherwise might have existed hereunder by reason of such exception or variance, and the Buyer shall have no rights or claims under Article 11 of this Agreement with respect to any such misrepresentation or breach of warranty that is deemed cured by the Updated Schedules. 

ARTICLE 7 
COVENANTS OF THE BUYER 

     Section 7.01. Confidentiality. Prior to the Closing Date and after any termination of this Agreement, the Buyer shall hold and shall cause its Affiliates, officers, directors, employees, accountants, counsel, consultants, advisors and agents (collectively, the “Buyer’s Representatives”) to hold, in confidence, all confidential documents and information concerning the Company or any Subsidiary furnished to the Buyer or the Buyer’s Representatives in connection with the transactions contemplated by this Agreement in the manner specified in the Confidentiality Agreement dated as of April 25, 2011, between Lazard and the Buyer, as amended from time to time (the “Confidentiality Agreement”). 

     Section 7.02. Access. From and after the Closing, the Buyer and the Company (and each Subsidiary) shall afford promptly to the Securityholder Representative and its designees and representatives reasonable access to the books, records (including accountants’ work papers) and employees of the Company and the Subsidiaries to the extent necessary to permit the Securityholder Representative to determine any matter relating to the Securityholder Representative’s or the Securityholders’ rights and obligations hereunder or to any period ending on or before the Closing Date; provided, that any such access by the Securityholder Representative (i) shall be during normal business hours on reasonable notice, (ii) shall not be required where such access would be prohibited by applicable Law or agreement, and (iii) shall not otherwise unreasonably interfere with the conduct of the business of the Company or the Subsidiaries. Unless otherwise consented to in writing by the Securityholder Representative, neither the Buyer, the Company nor any Subsidiary shall, for a period of seven (7) years after the Closing Date, destroy, alter or otherwise dispose of any of the material corporate, financial, Tax and accounting books and records (which shall not include e-mails) of the Company or any Subsidiary, without first offering to surrender to the Securityholder Representative such books and records or any portion thereof which the Buyer, the Company or any Subsidiary may intend to destroy, alter or otherwise dispose of. 

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     Section 7.03. Notification. Prior to the Closing, upon discovery of any variances from the representations and warranties contained in this Agreement, the Buyer shall promptly notify the Company and the Securityholder Representative of such variances. 

     Section 7.04. Director and Officer Liability, Indemnification and Insurance. For a period of six (6) years after the Closing Date, the Buyer shall not, and shall not permit the Company or any Subsidiary to amend, repeal or modify any provision in the Company’s or any Subsidiary’s certificate of incorporation or bylaws (or equivalent governing documents) relating to the exculpation or indemnification of any current or former officer, manager, director or similar functionary (the “Indemnified Representatives”) (unless required by Law), it being the intent of the parties that the Indemnified Representatives prior to the Closing shall continue to be entitled to such exculpation and indemnification to the fullest extent of the Law. The Buyer shall cause the Company and each Subsidiary, at the Company’s sole cost and expense, to maintain its existing officers’ and directors’ liability insurance, or other liability insurance that covers events occurring prior to the Closing on terms and in amounts no less favorable to the Indemnified Representatives than its existing officers’ and directors’ liability insurance for a period of six (6) years after the Closing. The Buyer shall, to the fullest extent permitted by applicable Law, cause the Company and its Subsidiaries, at the Company’s sole cost and expense, to honor all of the Company’s and its Subsidiaries’ obligations to indemnify (including any obligations to advance funds for expenses) the Indemnified Representatives for acts or omissions by such Indemnified Representatives occurring prior to the Closing Date to the extent that such obligations of the Company or any of its Subsidiaries exist on the date of this Agreement, whether pursuant to the organizational documents of the Company or any of its Subsidiaries, individual indemnity agreements, management board resolution or otherwise, and such obligations shall survive the Closing and shall continue in full force and effect in accordance with the terms of the organizational documents of the Company or any of its Subsidiaries, as the case may be, and such board resolutions or individual indemnity agreements from the Closing Date until the expiration of the applicable statute of limitations with respect to any claims against such Indemnified Representatives arising out of such acts or omissions. From and after the Closing Date, to the fullest extent permitted by applicable law, Buyer shall, and shall cause the Company to, indemnify, defend and hold harmless the Indemnified Representatives against all Losses, as incurred (payable monthly upon written request which request shall include reasonable evidence of the Losses set forth therein) to the extent arising from, relating to, or otherwise in respect of, any actual or threatened Third Party Claim in respect of actions or omissions occurring at or prior to the Closing Date in connection with such Indemnified Representatives duties as an officer, director or employee of the Company or any of its Subsidiaries, including in respect to this Agreement and the other transactions contemplated by the this Agreement. Each of the Buyer and its Affiliates (determined after the Closing Date) covenants for itself and its respective successors, assigns, heirs, legatees and personal representatives that it shall not institute any Third Party Claim against any of the current or former officers or directors of the Company or any of its Subsidiaries, in their capacity as such, with respect to any Losses or other liabilities, actions or causes of action, judgments, claims and demands of any nature or description (consequential, compensatory, punitive or otherwise) arising from or relating to actions occurring prior to the Closing, whether or not such Person would be entitled to indemnification by the Company under this Section 7.04. If the Company or any Subsidiary or any of their respective successors or assigns (i) shall consolidate with or merge into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) shall transfer all or substantially all of its properties and assets to any Person, then, and in each such case, proper provisions shall be made so that the successors and assigns of the Company or each Subsidiary shall assume all of the obligations set forth in this Section 7.04. The provisions of this Section 7.04 are intended for the benefit of, and will be enforceable by, each Indemnified Representative and his or her heirs and representatives, and are in addition to, and not in substitution for, any other rights to indemnification or contribution that any such person may have had by contract or otherwise. The Buyer and the Company acknowledge and agree that, to the extent that an Indemnified Representative is entitled to be indemnified by the Company or any Subsidiary as contemplated by this Section 7.04 and by any Securityholder or any Affiliate of any such Securityholder 

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(other than the Company or any Subsidiary) under any other agreement or instrument, or by any insurer under a policy maintained by any such Securityholder or Affiliate, (i) the obligations of the Company hereunder shall be primary, and the obligations of such Securityholder, Affiliate or insurer secondary, (ii) the Indemnified Representative shall proceed first against the Company and any insurer under any policy maintained by the Company, and second, if indemnification is not provided by the Company or any such insurer on a timely basis, against any insurer under a policy maintained by any such Securityholder or Affiliate, (iii) the Company shall be required to advance the full amount of expenses incurred by any Indemnified Representative and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement, and (iv) the Company shall not be entitled to contribution or indemnification from or subrogation against any such Securityholder, Affiliate or insurer under a policy maintained by any such Securityholder or Affiliate. In the event that any such Securityholder or Affiliate makes indemnification payments or advances to the Indemnified Representative in respect of any Losses (including all interest, assessments and other charges paid or payable in connection with or in respect of any such Losses) for which the Company would also be obligated as contemplated by this Agreement, the Company shall indemnify, reimburse and hold harmless such Securityholder or Affiliate in full on demand. 

     Section 7.05. Regulatory Filings. Except as otherwise provided in Section 8.07, the Buyer shall, within three (3) Business Days after the date hereof, make or cause to be made all filings and submissions required of the Buyer under any Laws applicable to the Buyer for the consummation of the transactions contemplated herein. The Buyer shall be responsible for all filing fees under any such Laws applicable to the Buyer. 

     Section 7.06. Contact with Employees, Customers and Suppliers. Prior to the Closing, neither the Buyer nor any of the Buyer’s Representatives shall contact or otherwise communicate with any employees, customers or suppliers of the Company or any Subsidiary in connection with or regarding the transactions contemplated hereby, except to the extent approved in writing by the Securityholder Representative. 

ARTICLE 8 
ADDITIONAL COVENANTS OF THE PARTIES 

     Section 8.01. Reasonable Best Efforts; Further Assurances. Subject to the terms and conditions of this Agreement, the Buyer, the Company and the Securityholders shall use their commercially reasonable best efforts to take, or cause to be taken, all actions necessary or desirable to cause the conditions set forth in Article 9 to be satisfied and the transactions contemplated by this Agreement to be consummated, in each case as promptly after the date hereof as practicable. Except as otherwise expressly set forth in this Agreement, neither the Securityholders nor the Company on the one hand, nor the Buyer on the other hand, shall have any obligation to pay any amounts or incur any liability or obligation to any third party as a condition or inducement for obtaining any consents described on Schedule 9.01(c) hereto. Each of the Securityholders, the Company and the Buyer agree to execute and deliver such other documents, certificates, agreements and other writings and to take such other actions as may be reasonably necessary or desirable in order to consummate or implement expeditiously the transactions contemplated by this Agreement. From time to time, as and when requested by any party hereto and at such party’s expense, any other party shall execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all such further or other actions as such other party may reasonably deem necessary or desirable to evidence and effectuate the transactions contemplated by this Agreement. 

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     Section 8.02. Further Cooperation. Each of the Securityholders and the Buyer shall cooperate with each other (i) in determining whether any action by or in respect of, or filing with, any Governmental Authority is required, or any actions, consents, approvals or waivers are required to be obtained under any material contracts, in each case in connection with the consummation of the transactions contemplated by this Agreement, and (ii) in taking such actions or making any such filings, in furnishing information required in connection therewith and in seeking timely to obtain any such actions, consents, approvals or waivers. 

     Section 8.03. Public Announcements. No press release or other public announcement related to this Agreement or the transactions contemplated herein shall be issued or made without the joint approval of the Buyer, the Securityholder Representative and, prior to the Closing Date, the Company, unless required by Law or the requirements of any stock exchange or Nasdaq (in the reasonable opinion of counsel), in which case the Buyer, the Securityholder Representative and, prior to the Closing Date, the Company shall, to the extent practicable, have the right to review and comment on such public announcement prior to publication. Notwithstanding the foregoing, on or after the Closing, ACAS, ACEI and ACEII shall be permitted to disclose any returns, gains or losses realized as a result of their respective investments in the Company and the transactions contemplated hereby without any approval of the Company, the Buyer or the Securityholder Representative; provided, that neither ACAS, ACEI nor ACEII may, without the consent of the Buyer, disclose in such announcement the purchase price or the multiple of EBITDA paid for the Company hereunder. 

     Section 8.04. Tax Matters. All transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement, shall be borne and paid by the Buyer when due, and the Buyer will, at its own expense, file all necessary Tax Returns and other documentation with respect to all such Taxes and fees, and, if required by applicable Law, then the Securityholders will execute and deliver, and will cause their respective Affiliates to join in the execution and delivery of, any such Tax Returns and other documentation. The Buyer shall prepare or cause to be prepared and file or cause to be filed all Tax Returns for the Company and each Subsidiary for all periods ending prior to or including the Closing Date which are filed after the Closing Date. At least fifteen (15) days prior to the date on which each such income Tax Return is filed, the Buyer shall submit such Tax Return to the Securityholder Representative for its review and approval, which approval shall not be unreasonably withheld, conditioned or delayed. Buyer shall provide to the Securityholder Representative such use and sales Tax Returns promptly after filing such Tax Returns. 

     Section 8.05. Disclosure Generally. The Schedules have been arranged, for purposes of convenience only, as separately titled Schedules corresponding to the Sections of Article 3. Any information set forth in any Schedule or incorporated in any Section of this Agreement shall be considered to have been set forth in each other Schedule to the extent the relevance of such information is reasonably apparent on the face of such Schedule and shall be deemed to modify the representations and warranties in Article 3 whether or not such representations and warranties refer to such Schedule. The specification of any dollar amount in the representations and warranties contained in this Agreement or the inclusion of any specific item in the Schedules is not intended to imply that such amounts, or higher or lower amounts, or the items so included or other items, are or are not required to be disclosed or are within or outside of the ordinary course of business, and neither party shall use the fact of the setting of such amounts or the fact of the inclusion of any such item in the Schedules in any dispute or controversy with any party as to whether any obligation, item or matter not described herein or included in a Schedule is or is not required to be disclosed (including, without limitation, whether such amounts are required to be disclosed as material) or in the ordinary course of business for the purposes of this Agreement. The information contained in the Schedules is disclosed solely for the purposes of this Agreement, and no information contained therein shall be deemed to be an admission by any party hereto to any third party of any matter whatsoever, including of any violation of Law or breach of any agreement. 

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     Section 8.06. Conflicts and Privilege. It is acknowledged by each of the parties hereto that ACAS, ACEI, ACEII, the Company and the Securityholder Representative have retained PB and Arnold & Porter LLP (“AP”) to act as their counsel in connection with the transactions contemplated hereby and that neither PB nor AP has acted as counsel for any other party in connection with the transactions contemplated hereby and that none of the other parties has the status of a client of PB or AP for conflict of interest or any other purposes as a result thereof. The Buyer hereby agrees that, in the event that a dispute arises after the Closing between the Buyer, ACAS, ACEI, ACEII or the Securityholder Representative, PB or AP may represent ACAS, ACEI, ACEII or the Securityholder Representative in such dispute even though the interests of ACAS, ACEI, ACEII or the Securityholder Representative may be directly adverse to Buyer, the other Securityholders, the Company or the Subsidiaries, and even though PB or AP, as applicable, may have represented the Company or the Subsidiaries in a matter substantially related to such dispute, or may be handling ongoing matters for the Buyer, the Company or the Subsidiaries. The Buyer further agrees that, as to all communications among PB or AP and the Company, any Subsidiary, ACAS, ACEI, ACEII and/or the Securityholder Representative that relate in any way to the transactions contemplated by this Agreement, the attorney-client privilege and the expectation of client confidence belongs to the Securityholder Representative and may be controlled by the Securityholder Representative and shall not pass to or be claimed by the Buyer, the Company or any Subsidiary. Notwithstanding the foregoing, in the event that a dispute arises between the Buyer, the Company or any Subsidiary and a third party other than a party to this Agreement after the Closing, the Company or such Subsidiary may assert the attorney-client privilege to prevent disclosure of confidential communications by PB or AP to such third party; provided, however, that neither the Company nor such Subsidiary may waive such privilege without the prior written consent of PB or AP, as applicable. Each of PB and AP is an intended third party beneficiary of this Section 8.06 and shall be entitled to rely on the provisions hereof. 

     Section 8.07. Antitrust Filings. 

          (a) The Buyer, the Securityholder Representative and the Company shall, within three (3) Business Days after the date hereof, if required by the Antitrust Laws, file with the appropriate Governmental Authority all forms and documentation required to be filed by them under the Antitrust Laws concerning the transactions contemplated hereby, and shall request early termination of the waiting period, if applicable, under such Antitrust Laws. From the date of such filing until the Closing Date, the Buyer, the Securityholder Representative and the Company shall file all reports or other documents required or requested by the appropriate Governmental Authority under the Antitrust Laws, or otherwise and will comply promptly with any requests by such Governmental Authority for additional information concerning the transactions contemplated hereby, so that the waiting period specified in the Antitrust Laws will expire or terminate as soon as reasonably possible after the execution and delivery of this Agreement. The Buyer shall pay all filing fees required in connection with any filing required under the Antitrust Laws. The Buyer, the Securityholder Representative and the Company agree to use reasonable efforts to insure that any applicable waiting periods imposed under the Antitrust Laws terminate or expire as early as practicable. Without limiting the foregoing, the Buyer, the Securityholder Representative and the Company agree to use reasonable efforts to cooperate and oppose any preliminary injunction sought by any Governmental Body preventing the consummation of the transactions contemplated by this Agreement. 

          (b) The Buyer and the Securityholder Representative shall cause their respective counsel to furnish each other such necessary information and reasonable assistance as the other may reasonably request in connection with its preparation of necessary filings or submissions under the provisions of the Antitrust Laws. The Buyer and the Securityholder Representative will cause their respective counsel to supply to each other copies of all correspondence, filings or written communications by or to such party or its Affiliates with or from any Governmental Authority or staff members thereof, with respect to the transactions contemplated by this Agreement and any related or contemplated transactions, except for documents filed pursuant to Item 4(c) of the HSR Act Notification and Report Form or communications 

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regarding the same documents or information submitted in response to any request for additional information or documents pursuant to the Antitrust Laws that in each case reveal the Company’s or the Buyer’s negotiating objectives or strategies or purchase price expectations. 

     Section 8.08. WARN. For a period of one year following the Effective Time, the Buyer agrees to cause the Company and each of its Subsidiaries to provide any required notice under the WARN Act, or any similar law, and to otherwise comply with any such law with respect to any “plant closing” or “mass layoff” (as defined in the WARN Act or similar law) or similar event affecting the employees of the Company or any of its Subsidiaries. 

ARTICLE 9 
CONDITIONS TO CLOSING 

     Section 9.01. Conditions to the Buyer’s Obligations. The obligations of the Buyer to consummate the transactions contemplated by this Agreement are subject to the satisfaction (or the Buyer’s waiver) of the following conditions as of the Closing Date: 

          (a) the representations and warranties of the Company and the Securityholders contained in Article 3 and Article 4 hereof will be true and correct in all material respects (or, to the extent qualified by materiality within any such representation or warranty, true and correct in all respects) at and as of the time of the Closing (without taking into account any Updated Schedules delivered in accordance with Section 6.03 except to the extent that the disclosures in such Updated Schedules are the result of activities explicitly contemplated by this Agreement or permitted by Section 6.01), as if made on the Closing Date and the Closing Date were substituted for the date of this Agreement throughout such representations and warranties, except (i) to the extent that the failure of such representations and warranties to be true and correct has not caused a Material Adverse Effect, (ii) for activities explicitly contemplated by this Agreement or permitted by Section 6.01, and (iii) for those representations and warranties that address matters as of any other particular date (in which case such representations and warranties shall have been true and correct in all material respects (or, to the extent qualified by materiality within any such representation or warranty, true and correct in all respects) as of such particular date, except to the extent that the failure of such representations and warranties to have been true and correct as of such particular date has not caused a Material Adverse Effect); 

          (b) the Company and the Securityholders shall have performed in all material respects all of the covenants and agreements required to be performed by them under this Agreement at or prior to the Closing; 

          (c) all consents which are set forth on Schedule 9.01(c) hereto shall have been obtained; 

          (d) all material governmental filings and Approvals, including the Antitrust Approvals, that are required for the consummation of the transactions contemplated hereby and set forth on Schedule 9.01(d) hereto shall have been made and obtained; 

          (e) any applicable waiting period under the Antitrust Laws, including any extension, shall have expired or shall have been earlier terminated; 

          (f) no action, suit, claim or legal, administrative or arbitration proceeding or investigation shall be pending or, to the Knowledge of the Company, threatened before any Governmental Authority wherein an unfavorable decision issued pursuant to such action would reasonably be anticipated to (i) prevent consummation of any of the transactions contemplated by this Agreement, (ii) cause any of the transactions contemplated by this Agreement to be rescinded following consummation or (iii) permit consummation of the transactions contemplated by this Agreement only subject to any condition or restriction that has had or would reasonably be expected to have a Material Adverse Effect; 

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          (g) the Company shall have delivered to the Buyer a certificate, dated the Closing Date, stating that the preconditions specified in Sections 9.01(a) and 9.01(b), as they relate to the Company, have been satisfied; 

          (h) the Company shall have delivered a certificate of an officer of the Company (i) certifying and attaching the resolutions of the board of directors of the Company authorizing the consummation of the transactions set forth herein and (ii) certifying to the incumbency and signatures of the officers of the Company executing this Agreement and any other documents delivered pursuant to this Agreement; 

          (i) no Material Adverse Effect shall have occurred after the date of this Agreement; 

          (j) the Company shall have delivered evidence that the so-called “shareholder approval requirements” of Section 280G(b)(5)(B) of the Code and the regulations thereunder (including, without limitation, the 75 percent shareholder approval requirement and the adequate disclosure requirement) have been met with respect to each payment that would otherwise be treated as a parachute payment pursuant to Section 280G of the Code, including, without limitation, the matters referenced in the disclosures set forth in items 3 through 14 on Schedule 3.03(b)(iii); and 

          (k) each of the Securityholders set forth on Exhibit C shall have executed and delivered to the Buyer a Joinder Agreement. 

     Section 9.02. Conditions to the Company and the Securityholders’ Obligations. The obligation of the Company and the Securityholders to consummate the transactions contemplated by this Agreement is subject to the satisfaction (or the Securityholder Representative’s waiver) of the following conditions as of the Closing Date: 

          (a) The representations and warranties of the Buyer contained in Article 5 hereof shall have been true and correct in all material respects (or, to the extent qualified by materiality within any such representation or warranty, true and correct in all respects) as of the date of this Agreement and as of the Closing Date, except (i) for changes contemplated by this Agreement, and (ii) for those representations and warranties that address matters only as of the date of this Agreement or any other particular date (in which case such representations and warranties shall have been true and correct in all material respects (or, to the extent qualified by materiality within any such representation or warranty, true and correct in all respects) as of such particular date); 

          (b) the Buyer shall have performed in all material respects all of the covenants and agreements required to be performed by it under this Agreement at or prior to the Closing; 

          (c) all consents which are set forth on Schedule 9.01(c) hereto shall have been obtained; 

          (d) all material governmental filings and Approvals, including the Antitrust Approvals, that are required for the consummation of the transactions contemplated hereby and set forth on Schedule 9.01(d) hereto shall have been made and obtained; 

          (e) any applicable waiting period under the Antitrust Laws, including any extension, shall have expired or shall have been earlier terminated; 

          (f) no action, suit, claim or legal, administrative or arbitration proceeding or investigation shall be pending or, to the Knowledge of the Company, threatened before any Governmental Authority wherein an unfavorable decision issued pursuant to such action would reasonably be anticipated to (i) prevent consummation of any of the transactions contemplated by this Agreement, (ii) cause any of the transactions 

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contemplated by this Agreement to be rescinded following consummation or (iii) permit consummation of the transactions contemplated by this Agreement only subject to any condition or restriction that has had or would reasonably be expected to have a Material Adverse Effect; 

          (g) the Buyer shall have delivered to the Securityholder Representative a certificate of the Buyer, dated the Closing Date, stating that the preconditions specified in Sections 9.02(a)and 9.02(b), as they relate to the Buyer, have been satisfied. 

ARTICLE 10 
TERMINATION 

     Section 10.01. Termination. This Agreement may be terminated at any time prior to the Closing: 

          (a) by the mutual written consent of the Buyer and the Securityholder Representative; 

          (b) by the Buyer, if there has been a material breach by the Company or any Securityholder of any covenant or other agreement contained herein and such breach has not been waived by the Buyer or cured by the Company or such Securityholder within ten (10) Business Days after the Company’s or the Securityholder Representative’s receipt of written notice thereof from the Buyer; 

          (c) by the Securityholder Representative, if there has been a material breach by the Buyer of any covenant or other agreement contained herein and such breach has not been waived by the Securityholder Representative or cured by the Buyer within ten (10) Business Days after the Buyer’s receipt of written notice thereof from the Securityholder Representative; provided, that the failure to deliver the payments required by Sections 2.02 or 2.03as required hereunder shall not be subject to cure hereunder unless otherwise agreed to in writing by the Securityholder Representative; 

          (d) by the Buyer, if the transactions contemplated hereby have not been consummated on or before September 13, 2011; provided, that, if the only outstanding condition to closing (other than deliveries to be made at or as of the Closing) is the Antitrust Approvals required by Sections 9.01(d) and 9.02(d), then such date shall automatically be extended to October 13, 2011; provided, further, that the Buyer shall not be entitled to terminate this Agreement pursuant to this Section 10.01(d) if the Buyer’s knowing or willful breach of this Agreement has prevented the consummation of the transactions contemplated hereby; or 

          (e) by the Securityholder Representative, if the transactions contemplated hereby have not been consummated on or before September 13, 2011; provided, that, if the only outstanding condition to closing (other than deliveries to be made at or as of the Closing) is the Antitrust Approvals required by Sections 9.01(d) and 9.02(d), then such date shall automatically be extended to October 13, 2011; provided, further, that the Securityholder Representative shall not be entitled to terminate this Agreement pursuant to this Section 10.01(e) if the Company’s or the Securityholders’ knowing or willful breach of this Agreement has prevented the consummation of the transactions contemplated hereby. 

     The party desiring to terminate this Agreement pursuant to clauses (b), (c), (d) or (e) of this Section 10.01 shall give written notice of such termination to the other parties hereto. 

     Section 10.02. Effect of Termination. In the event this Agreement is terminated by either the Buyer or the Securityholder Representative as provided in Section 10.01, the provisions of this Agreement shall immediately become void and of no further force and effect (other than Section 7.01 (Confidentiality), Section 7.06 (Contact with Employees, Customers and Suppliers), Section 8.03 (Public Announcements), this Section 10.02, Section 11.04 (Securityholder Representative) and Article 12, each of which shall survive the termination of this Agreement), and there shall be no liability on the part of the Buyer, the 

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Company, the Securityholder Representative or any of the Securityholders to any other party hereto, except for willful breaches of this Agreement prior to the time of such termination and, in the case of the Buyer, any failure to have sufficiently available funds for the consummation of the transactions contemplated hereby or to pay the amounts due at Closing as set forth in Sections 2.02 and 2.03. 

ARTICLE 11 
INDEMNIFICATION/SECURITYHOLDER REPRESENTATIVE 

     Section 11.01. Survival Period. The representations, warranties, covenants and agreements set forth in this Agreement and in any certificates delivered at the Closing in connection with this Agreement shall survive for a period beginning on the Closing Date and ending on April 30, 2012 (the “Survival Period”), and shall thereafter be of no further force or effect; provided, that with respect to any covenant or agreement contained herein that expressly contemplates performance after the end of the Survival Period, the Survival Period for such covenant or agreement shall continue through the period of such contemplated performance provided further, that, (i) the representations and warranties set forth in Sections 3.01, 3.02, 3.03, 3.05, 3.14 (with respect to the first sentence thereof only), 4.01, 4.04, 4.05, 5.01, 5.02, 5.08 (the “Fundamental Representations”), and claims arising out of actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 shall survive the Closing indefinitely and (ii) the representations and warranties in Sections 3.06 and 3.19(the “Tax and ERISA Representations”) shall survive until the date that is ninety (90) days after the expiration of the statute of limitations applicable to the underlying action. 

     Section 11.02. Indemnification. 

          (a) Subject to the provisions of this Section 11.02 and Section 11.03 below, after the Closing, the Securityholders, severally but not jointly and severally, shall indemnify the Buyer and hold it harmless against any actual loss, liability, damage or expense (including reasonable legal fees and expenses, but excluding incidental, consequential or punitive damages or any liability for lost profits or the like or any damages or liability based on multiple of profits, multiple of cash flow or similar valuation methodology) (collectively, “Losses” and individually, a “Loss”) which the Buyer suffers as a result of any breach of the representations, warranties, covenants and agreements of the Company or the Securityholders set forth herein and as restated in any certificates delivered by or on behalf of the Company (or any Subsidiary) or the Securityholders at the Closing; provided, that the Buyer’s right to seek indemnification for such breaches shall be limited to an amount of Losses not to exceed the Cap except for Losses relating to or arising out of (i) (A) a breach of the Fundamental Representations, (B) a breach of the Tax and ERISA Representations, and (C) actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 by the Company, which shall be limited to an amount of such Losses not to exceed the Purchase Price, or (ii) actual fraud committed by a Securityholder in such Securityholder’s capacity as a securityholder of the Company, which shall be limited to an amount of such Losses; and provided, further, that the Buyer shall not be entitled to seek indemnification with respect to any individual Loss, unless such Loss is greater than $50,000 and unless such Loss, together with all other Losses that are greater than $50,000, exceeds $2,500,000, in which case the Buyer shall be entitled to indemnification only for the amount of such excess up to the Cap, the Purchase Price or the amount of such Losses, as applicable. 

          (b) Subject to the provisions of this Section 11.02 and Section 11.03 below, after the Closing the Buyer shall indemnify the Securityholder Representative and each Securityholder and hold them harmless against any Loss which the Securityholder Representative or any Securityholder (as the case may be) suffers as a result of (i) any breach by the Buyer of its covenants, agreements, representations and warranties set forth herein and as restated in any certificates delivered by the Buyer at the Closing and any breach by the Company of its covenants or agreements herein following the Closing or (ii) the operations of the Company and the Subsidiaries following the Closing, including, without limitation, any personal injury or other product liability claim arising out of the ownership, possession or use of any product manufactured, distributed or sold by the Company or any of its Subsidiaries after the Closing Date. 

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          (c) No Person shall be liable for any claim for indemnification under subsections (a) or (b) above unless written notice specifying in reasonable detail the nature of the claim for indemnification is delivered by the Person seeking indemnification to the Person from whom indemnification is sought prior to the expiration of the Survival Period, in which case the representation, warranty, covenant or agreement which is the subject of such claim shall survive, to the extent of such claim only, until such claim is resolved, whether or not the amount of the Losses resulting from such breach has been finally determined at the time the notice is given, if, but only if, (i) in the case of a claim made by reason of a Third Party Claim, the written notice is accompanied by a copy of the written notice of the third party claimant and (ii) in the case of any claim made other than by reason of a Third Party Claim, some Losses shall have been incurred in good faith at or prior to the date of such notice. 

          (d) Promptly after the assertion by any third party of any claim (a “Third Party Claim”) against any Person entitled to indemnification under this Section 11.02 (the “Indemnitee”) that results or may result in the incurrence by such Indemnitee of any Loss for which such Indemnitee would be entitled to indemnification pursuant to this Agreement, such Indemnitee shall promptly provide notice of such Third Party Claim to the parties from whom such indemnification could be sought (the “Indemnitors”) and, if the Securityholders are the Indemnitors, the Securityholder Representative. The Indemnitors may (and if the Indemnitors are the Securityholders, the Securityholders Representative may, at its option, on behalf of the Securityholders), assume the defense of the Indemnitee against such Third Party Claim, (including the employment of counsel and the payment of reasonable expenses). Any Indemnitee shall have the right to employ separate counsel in any such Third Party Claim and to participate in the defense thereof, but the fees and expenses of such counsel shall not be an expense of the Indemnitor unless (i) the Indemnitor shall have failed, within a reasonable time after having been notified by the Indemnitee of the existence of such Third Party Claim as provided in the preceding sentence, to assume the defense of such Third Party Claim or (ii) the employment of such counsel has been specifically authorized by the Indemnitor. In no event will an Indemnitee consent to the entry of any judgment or enter into any settlement with respect to any Third Party Claim without the prior written consent of the Indemnitor. 

          (e) The amount of any Loss subject to indemnification hereunder or of any claim therefor shall be calculated net of (i) any accruals or reserves on the Latest Balance Sheet that specifically relate to the matter(s) for which indemnification is claimed, (ii) any amounts actually recovered by an Indemnitee pursuant to any indemnification by or indemnification agreement with any non-affiliated third party (net of all direct collection expenses), (iii) any insurance proceeds or other cash receipts or sources of reimbursement received as an offset against such Loss (net of all direct collection expenses) received or receivable by the Buyer or the Company, any Subsidiary or any of their Affiliates on account of such Loss (each such source named in clauses (ii) and (iii), a “Collateral Source”), and (iv) any Tax Benefit inuring to the Buyer, the Company, any Subsidiary, or any of their Affiliates on account of such Loss. If the Buyer, the Company, any Subsidiary or any of their Affiliates receives a Tax Benefit after an indemnification payment is made, the Buyer shall promptly pay to the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages) the amount of such Tax Benefit at such time or times as and to the extent that such Tax Benefit is realized. For purposes hereof, “Tax Benefit” shall mean any refund of Taxes paid or reduction in the amount of Taxes which otherwise would have been paid, in each case computed at the effective tax rates. The Buyer, the Company and the Subsidiaries shall seek full recovery of any Loss from all Collateral Sources covering such Loss to the same extent as they would if such Loss were not subject to indemnification hereunder. The Buyer, the Company and the Subsidiaries shall not terminate or cancel any insurance policies in effect for periods prior to the Closing. In the event that a recovery from a Collateral Source is made by the Buyer, the Company, any Subsidiary or any of their Affiliates with respect to any Loss for which any such Person has been indemnified hereunder, then a refund equal to the aggregate amount of the recovery (net of all direct collection expenses) shall be made promptly to the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages). The Indemnitors shall be subrogated to all rights of the Indemnitees in respect of any Losses indemnified by the Indemnitors.

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          (f) Each Person entitled to indemnification hereunder shall take all reasonable steps to mitigate all losses, costs, expenses and damages after becoming aware of any event which could reasonably be expected to give rise to any losses, costs, expenses and damages that are indemnifiable or recoverable hereunder or in connection herewith. 

          (g) All indemnification payments made hereunder shall be treated by all parties as adjustments to the Purchase Price. 

          (h) Notwithstanding anything to the contrary contained in this Section 11.02, there shall be no recovery for any Loss or alleged Loss by the Buyer under this Section 11.02, and the Loss shall not be included in meeting the stated thresholds hereunder, to the extent such item has been included in the calculation of the Net Working Capital Amount or the Indebtedness Amount as determined pursuant to Section 2.04 hereof. 

          (i) There shall be no recovery for any Loss or alleged Loss by the Buyer for the conduct of any environmental investigatory, corrective or remedial action: (1) with respect to any conditions of contamination identified through any environmental sampling or analysis, or any report to any Governmental Authority, in either case which is not required by Environmental Requirements, or (2) except to the extent of such action necessary to attain compliance in a cost effective manner with Environmental Requirements assuming continued commercial or industrial use of the subject property and employing risk based standards and institutional controls where available. 

     Section 11.03. Limitation of Recourse. 

          (a) Except for Losses resulting from (i) actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 by the Company (which, in any case, will be subject to the limitations of Section 11.02(a) and Section 11.03(b)), or (ii) actual fraud committed by a Securityholder in such Securityholder’s capacity as a securityholder of the Company, the indemnification provided by Section 11.02(a) shall be the sole and exclusive remedy for any Losses of the Buyer, the Company or any Subsidiary with respect to any misrepresentation or inaccuracy in, or breach of, any representations or warranties or any breach or failure in performance of any covenants or agreements made by the Company, any Subsidiary, the Securityholder Representative or any Securityholder in this Agreement or in any exhibit or Schedules hereto or any certificate delivered hereunder. Each party acknowledges and agrees that, from and after the Closing, except: (i) for claims resulting from (A) actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 by the Company (which, in any case, will be subject to the limitations of Section 11.02(a) and Section 11.03(b)) or (B) actual fraud committed by a Securityholder in such Securityholder’s capacity as a securityholder of the Company; (ii) for claims of, or causes of action for which the sole remedy sought is equitable relief; or (iii) for specific performance of obligations to be performed after the Closing Date, the sole and exclusive remedy of the parties hereto for breach of this Agreement shall be indemnification in accordance with this Article 11. 

          (b) Each Securityholder’s liability for each Loss shall be limited to such Securityholder’s Securityholder Allocation Percentage multiplied by the amount of such Loss. In no event shall the aggregate amount of Losses payable by any Securityholder in respect of claims for indemnification exceed such Securityholder’s Securityholder Allocation Percentage multiplied by the Cap; provided that, each Securityholder’s liability for Losses in respect of claims relating to or arising out of (i)(A) a breach of the Fundamental Representations, (B) a breach of the Tax and ERISA Representations, and (C) actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 by the Company shall not exceed such Securityholder’s Securityholder Allocation Percentage multiplied by the Purchase Price, and (ii) actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 by such Securityholder shall not exceed the amount of such Loss. 

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          (c) No Securityholder shall have any liability for a breach of any other Securityholder’s representations, warranties, covenants or agreements in this Agreement, or the actual fraud committed by any other Securityholder in such other Securityholder’s capacity as a securityholder of the Company, and, in each case, the Buyer shall have no right to seek indemnification from any other Securityholder for any portion of such Loss. 

          (d) No claim shall be brought or maintained by the Buyer, the Company or any Subsidiary or their respective successors or permitted assigns against any officer, director, employee (present or former) or Affiliate of any party hereto which is not otherwise expressly identified as a party hereto, and no recourse shall be brought or granted against any of them in such capacities, by virtue of or based upon any alleged misrepresentation or inaccuracy in or breach of any of the representations, warranties or covenants of any party hereto set forth or contained in this Agreement or any exhibit or Schedule hereto or any certificate delivered hereunder. 

          (e) The Buyer shall not have any right to assert any claim against the Securityholders with respect to any Loss, cause of action or other claim to the extent such Loss is a Loss, cause of action or claim with respect to which the Buyer or any of its Affiliates has taken action (or caused action to be taken) with the primary intent of accelerating the time period in which such matter is asserted or payable in order to cause a claim to be made prior to the applicable expiration date set forth in Section 11.01. 

     Section 11.04. Securityholder Representative. 

          (a) Each Securityholder hereby appoints ACAS as the “Securityholder Representative” to act as the agent of the Securityholders with the full power (i) to resolve all questions, disputes, conflicts and controversies concerning Losses as provided in this Article 11, (ii) to execute and enter into, on behalf of the Securityholders, and to take all actions thereunder for and on their behalf, including but not limited the authorization of payments from the Reserve Account (including any increase thereof pursuant to Section 2.04(b)(i)) in connection with Losses as provided herein, (iii) to negotiate and/or settle all claims under this Agreement, (iv) to receive from the Buyer monies payable to the Securityholders in accordance with the provisions of this Agreement, (v) to otherwise take such actions (or refrain from taking actions) and execute such documents (including any modifications, waivers or amendments thereto) on the Securityholders’ behalf in connection with this Agreement as the Securityholder Representative, in its sole discretion, deems proper, (vi) to pay, release and/or distribute any or all of the Reserve Account or otherwise to pay Losses hereunder, each in its sole discretion, (vii) to adjust the Securityholder Allocation Percentage of the Reserve Account otherwise payable to any particular Securityholder as a result of the payment of Losses resulting from breaches of such Securityholder’s representations, warranties, covenants or agreements hereunder) and (viii) to perform all of the functions of the Securityholder Representative under this Agreement. The Buyer is entitled to rely on the acts and agreements of the Securityholder Representative as the acts and agreements of the Securityholders. The Securityholder Representative shall be entitled to retain counsel and to incur such reasonable expenses (including court costs and reasonable attorney’s fees and expenses) as the Securityholder Representative deems to be reasonably necessary or appropriate in connection with its performance of its obligations under this Agreement, and all such fees and expenses incurred by the Securityholder Representative shall be borne pro rata by the Securityholders based upon their respective initial Securityholder Allocation Percentages. 

          (b) The Securityholders hereby agree severally to indemnify the Securityholder Representative (in its capacity as such), on a pro rata basis based upon their respective Securityholder Allocation Percentages, against, and to hold the Securityholder Representative (in its capacity as such) harmless from (and the Securityholder Representative shall have the right to deduct from the Reserve Account or, after the exhaustion thereof, to seek payment directly from the Securityholders for the amount of), any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or 

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disbursements of whatever kind which may at any time be imposed upon, incurred by or asserted against the Securityholder Representative in such capacity in any way relating to or arising out of its action or failure to take action pursuant to this Agreement or in connection herewith in such capacity; provided, that none of the Securityholders shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting solely from the gross negligence or willful misconduct of the Securityholder Representative. The Securityholder Representative may from time to time submit invoices to the Securityholders covering such expenses and/or liabilities and, upon the request of any Securityholder, shall provide such Securityholder with an accounting of all expenses paid. In addition to any other rights or remedies (including Section 11.02(d)), the Securityholder Representative may, upon prior or contemporaneous written notice, offset any amounts determined by it to be owed to the Securityholder Representative against the Reserve Account and against any amounts to be paid to the Securityholders hereunder. The agreements in this Section 11.04 shall survive termination of this Agreement. 

          (c) The Buyer shall be fully protected in dealing with the Securityholder Representative under this Agreement and may rely upon the authority of the Securityholder Representative to act on behalf of the Securityholders. Any payment by the Buyer to the Securityholder Representative to the extent authorized under this Agreement shall be considered a payment by the Buyer to the Securityholders. The appointment of the Securityholder Representative is coupled with an interest and shall be irrevocable by any Securityholder in any manner or for any reason. This power of attorney shall not be affected by the death, illness, dissolution, disability, incapacity or other inability to act of the principal pursuant to any applicable Law. 

          (d) The Securityholder Representative may resign from its capacity as Securityholder Representative at any time by written notice delivered to the Buyer and the Securityholders. If there is a vacancy at any time in the position of Securityholder Representative for any reason, such vacancy shall be filled by a Securityholders vote in the form of a writing executed by the Securityholders entitled to a majority of the number of votes referred to in the next sentence. In such event, each Securityholder shall have a number of votes equal to such Securityholder’s Securityholder Allocation Percentage multiplied by 100 and the authorization of a majority of such number of votes shall be binding on all of the Securityholders and shall constitute the authorization of the Securityholders. 

          (e) The Securityholder Representative shall not be liable to the Buyer or the Securityholders in its capacity as the Securityholder Representative for any liability of a Securityholder or for any error of judgment, or any act done or step taken or omitted by it believed by it to be in good faith or for any mistake in fact or law, or for anything which it may do or refrain from doing in connection with this Agreement except in the case of gross negligence or willful misconduct by it. The Securityholder Representative may seek the advice of reputable legal counsel in the event of any dispute or question as to the construction of any of the provisions of this Agreement or its duties hereunder, and it shall incur no liability in its capacity as Securityholder Representative to the Buyer or the Securityholders and shall be fully protected with respect to any action taken, omitted or suffered by it in good faith in accordance with the opinion of such counsel.

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ARTICLE 12
MISCELLANEOUS 

     Section 12.01. Notices. All notices, requests and other communications to any party hereunder shall be in writing (including facsimile transmission) and shall be given, 

     if to the Company (after the Closing) or to the Buyer, then to: 

Nordson Corporation
28601 Clemens Road
Westlake, Ohio 44145
Attn: Robert Veillette, Vice President, General Counsel and Secretary
Fax: 440-892-9253 

          with a copy to: 

Ulmer & Berne LLP
1660 West 2nd St., Suite 1100
Cleveland, OH 44113-1448
Attn: Peter A. Rome, Esq.
Fax: 216-583-7005 

or, if to the Company (before the Closing), ACAS, ACEI, ACEII or the Securityholder Representative, then to: 

American Capital, Ltd.
Two Bethesda Metro Center, 14th floor
Bethesda, Maryland 20814 

Attn: Compliance Officer
Fax: (301) 659-6714 

          with copies to (which copies shall not constitute notice):

American Capital, Ltd.
2200 Ross Avenue, Suite 5000E
Dallas, Texas 75201
Attn: Kyle Bradford
Fax: (214) 273-6635 

          and

Patton Boggs LLP
2000 McKinney Avenue, Suite 1700
Dallas, Texas 75201
Attn: Akash D. Sethi
Fax: (214) 758-1550 

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          and, for notices to the Company (before the Closing), with a copy to (which shall not constitute notice): 

VP Acquisition Holdings, Inc.
c/o Value Plastics, Inc.
3325 South Timberline Road
Fort Collins, CO 80525
Attn: Chief Financial Officer
Fax: (970) 267-2063 

          or, if to any other Securityholder, at the address set forth below such Securityholder’s name on the signature pages hereto or the Joinder Agreement, as applicable. 

          All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received on a Business Day in the place of receipt prior to 5:00 p.m. in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt. 

     Section 12.02. Amendments and Waivers. 

          (a) Except as otherwise provided herein, any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by the Buyer and the Securityholder Representative, or in the case of a waiver, by the party against whom the waiver (in the case of any Securityholder, the Securityholder Representative) is to be effective.

          (b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 

     Section 12.03. Construction; Severability. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any Person. The headings of the sections and paragraphs of this Agreement have been inserted for convenience of reference only and shall in no way restrict or otherwise modify any of the terms or provisions hereof. In the event a subject matter is addressed in more than one representation and warranty in Article 3, the Buyer shall be entitled to rely only on the most specific representation and warranty addressing such subject matter. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but, if any provision of this Agreement is held to be prohibited by or invalid under applicable Law, then such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. Unless otherwise indicated, references in this Agreement to $ or dollars are to U.S. dollars. 

     Section 12.04. Expenses. Except as otherwise provided herein, and subject to Section 11.04, each party shall pay all of its own fees, costs and expenses (including, without limitation, fees, costs and expenses of legal counsel, investment bankers, brokers or other representatives and consultants and appraisal fees, costs and expenses) incurred in connection with the negotiation of this Agreement and the other agreements contemplated hereby, the performance of its obligations hereunder and thereunder, and the consummation of the transactions contemplated hereby and thereby; provided, that the Buyer shall pay any and all expenses relating to surveys, title insurance, and any other filings and consents required in connection with the transactions contemplated by this Agreement; and provided, further, that all fees payable by the Buyer, the Company, any Subsidiary or the Securityholders in connection with the Antitrust Approvals shall be paid by the Buyer. 

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     Section 12.05. Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided, that no party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the consent of each other party hereto, except (i) that Buyer may assign this Agreement to an Affiliate (an “Assignee”) provided that Buyer remains liable for the obligations, representations, warranties, covenants and agreements of Assignee hereunder, and (ii) that following the Closing, the Securityholder Representative may assign, delegate or otherwise transfer any of its rights to one or more of its Affiliates. Notwithstanding the foregoing, upon notice to the Securityholder Representative, the Buyer may assign any or all of its rights and obligations under this Agreement to any lender to the Buyer as security for indebtedness to any such lender with respect to a financing arrangement in connection with the transactions contemplated under this Agreement. 

     Section 12.06. Governing Law. All issues and questions concerning the construction, validity, interpretation and enforceability of this Agreement and the exhibits and Schedules hereto shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. 

     Section 12.07. Arbitration. 

          (a) Except for the matters set forth in Section 2.04(a) and the rights of the parties to equitable relief pursuant to Section 12.10, any dispute, controversy, or claim under, arising out of, or relating in any way to this Agreement and/or the negotiation, inducement, validity, interpretation, or breach thereof shall be resolved solely and exclusively by binding arbitration. Such arbitration shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association in effect at the time a demand for arbitration is made, and the provisions of this Section. In the event of a conflict between the provisions of this Section and the Commercial Arbitration Rules, the provisions of this Section shall govern.

          (b) Any dispute, controversy, or claim shall be deemed submitted to arbitration under this Section upon the filing with the Washington, D.C. office of the American Arbitration Association and delivery to the parties hereto of a written demand for arbitration, which demand shall describe in reasonable detail the facts and legal grounds forming the basis for the claim and any request for relief. The arbitration shall be conducted before a panel of three (3) arbitrators (the “Panel”) who are mutually agreeable to the parties. If the parties cannot mutually agree upon the selection of an arbitrator, the arbitrator shall be selected in accordance with the rules of the then-effective Commercial Arbitration Rules of the American Arbitration Association. The arbitration shall be held in New York, New York, or at another location if agreed to by all parties.

          (c) The arbitration hearing shall commence within one hundred and twenty (120) calendar days of the selection of the arbitrator and shall proceed and be completed expeditiously thereafter.

          (d) Unless otherwise ordered by the Panel upon application by a party and good cause shown by such party, discovery for each party shall be limited to fifteen (15) interrogatories, twenty-five (25) requests for production of documents, and three (3) depositions. All issues concerning discovery (including the scope of discovery) upon which the parties cannot agree shall be submitted to the arbitrator for determination.

          (e) Each party shall identify, no less than twenty (20) business days before the date of the commencement of the arbitration hearing, all persons that may testify at the arbitration hearing, all exhibits to be introduced into evidence at the arbitration hearing, and all documents considered, used, or relied upon by any witness in support of or in connection with that witness’ testimony at the arbitration hearing.

          (f) In rendering an award, the arbitrator shall determine the rights and obligations of the parties according to the laws of the State of Delaware, except as otherwise expressly provided in this Section.

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          (g) The arbitrator’s decision and award shall be made in writing and shall be issued in a final, confirmable form no more than forty-five (45) calendar days after the commencement of the arbitration hearing. The arbitrator shall not have the power to award damages that are specifically excluded under this Agreement, and each party hereby irrevocably waives any claim to such damages. The decision and award of the arbitrator shall be final and binding on the parties and shall not be subject to appeal. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. 

          (h) Notwithstanding the provisions of Sections 11.02(a) and (b), and subject to Section 11.04, each party shall bear its own costs and fees in connection with any arbitration conducted pursuant to this Section 12.07 and any proceedings in connection therewith.

          (i) Any party unsuccessfully refusing to comply with an order of the arbitrator shall be liable for costs and expenses, including reasonable attorneys’ fees, incurred by the other party in enforcing the order.

     Section 12.08. Forum. Except for the dispute resolution procedures otherwise set forth in Section 2.04(a) and the rights of the parties to seek equitable relief pursuant to Section 12.10, each party agrees that any suit, action or proceeding brought by such party against the other in connection with or arising from this Agreement shall be subject to the arbitration provisions set forth in Section 12.07. Any equitable remedies sought in connection with this Agreement (“Judicial Action”) shall be brought against any of the parties only in any United States federal or state court located in the State of Delaware and each of the parties hereto hereby consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such Judicial Action and waives any objection to venue laid therein. Process in any such Judicial Action proceeding may be served on any party anywhere in the world, whether within or without the State of Delaware. Without limiting the generality of the foregoing, each party hereto agrees that service of process upon such party at the address referred to in Section 12.01, together with written notice of such service to such party, shall be deemed effective service of process upon such party. 

     Section 12.09. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY LEGAL PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12.09. 

     Section 12.10. Specific Performance. Each of the parties hereto acknowledges that the rights of each party to consummate the transactions contemplated hereby are unique and recognize and affirm that in the event of a breach of this Agreement by any party, money damages may be inadequate and the non-breaching party may have no adequate remedy at law. Accordingly, the parties agree that such non-breaching party shall have the right, in addition to any other rights and remedies existing in their favor at law or in equity, to enforce their rights and the other party’s obligations hereunder not only by an action or actions for damages but also by an action or actions for specific performance, injunctive and/or other equitable relief (without posting of bond or other security). 

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     Section 12.11. Prevailing Party. If any litigation or other court action, arbitration or similar adjudicatory proceeding is commenced by any party hereto to enforce its rights under this Agreement against any other party, all fees, costs and expenses, including, without limitation, reasonable attorneys fees and court costs, incurred by the prevailing party in such litigation, action, arbitration or proceeding shall be reimbursed by the losing party; provided, that if a party to such litigation, action, arbitration or proceeding prevails in part, and loses in part, then the court, arbitrator or other adjudicator presiding over such litigation, action, arbitration or proceeding shall award a reimbursement of the fees, costs and expenses incurred by such party on an equitable basis. For the avoidance of doubt, the foregoing sentence shall not apply to any fees, costs or expenses in connection with Section 2.04(a) or as contemplated by Section 12.07(h). 

     Section 12.12. Counterparts; Third Party Beneficiaries. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other parties hereto. Except as otherwise specifically set forth herein (including specifically, but not limited to, the Persons not party hereto entitled to the benefits of Sections 7.04, 8.06, 11.01, 11.02 and 11.03), no provision of this Agreement is intended to confer upon any Person other than the parties hereto any rights or remedies hereunder. 

     Section 12.13. Entire Agreement. This Agreement and the documents referred to herein (including the Confidentiality Agreement) contain the complete agreement between the parties hereto and supersede any other prior understandings, agreements, representations or warranties by or between the parties, written or oral, which may have related to the subject matter hereof in any way. 

     Section 12.14. Termination of Agreements. Each Securityholder (other than ACAS for the sole purpose of the enforcement by ACAS of the provisions thereof prior to the Closing), to the extent a party thereto, agrees that the Stockholders Agreement and that certain Agreement dated October 14, 2005 between the Company and its Subsidiaries, on the one hand, and ACAS, on the other hand (together, the “Terminating Agreements”) shall be of no further force or effect from and after the Closing, and hereby waives any and all (i) notice requirements and (ii) rights or restrictions with respect to the transfer of the shares of Common Stock of the Company set forth in the Stockholders Agreement. Each Securityholder (other than ACAS for the sole purpose of the enforcement by ACAS of the provisions thereof prior to the Closing), to the extent a party thereto, hereby waives any and all rights under the Terminating Agreements, and, except for the continuing obligations provided for herein, releases all other parties to the Terminating Agreements from all obligations, commitments, liabilities or claims arising thereunder. 

* * *

 

 

46

 

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

 

				
	
BUYER :
	
 

	
 
	
 
	
 
	
 

	
 
	
NORDSON CORPORATION   

	
 
	
 

	
 
	
By:  
	
 

	
 
	
 
	
Name:  
	
 

	
 
	
 
	
Title:  
	
 

[Additional Signature Pages Follow] 

[Signature Page to Stock Purchase Agreement]  

 

 

 

 

				
				
	
COMPANY :
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
VP ACQUISITION HOLDINGS, INC.  

	
 
	
 

	
 
	
By:  
	
 

	
 
	
 
	
Name:  
	
 

	
 
	
 
	
Title:  
	
 

[Additional Signature Pages Follow] 

[Signature Page to Stock Purchase Agreement]  

 

 

 

 

								
								
	
STOCKHOLDERS :
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
AMERICAN CAPITAL, LTD.   

	
 
	
 

	
 
	
By:  
	
 

	
 
	
 
	
Name:  
	
 

	
 
	
 
	
Title:  
	
 

	
 

	
 
	
AMERICAN CAPITAL EQUITY I, LLC   

	
 
	
 

	
 
	
By:  
	
American Capital Equity Management,  

	
 
	
 
	
LLC, its Manager 

	
 
	
 
	
 

	
 
	
 

	
 
	
By:  
	
 

	
 
	
 
	
Name:  
	
 

	
 
	
 
	
Title:  
	
 

	
 
	
 
	
 
	
 

	
 
	
AMERICAN CAPITAL EQUITY II, LP   

	
 
	
By:  
	
American Capital Equity Management II,  

	
 
	
 
	
 

	
 
	
 
	
LLC, its General Partner 

	
 
	
 

	
 
	
By:  
	
 

	
 
	
 
	
Name:  
	
 

	
 
	
 
	
Title:  
	
 

[Additional Signature Pages Follow] 

[Signature Page to Stock Purchase Agreement]  

 

 

 

 

					
					
	
STOCKHOLDERS (cont.):
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Jim Pisula

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Jeff Jensen

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Bruce Williams

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
John Gibson

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Charles Philipp

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 

	
 
	
 
	
 

 

[Additional Signature Pages Follow] 

[Signature Page to Stock Purchase Agreement]  

 

 

 

OPTIONHOLDERS :

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Bruce Williams

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
John Gibson

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Charles Philipp

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Terry Gibbons

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

 

[Additional Signature Page Follows] 

[Signature Page to Stock Purchase Agreement]  

 

 

 

SECURITYHOLDER REPRESENTATIVE :

				
	
 
	
 
	
 
	
 

	
 
	
AMERICAN CAPITAL, LTD., solely in its 
capacity as Securityholder Representative

	
 
	
 

	
 
	
By:  
	
 

	
 
	
 
	
Name:  
	
 

	
 
	
 
	
Title:  
	
 

[Signature Page to Stock Purchase Agreement]  

 

 

 

Exhibit A

Initial Securityholder Allocation 

 

	
Names 
	
 
	
 
	
Initial

Securityholder

Allocation (%)1
	
 
	
 
	
 
	
Estimated

Purchase Price ($)2
	
 
	
 
	
 
	
Reserve

Account ($)3
	
 

	
American Capital, Ltd.
	
 
	
 
	
 
	
50.2937
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
502,936.82
	
 

	
American Capital Equity I, LLC
	
 
	
 
	
 
	
25.8791
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
258,791.20
	
 

	
American Capital Equity II, LP
	
 
	
 
	
 
	
10.0943
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
100,943.30
	
 

	
Jeff Jensen
	
 
	
 
	
 
	
0.8136
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
8,136.49
	
 

	
Jim Pisula
	
 
	
 
	
 
	
1.0171
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
10,170.61
	
 

	
Terry Gibbons
	
 
	
 
	
 
	
1.8002
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
18,001.98
	
 

	
John Gibson
	
 
	
 
	
 
	
2.5172
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
25,172.26
	
 

	
Charles Philipp
	
 
	
 
	
 
	
2.0901
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
20,900.61
	
 

	
Bruce Williams
	
 
	
 
	
 
	
5.4947
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
54,946.73
	
 

	
TOTAL
	
 
	
 
	
 
	
100.0
	
%
	
 
	
 
	
$
	
 
	
 
	
 
	
 
	
$
	
1,000,000.00
	
 

 

	
1
	
Subject to adjustment as set forth in the definition of “Security Allocation Percentage” and Section 11.04.

	
2
	
Subject to adjustment pursuant to Section 2.04.

	
3
	
Amounts subject to increase pursuant to Section 2.05.

 

 

 

Exhibit B

Transaction Expenses4 

 

	
4
	
To be provided at least 2 Business Days prior to the Closing Date.

 

 

 

Exhibit C

Securityholders Party to Joinder Agreements

Jeff Jensen 

 

 

 

Exhibit D

Joinder Agreement

 

 

 

Schedule 1.01

Persons With Knowledge

Bruce Williams
Terry Gibbons
John Gibson
Chuck Philipp 

 

 

 

Schedule 2.01(f)

Net Working Capital

None. 

 

 

 

Schedule 2.03(b)(v)

Indebtedness to be Repaid1 

Indebtedness to ACAS and its affiliates. 

	
1
	
To be provided at least 2 Business Days prior to the Closing Date.

 

 

 

Schedule 9.01(c)

Required Consents

None. 

 

 

 

Schedule 9.01(d)

Governmental Approvals

The Anti-Trust Approvals. 

 

 

Exhibit 10.1

EXECUTION VERSION

STOCK PURCHASE AGREEMENT

by and among

VP ACQUISITION HOLDINGS, INC.,

THE STOCKHOLDERS OF VP ACQUISITION HOLDINGS, INC.,

THE OPTIONHOLDERS OF VP ACQUISITION HOLDINGS, INC.,

AMERICAN CAPITAL, LTD.,
as Securityholder Representative,

and

NORDSON CORPORATION

Dated as of July 15, 2011

 

 

 

 

TABLE OF CONTENTS

 

	
 
	
Page

	
 
	
 

	
ARTICLE 1 DEFINITIONS
	
1

	
 
	
 

	
Section 1.01. Definitions
	
1

	
 
	
 

	
Section 1.02. Cross-References to Other Defined Terms
	
7

	
 
	
 

	
ARTICLE 2 PURCHASE AND SALE
	
9

	
 
	
 

	
Section 2.01. Estimated Purchase Price
	
9

	
 
	
 

	
Section 2.02. Purchase and Sale of the Shares; Payment of Options
	
10

	
 
	
 

	
Section 2.03. The Closing
	
10

	
 
	
 

	
Section 2.04. Post-Closing Adjustment
	
11

	
 
	
 

	
Section 2.05. Reserve Account
	
13

	
 
	
 

	
ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	
13

	
 
	
 

	
Section 3.01. Organization and Qualification
	
13

	
 
	
 

	
Section 3.02. Capitalization; Subsidiaries; Securities Owned
	
13

	
 
	
 

	
Section 3.03. Authority of the Company
	
14

	
 
	
 

	
Section 3.04. Compliance with Laws
	
15

	
 
	
 

	
Section 3.05. Advisory and Other Fees
	
15

	
 
	
 

	
Section 3.06. Taxes
	
15

	
 
	
 

	
Section 3.07. Officers and Directors; Books and Records
	
16

	
 
	
 

	
Section 3.08. Litigation
	
16

	
 
	
 

	
Section 3.09. Financial Statements
	
16

	
 
	
 

	
Section 3.10. Transactions with Affiliates
	
17

	
 
	
 

	
Section 3.11. Real Properties
	
17

	
 
	
 

	
Section 3.12. Absence of Material Adverse Effect
	
17

	
 
	
 

	
Section 3.13. Absence of Certain Changes
	
17

	
 
	
 

	
Section 3.14. Tangible Personal Property
	
17

	
 
	
 

	
Section 3.15. Intellectual Property
	
18

	
 
	
 

	
Section 3.16. Contracts
	
18

	
 
	
 

	
Section 3.17. Insurance
	
20

	
 
	
 

	
Section 3.18. Permits
	
20

	
 
	
 

	
Section 3.19. Employee Benefit Plans
	
20

	
 
	
 

	
Section 3.20. Employees; Labor Matters
	
21

	
 
	
 

	
Section 3.21. Environmental Matters
	
21

i

 

	
 
	
Page

	
 
	
 

	
Section 3.22. Employee Relations
	
22

	
 
	
 

	
Section 3.23. Accounts Receivable
	
22

	
 
	
 

	
Section 3.24. Bank Accounts
	
22

	
 
	
 

	
Section 3.25. Foreign Corrupt Practices Act
	
22

	
 
	
 

	
Section 3.26. No Other Representations and Warranties
	
23

	
 
	
 

	
ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE SECURITYHOLDERS
	
23

	
 
	
 

	
Section 4.01. Organizational Authorization
	
23

	
 
	
 

	
Section 4.02. Governmental Authorization
	
23

	
 
	
 

	
Section 4.03. Noncontravention
	
23

	
 
	
 

	
Section 4.04. Ownership of Securities
	
23

	
 
	
 

	
Section 4.05. Advisory and Other Fees
	
23

	
 
	
 

	
Section 4.06. No Action
	
24

	
 
	
 

	
Section 4.07. No Other Representations and Warranties
	
24

	
 
	
 

	
ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF THE BUYER
	
24

	
 
	
 

	
Section 5.01. Existence and Power
	
24

	
 
	
 

	
Section 5.02. Organizational Authorization
	
24

	
 
	
 

	
Section 5.03. Governmental Authorization
	
24

	
 
	
 

	
Section 5.04. Noncontravention
	
24

	
 
	
 

	
Section 5.05. Financing
	
25

	
 
	
 

	
Section 5.06. Purchase for Investment
	
25

	
 
	
 

	
Section 5.07. Actions and Proceedings
	
25

	
 
	
 

	
Section 5.08. Finder’s Fees
	
25

	
 
	
 

	
Section 5.09. Solvency
	
25

	
 
	
 

	
Section 5.10. Acknowledgment by the Buyer
	
25

	
 
	
 

	
Section 5.11. No Knowledge of Misrepresentations or Omissions; No Reliance
	
26

	
 
	
 

	
Section 5.12. No Other Representations and Warranties
	
26

	
 
	
 

	
ARTICLE 6 COVENANTS OF THE COMPANY AND THE SECURITYHOLDERS
	
27

	
 
	
 

	
Section 6.01. Conduct of the Company and the Subsidiaries
	
27

	
 
	
 

	
Section 6.02. Access
	
29

	
 
	
 

	
Section 6.03. Subsequent Actions
	
29

	
 
	
 

	
ARTICLE 7 COVENANTS OF THE BUYER
	
29

	
 
	
 

	
Section 7.01. Confidentiality
	
29

ii

 

	
 
	
Page

	
 
	
 

	
Section 7.02. Access
	
29

	
 
	
 

	
Section 7.03. Notification
	
30

	
 
	
 

	
Section 7.04. Director and Officer Liability, Indemnification and Insurance
	
30

	
 
	
 

	
Section 7.05. Regulatory Filings
	
31

	
 
	
 

	
Section 7.06. Contact with Employees, Customers and Suppliers
	
31

	
 
	
 

	
ARTICLE 8 ADDITIONAL COVENANTS OF THE PARTIES
	
31

	
 
	
 

	
Section 8.01. Reasonable Best Efforts; Further Assurances
	
31

	
 
	
 

	
Section 8.02. Further Cooperation
	
32

	
 
	
 

	
Section 8.03. Public Announcements
	
32

	
 
	
 

	
Section 8.04. Tax Matters
	
32

	
 
	
 

	
Section 8.05. Disclosure Generally
	
32

	
 
	
 

	
Section 8.06. Conflicts and Privilege
	
33

	
 
	
 

	
Section 8.07. Antitrust Filings
	
33

	
 
	
 

	
Section 8.08. WARN
	
34

	
 
	
 

	
ARTICLE 9 CONDITIONS TO CLOSING
	
34

	
 
	
 

	
Section 9.01. Conditions to the Buyer’s Obligations
	
34

	
 
	
 

	
Section 9.02. Conditions to the Company and the Securityholders’ Obligations
	
35

	
 
	
 

	
ARTICLE 10 TERMINATION
	
36

	
 
	
 

	
Section 10.01. Termination
	
36

	
 
	
 

	
Section 10.02. Effect of Termination
	
37

	
 
	
 

	
ARTICLE 11 INDEMNIFICATION/SECURITYHOLDER REPRESENTATIVE
	
37

	
 
	
 

	
Section 11.01. Survival Period
	
37

	
 
	
 

	
Section 11.02. Indemnification
	
37

	
 
	
 

	
Section 11.03. Limitation of Recourse
	
39

	
 
	
 

	
Section 11.04. Securityholder Representative
	
40

	
 
	
 

	
ARTICLE 12 MISCELLANEOUS
	
42

	
 
	
 

	
Section 12.01. Notices
	
42

	
 
	
 

	
Section 12.02. Amendments and Waivers
	
43

	
 
	
 

	
Section 12.03. Construction; Severability
	
43

	
 
	
 

	
Section 12.04. Expenses
	
43

	
 
	
 

	
Section 12.05. Successors and Assigns
	
44

	
 
	
 

	
Section 12.06. Governing Law
	
44

	
 
	
 

iii

 

	
 
	
Page

	
Section 12.07. Arbitration
	
44

	
 
	
 

	
Section 12.08. Forum
	
45

	
 
	
 

	
Section 12.09. Waiver of Jury Trial
	
45

	
 
	
 

	
Section 12.10. Specific Performance
	
45

	
 
	
 

	
Section 12.11. Prevailing Party
	
46

	
 
	
 

	
Section 12.12. Counterparts; Third Party Beneficiaries
	
46

	
 
	
 

	
Section 12.13. Entire Agreement
	
46

	
 
	
 

	
Section 12.14. Termination of Agreements
	
46

	
 
	
 

 

	
INDEX OF EXHIBITS

	
 
	
 

	
Exhibit A 
	
Initial Securityholder Allocations

	
 
	
 

	
Exhibit B 
	
Transaction Expenses

	
 
	
 

	
Exhibit C 
	
Securityholders Party to Joinder Agreements

	
 
	
 

	
Exhibit D 
	
Joinder Agreement

 

	
INDEX OF SCHEDULES

	
 
	
 
	
 

	
Schedule 1.01 
	
—
	
Persons with Knowledge

	
 
	
 
	
 

	
Schedule 2.01(f) 
	
—
	
Net Working Capital

	
 
	
 
	
 

	
Schedule 2.03(b)(v) 
	
—
	
Indebtedness to be Repaid

	
 
	
 
	
 

	
Schedule 9.01(c) 
	
—
	
Required Consents

	
 
	
 
	
 

	
Schedule 9.01(d)
	
—
	
Governmental Approvals

	
 
	
 
	
 

	
Disclosure Schedules

 

 

iv

 

STOCK PURCHASE AGREEMENT

          THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of July 15, 2011, by and among VP Acquisition Holdings, Inc., a Delaware corporation (the “Company”), the Persons identified as “Stockholders” of the Company listed on the signature pages hereto (each, a “Stockholder,” and collectively, the “Stockholders”), the Persons identified as “Optionholders” on the signature pages hereto (each, an “Optionholder,” and collectively, the “Optionholders”), and the Persons listed on Exhibit C hereto and which have, or by the Closing Date will have, joined in this Agreement pursuant to a Joinder Agreement (the “Joinder Agreements”) in the form attached hereto as Exhibit D (together with the Stockholders and the Optionholders sometimes referred to herein as the “Securityholders,” and each, a “Securityholder”), ACAS, in its capacity as the Securityholder Representative (the “Securityholder Representative”), and Nordson Corporation, an Ohio corporation (the “Buyer”). Unless otherwise provided, capitalized terms used herein are defined in Article 1 below. 

PRELIMINARY STATEMENTS

          A. The Stockholders collectively own all of the issued and outstanding capital stock of the Company, which as of the date hereof consists of 36,040 shares of Common Stock (the “Shares”). 

          B. The Optionholders own all of the Options, which as of the date hereof consists of Options to acquire up to 3,289 shares of Common Stock on the terms and conditions provided in the Stock Incentive Plan and the agreements evidencing such Options. 

          C. Upon the terms and subject to the conditions set forth herein, the Buyer desires to acquire from the Stockholders, and the Stockholders desire to sell to the Buyer, all of the issued and outstanding Shares as of the Closing. 

