Document:

Credit Agreement

 Exhibit 10.1 
  

 CREDIT AGREEMENT 
 by and among 
 CAPTARIS, INC. 
 as Borrower, 
 THE LENDERS THAT ARE SIGNATORIES HERETO 
 as the Lenders, 
 and

 WELLS FARGO FOOTHILL, LLC 
 as the Arranger and Administrative Agent 
 Dated as of January 2, 2008 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	1.	 	DEFINITIONS AND CONSTRUCTION	  	1
				
		 	1.1	  	Definitions	  	1
				
		 	1.2	  	Accounting Terms	  	1
				
		 	1.3	  	Code	  	1
				
		 	1.4	  	Construction	  	1
				
		 	1.5	  	Schedules and Exhibits	  	2
			
	2.	 	LOAN AND TERMS OF PAYMENT	  	2
				
		 	2.1	  	Revolver Advances	  	2
				
		 	2.2	  	Increase in Revolver Commitments	  	2
				
		 	2.3	  	Borrowing Procedures and Settlements	  	3
				
		 	2.4	  	Payments; Prepayments	  	7
				
		 	2.5	  	Overadvances	  	9
				
		 	2.6	  	Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations	  	10
				
		 	2.7	  	Crediting Payments	  	11
				
		 	2.8	  	Designated Account	  	11
				
		 	2.9	  	Maintenance of Loan Account; Statements of Obligations	  	11
				
		 	2.10	  	Fees	  	11
				
		 	2.11	  	Letters of Credit	  	12
				
		 	2.12	  	LIBOR Option	  	14
				
		 	2.13	  	Capital Requirements	  	16
			
	3.	 	CONDITIONS; TERM OF AGREEMENT	  	17
				
		 	3.1	  	Conditions Precedent to the Initial Extension of Credit	  	17
				
		 	3.2	  	Conditions Precedent to all Extensions of Credit	  	17
				
		 	3.3	  	Term	  	17

  

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		 	3.4	  	Effect of Termination	  	17
				
		 	3.5	  	Early Termination by Borrower	  	17
				
		 	3.6	  	Conditions Subsequent to the Initial Extension of Credit	  	18
			
	4.	 	REPRESENTATIONS AND WARRANTIES	  	18
				
		 	4.1	  	Due Organization and Qualification; Subsidiaries	  	18
				
		 	4.2	  	Due Authorization; No Conflict	  	19
				
		 	4.3	  	Governmental Consents	  	19
				
		 	4.4	  	Binding Obligations; Perfected Liens	  	19
				
		 	4.5	  	Title to Assets; No Encumbrances	  	19
				
		 	4.6	  	Jurisdiction of Organization; Location of Chief Executive Office; Organizational Identification Number; Commercial Tort Claims	  	20
				
		 	4.7	  	Litigation	  	20
				
		 	4.8	  	Compliance with Laws	  	20
				
		 	4.9	  	No Material Adverse Change	  	20
				
		 	4.10	  	Fraudulent Transfer	  	21
				
		 	4.11	  	Employee Benefits	  	21
				
		 	4.12	  	Environmental Condition	  	21
				
		 	4.13	  	Intellectual Property	  	21
				
		 	4.14	  	Leases	  	21
				
		 	4.15	  	Deposit Accounts and Securities Accounts	  	21
				
		 	4.16	  	Complete Disclosure	  	21
				
		 	4.17	  	Material Contracts	  	22
				
		 	4.18	  	Patriot Act	  	22
				
		 	4.19	  	Indebtedness	  	22
				
		 	4.20	  	Payment of Taxes	  	22
				
		 	4.21	  	Margin Stock	  	23
				
		 	4.22	  	Governmental Regulation	  	23

  

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		 	4.23	  	OFAC	  	23
				
		 	4.24	  	ODT Acquisition Documents	  	23
				
		 	4.25	  	Location of Inventory and Equipment	  	23
				
		 	4.26	  	Inventory Records	  	23
				
		 	4.27	  	Inactive Subsidiaries	  	23
			
	5.	 	AFFIRMATIVE COVENANTS	  	23
				
		 	5.1	  	Financial Statements, Reports, Certificates	  	23
				
		 	5.2	  	Collateral Reporting	  	24
				
		 	5.3	  	Existence	  	24
				
		 	5.4	  	Maintenance of Properties	  	24
				
		 	5.5	  	Taxes	  	24
				
		 	5.6	  	Insurance	  	24
				
		 	5.7	  	Inspection	  	25
				
		 	5.8	  	Compliance with Laws	  	25
				
		 	5.9	  	Environmental	  	25
				
		 	5.10	  	Disclosure Updates	  	25
				
		 	5.11	  	Formation of Subsidiaries	  	26
				
		 	5.12	  	Further Assurances	  	26
				
		 	5.13	  	Lender Meetings	  	26
				
		 	5.14	  	Material Contracts	  	26
				
		 	5.15	  	Location of Inventory and Equipment	  	27
				
		 	5.16	  	Assignable Material Contracts	  	27
			
	6.	 	NEGATIVE COVENANTS	  	27
				
		 	6.1	  	Indebtedness	  	27
				
		 	6.2	  	Liens	  	27
				
		 	6.3	  	Restrictions on Fundamental Changes	  	27
				
		 	6.4	  	Disposal of Assets	  	28

  

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		 	6.5	  	Change Name	  	28
				
		 	6.6	  	Nature of Business	  	28
				
		 	6.7	  	Prepayments and Amendments	  	28
				
		 	6.8	  	Change of Control	  	28
				
		 	6.9	  	Distributions	  	29
				
		 	6.10	  	Accounting Methods	  	29
				
		 	6.11	  	Investments	  	29
				
		 	6.12	  	Transactions with Affiliates	  	30
				
		 	6.13	  	Use of Proceeds	  	30
				
		 	6.14	  	Consignments	  	30
				
		 	6.15	  	Inventory and Equipment with Bailees	  	30
			
	7.	 	FINANCIAL COVENANTS	  	30
			
	8.	 	EVENTS OF DEFAULT	  	32
			
	9.	 	RIGHTS AND REMEDIES	  	33
				
		 	9.1	  	Rights and Remedies	  	33
				
		 	9.2	  	Remedies Cumulative	  	34
			
	10.	 	WAIVERS; INDEMNIFICATION	  	34
				
		 	10.1	  	Demand; Protest; etc.	  	34
				
		 	10.2	  	The Lender Group’s Liability for Collateral	  	34
				
		 	10.3	  	Indemnification	  	34
			
	11.	 	NOTICES	  	35
			
	12.	 	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE	  	36
			
	13.	 	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS	  	37
				
		 	13.1	  	Assignments and Participations	  	37
				
		 	13.2	  	Successors	  	39
			
	14.	 	AMENDMENTS; WAIVERS	  	39
				
		 	14.1	  	Amendments and Waivers	  	39

  

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		 	14.2	  	Replacement of Holdout Lender	  	40
				
		 	14.3	  	No Waivers; Cumulative Remedies	  	41
			
	15.	 	AGENT; THE LENDER GROUP	  	41
				
		 	15.1	  	Appointment and Authorization of Agent	  	41
				
		 	15.2	  	Delegation of Duties	  	42
				
		 	15.3	  	Liability of Agent	  	42
				
		 	15.4	  	Reliance by Agent	  	42
				
		 	15.5	  	Notice of Default or Event of Default	  	42
				
		 	15.6	  	Credit Decision	  	43
				
		 	15.7	  	Costs and Expenses; Indemnification	  	43
				
		 	15.8	  	Agent in Individual Capacity	  	43
				
		 	15.9	  	Successor Agent	  	44
				
		 	15.10	  	Lender in Individual Capacity	  	44
				
		 	15.11	  	Collateral Matters	  	44
				
		 	15.12	  	Restrictions on Actions by Lenders; Sharing of Payments	  	45
				
		 	15.13	  	Agency for Perfection	  	45
				
		 	15.14	  	Payments by Agent to the Lenders	  	46
				
		 	15.15	  	Concerning the Collateral and Related Loan Documents	  	46
				
		 	15.16	  	Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information	  	46
				
		 	15.17	  	Several Obligations; No Liability	  	47
			
	16.	 	WITHHOLDING TAXES	  	47
			
	17.	 	GENERAL PROVISIONS	  	49
				
		 	17.1	  	Effectiveness	  	49
				
		 	17.2	  	Section Headings	  	49
				
		 	17.3	  	Interpretation	  	49
				
		 	17.4	  	Severability of Provisions	  	50

  

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		 	17.5	  	Bank Product Providers	  	50
				
		 	17.6	  	Debtor-Creditor Relationship	  	50
				
		 	17.7	  	Counterparts; Electronic Execution	  	50
				
		 	17.8	  	Revival and Reinstatement of Obligations	  	50
				
		 	17.9	  	Confidentiality	  	50
				
		 	17.10	  	Lender Group Expenses	  	51
				
		 	17.11	  	USA PATRIOT Act	  	51
				
		 	17.12	  	Integration	  	51

 EXHIBITS AND SCHEDULES 
  

			
	Exhibit A-1	  	Form of Assignment and Acceptance
		
	Exhibit C-1	  	Form of Compliance Certificate
		
	Exhibit C-2	  	Form of Credit Amount Certificate
		
	Exhibit L-1	  	Form of LIBOR Notice
		
	Schedule A-1	  	Agent’s Account
		
	Schedule A-2	  	Authorized Persons
		
	Schedule C-1	  	Commitments
		
	Schedule D-1	  	Designated Account
		
	Schedule P-1	  	Permitted Investments
		
	Schedule P-2	  	Permitted Liens
		
	Schedule P-3	  	Permitted Intercompany Advances
		
	Schedule R-1	  	Real Property Collateral
		
	Schedule 1.1	  	Definitions
		
	Schedule 3.1	  	Conditions Precedent
		
	Schedule 3.6	  	Conditions Subsequent
		
	Schedule 4.1(b)	  	Capitalization of Borrower
		
	Schedule 4.1(c)	  	Capitalization of Borrower’s Subsidiaries
		
	Schedule 4.6(a)	  	Jurisdictions of Organization
		
	Schedule 4.6(b)	  	Chief Executive Offices
		
	Schedule 4.6(c)	  	Organizational Identification Numbers
		
	Schedule 4.6(d)	  	Commercial Tort Claims
		
	Schedule 4.7(b)	  	Litigation

  

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	Schedule 4.12	  	Environmental Matters
		
	Schedule 4.15	  	Deposit Accounts and Securities Accounts
		
	Schedule 4.17	  	Material Contracts
		
	Schedule 4.19	  	Permitted Indebtedness
		
	Schedule 4.25	  	Locations of Inventory and Equipment
		
	Schedule 5.1	  	Financial Statements, Reports, Certificates
		
	Schedule 5.2	  	Collateral Reporting

  

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 CREDIT AGREEMENT 
 THIS CREDIT AGREEMENT (this “Agreement”), is entered into as of January 2, 2008, by and among the lenders identified on the signature pages hereof (such lenders, together with their
respective successors and permitted assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), WELLS FARGO FOOTHILL, LLC, a Delaware limited liability company, as
the arranger and administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, “Agent”), and CAPTARIS, INC., a Washington corporation (“Borrower”).

 The parties agree as follows: 
  

	(a)	DEFINITIONS AND CONSTRUCTION. 

 1.1
Definitions. Capitalized terms used in this Agreement shall have the meanings specified therefor on Schedule 1.1. 
 1.2
Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. When used herein, the term “financial statements” shall include the notes and schedules thereto. Whenever the
term “Borrower” is used in respect of a financial covenant or a related definition, it shall be understood to mean Borrower and its Subsidiaries on a consolidated basis, unless the context clearly requires otherwise. 
 1.3 Code. Any terms used in this Agreement that are defined in the Code shall be construed and defined as set forth in the Code
unless otherwise defined herein; provided, however, that to the extent that the Code is used to define any term herein and such term is defined differently in different Articles of the Code, the definition of such term contained in
Article 9 of the Code shall govern. 
 1.4 Construction. Unless the context of this Agreement or any other Loan Document
clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms “includes” and “including” are not limiting, and the term “or” has, except where
otherwise indicated, the inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement or any other Loan Document
refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. Section, subsection, clause, schedule, and exhibit references
herein are to this Agreement unless otherwise specified. Any reference in this Agreement or in any other Loan Document to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals,
replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and
supplements set forth herein). The words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities,
accounts, and contract rights. Any reference herein or in any other Loan Document to the satisfaction or repayment in full of the Obligations shall mean the repayment in full in cash (or, in the case of Letters of Credit or Bank Products, the cash
collateralization or support by a standby letter of credit in accordance with the terms hereof) of all Obligations other than unasserted contingent indemnification Obligations and other than any Bank Product Obligations that, at such time, are
allowed by the applicable Bank Product Provider to remain outstanding and that are not required by the provisions of this Agreement to be repaid or cash collateralized. Any reference herein to any Person shall be construed to include such
Person’s successors and assigns. Any requirement of a writing contained herein or in any other Loan Document shall be satisfied by the transmission of a Record. 
  

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 1.5 Schedules and Exhibits. All of the schedules and exhibits attached to this
Agreement shall be deemed incorporated herein by reference. 
  

	(b)	LOAN AND TERMS OF PAYMENT. 

 2.1 Revolver
Advances. 
 (a) Subject to the terms and conditions of this Agreement, and during the term of this Agreement, each
Lender with a Revolver Commitment agrees (severally, not jointly or jointly and severally) to make advances (“Advances”) to Borrower in an amount at any one time outstanding not to exceed such Lender’s Pro Rata Share of an
amount equal to the lesser of (i) the Maximum Revolver Amount less the Letter of Credit Usage at such time, and (ii) the Credit Amount at such time less the Letter of Credit Usage at such time. 
 (b) Amounts borrowed pursuant to this Section 2.1 may be repaid and, subject to the terms and conditions of this Agreement,
reborrowed at any time during the term of this Agreement. The outstanding principal amount of the Advances, together with interest accrued thereon, shall be due and payable on the Maturity Date or, if earlier, on the date on which they are declared
due and payable pursuant to the terms of this Agreement. 
 2.2 Increase in Revolver Commitments. 
 (a) From and after the Closing Date through but excluding the date that is 12 months after the Closing Date (but on only 1 occasion), the
existing Revolver Commitments and the Maximum Revolver Amount may be increased (such an increase that satisfies the terms and conditions herein, the “Approved Increase”) by an amount equal to the Available Increase Amount at the
option of Borrower by delivery of a written notice of a proposed increase to Agent if (i) each of the conditions precedent set forth in Section 3.2 are satisfied as of the Increase Effective Date and (ii) Borrower shall have
paid to Agent all fees due and payable as of the Increase Effective Date pursuant to the Fee Letter. Such notice shall specify the date on which the proposed increase is to be effective (the “Increase Effective Date”), which date
shall not be less than 10 Business Days after the date of such notice. 
 (b) So long as each of the requirements set forth in
Section 2.2(a) are satisfied, the increased Revolver Commitments with respect to the Approved Increase shall become effective, as of such Increase Effective Date. 
 (c) Agent shall invite each Lender to increase its Revolver Commitment (it being understood that no Lender, other than WFF, shall be
obligated to increase its Revolver Commitment) or may invite any other Person who is reasonably satisfactory to Agent and Borrower to become a Lender in connection with an Approved Increase by executing a joinder agreement, in form and substance
reasonably satisfactory to Agent, to which such Person, Borrower, and Agent are party (the “Increase Joinder”). Such Increase Joinder may, with the consent of Borrower and the Required Lenders, effect such amendments to this
Agreement and the other Loan Documents as may be necessary or appropriate, in the opinion of Agent, to effectuate the provisions of this Section 2.2. WFF shall increase its Revolver Commitment by the full amount of the Approved Increase
in the event no other Lender or other Person agrees to increase its Revolver Commitment or execute an Increase Joinder. 
 (d)
Unless otherwise specifically provided herein, all references in this Agreement and any other Loan Document to Advances shall be deemed, unless the context otherwise requires, to include Advances made pursuant to the increased Revolver Commitments
and Maximum Revolver Amount pursuant to this Section 2.2. 
  

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 (e) To the extent any Advances or Letters of Credit are outstanding on the Increase
Effective Date, each of the Lenders having a Revolver Commitment prior to the Increase Effective Date (the “Pre-Increase Revolver Lenders”) shall assign to any Lender which is acquiring a new or additional Revolver
Commitment on the Increase Effective Date (the “Post-Increase Revolver Lenders”), and such Post-Increase Revolver Lenders shall purchase from each Pre-Increase Revolver Lender, at the principal amount thereof, such interests in the
Advances and participation interests in Letters of Credit on such Increase Effective Date as shall be necessary in order that, after giving effect to all such assignments and purchases, such Advances and participation interests in Letters of Credit
will be held by Pre-Increase Revolver Lenders and Post-Increase Revolver Lenders ratably in accordance with their Pro Rata Share after giving effect to such increased Revolver Commitments. 
 (f) The Advances, Revolver Commitments, and Maximum Revolver Amount established pursuant to this Section 2.2 shall constitute
Advances, Revolver Commitments, and Maximum Revolver Amount under, and shall be entitled to all the benefits afforded by, this Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit equally and ratably from the
guarantees and Liens created by the Loan Documents. Borrower shall take any actions reasonably required by Agent to ensure and demonstrate that the Liens granted by the Loan Documents continue to be perfected under the Code or otherwise after giving
effect to the establishment of any such new Revolver Commitments and Maximum Revolver Amount. 
 2.3 Borrowing Procedures and
Settlements. 
 (a) Procedure for Borrowing. Each Borrowing shall be made by a written request by an
Authorized Person delivered to Agent. Unless Swing Lender is not obligated to make a Swing Loan pursuant to Section 2.3(b) below, such notice must be received by Agent no later than 10:00 a.m. (California time) on the Business Day that
is the requested Funding Date specifying (i) the amount of such Borrowing, and (ii) the requested Funding Date, which shall be a Business Day; provided, however, that if Swing Lender is not obligated to make a Swing Loan as
to a requested Borrowing, such notice must be received by Agent no later than 10:00 a.m. (California time) on the Business Day prior to the date that is the requested Funding Date. At Agent’s election, in lieu of delivering the above-described
written request, any Authorized Person may give Agent telephonic notice of such request by the required time. In such circumstances, Borrower agrees that any such telephonic notice will be confirmed in writing within 24 hours of the giving of such
telephonic notice, but the failure to provide such written confirmation shall not affect the validity of the request. 
 (b)
Making of Swing Loans. In the case of a request for an Advance and so long as either (i) the aggregate amount of Swing Loans made since the last Settlement Date, minus the amount of Collections or payments applied to Swing Loans since
the last Settlement Date, plus the amount of the requested Advance does not exceed $2,000,000, or (ii) Swing Lender, in its sole discretion, shall agree to make a Swing Loan notwithstanding the foregoing limitation, Swing Lender shall make an
Advance in the amount of such Borrowing (any such Advance made solely by Swing Lender pursuant to this Section 2.3(b) being referred to as a “Swing Loan” and such Advances being referred to collectively as “Swing
Loans”) available to Borrower on the Funding Date applicable thereto by transferring immediately available funds to Borrower’s Designated Account. Each Swing Loan shall be deemed to be an Advance hereunder and shall be subject to all
the terms and conditions applicable to other Advances, except that all payments on any Swing Loan shall be payable to Swing Lender solely for its own account. Subject to the provisions of Section 2.3(d)(ii), Swing Lender shall not make
and shall not be obligated to make any Swing Loan if Swing Lender has actual knowledge that (i) one or more of the applicable conditions precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the
applicable Borrowing, or (ii) the requested Borrowing would exceed the Availability on such Funding Date. Swing Lender shall not otherwise be required to determine whether the applicable conditions precedent set forth in Section 3
have been satisfied on the Funding Date applicable thereto prior to making any Swing Loan. The Swing Loans shall be secured by the Agent’s Liens, constitute Obligations hereunder, and bear interest at the rate applicable from time to time to
Advances that are Base Rate Loans. 
  

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 (c) Making of Loans. 
 (i) In the event that Swing Lender is not obligated to make a Swing Loan, then promptly after receipt of a request for a Borrowing
pursuant to Section 2.3(a), Agent shall notify the Lenders, not later than 1:00 p.m. (California time) on the Business Day immediately preceding the Funding Date applicable thereto, by telecopy, telephone, or other similar form of
transmission, of the requested Borrowing. Each Lender shall make the amount of such Lender’s Pro Rata Share of the requested Borrowing available to Agent in immediately available funds, to Agent’s Account, not later than 10:00 a.m.
(California time) on the Funding Date applicable thereto. After Agent’s receipt of the proceeds of such Advances, Agent shall make the proceeds thereof available to Borrower on the applicable Funding Date by transferring immediately available
funds equal to such proceeds received by Agent to the Designated Account; provided, however, that, subject to the provisions of Section 2.3(d)(ii), Agent shall not request any Lender to make, and no Lender shall have the
obligation to make, any Advance if (1) one or more of the applicable conditions precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the applicable Borrowing unless such condition has been waived,
or (2) the requested Borrowing would exceed the Availability on such Funding Date. 
 (ii) Unless Agent receives notice
from a Lender prior to 9:00 a.m. (California time) on the date of a Borrowing, that such Lender will not make available as and when required hereunder to Agent for the account of Borrower the amount of that Lender’s Pro Rata Share of the
Borrowing, Agent may assume that each Lender has made or will make such amount available to Agent in immediately available funds on the Funding Date and Agent may (but shall not be so required), in reliance upon such assumption, make available to
Borrower on such date a corresponding amount. If any Lender shall not have made its full amount available to Agent in immediately available funds and if Agent in such circumstances has made available to Borrower such amount, that Lender shall on the
Business Day following such Funding Date make such amount available to Agent, together with interest at the Defaulting Lender Rate for each day during such period. A notice submitted by Agent to any Lender with respect to amounts owing under this
subsection shall be conclusive, absent manifest error. If such amount is so made available, such payment to Agent shall constitute such Lender’s Advance on the date of Borrowing for all purposes of this Agreement. If such amount is not made
available to Agent on the Business Day following the Funding Date, Agent will notify Borrower of such failure to fund and, upon demand by Agent, Borrower shall pay such amount to Agent for Agent’s account, together with interest thereon for
each day elapsed since the date of such Borrowing, at a rate per annum equal to the interest rate applicable at the time to the Advances composing such Borrowing. The failure of any Lender to make any Advance on any Funding Date shall not relieve
any other Lender of any obligation hereunder to make an Advance on such Funding Date, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by such other Lender on any Funding Date. 
 (iii) Agent shall not be obligated to transfer to a Defaulting Lender any payments made by Borrower to Agent for the Defaulting
Lender’s benefit, and, in the absence of such transfer to the Defaulting Lender, Agent shall transfer any such payments to each other non-Defaulting Lender member of the Lender Group ratably in accordance with their Commitments (but only to the
extent that such Defaulting Lender’s Advance was funded by the other members of the Lender Group) or, if so directed by Borrower and if no Default or Event of Default had occurred and is continuing (and to the extent such Defaulting
Lender’s Advance was not funded by the Lender Group), retain same to be re-advanced to Borrower as if such Defaulting Lender had made Advances to Borrower. Subject to the foregoing, Agent may hold and, in its Permitted Discretion, re-lend to
Borrower for the account of such Defaulting Lender the amount of all such payments received and retained by Agent for the account of such Defaulting Lender. Solely for the purposes of voting or consenting to matters with respect to the Loan
Documents, such Defaulting Lender shall be deemed not to be a “Lender” and such Lender’s Commitment shall be deemed to be zero. This Section shall remain effective with respect to such Lender until (x) the Obligations under this
Agreement shall have been 

  

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declared or shall have become immediately due and payable, (y) the non-Defaulting Lenders, Agent, and Borrower shall have waived such Defaulting
Lender’s default in writing, or (z) the Defaulting Lender makes its Pro Rata Share of the applicable Advance and pays to Agent all amounts owing by Defaulting Lender in respect thereof. The operation of this Section shall not be construed
to increase or otherwise affect the Commitment of any Lender, to relieve or excuse the performance by such Defaulting Lender or any other Lender of its duties and obligations hereunder, or to relieve or excuse the performance by Borrower of its
duties and obligations hereunder to Agent or to the Lenders other than such Defaulting Lender. Any such failure to fund by any Defaulting Lender shall constitute a material breach by such Defaulting Lender of this Agreement and shall entitle
Borrower at its option, upon written notice to Agent, to arrange for a substitute Lender to assume the Commitment of such Defaulting Lender, such substitute Lender to be reasonably acceptable to Agent. In connection with the arrangement of such a
substitute Lender, the Defaulting Lender shall have no right to refuse to be replaced hereunder, and agrees to execute and deliver a completed form of Assignment and Acceptance in favor of the substitute Lender (and agrees that it shall be deemed to
have executed and delivered such document if it fails to do so) subject only to being repaid its share of the outstanding Obligations (other than Bank Product Obligations, but including an assumption of its Pro Rata Share of the Risk Participation
Liability) without any premium or penalty of any kind whatsoever; provided, however, that any such assumption of the Commitment of such Defaulting Lender shall not be deemed to constitute a waiver of any of the Lender Groups’ or
Borrower’s rights or remedies against any such Defaulting Lender arising out of or in relation to such failure to fund. 
 (d) Protective Advances and Optional Overadvances. 
 (i) Agent hereby is authorized by Borrower and
the Lenders, from time to time in Agent’s sole discretion, (A) after the occurrence and during the continuance of a Default or an Event of Default, or (B) at any time that any of the other applicable conditions precedent set forth in
Section 3 are not satisfied, to make Advances to Borrower on behalf of the Lenders that Agent, in its Permitted Discretion deems necessary or desirable (1) to preserve or protect the Collateral, or any portion thereof, or
(2) to enhance the likelihood of repayment of the Obligations (other than the Bank Product Obligations) (any of the Advances described in this Section 2.3(d)(i) shall be referred to as “Protective Advances”).

 (ii) Any contrary provision of this Agreement notwithstanding, the Lenders hereby authorize Agent or Swing Lender, as
applicable, and either Agent or Swing Lender, as applicable, may, but is not obligated to, knowingly and intentionally, continue to make Advances (including Swing Loans) to Borrower notwithstanding that an Overadvance exists or thereby would be
created, so long as (A) after giving effect to such Advances, the outstanding Revolver Usage does not exceed the Credit Amount by more than $2,000,000, and (B) after giving effect to such Advances, the outstanding Revolver Usage (except
for and excluding amounts charged to the Loan Account for interest, fees, or Lender Group Expenses) does not exceed the Maximum Revolver Amount. In the event Agent obtains actual knowledge that the Revolver Usage exceeds the amounts permitted by the
immediately foregoing provisions, regardless of the amount of, or reason for, such excess, Agent shall notify the Lenders as soon as practicable (and prior to making any (or any additional) intentional Overadvances (except for and excluding amounts
charged to the Loan Account for interest, fees, or Lender Group Expenses) unless Agent determines that prior notice would result in imminent harm to the Collateral or its value), and the Lenders with Revolver Commitments thereupon shall, together
with Agent, jointly determine the terms of arrangements that shall be implemented with Borrower intended to reduce, within a reasonable time, the outstanding principal amount of the Advances to Borrower to an amount permitted by the preceding
sentence. In such circumstances, if any Lender with a Revolver Commitment objects to the proposed terms of reduction or repayment of any Overadvance, the terms of reduction or repayment thereof shall be implemented according to the determination of
the Required Lenders. Each Lender with a Revolver Commitment shall be obligated to settle with Agent as provided in Section 2.3(e) for the amount of such Lender’s Pro Rata Share of any unintentional Overadvances by Agent reported to
such Lender, any intentional Overadvances made as permitted under this Section 2.3(d)(ii), and any Overadvances resulting from the charging to the Loan Account of interest, fees, or Lender Group Expenses. 
  