STATEMENT OF AGREEMENT

          NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

ARTICLE 1
DEFINITIONS 

     Section 1.01. Definitions. The following terms, as used herein, have the following meanings: 

          “ACAS” means American Capital, Ltd. 

          “ACEI” means American Capital Equity I, LLC. 

          “ACEII” means American Capital Equity II, LP. 

          “Affiliate” means (except as otherwise specifically defined herein), as to any Person, any other Person which, directly or indirectly, controls, or is controlled by, or is under common control with, such Person. As used in this definition, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of management or policies of a Person, whether through the ownership of securities or partnership or other ownership interests, by contract or otherwise. Notwithstanding the foregoing, no Person of which ACAS, ACEI or ACEII owns debt or equity interests, other than the Company and its Subsidiaries, shall be deemed an Affiliate of the Company or any Subsidiary for purposes of this Agreement. 

1

 

          “Antitrust Approval Fees” means all fees payable by the Company, any Subsidiary and the Securityholders to any Governmental Authority in connection with the Antitrust Approvals to the extent not paid by the Buyer pursuant to Section 8.07(a). 

          “Antitrust Approvals” means each notification of the transactions contemplated hereby filed with the appropriate Governmental Authority, and the approval of the transactions contemplated hereby by such Governmental Authority and/or the expiration of any applicable waiting period related thereto, in each case as required pursuant to such Antitrust Law. 

          “Antitrust Law” means any applicable antitrust and competition Law, including the HSR Act. 

          “Business Day” means any day excluding Saturday, Sunday and any day on which banking institutions located in the State of Colorado are authorized or required to close. 

          “Cap” means $12,500,000. 

          “Cash” means cash, cash equivalents and marketable securities. 

          “Cash Amount” means the bank balance of all Cash held by the Company or any Subsidiary as of the close of business on the Closing Date plus an amount equal to the aggregate exercise price the Optionholders would have paid if the Optionholders had exercised all Options immediately prior to the Closing, before giving effect to the transactions contemplated hereby, plus any deposits posted by the Company or any Subsidiary as reserves, escrows, security deposits, cash collateral or other similar amounts, as all are to be classified in accordance with GAAP. 

          “Code” means the Internal Revenue Code of 1986, as amended, and any reference to any particular Code section shall be interpreted to include any revision of or successor to that section regardless of how numbered or classified. 

          “Common Stock” means the Company’s common stock, par value $0.001 per share. 

          “Employee Benefit Plan” means each retirement, welfare, severance, incentive or bonus, deferred compensation, cafeteria or Section 125, profit sharing, vacation or paid-time-off, stock purchase, stock option or equity incentive plan, program, agreement or arrangement, and any other material employee benefit plan, program or arrangement that is maintained or contributed to by the Company or any ERISA Affiliate, other than (i) statutorily-mandated plans or programs and (ii) any agreement or arrangement for future benefits contained or described in this Agreement or in an agreement, document or instrument to be executed and delivered by the Company or any Subsidiary pursuant to or as contemplated in this Agreement. 

          “ERISA Affiliate” means any Subsidiary of the Company and any trade or business (whether or not incorporated) that is part of the same controlled group, or under common control with, or part of an affiliated service group that includes the Company or any Subsidiary within the meaning of Section 414(b), (c), (m), or (o) of the Code. 

          “Fully Diluted Number of Shares” means the sum of the total number of shares of Common Stock issued and outstanding immediately prior to the Closing held by the Stockholders, plus the total number of shares of Common Stock that the Optionholders could have purchased if the Optionholders had exercised their Options in full immediately prior to the Closing. 

2

 

          “GAAP” means United States generally accepted accounting principles, consistently applied in accordance with the Latest Balance Sheet. 

          “HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder. 

          “Indebtedness” means, with respect to any Person at any date, without duplication, all obligations of such Person: 

          (a) under capitalized leases; 

          (b) for borrowed money or in respect of loans or advances; 

          (c) for notes payable and drafts accepted representing extensions of credit whether or not representing obligations for borrowed money; 

          (d) for the face amount of any letter of credit issued as to which that Person is otherwise liable for reimbursement of drawings; 

          (e) for the direct or indirect guarantee, endorsement, co-making, discounting with recourse of sale with recourse by such Person of the obligation of another Person; 

          (f) for all obligations of such Person in respect of any exchange traded or over the counter derivative transaction, including, without limitation, any interest rate agreement and currency agreement, whether entered into for hedging or speculative purposes; 

          (g) for all unpaid or deferred income Tax liabilities; 

          (h) with regard to the Company, the amount of any unpaid management fees payable to ACAS or its Affiliates; and 

          (i) for all accrued interest, prepayment premiums or penalties and fees on the foregoing which would be payable if such obligations were paid in full as of such date. 

          For the avoidance of doubt, Indebtedness shall not include (i) any guarantees, letters of credit, performance bonds, bid bonds or other sureties of any kind or nature issued by or on behalf of the Company or any Subsidiary in connection with any customer contracts, proposals or otherwise, (ii) any trade payables accumulated in the ordinary course of business of the Company or any Subsidiary, or (iii) payables or loans of any kind or nature between the Company and its Subsidiaries or between Subsidiaries. 

          “Indebtedness Amount” means the amount required to repay all outstanding Indebtedness of the Company and any Subsidiary as of the close of business on the date immediately preceding the Closing Date. The foregoing shall be determined on a consolidated basis for the Company and its Subsidiaries and in accordance with GAAP (except as otherwise provided in the definition of Indebtedness), consistent with the preparation of the Latest Balance Sheet. 

          “Knowledge” when used in the phrase “to the Knowledge of the Company” or similar phrases means, and shall be limited to, the actual knowledge of the individuals listed on Schedule 1.01 hereto. 

          “Lazard” means Lazard Middle Market LLC. 

3

 

          “Material Adverse Effect” means a material adverse effect which has occurred to the financial condition or results of operations of the Company and the Subsidiaries on a consolidated basis; provided, that for purposes of this Agreement, a Material Adverse Effect shall not include the effect of (a) changes to the industry or markets in which the business of the Company or any Subsidiary operates that are not unique to such business, (b) the announcement or disclosure of the transactions contemplated herein, (c) general economic, regulatory or political conditions or changes, (d) changes in or the condition of financial, banking or securities markets (including any disruption thereof and any decline in the price of any security or any market index), (e) military action or any act of terrorism, (f) changes in Law or GAAP after the date hereof, (g) compliance with the terms of this Agreement or any request of the Buyer, (h) actions taken or to be taken in connection with the sale of the Shares, (i) a flood, hurricane, earthquake or other natural disaster, or (j) the failure of the Company or any Subsidiary to meet or achieve the results set forth in any internal projection, or (k) any matter set forth in Schedule 3.06, Schedule 3.08, Schedule 3.12, items 9, 10 or 11 of Schedule 3.19, or Schedule 3.21. The Buyer acknowledges that there could be a disruption to the Company or any Subsidiary’s business as a result of the execution of this Agreement, the announcement by the Buyer of its intention to purchase the Company or the announcement of the Stockholders of their intention to sell the Company, and the consummation of the transactions contemplated hereby, and the Buyer agrees that such disruptions do not and shall not constitute a Material Adverse Effect. 

          “Net Working Capital” means, subject to the exceptions and qualifications, if any, set forth on Schedule 2.01(f) hereto, the excess of (a) the Company’s current assets (excluding Cash, Tax assets and the Payable Amount), over (b) the Company’s current liabilities (excluding Tax liabilities and Indebtedness). 

          “Net Working Capital Amount” means the Net Working Capital of the Company as of the close of business on the date immediately preceding the Closing Date. 

          “Options” shall mean all options to purchase Common Stock of the Company validly issued under the Stock Incentive Plan which are vested and exercisable (or will become vested and exercisable as a result of the transactions contemplated hereby) and which are outstanding immediately prior to the Closing. 

          “Payables Amount” means the aggregate amount of all accounts payable owed by the Buyer or any of its Affiliates to the Company or any of its Subsidiaries as of the Closing Date. 

          “Permitted Liens” means any (i) Liens in respect of Taxes and other government charges and assessments the validity of which is being contested in good faith by appropriate proceedings or Liens in respect of Taxes and other government charges and assessments not yet due and payable or which can be paid currently with no penalty; (ii) landlords’, lessors’, warehousemens’, employees’, materialmens’, mechanics’, carriers’, workmen’s, repairmen’s, statutorily imposed or other like Liens arising or incurred in the ordinary course of business for amounts not yet due and payable; (iii) Liens arising under original purchase price conditional sales contracts and equipment leases with third parties that are contracts entered into in connection with the Company or any Subsidiary; (iv) limitations on the rights of the Company or any Subsidiary under any Contract or Real Property Lease that are expressly set forth in such contract or lease; (v) survey exceptions, imperfections of title, Liens or other title matters affecting any tangible asset owned by the Company or any Subsidiary that would not, individually or in the aggregate, impair the occupancy or current use of the tangible asset they encumber; (vi) Liens and other similar restrictions of record identified in any title reports obtained by or made available to Buyer; (vii) with respect to the Leased Real Property, zoning, building codes and other land use Laws regulating the use or occupancy of such Leased Real Property or the activities conducted thereon that are imposed by any Governmental Authority having jurisdiction over such Leased Real Property and do not materially interfere with the present use of the Leased Real Property; (viii) any and all service contracts and agreements affecting any tangible asset owned by the Company or any Subsidiary; (ix) Liens securing Indebtedness to be repaid and released in connection with the Closing; (x) with respect to Shares or Options, restrictions on transfer under applicable securities Laws, the Stock Incentive Plan, or the Stockholders’ Agreement; (xi) Liens that secure 

4

 

obligations reflected as liabilities in the Financial Statements (or the existence of which is referred to in the notes accompanying the Audited Financial Statements); (xii) deposits or pledges to secure the payment of workers’ compensation, unemployment insurance, social security benefits or obligations arising under similar laws, or to secure the performance of public or statutory obligations, surety or appeal bonds, and other obligations of a like nature; (xiii) Liens which are being contested in good faith solely to the extent of any reserve included in the calculation of Net Working Capital hereunder; and (xiv) Liens which, individually or in the aggregate, do not materially detract from the value, or materially interfere with the present use, of the Company’s tangible personal property. 

          “Person” means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a government or political subdivision or any agency or instrumentality thereof. 

          “Reference Date” means October 14, 2005. 

          “Securityholder Allocation Percentage” means (A) with respect to each Stockholder, the quotient determined by dividing (i) the number of Shares held by such Stockholder immediately prior to the Closing by (ii) the Fully Diluted Number of Shares, and (B) with respect to each Optionholder, the quotient determined by dividing (i) the number of shares of Common Stock such Optionholder could have purchased if such Optionholder had exercised such Optionholder’s Options in full immediately prior to the Closing by (ii) the Fully Diluted Number of Shares. The initial Securityholder Allocation Percentage for each Securityholder is set forth on Exhibit Ahereto, which exhibit may be updated and delivered to the Buyer in connection with the deliveries to be made pursuant to Section 2.01. Notwithstanding the foregoing, the Securityholder Representative shall have the right and authority to equitably adjust the Securityholder Allocation Percentages of the Securityholders with respect to the amounts to be released to the Securityholders from the Reserve Account in connection with the payment of Losses resulting from breaches of a particular Securityholder’s representations, warranties, covenants or agreements hereunder. 

          “Stock Incentive Plan” shall mean the Company’s Stock Incentive Plan dated December 31, 2008. 

          “Stockholders’ Agreement” means that certain Stockholders’ Agreement dated as of October 14, 2005, by and among the Company and the Stockholders party thereto, as amended. 

          “Subsidiary” means any entity, the securities or other ownership interests of which are directly or indirectly owned by the Company. 

          “Target Working Capital Amount” means $3,747,145.33. 

          “Tax” means any federal, state, local or foreign income, gross receipts, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property, ad valorem/personal property, stamp, excise, occupation, sales, use, transfer, value added, alternative minimum, estimated or other tax, assessment, duty, fee, levy or other governmental charge, including any interest, penalty or addition thereto. 

          “Tax Returns” means any return, report, information return or other document (including schedules or any related or supporting information) filed or required to be filed with any Governmental Authority or other authority in connection with the determination, assessment or collection of any Tax or the administration of any Laws relating to any Tax. 

5

 

          “Transaction Expenses” means the fees, costs or expenses incurred by any Securityholder, the Company or any Subsidiary in connection with the sale of the Shares or the cancellation of the Options and set forth on Exhibit B hereto (as the same may be updated on or prior to the Closing Date), including all fees and expenses of Lazard but excluding Antitrust Approval Fees. 

          “Transaction Tax Benefit Amount” means the amount obtained by multiplying (A) the sum of (i) all of the Optionholder Closing Payment Amounts for all Optionholders, (ii) payments under deferred compensation arrangements and (iii) any other deductible Transaction Expenses by (B) 39.6%. 

          “Treasury Regulations” means the regulations promulgated under the Code. Any reference in this Agreement to Treasury Regulations are intended to refer to such regulations and to such regulations as they may be amended and to any corresponding provision or provisions of succeeding Law. 

6

 

     Section 1.02. Cross-References to Other Defined Terms. Each term listed below is defined in the Section of this Agreement listed opposite such term: 

 

	
Term 
	
 
	
Section 

	
Agreement 

 
	
 
	
Preface

	
AP 

 
	
 
	
Section 8.06

	
Approvals 

 
	
 
	
Section 3.18

	
Assignee 

 
	
 
	
Section 12.05

	
Audited Financial Statements 

 
	
 
	
Section 3.09(a)(i)

	
Buyer 

 
	
 
	
Preface

	
Buyer’s Representatives 

 
	
 
	
Section 7.01

	
Closing 

 
	
 
	
Section 2.03(a)

	
Closing Date 

 
	
 
	
Section 2.03(a)

	
Collateral Source 

 
	
 
	
Section 11.02(e)

	
Company 

 
	
 
	
Preface

	
Confidentiality Agreement 

 
	
 
	
Section 7.01

	
Contracts 

 
	
 
	
Section 3.16

	
Draft Computation 

 
	
 
	
Section 2.04(a)

	
Environmental Requirement(s) 

 
	
 
	
Section 3.21

	
ERISA 

 
	
 
	
Section 3.19(b)

	
Estimated Purchase Price 

 
	
 
	
Section 2.01

	
Financial Statements 

 
	
 
	
Section 3.09(a)(ii)

	
Firm 

 
	
 
	
Section 2.04(a)

	
Fundamental Representations 

 
	
 
	
Section 11.01

	
Governmental Authority 

 
	
 
	
Section 3.04

	
Indemnified Representative 

 
	
 
	
Section 7.04

	
Indemnitee 

 
	
 
	
Section 11.02(d)

7

 

	
Term 
	
 
	
Section 

	
Indemnitors 

 
	
 
	
Section 11.02(d)

	
Initial Reserve Amount 

 
	
 
	
Section 2.05

	
Joinder Agreements 

 
	
 
	
Preface

	
Judicial Action 

 
	
 
	
Section 12.08

	
Latest Balance Sheet 

 
	
 
	
Section 3.09(a)(ii)

	
Laws 

 
	
 
	
Section 3.04

	
Leased Real Property; Leased Real Properties 

 
	
 
	
Section 3.11(b)

	
Liens 

 
	
 
	
Section 3.14

	
Loss; Losses 

 
	
 
	
Section 11.02

	
Objection Notice 

 
	
 
	
Section 2.04(a)

	
Optionholder; Optionholders 

 
	
 
	
Preface

	
Optionholder Closing Payment Amount 

 
	
 
	
Section 2.02(b)

	
Panel 

 
	
 
	
Section 12.07(b)

	
PB 

 
	
 
	
Section 2.03(a)

	
Purchase Price 

 
	
 
	
Section 2.01

	
Real Property Lease; Real Property Leases 

 
	
 
	
Section 3.11(a)

	
Reserve Account 

 
	
 
	
Section 2.05

	
Schedule; Schedules 

 
	
 
	
Article 3 Preamble

	
Securityholder; Securityholders 

 
	
 
	
Preface

	
Securityholder Representative 

 
	
 
	
Section 11.04(a)

	
Securityholder Working Capital Payment 

 
	
 
	
Section 2.04(b)(ii)

	
Shares 

 
	
 
	
Preliminary Statement A

	
Stockholder; Stockholders 

 
	
 
	
Preface

	
Stockholder Closing Payment Amount 

 
	
 
	
Section 2.02(a)

	
Survival Period 

 
	
 
	
Section 11.01

8

 

	
Term 
	
 
	
Section 

	
Tax and ERISA Representations 

 
	
 
	
Section 11.01

	
Tax Benefit 

 
	
 
	
Section 11.02(e)

	
Terminating Agreements 

 
	
 
	
Section 12.14

	
Third Party Claim 

 
	
 
	
Section 11.02(d)

	
Unaudited Financial Statements 

 
	
 
	
Section 3.09(a)(ii)

	
Updated Schedules 

 
	
 
	
Section 6.03

ARTICLE 2 
PURCHASE AND SALE 

     Section 2.01. Estimated Purchase Price. At least two (2) Business Days prior to the Closing Date, the Company shall deliver to the Buyer the Company’s good faith estimate, on a reasonable basis using the Company’s then available financial information, of the Purchase Price (such estimate is referred to as the “Estimated Purchase Price”) and the initial Securityholder Allocation Percentage for each Securityholder. The Estimated Purchase Price, and each component thereof, shall be determined on a consolidated basis using the same accounting methods, policies, principles, practices and procedures, with consistent classifications, judgments and estimation methodology, as were used in preparation of the Latest Balance Sheet or, to the extent applicable, in accordance with any changes to such accounting methods, policies, principles, practices and procedures which are documented in the Company’s books and records prior to the Closing. The amount of the Estimated Purchase Price payable to each Securityholder is set forth on Exhibit A hereto, which exhibit may be updated and delivered to the Buyer in connection with the deliveries to be made pursuant to this Section 2.01. For purposes of this Agreement, “Purchase Price” means an amount equal to: 

          (a) $250,000,000, 

          (b) plus the Cash Amount, 

          (c) plus the Payables Amount, 

          (d) minus the Indebtedness Amount, 

          (e) plus the Transaction Tax Benefit Amount, 

          (f) (i) plus the excess of the Net Working Capital Amount over the Target Working Capital Amount, if any, or (ii) minus the excess of the Target Working Capital Amount over the Net Working Capital Amount, 

          (g) minus the amount of the Transaction Expenses, 

          (h) plus the amount of the Antitrust Approval Fees. 

9

 

     Section 2.02. Purchase and Sale of the Shares; Payment of Options. 

          (a) Purchase and Sale of Shares. As of the Closing, upon the terms and subject to the conditions set forth in this Agreement, each Stockholder shall sell, assign, transfer and convey to the Buyer, and the Buyer shall purchase and acquire from each such Stockholder, all of the Shares held by such Stockholder. Subject to Section 2.04, the purchase price to be paid by the Buyer to each Stockholder for the Shares held by such Stockholder shall consist of a payment at the Closing, by wire transfer of immediately available funds to the account of such Stockholder set forth on Exhibit A hereto (as the same may be updated prior to Closing), of an amount of cash equal to the result of (A) the Estimated Purchase Price multiplied by such Stockholder’s Securityholder Allocation Percentage, minus (C) the Initial Reserve Amount multiplied by such Stockholder’s Securityholder Allocation Percentage (with respect to a Stockholder, such Stockholder’s “Stockholder Closing Payment Amount”). 

          (b) Cash Out of the Options. As of the Closing and simultaneously with the payment to the Stockholders of the Stockholder Closing Payment Amounts, upon the terms and subject to the conditions set forth in this Agreement (including Section 2.04), the Buyer shall pay, or irrevocably cause the Company to pay (by providing funds to the Company or otherwise), to each Optionholder, in cancellation of such Optionholder’s Options, an amount in cash equal to the excess of (i) the result of (A) the Estimated Purchase Price multiplied by such Optionholder’s Securityholder Allocation Percentage, minus (B) the Initial Reserve Amount multiplied by such Optionholder’s Securityholder Allocation Percentage, over (ii) the aggregate exercise price such Optionholder would have paid if such Optionholder had exercised all such Options immediately prior to the Closing (with respect to an Optionholder, such Optionholder’s “Optionholder Closing Payment Amount”), less all applicable withholding Taxes. Each Optionholder agrees that he or she will not exercise his or her Option at or prior to the Closing, and that upon the payment by the Company or the Buyer to such Optionholder of the Optionholder Closing Payment Amount, less all applicable withholding Taxes, the Options held by such Optionholder will be cancelled and of no further force and effect. 

     Section 2.03. The Closing.

          (a) The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Patton Boggs LLP (“PB”) in Dallas, Texas, at 10:00 a.m. on the third (3rd) Business Day following full satisfaction or due waiver of all of the closing conditions set forth in Article 9 hereof (other than those to be satisfied at the Closing) or on such other date as is mutually agreeable to the Buyer and Securityholder Representative. The date of the Closing is referred to herein as the “Closing Date.” 

          (b) Upon the terms and subject to the conditions set forth in this Agreement, the parties hereto shall consummate the following transactions as of the Closing: 

          (i) each Stockholder shall deliver to the Buyer all of the stock certificates representing the Shares held by such Stockholder duly endorsed for transfer or accompanied by duly executed stock powers (or other form of assignment or transfer) or a duly executed lost stock affidavit in a form reasonably acceptable to the Buyer and the Company; 

          (ii) the Buyer shall deliver to each Stockholder, by wire transfer of immediately available funds to the account designated by such Stockholder, cash in an amount equal to such Stockholder’s Stockholder Closing Payment Amount; 

          (iii) the Buyer shall pay to each such Optionholder, by wire transfer of immediately available funds to the account designated by such Optionholder, an amount equal to such Optionholder’s Optionholder Closing Payment Amount, less all applicable withholding Taxes; 

10

 

          (iv) the Buyer shall deliver to the Securityholder Representative, for the benefit of the Securityholders in accordance with their respective Securityholder Allocation Percentages, by wire transfer of immediately available funds to the Reserve Account, cash in an amount equal to the Initial Reserve Amount; 

          (v) the Buyer shall pay on behalf of the Company and the Subsidiaries, all Indebtedness of the Company and the Subsidiaries set forth on Schedule 2.03(b)(v) hereto in accordance with the payoff letters and other payment instructions provided by the Company or the Securityholder Representative; 

          (vi) the Buyer shall pay on behalf of the Company and the Securityholders, the Transaction Expenses set forth on Exhibit B hereto; and 

          (vii) the Buyer, the Company and the Securityholders shall make such other deliveries as are required by and in accordance with Article 9 hereof. 

     Section 2.04. Post-Closing Adjustment. 

          (a) Post-Closing Determination. Within forty-five (45) days after the Closing Date, the Buyer and its auditors shall prepare and deliver to the Securityholder Representative (i) the Buyer’s determinations of the Cash Amount, the Indebtedness Amount, and the Net Working Capital Amount, and (ii) the Buyer’s calculation of the Purchase Price (collectively, the “Draft Computation”). The Draft Computation shall be prepared and the Cash Amount, the Indebtedness Amount, and the Net Working Capital Amount shall be determined on a consolidated basis using the same accounting methods, policies, principles, practices and procedures, with consistent classifications, judgments and estimation methodology, as were used in preparation of the Latest Balance Sheet or, to the extent applicable, in accordance with any changes to such accounting methods, policies, principles, practices and procedures which are documented in the Company’s books and records prior to the Closing, and shall not include any changes in assets or liabilities as a result of purchase or other non-cash accounting adjustments or other changes arising from or resulting as a consequence of the transactions contemplated hereby. The parties agree that the purpose of preparing the Draft Computation and determining the Cash Amount, the Indebtedness Amount, and the Net Working Capital Amount and the related purchase price adjustment contemplated by this Section 2.04 is to measure the amount of Cash and Indebtedness and changes in Net Working Capital, and such processes are not intended to permit the introduction of different judgments, accounting methods, policies, principles, practices, procedures, classifications or estimation methodologies for the purpose of preparing the Draft Computation or determining Cash, Indebtedness or Net Working Capital. The Company and its auditors will make available to the Buyer and its auditors, employees and advisors all records and work papers used in preparing the Estimated Purchase Price. The Buyer and its auditors will make available to the Securityholder Representative and its auditors, employees and advisors all records and work papers used in preparing the Draft Computation and will prepare and deliver to the Securityholder Representative a detailed analysis of the changes behind any material variance(s) between the Buyer’s determination of the Cash Amount, the Indebtedness Amount and the Net Working Capital Amount, and the corresponding estimates of such amounts as determined by the Company pursuant to Section 2.01 hereof. If the Securityholder Representative disagrees with any aspect of the Draft Computation, the Securityholder Representative may, within forty-five (45) days after receipt of the Draft Computation, deliver a notice (an “Objection Notice”) to the Buyer setting forth the Securityholder Representative’s determination of the Cash Amount, the Indebtedness Amount, and/or the Net Working Capital Amount and the Securityholder Representative’s calculation of the Purchase Price. If the Securityholder Representative does not deliver an Objection Notice to the Buyer within forty-five (45) days after receipt of the Draft Computation, then the parties hereto will be deemed to have agreed to the Draft Computation and the components of such Draft Computation shall be deemed to be finally determined as set forth therein. The Buyer and the Securityholder Representative shall use reasonable efforts to resolve any disagreements as to the Draft 

11

 

Computation and the Objection Notice, but if they do not obtain a final resolution within forty-five (45) days after the Buyer has received the Objection Notice, the Buyer and the Securityholder Representative shall jointly retain Grant Thornton LLP or such other accounting firm acceptable to the Buyer and the Securityholder Representative (the “Firm”) to resolve any remaining disagreements. The Buyer and the Securityholder Representative shall direct the Firm to render a determination within thirty (30) days after its retention and the Buyer, the Securityholder Representative and their respective agents shall cooperate with the Firm during its engagement. The Firm will act as an expert and not as an arbitrator in conducting its analysis and may consider only those items and amounts in the Draft Computation or Objection Notice which the Buyer and the Securityholder Representative are unable to resolve. In resolving any disputed item, the Firm may not assign a value to any item greater than the greatest value for such item claimed by either party or less than the smallest value for such item claimed by either party. The Firm’s determination shall be based solely on written submissions by the Buyer and the Securityholder Representative (i.e., not on independent review) and on the definitions included herein. The determination of the Firm shall be conclusive and binding upon the Buyer, the Securityholder Representative and the Securityholders. Until the Firm makes its determination, the costs and expenses of the Firm shall be borne equally by the Buyer, on the one hand, and the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages), on the other hand; provided, that when the Firm makes its determination, any costs and expenses (including costs and expenses previously advanced) shall be allocated between the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages), on the one hand, and the Buyer, on the other hand, based upon the percentage that the portion of the contested amount not awarded to each party bears to the amount actually contested by such party. For example, if the Securityholder Representative claims the Net Working Capital Amount is $1,000 greater than the amount determined by the Buyer, and the Buyer contests only $500 of the amount claimed by the Securityholder Representative, and if the Firm ultimately resolves the dispute by awarding the Securityholders $300 of the $500 contested, then the costs and expenses of the Firm will be allocated 60% (i.e., 300 ÷ 500) to the Buyer and 40% (i.e., 200 ÷ 500) to the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages). 

          (b) Post-Closing Adjustment. 

          (i) Payment by the Buyer. If the Purchase Price as finally determined pursuant to Section 2.04(a) exceeds the Estimated Purchase Price by more than $250,000, then within five (5) Business Days after such final determination, the Buyer shall pay to the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages), by wire transfer or delivery of other immediately available funds, an amount equal to the amount by which such excess exceeds $250,000; provided, however, that in lieu of any distribution of such amount to the Securityholders, the Securityholder Representative, in its sole discretion, may retain all or any portion of such amounts as part of the Reserve Account. 

          (ii) Payment by the Securityholders. If the Purchase Price as finally determined pursuant to Section 2.04(a) is less than the Estimated Purchase Price, then within five (5) Business Days after the determination thereof, the Securityholder Representative shall pay to the Buyer from the Reserve Account an amount equal to the amount by which such excess exceeds $250,000 (the amount of such excess, the “Securityholder Working Capital Payment”) and, in the event that the Reserve Account is insufficient to pay the full amount of the Securityholder Working Capital Payment, then each Securityholder shall promptly pay to Buyer by wire transfer or delivery of other immediately available funds, an amount equal to (i) the unpaid portion of the Securityholder Working Capital Payment multiplied by (ii) such Securityholder’s Securityholder Allocation Percentage. 

12

 

     Section 2.05. Reserve Account. At Closing, the Securityholder Representative shall retain from the Estimated Purchase Price the sum of One Million Dollars ($1,000,000) (the “Initial Reserve Amount”) for deposit into a bank account controlled by the Securityholder Representative (together with any amount retained by the Securityholder Representative pursuant to Section 2.04(b)(i), the “Reserve Account”). All amounts on deposit in the Reserve Account, including any earnings thereon, shall be available to the Securityholder Representative to cover costs and expenses incurred by the Securityholder Representative in the performance of its obligations as Securityholder Representative, including, without limitation, costs and expenses, if any, incurred by the Securityholder Representative (i) in resolving any adjustments pursuant to Section 2.04, (ii) in defending any indemnification claims brought under Article 11hereof, and (iii) in paying any amounts (including fees, costs and expenses) otherwise payable by the Securityholders to the Buyer or the Securityholder Representative pursuant to the terms hereof. Amounts in the Reserve Account may also be applied by the Securityholder Representative as permitted in accordance with Section 11.04. 

ARTICLE 3 
REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

          The Company represents and warrants to the Buyer that each statement contained in this Article 3 is correct and complete, except as set forth in the Schedules accompanying this Agreement or in any Updated Schedule delivered pursuant to Section 6.03 (each a “Schedule” and, collectively, the “Schedules”). Capitalized terms used in the Schedules and not otherwise defined therein shall have the meanings ascribed to such terms in this Agreement. 

     Section 3.01. Organization and Qualification. 

          (a) The Company and each of the Subsidiaries are corporations duly organized, validly existing and, where applicable, in good standing under the Laws of their respective jurisdictions of organization. The Company and each of its Subsidiaries have full corporate power and authority to own or lease their respective properties and to conduct their businesses in the manner and in the places where such properties are owned or leased and where such businesses are currently conducted, except where the failure to have such power and authority would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The copies of the Company’s and the Subsidiaries’ respective certificates or articles of incorporation and bylaws, as each have been amended to date and heretofore made available to the Buyer and/or its agents, are complete and correct, and no amendments thereto are pending. 

          (b) The Company and each of the Subsidiaries are duly licensed and qualified to do business and in good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business makes such licensing or qualification to do business necessary, except where the failure to be so licensed or qualified would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

     Section 3.02. Capitalization; Subsidiaries; Securities Owned. 

          (a) The authorized capital stock of the Company consists of 1,000,000 shares of Common Stock, 36,040 shares of which are issued and outstanding as of the date hereof. Schedule 3.02hereto sets forth (i) all of the holders of the Company’s issued and outstanding Shares and Options, and (ii) the number of Shares and Options held by each such holder. All of the Shares have been duly authorized, are validly issued, fully paid and nonassessable, and are neither subject to, nor were they issued in violation of, any preemptive rights. The Company is the sole owner, directly or indirectly, of 100% of the outstanding capital stock of each of the Subsidiaries which are listed on Schedule 3.02 hereto. The ownership and capitalization of each of the Subsidiaries is as set forth on Schedule 3.02 hereto. Other than the shares the Company owns in the Subsidiaries, the Company does not own any capital stock or other equity securities issued by any 

13

 

other Person (other than Cash). Except for this Agreement, the Options, as contemplated by the Stock Incentive Plan, the rights and restrictions set forth in the Stockholders’ Agreement or as set forth on Schedule 3.02 hereto, there are no outstanding or authorized options, warrants, rights, contracts, rights to subscribe, conversion rights, preemptive rights, or other agreements or commitments to which the Company or any Subsidiary is a party or which are binding upon the Company or any Subsidiary providing for the issuance, disposition or acquisition of any shares of capital stock of the Company or any Subsidiary. Except as set forth on Schedule 3.02, the outstanding capital stock of each Subsidiary is free and clear of any Lien, except for Permitted Liens. 

          (b) Except as set forth on Schedule 3.02: 

          (i) there are no outstanding or authorized stock appreciation, phantom stock, profit participation or similar rights with respect to the Company or any Subsidiary; 

          (ii) except as set forth in the Stockholders’ Agreement, there are no voting trusts, proxies or other written agreements or understandings with respect to the voting of the capital stock of the Company or any Subsidiary; 

          (iii) there are no dividends which have accrued or been declared but are unpaid on any of the Shares or the capital stock of any Subsidiary; and 

          (iv) except as set forth in the Stockholders’ Agreement, there are no shareholder or similar agreements which affect or restrict the voting rights or right to transfer any of the Shares or the capital stock of any Subsidiary, and there are no registration rights or similar agreements with respect to the Company or any Subsidiary in force or effect. 

     Section 3.03. Authority of the Company.

          (a) The Company has the full right, power and authority to enter into this Agreement and each agreement, document and instrument to be executed and delivered by it pursuant to or as contemplated by this Agreement and to carry out the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the performance of the Company’s obligations hereunder have been duly authorized by all necessary corporate action on the part of the Company. This Agreement and each agreement, document and instrument to be executed and delivered by the Company pursuant to this Agreement constitute, or will when executed and delivered constitute, valid and binding obligations of the Company, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). 

          (b) The execution, delivery and performance by the Company of this Agreement and each such agreement, document and instrument contemplated by this Agreement to which it is a party: 

          (i) do not and will not violate any provision of the certificate of incorporation or bylaws of the Company or the equivalent governing documents of any Subsidiary; 

          (ii) subject to the Antitrust Approvals, do not and will not violate any Laws of the United States, or any state or other jurisdiction applicable to the Company or any Subsidiary, or require the Company to obtain any Approval, consent or waiver of, or make any filing with, any Person (including any Governmental Authority) that has not been obtained or made, which violation or failure to obtain or make would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and 

14

 

          (iii) do not and will not result in a breach of, constitute a default under, accelerate any obligation under, or give rise to a right of termination of any indenture, loan or credit agreement, or any other agreement, contract, instrument, mortgage, deed of trust, lien, lease, permit, authorization, order, writ, judgment, injunction, decree, determination or arbitration award, whether written or oral, to which the Company or any Subsidiary is a party or by which the property of the Company or any Subsidiary is bound, except where any of the foregoing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or except as otherwise set forth on Schedule 3.03(b)(iii)hereto. 

     Section 3.04. Compliance with Laws. Except as set forth on Schedule 3.04 hereto, and except with respect to the subject matter of the representations and warranties set forth in Section 3.06 (Taxes), Section 3.15 (Intellectual Property), Section 3.18(Permits), Section 3.19 (Employee Benefit Plans), Section 3.21 (Environmental Matters), and Section 3.22 (Employee Relations), the Company and each of the Subsidiaries are in material compliance with all applicable statutes, ordinances, orders, rules and regulations (“Laws”) promulgated by any federal, state, territory, municipal or other governmental authority (each, a “Governmental Authority”), which are necessary for the operation of the business of the Company or such Subsidiary as presently conducted. 

     Section 3.05. Advisory and Other Fees. Neither the Company nor any of the Subsidiaries has incurred or shall become liable for any advisory fee, broker’s commission or finder’s fee relating to or in connection with the transactions contemplated by this Agreement, other than fees payable to Lazard and ACAS, which fees shall be paid as provided in Section 12.04, and other than the Transaction Expenses. 

     Section 3.06. Taxes. Except as set forth on Schedule 3.06 hereto: 

          (a) (i) since the Reference Date, all United States federal income Tax Returns of or with respect to the Company and the Subsidiaries required by Law to be filed have been timely filed (after giving effect to any applicable extensions granted) and all other material Tax Returns of or with respect to the Company and the Subsidiaries required by applicable federal, foreign, state, local or other Law to be filed have been timely filed (after giving effect to any applicable extensions granted); 

          (ii) since the Reference Date, the Company and each of the Subsidiaries have timely paid or caused to be paid as of the date hereof all Taxes shown as due on the Tax Returns referred to in Section 3.06(a)(i), except to the extent such Taxes are being contested in good faith by the Company or a Subsidiary or are properly reserved for on the books or records of the Company or such Subsidiary; and 

          (iii) since the Reference Date, there has not been any audit of any Tax Return filed by or with respect to the Company or any Subsidiary for which the applicable statute of limitations has not expired; no audit of any such Tax Return of or including the Company or any Subsidiary is in progress; and neither the Company nor any Subsidiary has been notified in writing by any Governmental Authority that any audit is contemplated or pending. Since the Reference Date, no written claim has been made by any Governmental Authority in a jurisdiction where the Company or any Subsidiary does not file Tax Returns that the Company or such Subsidiary is or may be subject to taxation by that jurisdiction. 

          (b) Neither the Company nor any Subsidiary is a party to, bound by or has any obligation under any agreement relating to allocating or sharing the payment of, or liability for, Taxes or has any liability for Taxes of any Person other than members of the affiliated group, within the meaning of Section 1504(a) of the Code, filing consolidated federal income tax returns of which the Company is the common parent under Treasury Regulation § 1.1502-6 (or a similar provision of state, local or foreign Law), as a transferee or successor, by contract or otherwise. 

15

 

          (c) No closing agreement pursuant to Section 7121 of the Code or any similar provision of any state, local or foreign Law has been entered into by or with respect to the Company or any Subsidiary. Neither the Company nor any Subsidiary has agreed to, or is required to make any adjustment for, any period after the Closing Date pursuant to Section 481(a) of the Code by reason of any change in any accounting method. There is no application pending with any Governmental Authority requesting permission for any such change in any accounting method of the Company or any Subsidiary and the Internal Revenue Service has not proposed in writing any such adjustment or change in accounting method. 

     Section 3.07. Officers and Directors; Books and Records.

          (a) Schedule 3.07(a) hereto sets forth the name and title of each officer and director of the Company and each Subsidiary. 

          (b) The copies of the records of the Company and the Subsidiaries, as made available by the Company to the Buyer and/or its agents, are true and complete copies of the originals of such documents. 

     Section 3.08. Litigation. Schedule 3.08 hereto sets forth each continuing action, suit, investigation and other proceeding pending or, to the Company’s Knowledge, threatened against the Company or any of the Subsidiaries, at law or in equity, or before or by any Governmental Authority (including any action, suit, investigation or proceeding (i) regarding the existence of a defect in the manufacture, production, distribution or sale of any products made or sold by or on behalf of the Company or any Subsidiary, or (ii) against or relating to any Employee Benefit Plan), other than workers’ compensation claims and routine claims for benefits under the Company’s Employee Benefit Plans, which would not reasonably be expected to have a Material Adverse Effect, and any action, suit, investigation or proceeding that is reasonably expected to be covered by insurance. Except as set forth on Schedule 3.08, neither the Company nor any Subsidiary is a party to any judgment, order or decree of any court, administration agency, commission or other Governmental Authority. 

     Section 3.09. Financial Statements.

          (a) The Company has delivered to the Buyer the following financial statements, attached as Schedule 3.09(a) hereto: 

          (i) audited consolidated balance sheet of the Company and the Subsidiaries as of December 31, 2010 and audited consolidated statements of operations, stockholders’ equity, and cash flows for the fiscal year then ended (collectively, the “Audited Financial Statements”); and 

          (ii) unaudited consolidated balance sheets of the Company and the Subsidiaries as of June 30, 2011 (the “Latest Balance Sheet”), and the related statements of operations and cash flows for the fiscal year and the six (6) months then ended (collectively, the “Unaudited Financial Statements” and, together with the Audited Financial Statements, the “Financial Statements”). 

          (b) The Audited Financial Statements have been prepared in accordance with GAAP applied consistently during the periods covered thereby, and present fairly in all material respects the financial condition of the relevant entities at the dates of said statements and the results of their operations and cash flows for the periods covered thereby. The Unaudited Financial Statements have been prepared in accordance with GAAP applied consistently during the period covered thereby, and present fairly in all material respects the financial condition of the Company and the Subsidiaries at the date of such statements and the results of their operations and cash flows for the period covered thereby, except that they do not contain the materials and disclosures to be found in notes to financial statements prepared in accordance with GAAP, nor do they reflect year-end adjustments. 

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          (c) Except as set forth on Schedule 3.09(c) hereto, neither the Company nor any Subsidiary has any liabilities that would be required to be reflected on a balance sheet prepared in accordance with GAAP, except for (i) liabilities reflected or reserved against on the Latest Balance Sheet (including all notes thereto); (ii) liabilities incurred in the ordinary course of business since the date of the Latest Balance Sheet; (iii) liabilities incurred in connection with the transactions contemplated hereby; (iv) liabilities arising under Contracts or other matters otherwise set forth in the Schedules hereto; and (iv) the Transaction Expenses. 

     Section 3.10. Transactions with Affiliates. Except (i) for intra-company transactions amongst the Company and the Subsidiaries, (ii) transactions, agreements, contracts or understandings between ACAS, ACEI or ACEII and the Company or any Subsidiary or which otherwise relate to the purchase, transfer or voting of securities, in each case, which will be terminated as of the Closing, (iii) the Company’s or any Subsidiary’s organizational documents, (iv) as set forth on Schedule 3.10 hereto, and (v) to the extent reflected in the Financial Statements, since the date of the Latest Balance Sheet there have been no material transactions, contracts, understandings or agreements of any kind between the Company or any Subsidiary and any Person which is an Affiliate of the Company or such Subsidiary. 

     Section 3.11. Real Properties. 

          (a) The Company owns no real property. 

          (b) Schedule 3.11(b) hereto sets forth each lease or other agreement under which the Company or any Subsidiary leases or has rights to use any material real property owned by a Person other than the Company or a Subsidiary (the “Real Property Leases” and, each individually, a “Real Property Lease”). The Real Property Leases are in full force and effect and (i) the Company or the applicable Subsidiary, as the case may be, has not defaulted thereunder and (ii) to the Knowledge of the Company, no event has occurred that with notice or lapse of time, or both, would constitute a default by the Company or the applicable Subsidiary, as the case may be, which would reasonably be expected to result in a termination of the applicable Real Property Lease. True and complete copies of the Real Property Leases have been made available to the Buyer and/or its agents by the Company. Except as set forth on Schedule 3.11(b) hereto, the Company or a Subsidiary has a valid and subsisting leasehold interest in all the real property which is the subject of each of the respective Real Property Leases set forth on Schedule 3.11(b) hereto (individually, the “Leased Real Property” and, collectively, the “Leased Real Properties”). 

          (c) To the Knowledge of the Company, no material permit, license or certificate of occupancy pertaining to the leasing or operation of any Leased Real Property, other than those which are transferable with such property, is required by any Governmental Authority. 

     Section 3.12. Absence of Material Adverse Effect. Except as set forth on Schedule 3.12 hereto, since the date of the Latest Balance Sheet, there has not been any Material Adverse Effect. 

     Section 3.13. Absence of Certain Changes. Except as set forth on Schedule 3.13hereto, or as contemplated by this Agreement, the Company and each Subsidiary have complied in all material respects with the covenants and restrictions set forth in Section 6.01 hereof to the same extent as if this Agreement had been executed on, and had been in effect since, the date of the Latest Balance Sheet. 

     Section 3.14. Tangible Personal Property. Except as set forth on Schedule 3.14hereto, (a) the Company or a Subsidiary has valid title to or a valid license or leasehold interest in all of the material items of tangible personal property reflected on the Latest Balance Sheet, except as sold or disposed of subsequent to the date thereof in the ordinary course of business consistent with past practices, and (b) all such tangible personal property (other than licensed or leased tangible property) is owned or, in the case of licensed or leased tangible personal property, the Company or the applicable Subsidiary has a valid license or leasehold 

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interest in such tangible personal property, in each case free and clear of all liens, encumbrances, contracts and security interests (collectively, “Liens”), except for Permitted Liens. Except as set forth on Schedule 3.14 hereto, to the Knowledge of the Company, the facilities, plants, machinery and equipment of the Company and the Subsidiaries are in good working order and condition, ordinary wear and tear excepted and subject to routine maintenance, and are fit for the purpose for which they are currently being used. 

     Section 3.15. Intellectual Property. Schedule 3.15 hereto sets forth all patents, trademark registrations, service mark registrations, trade names, domain name registrations, copyright registrations, and all applications for any of the foregoing, that are material to the business of the Company and its Subsidiaries and that are owned by the Company or any Subsidiary. To the Knowledge of the Company, no intellectual property is owned by a third party that is necessary for the operation of the Company’s business (other than such intellectual property currently licensed by the Company or one of its Subsidiaries). Except as set forth on Schedule 3.15 hereto, since the Reference Date, neither the Company nor any Subsidiary has received any written notice of infringement of or conflict with asserted rights of others with respect to any know-how, trade secrets, patents, trademarks, trade names, brand names and copyrights that are owned or used by, or licensed to, the Company or any Subsidiary. Except as set forth on Schedule 3.15 hereto, the Company does not have Knowledge of any material infringement or misappropriation by the Company of any third party’s material intellectual property. Except as set forth on Schedule 3.15 hereto, the Company does not have Knowledge of any material infringement or misappropriation by any third party of the material intellectual property owned by the Company. 

     Section 3.16. Contracts. Except for contracts, commitments, plans, agreements and licenses listed on Schedule 3.16 hereto (true and complete copies of which or, with respect to oral Contracts, true and correct written summaries of which, in each case, together with all amendments, supplements or other modifications thereto have been made available to the Buyer and/or its agents) (in each case, whether oral or written, the “Contracts”), and except for purchase orders entered into in the ordinary course of business, neither the Company nor any Subsidiary is a party to or subject to: 

          (a) any plan or contract providing for bonuses, stock, options, stock purchases, profit sharing, collective bargaining or the like (other than the Options and the Stock Incentive Plan) or any contract or agreement with any labor union (other than the plans listed on Schedule 3.19 hereto); 

          (b) any employment contract or contract for services which requires the payment of more than $150,000 annually in total cash compensation, which is not terminable on sixty (60) or fewer days notice by the Company or a Subsidiary without liability for any material penalty or severance payment; 

          (c) any contract or agreement for the purchase of any commodity, material or equipment in excess of $150,000; 

          (d) any other contracts or agreements creating any obligation of the Company or any Subsidiary of more than $150,000 annually with respect to any such contract; 

          (e) any contract or agreement requiring the purchase of all or substantially all of its requirements of a particular product from a supplier, except any contract or agreement relating to the purchase of inventory in the ordinary course of business; 

          (f) any contract or agreement that by its terms does not terminate or is not terminable by the Company or a Subsidiary within twelve (12) months after the date hereof without payment of a penalty of $150,000 or more; 

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          (g) any contract containing covenants materially limiting the freedom of the Company or any Subsidiary to compete in any line of business or with any Person; 

          (h) any contract or agreement for the purchase of any fixed asset for a price in excess of $150,000; 

          (i) any partnership, joint venture or other similar contract or agreement; 

          (j) any material contract or agreement providing for the license of patents, trademarks, service marks, trade names or copyrights between the Company or any Subsidiary and any third party; 

          (k) any agreement concerning confidentiality, except for (i) such agreements entered into in connection with transactions or communications with third parties in the ordinary course of business, (ii) such agreements by the Company or its agents or representatives with third parties in connection with any proposed sale, financing or similar transaction of the Company or its Subsidiaries, including the transactions contemplated hereby and whether similar to the Confidentiality Agreement or otherwise, and (iii) such agreements entered into with employees of the Company or any Subsidiary in the ordinary course of business; 

          (l) any agreement in which a Securityholder, or an Affiliate of any Securityholder, is a party, other than employment, stock option or other employee benefit agreement; 

          (m) any material sales, marketing, distributorship, agency or representative agreements where the counter-party to such agreement has the right or power to bind the Company or any Subsidiary; 

          (n) any agreements with respect to reorganizations, mergers or acquisitions of capital stock or business assets of any Person since January 1, 2006; 

          (o) any power of attorney granted by the Company or any Subsidiary that is currently effective and outstanding and vests in any Person decision-making authority or the right or power to bind the Company or any Subsidiary; 

          (p) any agreements, notes, contracts or other documents under which the Company or any Subsidiary has created, incurred, assumed or guaranteed any Indebtedness, or under which it has created a Lien on any of its assets; and 

          (q) any agreement requiring the payment of any royalty. 

                All Contracts are valid and in full force and effect and constitute legal, valid and binding obligations of the Company or the applicable Subsidiary and, to the Knowledge of the Company, the other parties thereto, and are enforceable against the Company or such Subsidiary in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). To the Knowledge of the Company, neither the Company nor any Subsidiary is in default in complying with any material provisions thereof, nor has the Company or any Subsidiary received written notice of any such default, and, to the Knowledge of the Company, no condition or event or facts exist that, with notice, lapse of time or both, would constitute a default thereof on the part of the Company or any Subsidiary. 

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     Section 3.17. Insurance. The Company has made available to Buyer true and complete copies of all policies of insurance and fidelity bonds to which the Company or any Subsidiary is a party or under which the company or any Subsidiary is covered. All policies of insurance or fidelity bonds maintained by the Company or any Subsidiary are in full force and effect. All premiums due on any policy of insurance or fidelity bonds have been paid to the extent such premiums are due and payable and the Company and its Subsidiaries have otherwise performed all of their obligations under such policies. 

     Section 3.18. Permits. Except as set forth on Schedule 3.18 hereto, (i) the Company and each of the Subsidiaries have obtained all permits, registrations, licenses, franchises, certifications and other approvals (collectively, the “Approvals”) from Governmental Authorities (other than Approvals subject to the representations and warranties in Section 3.11 (Real Property), Section 3.15 (Intellectual Property) and Section 3.21(Environmental Matters)) necessary for the conduct of its business as presently conducted, except where the failure to obtain such Approvals would not reasonably be expected to have a Material Adverse Effect, (ii) all such Approvals are valid and in full force and effect and (iii) none of such Approvals is subject to termination by its terms as a result of the execution of this Agreement by the Company or by the consummation of the transactions contemplated by this Agreement. 

     Section 3.19. Employee Benefit Plans. All material Employee Benefit Plans maintained by the Company or any Subsidiary or to which the Company (or any Subsidiary) is obligated to contribute are listed on Schedule 3.19 hereto. Except as set forth on Schedule 3.19 hereto: 

          (a) all such Employee Benefit Plans have been made available to the Buyer and/or its agents; 

          (b) all such Employee Benefit Plans have been maintained, funded and administered in compliance in all material respects with all applicable Laws, including without limitation, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and the Code, except where such noncompliance would not reasonably be expected to result in a material liability; 

          (c) since the Reference Date, no such Employee Benefit Plan, or any trustee, administrator, employee or “fiduciary” thereof has, to the Knowledge of the Company, engaged in any breach of fiduciary responsibility or any “prohibited transaction” (as such term is defined in Section 406 of ERISA or Section 4975 of the Code) to which Section 406 of ERISA or Section 4975 of the Code applies and which could subject any such Employee Benefit Plan, trustee, administrator, employee or fiduciary thereof, or any party dealing with any such Employee Benefit Plan, to a material Tax or penalty on prohibited transactions imposed by Section 4975 of the Code or Section 502 of ERISA; 

          (d) no Employee Benefit Plan is a defined benefit pension plan or has within the six (6) years preceding the date of this Agreement been subject to the minimum funding requirements of Section 412 of the Code or Title IV of ERISA; 

          (e) neither the Company nor any ERISA Affiliate has or has ever had any obligation to contribute to any “multiemployer plan” within the meaning of Section 3(37) of ERISA; 

          (f) each Employee Benefit Plan intended to qualify under Section 401 of the Code has received a favorable determination letter from the Internal Revenue Service that such Employee Benefit Plan is a “qualified plan” under Section 401(a) of the Code; the related trusts are exempt from tax under Section 501(a) of the Code; and, to the Knowledge of the Company, no facts or circumstances exist that would be reasonably likely to jeopardize the qualification of such Employee Benefit Plan; 

          (g) with respect to the Employee Benefit Plans, to the Knowledge of the Company, all required contributions have been made or properly accrued on the Financial Statements; 

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          (h) neither the Company nor any ERISA Affiliate has liability under any Employee Benefit Plan, or otherwise, to provide medical or death benefits with respect to current or former employees of the Company or any Subsidiaries beyond their termination of employment (other than coverage mandated by Law), and there are no reserve assets, surplus or prepaid premiums under any such Employee Benefit Plan; 

          (i) the consummation of the transactions contemplated by this Agreement will not, other than pursuant to the Employee Benefit Plans listed on Schedule 3.19 hereto or pursuant to actions taken by the Buyer, result in any material liability to any present or former employee or independent contractor, including, but not limited to, as a result of the Worker Adjustment Retraining and Notification Act; 

          (j) except as set forth in Schedule 3.19, neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will (i) result in any payment becoming due to any current or former officer, partner, contractor or employee of Company or an ERISA Affiliate, (ii) increase any benefits otherwise payable under any Employee Benefit Plan, (iii) increase any benefits otherwise payable under any Employee Benefit Plan or (iv) result in the acceleration of the time of payment or vesting of any such benefits under any such Employee Benefit Plan; and 

          (k) no amount required to be paid or payable to or with respect to any employee or other service provider of Company or an ERISA Affiliate in connection with the transactions contemplated hereby (either solely as a result thereof or as a result of such transactions in conjunction with any other event) could be an “excess parachute payment” within the meaning of Section 280G of the Code. Each Employee Benefit Plan that constitutes a nonqualified deferred compensation plan for purposes of Section 409A of the Code has been operated in compliance in form and substance with Section 409A of the Code and all applicable guidance from the IRS. 

     Section 3.20. Employees; Labor Matters. Neither the Company nor any Subsidiary is delinquent in any material payments to any of their respective employees for any wages, salaries, commissions, bonuses, severance, termination pay or other direct compensation for any services performed for it to the date hereof or amounts required to be reimbursed to such employees. Except as set forth on Schedule 3.20 hereto, neither the Company nor any Subsidiary has any written policy, practice, plan or program of paying severance pay or any written form of severance compensation in connection with the termination of employment. Except as set forth on Schedule 3.20hereto, to the Knowledge of the Company, there are no material grievances, complaints or charges that have been filed against the Company or any Subsidiary under any dispute resolution procedure (including, but not limited to, any proceedings under any dispute resolution procedure under any collective bargaining agreement) that have not been dismissed. Except as set forth on Schedule 3.20 hereto, no collective bargaining agreements are in effect or are currently being negotiated by the Company or any Subsidiary. 

     Section 3.21. Environmental Matters. Except as set forth on Schedule 3.21 hereto, since the Reference Date, the Company and the Subsidiaries have obtained and possessed all material Approvals required under federal, state and local Laws concerning pollution or protection of the environment, in each case in effect on or prior to the date hereof, including all such Laws relating to the emission, discharge, release or threatened release of any petroleum, pollutants, environmental contaminants or hazardous or toxic materials, substances or wastes into air, surface water, groundwater or lands (“Environmental Requirements”), except where the failure to obtain or possess such Approvals would not reasonably be expected to have a Material Adverse Effect. Except as set forth on Schedule 3.21 hereto, to the Knowledge of the Company, the Company and each Subsidiary are in compliance with all terms and conditions of such Approvals and are also in compliance with all other Environmental Requirements, except for such failures to comply that would not reasonably be expected to have a Material Adverse Effect. Except as set forth on Schedule 3.21 hereto, since the Reference Date, neither the Company nor any Subsidiary has received any written notice from any Governmental Authority or other Person asserting or alleging that the Company or any Subsidiary 

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has failed in any material respect to comply with any Environmental Requirements, or that the Company or any Subsidiary is liable in any material respect for any material injury or material damages to any Person or property because of the release or threatened release of any petroleum, pollutants, environmental contaminants, hazardous or toxic materials, substances or wastes except as would not reasonably be expected to have a Material Adverse Effect. The Company has made available to the Buyer all material environmental audits and reports that are in the Company’s possession and that relate to the Company’s or any Subsidiary’s past or current properties, facilities or operations. Notwithstanding any implication to the contrary contained herein, this Section 3.21constitutes the sole and exclusive representations and warranties of the Company with respect to Environmental Requirements and all other environmental matters. 

     Section 3.22. Employee Relations. Except as set forth on Schedule 3.22 hereto, none of the employees of the Company or the Subsidiaries is represented by a union, and, to the Knowledge of the Company, since the Reference Date, no union organizing efforts have been conducted or are now being conducted. Set forth on Schedule 3.22 hereto is a list of all material actions, suits and proceedings pending between the Company or any Subsidiary and any employees, former employees or prospective employees of the Company or such Subsidiary or involving other labor-related matters (including, without limitation, charges of employment discrimination or unfair labor practices) other than ordinary course claims for benefits under Employee Benefit Plans and workers’ compensation claims that would not reasonably be expected to have a Material Adverse Effect. To the Knowledge of the Company, neither the Company nor any Subsidiary is in violation in any material respect of any provision of any Law promulgated by any Governmental Authority regarding the terms and conditions of employees, former employees or prospective employees or other labor-related matters, including, without limitation, Laws relating to discrimination, fair labor standards and occupational health and safety, wrongful discharge or violation of the personal rights of employees, former employees or prospective employees of the Company or any Subsidiary, except where such violation would not, individually or in the aggregate, currently have a Material Adverse Effect. 

     Section 3.23. Accounts Receivable. All accounts receivable reflected on the Latest Balance Sheet and those accounts receivable that have arisen since the date of the Latest Balance Sheet and have not yet been collected, represent valid obligations of customers of the Company and its Subsidiaries arising from bona fide transactions entered into in the ordinary course of business and, except from Permitted Liens, are free and clear of all Liens. 

     Section 3.24. Bank Accounts. The Company has provided to Buyer a correct and complete list of each account maintained by the Company and its Subsidiaries at any bank or other financial institution, including the following information for each such account: (a) the name and location of the institution at which such account is maintained, (b) the name in which such account is maintained and the account number of such account, (c) a brief description of such account and (d) the names of all individuals authorized to draw on or make withdrawals from such account. 

     Section 3.25. Foreign Corrupt Practices Act. Except as would not reasonably be expected to have a Material Adverse Effect, neither the Company, nor any Subsidiary, nor any director, officer, agent, employee or other person associated with or acting on behalf of the Company or any Subsidiary has (i) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder; (ii) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity or to influence official action; (iii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee from corporate funds. 

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     Section 3.26. No Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS ARTICLE 3 (QUALIFIED BY THE SCHEDULES), NEITHER THE COMPANY NOR ANY OF THE SUBSIDIARIES MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY, AND THE COMPANY AND EACH SUBSIDIARY HEREBY DISCLAIM ANY SUCH REPRESENTATION OR WARRANTY IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS AGREEMENT AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 

ARTICLE 4 
REPRESENTATIONS AND WARRANTIES OF THE SECURITYHOLDERS 

          Each Securityholder, severally and not jointly, represents and warrants to the Buyer, as to such Securityholder that: 

     Section 4.01. Organizational Authorization. If such Securityholder is an entity, the execution, delivery and performance by such Securityholder of this Agreement and the consummation of the transactions contemplated hereby are within such Securityholder’s organizational powers and have been duly authorized by all necessary action on the part of such Securityholder. This Agreement and the Joinder Agreement, as applicable, constitutes a valid and binding agreement of such Securityholder, enforceable against such Securityholder in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). 

     Section 4.02. Governmental Authorization. Subject to the Antitrust Approvals, the execution, delivery and performance by such Securityholder of this Agreement and the Joinder Agreement, as applicable, require no material action by or in respect of, or material filing with, any Governmental Authority, agency or official. 

     Section 4.03. Noncontravention. The execution, delivery and performance by such Securityholder of this Agreement and the Joinder Agreement, as applicable, do not and will not (i) with respect to any Securityholder that is an entity, violate its certificate or articles of incorporation or bylaws or other equivalent governing documents, (ii) assuming compliance with the matters referred to in Section 4.02, violate any material Law applicable to the transactions contemplated hereby or (iii) require any material consent or other material action by any Person under, constitute a default under, or give rise to any right of termination, cancellation or acceleration of any right or obligation of such Securityholder under any provisions of any material agreement or other material instrument binding upon such Securityholder. 

     Section 4.04. Ownership of Securities. As of the date hereof, such Securityholder (a) if a Stockholder, is the owner of the number of Shares set forth opposite such Securityholder’s name on Schedule 3.02 hereto, free and clear of any Lien, except for Permitted Liens; and (b) if an Optionholder, is the owner of the number of Options at the exercise prices indicated thereon set forth opposite such Optionholder’s name on Schedule 3.02 hereto, free and clear of any Lien, except for Permitted Liens. Such Securityholder will be, as of the Closing, the record and beneficial owner of such Securityholder’s respective Shares and/or Options, free and clear of any Liens, except Permitted Liens. 

     Section 4.05. Advisory and Other Fees. Such Securityholder has not incurred nor shall become liable for any advisory fee, broker’s commission or finder’s fee relating to or in connection with the transactions contemplated by this Agreement. 

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     Section 4.06. No Action. Such Securityholder (i) does not have any action or cause of action or other claim whatsoever against the Company or any Subsidiary, (ii) except for (A) rights under this Agreement, (B) unpaid Indebtedness payable to ACAS, ACEI, ACEII or any of their respective Affiliates, which will be paid in accordance with Section 2.03(b)(v) hereof, (C) rights under matters set forth in Schedule 3.10 hereto or arising under Contracts disclosed pursuant to Section 3.16(l), (D) wages and other employee benefits owed to any Securityholder that is also an employee of the Company or a Subsidiary or (E) rights to indemnification owed to any Securityholder or its Affiliates by virtue of such Securityholder’s service as a director, employee, agent or representative of the Company or any Subsidiary, is not owed any amount by and does not owe any amount to the Company or any Subsidiary. 

     Section 4.07. No Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS ARTICLE 4, SUCH SECURITYHOLDER MAKES NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY, AND SUCH SECURITYHOLDER HEREBY DISCLAIMS ANY SUCH REPRESENTATION OR WARRANTY IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS AGREEMENT AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 

ARTICLE 5 
REPRESENTATIONS AND WARRANTIES OF THE BUYER 

          The Buyer represents and warrants to the other parties hereto that: 

     Section 5.01. Existence and Power. Buyer is a corporation duly organized, validly existing and in good standing under the Laws of the State of Ohio and has all corporate powers and all material Approvals from Governmental Authorities required to carry on its business as now conducted. 

     Section 5.02. Organizational Authorization. The Buyer has the full right, power and authority to enter into this Agreement and each agreement, document and instrument to be executed and delivered by it pursuant to or as contemplated by this Agreement and to carry out the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the performance of the Buyer’s obligations hereunder have been duly authorized by all necessary corporate action on the part of the Buyer. This Agreement and each agreement, document and instrument to be executed and delivered by the Buyer pursuant to this Agreement constitute, or will when executed and delivered constitute, valid and binding obligations of the Buyer, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). 

     Section 5.03. Governmental Authorization. Subject to the Antitrust Approvals, the execution, delivery and performance by the Buyer of this Agreement and each agreement, document and instrument to be executed and delivered by it pursuant to or as contemplated by this Agreement and the consummation of the transactions contemplated hereby or thereby require no material action by or in respect of, or material filing with, any Person (including any Governmental Authority). 

     Section 5.04. Noncontravention. The execution, delivery and performance by the Buyer of this Agreement and each agreement, document and instrument to be executed and delivered by it pursuant to or as contemplated by this Agreement and the consummation of the transactions contemplated hereby and thereby do not and will not (i) violate the certificate of incorporation or code of regulations of the Buyer, (ii) assuming compliance with the matters referred to in Section 5.03, violate any material Law, judgment, injunction, order or decree or (iii) require any material consent or other material action by any Person under, constitute a default under, or give rise to any right of termination, cancellation or acceleration of any right or obligation of the Buyer under any provisions of any material agreement or other material instrument binding upon the Buyer. 

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     Section 5.05. Financing. The Buyer has on the date hereof, and at the Closing shall have, sufficient cash, available lines of credit or other sources of immediately available funds or committed capital to enable it to fulfill its obligations hereunder and to make payment of all amounts to be paid by it hereunder on and after the Closing Date. 

     Section 5.06. Purchase for Investment. The Buyer is purchasing the Shares for investment for its own account and not with a view to, or for sale in connection with, any distribution thereof. The Buyer is an “accredited investor” and has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Shares and is capable of bearing the economic risks of such investment. 

     Section 5.07. Actions and Proceedings. There are no (i) outstanding judgments, orders, writs, injunctions or decrees of any court, Governmental Authority or arbitration tribunal against the Buyer or any of its Affiliates, which have or could have a material adverse effect on the ability of the Buyer to consummate the transactions contemplated hereby or (ii) actions, suits, claims or legal, administrative or arbitration proceedings or investigations pending or, to the knowledge of the Buyer, threatened against the Buyer, which have or could have a material adverse effect on the ability of the Buyer to consummate the transactions contemplated hereby. 

     Section 5.08. Finder’s Fees. There is no investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of the Buyer who might be entitled to any fee or commission upon the consummation of the transactions contemplated by this Agreement. 

     Section 5.09. Solvency. Immediately after giving effect to the transactions contemplated by this Agreement and any financing arrangements incurred by the Buyer in connection therewith, the Company and each Subsidiary will be able to pay their respective debts as they become due and will own property that has a fair saleable value greater than the amounts required to pay their respective debts (including a reasonable estimate of the amount of all contingent liabilities). Immediately after giving effect to the transactions contemplated by this Agreement, the Company and each Subsidiary will have adequate capital to carry on their respective businesses. No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated by this Agreement with the intent to hinder, delay or defraud either present or future creditors of the Company and the Subsidiaries. 

     Section 5.10. Acknowledgment by the Buyer.

          (A) The Buyer has conducted to its satisfaction, an independent investigation and verification of the financial condition, results of operations, assets, liabilities, properties and projected operations of the Company and, in making its determination to proceed with the transactions contemplated by this Agreement, the Buyer has relied on the results of its own independent investigation and verification and the representations and warranties of the Company and/or the Securityholders expressly and specifically set forth in this Agreement. SUCH REPRESENTATIONS AND WARRANTIES BY THE COMPANY AND/OR THE SECURITYHOLDERS CONSTITUTE THE SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES OF THE COMPANY, THE SUBSIDIARIES AND THE SECURITYHOLDERS TO THE BUYER IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY, AND THE BUYER UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT ALL OTHER REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE EXPRESSED OR IMPLIED (INCLUDING, WITHOUT LIMITATION, ANY RELATING TO THE FUTURE OR HISTORICAL FINANCIAL CONDITION, RESULTS OF OPERATIONS, ASSETS OR LIABILITIES OF THE COMPANY OR THE SUBSIDIARIES OR THE QUALITY, QUANTITY OR CONDITION OF THE ASSETS OF THE COMPANY OR THE SUBSIDIARIES) ARE SPECIFICALLY DISCLAIMED BY THE COMPANY, THE SUBSIDIARIES AND THE SECURITYHOLDERS. THE 

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COMPANY, THE SUBSIDIARIES AND THE SECURITYHOLDERS DO NOT MAKE OR PROVIDE, AND THE BUYER HEREBY WAIVES, ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE QUALITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY TO SAMPLES, OR CONDITION OF THE COMPANY’S OR ANY OF THE SUBSIDIARIES’ ASSETS OR ANY PART THEREOF. 

          (b) In connection with the Buyer’s investigation of the Company and the Subsidiaries, the Buyer has received from or on behalf of the Company and the Subsidiaries or the Securityholders certain projections, including projected statements of operating revenues and income from operations of the Company and the Subsidiaries for the fiscal year ending December 31, 2011 and for subsequent fiscal years and certain business plan information for such fiscal year and succeeding fiscal years. The Buyer acknowledges that there are uncertainties inherent in attempting to make such estimates, projections and other forecasts and plans, that the Buyer is familiar with such uncertainties, that the Buyer is taking full responsibility for making its own evaluation of the adequacy and accuracy of all estimates, projections and other forecasts and plans so furnished to it (including the reasonableness of the assumptions underlying such estimates, projections and forecasts), and that the Buyer shall have no claim against the Securityholders with respect thereto. Accordingly, neither the Company, the Subsidiaries nor the Securityholders make any representations or warranties whatsoever with respect to such estimates, projections and other forecasts and plans (including the reasonableness of the assumptions underlying such estimates, projections and forecasts). The Buyer agrees that neither any of the Securityholders nor any other Person will have or be subject to any liability to the Buyer or any other Person resulting from the distribution to the Buyer, or the Buyer’s use of, any information regarding the Company or any of its Subsidiaries or their respective businesses, including the Confidential Information Memorandum prepared by Lazard, and any information, document or material made available to the Buyer or its Affiliates in certain physical or on-line “data rooms,” management presentations or any other form in expectation of the transactions contemplated by this Agreement. 