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 (iii) Each Protective Advance and each Overadvance shall be deemed to be an Advance
hereunder, except that no Protective Advance or Overadvance shall be eligible to be a LIBOR Rate Loan and, prior to Settlement therefor, all payments on the Protective Advances shall be payable to Agent solely for its own account. The Protective
Advances and Overadvances shall be repayable on demand, secured by the Agent’s Liens, constitute Obligations hereunder, and bear interest at the rate applicable from time to time to Advances that are Base Rate Loans. The provisions of this
Section 2.3(d) are for the exclusive benefit of Agent, Swing Lender, and the Lenders and are not intended to benefit Borrower in any way. 
 (e) Settlement. It is agreed that each Lender’s funded portion of the Advances is intended by the Lenders to equal, at all times, such Lender’s Pro Rata Share of the outstanding Advances. Such
agreement notwithstanding, Agent, Swing Lender, and the other Lenders agree (which agreement shall not be for the benefit of Borrower) that in order to facilitate the administration of this Agreement and the other Loan Documents, settlement among
the Lenders as to the Advances, the Swing Loans, and the Protective Advances shall take place on a periodic basis in accordance with the following provisions: 
 (i) Agent shall request settlement (“Settlement”) with the Lenders on a weekly basis, or on a more frequent basis if so
determined by Agent (1) on behalf of Swing Lender, with respect to the outstanding Swing Loans, (2) for itself, with respect to the outstanding Protective Advances, and (3) with respect to Borrower’s or its Subsidiaries’
Collections or payments received, as to each by notifying the Lenders by telecopy, telephone, or other similar form of transmission, of such requested Settlement, no later than 2:00 p.m. (California time) on the Business Day immediately prior to the
date of such requested Settlement (the date of such requested Settlement being the “Settlement Date”). Such notice of a Settlement Date shall include a summary statement of the amount of outstanding Advances, Swing Loans, and
Protective Advances for the period since the prior Settlement Date. Subject to the terms and conditions contained herein (including Section 2.3(c)(iii)): (y) if a Lender’s balance of the Advances (including Swing Loans and
Protective Advances) exceeds such Lender’s Pro Rata Share of the Advances (including Swing Loans and Protective Advances) as of a Settlement Date, then Agent shall, by no later than 12:00 p.m. (California time) on the Settlement Date, transfer
in immediately available funds to a Deposit Account of such Lender (as such Lender may designate), an amount such that each such Lender shall, upon receipt of such amount, have as of the Settlement Date, its Pro Rata Share of the Advances (including
Swing Loans and Protective Advances), and (z) if a Lender’s balance of the Advances (including Swing Loans and Protective Advances) is less than such Lender’s Pro Rata Share of the Advances (including Swing Loans and Protective
Advances) as of a Settlement Date, such Lender shall no later than 12:00 p.m. (California time) on the Settlement Date transfer in immediately available funds to the Agent’s Account, an amount such that each such Lender shall, upon transfer of
such amount, have as of the Settlement Date, its Pro Rata Share of the Advances (including Swing Loans and Protective Advances). Such amounts made available to Agent under clause (z) of the immediately preceding sentence shall be applied
against the amounts of the applicable Swing Loans or Protective Advances and, together with the portion of such Swing Loans or Protective Advances representing Swing Lender’s Pro Rata Share thereof, shall constitute Advances of such Lenders. If
any such amount is not made available to Agent by any Lender on the Settlement Date applicable thereto to the extent required by the terms hereof, Agent shall be entitled to recover for its account such amount on demand from such Lender together
with interest thereon at the Defaulting Lender Rate. 
 (ii) In determining whether a Lender’s balance of the Advances,
Swing Loans, and Protective Advances is less than, equal to, or greater than such Lender’s Pro Rata Share of the Advances, Swing Loans, and Protective Advances as of a Settlement Date, Agent shall, as part of the relevant Settlement, apply to
such balance the portion of payments actually received in good funds by Agent with respect to principal, interest, fees payable by Borrower and allocable to the Lenders hereunder, and proceeds of Collateral. 
  

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 (iii) Between Settlement Dates, Agent, to the extent Protective Advances or Swing Loans
are outstanding, may pay over to Agent or Swing Lender, as applicable, any Collections or payments received by Agent, that in accordance with the terms of this Agreement would be applied to the reduction of the Advances, for application to the
Protective Advances or Swing Loans. Between Settlement Dates, Agent, to the extent no Protective Advances or Swing Loans are outstanding, may pay over to Swing Lender any Collections or payments received by Agent, that in accordance with the terms
of this Agreement would be applied to the reduction of the Advances, for application to Swing Lender’s Pro Rata Share of the Advances. If, as of any Settlement Date, Collections or payments of Borrower or its Subsidiaries received since the
then immediately preceding Settlement Date have been applied to Swing Lender’s Pro Rata Share of the Advances other than to Swing Loans, as provided for in the previous sentence, Swing Lender shall pay to Agent for the accounts of the Lenders,
and Agent shall pay to the Lenders, to be applied to the outstanding Advances of such Lenders, an amount such that each Lender shall, upon receipt of such amount, have, as of such Settlement Date, its Pro Rata Share of the Advances. During the
period between Settlement Dates, Swing Lender with respect to Swing Loans, Agent with respect to Protective Advances, and each Lender (subject to the effect of agreements between Agent and individual Lenders) with respect to the Advances other than
Swing Loans and Protective Advances, shall be entitled to interest at the applicable rate or rates payable under this Agreement on the daily amount of funds employed by Swing Lender, Agent, or the Lenders, as applicable. 
 (f) Notation. Agent, as a non-fiduciary agent for Borrower, shall maintain a register showing the principal amount of the Advances,
owing to each Lender, including the Swing Loans owing to Swing Lender, and Protective Advances owing to Agent, and the interests therein of each Lender, from time to time and such records shall, absent manifest error, conclusively be presumed to be
correct and accurate. 
 (g) Lenders’ Failure to Perform. All Advances (other than Swing Loans and Protective
Advances) shall be made by the Lenders contemporaneously and in accordance with their Pro Rata Shares. It is understood that (i) no Lender shall be responsible for any failure by any other Lender to perform its obligation to make any Advance
(or other extension of credit) hereunder, nor shall any Commitment of any Lender be increased or decreased as a result of any failure by any other Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its
obligations hereunder shall excuse any other Lender from its obligations hereunder. 
 2.4 Payments; Prepayments. 

(a) Payments by Borrower. 
 (i) Except as otherwise expressly provided herein, all payments by Borrower shall be made to Agent’s Account for the account of the Lender Group and shall be made in immediately available funds, no later than
11:00 a.m. (California time) on the date specified herein. Any payment received by Agent later than 11:00 a.m. (California time) shall be deemed to have been received on the following Business Day and any applicable interest or fee shall continue to
accrue until such following Business Day. 
 (ii) Unless Agent receives notice from Borrower prior to the date on which any
payment is due to the Lenders that Borrower will not make such payment in full as and when required, Agent may assume that Borrower has made (or will make) such payment in full to Agent on such date in immediately available funds and Agent may (but
shall not be so required), in reliance upon such assumption, distribute to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent Borrower does not make such payment in full to Agent on the date when
due, each Lender severally shall repay to Agent on demand such amount distributed to such Lender, together with interest thereon at the Defaulting Lender Rate for each day from the date such amount is distributed to such Lender until the date
repaid. 
  

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 (b) Apportionment and Application. 
 (i) So long as no Application Event has occurred and is continuing and except as otherwise provided with respect to Defaulting Lenders,
all principal and interest payments shall be apportioned ratably among the Lenders (according to the unpaid principal balance of the Obligations to which such payments relate held by each Lender) and all payments of fees and expenses (other than
fees or expenses that are for Agent’s separate account) shall be apportioned ratably among the Lenders having a Pro Rata Share of the type of Commitment or Obligation to which a particular fee or expense relates. All payments to be made
hereunder by Borrower shall be remitted to Agent and all (subject to Section 2.4(b)(iv)) such payments, and all proceeds of Collateral received by Agent, shall be applied, so long as no Application Event has occurred and is continuing,
to reduce the balance of the Advances outstanding and, thereafter, to Borrower (to be wired to the Designated Account) or such other Person entitled thereto under applicable law. 
 (ii) At any time that an Application Event has occurred and is continuing and except as otherwise provided with respect to Defaulting
Lenders, all payments remitted to Agent and all proceeds of Collateral received by Agent shall be applied as follows: 
 (A)
first, to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then due to Agent under the Loan Documents, until paid in full, 
 (B) second, to pay any fees or premiums then due to Agent under the Loan Documents until paid in full, 
 (C) third, to pay interest due in respect of all Protective Advances until paid in full, 
 (D) fourth, to pay the principal of all Protective Advances until paid in full, 
 (E) fifth, ratably to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then due to any of
the Lenders under the Loan Documents, until paid in full, 
 (F) sixth, ratably to pay any fees or premiums then due
to any of the Lenders under the Loan Documents until paid in full, 
 (G) seventh, ratably to pay interest due in
respect of the Advances (other than Protective Advances) and the Swing Loans until paid in full, 
 (H) eighth,
ratably (i) to pay the principal of all Swing Loans until paid in full, (ii) to pay the principal of all Advances until paid in full, (iii) to Agent, to be held by Agent, for the ratable benefit of Issuing Lender and those Lenders
having a Revolver Commitment, as cash collateral in an amount up to 105% of the Letter of Credit Usage, and (iv) to Agent, to be held by Agent, for the benefit of the Bank Product Providers, as cash collateral in an amount up to the amount the
Bank Product Providers reasonably determine to be the credit exposure of Borrower and its Subsidiaries in respect of Bank Products, 
 (I) ninth, to pay any other Obligations, and 
 (J) tenth, to Borrower (to be wired to the Designated
Account) or such other Person entitled thereto under applicable law. 
  

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 (iii) Agent promptly shall distribute to each Lender, pursuant to the applicable wire
instructions received from each Lender in writing, such funds as it may be entitled to receive, subject to a Settlement delay as provided in Section 2.3(e). 
 (iv) In each instance, so long as no Application Event has occurred and is continuing, Section 2.4(b)(i) shall not apply to
any payment made by Borrower to Agent and specified by Borrower to be for the payment of specific Obligations then due and payable (or prepayable) under any provision of this Agreement. 
 (v) For purposes of Section 2.4(b)(ii), “paid in full” means payment in cash of all amounts owing under the Loan
Documents, including loan fees, service fees, professional fees, interest (and specifically including interest accrued after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether
or not any of the foregoing would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding. 
 (vi) In
the event of a direct conflict between the priority provisions of this Section 2.4 and any other provision contained in any other Loan Document, it is the intention of the parties hereto that such provisions be read together and
construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.4 shall control and govern.

 (c) [Intentionally Omitted]. 
 (d) Optional Prepayments. Borrower may prepay the principal of any Advance at any time in whole or in part. 
 (e) Mandatory Prepayments. If, at any time, (A) the Revolver Usage on such date exceeds (B) the Credit Amount (such
excess being referred to as the “Credit Amount Excess”), then, within 1 Business Day after receiving notice from Agent of the existence of any Credit Amount Excess, Borrower shall prepay the Obligations in accordance with
Section 2.4(f) in an aggregate amount equal to the Credit Amount Excess. 
 (f) Application of Mandatory
Prepayments. Each prepayment pursuant to Section 2.4(e) shall, (A) so long as no Application Event shall have occurred and be continuing, be applied, first, to the outstanding principal amount of the Advances until
paid in full and second, to cash collateralize the Letters of Credit in an amount equal to 105% of the then extant Letter of Credit Usage, and (B) if an Application Event shall have occurred and be continuing, be applied in the manner
set forth in Section 2.4(b)(ii). 
 2.5 Overadvances. If, at any time or for any reason, the amount of
Obligations owed by Borrower to the Lender Group pursuant to Section 2.1 or Section 2.11 is greater than any of the limitations set forth in Section 2.1 or Section 2.11, as applicable (an
“Overadvance”), Borrower, within 1 Business Day after receiving notice from Agent of the existence of such Overadvance, shall pay to Agent, in cash, the amount of such excess, which amount shall be used by Agent to reduce the
Obligations in accordance with the priorities set forth in Section 2.4(b). Borrower promises to pay the Obligations (including principal, interest, fees, costs, and expenses) in Dollars in full on the Maturity Date or, if earlier, on the
date on which the Obligations are declared due and payable pursuant to the terms of this Agreement. 
  

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 2.6 Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations.

 (a) Interest Rates. Except as provided in Section 2.6(c), all Obligations (except for undrawn Letters of
Credit and except for Bank Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof as follows: 
 (i) if the relevant Obligation is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus the LIBOR Rate Margin, and

 (ii) otherwise, at a per annum rate equal to the Base Rate plus the Base Rate Margin. 
 (b) Letter of Credit Fee. Borrower shall pay Agent (for the ratable benefit of the Lenders with a Revolver Commitment, subject to
any agreements between Agent and individual Lenders), a Letter of Credit fee (in addition to the charges, commissions, fees, and costs set forth in Section 2.11(e)) which shall accrue at a rate equal to 2.75% per annum times
the Daily Balance of the undrawn amount of all outstanding Letters of Credit. 
 (c) Default Rate. Upon the
occurrence and during the continuation of an Event of Default and at the election of the Required Lenders, 
 (i) all
Obligations (except for undrawn Letters of Credit and except for Bank Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof at a per annum rate equal to 2
percentage points above the per annum rate otherwise applicable hereunder, and 
 (ii) the Letter of Credit fee provided for
in Section 2.6(b) shall be increased to 2 percentage points above the per annum rate otherwise applicable hereunder. 
 (d) Payment. Except as provided to the contrary in Section 2.10 or Section 2.12(a), interest, Letter of Credit fees, and all other fees payable hereunder shall be due and payable, in arrears, on the first day
of each month at any time that Obligations or Commitments are outstanding. Borrower hereby authorizes Agent, from time to time without prior notice to Borrower, to charge all interest and fees (when due and payable), all Lender Group Expenses (as
and when incurred), all charges, commissions, fees, and costs provided for in Section 2.11(e) (as and when accrued or incurred), all fees and costs provided for in Section 2.10 (as and when accrued or incurred), and all other
payments as and when due and payable under any Loan Document (including any amounts due and payable to the Bank Product Providers in respect of Bank Products) to the Loan Account, which amounts thereafter shall constitute Advances hereunder and
shall accrue interest at the rate then applicable to Advances that are Base Rate Loans. Any interest not paid when due shall be compounded by being charged to the Loan Account and shall thereafter constitute Advances hereunder and shall accrue
interest at the rate then applicable to Advances that are Base Rate Loans. 
 (e) Computation. All interest and fees
chargeable under the Loan Documents shall be computed on the basis of a 360 day year, in each case, for the actual number of days elapsed in the period during which the interest or fees accrue. In the event the Base Rate is changed from time to time
hereafter, the rates of interest hereunder based upon the Base Rate automatically and immediately shall be increased or decreased by an amount equal to such change in the Base Rate. 
 (f) Intent to Limit Charges to Maximum Lawful Rate. In no event shall the interest rate or rates payable under this Agreement, plus
any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination, deem applicable. Borrower and the Lender Group, in executing and delivering this
Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided, however, that, anything contained herein to the contrary notwithstanding, if said rate or rates of interest or
manner of payment 

  

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exceeds the maximum allowable under applicable law, then, ipso facto, as of the date of this Agreement, Borrower is and shall be liable only for the
payment of such maximum as allowed by law, and payment received from Borrower in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of the Obligations to the extent of such excess. 
 2.7 Crediting Payments. The receipt of any payment item by Agent shall not be considered a payment on account unless such payment
item is a wire transfer of immediately available federal funds made to the Agent’s Account or unless and until such payment item is honored when presented for payment. Should any payment item not be honored when presented for payment, then
Borrower shall be deemed not to have made such payment and interest shall be calculated accordingly. Anything to the contrary contained herein notwithstanding, any payment item shall be deemed received by Agent only if it is received into the
Agent’s Account on a Business Day on or before 11:00 a.m. (California time). If any payment item is received into the Agent’s Account on a non-Business Day or after 11:00 a.m. (California time) on a Business Day, it shall be deemed to have
been received by Agent as of the opening of business on the immediately following Business Day. 
 2.8 Designated Account.
Agent is authorized to make the Advances, and Issuing Lender is authorized to issue the Letters of Credit, under this Agreement based upon telephonic or other instructions received from anyone purporting to be an Authorized Person or, without
instructions, if pursuant to Section 2.6(d). Borrower agrees to establish and maintain the Designated Account with the Designated Account Bank for the purpose of receiving the proceeds of the Advances requested by Borrower and made by
Agent or the Lenders hereunder. Unless otherwise agreed by Agent and Borrower, any Advance, Protective Advance, or Swing Loan requested by Borrower and made by Agent or the Lenders hereunder shall be made to the Designated Account. 
 2.9 Maintenance of Loan Account; Statements of Obligations. Agent shall maintain an account on its books in the name of Borrower
(the “Loan Account”) on which Borrower will be charged with all Advances (including Protective Advances and Swing Loans) made by Agent, Swing Lender, or the Lenders to Borrower or for Borrower’s account, the Letters of Credit
issued by Issuing Lender for Borrower’s account, and with all other payment Obligations hereunder or under the other Loan Documents (except for Bank Product Obligations), including, accrued interest, fees and expenses, and Lender Group
Expenses. In accordance with Section 2.7, the Loan Account will be credited with all payments received by Agent from Borrower or for Borrower’s account. Agent shall render statements regarding the Loan Account to Borrower, including
principal, interest, fees, and including an itemization of all charges and expenses constituting Lender Group Expenses owing, and such statements, absent manifest error, shall be conclusively presumed to be correct and accurate and constitute an
account stated between Borrower and the Lender Group unless, within 30 days after receipt thereof by Borrower, Borrower shall deliver to Agent written objection thereto describing the error or errors contained in any such statements. 
 2.10 Fees. Borrower shall pay to Agent, 
 (a) for the account of Agent, as and when due and payable under the terms of the Fee Letter, the fees set forth in the Fee Letter.

 (b) for the ratable account of those Lenders with Revolver Commitments, on the first day of each month from and after the
Closing Date up to the first day of the month prior to the Payoff Date and on the Payoff Date, an unused line fee in an amount equal to 0.375% per annum times the result of (i) the Maximum Revolver Amount, less (ii) the average Daily
Balance of the Revolver Usage during the immediately preceding month (or portion thereof). 
  

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 2.11 Letters of Credit. 
 (a) Subject to the terms and conditions of this Agreement, the Issuing Lender agrees to issue letters of credit for the account of any of
the Loan Parties (each, an “L/C”) or to purchase participations or execute indemnities, guarantees, or reimbursement obligations (each such undertaking, an “L/C Undertaking”) with respect to letters of credit issued
by an Underlying Issuer (as of the Closing Date, the prospective Underlying Issuer is to be Wells Fargo) for the account of any of the Loan Parties. Each request for the issuance of a Letter of Credit, or the amendment, renewal, or extension of any
outstanding Letter of Credit, shall be made in writing by an Authorized Person and delivered to the Issuing Lender and Agent via hand delivery, telefacsimile, or other electronic method of transmission reasonably in advance of the requested date of
issuance, amendment, renewal, or extension. Each such request shall be in form and substance reasonably satisfactory to the Issuing Lender in its Permitted Discretion and shall specify (i) the amount of such Letter of Credit, (ii) the date
of issuance, amendment, renewal, or extension of such Letter of Credit, (iii) the expiration date of such Letter of Credit, (iv) the name and address of the beneficiary thereof (or the beneficiary of the Underlying Letter of Credit, as
applicable), and (v) such other information (including, in the case of an amendment, renewal, or extension, identification of the outstanding Letter of Credit to be so amended, renewed, or extended) as shall be necessary to prepare, amend,
renew, or extend such Letter of Credit. If requested by the Issuing Lender, Borrower also shall be an applicant under the application with respect to any Underlying Letter of Credit that is to be the subject of an L/C Undertaking. The Issuing Lender
shall have no obligation to issue a Letter of Credit if any of the following would result after giving effect to the issuance of such requested Letter of Credit: 
 (i) the Letter of Credit Usage would exceed the Credit Amount less the outstanding amount of Advances, or 
 (ii) the Letter of Credit Usage would exceed $5,000,000, or 
 (iii) the Letter of Credit Usage would exceed the Maximum Revolver Amount less the outstanding amount of Advances. 
 Borrower and the Lender Group acknowledge and agree that certain Underlying Letters of Credit may be issued to support letters of credit
that already are outstanding as of the Closing Date. Each Letter of Credit (and corresponding Underlying Letter of Credit) shall be in form and substance acceptable to the Issuing Lender (in the exercise of its Permitted Discretion), including the
requirement that the amounts payable thereunder must be payable in Dollars. If Issuing Lender is obligated to advance funds under a Letter of Credit, Borrower immediately shall reimburse such L/C Disbursement to Issuing Lender by paying to Agent an
amount equal to such L/C Disbursement not later than 11:00 a.m., California time, on the date that such L/C Disbursement is made, if Borrower shall have received written or telephonic notice of such L/C Disbursement prior to 10:00 a.m., California
time, on such date, or, if such notice has not been received by Borrower prior to such time on such date, then not later than 11:00 a.m., California time, on the Business Day that Borrower receives such notice, if such notice is received prior to
10:00 a.m., California time, on the date of receipt, and, in the absence of such reimbursement, the L/C Disbursement immediately and automatically shall be deemed to be an Advance hereunder and, initially, shall bear interest at the rate then
applicable to Advances that are Base Rate Loans. To the extent an L/C Disbursement is deemed to be an Advance hereunder, Borrower’s obligation to reimburse such L/C Disbursement shall be discharged and replaced by the resulting Advance.
Promptly following receipt by Agent of any payment from Borrower pursuant to this paragraph, Agent shall distribute such payment to the Issuing Lender or, to the extent that Lenders have made payments pursuant to Section 2.11(b) to
reimburse the Issuing Lender, then to such Lenders and the Issuing Lender as their interests may appear. 
 (b) Promptly
following receipt of a notice of L/C Disbursement pursuant to Section 2.11(a), each Lender with a Revolver Commitment agrees to fund its Pro Rata Share of any Advance deemed made pursuant to the foregoing subsection on the same terms and
conditions as if Borrower had requested such Advance and Agent shall promptly pay to Issuing Lender the amounts so received by it from 

  

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the Lenders. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on
the part of the Issuing Lender or the Lenders with Revolver Commitments, the Issuing Lender shall be deemed to have granted to each Lender with a Revolver Commitment, and each Lender with a Revolver Commitment shall be deemed to have purchased, a
participation in each Letter of Credit, in an amount equal to its Pro Rata Share of the Risk Participation Liability of such Letter of Credit, and each such Lender agrees to pay to Agent, for the account of the Issuing Lender, such Lender’s Pro
Rata Share of any payments made by the Issuing Lender under such Letter of Credit. In consideration and in furtherance of the foregoing, each Lender with a Revolver Commitment hereby absolutely and unconditionally agrees to pay to Agent, for the
account of the Issuing Lender, such Lender’s Pro Rata Share of each L/C Disbursement made by the Issuing Lender and not reimbursed by Borrower on the date due as provided in Section 2.11(a), or of any reimbursement payment required
to be refunded to Borrower for any reason. Each Lender with a Revolver Commitment acknowledges and agrees that its obligation to deliver to Agent, for the account of the Issuing Lender, an amount equal to its respective Pro Rata Share of each L/C
Disbursement made by the Issuing Lender pursuant to this Section 2.11(b) shall be absolute and unconditional and such remittance shall be made notwithstanding the occurrence or continuation of an Event of Default or Default or the
failure to satisfy any condition set forth in Section 3. If any such Lender fails to make available to Agent the amount of such Lender’s Pro Rata Share of each L/C Disbursement made by the Issuing Lender in respect of such Letter of
Credit as provided in this Section, such Lender shall be deemed to be a Defaulting Lender and Agent (for the account of the Issuing Lender) shall be entitled to recover such amount on demand from such Lender together with interest thereon at the
Defaulting Lender Rate until paid in full. 
 (c) Borrower hereby agrees to indemnify, save, defend, and hold the Lender Group
harmless from any loss, cost, expense, or liability, and reasonable attorneys fees incurred by the Lender Group arising out of or in connection with any Letter of Credit; provided, however, that Borrower shall not be obligated
hereunder to indemnify for any loss, cost, expense, or liability to the extent that it is caused by the gross negligence or willful misconduct of the Issuing Lender or any other member of the Lender Group. Borrower agrees to be bound by the
Underlying Issuer’s regulations and interpretations of any Underlying Letter of Credit or by Issuing Lender’s interpretations of any L/C issued by Issuing Lender to or for Borrower’s account, even though this interpretation may be
different from Borrower’s own, and Borrower understands and agrees that the Lender Group shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrower’s instructions or those contained
in the Letter of Credit or any modifications, amendments, or supplements thereto. Borrower understands that the L/C Undertakings may require Issuing Lender to indemnify the Underlying Issuer for certain costs or liabilities arising out of claims by
Borrower against such Underlying Issuer. Borrower hereby agrees to indemnify, save, defend, and hold the Lender Group harmless with respect to any loss, cost, expense (including reasonable attorneys fees), or liability incurred by the Lender Group
under any L/C Undertaking as a result of the Lender Group’s indemnification of any Underlying Issuer; provided, however, that Borrower shall not be obligated hereunder to indemnify for any loss, cost, expense, or liability to the
extent that it is caused by the gross negligence or willful misconduct of the Issuing Lender or any other member of the Lender Group. Borrower hereby acknowledges and agrees that neither the Lender Group nor the Issuing Lender shall be responsible
for delays, errors, or omissions resulting from the malfunction of equipment in connection with any Letter of Credit. 
 (d)
Borrower hereby authorizes and directs any Underlying Issuer to deliver to the Issuing Lender all instruments, documents, and other writings and property received by such Underlying Issuer pursuant to such Underlying Letter of Credit and to accept
and rely upon the Issuing Lender’s instructions with respect to all matters arising in connection with such Underlying Letter of Credit and the related application. 
 (e) Any and all issuance charges, commissions, fees, and costs incurred by the Issuing Lender relating to Underlying Letters of Credit
shall be Lender Group Expenses for purposes of this Agreement and immediately shall be reimbursable by Borrower to Agent for the account of the Issuing Lender; it being acknowledged and agreed by Borrower that, as of the Closing Date, the issuance
charge imposed by the prospective Underlying Issuer is .825% per annum times the undrawn amount of each Underlying Letter of Credit, that such issuance charge may be changed from time to time, and that the Underlying Issuer also imposes a
schedule of charges for amendments, extensions, drawings, and renewals. 
  

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 (f) If by reason of (i) any change after the Closing Date in any applicable law,
treaty, rule, or regulation or any change in the interpretation or application thereof by any Governmental Authority, or (ii) compliance by the Underlying Issuer or the Lender Group with any direction, request, or requirement (irrespective of
whether having the force of law) of any Governmental Authority or monetary authority including, Regulation D of the Federal Reserve Board as from time to time in effect (and any successor thereto): 
 (i) any reserve, deposit, or similar requirement is or shall be imposed or modified in respect of any Letter of Credit issued hereunder,
or 
 (ii) there shall be imposed on the Underlying Issuer or the Lender Group any other condition regarding any Underlying
Letter of Credit or any Letter of Credit issued pursuant hereto, 
 and the result of the foregoing is to increase, directly or indirectly, the cost to the
Lender Group of issuing, making, guaranteeing, or maintaining any Letter of Credit or to reduce the amount receivable in respect thereof by the Lender Group, then, and in any such case, Agent may, at any time within a reasonable period after the
additional cost is incurred or the amount received is reduced, notify Borrower, and Borrower shall pay within 30 days after demand therefor, such amounts as Agent may specify to be necessary to compensate the Lender Group for such additional cost or
reduced receipt, together with interest on such amount from the date of such demand until payment in full thereof at the rate then applicable to Base Rate Loans hereunder. The determination by Agent of any amount due pursuant to this Section, as set
forth in a certificate setting forth the calculation thereof in reasonable detail, shall, in the absence of manifest or demonstrable error, be final and conclusive and binding on all of the parties hereto. 
 2.12 LIBOR Option. 
 (a) Interest and Interest Payment Dates. In lieu of having interest charged at the rate based upon the Base Rate, Borrower shall have the option (the “LIBOR Option”) to have interest on all or a portion of the
Advances be charged (whether at the time when made (unless otherwise provided herein), upon conversion from a Base Rate Loan to a LIBOR Rate Loan, or upon continuation of a LIBOR Rate Loan as a LIBOR Rate Loan) at a rate of interest based upon the
LIBOR Rate. Interest on LIBOR Rate Loans shall be payable on the earliest of (i) the last day of the Interest Period applicable thereto, (ii) the date on which all or any portion of the Obligations are accelerated pursuant to the terms
hereof, or (iii) the date on which this Agreement is terminated pursuant to the terms hereof. On the last day of each applicable Interest Period, unless Borrower properly has exercised the LIBOR Option with respect thereto, the interest rate
applicable to such LIBOR Rate Loan automatically shall convert to the rate of interest then applicable to Base Rate Loans of the same type hereunder. At any time that an Event of Default has occurred and is continuing, Borrower no longer shall have
the option to request that Advances bear interest at a rate based upon the LIBOR Rate. 
 (b) LIBOR Election.

 (i) Borrower may, at any time and from time to time, so long as no Event of Default has occurred and is continuing, elect
to exercise the LIBOR Option by notifying Agent prior to 11:00 a.m. (California time) at least 3 Business Days prior to the commencement of the proposed Interest Period (the “LIBOR Deadline”). Notice of Borrower’s election of
the LIBOR Option for a permitted portion of the Advances and an Interest Period pursuant to this Section shall be made by delivery to Agent of a LIBOR Notice received by Agent before the LIBOR Deadline, or by telephonic notice received by Agent
before the LIBOR Deadline (to be confirmed by delivery to Agent of a LIBOR Notice received by Agent prior to 5:00 p.m. (California time) on the same day). Promptly upon its receipt of each such LIBOR Notice, Agent shall provide a copy thereof to
each of the affected Lenders. 
  

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 (ii) Each LIBOR Notice shall be irrevocable and binding on Borrower. In connection with
each LIBOR Rate Loan, Borrower shall indemnify, defend, and hold Agent and the Lenders harmless against any loss, cost, or expense actually incurred by Agent or any Lender as a result of (A) the payment of any principal of any LIBOR Rate Loan
other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (B) the conversion of any LIBOR Rate Loan other than on the last day of the Interest Period applicable thereto, or (C) the
failure to borrow, convert, continue or prepay any LIBOR Rate Loan on the date specified in any LIBOR Notice delivered pursuant hereto (such losses, costs, or expenses, “Funding Losses”). A certificate of Agent or a Lender delivered
to Borrower setting forth in reasonable detail any amount or amounts that Agent or such Lender is entitled to receive pursuant to this Section 2.12 shall be conclusive absent manifest error. Borrower shall pay such amount to Agent or the
Lender, as applicable, within 30 days of the date of its receipt of such certificate. 
 (iii) Borrower shall have not more
than 5 LIBOR Rate Loans in effect at any given time. Borrower only may exercise the LIBOR Option for LIBOR Rate Loans of at least $1,000,000. 
 (c) Conversion. Borrower may convert LIBOR Rate Loans to Base Rate Loans at any time; provided, however, that in the event that LIBOR Rate Loans are converted or prepaid on any date that is not
the last day of the Interest Period applicable thereto, including as a result of any automatic prepayment through the required application by Agent of proceeds of Borrower’s and its Subsidiaries’ Collections in accordance with
Section 2.4(b) or for any other reason, including early termination of the term of this Agreement or acceleration of all or any portion of the Obligations pursuant to the terms hereof, Borrower shall indemnify, defend, and hold Agent and
the Lenders and their Participants harmless against any and all Funding Losses in accordance with Section 2.12 (b)(ii) above. 
 (d) Special Provisions Applicable to LIBOR Rate. 
 (i) The LIBOR Rate may be adjusted
by Agent with respect to any Lender on a prospective basis to take into account any additional or increased costs to such Lender of maintaining or obtaining any eurodollar deposits or increased costs, in each case, due to changes in applicable law
occurring subsequent to the commencement of the then applicable Interest Period, including changes in tax laws (except changes of general applicability in corporate income tax laws) and changes in the reserve requirements imposed by the Board of
Governors of the Federal Reserve System (or any successor), excluding the Reserve Percentage, which additional or increased costs would increase the cost of funding or maintaining loans bearing interest at the LIBOR Rate. In any such event, the
affected Lender shall give Borrower and Agent notice of such a determination and adjustment and Agent promptly shall transmit the notice to each other Lender and, upon its receipt of the notice from the affected Lender, Borrower may, by notice to
such affected Lender (y) require such Lender to furnish to Borrower a statement setting forth the basis for adjusting such LIBOR Rate and the method for determining the amount of such adjustment, or (z) repay the LIBOR Rate Loans with
respect to which such adjustment is made (together with any amounts due under Section 2.12(b)(ii)). 
 (ii) In the
event that any change in market conditions or any law, regulation, treaty, or directive, or any change therein or in the interpretation of application thereof, shall at any time after the date hereof, in the reasonable opinion of any Lender, make it
unlawful or impractical for such Lender to fund or maintain LIBOR Rate Loans or to continue such funding or maintaining, or to determine or charge interest rates at the LIBOR Rate, such Lender shall give notice of such changed circumstances to Agent
and Borrower and Agent promptly shall transmit the notice to each other Lender and (y) in the case of any LIBOR Rate Loans of such Lender that are outstanding, the date specified in such Lender’s notice shall be deemed to be the last day
of the Interest Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate Loans of 

  

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such Lender thereafter shall accrue interest at the rate then applicable to Base Rate Loans, and (z) Borrower shall not be entitled to elect the LIBOR
Option until such Lender determines that it would no longer be unlawful or impractical to do so. 
 (e) No Requirement of
Matched Funding. Anything to the contrary contained herein notwithstanding, neither Agent, nor any Lender, nor any of their Participants, is required actually to acquire eurodollar deposits to fund or otherwise match fund any Obligation as to
which interest accrues at the LIBOR Rate. 
 2.13 Capital Requirements. 
 (a) If, after the date hereof, any Lender determines that (i) the adoption of or change in any law, rule, regulation or guideline
regarding capital requirements for banks or bank holding companies, or any change in the interpretation or application thereof by any Governmental Authority charged with the administration thereof, or (ii) compliance by such Lender or its
parent bank holding company with any guideline, request or directive of any such entity regarding capital adequacy (whether or not having the force of law), has the effect of reducing the return on such Lender’s or such holding company’s
capital as a consequence of such Lender’s Commitments hereunder to a level below that which such Lender or such holding company could have achieved but for such adoption, change, or compliance (taking into consideration such Lender’s or
such holding company’s then existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any amount deemed by such Lender to be material, then such Lender may notify Borrower and Agent
thereof. Following receipt of such notice, Borrower agrees to pay such Lender on demand the amount of such reduction of return of capital as and when such reduction is determined, payable within 30 days after presentation by such Lender of a
statement in the amount and setting forth in reasonable detail such Lender’s calculation thereof and the assumptions upon which such calculation was based (which statement shall be deemed true and correct absent manifest error). In determining
such amount, such Lender may use any reasonable averaging and attribution methods. Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such
compensation; provided that Borrower shall not be required to compensate a Lender pursuant to this Section for any reductions in return incurred more than 180 days prior to the date that such Lender notifies Borrower of such law, rule,
regulation or guideline giving rise to such reductions and of such Lender’s intention to claim compensation therefor; provided further that if such claim arises by reason of the adoption of or change in any law, rule, regulation
or guideline that is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof. 
 (b) If any Lender requests additional or increased costs referred to in Section 2.12(d)(i) or amounts under Section 2.13(a) (any such Lender, a “Affected Lender”), then such
Affected Lender shall use reasonable efforts to promptly designate a different one of its lending offices or to assign its rights and obligations hereunder to another of its offices or branches, if (i) in the reasonable judgment of such
Affected Lender, such designation or assignment would eliminate or reduce amounts payable pursuant to Section 2.12(d)(i) or Section 2.13(a), as applicable, and (ii) in the reasonable judgment of such Affected Lender,
such designation or assignment would not subject it to any material unreimbursed cost or expense and would not otherwise be materially disadvantageous to it. Borrower agrees to pay all reasonable costs and expenses incurred by such Affected Lender
in connection with any such designation or assignment. If, after such reasonable efforts, such Affected Lender does not so designate a different one of its lending offices or assign its rights to another of its offices or branches so as to eliminate
Borrower’s obligation to pay any future amounts to such Affected Lender pursuant to Section 2.12(d)(i) or Section 2.13(a), as applicable, then Borrower (without prejudice to any amounts then due to such Affected Lender
under Section 2.12(d)(i) or Section 2.13(a), as applicable) may, unless prior to the effective date of any such assignment the Affected Lender withdraws its request for such additional amounts under
Section 2.12(d)(i) or Section 2.13(a), as applicable, designate another Lender reasonably acceptable to Agent to purchase the Obligations owed to such Affected Lender and such Affected Lender’s Commitments hereunder (a
“Replacement Lender”), such Affected Lender shall assign to the Replacement Lender its Obligations and Commitments, pursuant to an 

  

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Assignment and Acceptance Agreement, and upon such purchase by the Replacement Lender, such Replacement Lender shall be deemed to be a “Lender” for
purposes of this Agreement and such Affected Lender shall cease to be a “Lender” for purposes of this Agreement. 
  

	(c)	CONDITIONS; TERM OF AGREEMENT. 

 3.1
Conditions Precedent to the Initial Extension of Credit. The obligation of each Lender to make its initial extension of credit provided for hereunder, is subject to the fulfillment, to the satisfaction of Agent and each Lender
of each of the conditions precedent set forth on Schedule 3.1 (the making of such initial extension of credit by a Lender being conclusively deemed to be its satisfaction or waiver of the conditions precedent ). 
 3.2 Conditions Precedent to all Extensions of Credit. The obligation of the Lender Group (or any member thereof) to make any
Advances hereunder (or to extend any other credit hereunder) at any time shall be subject to the following conditions precedent: 
 (a) the representations and warranties of Borrower or its Subsidiaries contained in this Agreement or in the other Loan Documents shall be true and correct in all material respects (except that such materiality qualifier shall not be
applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date of such extension of credit, as though made on and as of such date (except to the extent that such
representations and warranties relate solely to an earlier date or are updated from time to time in accordance with this Agreement); and 
 (b) no Default or Event of Default shall have occurred and be continuing on the date of such extension of credit, nor shall either result from the making thereof. 
 3.3 Term. This Agreement shall continue in full force and effect for a term ending on January 2, 2013 (the “Maturity
Date”). The foregoing notwithstanding, the Lender Group, upon the election of the Required Lenders, shall have the right to terminate its obligations under this Agreement immediately and without notice upon the occurrence and during the
continuation of an Event of Default. 
 3.4 Effect of Termination. On the date of termination of this Agreement, all
Obligations (including contingent reimbursement obligations of Borrower with respect to outstanding Letters of Credit and including all Bank Product Obligations) immediately shall become due and payable without notice or demand (including the
requirement that Borrower provide (a) Letter of Credit Collateralization, and (b) Bank Product Collateralization). No termination of this Agreement, however, shall relieve or discharge Borrower or its Subsidiaries of their duties,
Obligations, or covenants hereunder or under any other Loan Document and the Agent’s Liens in the Collateral shall remain in effect until all Obligations have been paid in full and the Lender Group’s obligations to provide additional
credit hereunder have been terminated. When this Agreement has been terminated and all of the Obligations have been paid in full and the Lender Group’s obligations to provide additional credit under the Loan Documents have been terminated
irrevocably, Agent will, at Borrower’s sole expense, execute and deliver any termination statements, lien releases, mortgage releases, re-assignments of trademarks, discharges of security interests, and other similar discharge or release
documents (and, if applicable, in recordable form) as are reasonably necessary to release, as of record, the Agent’s Liens and all notices of security interests and liens previously filed by Agent with respect to the Obligations. 
 3.5 Early Termination by Borrower. Borrower has the option, at any time upon 10 Business Days prior written notice to Agent, to
terminate this Agreement and terminate the Commitments hereunder by paying to Agent, in cash, the Obligations (including (a) providing Letter of Credit Collateralization with respect to the then existing Letter of Credit Usage, and
(b) providing Bank Product Collateralization with respect to the then existing Bank Products), in full. 
  

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 3.6 Conditions Subsequent to the Initial Extension of Credit. The obligation of each
Lender to continue to make Advances (or otherwise extend credit hereunder) is subject to the fulfillment, on or before the date applicable thereto, of each of the conditions subsequent set forth on Schedule 3.6 (the failure by Borrower to so
perform or cause to be performed constituting an Event of Default): 
  

	(d)	REPRESENTATIONS AND WARRANTIES. 

 In order to induce the Lender Group to enter into this Agreement, Borrower makes the following representations and warranties to the Lender Group which shall be true, correct, and complete, in all material respects, as of the date hereof,
and shall be true, correct, and complete, in all material respects, as of the Closing Date and at and as of the date of the making of each Advance (or other extension of credit) made thereafter, as though made on and as of the date of such Advance
(or other extension of credit) (except to the extent that such representations and warranties relate solely to an earlier date or have been updated from time to time in accordance with this Agreement) and such representations and warranties shall
survive the execution and delivery of this Agreement: 
 4.1 Due Organization and Qualification; Subsidiaries. 
 (a) Each Loan Party (i) is duly organized and existing and in good standing under the laws of the jurisdiction of its organization,
(ii) qualified to do business in any state where the failure to be so qualified reasonably could be expected to result in a Material Adverse Change, and (iii) has all requisite power and authority to own and operate its properties, to
carry on its business as now conducted and as proposed to be conducted, to enter into the Loan Documents to which it is a party and to carry out the transactions contemplated thereby. 
 (b) Set forth on Schedule 4.1(b) is a complete and accurate description of the authorized capital Stock of Borrower, by class, and,
as of the Closing Date, a description of the number of shares of each such class that are issued and outstanding. Other than as described on Schedule 4.1(b), as of the Closing Date, there are no subscriptions, options, warrants, or calls to
which Borrower is a party relating to any shares of Borrower’s capital Stock, including any right of conversion or exchange under any outstanding security or other instrument. Other than as described on Schedule 4.1(b), as of the Closing
Date, Borrower is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its capital Stock or any security convertible into or exchangeable for any of its capital Stock. 
 (c) Set forth on Schedule 4.1(c) (as such Schedule may be updated from time to time to reflect changes permitted to be made under
Section 5.11), is a complete and accurate list of the Loan Party’s direct and indirect Subsidiaries, showing: (i) the number of shares of each class of common and preferred Stock authorized for each of such Subsidiaries, and
(ii) the number and the percentage of the outstanding shares of each such class owned directly or indirectly by Borrower. All of the outstanding capital Stock of each such Subsidiary has been validly issued and is fully paid and non-assessable.

 (d) Except as set forth on Schedule 4.1(c), there are no subscriptions, options, warrants, or calls relating to any shares
of Borrower’s Subsidiaries’ capital Stock, including any right of conversion or exchange under any outstanding security or other instrument. Neither Borrower nor any of its Subsidiaries is subject to any obligation (contingent or
otherwise) to repurchase or otherwise acquire or retire any shares of Borrower’s Subsidiaries’ capital Stock or any security convertible into or exchangeable for any such capital Stock. 
  

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 4.2 Due Authorization; No Conflict. 
 (a) As to each Loan Party, the execution, delivery, and performance by such Loan Party of the Loan Documents to which it is a party have
been duly authorized by all necessary action on the part of such Loan Party. 
 (b) As to each Loan Party, the execution,
delivery, and performance by such Loan Party of the Loan Documents to which it is a party do not and will not (i) violate any material provision of federal, state, or local law or regulation applicable to any Loan Party or its Subsidiaries, the
Governing Documents of any Loan Party or its Subsidiaries, or any order, judgment, or decree of any court or other Governmental Authority binding on any Loan Party or its Subsidiaries, (ii) conflict with, result in a breach of, or constitute
(with due notice or lapse of time or both) a default under any Material Contract of any Loan Party or its Subsidiaries except to the extent that any such conflict, breach or default could not individually or in the aggregate reasonably be expected
to have a Material Adverse Change, (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any assets of any Loan Party, other than Permitted Liens, or (iv) require any approval of any Loan
Party’s interestholders or any approval or consent of any Person under any Material Contract of any Loan Party, other than consents or approvals that have been obtained and that are still in force and effect and except, in the case of Material
Contracts, for consents or approvals, the failure to obtain could not individually or in the aggregate reasonably be expected to cause a Material Adverse Change. 
 4.3 Governmental Consents. The execution, delivery, and performance by each Loan Party of the Loan Documents to which such Loan Party is a party and the consummation of the transactions
contemplated by the Loan Documents do not and will not require any registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority, other than consents or approvals that have been obtained and that
are still in force and effect and except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to the Agent for filing or recordation, as of the Closing Date. 
 4.4 Binding Obligations; Perfected Liens. 
 (a) Each Loan Document has been duly executed and delivered by each Loan Party that is a party thereto and is the legally valid and binding obligations of such Loan Party, enforceable against such Loan Party in
accordance with its respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally. 
 (b) The Agent’s Liens are validly created, perfected (other than (i) in respect of motor vehicles and (ii) any Deposit
Accounts and Securities Accounts not subject to a Control Agreement as permitted by Section 6.11, and subject only to the filing of financing statements and the recordation of the Mortgages), and first priority Liens, subject only to
Permitted Liens. 
 4.5 Title to Assets; No Encumbrances. Each of the Loan Parties and its Subsidiaries has
(i) good, sufficient and legal title to (in the case of fee interests in Real Property), (ii) valid leasehold interests in (in the case of leasehold interests in real or personal property), and (iii) good and marketable title to (in
the case of all other personal property), all of their respective assets reflected in their most recent financial statements delivered pursuant to Section 5.1, in each case except for assets disposed of since the date of such financial
statements to the extent permitted hereby and except for defects in title with respect to a de minimis portion of the assets of the Loan Parties and their Subsidiaries. All of such assets are free and clear of Liens except for Permitted
Liens. 
  

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 4.6 Jurisdiction of Organization; Location of Chief Executive Office; Organizational Identification
Number; Commercial Tort Claims. 
 (a) The name of (within the meaning of Section 9-503 of the Code) and
jurisdiction of organization of each Loan Party and each of its Subsidiaries is set forth on Schedule 4.6(a) (as such Schedule may be updated from time to time to reflect changes permitted to be made under Section 6.5).

 (b) The chief executive office of Borrower and each Domestic Subsidiary is located at the address indicated on Schedule
4.6(b) (as such Schedule may be updated from time to time to reflect changes permitted to be made under Section 5.15) and the chief executive office of each Foreign Subsidiary, as of the Closing Date, is located at the address
indicated on Schedule 4.6(b). 
 (c) Borrower and each Domestic Subsidiary’s tax identification numbers and
organizational identification numbers, if any, are identified on Schedule 4.6(c) (as such Schedule may be updated from time to time to reflect changes permitted to be made under Section 6.5). 
 (d) As of the Closing Date, no Loan Party and no Subsidiary of a Loan Party holds any commercial tort claims that exceed $50,000 in
amount, except as set forth on Schedule 4.6(d). 
 4.7 Litigation. 
 (a) Except for the litigation matter described in item number 2 on Schedule 4.7(b), there are no actions, suits, or proceedings
pending or, to the best knowledge of Borrower, threatened against a Loan Party or any of its Subsidiaries that either individually or in the aggregate could reasonably be expected to result in a Material Adverse Change. 
 (b) Schedule 4.7(b) sets forth a complete and accurate description, with respect to each of the actions, suits, or proceedings
that, as of the Closing Date, is pending or, to the best knowledge of Borrower and only with respect to material actions, suits or proceedings, threatened against a Loan Party or any of its Subsidiaries, of (i) the parties to such actions,
suits, or proceedings, (ii) the nature of the dispute that is the subject of such actions, suits, or proceedings, (iii) the maximum amount of the liability of Loan Parties and their Subsidiaries in connection with such actions, suits, or
proceedings, (iv) the status, as of the Closing Date, with respect to such actions, suits, or proceedings, and (v) whether any liability of the Loan Parties’ and their Subsidiaries in connection with such actions, suits, or
proceedings is covered by insurance. 
 4.8 Compliance with Laws. No Loan Party nor any of its Subsidiaries (a) is
in violation of any applicable laws, rules, regulations, executive orders, or codes (including Environmental Laws) that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Change, or (b) is subject to or
in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations of any court or any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or
foreign, that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Change. 
 4.9 No Material
Adverse Change. All financial statements relating to the Loan Parties and their Subsidiaries that have been delivered by Borrower to Agent have been prepared in accordance with GAAP (except (a) , in the case of unaudited
financial statements, for the lack of footnotes and being subject to year-end audit adjustments and (b) the financial statements of the Subsidiary acquired through the ODT Acquisition until the quarter ending March 31, 2008) and present
fairly in all material respects, the Loan Parties’ and their Subsidiaries’ consolidated financial condition as of the date thereof and results of operations for the period then ended. Since September 30, 2007, no event, circumstance,
or change has occurred that has or could reasonably be expected to result in a Material Adverse Change. 
  

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 4.10 Fraudulent Transfer. 
 (a) Each Loan Party is Solvent. 
 (b) No transfer of property is being made by any Loan Party and no obligation is being incurred by any Loan Party in connection with the transactions contemplated by this Agreement or the other Loan Documents with the
intent to hinder, delay, or defraud either present or future creditors of such Loan Party. 
 4.11 Employee Benefits. No
Loan Party, none of their Subsidiaries, nor any of their ERISA Affiliates maintains or contributes to any Benefit Plan. 
 4.12
Environmental Condition. Except as set forth on Schedule 4.14, (a) to Borrower’s knowledge, no Loan Party’s or its Subsidiaries’ properties or assets has ever been used by a Loan Party, its
Subsidiaries, or by previous owners or operators in the disposal of, or to produce, store, handle, treat, release, or transport, any Hazardous Materials, where such use, production, storage, handling, treatment, release or transport was in
violation, in any material respect, of any applicable Environmental Law, (b) to Borrower’s knowledge, no Loan Party’s or its Subsidiaries’ properties or assets has ever been designated or identified in any manner pursuant to any
environmental protection statute as a Hazardous Materials disposal site, (c) no Loan Party nor any of its Subsidiaries has received notice that a Lien arising under any Environmental Law has attached to any revenues or to any Real Property
owned or operated by a Loan Party or its Subsidiaries, and (d) no Loan Party nor any of its Subsidiaries nor any of their respective facilities or operations is subject to any outstanding written order, consent decree, or settlement agreement
with any Person relating to any Environmental Law or Environmental Liability that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change. 
 4.13 Intellectual Property. Each Loan Party and its Subsidiaries own, or hold licenses in, all trademarks, trade names, copyrights,
patents, and licenses that are necessary to the conduct of its business as currently conducted. Borrower acknowledges that attached to the Security Agreement are schedules listing the Loan Parties’ trademarks, trade names, registered
copyrights, patents and material licenses and Borrower agrees to update such schedules periodically to the extent required under and in accordance with the terms of the Security Agreement. 
 4.14 Leases. Each Loan Party and its Subsidiaries enjoy peaceful and undisturbed possession under all leases material to their
business and to which they are parties or under which they are operating, and, subject to Permitted Protests, all of such material leases are valid and subsisting and no material default by the applicable Loan Party or its Subsidiaries exists under
any of them. 
 4.15 Deposit Accounts and Securities Accounts. Set forth on Schedule 4.15 (as updated with
respect to the Loan Parties pursuant to the provisions of the Security Agreement from time to time) is a listing of all of the Loan Parties’ and their Subsidiaries’ Deposit Accounts and Securities Accounts, including, with respect to each
bank or securities intermediary (a) the name and address of such Person, and (b) the account numbers of the Deposit Accounts or Securities Accounts maintained with such Person. 
 4.16 Complete Disclosure. All factual information (taken as a whole) furnished by or on behalf of a Loan Party or its Subsidiaries
in writing to Agent or any Lender (including all information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in connection with this Agreement, the other Loan Documents, or any transaction contemplated herein or
therein is, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of a Loan Party or its Subsidiaries in writing to Agent or any Lender will be, true and accurate, in all material respects, on the date as of
which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances 
  

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under which such information was provided. On the Closing Date, the Closing Date Projections represent, and as of the date on which any other Projections are
delivered to Agent, such additional Projections represent Borrower’s good faith estimate of the Loan Parties’ and their Subsidiaries future performance for the periods covered thereby based upon assumptions believed by Borrower to be
reasonable at the time of the delivery thereof to Agent (it being understood that such projections and forecasts are subject to uncertainties and contingencies, many of which are beyond the control of the Loan Parties and their Subsidiaries and no
assurances can be given that such projections or forecasts will be realized). 
 4.17 Material Contracts. Set forth on
Schedule 4.17 (as updated from time to time) is a reasonably detailed description of the Material Contracts of each Loan Party and its Subsidiaries; provided, however, that Borrower may amend Schedule 4.17 to add
additional Material Contracts so long as such amendment occurs by written notice to Agent at the time that it provides is quarterly financial statements pursuant to Section 5.1. Except for matters which, either individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Change, each Material Contract (other than those that have expired at the end of their normal terms) (a) is in full force and effect and is binding upon and enforceable
against the applicable Loan Party or its Subsidiary and, to the best of Borrower’s knowledge, each other Person that is a party thereto in accordance with its terms, (b) has not been otherwise amended or modified (other than amendments or
modifications permitted by Section 6.7(d)), and (c) is not in default due to the action or inaction of the applicable Loan Party or its Subsidiary. 
 4.18 Patriot Act. To the extent applicable, each Loan Party is in compliance, in all material respects, with the (a) Trading with the Enemy Act, as amended, and each of the foreign assets
control regulations of the Untied States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (b) Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (the “Patriot Act”). No part of the proceeds of the loans made hereunder will be used, directly or indirectly, for any payments to any governmental
official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the
United States Foreign Corrupt Practices Act of 1977, as amended. 
 4.19 Indebtedness. Set forth on Schedule 4.19
is a true and complete list of all Indebtedness of each Loan Party and each of its Subsidiaries outstanding immediately prior to the Closing Date that is to remain outstanding after the Closing Date and such Schedule accurately sets forth the
aggregate principal amount of such Indebtedness. 
 4.20 Payment of Taxes. Except as otherwise permitted under
Section 5.7, all tax returns and reports of each Loan Party and its Subsidiaries required to be filed by any of them have been timely filed, and all taxes shown on such tax returns to be due and payable and all assessments, fees and
other governmental charges upon a Loan Party and its Subsidiaries and upon their respective assets, income, businesses and franchises that are due and payable have been paid when due and payable. Each Loan Party and each of its Subsidiaries have
made adequate provision in accordance with GAAP for all taxes not yet due and payable. Borrower knows of no proposed tax assessment against a Loan Party or any of its Subsidiaries that is not being actively contested by such Loan Party or such
Subsidiary diligently, in good faith, and by appropriate proceedings; provided such reserves or other appropriate provisions, if any, as shall be required in conformity with GAAP shall have been made or provided therefor. No Loan Party nor
any of its Subsidiaries has ever been a party to any understanding or arrangement constituting a “tax shelter” within the meaning of Section 6662(d)(2)(C)(iii) of the IRC or within the meaning of Section 6111(c) or
Section 6111(d) of the IRC as in effect immediately prior to the enactment of the American Jobs Creation Act of 2004, or has ever “participated” in a “reportable transaction” within the meaning of Treasury Regulation
Section 1.6011-4, except as would not be reasonably expected to, individually or in the aggregate, result in a Material Adverse Change. 
  

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 4.21 Margin Stock. No Loan Party 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 part of the proceeds of the loans made to Borrower will be used to purchase or carry any such Margin Stock or
to extend credit to others for the purpose of purchasing or carrying any such margin stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, U or X of said Board of Governors. 
 4.22 Governmental Regulation. No Loan Party nor any of its Subsidiaries is subject to regulation under the Federal Power Act or the
Investment Company Act of 1940 or under any other federal or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or any portion of the Obligations unenforceable. No Loan Party nor any of
its Subsidiaries is a “registered investment company” or a company “controlled” by a “registered investment company” or a “principal underwriter” of a “registered investment company” as such terms
are defined in the Investment Company Act of 1940. 
 4.23 OFAC. No Loan Party nor any of its Subsidiaries is in
violation of any of the country or list based economic and trade sanctions administered and enforced by OFAC. No Loan Party nor any of its Subsidiaries (a) is a Sanctioned Person or a Sanctioned Entity, (b) has a more than 10% of its
assets located in Sanctioned Entities, or (c) derives more than 10% of its revenues from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. The proceeds of any Advance will not be used to fund any operations in,
finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity. 
 4.24 ODT Acquisition
Documents. Borrower has delivered to Agent a complete and correct copy of the ODT Acquisition Documents, including all schedules and exhibits thereto. 
 4.25 Location of Inventory and Equipment. The Inventory and Equipment (other than vehicles or Equipment out for repair) of Borrower and the Domestic Subsidiaries are not stored with a bailee,
warehouseman, or similar party and, other than a de minimis portion of Equipment, are located only at, or in-transit between, the locations identified on Schedule 4.25 (as such Schedule may be updated pursuant to
Section 5.15). 
 4.26 Inventory Records. Each Loan Party keeps correct and accurate records itemizing and
describing the type, quality, and quantity of its and its Subsidiaries’ Inventory and the book value thereof. 
 4.27 Inactive
Subsidiaries. The Inactive Subsidiaries do not own or lease any assets, have no business operations, and have no sources of revenue. 
  