     Section 5.11. No Knowledge of Misrepresentations or Omissions; No Reliance. The Buyer has no knowledge that any representation or warranty of the Company or the Securityholders in this Agreement is not true and correct in all material respects. In addition, the Buyer has no knowledge of any material errors in, or material omissions from, the Schedules. The Buyer acknowledges and agrees that the representations and warranties made by the Company in this Agreement (as qualified by the Schedules) supersede, replace and nullify in every respect the data set forth in any other document, material or statement, whether written or oral, made available to the Buyer, and the Buyer shall be deemed to have not relied on any data contained in such other document, material or statement for any purpose whatsoever, including, without limitation, as a promise, projection, guaranty, representation, warranty or covenant. 

     Section 5.12. No Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS ARTICLE 5 (AS MODIFIED BY THE SCHEDULES), THE BUYER MAKES NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY, AND THE BUYER HEREBY DISCLAIMS ANY SUCH REPRESENTATION OR WARRANTY IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS AGREEMENT AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 

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ARTICLE 6 
COVENANTS OF THE COMPANY AND THE SECURITYHOLDERS 

     Section 6.01. Conduct of the Company and the Subsidiaries. During the period from the date of this Agreement and continuing until the Closing, the Company agrees as to itself and the Subsidiaries that, except (i) as expressly contemplated or permitted by this Agreement, (ii) as required by applicable Law, or (iii) to the extent that the Buyer shall otherwise consent in writing, which consent shall not be unreasonably withheld, conditioned or delayed: 

          (a) the Company and the Subsidiaries shall use reasonable efforts to carry on their respective businesses in the usual, regular and ordinary course in all material respects, in substantially the same manner as heretofore conducted, and shall use reasonable efforts to preserve intact their present lines of business, maintain their rights and franchises and preserve their relationships (contractual or otherwise) with customers, suppliers and others having business dealings with them (including, without limitation, through ordinary course renewals, negotiations with and amendments to such relationships) to the end that their ongoing businesses shall not be impaired in any material respect at the Closing; provided, however, that no action by the Company or any Subsidiary with respect to matters specifically addressed by any other provision of this Section 6.01 shall be deemed a breach of this Section 6.01(a), unless such action would constitute a breach of one or more of such other provisions; 

          (b) neither the Company nor any Subsidiary shall incur or commit to any capital expenditures or any obligations or liabilities in connection with capital expenditures, except for (i) capital expenditures and obligations or liabilities in connection therewith incurred or committed to in the ordinary course of business consistent with past practice or (ii) other capital expenditures and obligations or liabilities in connection therewith in an amount not to exceed $150,000 in the aggregate; 

          (c) the Company shall not, and shall not permit any of the Subsidiaries to, (i) declare or pay any dividends on or make other distributions in respect of any of its capital stock or other equity interests (except for dividends in Cash and dividends by a Subsidiary to another Subsidiary or the Company), (ii) split, combine or reclassify any of its capital stock or other equity interests or issue or authorize or propose the issuance of any other securities in respect of, in lieu of or in substitution for, shares of its capital stock or other equity interests (except for any such transaction by a direct or indirect Subsidiary that remains a direct or indirect Subsidiary after consummation of such transaction), or (iii) repurchase, redeem or otherwise acquire any shares of its capital stock or any securities convertible into or exercisable for any shares of its capital stock or other equity interests (except for repurchases and redemptions paid in Cash and upon the exercise of Options); 

          (d) the Company shall not, and shall not permit any Subsidiary to, issue, deliver or sell, or authorize or propose the issuance, delivery or sale of, any shares of its capital stock of any class, or any securities convertible into or exercisable for, or any rights, warrants or options to acquire, any such shares of their respective capital stock, or enter into any agreement with respect to any of the foregoing, other than the issuance of shares upon the exercise of Options or other securities convertible into or exercisable for shares of capital stock issued and outstanding as of the date hereof, issuances of capital stock by a direct or indirect Subsidiary to such Subsidiary’s parent or another direct or indirect Subsidiary, the transactions contemplated herein or the Stock Incentive Plan; 

          (e) other than to the extent required to comply with its obligations hereunder or required by Law, the Company shall not, and shall not permit any Subsidiary to, amend or propose to amend its certificate of incorporation or bylaws or equivalent formation documents; 

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          (f) the Company shall not, and shall not permit any Subsidiary to, acquire or agree to acquire by merging or consolidating with, or by purchasing an equity interest in or any portion of the assets of, or by any other manner, any business or any corporation, partnership, association or other business organization or division thereof or otherwise acquire or agree to acquire or in-license any assets or rights (other than the acquisition or in-license of assets used in the operations of the business of the Company or any Subsidiary in the ordinary course consistent with past practice); provided, however, that the foregoing shall not prohibit (i) the creation of new direct or indirect Subsidiaries organized to conduct or continue activities otherwise permitted by this Agreement or (ii) internal reorganizations or consolidations involving existing direct or indirect Subsidiaries that remain direct or indirect Subsidiaries; 

          (g) other than (i) internal reorganizations or consolidations involving existing direct or indirect Subsidiaries that remain direct or indirect Subsidiaries or (ii) as may be required by or in conformance with applicable Law in order to permit or facilitate the consummation of the transactions contemplated hereby, the Company shall not, and shall not permit any Subsidiary to, sell, encumber (other than Permitted Liens) or otherwise dispose of, or agree to sell, encumber (other than Permitted Liens) or otherwise dispose of, any of its assets other than in the ordinary course of business consistent with past practice; 

          (h) the Company shall not, and shall not permit any Subsidiary to, (i) make any loans, advances or capital contributions to, or investments in, any other Person, other than (A) by the Company or a direct or indirect Subsidiary to or in the Company or any other direct or indirect Subsidiary, (B) pursuant to any contract or other legal obligation of the Company or in any Subsidiary as in effect as of the date hereof or (C) in the ordinary course of business consistent with past practice or (ii) create, incur, assume or suffer to exist any indebtedness, issuances of debt securities, guarantees, loans or advances to the Company or any Subsidiary not in existence as of the date of this Agreement except (A) pursuant to the credit facilities, indentures (but not in excess of amounts authorized for issuance thereunder as of the date of this Agreement) and other arrangements in existence on the date of this Agreement, (B) by the Company or a direct or indirect Subsidiary to or in the Company or any other direct or indirect Subsidiary, or (C) trade debt and commercial finance in the ordinary course of business consistent with past practice, in each case as such credit facilities, indentures and other arrangements and other existing indebtedness may be amended, extended, modified, refunded, renewed or refinanced after the date of this Agreement; 

          (i) other than as required by an existing contract or agreement, an Employee Benefit Plan or applicable Law and other than in the ordinary course of business consistent with past practice, neither the Company nor any Subsidiary shall (A) increase the amount of cash compensation or severance pay of any director or executive officer, (B) make any material increase in, or commitment to increase materially, any employee benefits, (C) adopt or make any commitment to adopt any material new Employee Benefit Plan or make any material contribution, other than regularly scheduled contributions, to any Employee Benefit Plan; or (D) enter into any employment, severance or similar contract or collective bargaining agreement with respect to any employees. 

          (j) neither the Company nor any Subsidiary shall (A) change its fiscal year, (B) make, change or revoke any material Tax election (except in the ordinary course of business consistent with past practice or as otherwise required by applicable Law) or (C) except as required by changes in GAAP or as required by applicable Law, materially change its methods of accounting in effect as of the date hereof; and 

          (k) other than in connection with any action expressly permitted by any other subsection of this Section 6.01 and except for any new contract awards, and any contract renewals, negotiations and amendments entered into in the ordinary course of business and consistent with past practice, neither the Company nor any Subsidiary shall (A) enter into or become bound by, or permit any of the assets owned or used by it to become bound by, any contract of the type required to be disclosed pursuant to Section 3.16 of this Agreement (other than in the ordinary course of business), or (B) prematurely terminate (other than in the ordinary course of business), or waive any material right or remedy under, any such contract. 

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     Section 6.02. Access. From the date hereof until the Closing Date, the Company and each Subsidiary will give the Buyer, its counsel, financial advisors, auditors and other authorized representatives reasonable access to the offices, employees, properties, books and records of the Company and the Subsidiaries; provided, that any such access (i) shall be during normal business hours on reasonable notice, (ii) shall not, except as otherwise agreed in writing by the Securityholder Representative and the Company, include sampling or testing of soil, sediment, surface or ground water and/or building material, (iii) shall not be required where such access would be prohibited or otherwise limited by any applicable Law or agreement and (iv) shall not otherwise unreasonably interfere with the conduct of the business of the Company or the Subsidiaries; provided, further, that nothing herein shall require the Company or any Subsidiary to provide access to, or to disclose any information to, the Buyer if such access or disclosure (x) would cause significant competitive harm to the Company or the Subsidiaries if the transactions contemplated by this Agreement are not consummated or (y) would be in violation of applicable Laws of any Governmental Authority (including Antitrust Laws) or the provisions of any agreement to which the Company or any of the Subsidiaries is a party. 

     Section 6.03. Subsequent Actions. On or before the Closing Date, the Company and the Securityholders may disclose to the Buyer in writing any exceptions to or variances from the representations and warranties in Article 3 or Article 4, and such disclosures shall amend and supplement the appropriate Schedules (such updated schedules to be referred to herein collectively as the “Updated Schedules”). Except for the purposes of Section 9.01(a) as specifically set forth therein, the delivery of such Updated Schedules will be deemed to have cured any misrepresentation or breach of warranty that otherwise might have existed hereunder by reason of such exception or variance, and the Buyer shall have no rights or claims under Article 11 of this Agreement with respect to any such misrepresentation or breach of warranty that is deemed cured by the Updated Schedules. 

ARTICLE 7 
COVENANTS OF THE BUYER 

     Section 7.01. Confidentiality. Prior to the Closing Date and after any termination of this Agreement, the Buyer shall hold and shall cause its Affiliates, officers, directors, employees, accountants, counsel, consultants, advisors and agents (collectively, the “Buyer’s Representatives”) to hold, in confidence, all confidential documents and information concerning the Company or any Subsidiary furnished to the Buyer or the Buyer’s Representatives in connection with the transactions contemplated by this Agreement in the manner specified in the Confidentiality Agreement dated as of April 25, 2011, between Lazard and the Buyer, as amended from time to time (the “Confidentiality Agreement”). 

     Section 7.02. Access. From and after the Closing, the Buyer and the Company (and each Subsidiary) shall afford promptly to the Securityholder Representative and its designees and representatives reasonable access to the books, records (including accountants’ work papers) and employees of the Company and the Subsidiaries to the extent necessary to permit the Securityholder Representative to determine any matter relating to the Securityholder Representative’s or the Securityholders’ rights and obligations hereunder or to any period ending on or before the Closing Date; provided, that any such access by the Securityholder Representative (i) shall be during normal business hours on reasonable notice, (ii) shall not be required where such access would be prohibited by applicable Law or agreement, and (iii) shall not otherwise unreasonably interfere with the conduct of the business of the Company or the Subsidiaries. Unless otherwise consented to in writing by the Securityholder Representative, neither the Buyer, the Company nor any Subsidiary shall, for a period of seven (7) years after the Closing Date, destroy, alter or otherwise dispose of any of the material corporate, financial, Tax and accounting books and records (which shall not include e-mails) of the Company or any Subsidiary, without first offering to surrender to the Securityholder Representative such books and records or any portion thereof which the Buyer, the Company or any Subsidiary may intend to destroy, alter or otherwise dispose of. 

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     Section 7.03. Notification. Prior to the Closing, upon discovery of any variances from the representations and warranties contained in this Agreement, the Buyer shall promptly notify the Company and the Securityholder Representative of such variances. 

     Section 7.04. Director and Officer Liability, Indemnification and Insurance. For a period of six (6) years after the Closing Date, the Buyer shall not, and shall not permit the Company or any Subsidiary to amend, repeal or modify any provision in the Company’s or any Subsidiary’s certificate of incorporation or bylaws (or equivalent governing documents) relating to the exculpation or indemnification of any current or former officer, manager, director or similar functionary (the “Indemnified Representatives”) (unless required by Law), it being the intent of the parties that the Indemnified Representatives prior to the Closing shall continue to be entitled to such exculpation and indemnification to the fullest extent of the Law. The Buyer shall cause the Company and each Subsidiary, at the Company’s sole cost and expense, to maintain its existing officers’ and directors’ liability insurance, or other liability insurance that covers events occurring prior to the Closing on terms and in amounts no less favorable to the Indemnified Representatives than its existing officers’ and directors’ liability insurance for a period of six (6) years after the Closing. The Buyer shall, to the fullest extent permitted by applicable Law, cause the Company and its Subsidiaries, at the Company’s sole cost and expense, to honor all of the Company’s and its Subsidiaries’ obligations to indemnify (including any obligations to advance funds for expenses) the Indemnified Representatives for acts or omissions by such Indemnified Representatives occurring prior to the Closing Date to the extent that such obligations of the Company or any of its Subsidiaries exist on the date of this Agreement, whether pursuant to the organizational documents of the Company or any of its Subsidiaries, individual indemnity agreements, management board resolution or otherwise, and such obligations shall survive the Closing and shall continue in full force and effect in accordance with the terms of the organizational documents of the Company or any of its Subsidiaries, as the case may be, and such board resolutions or individual indemnity agreements from the Closing Date until the expiration of the applicable statute of limitations with respect to any claims against such Indemnified Representatives arising out of such acts or omissions. From and after the Closing Date, to the fullest extent permitted by applicable law, Buyer shall, and shall cause the Company to, indemnify, defend and hold harmless the Indemnified Representatives against all Losses, as incurred (payable monthly upon written request which request shall include reasonable evidence of the Losses set forth therein) to the extent arising from, relating to, or otherwise in respect of, any actual or threatened Third Party Claim in respect of actions or omissions occurring at or prior to the Closing Date in connection with such Indemnified Representatives duties as an officer, director or employee of the Company or any of its Subsidiaries, including in respect to this Agreement and the other transactions contemplated by the this Agreement. Each of the Buyer and its Affiliates (determined after the Closing Date) covenants for itself and its respective successors, assigns, heirs, legatees and personal representatives that it shall not institute any Third Party Claim against any of the current or former officers or directors of the Company or any of its Subsidiaries, in their capacity as such, with respect to any Losses or other liabilities, actions or causes of action, judgments, claims and demands of any nature or description (consequential, compensatory, punitive or otherwise) arising from or relating to actions occurring prior to the Closing, whether or not such Person would be entitled to indemnification by the Company under this Section 7.04. If the Company or any Subsidiary or any of their respective successors or assigns (i) shall consolidate with or merge into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) shall transfer all or substantially all of its properties and assets to any Person, then, and in each such case, proper provisions shall be made so that the successors and assigns of the Company or each Subsidiary shall assume all of the obligations set forth in this Section 7.04. The provisions of this Section 7.04 are intended for the benefit of, and will be enforceable by, each Indemnified Representative and his or her heirs and representatives, and are in addition to, and not in substitution for, any other rights to indemnification or contribution that any such person may have had by contract or otherwise. The Buyer and the Company acknowledge and agree that, to the extent that an Indemnified Representative is entitled to be indemnified by the Company or any Subsidiary as contemplated by this Section 7.04 and by any Securityholder or any Affiliate of any such Securityholder 

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(other than the Company or any Subsidiary) under any other agreement or instrument, or by any insurer under a policy maintained by any such Securityholder or Affiliate, (i) the obligations of the Company hereunder shall be primary, and the obligations of such Securityholder, Affiliate or insurer secondary, (ii) the Indemnified Representative shall proceed first against the Company and any insurer under any policy maintained by the Company, and second, if indemnification is not provided by the Company or any such insurer on a timely basis, against any insurer under a policy maintained by any such Securityholder or Affiliate, (iii) the Company shall be required to advance the full amount of expenses incurred by any Indemnified Representative and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement, and (iv) the Company shall not be entitled to contribution or indemnification from or subrogation against any such Securityholder, Affiliate or insurer under a policy maintained by any such Securityholder or Affiliate. In the event that any such Securityholder or Affiliate makes indemnification payments or advances to the Indemnified Representative in respect of any Losses (including all interest, assessments and other charges paid or payable in connection with or in respect of any such Losses) for which the Company would also be obligated as contemplated by this Agreement, the Company shall indemnify, reimburse and hold harmless such Securityholder or Affiliate in full on demand. 

     Section 7.05. Regulatory Filings. Except as otherwise provided in Section 8.07, the Buyer shall, within three (3) Business Days after the date hereof, make or cause to be made all filings and submissions required of the Buyer under any Laws applicable to the Buyer for the consummation of the transactions contemplated herein. The Buyer shall be responsible for all filing fees under any such Laws applicable to the Buyer. 

     Section 7.06. Contact with Employees, Customers and Suppliers. Prior to the Closing, neither the Buyer nor any of the Buyer’s Representatives shall contact or otherwise communicate with any employees, customers or suppliers of the Company or any Subsidiary in connection with or regarding the transactions contemplated hereby, except to the extent approved in writing by the Securityholder Representative. 

ARTICLE 8 
ADDITIONAL COVENANTS OF THE PARTIES 

     Section 8.01. Reasonable Best Efforts; Further Assurances. Subject to the terms and conditions of this Agreement, the Buyer, the Company and the Securityholders shall use their commercially reasonable best efforts to take, or cause to be taken, all actions necessary or desirable to cause the conditions set forth in Article 9 to be satisfied and the transactions contemplated by this Agreement to be consummated, in each case as promptly after the date hereof as practicable. Except as otherwise expressly set forth in this Agreement, neither the Securityholders nor the Company on the one hand, nor the Buyer on the other hand, shall have any obligation to pay any amounts or incur any liability or obligation to any third party as a condition or inducement for obtaining any consents described on Schedule 9.01(c) hereto. Each of the Securityholders, the Company and the Buyer agree to execute and deliver such other documents, certificates, agreements and other writings and to take such other actions as may be reasonably necessary or desirable in order to consummate or implement expeditiously the transactions contemplated by this Agreement. From time to time, as and when requested by any party hereto and at such party’s expense, any other party shall execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all such further or other actions as such other party may reasonably deem necessary or desirable to evidence and effectuate the transactions contemplated by this Agreement. 

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     Section 8.02. Further Cooperation. Each of the Securityholders and the Buyer shall cooperate with each other (i) in determining whether any action by or in respect of, or filing with, any Governmental Authority is required, or any actions, consents, approvals or waivers are required to be obtained under any material contracts, in each case in connection with the consummation of the transactions contemplated by this Agreement, and (ii) in taking such actions or making any such filings, in furnishing information required in connection therewith and in seeking timely to obtain any such actions, consents, approvals or waivers. 

     Section 8.03. Public Announcements. No press release or other public announcement related to this Agreement or the transactions contemplated herein shall be issued or made without the joint approval of the Buyer, the Securityholder Representative and, prior to the Closing Date, the Company, unless required by Law or the requirements of any stock exchange or Nasdaq (in the reasonable opinion of counsel), in which case the Buyer, the Securityholder Representative and, prior to the Closing Date, the Company shall, to the extent practicable, have the right to review and comment on such public announcement prior to publication. Notwithstanding the foregoing, on or after the Closing, ACAS, ACEI and ACEII shall be permitted to disclose any returns, gains or losses realized as a result of their respective investments in the Company and the transactions contemplated hereby without any approval of the Company, the Buyer or the Securityholder Representative; provided, that neither ACAS, ACEI nor ACEII may, without the consent of the Buyer, disclose in such announcement the purchase price or the multiple of EBITDA paid for the Company hereunder. 

     Section 8.04. Tax Matters. All transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement, shall be borne and paid by the Buyer when due, and the Buyer will, at its own expense, file all necessary Tax Returns and other documentation with respect to all such Taxes and fees, and, if required by applicable Law, then the Securityholders will execute and deliver, and will cause their respective Affiliates to join in the execution and delivery of, any such Tax Returns and other documentation. The Buyer shall prepare or cause to be prepared and file or cause to be filed all Tax Returns for the Company and each Subsidiary for all periods ending prior to or including the Closing Date which are filed after the Closing Date. At least fifteen (15) days prior to the date on which each such income Tax Return is filed, the Buyer shall submit such Tax Return to the Securityholder Representative for its review and approval, which approval shall not be unreasonably withheld, conditioned or delayed. Buyer shall provide to the Securityholder Representative such use and sales Tax Returns promptly after filing such Tax Returns. 

     Section 8.05. Disclosure Generally. The Schedules have been arranged, for purposes of convenience only, as separately titled Schedules corresponding to the Sections of Article 3. Any information set forth in any Schedule or incorporated in any Section of this Agreement shall be considered to have been set forth in each other Schedule to the extent the relevance of such information is reasonably apparent on the face of such Schedule and shall be deemed to modify the representations and warranties in Article 3 whether or not such representations and warranties refer to such Schedule. The specification of any dollar amount in the representations and warranties contained in this Agreement or the inclusion of any specific item in the Schedules is not intended to imply that such amounts, or higher or lower amounts, or the items so included or other items, are or are not required to be disclosed or are within or outside of the ordinary course of business, and neither party shall use the fact of the setting of such amounts or the fact of the inclusion of any such item in the Schedules in any dispute or controversy with any party as to whether any obligation, item or matter not described herein or included in a Schedule is or is not required to be disclosed (including, without limitation, whether such amounts are required to be disclosed as material) or in the ordinary course of business for the purposes of this Agreement. The information contained in the Schedules is disclosed solely for the purposes of this Agreement, and no information contained therein shall be deemed to be an admission by any party hereto to any third party of any matter whatsoever, including of any violation of Law or breach of any agreement. 

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     Section 8.06. Conflicts and Privilege. It is acknowledged by each of the parties hereto that ACAS, ACEI, ACEII, the Company and the Securityholder Representative have retained PB and Arnold & Porter LLP (“AP”) to act as their counsel in connection with the transactions contemplated hereby and that neither PB nor AP has acted as counsel for any other party in connection with the transactions contemplated hereby and that none of the other parties has the status of a client of PB or AP for conflict of interest or any other purposes as a result thereof. The Buyer hereby agrees that, in the event that a dispute arises after the Closing between the Buyer, ACAS, ACEI, ACEII or the Securityholder Representative, PB or AP may represent ACAS, ACEI, ACEII or the Securityholder Representative in such dispute even though the interests of ACAS, ACEI, ACEII or the Securityholder Representative may be directly adverse to Buyer, the other Securityholders, the Company or the Subsidiaries, and even though PB or AP, as applicable, may have represented the Company or the Subsidiaries in a matter substantially related to such dispute, or may be handling ongoing matters for the Buyer, the Company or the Subsidiaries. The Buyer further agrees that, as to all communications among PB or AP and the Company, any Subsidiary, ACAS, ACEI, ACEII and/or the Securityholder Representative that relate in any way to the transactions contemplated by this Agreement, the attorney-client privilege and the expectation of client confidence belongs to the Securityholder Representative and may be controlled by the Securityholder Representative and shall not pass to or be claimed by the Buyer, the Company or any Subsidiary. Notwithstanding the foregoing, in the event that a dispute arises between the Buyer, the Company or any Subsidiary and a third party other than a party to this Agreement after the Closing, the Company or such Subsidiary may assert the attorney-client privilege to prevent disclosure of confidential communications by PB or AP to such third party; provided, however, that neither the Company nor such Subsidiary may waive such privilege without the prior written consent of PB or AP, as applicable. Each of PB and AP is an intended third party beneficiary of this Section 8.06 and shall be entitled to rely on the provisions hereof. 

     Section 8.07. Antitrust Filings. 

          (a) The Buyer, the Securityholder Representative and the Company shall, within three (3) Business Days after the date hereof, if required by the Antitrust Laws, file with the appropriate Governmental Authority all forms and documentation required to be filed by them under the Antitrust Laws concerning the transactions contemplated hereby, and shall request early termination of the waiting period, if applicable, under such Antitrust Laws. From the date of such filing until the Closing Date, the Buyer, the Securityholder Representative and the Company shall file all reports or other documents required or requested by the appropriate Governmental Authority under the Antitrust Laws, or otherwise and will comply promptly with any requests by such Governmental Authority for additional information concerning the transactions contemplated hereby, so that the waiting period specified in the Antitrust Laws will expire or terminate as soon as reasonably possible after the execution and delivery of this Agreement. The Buyer shall pay all filing fees required in connection with any filing required under the Antitrust Laws. The Buyer, the Securityholder Representative and the Company agree to use reasonable efforts to insure that any applicable waiting periods imposed under the Antitrust Laws terminate or expire as early as practicable. Without limiting the foregoing, the Buyer, the Securityholder Representative and the Company agree to use reasonable efforts to cooperate and oppose any preliminary injunction sought by any Governmental Body preventing the consummation of the transactions contemplated by this Agreement. 

          (b) The Buyer and the Securityholder Representative shall cause their respective counsel to furnish each other such necessary information and reasonable assistance as the other may reasonably request in connection with its preparation of necessary filings or submissions under the provisions of the Antitrust Laws. The Buyer and the Securityholder Representative will cause their respective counsel to supply to each other copies of all correspondence, filings or written communications by or to such party or its Affiliates with or from any Governmental Authority or staff members thereof, with respect to the transactions contemplated by this Agreement and any related or contemplated transactions, except for documents filed pursuant to Item 4(c) of the HSR Act Notification and Report Form or communications 

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regarding the same documents or information submitted in response to any request for additional information or documents pursuant to the Antitrust Laws that in each case reveal the Company’s or the Buyer’s negotiating objectives or strategies or purchase price expectations. 

     Section 8.08. WARN. For a period of one year following the Effective Time, the Buyer agrees to cause the Company and each of its Subsidiaries to provide any required notice under the WARN Act, or any similar law, and to otherwise comply with any such law with respect to any “plant closing” or “mass layoff” (as defined in the WARN Act or similar law) or similar event affecting the employees of the Company or any of its Subsidiaries. 

ARTICLE 9 
CONDITIONS TO CLOSING 

     Section 9.01. Conditions to the Buyer’s Obligations. The obligations of the Buyer to consummate the transactions contemplated by this Agreement are subject to the satisfaction (or the Buyer’s waiver) of the following conditions as of the Closing Date: 

          (a) the representations and warranties of the Company and the Securityholders contained in Article 3 and Article 4 hereof will be true and correct in all material respects (or, to the extent qualified by materiality within any such representation or warranty, true and correct in all respects) at and as of the time of the Closing (without taking into account any Updated Schedules delivered in accordance with Section 6.03 except to the extent that the disclosures in such Updated Schedules are the result of activities explicitly contemplated by this Agreement or permitted by Section 6.01), as if made on the Closing Date and the Closing Date were substituted for the date of this Agreement throughout such representations and warranties, except (i) to the extent that the failure of such representations and warranties to be true and correct has not caused a Material Adverse Effect, (ii) for activities explicitly contemplated by this Agreement or permitted by Section 6.01, and (iii) for those representations and warranties that address matters as of any other particular date (in which case such representations and warranties shall have been true and correct in all material respects (or, to the extent qualified by materiality within any such representation or warranty, true and correct in all respects) as of such particular date, except to the extent that the failure of such representations and warranties to have been true and correct as of such particular date has not caused a Material Adverse Effect); 

          (b) the Company and the Securityholders shall have performed in all material respects all of the covenants and agreements required to be performed by them under this Agreement at or prior to the Closing; 

          (c) all consents which are set forth on Schedule 9.01(c) hereto shall have been obtained; 

          (d) all material governmental filings and Approvals, including the Antitrust Approvals, that are required for the consummation of the transactions contemplated hereby and set forth on Schedule 9.01(d) hereto shall have been made and obtained; 

          (e) any applicable waiting period under the Antitrust Laws, including any extension, shall have expired or shall have been earlier terminated; 

          (f) no action, suit, claim or legal, administrative or arbitration proceeding or investigation shall be pending or, to the Knowledge of the Company, threatened before any Governmental Authority wherein an unfavorable decision issued pursuant to such action would reasonably be anticipated to (i) prevent consummation of any of the transactions contemplated by this Agreement, (ii) cause any of the transactions contemplated by this Agreement to be rescinded following consummation or (iii) permit consummation of the transactions contemplated by this Agreement only subject to any condition or restriction that has had or would reasonably be expected to have a Material Adverse Effect; 

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          (g) the Company shall have delivered to the Buyer a certificate, dated the Closing Date, stating that the preconditions specified in Sections 9.01(a) and 9.01(b), as they relate to the Company, have been satisfied; 

          (h) the Company shall have delivered a certificate of an officer of the Company (i) certifying and attaching the resolutions of the board of directors of the Company authorizing the consummation of the transactions set forth herein and (ii) certifying to the incumbency and signatures of the officers of the Company executing this Agreement and any other documents delivered pursuant to this Agreement; 

          (i) no Material Adverse Effect shall have occurred after the date of this Agreement; 

          (j) the Company shall have delivered evidence that the so-called “shareholder approval requirements” of Section 280G(b)(5)(B) of the Code and the regulations thereunder (including, without limitation, the 75 percent shareholder approval requirement and the adequate disclosure requirement) have been met with respect to each payment that would otherwise be treated as a parachute payment pursuant to Section 280G of the Code, including, without limitation, the matters referenced in the disclosures set forth in items 3 through 14 on Schedule 3.03(b)(iii); and 

          (k) each of the Securityholders set forth on Exhibit C shall have executed and delivered to the Buyer a Joinder Agreement. 

     Section 9.02. Conditions to the Company and the Securityholders’ Obligations. The obligation of the Company and the Securityholders to consummate the transactions contemplated by this Agreement is subject to the satisfaction (or the Securityholder Representative’s waiver) of the following conditions as of the Closing Date: 

          (a) The representations and warranties of the Buyer contained in Article 5 hereof shall have been true and correct in all material respects (or, to the extent qualified by materiality within any such representation or warranty, true and correct in all respects) as of the date of this Agreement and as of the Closing Date, except (i) for changes contemplated by this Agreement, and (ii) for those representations and warranties that address matters only as of the date of this Agreement or any other particular date (in which case such representations and warranties shall have been true and correct in all material respects (or, to the extent qualified by materiality within any such representation or warranty, true and correct in all respects) as of such particular date); 

          (b) the Buyer shall have performed in all material respects all of the covenants and agreements required to be performed by it under this Agreement at or prior to the Closing; 

          (c) all consents which are set forth on Schedule 9.01(c) hereto shall have been obtained; 

          (d) all material governmental filings and Approvals, including the Antitrust Approvals, that are required for the consummation of the transactions contemplated hereby and set forth on Schedule 9.01(d) hereto shall have been made and obtained; 

          (e) any applicable waiting period under the Antitrust Laws, including any extension, shall have expired or shall have been earlier terminated; 

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          (f) no action, suit, claim or legal, administrative or arbitration proceeding or investigation shall be pending or, to the Knowledge of the Company, threatened before any Governmental Authority wherein an unfavorable decision issued pursuant to such action would reasonably be anticipated to (i) prevent consummation of any of the transactions contemplated by this Agreement, (ii) cause any of the transactions contemplated by this Agreement to be rescinded following consummation or (iii) permit consummation of the transactions contemplated by this Agreement only subject to any condition or restriction that has had or would reasonably be expected to have a Material Adverse Effect; 

          (g) the Buyer shall have delivered to the Securityholder Representative a certificate of the Buyer, dated the Closing Date, stating that the preconditions specified in Sections 9.02(a)and 9.02(b), as they relate to the Buyer, have been satisfied. 

ARTICLE 10 
TERMINATION 

     Section 10.01. Termination. This Agreement may be terminated at any time prior to the Closing: 

          (a) by the mutual written consent of the Buyer and the Securityholder Representative; 

          (b) by the Buyer, if there has been a material breach by the Company or any Securityholder of any covenant or other agreement contained herein and such breach has not been waived by the Buyer or cured by the Company or such Securityholder within ten (10) Business Days after the Company’s or the Securityholder Representative’s receipt of written notice thereof from the Buyer; 

          (c) by the Securityholder Representative, if there has been a material breach by the Buyer of any covenant or other agreement contained herein and such breach has not been waived by the Securityholder Representative or cured by the Buyer within ten (10) Business Days after the Buyer’s receipt of written notice thereof from the Securityholder Representative; provided, that the failure to deliver the payments required by Sections 2.02 or 2.03as required hereunder shall not be subject to cure hereunder unless otherwise agreed to in writing by the Securityholder Representative; 

          (d) by the Buyer, if the transactions contemplated hereby have not been consummated on or before September 13, 2011; provided, that, if the only outstanding condition to closing (other than deliveries to be made at or as of the Closing) is the Antitrust Approvals required by Sections 9.01(d) and 9.02(d), then such date shall automatically be extended to October 13, 2011; provided, further, that the Buyer shall not be entitled to terminate this Agreement pursuant to this Section 10.01(d) if the Buyer’s knowing or willful breach of this Agreement has prevented the consummation of the transactions contemplated hereby; or 

          (e) by the Securityholder Representative, if the transactions contemplated hereby have not been consummated on or before September 13, 2011; provided, that, if the only outstanding condition to closing (other than deliveries to be made at or as of the Closing) is the Antitrust Approvals required by Sections 9.01(d) and 9.02(d), then such date shall automatically be extended to October 13, 2011; provided, further, that the Securityholder Representative shall not be entitled to terminate this Agreement pursuant to this Section 10.01(e) if the Company’s or the Securityholders’ knowing or willful breach of this Agreement has prevented the consummation of the transactions contemplated hereby. 

     The party desiring to terminate this Agreement pursuant to clauses (b), (c), (d) or (e) of this Section 10.01 shall give written notice of such termination to the other parties hereto. 

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     Section 10.02. Effect of Termination. In the event this Agreement is terminated by either the Buyer or the Securityholder Representative as provided in Section 10.01, the provisions of this Agreement shall immediately become void and of no further force and effect (other than Section 7.01 (Confidentiality), Section 7.06 (Contact with Employees, Customers and Suppliers), Section 8.03 (Public Announcements), this Section 10.02, Section 11.04 (Securityholder Representative) and Article 12, each of which shall survive the termination of this Agreement), and there shall be no liability on the part of the Buyer, the Company, the Securityholder Representative or any of the Securityholders to any other party hereto, except for willful breaches of this Agreement prior to the time of such termination and, in the case of the Buyer, any failure to have sufficiently available funds for the consummation of the transactions contemplated hereby or to pay the amounts due at Closing as set forth in Sections 2.02 and 2.03. 

ARTICLE 11 
INDEMNIFICATION/SECURITYHOLDER REPRESENTATIVE 

     Section 11.01. Survival Period. The representations, warranties, covenants and agreements set forth in this Agreement and in any certificates delivered at the Closing in connection with this Agreement shall survive for a period beginning on the Closing Date and ending on April 30, 2012 (the “Survival Period”), and shall thereafter be of no further force or effect; provided, that with respect to any covenant or agreement contained herein that expressly contemplates performance after the end of the Survival Period, the Survival Period for such covenant or agreement shall continue through the period of such contemplated performance provided further, that, (i) the representations and warranties set forth in Sections 3.01, 3.02, 3.03, 3.05, 3.14 (with respect to the first sentence thereof only), 4.01, 4.04, 4.05, 5.01, 5.02, 5.08 (the “Fundamental Representations”), and claims arising out of actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 shall survive the Closing indefinitely and (ii) the representations and warranties in Sections 3.06 and 3.19(the “Tax and ERISA Representations”) shall survive until the date that is ninety (90) days after the expiration of the statute of limitations applicable to the underlying action. 

     Section 11.02. Indemnification. 

          (a) Subject to the provisions of this Section 11.02 and Section 11.03 below, after the Closing, the Securityholders, severally but not jointly and severally, shall indemnify the Buyer and hold it harmless against any actual loss, liability, damage or expense (including reasonable legal fees and expenses, but excluding incidental, consequential or punitive damages or any liability for lost profits or the like or any damages or liability based on multiple of profits, multiple of cash flow or similar valuation methodology) (collectively, “Losses” and individually, a “Loss”) which the Buyer suffers as a result of any breach of the representations, warranties, covenants and agreements of the Company or the Securityholders set forth herein and as restated in any certificates delivered by or on behalf of the Company (or any Subsidiary) or the Securityholders at the Closing; provided, that the Buyer’s right to seek indemnification for such breaches shall be limited to an amount of Losses not to exceed the Cap except for Losses relating to or arising out of (i) (A) a breach of the Fundamental Representations, (B) a breach of the Tax and ERISA Representations, and (C) actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 by the Company, which shall be limited to an amount of such Losses not to exceed the Purchase Price, or (ii) actual fraud committed by a Securityholder in such Securityholder’s capacity as a securityholder of the Company, which shall be limited to an amount of such Losses; and provided, further, that the Buyer shall not be entitled to seek indemnification with respect to any individual Loss, unless such Loss is greater than $50,000 and unless such Loss, together with all other Losses that are greater than $50,000, exceeds $2,500,000, in which case the Buyer shall be entitled to indemnification only for the amount of such excess up to the Cap, the Purchase Price or the amount of such Losses, as applicable. 

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          (b) Subject to the provisions of this Section 11.02 and Section 11.03 below, after the Closing the Buyer shall indemnify the Securityholder Representative and each Securityholder and hold them harmless against any Loss which the Securityholder Representative or any Securityholder (as the case may be) suffers as a result of (i) any breach by the Buyer of its covenants, agreements, representations and warranties set forth herein and as restated in any certificates delivered by the Buyer at the Closing and any breach by the Company of its covenants or agreements herein following the Closing or (ii) the operations of the Company and the Subsidiaries following the Closing, including, without limitation, any personal injury or other product liability claim arising out of the ownership, possession or use of any product manufactured, distributed or sold by the Company or any of its Subsidiaries after the Closing Date. 

          (c) No Person shall be liable for any claim for indemnification under subsections (a) or (b) above unless written notice specifying in reasonable detail the nature of the claim for indemnification is delivered by the Person seeking indemnification to the Person from whom indemnification is sought prior to the expiration of the Survival Period, in which case the representation, warranty, covenant or agreement which is the subject of such claim shall survive, to the extent of such claim only, until such claim is resolved, whether or not the amount of the Losses resulting from such breach has been finally determined at the time the notice is given, if, but only if, (i) in the case of a claim made by reason of a Third Party Claim, the written notice is accompanied by a copy of the written notice of the third party claimant and (ii) in the case of any claim made other than by reason of a Third Party Claim, some Losses shall have been incurred in good faith at or prior to the date of such notice. 

          (d) Promptly after the assertion by any third party of any claim (a “Third Party Claim”) against any Person entitled to indemnification under this Section 11.02 (the “Indemnitee”) that results or may result in the incurrence by such Indemnitee of any Loss for which such Indemnitee would be entitled to indemnification pursuant to this Agreement, such Indemnitee shall promptly provide notice of such Third Party Claim to the parties from whom such indemnification could be sought (the “Indemnitors”) and, if the Securityholders are the Indemnitors, the Securityholder Representative. The Indemnitors may (and if the Indemnitors are the Securityholders, the Securityholders Representative may, at its option, on behalf of the Securityholders), assume the defense of the Indemnitee against such Third Party Claim, (including the employment of counsel and the payment of reasonable expenses). Any Indemnitee shall have the right to employ separate counsel in any such Third Party Claim and to participate in the defense thereof, but the fees and expenses of such counsel shall not be an expense of the Indemnitor unless (i) the Indemnitor shall have failed, within a reasonable time after having been notified by the Indemnitee of the existence of such Third Party Claim as provided in the preceding sentence, to assume the defense of such Third Party Claim or (ii) the employment of such counsel has been specifically authorized by the Indemnitor. In no event will an Indemnitee consent to the entry of any judgment or enter into any settlement with respect to any Third Party Claim without the prior written consent of the Indemnitor. 

          (e) The amount of any Loss subject to indemnification hereunder or of any claim therefor shall be calculated net of (i) any accruals or reserves on the Latest Balance Sheet that specifically relate to the matter(s) for which indemnification is claimed, (ii) any amounts actually recovered by an Indemnitee pursuant to any indemnification by or indemnification agreement with any non-affiliated third party (net of all direct collection expenses), (iii) any insurance proceeds or other cash receipts or sources of reimbursement received as an offset against such Loss (net of all direct collection expenses) received or receivable by the Buyer or the Company, any Subsidiary or any of their Affiliates on account of such Loss (each such source named in clauses (ii) and (iii), a “Collateral Source”), and (iv) any Tax Benefit inuring to the Buyer, the Company, any Subsidiary, or any of their Affiliates on account of such Loss. If the Buyer, the Company, any Subsidiary or any of their Affiliates receives a Tax Benefit after an indemnification payment is made, the Buyer shall promptly pay to the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages) the amount of such Tax Benefit at such time or times as and to the extent that such Tax Benefit is realized. For purposes hereof, “Tax Benefit” shall mean any refund of Taxes paid or reduction in the amount of Taxes which otherwise would have been paid, in each case computed at the effective tax rates. The Buyer, the Company 

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and the Subsidiaries shall seek full recovery of any Loss from all Collateral Sources covering such Loss to the same extent as they would if such Loss were not subject to indemnification hereunder. The Buyer, the Company and the Subsidiaries shall not terminate or cancel any insurance policies in effect for periods prior to the Closing. In the event that a recovery from a Collateral Source is made by the Buyer, the Company, any Subsidiary or any of their Affiliates with respect to any Loss for which any such Person has been indemnified hereunder, then a refund equal to the aggregate amount of the recovery (net of all direct collection expenses) shall be made promptly to the Securityholder Representative (on behalf of the Securityholders in accordance with their respective Securityholder Allocation Percentages). The Indemnitors shall be subrogated to all rights of the Indemnitees in respect of any Losses indemnified by the Indemnitors. 

          (f) Each Person entitled to indemnification hereunder shall take all reasonable steps to mitigate all losses, costs, expenses and damages after becoming aware of any event which could reasonably be expected to give rise to any losses, costs, expenses and damages that are indemnifiable or recoverable hereunder or in connection herewith. 

          (g) All indemnification payments made hereunder shall be treated by all parties as adjustments to the Purchase Price. 

          (h) Notwithstanding anything to the contrary contained in this Section 11.02, there shall be no recovery for any Loss or alleged Loss by the Buyer under this Section 11.02, and the Loss shall not be included in meeting the stated thresholds hereunder, to the extent such item has been included in the calculation of the Net Working Capital Amount or the Indebtedness Amount as determined pursuant to Section 2.04 hereof. 

          (i) There shall be no recovery for any Loss or alleged Loss by the Buyer for the conduct of any environmental investigatory, corrective or remedial action: (1) with respect to any conditions of contamination identified through any environmental sampling or analysis, or any report to any Governmental Authority, in either case which is not required by Environmental Requirements, or (2) except to the extent of such action necessary to attain compliance in a cost effective manner with Environmental Requirements assuming continued commercial or industrial use of the subject property and employing risk based standards and institutional controls where available. 

     Section 11.03. Limitation of Recourse. 

          (a) Except for Losses resulting from (i) actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 by the Company (which, in any case, will be subject to the limitations of Section 11.02(a) and Section 11.03(b)), or (ii) actual fraud committed by a Securityholder in such Securityholder’s capacity as a securityholder of the Company, the indemnification provided by Section 11.02(a) shall be the sole and exclusive remedy for any Losses of the Buyer, the Company or any Subsidiary with respect to any misrepresentation or inaccuracy in, or breach of, any representations or warranties or any breach or failure in performance of any covenants or agreements made by the Company, any Subsidiary, the Securityholder Representative or any Securityholder in this Agreement or in any exhibit or Schedules hereto or any certificate delivered hereunder. Each party acknowledges and agrees that, from and after the Closing, except: (i) for claims resulting from (A) actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 by the Company (which, in any case, will be subject to the limitations of Section 11.02(a) and Section 11.03(b)) or (B) actual fraud committed by a Securityholder in such Securityholder’s capacity as a securityholder of the Company; (ii) for claims of, or causes of action for which the sole remedy sought is equitable relief; or (iii) for specific performance of obligations to be performed after the Closing Date, the sole and exclusive remedy of the parties hereto for breach of this Agreement shall be indemnification in accordance with this Article 11. 

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          (b) Each Securityholder’s liability for each Loss shall be limited to such Securityholder’s Securityholder Allocation Percentage multiplied by the amount of such Loss. In no event shall the aggregate amount of Losses payable by any Securityholder in respect of claims for indemnification exceed such Securityholder’s Securityholder Allocation Percentage multiplied by the Cap; provided that, each Securityholder’s liability for Losses in respect of claims relating to or arising out of (i)(A) a breach of the Fundamental Representations, (B) a breach of the Tax and ERISA Representations, and (C) actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 by the Company shall not exceed such Securityholder’s Securityholder Allocation Percentage multiplied by the Purchase Price, and (ii) actual fraud or an intentional and knowing breach of subsections (b) – (k) of Section 6.01 by such Securityholder shall not exceed the amount of such Loss. 

          (c) No Securityholder shall have any liability for a breach of any other Securityholder’s representations, warranties, covenants or agreements in this Agreement, or the actual fraud committed by any other Securityholder in such other Securityholder’s capacity as a securityholder of the Company, and, in each case, the Buyer shall have no right to seek indemnification from any other Securityholder for any portion of such Loss. 

          (d) No claim shall be brought or maintained by the Buyer, the Company or any Subsidiary or their respective successors or permitted assigns against any officer, director, employee (present or former) or Affiliate of any party hereto which is not otherwise expressly identified as a party hereto, and no recourse shall be brought or granted against any of them in such capacities, by virtue of or based upon any alleged misrepresentation or inaccuracy in or breach of any of the representations, warranties or covenants of any party hereto set forth or contained in this Agreement or any exhibit or Schedule hereto or any certificate delivered hereunder. 

          (e) The Buyer shall not have any right to assert any claim against the Securityholders with respect to any Loss, cause of action or other claim to the extent such Loss is a Loss, cause of action or claim with respect to which the Buyer or any of its Affiliates has taken action (or caused action to be taken) with the primary intent of accelerating the time period in which such matter is asserted or payable in order to cause a claim to be made prior to the applicable expiration date set forth in Section 11.01. 

     Section 11.04. Securityholder Representative. 

          (a) Each Securityholder hereby appoints ACAS as the “Securityholder Representative” to act as the agent of the Securityholders with the full power (i) to resolve all questions, disputes, conflicts and controversies concerning Losses as provided in this Article 11, (ii) to execute and enter into, on behalf of the Securityholders, and to take all actions thereunder for and on their behalf, including but not limited the authorization of payments from the Reserve Account (including any increase thereof pursuant to Section 2.04(b)(i)) in connection with Losses as provided herein, (iii) to negotiate and/or settle all claims under this Agreement, (iv) to receive from the Buyer monies payable to the Securityholders in accordance with the provisions of this Agreement, (v) to otherwise take such actions (or refrain from taking actions) and execute such documents (including any modifications, waivers or amendments thereto) on the Securityholders’ behalf in connection with this Agreement as the Securityholder Representative, in its sole discretion, deems proper, (vi) to pay, release and/or distribute any or all of the Reserve Account or otherwise to pay Losses hereunder, each in its sole discretion, (vii) to adjust the Securityholder Allocation Percentage of the Reserve Account otherwise payable to any particular Securityholder as a result of the payment of Losses resulting from breaches of such Securityholder’s representations, warranties, covenants or agreements hereunder) and (viii) to perform all of the functions of the Securityholder Representative under this Agreement. The Buyer is entitled to rely on the acts and agreements of the Securityholder Representative as the acts and agreements of the Securityholders. The Securityholder Representative shall be entitled to retain counsel and to incur such reasonable expenses (including court costs and reasonable 

40

 

attorney’s fees and expenses) as the Securityholder Representative deems to be reasonably necessary or appropriate in connection with its performance of its obligations under this Agreement, and all such fees and expenses incurred by the Securityholder Representative shall be borne pro rata by the Securityholders based upon their respective initial Securityholder Allocation Percentages. 

          (b) The Securityholders hereby agree severally to indemnify the Securityholder Representative (in its capacity as such), on a pro rata basis based upon their respective Securityholder Allocation Percentages, against, and to hold the Securityholder Representative (in its capacity as such) harmless from (and the Securityholder Representative shall have the right to deduct from the Reserve Account or, after the exhaustion thereof, to seek payment directly from the Securityholders for the amount of), any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of whatever kind which may at any time be imposed upon, incurred by or asserted against the Securityholder Representative in such capacity in any way relating to or arising out of its action or failure to take action pursuant to this Agreement or in connection herewith in such capacity; provided, that none of the Securityholders shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting solely from the gross negligence or willful misconduct of the Securityholder Representative. The Securityholder Representative may from time to time submit invoices to the Securityholders covering such expenses and/or liabilities and, upon the request of any Securityholder, shall provide such Securityholder with an accounting of all expenses paid. In addition to any other rights or remedies (including Section 11.02(d)), the Securityholder Representative may, upon prior or contemporaneous written notice, offset any amounts determined by it to be owed to the Securityholder Representative against the Reserve Account and against any amounts to be paid to the Securityholders hereunder. The agreements in this Section 11.04 shall survive termination of this Agreement. 

          (c) The Buyer shall be fully protected in dealing with the Securityholder Representative under this Agreement and may rely upon the authority of the Securityholder Representative to act on behalf of the Securityholders. Any payment by the Buyer to the Securityholder Representative to the extent authorized under this Agreement shall be considered a payment by the Buyer to the Securityholders. The appointment of the Securityholder Representative is coupled with an interest and shall be irrevocable by any Securityholder in any manner or for any reason. This power of attorney shall not be affected by the death, illness, dissolution, disability, incapacity or other inability to act of the principal pursuant to any applicable Law. 

          (d) The Securityholder Representative may resign from its capacity as Securityholder Representative at any time by written notice delivered to the Buyer and the Securityholders. If there is a vacancy at any time in the position of Securityholder Representative for any reason, such vacancy shall be filled by a Securityholders vote in the form of a writing executed by the Securityholders entitled to a majority of the number of votes referred to in the next sentence. In such event, each Securityholder shall have a number of votes equal to such Securityholder’s Securityholder Allocation Percentage multiplied by 100 and the authorization of a majority of such number of votes shall be binding on all of the Securityholders and shall constitute the authorization of the Securityholders. 

          (e) The Securityholder Representative shall not be liable to the Buyer or the Securityholders in its capacity as the Securityholder Representative for any liability of a Securityholder or for any error of judgment, or any act done or step taken or omitted by it believed by it to be in good faith or for any mistake in fact or law, or for anything which it may do or refrain from doing in connection with this Agreement except in the case of gross negligence or willful misconduct by it. The Securityholder Representative may seek the advice of reputable legal counsel in the event of any dispute or question as to the construction of any of the provisions of this Agreement or its duties hereunder, and it shall incur no liability in its capacity as Securityholder Representative to the Buyer or the Securityholders and shall be fully protected with respect to any action taken, omitted or suffered by it in good faith in accordance with the opinion of such counsel.

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ARTICLE 12
MISCELLANEOUS 

     Section 12.01. Notices. All notices, requests and other communications to any party hereunder shall be in writing (including facsimile transmission) and shall be given, 

     if to the Company (after the Closing) or to the Buyer, then to: 

Nordson Corporation
28601 Clemens Road
Westlake, Ohio 44145
Attn: Robert Veillette, Vice President, General Counsel and Secretary
Fax: 440-892-9253 

     with a copy to: 

Ulmer & Berne LLP
1660 West 2nd St., Suite 1100
Cleveland, OH 44113-1448
Attn: Peter A. Rome, Esq.
Fax: 216-583-7005 

or, if to the Company (before the Closing), ACAS, ACEI, ACEII or the Securityholder Representative, then to: 

American Capital, Ltd.
Two Bethesda Metro Center, 14th floor
Bethesda, Maryland 20814 

Attn: Compliance Officer
Fax: (301) 659-6714 

          with copies to (which copies shall not constitute notice):

American Capital, Ltd.
2200 Ross Avenue, Suite 5000E
Dallas, Texas 75201
Attn: Kyle Bradford
Fax: (214) 273-6635 

          and

Patton Boggs LLP
2000 McKinney Avenue, Suite 1700
Dallas, Texas 75201
Attn: Akash D. Sethi
Fax: (214) 758-1550 

     and, for notices to the Company (before the Closing), with a copy to (which shall not constitute notice): 

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VP Acquisition Holdings, Inc.
c/o Value Plastics, Inc.
3325 South Timberline Road
Fort Collins, CO 80525
Attn: Chief Financial Officer
Fax: (970) 267-2063 

          or, if to any other Securityholder, at the address set forth below such Securityholder’s name on the signature pages hereto or the Joinder Agreement, as applicable. 

          All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received on a Business Day in the place of receipt prior to 5:00 p.m. in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt. 

     Section 12.02. Amendments and Waivers. 

          (a) Except as otherwise provided herein, any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by the Buyer and the Securityholder Representative, or in the case of a waiver, by the party against whom the waiver (in the case of any Securityholder, the Securityholder Representative) is to be effective.

          (b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 

     Section 12.03. Construction; Severability. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any Person. The headings of the sections and paragraphs of this Agreement have been inserted for convenience of reference only and shall in no way restrict or otherwise modify any of the terms or provisions hereof. In the event a subject matter is addressed in more than one representation and warranty in Article 3, the Buyer shall be entitled to rely only on the most specific representation and warranty addressing such subject matter. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but, if any provision of this Agreement is held to be prohibited by or invalid under applicable Law, then such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. Unless otherwise indicated, references in this Agreement to $ or dollars are to U.S. dollars. 

     Section 12.04. Expenses. Except as otherwise provided herein, and subject to Section 11.04, each party shall pay all of its own fees, costs and expenses (including, without limitation, fees, costs and expenses of legal counsel, investment bankers, brokers or other representatives and consultants and appraisal fees, costs and expenses) incurred in connection with the negotiation of this Agreement and the other agreements contemplated hereby, the performance of its obligations hereunder and thereunder, and the consummation of the transactions contemplated hereby and thereby; provided, that the Buyer shall pay any and all expenses relating to surveys, title insurance, and any other filings and consents required in connection with the transactions contemplated by this Agreement; and provided, further, that all fees payable by the Buyer, the Company, any Subsidiary or the Securityholders in connection with the Antitrust Approvals shall be paid by the Buyer. 

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     Section 12.05. Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided, that no party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the consent of each other party hereto, except (i) that Buyer may assign this Agreement to an Affiliate (an “Assignee”) provided that Buyer remains liable for the obligations, representations, warranties, covenants and agreements of Assignee hereunder, and (ii) that following the Closing, the Securityholder Representative may assign, delegate or otherwise transfer any of its rights to one or more of its Affiliates. Notwithstanding the foregoing, upon notice to the Securityholder Representative, the Buyer may assign any or all of its rights and obligations under this Agreement to any lender to the Buyer as security for indebtedness to any such lender with respect to a financing arrangement in connection with the transactions contemplated under this Agreement. 

     Section 12.06. Governing Law. All issues and questions concerning the construction, validity, interpretation and enforceability of this Agreement and the exhibits and Schedules hereto shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. 

     Section 12.07. Arbitration. 

          (a) Except for the matters set forth in Section 2.04(a) and the rights of the parties to equitable relief pursuant to Section 12.10, any dispute, controversy, or claim under, arising out of, or relating in any way to this Agreement and/or the negotiation, inducement, validity, interpretation, or breach thereof shall be resolved solely and exclusively by binding arbitration. Such arbitration shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association in effect at the time a demand for arbitration is made, and the provisions of this Section. In the event of a conflict between the provisions of this Section and the Commercial Arbitration Rules, the provisions of this Section shall govern.

          (b) Any dispute, controversy, or claim shall be deemed submitted to arbitration under this Section upon the filing with the Washington, D.C. office of the American Arbitration Association and delivery to the parties hereto of a written demand for arbitration, which demand shall describe in reasonable detail the facts and legal grounds forming the basis for the claim and any request for relief. The arbitration shall be conducted before a panel of three (3) arbitrators (the “Panel”) who are mutually agreeable to the parties. If the parties cannot mutually agree upon the selection of an arbitrator, the arbitrator shall be selected in accordance with the rules of the then-effective Commercial Arbitration Rules of the American Arbitration Association. The arbitration shall be held in New York, New York, or at another location if agreed to by all parties.

          (c) The arbitration hearing shall commence within one hundred and twenty (120) calendar days of the selection of the arbitrator and shall proceed and be completed expeditiously thereafter.

          (d) Unless otherwise ordered by the Panel upon application by a party and good cause shown by such party, discovery for each party shall be limited to fifteen (15) interrogatories, twenty-five (25) requests for production of documents, and three (3) depositions. All issues concerning discovery (including the scope of discovery) upon which the parties cannot agree shall be submitted to the arbitrator for determination.

          (e) Each party shall identify, no less than twenty (20) business days before the date of the commencement of the arbitration hearing, all persons that may testify at the arbitration hearing, all exhibits to be introduced into evidence at the arbitration hearing, and all documents considered, used, or relied upon by any witness in support of or in connection with that witness’ testimony at the arbitration hearing.

44

 

          (f) In rendering an award, the arbitrator shall determine the rights and obligations of the parties according to the laws of the State of Delaware, except as otherwise expressly provided in this Section.

          (g) The arbitrator’s decision and award shall be made in writing and shall be issued in a final, confirmable form no more than forty-five (45) calendar days after the commencement of the arbitration hearing. The arbitrator shall not have the power to award damages that are specifically excluded under this Agreement, and each party hereby irrevocably waives any claim to such damages. The decision and award of the arbitrator shall be final and binding on the parties and shall not be subject to appeal. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. 

          (h) Notwithstanding the provisions of Sections 11.02(a) and (b), and subject to Section 11.04, each party shall bear its own costs and fees in connection with any arbitration conducted pursuant to this Section 12.07 and any proceedings in connection therewith.

          (i) Any party unsuccessfully refusing to comply with an order of the arbitrator shall be liable for costs and expenses, including reasonable attorneys’ fees, incurred by the other party in enforcing the order.

     Section 12.08. Forum. Except for the dispute resolution procedures otherwise set forth in Section 2.04(a) and the rights of the parties to seek equitable relief pursuant to Section 12.10, each party agrees that any suit, action or proceeding brought by such party against the other in connection with or arising from this Agreement shall be subject to the arbitration provisions set forth in Section 12.07. Any equitable remedies sought in connection with this Agreement (“Judicial Action”) shall be brought against any of the parties only in any United States federal or state court located in the State of Delaware and each of the parties hereto hereby consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such Judicial Action and waives any objection to venue laid therein. Process in any such Judicial Action proceeding may be served on any party anywhere in the world, whether within or without the State of Delaware. Without limiting the generality of the foregoing, each party hereto agrees that service of process upon such party at the address referred to in Section 12.01, together with written notice of such service to such party, shall be deemed effective service of process upon such party. 

     Section 12.09. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY LEGAL PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12.09. 

     Section 12.10. Specific Performance. Each of the parties hereto acknowledges that the rights of each party to consummate the transactions contemplated hereby are unique and recognize and affirm that in the event of a breach of this Agreement by any party, money damages may be inadequate and the non-breaching party may have no adequate remedy at law. Accordingly, the parties agree that such non-breaching party shall have the right, in addition to any other rights and remedies existing in their favor at law or in equity, to enforce their rights and the other party’s obligations hereunder not only by an action or actions for damages but also by an action or actions for specific performance, injunctive and/or other equitable relief (without posting of bond or other security). 

45

 

     Section 12.11. Prevailing Party. If any litigation or other court action, arbitration or similar adjudicatory proceeding is commenced by any party hereto to enforce its rights under this Agreement against any other party, all fees, costs and expenses, including, without limitation, reasonable attorneys fees and court costs, incurred by the prevailing party in such litigation, action, arbitration or proceeding shall be reimbursed by the losing party; provided, that if a party to such litigation, action, arbitration or proceeding prevails in part, and loses in part, then the court, arbitrator or other adjudicator presiding over such litigation, action, arbitration or proceeding shall award a reimbursement of the fees, costs and expenses incurred by such party on an equitable basis. For the avoidance of doubt, the foregoing sentence shall not apply to any fees, costs or expenses in connection with Section 2.04(a) or as contemplated by Section 12.07(h). 

     Section 12.12. Counterparts; Third Party Beneficiaries. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other parties hereto. Except as otherwise specifically set forth herein (including specifically, but not limited to, the Persons not party hereto entitled to the benefits of Sections 7.04, 8.06, 11.01, 11.02 and 11.03), no provision of this Agreement is intended to confer upon any Person other than the parties hereto any rights or remedies hereunder. 

     Section 12.13. Entire Agreement. This Agreement and the documents referred to herein (including the Confidentiality Agreement) contain the complete agreement between the parties hereto and supersede any other prior understandings, agreements, representations or warranties by or between the parties, written or oral, which may have related to the subject matter hereof in any way. 

     Section 12.14. Termination of Agreements. Each Securityholder (other than ACAS for the sole purpose of the enforcement by ACAS of the provisions thereof prior to the Closing), to the extent a party thereto, agrees that the Stockholders Agreement and that certain Agreement dated October 14, 2005 between the Company and its Subsidiaries, on the one hand, and ACAS, on the other hand (together, the “Terminating Agreements”) shall be of no further force or effect from and after the Closing, and hereby waives any and all (i) notice requirements and (ii) rights or restrictions with respect to the transfer of the shares of Common Stock of the Company set forth in the Stockholders Agreement. Each Securityholder (other than ACAS for the sole purpose of the enforcement by ACAS of the provisions thereof prior to the Closing), to the extent a party thereto, hereby waives any and all rights under the Terminating Agreements, and, except for the continuing obligations provided for herein, releases all other parties to the Terminating Agreements from all obligations, commitments, liabilities or claims arising thereunder. 

* * * 

 

 

46

 

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

BUYER :

 

	
NORDSON CORPORATION

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:
	
 

	
 
	
 
	
Title:
	
 

 

[Additional Signature Pages Follow] 

[Signature Page to Stock Purchase Agreement] 

 

 

COMPANY :

 

	
VP ACQUISITION HOLDINGS, INC.

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:
	
 

	
 
	
 
	
Title:
	
 

 

[Additional Signature Pages Follow] 

[Signature Page to Stock Purchase Agreement] 

 

 

STOCKHOLDERS :

 

	
AMERICAN CAPITAL, LTD.

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:
	
 

	
 
	
 
	
Title:
	
 

 

	
AMERICAN CAPITAL EQUITY I, LLC

	
 
	
 
	
 

	
By:
	
 
	
American Capital Equity Management,

	
 
	
 
	
LLC, its Manager 

 

	
 

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:
	
 

	
 
	
 
	
Title:
	
 

 

	
AMERICAN CAPITAL EQUITY II, LP

	
 
	
 
	
 

	
By:
	
 
	
American Capital Equity Management II, 

	
 
	
 
	
LLC, its General Partner 

 

	
 

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:
	
 

	
 
	
 
	
Title:
	
 

 

[Additional Signature Pages Follow] 

[Signature Page to Stock Purchase Agreement] 

 

 

STOCKHOLDERS (cont.):

 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Jim Pisula

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Jeff Jensen

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Bruce Williams

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
John Gibson

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Charles Philipp

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 

[Additional Signature Pages Follow] 

[Signature Page to Stock Purchase Agreement] 

 

 

OPTIONHOLDERS :

 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Bruce Williams

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
John Gibson

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Charles Philipp

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Terry Gibbons

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 

 

[Additional Signature Page Follows] 

[Signature Page to Stock Purchase Agreement] 

 

 

SECURITYHOLDER REPRESENTATIVE :

 

	
 
	
 
	
 
	
 

	
 
	
AMERICAN CAPITAL, LTD., solely in its 
capacity as Securityholder Representative

	
 
	
 

	
 
	
By:  
	
 

	
 
	
 
	
Name:  
	
 

	
 
	
 
	
Title:  
	
 

 

[Signature Page to Stock Purchase Agreement] 

 

 

Exhibit A

Initial Securityholder Allocation 

 

	
Names
	
 
	
 
	
Initial

Securityholder

Allocation (%)1
	
 
	
 
	
Estimated

Purchase Price ($)2
	
 
	
 
	
 
	
Reserve

Account ($)3
	
 

	
American Capital, Ltd.
	
 
	
 
	
 
	
50.2937
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
502,936.82
	
 

	
American Capital Equity I, LLC
	
 
	
 
	
 
	
25.8791
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
258,791.20
	
 

	
American Capital Equity II, LP
	
 
	
 
	
 
	
10.0943
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
100,943.30
	
 

	
Jeff Jensen
	
 
	
 
	
 
	
0.8136
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
8,136.49
	
 

	
Jim Pisula
	
 
	
 
	
 
	
1.0171
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
10,170.61
	
 

	
Terry Gibbons
	
 
	
 
	
 
	
1.8002
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
18,001.98
	
 

	
John Gibson
	
 
	
 
	
 
	
2.5172
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
25,172.26
	
 

	
Charles Philipp
	
 
	
 
	
 
	
2.0901
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
20,900.61
	
 

	
Bruce Williams
	
 
	
 
	
 
	
5.4947
	
%
	
 
	
 
	
 
	
 
	
 
	
 
	
$
	
54,946.73
	
 

	
TOTAL
	
 
	
 
	
 
	
100.0
	
%
	
 
	
$
	
 
	
 
	
 
	
 
	
$
	
1,000,000.00
	
 

 

	
1.
	
Subject to adjustment as set forth in the definition of “Security Allocation Percentage” and Section 11.04.

	
2.
	
Subject to adjustment pursuant to Section 2.04.

	
3.
	
Amounts subject to increase pursuant to Section 2.05.

 

 

 

Exhibit B

Transaction Expenses4 

 

	
4
	
To be provided at least 2 Business Days prior to the Closing Date.

 

 

 

Exhibit C

Securityholders Party to Joinder Agreements

Jeff Jensen 

 

 

 

Exhibit D

Joinder Agreement

 

 

 

Schedule 1.01

Persons With Knowledge

Bruce Williams

Terry Gibbons

John Gibson

Chuck Philipp 

 

 

 

Schedule 2.01(f)

Net Working Capital

None. 

  

 

 

Schedule 2.03(b)(v)

Indebtedness to be Repaid1 

Indebtedness to ACAS and its affiliates. 

	
1 
	
To be provided at least 2 Business Days prior to the Closing Date.

 

 

Schedule 9.01(c)

Required Consents

None. 

 

 

 

Schedule 9.01(d)

Governmental Approvals

The Anti-Trust Approvals. 

 

 

General Information

 

	
EDGAR File Number
	
000-07977

	
 
	
 

	
Filing Date
	
Sept 09, 2011 08:33:42

	
 
	
 

	
Filer (CIK)
	
NORDSON CORP~0000072331

	
 
	
 

	
EDGAR Form Family
	
Form 10-Q Quarterly Reports

	
 
	
 

	
Period Date
	
Jul 31, 2011

	
 
	
 

	
Industry(SIC)
	
General Industrial Machinery & Equipment, NEC [3569]

	
 
	
 

	
Form Type
	
Form 10-QEXHIBIT 4.1

 

EXECUTION COPY

 

 

 

 

 

 

 

SECOND AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT

 

 

Dated as of December 12, 2016

 

 

______________________________________________________________________________

 

 

AMERICA’S CAR-MART, INC.,
a Texas corporation

 

as Parent,

 

COLONIAL AUTO FINANCE, INC., an
Arkansas corporation

 

AMERICA’S CAR MART, INC.,
an Arkansas corporation

 

TEXAS CAR-MART, INC., a
Texas corporation

 

as Borrowers

 

______________________________________________________________________________

 

 

CERTAIN FINANCIAL INSTITUTIONS,

 

as Lenders

 

BANK OF AMERICA, N.A.,

 

as Agent, Lead Arranger and Book
Manager

 

 

 

 

 

 

     

     

    

Table of Contents

 

	 	 	Page
	 	 	 
	SECTION 1  	DEFINITIONS; RULES OF CONSTRUCTION	1
	1.1.	Definitions	1
	1.2.	Accounting Terms	30
	1.3.	Uniform Commercial Code	31
	1.4.	Certain Matters of Construction	31
	SECTION 2	CREDIT FACILITIES	31
	2.1.	Colonial Revolver Commitment	31
	2.2.	ACM-TCM Revolver Commitment	33
	2.3.	Colonial Letter of Credit Facility	35
	SECTION 3	INTEREST, FEES AND CHARGES	37
	3.1.	Interest	38
	3.2.	Fees	39
	3.3.	Computation of Interest, Fees, Yield Protection	39
	3.4.	Reimbursement Obligations	40
	3.5.	Illegality	40
	3.6.	Inability to Determine Rates	40
	3.7.	Increased Costs; Capital Adequacy	41
	3.8.	Mitigation	42
	3.9.	Funding Losses	42
	3.10.	Maximum Interest	42
	SECTION 4	LOAN ADMINISTRATION	42
	4.1.	Manner of Borrowing and Funding Revolver Loans	42
	4.2.	Defaulting Lender	44
	4.3.	Number and Amount of LIBOR Loans; Determination of Rate	45
	4.4.	[RESERVED]	45
	4.5.	[RESERVED]	45
	4.6.	Effect of Termination	45
	SECTION 5	PAYMENTS	45
	5.1.	General Payment Provisions	45
	5.2.	Repayment of Revolver Loans	45
	5.3.	[RESERVED]	46
	5.4.	Payment of Other Obligations	46
	 	 	 
	

    i 

     

    

	 	 	 
	Table of Contents

(continued)

	 	 	 
	 	 	Page

	 	 	 
	5.5.	Marshaling; Payments Set Aside	46
	5.6.	Application and Allocation of Payments	46
	5.7.	Dominion Account	47
	5.8.	Loan Account; Account Stated	47
	5.9.	Taxes	48
	5.10.	Lender Tax Information	49
	5.11.	Nature and Extent of Each Borrower’s Liability	51
	SECTION 6	CONDITIONS PRECEDENT/POST CLOSING DELIVERABLES	53
	6.1.	Conditions Precedent to Initial Revolver Loans	53
	6.2.	Conditions Precedent to All Credit Extensions	54
	6.3.	Post Closing Deliverables	55
	SECTION 7	COLLATERAL	55
	7.1.	Grants of Security Interests	55
	7.2.	Lien on Deposit Accounts; Cash Collateral	57
	7.3.	[RESERVED]	57
	7.4.	Other Collateral	57
	7.5.	Limitations	57
	7.6.	Further Assurances	57
	7.7.	Contract Legend	58
	SECTION 8	COLLATERAL ADMINISTRATION	58
	8.1.	Collateral Reporting	58
	8.2.	Administration of Contracts	59
	8.3.	Inventory	60
	8.4.	Administration of Equipment	60
	8.5.	Deposit Accounts	61
	8.6.	General Provisions	61
	8.7.	Power of Attorney	62
	SECTION 9	REPRESENTATIONS AND WARRANTIES	62
	9.1.	General Representations and Warranties	62
	9.2.	Complete Disclosure	67
	SECTION 10	COVENANTS AND CONTINUING AGREEMENTS	67
	10.1.	Affirmative Covenants	67
	 	 	 
	

    ii 

     

    

	 	 	 
	Table of Contents

(continued)

	 	 	 
	 	 	Page

	 	 	 
	10.2.	Negative Covenants	71
	10.3.	Financial Covenants	75
	10.4.	Adjustment to EBITDA and Adjusted Tangible Net Worth	75
	SECTION 11	EVENTS OF DEFAULT; REMEDIES ON DEFAULT	75
	11.1.	Events of Default	75
	11.2.	Remedies upon Default	76
	11.3.	License	77
	11.4.	Setoff	77
	11.5.	Remedies Cumulative; No Waiver	77
	SECTION 12	AGENT	78
	12.1.	Appointment, Authority and Duties of Agent	78
	12.2.	Agreements Regarding Collateral and Field Examination Reports	79
	12.3.	Reliance By Agent	80
	12.4.	Action Upon Default	80
	12.5.	Ratable Sharing	80
	12.6.	Indemnification	80
	12.7.	Limitation on Responsibilities of Agent	81
	12.8.	Successor Agent and Co-Agents	81
	12.9.	Due Diligence and Non-Reliance	81
	12.10.	Remittance of Payments and Collections	82
	12.11.	Individual Capacities	82
	12.12.	Titles	83
	12.13.	Bank Product Providers	83
	12.14.	No Third Party Beneficiaries	83
	SECTION 13	BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS	83
	13.1.	Successors and Assigns	83
	13.2.	Participations	83
	13.3.	Assignments	84
	13.4.	Replacement of Certain Lenders	85
	SECTION 14	MISCELLANEOUS	85
	14.1.	Consents, Amendments and Waivers	85
	14.2.	Indemnity	86
	 	 	 
	

    iii 

     

    

	 	 	 
	Table of Contents

(continued)

	 	 	 
	 	 	Page

	 	 	 
	14.3.	Notices and Communications	86
	14.4.	Performance of Borrowers’ Obligations	87
	14.5.	Credit Inquiries	87
	14.6.	Severability	87
	14.7.	Cumulative Effect; Conflict of Terms	87
	14.8.	Counterparts; Execution	88
	14.9.	Entire Agreement	88
	14.10.	Relationship with Lenders	88
	14.11.	No Advisory or Fiduciary Responsibility	88
	14.12.	Confidentiality	88
	14.13.	[RESERVED]	89
	14.14.	GOVERNING LAW	89
	14.15.	Consent to Forum; Judicial Reference; Bail-In of EEA Financial Institutions	89
	14.16.	Waivers by Borrowers	90
	14.17.	Patriot Act Notice	90
	14.18.	Amendment and Restatement of First Amended Loan Agreement	91

 

 

    iv 

     

    

LIST OF EXHIBITS
AND SCHEDULES

 

	Exhibit A	[Form] Colonial Revolver Note 
	Exhibit B	[Form] ACM-TCM Revolver Note
	Exhibit C	[Form] Assignment 
	Exhibit D	[Form] Assignment Notice
	Exhibit E 	[Forms] of U.S. Tax Compliance Certificates
	 	 
	Schedule 1.1	Commitments of Lenders
	Schedule 8.5	Deposit Accounts
	Schedule 8.6.1	Business Locations
	Schedule 9.1.4	Names and Capital Structure
	Schedule 9.1.11	Patents, Trademarks, Copyrights and Licenses
	Schedule 9.1.14	Environmental Matters
	Schedule 9.1.15	Restrictive Agreements
	Schedule 9.1.16	Litigation
	Schedule 9.1.18	Pension Plans
	Schedule 9.1.20	Labor Contracts
	Schedule 10.2.2	Existing Liens
	Schedule 10.2.17  	Existing Affiliate Transactions

 

 

 

 

 

    v 

     

    

SECOND AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT

 

THIS SECOND AMENDED AND RESTATED LOAN AND
SECURITY AGREEMENT (this “Agreement”) is dated as of December 12, 2016, by and among AMERICA’S
CAR-MART, INC., a Texas corporation (“Parent”), COLONIAL AUTO FINANCE, INC., an Arkansas corporation
(“Colonial”), AMERICA’S CAR MART, INC., an Arkansas corporation (“ACM”), TEXAS
CAR-MART, INC., a Texas corporation (“TCM”)(each of Colonial, ACM and TCM, a “Borrower”,
and collectively, “Borrowers”), the financial institutions party to this Agreement from time to time (“Lenders”),
and BANK OF AMERICA, N.A., a national banking association (“Bank of America”) as administrative agent
for the Lenders (in such capacity, “Agent”), Book Manager, and lead arranger for the Lenders.

 

R E C I T A L S:

 

WHEREAS, Parent and Borrowers have previously
entered into that certain Loan and Security Agreement dated November 4, 2010, as amended, supplemented, or restated from time to
time, with various lenders party thereto, Bank of Arkansas, N.A. as agent, and co-lead arranger for such lenders and Bank of America,
N.A. as collateral agent and co-lead arranger, pursuant to which Borrowers have obtained revolving lines of credit (as amended,
restated, supplemented or otherwise modified from time to time, the “Original Loan Agreement”);

 

WHEREAS, Parent, Borrowers, Lenders and Agent
entered into that certain Amended and Restated Loan and Security Agreement dated as of March 9, 2012, which amended and restated
the Original Loan Agreement in its entirety (as amended, restated, supplemented or otherwise modified from time to time, the “First
Amended Loan Agreement”); and

 

WHEREAS, Parent and Borrowers have requested
that Agent and Lenders continue to provide credit facilities to Borrowers and to amend and restate, in its entirety, the First
Amended Loan Agreement and all loan documents executed in connection therewith. Lenders are willing to provide the credit facility
and amend and restates the First Amended Loan Agreement on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, for valuable consideration
hereby acknowledged, the parties agree as follows:

 

SECTION 1       
DEFINITIONS; RULES OF CONSTRUCTION

 

1.1.           
Definitions. As used herein, the following terms have the meanings set forth below:

 

2011-2012 Treasury Stock Transactions:
the first $20,000,000 of repurchase of Parent’s Equity Interests from the holders of such Equity Interests consummated prior
to April 30, 2012 for the Fiscal Year ending April 30, 2012.

 

ACM: as defined in the Preamble to this
Agreement.

 

ACM-TCM Availability: the ACM-TCM Borrowing
Base minus the principal balance of all ACM-TCM Revolver Loans.

 

ACM-TCM Availability Reserve: the sum
(without duplication) of (a) the portion of the Rent and Charges Reserve relating to ACM and TCM; (b) the Bank Product Reserve
applicable to ACM and TCM as determined by Agent; (c) the aggregate amount of liabilities secured by Liens upon ACM-TCM Collateral
that are senior to Agent’s Liens (but imposition of any such reserve shall not waive an Event of Default arising therefrom);
and (d) such additional reserves, in such amounts and with respect to such matters, as Agent in its discretion may elect to impose
from time to time. Agent shall endeavor to notify Borrowers at or before the time any ACM-TCM Availability Reserve is to be established,
but a failure of Agent to so notify Borrowers shall not be a breach of this Agreement and shall not cause such reserve to be ineffective.

 

     

     

    

 

ACM-TCM Base Rate Revolver Loan: any
ACM-TCM Revolver Loan that bears interest based on the Base Rate.

 

ACM-TCM Borrowing Base: on any date of
determination, an amount equal to the lesser of (a) the aggregate amount of the ACM-TCM Revolver Commitments; or (b) the ACM-TCM
Inventory Formula Amount, minus the ACM-TCM Availability Reserve.

 

ACM-TCM Borrowing Base Report: a report,
in form and substance satisfactory to Agent, by which both ACM and TCM certify calculation of the ACM-TCM Borrowing Base.

 

ACM-TCM Collateral: all Collateral provided
by ACM or TCM.

 

ACM-TCM Deposit Account Control Agreements:
the Deposit Account control agreements to be executed by each institution maintaining a Deposit Account for ACM or TCM, in favor
of Agent, for the benefit of Secured Parties, as security for the ACM-TCM Obligations.

 

ACM-TCM Dominion Account: a special account
established by ACM or TCM at Bank of Arkansas or another bank acceptable to Agent, over which Agent has exclusive control for withdrawal
purposes.

 

ACM-TCM Guaranty: the guaranty agreement
executed by ACM and TCM in favor of Agent.

 

ACM-TCM Inventory Formula Amount: 40%
of the Actual Cash Value of Eligible Vehicle Inventory owned by ACM or TCM.

 

ACM-TCM Obligations: all (a) principal
of and premium, if any, on the ACM-TCM Revolver Loans, (b) interest, expenses, fees and other sums payable by ACM or TCM under
the Loan Documents, (c) obligations of ACM or TCM under any indemnity for Claims, (d) Extraordinary Expenses of ACM or TCM, (e)
Secured Bank Product Obligations of ACM or TCM, and (f) other Debts, obligations and liabilities of any kind owing by ACM or TCM
pursuant to the Loan Documents, whether now existing or hereafter arising, whether evidenced by a note or other writing, whether
allowed in any Insolvency Proceeding, whether arising from an extension of credit, issuance of a letter of credit, acceptance,
loan, guaranty, indemnification or otherwise, and whether direct or indirect, absolute or contingent, due or to become due, primary
or secondary, or joint or several; provided, that Obligations of ACM or TCM shall not include its Excluded Swap Obligations.

 

ACM-TCM Overadvance: as defined in Section
2.2.5.

 

ACM-TCM Overadvance Loan: an ACM-TCM
Base Rate Revolver Loan made when an ACM-TCM Overadvance exists or is caused by the funding thereof.

 

ACM-TCM Protective Advances: as defined
in Section 2.2.6.

 

    	2

     

    

 

ACM-TCM Revolver Commitment: for any
Lender, its obligation to make ACM-TCM Revolver Loans up to the maximum principal amount shown on Schedule 1.1, or as hereafter
determined pursuant to each Assignment and Acceptance to which it is a party. “ACM-TCM Revolver Commitments”
means the aggregate amount of such commitments of all Lenders.

ACM-TCM Revolver Commitment Termination Date:
the earliest to occur of (a) the ACM-TCM Revolver Termination Date; (b) the date on which ACM or TCM terminates the ACM-TCM Revolver
Commitments pursuant to Section 2.2.4; or (c) the date on which the ACM-TCM Revolver Commitments are terminated pursuant
to Section 11.2.

 

ACM-TCM Revolver Loan: a loan made pursuant
to Section 2.2, and any ACM-TCM Swingline Loan, ACM-TCM Overadvance Loan or ACM-TCM Protective Advance.

 

ACM-TCM Revolver Note: a promissory note
to be executed by both ACM and TCM in favor of a Lender in the form of Exhibit B, which shall be in the amount of such Lender’s
ACM-TCM Revolver Commitment and shall evidence the ACM-TCM Revolver Loans made by such Lender, together with extensions, renewals
and changes in form thereof.

 

ACM-TCM Revolver Termination Date: December
12, 2019.

 

ACM-TCM Swingline Loan: with respect
to ACM or TCM, any Borrowing of ACM-TCM Base Rate Revolver Loans funded with Agent’s funds, until such Borrowing is settled
among Lenders or repaid by ACM or TCM, as applicable.

 

Acquisition: a transaction or series
of transactions resulting in (a) acquisition of a business, division or substantially all assets of a Person; (b) record or beneficial
ownership of 50% or more of the Equity Interests of a Person; or (c) merger, consolidation or combination of a Borrower or Subsidiary
with another Person.

 

Actual Cash Value: the actual price paid
by Dealer for the purchase of Vehicles.

 

Adjusted Tangible Assets: all assets
of any Person except: (a) deferred assets, other than prepaid items and deferred taxes, (b) patents, copyrights, trademarks, trade
names, franchises, goodwill and other similar intangibles; (c) restricted investments; (d) unamortized debt discount; (e) assets
located and notes and receivables due from obligors domiciled outside the United States of America, Puerto Rico, or Canada; and
(f) fixed assets to the extent of any write-up in the book value thereof resulting from a revaluation effective after the Closing
Date.

 

Adjusted Tangible Net Worth: with respect
to any Person as of any date of measurement, the remainder of (a) the net book value (after deducting related depreciation, obsolescence,
amortization, valuation, and other proper reserves as determined in accordance with GAAP) at which the Adjusted Tangible Assets
would be shown on a balance sheet of such Person at such date prepared in accordance with GAAP, minus (b) the amount at
which such Person’s liabilities would be shown on such balance sheet in accordance with GAAP. For any period of measurement,
Adjusted Tangible Net Worth for such period shall be reduced by (a) an amount by which the loss reserve maintained by Borrower
is less than the amount required under Section 10.4, and (b) the aggregate Gross Contract Payments owed with respect to
Contracts which are more than 180 days contractually past due and the applicable Contract has not been charged-off by Borrower.

 

AFI: Auto Finance Investors Inc., a Texas
corporation.

 

    	3

     

    

 

AFI Note: that certain unsecured promissory
note issued by Parent in favor of AFI in the original principal amount of $475,000.

 

Affiliate: with respect to a specified
Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under
common Control with the Person specified. “Control” means the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power,
by contract or otherwise. “Controlling” and “Controlled” have correlative meanings.

 

Agent: as defined in the preamble to
this Agreement.

 

Agent Indemnitees: Agent and its officers,
directors, employees, Affiliates, agents and attorneys.

 

Agent Professionals: attorneys, accountants,
appraisers, auditors, business valuation experts, environmental engineers or consultants, turnaround consultants, and other professionals
and experts retained by Agent.

 

Agreement: as defined in the preamble
to this Agreement.

 

Allocable Amount: as defined in Section
5.11.3.

 

Annualized Colonial Net Charge-Off Percent:
calculated as of the last day of each month, the Average Colonial Net Charge-Offs divided by the Average Colonial Net Balance (vehicle
notes) multiplied by 12.

 

Anti-Terrorism Law: any law relating
to terrorism or money laundering, including the Patriot Act.

 

Applicable Law: all laws, rules, regulations
and governmental guidelines applicable to the Person or matter in question, including statutory law, common law and equitable principles,
as well as provisions of constitutions, treaties, statutes, rules, regulations, orders and decrees of Governmental Authorities.

 

Applicable Margin: the margin set forth
below, as determined by the Leverage Ratio for the last Fiscal Quarter:

 

	Level	Leverage Ratio	Base Rate Revolver Loans	LIBOR Revolver Loans
	I	< 0.75:1.00	0%	2.250%
	II	>
    0.75:1.00 and < 1.50:1.00	0%	2.375%
	III	> 1.50:1.00	0.50%	2.875%

 

The margins shall be subject to increase or decrease
upon receipt by Agent pursuant to Section 10.1.2 of the financial statements and corresponding Compliance Certificate for
the last Fiscal Quarter, which change shall be effective on the first day of the calendar month following receipt. If, by the first
day of a month, any financial statements and Compliance Certificate due in the preceding month have not been received, then the
margins shall be determined as if Level III were applicable, from such day until the first day of the calendar month following
actual receipt.

 

    	4

     

    

 

In addition to the determination of the margins
as set forth above, if any financial statements delivered to Agent reflect that Fixed Charge Coverage Ratio is less than 1.00:1.00,
the Applicable Margin in effect shall be increased by 0.50% effective on the first day of the calendar month following delivery
of such financial statements and continuing until a subsequent financial statements and compliance certificate are delivered as
set forth above, reflecting a Fixed Charge Coverage Ratio equal to or in excess of 1.00:1.00.

 

Approved Fund: any Person (other than
a natural Person) engaged in making, purchasing, holding or otherwise investing in commercial loans in its ordinary course of activities.

 

Asset Disposition: a sale, lease, license,
consignment, transfer or other disposition of Property of an Obligor, including any disposition in connection with a sale-leaseback
transaction or synthetic lease.

 

Assignment: an assignment agreement between
a Lender and Eligible Assignee, in the form of Exhibit C or otherwise satisfactory to Agent.

 

Average Colonial Net Balance: calculated
as of the last day of each month, the sum of the Colonial Net Balances owing under all Vehicle Contracts as of the last day of
each of the prior 6 months then ending divided by 6.

 

Average Colonial Net Charge-Offs: calculated
as of the last day of each month, the Colonial Net Charge-Offs for the 6-month period then ending divided by 6.

 

Bail-In Action: the exercise of any Write-Down
and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

Bail-In Legislation: with respect to
any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European
Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

Bank of America: Bank of America, N.A.,
a national banking association, and its successors and assigns.

 

Bank of America Indemnitees: Bank of
America and its officers, directors, employees, Affiliates, agents and attorneys.

 

Bank of Arkansas: BOKF, NA d/b/a Bank
of Arkansas.

 

Bank Product: any of the following products
or services extended to Parent or its Affiliates by a Lender or any of its Affiliates: (a) Cash Management Services; (b) products
under Hedging Agreements; (c) commercial credit card and merchant card services; and (d) leases and other banking products or services
as may be requested by Parent or its Affiliates, other than Letters of Credit.

 

Bank Product Reserve: the aggregate amount
of reserves established by Agent from time to time in its discretion with respect to Secured Bank Product Obligations.

 

Bankruptcy Code: Title 11 of the United
States Code.

 

Base Rate: for any day, a per annum rate
equal to the greater of (a) the Prime Rate for such day; (b) the Federal Funds Rate for such day, plus 0.50%; or (c) LIBOR for
a 30 day interest period as of such day, plus 1.0%.

 

    	5

     

    

 

Base Rate Revolver Loan: an ACM-TCM Base
Rate Revolver Loan or a Colonial Base Rate Revolver Loan.

 

Board of Governors: the Board of Governors
of the Federal Reserve System.

 

Borrowed Money: with respect to any Obligor,
without duplication, its (a) Debt that (i) arises from the lending of money by any Person to such Obligor, (ii) is evidenced by
notes, drafts, bonds, debentures, credit documents or similar instruments, (iii) accrues interest or is a type upon which interest
charges are customarily paid (excluding trade payables owing in the Ordinary Course of Business), or (iv) was issued or assumed
as full or partial payment for Property; (b) Capital Leases; (c) letter of credit reimbursement obligations; and (d) guaranties
of any of the foregoing owing by another Person.

 

Borrower or Borrowers: as defined
in the preamble to this Agreement.

 

Borrower Materials: Borrowing Base Reports,
Compliance Certificates and other information, reports, financial statements and other materials delivered by Borrowers hereunder,
as well as other Reports and information provided by Agent to Lenders.

 

Borrowing: a group of Revolver Loans
that are made or converted together on the same day and have the same interest option and, if applicable, Interest Period.

 

Borrowing Base Report: either an ACM-TCM
Borrowing Base Report or a Colonial Borrowing Base Report.

 

Business Day: any day other than a Saturday,
Sunday or other day on which commercial banks are authorized to close under the laws of, or are in fact closed in, North Carolina
and California, and if such day relates to a LIBOR Loan, any such day on which dealings in Dollar deposits are conducted in the
London interbank market.

 

Capital Expenditures: all liabilities
incurred or expenditures made by Parent or its Subsidiaries for the acquisition of fixed assets, or any improvements, replacements,
substitutions or additions thereto with a useful life of more than one year.

 

Capital Lease: any lease required to
be capitalized for financial reporting purposes in accordance with GAAP.

 

Cash Collateral: cash delivered to Agent
to Cash Collateralize any Obligations, and all interest, dividends, earnings and other proceeds relating thereto.

 

Cash Collateralize: the delivery of cash
to Agent for the benefit of the Agent for itself and on behalf of the Secured Parties, as security for the payment of Obligations,
in an amount equal to (a) with respect to LC Obligations, 105% of the aggregate LC Obligations, and (b) with respect to any inchoate,
contingent or other Obligations (including Secured Bank Product Obligations), Agent’s good faith estimate of the amount due
or to become due, including fees, expenses and indemnification hereunder. “Cash Collateralization” has a correlative
meaning.

 

Cash Equivalents: (a) marketable obligations
issued or unconditionally guaranteed by, and backed by the full faith and credit of, the U.S. government, maturing within 12 months
of the date of acquisition; (b) certificates of deposit, time deposits and bankers’ acceptances maturing within 12 months
of the date of acquisition, and overnight bank deposits, in each case which are issued by Bank of America, Bank of Arkansas or
a commercial bank organized under the laws of the United States or any state or district thereof, rated A-1 (or better) by S&P
or P-1 (or better) by Moody’s at the time of acquisition, and (unless issued by a Lender) not subject to offset rights; (c)
repurchase obligations with a term of not more than 30 days for underlying investments of the types described in clauses (a) and
(b) entered into with any bank meeting the qualifications specified in clause (b); (d) commercial paper issued by Bank of America
or rated A-1 (or better) by S&P or P-1 (or better) by Moody’s, and maturing within 9 months of the date of acquisition;
and (e) shares of any money market fund that has substantially all of its assets invested continuously in the types of investments
referred to above, has net assets of at least $500,000,000 and has the highest rating obtainable from either Moody’s or S&P.

 

    	6

     

    

 

Cash Management Services: any services
provided from time to time by Bank of America (so long as Bank of America is a Lender) or Bank of Arkansas (so long as Bank of
Arkansas is a Lender) or any of their Affiliates to Parent or its Subsidiaries relating to operating, collections, payroll, trust,
or other depository or disbursement accounts, including automated clearinghouse, e-payable, electronic funds transfer, wire transfer,
controlled disbursement, overdraft, depository, information reporting, lockbox and stop payment services.

 

CERCLA: the Comprehensive Environmental
Response Compensation and Liability Act (42 U.S.C. § 9601 et seq.).

 

Certificate of Title: the certificate
of title or other evidence of ownership of any Vehicle issued by the appropriate Division of Motor Vehicles or its counterpart
in the jurisdiction in which the Contract Debtor resides.

 

Change in Law: the occurrence, after
the date hereof, of (a) the adoption or taking effect of any law, rule, regulation or treaty; (b) any change in any law, rule,
regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority; or (c) the
making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority;
provided, however, that "Change in Law" shall include, regardless of the date enacted, adopted or issued,
all requests, rules, guidelines, requirements or directives (i) under or relating to the Dodd-Frank Wall Street Reform and Consumer
Protection Act, or (ii) promulgated pursuant to Basel III by the Bank for International Settlements, the Basel Committee on Banking
Supervision (or any similar authority) or any other Governmental Authority.

 

Change of Control: (a) Parent ceases
to own and control, beneficially and of record, directly or indirectly, all Equity Interests in Colonial, ACM and TCM; or (b) a
change in the majority of directors of Parent during any 24 month period, unless approved by the majority of directors serving
at the beginning of such period.

 

Claims: all claims, liabilities, obligations,
losses, damages, penalties, judgments, proceedings, interest, costs and expenses of any kind (including remedial response costs,
reasonable attorneys’ fees and Extraordinary Expenses) at any time (including after Full Payment of the Obligations, resignation
or replacement of Agent or replacement of any Lender) incurred by any Indemnitee or asserted against any Indemnitee by any Obligor
or other Person, in any way relating to (a) any Revolver Loans, Letters of Credit, Loan Documents, Borrower Materials, or the use
thereof or transactions relating thereto, (b) any action taken or omitted in connection with any Loan Documents, (c) the existence
or perfection of any Liens, or realization upon any Collateral, (d) exercise of any rights or remedies under any Loan Documents
or Applicable Law, or (e) failure by any Obligor to perform or observe any terms of any Loan Document, in each case including all
costs and expenses relating to any investigation, litigation, arbitration or other proceeding (including an Insolvency Proceeding
or appellate proceedings), whether or not the applicable Indemnitee is a party thereto.

 

    	7

     

    

 

Closing Date: as defined in Section
6.1.

 

Code: the Internal Revenue Code of 1986.

 

Collateral: all Property described in
Section 7.1, all Property described in any Security Documents as security for any Obligations, and all other Property that
now or hereafter secures (or is intended to secure) any Obligations.

 

Colonial: as defined in the preamble
to this Agreement.

 

Colonial Availability: the Colonial Borrowing
Base minus the Colonial Revolver Usage.

 

Colonial Availability Reserve: the sum
(without duplication) of (a) the portion of the Rent and Charges Reserve relating to Colonial; (b) the Bank Product Reserve applicable
to Colonial as determined by Agent; (c) the aggregate amount of liabilities secured by Liens upon Colonial Collateral that are
senior to Agent’s Liens (but imposition of any such reserve shall not waive an Event of Default arising therefrom); and (d)
such additional reserves, in such amounts and with respect to such matters, as Agent in its discretion may elect to impose from
time to time. Agent shall endeavor to notify Borrowers at or before the time any Colonial Availability Reserve is to be established,
but a failure of Agent to so notify Borrowers shall not be a breach of this Agreement and shall not cause such reserve to be ineffective.

 

Colonial Base Rate Revolver Loan: any
Colonial Revolver Loan that bears interest based on the Base Rate.

 

Colonial Borrowing Base: on any date
of determination, an amount equal to the lesser of (a) the aggregate amount of Colonial Revolver Commitments; or (b) the Colonial
Contracts Formula Amount minus the Colonial Availability Reserve, based upon information delivered by Borrowers to Agent
pursuant to Section 8.

 

Colonial Borrowing Base Report: a report,
in form and substance satisfactory to Agent, by which Colonial certifies calculation of the Colonial Borrowing Base.

 

Colonial Collateral: all Collateral provided
by Colonial.

 

Colonial Contracts Advance Rate: 50%
with respect to Long Term Contracts, 55% with respect to Medium Term Contracts and 55% with respect to all other Vehicle Contracts;
provided, however, that the applicable Contracts Advance Rate shall be reduced by 0.25% for each 0.25% (or portion
thereof) that the Contracts Advance Rate Adjustment Percent for the month immediately preceding the date of determination exceeds
36%; in each instance such adjustment shall be calculated as of the last day of each month and shall be effective as of the first
day of the month immediately following the date of determination, based upon information delivered by Borrowers to Agent pursuant
to Section 8. For example, if the Colonial Contracts Advance Rate Adjustment Percent is 36.10%, the Colonial Contracts Advance
Rate shall be 49.75% with respect to Long Term Contracts, 54.75% with respect to Medium Term Contracts and 54.75% with respect
to all other Vehicle Contracts; if the Colonial Contracts Advance Rate Adjustment Percent is 36.30%, the Colonial Contracts Advance
Rate shall be 49.50% with respect to Long Term Contracts, 54.50% with respect to Medium Term Contracts and 54.50% with respect
to all other Vehicle Contracts; if the Colonial Contracts Advance Rate Adjustment Percent is 36.6%, the Colonial Contracts Advance
Rate shall be 49.25% with respect to Long Term Contracts, 54.25% with respect to Medium Term Contracts and 54.25% with respect
to all other Vehicle Contracts; if the Colonial Contracts Advance Rate Adjustment Percent is 36.90%, the Colonial Contracts Advance
Rate shall be 49% with respect to Long Term Contracts, 54% with respect to Medium Term Contracts and 54% with respect to all other
Vehicle Contracts; if the Colonial Contracts Advance Rate Adjustment Percent is 37.10%, the Colonial Contracts Advance Rate shall
be 48.75% with respect to Long Term Contracts, 53.75% with respect to Medium Term Contracts and 53.75% with respect to all other
Vehicle Contracts; and so on.

 

    	8

     

    

 

Colonial Contracts Advance Rate Adjustment
Percent: calculated as of the last day of each month, the sum of (a) the Past Due Percent, plus (b) the Repossession
Percent, plus (c) the Annualized Colonial Net Charge-Off Percent.1

 

Colonial Contracts Formula Amount: as
of any date of determination, the Colonial Contracts Advance Rate times the Colonial Net Eligible Contract Payments.

 

Colonial Deposit Account Control Agreements:
the Deposit Account control agreements to be executed by each institution maintaining a Deposit Account for Colonial, in favor
of Agent, for the benefit of Secured Parties, as security for the Colonial Obligations.

 

Colonial Dominion Account: a special
account established by Colonial at Bank of Arkansas or another Lender acceptable to Agent, over which Agent has exclusive control
for withdrawal purposes.

 

Colonial Guaranty: the guaranty agreement
executed by Colonial in favor of Agent.

 

Colonial Loss Reserve Percent: Colonial’s
then existing allowance for credit losses divided by the Colonial Net Balance.

 

Colonial Loss Reserve Adjustment Percent:
Colonial TTM Net Charge-Offs Percent minus the product of Colonial’s then existing Colonial Loss Reserve Percent multiplied
by 120%.

 

Colonial Net Balance: as of the date
of determination, the Gross Contract Payments of Vehicle Contracts less, to the extent included in the calculation of Gross
Contract Payments, all unearned interest and unearned insurance premiums owing by the Contract Debtor.

 

Colonial Net Charge-Offs: for any period
as (a) the aggregate amount of all unpaid principal balances (including any service contract amounts included therein) due under
Vehicle Contracts which have been charged off by Colonial during such period, including the principal balances due under all Vehicle
Contracts where the Vehicle has been repossessed by Colonial during such period reduced by the amount of the wholesale value of
each repossessed vehicle as determined in accordance with Colonial’s historical practices and acceptable to Agent, less
(b) recoveries on charged-off Contracts during such period (to the extent applied to the loss reserves).

 

Colonial Net Eligible Contract Payments:
as of the date of determination, the remainder of (a) the Gross Contract Payments owing under all Eligible Vehicle Contracts
(including any service contract amount included therein), minus (b) the sum of (i) the aggregate amount, to the extent
included within the definition of Gross Contract Payments, of all unearned interest, fees, and charges applicable to the Eligible
Vehicle Contracts, and (ii) such other amounts as Agent in its reasonable discretion deems necessary or appropriate.

 

Colonial Obligations: all (a) principal
of and premium, if any, on the Colonial Revolver Loans, (b) LC Obligations and other obligations of Colonial with respect to Letters
of Credit, (c) interest, expenses, fees and other sums payable by Colonial under the Loan Documents, (d) obligations of Colonial
under any indemnity for Claims, (e) Extraordinary Expenses of Colonial, (f) Secured Bank Product Obligations of Colonial, and (g)
other Debts, obligations and liabilities of any kind owing by Colonial pursuant to the Loan Documents, whether now existing or
hereafter arising, whether evidenced by a note or other writing, whether allowed in any Insolvency Proceeding, whether arising
from an extension of credit, issuance of a letter of credit, acceptance, loan, guaranty, indemnification or otherwise, and whether
direct or indirect, absolute or contingent, due or to become due, primary or secondary, or joint or several; provided, that
Obligations of Colonial shall not include its Excluded Swap Obligations.

____________________

1 Note
to Bank – to confirm this is consistent with the CAR. 

 

    	9

     

    

 

Colonial Overadvance: as defined in Section
2.1.5.

 

Colonial Overadvance Loan: a Colonial
Base Rate Revolver Loan made when a Colonial Overadvance exists or is caused by the funding thereof.

 

Colonial Protective Advances: as defined
in Section 2.1.6.

 

Colonial Revolver Commitment: for any
Lender, its obligation to make Colonial Revolver Loans and to participate in LC Obligations up to the maximum principal amount
shown on Schedule 1.1, or as hereafter determined pursuant to each Assignment and Acceptance to which it is a party. “Colonial
Revolver Commitments” means the aggregate amount of such commitments of all Lenders.

 

Colonial Revolver Commitment Termination
Date: the earliest to occur of (a) the Colonial Revolver Termination Date; (b) the date on which Colonial terminates the Colonial
Revolver Commitments pursuant to Section 2.1.4; or (c) the date on which the Colonial Revolver Commitments are terminated
pursuant to Section 11.2.

 

Colonial Revolver Loan: a loan made pursuant
to Section 2.1, and any Colonial Swingline Loan, Colonial Overadvance Loan or Colonial Protective Advance.

 

Colonial Revolver Note: a promissory
note to be executed by Colonial in favor of a Lender in the form of Exhibit A, which shall be in the amount of such Lender’s
Colonial Revolver Commitment and shall evidence the Colonial Revolver Loans made by such Lender, together with extensions, renewals
and changes in form thereof.

 

Colonial Revolver Termination Date: December
12, 2019.

 

Colonial Revolver Usage: (a) the aggregate
amount of outstanding Colonial Revolver Loans; plus (b) the aggregate Stated Amount of outstanding Letters of Credit, except
to the extent Cash Collateralized by Borrowers.

 

Colonial Swingline Loan: with respect
to Colonial, any Borrowing of Colonial Base Rate Revolver Loans funded with Agent’s funds, until such Borrowing is settled
among Lenders or repaid by Colonial.

 

Colonial TTM Net Charge-Offs Percent:
The sum of the Colonial Net Charge-Offs balances for the last twelve months divided by average of Colonial Net Balances in the
last 12 months.

 

Colonial Underwriting: Colonial Underwriting,
Inc., an Arkansas corporation.

 

Commodity Exchange Act: the Commodity
Exchange Act (7 U.S.C. § 1 et seq.).

 

    	10

     

    

 

Compliance Certificate: a certificate,
in form and substance satisfactory to Agent, by which Borrowers certify compliance with Sections 10.2.3 and 10.3,
list all outstanding Bank Products, calculate the applicable Level for the Applicable Margin, and certify that all Vehicle
Contracts are in compliance with all Vehicle Contract Compliance Requirements.

 

Connection Income Taxes: Other Connection
Taxes that are imposed on or measured by net income (however denominated), or are franchise or branch profits Taxes.

 

Consumer Finance Laws: all Applicable
Laws governing or relating to the extension of consumer credit, the creation of a security interest in personal property or a mortgage
in real property in connection with the consumer credit, the collection of consumer debt and the protection of consumers’
interests in connection with consumer credit transactions (including with respect to the advertising, solicitation, underwriting,
origination, assignment, administration, servicing and collection thereof), including without limitation, any usury laws, any privacy
laws, discriminatory lending laws, predatory lending laws, the Federal Consumer Credit Protection Act, the Federal Fair Credit
Reporting Act, and Fair and Accurate Credit Transactions Act, the Equal Credit Opportunity Act and any regulations related thereto,
the Fair Debt Collections Practices Act, RESPA, the Magnuson-Moss Warranty Act, the Service member’s Civil Relief Act, the
Gramm-Leach-Bliley Act, the Dodd–Frank Wall Street Reform and Consumer Protection Act, the Federal Trade Commission’s
Rules and Regulations, the rules and regulations promulgated by the Consumer Financial Protection Bureau (including Regulations
B, M, N, O P, V, X and Z) and Regulations B and Z of the Federal Reserve Board, as any of the foregoing may be amended from time
to time.

 

Contingent Obligation: any obligation
of a Person arising from a guaranty, indemnity or other assurance of payment or performance of any Debt, lease, dividend or other
obligation (“primary obligations”) of another obligor (“primary obligor”) in any manner,
whether directly or indirectly, including any obligation of such Person under any (a) guaranty, endorsement, co-making or sale
with recourse of an obligation of a primary obligor; (b) obligation to make take-or-pay or similar payments regardless of nonperformance
by any other party to an agreement; and (c) arrangement (i) to purchase any primary obligation or security therefor, (ii) to supply
funds for the purchase or payment of any primary obligation, (iii) to maintain or assure working capital, equity capital, net worth
or solvency of the primary obligor, (iv) to purchase Property or services for the purpose of assuring the ability of the primary
obligor to perform a primary obligation, or (v) otherwise to assure or hold harmless the holder of any primary obligation against
loss in respect thereof. The amount of any Contingent Obligation shall be deemed to be the stated or determinable amount of the
primary obligation (or, if less, the maximum amount for which such Person may be liable under the instrument evidencing the Contingent
Obligation) or, if not stated or determinable, the maximum reasonably anticipated liability with respect thereto.

 

Contract Debtor: each Person who is obligated
to Colonial to perform any duty under or to make any payment pursuant to the terms of a Vehicle Contract.

 

Contract Security Documents: all security
agreements, chattel mortgages, deeds of trust, mortgages, or other security instruments, guaranties, sureties, and agreements of
every type and nature (including Certificates of Title) securing the obligations of Contract Debtors under Contracts.

 

Contracts: all of a Colonial’s
now owned and hereafter acquired loan agreements, Accounts, installment sale contracts, Instruments, notes, documents, Chattel
Paper, and all other forms of obligations owing to Colonial, including Vehicle Contracts, and any collateral for any of the foregoing,
including all rights under any and all Contract Security Documents and Vehicles or other merchandise returned to or repossessed
by Colonial.

 

    	11

     

    

 

Covenant Trigger Event: the occurrence
of (a) the sum of (i) the amount under clause (b) of the Colonial Borrowing Base minus the principal balance of all Colonial Revolver
Loans, and (ii) the amount of the ACM-TCM Borrowing Base minus the principal balance of all ACM-TCM Revolver Loans, is less than
25% of the sum of (y) the amount under clause (b) of the Colonial Borrowing Base, and (z) the amount of the ACM-TCM Borrowing Base
or (b) the sum of the Colonial Availability and ACM-TCM Availability is less than 10% of the aggregate Revolver Commitments.

 

Credit Guidelines: Borrowers’ guidelines
(delivered to Agent prior to the Closing Date) which state in detail the credit criteria used by Borrowers in determining the creditworthiness
of Contract Debtors and the collection criteria used by Borrowers in collection of amounts due from Contract Debtors.

 

Contracts Servicing Agreement: that certain
Servicing Agreement by and between ACM and Colonial pursuant to which ACM has agreed to provide servicing to Colonial in connection
with Vehicle Contracts.

 

Crown: Crown Delaware Investments Corp.,
a Delaware corporation.

 

CWA: the Clean Water Act (33 U.S.C. §§
1251 et seq.).

 

Dealer: ACM or TCM in its capacity as
a dealer that has sold a Vehicle to a Contract Debtor pursuant to a Vehicle Contract.

 

Dealer Agreement: an agreement between
Colonial and a Dealer, in form and content satisfactory to Agent, that governs the sale or assignment of Contracts from such Dealer
to Colonial, including any provisions for assignment (whether with or without recourse, a repurchase obligation by the Dealer,
or a guaranty by such Dealer) contained in such agreement.

 

Debt: as applied to any Person, without
duplication, (a) all items that would be included as liabilities on a balance sheet in accordance with GAAP, including Capital
Leases, but excluding trade payables and other non-interest bearing unsecured liabilities incurred and being paid in the Ordinary
Course of Business; (b) all Contingent Obligations; (c) all reimbursement obligations in connection with letters of credit issued
for the account of such Person; and (d) in the case of a Borrower, the Obligations. The Debt of a Person shall include any recourse
Debt of any partnership in which such Person is a general partner or joint venturer.

 

Default: an event or condition that,
with the lapse of time or giving of notice, would constitute an Event of Default.

 

Default Rate: for any Obligation (including,
to the extent permitted by law, interest not paid when due), 2% plus the interest rate otherwise applicable thereto determined
as if Level III of the Applicable Margin were applicable.

 

Defaulting Lender: any Lender that (a)
has failed to comply with its funding obligations hereunder, and such failure is not cured within 2 Business Days; (b) has notified
Agent or any Borrower that such Lender does not intend to comply with its funding obligations hereunder or generally under its
other credit facilities, or has made a public statement to that effect; (c) has failed, within 3 Business Days following request
by Agent or any Borrower, to confirm in a manner satisfactory to Agent and Borrowers that such Lender will comply with its funding
obligations hereunder; or (d) has, or has a direct or indirect parent company that has, become the subject of an Insolvency Proceeding
(including reorganization, liquidation, or appointment of a receiver, custodian, administrator or similar Person by the Federal
Deposit Insurance Corporation or any other regulatory authority) or Bail-In Action; provided, however, that a Lender
shall not be a Defaulting Lender solely by virtue of a Governmental Authority's ownership of an equity interest in such Lender
or parent company unless the ownership provides immunity for such Lender from jurisdiction of courts within the United States or
from enforcement of judgments or writs of attachment on its assets, or permits such Lender or Governmental Authority to repudiate
or otherwise to reject such Lender's agreements.

 

    	12

     

    

 

Deposit Account Control Agreement: the
Colonial Deposit Account Control Agreements and ACM-TCM Deposit Account Control Agreements.

 

Designated Jurisdiction: a country or
territory that is the subject of a Sanction.

 

Disregarded Subsidiaries: Crown, Colonial
Underwriting and AFI.

 

Distribution: any declaration or payment
of a distribution, interest or dividend on any Equity Interest (other than payment-in-kind and for the purpose of calculating Fixed
Charges, net of proceeds from exercise of stock options); distribution, advance or repayment of Debt to a holder of Equity Interests;
or purchase, redemption, or other acquisition or retirement for value of any Equity Interest.

 

Dollars: lawful money of the United States.

 

Dominion Account: a Colonial Dominion
Account or an ACM-TCM Dominion Account.

 

EBITDA: determined on a consolidated
basis for Parent and its Subsidiaries, net income determined in accordance with GAAP, plus the sum of interest expense, depreciation,
amortization, income taxes, and other non-cash expenses reasonably acceptable to Agent. For any period of measurement, EBITDA for
such period shall be reduced by (a) an amount by which the loss reserve maintained by Borrower is less than the amount required
under Section 10.4, and (b) the aggregate Gross Contract Payments owed with respect to Contracts which are more than 180
days contractually past due and the applicable Contract has not been charged-off by Borrower.

 

EEA Financial Institution: (a) any credit
institution or investment firm established in an EEA Member Country that is subject to the supervision of an EEA Resolution Authority;
(b) any entity established in an EEA Member Country that is a parent of an institution described in clause (a) above; or (c) any
financial institution established in an EEA Member Country that is a subsidiary of an institution described in the foregoing clauses
and is subject to consolidated supervision with its parent.

 

EEA Member Country: any of the member
states of the European Union, Iceland, Liechtenstein and Norway.

 

EEA Resolution Authority: any public
administrative authority or any Person entrusted with public administrative authority of an EEA Member Country (including any delegee)
having responsibility for the resolution of any EEA Financial Institution.

 

Eligible Assignee: (a) a Lender, Affiliate
of a Lender or Approved Fund; (b) an assignee approved by Borrowers (which approval shall not be unreasonably withheld or delayed,
and shall be deemed given if no objection is made within two Business Days after notice of the proposed assignment) and Agent;
or (c) during an Event of Default, any Person acceptable to Agent in its discretion.

 

    	13

     

    

 

Eligible Vehicle Contracts: those Vehicle
Contracts which Agent, in its sole discretion, deems eligible and which, without limiting Agent’s discretionary rights, satisfy
at all times all of the following requirements as determined by Agent in its sole and absolute discretion:

 

(a)               
the Vehicle Contract strictly complies with all of Colonial’s warranties and representations contained herein;

 

(b)              
(i) for any Vehicle Contract that requires weekly payments from the Contract Debtor, no more than 4 payments may be
contractually delinquent, and (ii) for any other Vehicle Contract, no payment due under such Vehicle Contract is more than
the lesser of 30 days or 4 weeks contractually delinquent;

 

(c)               
except as provided in clause (b) of this definition, neither Colonial nor the Contract Debtor is in default under the
terms of the Vehicle Contract.

 

(d)              
Colonial has not granted to the Contract Debtor any extension of time for the payment of any sum due under the Vehicle Contract
except pursuant to a Contract which has been modified in a way that Agent, in its reasonable discretion, deems acceptable (which
shall be presumed unless Agent expressly states otherwise from time to time);

 

(e)               
the Vehicle Contract is not subject to any asserted defense, counterclaim, offset, discount, or allowance;

 

(f)               
the terms of the Vehicle Contract and all related documents and instruments comply in all respects with all requirements
of law, including without limitation, the Vehicle Contract Compliance Requirements;

 

(g)               
the Contract Debtor is not an Affiliate of any Borrower (but may be an employee; provided that the aggregate amount
of employee debt shall not exceed one half of one percent (0.5%) of Colonial Net Eligible Contract Payments);

 

(h)              
the creditworthiness of the Contract Debtor is acceptable to Agent (which shall be presumed unless Agent expressly states
otherwise from time to time) and the Vehicle Contract and Contract Debtor conform to the Credit Guidelines;

 

(i)                
the Contract Debtor is not subject to an Insolvency Proceeding;

 

(j)                
the Contract Debtor is a resident of the continental United States;

 

(k)              
the first scheduled payment pursuant to the terms of the Vehicle Contract is, or was, due within 45 days following
the execution of the Vehicle Contract and all other payments are scheduled to be made in substantially equal (or greater) weekly,
bi-weekly, monthly, or semi-monthly installments in order to ratably amortize the Vehicle Contract over its scheduled term;

 

(l)                
(A) the original term of the Vehicle Contract is not more than 60 months, (B) if the original term of the Vehicle Contract
is greater than 36 months but no greater than 42 months (“Medium Term Contracts”), then the aggregate amount
of Colonial Net Eligible Contract Payments attributable to such Medium Term Contracts at no time exceeds 15% of the Colonial Net
Balance, and (C) if the original term of the Vehicle Contract is greater than 42 months but no greater than 60 months (“Long
Term Contracts”), then the aggregate amount of Colonial Net Eligible Contract Payments attributable to such Long Term
Contracts at no time exceeds 5% of the Colonial Net Balance; provided, however, that the aggregate amount of Colonial
Net Eligible Contract Payments attributable to Medium Term Contracts and Long Term Contracts shall at no time exceed 15% of the
Colonial Net Balance.

 

    	14

     

    

(m)            
repayment of the Vehicle Contract is either (i) secured by a first priority, perfected interest in the subject Vehicle,
and Colonial has evidence of such perfected lien available on Colonial’s premises to Agent for inspection in the form of
either (1) the most current Certificate of Title reflecting Colonial, ACM or TCM as the lien holder or owner, or (2) documentation
from the appropriate Governmental Authority reflecting Colonial’s, ACM’s or TCM’s Lien; or (ii) within 45 calendar
days of executing a Vehicle Contract, Colonial shall have in its possession evidence from the appropriate Governmental Authority
of perfection by that Governmental Authority of a first priority lien in favor of Colonial on the Vehicle that is the subject of
the Vehicle Contract, and evidence of such perfected lien shall be on Colonial’s premises available to Agent for inspection
in the form of either (1) a Certificate of Title reflecting Colonial as the lien holder, or owner or (2) documentation
from the appropriate Government Authority reflecting Colonial’s Lien;

 

(n)              
to the extent that the balance of the Vehicle Contract includes sums representing the financing of a service contract, such
service contract shall be in compliance with all applicable consumer credit laws, including any and all laws relating thereto;

 

(o)              
the Vehicle Contract is not a Unacceptable Modified Contract;

 

(p)              
the Vehicle Contract is originated in the ordinary course of Colonial’s business; and

 

(q)              
Vehicle Contracts that are secured by Vehicles which were previously subject to Repossessed Contracts (“Vehicle
Contracts Subject to Prior Repossession”) to the extent that Vehicle Contracts Subject to Prior Repossession exceed 20%
of Eligible Vehicle Contracts.

 

Eligible Vehicle Inventory: the Inventory
of ACM and TCM consisting of Vehicles which Agent, in its sole discretion, deems eligible and which, without limiting Agent’s
discretionary rights, satisfies at all times all of the following requirements as determined by Agent:

 

(a)               
In the case of all such Vehicles, are purchased for Inventory at auction or from third parties and are not Vehicles that
have been previously repossessed by a Borrower,

 

(b)              
in the case of all such Vehicles, are subject to a perfected, first priority Lien in favor of Agent for the benefit of the
Lenders pursuant to the Security Documents, free from any other Lien other than those acceptable to the Agent in its discretion,

 

(c)               
in the case of used Vehicles, ACM or TCM physically holds such Certificates of Title (or either ACM or TCM has, in accordance
with its standard policies and procedures, initiated the process by which the foregoing requirements of this clause (b) will be
satisfied); and

 

(d)              
in the case of all such Vehicles, are located at either ACM’s or TCM's facilities as set forth in Schedule 8.6.1.

 

Enforcement Action: any action to enforce
any Obligations (other than Secured Bank Product Obligations) or Loan Documents or to exercise any rights or remedies relating
to any Collateral, whether by judicial action, self-help, notification of Contract Debtors, setoff or recoupment, credit bid, deed
in lieu of foreclosure, action in an Insolvency Proceeding or otherwise.

 

    	15

     

    

 

Environmental Laws: Applicable Laws (including
programs, permits and guidance promulgated by regulators) relating to public health (other than occupational safety and health
regulated by OSHA) or the protection or pollution of the environment, including CERCLA, RCRA and CWA.

 

Environmental Notice: a notice (whether
written or oral) from any Governmental Authority or other Person of any possible noncompliance with, investigation of a possible
violation of, litigation relating to, or potential fine or liability under any Environmental Law, or with respect to any Environmental
Release, environmental pollution or hazardous materials, including any complaint, summons, citation, order, claim, demand or request
for correction, remediation or otherwise.

 

Environmental Release: a release as defined
in CERCLA or under any other Environmental Law.

 

Equity Interest: the interest of any
(a) shareholder in a corporation; (b) partner in a partnership (whether general, limited, limited liability or joint venture);
(c) member in a limited liability company; or (d) other Person having any other form of equity security or ownership interest.

 

ERISA: the Employee Retirement Income
Security Act of 1974.

 

ERISA Affiliate: any trade or business
(whether or not incorporated) under common control with an Obligor within the meaning of Section 414(b) or (c) of the Code (and
Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

 

ERISA Event: (a) a Reportable Event with
respect to a Pension Plan; (b) withdrawal of an Obligor or ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA
during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations
that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) complete or partial withdrawal of an Obligor or ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) filing of a notice of intent
to terminate, treatment of a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA, or institution of proceedings
by the PBGC to terminate a Pension Plan; (e) determination that a Pension Plan is considered an at-risk plan or a plan in critical
or endangered status under the Code or ERISA; (f) an event or condition that constitutes grounds under Section 4042 of ERISA for
termination of, or appointment of a trustee to administer, any Pension Plan; (g) imposition of any liability on an Obligor or ERISA
Affiliate under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA; or (h) failure
by an Obligor or ERISA Affiliate to meet all applicable requirements under the Pension Funding Rules in respect of a Pension Plan,
whether or not waived, or to make a required contribution to a Multiemployer Plan.

 

EU Bail-In Legislation Schedule: the
EU Bail-In Legislation Schedule published by the Loan Market Association, as in effect from time to time.

 

Event of Default: as defined in Section
11.

 

Excluded Swap Obligation: with respect
to an Obligor, each Swap Obligation as to which, and only to the extent that, such Obligor's guaranty of or grant of a Lien as
security for such Swap Obligation is or becomes illegal under the Commodity Exchange Act because the Obligor does not constitute
an “eligible contract participant” as defined in the act (determined after giving effect to any keepwell, support or
other agreement for the benefit of such Obligor and all guarantees of Swap Obligations by other Obligors) when such guaranty or
grant of Lien becomes effective with respect to the Swap Obligation. If a Hedging Agreement governs more than one Swap Obligation,
only the Swap Obligation(s) or portions thereof described in the foregoing sentence shall be Excluded Swap Obligation(s) for the
applicable Obligor.

 

    	16

     

    

 

Excluded Taxes: (a) Taxes imposed on
or measured by a Recipient's net income (however denominated), franchise Taxes and branch profits Taxes (i) as a result of such
Recipient being organized under the laws of, or having its principal office or applicable Lending Office located in, the jurisdiction
imposing such Tax, or (ii) constituting Other Connection Taxes; (b) U.S. federal withholding Taxes imposed on amounts payable to
or for the account of a Lender with respect to its interest in a Loan or Commitment pursuant to a law in effect when the Lender
acquires such interest (except pursuant to an assignment request by Borrowers under Section 12.10) or changes its Lending
Office, unless the Taxes were payable to its assignor immediately prior to such assignment or to the Lender immediately prior to
its change in Lending Office; (c) Taxes attributable to a Recipient's failure to comply with Section 5.10; and (d) U.S.
federal withholding Taxes imposed pursuant to FATCA. In no event shall “Excluded Taxes” include any withholding Tax
imposed on amounts paid by or on behalf of a foreign Obligor to a Recipient that has complied with Section 5.10.2.

 

Extraordinary Expenses: (i) all costs,
expenses or advances that the Lenders may incur during a Default or Event of Default, or during the pendency of an Insolvency Proceeding
of an Obligor in relation to enforcing their rights under this Agreement or in respect of the Obligations, including any incurred
during any “workout” or restructuring in respect of the Obligations and any incurred in the preservation, protection
or enforcement of any rights any Lenders in any Insolvency Proceeding, and (ii) all costs, expenses or advances that Agent may
incur during a Default or Event of Default, or during the pendency of an Insolvency Proceeding of an Obligor, including those relating
to (a) any audit, inspection, repossession, storage, repair, appraisal, insurance, manufacture, preparation or advertising for
sale, sale, collection, or other preservation of or realization upon any Collateral; (b) any action, arbitration or other proceeding
(whether instituted by or against Agent, any Lender, any Obligor, any representative of creditors of an Obligor or any other Person)
in any way relating to any Collateral (including the validity, perfection, priority or avoidability of Agent’s Liens with
respect to any Collateral), Loan Documents, Letters of Credit or Obligations, including any lender liability or other Claims; (c)
the exercise of any rights or remedies of Agent in, or the monitoring of, any Insolvency Proceeding; (d) settlement or satisfaction
of taxes, charges or Liens with respect to any Collateral; (e) any Enforcement Action; and (f) negotiation and documentation of
any modification, waiver, workout, restructuring or forbearance with respect to any Loan Documents or Obligations. Such costs,
expenses and advances include transfer fees, Other Taxes, storage fees, insurance costs, permit fees, utility reservation and standby
fees, legal fees, appraisal fees, brokers' and auctioneers' fees and commissions, accountants' fees, environmental study fees,
wages and salaries paid to employees of any Obligor or independent contractors in liquidating any Collateral, and travel expenses.

 

FATCA: Sections 1471 through 1474 of
the Code (including any amended or successor version if substantively comparable and not materially more onerous to comply with),
and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

Federal Funds Rate: (a) the weighted
average of interest rates on overnight federal funds transactions with members of the Federal Reserve System on the applicable
day (or the preceding Business Day, if the applicable day is not a Business Day), as published by the Federal Reserve Bank of New
York on the next Business Day; or (b) if no such rate is published on the next Business Day, the average rate charged to Bank of
America on the applicable day on such transactions, as determined by Agent; provided, that in no event shall such rate be
less than zero.

 

Fee Letter: the fee letter agreement
of even date herewith, among Agent and Borrowers.

 

    	17

     

    

 

First Amended Loan Agreement: as defined
in the recitals hereto.

 

Fiscal Quarter: each period of 3 months,
commencing on the first day of a Fiscal Year.

 

Fiscal Year: the fiscal year of Parent
for accounting and tax purposes, ending on April 30 of each year.

 

Fixed Charge Coverage Ratio: the ratio,
determined on a consolidated basis for Parent and its Subsidiaries, determined on a trailing 6 month basis, of (a) EBITDA, to (b)
Fixed Charges.

 

Fixed Charges: the sum of interest expense
and cash income taxes plus scheduled principal payments on Debt, plus Capital Expenditures, plus Distributions
other than Distributions permitted under clause (ii)(a) of the definition of Permitted Distributions and 2011-2012 Treasury Stock
Transactions.

 

FLSA: the Fair Labor Standards Act of
1938.

 

Foreign Lender: any Lender that is not
a U.S. Person.

 

Full Payment: with respect to any Obligations,
(a) the full and indefeasible cash payment thereof, including any interest, fees and other charges accruing during an Insolvency
Proceeding (whether or not allowed in the proceeding); and (b) if such Obligations are LC Obligations or inchoate or contingent
in nature, Cash Collateralization thereof (or delivery of a standby letter of credit acceptable to Agent in its discretion, in
the amount of required Cash Collateral). No Revolver Loans shall be deemed to have been paid in full unless all Revolver Commitments
of all Lenders related to such Revolver Loans are terminated.

 

Funded Debt: all outstanding Debt for
Borrowed Money.

 

GAAP: generally accepted accounting principles
in effect in the United States from time to time.

 

Governmental Approvals: all authorizations,
consents, approvals, licenses and exemptions of, registrations and filings with, and required reports to, all Governmental Authorities.

 

Governmental Authority: any federal,
state, local, foreign or other agency, authority, body, commission, court, instrumentality, political subdivision, central bank,
or other entity or officer exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions
for any governmental, judicial, investigative, regulatory or self-regulatory authority (including the Financial Conduct Authority,
the Prudential Regulation Authority and any supra-national bodies such as the European Union or European Central Bank).

 

Gross Contract Payments: as of the date
of determination, the outstanding principal balance (as referenced on Colonial’s balance statement and general ledger), including
all accrued but unpaid interest, fees, and other charges owing by the Contract Debtor, of all Vehicle Contracts.

 

Guarantor Payment: as defined in Section
5.11.3.

 

Guarantors: Parent, Colonial, ACM, TCM
and each other Person that guarantees payment or performance of Obligations.

 

Guarantor Security Agreement: a security
agreement, in form and substance satisfactory to Agent, executed by each Guarantor pursuant to which each Guarantor grants a first
priority Lien in its Properties in favor of Agent (for the benefit of Secured Parties) as security for its obligations under its
Guaranty.

 

    	18

     

    

 

Guaranty: each guaranty agreement executed
by a Guarantor in favor of Agent.

 

Hedging Agreement: a "swap agreement"
as defined in Bankruptcy Code Section 101(53B)(A).

 

Indemnified Taxes: (a) Taxes, other than
Excluded Taxes, imposed on or relating to any payment of an Obligation; and (b) to the extent not otherwise described in clause
(a), Other Taxes.

 

Indemnitees: Agent Indemnitees, Lender
Indemnitees, Issuing Bank Indemnitees and Bank of America Indemnitees.

 

Insolvency Proceeding: any case or proceeding
commenced by or against a Person under any state, federal or foreign law for, or any agreement of such Person to, (a) the entry
of an order for relief under the Bankruptcy Code, or any other insolvency, debtor relief or debt adjustment law; (b) the appointment
of a receiver, trustee, liquidator, administrator, conservator or other custodian for such Person or any part of its Property;
or (c) an assignment or trust mortgage for the benefit of creditors.

 

Intellectual Property: all intellectual
and similar Property of a Person, including inventions, designs, patents, copyrights, trademarks, service marks, trade names, trade
secrets, confidential or proprietary information, customer lists, know-how, software and databases; all embodiments or fixations
thereof and all related documentation, applications, registrations and franchises; all licenses or other rights to use any of the
foregoing; and all books and records relating to the foregoing.

 

Intellectual Property Claim: any claim
or assertion (whether in writing, by suit or otherwise) that Parent’s or its Subsidiaries’ ownership, use, marketing,
sale or distribution of any Inventory, Equipment, Intellectual Property or other Property violates another Person’s Intellectual
Property.

 

Intercompany Assignment Agreement: the
agreement between ACM and TCM, on the one hand, and Colonial, on the other hand, pursuant to which ACM and TCM sell all of their
right, title and interest in and to Vehicle Contracts to Colonial.

 

Intercompany Subordinated Debt: any Debt
between Parent and its Subsidiaries so long as all parties to such Debt are parties to the Intercompany Subordination Agreement.

 

Intercompany Subordination Agreement:
the Intercompany Subordination Agreement of even date herewith, between each Parent and its Subsidiaries with respect to any Debt
owed by Parent or any of its Subsidiaries to Parent or any other Subsidiary.

 

Interest Period: as defined in Section
3.1.3.

 

Inventory: as defined in the UCC, including
all Vehicles, goods intended for sale, lease, display or demonstration; all work in process; and all raw materials, and other materials
and supplies of any kind that are or could be used in connection with the manufacture, printing, packing, shipping, advertising,
sale, lease or furnishing of such goods, or otherwise used or consumed in ACM or TCM’s business (but excluding Equipment).

 

Investment: an Acquisition, an acquisition
of record or beneficial ownership of any Equity Interests of a Person, or an advance or capital contribution to or other investment
in a Person.

 

    	19

     

    

 

IRS: the United States Internal Revenue
Service.

 

Issuing Bank: Bank of America (including
any Lending Office of Bank of America), or any replacement issuer appointed pursuant to Section 2.3.5.

 

Issuing Bank Indemnitees: Issuing Bank
and its officers, directors, employees, Affiliates, agents and attorneys.

 

LC Application: an application by a Borrower
to Issuing Bank for issuance of a Letter of Credit, in form and substance satisfactory to Issuing Bank and Agent.

 

LC Conditions: upon giving effect to
issuance of a Letter of Credit, (a) the conditions in Section 6 are satisfied; (b) total LC Obligations do not exceed the
Letter of Credit Subline and Colonial Revolver Usage does not exceed the Colonial Borrowing Base; (c) the Letter of Credit and
payments thereunder are denominated in Dollars or other currency satisfactory to Agent and Issuing Bank; and (d) the purpose and
form of the Letter of Credit are satisfactory to Agent and Issuing Bank in their discretion.

 

LC Documents: all documents, instruments
and agreements (including LC Requests and LC Applications) delivered by Colonial or any other Person to Issuing Bank or Agent in
connection with issuance, amendment or renewal of, or payment under, any Letter of Credit.

 

LC Obligations: the sum of (a) all amounts
owing by Colonial for any drawings under Letters of Credit; (b) the Stated Amount of all outstanding Letters of Credit; and (c)
all fees and other amounts owing with respect to Letters of Credit.

 

LC Request: a request for issuance of
a Letter of Credit, to be provided by Colonial to Issuing Bank, in form satisfactory to Agent and Issuing Bank.

 

Lender Indemnitees: Lenders and Secured
Bank Product Providers, their respective officers, directors, employees, Affiliates, agents and attorneys.

 

Lenders: lenders party to this Agreement
(including Agent in its capacity as provider of Swingline Loans) and any Person who hereafter becomes a “Lender” pursuant
to an Assignment, including any Lending Office of the foregoing.

 

Lending Office: the office (including
any domestic or foreign Affiliate or branch) designated as such by a Lender or Issuing Bank by notice to Agent and Borrowers.

 

Letter of Credit: any standby or documentary
letter of credit, foreign guaranty, documentary bankers acceptance, indemnity, reimbursement agreement or similar instrument issued
by Issuing Bank for the account or benefit of Colonial or Affiliate of Colonial.

 

Letter of Credit Subline: $3,000,000.

 

Leverage Ratio: determined on a consolidated
basis for Parent and its Subsidiaries, the ratio of (a) Total Liabilities to (b) Adjusted Tangible Net Worth.

 

LIBOR: the per annum rate of interest
determined by Agent at or about 11:00 a.m. (London time) two Business Days prior to an interest period, for a term equivalent to
such period, equal to the London Interbank Offered Rate, or comparable or successor rate approved by Agent, as published on the
applicable Reuters screen page (or other commercially available source designated by Agent from time to time); provided,
that any comparable or successor rate shall be applied by Agent, if administratively feasible, in a manner consistent with market
practice; provided further, that in no event shall LIBOR be less than zero.

 

    	20

     

    

 

LIBOR Loan: each set of LIBOR Revolver
Loans having a common length and commencement of Interest Period.

 

LIBOR Revolver Loan: a Revolver Loan
that bears interest based on LIBOR.

 

License: any license or agreement under
which an Obligor is authorized to use Intellectual Property in connection with any manufacture, marketing, distribution or disposition
of Collateral, any use of Property or any other conduct of its business.

 

Licensor: any Person from whom an Obligor
obtains the right to use any Intellectual Property.

 

Lien: a Person’s interest in Property
securing an obligation owed to, or a claim by, such Person, including any lien, security interest, pledge, hypothecation, assignment,
trust, reservation, encroachment, easement, right-of-way, covenant, condition, restriction, lease, or other title exception or
encumbrance.

 

Lien Waiver: an agreement, in form and
substance satisfactory to Agent, by which (a) for any material Collateral located on leased premises, the lessor waives or subordinates
any Lien it may have on the Collateral, and agrees to permit Agent to enter upon the premises and remove the Collateral or to use
the premises to store or dispose of the Collateral; (b) for any Collateral held by a warehouseman, processor, shipper, customs
broker or freight forwarder, such Person waives or subordinates any Lien it may have on the Collateral, agrees to hold any Documents
in its possession relating to the Collateral as agent for Agent, and agrees to deliver the Collateral to Agent upon request; (c)
for any Collateral held by a repairman, mechanic or bailee, such Person acknowledges Agent’s Lien, waives or subordinates
any Lien it may have on the Collateral, and agrees to deliver the Collateral to Agent upon request; and (d) for any Collateral
subject to a Licensor’s Intellectual Property rights, the Licensor grants to Agent the right, vis-à-vis such Licensor,
to enforce Agent’s Liens with respect to the Collateral, including the right to dispose of it with the benefit of the Intellectual
Property, whether or not a default exists under any applicable License.

 

Loan Account: the loan account established
by each Lender on its books pursuant to Section 5.8.

 

Loan Documents: this Agreement, Other
Agreements and Security Documents.

 

Margin Stock: as defined in Regulation
U of the Board of Governors.

 

Material Adverse Effect: the effect of
any event or circumstance that, taken alone or in conjunction with other events or circumstances, (a) has or could be reasonably
expected to have a material adverse effect on the business, operations, Properties, prospects or condition (financial or otherwise)
of any Obligor, on the value of any material Collateral, on the enforceability of any Loan Documents, or on the validity or priority
of Agent’s Liens on any Collateral; (b) impairs the ability of any Obligor to perform any obligations under the Loan Documents,
including repayment of any Obligations; or (c) otherwise impairs the ability of Agent or any Lender to enforce or collect any Obligations
or to realize upon any Collateral.