	(e)	AFFIRMATIVE COVENANTS. 

 Borrower
covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations, the Loan Parties shall and shall cause each of their Subsidiaries to do all of the following: 
 5.1 Financial Statements, Reports, Certificates. Deliver to Agent, with copies to each Lender, each of the financial statements,
reports, and other items set forth on Schedule 5.1 at the times specified therein; provided that Borrower’s financial statements (other than monthly financial statements) shall be deemed to have been delivered on the date that
Borrower posts such statements on its website or another Person’s website on the internet and gives Agent notice of such posting or Borrower provides a website link to Agent with respect to such a posting. In addition, Borrower agrees that no
Subsidiary of a Loan Party will have a fiscal year different from that of Borrower. In addition, Borrower agrees to maintain a system of accounting that enables Borrower to produce financial statements in accordance with GAAP. Each Loan Party

  

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shall also (a) keep a reporting system that shows all additions, sales, claims, returns, and allowances with respect to its and its Subsidiaries’
sales, and (b) maintain in all material respects the billing systems/practices approved by Agent prior to the Closing Date. 
 5.2
Collateral Reporting. Provide Agent (and if so requested by Agent, with copies for each Lender) with each of the reports set forth on Schedule 5.2 at the times specified therein. 
 5.3 Existence. Except as otherwise permitted under Section 6.3, each Loan Party to, and cause each of its Subsidiaries
to, at all times preserve and keep in full force and effect its existence (including being in good standing in its jurisdiction of organization) and all rights and franchises, licenses and permits material to its business; provided,
however, that no Loan Party or any of its Subsidiaries shall be required to preserve any such right or franchise, licenses or permits if such Person’s board of directors (or its management to the extent authorized to make such decisions)
shall determine that the preservation thereof is no longer desirable in the conduct of the business of such Person, and that the loss thereof is not disadvantageous in any material respect to such Person or to the Lenders. 
 5.4 Maintenance of Properties. Maintain and preserve all of its assets that are necessary or useful in the proper conduct of its
business in good working order and condition, ordinary wear, tear, and casualty excepted and Permitted Dispositions excepted, and comply with the material provisions of all material leases to which it is a party as lessee, so as to prevent the loss
or forfeiture thereof, unless such provisions are the subject of a Permitted Protest. 
 5.5 Taxes. Cause all
assessments and taxes imposed, levied, or assessed against any Loan Party or its Subsidiaries, or any of their respective assets or in respect of any of its income, businesses, or franchises to be paid in full, before delinquency or before the
expiration of any extension period, except to the extent that the validity of such assessment or tax shall be the subject of a Permitted Protest and so long as, in the case of an assessment or tax that has or may become a Lien against any of the
Collateral, such contest proceedings conclusively operate to stay the sale of any portion of the Collateral to satisfy such assessment or tax. Borrower will and will cause each of its Subsidiaries to make timely payment or deposit of all tax
payments and withholding taxes required of it and them by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request, furnish Agent with proof reasonably
satisfactory to Agent indicating that Borrower and its Subsidiaries have made such payments or deposits. 
 5.6 Insurance.
At Borrower’s expense, maintain insurance respecting each of the Loan Parties’ and their Subsidiaries’ assets wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and risks as ordinarily are
insured against by other Persons engaged in the same or similar businesses. Borrower also shall maintain (with respect to each of the Loan Parties and their Subsidiaries) business interruption, public liability, and product liability insurance, as
well as insurance against larceny, embezzlement, and criminal misappropriation. All such policies of insurance shall be with responsible and reputable insurance companies and in such amounts as is carried generally in accordance with sound business
practice by companies in similar businesses similarly situated and located and in any event in amount, adequacy and scope reasonably satisfactory to Agent. All property insurance policies covering the Collateral are to be made payable to Agent for
the benefit of Agent and the Lenders, as their interests may appear, in case of loss, pursuant to a standard loss payable endorsement with a standard non contributory “lender” or “secured party” clause and are to contain such
other provisions as Agent may reasonably require to fully protect the Lenders’ interest in the Collateral and to any payments to be made under such policies. All certificates of insurance are to be delivered to Agent, with the loss payable and
additional insured endorsement in favor of Agent and shall provide for not less than 30 days (10 days in the case of non-payment) prior written notice to Agent of the exercise of any right of cancellation. If Borrower fails to maintain such
insurance, Agent may arrange for such insurance, but at Borrower’s expense and without any responsibility on Agent’s part for obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the

  

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collection of claims. Borrower shall give Agent prompt notice of any loss exceeding $100,000 covered by its casualty or business interruption insurance.
Anything herein to the contrary notwithstanding, provided that no Event of Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty policy toward the replacement or repair of destroyed or
damaged property so long as any such replaced or repaired property shall be of equal or like value as the replaced or repaired property and shall be subject to Agent’s Liens. Upon the occurrence and during the continuance of an Event of
Default, Agent shall have the sole right to file claims under any insurance policies, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements, receipts, releases, assignments,
reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies. 
 5.7 Inspection. Permit Agent and each of its duly authorized representatives or agents to visit any of its properties and inspect any of its assets or books and records, to examine and make copies
of its books and records, and to discuss its affairs, finances, and accounts with, and to be advised as to the same by, its officers and employees at such reasonable times and intervals as Agent may designate and, so long as no Default or Event of
Default exists, with reasonable prior notice to Borrower. 
 5.8 Compliance with Laws. Comply with the requirements of
all applicable laws, rules, regulations, and orders of any Governmental Authority, other than laws, rules, regulations, and orders the non-compliance with which, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Change. 
 5.9 Environmental. 
 (a) Keep any property either owned or operated by Borrower or its Subsidiaries free of any Environmental Liens or post bonds or other
financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens, 
 (b) comply,
in all material respects, with Environmental Laws and provide to Agent documentation of such compliance which Agent reasonably requests, 
 (c) promptly notify Agent of any release of a Hazardous Material in any reportable quantity from or onto property owned or operated by Borrower or its Subsidiaries and take any Remedial Actions required to abate said
release or otherwise to come into compliance with applicable Environmental Law, and 
 (d) promptly, but in any event within 5
Business Days of its receipt thereof, provide Agent with written notice of any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of Borrower or its Subsidiaries,
(ii) commencement of any Environmental Action or notice that an Environmental Action will be filed against Borrower or its Subsidiaries, and (iii) notice of a violation, citation, or other administrative order which could reasonably be
expected to result in a Material Adverse Change. 
 5.10 Disclosure Updates. Promptly and in no event later than 5
Business Days after obtaining knowledge thereof, notify Agent if any written information, exhibit, or report furnished to the Lender Group contained, at the time it was furnished, any untrue statement of a material fact or omitted to state any
material fact necessary to make the statements contained therein not misleading in light of the circumstances in which made. The foregoing to the contrary notwithstanding, any notification pursuant to the foregoing provision will not cure or remedy
the effect of the prior untrue statement of a material fact or omission of any material fact nor shall any such notification have the effect of amending or modifying this Agreement or any of the Schedules hereto. 
  

 -25- 

 5.11 Formation of Subsidiaries. At the time that any Loan Party forms any direct or
indirect Subsidiary or acquires any direct or indirect Subsidiary after the Closing Date, such Loan Party shall (a) within 20 days of such formation or acquisition (or such later date as permitted by Agent in its sole discretion) cause any such
new Subsidiary to provide to Agent a joinder to the Guaranty and the Security Agreement, together with such other security documents (including mortgages with respect to any Real Property owned in fee of such new Subsidiary with a fair market value
of at least $500,000), as well as appropriate financing statements (and with respect to all property subject to a mortgage, fixture filings), all in form and substance reasonably satisfactory to Agent (including being sufficient to grant Agent a
first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary); provided that the Guaranty, the Security Agreement, and such other security documents shall not be required to be provided to
Agent with respect to any Foreign Subsidiary or any Inactive Subsidiary so long as the negative pledge in Section 6.2 is in effect, (b) within 20 days of such formation or acquisition (or such later date as permitted by Agent in its
sole discretion) provide to Agent a pledge agreement and appropriate certificates and powers or financing statements, hypothecating all of the direct or beneficial ownership interest in such new Subsidiary reasonably satisfactory to Agent;
provided that none of the Stock of any Foreign Subsidiary shall be required to be pledged to Agent so long as the negative pledge in Section 6.2 is in effect, and (c) within 20 days of such formation or acquisition (or such
later date as permitted by Agent in its sole discretion) provide to Agent all other documentation, including one or more opinions of counsel reasonably satisfactory to Agent, which in its opinion is appropriate with respect to the execution and
delivery of the applicable documentation referred to above (including policies of title insurance or other documentation with respect to all Real Property owned in fee and subject to a mortgage). Any document, agreement, or instrument executed or
issued pursuant to this Section 5.11 shall be a Loan Document. 
 5.12 Further Assurances. At any time upon
the reasonable request of Agent, execute or deliver to Agent any and all financing statements, fixture filings, security agreements, pledges, assignments, endorsements of certificates of title, mortgages, deeds of trust, opinions of counsel, and all
other documents (collectively, the “Additional Documents”) that Agent may reasonably request in form and substance reasonably satisfactory to Agent, to create, perfect, and continue perfected or to better perfect the Agent’s
Liens in all of the assets of Borrower and its Subsidiaries (whether now owned or hereafter arising or acquired, tangible or intangible, real or personal), to create and perfect Liens in favor of Agent in any Real Property acquired by Borrower or
its Subsidiaries after the Closing Date with a fair market value in excess of $500,000, and in order to fully consummate all of the transactions contemplated hereby and under the other Loan Documents); provided that the foregoing shall not
apply to any Foreign Subsidiary so long as the negative pledge in Section 6.2 is in effect. To the maximum extent permitted by applicable law, Borrower authorizes Agent to execute any such Additional Documents in the applicable Loan
Party’s or its Subsidiary’s name, as applicable, and authorizes Agent to file such executed Additional Documents in any appropriate filing office. In furtherance and not in limitation of the foregoing, each Loan Party shall take such
actions as Agent may reasonably request from time to time to ensure that the Obligations are guarantied by the Guarantors and are secured by substantially all of the assets of Borrower and its Subsidiaries and all of the outstanding Capital Stock of
Borrower’s Subsidiaries (subject to limitations contained in the Loan Documents with respect to Foreign Subsidiaries and the Inactive Subsidiaries). 
 5.13 Lender Meetings. Within 90 days after the close of each fiscal year of Borrower, at the request of Agent or of the Required Lenders and upon reasonable prior notice, hold a meeting (at a
mutually agreeable location and time or, at the option of Agent, by conference call) with all Lenders who choose to attend such meeting at which meeting shall be reviewed the financial results of the previous fiscal year and the financial condition
of Borrower and its Subsidiaries and the projections presented for the current fiscal year of Borrower. 
 5.14 Material
Contracts. Contemporaneously with the delivery of each Compliance Certificate pursuant hereto, provide Agent with copies of (a) each Material Contract entered into since the delivery of the previous Compliance Certificate, and
(b) each material amendment or modification of any Material Contract entered into since the delivery of the previous Compliance Certificate. 
  

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 5.15 Location of Inventory and Equipment. Keep Borrower’s and the Domestic
Subsidiaries’ Inventory and Equipment (other than vehicles and Equipment out for repair) only at the locations identified on Schedule 4.25 and their chief executive offices only at the locations identified on Schedule 4.6(b);
provided, however, that Borrower may amend Schedule 4.25 or Schedule 4.6(b) so long as such amendment occurs by written notice to Agent not less than 10 days prior to the date on which such Inventory or Equipment is moved
to such new location or such chief executive office is relocated and so long as such new location is within the continental United States. 
 5.16 Assignable Material Contracts. Use commercially reasonable efforts to ensure that any Material Contract entered into after the Closing Date by Borrower or one of its Subsidiaries that generates or, by its terms,
will generate revenue, permits the assignment of such agreement (and all rights of Borrower or such Subsidiary, as applicable, thereunder) to Borrower’s or such Subsidiary’s lenders or an agent for any lenders (and any transferees of such
lenders or such agent, as applicable). 
  

	(f)	NEGATIVE COVENANTS. 

 Borrower
covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations, the Loan Parties will not and will not permit any of their Subsidiaries to do all of the following: 
 6.1 Indebtedness. Create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or indirectly, liable
with respect to any Indebtedness, except for Permitted Indebtedness. 
 6.2 Liens. Create, incur, assume, or suffer to
exist, directly or indirectly, any Lien on or with respect to any of its assets, of any kind, whether now owned or hereafter acquired, or any income or profits therefrom, except for Permitted Liens. Without limiting the generality of the foregoing,
Borrower covenants and agrees that the Loan Parties will not, and will not permit any of their Subsidiaries to, create, incur, assume or suffer to exist any Lien on the Stock or (subject to Permitted Liens) assets of the Foreign Subsidiaries.

 6.3 Restrictions on Fundamental Changes. 
 (a) Other than in order to consummate a Permitted Acquisition, enter into any merger, consolidation, reorganization, or recapitalization,
or reclassify its Stock, except for (i) any merger between Loan Parties, provided that Borrower must be the surviving entity of any such merger to which it is a party, (ii) any merger between Loan Parties and Subsidiaries of
Borrower that are not Loan Parties so long as such Loan Party is the surviving entity of any such merger, and (iii) any merger between Subsidiaries of Borrower that are not Loan Parties; 
 (b) Liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution), except for (i) the liquidation or dissolution
of non-operating Subsidiaries of Borrower with nominal assets and nominal liabilities (including the Inactive Subsidiaries), (ii) the liquidation or dissolution of a Loan Party (other than Borrower) or any of its wholly-owned Subsidiaries so
long as all of the assets (including any interest in any Stock) of such liquidating or dissolving Loan Party or Subsidiary are transferred to a Loan Party that is not liquidating or dissolving, or (iii) the liquidation or dissolution of a
Subsidiary of Borrower that is not a Loan Party (other than any such Subsidiary the Stock of which (or any portion thereof) is subject to a Lien in favor of Agent) so long as all of the assets of such liquidating or dissolving Subsidiary are
transferred to a Subsidiary of Borrower that is not liquidating or dissolving; or 
 (c) Suspend or go out of a substantial
portion of its or their business, except as permitted pursuant to clauses (a) or (b) above or in connection with the transactions permitted pursuant to Section 6.4. 
  

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 6.4 Disposal of Assets. Other than Permitted Dispositions, Permitted Investments, or
transactions expressly permitted by Sections 6.3 and 6.10, convey, sell, lease, license, assign, transfer, or otherwise dispose of (or enter into an agreement to convey, sell, lease, license, assign, transfer, or otherwise dispose of)
any of Borrower’s or its Subsidiaries assets. Without limiting the generality of the foregoing, Borrower covenants and agrees that the Loan Parties will not, and will not permit any of their Subsidiaries to, convey, sell, lease, license, assign
or transfer any of their assets to the Inactive Subsidiaries or (other than Permitted Investments) the Foreign Subsidiaries. 
 6.5
Change Name. Change any Loan Party’s name, organizational identification number, state of organization or organizational identity; provided, however, that any Loan Party may change its name, organizational
identification number, state of organization or organizational identity upon at least 10 days prior written notice to Agent of such change. 
 6.6 Nature of Business. Make any change in the nature of its or their business as described in Schedule 6.6 or acquire any properties or assets that are not reasonably related to the conduct of such business
activities; provided that Borrower and its Subsidiaries may engage in any business that is reasonably related or ancillary to its or their business. 
 6.7 Prepayments and Amendments. 
 (a) Except in connection with
Refinancing Indebtedness permitted by Section 6.1, 
 (i) optionally prepay, redeem, defease, purchase, or
otherwise acquire any Indebtedness of Borrower or its Subsidiaries, other than (i) the Obligations in accordance with this Agreement, and (ii) Permitted Intercompany Advances, 
 (ii) make any payment on account of Indebtedness that has been contractually subordinated in right of payment if such payment is not
permitted at such time under the subordination terms and conditions, or 
 (b) Directly or indirectly, amend, modify, or
change any of the terms or provisions of 
 (i) any agreement, instrument, document, indenture, or other writing evidencing or
concerning Indebtedness permitted under Section 6.1 other than (A) the Obligations in accordance with this Agreement, (B) Permitted Intercompany Advances, and (C) Indebtedness permitted under clauses (c), (h),
(j) and (k) of the definition of Permitted Indebtedness, except to the extent that such amendment, modification, alteration, increase, or change could not, individually or in the aggregate, reasonably be expected to be adverse
to the interests of the Lenders, 
 (ii) any Material Contract except to the extent that such amendment, modification,
alteration, increase, or change could not, individually or in the aggregate, reasonably be expected to be materially adverse to the interests of the Lenders, or 
 (iii) the Governing Documents of any Loan Party or any of its Subsidiaries if the effect thereof, either individually or in the aggregate,
could reasonably be expected to be materially adverse to the interests of the Lenders. 
 6.8 Change of Control. Cause,
permit, or suffer, directly or indirectly, any Change of Control. 
  

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 6.9 Distributions. Make any distribution or declare or pay any dividends (in cash or
other property, other than common Stock) on, or purchase, acquire, redeem, or retire any of Borrower’s Stock, of any class, whether now or hereafter outstanding; provided, however: 
 (a) so long as it is permitted by applicable law and no Default or Event of Default shall have occurred and be continuing or would result
therefrom, Borrower’s Subsidiaries may make distributions to Borrower for the sole purpose of allowing Borrower to, and Borrower shall use the proceeds thereof solely to make distributions to former employees, officers, or directors (or any
spouses, ex-spouses, or estates of any of the foregoing) on account of redemptions of Stock of Borrower held by such Persons, provided, however, that the aggregate amount of such redemptions made by Borrower during the term of this
Agreement plus the amount of Indebtedness outstanding under clause (l) of the definition of Permitted Indebtedness, does not exceed $1,000,000 in the aggregate 
 (b) so long as it is permitted by applicable law and no Default or Event of Default shall have occurred and be continuing or would result
therefrom, Borrower may make distributions to former employees, officers, or directors (or any spouses, ex-spouses, or estates of any of the foregoing), solely in the form of forgiveness of Indebtedness of such Persons owing to Borrower on account
of repurchases of the Stock of Borrower held by such Persons; provided that such Indebtedness was incurred by such Persons solely to acquire Stock of Borrower; and 
 (c)(i) so long as it is permitted by applicable law and no Default or Event of Default shall have occurred and be continuing, from the
Closing Date through February 29, 2008, Borrower may purchase its stock on the open market pursuant to its 10b5-1 stock repurchase plan in an aggregate amount not to exceed $250,000 during such period; and (ii) so long as it is permitted
by applicable law, no Default or Event of Default shall have occurred and be continuing or would result therefrom, and Borrower has Excess Availability plus Qualified Cash of $7,000,000 or greater immediately after giving effect to each such
purchase, after February 29, 2008 Borrower may purchase its stock on the open market, including pursuant to its 10b5-1 stock repurchase plan, in an aggregate amount not to exceed $2,000,000 during any fiscal year of Borrower (less the
amount purchased pursuant to clause (i) above with respect to fiscal year 2008). 
 6.10 Accounting Methods. Modify
or change its fiscal year or its method of accounting (other than as may be required to conform to GAAP). 
 6.11
Investments. Except for Permitted Investments, directly or indirectly, make or acquire any Investment or incur any liabilities (including contingent obligations) for or in connection with any Investment; provided,
however, that (other than (a) an aggregate amount of not more than $10,000 at any one time, in the case of the Loan Parties, (b) amounts deposited into Deposit Accounts specially and exclusively used for payroll, payroll taxes and
other employee wage and benefit payments to or for Borrower’s or its Subsidiaries’ employees, and (c) an aggregate amount of not more than the sum of (i) the amount of cash required under German law to ensure compliance by
Borrower’s German subsidiaries with capital maintenance rules under German law, in particular section 30 of the German Limited Liability Company Act (GmbHG) plus (ii) $5,000,000 (calculated at current exchange rates) at any one
time, in the case of the Foreign Subsidiaries) Borrower and its Subsidiaries shall not have Permitted Investments consisting of cash, Cash Equivalents, or amounts credited to Deposit Accounts or Securities Accounts unless Borrower or its Subsidiary,
as applicable, and the applicable securities intermediary or bank have entered into Control Agreements with Agent governing such Permitted Investments in order to perfect (and further establish) the Agent’s Liens in such Permitted Investments.
Subject to the foregoing proviso, Borrower shall not and shall not permit its Subsidiaries to establish or maintain any Deposit Account or Securities Account unless Agent shall have received a Control Agreement in respect of such Deposit Account or
Securities Account. Without limiting the generality of the foregoing, Borrower covenants and agrees that the Loan Parties will not, and will not permit any of their Subsidiaries to, make any Investment in the Inactive Subsidiaries. 
  

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 6.12 Transactions with Affiliates. Directly or indirectly enter into or permit to
exist any transaction with any Affiliate of Borrower or any of its Subsidiaries except for: 
 (a) transactions (other the
payment of management, consulting, monitoring, or advisory fees) between Borrower or its Subsidiaries, on the one hand, and any Affiliate of Borrower or its Subsidiaries, on the other hand, so long as such transactions (i) are upon fair and
reasonable terms, (ii) are fully disclosed to Agent prior to the consummation thereof, if they involve one or more payments by Borrower or its Subsidiaries in excess of $250,000 for any single transaction or series of related transactions, and
(iii) are no less favorable, taken as a whole, to Borrower or its Subsidiaries, as applicable, than would be obtained in an arm’s length transaction with a non-Affiliate, 
 (b) so long as it has been approved by Borrower’s Board of Directors in accordance with applicable law, any indemnity provided for
the benefit of directors of Borrower, 
 (c) so long as it has been approved by Borrower’s Board of Directors, the
payment of reasonable fees, compensation, or employee benefit arrangements to employees, officers, and outside directors of Borrower in the ordinary course of business and consistent with industry practice, 
 (d) transactions permitted by Section 6.3 or Section 6.9, or any Permitted Intercompany Advance, and 

(e) transactions among Loan Parties so long as such transactions are not otherwise prohibited under the Loan Documents and no Event of
Default exists or would result therefrom. 
 6.13 Use of Proceeds. Use the proceeds of the Advances for any purpose
other than (a) on the Closing Date, to pay transactional fees, costs, and expenses incurred in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby and thereby, (b) concurrently with the
closing of the ODT Acquisition, to pay a portion of the purchase price of such acquisition and transactional fees, costs and expenses incurred in connection therewith in an aggregate amount not to exceed $7,500,000, and (c) thereafter, to
finance the ongoing working capital, capital expenditure, and general corporate needs of Borrower consistent with the terms and conditions hereof. 
 6.14 Consignments. Consign any Loan Party’s Inventory or sell any of its Inventory on bill and hold, sale or return, sale on approval, or other conditional terms of sale. 
 6.15 Inventory and Equipment with Bailees. Store the Inventory or Equipment of any Loan Party at any time now or hereafter with a
bailee, warehouseman, or similar party. 
  

	(g)	FINANCIAL COVENANTS. 

 Borrower
covenants and agrees that, until termination of all of the Commitments and payment in full of the Obligations, Borrower will comply with each of the following financial covenants: 
  

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 (a) Minimum EBITDA. Achieve EBITDA, measured on a quarter-end basis, of at least
the required amount set forth in the following table for the applicable period set forth opposite thereto: 
  

			
	Applicable Amount	  	 Applicable Period

	$3,000,000	  	For the 12 month period 
ending December 31, 2007
	-$1,800,000	  	For the 3 month period 
ending March 31, 2008
	-$750,000	  	For the 6 month period 
ending June 30, 2008
	$2,000,000	  	For the 9 month period 
ending September 30, 2008
	$9,000,000	  	For the 12 month period 
ending December 31, 2008
	$10,000,000	  	For the 12 month period 
ending March 31, 2009
	$10,700,000	  	For the 12 month period 
ending June 30, 2009
	$10,500,000	  	For the 12 month period 
ending September 30, 2009
	$6,900,000	  	For the 12 month period 
ending December 31, 2009
	$7,800,000	  	For the 12 month period 
ending March 31, 2010
	$8,000,000	  	For the 12 month period 
ending June 30, 2010
	$9,000,000	  	For the 12 month period 
ending September 30, 2010
	$10,400,000	  	For the 12 month period 
ending December 31, 2010
	$10,400,000	  	For the 12 month period ending 
at the end of each quarter thereafter

 (b) Capital Expenditures. Make Capital Expenditures in any fiscal year in an
amount less than or equal to, but not greater than, the amount set forth in the following table for the applicable period: 
  

				
	Fiscal Year 2008	  	 Fiscal Year 2009
and each fiscal year
thereafter

	$	6,928,000	  	$6,480,000

 provided, however, that if the amount of the Capital Expenditures permitted to be made in any fiscal
year as set forth in the above table is greater than the actual amount of the Capital Expenditures actually made in such fiscal year (such amount, the “Excess Amount”), then the lesser of (i) such Excess Amount and
(ii) 50% of the amount set forth in the above table for the succeeding fiscal year (such lesser amount referred to as the “Carry-Over Amount”) may be carried forward to the next succeeding Fiscal Year (the “Succeeding
Fiscal Year”); provided further that the Carry-Over Amount applicable to a particular Succeeding Fiscal Year may not be used in that Succeeding Fiscal Year until the amount permitted above to be expended in such Succeeding Fiscal
Year has first been used in full, and the Carry-Over Amount applicable to a particular Succeeding Fiscal Year may not be carried forward to a subsequent fiscal year. 
  

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	(h)	EVENTS OF DEFAULT. 

 Any one or more
of the following events shall constitute an event of default (each, an “Event of Default”) under this Agreement: 
 (a) If Borrower fails to pay when due and payable, or when declared due and payable, (i) all or any portion of the Obligations consisting of interest, fees, or charges due the Lender Group, reimbursement of Lender Group Expenses, or
other amounts (other than any portion thereof constituting principal) constituting Obligations (including any portion thereof that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in
part as a claim in any such Insolvency Proceeding), and such failure continues for a period of 3 Business Days, or (ii) all or any portion of the principal of the Obligations; 
 (b) If any Loan Party or any of its Subsidiaries: 
 (i) fails to perform or observe any covenant or other agreement contained in any of (A) Sections 5.1, 5.2, 5.3,
5.6, 5.7, 5.10, 5.11, 5.13, or 5.14 of this Agreement, (B) Sections 6.1 through 6.15 of this Agreement, (C) Section 7 of this Agreement, or (D) Section 6 of the
Security Agreement; 
 (ii) fails to perform or observe any covenant or other agreement contained in any of Sections
5.4, 5.5, 5.8, 5.12, and 5.15 of this Agreement and such failure continues for a period of 10 days after the earlier of (A) the date on which such failure shall first become known to any officer of Borrower or
(B) the date on which written notice thereof is given to Borrower by Agent; or 
 (iii) fails to perform or observe any
covenant or other agreement contained in this Agreement, or in any of the other Loan Documents, in each case, other than any such covenant or agreement that is the subject of another provision of this Section 8 (in which event such other
provision of this Section 8 shall govern), and such failure continues for a period of 30 days after the earlier of (A) the date on which such failure shall first become known to any officer of Borrower or (B) the date on which
written notice thereof is given to Borrower by Agent; 
 (c) If one or more judgments, orders, or awards involving an
aggregate amount of $500,000, or more (except to the extent fully covered by insurance pursuant to which the insurer has accepted liability therefor in writing) shall be entered or filed against a Loan Party or any of its Subsidiaries, or with
respect to any of their respective assets, and the same is not released, discharged, bonded against, or stayed pending appeal before the earlier of (i) 30 days after the date it first arises or (ii) 5 days prior to the date on which any
asset of such Loan Party or its Subsidiary is subject to being forfeited by such Loan Party or its Subsidiary; 
 (d) If an
Insolvency Proceeding is commenced by a Loan Party or any of its Subsidiaries; 
 (e) If an Insolvency Proceeding is commenced
against a Loan Party or any of its Subsidiaries and any of the following events occur: (i) such Loan Party or such Subsidiary consents to the institution of such Insolvency Proceeding against it, (ii) the petition commencing the Insolvency
Proceeding is not timely controverted, (iii) the petition commencing the Insolvency Proceeding is not dismissed within 60 calendar days of the date of the filing thereof, (iv) an interim trustee is appointed to take possession of all or
any substantial portion of the properties or assets of, or to operate all or any substantial portion of the business of, such Loan Party or its Subsidiary, or (v) an order for relief shall have been issued or entered therein; 
 (f) If a Loan Party or any of its Subsidiaries is enjoined, restrained, or in any way prevented by court order from continuing to conduct
all or any material part of its business affairs; 
  

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 (g) If there is an uncured default in one or more agreements to which a Loan Party or any
of its Subsidiaries is a party with one or more third Persons relative to a Loan Party’s or any of its Subsidiaries’ Indebtedness involving an aggregate amount of $100,000 or more, and such default (i) occurs at the final maturity of
the obligations thereunder, or (ii) results in a right by such third Person, irrespective of whether exercised, to accelerate the maturity of such Loan Party’s or its Subsidiary’s obligations thereunder; 
 (h) If any warranty, representation, statement, or Record made herein or in any other Loan Document or delivered in writing to Agent or
any Lender in connection with this Agreement or any other Loan Document proves to be untrue in any material respect (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or
modified by materiality in the text thereof) as of the date of issuance or making or deemed making thereof; 
 (i) If the
obligation of any Guarantor under the Guaranty is limited or terminated by operation of law or by such Guarantor; 
 (j) If
the Security Agreement or any other Loan Document that purports to create a Lien, shall, for any reason, fail or cease to create a valid, perfected and first priority Lien on the Collateral covered thereby, except to the extent permitted by the
terms hereof or thereof, including as a result of a disposition of the applicable Collateral in a transaction permitted under this Agreement; or 
 (k) Any provision of any Loan Document shall at any time for any reason be declared to be null and void, or the validity or enforceability thereof shall be contested by a Loan Party or its Subsidiaries, or a
proceeding shall be commenced by a Loan Party or its Subsidiaries, or by any Governmental Authority having jurisdiction over a Loan Party or its Subsidiaries, seeking to establish the invalidity or unenforceability thereof, or a Loan Party or its
Subsidiaries shall deny that such Loan Party or its Subsidiaries has any liability or obligation purported to be created under any Loan Document. 
  

	(i)	RIGHTS AND REMEDIES. 

 9.1 Rights and
Remedies. Upon the occurrence and during the continuation of an Event of Default, Agent may, and, at the instruction of the Required Lenders, shall, in each case by written notice to Borrower and in addition to any other rights or
remedies provided for hereunder or under any other Loan Document or by applicable law, do any one or more of the following on behalf of the Lender Group: 
 (a) declare the Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and payable, whereupon the same shall become and be immediately due and payable,
without presentment, demand, protest, or further notice or other requirements of any kind, all of which are hereby expressly waived by Borrower; and 
 (b) declare the Revolver Commitments terminated, whereupon the Revolver Commitments shall immediately be terminated together with any obligation of any Lender hereunder to make Advances and the obligation of the
Issuing Lender to issue Letters of Credit. 
 The foregoing to the contrary notwithstanding, upon the occurrence of any Event of Default described in
Section 8(d) or Section 8(e), in addition to the remedies set forth above, without any notice to Borrower or any other Person or any act by the Lender Group, the Commitments shall automatically terminate and the Obligations
then outstanding, together with all accrued and unpaid interest thereon and all fees and all other amounts due under this Agreement and the other Loan Documents, shall automatically and immediately become due and payable, without presentment,
demand, protest, or notice of any kind, all of which are expressly waived by Borrower. 
  

 -33- 

 9.2 Remedies Cumulative. The rights and remedies of the Lender Group under this
Agreement, the other Loan Documents, and all other agreements shall be cumulative. The Lender Group shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by the Lender Group
of one right or remedy shall be deemed an election, and no waiver by the Lender Group of any Event of Default shall be deemed a continuing waiver. No delay by the Lender Group shall constitute a waiver, election, or acquiescence by it. 

 

	(j)	WAIVERS; INDEMNIFICATION. 

 10.1
Demand; Protest; etc. Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of
documents, instruments, chattel paper, and guarantees at any time held by the Lender Group on which Borrower may in any way be liable. 
 10.2 The Lender Group’s Liability for Collateral. Borrower hereby agrees that: (a) so long as Agent complies with its obligations, if any, under the Code, the Lender Group shall not in any way or manner be
liable or responsible for: (i) the safekeeping of the Collateral, (ii) any loss or damage thereto occurring or arising in any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default
of any carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or destruction of the Collateral shall be borne by Borrower. 
 10.3 Indemnification. Borrower shall pay, indemnify, defend, and hold the Agent-Related Persons, the Lender-Related Persons, and each
Participant (each, an “Indemnified Person”) harmless (to the fullest extent permitted by law) from and against any and all claims, demands, suits, actions, investigations, proceedings, liabilities, fines, costs, penalties, and
damages, and all reasonable fees and disbursements of attorneys, experts, or consultants and all other costs and expenses actually incurred in connection therewith or in connection with the enforcement of this indemnification (as and when they are
incurred and irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of them (a) in connection with or as a result of or related to the execution, delivery, enforcement, performance, or
administration (including any restructuring or workout with respect hereto) of this Agreement, any of the other Loan Documents, or the transactions contemplated hereby or thereby or the monitoring of Borrower’s and its Subsidiaries’
compliance with the terms of the Loan Documents, (b) with respect to any investigation, litigation, or proceeding related to this Agreement, any other Loan Document, or the use of the proceeds of the credit provided hereunder (irrespective of
whether any Indemnified Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto, and (c) in connection with or arising out of any presence or release of Hazardous Materials at, on, under, to or
from any assets or properties owned, leased or operated by Borrower or any of its Subsidiaries or any Environmental Actions, Environmental Liabilities and Costs or Remedial Actions related in any way to any such assets or properties of Borrower or
any of its Subsidiaries (each and all of the foregoing, the “Indemnified Liabilities”). The foregoing to the contrary notwithstanding, Borrower shall have no obligation to any Indemnified Person under this Section 10.3
with respect to any Indemnified Liability that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such Indemnified Person. This provision shall survive the termination of this
Agreement and the repayment of the Obligations. If any Indemnified Person makes any payment to any other Indemnified Person with respect to an Indemnified Liability as to which Borrower was required to indemnify the Indemnified Person receiving such
payment, the Indemnified Person making such payment is entitled to be indemnified and reimbursed by Borrower with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED
LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON. 
  

 -34- 

	(k)	NOTICES. 

 Unless otherwise provided
in this Agreement, all notices or demands relating to this Agreement or any other Loan Document shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall
be personally delivered or sent by registered or certified mail (postage prepaid, return receipt requested), overnight courier, electronic mail (at such email addresses as a party may designate in accordance herewith), or telefacsimile. In the case
of notices or demands to Borrower or Agent, as the case may be, they shall be sent to the respective address set forth below: 
  

			
	 If to Borrower
 (until 3/1/2008):
	  	 CAPTARIS, INC.
  
 10885 NE 4th Street, Suite 400
 Bellevue, WA 98004
 Attn: Chief Financial Officer
 Fax No.: (425) 638-1500

		
	 If to Borrower
 (from and after
3/1/2008):
	  	 CAPTARIS, INC.
  
 301 116th Avenue SE
 Bellevue, WA 98004
 Attn: Chief Financial Officer

		
	with copies to:	  	 PERKINS COIE LLP
  
 1201 Third Avenue, Suite 4800
 Seattle, WA 98101-3099
 Attn: Andrew Moore, Esq.
 Fax No.: (206) 359-9000

		
	If to Agent:	  	 WELLS FARGO FOOTHILL, LLC
  
 2450 Colorado Avenue,
 Suite 3000W
 Santa Monica, CA 90404
 Attn: Technology Finance Division Manager

Fax No.: (310) 453-7400

		
	with copies to:	  	 SHEPPARD, MULLIN, RICHTER & HAMPTON LLP
  
 333 South Hope Street, 48th Floor
 Los Angeles, CA 90071
 Attn: Richard C. Pugh Jr., Esq.
 Fax No.: (213) 620-1398

 Any party hereto may change the address at which they are to receive notices
hereunder, by notice in writing in the foregoing manner given to the other party. All notices or demands sent in accordance with this Section 11, shall be deemed received on the earlier of the date of actual receipt or 3 Business Days
after the deposit thereof in the mail; provided, that (a) notices sent by overnight courier service shall be deemed to have been given when received, (b) notices by facsimile shall be deemed to have been given when sent (except
that, if not given during normal business hours for the receipient, shall be deemed to have been given at the opening on business on the next Business Day for the receipient) and (c) notices by electronic mail shall be deemed received upon the
sender’s receipt of an acknowledgment from the intended recipient (such as by the “return receipt requested” function, as available, return email or other written acknowledgment). 
  

 -35- 

	(l)	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE. 

 (a) THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND
ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF CALIFORNIA. 
 (b) THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA; PROVIDED, HOWEVER, THAT ANY
SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. BORROWER AND
EACH MEMBER OF THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS
SECTION 12(b). 
 (c) BORROWER AND EACH MEMBER OF THE LENDER GROUP HEREBY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE
LAW, THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND
ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWER AND EACH MEMBER OF THE LENDER GROUP REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE
EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
 (d) THE PARTIES
TO THIS AGREEMENT PREFER THAT ANY DISPUTE BETWEEN OR AMONG THEM BE RESOLVED IN LITIGATION SUBJECT TO A JURY TRIAL WAIVER AS SET FORTH IN SECTION 12(c). IF, HOWEVER, UNDER THE THEN APPLICABLE LAW OF THE JURISDICTION IN WHICH A PARTY SEEKS TO
COMMENCE ANY SUCH LITIGATION, A PRE-DISPUTE JURY TRIAL WAIVER OF THE TYPE PROVIDED FOR IN SECTION 12(c) IS UNENFORCEABLE IN LITIGATION TO RESOLVE ANY DISPUTE, CLAIM, CAUSE OF ACTION OR CONTROVERSY UNDER THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT (EACH, A “CLAIM”), THEN, UPON THE WRITTEN REQUEST OF SUCH PARTY, SUCH CLAIM, INCLUDING ANY AND ALL QUESTIONS OF LAW OR FACT RELATING THERETO, SHALL BE DETERMINED EXCLUSIVELY BY A JUDICIAL REFERENCE PROCEEDING. EXCEPT AS
OTHERWISE PROVIDED IN SECTION 12(b), VENUE FOR ANY SUCH REFERENCE PROCEEDING SHALL BE IN THE STATE OR FEDERAL COURT IN THE COUNTY OR DISTRICT WHERE VENUE IS APPROPRIATE UNDER APPLICABLE LAW (THE “COURT”). THE PARTIES SHALL SELECT A
SINGLE NEUTRAL REFEREE, WHO SHALL BE A RETIRED STATE OR FEDERAL JUDGE. IF THE PARTIES CANNOT AGREE UPON A REFEREE, THE COURT SHALL APPOINT THE REFEREE. THE REFEREE SHALL REPORT A STATEMENT OF DECISION TO THE COURT. NOTHING IN THIS PARAGRAPH SHALL
LIMIT 

  

 -36- 

 
THE RIGHT OF ANY PARTY AT ANY TIME TO EXERCISE SELF-HELP REMEDIES, FORECLOSE AGAINST COLLATERAL OR OBTAIN PROVISIONAL REMEDIES (INCLUDING, WITHOUT
LIMITATION, CLAIM AND DELIVERY, INJUNCTIVE RELIEF, ATTACHMENT OR THE APPOINTMENT OF A RECEIVER). THE PARTIES SHALL BEAR THE FEES AND EXPENSES OF THE REFEREE EQUALLY UNLESS THE REFEREE ORDERS OTHERWISE. THE REFEREE ALSO SHALL DETERMINE ALL ISSUES
RELATING TO THE APPLICABILITY, INTERPRETATION, AND ENFORCEABILITY OF THIS SECTION 12(d). THE PARTIES ACKNOWLEDGE THAT ANY CLAIM DETERMINED BY REFERENCE PURSUANT TO THIS SECTION 12(d) SHALL NOT BE ADJUDICATED BY A JURY. 

 

	(m)	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS. 

 13.1
Assignments and Participations. 
 (a) With the prior written consent of Agent, which consent of Agent shall not
be unreasonably withheld, delayed or conditioned, and shall not be required in connection with an assignment to a Person that is a Lender or an Affiliate (other than individuals) of a Lender, any Lender may assign and delegate to one or more
assignees (each an “Assignee”; provided that neither any Loan Party or Affiliate of a Loan Party shall be permitted to become an Assignee) all or any portion of the Obligations, the Commitments and the other rights and obligations
of such Lender hereunder and under the other Loan Documents, in a minimum amount (unless waived by the Agent) of $5,000,000 (except such minimum amount shall not apply to (x) an assignment or delegation by any Lender to any other Lender or an
Affiliate of any Lender or (y) a group of new Lenders, each of which is an Affiliate of each other or a Related Fund of such new Lender to the extent that the aggregate amount to be assigned to all such new Lenders is at least $5,000,000);
provided, however, that Borrower and Agent may continue to deal solely and directly with such Lender in connection with the interest so assigned to an Assignee until (i) written notice of such assignment, together with payment
instructions, addresses, and related information with respect to the Assignee, have been given to Borrower and Agent by such Lender and the Assignee, (ii) such Lender and its Assignee have delivered to Borrower and Agent an Assignment and
Acceptance and Agent has notified the assigning Lender of its receipt thereof in accordance with Section 13.1(b), and (iii) unless waived by the Agent, the assigning Lender or Assignee has paid to Agent for Agent’s separate
account a processing fee in the amount of $3,500. 
 (b) From and after the date that Agent notifies the assigning Lender
(with a copy to Borrower) that it has received an executed Assignment and Acceptance and, if applicable, payment of the required processing fee, (i) the Assignee thereunder shall be a party hereto and, to the extent that rights and obligations
hereunder have been assigned to it pursuant to such Assignment and Acceptance, shall have the rights and obligations of a Lender under the Loan Documents, and (ii) the assigning Lender shall, to the extent that rights and obligations hereunder
and under the other Loan Documents have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (except with respect to Section 10.3 hereof) and be released from any future obligations under this Agreement
(and in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement and the other Loan Documents, such Lender shall cease to be a party hereto and thereto),
and such assignment shall effect a novation among Borrower, the assigning Lender, and the Assignee; provided, however, that nothing contained herein shall release any assigning Lender from obligations that survive the termination of
this Agreement, including such assigning Lender’s obligations under Section 15 and Section 17.9(a) of this Agreement. 
 (c) By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the Assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other
than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, 

  

 -37- 

 
enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto, (ii) such assigning Lender
makes no representation or warranty and assumes no responsibility with respect to the financial condition of Borrower or the performance or observance by Borrower of any of its obligations under this Agreement or any other Loan Document furnished
pursuant hereto, (iii) such Assignee confirms that it has received a copy of this Agreement, together with such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such
Assignment and Acceptance, (iv) such Assignee will, independently and without reliance upon Agent, such assigning Lender or any other Lender, 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 this Agreement, (v) such Assignee appoints and authorizes Agent to take such actions and to exercise such powers under this Agreement and the other Loan Documents as are delegated to
Agent, by the terms hereof and thereof, together with such powers as are reasonably incidental thereto, and (vi) such Assignee agrees that it will perform all of the obligations which by the terms of this Agreement are required to be performed
by it as a Lender. 
 (d) Immediately upon Agent’s receipt of the required processing fee, if applicable, and delivery of
notice to the assigning Lender pursuant to Section 13.1(b), this Agreement shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the resulting adjustment of the
Commitments arising therefrom. The Commitment allocated to each Assignee shall reduce such Commitments of the assigning Lender pro tanto. 
 (e) Any Lender may at any time sell to one or more commercial banks, financial institutions, or other Persons (a “Participant”) participating interests in all or any portion of its Obligations, its
Commitment, and the other rights and interests of that Lender (the “Originating Lender”) hereunder and under the other Loan Documents; provided, however, that (i) the Originating Lender shall remain a
“Lender” for all purposes of this Agreement and the other Loan Documents and the Participant receiving the participating interest in the Obligations, the Commitments, and the other rights and interests of the Originating Lender hereunder
shall not constitute a “Lender” hereunder or under the other Loan Documents and the Originating Lender’s obligations under this Agreement shall remain unchanged, (ii) the Originating Lender shall remain solely responsible for the
performance of such obligations, (iii) Borrower, Agent, and the Lenders shall continue to deal solely and directly with the Originating Lender in connection with the Originating Lender’s rights and obligations under this Agreement and the
other Loan Documents, (iv) no Lender shall transfer or grant any participating interest under which the Participant has the right to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document,
except to the extent such amendment to, or consent or waiver with respect to this Agreement or of any other Loan Document would (A) extend the final maturity date of the Obligations hereunder in which such Participant is participating,
(B) reduce the interest rate applicable to the Obligations hereunder in which such Participant is participating, (C) release all or substantially all of the Collateral or guaranties (except to the extent expressly provided herein or in any
of the Loan Documents) supporting the Obligations hereunder in which such Participant is participating, (D) postpone the payment of, or reduce the amount of, the interest or fees payable to such Participant through such Lender, or
(E) change the amount or due dates of scheduled principal repayments or prepayments or premiums, and (v) all amounts payable by Borrower hereunder shall be determined as if such Lender had not sold such participation, except that, if
amounts outstanding under this Agreement are due and unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an Event of Default, each Participant shall be deemed to have the right of set off in respect of its
participating interest in amounts owing under this Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement. The rights of any Participant only shall be derivative through
the Originating Lender with whom such Participant participates and no Participant shall have any rights under this Agreement or the other Loan Documents or any direct rights as to the other Lenders, Agent, Borrower, the Collections of Borrower or
its Subsidiaries, the Collateral, or otherwise in respect of the Obligations. No Participant shall have the right to participate directly in the making of decisions by the Lenders among themselves. 
  

 -38- 

 (f) In connection with any such assignment or participation or proposed assignment or
participation, a Lender may, subject to the provisions of Section 17.9, disclose all documents and information which it now or hereafter may have relating to Borrower and its Subsidiaries and their respective businesses. 
 (g) Any other provision in this Agreement notwithstanding, any Lender may at any time create a security interest in, or pledge, all or any
portion of its rights under and interest in this Agreement in favor of any Federal Reserve Bank in accordance with Regulation A of the Federal Reserve Bank or U.S. Treasury Regulation 31 CFR §203.24, and such Federal Reserve Bank may enforce
such pledge or security interest in any manner permitted under applicable law. 
 13.2 Successors. This Agreement shall
bind and inure to the benefit of the respective successors and assigns of each of the parties; provided, however, that Borrower may not assign this Agreement or any rights or duties hereunder without the Lenders’ prior written
consent and any prohibited assignment shall be absolutely void ab initio. No consent to assignment by the Lenders shall release Borrower from its Obligations. A Lender may assign this Agreement and the other Loan Documents and its rights and
duties hereunder and thereunder pursuant to Section 13.1 hereof and, except as expressly required pursuant to Section 13.1 hereof, no consent or approval by Borrower is required in connection with any such assignment.

  

	(n)	AMENDMENTS; WAIVERS. 

 14.1 Amendments and
Waivers. 
 (a) No amendment, waiver or other modification of any provision of this Agreement or any other Loan
Document (other than Bank Product Agreements or the Fee Letter), and no consent with respect to any departure by Borrower therefrom, shall be effective unless the same shall be in writing and signed by the Required Lenders (or by Agent at the
written request of the Required Lenders) and Borrower and then any such waiver or consent shall be effective, but only in the specific instance and for the specific purpose for which given; provided, however, that no such waiver,
amendment, or consent shall, unless in writing and signed by all of the Lenders directly affected thereby and Borrower, do any of the following: 
 (i) increase the amount of or extend the expiration date of any Commitment of any Lender, 
 (ii) postpone or delay any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees, or other amounts due hereunder or under any other Loan Document, 
 (iii) reduce the principal of, or the rate of interest on, any loan or other extension of credit hereunder, or reduce any fees or other
amounts payable hereunder or under any other Loan Document (except (y) in connection with the waiver of applicability of Section 2.6(c) (which waiver shall be effective with the written consent of the Required Lenders), and
(z) that any amendment or modification of defined terms used in the financial covenants in this Agreement shall not constitute a reduction in the rate of interest or a reduction of fees for purposes of this clause (iii)), 
 (iv) amend or modify this Section or any provision of this Agreement providing for consent or other action by all Lenders, 
 (v) other than as permitted by Section 15.11, release Agent’s Lien in and to any of the Collateral, 
 (vi) change the definition of “Required Lenders” or “Pro Rata Share”, 
  

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 (vii) contractually subordinate any of the Agent’s Liens, 
 (viii) other than in connection with a merger, liquidation, dissolution or sale of such Person expressly permitted by the terms hereof or
the other Loan Documents, release Borrower or any Guarantor from any obligation for the payment of money or consent to the assignment or transfer by the Borrower or any Guarantor of any of its rights or duties under this Agreement or the other Loan
Documents, 
 (ix) amend any of the provisions of Section 2.4(b)(i) or (ii) or
Section 2.4(e) or (f), 
 (x) amend Section 13.1(a) to permit a Loan Party or an Affiliate of a
Loan Party to be permitted to become an Assignee, or 
 (xi) change the definition of Credit Amount or any of the defined
terms that are used in such definition to the extent that any such change results in more credit being made available to Borrower based upon the Credit Amount, but not otherwise, or the definition of Maximum Revolver Amount. 
 (b) No amendment, waiver, modification, or consent shall amend, modify, or waive (i) the definition of, or any of the terms or
provisions of, the Fee Letter, without the written consent of Agent and Borrower (and shall not require the written consent of any of the Lenders), and (ii) any provision of Section 15 pertaining to Agent, or any other rights or duties of
Agent under this Agreement or the other Loan Documents, without the written consent of Agent, Borrower, and the Required Lenders, 
 (c) No amendment, waiver, modification, or consent shall amend, modify, or waive any provision of this Agreement or the other Loan Documents pertaining to Issuing Lender, or any other rights or duties of Issuing Lender under this Agreement
or the other Loan Documents, without the written consent of Issuing Lender, Agent, Borrower, and the Required Lenders, 
 (d)
No amendment, waiver, modification, or consent shall amend, modify, or waive any provision of this Agreement or the other Loan Documents pertaining to Swing Lender, or any other rights or duties of Swing Lender under this Agreement or the other Loan
Documents, without the written consent of Swing Lender, Agent, Borrower, and the Required Lenders, 
 (e) Anything in this
Section 14.1 to the contrary notwithstanding, any amendment, modification, waiver, consent, termination, or release of, or with respect to, any provision of this Agreement or any other Loan Document that relates only to the relationship
of the Lender Group among themselves, and that does not affect the rights or obligations of Borrower, shall not require consent by or the agreement of Borrower. 
 14.2 Replacement of Holdout Lender. 
 (a) If any action to be taken by the
Lender Group or Agent hereunder requires the unanimous consent, authorization, or agreement of all Lenders and if such action has received the consent, authorization, or agreement of the Required Lenders but not all of the Lenders, then Agent, upon
at least 5 Business Days prior irrevocable notice, may permanently replace any Lender (a “Holdout Lender”) that failed to give its consent, authorization, or agreement with one or more Replacement Lenders, and the Holdout Lender
shall have no right to refuse to be replaced hereunder. Such notice to replace the Holdout Lender shall specify an effective date for such replacement, which date shall not be later than 15 Business Days after the date such notice is given.

  

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 (b) Prior to the effective date of such replacement, the Holdout Lender and each
Replacement Lender shall execute and deliver an Assignment and Acceptance, subject only to the Holdout Lender being repaid its share of the outstanding Obligations (including an assumption of its Pro Rata Share of the Risk Participation Liability)
without any premium or penalty of any kind whatsoever. If the Holdout Lender shall refuse or fail to execute and deliver any such Assignment and Acceptance prior to the effective date of such replacement, the Holdout Lender shall be deemed to have
executed and delivered such Assignment and Acceptance. The replacement of any Holdout Lender shall be made in accordance with the terms of Section 13.1. Until such time as the Replacement Lenders shall have acquired all of the
Obligations, the Commitments, and the other rights and obligations of the Holdout Lender hereunder and under the other Loan Documents, the Holdout Lender shall remain obligated to make the Holdout Lender’s Pro Rata Share of Advances and to
purchase a participation in each Letter of Credit, in an amount equal to its Pro Rata Share of the Risk Participation Liability of such Letter of Credit. 
 14.3 No Waivers; Cumulative Remedies. No failure by Agent or any Lender to exercise any right, remedy, or option under this Agreement or any other Loan Document, or delay by Agent or any Lender in
exercising the same, will operate as a waiver thereof. No waiver by Agent or any Lender will be effective unless it is in writing, and then only to the extent specifically stated. No waiver by Agent or any Lender on any occasion shall affect or
diminish Agent’s and each Lender’s rights thereafter to require strict performance by Borrower of any provision of this Agreement. Agent’s and each Lender’s rights under this Agreement and the other Loan Documents will be
cumulative and not exclusive of any other right or remedy that Agent or any Lender may have. 
  

	(o)	AGENT; THE LENDER GROUP. 

 15.1 Appointment
and Authorization of Agent. Each Lender hereby designates and appoints WFF as its representative under this Agreement and the other Loan Documents and each Lender hereby irrevocably authorizes Agent to execute and deliver each of the
other Loan Documents on its behalf and to take such other action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to Agent by the terms
of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Agent agrees to act as such on the express conditions contained in this Section 15. The provisions of this
Section 15 are solely for the benefit of Agent and the Lenders, and Borrower and its Subsidiaries shall have no rights as a third party beneficiary of any of the provisions contained herein. Any provision to the contrary contained
elsewhere in this Agreement or in any other Loan Document notwithstanding, Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall Agent have or be deemed to have any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Agent; it being expressly understood and agreed that the use of
the word “Agent” is for convenience only, that WFF is merely the representative of the Lenders, and only has the contractual duties set forth herein. Except as expressly otherwise provided in this Agreement, Agent shall have and may use
its sole discretion with respect to exercising or refraining from exercising any discretionary rights or taking or refraining from taking any actions that Agent expressly is entitled to take or assert under or pursuant to this Agreement and the
other Loan Documents. Without limiting the generality of the foregoing, or of any other provision of the Loan Documents that provides rights or powers to Agent, Lenders agree that Agent shall have the right to exercise the following powers as long
as this Agreement remains in effect: (a) maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the Obligations, the Collateral, the Collections of Borrower and its Subsidiaries, and related
matters, (b) execute or file any and all financing or similar statements or notices, amendments, renewals, supplements, documents, instruments, proofs of claim, notices and other written agreements with respect to the Loan Documents,
(c) make Advances, for itself or on behalf of Lenders as provided in the Loan Documents, (d) exclusively receive, apply, and distribute the Collections of Borrower and its Subsidiaries as provided in the Loan Documents, (e) open and
maintain such bank accounts and cash management arrangements as Agent deems necessary and appropriate in accordance with the Loan Documents for the foregoing purposes with respect to the Collateral and the Collections of Borrower and its
Subsidiaries, (f) perform, exercise, and enforce any and all other rights and remedies of the Lender Group with respect to Borrower or its Subsidiaries, the Obligations, the Collateral, the Collections of 
  

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Borrower and its Subsidiaries, or otherwise related to any of same as provided in the Loan Documents, and (g) incur and pay such Lender Group Expenses
as Agent may deem necessary or appropriate for the performance and fulfillment of its functions and powers pursuant to the Loan Documents. 
 15.2 Delegation of Duties. Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or attorneys in fact and shall be entitled to advice of counsel concerning
all matters pertaining to such duties. Agent shall not be responsible for the negligence or misconduct of any agent or attorney in fact that it selects as long as such selection was made without gross negligence or willful misconduct. 
 15.3 Liability of Agent. None of the Agent-Related Persons shall (a) be liable for any action taken or omitted to be taken by
any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (b) be responsible in any manner to any of the Lenders for
any recital, statement, representation or warranty made by Borrower or any of its Subsidiaries or Affiliates, or any officer or director thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement or
other document referred to or provided for in, or received by Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other
Loan Document, or for any failure of Borrower or its Subsidiaries or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender to ascertain or to
inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the books and records or properties of Borrower or its Subsidiaries. 
 15.4 Reliance by Agent. Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution,
notice, consent, certificate, affidavit, letter, telegram, telefacsimile or other electronic method of transmission, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been
signed, sent, or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrower or counsel to any Lender), independent accountants and other experts selected by Agent. Agent shall be fully
justified in failing or refusing to take any action under this Agreement or any other Loan Document unless Agent shall first receive such advice or concurrence of the Lenders as it deems appropriate and until such instructions are received, Agent
shall act, or refrain from acting, as it deems advisable. If Agent so requests, it shall first be indemnified to its reasonable satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or
continuing to take any such action. Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the requisite Lenders and such
request and any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders. 
 15.5 Notice of Default or
Event of Default. Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal, interest, fees, and expenses required to be
paid to Agent for the account of the Lenders and, except with respect to Events of Default of which Agent has actual knowledge, unless Agent shall have received written notice from a Lender or Borrower referring to this Agreement, describing such
Default or Event of Default, and stating that such notice is a “notice of default.” Agent promptly will notify the Lenders of its receipt of any such notice or of any Event of Default of which Agent has actual knowledge. If any Lender
obtains actual knowledge of any Event of Default, such Lender promptly shall notify the other Lenders and Agent of such Event of Default. Each Lender shall be solely responsible for giving any notices to its Participants, if any. Subject to
Section 15.4, Agent shall take such action with respect to such Default or Event of Default as may be requested by the Required Lenders in accordance with Section 8; provided, however, that unless and until
Agent has received any such request, Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable. 
  