 

Material Contract: (i) any agreement
or arrangement to which Parent or any of its Subsidiaries are party (other than the Loan Documents) (a) that is deemed to be a
material contract under any securities law applicable to such Person, including the Securities Act of 1933; (b) for which breach,
termination, nonperformance or failure to renew could reasonably be expected to have a Material Adverse Effect; or (c) that relates
to Subordinated Debt, or to Debt in an aggregate amount of $100,000 or more or (ii) the Contracts Servicing Agreement.

 

    	21

     

    

 

Minimum Loss Reserve: as defined in Section
10.1.13.

 

Moody’s: Moody’s Investors
Service, Inc. or any successor acceptable to Agent.

 

Multiemployer Plan: any employee benefit
plan of the type described in Section 4001(a)(3) of ERISA, to which an Obligor or ERISA Affiliate makes or is obligated to make
contributions, or during the preceding 5 plan years, has made or been obligated to make contributions.

 

Multiple Employer Plan: a Plan that has
two or more contributing sponsors, including an Obligor or ERISA Affiliate, at least two of whom are not under common control,
as described in Section 4064 of ERISA.

 

Net Proceeds: with respect to an Asset
Disposition, proceeds (including, when received, any deferred or escrowed payments) received by Obligor in cash from such disposition,
net of (a) reasonable and customary costs and expenses actually incurred in connection therewith, including legal fees and sales
commissions; (b) amounts applied to repayment of Debt secured by a Permitted Lien senior to Agent’s Liens on Collateral sold;
(c) transfer or similar taxes; and (d) reserves for indemnities, until such reserves are no longer needed.

 

Notice of Borrowing: a request by either
Colonial, ACM, or TCM for a Borrowing of Revolver Loans, in form satisfactory to Agent.

 

Notice of Conversion/Continuation: a
request by Colonial, ACM or TCM for conversion or continuation of a Revolver Loan as a LIBOR Loan, in form satisfactory to Agent.

 

Obligations: all ACM-TCM Obligations
and Colonial Obligations.

 

Obligor: each Borrower, Guarantor or
other Person that is liable for payment of any Obligations or that has granted a Lien on its assets in favor of Agent to secure
any Obligations.

 

OFAC: Office of Foreign Assets Control
of the U.S. Treasury Department.

 

Ordinary Course of Business: the ordinary
course of business of Parent or its Subsidiaries, undertaken in good faith and consistent with Applicable Law and past practices.

 

Organic Documents: with respect to any
Person, its charter, certificate or articles of incorporation, bylaws, articles of organization, limited liability agreement, operating
agreement, members agreement, shareholders agreement, partnership agreement, certificate of partnership, certificate of formation,
voting trust agreement, or similar agreement or instrument governing the formation or operation of such Person.

 

OSHA: the Occupational Safety and Hazard
Act of 1970.

 

Other Agreement: each Revolver Note;
LC Document; Fee Letter; Lien Waiver; Intercompany Subordination Agreement; Borrowing Base Report; Compliance Certificate; Borrower
Materials, or other note, document, instrument or agreement (other than this Agreement or a Security Document) now or hereafter
delivered by an Obligor or other Person to Agent or a Lender in connection with any transactions relating hereto.

 

    	22

     

    

 

Other Connection Taxes: Taxes imposed
on a Recipient due to a present or former connection between it and the taxing jurisdiction (other than connections arising from
the Recipient having executed, delivered, become party to, performed obligations or received payments under, received or perfected
a Lien or engaged in any other transaction pursuant to, enforced, or sold or assigned an interest in, any Loan or Loan Document).

 

Other Taxes: all present or future stamp,
court, documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution,
delivery, performance, enforcement or registration of, from the receipt or perfection of a Lien under, or otherwise with respect
to, any Loan Document, except Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant
to Section 13.4(c)).

 

Overadvance: an ACM-TCM Overadvance or
Colonial Overadvance.

 

Overadvance Loan: an ACM-TCM Overadvance
Loan or a Colonial Overadvance Loan.

 

Parent: as defined in the preamble to
this Agreement.

 

Participant: as defined in Section
13.2.

 

Past Due Percent: the percent equal to
(a) the sum of the Colonial Net Balances owing under all Vehicle Contracts that are 29 days or more past due or where the Contract
Debtor is subject to an Insolvency Proceeding, calculated as of the last day of the month for each of the last 2 months, divided
by (b) the sum of the Colonial Net Balances owing under all Vehicle Contracts at the end of each of the last 2 months.

 

Patriot Act: the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56, 115 Stat.
272 (2001).

 

Payment Item: each check, draft or other
item of payment payable to a Borrower, including those constituting proceeds of any Collateral.

 

PBGC: the Pension Benefit Guaranty Corporation.

 

Pension Funding Rules: Code and ERISA
rules regarding minimum required contributions (including installment payments) to Pension Plans set forth in, for plan years ending
prior to the Pension Protection Act of 2006 effective date, Section 412 of the Code and Section 302 of ERISA, both as in effect
prior to such act, and thereafter, Sections 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

 

Pension Plan: any employee pension benefit
plan (as defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored
or maintained by any Obligor or ERISA Affiliate or to which the Obligor or ERISA Affiliate contributes or has an obligation to
contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at
any time during the preceding 5 plan years.

 

Permitted Airplane Financing: any airplane
financing obtained by Crown secured solely by the airplane owned by Crown as of the Closing Date so long as: (a) such financing
is with a financier which is not an Affiliate of Parent or its Subsidiaries and is an arms-length transaction, (b) upon giving
effect thereto, no Default or Event of Default exists, (c) the Net Proceeds of such financing are paid to Agent for application
to the Obligations.

 

    	23

     

    

 

Permitted Asset Disposition: as long
as no Default or Event of Default exists and all Net Proceeds are remitted to Agent for application to the Obligations, an Asset
Disposition that is (a) a sale of Inventory in the Ordinary Course of Business; (b) a disposition of Equipment that, in the aggregate
during any 12-month period, has a fair market or book value (whichever is more) of $100,000 or less; (c) a disposition of Inventory
that is obsolete, unmerchantable or otherwise unsalable in the Ordinary Course of Business; (d) termination of a lease of real
or personal Property that is not necessary for the Ordinary Course of Business, could not reasonably be expected to have a Material
Adverse Effect and does not result from an Obligor’s default; (e) Permitted Sale/Leaseback; (f) a Permitted Contract Sale;
or (g) approved in writing by Agent and Required Lenders.

 

Permitted Contingent Obligations: Contingent
Obligations (a) arising from endorsements of Payment Items for collection or deposit in the Ordinary Course of Business; (b) arising
from Hedging Agreements permitted hereunder; (c) existing on the Closing Date, and any extension or renewal thereof that does not
increase the amount of such Contingent Obligation when extended or renewed; (d) incurred in the Ordinary Course of Business with
respect to surety, appeal or performance bonds, or other similar obligations; (e) arising from customary indemnification obligations
in favor of purchasers in connection with dispositions of Equipment permitted hereunder; (f) arising under the Loan Documents;
or (g) in an aggregate amount of $100,000 or less at any time.

 

Permitted Contract Sale: a sale of Vehicle
Contracts to a third party approved Agent (which approval will not be unreasonably withheld) and its Affiliates which satisfy the
following conditions:

 

		(a)	immediately before and after giving effect to each such sale, no Default or Event of Default exists;
	 	 	 

		(b)	each Vehicle Contract disposed pursuant to such sale is not an Eligible Vehicle Contract or the
original term of the Vehicle Contract is in excess of 36 months;
	 	 	 

		(c)	the cash consideration received by ACM for each Vehicle Contract disposed pursuant to such sale
is equal to or greater than ACM’s investment plus costs with respect to such Vehicle Contract and such cash consideration
is paid to ACM in full promptly after the consummation of such sale; and
	 	 	 

		(d)	each such sale is non-recourse to Borrowers or their Affiliates except for ACM’s repurchase
obligations set forth in the documents evidencing the applicable sale which is to be exercised solely with respect to Vehicle Contracts
which do not satisfy the representations and warranties set forth in the documents evidencing the applicable sale.
	 	 	 

Permitted Distributions: Distributions
by

 

(i)       the
Subsidiaries of Parent to Parent in an aggregate amount not greater than $50,000 per year in order to provide the funds necessary
for Parent to repay its obligations under the AFI Note, so long as no Default or Event of Default exists immediately before and
after giving effect to such Distribution, and

 

(ii)       Parent
to its Equity Interest Holders in order to repurchase Parent’s stock from such holders so long as:

 

(a)       (1)
immediately before and after giving effect to such repurchase, the aggregate amount of such repurchases consummated after the Closing
Date does not exceed $40,000,000 (net of proceeds received from exercise of stock options),

 

    	24

     

    

 

(2) the sum of: (w) the amount under clause
(b) of the Colonial Borrowing Base minus the principal balance of all Colonial Revolver Loans, and (x) the amount of the ACM-TCM
Borrowing Base minus the principal balance of all ACM-TCM Revolver Loans, immediately after giving effect to such repurchase is
equal to or greater than 25% of the sum of (y) the amount under clause (b) of the Colonial Borrowing Base, and (z) the amount of
the ACM-TCM Borrowing Base, immediately after giving effect to such repurchase, and

 

(3) no Default or Event of Default exists immediately
before and after giving effect to any such repurchase, or

 

(b)       if
such repurchase is not permitted under clause (ii)(a) above,

 

(1) immediately before and after giving effect
to such repurchase (net of proceeds received from exercise of stock options), the aggregate amount of such repurchases does not
exceed 75% of the consolidated net income of Parent and its Subsidiaries measured on a trailing twelve month basis, and

 

(2) no Default or Event of Default exists immediately
before and after giving effect to any such repurchase; provided, that no Distributions under clause (ii) above shall be permitted
if immediately before and after giving effect thereto the sum of the Colonial Availability and ACM-TCM Availability is less than
12.5% of the aggregate Revolver Commitments.

 

Permitted Lien: as defined in Section
10.2.2.

 

Permitted Purchase Money Debt: Purchase
Money Debt of an Obligor that is unsecured or secured only by a Purchase Money Lien, as long as the aggregate amount does not exceed
$250,000 during each Fiscal Year and its incurrence does not violate Section 10.2.3.

 

Permitted Sale/Leaseback: a sale and
leaseback transaction that is in respect of Real Estate and the improvements thereto that is first acquired by Parent or its Subsidiaries
after the Closing Date, so long as:

 

(a)               
no Default or Event of Default shall exist or shall result from the consummation of such sale and leaseback;

 

(b)              
such Person receives fair market value for the sale of the subject assets,

 

(c)               
100% of the consideration received is cash or Cash Equivalents, and

 

(d)              
such sale and leaseback is consummated within 360 days from the date that Parent or any of its Subsidiaries acquired the
subject Real Estate and improvements.

 

Person: any individual, corporation,
limited liability company, partnership, joint venture, association, trust, unincorporated organization, Governmental Authority
or other entity.

 

Plan: an employee benefit plan (as defined
in Section 3(3) of ERISA) maintained for employees of an Obligor or ERISA Affiliate, or to which an Obligor or ERISA Affiliate
is required to contribute on behalf of its employees.

 

Platform: as defined in Section 14.3.3.

 

    	25

     

    

 

Prime Rate: the rate of interest announced
by Bank of America from time to time as its prime rate. Such rate is set by Bank of America on the basis of various factors, including
its costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some
loans, which may be priced at, above or below such rate. Any change in such rate publicly announced by Bank of America shall take
effect at the opening of business on the day specified in the announcement.

 

Pro Rata: with respect to any Lender,
a percentage (rounded to the ninth decimal place) determined (a) by dividing the amount of such Lender’s Revolver Commitment
by the aggregate outstanding Revolver Commitments; or (b) following termination of the Revolver Commitments, by dividing the amount
of such Lender’s Revolver Loans and LC Obligations by the aggregate outstanding Revolver Loans and LC Obligations or, if
all Revolver Loans and LC Obligations have been paid in full and/or Cash Collateralized, by dividing such Lender’s and its
Affiliates’ remaining Obligations by the aggregate remaining Obligations.

 

Properly Contested: with respect to any
obligation of an Obligor, (a) the obligation is subject to a bona fide dispute regarding amount or the Obligor’s liability
to pay; (b) the obligation is being properly contested in good faith by appropriate proceedings promptly instituted and diligently
pursued; (c) appropriate reserves have been established in accordance with GAAP; (d) non-payment could not have a Material Adverse
Effect, nor result in forfeiture or sale of any assets of the Obligor; (e) no Lien is imposed on assets of the Obligor, unless
bonded and stayed to the satisfaction of Agent; and (f) if the obligation results from entry of a judgment or other order, such
judgment or order is stayed pending appeal or other judicial review.

 

Property: any interest in any kind of
property or asset, whether real, personal or mixed, or tangible or intangible.

 

Protective Advances: an ACM-TCM Protective
Advance or a Colonial Protective Advance.

 

Purchase Money Debt: (a) Debt (other
than the Obligations) for payment of any of the purchase price of fixed assets; (b) Debt (other than the Obligations) incurred
within 10 days before or after acquisition of any fixed assets, for the purpose of financing any of the purchase price thereof;
and (c) any renewals, extensions or refinancings (but not increases) thereof.

 

Purchase Money Lien: a Lien that secures
Purchase Money Debt, encumbering only the fixed assets acquired with such Debt and constituting a Capital Lease or a purchase money
security interest under the UCC.

 

Qualified ECP: an Obligor with total
assets exceeding $10,000,000, or that constitutes an “eligible contract participant” under the Commodity Exchange Act
and can cause another Person to qualify as an “eligible contract participant” under Section 1a(18)(A)(v)(II) of such
act.

 

RCRA: the Resource Conservation and Recovery
Act (42 U.S.C. §§ 6991-6991i).

 

Real Estate: all right, title and interest
(whether as owner, lessor or lessee) in any real Property or any buildings, structures, parking areas or other improvements thereon.

 

Recipient: Agent, Issuing Bank, any Lender
or any other recipient of a payment to be made by an Obligor under a Loan Document or on account of an Obligation.

 

Refinancing Conditions: (a) the Refinancing
Debt is in an aggregate principal amount that does not exceed the principal amount of the Debt being extended, renewed or refinanced;
(b) it has a final maturity no sooner than, a weighted average life no less than, and an interest rate no greater than, the Debt
being extended, renewed or refinanced; (c) it is subordinated to the Obligations at least to the same extent as the Debt being
extended, renewed or refinanced; (d) the representations, covenants and defaults applicable to it are no less favorable to Borrower
than those applicable to the Debt being extended, renewed or refinanced; (e) no additional Lien is granted to secure it; (f) no
additional Person is obligated on such Debt; and (g) upon giving effect to it, no Default or Event of Default exists.

 

    	26

     

    

 

Refinancing Debt: Borrowed Money that
is the result of an extension, renewal or refinancing of Debt permitted under Section 10.2.1(b) or (d).

 

Reimbursement Date: as defined in Section
2.3.2.

 

Rent and Charges Reserve: as determined
by Agent, the aggregate of (a) all past due rent and other amounts owing by an Obligor to any landlord, warehouseman, processor,
repairman, mechanic, shipper, freight forwarder, broker or other Person who possesses any Collateral or could assert a Lien on
any Collateral; and (b) a reserve at least equal to 3 months rent and other charges that could be payable to any such Person, unless
it has executed a Lien Waiver.

 

Report: as defined in Section 12.2.3.

 

Reportable Event: any event set forth
in Section 4043(c) of ERISA, other than an event for which the 30 day notice period has been waived.

 

Repossession Percent: the percent equal
to (a) the sum of the repossession value of all Vehicles which any Borrower has repossessed in the last 2 months and which, as
of the last day of the 2-month period then ending, was reflected as assets on any Borrower’s books divided by (b) the sum
of the Colonial Net Balances owing under all Vehicle Contracts at the end of each of the last 2 months.

 

Repossessed Contracts: the Vehicle Contracts
with respect to which the merchandise sold in connection with the execution of the Vehicle Contract has been repossessed or
returned.

 

Required Lenders: Secured Parties holding
more than 67% of (a) the aggregate Revolver Commitments or (b) after termination of the Revolver Commitments, the aggregate outstanding
Revolver Loans and LC Obligations or, upon Full Payment of all Revolver Loans and LC Obligations, the aggregate remaining Obligations;
provided, that Commitments, Revolver Loans and other Obligations held by a Defaulting Lender and its Affiliates shall be
disregarded in making such calculation, but any related Fronting Exposure shall be deemed held as a Revolver Loan or LC Obligation
by the Lender that funded the applicable Revolver Loan or issued the applicable Letter of Credit; provided further, that
at any time there are no more than 2 Lenders, “Required Lenders” shall mean all Lenders.

 

Restricted Investment: any Investment
by a Borrower, other than (a) Cash Equivalents that are subject to Agent’s Lien and control, pursuant to documentation in
form and substance satisfactory to Agent; and (b) loans and advances permitted under Section 10.2.7.

 

Restrictive Agreement: an agreement (other
than a Loan Document) that conditions or restricts the right of Parent, its Subsidiaries or other Obligor to incur or repay Borrowed
Money, to grant Liens on any assets, to declare or make Distributions, to modify, extend or renew any agreement evidencing Borrowed
Money, or to repay any intercompany Debt.

 

    	27

     

    

 

Revolver Commitment: for any Lender,
its ACM-TCM Revolver Commitment and its Colonial Revolver Commitment. “Revolver Commitments” means the aggregate
amount of all Revolver Commitments.

 

Revolver Commitment Termination Date:
the earliest to occur of (a) the Colonial Revolver Termination Date; (b) the ACM-TCM Revolver Termination Date, (c) the date on
which Colonial terminates the Colonial Revolver Commitments pursuant to Section 2.1.4; (d) the date on which ACM or TCM
terminate the ACM-TCM Revolver Commitments pursuant to Section 2.2.4; or (e) the date on which the Revolver Commitments
are terminated pursuant to Section 11.2.

 

Revolver Loan: any ACM-TCM Revolver Loan
or Colonial Revolver Loan.

 

Revolver Note: an ACM-TCM Revolver Note
or a Colonial Revolver Note.

 

S&P: Standard & Poor's Financial
Services LLC, a subsidiary of The McGraw-Hill Companies, Inc., or any successor acceptable to Agent.

 

Secured Bank Product Obligations: Debt,
obligations and other liabilities with respect to Bank Products owing by a Borrower or Affiliate of a Borrower to a Secured Bank
Product Provider; provided, that Secured Bank Product Obligations of an Obligor shall not include its Excluded Swap Obligations.

 

Secured Bank Product Provider: (a) Bank
of America or any of its Affiliates; (b) BOK Financial Corporation or any of its Affiliates; and (c) any Lender or Affiliate of
a Lender that is providing a Bank Product, provided the provider delivers written notice to Agent, in form and substance satisfactory
to Agent, within 10 days following the later of the Closing Date or creation of the Bank Product, (i) describing the Bank Product
and setting forth the maximum amount to be secured by the Collateral and the methodology to be used in calculating such amount,
and (ii) agreeing to be bound by Section 12.14.

 

Secured Parties: Agent, Issuing Bank,
Lenders and Secured Bank Product Providers.

 

Security Documents: the Guaranties, Guarantor
Security Agreements, Deposit Account Control Agreements, and all other documents, instruments and agreements now or hereafter securing
(or given with the intent to secure) any Obligations.

 

Senior Officer: the chairman of the board,
president, chief executive officer or chief financial officer of Borrower or, if the context requires, an Obligor.

 

Settlement Report: a report delivered
by Agent to Lenders summarizing the Revolver Loans and participations in LC Obligations outstanding as of a given settlement date,
allocated to Lenders on a Pro Rata basis in accordance with their Revolver Commitments.

 

Solvent: as to any Person, such Person
(a) owns Property whose fair salable value is greater than the amount required to pay all of its debts (including contingent, subordinated,
unmatured and unliquidated liabilities); (b) owns Property whose present fair salable value (as defined below) is greater than
the probable total liabilities (including contingent, subordinated, unmatured and unliquidated liabilities) of such Person as they
become absolute and matured; (c) is able to pay all of its debts as they mature; (d) has capital that is not unreasonably small
for its business and is sufficient to carry on its business and transactions and all business and transactions in which it is about
to engage; (e) is not “insolvent” within the meaning of Section 101(32) of the Bankruptcy Code; and (f) has not incurred
(by way of assumption or otherwise) any obligations or liabilities (contingent or otherwise) under any Loan Documents, or made
any conveyance in connection therewith, with actual intent to hinder, delay or defraud either present or future creditors of such
Person or any of its Affiliates. “Fair salable value” means the amount that could be obtained for assets within
a reasonable time, either through collection or through sale under ordinary selling conditions by a capable and diligent seller
to an interested buyer who is willing (but under no compulsion) to purchase.

 

    	28

     

    

 

Specified Obligor: an Obligor that is
not then an “eligible contract participant” under the Commodity Exchange Act (determined prior to giving effect to
Section 5.11).

 

Stated Amount: the outstanding amount
of a Letter of Credit, including any automatic increase or tolerance (whether or not then in effect) provided by the Letter of
Credit or related LC Documents.

 

Subordinated Debt: Debt incurred by a
Borrower that is expressly subordinate and junior in right of payment to Full Payment of all Obligations, and is on terms (including
maturity, interest, fees, repayment, covenants and subordination) satisfactory to Agent and includes the Intercompany Subordinated
Debt.

 

Subsidiary: any entity at least 50% of
whose voting securities or Equity Interests is owned by a Person (including indirect ownership by such Person through other entities
in which the Person directly or indirectly owns 50% of the voting securities or Equity Interests).

 

Swap Obligations: with respect to an
Obligor, its obligations under a Hedging Agreement that constitutes a “swap” within the meaning of Section 1a(47) of
the Commodity Exchange Act.

 

Swingline Loan: any ACM-TCM Swingline
Loan or Colonial Swingline Loan.

 

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

 

TCM: Texas Car-Mart, Inc., a Texas corporation.

 

Total Liabilities: as applied to any
Person, without duplication, (a) all items that would be included as liabilities on a balance sheet in accordance with GAAP, including
Capital Leases; (b) all Contingent Obligations; (c) all reimbursement obligations in connection with letters of credit issued for
the account of such Person; and (d) in the case of Borrower, the Obligations. The Debt of a Person shall include any recourse Debt
of any partnership in which such Person is a general partner or joint venturer.

 

Transferee: any actual or potential Eligible
Assignee, Participant or other Person acquiring an interest in any Obligations.

 

Trigger Event: the occurrence of (a)
an Event of Default or (b) the sum of Colonial Availability and ACM-TCM Availability being less than 10% of the aggregate Revolver
Commitments at any time.

 

Trigger Period: the period (a) commencing
upon any day that a Trigger Event occurs and (b) ending on the day on which, during the preceding 90 consecutive days (i) no Event
of Default has existed and (ii) the sum of ACM-TCM Availability and Colonial Availability has at all times been greater than 10%
of the aggregate Revolver Commitments; provided, that a Trigger Period may commence but will not be terminated more than
3 times during the term of this Agreement.

 

    	29

     

    

 

UCC: the Uniform Commercial Code as in
effect in the State of California or, when the laws of any other jurisdiction govern the perfection or enforcement of any Lien,
the Uniform Commercial Code of such jurisdiction.

 

Unacceptable Modified Contract: a Contract
which has been modified in a way that Agent in its reasonable discretion deems unacceptable and accordingly ineligible. Without
intending to limit Agent’s discretion, any Contract which was more than 30 days contractually delinquent but was subsequently
modified so as to eliminate the delinquency shall be considered as unacceptable. Notwithstanding the previous sentence, in the
event 4 consecutive full payments are made on any Unacceptable Modified Contract and such Unacceptable Modified Contract is not
then in any respect delinquent, such Unacceptable Modified Contract shall at such time no longer be considered as an Unacceptable
Modified Contract. No contract which was at one time unacceptable shall thereafter be reclassified as acceptable more than twice
during the term on such Contract. Additionally, Colonial may change the monthly (or lesser payment period as applicable) due date
by not more than 15 days with respect to a Contract to coincide with a Contract Debtor’s pay date and such adjustment to
the Contract shall not by itself render the Contract as unacceptable.

 

Unfunded Pension Liability: the excess
of a Pension Plan's benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s
assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to the Code, ERISA or the Pension
Protection Act of 2006 for the applicable plan year.

 

Unused Line Fee Rate: a per annum rate
equal to 0.25%.

 

Upstream Payment: a Distribution by a
Subsidiary of Parent to an Obligor.

 

U.S. Person: “United States Person”
as defined in Section 7701(a)(30) of the Code.

 

U.S. Tax Compliance Certificate: as defined
in Section 5.10.2(b)(iii).

 

Vehicle: any new or used, two-axeled,
automobile or light-duty truck, together with all accessions, parts and equipment sold or financed in connection therewith.

 

Vehicle Contract: all Instruments, notes,
documents, chattel paper, accounts, installment sale contracts and other payment obligations which arise from or relate to an installment
sale of a Vehicle.

 

Vehicle Contract Compliance Requirements:
all Applicable Laws (including Consumer Finance Laws) established from time to time by any local, state or federal agency with
respect to the form and substance of consumer finance contracts, including but not limited to Regulation Z of the Truth in Lending
Act (TILA) of 1968.

 

Write-Down and Conversion Powers: the
write-down and conversion powers of the applicable EEA Resolution Authority from time to time under the Bail-In Legislation for
the applicable EEA Member Country, which powers are described in the EU Bail-In Legislation Schedule.

 

1.2.           
Accounting Terms. Under the Loan Documents (except as otherwise specified therein), all accounting terms shall
be interpreted, all accounting determinations shall be made, and all financial statements shall be prepared, in accordance with
GAAP applied on a basis consistent with the most recent audited financial statements of Parent delivered to Agent before the Closing
Date and using the same inventory valuation method as used in such financial statements, except for any change required or permitted
by GAAP if Parent’s certified public accountants concur in such change, the change is disclosed to Agent, and all relevant
provisions of the Loan Documents are amended in a manner satisfactory to Required Lenders to take into account the effects of the
change.

 

    	30

     

    

 

1.3.           
Uniform Commercial Code. As used herein, the following terms are defined in accordance with the UCC in effect
in the State of California from time to time: “Account,” “Account Debtor,” “Chattel Paper,”
“Commercial Tort Claim,” “Deposit Account,” “Document,” “Equipment,” “General
Intangibles,” “Goods,” “Instrument,” “Investment Property,” “Letter-of-Credit Right”
and “Supporting Obligation.”

 

1.4.           
Certain Matters of Construction. The terms “herein,” “hereof,” “hereunder”
and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision.
Any pronoun used shall be deemed to cover all genders. In the computation of periods of time from a specified date to a later specified
date, “from” means “from and including,” and “to” and “until” each mean “to
but excluding.” The terms “including” and “include” shall mean “including, without limitation”
and, for purposes of each Loan Document, the parties agree that the rule of ejusdem generi shall not be applicable to limit
any provision. Section titles appear as a matter of convenience only and shall not affect the interpretation of any Loan Document.
All references to (a) laws include all related regulations, interpretations, supplements, amendments and successor provisions;
(b) any document, instrument or agreement include any amendments, waivers and other modifications, extensions or renewals (to the
extent permitted by the Loan Documents); (c) any section means, unless the context otherwise requires, a section of this Agreement;
(d) any exhibits or schedules means, unless the context otherwise requires, exhibits and schedules attached hereto, which are hereby
incorporated by reference; (e) any Person include successors and assigns; (f) time of day means time of day in the Central time
zone; or (g) discretion of Agent, Issuing Bank or any Lender means the sole and absolute discretion of such Person exercised at
any time. All references to Value, Borrowing Base components, Revolver Loans, Letters of Credit, Obligations and other amounts
herein shall be denominated in Dollars and, unless expressly provided otherwise, all determinations (including calculations of
Borrowing Base and financial covenants) made from time to time under the Loan Documents shall be made in light of the circumstances
existing at such time. Borrowing Base calculations shall be consistent with historical methods of valuation and calculation, and
otherwise satisfactory to Agent (and not necessarily calculated in accordance with GAAP). Borrowers shall have the burden of establishing
any alleged negligence, misconduct or lack of good faith by Agent, Issuing Bank or any Lender under any Loan Documents. No provision
of any Loan Documents shall be construed against any party by reason of such party having, or being deemed to have, drafted the
provision. Reference to a Borrower's "knowledge" or similar concept means actual knowledge of a Senior Officer, or knowledge
that a Senior Officer would have obtained if he or she had engaged in good faith and diligent performance of his or her duties,
including reasonably specific inquiries of employees or agents and a good faith attempt to ascertain the matter.

 

SECTION 2       
CREDIT FACILITIES

 

2.1.           
Colonial Revolver Commitment.

 

2.1.1.                 
Colonial Revolver Loans. Each Lender agrees, severally on a Pro Rata basis up to its Colonial Revolver Commitment,
on the terms set forth herein, to make Colonial Revolver Loans to Colonial from time to time through the Colonial Revolver Commitment
Termination Date. The Colonial Revolver Loans may be repaid and reborrowed as provided herein. In no event shall Lenders have any
obligation to honor a request for a Colonial Revolver Loan if Colonial Revolver Usage at such time plus the requested Colonial
Revolver Loan would exceed the Colonial Borrowing Base.

 

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2.1.2.                 
Colonial Revolver Notes. Colonial Revolver Loans and interest accruing thereon shall be evidenced by the records
of Agent and the applicable Lender. At the request of a Lender, Colonial shall deliver Colonial Revolver Note(s) to such Lender,
evidencing its Colonial Revolver Loans.

 

2.1.3.                 
Use of Proceeds. The proceeds of Colonial Revolver Loans shall be used by Colonial solely (a) to satisfy existing
Debt; (b) to pay fees and transaction expenses associated with the closing of this credit facility; (c) to pay Colonial Obligations
in accordance with this Agreement; and (d) for lawful corporate purposes of Colonial, including working capital. Colonial shall
not, directly or indirectly, use any Letter of Credit or Colonial Revolver Loan proceeds, nor use, lend, contribute or otherwise
make available any Letter of Credit or Colonial Revolver Loan proceeds to any Subsidiary, joint venture partner or other Person,
(i) to fund any activities of or business with any Person, or in any Designated Jurisdiction, that, at the time of issuance of
the Letter of Credit or funding of the Colonial Revolver Loan, is the subject of any Sanction; (ii) in any manner that would result
in a violation of a Sanction by any Person (including any Secured Party or other individual or entity participating in any transaction);
or (iii) for any purpose that would breach the U.S. Foreign Corrupt Practices Act of 1977, UK Bribery Act 2010 or similar law in
any jurisdiction.

 

2.1.4.                 
Voluntary Reduction or Termination of Colonial Revolver Commitments.

 

(a)               
The Colonial Revolver Commitments shall terminate on the Revolver Commitment Termination Date, unless sooner terminated
in accordance with this Agreement. Upon at least 90 days prior written notice to Agent at any time, Colonial may, at its option,
terminate the Colonial Revolver Commitments and the Colonial credit facility. Any notice of termination given by Colonial shall
be irrevocable. On the termination date, Colonial shall make Full Payment of all Colonial Obligations.

 

(b)              
Colonial may permanently reduce the Colonial Revolver Commitments, on a ratable basis for all Lenders, upon at least 90
days prior written notice to Agent, which notice shall specify the amount of the reduction and shall be irrevocable once given.
Each reduction shall be in a minimum amount of $10,000,000, or an increment of $1,000,000 in excess thereof.

 

(c)               
Concurrently with any reduction in or termination of the Colonial Revolver Commitments, for whatever reason (including an
Event of Default), Colonial shall pay to Agent, for the Pro Rata benefit of Lenders and as liquidated damages for loss of bargain
(and not as a penalty), an amount equal to 0.375% of the Colonial Revolver Commitments being reduced or terminated. No termination
charge shall be payable if termination occurs on the Colonial Revolver Termination Date.

 

2.1.5.                 
Colonial Overadvances. If Colonial Revolver Usage exceeds the Colonial Borrowing Base (“Colonial Overadvance”)
at any time, the excess shall be payable immediately and shall constitute a Colonial Obligation secured by the Collateral, entitled
to all benefits of the Loan Documents. Unless its authority has been revoked in writing by Required Lenders, Agent may require
Lenders to fund Base Rate Revolver Loans that cause or constitute a Colonial Overadvance and to forbear from requiring Colonial
to cure a Colonial Overadvance as long as the total Colonial Overadvance does not exceed $500,000 and does not continue for more
than 30 consecutive days without the consent of Required Lenders. In no event shall Colonial Revolver Loans be required that would
cause Colonial Revolver Usage to exceed the aggregate Colonial Revolver Commitments. No funding or sufferance of a Colonial Overadvance
shall constitute a waiver by Agent or Lenders of the Event of Default caused thereby. Neither Parent nor any Obligor shall be a
beneficiary of this Section nor authorized to enforce any of its terms.

 

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2.1.6.                 
Colonial Protective Advances. Agent shall be authorized, in its discretion, at any time that any conditions in Section
6 are not satisfied, to make Base Rate Revolver Loans (“Colonial Protective Advances”) (a) up to an aggregate
amount of $1,000,000 outstanding at any time, if Agent deems such Revolver Loans necessary or desirable to preserve or protect
Collateral, or to enhance the collectability or repayment of Obligations as long as such Colonial Revolver Loans do not cause Colonial
Revolver Usage to exceed the aggregate Colonial Revolver Commitments; or (b) to pay any other amounts chargeable to Obligors under
any Loan Documents, including interest, costs, fees and expenses. Lenders shall participate on a Pro Rata basis in Colonial Protective
Advances outstanding from time to time. Required Lenders may at any time revoke Agent’s authority to make further Colonial
Protective Advances by written notice to Agent. Absent such revocation, Agent’s determination that funding of a Colonial
Protective Advance is appropriate shall be conclusive.

 

2.1.7.                 
Increase in Colonial Revolver Commitments. At any time after the Closing Date, Colonial may request an increase in
Colonial Revolver Commitments from time to time upon notice to Agent, as long as (a) the requested increase shall be in a minimum
amount of $5,000,000 and shall be offered on the same terms as existing Colonial Revolver Commitments, except for a closing fee
specified by Agent and Lenders, (b) total increases of the Colonial Revolver Commitments and ACM-TCM Revolver Commitments shall
not exceed $50,000,000 in the aggregate and no more than 3 total increases shall be made under this Section and Section 2.2.7,
and (c) no reduction in Colonial Revolver Commitments pursuant to Section 2.1.4 shall have occurred prior to the requested
increase. Agent shall promptly notify Lenders of the requested increase and, within 10 Business Days thereafter, each Lender shall
notify Agent if and to what extent such Lender commits to increase its Colonial Revolver Commitment. Any Lender not responding
within such period shall be deemed to have declined any increase. If Lenders fail to commit to the full requested increase, Agent
may select Eligible Assignees to issue additional Colonial Revolver Commitments and to become Lenders hereunder. Agent may allocate,
in its discretion, the increased Colonial Revolver Commitments among committing Lenders and, if necessary, Eligible Assignees.
Provided the conditions set forth in Section 6.2 are satisfied and the applicable commitments have been received, total
Colonial Revolver Commitments shall be increased by the requested amount (or such lesser amount committed by Lenders and Eligible
Assignees) on a date agreed upon by Agent and Colonial, which date shall be within 45 days following Colonial’s increase
request. Agent, Colonial, and new and existing Lenders shall execute and deliver such documents and agreements as Agent deems appropriate
to evidence the increase in Colonial Revolver Commitments, and Agent shall be entitled to revised Schedule 1.1 to reflect
the increased Colonial Revolver Commitments. Colonial shall prepay and Lenders shall fund Colonial Revolver Loans on the effective
date of the increase as necessary to allocate Colonial Revolver Loans among Lenders in accordance with their adjusted shares of
the Colonial Revolver Commitments.

 

2.2.           
ACM-TCM Revolver Commitment.

 

2.2.1.                 
ACM-TCM Revolver Loans. Each Lender agrees, severally on a Pro Rata basis up to its ACM-TCM Revolver Commitment,
on the terms set forth herein, to make ACM-TCM Revolver Loans to ACM and TCM from time to time through the ACM-TCM Revolver Commitment
Termination Date. The ACM-TCM Revolver Loans may be repaid and reborrowed as provided herein. In no event shall Lenders have any
obligation to honor a request for an ACM-TCM Revolver Loan if the unpaid balance of ACM-TCM Revolver Loans outstanding at such
time (including the requested ACM-TCM Revolver Loan) would exceed the ACM-TCM Borrowing Base.

 

2.2.2.                 
ACM-TCM Revolver Notes. ACM-TCM Revolver Loans and interest accruing thereon shall be evidenced by the records of
Agent and the applicable Lender. At the request of a Lender, ACM and TCM shall deliver ACM-TCM Revolver Note(s) to such Lender,
evidencing its ACM-TCM Revolver Loans.

 

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2.2.3.                 
Use of Proceeds. The proceeds of ACM-TCM Revolver Loans shall be used by ACM and TCM solely (a) to satisfy existing
Debt; (b) to pay fees and transaction expenses associated with the closing of this credit facility; (c) to pay ACM-TCM Obligations
in accordance with this Agreement; and (d) for lawful corporate purposes of ACM and TCM, including working capital. ACM and TCM
shall not, directly or indirectly, use any Letter of Credit or ACM-TCM Revolver Loan proceeds, nor use, lend, contribute or otherwise
make available any Letter of Credit or ACM-TCM Revolver Loan proceeds to any Subsidiary, joint venture partner or other Person,
(i) to fund any activities of or business with any Person, or in any Designated Jurisdiction, that, at the time of issuance of
the Letter of Credit or funding of the ACM-TCM Revolver Loan, is the subject of any Sanction; (ii) in any manner that would result
in a violation of a Sanction by any Person (including any Secured Party or other individual or entity participating in any transaction);
or (iii) for any purpose that would breach the U.S. Foreign Corrupt Practices Act of 1977, UK Bribery Act 2010 or similar law in
any jurisdiction.

 

2.2.4.                 
Termination of ACM-TCM Revolver Commitments.

 

(a)               
The ACM-TCM Revolver Commitments shall terminate on the earlier of the Revolver Commitment Termination Date or the date
on which the Colonial Commitments are terminated, unless sooner terminated in accordance with this Agreement. Upon at least 90
days prior written notice to Agent at any time, ACM and TCM may, at their option, terminate the ACM-TCM Revolver Commitments and
the ACM-TCM credit facility. Any notice of termination given by ACM or TCM shall be irrevocable. On the termination date, ACM and
TCM shall make Full Payment of all ACM-TCM Obligations.

 

(b)              
Concurrently with the termination of the ACM-TCM Revolver Commitments, for whatever reason (including an Event of Default),
ACM and TCM shall pay to Agent, for the Pro Rata benefit of Lenders and as liquidated damages for loss of bargain (and not as a
penalty), an amount equal to 0.375% of the ACM-TCM Revolver Commitments being terminated. No termination charge shall be payable
if termination occurs on the ACM-TCM Revolver Termination Date.

 

2.2.5.                 
ACM-TCM Overadvances. If the aggregate ACM-TCM Revolver Loans exceed the ACM-TCM Borrowing Base (“ACM-TCM
Overadvance”) at any time, the excess shall be payable immediately and shall constitute an ACM-TCM Obligation secured
by the Collateral, entitled to all benefits of the Loan Documents. Unless its authority has been revoked in writing by Required
Lenders, Agent may require Lenders to fund Base Rate Revolver Loans that cause or constitute an ACM-TCM Overadvance Loans and to
forbear from requiring ACM or TCM to cure an ACM-TCM Overadvance as long as the total ACM-TCM Overadvance does not exceed $500,000
and does not continue for more than 30 consecutive days without the consent of Required Lenders. In no event shall ACM-TCM Overadvance
Loans be required that would cause the outstanding ACM-TCM Revolver Loans to exceed the aggregate ACM-TCM Revolver Commitments.
No funding or sufferance of an ACM-TCM Overadvance shall constitute a waiver by Agent or Lenders of the Event of Default caused
thereby. Neither Parent nor any Obligor shall be a beneficiary of this Section nor authorized to enforce any of its terms.

 

2.2.6.                 
ACM-TCM Protective Advances. Agent shall be authorized, in its discretion, at any time that any conditions in Section
6 are not satisfied, to make Base Rate Revolver Loans (“ACM-TCM Protective Advances”) (a) up to an aggregate
amount of $1,000,000 outstanding at any time, if Agent deems such Revolver Loans necessary or desirable to preserve or protect
Collateral, or to enhance the collectability or repayment of Obligations, as long as such ACM-TCM Revolver Loans do not cause the
ACM-TCM Revolver Loans to exceed the aggregate ACM-TCM Revolver Commitments; or (b) to pay any other amounts chargeable to Obligors
under any Loan Documents, including interest, costs, fees and expenses. Lenders shall participate on a Pro Rata basis in ACM-TCM
Protective Advances outstanding from time to time. Required Lenders may at any time revoke Agent’s authority to make further
ACM-TCM Protective Advances by written notice to Agent. Absent such revocation, Agent’s determination that funding of an
ACM-TCM Protective Advance is appropriate shall be conclusive.

 

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2.2.7.                 
Increase in ACM-TCM Revolver Commitments. At any time after the Closing Date, ACM and TCM may request an increase
in ACM-TCM Revolver Commitments from time to time upon notice to Agent, as long as (a) the requested increase shall be in a minimum
amount of $1,000,000 and shall be offered on the same terms as existing ACM-TCM Revolver Commitments, except for a closing fee
specified by Agent and Lenders, and (b) total increases of the ACM-TCM Revolver Commitments and Colonial Revolver Commitments shall
not exceed $50,000,000 in the aggregate and no more than 3 total increases shall be made under this Section and Section 2.1.7.
Agent shall promptly notify Lenders of the requested increase and, within 10 Business Days thereafter, each Lender shall notify
Agent if and to what extent such Lender commits to increase its ACM-TCM Revolver Commitment. Any Lender not responding within such
period shall be deemed to have declined any increase. If Lenders fail to commit to the full requested increase, Agent may select
Eligible Assignees to issue additional ACM-TCM Revolver Commitments and to become Lenders hereunder. Agent may allocate, in its
discretion, the increased ACM-TCM Revolver Commitments among committing Lenders and, if necessary, Eligible Assignees. Provided
the conditions set forth in Section 6.2 are satisfied and the applicable commitments have been received, total ACM-TCM Revolver
Commitments shall be increased by the requested amount (or such lesser amount committed by Lenders and Eligible Assignees) on a
date agreed upon by Agent, ACM and TCM, which date shall be within 45 days following ACM’s and TCM’s increase request.
Agent, ACM, TCM, and new and existing Lenders shall execute and deliver such documents and agreements as Agent deems appropriate
to evidence the increase in ACM-TCM Revolver Commitments, and Agent shall be entitled to revised Schedule 1.1 to reflect
the increased ACM-TCM Revolver Commitments. ACM and TCM shall prepay and Lenders shall fund ACM-TCM Revolver Loans on the effective
date of the increase as necessary to allocate ACM-TCM Revolver Loans among Lenders in accordance with their adjusted shares of
the ACM-TCM Revolver Commitments.

 

2.3.           
Colonial Letter of Credit Facility.

 

2.3.1.                 
Issuance of Letters of Credit. Issuing Bank shall issue Letters of Credit (from time to time until the Colonial Revolver
Termination Date, on the terms set forth herein, including the following:

 

(a)               
Colonial acknowledges that Issuing Bank’s issuance of any Letter of Credit is conditioned upon Issuing Bank’s
receipt of a LC Application with respect to the requested Letter of Credit, as well as such other instruments and agreements as
Issuing Bank may customarily require for issuance of a letter of credit of similar type and amount. Issuing Bank shall have no
obligation to issue any Letter of Credit unless (i) Issuing Bank receives a LC Request and LC Application at least 3 Business Days
prior to the requested date of issuance; (ii) each LC Condition is satisfied; and (iii) if a Defaulting Lender exists, such Lender
or Borrowers have entered into arrangements satisfactory to Agent and Issuing Bank to eliminate any funding risk associated with
the Defaulting Lender. If, in sufficient time to act, Issuing Bank receives written notice from Agent or Required Lenders that
any LC Condition has not been satisfied, Issuing Bank shall not issue the requested Letter of Credit. Prior to receipt of any such
notice, Issuing Bank shall not be deemed to have knowledge of any failure of LC Conditions.

 

(b)              
Letters of Credit may be requested by Colonial only (i) to support obligations of Colonial incurred in the Ordinary Course
of Business; or (ii) for other purposes as Agent and Lenders may approve from time to time in writing. Increase, renewal or extension
of a Letter of Credit shall be treated as issuance of a new Letter of Credit, except that Issuing Bank may require a new LC Application
in its discretion.

 

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(c)               
Colonial assumes all risks of the acts, omissions or misuses of any Letter of Credit by the beneficiary. In connection with
any Letter of Credit, none of Agent, Issuing Bank or any Lender shall be responsible for the existence, character, quality, quantity,
condition, packing, value or delivery of any goods purported to be represented by any Documents; any differences or variation in
the character, quality, quantity, condition, packing, value or delivery of any goods from that expressed in any Documents; the
form, validity, sufficiency, accuracy, genuineness or legal effect of any Documents or of any endorsements thereon; the time, place,
manner or order in which shipment of goods is made; partial or incomplete shipment of, or failure to ship, any goods referred to
in a Letter of Credit or Documents; any deviation from instructions, delay, default or fraud by any shipper or other Person in
connection with any goods, shipment or delivery; any breach of contract between a shipper or vendor and Colonial; errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex, telecopy, e-mail, telephone
or otherwise; errors in interpretation of technical terms; the misapplication by a beneficiary of any Letter of Credit or the proceeds
thereof; or any consequences arising from causes beyond the control of Issuing Bank, Agent or any Lender, including any act or
omission of a Governmental Authority. Parent and each Obligor shall take all action to avoid and mitigate any damages relating
to any Letter of Credit or claimed against Issuing Bank, Agent or any Lender, including through enforcement of any available rights
against a beneficiary. Issuing Bank shall be fully subrogated to the rights and remedies of any beneficiary whose claims against
Colonial are discharged with proceeds of a Letter of Credit. The rights and remedies of Issuing Bank under the Loan Documents shall
be cumulative.

 

(d)              
In connection with its administration of and enforcement of rights or remedies under any Letters of Credit or LC Documents,
Issuing Bank shall be entitled to act, and shall be fully protected in acting, upon any certification, documentation or communication
in whatever form believed by Issuing Bank, in good faith, to be genuine and correct and to have been signed, sent or made by a
proper Person. Issuing Bank may use legal counsel, accountants and other experts to advise it concerning its obligations, rights
and remedies, and shall be entitled to act upon, and shall be fully protected in any action taken in good faith reliance upon,
any advice given by such experts. Issuing Bank may employ agents and attorneys-in-fact in connection with any matter relating to
Letters of Credit or LC Documents, and shall not be liable for the negligence or misconduct of agents and attorneys-in-fact selected
with reasonable care.

 

2.3.2.                 
Reimbursement; Participations.

 

(a)               
If Issuing Bank honors any request for payment under a Letter of Credit, Borrower shall pay to Issuing Bank, on the same
day (“Reimbursement Date”), the amount paid by Issuing Bank under such Letter of Credit, together with interest
at the interest rate for Base Rate Revolver Loans from the Reimbursement Date until payment by Colonial. The obligation of Colonial
to reimburse Issuing Bank for any payment made under a Letter of Credit shall be absolute, unconditional, irrevocable, and joint
and several, and shall be paid without regard to any lack of validity or enforceability of any Letter of Credit or the existence
of any claim, setoff, defense or other right that Colonial may have at any time against the beneficiary. Whether or not Colonial
submits a Notice of Borrowing, Colonial shall be deemed to have requested a Borrowing of Base Rate Revolver Loans in an amount
necessary to pay all amounts due Issuing Bank on any Reimbursement Date and each Lender shall fund its Pro Rata share of such Borrowing
whether or not the Revolver Commitments have terminated, an Overadvance exists or is created thereby, or the conditions in Section
6 are satisfied.

 

(b)              
Each Lender hereby irrevocably and unconditionally purchases from Issuing Bank, without recourse or warranty, an undivided
Pro Rata participation in all LC Obligations outstanding from time to time. Issuing Bank is issuing Letters of Credit in reliance
upon this participation. If Colonial does not make a payment to Issuing Bank when due hereunder, Agent shall promptly notify Lenders
and each Lender shall within one Business Day after such notice pay to Agent, for the benefit of Issuing Bank, the Lender's Pro
Rata share of such payment. Upon request by a Lender, Issuing Bank shall provide copies of Letters of Credit and LC Documents in
its possession at such time.

 

    	36

     

    

 

(c)               
The obligation of each Lender to make payments to Agent for the account of Issuing Bank in connection with Issuing Bank's
payment under a Letter of Credit shall be absolute, unconditional and irrevocable, not subject to any counterclaim, setoff, qualification
or exception whatsoever, and shall be made in accordance with this Agreement under all circumstances, irrespective of any lack
of validity or unenforceability of any Loan Documents; any draft, certificate or other document presented under a Letter of Credit
having been determined to be forged, fraudulent, noncompliant, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; any waiver by Issuing Bank of a requirement that exists for its protection (and not
a Borrower's protection) or that does not materially prejudice a Borrower; any honor of an electronic demand for payment even if
a draft is required; any payment of an item presented after a Letter of Credit's expiration date if authorized by the UCC or applicable
customs or practices; or any setoff or defense that an Obligor may have with respect to any Obligations. Issuing Bank does not
assume any responsibility for any failure or delay in performance or any breach by Borrower or other Person of any obligations
under any LC Documents. Issuing Bank does not make to Lenders any express or implied warranty, representation or guaranty with
respect to any Letter of Credit, Collateral, LC Document or Obligor. Issuing Bank shall not be responsible to any Lender for any
recitals, statements, information, representations or warranties contained in, or for the execution, validity, genuineness, effectiveness
or enforceability of any LC Documents; the validity, genuineness, enforceability, collectability, value or sufficiency of any Collateral
or the perfection of any Lien therein; or the assets, liabilities, financial condition, results of operations, business, creditworthiness
or legal status of any Obligor.

 

2.3.3.                 
No Issuing Bank Indemnitee shall be liable to any Lender or other Person for any action taken or omitted to be taken in
connection with any Letter of Credit or LC Document except as a result of its gross negligence or willful misconduct. Issuing Bank
may refrain from taking any action with respect to a Letter of Credit until it receives written instructions (and in its discretion,
appropriate assurances) from the Lenders.

 

2.3.4.                 
Cash Collateral. Subject to Section 2.1.5, if at any time (a) an Event of Default exists, (b) the Revolver
Commitment Termination Date occurs, or (c) the Colonial Revolver Termination Date is scheduled to occur within 20 Business Days,
then Colonial shall, at Issuing Bank’s or Agent's request, Cash Collateralize all outstanding Letters of Credit. Colonial
shall, at Issuing Bank’s or Agent's request at any time, Cash Collateralize the Fronting Exposure of any Defaulting Lender.
If Colonial fails to provide any Cash Collateral as required hereunder, Lenders may (and shall upon direction of Agent) advance,
as Revolver Loans, the amount of Cash Collateral required (whether or not the Revolver Commitments have terminated, an Overadvance
exists or the conditions in Section 6 are satisfied).

 

2.3.5.                 
Resignation of Issuing Bank. Issuing Bank may resign at any time upon notice to Agent and Colonial, and any resignation
of Agent hereunder shall automatically constitute its concurrent resignation as Issuing Bank. From the effective date of such resignation,
Issuing Bank shall have no obligation to issue, amend, renew, extend or otherwise modify any Letter of Credit, but shall otherwise
continue to have all rights and obligations of an Issuing Bank hereunder relating to any Letter of Credit issued by it prior to
such date. Agent shall promptly appoint a replacement Issuing Bank and, as long as no Default or Event of Default exists, such
replacement shall be reasonably acceptable to Colonial.

 

SECTION 3       
INTEREST, FEES AND CHARGES

 

    	37

     

    

 

3.1.           
Interest.

 

3.1.1.                 
Rates and Payment of Interest.

 

(a)               
The Obligations shall bear interest (i) if a Base Rate Revolver Loan, at the Base Rate in effect from time to time, plus
the Applicable Margin; (ii) if a LIBOR Loan, at LIBOR for the applicable Interest Period, plus the Applicable Margin; and (iii)
if any other Obligation (including, to the extent permitted by law, interest not paid when due), at the Base Rate in effect from
time to time, plus the Applicable Margin for Base Rate Revolver Loans. If a Revolver Loan is repaid on the same day made, one day’s
interest shall accrue.

 

(b)              
During an Insolvency Proceeding with respect to any Obligor, or during any other Event of Default if Agent or Required Lenders
in their discretion so elect, Obligations shall bear interest at the Default Rate (whether before or after any judgment), payable
on demand.

 

(c)               
Interest shall accrue from the date a Loan is advanced or Obligation is incurred or payable, until paid in full by Borrowers,
and shall in no event be less than zero at any time. Interest accrued on the Revolver Loans shall be due and payable in arrears,
(i) on the first day of each month; (ii) on any date of prepayment, with respect to the principal amount being prepaid; and (iii)
on the Revolver Commitment Termination Date. Interest accrued on any other Obligations shall be due and payable as provided in
the Loan Documents or, if no payment date is specified, on demand.

 

3.1.2.                 
Application of LIBOR to Outstanding Revolver Loans.

 

(a)               
Each Borrower may on any Business Day, elect to convert any portion of the Base Rate Revolver Loans to, or to continue any
LIBOR Loan at the end of its Interest Period as, a LIBOR Loan. During any Default or Event of Default, Agent may (and shall at
the direction of Required Lenders) declare that no Revolver Loan may be made, converted or continued as a LIBOR Loan.

 

(b)              
To convert or continue Revolver Loans as LIBOR Loans, such Borrower shall give Agent a Notice of Conversion/Continuation,
no later than 11:00 a.m. at least 3 Business Days before the requested conversion or continuation date. Promptly after receiving
any such notice, Agent shall notify each Lender thereof. Each Notice of Conversion/Continuation shall be irrevocable, and shall
specify the amount of Revolver Loans to be converted or continued, the conversion or continuation date (which shall be a Business
Day), and the duration of the Interest Period (which shall be deemed to be 30 days if not specified). If, upon the expiration of
any Interest Period for any LIBOR Loan, such Borrower shall have failed to deliver a Notice of Conversion/Continuation, they shall
be deemed to have elected to convert such Revolver Loan into a Base Rate Revolver Loan. Agent does not warrant or accept responsibility
for, nor shall it have any liability with respect to, administration, submission or any other matter related to any rate described
in the definition of LIBOR.

 

3.1.3.                 
Interest Periods. In connection with the making, conversion or continuation of any LIBOR Loans, Colonial, ACM, or
TCM, as applicable, shall select an interest period (“Interest Period”) to apply, which interest period shall
be 30, 60, 90, 120 or 180 days (if available from all Lenders); provided, however, that:

 

(a)               
the Interest Period shall begin on the date the Revolver Loan is made or continued as, or converted into, a LIBOR Loan,
and shall expire on the numerically corresponding day in the calendar month at its end;

 

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(b)              
if any Interest Period begin on a day for which there is no corresponding day in the calendar month at its end or if such
corresponding day falls after the last Business Day of such month, then the Interest Period shall expire on the last Business Day
of such month; and if any Interest Period would otherwise expire on a day that is not a Business Day, the period shall expire on
the next Business Day; and

 

(c)               
no Interest Period shall extend beyond the Colonial Revolver Termination Date or ACM-TCM Revolver Termination Date, as applicable.

 

3.1.4.                 
Interest Rate Not Ascertainable. If, due to any circumstance affecting the London interbank market, Agent determines
that adequate and fair means do not exist for ascertaining LIBOR on any applicable date or that any Interest Period is not available
on the basis provided herein, then Agent shall immediately notify Borrowers of such determination. Until Agent notifies Borrowers
that such circumstance no longer exists, the obligation of Lenders to make affected LIBOR Loans shall be suspended and no further
Revolver Loans may be converted into or continued as LIBOR Loans.

 

3.2.           
Fees.

 

3.2.1.                 
LC Facility Fees. Colonial shall pay (a) to Agent, for the Pro Rata benefit of Lenders, a fee equal to the Applicable
Margin in effect for LIBOR Revolver Loans times the average daily Stated Amount of Letters of Credit, which fee shall be payable
monthly in arrears, on the first day of each month; (b) to Agent, for its own account, a fronting fee equal to 0.125% per annum
on the Stated Amount of each Letter of Credit, which fee shall be payable monthly in arrears, on the first day of each month; and
(c) to Issuing Bank, for its own account, all customary charges associated with the issuance, amending, negotiating, payment, processing,
transfer and administration of Letters of Credit, which charges shall be paid as and when incurred. During an Event of Default,
the fee payable under clause (a) shall be increased by 2% per annum.

 

3.2.2.                 
Colonial Unused Line Fee. Colonial shall pay to Agent, for the Pro Rata benefit of Lenders, a fee equal to the Unused
Line Fee Rate times the amount by which the Colonial Revolver Commitments exceed the average daily Colonial Revolver Usage during
any month. Such fee shall be payable in arrears, on the first day of each month and on the Revolver Commitment Termination Date.

 

3.2.3.                 
ACM-TCM Unused Line Fee. ACM and TCM shall pay to Agent, for the Pro Rata benefit of Lenders, a fee equal to the
Unused Line Fee Rate times the amount by which the ACM-TCM Revolver Commitments exceed the average daily balance of ACM-TCM Revolver
Loans during any month. Such fee shall be payable in arrears, on the first day of each month and on the Revolver Commitment Termination
Date.

 

3.2.4.                 
Fee Letters. Borrowers shall pay all fees set forth in any fee letter executed in connection with this Agreement.

 

3.3.           
Computation of Interest, Fees, Yield Protection. All interest, as well as fees and other charges calculated on
a per annum basis, shall be computed for the actual days elapsed, based on a year of 360 days. Each determination by Agent of any
interest, fees or interest rate hereunder shall be final, conclusive and binding for all purposes, absent manifest error. All fees
shall be fully earned when due and shall not be subject to rebate, refund or proration. All fees payable under Section 3.2
are compensation for services and are not, and shall not be deemed to be, interest or any other charge for the use, forbearance
or detention of money. A certificate as to amounts payable by Borrowers under Section 3.4, 3.6, 3.7, 3.9 or 5.9,
submitted to Borrowers by Agent or the affected Lender shall be final, conclusive and binding for all purposes, absent manifest
error, and Borrowers shall pay such amounts to the appropriate party within 10 days following receipt of the certificate.

 

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3.4.           
Reimbursement Obligations. Borrowers shall pay all Extraordinary Expenses promptly upon request. Borrowers shall
also reimburse Agent for all legal, accounting, appraisal, consulting, and other fees and expenses incurred by it in connection
with (a) negotiation and preparation of any Loan Documents, including any modification thereof; (b) administration of and actions
relating to any Collateral, Loan Documents and transactions contemplated thereby, including any actions taken to perfect or maintain
priority of Agent’s Liens on any Collateral, to maintain any insurance required hereunder or to verify Collateral; and (c)
subject to the limits of Section 10.1.1(b), any examination or appraisal with respect to any Obligor or Collateral by Agent’s
personnel or a third party. Borrowers acknowledge that counsel may provide Agent with a benefit (such as a discount, credit or
accommodation for other matters) based on counsel's overall relationship with Agent, including fees paid hereunder. If, for any
reason (including inaccurate reporting in any Borrower Materials), it is determined that a higher Applicable Margin should have
applied to a period than was actually applied, then the proper margin shall be applied retroactively and Borrowers shall immediately
pay to Agent, for the ratable benefit of Lenders, an amount equal to the difference between the amount of interest and fees that
would have accrued using the proper margin and the amount actually paid. All amounts payable by Borrowers under this Section shall
be due on demand.

 

3.5.           
Illegality. If any Lender determines that any Applicable Law has made it unlawful, or that any Governmental Authority
has asserted that it is unlawful, for any Lender to perform any of its obligations hereunder, to make, maintain, fund or charge
applicable interest or fees with respect to any Revolver Loan or Letter of Credit, or to determine or charge interest rates based
on LIBOR, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell,
or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to Agent, any obligation
of such Lender to perform such obligations, to make, maintain or fund the LIBOR Loan or participate in the Letter of Credit (or
to charge interest or fees with respect thereto), or to continue or convert Colonial Base Rate Revolver Loans or ACM-TCM Base Rate
Revolver Loans to LIBOR Loans shall be suspended until such Lender notifies Agent that the circumstances giving rise to such determination
no longer exist. Upon delivery of such notice, Colonial, ACM and/or TCM, as applicable, shall prepay the applicable Revolver Loan,
Cash Collateralize the applicable LC Obligations or, if applicable, convert LIBOR Loan(s) of such Lender to Colonial Base Rate
Revolver Loan(s) or ACM-TCM Base Rate Revolver Loan(s), as applicable, either on the last day of the Interest Period therefor,
if such Lender may lawfully continue to maintain the LIBOR Loan to such day, or immediately, if such Lender may not lawfully continue
to maintain the LIBOR Loan. Upon any such prepayment or conversion, Colonial, ACM, and/or TCM, as applicable, shall also pay accrued
interest on the amount so prepaid or converted.

 

3.6.           
Inability to Determine Rates. Agent will promptly notify Colonial, ACM, or TCM, as applicable, and each Lender
if, in connection with any LIBOR Loan or request for a LIBOR Loan, (a) Agent determines that (i) Dollar deposits are not being
offered to banks in the London interbank Eurodollar market for the applicable amount or Interest Period of such Revolver Loan,
or (ii) adequate and reasonable means do not exist for determining LIBOR for the requested Interest Period, or (b) Agent or Required
Lenders determine for any reason that LIBOR for the Interest Period does not adequately and fairly reflect the cost to Lenders
of funding such Revolver Loan. Thereafter, Lenders’ obligations to make or maintain affected LIBOR Loans and utilization
of the LIBOR component (if affected) in determining Base Rate shall be suspended until Agent (upon instruction by Required Lenders)
withdraws the notice. Upon receipt of such notice, Borrower may revoke any pending request for a LIBOR Loan or, failing that, will
be deemed to have submitted a request for a Colonial Base Rate Revolver Loan or ACM-TCM Base Rate Revolver Loan, as applicable.

 

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3.7.           
Increased Costs; Capital Adequacy.

 

3.7.1.                 
Increased Costs Generally. If any Change in Law shall:

 

(a)               
impose modify or deem applicable any reserve, liquidity, special deposit, compulsory loan, insurance charge or similar requirement
against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve
requirement reflected in calculating LIBOR) or Issuing Bank;

 

(b)              
subject any Recipient to Taxes (other than (i) Indemnified Taxes, (ii) Taxes described in clauses (b) through (d) of the
definition of Excluded Taxes, and (iii) Connection Income Taxes) with respect to any Revolver Loan, Letter of Credit, Revolver
Commitment or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

 

(c)               
impose on any Lender or Issuing Bank or the London interbank market any other condition, cost or expense affecting any Revolver
Loan, Loan Document, Letter of Credit or participation in LC Obligations;

 

and the result thereof shall be to increase the cost to a Lender
of making or maintaining any LIBOR Loan (or of maintaining its obligation to make any such Revolver Loan), or converting to or
continuing any interest option for a Revolver Loan, or to increase the cost to a Lender or Issuing Bank of participating in, issuing
or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to
reduce the amount of any sum received or receivable by a Lender or Issuing Bank hereunder (whether of principal, interest or any
other amount) then, upon request of such Lender or Issuing Bank, Borrower will pay to it such additional amount(s) as will compensate
it for the additional costs incurred or reduction suffered.

 

3.7.2.                 
Capital Requirements. If a Lender or Issuing Bank determines that a Change in Law affecting such Lender or Issuing
Bank or any Lending Office of such Lender or such Lender’s or Issuing Bank’s holding company, if any, regarding capital
or liquidity requirements (unrelated to the financial condition of such Lender or Issuing Bank) has or would have the effect of
reducing the rate of return on such Lender’s, Issuing Bank’s or holding company’s capital as a consequence of
this Agreement, or such Lender’s or Issuing Bank’s Revolver Commitments, Revolver Loans, Letters of Credit or participations
in LC Obligations, to a level below that which such Lender, Issuing Bank or holding company could have achieved but for such Change
in Law (taking into consideration its policies with respect to capital adequacy), then from time to time Colonial, ACM, or TCM,
as applicable, will pay to such Lender or Issuing Bank, as the case may be, such additional amounts as will compensate it or its
holding company for the reduction suffered.

 

3.7.3.                 
LIBOR Loan Reserves. If any Lender is required to maintain reserves with respect to liabilities or assets consisting
of or including Eurocurrency funds or deposits, Borrowers shall pay additional interest to such Lender on each LIBOR Loan equal
to the costs of such reserves allocated to the LIBOR Loan by the Lender (as determined by it in good faith, which determination
shall be conclusive). The additional interest shall be due and payable on each interest payment date for the LIBOR Loan; provided,
however, that if the Lender notifies Borrowers (with a copy to Agent) of the additional interest less than 10 days prior
to the interest payment date, then such interest shall be payable 10 days after Borrowers' receipt of the notice.

 

3.7.4.                 
Compensation. Failure or delay on the part of any Lender or Issuing Bank to demand compensation pursuant to this
Section shall not constitute a waiver of its right to demand such compensation, but Colonial, ACM, or TCM, as applicable, shall
not be required to compensate a Lender or Issuing Bank for any increased costs or reductions suffered more than 9 months (plus
any period of retroactivity of the Change in Law giving rise to the demand) prior to the date that the Lender or Issuing Bank notifies
Colonial, ACM, or TCM, as applicable, of the applicable Change in Law and of such Lender’s or Issuing Bank’s intention
to claim compensation therefor.

 

    	41

     

    

 

3.8.           
Mitigation. If any Lender gives a notice under Section 3.5 or requests compensation under Section 3.7,
or if any Borrower is required to pay any Indemnified Taxes or additional amounts with respect to a Lender under Section 5.9,
then at the request of Borrowers, such Lender shall use reasonable efforts to designate a different Lending Office or to assign
its rights and obligations hereunder to another of its offices, branches or Affiliates, if, in the judgment of such Lender, such
designation or assignment (a) would eliminate the need for such notice or reduce amounts payable or to be withheld in the future,
as applicable; and (b) would not subject the Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous
to it. Such Borrower shall pay all reasonable costs and expenses incurred by any Lender in connection with any such designation
or assignment.

 

3.9.           
Funding Losses. If for any reason (a) any Borrowing of, or conversion to or continuation of, a LIBOR Loan does
not occur on the date specified therefor in a Notice of Borrowing or Notice of Conversion/Continuation (whether or not withdrawn),
(b) any repayment or conversion of a LIBOR Loan occurs on a day other than the end of its Interest Period, or (c) any Borrower
fails to repay a LIBOR Loan when required hereunder, then such Borrower shall pay to Agent its customary administrative charge
and to each Lender all losses, expenses and fees arising from redeployment of funds or termination of match funding. For purposes
of calculating amounts payable under this Section, a Lender shall be deemed to have funded a LIBOR Loan by a matching deposit or
other borrowing in the London interbank market for a comparable amount and period, whether or not the LIBOR Loan was in fact so
funded.

 

3.10.       
Maximum Interest. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid
or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by Applicable
Law (“maximum rate”). If Agent or any Lender shall receive interest in an amount that exceeds the maximum rate, the
excess interest shall be applied to the principal of the Obligations or, if it exceeds such unpaid principal, refunded to Colonial,
ACM, and/or TCM, as applicable. In determining whether the interest contracted for, charged or received by Agent or a Lender exceeds
the maximum rate, such Person may, to the extent permitted by Applicable Law, (a) characterize any payment that is not principal
as an expense, fee or premium rather than interest; (b) exclude voluntary prepayments and the effects thereof; and (c) amortize,
prorate, allocate and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations
hereunder.

 

SECTION 4       
LOAN ADMINISTRATION

 

4.1.           
Manner of Borrowing and Funding Revolver Loans.

 

4.1.1.                 
Notice of Borrowing.

 

(a)               
To request Revolver Loans, Borrower shall give Agent a Notice of Borrowing by 11:00 a.m. (i) on the requested funding date,
in the case of Base Rate Revolver Loans, and (ii) at least 2 Business Days prior to the requested funding date, in the case of
LIBOR Loans. Notices received by Agent after such time shall be deemed received on the next Business Day. Each Notice of Borrowing
shall be irrevocable and shall specify (A) the Borrowing amount, (B) the requested funding date (which must be a Business Day),
(C) whether the Borrowing is to be made as a Base Rate Revolver Loan or LIBOR Loan, and (D) in the case of a LIBOR Loan, the applicable
Interest Period (which shall be deemed to be 30 days if not specified).

 

    	42

     

    

 

(b)              
Unless payment is otherwise made by Borrowers, the becoming due of any Obligation (whether principal, interest, fees or
other charges, including Extraordinary Expenses, LC Obligations, Cash Collateral and Secured Bank Product Obligations) shall be
deemed to be a request for a Base Rate Revolver Loan on the due date in the amount due and the Revolver Loan proceeds shall be
disbursed as direct payment of such Obligation. In addition, Agent may, at its option, charge such amount against any operating,
investment or other account of a Borrower maintained with Agent or any of its Affiliates.

 

(c)               
If a Borrower maintains a disbursement account with Agent or any of its Affiliates, then presentation for payment in the
account of a Payment Item when there are insufficient funds to cover it shall be deemed to be a request for a Base Rate Revolver
Loan on the date of such presentation date, in the amount of the Payment Item. Proceeds of the Revolver Loan may be disbursed directly
to the account.

 

4.1.2.                 
Fundings by Lenders. Except for Swingline Loans, Agent shall endeavor to notify Lenders of each Notice of Borrowing
(or deemed request for a Borrowing) by 12:00 noon on the proposed funding date for a Base Rate Revolver Loan or by 3:00 p.m. two
Business Days before a proposed funding of a LIBOR Loan. Each Lender shall fund its Pro Rata share of a Borrowing in immediately
available funds not later than 2:00 p.m. on the requested funding date, unless Agent's notice is received after the times provided
above, in which case Lender shall fund by 11:00 a.m. on the next Business Day. Subject to its receipt of such amounts from Lenders,
Agent shall disburse the Borrowing proceeds in a manner directed by the Borrower and acceptable to Agent. Unless Agent receives
(in sufficient time to act) written notice from a Lender that it will not fund its share of a Borrowing, Agent may assume that
such Lender has deposited or promptly will deposit its share with Agent, and Agent may disburse a corresponding amount to such
Borrower. If a Lender's share of a Borrowing or of a settlement under Section 4.1.3(b) is not received by Agent, then the
applicable Borrower agrees to repay to Agent on demand the amount of such share, together with interest thereon from the
date disbursed until repaid, at the rate applicable to the Borrowing. A Lender or Issuing Bank may fulfill its obligations under
Loan Documents through one or more Lending Offices, and this shall not affect any obligation of Obligors under the Loan Documents
or with respect to any Obligations.

 

4.1.3.                 
Swingline Loans; Settlement.

 

(a)               
To fulfill any request for a Base Rate Revolver Loan hereunder, Agent may in its discretion advance Colonial Swingline Loans
to Colonial, up to an aggregate outstanding amount of $5,000,000. Each Colonial Swingline Loan shall constitute a Colonial Revolver
Loan for all purposes, except that payments thereon shall be made to Agent for its own account until Lenders have funded their
participations therein as provided below.

 

(b)              
To fulfill any request for a Base Rate Revolver Loan hereunder, Agent may in its discretion advance ACM-TCM Swingline Loans
to ACM and TCM, up to an aggregate outstanding amount of $1,000,000. Each ACM-TCM Swingline Loan shall constitute an ACM-TCM Revolver
Loan for all purposes, except that payments thereon shall be made to Agent for its own account until Lenders have funded their
participations therein as provided below.

 

(c)               
To facilitate administration of the Revolver Loans, Lenders and Agent agree (which agreement is solely among them, and not
for the benefit of or enforceable by Parent or by any Borrower) that settlement among them with respect to Swingline Loans and
other Revolver Loans may take place on a date determined from time to time by Agent, which shall occur at least once each week,
(unless the settlement amount is de minimis), on a Pro Rata basis in accordance with the Settlement Report delivered by Agent to
Lenders. Between settlement dates, Agent may in its discretion apply payments on Revolver Loans to Swingline Loans, regardless
of any designation by the applicable Borrower or anything herein to the contrary. Each Lender hereby purchases, without recourse
or warranty, an undivided Pro Rata participation in all Swingline Loans outstanding from time to time until settled. If a Swingline
Loan cannot be settled among Lenders, whether due to an Obligor's Insolvency Proceeding or for any other reason, each Lender shall
pay the amount of its participation in each unpaid Swingline Loan to Agent, in immediately available funds, within one Business
Day after Agent's request therefor. Lenders' obligations to make settlements and to fund participations are absolute, irrevocable
and unconditional, without offset, counterclaim or other defense, and whether or not the Revolver Commitments have terminated,
an Overadvance exists or the conditions in Section 6 are satisfied.

 

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4.1.4.                 
Notices. Each Borrower authorizes Agent and Lenders to extend, convert or continue Revolver Loans, effect selections
of interest rates, and transfer funds to or on behalf of such Borrower based on telephonic or electronic instructions. Such Borrower
shall confirm each such request by prompt delivery to Agent of a Notice of Borrowing or Notice of Conversion/Continuation, as applicable.
Neither Agent nor any Lender shall have any liability for any loss suffered by a Borrower as a result of Agent or any Lender acting
upon its understanding of telephonic or electronic instructions from a person believed in good faith to be authorized to give such
instructions on a Borrower’s behalf.

 

4.2.           
Defaulting Lender. Notwithstanding anything herein to the contrary,

 

4.2.1.                 
Reallocation of Pro Rata Shares; Amendments. For purposes of determining Lenders’ obligations or rights to
fund, participate in or receive collections with respect to Revolver Loans and Letters of Credit (including existing Swingline
Loans, Protective Advances and LC Obligations), Agent may in its discretion reallocate Pro Rata shares by excluding a Defaulting
Lender’s Revolver Commitments and Revolver Loans from the calculation of shares. A Defaulting Lender shall have no right
to vote on any amendment, waiver or other modification of a Loan Document, except as provided in Section 14.1.1(c).

 

4.2.2.                 
Payments; Fees. Agent may, in its discretion, receive and retain any amounts payable to a Defaulting Lender under
the Loan Documents, and a Defaulting Lender shall be deemed to have assigned to Agent such amounts until all Obligations owing
to Agent, non-Defaulting Lenders and other Secured Parties have been paid in full. Agent may use such amounts to cover the Defaulting
Lender's defaulted obligations, to Cash Collateralize such Lender’s Fronting Exposure, to readvance the amounts to Borrowers
or to repay Obligations. A Lender shall not be entitled to receive any fees accruing hereunder while it is a Defaulting Lender
and its unfunded Commitment shall be disregarded for purposes of calculating the unused line fee under Sections 3.2.2 and
3.2.3. If any LC Obligations owing to a Defaulted Lender are reallocated to other Lenders, fees attributable to such LC
Obligations under Section 3.2.1 shall be paid to such Lenders. Agent shall be paid all fees attributable to LC Obligations
that are not reallocated.

 

4.2.3.                 
Status; Cure. Agent may determine in its discretion that a Lender constitutes a Defaulting Lender and the effective
date of such status shall be conclusive and binding on all parties, absent manifest error. Borrowers, Agent and Issuing Bank may
agree in writing that a Lender has ceased to be a Defaulting Lender, whereupon Pro Rata shares shall be reallocated without exclusion
of the reinstated Lender’s Revolver Commitments and Revolver Loans, and all outstanding Revolver Loans, LC Obligations and
other exposures under the Revolver Commitments shall be reallocated among Lenders and settled by Agent (with appropriate payments
by the reinstated Lender, including its payment of breakage costs for reallocated LIBOR Loans) in accordance with the readjusted
Pro Rata shares. Unless expressly agreed by Borrowers, Agent and Issuing Bank, or as expressly provided herein with respect to
Bail-In Actions and related matters, no reallocation of Revolver Commitments and Revolver Loans to non-Defaulting Lenders or reinstatement
of a Defaulting Lender shall constitute a waiver or release of claims against such Lender. The failure of any Lender to fund a
Revolver Loan, to make a payment in respect of LC Obligations or otherwise to perform obligations hereunder shall not relieve any
other Lender of its obligations under any Loan Document. No Lender shall be responsible for default by another Lender.

 

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4.3.           
Number and Amount of LIBOR Loans; Determination of Rate. Each Borrowing of LIBOR Loans when made shall be in
a minimum amount of $1,000,000, plus an increment of $500,000 in excess thereof. No more than 10 Borrowings of LIBOR Loans may
be outstanding at any time, and all LIBOR Loans having the same length and beginning date of their Interest Periods shall be aggregated
together and considered one Borrowing for this purpose. Upon determining LIBOR for any Interest Period requested by any Borrower,
Agent shall promptly notify such Borrower thereof by telephone or electronically and, if requested by such Borrower, shall confirm
any telephonic notice in writing.

 

4.4.           
[RESERVED].

 

4.5.           
[RESERVED].

 

4.6.           
Effect of Termination. On the effective date of the termination of all Revolver Commitments, the Obligations
shall be immediately due and payable, and each Secured Bank Product Provider may terminate its Bank Products. Until Full Payment
of the Obligations, all undertakings of Borrowers contained in the Loan Documents shall continue, and Agent shall retain its Liens
in the Collateral and all of its rights and remedies under the Loan Documents. Agent shall not be required to terminate its Liens
unless it receives Cash Collateral or a written agreement, in each case satisfactory to it, protecting Agent and Lenders from dishonor
or return of any Payment Item previously applied to the Obligations. Sections 2.3, 3.4, 3.6, 3.7, 3.9, 5.5, 5.9, 5.10, 12, 14.2,
this Section, and each indemnity or waiver given by an Obligor or Lender in any Loan Document, shall survive Full Payment of the
Obligations.

 

SECTION 5       
PAYMENTS

 

5.1.           
General Payment Provisions. All payments of Obligations shall be made in Dollars, without offset, counterclaim
or defense of any kind, free and clear of (and without deduction for) any Taxes, and in immediately available funds, not later
than 12:00 noon on the due date. Any payment after such time shall be deemed made on the next Business Day. Any payment of a LIBOR
Loan prior to the end of its Interest Period shall be accompanied by all amounts due under Section 3.9. Borrowers agree
that Agent shall have the continuing, exclusive right to apply and reapply payments and proceeds of Collateral against the Obligations,
in such manner as Agent deems advisable, but whenever possible, any prepayment of Loans shall be applied first to Base Rate Revolver
Loans and then to LIBOR Revolver Loans.

 

5.2.           
Repayment of Revolver Loans. Colonial Revolver Loans shall be due and payable in full on the Colonial Revolver
Termination Date, unless payment is sooner required hereunder. ACM-TCM Revolver Loans shall be due and payable in full on the ACM-TCM
Revolver Termination Date, unless payment is sooner required hereunder. Revolver Loans may be prepaid from time to time, without
penalty or premium. Subject to Sections 2.1.5 and 2.2.5, respectively, (a) if a Colonial Overadvance exists at any
time, Colonial shall immediately repay the outstanding Colonial Revolver Loans in an amount sufficient to reduce the Colonial Revolver
Usage to the Colonial Borrowing Base and (b) if a ACM-TCM Overadvance exists, ACM and TCM shall immediately repay the outstanding
ACM-TCM Revolver Loans in an amount sufficient to reduce the principal balance of ACM-TCM Revolver Loans to the ACM-TCM Borrowing
Base. If any Asset Disposition includes the disposition of Contracts or Inventory, then Net Proceeds equal to the greater of (x) the
net book value of such Contracts or Inventory, or (y) the reduction in the Colonial Borrowing Base or ACM-TCM Borrowing Base,
as applicable, upon giving effect to such disposition, shall be applied to the Colonial Revolver Loans or ACM-TCM Revolver Loans,
as applicable in accordance with Sections 5.6 and 5.7.

 

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5.3.           
[RESERVED].

 

5.4.           
Payment of Other Obligations. Obligations other than Revolver Loans, including LC Obligations and Extraordinary
Expenses, shall be paid by Borrowers as provided in the Loan Documents or, if no payment date is specified, on demand.

 

5.5.           
Marshaling; Payments Set Aside. None of Agent or Lenders shall be under any obligation to marshal any assets
in favor of any Obligor or against any Obligations. If any payment by or on behalf of any Borrower is made to Agent, Issuing Bank
or any Lender, or if Agent, Issuing Bank or any Lender exercises a right of setoff, and any of such payment or setoff is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into
by Agent, Issuing Bank or a Lender in its discretion) to be repaid to a trustee, receiver or any other Person, then the Obligation
originally intended to be satisfied, and all Liens, rights and remedies relating thereto, shall be revived and continued in full
force and effect as if such payment or setoff had not occurred.

 

5.6.           
Application and Allocation of Payments.

 

5.6.1.                 
Application. Payments made by Borrowers hereunder shall be applied (a) first, as specifically required hereby;
(b) second, to Obligations then due and owing; and (c) third, to other Obligations specified by Borrowers.

 

5.6.2.                 
Post-Default Allocation. Notwithstanding anything in any Loan Document to the contrary, during an Event of Default
under Section 11.1(j), or during any other Event of Default at the discretion of Agent or Required Lenders, monies to be
applied to the Obligations, whether arising from payments by Obligors, realization on Collateral, setoff or otherwise, shall be
allocated as follows:

 

(a)               
first, to all fees, indemnification, costs and expenses, including
Extraordinary Expenses, owing to Agent and Lenders;

 

(b)              
second, to all other amounts owing to Agent, including Swingline
Loans, Protective Advances, and Revolver Loans and participations that a Defaulting Lender has failed to settle or fund;

 

(c)               
third, to all amounts owing to Issuing Bank on LC Obligations;

 

(d)              
fourth, to all Obligations (other than Secured Bank Product
Obligations) constituting fees, indemnification, costs or expenses owing to Lenders;

 

(e)               
fifth, to all Obligations (other than Secured Bank Product
Obligations) constituting interest;

 

(f)               
sixth, to Cash Collateralize all LC Obligations;

 

    	46

     

    

 

(g)               
seventh, to Revolver Loans, and to Secured Bank Product Obligations
arising under Hedge Agreements (including Cash Collateralization thereof) up to the amount of Reserves existing therefor;

 

(h)              
EIGHTH, to all other Secured Bank Product Obligations; and

 

(i)                
last, to all remaining Obligations.

 

Amounts shall be applied to payment of each category of Obligations
only after Full Payment of amounts payable from time to time under all preceding categories. If amounts are insufficient to satisfy
a category, they shall be paid ratably among outstanding Obligations in the category. Monies and proceeds obtained from an Obligor
shall not be applied to its Excluded Swap Obligations, but appropriate adjustments shall be made with respect to amounts obtained
from other Obligors to preserve the allocations in each category. Agent shall have no obligation to calculate the amount of any
Secured Bank Product Obligation and may request a reasonably detailed calculation thereof from a Secured Bank Product Provider.
If the provider fails to deliver the calculation within five days following request, Agent may assume the amount is zero. The allocations
set forth in this Section are solely to determine the rights and priorities among Secured Parties, and may be changed by agreement
of the affected Secured Parties, without the consent of any Obligor. This Section is not for the benefit of or enforceable by Parent,
any Obligor, and each Borrower irrevocably waives the right to direct the application of any payments or Collateral proceeds subject
to this Section.

 

5.6.3.                 
Erroneous Application. Agent shall not be liable for any application of amounts made by it in good faith and, if
any such application is subsequently determined to have been made in error, the sole recourse of any Lender or other Person to
which such amount should have been paid shall be to recover the amount from the Person that actually received it (and, if such
amount was received by a Secured Party, the Secured Party agrees to return it).

 

5.7.           
Dominion Account.

 

5.7.1.                 
During a Trigger Period, the ledger balance in the main Colonial Dominion Account as of the end of a Business Day shall
be applied to the Colonial Obligations at the beginning of the next Business Day. Any resulting credit balance shall not accrue
interest in favor of Colonial and shall be made available to Colonial as long as no Default or Event of Default exists.

 

5.7.2.                 
During a Trigger Period, the ledger balance in the main ACM-TCM Dominion Account as of the end of a Business Day shall be
applied to the ACM-TCM Obligations at the beginning of the next Business Day. Any resulting credit balance shall not accrue interest
in favor of ACM or TCM and shall be made available to ACM or TCM as long as no Default or Event of Default exists.

 

5.8.           
Loan Account; Account Stated.

 

5.8.1.                 
Loan Account. Agent shall maintain, in accordance with its customary practices, loan account(s) (“Colonial
Loan Account” and “ACM-TCM Loan Account”, collectively the “Loan Accounts”) evidencing
the Debt of each Borrower hereunder. Any failure of Agent to record anything in the Loan Accounts, or any error in doing so, shall
not limit or otherwise affect the obligation of any Borrower to pay any amount owing hereunder.

 

5.8.2.                 
Entries Binding. Entries made in the Loan Accounts shall constitute presumptive evidence of the information contained
therein. If any information contained in the Loan Accounts is provided to or inspected by any Person, then the information shall
be conclusive and binding on such Person for all purposes absent manifest error, except to the extent such Person notifies Agent
in writing within 30 days after receipt or inspection that specific information is subject to dispute.

 

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5.9.           
Taxes.

 

5.9.1.                 
Payments Free of Taxes; Obligation to Withhold; Tax Payment

 

(a)       All
payments of Obligations by Obligors shall be made without deduction or withholding for any Taxes, except as required by Applicable
Law. If Applicable Law (as determined by Agent in its discretion) requires the deduction or withholding of any Tax from any such
payment by Agent or an Obligor, then Agent or such Obligor shall be entitled to make such deduction or withholding based on information
and documentation provided pursuant to Section 5.10.

 

(b)       If
Agent or any Obligor is required by the Code to withhold or deduct Taxes, including backup withholding and withholding taxes, from
any payment, then (i) Agent shall pay the full amount that it determines is to be withheld or deducted to the relevant Governmental
Authority pursuant to the Code, and (ii) to the extent the withholding or deduction is made on account of Indemnified Taxes, the
sum payable by the applicable Obligor shall be increased as necessary so that the Recipient receives an amount equal to the sum
it would have received had no such withholding or deduction been made.

 

(c)       If
Agent or any Obligor is required by any Applicable Law other than the Code to withhold or deduct Taxes from any payment, then (i)
Agent or such Obligor, to the extent required by Applicable Law, shall timely pay the full amount to be withheld or deducted to
the relevant Governmental Authority, and (ii) to the extent the withholding or deduction is made on account of Indemnified Taxes,
the sum payable by the applicable Obligor shall be increased as necessary so that the Recipient receives an amount equal to the
sum it would have received had no such withholding or deduction been made.

 

5.9.2.                 
Payment of Other Taxes. Without limiting the foregoing, Borrowers shall timely pay to the relevant Governmental Authority
in accordance with Applicable Law, or at Agent's option, timely reimburse Agent for payment of, any Other Taxes.

 

5.9.3.                 
Tax Indemnification.

 

(a)       Each
Borrower shall indemnify and hold harmless, on a joint and several basis, each Recipient against any Indemnified Taxes (including
those imposed or asserted on or attributable to amounts payable under this Section) payable or paid by a Recipient or required
to be withheld or deducted from a payment to a Recipient, and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. Each Borrower shall indemnify and hold harmless Agent against any amount that a Lender or Issuing Bank fails for any
reason to pay indefeasibly to Agent as required pursuant to this Section. Each Borrower shall make payment within 10 days after
demand for any amount or liability payable under this Section. A certificate as to the amount of such payment or liability delivered
to Borrowers by a Lender or Issuing Bank (with a copy to Agent), or by Agent on its own behalf or on behalf of any Recipient, shall
be conclusive absent manifest error.

 

(b)       Each
Lender and Issuing Bank shall indemnify and hold harmless, on a several basis, (i) Agent against any Indemnified Taxes attributable
to such Lender or Issuing Bank (but only to the extent Borrowers have not already paid or reimbursed Agent therefor and without
limiting Borrowers' obligation to do so), (ii) Agent and Obligors, as applicable, against any Taxes attributable to such Lender's
failure to maintain a Participant register as required hereunder, and (iii) Agent and Obligors, as applicable, against any Excluded
Taxes attributable to such Lender or Issuing Bank, in each case, that are payable or paid by Agent or an Obligor in connection
with any Obligations, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes
were correctly or legally imposed or asserted by the relevant Governmental Authority. Each Lender and Issuing Bank shall make payment
within 10 days after demand for any amount or liability payable under this Section. A certificate as to the amount of such payment
or liability delivered to any Lender or Issuing Bank by Agent shall be conclusive absent manifest error.

 

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5.9.4.                 
Evidence of Payments. As soon as practicable after payment by an Obligor of any Taxes pursuant to this Section, Obligors
shall deliver to Agent the original or a certified copy of a receipt issued by the appropriate Governmental Authority evidencing
the payment, a copy of any return required by Applicable Law to report the payment or other evidence of payment reasonably satisfactory
to Agent.

 

5.9.5.                 
Treatment of Certain Refunds. Unless required by Applicable Law, at no time shall Agent have any obligation to file
for or otherwise pursue on behalf of a Lender or Issuing Bank, nor have any obligation to pay to any Lender or Issuing Bank, any
refund of Taxes withheld or deducted from funds paid for the account of a Lender or Issuing Bank. If a Recipient determines in
its discretion that it has received a refund of Taxes that were indemnified by Borrowers or with respect to which a Borrower paid
additional amounts pursuant to this Section, it shall pay the amount of such refund to Borrowers (but only to the extent of indemnity
payments or additional amounts actually paid by Borrowers with respect to the Taxes giving rise to the refund), net of all out-of-pocket
expenses (including Taxes) incurred by such Recipient and without interest (other than interest paid by the relevant Governmental
Authority with respect to such refund). Borrowers shall, upon request by the Recipient, repay to the Recipient such amount paid
over to Borrowers (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) if the Recipient
is required to repay such refund to the Governmental Authority. Notwithstanding anything herein to the contrary, no Recipient shall
be required to pay any amount to Borrowers if such payment would place it in a less favorable net after-Tax position than it would
have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise
imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. In no event shall
Agent or any Recipient be required to make its tax returns (or any other information relating to its taxes that it deems confidential)
available to any Obligor or other Person.

 

5.9.6.                 
Survival. Each party's obligations under Sections 5.9 and 5.10 shall survive the resignation or replacement
of Agent or any assignment of rights by or replacement of a Lender or Issuing Bank, the termination of the Revolver Commitments,
and the repayment, satisfaction, discharge or Full Payment of any Obligations.

 

5.10.       
Lender Tax Information.

 

5.10.1.             
Status of Lenders. Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect
to payments of Obligations shall deliver to Borrowers and Agent properly completed and executed documentation reasonably requested
by a Borrower or Agent as will permit such payments to be made without or at a reduced rate of withholding. In addition, any Lender,
if reasonably requested by a Borrower or Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably
requested by a Borrower or Agent to enable them to determine whether such Lender is subject to backup withholding or information
reporting requirements. Notwithstanding the foregoing, such documentation (other than documentation described in Sections 5.10.2(a),
(b) and (d)) shall not be required if a Lender reasonably believes delivery of the documentation would subject it to
any material unreimbursed cost or expense or would materially prejudice its legal or commercial position.

 

    	49

     

    

 

5.10.2.             
Documentation. Without limiting the foregoing, if any Borrower is a U.S. Person,

 

(a)               
Any Lender that is a U.S. Person shall deliver to Borrowers and Agent on or prior to the date on which such Lender becomes
a Lender hereunder (and from time to time thereafter upon reasonable request of Borrowers or Agent), executed copies of IRS Form
W-9, certifying that such Lender is exempt from U.S. federal backup withholding Tax;

 

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

 

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

 

(ii)              
executed copies of IRS Form W-8ECI;

 

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

 

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

 

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

 

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(d)              
if payment of an Obligation to a Lender would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender
were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code), such Lender shall deliver to Borrowers and Agent, at the time(s) prescribed by law and otherwise upon reasonable
request, such documentation prescribed by Applicable Law (including Section 1471(b)(3)(C)(i) of the Code) and such additional documentation
as may be appropriate for Borrowers or Agent to comply with their obligations under FATCA and to determine that such Lender has
complied with its obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes
of this clause (d), “FATCA” shall include any amendments made to FATCA after the date hereof.

 

5.10.3.             
Redelivery of Documentation. If any form or certification previously delivered by a Lender pursuant to this Section
expires or becomes obsolete or inaccurate in any respect, such Lender shall promptly update the form or certification or notify
Borrowers and Agent in writing of its inability to do so.

 

5.11.       
Nature and Extent of Each Borrower’s Liability.

 

5.11.1.             
Joint and Several Liability for ACM and TCM. Each of ACM and TCM agrees that it is jointly and severally liable for,
and absolutely and unconditionally guarantees to Agent and Lenders the prompt payment and performance of, all ACM-TCM Obligations,
except its Excluded Swap Obligations. Each of ACM and TCM agrees that its guaranty obligations hereunder constitute a continuing
guaranty of payment and not of collection, that such obligations shall not be discharged until Full Payment of the ACM-TCM Obligations,
and that such obligations are absolute and unconditional, irrespective of (a) the genuineness, validity, regularity, enforceability,
subordination or any future modification of, or change in, any ACM-TCM Obligations or Loan Document, or any other document, instrument
or agreement to which any Obligor is or may become a party or be bound; (b) the absence of any action to enforce this Agreement
(including this Section) or any other Loan Document, or any waiver, consent or indulgence of any kind by Agent or any Lender with
respect thereto; (c) the existence, value or condition of, or failure to perfect a Lien or to preserve rights against, any security
or guaranty for the ACM-TCM Obligations or any action, or the absence of any action, by Agent or any Lender in respect thereof
(including the release of any security or guaranty); (d) the insolvency of any Obligor; (e) any election by Agent or any Lender
in an Insolvency Proceeding for the application of Section 1111(b)(2) of the Bankruptcy Code; (f) any borrowing or grant of a Lien
by any other Borrower, as debtor-in-possession under Section 364 of the Bankruptcy Code or otherwise; (g) the disallowance of any
claims of Agent or any Lender against any Obligor for the repayment of any ACM-TCM Obligations under Section 502 of the Bankruptcy
Code or otherwise; or (h) any other action or circumstances that might otherwise constitute a legal or equitable discharge or defense
of a surety or guarantor, except Full Payment of all ACM-TCM Obligations.

 

5.11.2.             
Waivers.

 

(a)               
Each of ACM and TCM expressly waives all rights that it may have now or in the future under any statute, at common law,
in equity or otherwise, to compel Agent or Lenders to marshal assets or to proceed against any Obligor, other Person or security
for the payment or performance of any Obligations before, or as a condition to, proceeding against such Borrower. Each of ACM and
TCM waives all defenses available to a surety, guarantor or accommodation co-obligor other than Full Payment of all Obligations
and waives, to the maximum extent permitted by law, any right to revoke any guaranty of Obligations as long as it is a Borrower.
It is agreed among each of ACM and TCM, Agent and Lenders that the provisions of this Section 5.11 are of the essence of
the transaction contemplated by the Loan Documents and that, but for such provisions, Agent and Lenders would decline to make Loans
and issue Letters of Credit. Each of ACM and TCM acknowledges that its guaranty pursuant to this Section is necessary to the conduct
and promotion of its business, and can be expected to benefit such business.

 

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(b)              
Agent and Lenders may, in their discretion, pursue such rights and remedies as they deem appropriate, including realization
upon Collateral or any Real Estate by judicial foreclosure or nonjudicial sale or enforcement, without affecting any rights and
remedies under this Section 5.11. If, in taking any action in connection with the exercise of any rights or remedies, Agent
or any Lender shall forfeit any other rights or remedies, including the right to enter a deficiency judgment against any Borrower
or other Person, whether because of any Applicable Laws pertaining to “election of remedies” or otherwise, each of
ACM and TCM consents to such action and waives any claim based upon it, even if the action may result in loss of any rights of
subrogation that any Borrower might otherwise have had. Any election of remedies that results in denial or impairment of the right
of Agent or any Lender to seek a deficiency judgment against any Borrower shall not impair any other Borrower’s obligation
to pay the full amount of the Obligations. Each of ACM and TCM waives all rights and defenses arising out of an election of remedies,
such as nonjudicial foreclosure with respect to any security for Obligations, even though that election of remedies destroys such
Borrower’s rights of subrogation against any other Person. Agent may bid Obligations, in whole or part, at any foreclosure,
trustee or other sale, including any private sale, and the amount of such bid need not be paid by Agent but shall be credited against
the Obligations. The amount of the successful bid at any such sale, whether Agent or any other Person is the successful bidder,
shall be conclusively deemed to be the fair market value of the Collateral, and the difference between such bid amount and the
remaining balance of the Obligations shall be conclusively deemed to be the amount of the Obligations guaranteed under this Section
5.11, notwithstanding that any present or future law or court decision may have the effect of reducing the amount of any deficiency
claim to which Agent or any Lender might otherwise be entitled but for such bidding at any such sale.

 

5.11.3.             
Extent of Liability; Contribution.

 

(a)               
Notwithstanding anything herein to the contrary, each of ACM and TCM’s liability under this Section 5.11 shall
not exceed the greater of (i) all amounts for which such Borrower is primarily liable, as described in clause (c)below, and (ii)
such Borrower’s Allocable Amount.

 

(b)              
If any Borrower makes a payment under this Section 5.11 of any Obligations (other than amounts for which such Borrower
is primarily liable) (a “Guarantor Payment”) that, taking into account all other Guarantor Payments previously
or concurrently made by any other Borrower, exceeds the amount that such Borrower would otherwise have paid if each Borrower had
paid the aggregate Obligations satisfied by such Guarantor Payments in the same proportion that such Borrower’s Allocable
Amount bore to the total Allocable Amounts of all Borrowers, then such Borrower shall be entitled to receive contribution and indemnification
payments from, and to be reimbursed by, each other Borrower for the amount of such excess, ratably based on their respective Allocable
Amounts in effect immediately prior to such Guarantor Payment. The “Allocable Amount” for any Borrower shall
be the maximum amount that could then be recovered from such Borrower under this Section 5.11 without rendering such payment
voidable under Section 548 of the Bankruptcy Code or under any applicable state fraudulent transfer or conveyance act, or similar
statute or common law.

 

(c)               
Section 5.11.3(a) shall not limit the liability of any Borrower to pay or guarantee Revolver Loans made directly
or indirectly to it (including Revolver Loans advanced hereunder to any other Person and then re-loaned or otherwise transferred
to, or for the benefit of, such Borrower), LC Obligations relating to Letters of Credit issued to support its business, Secured
Bank Product Obligations incurred to support its business, and all accrued interest, fees, expenses and other related Obligations
with respect thereto, for which such Borrower shall be primarily liable for all purposes hereunder. Agent and Lenders shall have
the right, at any time in their discretion, to condition Loans and Letters of Credit upon a separate calculation of borrowing availability
for each Borrower and to restrict the disbursement and use of Revolver Loans and Letters of Credit to a Borrower based on that
calculation.

 

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(d)       Each
Obligor that is a Qualified ECP when its guaranty of or grant of Lien as security for a Swap Obligation becomes effective hereby
jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide funds or other support to each Specified
Obligor with respect to such Swap Obligation as may be needed by such Specified Obligor from time to time to honor all of its obligations
under the Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability
that can be hereby incurred without rendering such Qualified ECP's obligations and undertakings under this Section 5.11
voidable under any applicable fraudulent transfer or conveyance act). The obligations and undertakings of each Qualified ECP under
this Section shall remain in full force and effect until Full Payment of all Obligations. Each Obligor intends this Section to
constitute, and this Section shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support or
other agreement” for the benefit of, each Obligor for all purposes of the Commodity Exchange Act.

 

5.11.4.             
Joint Enterprise. Each of ACM and TCM has requested that Agent and Lenders make ACM-TCM Revolver Commitments available
to ACM and TCM on a combined basis, in order to finance ACM’s and TCM’s business most efficiently and economically.
ACM’s and TCM’s business is a mutual and collective enterprise, and the successful operation of each such Borrower
is dependent upon the successful performance of the integrated group. ACM and TCM believe that consolidation of their credit facility
will enhance the borrowing power of each such Borrower and ease administration of the facility, all to their mutual advantage.
ACM and TCM acknowledge that Agent’s and Lenders’ willingness to extend credit and to administer the Collateral on
a combined basis hereunder is done solely as an accommodation to ACM and TCM and at ACM’s and TCM’s request.

 

5.11.5.             
Subordination. Each Borrower hereby subordinates any claims, including any rights at law or in equity to payment,
subrogation, reimbursement, exoneration, contribution, indemnification or set off, that it may have at any time against any other
Obligor, howsoever arising, to the Full Payment of its Obligations.

 

5.11.6.             
Cross-Guaranties. Each of Colonial, on one hand, and ACM and TCM, on the other hand, agrees it shall execute and
provide to Agent a Guaranty whereby such Borrower(s) guarantee all Obligations of the other Borrower(s) and all agreements of the
other Borrower(s) under the Loan Documents.

 

SECTION 6       
CONDITIONS PRECEDENT/POST CLOSING DELIVERABLES

 

6.1.           
Conditions Precedent to Initial Revolver Loans. In addition to the conditions set forth in Section 6.2,
Lenders shall not be required to fund any requested Revolver Loan, issue any Letter of Credit, or otherwise extend credit to Borrower
hereunder, until the date (“Closing Date”) that each of the following conditions has been satisfied:

 

(a)               
Colonial Revolver Notes and ACM-TCM Revolver Notes, as applicable, shall have been executed by applicable Borrowers and
delivered to each Lender that requests issuance of a Revolver Note. Each Loan Document shall have been duly executed and delivered
to Agent by each of the signatories thereto, and each Obligor shall be in compliance with all terms thereof.

 

    	53

     

    

 

(b)              
Agent shall have received acknowledgments of all filings or recordations necessary to perfect its Liens in the Collateral,
as well as UCC and Lien searches and other evidence satisfactory to Agent that such Liens are the only Liens upon the Collateral,
except Permitted Liens.

 

(c)               
Agent shall have received duly executed agreements establishing each Colonial Dominion Account, ACM-TCM Dominion Account
and related lockbox, in form and substance, and with financial institutions, satisfactory to Agent.

 

(d)              
Agent shall have received certificates, in form and substance satisfactory to it, from a knowledgeable Senior Officer of
each Borrower certifying that, after giving effect to the initial Revolver Loans and transactions hereunder, (i) such Borrower
is Solvent; (ii) no Default or Event of Default exists; (iii) the representations and warranties set forth in Section 9
are true and correct; and (iv) such Borrower has complied with all agreements and conditions to be satisfied by it under the Loan
Documents.

 

(e)               
Agent shall have received a certificate of a duly authorized officer of each Obligor, certifying (i) that attached copies
of such Obligor’s Organic Documents are true and complete, and in full force and effect, without amendment except as shown;
(ii) that an attached copy of resolutions authorizing execution and delivery of the Loan Documents is true and complete, and that
such resolutions are in full force and effect, were duly adopted, have not been amended, modified or revoked, and constitute all
resolutions adopted with respect to this credit facility; and (iii) to the title, name and signature of each Person authorized
to sign the Loan Documents. Agent may conclusively rely on this certificate until it is otherwise notified by the applicable Obligor
in writing.

 

(f)               
Reserved.

 

(g)               
Agent shall have received copies of the charter documents of each Obligor, certified by the Secretary of State or other
appropriate official of such Obligor’s jurisdiction of organization. Agent shall have received good standing certificates
for each Obligor, issued by the Secretary of State or other appropriate official of such Obligor’s jurisdiction of organization
and each jurisdiction where such Obligor’s conduct of business or ownership of Property necessitates qualification.

 

(h)              
Agent shall have received copies of policies or certificates of insurance for the insurance policies carried by Borrower,
all in compliance with the Loan Documents.

 

(i)                
Reserved.

 

(j)                
Borrowers shall have paid all fees and expenses to be paid to Agent and Lenders on the Closing Date.

 

(k)              
Agent shall have received an updated Colonial Borrowing Base Report and ACM-TCM Borrowing Base Report, each prepared as
of the prior month, reflecting changes incorporated herein.

 

6.2.           
Conditions Precedent to All Credit Extensions. Agent, Issuing Bank and Lenders shall in no event be required
to make any credit extension hereunder (including funding any Revolver Loan, arranging any Letter of Credit, or granting any other
accommodation to or for the benefit of any Borrower), if the following conditions are not satisfied on such date and upon giving
effect thereto:

 

(a)               
No Default or Event of Default exists;

 

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(b)              
The representations and warranties of each Obligor in the Loan Documents are true and correct (except for representations
and warranties that relate solely to an earlier date);

 

(c)               
All conditions precedent in any Loan Document are satisfied;

 

(d)              
No event has occurred or circumstance exists that has or could reasonably be expected to have a Material Adverse Effect;
and

 

(e)               
With respect to a Letter of Credit issuance, all LC Conditions are satisfied.

 

Each request (or deemed request) by a Borrower
for any credit extension shall constitute a representation by Borrowers that the foregoing conditions are satisfied on the date
of such request and on the date of the credit extension. As an additional condition to a credit extension, Agent may request any
other information, certification, document, instrument or agreement as it deems appropriate.

 

6.3.           
Post Closing Deliverables. Within 90 days after the Closing Date (or such longer time period as approved by Agent),
Borrowers shall provide to Agent a written opinion of counsel, in form and substance and by a law firm satisfactory to Agent, with
respect to the compliance of Borrowers’ form Contracts (in each state where such Contract is used) with the applicable Consumer
Finance Laws.

 

SECTION 7       
COLLATERAL

 

7.1.           
Grants of Security Interests.

 

7.1.1.                 
Colonial Grant of Security Interest. To secure the prompt payment and performance of its Colonial Obligations, Colonial
hereby grants to Agent, for the benefit of Secured Parties, a continuing security interest in and Lien upon all Property of Colonial,
including all of the following Property, whether now owned or hereafter acquired, and wherever located:

 

(a)               
all Accounts;

 

(b)              
all Chattel Paper, including electronic chattel paper;

 

(c)               
all Commercial Tort Claims, including those shown on Schedule 9.1.16;

 

(d)              
all Contracts;

 

(e)               
all Deposit Accounts;

 

(f)               
all Documents;

 

(g)               
all General Intangibles, including Intellectual Property;

 

(h)              
all Goods, including Inventory (including Vehicles), Equipment and fixtures;

 

(i)                
all Instruments;

 

(j)                
all Investment Property;

 

(k)              
all Letter-of-Credit Rights;

 

(l)                
all Supporting Obligations;

 

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(m)            
all monies, whether or not in the possession or under the control of Agent, a Lender, or a bailee or Affiliate of Agent
or a Lender, including any Cash Collateral;

 

(n)              
all accessions to, substitutions for, and all replacements, products, and cash and non-cash proceeds of the foregoing, including
proceeds of and unearned premiums with respect to insurance policies, and claims against any Person for loss, damage or destruction
of any Collateral; and

 

(o)              
all books and records (including customer lists, files, correspondence, tapes, computer programs, print-outs and computer
records) pertaining to the foregoing.

 

For the avoidance of doubt, Borrowers do not
grant a security interest in its Real Property.

 

7.1.2.                 
ACM and TCM Grant of Security Interests. To secure the prompt payment and performance of the ACM-TCM Obligations,
each of ACM and TCM hereby grants to Agent, for the benefit of Secured Parties, a continuing security interest in and Lien upon
all Property of ACM and TCM, including all of the following Property, whether now owned or hereafter acquired, and wherever located:

 

(a)               
all Accounts;

 

(b)              
all Chattel Paper, including electronic chattel paper;

 

(c)               
all Commercial Tort Claims, including those shown on Schedule 9.1.16;

 

(d)              
all Contracts;

 

(e)               
all Deposit Accounts;

 

(f)               
all Documents;

 

(g)               
all General Intangibles, including Intellectual Property;

 

(h)              
all Goods, including Inventory, Equipment and fixtures;

 

(i)                
all Instruments;

 

(j)                
all Investment Property;

 

(k)              
all Letter-of-Credit Rights;

 

(l)                
all Supporting Obligations;

 

(m)            
all monies, whether or not in the possession or under the control of Agent, a Lender, or a bailee or Affiliate of Agent,
or a Lender, including any Cash Collateral;

 

(n)              
all accessions to, substitutions for, and all replacements, products, and cash and non-cash proceeds of the foregoing, including
proceeds of and unearned premiums with respect to insurance policies, and claims against any Person for loss, damage or destruction
of any Collateral; and

 

(o)              
all books and records (including customer lists, files, correspondence, tapes, computer programs, print-outs and computer
records) pertaining to the foregoing.

 

For the avoidance of doubt, Borrowers do not
grant a security interest in its Real Property.

 

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7.2.           
Lien on Deposit Accounts; Cash Collateral.

 

7.2.1.                 
Deposit Accounts. To further secure the prompt payment and performance of its Obligations, each Borrower hereby grants
to Agent a continuing security interest in and Lien upon all amounts credited to any Deposit Account of such Borrower, including
sums in any blocked, lockbox, sweep or collection account. Each Borrower hereby authorizes and directs each bank or other depository
to deliver to Agent, upon request, all balances in any Deposit Account maintained for such Borrower, without inquiry into the authority
or right of Agent to make such request.

 

7.2.2.                 
Cash Collateral. Cash Collateral may be invested, at Agent’s discretion, in Cash Equivalents, but Agent shall
have no duty to do so, regardless of any agreement or course of dealing with any Borrower, and shall have no responsibility for
any investment or loss. As security for its Obligations, each Borrower hereby grants to Agent a security interest in and Lien upon
all Cash Collateral delivered hereunder from time to time, whether held in a segregated cash collateral account or otherwise. Agent
may apply Cash Collateral to payment of such Obligations, in such order as Agent may elect, as they become due and payable. All
Cash Collateral and related deposit accounts shall be under the sole dominion and control of Agent. No Borrower nor any other Person
claiming through or on behalf of any Borrower shall have any right to any Cash Collateral until Full Payment of the Obligations.

 

7.3.           
[RESERVED].

 

7.4.           
Other Collateral.

 

7.4.1.                 
Commercial Tort Claims. Borrowers shall promptly notify Agent in writing if any Borrower has a Commercial Tort Claim
(other than, as long as no Default or Event of Default exists, a Commercial Tort Claim for less than $100,000), shall promptly
amend Schedule 9.1.16 to include such claim, and shall take such actions as Agent deems appropriate to subject such claim
to a duly perfected, first priority Lien in favor of Agent.

 

7.4.2.                 
Certain After-Acquired Collateral. Borrowers shall promptly notify Agent in writing if, after the Closing Date, any
Borrower obtains any interest in any Collateral consisting of Deposit Accounts, Chattel Paper, Documents, Instruments, Intellectual
Property, Investment Property or Letter-of-Credit Rights and, upon Agent’s request, shall promptly take such actions as Agent
deems appropriate to effect Agent’s duly perfected, first priority Lien upon such Collateral, including obtaining any appropriate
possession, control agreement or Lien Waiver. If any Collateral is in the possession of a third party, at Agent’s request,
Borrowers shall obtain an acknowledgment that such third party holds the Collateral for the benefit of Agent.

 

7.5.           
Limitations. The Lien on Collateral granted hereunder is given as security only and shall not subject Agent or
any Lender to, or in any way modify, any obligation or liability of Borrowers relating to any Collateral. In no event shall the
grant of any Lien under any Loan Document secure an Excluded Swap Obligation of the granting Obligor.

 

7.6.           
Further Assurances. All Liens granted to Agent under the Loan Documents are for the benefit of Secured Parties.
Promptly upon request, Borrowers shall deliver such instruments, and agreements, and shall take such actions, as Agent deems appropriate
under Applicable Law to evidence or perfect its Lien on any Collateral, or otherwise to give effect to the intent of this Agreement.
Each Borrower authorizes Agent to file any financing statement that describes the Collateral as “all assets” or “all
personal property” of such Borrower, or words to similar effect, and ratifies any action taken by Agent before the Closing
Date to effect or perfect its Lien on any Collateral.

 

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7.7.           
Contract Legend. Except with respect to Collateral delivered to Lender, Borrowers shall immediately following
the execution or receipt of a Contract, stamp on the Contract the following words: “This document is subject to a first lien
security interest in favor of Bank of America, N.A., as collateral agent, and may not be further assigned”.

 

SECTION 8       
COLLATERAL ADMINISTRATION

 

8.1.           
Collateral Reporting.

 

8.1.1.                 
Colonial Borrowing Base Reports. By the 15th day of each month, Colonial shall deliver to Agent (and Agent
shall promptly deliver same to Lenders) (a) a Colonial Borrowing Base Report prepared as of the close of business of the previous
month, and at such other times as Agent may request, calculating the Colonial Contracts Formula Amount arising from Colonial Net
Eligible Contract Payments, and including such other information as Agent may require; (b) an aging of Colonial’s Contracts,
including a listing of each Vehicle Contract under which any payment is 29 or more days past due, as determined on a contractual
basis and aged in increments of 7 days or less, together with a reconciliation to the previous month’s aging and to Colonial’s
general ledger, (c) a calculation of the Past Due Percent, Repossession Percent, Annualized Colonial Net Charge-Off Percent
and Colonial Contracts Advance Rate Adjustment Percent; (d) cash collection journals; (e) bankruptcy and repossession journal;
(f) reports identifying Vehicle Contracts that (i) are subject to an Insolvency Proceeding, (ii) are Unacceptable Modified Contracts,
(iii) are due from an Affiliate, (iv) have original terms of more than 36 months, (v) were originated in the prior month, and (vi)
percentage of Vehicle Contracts that are secured by Vehicles that were subject to a prior repossession; (g)  a listing of
Contract Debtors and their respective loan numbers, (h) such other reports as to the Collateral of Borrowers as Agent shall reasonably
request from time to time; and (i) a certificate of an officer of Colonial certifying as to the accuracy and completeness
of the foregoing. If any of Colonial’s records or reports of the Collateral are prepared by an accounting service or other
agent, Colonial hereby authorizes such service or agent to deliver such records, reports, and related documents to Agent. All calculations
of Colonial Availability in any Colonial Borrowing Base Report shall originally be made by Colonial and certified by a Senior Officer,
provided that Agent may from time to time review and adjust any such calculation (a) to reflect its reasonable estimate of declines
in value of any Collateral, due to collections received in a Colonial Dominion Account or ACM-TCM Dominion Account or otherwise;
(b) to adjust advance rates to reflect changes factors affecting Collateral; and (c) to the extent the calculation is not made
in accordance with this Agreement or does not accurately reflect the Colonial Availability Reserve.

 

8.1.2.                 
ACM-TCM Borrowing Base Reports. By the 15th day of each month, ACM and TCM shall deliver to Agent (and Agent
shall promptly deliver same to Lenders) (a) an ACM-TCM Borrowing Base Report prepared as of the close of business of the previous
month, and at such other times as Agent may request, calculating the ACM-TCM Inventory Formula Amount, and including such other
information as Agent may require; (b) lot status report; (c) cash collection journals; (d) Inventory report breaking down the aggregate
Inventory at Vehicle lots purchased through a third party (i.e. auction or wholesale) valued at actual cash value (or purchase
price) and the repossessed Vehicles from Repossessed Contracts valued at the wholesale fair market value thereof; (e) a monthly
report providing a calculation comparing the actual cash proceeds of repossessed vehicles sold at auction compared to the vehicle’s
fair market value that Borrowers acquired the repossessed vehicles for from Colonial at the time of repossession, and (e) such
other reports as to the Collateral of ACM and TCM as Agent shall reasonably request from time to time; and (f) a certificate
of an officer of ACM and TCM certifying as to the accuracy and completeness of the foregoing. If any of ACM or TCM’s records
or reports of the Collateral are prepared by an accounting service or other agent, each of ACM and TCM hereby authorizes such service
or agent to deliver such records, reports, and related documents to Agent. All calculations of ACM-TCM Availability in any ACM-TCM
Borrowing Base Report shall originally be made by ACM and TCM and certified by a Senior Officer of both ACM and TCM, provided that
Agent may from time to time review and adjust any such calculation (a) to reflect its reasonable estimate of declines in value
of any Collateral, due to collections received in a Colonial Dominion Account or ACM-TCM Dominion Account or otherwise; (b) to
adjust advance rates to reflect changes factors affecting Collateral; and (c) to the extent the calculation is not made in accordance
with this Agreement or does not accurately reflect the ACM-TCM Availability Reserve.

 

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8.2.           
Administration of Contracts.

 

8.2.1.                 
Contracts.

 

(a)               
Colonial shall not grant any discount, credit or allowance to any such Contract Debtor without Agent’s prior written
consent, except for discounts, credits and allowances made or given in the Ordinary Course of Business, and settlements of delinquent
Contracts which settlements are made in the Ordinary Course of Business.

 

(b)              
Colonial shall not accept any note or other instrument (except a check or other instrument for the immediate payment of
money) with respect to any Contract without Agent’s prior written consent in each instance. If Agent consents to the acceptance
of any such instrument, it shall be considered as evidence of the Contract and not payment thereof and Borrower will promptly deliver
such instrument to Agent, endorsed by Colonial to the Agent in a manner satisfactory in form and substance to Agent. Regardless
of the form of presentment, demand, notice of protest with respect thereto, the Contract Debtor shall remain liable thereon until
such Instrument is paid in full.

 

(c)               
Agent may rely, in determining which Contracts are Eligible Vehicle Contracts, on all statements and representations made
by Colonial with respect thereto.

 

8.2.2.                 
Taxes. If a Contract of Colonial includes a charge for any Taxes, Agent is authorized, in their discretion, to pay
the amount thereof to the proper taxing authority for the account of Colonial and to charge Colonial therefor; provided,
however, that Agent shall not be liable for any Taxes that may be due from Colonial or with respect to any Collateral.

 

8.2.3.                 
Contract Verification. Whether or not a Default or Event of Default exists, Agent shall have the right at any time,
in the name of Agent, any designee of Agent or Colonial, to verify the validity, amount or any other matter relating to any Contracts
of Colonial by mail, telephone or otherwise. Colonial shall cooperate fully with Agent in an effort to facilitate and promptly
conclude any such verification process.

 

8.2.4.                 
Maintenance of Dominion Account. Each Borrower shall maintain Dominion Accounts pursuant to lockbox or other arrangements
acceptable to Agent. Each Borrower shall obtain an agreement (in form and substance satisfactory to Agent) from each lockbox servicer
and Dominion Account bank, establishing Agent’s control over and Lien in the lockbox or Dominion Account, requiring immediate
deposit of all remittances received in the lockbox to a Dominion Account, and waiving offset rights of such servicer or bank, except
for customary administrative charges. If a Dominion Account is not maintained with Agent, Agent may require immediate transfer
of all funds in such account to a Dominion Account maintained with Agent. Agent assumes no responsibility to Borrowers for any
lockbox arrangement or Dominion Account, including any claim of accord and satisfaction or release with respect to any Payment
Items accepted by any bank.

 

8.2.5.                 
Proceeds of Collateral. The applicable Borrower shall request in writing and otherwise take all necessary steps to
ensure that all payments on Contracts or otherwise relating to Collateral are made directly to a Dominion Account (or a lockbox
relating to a Dominion Account). If any Borrower or any Subsidiary receives cash or Payment Items with respect to any Collateral,
it shall hold same in trust for Agent and promptly (not later than the next Business Day) deposit same into a Dominion Account.

 

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8.3.           
Inventory.

 

8.3.1.                 
Records and Reports of Inventory. Each Borrower shall keep accurate and complete records of its Inventory, including
costs and daily withdrawals and additions, and shall submit to Agent inventory and reconciliation reports in form satisfactory
to Agent, on such periodic basis as Agent may request. Each Borrower shall conduct a physical inventory at least once per calendar
month (and on a more frequent basis if requested by Agent when an Event of Default exists) and periodic cycle counts consistent
with historical practices, and shall provide to Agent a report based on each such inventory and count promptly upon completion
thereof, together with such supporting information as Agent may request. Agent may participate in and observe each physical count.

 

8.3.2.                 
Returns of Inventory. No Borrower shall return any Inventory to a supplier, vendor or other Person other than in
the Ordinary Course of Business.

 

8.3.3.                 
Acquisition, Sale and Maintenance. No Borrower shall acquire or accept any Inventory on consignment or approval.
No Borrower shall sell any Inventory on consignment or approval or any other basis under which the customer may return or require
a Borrower to repurchase such Inventory; provided, that Borrower may accept a return of Inventory or un-wind a sale of Inventory
in the Ordinary Course of Business. Borrowers shall use, store and maintain all Inventory with reasonable care and caution, in
accordance with applicable standards of any insurance and in conformity with all Applicable Law, and shall make current rent payments
(within applicable grace periods provided for in leases) at all locations where any Collateral is located.

 

8.4.           
Administration of Equipment.

 

8.4.1.                 
Records and Schedules of Equipment. Each Borrower shall keep accurate and complete records of its Equipment, including
kind, quality, quantity, cost, acquisitions and dispositions thereof, and shall submit to Agent, on such periodic basis as Agent
may request, a current schedule thereof, in form satisfactory to Agent. Promptly upon request, Borrowers shall deliver to Agent
evidence of their ownership or interests in any Equipment.

 

8.4.2.                 
Dispositions of Equipment. No Borrower shall sell, lease or otherwise dispose of any Equipment, without the prior
written consent of Agent, other than (a) a Permitted Asset Disposition; and (b) replacement of Equipment that is worn, damaged
or obsolete with Equipment of like function and value, if the replacement Equipment is acquired substantially contemporaneously
with such disposition and is free of Liens.

 

8.4.3.                 
Condition of Equipment. The Equipment is in good operating condition and repair, and all necessary replacements and
repairs have been made so that the value and operating efficiency of the Equipment is preserved at all times, reasonable wear and
tear excepted. Each Borrower shall ensure that the Equipment is mechanically and structurally sound, and capable of performing
the functions for which it was designed, in accordance with manufacturer specifications. Borrowers shall not permit any Equipment
to become affixed to real Property unless any landlord or mortgagee delivers a Lien Waiver.

 

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8.5.           
Deposit Accounts. Schedule 8.5 shows all Deposit Accounts maintained by each Borrower, including Dominion
Accounts. Each Borrower shall take all actions necessary to establish Agent’s first priority Lien on each such Deposit Account
except accounts exclusively used for payroll, payroll taxes or employee benefits, other disbursement accounts acceptable to Agent,
or an account containing not more than $2,500. Each Borrower shall be the sole account holder of each Deposit Account and shall
not allow any Person (other than Agent and the depository bank) to have control over their Deposit Accounts or any Property deposited
therein. Each Borrower shall promptly notify Agent of any opening or closing of a Deposit Account and, with the consent of Agent,
will amend Schedule 8.5 to reflect same.

 

8.6.           
General Provisions.

 

8.6.1.                 
Location of Collateral. All tangible items of Collateral, other than Inventory in transit, shall at all times be
kept by Borrowers at the business locations set forth in Schedule 8.6.1, except that Borrowers may (a) make sales or other
dispositions of Collateral in accordance with Section 10.2.6; and (b) move Collateral to another location in the United
States, upon 30 Business Days prior written notice to Agent.

 

8.6.2.                 
Insurance of Collateral; Condemnation Proceeds.

 

(a)               
Each Borrower shall maintain general liability insurance and may maintain insurance respect to the Collateral, covering
casualty, hazard, theft, malicious mischief, flood and other risks, which in each case, shall be in amounts, with endorsements
and with insurers (with a Best rating of at least A+, unless otherwise approved by Agent in its discretion) acceptable to Agent.
All proceeds under each policy shall be payable to Agent. From time to time upon request, each Borrower shall deliver to Agent
the originals or certified copies of its insurance policies. Unless Agent shall agree otherwise, each policy shall include satisfactory
endorsements (i) showing Agent as loss payee; (ii) requiring 30 days prior written notice to Agent in the event of cancellation
of the policy for any reason whatsoever; and (iii) specifying that the interest of Agent shall not be impaired or invalidated by
any act or neglect of any Borrower or the owner of the Property, nor by the occupation of the premises for purposes more hazardous
than are permitted by the policy. If any Borrower fails to provide and pay for any insurance, Agent may, at its option, but shall
not be required to, procure the insurance and charge such Borrower therefor. Each Borrower agrees to deliver to Agent, promptly
as rendered, copies of all reports made to insurance companies with respect to individual claims exceeding $50,000. While no Event
of Default exists, each Borrower may settle, adjust or compromise any insurance claim, as long as the proceeds are delivered to
Agent. If an Event of Default exists, only Agent shall be authorized to settle, adjust and compromise such claims.

 

(b)              
Any proceeds of insurance (other than proceeds from workers’ compensation or D&O insurance) and any awards arising
from condemnation of any Collateral shall be paid to Agent. Any such proceeds or awards that relate to Collateral shall be applied
to payment of the Revolver Loans, and then to other Obligations.

 

(c)               
If requested by Borrowers in writing within 15 days after Agent’s receipt of any insurance proceeds or condemnation
awards relating to any loss or destruction of Equipment or Real Estate, the applicable Borrower may use such proceeds or awards
to repair or replace such Equipment or Real Estate (and until so used, the proceeds shall be held by Agent as Cash Collateral)
as long as (i) no Default or Event of Default exists; (ii) such repair or replacement is promptly undertaken and concluded, in
accordance with plans satisfactory to Agent; (iii) replacement buildings are constructed on the sites of the original casualties
and are of comparable size, quality and utility to the destroyed buildings; (iv) the repaired or replaced Property is free of Liens,
other than Permitted Liens that are not Purchase Money Liens; (v) such Borrower complies with disbursement procedures for such
repair or replacement as Agent may reasonably require; and (vi) the aggregate amount of such proceeds or awards does not exceed
$1,000,000 per Fiscal Year.

 

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8.6.3.                 
Protection of Collateral. All expenses of protecting, storing, warehousing, insuring, handling, maintaining and shipping
any Collateral, all Taxes payable with respect to any Collateral (including any sale thereof), and all other payments required
to be made by Agent to any Person to realize upon any Collateral, shall be borne and paid by the applicable Borrower. Agent shall
not be liable or responsible in any way for the safekeeping of any Collateral, for any loss or damage thereto (except for reasonable
care in its custody while Collateral is in Agent’s actual possession), for any diminution in the value thereof, or for any
act or default of any warehouseman, carrier, forwarding agency or other Person whatsoever, but the same shall be at Borrowers’
sole risk.

 

8.6.4.                 
Defense of Title. Each Borrower shall defend its title to Collateral and Agent’s Liens therein against all
Persons, claims and demands, except Permitted Liens.

 

8.7.           
Power of Attorney. Each Borrower hereby irrevocably constitutes and appoints Agent (and all Persons designated
by Agent) as such Borrower’s true and lawful attorney (and agent-in-fact) for the purposes provided in this Section. Agent,
or Agent’s designee, may, without notice and in either its or a Borrower’s name, but at the cost and expense of Borrowers:

 

(a)               
Endorse a Borrower’s name on any Payment Item or other proceeds of Collateral (including proceeds of insurance) that
come into Agent’s possession or control; and

 

(b)              
During an Event of Default, (i) notify any Contract Debtors of the assignment of their Contracts, demand and enforce payment
of Contracts by legal proceedings or otherwise, and generally exercise any rights and remedies with respect to Contracts; (ii)
settle, adjust, modify, compromise, discharge or release any Contract or other Collateral, or any legal proceedings brought to
collect Contract or Collateral; (iii) sell or assign any Contract and other Collateral upon such terms, for such amounts and at
such times as Agent deems advisable; (iv) collect, liquidate and receive balances in Deposit Accounts or investment accounts, and
take control, in any manner, of proceeds of Collateral; (v) prepare, file and sign a Borrower’s name to a proof of claim
or other document in a bankruptcy of an Contract Debtor, or to any notice, assignment or satisfaction of Lien or similar document;
(vi) receive, open and dispose of mail addressed to a Borrower, and notify postal authorities to deliver any such mail to an address
designated by Agent; (vii) endorse any Chattel Paper, Document, Instrument, bill of lading, or other document or agreement relating
to any Contract, Inventory or other Collateral; (viii) use a Borrower’s stationery and sign its name to verifications of
Contract and notices to Contract Debtors; (ix) use information contained in any data processing, electronic or information systems
relating to Collateral; (x) make and adjust claims under insurance policies; (xi) take any action as may be necessary or appropriate
to obtain payment under any letter of credit, banker’s acceptance or other instrument for which a Borrower is a beneficiary;
and (xii) take all other actions as Agent deems appropriate to fulfill a Borrower’s obligations under the Loan Documents.

 

SECTION 9       
REPRESENTATIONS AND WARRANTIES

 

9.1.           
General Representations and Warranties. To induce Agent and Lenders to enter into this Agreement and to make
available the Revolver Commitments, Revolver Loans and Letters of Credit, each Borrower represents and warrants that:

 

9.1.1.                 
Organization and Qualification. Parent and each of its Subsidiaries are duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization. Parent and its Subsidiaries are duly qualified, authorized to
do business and in good standing as a foreign corporation in each jurisdiction where failure to be so qualified could reasonably
be expected to have a Material Adverse Effect. No Obligor is an EEA Financial Institution.

 

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9.1.2.                 
Power and Authority. Each Obligor is duly authorized to execute, deliver and perform its Loan Documents. The execution,
delivery and performance of the Loan Documents have been duly authorized by all necessary action, and do not (a) require any consent
or approval of any holders of Equity Interests of any Obligor, except those already obtained; (b) contravene the Organic Documents
of any Obligor; (c) violate or cause a default under any Applicable Law or Material Contract; or (d) result in or require imposition
of a Lien (other than Permitted Liens) on any Obligor’s Property.

 

9.1.3.                 
Enforceability. Each Loan Document is a legal, valid and binding obligation of each Obligor party thereto, enforceable
in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement
of creditors’ rights generally.

 

9.1.4.                 
Capital Structure. Schedule 9.1.4 shows, for each of Parent and its Subsidiaries, its name and its jurisdiction
of organization, and all agreements binding on the Equity Interest holders of the Obligors with respect to their Equity Interests.
Except as disclosed on Schedule 9.1.4, in the 5 years preceding the Closing Date, no Obligor has acquired any substantial
assets from any other Person nor been the surviving entity in a merger or combination. Parent has good title to its Equity Interests
in its Subsidiaries, and all such Equity Interests are duly issued, fully paid and non-assessable. There are no outstanding purchase
options, warrants, subscription rights, agreements to issue or sell, convertible interests, phantom rights or powers of attorney
relating to Equity Interests of any Borrower or other Subsidiaries of Parent.

 

9.1.5.                 
Title to Properties; Priority of Liens. Each of Parent and its Subsidiaries have good and marketable title to (or
valid leasehold interests in) all of its Real Estate, and good title to all of its personal Property, including all Property reflected
in any financial statements delivered to Agent or Lenders, in each case free of Liens except Permitted Liens. Each of Parent and
its Subsidiaries have paid and discharged all lawful claims that, if unpaid, could become a Lien on its Properties, other than
Permitted Liens. All Liens of Agent in the Collateral are duly perfected, first priority Liens, subject only to Permitted Liens
that are expressly allowed to have priority over Agent’s Liens.

 

9.1.6.                 
Contracts. Agent may rely, in determining which Contracts are Eligible Vehicle Contracts, on all statements and representations
made by Borrowers with respect thereto. Each Borrower warrants, with respect to the Contracts, that: (i) each existing Contract
represents, and each future Contract will represent, a bona fide obligation of the Contract Debtor, enforceable in accordance with
its terms; (ii) each existing Contract is, and each future Contract will be, for a liquidated amount payable by the Contract
Debtor thereon on the terms set forth in the Contract therefor or in the schedule thereof delivered to Agent, without any offset,
deduction, defense (including the defense of usury), or counterclaim; (iii) there is only one original counterpart of the
Contract executed by the Contract Debtor; (iv) each Contract correctly sets forth the terms thereof, including the interest
rate applicable thereto and correctly describes the collateral for such Contract; (vi) the signatures of all Contract Debtors
are genuine and, to the knowledge of such Borrower, each Contract Debtor had the legal capacity to enter into and execute such
documents on the date thereof; (vii) each Contract complies with all Applicable Law, including all interest rate and disclosure
requirements and all Vehicle Contract Compliance Requirements; (viii) Borrowers have not used illegal, improper, fraudulent
or deceptive marketing techniques or unfair business practices with respect to the Contracts; and (ix) Borrowers have paid
to the applicable Dealer, the purchase price for each Contract purchased from a Dealer, and except as set forth in the Servicing
Agreement, the Dealer has no interest in any Contract purchased by a Borrower.

 

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9.1.7.                 
Financial Statements. The consolidated and consolidating balance sheets, and related statements of income, cash flow
and shareholders equity, of Parent and its Subsidiaries that have been and are hereafter delivered to Agent and Lenders, are prepared
in accordance with GAAP, and fairly present the financial positions and results of operations of Parent and its Subsidiaries at
the dates and for the periods indicated. All projections delivered from time to time to Agent and Lenders have been prepared in
good faith, based on reasonable assumptions in light of the circumstances at such time. Since July 31, 2016, there has been no
change in the condition, financial or otherwise, of Parent or any of its Subsidiaries that could reasonably be expected to have
a Material Adverse Effect. No financial statement delivered to Agent or Lenders at any time contains any untrue statement of a
material fact, nor fails to disclose any material fact necessary to make such statement not materially misleading. Parent and its
Subsidiaries are Solvent.

 

9.1.8.                 
Surety Obligations. Neither Parent nor any of its Subsidiaries are obligated as surety or indemnitor under any bond
or other contract that assures payment or performance of any obligation of any Person, except as permitted hereunder.

 

9.1.9.                 
Taxes. Parent and its Subsidiaries have filed all federal, state and local tax returns and other reports that it
is required by law to file, and has paid, or made provision for the payment of, all Taxes upon it, its income and its Properties
that are due and payable, except to the extent being Properly Contested. The provision for Taxes on the books of Parent and its
Subsidiaries are adequate for all years not closed by applicable statutes, and for its current Fiscal Year.

 

9.1.10.             
Brokers. There are no brokerage commissions, finder’s fees or investment banking fees payable in connection
with any transactions contemplated by the Loan Documents.

 

9.1.11.             
Intellectual Property. Parent and its Subsidiaries own or have the lawful right to use all Intellectual Property
necessary for the conduct of their business, without conflict with any rights of others. There is no pending or, to Parent’s
knowledge, threatened Intellectual Property Claim with respect to Parent, any of Subsidiaries or any of their Property (including
any Intellectual Property). Except as disclosed on Schedule 9.1.11, neither Parent nor any of its Subsidiaries pays or owes
any royalty or other compensation to any Person with respect to any Intellectual Property. All Intellectual Property owned, used
or licensed by, or otherwise subject to any interests of, Parent or its Subsidiaries are shown on Schedule 9.1.11.

 

9.1.12.             
Governmental Approvals. Parent and its Subsidiaries have, are in compliance with, and are in good standing with respect
to, all Governmental Approvals necessary to conduct their business and to own, lease and operate its Properties. All necessary
import, export or other licenses, permits or certificates for the import or handling of any goods or other Collateral have been
procured and are in effect, and Parent and its Subsidiaries have complied with all foreign and domestic laws with respect to the
shipment and importation of any goods or Collateral, except where noncompliance could not reasonably be expected to have a Material
Adverse Effect.

 

9.1.13.             
Compliance with Laws. Parents and its Subsidiaries are in compliance in all material respects with all Applicable
Laws (including Consumer Finance Laws) and material to the conduct of its business and operations; each Borrower possesses all
the franchises, permits, licenses, certificates of compliance and approval and grants of authority necessary or required in the
conduct of its business and the same are valid, binding, enforceable and subsisting without any defaults thereunder or enforceable
adverse limitations thereon, and are not subject to any proceedings or claims opposing the issuance, development or use thereof
or contesting the validity thereof; and no approvals, waivers or consents, governmental (federal, state or local) or non-governmental,
under the terms of contracts or otherwise, are required by reason of or in connection with such Borrower’s execution and
performance of the Loan Documents.