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 15.6 Credit Decision. Each Lender acknowledges that none of the Agent-Related
Persons has made any representation or warranty to it, and that no act by Agent hereinafter taken, including any review of the affairs of Borrower and its Subsidiaries or Affiliates, shall be deemed to constitute any representation or warranty by
any Agent-Related Person to any Lender. Each Lender represents to Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of
and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower or any other Person party to a Loan Document, and all applicable bank regulatory laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Borrower. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems
necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower or any other Person party to a Loan Document. Except for notices, reports, and other documents expressly
herein required to be furnished to the Lenders by Agent, Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other
condition or creditworthiness of Borrower or any other Person party to a Loan Document that may come into the possession of any of the Agent-Related Persons. 
 15.7 Costs and Expenses; Indemnification. Agent may incur and pay Lender Group Expenses to the extent Agent reasonably deems necessary or appropriate for the performance and fulfillment of its
functions, powers, and obligations pursuant to the Loan Documents, including court costs, attorneys fees and expenses, fees and expenses of financial accountants, advisors, consultants, and appraisers, costs of collection by outside collection
agencies, auctioneer fees and expenses, and costs of security guards or insurance premiums paid to maintain the Collateral, whether or not Borrower is obligated to reimburse Agent or Lenders for such expenses pursuant to this Agreement or otherwise.
Agent is authorized and directed to deduct and retain sufficient amounts from the Collections of Borrower and its Subsidiaries received by Agent to reimburse Agent for such out-of-pocket costs and expenses prior to the distribution of any amounts to
Lenders. In the event Agent is not reimbursed for such costs and expenses by Borrower or its Subsidiaries, each Lender hereby agrees that it is and shall be obligated to pay to Agent such Lender’s Pro Rata Share thereof. Whether or not the
transactions contemplated hereby are consummated, the Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so), according to
their Pro Rata Shares, from and against any and all Indemnified Liabilities; provided, however, that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting solely
from such Person’s gross negligence or willful misconduct nor shall any Lender be liable for the obligations of any Defaulting Lender in failing to make an Advance or other extension of credit hereunder. Without limitation of the foregoing,
each Lender shall reimburse Agent upon demand for such Lender’s Pro Rata Share of any costs or out of pocket expenses (including attorneys, accountants, advisors, and consultants fees and expenses) incurred by Agent in connection with the
preparation, execution, delivery, administration, modification, amendment, or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other
Loan Document, or any document contemplated by or referred to herein, to the extent that Agent is not reimbursed for such expenses by or on behalf of Borrower. The undertaking in this Section shall survive the payment of all Obligations hereunder
and the resignation or replacement of Agent. 
 15.8 Agent in Individual Capacity. WFF and its Affiliates may make loans
to, issue letters of credit for the account of, accept deposits from, acquire equity interests in, and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and its Subsidiaries and
Affiliates and any other Person party to any Loan Documents as though WFF were not Agent hereunder, and, in each case, without notice to or consent of the other members of the Lender Group. The other members of the Lender Group acknowledge that,
pursuant to such activities, WFF or its Affiliates may receive information regarding Borrower or its Affiliates or any other Person party to any Loan Documents that is subject to 
  

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confidentiality obligations in favor of Borrower or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders
acknowledge that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver Agent will use its reasonable best efforts to obtain), Agent shall not be under any obligation to provide such information to
them. The terms “Lender” and “Lenders” include WFF in its individual capacity. 
 15.9 Successor Agent.
Agent may resign as Agent upon 30 days prior written notice to the Lenders (unless such notice is waived by the Required Lenders). If Agent resigns under this Agreement, the Required Lenders shall be entitled, with (so long as no Event of
Default has occurred and is continuing) the consent of Borrower (such consent not to be unreasonably withheld, delayed, or conditioned), appoint a successor Agent for the Lenders. If, at the time that Agent’s resignation is effective, it is
acting as the Issuing Lender or the Swing Lender, such resignation shall also operate to effectuate its resignation as the Issuing Lender or the Swing Lender, as applicable, and it shall automatically be relieved of any further obligation to issue
Letters of Credit or make Swing Loans. If no successor Agent is appointed prior to the effective date of the resignation of Agent, Agent may appoint, after consulting with the Lenders and Borrower, a successor Agent. If Agent has materially breached
or failed to perform any material provision of this Agreement or of applicable law, the Required Lenders may agree in writing to remove and replace Agent with a successor Agent from among the Lenders. In any such event, upon the acceptance of its
appointment as successor Agent hereunder, such successor Agent shall succeed to all the rights, powers, and duties of the retiring Agent and the term “Agent” shall mean such successor Agent and the retiring Agent’s appointment,
powers, and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section 15 shall inure to its benefit as to any actions taken or omitted to be taken by it while it
was Agent under this Agreement. If no successor Agent has accepted appointment as Agent by the date which is 30 days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of Agent hereunder until such time, if any, as the Lenders appoint a successor Agent as provided for above. 
 15.10 Lender in Individual Capacity. Any Lender and its respective Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and its Subsidiaries and Affiliates and any other Person party to any Loan Documents as though such Lender were not a Lender hereunder
without notice to or consent of the other members of the Lender Group. The other members of the Lender Group acknowledge that, pursuant to such activities, such Lender and its respective Affiliates may receive information regarding Borrower or its
Affiliates or any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of Borrower or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge
that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver such Lender will use its reasonable best efforts to obtain), such Lender shall not be under any obligation to provide such information to
them. 
 15.11 Collateral Matters. The Lenders hereby irrevocably authorize Agent, at its option and in its sole
discretion, to release any Lien on any Collateral (i) upon the termination of the Commitments and payment and satisfaction in full by Borrower of all Obligations, (ii) constituting property being sold or disposed of if a release is
required or desirable in connection therewith and if Borrower certifies to Agent that the sale or disposition is permitted under Section 6.4 of this Agreement or the other Loan Documents (and Agent may rely conclusively on any such
certificate, without further inquiry), (iii) constituting property in which Borrower or its Subsidiaries owned no interest at the time the Agent’s Lien was granted nor at any time thereafter, (iv) constituting property leased to
Borrower or its Subsidiaries under a lease that has expired or is terminated in a transaction permitted under this Agreement, or (v) constituting the Stock or assets of a Subsidiary of Borrower in the event of a merger or dissolution permitted
under Section 6.3 pursuant to which such Subsidiary is merged or dissolved out of existence. Except as provided above, Agent will not execute and deliver a release of any Lien on any Collateral without the prior written authorization of
(y) if the release is of all or substantially all of the Collateral, all of the Lenders, or (z) otherwise, the Required Lenders. Upon 
  

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request by Agent or Borrower at any time, the Lenders will confirm in writing Agent’s authority to release any such Liens on particular types or items
of Collateral pursuant to this Section 15.11; provided, however, that (1) Agent shall not be required to execute any document necessary to evidence such release on terms that, in Agent’s opinion, would expose
Agent to liability or create any obligation or entail any consequence other than the release of such Lien without recourse, representation, or warranty, and (2) such release shall not in any manner discharge, affect, or impair the Obligations
or any Liens (other than those expressly being released) upon (or obligations of Borrower in respect of) all interests retained by Borrower, including, the proceeds of any sale, all of which shall continue to constitute part of the Collateral. The
Lenders hereby irrevocably authorize Agent, at its option and in its sole discretion, to release any Guarantor from the Guaranty in the event of a merger or dissolution permitted under Section 6.3 pursuant to which such Guarantor is
merged or dissolved out of existence. 
 (a) Agent shall have no obligation whatsoever to any of the Lenders to assure that
the Collateral exists or is owned by Borrower or its Subsidiaries or is cared for, protected, or insured or has been encumbered, or that the Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected, or enforced
or are entitled to any particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to Agent
pursuant to any of the Loan Documents, it being understood and agreed that in respect of the Collateral, or any act, omission, or event related thereto, subject to the terms and conditions contained herein, Agent may act in any manner it may deem
appropriate, in its sole discretion given Agent’s own interest in the Collateral in its capacity as one of the Lenders and that Agent shall have no other duty or liability whatsoever to any Lender as to any of the foregoing, except as otherwise
provided herein. 
 15.12 Restrictions on Actions by Lenders; Sharing of Payments. 
 (a) Each of the Lenders agrees that it shall not, without the express written consent of Agent, and that it shall, to the extent it is
lawfully entitled to do so, upon the written request of Agent, set off against the Obligations, any amounts owing by such Lender to Borrower or its Subsidiaries or any deposit accounts of Borrower or its Subsidiaries now or hereafter maintained with
such Lender. Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Agent, take or cause to be taken any action, including, the commencement of any legal or equitable proceedings to enforce any
Loan Document against Borrower or any Guarantor or to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral. 
 (b) If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or otherwise, any proceeds of Collateral or any payments with respect to the Obligations, except for any such proceeds or
payments received by such Lender from Agent pursuant to the terms of this Agreement, or (ii) payments from Agent in excess of such Lender’s Pro Rata Share of all such distributions by Agent, such Lender promptly shall (A) turn the
same over to Agent, in kind, and with such endorsements as may be required to negotiate the same to Agent, or in immediately available funds, as applicable, for the account of all of the Lenders and for application to the Obligations in accordance
with the applicable provisions of this Agreement, or (B) purchase, without recourse or warranty, an undivided interest and participation in the Obligations owed to the other Lenders so that such excess payment received shall be applied ratably
as among the Lenders in accordance with their Pro Rata Shares; provided, however, that to the extent that such excess payment received by the purchasing party is thereafter recovered from it, those purchases of participations shall be
rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be returned to such purchasing party, but without interest except to the extent that such purchasing party is required to pay interest
in connection with the recovery of the excess payment. 
 15.13 Agency for Perfection. Agent hereby appoints each other
Lender as its agent (and each Lender hereby accepts such appointment) for the purpose of perfecting the Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of the Code can be perfected by possession or
control. 
  

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Should any Lender obtain possession or control of any such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent’s request
therefor shall deliver possession or control of such Collateral to Agent or in accordance with Agent’s instructions. 
 15.14
Payments by Agent to the Lenders. All payments to be made by Agent to the Lenders shall be made by bank wire transfer of immediately available funds pursuant to such wire transfer instructions as each party may designate for
itself by written notice to Agent. Concurrently with each such payment, Agent shall identify whether such payment (or any portion thereof) represents principal, premium, fees, or interest of the Obligations. 
 15.15 Concerning the Collateral and Related Loan Documents. Each member of the Lender Group authorizes and directs Agent to enter
into this Agreement and the other Loan Documents. Each member of the Lender Group agrees that any action taken by Agent in accordance with the terms of this Agreement or the other Loan Documents relating to the Collateral and the exercise by Agent
of its powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Lenders. 
 15.16 Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information. By becoming a party to this Agreement, each Lender: 
 (a) is deemed to have requested that Agent furnish such Lender, promptly after it becomes available, a copy of each field audit or
examination report respecting Borrower or its Subsidiaries (each a “Report” and collectively, “Reports”) prepared by or at the request of Agent, and Agent shall so furnish each Lender with such Reports, 

(b) expressly agrees and acknowledges that Agent does not (i) make any representation or warranty as to the accuracy of any
Report, and (ii) shall not be liable for any information contained in any Report, 
 (c) expressly agrees and
acknowledges that the Reports are not comprehensive audits or examinations, that Agent or other party performing any audit or examination will inspect only specific information regarding Borrower and its Subsidiaries and will rely significantly upon
Borrower’s and its Subsidiaries’ books and records, as well as on representations of Borrower’s personnel, 
 (d) agrees to keep all Reports and other material, non-public information regarding Borrower and its Subsidiaries and their operations, assets, and existing and contemplated business plans in a confidential manner in accordance with
Section 17.9, and 
 (e) without limiting the generality of any other indemnification provision contained in this
Agreement, agrees: (i) to hold Agent and any other Lender preparing a Report harmless from any action the indemnifying Lender may take or fail to take or any conclusion the indemnifying Lender may reach or draw from any Report in connection
with any loans or other credit accommodations that the indemnifying Lender has made or may make to Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a loan or loans of Borrower, and
(ii) to pay and protect, and indemnify, defend and hold Agent, and any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including, attorneys fees and
costs) incurred by Agent and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender. 
 In addition to the foregoing: (x) any Lender may from time to time request of Agent in writing that Agent provide to such Lender a
copy of any report or document provided by Borrower or its Subsidiaries to Agent that has not been contemporaneously provided by Borrower or such Subsidiary to such 

  

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Lender, and, upon receipt of such request, Agent promptly shall provide a copy of same to such Lender, (y) to the extent that Agent is entitled, under
any provision of the Loan Documents, to request additional reports or information from Borrower or its Subsidiaries, any Lender may, from time to time, reasonably request Agent to exercise such right as specified in such Lender’s notice to
Agent, whereupon Agent promptly shall request of Borrower the additional reports or information reasonably specified by such Lender, and, upon receipt thereof from Borrower or such Subsidiary, Agent promptly shall provide a copy of same to such
Lender, and (z) any time that Agent renders to Borrower a statement regarding the Loan Account, Agent shall send a copy of such statement to each Lender. 
 15.17 Several Obligations; No Liability. Notwithstanding that certain of the Loan Documents now or hereafter may have been or will be executed only by or in favor of Agent in its capacity as such,
and not by or in favor of the Lenders, any and all obligations on the part of Agent (if any) to make any credit available hereunder shall constitute the several (and not joint) obligations of the respective Lenders on a ratable basis, according to
their respective Commitments, to make an amount of such credit not to exceed, in principal amount, at any one time outstanding, the amount of their respective Commitments. Nothing contained herein shall confer upon any Lender any interest in, or
subject any Lender to any liability for, or in respect of, the business, assets, profits, losses, or liabilities of any other Lender. Each Lender shall be solely responsible for notifying its Participants of any matters relating to the Loan
Documents to the extent any such notice may be required, and no Lender shall have any obligation, duty, or liability to any Participant of any other Lender. Except as provided in Section 15.7, no member of the Lender Group shall have any
liability for the acts of any other member of the Lender Group. No Lender shall be responsible to Borrower or any other Person for any failure by any other Lender to fulfill its obligations to make credit available hereunder, nor to advance for it
or on its behalf in connection with its Commitment, nor to take any other action on its behalf hereunder or in connection with the financing contemplated herein. 
  

	(p)	WITHHOLDING TAXES. 

 (a) All
payments made by Borrower hereunder or under any note or other Loan Document will be made without setoff, counterclaim, or other defense. In addition, all such payments will be made free and clear of, and without deduction or withholding for, any
present or future Taxes, and in the event any deduction or withholding of Taxes is required, Borrower shall comply with the next sentence of this Section 16(a). If any Taxes are so levied or imposed, Borrower agrees to pay the full
amount of such Taxes and such additional amounts as may be necessary so that every payment of all amounts due under this Agreement, any note, or Loan Document, including any amount paid pursuant to this Section 16(a) after withholding or
deduction for or on account of any Taxes, will not be less than the amount provided for herein; provided, however, that Borrower shall not be required to increase any such amounts if the increase in such amount payable results from Agent’s or
such Lender’s own willful misconduct or gross negligence (as finally determined by a court of competent jurisdiction). Borrower will furnish to Agent as promptly as possible after the date the payment of any Tax is due pursuant to applicable
law, certified copies of tax receipts evidencing such payment by Borrower. 
 (b) Borrower agrees to pay any present or future
stamp, value added or documentary taxes or any other excise or property taxes, charges, or similar levies that arise from any payment made hereunder or from the execution, delivery, performance, recordation, or filing of, or otherwise with respect
to this Agreement or any other Loan Document. 
  

 -47- 

 (c) If a Lender or Participant is entitled to claim an exemption or reduction from United
States withholding tax, such Lender or Participant agrees with and in favor of Agent, to deliver to Agent (or, in the case of a Participant, to the Lender granting the participation only) one of the following before receiving its first payment under
this Agreement: 
 (i) if such Lender or Participant is entitled to claim an exemption from United States withholding tax
pursuant to its portfolio interest exception, (A) a statement of the Lender or Participant, signed under penalty of perjury, that it is not a (I) a “bank” as described in Section 881(c)(3)(A) of the IRC, (II) a 10%
shareholder of Borrower (within the meaning of Section 871(h)(3)(B) of the IRC), or (III) a controlled foreign corporation related to Borrower within the meaning of Section 864(d)(4) of the IRC, and (B) a properly completed and
executed IRS Form W-8BEN or Form W-8IMY (with proper attachments); 
 (ii) if such Lender or Participant is entitled to claim
an exemption from, or a reduction of, withholding tax under a United States tax treaty, a properly completed and executed copy of IRS Form W-8BEN; 
 (iii) if such Lender or Participant is entitled to claim that interest paid under this Agreement is exempt from United States withholding tax because it is effectively connected with a United States trade or business
of such Lender, a properly completed and executed copy of IRS Form W-8ECI; 
 (iv) if such Lender or Participant is entitled
to claim that interest paid under this Agreement is exempt from United States withholding tax because such Lender or Participant serves as an intermediary, a properly completed and executed copy of IRS Form W-8IMY (with proper attachments); or

 (v) a properly completed and executed copy of any other form or forms, including IRS Form W-9, as may be required under the
IRC or other laws of the United States as a condition to exemption from, or reduction of, United States withholding or backup withholding tax. 
 Each Lender or Participant shall provide new forms (or successor forms) upon the expiration or obsolescence of any previously delivered forms and to promptly notify Agent (or, in the case of a Participant, to the Lender granting the
participation only) of any change in circumstances which would modify or render invalid any claimed exemption or reduction. 
 (d) If a Lender or Participant claims an exemption from withholding tax in a jurisdiction other than the United States, such Lender or such Participant agrees with and in favor of Agent, to deliver to Agent (or, in the case of a
Participant, to the Lender granting the participation only) any such form or forms, as may be required under the laws of such jurisdiction as a condition to exemption from, or reduction of, foreign withholding or backup withholding tax before
receiving its first payment under this Agreement, but only if such Lender or such Participant is legally able to deliver such forms, provided, however, that nothing in this Section 16(d) shall require a Lender or Participant to
disclose any information that it deems to be confidential (including without limitation, its tax returns). Each Lender and each Participant shall provide new forms (or successor forms) upon the expiration or obsolescence of any previously delivered
forms and to promptly notify Agent (or, in the case of a Participant, to the Lender granting the participation only) of any change in circumstances which would modify or render invalid any claimed exemption or reduction. 
 (e) If a Lender or Participant claims exemption from, or reduction of, withholding tax and such Lender or Participant sells, assigns,
grants a participation in, or otherwise transfers all or part of the Obligations of Borrower to such Lender or Participant, such Lender or Participant agrees to notify Agent (or, in the case of a sale of a participation interest, to the Lender
granting the participation only) of the percentage amount in which it is no longer the beneficial owner of Obligations of Borrower to such Lender or Participant. To the extent of such percentage amount, Agent will treat such Lender’s or such
Participant’s documentation provided pursuant to Section 16(c) or 16(d) as no longer valid. With respect to such percentage amount, such Participant or Assignee may provide new documentation, pursuant to Section 16(c) or 16(d), if
applicable. Borrower agrees that each Participant shall be entitled to the benefits of this Section 16 with respect to its participation in any portion of the Commitments and the Obligations so long as such Participant complies with the
obligations set forth in this Section 16 with respect thereto. 
  

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 (f) If a Lender or a Participant is entitled to a reduction in the applicable withholding
tax, Agent (or, in the case of a Participant, to the Lender granting the participation) may withhold from any interest payment to such Lender or such Participant an amount equivalent to the applicable withholding tax after taking into account such
reduction. If the forms or other documentation required by subsection (c) or (d) of this Section 16 are not delivered to Agent (or, in the case of a Participant, to the Lender granting the participation), then Agent (or,
in the case of a Participant, to the Lender granting the participation) may withhold from any interest payment to such Lender or such Participant not providing such forms or other documentation an amount equivalent to the applicable withholding tax.

 (g) If the IRS or any other Governmental Authority of the United States or other jurisdiction asserts a claim that Agent
(or, in the case of a Participant, to the Lender granting the participation) did not properly withhold tax from amounts paid to or for the account of any Lender or any Participant due to a failure on the part of the Lender or any Participant
(because the appropriate form was not delivered, was not properly executed, or because such Lender failed to notify Agent (or such Participant failed to notify the Lender granting the participation) of a change in circumstances which rendered the
exemption from, or reduction of, withholding tax ineffective, or for any other reason) such Lender shall indemnify and hold Agent harmless (or, in the case of a Participant, such Participant shall indemnify and hold the Lender granting the
participation harmless) for all amounts paid, directly or indirectly, by Agent (or, in the case of a Participant, to the Lender granting the participation), as tax or otherwise, including penalties and interest, and including any taxes imposed by
any jurisdiction on the amounts payable to Agent (or, in the case of a Participant, to the Lender granting the participation only) under this Section 16, together with all costs and expenses (including attorneys fees and expenses). The
obligation of the Lenders and the Participants under this subsection shall survive the payment of all Obligations and the resignation or replacement of Agent. 
 (h) If Agent or a Lender determines, in its sole discretion, that it has received a refund of any Taxes as to which it has been
indemnified by Borrower or with respect to which Borrower has paid additional amounts pursuant to this Section 16, so long as no Default or Event of Default has occurred and is continuing, it shall pay over such refund to Borrower (but only to
the extent of payments made, or additional amounts paid, by Borrower under this Section 16 with respect to Taxes giving rise to such a refund), net of all out-of-pocket expenses of Agent or such Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such a refund); provided, that Borrower, upon the request of Agent or such Lender, agrees to repay the amount paid over to Borrower (plus any penalties, interest or other charges,
imposed by the relevant Governmental Authority, other than such penalties, interest or other charges imposed as a result of the willful misconduct or gross negligence of Agent hereunder) to Agent or such Lender in the event Agent or such Lender is
required to repay such refund to such Governmental Authority. Notwithstanding anything in this Credit Agreement to the contrary, this Section 16 shall not be construed to require Agent or any Lender to make available its tax returns (or any
other information which it deems confidential) to Borrower or any other Person. 
  

	(q)	GENERAL PROVISIONS. 

 17.1
Effectiveness. This Agreement shall be binding and deemed effective when executed by Borrower, Agent, and each Lender whose signature is provided for on the signature pages hereof. 
 17.2 Section Headings. Headings and numbers have been set forth herein for convenience only. Unless the contrary is compelled by the
context, everything contained in each Section applies equally to this entire Agreement. 
 17.3 Interpretation. Neither
this Agreement nor any uncertainty or ambiguity herein shall be construed against the Lender Group or Borrower, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be
construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto. 
  

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 17.4 Severability of Provisions. Each provision of this Agreement shall be severable
from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 
 17.5
Bank Product Providers. Each Bank Product Provider shall be deemed a third party beneficiary hereof and of the provisions of the other Loan Documents for purposes of any reference in a Loan Document to the parties for whom Agent
is acting; it being understood and agreed that the rights and benefits of such Bank Product Provider under the Loan Documents consist exclusively of such Bank Product Provider’s right to share in payments and collections out of the Collateral
as more fully set forth herein. In connection with any such distribution of payments and collections, Agent shall be entitled to assume no amounts are due to any Bank Product Provider unless such Bank Product Provider has notified Agent in writing
of the amount of any such liability owed to it prior to such distribution. 
 17.6 Debtor-Creditor Relationship. The
relationship between the Lenders and Agent, on the one hand, and the Loan Parties, on the other hand, is solely that of creditor and debtor. No member of the Lender Group has (or shall be deemed to have) any fiduciary relationship or duty to any
Loan Party arising out of or in connection with the Loan Documents or the transactions contemplated thereby, and there is no agency or joint venture relationship between the members of the Lender Group, on the one hand, and the Loan Parties, on the
other hand, by virtue of any Loan Document or any transaction contemplated therein. 
 17.7 Counterparts; Electronic
Execution. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken
together, shall constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed
counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Agreement but the failure to
deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis. 
 17.8 Revival and Reinstatement of Obligations. If the incurrence or payment of the Obligations by Borrower or Guarantor or the
transfer to the Lender Group of any property should for any reason subsequently be declared to be void or voidable under any state or federal law relating to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent
conveyances, preferences, or other voidable or recoverable payments of money or transfers of property (each, a “Voidable Transfer”), and if the Lender Group is required to repay or restore, in whole or in part, any such Voidable
Transfer, or elects to do so upon the reasonable advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that the Lender Group is required or elects to repay or restore, and as to all reasonable costs, expenses, and
attorneys fees of the Lender Group related thereto, the liability of Borrower or Guarantor automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made. 
 17.9 Confidentiality. 
 (a) Agent and Lenders each individually (and not jointly or jointly and severally) agree that information that is material, non-public, confidential or proprietary in nature regarding Borrower and its Subsidiaries, their operations, assets,
and existing and contemplated business plans shall be treated by Agent and the Lenders in a confidential manner, and shall not be disclosed by Agent and the Lenders to Persons who are not parties to this Agreement, except: (i) to attorneys for
and other advisors, accountants, auditors, and consultants to any member of the Lender Group, (ii) to Subsidiaries and Affiliates of any member of the 

  

 -50- 

 
Lender Group (including the Bank Product Providers), provided that any such Subsidiary or Affiliate shall have agreed to receive such information hereunder
subject to the terms of this Section 17.9, (iii) as may be required by statute, decision, or judicial or administrative order, rule, or regulation, (iv) as may be agreed to in advance by Borrower or as requested or required by
any Governmental Authority pursuant to any subpoena or other legal process, (v) as to any such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Agent or the Lenders),
(vi) in connection with any assignment, participation or pledge of any Lender’s interest under this Agreement, provided that any such assignee, participant, or pledgee shall have agreed in writing to receive such information hereunder
subject to the terms of this Section, and (vii) in connection with any litigation or other adversary proceeding involving parties hereto which such litigation or adversary proceeding involves claims related to the rights or duties of such
parties under this Agreement or the other Loan Documents. In the event that disclosure is required pursuant to clause (iii) above or by any Governmental Authority pursuant to any subpoena or other legal process, (x) Agent or the applicable
Lender shall notify Borrower as soon as reasonably practicable upon learning of any such requested or required disclosure, unless such notification is prohibited by applicable law, rule, regulation, stock exchange rule, or legal process, and, if
requested by Borrower upon such notification and at Borrower’s sole expense, shall cooperate with the Borrower’s reasonable efforts to obtain a protective order or other appropriate assurances that the confidential nature of the
information will be protected and (y) if a protective order or other remedy is not obtained, Agent or such Lender may furnish that portion of the information which, based on the advice of counsel, it is legally compelled to disclose. The
provisions of this Section 17.9(a) shall survive the termination of this Agreement. 
 (b) Anything in this
Agreement to the contrary notwithstanding, Agent may provide information concerning the terms and conditions of this Agreement and the other Loan Documents to loan syndication and pricing reporting services. 
 17.10 Lender Group Expenses. Borrower agrees to pay any and all Lender Group Expenses promptly after demand therefor by Agent and
agrees that its obligations contained in this Section 17.10 shall survive payment or satisfaction in full of all other Obligations. 
 17.11 USA PATRIOT Act. Each Lender that is subject to the requirements of the Patriot Act hereby notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Patriot Act. 
 17.12 Integration. This Agreement, together with the other Loan Documents, reflects the entire understanding of the parties with
respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. 
 [Signature pages to follow.] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as
of the date first above written. 
  