 

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9.1.14.             
Compliance with Environmental Laws. Except as disclosed on Schedule 9.1.14, neither Parent’s nor any
of its Subsidiaries’ past or present operations, Real Estate or other Properties are subject to any federal, state or local
investigation to determine whether any remedial action is needed to address any environmental pollution, hazardous material or
environmental clean-up. Neither Parent nor any of its Subsidiaries has received any Environmental Notice. Neither Parent nor any
of its Subsidiaries have any contingent liability with respect to any Environmental Release, environmental pollution or hazardous
material on any Real Estate now or previously owned, leased or operated by it.

 

9.1.15.             
Burdensome Contracts. Neither Parent nor any of its Subsidiaries are a party or subject to any contract, agreement
or charter restriction that could reasonably be expected to have a Material Adverse Effect. Neither Parent nor any of its Subsidiaries
are party or subject to any Restrictive Agreement, except as shown on Schedule 9.1.15. No such Restrictive Agreement prohibits
the execution, delivery or performance of any Loan Document by an Obligor.

 

9.1.16.             
Litigation. Except as shown on Schedule 9.1.16, there are no proceedings or investigations pending or, to
Parent’s knowledge, threatened against Parent or any of its Subsidiaries, or any of their businesses, operations, Properties,
prospects or conditions, that (a) relate to any Loan Documents or transactions contemplated thereby; or (b) could reasonably be
expected to have a Material Adverse Effect if determined adversely to Parent or any of its Subsidiaries. Except as shown on such
Schedule, no Obligor has a Commercial Tort Claim (other than, as long as no Default or Event of Default exists, a Commercial Tort
Claim for less than $100,000). Neither Parent nor any of its Subsidiaries are in default with respect to any order, injunction
or judgment of any Governmental Authority.

 

9.1.17.             
No Defaults. No event or circumstance has occurred or exists that constitutes a Default or Event of Default. Neither
Parent nor any of its Subsidiaries are in default, and no event or circumstance has occurred or exists that with the passage of
time or giving of notice would constitute a default, under any Material Contract or in the payment of any Borrowed Money. There
is no basis upon which any party (other than Parent or its Subsidiaries) could terminate a Material Contract prior to its scheduled
termination date.

 

9.1.18.             
ERISA. Except as disclosed on Schedule 9.1.18:

 

(a)               
Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code, and other federal
and state laws. Each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter
from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the knowledge
of each Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification. Each Obligor and ERISA Affiliate
has met all applicable requirements under the Code, ERISA and the Pension Protection Act of 2006, and no application for a waiver
of the minimum funding standards or an extension of any amortization period has been made with respect to any Plan.

 

(b)              
There are no pending or, to the knowledge of each Borrower, threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect. There has been no prohibited
transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted in or could reasonably
be expected to have a Material Adverse Effect.

 

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(c)               
(i) No ERISA Event has occurred or is reasonably expected to occur; (ii) as of the most recent valuation date for any Pension
Plan, the funding target attainment percentage (as defined in Section 430(d)(2) of the Code) is at least 60%; and no Obligor or
ERISA Affiliate knows of any reason that such percentage could reasonably be expected to drop below 60%; (iii) no Obligor or ERISA
Affiliate has incurred any liability to the PBGC except for the payment of premiums, and no premium payments are due and unpaid;
(iv) no Obligor or ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of ERISA; and
(v) no Pension Plan has been terminated by its plan administrator or the PBGC, and no fact or circumstance exists that could reasonably
be expected to cause the PBGC to institute proceedings to terminate a Pension Plan.

 

9.1.19.             
Trade Relations. There exists no actual or threatened termination, limitation or modification of any business relationship
between Parent or any of its Subsidiaries and any customer or supplier, or any group of customers or suppliers, who individually
or in the aggregate are material to the business of Parent or its Subsidiaries. There exists no condition or circumstance that
could reasonably be expected to impair the ability of Parent or any of its Subsidiaries to conduct its business at any time hereafter
in substantially the same manner as conducted on the Closing Date.

 

9.1.20.             
Labor Relations. Except as described on Schedule 9.1.20, neither Parent nor any of its Subsidiaries are party
to or bound by any collective bargaining agreement, management agreement or consulting agreement. There are no material grievances,
disputes or controversies with any union or other organization of Parent’s or any of its Subsidiaries’ employees, or,
to Parent’s knowledge, any asserted or threatened strikes, work stoppages or demands for collective bargaining.

 

9.1.21.             
Payable Practices. Neither Parent nor any of its Subsidiaries has made any material change in its historical accounts
payable practices from those in effect on the Closing Date.

 

9.1.22.             
Not a Regulated Entity. No Obligor is (a) an “investment company” or a “person directly or indirectly
controlled by or acting on behalf of an investment company” within the meaning of the Investment Company Act of 1940; or
(b) subject to regulation under the Federal Power Act, the Interstate Commerce Act, any public utilities code or any other Applicable
Law regarding its authority to incur Debt.

 

9.1.23.             
Margin Stock. Neither Parent nor any of its Subsidiaries is engaged, principally or as one of its important activities,
in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No Revolver Loan proceeds or Letters
of Credit will be used by any Borrower to purchase or carry, or to reduce or refinance any Debt incurred to purchase or carry,
any Margin Stock or for any related purpose governed by Regulations T, U or X of the Board of Governors.

 

9.1.24.             
[Disregarded Subsidiaries. The Disregarded Subsidiaries (excluding Colonial Underwriting) have no material assets
and conduct no material business, other than Crown, which owns an airplane as its sole material asset. Other than the Permitted
Airplane Financing, the Disregarded Subsidiaries have incurred no Debt and have not created or suffered to exist any Liens on any
of their Properties.] 2

 

9.1.25.             
Contract Forms. The forms of Vehicle Contract used by Borrowers in their business have been previously approved in
writing by Agent, and Borrowers have not made any changes to such forms since approvals were granted.

 

 

________________

2 Note to Company
– please confirm.

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9.1.26.             
OFAC. Neither Parent nor any of its Subsidiaries, or any director, officer, employee, agent, affiliate or representative
thereof, is or is owned or controlled by any individual or entity that is currently the subject or target of any Sanction or is
located, organized or resident in a Designated Jurisdiction.

 

9.1.27.             
Anti-Corruption Laws. Parent and each of its Subsidiaries have conducted its business in accordance with applicable
anti-corruption laws and has instituted and maintained policies and procedures designed to promote and achieve compliance with
such laws.

 

9.2.           
Complete Disclosure. No Loan Document contains any untrue statement of a material fact, nor fails to disclose
any material fact necessary to make the statements contained therein not materially misleading. There is no fact or circumstance
that any Obligor has failed to disclose to Agent in writing that could reasonably be expected to have a Material Adverse Effect.

 

SECTION 10   
COVENANTS AND CONTINUING AGREEMENTS

 

10.1.       
Affirmative Covenants. As long as any Revolver Commitments or Obligations are outstanding, Parent shall, and
shall cause each of its Subsidiaries to:

 

10.1.1.             
Inspections; Appraisals.

 

(a)               
Permit Agent from time to time, subject (unless a Default or Event of Default exists) to reasonable notice and normal business
hours, to visit and inspect the Properties of Parent or any of its Subsidiaries, inspect, audit and make extracts from Parent’s
or its Subsidiaries’ books and records, and discuss with its officers, employees, agents, advisors and independent accountants
Parent’s or any of its Subsidiaries’ business, financial condition, assets, prospects and results of operations. Lenders
may participate in any such visit or inspection, at their own expense. Secured Parties shall have no duty to any Obligor to make
any inspection, nor to share any results of any inspection, appraisal or report with any Obligor. Parent and Borrowers acknowledge
that all inspections, appraisals and reports are prepared by Agent and Lenders for their purposes, and neither Parent nor any of
its Subsidiaries shall be entitled to rely upon them.

 

(b)              
Reimburse Agent for all its charges, costs and expenses in connection with examinations of Obligors’ books and records
or any other financial or Collateral matters as it deems appropriate so long as all such charges, costs and expenses do not exceed
$50,000 per calendar year; provided, however, that if an examination is conducted during a Default or Event of Default,
all charges, costs and expenses relating thereto shall be reimbursed by Borrowers without regard to such limits. Subject to and
without limiting the foregoing, Borrowers specifically agree to pay Agent’s then standard charges for each day that an employee
of Agent or its Affiliates is engaged in any examination activities, and shall pay the standard charges of Agent’s internal
appraisal group. This Section shall not be construed to limit Agent’s right to conduct examinations or to obtain appraisals
at any time in its discretion, nor to use third parties for such purposes.

 

10.1.2.             
Financial and Other Information. Keep adequate records and books of account with respect to its business activities,
in which proper entries are made in accordance with GAAP reflecting all financial transactions; and furnish to Agent and Lenders:

 

(a)               
as soon as available, and in any event within 90 days after the close of each Fiscal Year, balance sheets as of the end
of such Fiscal Year and the related statements of income, cash flow and shareholders equity for such Fiscal Year, on consolidated
and consolidating bases for Parent and its Subsidiaries, which consolidated statements shall be audited and certified (without
qualification) by a firm of independent certified public accountants of recognized standing selected by Parent and acceptable to
Agent, and shall set forth in comparative form corresponding figures for the preceding Fiscal Year and other information acceptable
to Agent;

 

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(b)              
as soon as available, and in any event within 45 days after the end of each Fiscal Quarter, unaudited balance sheets as
of the end of such Fiscal Quarter and the related statements of income and cash flow for such month and for the portion of the
Fiscal Year then elapsed, on consolidated and consolidating bases for Parent and its Subsidiaries, setting forth in comparative
form corresponding figures for the preceding Fiscal Year and certified by the chief financial officer of Parent as prepared in
accordance with GAAP and fairly presenting the financial position and results of operations for such Fiscal Quarter and period,
subject to normal year end adjustments and the absence of footnotes;

 

(c)               
as soon as available, and in any event within 30 days after the end of each month, unaudited balance sheets as of the end
of such month and the related statements of income and cash flow for such month and for the portion of the Fiscal Year then elapsed,
on consolidated and consolidating bases for Parent and its Subsidiaries, setting forth in comparative form corresponding figures
for the preceding Fiscal Year and certified by the chief financial officer of Parent as prepared in accordance with GAAP and fairly
presenting the financial position and results of operations for such month and period, subject to normal year end adjustments and
the absence of footnotes;

 

(d)              
concurrently with delivery of financial statements under clauses (a), (b), and (c) above, or more frequently if requested
by Agent while a Default or Event of Default exists, a Compliance Certificate executed by the chief financial officer of Parent;

 

(e)               
concurrently with delivery of financial statements under clause (a) above, copies of all management letters and other material
reports submitted to Parent by their accountants in connection with such financial statements;

 

(f)               
not later than 30 days prior to the end of each Fiscal Year, projections of Parent’s consolidated balance sheets,
results of operations, cash flow, Colonial Availability and ACM-TCM Availability for the next Fiscal Year, month by month;

 

(g)               
at Agent’s request, a listing of each Borrower’s trade payables, specifying the trade creditor and balance due,
and a detailed trade payable aging, all in form satisfactory to Agent;

 

(h)              
promptly after the sending or filing thereof, copies of any proxy statements, financial statements or reports that Parent
has made generally available to its shareholders; copies of any regular, periodic and special reports or registration statements
or prospectuses that Parent files with the Securities and Exchange Commission or any other Governmental Authority, or any securities
exchange; and copies of any press releases or other statements made available by Parent to the public concerning material changes
to or developments in the business of Parent and its Subsidiaries;

 

(i)                
promptly after the sending or filing thereof, copies of any annual report to be filed in connection with each Plan;

 

(j)                
such other reports and information (financial or otherwise) as Agent may request from time to time in connection with any
Collateral or Parent’s, any of its Subsidiaries’ or other Obligor’s financial condition or business; and

 

(k)              
on each anniversary date hereof or on such other date as reasonably required by Agent, from time to time, a written certification
to Agent and the Lenders that the form of the Vehicle Contracts comply with the Vehicle Contract Compliance Requirements, which
certification shall be in form and content satisfactory to Agent.

 

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10.1.3.             
Notices. Notify Agent and Lenders in writing, promptly after Parent’s or any Borrower’s obtaining knowledge
thereof, of any of the following that affects an Obligor: (a) the threat or commencement of any proceeding or investigation, whether
or not covered by insurance, if an adverse determination could have a Material Adverse Effect; (b) any pending or threatened labor
dispute, strike or walkout, or the expiration of any material labor contract; (c) any default under or termination of a Material
Contract; (d) the existence of any Default or Event of Default; (e) any judgment in an amount exceeding $1,000,000; (f) the assertion
of any Intellectual Property Claim, if an adverse resolution could have a Material Adverse Effect; (g) any violation or asserted
violation of any Applicable Law (including ERISA, OSHA, FLSA, or any Environmental Laws), if an adverse resolution could have a
Material Adverse Effect; (h) any Environmental Release by an Obligor or on any Property owned, leased or occupied by an Obligor;
or receipt of any Environmental Notice; (i) the occurrence of any ERISA Event; (j) the discharge of or any withdrawal or resignation
by Parent’s independent accountants; or (k) any opening of a new office or place of business, at least 30 days prior to such
opening.

 

10.1.4.             
Landlord and Storage Agreements. Upon request, provide Agent with copies of all existing agreements, and promptly
after execution thereof provide Agent with copies of all future agreements, between an Obligor and any landlord, warehouseman,
processor, shipper, bailee or other Person that owns any premises at which any Collateral may be kept or that otherwise may possess
or handle any Collateral.

 

10.1.5.             
Compliance with Laws.

 

(a)               
Comply with all Applicable Laws, including ERISA, Environmental Laws, FLSA, OSHA, Anti-Terrorism Laws, and laws regarding
collection and payment of Taxes, and maintain all Governmental Approvals necessary to the ownership of its Properties or conduct
of its business, unless failure to comply (other than failure to comply with Anti-Terrorism Laws) or maintain could not reasonably
be expected to have a Material Adverse Effect. Without limiting the generality of the foregoing, if any Environmental Release occurs
at or on any Properties of Parent or any of its Subsidiaries, it shall act promptly and diligently to investigate and report to
Agent and all appropriate Governmental Authorities the extent of, and to make appropriate remedial action to eliminate, such Environmental
Release, whether or not directed to do so by any Governmental Authority.

 

(b) Comply in all material respects with all Consumer
Finance Laws and Vehicle Contract Compliance Requirements, and the provisions and requirements of all franchises, permits, certificates
of compliance and approval issued by regulatory authorities and other like grants of authority held by Borrowers relating to consumer
credit; and notify Administrative Agent immediately (and in detail) of any actual or alleged failure to comply with or perform,
breach, violation or default under any such Consumer Finance Laws or under the terms of any of such franchises or licenses, grants
of authority, or of the occurrence or existence of any facts or circumstances which with the passage of time, the giving of notice
or otherwise could create such a breach, violation or default or could occasion the termination of any of such franchises or grants
of authority (which Agent will thereafter deliver to Lenders).

 

10.1.6.             
Taxes. Pay and discharge all Taxes prior to the date on which they become delinquent or penalties attach, unless
such Taxes are being Properly Contested.

 

10.1.7.             
Insurance. All insurance required hereunder shall be maintained with insurers (with a Best rating of at least A+,
unless otherwise approved by Agent in its discretion) satisfactory to Agent, with respect to the Properties and business of Parent
and its Subsidiaries of such type, in such amounts, and with such coverages and deductibles as are customary for companies similarly
situated.

 

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10.1.8.             
Licenses. Keep each License affecting any Collateral (including the distribution or disposition of Inventory) or
any other material Property of Parent and its Subsidiaries in full force and effect; promptly notify Agent of any proposed modification
to any such License, or entry into any new License, in each case at least 30 days prior to its effective date; pay all royalties
and other amounts when due under any License; and notify Agent of any default or breach asserted by any Person to have occurred
under any License.

 

10.1.9.             
Future Subsidiaries. Promptly notify Agent upon any Person becoming a Subsidiary of Parent and cause it to guaranty
the Obligations in a manner satisfactory to Agent, and to execute and deliver such documents, instruments and agreements and to
take such other actions as Agent shall require to evidence and perfect a Lien in favor of Agent on all assets of such Person, including
delivery of such legal opinions, in form and substance satisfactory to Agent, as it shall deem appropriate.

 

10.1.10.         
Books and Records.

 

(a)               
Maintain at all times books and records pertaining to the Collateral in such detail, form and scope as Agent shall reasonably
require, including, but not limited to, records of (a) all payments received and all credits and extensions granted with respect
to the Contracts; and (b) all other dealings affecting the Collateral. By means of appropriate entries, reflect in its books
and records, and in all financial statements, proper liabilities and reserves for all taxes and proper provision for depreciation
and amortization of property and bad debts, all in accordance with GAAP.

 

(b)              
Maintain a system, satisfactory to Agent, for duplicating and storing, at a secure location, a duplicate set of books and
records concerning the Collateral, and maintain a credit file for each Contract Debtor, containing financial information reflecting
the creditworthiness of each Contract Debtor.

 

10.1.11.         
Protection of Collateral. Pay all expenses of protecting, storing, insuring, handling, maintaining, and shipping
the Collateral and any and all excise, property, sales, and use taxes levied by any state, federal or local authority on any of
the Collateral or in respect of the sale thereof.

 

10.1.12.         
Servicing of Contracts. Collect all payments and other proceeds of the Contracts and other Collateral and deposit
the proceeds into a Dominion Account and perform customary insurance follow-up with respect to each policy of insurance covering
the Property which is the subject of the Contracts.

 

10.1.13.         
Loss Reserves. Maintain loss reserves (“Minimum Loss Reserve”) at all times during the term of
the Agreement and calculated as of the last day of each month, in an amount not less than an amount which is in accordance with
GAAP and pursuant to the recommendations of the independent certified public accounting firm preparing the financial statements
required to be delivered to Agent under this Agreement.

 

10.1.14.         
Charge-Off Policy. Establish and implement, in a manner satisfactory to Agent, a policy for charging off the unpaid
balance of its delinquent Vehicle Contracts. Without limiting the generality of the foregoing, such policy shall provide, as a
minimum, that on the last day of each month applicable Borrower shall charge off the unpaid balance of all Vehicle Contracts with
respect to which (i) any payment due thereunder is 180 or more days delinquent on a contractual basis, or (ii) the Vehicle securing
such Vehicle Contract was repossessed more than 30 days prior to such date.

 

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10.1.15.         
Credit Guidelines. Borrowers’ Credit Guidelines shall at all times comply in all material respects with all
requirements of Applicable Law (including, but not limited to, Consumer Finance Laws and laws relating to usury, truth-in-lending,
fair lending, predatory and abusive lending, consumer credit protection, fair credit reporting, equal credit opportunity, unfair
and deceptive practices and disclosure obligations related thereto).

 

10.1.16.         
Anti-Corruption Laws. Conduct its business in compliance with applicable anti-corruption laws and maintain policies
and procedures designed to promote and achieve compliance with such laws.

 

10.2.       
Negative Covenants. As long as any Revolver Commitments or Obligations are outstanding, Parent shall not, and
shall cause each of its Subsidiaries not to:

 

10.2.1.             
Permitted Debt. Create, incur, guarantee or suffer to exist any Debt, except:

 

(a)               
the Obligations;

 

(b)              
Subordinated Debt, including the Intercompany Subordinated Debt;

 

(c)               
Permitted Purchase Money Debt;

 

(d)              
Borrowed Money (other than the Obligations, Subordinated Debt and Permitted Purchase Money Debt), but only to the extent
outstanding on the Closing Date and not satisfied with proceeds of the initial Revolver Loans;

 

(e)               
Debt with respect to Bank Products incurred in the Ordinary Course of Business;

 

(f)               
Permitted Contingent Obligations;

 

(g)               
Refinancing Debt as long as each Refinancing Condition is satisfied;

 

(h)              
Debt in connection with the indemnity obligations of ACM and TCM arising under service contracts on Vehicles sold by either
ACM and TCM;

 

(i)                
Permitted Airplane Financing;

 

(j)                
Debt that is not included in any of the preceding clauses of this Section, is not secured by a Lien and does not exceed
$500,000 in the aggregate at any time; and

 

(k)              
Debt consisting of deferred employee compensation incurred in the Ordinary Course of Business.

 

10.2.2.             
Permitted Liens. Create or suffer to exist any Lien upon any of its Property, except the following (collectively,
“Permitted Liens”):

 

(a)               
Liens in favor of Agent;

 

(b)              
Purchase Money Liens securing Permitted Purchase Money Debt;

 

(c)               
Liens for Taxes not yet due or being Properly Contested;

 

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(d)              
statutory Liens (other than Liens for Taxes or imposed under ERISA) arising in the Ordinary Course of Business, but only
if (i) payment of the obligations secured thereby is not yet due or is being Properly Contested, and (ii) such Liens do not materially
impair the value or use of the Property or materially impair operation of the business of Parent or any of its Subsidiaries;

 

(e)               
Liens incurred or deposits made in the Ordinary Course of Business to secure the performance of government tenders, bids,
contracts, statutory obligations and other similar obligations, as long as such Liens are at all times junior to Agent’s
Liens and are required or provided by law;

 

(f)               
Liens arising in the Ordinary Course of Business that are subject to Lien Waivers;

 

(g)               
Liens arising by virtue of a judgment or judicial order against Parent or any of its Subsidiaries, or any Property of Parent
or its Subsidiaries, as long as such Liens are (i) in existence for less than 20 consecutive days or being Properly Contested,
and (ii) at all times junior to Agent’s Liens;

 

(h)              
easements, rights-of-way, restrictions, covenants or other agreements of record, and other similar charges or encumbrances
on Real Estate, that do not secure any monetary obligation and do not interfere with the Ordinary Course of Business;

 

(i)                
normal and customary rights of setoff upon deposits in favor of depository institutions, and Liens of a collecting bank
on Payment Items in the course of collection; and

 

(j)                
existing Liens shown on Schedule 10.2.2.

 

10.2.3.             
Capital Expenditures. Make Capital Expenditures in excess of $10,000,000 in the aggregate during any Fiscal Year
without the prior written consent of Agent and Required Lenders.

 

10.2.4.             
Distributions; Upstream Payments. Declare or make any Distributions, except Upstream Payments and Permitted Distributions;
or create or suffer to exist any encumbrance or restriction on the ability of a Subsidiary of Parent to make any Upstream Payment,
except for restrictions under the Loan Documents, under Applicable Law or in effect on the Closing Date as shown on Schedule
9.1.15.

 

10.2.5.             
Restricted Investments. Make any Restricted Investment.

 

10.2.6.             
Disposition of Assets. Make any Asset Disposition, except a Permitted Asset Disposition, a disposition of Equipment
under Section 8.4.2, or a transfer of Property by a Subsidiary of Parent or any Obligor to a Borrower.

 

10.2.7.             
Loans. Make any loans or other advances of money to any Person, except (a) advances to an officer or employee for
salary, travel expenses, commissions and similar items in the Ordinary Course of Business; (b) prepaid expenses and extensions
of trade credit made in the Ordinary Course of Business; (c) deposits with financial institutions permitted hereunder and (d) loans
in the Ordinary Course of Business to Contract Debtors for the repair of the Vehicle subject to the Contract executed by such Contract
Debtor (such loans are identified by Borrowers as “side notes”).

 

10.2.8.             
Restrictions on Payment of Certain Debt. Make any payments (whether voluntary or mandatory, or a prepayment, redemption,
retirement, defeasance or acquisition) with respect to any (a) Subordinated Debt (other than the Intercompany Subordinated Debt),
except regularly scheduled payments of principal, interest and fees, but only to the extent permitted under any subordination agreement
relating to such Debt (and a Senior Officer of Parent shall certify to Agent, not less than 5 Business Days prior to the date of
payment, that all conditions under such agreement have been satisfied); (b) Intercompany Subordinated Debt except as set forth
in the Intercompany Subordination Agreement; or (c) Borrowed Money (other than the Obligations) prior to its due date under the
agreements evidencing such Debt as in effect on the Closing Date (or as amended thereafter with the consent of Agent).

 

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10.2.9.             
Fundamental Changes. Change its name or conduct business under any fictitious name; change its tax, charter or other
organizational identification number; change its form or state of organization; liquidate, wind up its affairs or dissolve itself;
or merge, combine or consolidate with any Person, or liquidate, wind up its affairs or dissolve itself, in each case whether in
a single transaction or in a series of related transactions, except for mergers or consolidations of an Obligor or other Subsidiary
of Parent into a Borrower; change its name or conduct business under any fictitious name; change its tax, charter or other organizational
identification number; or change its form or state of organization.

 

10.2.10.         
Subsidiaries. Form or acquire any Subsidiary after the Closing Date, except in accordance with Sections 10.1.9,
10.2.5 and 19.2.9; or permit any existing Subsidiary to issue any additional Equity Interests except directors’
qualifying shares.

 

10.2.11.         
Organic Documents. Amend, modify or otherwise change any of its Organic Documents as in effect on the Closing Date,
except in connection with a transaction permitted under Section 10.2.9.

 

10.2.12.         
Tax Consolidation. File or consent to the filing of any consolidated income tax return with any Person other than
Parent and its Subsidiaries.

 

10.2.13.         
Accounting Changes. Make any material change in accounting treatment or reporting practices, except as required by
GAAP and in accordance with Section 1.2; or change its Fiscal Year.

 

10.2.14.         
Restrictive Agreements. Become a party to any Restrictive Agreement, except a Restrictive Agreement (a) in effect
on the Closing Date; (b) relating to secured Debt permitted hereunder, as long as the restrictions apply only to collateral for
such Debt; or (c) constituting customary restrictions on assignment in leases and other contracts.

 

10.2.15.         
Hedging Agreements. Enter into any Hedging Agreement, except to hedge risks arising in the Ordinary Course of Business
and not for speculative purposes.

 

10.2.16.         
Conduct of Business. Engage in any business, other than its business as conducted on the Closing Date and any activities
incidental thereto.

 

10.2.17.         
Affiliate Transactions. Enter into or be party to any transaction with an Affiliate, except (a) transactions expressly
permitted by the Loan Documents; (b) payment of reasonable compensation to officers and employees for services actually rendered,
and payment of customary directors’ fees and indemnities; (c) transactions with Affiliates consummated prior to the Closing
Date, as shown on Schedule 10.2.17; (d) payment of a management fee to Parent so long as the aggregate amount of such fees
paid in any Fiscal Year does not exceed $100,000 and no Event of Default exists immediately before and after giving effect to the
payment of any such fee; (e) purchase of Vehicle Contracts by Colonial from ACM and TCM on the last day of each month and on terms
disclosed to, and approved by, Agent as of the Closing Date; provided, that if Borrowing Base Reports are delivered more
frequently than on a monthly basis, immediately prior to the delivery of each Borrowing Base Report, Colonial shall purchase all
new Vehicle Contracts originated by ACM and TCM after the delivery of the prior Borrowing Base Report; (f) transactions provided
under the Contracts Servicing Agreement; (g) charge a management fee to ACM, (h) pay the actual rent, lease and other office expenses
of ACM, and (i) transactions with Affiliates in the Ordinary Course of Business, upon fair and reasonable terms fully disclosed
to Agent and no less favorable than would be obtained in a comparable arm’s-length transaction with a non-Affiliate.

 

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10.2.18.         
Plans. Become party to any Multiemployer Plan, other than any in existence on the Closing Date.

 

10.2.19.         
Amendments to Other Debt. Amend, supplement or otherwise modify any document, instrument or agreement relating to
any Subordinated Debt or the Existing ACM-TCM Credit Agreement or any documents, instruments or agreement relating thereto.

 

10.2.20.         
Reporting Methodology. Amend or modify the methodology employed by Parent or its Subsidiaries in preparing its accounting
and financial reports relating to the presentation of (i) the delinquency of Vehicle Contracts, (ii) the repossession
of Vehicles, (iii) the charge-off of delinquent Vehicle Contracts, and (iv) the unearned insurance commissions and dealer
discounts from the methodology employed by Parent and its Subsidiaries as of the Closing Date so as to change the consistency of
the information with respect to such items, from time to time, provided to Agent.

 

10.2.21.         
Contract Forms. Use or acquire in its business Contracts which are not on the printed forms previously approved in
writing by Agent, and Borrowers shall not change or vary the printed forms of such Contracts without Agent’s prior written
consent, unless such change or variation is required by any requirement of law. Agent may reasonably withhold its consent until
Agent receives a satisfactory opinion of Borrowers’ counsel regarding compliance of the revised form of Contract with any
Applicable Law.

 

10.2.22.         
Credit Guidelines. Make any changes in the Credit Guidelines which were provided to and reviewed by Agent and Lenders
prior to the Closing Date without prior written notice to Agent (it being understood and agreed that Agent may lower advance rates,
establish Availability Reserves or adjust the criteria of ineligibility in the definition of “Eligible Contracts” based
on (and reasonably related to) such change in the Credit Guidelines).

 

10.2.23.         
Service Contracts. To the extent that any Borrower offers so-called “service contracts”, Borrowers shall
ensure that the cost of such service contracts are disclosed to the Contract Debtors and such service contracts are in compliance
with all applicable consumer credit laws, including any and all special laws relating thereto.

 

10.2.24.         
Purchase of Vehicle Contracts. Colonial shall not purchase Vehicle Contracts from any Person except ACM and TCM without
the prior written consent of Agent.

 

10.2.25.         
Sale of Vehicle Contract. ACM and TCM shall not sell any Vehicle Contract to any Person except Colonial without the
prior written consent of Agent.

 

10.2.26.         
Reserved.

 

10.2.27.         
Contracts Servicing Agreement: Modify, amend, or terminate the Contracts Servicing Agreement without consent from
the Agent.

 

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10.3.       
Financial Covenants. As long as any Revolver Commitments or Obligations are outstanding, Parent shall, on a consolidated
basis with its Subsidiaries:

 

10.3.1.             
Leverage Ratio. Maintain a Leverage Ratio not greater than 2.50:1.00, determined as of the end of each month measured
on a trailing 12 month basis.

 

10.3.2.             
Fixed Charge Coverage Ratio. Maintain a Fixed Charge Coverage Ratio of at least 1.00:1.00, measured on a trailing
6 month basis as of the end of each month ending during or immediately before the occurrence of a Covenant Trigger Event.

 

10.4.       
Adjustment to EBITDA and Adjusted Tangible Net Worth. In the event the Colonial TTM Net Charge-Offs Percent is
greater than the product of Colonial’s then existing Colonial Loss Reserve Percent multiplied by 120%, Agent shall deduct
the product of the Colonial Loss Reserve Adjustment Percent multiplied by the Colonial Net Balance from Adjusted Tangible Net Worth
and EBITDA for covenant measurement purposes under Section 10.3. (As an example, if the Colonial TTM Net Charge-Offs Percent
equals 22%, the Colonial Loss Reserve Percent would have to be less than 18.333% (22% divided by 1.2) before any covenant adjustments
would be made).

 

SECTION 11   
EVENTS OF DEFAULT; REMEDIES ON DEFAULT

 

11.1.       
Events of Default. Each of the following shall be an “Event of Default” if it occurs for any
reason whatsoever, whether voluntary or involuntary, by operation of law or otherwise:

 

(a)               
Any Borrower fails to pay its Obligations when due (whether at stated maturity, on demand, upon acceleration or otherwise);

 

(b)              
Any representation, warranty or other written statement of an Obligor made in connection with any Loan Documents or transactions
contemplated thereby is incorrect or misleading in any material respect when given;

 

(c)               
Parent or a Subsidiary of Parent breaches or fails to perform any covenant contained in Section 7.2, 7.4, 7.6, 8.1, 8.2.4,
8.2.5, 8.6.2, 10.1.1, 10.1.2, 10.2 or 10.3;

 

(d)              
An Obligor breaches or fails to perform any other covenant contained in any Loan Documents, and such breach or failure is
not cured within 15 days after a Senior Officer of such Obligor has knowledge thereof or receives notice thereof from Agent, whichever
is sooner; provided, however, that such notice and opportunity to cure shall not apply if the breach or failure to
perform is not capable of being cured within such period or is a willful breach by an Obligor;

 

(e)               
A Guarantor repudiates, revokes or attempts to revoke its Guaranty; an Obligor or third party denies or contests the validity
or enforceability of any Loan Documents or Obligations, or the perfection or priority of any Lien granted to Agent; or any Loan
Document ceases to be in full force or effect for any reason (other than a waiver or release by Agent and Lenders);

 

(f)               
Any breach or default of an Obligor occurs under any Hedging Agreement, other document, instrument or agreement to which
it is a party or by which it or any of its Properties is bound, relating to any Debt (other than the Obligations and the Intercompany
Subordinated Debt) in excess of $2,000,000;

 

(g)               
Any judgment or order for the payment of money is entered against an Obligor in an amount that exceeds, individually or
cumulatively with all unsatisfied judgments or orders against all Obligors, $1,000,000 (net of insurance coverage that has not
been denied by the insurer), unless a stay of enforcement of such judgment or order is in effect;

 

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(h)              
A loss, theft, damage or destruction occurs with respect to any Collateral if the amount not covered by insurance exceeds
$1,500,000;

 

(i)                
An Obligor is enjoined, restrained or in any way prevented by any Governmental Authority from conducting any material part
of its business; an Obligor suffers the loss, revocation or termination of any material license, permit, lease or agreement necessary
to its business; there is a cessation of any material part of an Obligor’s business for a material period of time; any material
Collateral or Property of an Obligor is taken or impaired through condemnation; an Obligor agrees to or commences any liquidation,
dissolution or winding up of its affairs; or an Obligor is not Solvent;

 

(j)                
An Insolvency Proceeding is commenced by an Obligor; an Obligor makes an offer of settlement, extension or composition to
its unsecured creditors generally; a trustee is appointed to take possession of any substantial Property of or to operate any of
the business of an Obligor; or an Insolvency Proceeding is commenced against an Obligor and: the Obligor consents to institution
of the proceeding, the petition commencing the proceeding is not timely contested by the Obligor, the petition is not dismissed
within 30 days after filing, or an order for relief is entered in the proceeding;

 

(k)              
An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan that has resulted or could reasonably be expected
to result in liability of an Obligor to a Pension Plan, Multiemployer Plan or PBGC, or that constitutes grounds for appointment
of a trustee for or termination by the PBGC of any Pension Plan or Multiemployer Plan; an Obligor or ERISA Affiliate fails to pay
when due any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan;

 

(l)                
An Obligor or any of its Senior Officers is criminally indicted or convicted for (i) a felony committed in the conduct of
the Obligor’s business, or (ii) violating any state or federal law (including the Controlled Substances Act, Money Laundering
Control Act of 1986 and Illegal Exportation of War Materials Act) that could lead to forfeiture of any material Property or any
Collateral;

 

(m)            
A Change of Control occurs; or any event occurs or condition exists that has a Material Adverse Effect; or

 

(n)              
The failure of any Vehicle Contract to comply with the Vehicle Contract Compliance Requirements, except with respect to
existing Vehicle Contracts which have been received and reviewed by the Agent and which do not constitute material non-compliance
with the Vehicle Contract Compliance Requirements.

 

11.2.       
Remedies upon Default. If an Event of Default described in Section 11.1(j) occurs with respect to any
Borrower, then to the extent permitted by Applicable Law, all Obligations (other than Secured Bank Product Obligations) shall become
automatically due and payable and all Revolver Commitments shall terminate, without any action by Agent or notice of any kind.
In addition, or if any other Event of Default exists, Agent may in its discretion (and shall upon written direction of Required
Lenders) do any one or more of the following from time to time:

 

(a)               
declare any Obligations (other than Secured Bank Product Obligations) immediately due and payable, whereupon they shall
be due and payable without diligence, presentment, demand, protest or notice of any kind, all of which are hereby waived by Borrowers
to the fullest extent permitted by law;

 

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(b)              
terminate, reduce or condition any Revolver Commitment or adjust the Borrowing Base;

 

(c)               
require Obligors to Cash Collateralize their LC Obligations, Secured Bank Product Obligations and other Obligations that
are contingent or not yet due and payable, and, if Obligors fail to deposit such Cash Collateral, Agent may (and shall upon the
direction of Required Lenders) advance the required Cash Collateral as Revolver Loans (whether or not an Overadvance exists or
is created thereby, or the conditions in Section 6 are satisfied); and

 

(d)              
exercise any other rights or remedies afforded under any agreement, by law, at equity or otherwise, including the rights
and remedies of a secured party under the UCC. Such rights and remedies include the rights to (i) take possession of any Collateral;
(ii) require Borrowers to assemble Collateral, at Borrowers’ expense, and make it available to Agent at a place designated
by Agent; (iii) enter any premises where Collateral is located and store Collateral on such premises until sold (and if the premises
are owned or leased by a Borrower, Borrowers agree not to charge for such storage); and (iv) sell or otherwise dispose of any Collateral
in its then condition, or after any further manufacturing or processing thereof, at public or private sale, with such notice as
may be required by Applicable Law, in lots or in bulk, at such locations, all as Agent, in its discretion, deems advisable. Each
Borrower agrees that 10 days notice of any proposed sale or other disposition of Collateral by Agent shall be reasonable and that
any sale conducted on the internet or to a licensor of Intellectual Property shall be commercially reasonable. Agent may conduct
sales on any Obligor’s premises, without charge, and any sale may be adjourned from time to time in accordance with Applicable
Law. Agent shall have the right to sell, lease or otherwise dispose of any Collateral for cash, credit or any combination thereof,
and Agent may purchase any Collateral at public or, if permitted by law, private sale and, in lieu of actual payment of the purchase
price, may credit bid and set off the amount of such price against the Obligations.

 

11.3.       
License. Agent is hereby granted an irrevocable, non-exclusive license or other right to use, license or sub-license
(without payment of royalty or other compensation to any Person) any or all Intellectual Property of Borrowers, computer hardware
and software, trade secrets, brochures, customer lists, promotional and advertising materials, labels, packaging materials and
other Property, in advertising for sale, marketing, selling, collecting, completing manufacture of, or otherwise exercising any
rights or remedies with respect to, any Collateral. Borrowers’ rights and interests under Intellectual Property shall inure
to Agent’s benefit.

 

11.4.       
Setoff. At any time during an Event of Default, Agent, Issuing Bank, Lenders, and any of their Affiliates are
authorized, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time
or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time
owing by Agent, Issuing Bank, such Lender or such Affiliate to or for the credit or the account of an Obligor against its Obligations,
whether or not Agent, Issuing Bank, such Lender or such Affiliate shall have made any demand under this Agreement or any other
Loan Document and although such Obligations may be contingent or unmatured or are owed to a branch or office of Agent, Issuing
Bank, such Lender or such Affiliate different from the branch or office holding such deposit or obligated on such indebtedness.
The rights of Agent, Issuing Bank, each Lender and each such Affiliate under this Section are in addition to other rights and remedies
(including other rights of setoff) that such Person may have.

 

11.5.       
Remedies Cumulative; No Waiver.

 

11.5.1.             
Cumulative Rights. All agreements, warranties, guaranties, indemnities and other undertakings of Obligors under the
Loan Documents are cumulative and not in derogation of each other. The rights and remedies of Agent and Lenders under the Loan
Documents are cumulative, may be exercised at any time and from time to time, concurrently or in any order, and are not exclusive
of any other rights or remedies available by agreement, by law, at equity or otherwise. All such rights and remedies shall continue
in full force and effect until Full Payment of all Obligations.

 

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11.5.2.             
Waivers. No waiver or course of dealing shall be established by (a) the failure or delay of Agent, or any Lender
to require strict performance by any Obligor under any Loan Document, or to exercise any rights or remedies with respect to Collateral
or otherwise; (b) the making of any Revolver Loan or issuance of any Letter of Credit during a Default, Event of Default or other
failure to satisfy any conditions precedent; or (c) acceptance by Agent or any Lender of any payment or performance by an Obligor
under any Loan Documents in a manner other than that specified therein. Any failure to satisfy a financial covenant on a measurement
date shall not be cured or remedied by satisfaction of such covenant on a subsequent date.

 

SECTION 12   
AGENT

 

12.1.       
Appointment, Authority and Duties of Agent.

 

12.1.1.             
Appointment and Authority. Each Secured Party appoints and designates Bank of America as Agent under all Loan Documents.
Agent may, and each Secured Party authorizes Agent to, enter into all Loan Documents to which Agent is intended to be a party and
accept all Security Documents. Any action taken by Agent in accordance with the provisions of the Loan Documents, and the exercise
by Agent of any rights or remedies set forth therein, together with all other powers reasonably incidental thereto, shall be authorized
by and binding upon all Secured Parties. Without limiting the generality of the foregoing, Agent shall have the sole and exclusive
authority to (a) act as the disbursing and collecting agent for Lenders with respect to all payments and collections arising in
connection with the Loan Documents; (b) execute and deliver as Agent, each Loan Document, including any intercreditor or subordination
agreement, and accept delivery of each Loan Document; (c) act as collateral agent for Secured Parties for purposes of perfecting
and administering Liens under the Loan Documents, and for all other purposes stated therein; (d) manage, supervise or otherwise
deal with Collateral; and (e) take any Enforcement Action or otherwise exercise any rights or remedies with respect to any Collateral
or under any Loan Documents, Applicable Law or otherwise. Agent alone shall be authorized to determine whether any Contracts constitute
Eligible Vehicle Contracts, eligibility and applicable advance rates under the Borrowing Base, whether to impose or release any
reserve, or whether any conditions to funding or issuance of a Letter of Credit have been satisfied, which determinations and judgments,
if exercised in good faith, shall exonerate Agent from liability to any Secured Party or other Person for any error in judgment.

 

12.1.2.             
Duties. The title of “Agent” is used solely as a matter of market custom and the duties of Agent are
administrative in nature only. Agent has no duties except those expressly set forth in the Loan Documents, and in no event does
Agent have any agency, fiduciary or implied duty to or relationship with any Secured Party or other Person by reason of any Loan
Document or related transaction. The conferral upon Agent of any right shall not imply a duty on Agent’s part to exercise
such right, unless instructed to do so by Required Lenders in accordance with this Agreement.

 

12.1.3.             
Agent Professionals. Agent may perform its duties through agents and employees. Agent may consult with and employ
Agent Professionals, and shall be entitled to act upon, and shall be fully protected in any action taken in good faith reliance
upon, any advice given by an Agent Professional. Agent shall not be responsible for the negligence or misconduct of any agents,
employees, or Agent Professionals selected by it with reasonable care.

 

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12.1.4.             
Instructions of Required Lenders. The rights and remedies conferred upon Agent under the Loan Documents may be exercised
without the necessity of joinding of any other party, unless required by Applicable Law. In determining compliance with a condition
for any action hereunder, including satisfaction of any condition in Section 6, Agent may presume that the condition is
satisfactory to a Secured Party unless Agent has received notice to the contrary from such Secured Party before Agent takes the
action. Agent may request instructions from Required Lenders or other Secured Parties with respect to any act (including the failure
to act) in connection with any Loan Documents or Collateral, and may seek assurances to its satisfaction from Secured Parties of
their indemnification obligations against Claims that could be incurred by Agent. Agent may refrain from any act until it has received
such instructions or assurances, and shall not incur liability to any Person by reason of so refraining. Instructions of Required
Lenders shall be binding upon all Secured Parties, and no Secured Party shall have any right of action whatsoever against Agent
as a result of Agent acting or refraining from acting pursuant to instructions of Required Lenders. Notwithstanding the foregoing,
instructions by and consent of specific parties shall be required to the extent provided in Section 14.1.1. In no event
shall Agent be required to take any action that it determines in its discretion is contrary to Applicable Law or any Loan Documents
or could subject any Agent Indemnitee to liability.

 

12.2.       
Agreements Regarding Collateral and Field Examination Reports.

 

12.2.1.             
Lien Releases; Care of Collateral. Secured Parties authorize Agent to release any Lien on any Collateral (a) upon
Full Payment of the Obligations; (b) that is the subject of a disposition or Lien that Borrowers certify in writing is a Permitted
Asset Disposition or a Permitted Lien entitled to priority over Agent’s Liens (and Agent may rely conclusively on such certificate
without further inquiry); (c) that does not constitute a material part of the Collateral; or (d) subject to Section 14.1,
with the consent of Required Lenders. Secured Parties authorize Agent to subordinate its Liens to any Purchase Money Lien or other
Lien entitled to priority hereunder. Agent has no obligation to assure that any Collateral exists or is owned by an Obligor, or
is cared for, protected or insured, nor to assure that Agent's Liens have been properly created, perfected or enforced, or are
entitled to any particular priority, nor to exercise any duty of care with respect to any Collateral.

 

12.2.2.             
Possession of Collateral. Agent and Secured Parties appoint each Secured Party as agent (for the benefit of Secured
Parties) for the purpose of perfecting Liens in Collateral held or controlled by it, to the extent such Liens are perfected by
possession or control. If a Secured Party obtains possession or control of any Collateral, it shall notify Agent thereof and, promptly
upon Agent's request, deliver such Collateral to Agent or otherwise deal with it in accordance with Agent's instructions.

 

12.2.3.             
Reports. Agent shall promptly provide to Lenders, when complete, any field examination, audit or appraisal report
prepared for Agent with respect to any Obligor or Collateral including any such information complied prior to the Closing Date
("Report"). Reports and other Borrower Materials may be made available to Lenders by providing access to them
on the Platform, but Agent shall not be responsible for system failures or access issues that may occur from time to time. Each
Lender agrees (a) that Reports are not intended to be comprehensive audits or examinations, and that Agent or any other Person
performing an audit or examination will inspect only limited information and will rely significantly upon Borrowers' books, records
and representations; (b) that Agent makes no representation or warranty as to the accuracy or completeness of any Borrower Materials
and shall not be liable for any information contained in or omitted from any Borrower Materials, including any Report; and (c)
to keep all Borrower Materials confidential and strictly for such Lender's internal use, not to distribute any Report or other
Borrower Materials (or the contents thereof) to any Person (except to such Lender's Participants, attorneys and accountants), and
to use all Borrower Materials solely for administration of the Obligations. Each Lender shall indemnify and hold harmless Agent
and any other Person preparing a Report from any action such Lender may take as a result of or any conclusion it may draw from
any Borrower Materials, as well as from any Claims arising as a direct or indirect result of Agent furnishing same to such Lender,
via the Platform or otherwise, except for any Claims arising solely and directly from Agent’s gross negligence or wilful
misconduct. As of the Closing Date, the Agent intends to obtain at least one field audit and examination report per calendar year;
provided, that Agent may request more frequent field audit and examination reports in its discretion.

 

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12.3.       
Reliance By Agent. Agent shall be entitled to rely, and shall be fully protected in relying, upon any certification,
notice or other communication (including those by telephone, telex, telegram, telecopy, e-mail or other electronic means) believed
by it to be genuine and correct and to have been signed, sent or made by the proper Person.

 

12.4.       
Action Upon Default. Agent shall not be deemed to have knowledge of any Default or Event of Default, or of any
failure to satisfy any conditions in Section 6, unless it has received written notice from a Borrower or Required Lenders
specifying the occurrence and nature thereof. If a Lender acquires knowledge of a Default, Event of Default or failure of such
conditions, it shall promptly notify Agent and the other Lenders thereof in writing. Each Secured Party agrees that, except as
otherwise provided in any Loan Documents or with the written consent of Agent and Required Lenders, it will not take any Enforcement
Action, accelerate Obligations (other than Secured Bank Product Obligations), or to assert any rights relating to any Collateral.
Notwithstanding the foregoing, however, a Secured Party may take action to preserve or enforce its rights against an Obligor where
a deadline or limitation period is applicable that would, absent such action, bar enforcement of Obligations held by such Secured
Party, including the filing of proofs of claim in an Insolvency Proceeding.

 

12.5.       
Ratable Sharing. If any Lender obtains any payment or reduction of any Obligation, whether through set-off or
otherwise, in excess of its ratable share of such Obligation, such Lender shall forthwith purchase from Secured Parties participations
in the affected Obligation as are necessary to cause the purchasing Lender to share the excess payment or reduction on a Pro Rata
basis or in accordance with Section 5.6.2, as applicable. If any of such payment or reduction is thereafter recovered from
the purchasing Lender, the purchase shall be rescinded and the purchase price restored to the extent of such recovery, but without
interest. No Lender shall set off against a Dominion Account without Agent’s prior consent.

 

12.6.       
Indemnification. EACH SECURED PARTY SHALL INDEMNIFY AND HOLD HARMLESS AGENT INDEMNITEES AND ISSUING BANK INDEMNITEES,
TO THE EXTENT NOT REIMBURSED BY OBLIGORS, ON A PRO RATA BASIS, AGAINST ALL CLAIMS THAT MAY BE INCURRED BY OR ASSERTED AGAINST ANY
AGENT INDEMNITEE OR ISSUING BANK INDEMNITEE, PROVIDED THAT ANY CLAIM AGAINST AN AGENT INDEMNITEE RELATES TO OR ARISES FROM ITS
ACTING AS OR FOR AGENT (IN THE CAPACITY OF AGENT), AND ANY CLAIM AGAINST AN ISSUING BANK INDEMNITEE RELATES TO OR ARISES FROM ITS
ACTING AS OR FOR ISSUING BANK (IN THE CAPACITY OF ISSUING BANK) AND PROVIDED THAT SUCH CLAIMS DO NOT ARISE DIRECTLY AND SOLELY
FROM AGENT INDEMNITEES’ AND/OR BANK INDEMNITEES’ GROSS NEGLIGENCE OR WILFUL MISCONDUCT. In Agent’s discretion,
it may reserve for any Claims made against an Agent Indemnitee or Issuing Bank Indemnitee, and may satisfy any judgment, order
or settlement relating thereto, from proceeds of Collateral prior to making any distribution of Collateral proceeds to Secured
Parties. If Agent is sued by any receiver, trustee or other Person for any alleged preference or fraudulent transfer, then any
monies paid by Agent in settlement or satisfaction of such proceeding, together with all interest, costs and expenses (including
attorneys’ fees) incurred in the defense of same, shall be promptly reimbursed to Agent by each Secured Party to the extent
of its Pro Rata share.

 

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12.7.       
Limitation on Responsibilities of Agent. Agent shall not be liable to any Secured Party for any action taken
or omitted to be taken under the Loan Documents, except for losses directly and solely caused by Agent’s gross negligence
or willful misconduct. Agent does not assume any responsibility for any failure or delay in performance or any breach by any Obligor,
Lender or other Secured Party of any obligations under the Loan Documents. Agent does not make any express or implied representation,
warranty or guarantee to Secured Parties with respect to any Obligations, Collateral, Liens, Loan Documents or Obligor. No Agent
Indemnitee shall be responsible to Secured Parties for any recitals, statements, information, representations or warranties contained
in any Loan Documents or Borrower Materials; the execution, validity, genuineness, effectiveness or enforceability of any Loan
Documents; the genuineness, enforceability, collectability, value, sufficiency, location or existence of any Collateral, or the
validity, extent, perfection or priority of any Lien therein; the validity, enforceability or collectability of any Obligations;
or the assets, liabilities, financial condition, results of operations, business, creditworthiness or legal status of any Obligor
or Account Debtor. No Agent Indemnitee shall have any obligation to any Secured Party to ascertain or inquire into the existence
of any Default or Event of Default, the observance or performance by any Obligor of any terms of the Loan Documents, or the satisfaction
of any conditions precedent contained in any Loan Documents.

 

12.8.       
Successor Agent and Co-Agents.

 

12.8.1.             
Resignation; Successor Agent. Agent may resign at any time by giving at least 30 days written notice thereof to Lenders
and Borrowers. Required Lenders may appoint a successor that is (a) a Lender or Affiliate of a Lender; or (b) a financial institution
reasonably acceptable to Required Lenders and (provided no Default or Event of Default exists) Borrowers. If no successor is appointed
by the effective date of Agent’s resignation, then on such date, Agent may appoint a successor acceptable to it in its discretion
(which shall be a Lender unless no Lender accepts the role) or, in the absence of such appointment, Required Lenders shall automatically
assume all rights and duties of Agent. The successor Agent shall thereupon succeed to and become vested with all the powers and
duties of the retiring Agent without further act. The retiring Agent shall be discharged from its duties hereunder on the effective
date of its resignation, but shall continue to have all rights and protections available to Agent under the Loan Documents with
respect to actions, omissions, circumstances or Claims relating to or arising while it was acting or transferring responsibilities
as Agent or holding any Collateral on behalf of Secured Parties, including the indemnification set forth in Sections 12.6
and 14.2, and all rights and protections under this Section 12. Any successor to Bank of America by merger or acquisition
of stock or this loan shall continue to be Agent hereunder without further act on the part of any Secured Party or Obligor.

 

12.8.2.             
Co-Collateral Agent. If appropriate under Applicable Law, Agent may appoint a Person to serve as a co-collateral
agent or separate collateral agent under any Loan Document. Each right, remedy and protection intended to be available to Agent
under the Loan Documents shall also be vested in such agent. Every covenant and obligation necessary to the exercise thereof by
such agent shall run to and be enforceable by it as well as Agent. Secured Parties shall execute and deliver any instrument or
agreement that Agent may request to effect such appointment. If any such agent shall die, dissolve, become incapable of acting,
resign or be removed, then all the rights and remedies of the agent, to the extent permitted by Applicable Law, shall vest in and
be exercised by Agent until appointment of a new agent.

 

12.9.       
Due Diligence and Non-Reliance. Each Lender acknowledges and agrees that it has, independently and without reliance
upon Agent or any other Lenders, and based upon such documents, information and analyses as it has deemed appropriate, made its
own credit analysis of each Obligor and its own decision to enter into this Agreement and to fund Revolver Loans and participate
in LC Obligations hereunder. Each Secured Party has made such inquiries as it feels necessary concerning the Loan Documents, Collateral
and Obligors. Each Secured Party acknowledges and agrees that the other Secured Parties have made no representations or warranties
concerning any Obligor, any Collateral or the legality, validity, sufficiency or enforceability of any Loan Documents or Obligations.
Each Secured Party will, independently and without reliance upon any other Secured Party, and based upon such financial statements,
documents and information as it deems appropriate at the time, continue to make and rely upon its own credit decisions in making
Revolver Loans and participating in LC Obligations, and in taking or refraining from any action under any Loan Documents. Except
for notices, reports and other information expressly requested by a Lender or as otherwise provided herein, Agent not shall have
any duty or responsibility to provide any Secured Party with any notices, reports or certificates furnished to Agent by any Obligor
or any credit or other information concerning the affairs, financial condition, business or Properties of any Obligor (or any of
its Affiliates) which may come into possession of Agent or its Affiliates.

 

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12.10.   
Remittance of Payments and Collections.

 

12.10.1.         
Remittances Generally. Payments by any Secured Party to Agent shall be made by the time and date provided herein,
in immediately available funds. If no time for payment is specified or if payment is due on demand and request for payment is made
by Agent by 11:00 a.m. on a Business Day, then payment shall be made by the Secured Party by 2:00 p.m. on such day, and if request
is made after 11:00 a.m., then payment shall be made by 11:00 a.m. on the next Business Day. Payment by Agent to any Secured Party
shall be made by wire transfer, in the type of funds received by Agent. Any such payment shall be subject to Agent's right of offset
for any amounts due from such payee under the Loan Documents.

 

12.10.2.         
Failure to Pay. If any Secured Party fails to deliver when due any amount payable by it to Agent hereunder, such
amount shall bear interest, from the due date until paid in full, at the greater of the Federal Funds Rate or the rate determined
by Agent as customary for interbank compensation for two Business Days and thereafter at the Default Rate for Base Rate Revolver
Loans. In no event shall Borrowers be entitled to credit for any interest paid by a Secured Party to Agent, nor shall a Defaulting
Lender be entitled to interest on amounts held by Agent pursuant to Section 4.2.

 

12.10.3.         
Recovery of Payments. If Agent pays an amount to a Secured Party in the expectation that a related payment will be
received by Agent from an Obligor and such related payment is not received, then Agent may recover such amount from the Secured
Party. If Agent determines that an amount received by it must be returned or paid to an Obligor or other Person pursuant to Applicable
Law or otherwise, then Agent shall not be required to distribute such amount to any Secured Party. If Agent is required to return
any amounts applied by it to Obligations held by a Secured Party, such Secured Party shall pay to Agent, on demand, its
share of the amounts required to be returned.

 

12.11.   
Individual Capacities. As a Lender, Bank of America shall have the same rights and remedies under the Loan Documents
as any other Lender, and the terms "Lenders," "Required Lenders" or any similar term shall include Bank of
America in its capacity as a Lender. Agent, Lenders and their Affiliates may accept deposits from, maintain deposits or credit
balances for, invest in, lend money to, provide Bank Products to, act as trustee under indentures of, serve as financial or other
advisor to, and generally engage in any kind of business with, Obligors and their Affiliates, as if they were not Agent or Lenders
hereunder, without any duty to account therefor (including any fees or other consideration received in connection therewith) to
any Secured Party. In their individual capacities, Agent, Lenders and their Affiliates may receive information regarding Obligors,
their Affiliates and their Account Debtors (including information subject to confidentiality obligations), and shall have no obligation
to provide such information to any Secured Party.

 

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12.12.   
Titles. Each Lender, other than Bank of America, that is designated in connection with this credit facility as
an “Lead Arranger,” “Bookrunner”, “Book Manager”, “Administrative Agent” or “Agent”
of any kind shall have no right or duty under any Loan Documents other than those applicable to all Lenders, and shall in no event
have any fiduciary duty to any Secured Party.

 

12.13.   
Bank Product Providers. Each Secured Bank Product Provider, by delivery of a notice to Agent of a Bank Product,
agrees to be bound by the Loan Documents, including Sections 5.6, 14.3.3 and 12. Each Secured Bank Product
Provider shall indemnify and hold harmless Agent Indemnitees, to the extent not reimbursed by Obligors, against all Claims that
may be incurred by or asserted against any Agent Indemnitee in connection with such provider's Secured Bank Product Obligations.

 

12.14.   
No Third Party Beneficiaries. This Section 12 is an agreement solely among Secured Parties and Agent,
and shall survive Full Payment of the Obligations. This Section 12 does not confer any rights or benefits upon Borrowers
or any other Person. As between Borrower and Agent, any action that Agent may take under any Loan Documents or with respect to
any Obligations shall be conclusively presumed to have been authorized and directed by Secured Parties.

 

SECTION 13   
BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS

 

13.1.       
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of Borrowers, Agent, Lenders,
Secured Parties, and their respective successors and assigns, except that (a) no Borrower shall have the right to assign its rights
or delegate its obligations under any Loan Documents; and (b) any assignment by a Lender must be made in compliance with Section
13.3. Agent may treat the Person which made any Revolver Loan as the owner thereof for all purposes until such Person makes
an assignment in accordance with Section 13.3. Any authorization or consent of a Lender shall be conclusive and binding
on any subsequent transferee or assignee of such Lender.

 

13.2.       
Participations.

 

13.2.1.             
Permitted Participants; Effect. Subject to Section 13.3.3, any Lender may sell to a financial institution
(“Participant”) a participating interest in the rights and obligations of such Lender under any Loan Documents.
Despite any sale by a Lender of participating interests to a Participant, such Lender’s obligations under the Loan Documents
shall remain unchanged, it shall remain solely responsible to the other parties hereto for performance of such obligations, it
shall remain the holder of its Revolver Loans and Revolver Commitments for all purposes, all amounts payable by Borrowers shall
be determined as if it had not sold such participating interests, and Borrowers and Agent shall continue to deal solely and directly
with such Lender in connection with the Loan Documents. Each Lender shall be solely responsible for notifying its Participants
of any matters under the Loan Documents, and Agent and the other Lenders shall not have any obligation or liability to any such
Participant. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section
5.9 unless Borrowers agree otherwise in writing.

 

13.2.2.             
Voting Rights. Each Lender shall retain the sole right to approve, without the consent of any Participant, any amendment,
waiver or other modification of a Loan Document other than that which forgives principal, interest or fees, reduces the stated
interest rate or fees payable with respect to any Revolver Loan or Revolver Commitment in which such Participant has an interest,
postpones the Revolver Commitment Termination Date or any date fixed for any regularly scheduled payment of principal, interest
or fees on such Revolver Loan or Revolver Commitment, or releases any Borrower, Guarantor or substantially all Collateral.

 

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13.2.3.             
Participant Register. Each Lender that sells a participation shall, acting as a non-fiduciary agent of Borrowers
(solely for tax purposes), maintain a register in which it enters the Participant's name, address and interest in Revolver Commitments,
Revolver Loans (and stated interest) and LC Obligations. Entries in the register shall be conclusive, absent manifest error, and
such Lender shall treat each Person recorded in the register as the owner of the participation for all purposes, notwithstanding
any notice to the contrary. No Lender shall have an obligation to disclose any information in such register except to the extent
necessary to establish that a Participant's interest is in registered form under the Code.

 

13.2.4.             
Benefit of Set-Off. Each Participant shall have a right of set-off in respect of its participating interest to the
same extent as if such interest were owing directly to a Lender, and each Lender shall also retain the right of set-off with respect
to any participating interests sold by it. By exercising any right of set-off, a Participant agrees to share with Lenders all amounts
received through its set-off, in accordance with Section 12.5 as if such Participant were a Lender.

 

13.3.       
Assignments.

 

13.3.1.             
Permitted Assignments. A Lender may assign to an Eligible Assignee any of its rights and obligations under the Loan
Documents, as long as (a) each assignment is of a constant, and not a varying, percentage of the transferor Lender’s rights
and obligations under the Loan Documents and, in the case of a partial assignment, is in a minimum principal amount of $5,000,000
(unless otherwise agreed by Agent in its discretion) and integral multiples of $500,000 in excess of that amount; (b) except in
the case of an assignment in whole of a Lender’s rights and obligations, the aggregate amount of the Revolver Commitments
retained by the transferor Lender is at least $10,000,000 (unless otherwise agreed by Agent in its discretion); and (c) the parties
to each such assignment shall execute and deliver an Assignment to Agent for acceptance and recording. Nothing herein shall limit
the right of a Lender to pledge or assign any rights under the Loan Documents to secure obligations of such Lender, including a
pledge or assignment to a Federal Reserve Bank; provided, however, that no such pledge or assignment shall release
the Lender from its obligations hereunder nor substitute the pledge or assignee for such Lender as a party hereto.

 

13.3.2.             
Effect; Effective Date. Upon delivery to Agent of an assignment notice in the form of Exhibit D and a processing
fee of $3,500 (unless otherwise agreed by Agent in its discretion), the assignment shall become effective as specified in the notice,
if it complies with this Section 13.3. From such effective date, the Eligible Assignee shall for all purposes be a Lender
under the Loan Documents, and shall have all rights and obligations of a Lender thereunder. Upon consummation of an assignment,
the transferor Lender, Agent and Borrowers shall make appropriate arrangements for issuance of replacement and/or new Revolver
Notes, as applicable. The transferee Lender shall comply with Section 5.10 and deliver, upon request, an administrative
questionnaire satisfactory to Agent.

 

13.3.3.             
Certain Assignees. No assignment or participation may be made to a Borrower, Affiliate of a Borrower, Defaulting
Lender or natural person. Agent shall have no obligation to determine whether any assignment is permitted under the Loan Documents.
Any assignment by a Defaulting Lender must be accompanied by satisfaction of its outstanding obligations under the Loan Documents
in a manner satisfactory to Agent, including payment by the Defaulting Lender or Eligible Assignee of an amount sufficient upon
distribution (through direct payment, purchases of participations or other methods acceptable to Agent in its discretion) to satisfy
all funding and payment liabilities of the Defaulting Lender. If any assignment by a Defaulting Lender (by operation of law or
otherwise) does not comply with the foregoing, the assignee shall be deemed a Defaulting Lender for all purposes until compliance
occurs.

 

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13.3.4.             
Register. Agent, acting as a non-fiduciary agent of Borrowers (solely for tax purposes), shall maintain (a) a copy
(or electronic equivalent) of each Assignment and Acceptance delivered to it, and (b) a register for recordation of the names,
addresses and Commitments of, and the Loans, interest and LC Obligations owing to, each Lender. Entries in the register shall be
conclusive, absent manifest error, and Borrowers, Agent and Lenders shall treat each Person recorded in such register as a Lender
for all purposes under the Loan Documents, notwithstanding any notice to the contrary. Agent may choose to show only one Borrower
as the borrower in the register, without any effect on the liability of any Obligor with respect to the Obligations. The register
shall be available for inspection by Borrowers or any Lender, from time to time upon reasonable notice.

 

13.4.       
Replacement of Certain Lenders. If a Lender (a) within the last 120 days failed to give its consent to any amendment,
waiver or action for which consent of all Lenders was required and Required Lenders consented, (b) is a Defaulting Lender, or (c)
within the last 120 days gave a notice under Section 3.5 or requested payment or compensation under Section 3.7 or
5.9 (and has not designated a different Lending Office pursuant to Section 3.8), then Agent or Borrowers may, upon
10 days notice to such Lender, require it to assign its rights and obligations under the Loan Documents to Eligible Assignee(s),
pursuant to appropriate Assignment(s), within 20 days after the notice. Agent is irrevocably appointed as attorney-in-fact to execute
any such Assignment if the Lender fails to execute it. Such Lender shall be entitled to receive, in cash, concurrently with such
assignment, all amounts owed to it under the Loan Documents through the date of assignment.

 

SECTION 14   
MISCELLANEOUS

 

14.1.       
Consents, Amendments and Waivers.

 

14.1.1.             
Amendment. No modification of any Loan Document, including any extension or amendment of a Loan Document or any waiver
of a Default or Event of Default, shall be effective without the prior written agreement of Required Lenders and each Obligor party
to such Loan Document; provided, however, that

 

(a)               
without the prior written consent of Agent, no modification shall alter any provision in a Loan Document that relates to
any rights, duties or discretion of Agent;

 

(b)              
without the prior written consent of Issuing Bank, no modification shall alter Section 2.3 or any other provision
in a Loan Document that relates to Letters of Credit or any rights, duties or discretion of Issuing Bank;

 

(c)               
without the prior written consent of each affected Lender, no modification shall (i) increase the Revolver Commitment of
such Lender; (ii) reduce the amount of, or waive or delay payment of, any principal, interest or fees payable to such Lender; or
(iii) extend the Colonial Revolver Termination Date or ACM-TCM Revolver Termination Date;

 

(d)              
without the prior written consent of all Lenders (except any Defaulting Lender), no modification shall (i) alter Section
5.6.2, 7.1 (except to add Collateral) or 14.1.1; (ii) amend the definition of Borrowing Base (or any defined
term used in such definition), Pro Rata or Required Lenders; (iii) increase any advance rate; (iv) release all or substantially
all of the Collateral; or (v) except in connection with a merger, disposition or similar transaction expressly permitted hereby,
release any Obligor from liability for any Obligations; and

 

(e)               
without the prior written consent of a Secured Bank Product Provider, no modification shall affect its relative payment
priority under Section 5.6.2.

 

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14.1.2.             
Limitations. The agreement of Borrowers shall not be required for any modification of a Loan Document that deals
solely with the rights and duties of Lenders, Agent and/or Issuing Bank as among themselves. Only the consent of the parties to
any agreement relating to fees or a Bank Product shall be required for modification of such agreement, and no Bank Product provider
(in such capacity) shall have any right to consent to modification of any Loan Document other than its Bank Product agreement.
Any waiver or consent granted by Agent or Lenders hereunder shall be effective only if in writing and only for the matter specified.

 

14.1.3.             
Payment for Consents. No Borrower will, directly or indirectly, pay any remuneration or other thing of value, whether
by way of additional interest, fee or otherwise, to any Lender (in its capacity as a Lender hereunder) as consideration for agreement
by such Lender with any modification of any Loan Documents, unless such remuneration or value is concurrently paid, on the same
terms, on a Pro Rata basis to all Lenders providing their consent.

 

14.2.       
Indemnity. EACH BORROWER SHALL INDEMNIFY AND HOLD HARMLESS THE INDEMNITEES AGAINST ANY CLAIMS THAT MAY BE
INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE, INCLUDING CLAIMS ASSERTED BY ANY OBLIGOR OR OTHER PERSON OR ARISING FROM THE NEGLIGENCE
OF AN INDEMNITEE. In no event shall any party to a Loan Document have any obligation thereunder to indemnify or hold harmless
an Indemnitee with respect to a Claim that is determined in a final, non-appealable judgment by a court of competent jurisdiction
to result from the gross negligence or willful misconduct of such Indemnitee.

 

14.3.       
Notices and Communications.

 

14.3.1.             
Notice Address. Subject to Section 14.3.2, all notices and other communications by or to a party hereto shall
be in writing and shall be given to any Borrower, at such Borrower’s address shown on the signature pages hereof, and to
any other Person at its address shown on the signature pages hereof (or, in the case of a Person who becomes a Lender after the
Closing Date, at the address shown on its Assignment), or at such other address as a party may hereafter specify by notice in accordance
with this Section 14.3. Each such notice or other communication shall be effective only (a) if given by facsimile transmission,
when transmitted to the applicable facsimile number, if confirmation of receipt is received; (b) if given by mail, 3 Business Days
after deposit in the U.S. mail, with first-class postage pre-paid, addressed to the applicable address; (c) if given by a nationally
recognized overnight courier service, one (1) Business Day after being deposited with the overnight courier service, or (d) if
given by personal delivery, when duly delivered to the notice address with receipt acknowledged. Notwithstanding the foregoing,
no notice to Agent pursuant to Section 2.1.4, 2.3, 3.1.2, 4.1.1 or 5.3.3 shall be effective until actually received
by the individual to whose attention at Agent such notice is required to be sent. Any written communication that is not sent in
conformity with the foregoing provisions shall nevertheless be effective on the date actually received by the noticed party. Any
notice received by any Borrower shall be deemed received by all Borrowers.

 

14.3.2.             
Communications. Electronic mail and telephonic communications (including e-mail, messaging, voice mail and websites)
may be used only in a manner acceptable to Agent. Secured Parties make no assurance as to the privacy or security of electronic
or telephonic communications. E-mail and voice mail shall not be effective notices under the Loan Documents.

 

14.3.3.             
Platform. Borrower Materials shall be delivered pursuant to procedures approved by Agent, including electronic delivery
(if possible) upon request by Agent to an electronic system maintained by Agent ("Platform"). Borrowers shall
notify Agent of each posting of Borrower Materials on the Platform and the materials shall be deemed received by Agent only upon
its receipt of such notice. Borrower Materials and other information relating to this credit facility may be made available to
Secured Parties on the Platform. The Platform is provided "as is" and "as available." Agent does not warrant
the accuracy or completeness of any information on the Platform nor the adequacy or functioning of the Platform, and expressly
disclaims liability for any errors or omissions in the Borrower Materials or any issues involving the Platform. NO WARRANTY OF
ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT
OF THIRD PARTY RIGHTS, OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY AGENT WITH RESPECT TO BORROWER MATERIALS OR THE
PLATFORM. No Agent Indemnitee shall have any liability to Borrowers, Secured Parties or any other Person for losses, claims, damages,
liabilities or expenses of any kind (whether in tort, contract or otherwise) relating to use by any Person of the Platform, including
any unintended recipient, nor for delivery of Borrower Materials and other information via the Platform, internet, e-mail, or any
other electronic platform or messaging system.

 

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14.3.4.             
Public Information. Obligors and Secured Parties acknowledge that "public" information may not be segregated
from material non-public information on the Platform. Secured Parties acknowledge that Borrower Materials may include Obligors'
material non-public information, and should not be made available to personnel who do not wish to receive such information or may
be engaged in investment or other market-related activities with respect to an Obligor's securities.

 

14.3.5.             
Non-Conforming Communications. Agent and Lenders may rely upon any communications purportedly given by or on behalf
of any Borrower even if they were not made in a manner specified herein, were incomplete or were not confirmed, or if the terms
thereof, as understood by the recipient, varied from a later confirmation. Each Borrower shall indemnify and hold harmless each
Indemnitee from any liabilities, losses, costs and expenses arising from any electronic or telephonic communication purportedly
given by or on behalf of a Borrower.

 

14.4.       
Performance of Borrowers’ Obligations. Agent may, in its discretion at any time and from time to time,
at Borrowers’ expense, pay any amount or do any act required of a Borrower under any Loan Documents or otherwise lawfully
requested by Agent to (a) enforce any Loan Documents or collect any Obligations; (b) protect, insure, maintain or realize upon
any Collateral; or (c) defend or maintain the validity or priority of Agent’s Liens in any Collateral, including any payment
of a judgment, insurance premium, warehouse charge, finishing or processing charge, or landlord claim, or any discharge of a Lien.
All payments, costs and expenses (including Extraordinary Expenses) of Agent under this Section shall be reimbursed to Agent by
Borrowers, on demand, with interest from the date incurred until paid in full, at the Default Rate applicable to Base Rate
Revolver Loans. Any payment made or action taken by Agent under this Section shall be without prejudice to any right to assert
an Event of Default or to exercise any other rights or remedies under the Loan Documents.

 

14.5.       
Credit Inquiries. Agent and Lenders may (but shall have no obligation) to respond to usual and customary credit
inquiries from third parties concerning Parent or any of its Subsidiaries.

 

14.6.       
Severability. Wherever possible, each provision of the Loan Documents shall be interpreted in such manner as
to be valid under Applicable Law. If any provision is found to be invalid under Applicable Law, it shall be ineffective only to
the extent of such invalidity and the remaining provisions of the Loan Documents shall remain in full force and effect.

 

14.7.       
Cumulative Effect; Conflict of Terms. The provisions of the Loan Documents are cumulative. The parties acknowledge
that the Loan Documents may use several limitations or measurements to regulate similar matters, and they agree that these are
cumulative and that each must be performed as provided. Except as otherwise provided in another Loan Document (by specific reference
to the applicable provision of this Agreement), if any provision contained herein is in direct conflict with any provision in another
Loan Document, the provision herein shall govern and control.

 

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14.8.       
Counterparts; Execution. Any Loan Document may be executed in counterparts, each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Agreement shall become effective when Agent
has received counterparts bearing the signatures of all parties hereto. Agent may (but shall have no obligation to) accept any
signature, contract formation or record-keeping through electronic means, which shall have the same legal validity and enforceability
as manual or paper-based methods, to the fullest extent permitted by Applicable Law, including the Federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any similar state law based on
the Uniform Electronic Transactions Act. Upon request by Agent, any electronic signature or delivery shall be promptly followed
by a manually executed or paper document.

 

14.9.       
Entire Agreement. Time is of the essence with respect to all Loan Documents and Obligations. The Loan Documents
constitute the entire agreement, and supersede all prior understandings and agreements, among the parties relating to the subject
matter thereof.

 

14.10.   
Relationship with Lenders. The obligations of each Lender hereunder are several, and no Lender shall be responsible
for the obligations or Revolver Commitments of any other Lender. Amounts payable hereunder to each Lender shall be a separate and
independent debt. It shall not be necessary for Agent or any other Lender to be joined as an additional party in any proceeding
for such purposes. Nothing in this Agreement and no action of Agent, Lenders or any other Secured Party pursuant to the Loan Documents
or otherwise shall be deemed to constitute Agent and any Secured Party to be a partnership, joint venture or similar arrangement,
nor to constitute control of any Borrower.

 

14.11.   
No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated by any
Loan Document, Borrowers acknowledges and agrees that (a)(i) this credit facility and any arranging or other services by Agent,
any Lender, any of their Affiliates or any arranger are arm’s-length commercial transactions between Borrowers and their
Affiliates, on one hand, and Agent, any Lender, any of their Affiliates or any arranger, on the other hand; (ii) Borrowers have
consulted their own legal, accounting, regulatory and tax advisors to the extent they have deemed appropriate; and (iii) Borrowers
are capable of evaluating and understanding, and do understand and accept, the terms, risks and conditions of the transactions
contemplated by the Loan Documents; (b) each of Agent, Lenders, their Affiliates and any arranger is and has been acting solely
as a principal in connection with this credit facility, is not the financial advisor, agent or fiduciary for Borrowers, their Affiliates
or any other Person, and has no obligation with respect to the transactions contemplated by the Loan Documents except as expressly
set forth therein; and (c) Agent, Lenders, their Affiliates and any arranger may be engaged in a broad range of transactions that
involve interests that differ from those of Borrowers and their Affiliates, and have no obligation to disclose any of such interests
to Borrowers or their Affiliates. To the fullest extent permitted by Applicable Law, each Borrower hereby waives and releases any
claims that it may have against Agent, Lenders, their Affiliates and any arranger with respect to any breach or alleged breach
of agency or fiduciary duty in connection with any aspect of any transaction contemplated by a Loan Document.

 

14.12.   
Confidentiality. Each of Agent, Lenders and Issuing Bank shall maintain the confidentiality of all Information
(as defined below), except that Information may be disclosed (a) to its Affiliates, and to its and their partners, directors, officers,
employees, agents, advisors and representatives (provided they are informed of the confidential nature of the Information and instructed
to keep it confidential); (b) to the extent requested by any governmental, regulatory or self-regulatory authority purporting to
have jurisdiction over it or its Affiliates; (c) to the extent required by Applicable Law or by any subpoena or other legal process;
(d) to any other party hereto; (e) in connection with any action or proceeding relating to any Loan Documents or Obligations; (f)
subject to an agreement containing provisions substantially the same as this Section, to any Transferee or any actual or prospective
party (or its advisors) to any Bank Product or to any swap, derivative or other transaction under which payments are to be made
by reference to an Obligor or Obligor's obligations; (g) to the extent such Information (i) becomes publicly available other than
as a result of a breach of this Section or (ii) is available to Agent, any Lender, Issuing Bank or any of their Affiliates on a
nonconfidential basis from a source other than Borrowers (h) on a confidential basis to a provider of a Platform; or (i) with the
consent of applicable Borrower. Notwithstanding the foregoing, Agent and Lenders may publish or disseminate general information
concerning this credit facility for league table, tombstone and advertising purposes, and may use Borrowers' logos, trademarks
or product photographs in advertising materials. As used herein, "Information" means information received from
an Obligor or Subsidiary relating to it or its business that is identified as confidential when delivered. A Person required to
maintain the confidentiality of Information pursuant to this Section shall be deemed to have complied if it exercises a degree
of care similar to that accorded its own confidential information. Each of Agent, Lenders and Issuing Bank acknowledges that (i)
Information may include material non-public information; (ii) it has developed compliance procedures regarding the use of such
information; and (iii) it will handle the material non-public information in accordance with Applicable Law.

 

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14.13.   
[RESERVED].

 

14.14.   
GOVERNING LAW. UNLESS EXPRESSLY PROVIDED IN ANY LOAN DOCUMENT, THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND
ALL CLAIMS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES EXCEPT
FEDERAL LAWS RELATING TO NATIONAL BANKS.

 

14.15.   
Consent to Forum; Judicial Reference; Bail-In of EEA Financial Institutions.

 

14.15.1.         
Forum. EACH BORROWER HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE COURT SITTING IN LOS ANGELES COUNTY,
CALIFORNIA OR THE UNITED STATES DISTRICT COURT OF THE CENTRAL DISTRICT OF CALIFORNIA, IN ANY DISPUTE, ACTION, LITIGATION OR OTHER
PROCEEDING RELATING IN ANY WAY TO ANY LOAN DOCUMENTS, AND AGREES THAT ANY DISPUTE, ACTION, LITIGATION OR OTHER PROCEEDING SHALL
BE BROUGHT BY IT SOLELY IN ANY SUCH COURT. EACH BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES ALL CLAIMS, OBJECTIONS AND DEFENSES
THAT IT MAY HAVE REGARDING ANY SUCH COURT'S PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE OR INCONVENIENT FORUM. EACH PARTY HERETO
IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED
FOR NOTICES IN SECTION 14.3.1. A final judgment in any proceeding of any such court shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or any other manner provided by Applicable Law.

 

14.15.2.         
Other Jurisdiction. Nothing herein shall limit the right of Agent or any Lender to bring proceedings against any
Obligor in any other court, nor limit the right of any party to serve process in any other manner permitted by Applicable Law.
Nothing in this Agreement shall be deemed to preclude enforcement by Agent of any judgment or order obtained in any forum or jurisdiction.

 

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14.15.3.         
Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in
any Loan Document or in any other agreement, arrangement or understanding among the parties, each party hereto (including each
Secured Party) acknowledges that any liability arising under a Loan Document of any Secured Party that is an EEA Financial Institution,
to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority,
and agrees and consents to, and acknowledges and agrees to be bound by, (a) the application of any Write-Down and Conversion Powers
by an EEA Resolution Authority to any such liabilities arising under any Loan Documents which may be payable to it by any Secured
Party that is an EEA Financial Institution; and (b) the effects of any Bail-in Action on any such liability, including (i) a reduction
in full or in part or cancellation of any such liability; (ii) a conversion of all, or a portion of, such liability into shares
or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be
issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu
of any rights with respect to any such liability under any Loan Document; or (iii) the variation of the terms of such liability
in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

14.15.4.         
Judicial Reference. If any action, litigation or proceeding relating to any Obligations or Loan Documents is filed
in a court sitting in or applying the laws of California, the court shall, and is hereby directed to, make a general reference
pursuant to Cal. Civ. Proc. Code §638 to a referee (who shall be an active or retired judge) to hear and determine all issues
in the case (whether fact or law) and to report a statement of decision. Nothing in this Section shall limit any right of Agent
or any other Secured Party to exercise self-help remedies, such as setoff, foreclosure or sale of Collateral, or to obtain provisional
or ancillary remedies from a court of competent jurisdiction before, during or after any judicial reference. The exercise of a
remedy does not waive the right of any party to require judicial reference.

 

14.16.   
Waivers by Borrowers. To the fullest extent permitted by Applicable Law, each Borrower waives (a) the right to
trial by jury (which Agent, Issuing Bank and each Lender hereby also waive) in any proceeding or dispute of any kind relating in
any way to any Loan Documents, Obligations or Collateral; (b) presentment, demand, protest, notice of presentment, default, non-payment,
maturity, release, compromise, settlement, extension or renewal of any commercial paper, accounts, documents, instruments, chattel
paper and guaranties at any time held by Agent on which a Borrower may in any way be liable, and hereby ratifies anything Agent
may do in this regard; (c) notice prior to taking possession or control of any Collateral; (d) any bond or security that might
be required by a court prior to allowing Agent to exercise any rights or remedies; (e) the benefit of all valuation, appraisement
and exemption laws; (f) any claim against Agent, Issuing Bank or any Lender, on any theory of liability, for special, indirect,
consequential, exemplary or punitive damages (as opposed to direct or actual damages) in any way relating to any Enforcement Action,
Obligations, Loan Documents or transactions relating thereto; and (g) notice of acceptance hereof. Each Borrower acknowledges that
the foregoing waivers are a material inducement to Agent, Issuing Bank and Lenders entering into this Agreement and that Agent
and Lenders are relying upon the foregoing in their dealings with Borrowers. Each Borrower has reviewed the foregoing waivers with
its legal counsel and has knowingly and voluntarily waived its jury trial and other rights following consultation with legal counsel.
In the event of litigation, this Agreement may be filed as a written consent to a trial by the court.

 

14.17.   
Patriot Act Notice. Agent and Lenders hereby notify Borrowers that pursuant to the Patriot Act, Agent and Lenders
are required to obtain, verify and record information that identifies each Borrower, including its legal name, address, tax ID
number and other information that will allow Agent and Lenders to identify it in accordance with the Patriot Act. Agent and Lenders
will also require information regarding any personal guarantor and may require information regarding Borrowers' management and
owners, such as legal name, address, social security number and date of birth. Borrowers shall, promptly upon request, provide
all documentation and other information as Agent, Issuing Bank or any Lender may request from time to time in order to comply with
any obligations under any "know your customer," anti-money laundering or other requirements of Applicable Law.

 

    	90

     

    

 

14.18.   
Amendment and Restatement of First Amended Loan Agreement. Effective from and after the Closing Date, this Agreement
constitutes an amendment and restatement of the First Amended Loan Agreement. The execution and delivery of this Agreement and
the consummation of the transactions contemplated hereby are not intended by the parties to be, and shall not constitute, a novation
or an accord and satisfaction of the Obligations or any other obligations owing to any lender under the First Amended Loan Agreement
or any other existing loan document. On the Closing Date, the credit facilities and the terms and conditions thereof described
in the First Amended Loan Agreement shall be amended and replaced in their entirety by the credit facilities and the terms and
conditions described herein, and all loans and other obligations of Borrowers outstanding as of such date under the First Amended
Loan Agreement shall be deemed to be Revolver Loans, Letters of Credit and Obligations outstanding under the corresponding facilities
described herein (such that all obligations which are outstanding on the Closing Date under the First Amended Loan Agreement shall
become Obligations under this Agreement), without further action by any Person.

 

 

[Remainder of page intentionally left blank; signatures begin on
following page]

 

 

 

 

 

 

 

 

 

 

    	91

     

    

 

IN WITNESS WHEREOF, this Agreement has been
executed and delivered as of the date set forth above.

 

 

	BORROWERS:	 	COLONIAL AUTO FINANCE, INC.,
	 	 	an Arkansas corporation
	 	 	 
	 	 	By:  	/s/ Jeffrey A. Williams
	 	 	Name: 	Jeffrey A. Williams
	 	 	Title:	Secretary
	 	 	 	 
	 	 	Address:  	802 S.E. Plaza Ave., Ste 200
	 	 	 	Bentonville, Arkansas 72712
	 	 	 	Attn: Jeffrey A. Williams
	 	 	 	Telecopy: (479) 250-1221
	 	 	 
	 	 	 
	 	 	AMERICA’S CAR MART, INC.,
	 	 	an Arkansas corporation
	 	 	 
	 	 	By:  	/s/ Jeffrey A. Williams
	 	 	Name: 	Jeffrey A. Williams
	 	 	Title:	Vice President & Secretary
	 	 	 
	 	 	Address:  	802 S.E. Plaza Ave., Ste 200
	 	 	 	Bentonville, Arkansas 72712
	 	 	 	Attn: Jeffrey A. Williams
	 	 	 	Telecopy: (479) 250-1221
	 	 	 	 
	 	 	 	 
	 	 	TEXAS CAR-MART, INC.,
	 	 	a Texas corporation
	 	 	 
	 	 	By:	/s/ Jeffrey A. Williams
	 	 	Name:	Jeffrey A. Williams
	 	 	Title:	Vice President & Secretary
	 	 	 	 
	 	 	Address:  	802 S.E. Plaza
Ave., Ste 200
	 	 	 	Bentonville, Arkansas 72712
	 	 	 	Attn: Jeffrey A. Williams
	 	 	 	Telecopy: (479) 250-1221

 

 

 

Second Amended and Restated Loan and Security Agreement

Signature Page

     

     

    

 

	PARENT:	 	AMERICA’S CAR-MART, INC.,
	 	 	a Texas corporation
	 	 	 
	 	 	By:  	/s/ Jeffrey A. Williams
	 	 	Name: 	Jeffrey A. Williams
	 	 	Title:	Secretary
	 	 	 	 
	 	 	Address:  	802 S.E. Plaza Ave., Ste 200
	 	 	 	Bentonville, Arkansas 72712
	 	 	 	Attn: Jeffrey A. Williams
	 	 	 	Telecopy: (479) 250-1221
	 	 	 

 

 

 

 

 

 

Second Amended and Restated Loan and Security Agreement

Signature Page

     

     

    

 

	AGENT AND LENDERS:	 	BANK OF AMERICA, N.A.,
	 	 	as Agent and Lender
	 	 	 
	 	 	By:  	/s/ Carlos Gil
	 	 	Name: 	Carlos Gil
	 	 	Title:	Senior Vice President
	 	 	 	 
	 	 	Address:  	Bank of America, N.A.
	 	 	 	333 S. Hope Street
	 	 	 	13th Floor
	 	 	 	Los Angeles, CA 90071
	 	 	 	Attn: Car-Mart Portfolio Manager – Carlos
        Gil
	 	 	 	Telecopy: (877) 207-2399
	 	 	 

 

 

 

 

 

 

Second Amended and Restated Loan and Security Agreement

Signature Page

     

     

    

 

		 	BOKF, NA D/B/A BANK OF ARKANSAS,
	 	 	as Lender
	 	 	 
	 	 	By:  	/s/ Jacob Hudson
	 	 	Name: 	Jacob Hudson
	 	 	Title:	Senior Vice President
	 	 	 	 
	 	 	Address:  	3500 N. College Avenue
	 	 	 	Fayetteville, AR  72702
	 	 	 	Attn: Jacob Hudson
	 	 	 	Telecopy: (479) 973-2676
	 	 	 

 

 

 

 

 

 

Second Amended and Restated Loan and Security Agreement

Signature Page

     

     

    

 

		 	COMMERCE BANK,
	 	 	as Lender
	 	 	 
	 	 	By:  	/s/ Aaron Stone
	 	 	Name: 	Aaron Stone
	 	 	Title:	Vice President
	 	 	 	 
	 	 	Address:  	1000 Walnut Street, BB17-1
	 	 	 	Kansas City, MO 64106
	 	 	 	Attn: Aaron Stone
	 	 	 	Telecopy: ___________
	 	 	 

 

 

 

 

 

 

 

Second Amended and Restated Loan and Security Agreement

Signature Page

     

     

    

 

		 	ARVEST BANK,
	 	 	as Lender
	 	 	 
	 	 	By:  	/s/ Robert Bresnahan
	 	 	Name: 	Robert Bresnahan
	 	 	Title:	Assistant Vice President
	 	 	 	 
	 	 	Address:  	502 S. Main Street
	 	 	 	Tulsa, Oklahoma 74103
	 	 	 	Attn: Robert Bresnahan
	 	 	 	Telecopy: 918-631-1003
	 	 	 

 

 

 

 

 

 

Second Amended and Restated Loan and Security Agreement

Signature Page

     

     

    

 

		 	FIRST TENNESSEE BANK, NATIONAL 

ASSOCIATION,
        as Lender
	 	 	 
	 	 	By:  	/s/ Mike Sawyer
	 	 	Name: 	Mike Sawyer
	 	 	Title:	Vice President
	 	 	 	 
	 	 	Address:  	165 Madison Avenue
	 	 	 	Memphis, Tennessee 38103
	 	 	 	Attn: Blake Chandler
	 	 	 	Telecopy: ___________
	 	 	 

 

 

 

 

 

 

Second Amended and Restated Loan and Security Agreement

Signature Page

     

     

    

 

EXHIBIT A

to

Second Amended and Restated

Loan and Security Agreement

 

COLONIAL REVOLVER NOTE

 

	[Date]	$___________________	Bentonville, Arkansas

 

COLONIAL AUTO FINANCE, INC., an Arkansas
corporation (“Borrower”), for value received, hereby unconditionally promise to pay to the order of ____________________________
(“Lender”), the principal sum of ______________________________ DOLLARS ($___________), or such lesser amount
as may be advanced by Lender as Colonial Revolver Loans and owing as LC Obligations from time to time under the Loan Agreement
described below, together with all accrued and unpaid interest thereon. Terms are used herein as defined in the Second Amended
and Restated Loan and Security Agreement dated as of December 12, 2016, among Borrower, America’s Car Mart, Inc., an Arkansas
corporation, Texas Car-Mart, Inc., a Texas corporation, America’s Car-Mart, Inc., a Texas corporation, Bank of America, N.A.,
as Agent, Lead Arranger and Book Manager, Lender, and certain other financial institutions, as such agreement may be amended, modified,
renewed or extended from time to time (the “Loan Agreement”).

 

Principal of and interest on this Note from
time to time outstanding shall be due and payable as provided in the Loan Agreement. This Note is issued pursuant to and evidences
Colonial Revolver Loans and LC Obligations under the Loan Agreement, to which reference is made for a statement of the rights and
obligations of Lender and the duties and obligations of Borrower. The Loan Agreement contains provisions for acceleration of the
maturity of this Note upon the happening of certain stated events, and for the borrowing, prepayment and reborrowing of amounts
upon specified terms and conditions.

 

The holder of this Note is hereby authorized
by Borrower to record on a schedule annexed to this Note (or on a supplemental schedule) the amounts owing with respect to Colonial
Revolver Loans and LC Obligations, and the payment thereof. Failure to make any notation, however, shall not affect the rights
of the holder of this Note or any obligations of Borrower hereunder or under any other Loan Documents.

 

Time is of the essence of this Note. Borrower
and all endorsers, sureties and guarantors of this Note hereby severally waive demand, presentment for payment, protest, notice
of protest, notice of intention to accelerate the maturity of this Note, diligence in collecting, the bringing of any suit against
any party, and any notice of or defense on account of any extensions, renewals, partial payments, or changes in any manner of or
in this Note or in any of its terms, provisions and covenants, or any releases or substitutions of any security, or any delay,
indulgence or other act of any trustee or any holder hereof, whether before or after maturity. Borrower agrees to pay, and to save
the holder of this Note harmless against, any liability for the payment of all costs and expenses (including without limitation
reasonable attorneys’ fees) if this Note is collected by or through an attorney-at-law.

 

In no contingency or event whatsoever shall
the amount paid or agreed to be paid to the holder of this Note for the use, forbearance or detention of money advanced hereunder
exceed the highest lawful rate permitted under Applicable Law. If any such excess amount is inadvertently paid by Borrower or inadvertently
received by the holder of this Note, such excess shall be returned to Borrower or credited as a payment of principal, in accordance
with the Loan Agreement. It is the intent hereof that Borrower not pay or contract to pay, and that holder of this Note not receive
or contract to receive, directly or indirectly in any manner whatsoever, interest in excess of that which may be paid by Borrower
under Applicable Law.

 

     

     

    

This Note shall be governed by the laws of the
State of California, without giving effect to any conflict of law principles (but giving effect to federal laws relating to national
banks).

 

This Note is executed in renewal, amendment
and restatement of, but not in novation, extinguishment, discharge or satisfaction of the indebtedness evidenced by, all prior
Colonial Revolver Note(s) made by Colonial Auto Finance, Inc., an Arkansas corporation, payable to the order of [________________________]
(as such note(s) has been amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the
“Prior Note(s)”). All amounts outstanding under the Prior Note(s) as of the date hereof are outstanding under
the Loan Agreement and due and payable in accordance with the terms of the Loan Agreement and this Note.

 

IN WITNESS WHEREOF, this Note is executed
as of the date set forth above.

 

 

		 	COLONIAL AUTO FINANCE, INC.,
	 	 	an Arkansas corporation
	 	 	 
	 	 	By:  	
	 	 	Name: 	
	 	 	Title:	
	 	 	 	 
	 	 	 	  
	 	 	 

 

 

 

     

     

    

 

EXHIBIT B

to

Second Amended and Restated

Loan and Security Agreement

 

ACM-TCM REVOLVER NOTE

 

	[Date]	$___________________	Bentonville, Arkansas

 

AMERICA’S CAR MART, INC., an Arkansas
corporation, and TEXAS CAR-MART, INC., a Texas corporation, (separately and collectively, “Borrower”),
for value received, hereby unconditionally jointly and severally promise to pay to the order of ____________________________ (“Lender”),
the principal sum of ______________________________ DOLLARS ($___________), or such lesser amount as may be advanced by Lender
as ACM-TCM Revolver Loans from time to time under the Loan Agreement described below, together with all accrued and unpaid interest
thereon. Terms are used herein as defined in the Second Amended and Restated Loan and Security Agreement dated as of December 12,
2016, among Borrower, Colonial Auto Finance, Inc., America’s Car-Mart, Inc., a Texas corporation, Bank of America, N.A.,
as Agent, Lead Arranger and Book Manager, Lender, and certain other financial institutions, as such agreement may be amended, modified,
renewed or extended from time to time (the “Loan Agreement”).

 

Principal of and interest on this Note from
time to time outstanding shall be due and payable as provided in the Loan Agreement. This Note is issued pursuant to and evidences
ACM-TCM Revolver Loans under the Loan Agreement, to which reference is made for a statement of the rights and obligations of Lender
and the duties and obligations of Borrower. The Loan Agreement contains provisions for acceleration of the maturity of this Note
upon the happening of certain stated events, and for the borrowing, prepayment and reborrowing of amounts upon specified terms
and conditions.

 

The holder of this Note is hereby authorized
by Borrower to record on a schedule annexed to this Note (or on a supplemental schedule) the amounts owing with respect to ACM-TCM
Revolver Loans and the payment thereof. Failure to make any notation, however, shall not affect the rights of the holder of this
Note or any obligations of Borrower hereunder or under any other Loan Documents.

 

Time is of the essence of this Note. Borrower
and all endorsers, sureties and guarantors of this Note hereby severally waive demand, presentment for payment, protest, notice
of protest, notice of intention to accelerate the maturity of this Note, diligence in collecting, the bringing of any suit against
any party, and any notice of or defense on account of any extensions, renewals, partial payments, or changes in any manner of or
in this Note or in any of its terms, provisions and covenants, or any releases or substitutions of any security, or any delay,
indulgence or other act of any trustee or any holder hereof, whether before or after maturity. Borrower agrees to pay, and to save
the holder of this Note harmless against, any liability for the payment of all costs and expenses (including without limitation
reasonable attorneys’ fees) if this Note is collected by or through an attorney-at-law.

 

In no contingency or event whatsoever shall
the amount paid or agreed to be paid to the holder of this Note for the use, forbearance or detention of money advanced hereunder
exceed the highest lawful rate permitted under Applicable Law. If any such excess amount is inadvertently paid by Borrower or inadvertently
received by the holder of this Note, such excess shall be returned to Borrower or credited as a payment of principal, in accordance
with the Loan Agreement. It is the intent hereof that Borrower not pay or contract to pay, and that holder of this Note not receive
or contract to receive, directly or indirectly in any manner whatsoever, interest in excess of that which may be paid by Borrower
under Applicable Law.

 

     

     

    

This Note shall be governed by the laws of the
State of California, without giving effect to any conflict of law principles (but giving effect to federal laws relating to national
banks).

 

This Note is executed in renewal, amendment
and restatement of, but not in novation, extinguishment, discharge or satisfaction of the indebtedness evidenced by all prior ACM-TCM
Revolver Note(s) made by America’s Car Mart, Inc., an Arkansas corporation and Texas Car-Mart, Inc., a Texas corporation,
payable to the order of [_______________________] (as such note(s) has been amended, restated, supplemented or otherwise modified
from time to time prior to the date hereof, the “Prior Note(s)”). All amounts outstanding under the Prior Note(s)
as of the date hereof are outstanding under the Loan Agreement and due and payable in accordance with the terms of the Loan Agreement
and this Note.

 

IN WITNESS WHEREOF, this Note is executed
as of the date set forth above.

 

 

		 	AMERICA’S CAR MART, INC.,
	 	 	an Arkansas corporation
	 	 	 
	 	 	By:  	
	 	 	Name: 	
	 	 	Title:	
	 	 	 	 
	 	 	TEXAS CAR-MART, INC.,
	 	 	a Texas corporation
	 	 	 	 
	 	 	By:  	 
	 	 	Name: 	 
	 	 	Title:	 
	 	 	 

 

 

     

     

    

 

EXHIBIT C

to

Second Amended and Restated

Loan and Security Agreement

 

ASSIGNMENT

 

Reference is made to the Second Amended and
Restated Loan and Security Agreement dated as of December 12, 2016, (as amended, restated, amended and restated, modified, renewed
or extended from time to time, the “Loan Agreement”), among AMERICA’S CAR-MART, INC., a Texas corporation
(“Parent”), COLONIAL AUTO FINANCE, INC., an Arkansas corporation (“Colonial”), AMERICA’S
CAR MART, INC., an Arkansas corporation (“ACM”), TEXAS CAR-MART, INC., a Texas corporation (“TCM”)(each
of Colonial, ACM and TCM, a “Borrower”, and collectively, “Borrowers”), BANK OF AMERICA,
N.A., as agent (“Agent”), lead arranger and book manager for the financial institutions from time to time
party to the Loan Agreement (“Lenders”), and such Lenders. Terms are used herein as defined in the Loan Agreement.

 

______________________________________ (“Assignor”)
and _________________________ _____________ (“Assignee”) agree as follows:

 

1.       Assignor
hereby assigns to Assignee and Assignee hereby purchases and assumes from Assignor (a) a principal amount of $________ of Assignor’s
outstanding Revolver Loans and $___________ of Assignor’s participations in LC Obligations, and (b) the amount of $__________
of Assignor’s Revolver Commitment (which represents ____% of the total Revolver Commitments) (the foregoing items being,
collectively, the “Assigned Interest”), together with an interest in the Loan Documents corresponding to the
Assigned Interest. This Agreement shall be effective as of the date (“Effective Date”) indicated in the corresponding
Assignment Notice delivered to Agent, provided such Assignment Notice is executed by Assignor, Assignee, Agent and Borrower, if
applicable. From and after the Effective Date, Assignee hereby expressly assumes, and undertakes to perform, all of Assignor’s
obligations in respect of the Assigned Interest, and all principal, interest, fees and other amounts which would otherwise be payable
to or for Assignor’s account in respect of the Assigned Interest shall be payable to or for Assignee’s account, to
the extent such amounts accrue on or after the Effective Date.

 

2.       Assignor
(a) represents that as of the date hereof, prior to giving effect to this assignment, its Revolver Commitment is $__________, the
outstanding balance of its Revolver Loans and participations in LC Obligations is $__________; (b) makes no representation or warranty
and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Loan
Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Agreement or any
other instrument or document furnished pursuant thereto, other than that Assignor is the legal and beneficial owner of the interest
being assigned by it hereunder and that such interest is free and clear of any adverse claim; and (c) makes no representation or
warranty and assumes no responsibility with respect to the financial condition of Borrower or the performance by Borrower of their
obligations under the Loan Documents. [Assignor is attaching the Revolver Note[s] held by it and requests that Agent exchange
such Revolver Note[s] for new Revolver Notes payable to Assignee [and Assignor].]

 

3.       Assignee
(a) represents and warrants that it is legally authorized to enter into this Assignment; (b) confirms that it has received copies
of the Loan Agreement and such other Loan Documents and information as it has deemed appropriate to make its own credit analysis
and decision to enter into this Assignment; (c) agrees that it shall, independently and without reliance upon Assignor and based
on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking
or not taking action under the Loan Documents; (d) confirms that it is an Eligible Assignee; (e) appoints and authorizes Agent
to take such action as agent on its behalf and to exercise such powers under the Loan Agreement as are delegated to Agent by the
terms thereof, together with such powers as are incidental thereto; (f) agrees that it will observe and perform all obligations
that are required to be performed by it as a “Lender” under the Loan Documents; and (g) represents and warrants that
the assignment evidenced hereby will not result in a non-exempt “prohibited transaction” under Section 406 of ERISA.

 

     

     

    

 

4.       This
Agreement shall be governed by the laws of the State of California. If any provision is found to be invalid under Applicable Law,
it shall be ineffective only to the extent of such invalidity and the remaining provisions of this Agreement shall remain in full
force and effect.

 

5.       Each
notice or other communication hereunder shall be in writing, shall be sent by messenger, by telecopy or facsimile transmission,
or by first-class mail, shall be deemed given when sent and shall be sent as follows:

 

(a)           If
to Assignee, to the following address (or to such other address as Assignee may designate from time to time):

 

__________________________

__________________________

__________________________

 

(b)           If to Assignor, to the following address (or to such other address as Assignor may designate from time to time):__________________________

__________________________

__________________________

__________________________

 

Payments hereunder shall be made by wire transfer
of immediately available Dollars as follows:

 

If to Assignee, to the following account (or
to such other account as Assignee may designate from time to time):

 

______________________________

ABA No._______________________

______________________________

Account No.____________________

Reference: _____________________

 

If to Assignor, to the following account (or
to such other account as Assignor may designate from time to time):

 

______________________________

______________________________

ABA No._______________________

______________________________

Account No.____________________

Reference: _____________________

 

     

     

    

 

IN WITNESS WHEREOF, this Assignment is
executed as of _____________.

 

 

	 	 	 
	 	 	(“Assignee”)
	 	 	 
	 	 	By:  	
	 	 		Title:
	 	 	 	 
	 	 	 	 
	 	 	 
	 	 	(“Assignor”)
	 	 	 	 
	 	 	By:  	 
	 	 		Title:
	 	 	 

 

 

 

 

 

     

     

    

 

EXHIBIT D

to

Second Amended and Restated

Loan and Security Agreement

 

ASSIGNMENT NOTICE

 

Reference is made to (1) the Second Amended
and Restated Loan and Security Agreement dated as of December 12, 2016, (as amended, restated, amended and restated, modified,
renewed or extended from time to time, the “Loan Agreement”), among AMERICA’S CAR-MART, INC., a
Texas corporation (“Parent”), COLONIAL AUTO FINANCE, INC., an Arkansas corporation (“Colonial”),
AMERICA’S CAR MART, INC., an Arkansas corporation (“ACM”), TEXAS CAR-MART, INC., a Texas
corporation (“TCM”)(each of Colonial, ACM and TCM, a “Borrower”, and collectively, “Borrowers”),
BANK OF AMERICA, N.A., as agent (“Agent”), lead arranger and book manager for the financial institutions
from time to time party to the Loan Agreement (“Lenders”), and such Lenders; and (2) the Assignment dated as
of ____________, 20__ (“Assignment Agreement”), between __________________ (“Assignor”) and
____________________ (“Assignee”). Terms are used herein as defined in the Loan Agreement.

 

Assignor hereby notifies Borrower and Agent
of Assignor’s intent to assign to Assignee pursuant to the Assignment Agreement (a) a principal amount of $________ of Assignor’s
outstanding Revolver Loans and $___________ of Assignor’s participations in LC Obligations, and (b) the amount of $__________
of Assignor’s Revolver Commitment (which represents ____% of the total Revolver Commitments) (the foregoing items being,
collectively, the “Assigned Interest”), together with an interest in the Loan Documents corresponding to the
Assigned Interest. This Agreement shall be effective as of the date (“Effective Date”) indicated below, provided
this Assignment Notice is executed by Assignor, Assignee, Agent and Borrower, if applicable. Pursuant to the Assignment Agreement,
Assignee has expressly assumed all of Assignor’s obligations under the Loan Agreement to the extent of the Assigned Interest,
as of the Effective Date.

 

For purposes of the Loan Agreement, Agent shall
deem Assignor’s Revolver Commitment to be reduced by $_________, and Assignee’s Revolver Commitment to be increased
by $_________.

 

The address of Assignee to which notices and
information are to be sent under the terms of the Loan Agreement is:

 

________________________

________________________

________________________

________________________

 

The address of Assignee to which payments are
to be sent under the terms of the Loan Agreement is shown in the Assignment and Acceptance.

 

This Notice is being delivered to Borrower and
Agent pursuant to Section 13.3 of the Loan Agreement. Please acknowledge your acceptance of this Notice by executing and
returning to Assignee and Assignor a copy of this Notice.

 

     

     

    

 

IN WITNESS WHEREOF, this Assignment Notice
is executed as of _____________.

 

	 	 	 
	 	 	(“Assignee”)
	 	 	 
	 	 	By:  	
	 	 		Title:
	 	 	 	 
	 	 	 	 
	 	 	 
	 	 	(“Assignor”)
	 	 	 	 
	 	 	By:  	 
	 	 		Title:
	 	 	 

 

 

ACKNOWLEDGED AND AGREED,

AS OF THE DATE SET FORTH ABOVE:

 

BORROWERS:*

 

COLONIAL AUTO FINANCE, INC.,

an Arkansas corporation

By_______________________________

Name: ____________________________

Title: _____________________________

 

AMERICA’S CAR MART, INC.,

an Arkansas corporation

By_______________________________

Name: ____________________________

Title: _____________________________

 

TEXAS CAR-MART, INC.,

a Texas corporation

By_______________________________

Name: ____________________________

Title: _____________________________

 

* No signature required if Assignee is a Lender, U.S.-based Affiliate
of a Lender or Approved Fund, or if an Event of Default exists.

 

     

     

    

 

BANK OF AMERICA, N.A.,

as Agent

By_______________________________

Name: ____________________________

Title: _____________________________

 

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT E-1

to

Second Amended and Restated

Loan and Security Agreement

 

[Form of]

U.S. Tax Compliance Certificate

 

(For Foreign Lenders That Are Not Partnerships

For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Second Amended and Restated Loan
and Security Agreement dated as of December 12, 2016, (as amended, restated, amended and restated, modified, renewed or extended
from time to time, the “Loan Agreement”), among AMERICA’S CAR-MART, INC., a Texas corporation (“Parent”),
COLONIAL AUTO FINANCE, INC., an Arkansas corporation (“Colonial”), AMERICA’S CAR MART, INC.,
an Arkansas corporation (“ACM”), TEXAS CAR-MART, INC., a Texas corporation (“TCM”)(each
of Colonial, ACM and TCM, a “Borrower”, and collectively, “Borrowers”), BANK OF AMERICA,
N.A., as agent (“Agent”), lead arranger and book manager for the financial institutions from time to time
party to the Loan Agreement (“Lenders”), and such Lenders. Pursuant to the provisions of Section 5.10
of the Loan Agreement, the undersigned hereby certifies that (a) it is the sole record and beneficial owner of the Loan(s) (as
well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (b) it is not a bank within
the meaning of Section 881(c)(3)(A) of the Code, (c) it is not a ten percent shareholder of the Borrowers within the meaning of
Section 871(h)(3)(B) of the Code, and (d) it is not a controlled foreign corporation related to the Borrowers as described in Section
881(c)(3)(C) of the Code.

 

The undersigned has furnished the Agent and the Borrowers with a
certificate of its non-U.S. Person status on IRS Form W-8BEN-E (or W-8BEN as applicable). By executing this certificate, the undersigned
agrees that (a) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrowers
and the Agent, and (b) the undersigned shall have at all times furnished the Borrowers and the Agent with a properly completed
and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either
of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Loan Agreement
and used herein shall have the meanings given to them in the Loan Agreement.

 

[NAME OF FOREIGN LENDER]

 

 

By_______________________________

Name: ____________________________

Title: _____________________________

 

Date: ________ __, _________________

 

 

 

     

     

    

 

EXHIBIT E-2

to

Second Amended and Restated

Loan and Security Agreement

 

[Form of]

U.S. Tax Compliance Certificate

 

(For Foreign Participants That Are Not Partnerships

For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Second Amended and Restated Loan
and Security Agreement dated as of December 12, 2016, (as amended, restated, amended and restated, modified, renewed or extended
from time to time, the “Loan Agreement”), among AMERICA’S CAR-MART, INC., a Texas corporation (“Parent”),
COLONIAL AUTO FINANCE, INC., an Arkansas corporation (“Colonial”), AMERICA’S CAR MART, INC.,
an Arkansas corporation (“ACM”), TEXAS CAR-MART, INC., a Texas corporation (“TCM”)(each
of Colonial, ACM and TCM, a “Borrower”, and collectively, “Borrowers”), BANK OF AMERICA,
N.A., as agent (“Agent”), lead arranger and book manager for the financial institutions from time to time
party to the Loan Agreement (“Lenders”), and such Lenders. Pursuant to the provisions of Section 5.10
of the Loan Agreement, the undersigned hereby certifies that (a) it is the sole record and beneficial owner of the participation
in respect of which it is providing this certificate, (b) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code,
(c) it is not a ten percent shareholder of the Borrowers within the meaning of Section 871(h)(3)(B) of the Code, and (d) it is
not a controlled foreign corporation related to the Borrowers as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished its participating Lender with a certificate
of its non-U.S. Person status on IRS Form W-8BEN-E (or W-8BEN as applicable). By executing this certificate, the undersigned agrees
that (a) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing,
and (b) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate
in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding
such payments.

 

Unless otherwise defined herein, terms defined in the Loan Agreement
and used herein shall have the meanings given to them in the Loan Agreement.

 

[NAME OF PARTICIPANT]

 

 

By_______________________________

Name: ____________________________

Title: _____________________________

 

Date: ________ __, _________________

 

 

     

     

    

 

EXHIBIT E-3

to

Second Amended and Restated

Loan and Security Agreement

 

[Form of]

U.S. Tax Compliance Certificate

 

(For Foreign Participants That Are Partnerships

For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Second Amended and Restated Loan
and Security Agreement dated as of December 12, 2016, (as amended, restated, amended and restated, modified, renewed or extended
from time to time, the “Loan Agreement”), among AMERICA’S CAR-MART, INC., a Texas corporation (“Parent”),
COLONIAL AUTO FINANCE, INC., an Arkansas corporation (“Colonial”), AMERICA’S CAR MART, INC.,
an Arkansas corporation (“ACM”), TEXAS CAR-MART, INC., a Texas corporation (“TCM”)(each
of Colonial, ACM and TCM, a “Borrower”, and collectively, “Borrowers”), BANK OF AMERICA,
N.A., as agent (“Agent”), lead arranger and book manager for the financial institutions from time to time
party to the Loan Agreement (“Lenders”), and such Lenders. Pursuant to the provisions of Section 5.10
of the Loan Agreement, the undersigned hereby certifies that (a) it is the sole record owner of the participation in respect of
which it is providing this certificate, (b) its direct or indirect partners/members are the sole beneficial owners of such participation,
(c) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending
credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section
881(c)(3)(A) of the Code, (d) none of its direct or indirect partners/members is a ten percent shareholder of the Borrowers within
the meaning of Section 871(h)(3)(B) of the Code, and (e) none of its direct or indirect partners/members is a controlled foreign
corporation related to the Borrowers as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has furnished its participating Lender with IRS
Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest
exemption: (a) an IRS Form W-8BEN-E (or W-8BEN as applicable) or (b) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN-E (or
W-8BEN as applicable) from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption.
By executing this certificate, the undersigned agrees that (i) if the information provided on this certificate changes, the undersigned
shall promptly so inform such Lender and (ii) the undersigned shall have at all times furnished such Lender with a properly completed
and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either
of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Loan Agreement
and used herein shall have the meanings given to them in the Loan Agreement.

 

[NAME OF PARTICIPANT]

 

 

By_______________________________

Name: ____________________________

Title: _____________________________

 

Date: ________ __, _________________

 

     

     

    

 

EXHIBIT E-4

to

Second Amended and Restated

Loan and Security Agreement

 

[Form of]

U.S. Tax Compliance Certificate

 

(For Foreign Lenders That Are Partnerships

For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Second Amended and Restated Loan
and Security Agreement dated as of December 12, 2016, (as amended, restated, amended and restated, modified, renewed or extended
from time to time, the “Loan Agreement”), among AMERICA’S CAR-MART, INC., a Texas corporation (“Parent”),
COLONIAL AUTO FINANCE, INC., an Arkansas corporation (“Colonial”), AMERICA’S CAR MART, INC.,
an Arkansas corporation (“ACM”), TEXAS CAR-MART, INC., a Texas corporation (“TCM”)(each
of Colonial, ACM and TCM, a “Borrower”, and collectively, “Borrowers”), BANK OF AMERICA,
N.A., as agent (“Agent”), lead arranger and book manager for the financial institutions from time to time
party to the Loan Agreement (“Lenders”), and such Lenders. Pursuant to the provisions
of Section 5.10 of the Loan Agreement, the undersigned hereby certifies that (a) it is the sole record owner of the Loan(s)
(as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (b) its direct or indirect
partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (c) with respect
to the extension of credit pursuant to this Loan Agreement or any other Loan Document, neither the undersigned nor any of its direct
or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its
trade or business within the meaning of Section 881(c)(3)(A) of the Code, (d) none of its direct or indirect partners/members is
a ten percent shareholder of the Borrowers within the meaning of Section 871(h)(3)(B) of the Code and (e) none of its direct or
indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the
Code.

 

The undersigned has furnished the Agent and the Borrowers with IRS
Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest
exemption: (a) an IRS Form W-8BEN-E (or W-8BEN as applicable) or (b) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN-E (or
W-8BEN as applicable) from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption.
By executing this certificate, the undersigned agrees that (i) if the information provided on this certificate changes, the undersigned
shall promptly so inform the Borrowers and the Agent, and (ii) the undersigned shall have at all times furnished the Borrowers
and the Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is
to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Loan Agreement
and used herein shall have the meanings given to them in the Loan Agreement.

 

[NAME OF LENDER]

 

 

By_______________________________

Name: ____________________________

Title: _____________________________

 

Date: ________ __, _________________

 

     

     

    

 

SCHEDULE 1.1

to

Second Amended and Restated

Loan and Security Agreement

 

REVOLVER COMMITMENTS OF LENDERS

 

 

 

	
        Lender

         
	Colonial Revolver 

Commitment	ACM-TCM Revolver 

Commitment	Total Revolver 

Commitment
	Bank of America, N.A.	$91,200,000	$4,800,000	$96,000,000
	BOKF,NA d/b/a Bank of Arkansas	$41,800,000	$2,200,000	$44,000,000
	First Tennessee Bank	$23,750,000	$1,250,000	$25,000,000
	Arvest Bank	$18,050,000	$950,000	$19,000,000
	Commerce Bank	$15,200,000	$800,000	$16,000,000
	 	Total: $190,000,000	Total: $10,000,000	Total: $200,000,000

 

 

 

 

     

     

    

SCHEDULE 8.5

to

Second Amended and Restated

Loan and Security Agreement

 

DEPOSIT ACCOUNTS

 

* Filed separately with the Commission under an application
for confidential treatment (4 pages)

 

 

 

 

     

     

    

 

SCHEDULE 8.6.1

to

Second Amended and Restated

Loan and Security Agreement

 

BUSINESS LOCATIONS

 

		1.	Each Borrower currently has the following business locations:

 

Chief Executive Office:802 S.E. Plaza Ave.,
Ste. 200, Bentonville, Arkansas 72712

 

Other Locations:None

 

 

		2.	Each Subsidiary currently has the following business locations:

 

Colonial:

Chief Executive Office:P.O. Box
1594, Bentonville, Arkansas 72712

Other Locations: None

 

ACM and TCM:

Chief Executive Office: 802 S.E. Plaza
Ave., Ste. 200, Bentonville, Arkansas 72712

Other Locations: See list of ACM and
TCM lot locations below.

 

		3.	In the five years preceding the Closing Date, each Borrower and its Subsidiaries have had the following
business locations in addition to those set forth above:

 

None

 

		4.	The following bailees, warehouseman, similar parties and consignees hold inventory of a Borrower
or Subsidiary:

 

	Name and Address of Party	
        Nature of

        Relationship
	Amount of Inventory	Owner of Inventory
	Various independent repair shops and auto auctions are in possession of inventory from time to time.	 	 	ACM & TCM

 

 

 

     

     

    

ACM & TCM Lot Locations

 

	Ada OK 154	1212 N. Broadway	OK	74820	 
	Albany GA 161	406 E. Oglethorpe Blvd.	GA	31705	 
	Albertville AL 126	4081 US Hwy 431	AL	35950	 
	Altus OK 126	1601 East Broadway	OK	73521	 
	Anniston AL 095	1200 S. Quintard Ave	AL	36201	 
	Ardmore OK 044	2206 N. Commerce	OK	73402	 
	Arkadelphia AR 034	1102 North 10th	AR	71923	 
	Athens AL 075	904 Hwy 72 E	AL	35611	 
	Bartlesville OK 092	3291 SE Washington Blvd.	OK	74006	 
	Batesville AR 024	2820 Harrison St.	AR	72501	 
	Benton AR 003	1301 Military	AR	72015	 
	Berryville AR 073	1202 W. Trimble	AR	72616	 
	Bowling Green KY 043	1930 Russellville Rd	KY	42101	 
	Broken Arrow OK 086	406 E. Kenosha	OK	74012	 
	Brunswick GA 164	3480 Cypress Mill Road	GA	31520	 
	Burlington IA 160	1233 N. Roosevelt Ave	IA	52601	 
	Camden AR 115	635 California	AR	71701	 
	Cape Girardeau MO 032	1455 N Kingshighway	MO	63703	 
	Carthage MO 119	918 W. Central	MO	64836	 
	Claremore  OK 071	821 N. Lynn Riggs Blvd.	OK	74017	 
	Clarksville AR 109	905 Rogers	AR	72830	 
	Clarksville TN 090	1630 Wilma Rudolph Blvd	TN	37040	 
	Columbia MO 066	200 Business Loop 70 W	MO	65203	 
	Columbia TN 096	2207 Carmack Blvd	TN	38401	 
	Columbus MS 125	2325 Highway 45 North	MS	39705	 
	Conway AR 004	1220 East Oak	AR	72032	 
	Corinth MS 132	2402 Highway 72 East	MS	38834	 
	Corsicana TX 058	711 South 7th Street	TX	75110	 
	Cullman AL 076	1634 Brantley Ave NW	AL	35055	 
	Dalton GA 152	936 N. Glenwood Avenue	GA	30721	 
	DA North Little Rock AR 022	1802 E. Broadway	AR	72114	 
	

     

     

    

	DA Russellville AR 021	3502 S. Arkansas	AR	72801	 
	Decatur AL 081	3511 A Hwy 31 South	AL	35603	 
	Dothan AL 147	3171 South Oates Street	AL	36301	 
	Duncan OK 046	610 Hwy 81 N.	OK	73533	 
	Durant OK 151	376 Bryan Drive	OK	74701	 
	El Dorado AR 018	1610 W. Hillsboro	AR	71730	 
	Elizabethtown KY 042	5730 N. Dixie	KY	42701	 
	Enid OK 027	4802 W. Owen Garriot 	OK	73703	 
	Enterprise AL 141	1230 Rucker Blvd.	AL	36330	 
	Evansville IN 037	1223 East Riverside	IN	47714	 
	Farmington MO 088	222 West Karsch Blvd	MO	63640	 
	Fayetteville AR 002	2724 W. Martin Luther King Blvd.	AR	72704	 
	Florence AL 139	1221 Florence Blvd.	AL	35360	 
	Forrest City AR 047	1826 W. Broadway	AR	72335	 
	Fort Smith AR 006	4006 Towson Ave	AR	72901	 
	Gadsden AL 131	625 W. Meighan Blvd.	AL	35901	 
	Glasgow KY 159	801 Happy Valley Road	KY	42141	 
	Greenville TX 087	5107 East I-30 	TX	75402	 
	Grove OK 144	3618 US Hwy 59	OK	74344	 
	Harrison AR 005	424 Hwy 62 & 65 North	AR	72601	 
	Harrisonville MO 133	2506 N State Route 291	MO	64701	 
	Henderson KY 036	2749 US Hwy 41 N	KY	42420	 
	Hixson TN 148	4517 Hixson Pike	TN	37343	 
	Hope AR 097	1616 N. Hervey	AR	71801	 
	Hopkinsville KY 041	2010 Walnut St	KY	42240	 
	Hot Springs AR 084	1608 Albert Pike	AR	71913	 
	Jackson TN 064	1089 South Highland	TN	38301	 
	Jacksonville AR 108	211 S. James	AR	72076	 
	Jefferson City MO 065	1330 Missouri Blvd	MO	65109	 
	Jonesboro AR 013	1315 Stadium Blvd.	AR	72401	 
	Joplin MO 019	3404 E. 7th	MO	64801	 
	Kirksville MO 143	2015 North Baltimore	MO	63501	 
	

     

     

    

	Lawton OK 028	202 SW Sheridan Rd	OK	73505	 
	Lebanon MO 083	1600 West Elm	MO	65536	 
	Lexington KY 074	399 E. New Circle Rd.	KY	40505	 
	Little Rock AR 007	5900 South University	AR	72209	 
	Longview TX 050	4207 W. Marshall	TX	75604	 
	Lufkin TX 055	905 Timberland Dr.	TX	75901	 
	Macon GA 166	1711 Key Street	GA	31204	 
	Madison TN 134	729 North Gallatin Pike	TN	37116	 
	Madisonville KY 039	342 South Main Street	KY	42431	 
	Magnolia AR 015	203 US Highway 79 North	AR	71753	 
	Malvern AR 120	2174 Oliver Lancaster Blvd	AR	72104	 
	McAlester OK 045	810 S. George Nigh Expy	OK	74501	 
	Meridian MS 142	1629 S. Frontage Rd	MS	39301	 
	Miami OK 155	1616 N. Main Street	OK	74354	 
	Milledgeville GA 165	131 Robertson Mill Rd	GA	31061	 
	Moberly MO 128	512 E. Hwy 24	MO	65270	 
	Morrilton AR 121	510 E. Harding St.	AR	72110	 
	Mount Pleasant TX 057	2300 W. Ferguson Road	TX	75455	 
	Mountain Home AR 122	2077 Hwy 62 East	AR	72653	 
	Muscle Shoals AL 067	1017 Hwy 72 E, Tuscumbia	AL	35674	 
	Muskogee OK 020	1501 W. Shawnee	OK	74401	 
	Nacogdoches TX 052	2819 South St.	TX	75964	 
	Neosho MO 056	311 South Neosho Blvd.	MO	64850	 
	Nicholasville KY 127	2276 Lexington Rd	KY	40356	 
	North Little Rock AR 008	6601 Warden Rd, Sherwood	AR	72120	 
	Okmulgee OK 082	1509 S. Wood Dr.	OK	74447	 
	Opelika AL 091	501 Columbus Parkway	AL	36801	 
	Owasso OK 085	8051 N Owasso Expressway	OK	74055	 
	Owensboro KY 040	512 Triplett 	KY	42303	 
	Oxford MS 137	2612 Jackson Avenue West	MS	38655	 
	Paducah KY 035	3921 Clarks River Rd	KY	42003	 
	Palestine TX 060	5000 N. Loop 256	TX	75801	 
	Paragould AR 023	2213 E. Kingshighway	AR	72450	 
	

     

     

    

	Paris TX 051	1140 N. Main	TX	75460	 
	Phenix City AL 124	1301 Hwy 280 Bypass	AL	36867	 
	Pine Bluff AR 016	520 S. Blake St	AR	71603	 
	Pine Bluff East AR 116	2600 E. Harding Ave	AR	71601	 
	Ponca City OK 078	3314 North 14th 	OK	74601	 
	Poplar Bluff MO 038	804 S. Westwood	MO	63901	 
	Poteau OK 123	2607 N. Broadway	OK	74953	 
	Prattville AL 118	1026 S. Memorial	AL	36067	 
	Richmond KY 130	290 Eastern Bypass	KY	40475	 
	Rogers AR 012	2007 S. 8th St	AR	72758	 
	Rogers North AR 112	2620 W. Hudson Rd	AR	72756	 
	Rolla MO 157	1310 E. Highway 72	MO	65401	 
	Rome GA 145	1401 Martha Berry Blvd	GA	30165	 
	Russellville AR 009	PO Box 510/2300  E. Main	AR	72811	 
	Sapulpa OK 017	20 E. Taft	OK	74066	 
	Searcy AR 029	801 E Beebe Capps Expy	AR	72143	 
	Sedalia MO 068	3303 S. Limit St.	MO	65301	 
	Shawnee OK 026	4020 N. Harrison	OK	74801	 
	Sherman TX 048	4308 Texoma Parkway	TX	75090	 
	Siloam Springs AR 010	351 Hwy 412 East	AR	72761	 
	Springdale East AR 089	1866 East Robinson	AR	72764	 
	Springdale West AR 053	3733 W. Sunset	AR	72762	 
	Springfield North MO 025	2120 N. Glenstone	MO	65803	 
	Springfield South 079	3245 W. Sunshine	MO	65807	 
	St. Joseph MO 135	2504 South Belt Highway	MO	64503	 
	Stillwater OK 072	823 E 6th St	OK 	74074	 
	Stilwell OK 110	Route 6 Box 600	OK	74960	 
	Sulphur Springs TX 059	1237 South Broadway	TX	75482	 
	Tahlequah OK 077	2900 Muskogee Ave.	OK	74464	 
	Texarkana TX 011	3015 Summerhill	TX	75503	 
	Troy AL 149	223 US 231 North	AL	36081	 
	Tullahoma TN 093	2116 North Jackson	TN	37388	 
	Tulsa North OK 014	6519 E. 11th St	OK	74112	 
	

     

     

    

	Tulsa South OK 033	4810 S. Peoria Ave.	OK	74105	 
	Tupelo MS 129	1703 S Gloster St	MS	38802	 
	Tuscaloosa AL 080	6210 University E, Cottondale	AL	35453	 
	Van Buren AR 070	2400 Fayetteville Rd.	AR	72956	 
	Valdosta GA 156	3270 N. Valdosta Road	GA	31602	 
	Warrensburg MO 153	100 West Young	MO	64093	 
	West Memphis AR 030	1600 East Broadway	AR	72301	 
	West Plains MO 069	1702 Porter Wagoner Blvd.	MO	65775	 
	Wichita Falls TX 049	2710 Jacksboro Hwy	TX	76302	 
	Winchester KY 094	1020 Bypass Road	KY	40391	 
	Woodstock GA 138	7336 Highway 92	GA	30189	 

 

 

 

 

 

 

     

     

    

SCHEDULE 9.1.4

to

Second Amended and Restated

Loan and Security Agreement

 

NAMES AND CAPITAL STRUCTURE

 

	1.	The corporate names, jurisdictions of incorporation, and authorized and issued Equity Interests
of Parent and its Subsidiaries are as follows:
	 	 

	
         

        Name
	
         

        Jurisdiction
	
        Number and Class

        of Authorized Shares
	
        Number and Class

        of Issued Shares

	America’s Car-Mart, Inc.	Texas	
        Preferred – 1,000,000

        Common – 50,000,000
	
        Preferred – None

        Common – 12,849,768

	Colonial Auto Finance, Inc.	Arkansas	Common – 3,000,000	Common – 1,220.351
	America’s Car Mart, Inc.	Arkansas	Common – 3,000,000	Common -970.351
	Texas Car-Mart, Inc.	Texas	Common – 1,000,000	Common – 1,000
	Colonial Underwriting, Inc.	Arkansas	Common – 3,000,000	Common – 1,000
	Auto Finance Investors, Inc.	Texas	
        Preferred – 10,000,000

        Common – 1,000,000
	Preferred – 9,703,000
	Crown Delaware Investments Corp.	Delaware	Common – 10,000	Common – 1,000

 

		2.	The record holders of Equity Interests of the Subsidiaries of Parent are as follows:

 

	Name	Class of Stock	Number of Shares	Record Owner
	Colonial Auto Finance, Inc.	
        Common

        Common
	
        964.078

        256.273
	
        Parent

        Auto Finance, Investors, Inc.

	America’s Car-Mart, Inc. (ACM)	Common	970.351	Parent
	Texas Car-Mart, Inc.	Common	1,000	ACM
	Colonial Underwriting, Inc.	Common	1,000	Colonial Auto Finance, Inc.
	Crown Delaware Investments, Inc.	Common	1,000	Parent
	Auto Finance Investors, Inc.	
        Series A Preferred

        Series C Preferred

        Series C Preferred

        

        

        

        Common
	
        9,203,000

        100,000

        400,000

        

        

        

        10,000
	
        Parent

        T.J. Falgout, III

        Jeannie Fleeman Revocable Trust, Bank of Oklahoma, N.A., Agent

         

        Parent

 

 

     

     

    

 

		3.	All agreements binding on holders of Equity Interests of Parent and its Subsidiaries with respect
to such interests are as follows:

 

There are no such agreements.

 

		4.	In the five years preceding the Closing Date, no Obligor has acquired any substantial assets from
any other Person nor been the surviving entity in a merger or combination, except:

 

NONE

 

 

 

 

     

     

    

 

SCHEDULE 9.1.11

to

Second Amended and Restated

Loan and Security Agreement

 

PATENTS, TRADEMARKS, COPYRIGHTS AND LICENSES

 

 

 

 

* Filed separately with the Commission
under an application for confidential treatment (3 pages).

 

 

 

 

     

     

    

 

SCHEDULE 9.1.14

to

Second Amended and Restated

Loan and Security Agreement

 

ENVIRONMENTAL MATTERS

 

Texas Car-Mart,
Inc., d/b/a Car-Mart of Tyler, occupied real property in Tyler, Texas that has residual contamination identified by the Texas Commission
of Environmental Quality resulting from underground storage tanks that were removed prior to TCM taking possession of the property.
Car-Mart of Tyler was closed for business in 2016 and no obligor occupies the real property. No Obligor has been cited nor has
there been any demand or threat of a demand that any Obligor be held responsible for the contamination at the site during Car-Mart’s
occupancy nor since the closure of its business operations at the site.

 

We know of no
other demands or threat of demands that has been made regarding environmental matters.

 

 

 

 

 

 

 

     

     

    

 

SCHEDULE 9.1.15

to

Second Amended and Restated

Loan and Security Agreement

 

RESTRICTIVE AGREEMENTS

 

 

NO           RESTRICTIVE            AGREEMENTS.

 

 

 

 

 

     

     

    

 

SCHEDULE 9.1.16

to

Second Amended and Restated

Loan and Security Agreement

 

LITIGATION

 

		1.	Proceedings and investigations pending against Parent or its Subsidiaries:

 

		a.	Kendall Butler v. America’s Car-Mart, Inc.

Tulsa County (OK) District Court, Case
No. CJ-2016-02120

Summary: Multiple claims revolving
around the Debt Cancellation Agreement and later a repossession. Claims include breach of contract, conversion, wrongful repossession,
breach of peace and nuisance. ACM is seeking mediation at this time.

 

		b.	America’s Car-Mart, Inc. v. Derrick Williamson

Greene County (MO) Circuit Court, Case
No. 1531-AC07361

Summary: Counterclaim to deficiency
suit. Mutual Release agreed upon – awaiting Dismissal Order.

 

		c.	Florence Matthews v. America’s Car-Mart, Inc.

Lee County (AR) Circuit Court, Case
No. 39CV-16-104

Summary: Complaint alleges breach of
service contract due to failure to repair. ACM disputes that claim and has answered as such.

 

		d.	John McAnally v. America’s Car Mart, Inc.

Lauderdale County (AL) District Court,
Case No. DV16-158

Summary: Complaint alleges breach of
contract, fraud and conversion related to repossession of vehicle. ACM has filed its Answer and filed a Motion to Disqualify Plaintiff’s
Counsel. ACM anticipates a nominal settlement on the case at this time.

 

		e.	Teresa Nance v. America’s Car Mart, Inc.

Lowndes County (MS) County Court, Case
No. 2016-0389-CV2

Summary: Complaint alleges Fraud due
to a discrepancy between the Vehicle’s Odometer and the Odometer Statement provided by ACM. ACM has filed its Answer disputing
the allegations and filed a Motion to Compel Arbitration.

 

		f.	Willie Matlock v. Car Mart (sic)

Bowie County (TX) Justice Court, Case
No. 16SC-00479-JP1-1

Summary: Small Claims complaint seeking
compensation for property damage caused by a tree falling at Texarkana, TX location. Court entered Order for Judgment against TCM
for approximately $2,100. Currently within appeals period but TCM does not plan to appeal.

 

		2.	Threatened proceedings or investigations of which Parent or its Subsidiaries are aware:

 

Parent and Subsidiaries are not aware
of any threatened proceedings or investigations.

 

 

		3.	Pending Commercial Tort Claim of any Obligor:

 

No pending commercial tort claims
are pending at this time.

 

     

     

    

 

SCHEDULE 9.1.18

to

Second Amended and Restated

Loan and Security Agreement

 

PENSION PLAN DISCLOSURES

 

 

There are no pension plan disclosures.

 

 

 

 

     

     

    

 

SCHEDULE 9.1.20

to

Second Amended and Restated

Loan and Security Agreement

 

LABOR CONTRACTS

 

Parent and its Subsidiaries are party to the following collective
bargaining agreements, management agreements and consulting agreements:

 

NO            LABOR            CONTRACTS

 

 

 

     

     

    

SCHEDULE 10.2.2

to

Second Amended and Restated

Loan and Security Agreement

 

EXISTING LIENS

 

Parent and its Subsidiaries are subject to one Promissory
Note for the purchase of the Car-Mart of Tulsa South location:

 

	 	Borrower:	ACM
	 	Payee:	Mary Jo Samuel Living Trust Dated March 24, 1998
	 	Original Indebtedness:	$550,000.00
	 	Current Indebtedness:	$456,294.30 as of 12/05/2016

  

ACM purchased the real property located at 4810 S.
Peoria Ave., Tulsa, OK 74105 on December 15, 2015. Said real property secures the Promissory Note and Mortgage payable to the Payee
on a five year amortization.

 

 

 

     

     

    

 

SCHEDULE 10.2.17

to

Second Amended and Restated

Loan and Security Agreement

 

EXISTING AFFILIATE TRANSACTIONS

 

 

* Filed separately with the Commission under an application for confidential
treatment (2 pages).

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