			
	CAPTARIS, INC.,
	a Washington corporation
		
	By:	 	/s/ Peter Papano
	Title:	 	Chief Financial Officer
	
	WELLS FARGO FOOTHILL, LLC,
	 a Delaware limited liability company,
 as
Agent and as a Lender

		
	By:	 	Terri Le
	Title:	 	Vice President

  

 -i- 

 Schedule 1.1 
 As used in the Agreement, the following terms shall have the following definitions: 
 “Account” means an account (as that term is defined in the Code). 
 “Account Debtor” means any
Person who is obligated on an Account, chattel paper, or a general intangible. 
 “ACH Transactions” means any cash
management or related services (including the Automated Clearing House processing of electronic fund transfers through the direct Federal Reserve Fedline system) provided by a Bank Product Provider for the account of Borrower or its Subsidiaries.

 “Acquired Indebtedness” means Indebtedness of a Person whose assets or Stock is acquired by Borrower or any of its
Subsidiaries in a Permitted Acquisition, provided that such Indebtedness (a) is either Purchase Money Indebtedness or a Capital Lease with respect to Equipment or mortgage financing with respect to Real Property, (b) was in existence prior
to the date of such Permitted Acquisition, and (c) was not incurred in connection with, or in contemplation of, such Permitted Acquisition. 
 “Acquisition” means (a) the purchase or other acquisition by a Person or its Subsidiaries of all or substantially all of the assets of any other Person, or (b) the purchase or other acquisition (whether by means
of a merger, consolidation, or otherwise) by a Person or its Subsidiaries of all or substantially all of the Stock of any other Person. 
 “Additional Documents” has the meaning specified therefor in Section 5.12. 
 “Advances” has the meaning specified therefor in Section 2.1(a). 
 “Affected Lender”
has the meaning specified therefor in Section 2.13(b). 
 “Affiliate” means, as applied to any Person, any other
Person who controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” means the possession, directly or indirectly through one or more intermediaries, of the power to direct the
management and policies of a Person, whether through the ownership of Stock, by contract, or otherwise; provided, however, that, for purposes of Section 6.12: (a) any Person which owns directly or indirectly 10% or more of the Stock
having ordinary voting power for the election of directors or other members of the governing body of a Person or 10% or more of the partnership or other ownership interests of a Person (other than as a limited partner of such Person) shall be deemed
an Affiliate of such Person, (b) each director (or comparable manager) of a Person shall be deemed to be an Affiliate of such Person, and (c) each partnership in which a Person is a general partner shall be deemed an Affiliate of such
Person. 
 “Agent” has the meaning specified therefor in the preamble to the Agreement. 
 “Agent-Related Persons” means Agent, together with its Affiliates, officers, directors, employees, attorneys, and agents. 
 “Agent’s Account” means the Deposit Account of Agent identified on Schedule A-1. 
 “Agent’s Liens” means the Liens granted by Borrower or its Subsidiaries to Agent under the Loan Documents. 
 “Agreement” means the Credit Agreement to which this Schedule 1.1 is attached. 
  

 — 1 — 

 “Application Event” means the occurrence of (a) a failure by Borrower to repay all
of the Obligations on the Maturity Date, or (b) an Event of Default and the election by the Agent or the Required Lenders to require that payments and proceeds of Collateral be applied pursuant to Section 2.4(b)(ii). 
 “Approved Increase” has the meaning specified therefor in Section 2.2(a). 
 “Assignee” has the meaning specified therefor in Section 13.1(a). 
 “Assignment and Acceptance” means an Assignment and Acceptance Agreement substantially in the form of Exhibit A-1. 
 “Authorized Person” means any one of the individuals identified on Schedule A-2. 
 “Availability” means, as of any date of determination, the amount that Borrower is entitled to borrow as Advances under
Section 2.1 (after giving effect to all then outstanding Obligations (other than Bank Product Obligations). 
 “Available
Increase Amount” means an amount equal to $10,000,000. 
 “Bank Product” means any financial accommodation extended
to Borrower or its Subsidiaries by a Bank Product Provider (other than pursuant to the Agreement) including: (a) credit cards, (b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH Transactions,
(f) cash management, including controlled disbursement, accounts or services, or (g) transactions under Hedge Agreements. 
 “Bank Product Agreements” means those agreements entered into from time to time by Borrower or its Subsidiaries with a Bank Product Provider in connection with the obtaining of any of the Bank Products. 
 “Bank Product Collateralization” means providing cash collateral (pursuant to documentation reasonably satisfactory to Agent) to be held
by Agent for the benefit of the Bank Product Providers in an amount determined by Agent as sufficient to satisfy the reasonably estimated credit exposure with respect to the then existing Bank Products. 
 “Bank Product Obligations” means (a) all obligations, liabilities, reimbursement obligations, fees, or expenses owing by Borrower
or its Subsidiaries to any Bank Product Provider pursuant to or evidenced by a Bank Product Agreement and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, and (b) all amounts that Borrower or its Subsidiaries are obligated to reimburse to Agent or any member of the Lender Group as a result of Agent or such member of the Lender Group purchasing participations from, or executing
guarantees or indemnities or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products provided by such Bank Product Provider to Borrower or its Subsidiaries. 
 “Bank Product Provider” means Wells Fargo or any of its Affiliates. 
 “Bankruptcy Code” means title 11 of the United States Code, as in effect from time to time. 
 “Base LIBOR Rate” means the rate per annum, determined by Agent in accordance with its customary procedures, and utilizing such
electronic or other quotation sources as it considers appropriate, to be the rate at which Dollar deposits (for delivery on the first day of the requested Interest Period) are offered to major banks in the London interbank market 2 Business Days
prior to the commencement of the requested Interest Period, for a term and in an amount comparable to the Interest Period and the amount of the LIBOR Rate Loan requested (whether as an initial LIBOR Rate Loan or as a continuation of a LIBOR Rate
Loan or as a conversion of a Base Rate Loan to a LIBOR Rate Loan) by Borrower in accordance with the Agreement, which determination shall be conclusive in the absence of manifest error. 
  

 — 2 — 

 “Base Rate” means the greater of
(a) the Federal Funds Rate plus  1/2% and (b) the rate of interest announced, from time to time, within
Wells Fargo at its principal office in San Francisco as its “prime rate”, with the understanding that the “prime rate” is one of Wells Fargo’s base rates (not necessarily the lowest of such rates) and serves as the basis
upon which effective rates of interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after its announcement in such internal publications as Wells Fargo may designate. 
 “Base Rate Loan” means the portion of the Advances that bears interest at a rate determined by reference to the Base Rate. 

“Base Rate Margin” means, calculated as of the first day of each month (with respect to any portion of the outstanding
Advances on such date that is a Base Rate Loan), the applicable margin set forth in the following table that corresponds to the level of the average Daily Balance of Revolver Usage during the month most recently ended: 
  

					
	 Level
	  	 Average Daily Balance of Revolver
Usage during
Month
	  	 Base Rate Margin

	I	  	 If the average Revolver Usage is less than $7,500,000
	  	1.0 percentage points
	II	  	 If the average Revolver Usage is greater than or equal to $7,500,000
	  	1.25 percentage points

 “Benefit Plan” means a “defined benefit plan” (as defined in
Section 3(35) of ERISA) that is subject to Section 302 or Title IV of ERISA for which Borrower or any of its Subsidiaries or ERISA Affiliates has been an “employer” (as defined in Section 3(5) of ERISA) within the past six
years. 
 “Board of Directors” means the board of directors (or comparable managers) of Borrower or any committee thereof
duly authorized to act on behalf of the board of directors (or comparable managers). 
 “Borrower” has the meaning specified
therefor in the preamble to the Agreement. 
 “Borrowing” means a borrowing hereunder consisting of Advances made on the
same day by the Lenders (or Agent on behalf thereof), or by Swing Lender in the case of a Swing Loan, or by Agent in the case of a Protective Advance. 
 “Business Day” means any day that is not a Saturday, Sunday, or other day on which banks are authorized or required to close in the state of California, except that, if a determination of a Business
Day shall relate to a LIBOR Rate Loan, the term “Business Day” also shall exclude any day on which banks are closed for dealings in Dollar deposits in the London interbank market. 
 “Capital Expenditures” means, with respect to any Person for any period, the aggregate of all expenditures by such Person and its
Subsidiaries during such period that are capital expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed minus any software development costs to the extent deducted under the definition of EBITDA
for such period. 
 “Capitalized Lease Obligation” means that portion of the obligations under a Capital Lease that is
required to be capitalized in accordance with GAAP. 
  

 — 3 — 

 “Capital Lease” means a lease that is required to be capitalized for financial reporting
purposes in accordance with GAAP. 
 “Cash Equivalents” means (a) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within 1 year from the date of acquisition thereof, (b) marketable direct
obligations issued or fully guaranteed by any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within 1 year from the date of acquisition thereof and, at the time of
acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s Rating Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no
more than 270 days from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody’s, (d) certificates of deposit, time deposits, overnight bank deposits or
bankers’ acceptances maturing within 1 year from the date of acquisition thereof issued by any bank organized under the laws of the United States or any state thereof or the District of Columbia or any United States branch of a foreign bank
having at the date of acquisition thereof combined capital and surplus of not less than $250,000,000, (e) Deposit Accounts maintained with (i) any bank that satisfies the criteria described in clause (d) above, or (ii) any other
bank organized under the laws of the United States or any state thereof so long as the amount maintained with any such other bank is less than or equal to $100,000 and is insured by the Federal Deposit Insurance Corporation, (f) repurchase
obligations of any commercial bank satisfying the requirements of clause (d) of this definition or recognized securities dealer having combined capital and surplus of not less than $250,000,000, having a term of not more than seven days, with
respect to securities satisfying the criteria in clauses (a) or (d) above, (g) debt securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any commercial bank
satisfying the criteria described in clause (d) above, and (h) Investments in money market funds substantially all of whose assets are invested in the types of assets described in clauses (a) through (g) above. 
 “Change of Control” means that (a) any “person” or “group” (within the meaning of Sections 13(d) and 14(d) of
the Exchange Act) becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 40% or more, of the Stock of Borrower having the right to vote for the election of members of the Board of Directors, or
(b) a majority of the members of the Board of Directors do not constitute Continuing Directors. 
 “Closing Date” means
the date of the making of the initial Advance (or other extension of credit) hereunder or the date on which Agent sends Borrower a written notice that each of the conditions precedent set forth on Schedule 3.1 either have been satisfied or
have been waived. 
 “Code” means the California Uniform Commercial Code, as in effect from time to time. 
 “Collateral” means all assets and interests in assets and proceeds thereof now owned or hereafter acquired by Borrower or its
Subsidiaries in or upon which a Lien is granted under any of the Loan Documents. 
 “Collateral Access Agreement” means a
landlord waiver, bailee letter, or acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in possession of, having a Lien upon, or having rights or interests in Borrower’s or its Subsidiaries’ books
and records, Equipment, or Inventory, in each case, in form and substance reasonably satisfactory to Agent. 
 “Collections”
means all cash, checks, notes, instruments, and other items of payment (including insurance proceeds, cash proceeds of asset sales, rental proceeds, and tax refunds). 
 “Commitment” means, with respect to each Lender, its Revolver Commitment or its Total Commitment, as the context requires, and, with respect to all Lenders, their Revolver Commitments or their Total
Commitments, as the context requires, in each case as such Dollar amounts are set forth beside such 

  

 — 4 — 

 
Lender’s name under the applicable heading on Schedule C-1 or in the Assignment and Acceptance pursuant to which such Lender became a Lender
hereunder, as such amounts may be reduced or increased from time to time pursuant to assignments made in accordance with the provisions of Section 13.1. 
 “Compliance Certificate” means a certificate substantially in the form of Exhibit C-1 delivered by the chief financial officer of Borrower to Agent. 
 “Continuing Director” means (a) any member of the Board of Directors who was a director (or comparable manager) of Borrower on the
Closing Date, and (b) any individual who becomes a member of the Board of Directors after the Closing Date if such individual was approved, appointed or nominated for election to the Board of Directors by a majority of the Continuing Directors,
but excluding any such individual originally proposed for election in opposition to the Board of Directors in office at the Closing Date in an actual or threatened election contest relating to the election of the directors (or comparable managers)
of Borrower and whose initial assumption of office resulted from such contest or the settlement thereof. 
 “Control
Agreement” means a control agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by Borrower or one of its Subsidiaries, Agent, and the applicable securities intermediary (with respect to a Securities
Account) or bank (with respect to a Deposit Account). 
 “Copyright Security Agreement” has the meaning specified therefor
in the Security Agreement. 
 “Credit Amount” means the result of (a) 0.75 times (b) TTM Maintenance Fee Revenues,
calculated as of the last month for which financial statements have most recently been delivered pursuant to Section 5.1. 
 “Credit Amount Certificate” means a certificate in the form of Exhibit C-2. 
 “Credit Amount
Excess” has the meaning specified therefor in Section 2.4(e). 
 “Daily Balance” means, as of any date
of determination and with respect to any Obligation, the amount of such Obligation owed at the end of such day. 
 “Default”
means an event, condition, or default that, with the giving of notice, the passage of time, or both, would be an Event of Default. 
 “Defaulting Lender” means any Lender that fails to make any Advance (or other extension of credit) that it is required to make hereunder on the date that it is required to do so hereunder. 
 “Defaulting Lender Rate” means (a) for the first 3 days from and after the date the relevant payment is due, the Base Rate, and
(b) thereafter, the interest rate then applicable to Advances that are Base Rate Loans (inclusive of the Base Rate Margin applicable thereto). 
 “Deposit Account” means any deposit account (as that term is defined in the Code). 
 “Designated
Account” means the Deposit Account of Borrower identified on Schedule D-1. 
 “Designated Account Bank” has
the meaning specified therefor in Schedule D-1. 
 “Dollars” or “$” means United States dollars.

 “Domestic Subsidiary” means a direct or indirect Subsidiary of Borrower that was formed and exists under the laws of one
of the States of the United States or the District of Columbia. 
  

 — 5 — 

 “EBITDA” means, with respect to any fiscal period, Borrower’s
consolidated net earnings (or loss), minus extraordinary gains, interest income, and any software development costs to the extent capitalized during such period, plus non-cash
extraordinary losses, Interest Expense, income taxes, depreciation and amortization, and non-cash compensation expense for such period, in each case, determined on a consolidated basis in accordance with GAAP, plus
restructuring and severance expense for Borrower’s 2007 fiscal year in an amount not to exceed $937,000 and restructuring and severance expense for Borrower’s 2008 fiscal year in an amount not to exceed $200,000. For the purposes of
calculating EBITDA for any period of four consecutive fiscal quarters (each, a “Reference Period”), if at any time during such Reference Period (and after the Closing Date) Borrower or any of its Subsidiaries shall have made a Permitted
Acquisition, EBITDA for such Reference Period shall be calculated after giving pro forma effect thereto (including pro forma adjustments arising out of events which are directly attributable to such Permitted Acquisition, are factually supportable,
and are expected to have a continuing impact, in each case determined on a basis consistent with Article 11 of Regulation S X promulgated under the Securities Act and as interpreted by the staff of the SEC) or in such other manner acceptable to
Agent as if the Permitted Acquisition occurred on the first day of such Reference Period. 
 “Environmental
Action” means any written complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter, or other written communication from any Governmental Authority, or
any third party involving violations of Environmental Laws or releases of Hazardous Materials from (a) any assets, properties, or businesses of any Borrower, any Subsidiary of a Borrower, or any of their predecessors in interest, (b) from
adjoining properties or businesses, or (c) from or onto any facilities which received Hazardous Materials generated by any Borrower, any Subsidiary of a Borrower, or any of their predecessors in interest. 
 “Environmental Law” means any applicable federal, state, provincial, foreign or local statute, law, rule, regulation, ordinance, code,
binding and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and in each case as amended, or any judicial or administrative interpretation thereof, including any judicial or
administrative order, consent decree or judgment, in each case, to the extent binding on Borrower or its Subsidiaries, relating to the environment, the effect of the environment on employee health, or Hazardous Materials, in each case as amended
from time to time. 
 “Environmental Liabilities” means all liabilities, monetary obligations, losses, damages, punitive
damages, consequential damages, treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines, penalties, sanctions, and
interest incurred as a result of any claim or demand, or Remedial Action required, by any Governmental Authority or any third party, and which relate to any Environmental Action. 
 “Environmental Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities. 
 “Equipment” means equipment (as that term is defined in the Code). 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto. 
 “ERISA Affiliate” means (a) any Person subject to ERISA whose employees are treated as employed by the same employer as the
employees of Borrower or its Subsidiaries under IRC Section 414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the same employer as the employees of Borrower or its Subsidiaries under IRC
Section 414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any organization subject to ERISA that is a member of an affiliated service group of which Borrower or any of its Subsidiaries is a
member under IRC Section 414(m), or (d)

  

 — 6 — 

 
solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any Person subject to ERISA that is a party to an arrangement with Borrower
or any of its Subsidiaries and whose employees are aggregated with the employees of Borrower or its Subsidiaries under IRC Section 414(o). 
 “Event of Default” has the meaning specified therefor in Section 8. 
 “Excess
Availability” means, as of any date of determination, the amount equal to Availability minus the aggregate amount, if any, of all trade payables of Borrower and its Subsidiaries aged in excess of historical levels with respect thereto and
all book overdrafts of Borrower and its Subsidiaries in excess of historical practices with respect thereto, in each case as determined by Agent in its Permitted Discretion. 
 “Exchange Act” means the Securities Exchange Act of 1934, as in effect from time to time. 
 “Fee Letter” means that certain fee letter between Borrower and Agent, in form and substance reasonably satisfactory to Agent.

 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal to, for each day during such
period, the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by Agent from three Federal funds brokers of recognized standing selected by it. 
 “Foreign Lender” shall mean any Lender or Participant that is not a United States person within the meaning of IRC section 7701(a)(30).

 “Foreign Subsidiary” means a direct or indirect Subsidiary of Borrower that was formed and exists under the laws of a
jurisdiction other than one of the States of the United States or the District of Columbia. 
 “Funded Indebtedness” means,
as of any date of determination, all Indebtedness for borrowed money or letters of credit of Borrower, determined on a consolidated basis in accordance with GAAP, that by its terms matures more than one year after the date of calculation, and any
such Indebtedness maturing within one year from such date that is renewable or extendable at the option of Borrower or its Subsidiaries, as applicable, to a date more than one year from such date, including, in any event, but without duplication,
with respect to Borrower and its Subsidiaries, the Revolver Usage and the amount of their Capital Lease Obligations. 
 “Funding
Date” means the date on which a Borrowing occurs. 
 “Funding Losses” has the meaning specified therefor in
Section 2.12(b)(ii). 
 “GAAP” means generally accepted accounting principles as in effect from time to time in
the United States, consistently applied. 
 “Governing Documents” means, with respect to any Person, the certificate or
articles of incorporation, by-laws, or other organizational documents of such Person. 
 “Governmental Authority” means any
federal, state, local, or other governmental or administrative body, instrumentality, board, department, or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar dispute-resolving panel or body.

  

 — 7 — 

 “Guarantors” means (a) Information Management Research, Inc., a Colorado
corporation, Captaris International, Inc., a Washington corporation, and Castelle, a California corporation, and (b) and any other Person that becomes a Guarantor after the Closing Date pursuant to Section 5.11; and
“Guarantor” means any one of them. 
 “Guaranty” means that certain general continuing guaranty executed
and delivered by each Guarantor in favor of Agent, for the benefit of the Lender Group and the Bank Product Providers, in form and substance reasonably satisfactory to Agent. 
 “Hazardous Materials” means (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws
or regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,” or any other formulation intended to define, list, or classify substances by reason of deleterious
properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids,
produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances or explosives or any radioactive materials, and (d) asbestos in
any form or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million. 
 “Hedge Agreement” means any and all agreements or documents now existing or hereafter entered into by Borrower or any of its Subsidiaries that provide for an interest rate, credit, commodity or equity
swap, cap, floor, collar, forward foreign exchange transaction, currency swap, cross currency rate swap, currency option, or any combination of, or option with respect to, these or similar transactions, for the purpose of hedging Borrower’s or
any of its Subsidiaries’ exposure to fluctuations in interest or exchange rates, loan, credit exchange, security, or currency valuations or commodity prices. 
 “Holdout Lender” has the meaning specified therefor in Section 14.2(a). 
 “Inactive Subsidiaries” means MediaTel Corporation, a Delaware corporation, Raven Acquisition Corp., a Washington corporation, Castelle International, a Delaware corporation, and Castelle Inc., a Delaware corporation, and,
subject to the written approval of Agent, any other Subsidiary of Borrower that does not own or lease any assets, has no business operations, and has no sources of revenue. 
 “Increase Effective Date” has the meaning specified therefor in Section 2.2(a). 
 “Increase Joinder” has the meaning specified therefor in Section 2.2(c). 
 “Indebtedness” means (a) all obligations for borrowed money, (b) all obligations evidenced by bonds, debentures, notes, or
other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, or other financial products, (c) all obligations as a lessee under Capital Leases, (d) all obligations or
liabilities of others secured by a Lien on any asset of a Person or its Subsidiaries, irrespective of whether such obligation or liability is assumed, (e) all obligations to pay the deferred purchase price of assets (other than trade payables
incurred in the ordinary course of business and repayable in accordance with customary trade practices), (f) all obligations owing under Hedge Agreements (which amount shall be calculated based on the amount that would be payable by such Person
if the Hedge Agreement were terminated on the date of determination), and (g) any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation
of any other Person that constitutes Indebtedness under any of clauses (a) through (f) above. For purposes of this definition, (i) the amount of any Indebtedness represented by a guaranty or other similar instrument shall be the
lesser of the principal amount of the obligations guaranteed and still outstanding and the maximum amount for which the guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Indebtedness, and (ii) the amount
of any Indebtedness described in clause (d) above shall be shall be the lower of the amount of the obligation and the fair market value of the assets securing such obligation. 
  

 — 8 — 

 “Indemnified Liabilities” has the meaning specified therefor in
Section 10.3. 
 “Indemnified Person” has the meaning specified therefor in Section 10.3.

 “Insolvency Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy
Code or under any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or
other similar relief. 
 “Intercompany Subordination Agreement” means a subordination agreement executed and delivered by
Borrower, each of its Subsidiaries, and Agent, the form and substance of which is reasonably satisfactory to Agent. 
 “Interest
Expense” means, for any period, the aggregate of the interest expense of Borrower for such period, determined on a consolidated basis in accordance with GAAP. 
 “Interest Period” means, with respect to each LIBOR Rate Loan, a period commencing on the date of the making of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the conversion of a
Base Rate Loan to a LIBOR Rate Loan) and ending 1, 2, or 3 months thereafter; provided, however, that (a) if any Interest Period would end on a day that is not a Business Day, such Interest Period shall be extended (subject to clauses
(c)-(e) below) to the next succeeding Business Day, (b) interest shall accrue at the applicable rate based upon the LIBOR Rate from and including the first day of each Interest Period to, but excluding, the day on which any Interest Period
expires, (c) any Interest Period that would end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on
the next preceding Business Day, (d) with respect to an Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest
Period), the Interest Period shall end on the last Business Day of the calendar month that is 1, 2, or 3 months after the date on which the Interest Period began, as applicable, and (e) Borrower may not elect an Interest Period which will end
after the Maturity Date. 
 “Inventory” means inventory (as that term is defined in the Code). 
 “Investment” means, with respect to any Person, any investment by such Person in any other Person (including Affiliates) in the form of
loans, guarantees, advances, capital contributions (excluding (a) commission, travel, and similar advances to officers and employees of such Person made in the ordinary course of business, and (b) bona fide Accounts arising in the ordinary
course of business consistent with past practice), or acquisitions of Indebtedness, Stock, or all or substantially all of the assets of such other Person (or of any division or business line of such other Person), and any other items that are or
would be classified as investments on a balance sheet prepared in accordance with GAAP. 
 “IRC” means the Internal Revenue
Code of 1986, as in effect from time to time. 
 “Issuing Lender” means WFF or any other Lender that, at the request of
Borrower and with the consent of Agent, agrees, in such Lender’s sole discretion, to become an Issuing Lender for the purpose of issuing L/Cs or L/C Undertakings pursuant to Section 2.11. 
 “L/C” has the meaning specified therefor in Section 2.11(a). 
  

 — 9 — 

 “L/C Disbursement” means a payment made by the Issuing Lender pursuant to a Letter of
Credit. 
 “L/C Undertaking” has the meaning specified therefor in Section 2.11(a). 
 “Lender” and “Lenders” have the respective meanings set forth in the preamble to the Agreement, and shall include any
other Person made a party to the Agreement in accordance with the provisions of Section 13.1. 
 “Lender Group” means,
individually and collectively, each of the Lenders (including the Issuing Lender) and Agent. 
 “Lender Group Expenses”
means all (a) costs or expenses (including taxes, and insurance premiums) required to be paid by Borrower or its Subsidiaries under any of the Loan Documents that are paid, advanced, or incurred by the Lender Group, (b) out-of-pocket fees
or charges paid or incurred by Agent in connection with the Lender Group’s transactions with Borrower or its Subsidiaries under any of the Loan Documents, including, fees or charges for photocopying, notarization, couriers and messengers,
telecommunication, public record searches (including tax lien, litigation, and UCC searches and including searches with the patent and trademark office, the copyright office, or the department of motor vehicles), filing, recording, publication,
appraisal (including periodic collateral appraisals or business valuations to the extent of the fees and charges (and up to the amount of any limitation) contained in the Agreement or the Fee Letter), real estate surveys, real estate title policies
and endorsements, and environmental audits, (c) out-of-pocket costs and expenses incurred by Agent in the disbursement of funds to Borrowers or other members of the Lender Group (by wire transfer or otherwise), (d) out-of-pocket charges
paid or incurred by Agent resulting from the dishonor of checks payable by or to any Loan Party, (e) reasonable out-of-pocket costs and expenses paid or incurred by the Lender Group to correct any default or enforce any provision of the Loan
Documents, or during the continuance of an Event of Default, in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of
whether a sale is consummated, (f) reasonable out-of-pocket audit fees and expenses (including travel, meals, and lodging) of Agent related to any inspections or audits to the extent of the fees and charges (and up to the amount of any
limitation) contained in the Agreement or the Fee Letter, (g) reasonable out-of-pocket costs and expenses of third party claims or any other suit paid or incurred by the Lender Group in enforcing or defending the Loan Documents or in connection
with the transactions contemplated by the Loan Documents or the Lender Group’s relationship with Borrower or any of its Subsidiaries, (h) Agent’s reasonable costs and expenses (including reasonable attorneys fees) incurred in
advising, structuring, drafting, reviewing, administering (including travel, meals, and lodging), syndicating, or amending the Loan Documents, and (i) Agent’s and each Lender’s reasonable costs and expenses (including reasonable
attorneys, accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing (including attorneys, accountants, consultants, and other advisors fees and expenses incurred in connection with a “workout,” a
“restructuring,” or an Insolvency Proceeding concerning Borrower or any of its Subsidiaries or in exercising rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether suit is brought, or in
taking any Remedial Action concerning the Collateral. 
 “Lender-Related Person” means, with respect to any Lender, such
Lender, together with such Lender’s Affiliates, officers, directors, employees, attorneys, and agents. 
 “Letter of
Credit” means an L/C or an L/C Undertaking, as the context requires. 
 “Letter of Credit Collateralization” means
either (a) providing cash collateral (pursuant to documentation reasonably satisfactory to Agent, including provisions that specify that the Letter of Credit fee set forth in the Agreement will continue to accrue while the Letters of Credit are
outstanding) to be held by Agent for the benefit of those Lenders with a Revolver Commitment in an amount equal to 105% of the then existing Letter of Credit Usage, (ii) causing the Underlying Letters of Credit to be returned to the Issuing

  

 — 10 — 

 
Lender, or (iii) providing Agent with a standby letter of credit, in form and substance reasonably satisfactory to Agent, from a commercial bank
acceptable to the Agent (in its sole discretion) in an equal to 105% of the then existing Letter of Credit Usage (it being understood that the Letter of Credit fee set forth in the Agreement will continue to accrue while the Letters of Credit are
outstanding and that any such fee that accrues must be an amount that can be drawn under any such standby letter of credit). 
 “Letter of Credit Usage” means, as of any date of determination, the aggregate undrawn amount of all outstanding Letters of Credit. 
 “LIBOR Deadline” has the meaning specified therefor in Section 2.12(b)(i). 
 “LIBOR Notice” means a written notice in the form of Exhibit L-1. 
 “LIBOR Option” has the
meaning specified therefor in Section 2.12(a). 
 “LIBOR Rate” means, for each Interest Period for each LIBOR
Rate Loan, the rate per annum determined by Agent by dividing (a) the Base LIBOR Rate for such Interest Period, by (b) 100% minus the Reserve Percentage. The LIBOR Rate shall be adjusted on and as of the effective day of any change in the
Reserve Percentage. 
 “LIBOR Rate Loan” means each portion of an Advance that bears interest at a rate determined by
reference to the LIBOR Rate. 
 “LIBOR Rate Margin” means, calculated as of the first day of each month (with
respect to any portion of the outstanding Advances on such date that is a LIBOR Rate Loan), the applicable margin set forth in the following table that corresponds to the level of the average Daily Balance of Revolver Usage during the month most
recently ended: 
  

					
	 Level
	  	 Average Daily Balance of Revolver
Usage during
Month
	  	 LIBOR Rate Margin

	I	  	 If the average Daily Balance of Revolver Usage is less than $7,500,000
	  	2.50 percentage points
	II	  	 If the average Daily Balance of Revolver Usage is greater than or equal to $7,500,000
	  	2.75 percentage points

 “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment,
charge, deposit arrangement, encumbrance, easement, lien (statutory or other), security interest, or other security arrangement and any other preference, priority, or preferential arrangement of any kind or nature whatsoever, including any
conditional sale contract or other title retention agreement, the interest of a lessor under a Capital Lease and any synthetic or other financing lease having substantially the same economic effect as any of the foregoing. 
 “Loan Account” has the meaning specified therefor in Section 2.9. 
 “Loan Documents” means the Agreement, the Bank Product Agreements, the Control Agreements, the Copyright Security Agreement, any Credit
Amount Certificate, the Fee Letter, the Guaranty, the Intercompany Subordination Agreement, the Letters of Credit, the Mortgages, the Patent Security Agreement, the Security Agreement, the Source Code Escrow Agreement, the Trademark Security
Agreement, any note or notes executed by Borrower in connection with the Agreement and payable to a member of the Lender Group, and any other agreement entered into, now or in the future, by Borrower or any of its Subsidiaries and the Lender Group
in connection with the Agreement. 
  

 — 11 — 

 “Loan Party” means Borrower or any Guarantor. 
 “Maintenance Fee Revenues” means, with respect to any period, all maintenance fee revenues attributable to Borrower’s RightFax
business and its related suite of products earned during such period, calculated on a basis consistent with the financial statements delivered to Agent prior to the Closing Date. 
 “Margin Stock” as defined in Regulation U of the Board of Governors of the Federal Reserve System as in effect from time to time.

 “Material Adverse Change” means (a) a material adverse change in the business, prospects, operations, results of
operations, assets, liabilities or condition (financial or otherwise) of Borrower and its Subsidiaries, taken as a whole, (b) a material impairment of the Loan Parties’ ability to perform their obligations under the Loan Documents to which
they are parties or of the Lender Group’s ability to enforce the Obligations or realize upon the Collateral, or (c) a material impairment of the enforceability or priority of the Agent’s Liens with respect to the Collateral as a
result of an action or failure to act on the part of Borrower or its Subsidiaries. 
 “Material Contract” means each
contract or agreement to which any Loan Party is a party (a) which either (i) by its terms involves aggregate consideration payable to or by such Loan Party of $5,000,000 or more in any 12 month period, (ii) has been in place for not
less than 3 months and, based on the consideration paid or payable to the date of determination, is reasonably expected to involve aggregate consideration payable to or by such Loan Party of $5,000,000 in any 12 month period (for purposes of this
definition, projected consideration for contracts that have been in place for less than 12 months shall annualize the consideration received since inception) or more, or (iii) has generated, or is projected to generate, 2.5% or more of the
Borrower’s consolidated revenue for any particular fiscal year; or (b) which is required to be filed as an exhibit to any report of Borrower filed pursuant to the Exchange Act of the type described in Item 601(b)(10) of Regulation S-K
promulgated by the SEC; provided that none of the Loan Documents shall be a Material Contract. 
 “Maturity Date” has
the meaning specified therefor in Section 3.3. 
 “Maximum Revolver Amount” means $10,000,000, as such amount
may be increased in accordance with Section 2.2. 
 “Moody’s” has the meaning specified therefor in the
definition of Cash Equivalents. 
 “Mortgages” means, individually and collectively, one or more mortgages, deeds of trust,
or deeds to secure debt, executed and delivered by Borrower or its Subsidiaries in favor of Agent, in form and substance reasonably satisfactory to Agent, that encumber the Real Property Collateral. 
 “Obligations” means (a) all loans, Advances, debts, principal, interest (including any interest that accrues after the commencement
of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), contingent reimbursement obligations with respect to outstanding Letters of Credit, premiums, liabilities
(including all amounts charged to the Loan Account pursuant to the Agreement), obligations (including indemnification obligations), fees (including the fees provided for in the Fee Letter), Lender Group Expenses (including any fees or expenses that
accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), guaranties, covenants, and duties of any kind and description owing by Borrower
to the Lender Group pursuant to or evidenced by the Loan Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to 

  

 — 12 — 

 
become due, now existing or hereafter arising, and including all interest not paid when due and all other expenses or other amounts that Borrower is required
to pay or reimburse by the Loan Documents or by law or otherwise in connection with the Loan Documents, and (b) all Bank Product Obligations. Any reference in the Agreement or in the Loan Documents to the Obligations shall include all or any
portion thereof and any extensions, modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding. 
 “ODT Stock Acquisition Agreement” means that certain Stock Purchase Agreement, dated as of December 21, 2007, among Borrower, Captaris Verwaltungs GmbH (formerly Blitz 07-751 GmbH), a wholly owned subsidiary of
Borrower, and Océ Deutschland Holding GmbH & Co. KG, for the purchase of the outstanding capital stock of its wholly owned subsidiary Océ Document Technologies GmbH, a limited liability company organized under the laws of
Germany. 
 “ODT Asset Acquisition Agreement” means that certain Stock Purchase Agreement, dated as of December 21,
2007, among Borrower and Océ Deutschland Holding GmbH & Co. KG, for the purchase of certain assets held by its wholly owned subsidiary of Océ North America, Inc., a Delaware corporation. 
 “ODT Acquisition” means the Acquisition by Captaris Verwaltungs GmbH (formerly Blitz 07-751 GmbH) and Borrower of all of the Stock of
Océ Document Technologies GmbH and certain assets of Océ North America, Inc. pursuant to the ODT Acquisition Documents. 
 “ODT Acquisition Documents” means the ODT Stock Acquisition Agreement, the ODT Asset Acquisition Agreement, and all other documents related thereto and executed in connection therewith. 
 “OFAC” means The Office of Foreign Assets Control of the U.S. Department of the Treasury. 
 “Originating Lender” has the meaning specified therefor in Section 13.1(e). 
 “Overadvance” has the meaning specified therefor in Section 2.5. 
 “Participant” has the meaning specified therefor in Section 13.1(e). 
 “Patent Security Agreement” has the meaning specified therefor in the Security Agreement. 
 “Patriot Act” has the meaning specified therefor in Section 4.18. 
 “Payoff Date” means the first date on which all of the Obligations are paid in full and the Commitments of the Lenders are terminated.

 “Permitted Acquisition” means a Permitted Domestic Acquisition or a Permitted Foreign Acquisition. 
 “Permitted Domestic Acquisition” means any Acquisition so long as: 
 (a) no Default or Event of Default shall have occurred and be continuing or would result from the consummation of the proposed Acquisition
and the proposed Acquisition is consensual, 
 (b) no Indebtedness will be incurred, assumed, or would exist with respect to
Borrower or its Subsidiaries as a result of such Acquisition, other than Indebtedness permitted under clauses (f) or (g) of the definition of Permitted Indebtedness and no Liens will be incurred, assumed, or would exist with respect to the
assets of Borrower or its Subsidiaries as a result or such Acquisition other than Permitted Liens, 
  

 — 13 — 

 (c) Borrower has provided Agent with written confirmation, supported by reasonably
detailed calculations, that on a pro forma basis (including pro forma adjustments arising out of events which are directly attributable to such proposed Acquisition, are factually supportable, and are expected to have a continuing impact, in each
case, determined as if the combination had been accomplished at the beginning of the relevant period; such eliminations and inclusions to be determined on a basis consistent with Article 11 of Regulation S X promulgated under the Securities Act and
as interpreted by the staff of the SEC and to be reasonably acceptable to Agent) created by adding the historical combined financial statements of Borrower (including the combined financial statements of any other Person or assets that were the
subject of a prior Permitted Acquisition during the relevant period) to the historical consolidated financial statements of the Person to be acquired (or the historical financial statements related to the assets to be acquired) pursuant to the
proposed Acquisition, Borrower and its Subsidiaries (i) would have been in compliance with the financial covenants in Section 7 for the 4 fiscal quarter period ended immediately prior to the proposed date of consummation of such
proposed Acquisition, and (ii) are projected to be in compliance with the financial covenants in Section 7 for the 4 fiscal quarter period ended one year after the proposed date of consummation of such proposed Acquisition, 
 (d) Borrower has provided Agent with its due diligence package relative to the proposed Acquisition, including forecasted balance sheets,
profit and loss statements, and cash flow statements of the Person to be acquired, all prepared on a basis consistent with such Person’s historical financial statements, together with appropriate supporting details and a statement of underlying
assumptions for the 1 year period following the date of the proposed Acquisition, on a quarter by quarter basis), in form and substance (including as to scope and underlying assumptions) reasonably satisfactory to Agent, 
 (e) Borrower shall have Availability plus Qualified Cash in an amount equal to or greater than $5,000,000 immediately after giving effect
to the consummation of the proposed Acquisition, 
 (f) Borrower has provided Agent with written notice of the proposed
Acquisition at least 15 Business Days prior to the anticipated closing date of the proposed Acquisition and, not later than 5 Business Days prior to the anticipated closing date of the proposed Acquisition, copies of the acquisition agreement and
other material documents relative to the proposed Acquisition, which agreement and documents must be reasonably acceptable to Agent, 
 (g) the assets being acquired (other than a de minimis amount of assets in relation to Borrower’s and its Subsidiaries’ total assets), or the Person whose Stock is being acquired, are useful in or engaged in, as applicable, the
business of Borrower and its Subsidiaries or a business reasonably related thereto, 
 (h) the assets being acquired (other
than a de minimis amount of assets in relation to the assets being acquired) are located within the United States or the Person whose Stock is being acquired is organized in a jurisdiction located within the United States, 
 (i) the subject assets or Stock, as applicable, are being acquired directly by a Loan Party, and, in connection therewith, the applicable
Loan Party shall have complied with Section 5.11 or 5.12, as applicable, and 
 (j) the purchase
consideration payable in respect of all Permitted Domestic Acquisitions (including the proposed Acquisition and including deferred payment obligations) shall not exceed $20,000,000 in the aggregate; provided, however, that the purchase
consideration payable in respect of Permitted Domestic Acquisitions during any single fiscal year of Borrower (including the proposed Acquisition and including deferred payment obligations) shall not exceed $10,000,000 in the aggregate. 

“Permitted Discretion” means a determination made in the exercise of reasonable (from the perspective of a secured lender) business
judgment. 
  

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 “Permitted Dispositions” means: 
 (a) sales, abandonment, or other dispositions of Equipment that is substantially worn, damaged, or obsolete in the ordinary course of
business, 
 (b) sales of Inventory to buyers in the ordinary course of business, 
 (c) the use or transfer of money or Cash Equivalents in a manner that is not prohibited by the terms of the Agreement or the other Loan
Documents, 
 (d) the licensing, on a non-exclusive basis, of patents, trademarks, copyrights, and other intellectual property
rights in the ordinary course of business, 
 (e) the granting of Permitted Liens, 
 (f) the sale or discount, in each case without recourse, of Accounts arising in the ordinary course of business, but only in connection
with the compromise or collection thereof, 
 (g) any involuntary loss, damage or destruction of property, 
 (h) any involuntary condemnation, seizure or taking, by exercise of the power of eminent domain or otherwise, or confiscation or
requisition of use of property, 
 (i) the leasing or subleasing of assets of Borrower or its Subsidiaries in the ordinary
course of business, 
 (j) the sale or issuance of Stock (other than Prohibited Preferred Stock) of Borrower, 
 (k) the lapse of registered patents, trademarks and other intellectual property of Borrower and its Subsidiaries to the extent not
economically desirable in the conduct of their business, 
 (l) dispositions of assets acquired by Borrower and its
Subsidiaries pursuant to a Permitted Acquisition consummated within 12 months before the date of the proposed Disposition (the “Subject Permitted Acquisition”) so long as (i) the consideration received for the assets to be so
disposed is at least equal to the fair market value thereof, (ii) the assets to be so disposed are not necessary or economically desirable in connection with the business of Borrower and its Subsidiaries, and (iii) the assets to be so
disposed are readily identifiable as assets acquired pursuant to the Subject Permitted Acquisition, 
 (m) transfers
associated with the making of a Permitted Investment, and 
 (n) dispositions of assets (other than Accounts, intellectual
property, licenses, Stock of Subsidiaries of Borrower, or Material Contracts) not otherwise permitted in clauses (a) through (m) above so long as made at fair market value and the aggregate fair market value of all assets disposed of in
all such dispositions since the Closing Date (including the proposed disposition) would not exceed $250,000. 
 “Permitted Foreign
Acquisition” means any Acquisition so long as: 
 (a) it satisfies the terms of clauses (a), (b), (c), (d), (f), and
(g) of the defined term “Permitted Domestic Acquisition”, 
 (b) Borrower shall have Availability plus
Qualified Cash in an amount equal to or greater than $10,000,000 immediately after giving effect to the consummation of the proposed Acquisition, 
  

 — 15 — 

 (c) the assets being acquired (other than a de minimis amount of assets in relation to
the assets being acquired) are located outside of the United States or the Person whose Stock is being acquired is organized in a jurisdiction located outside of the United States, 
 (d) the subject assets or Stock, as applicable, are being acquired directly by Borrower or one of its wholly-owned Subsidiaries, and

 (j) the purchase consideration payable in respect of all Permitted Foreign Acquisitions (including the proposed Acquisition
and including deferred payment obligations) shall not exceed $10,000,000 in the aggregate; provided, however, that the purchase consideration payable in respect of Permitted Foreign Acquisitions during any single fiscal year of
Borrower (including the proposed Acquisition and including deferred payment obligations) shall not exceed $2,500,000 in the aggregate. 
 “Permitted Indebtedness” means: 
 (a) Indebtedness evidenced by this Agreement and the other Loan
Documents, together with Indebtedness owed to Underlying Issuers with respect to Underlying Letters of Credit, 
 (b)
Indebtedness set forth on Schedule 4.19 and any Refinancing Indebtedness in respect of such Indebtedness, 
 (c)
Permitted Purchase Money Indebtedness and any Refinancing Indebtedness in respect of such Indebtedness, 
 (d) endorsement of
instruments or other payment items for deposit, 
 (e) Indebtedness consisting of (i) unsecured guarantees incurred in
the ordinary course of business with respect to surety and appeal bonds, performance bonds, bid bonds, appeal bonds, completion guarantee and similar obligations; (ii) unsecured guarantees arising with respect to customary indemnification
obligations to purchasers in connection with Permitted Dispositions; and (iii) unsecured guarantees with respect to Indebtedness of Borrower or one of its Subsidiaries, to the extent that the Person that is obligated under such guaranty could
have incurred such underlying Indebtedness, 
 (f) unsecured Indebtedness of a Loan Party that is incurred on the date of the
consummation of a Permitted Acquisition solely for the purpose of consummating such Permitted Acquisition so long as (i) no Event of Default has occurred and is continuing or would result therefrom, (ii) such unsecured Indebtedness is not
incurred for working capital purposes, (iii) such unsecured Indebtedness does not mature prior to the date that is 12 months after the Maturity Date, (iv) such Indebtedness is subordinated in right of payment to the Obligations on terms
and conditions reasonably satisfactory to Agent, and (v) the only interest that accrues with respect to such Indebtedness is payable in kind, 
 (g) Acquired Indebtedness in an amount not to exceed $250,000 outstanding at any one time, 
 (h) Indebtedness incurred in the ordinary course of business under performance, surety, statutory, and appeal bonds, 
 (i) Indebtedness owed to any Person providing property, casualty, liability, or other insurance to Borrower or any of its Subsidiaries, so long as the amount of such Indebtedness is not in excess of the amount of the unpaid cost of, and
shall be incurred only to defer the cost of, such insurance for the year in which such Indebtedness is incurred and such Indebtedness is outstanding only during such year, 
  

 — 16 — 

 (j) the incurrence by Borrower or its Subsidiaries of Indebtedness under Hedging
Agreements that are incurred for the bona fide purpose of hedging the interest rate or foreign currency risk associated with Borrower’s and its Subsidiaries’ operations and not for speculative purposes, 
 (k) unsecured Indebtedness incurred in respect of netting services, overdraft protection, and other like services, in each case, incurred
in the ordinary course of business, 
 (l) unsecured Indebtedness of Borrower owing to former employees, officers, or
directors (or any spouses, ex-spouses, or estates of any of the foregoing) incurred in connection with the repurchase by Borrower of the Stock of Borrower that has been issued to such Persons, so long as (i) no Default or Event of Default has
occurred and is continuing or would result from the incurrence of such Indebtedness, (ii) the aggregate amount of all such Indebtedness outstanding at any one time does not exceed $1,000,000, and (iii) such Indebtedness is subordinated to
the Obligations on terms and conditions reasonably acceptable to Agent, 
 (n) contingent liabilities in respect of any
indemnification obligation, adjustment of purchase price, non-compete, or similar obligation of Borrower or the applicable Loan Party incurred in connection with the consummation of one or more Permitted Acquisitions, and 
 (o) Indebtedness composing Permitted Investments, 
 (p) Indebtedness of Borrower and its Foreign Subsidiaries incurred by entering into automobile leases (or guaranties thereof) for its
foreign employees in accordance with standard business practices in Europe so long as the aggregate amount of annual payments under such leases does not exceed $200,000 during any fiscal year of Borrower, 
 (q) other unsecured Indebtedness not to exceed $500,000 in the aggregate outstanding at any time. 
 “Permitted Intercompany Advances” means those loans set forth on Schedule P-3 and all other loans made after the Closing Date by
(a) a Loan Party to another Loan Party, (b) a non-Loan Party to another non-Loan Party, (c) a non-Loan Party to a Loan Party, so long as the parties thereto are party to the Intercompany Subordination Agreement, and (d) a Loan
Party to a non-Loan Party, other than the Inactive Subsidiaries, so long as (i) the amount of all such loans does not exceed $750,000 outstanding at any one time, (ii) no Event of Default has occurred and is continuing or would result
therefrom, and (iii) Borrower has Excess Availability plus Qualified Cash of $5,000,000 or greater immediately after giving effect to each such loan. 
 “Permitted Investments” means: 
 (a) Investments in cash and Cash
Equivalents, 
 (b) Investments in negotiable instruments deposited or to be deposited for collection in the ordinary course
of business, 
 (c) advances made in connection with purchases of goods or services in the ordinary course of business,

 (d) Investments received in settlement of amounts due to any Loan Party or any of its Subsidiaries effected in the ordinary
course of business or owing to any Loan Party or any of its Subsidiaries as a result of Insolvency Proceedings involving an Account Debtor or upon the foreclosure or enforcement of any Lien in favor of a Loan Party or its Subsidiaries, 

 

 — 17 — 

 (e) Investments owned by any Loan Party or any of its Subsidiaries on the Closing Date
and set forth on Schedule P-1, 
 (f) guarantees permitted under the definition of Permitted Indebtedness, 

(g) Permitted Intercompany Advances, 
 (h) Stock or other securities acquired in connection with the satisfaction or enforcement of Indebtedness or claims due or owing to a Loan Party or its Subsidiaries (in bankruptcy of customers or suppliers or
otherwise outside the ordinary course of business) or as security for any such Indebtedness or claims, 
 (i) deposits of cash
made in the ordinary course of business to secure performance of operating leases, 
 (j) non-cash loans to employees,
officers, and directors of Borrower or any of its Subsidiaries for the purpose of purchasing Stock in Borrower so long as the proceeds of such loans are used in their entirety to purchase such stock in Borrower, 
 (k) advances to employees, officers and directors of Borrower or any of its Subsidiaries for purposes other than described in clause
(j) above in an aggregate amount not to exceed $200,000 outstanding at any time, 
 (l) Permitted Domestic Acquisitions
and Permitted Foreign Acquisitions, 
 (m) the ODT Acquisition, and 
 (n) so long as no Event of Default has occurred and is continuing or would result therefrom, any other Investments in an aggregate amount
not to exceed $500,000 during the term of the Agreement. 
 “Permitted Liens” means 
 (a) Liens held by Agent to secure the Obligations, 
 (b) Liens for unpaid taxes, assessments, or other governmental charges or levies that either (i) are not yet delinquent, or
(ii) do not have priority over Agent’s Liens and the underlying taxes, assessments, or charges or levies are the subject of Permitted Protests, 
 (c) judgment Liens arising solely as a result of the existence of judgments, orders, or awards that do not constitute an Event of Default under Section 8.3, 
 (d) Liens set forth on Schedule P-2, provided that any such Lien only secures the Indebtedness that it secures on the Closing Date
and any Refinancing Indebtedness in respect thereof, 
 (e) the interests of lessors under operating leases and non-exclusive
licensors under license agreements, 
 (f) purchase money Liens or the interests of lessors under Capital Leases to the extent
that such Liens or interests secure Permitted Purchase Money Indebtedness and so long as (i) such Lien attaches only to the asset purchased or acquired and the proceeds thereof, and (ii) such Lien only secures the Indebtedness that was
incurred to acquire the asset purchased or acquired or any Refinancing Indebtedness in respect thereof, 
  

 — 18 — 

 (g) Liens arising by operation of law in favor of warehousemen, landlords, carriers,
mechanics, materialmen, laborers, or suppliers, incurred in the ordinary course of business and not in connection with the borrowing of money, and which Liens either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted
Protests, 
 (h) Liens on amounts deposited in connection with obtaining worker’s compensation or other unemployment
insurance, 
 (i) Liens on amounts deposited in connection with the making or entering into of bids, tenders, or leases in the
ordinary course of business and not in connection with the borrowing of money, 
 (j) Liens on amounts deposited as security
for surety or appeal bonds in connection with obtaining such bonds in the ordinary course of business, 
 (k) with respect to
any Real Property, easements, rights of way, and zoning restrictions that do not materially interfere with or impair the use or operation thereof, 
 (l) non-exclusive licenses of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business, 
 (m) Liens that are replacements of Permitted Liens to the extent that the original Indebtedness is the subject of permitted Refinancing
Indebtedness and so long as the replacement Liens only encumber those assets that secured the original Indebtedness, 
 (n)
rights of setoff or bankers’ liens upon deposits of cash in favor of banks or other depository institutions, solely to the extent incurred in connection with the maintenance of such deposit accounts in the ordinary course of business,

 (o) Liens granted in the ordinary course of business on the unearned portion of insurance premiums securing the financing
of insurance premiums to the extent the financing is permitted under the definition of Permitted Indebtedness, 
 (p) Liens in
favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods, 
 (q) Liens solely on any cash earnest money deposits made by Borrower or any of its Subsidiaries in connection with any letter of intent or purchase agreement with respect to a Permitted Acquisition, 
 (r) Liens assumed by Borrower or its Subsidiaries in connection with a Permitted Acquisition that secure Acquired Indebtedness, and

 (s) other Liens which do not secure Indebtedness for borrowed money or letters of credit and as to which the aggregate
amount of the obligations secured thereby does not exceed $250,000. 
 “Permitted Preferred Stock” means and refers to any
Preferred Stock issued by Borrower (and not by one or more of its Subsidiaries) that is not Prohibited Preferred Stock. 
 “Permitted
Protest” means the right of Borrower or any of its Subsidiaries to protest any Lien (other than any Lien that secures the Obligations), taxes (other than payroll taxes or taxes that are the subject of a United States federal tax lien), or
rental payment, provided that (a) a reserve with respect to such obligation is established on Borrower’s or its Subsidiaries’ books and records in such amount as is required under GAAP, (b) any such protest is instituted promptly
and prosecuted diligently by Borrower or its Subsidiary, as applicable, in good faith, and (c) Agent is satisfied that, while any such protest is pending, there will be no impairment of the enforceability, validity, or priority of any of the
Agent’s Liens. 
  

 — 19 — 

 “Permitted Purchase Money Indebtedness” means, as of any date of determination, Purchase
Money Indebtedness incurred after the Closing Date in an aggregate principal amount outstanding at any one time not in excess of $2,500,000. 
 “Person” means natural persons, corporations, limited liability companies, limited partnerships, general partnerships, limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other
organizations, irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof. 
 “Post-Increase Revolver Lenders” has the meaning specified therefor in Section 2.2(e). 
 “Preferred Stock” means, as applied to the Stock of any Person, the Stock of any class or classes (however designated) that is preferred with respect to the payment of dividends, or as to the distribution of assets upon any
voluntary or involuntary liquidation or dissolution of such Person, over shares of Stock of any other class of such Person. 
 “Pre-Increase Revolver Lenders” has the meaning specified therefor in Section 2.2(e). 
 “Prohibited Preferred Stock” means any Preferred Stock that by its terms is mandatorily redeemable or subject to any other payment obligation (including any obligation to pay dividends, other than dividends of shares of
Preferred Stock of the same class and series payable in kind or dividends of shares of common stock) on or before a date that is less than 1 year after the Maturity Date, or, on or before the date that is less than 1 year after the Maturity Date, is
redeemable at the option of the holder thereof for cash or assets or securities (other than distributions in kind of shares of Preferred Stock of the same class and series or of shares of common stock). 
 “Projections” means Borrower’s forecasted (a) balance sheets, (b) profit and loss statements, and (c) cash flow
statements, all prepared on a basis consistent with Borrower’s historical financial statements, together with appropriate supporting details and a statement of underlying assumptions. 
 “Pro Rata Share” means, as of any date of determination: 
 (a) with respect to a Lender’s obligation to make Advances and right to receive payments of principal, interest, fees, costs, and
expenses with respect thereto, (i) prior to the Revolver Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s Revolver Commitment, by (z) the aggregate Revolver Commitments of all
Lenders, and (ii) from and after the time that the Revolver Commitments have been terminated or reduced to zero, the percentage obtained by dividing (y) the outstanding principal amount of such Lender’s Advances by (z) the
outstanding principal amount of all Advances, 
 (b) with respect to a Lender’s obligation to participate in Letters of
Credit, to reimburse the Issuing Lender, and right to receive payments of fees with respect thereto, (i) prior to the Revolver Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s
Revolver Commitment, by (z) the aggregate Revolver Commitments of all Lenders, and (ii) from and after the time that the Revolver Commitments have been terminated or reduced to zero, the percentage obtained by dividing (y) the
outstanding principal amount of such Lender’s Advances by (z) the outstanding principal amount of all Advances, and 
  

 — 20 — 

 (c) with respect to all other matters as to a particular Lender (including the
indemnification obligations arising under Section 15.7), the percentage obtained by dividing (i) such Lender’s Revolver Commitment, by (ii) the aggregate amount of Revolver Commitments of all Lenders; provided, however,
that in the event the Revolver Commitments have been terminated or reduced to zero, Pro Rata Share under this clause shall be the percentage obtained by dividing (A) the outstanding principal amount of such Lender’s Advances plus such
Lender’s ratable portion of the Risk Participation Liability with respect to outstanding Letters of Credit by (B) the outstanding principal amount of all Advances plus the aggregate amount of the Risk Participation Liability with respect
to outstanding Letters of Credit. 
 “Protective Advances” has the meaning specified therefor in
Section 2.3(d)(i). 
 “Purchase Money Indebtedness” means Indebtedness (other than the Obligations, but
including Capitalized Lease Obligations), incurred at the time of, or within 20 days after, the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof. 
 “Qualified Cash” means, as of any date of determination, the amount of unrestricted cash and Cash Equivalents of Borrower and its
Subsidiaries that is in Deposit Accounts or in Securities Accounts, or any combination thereof, and which such Deposit Account or Securities Account is the subject of a Control Agreement and is maintained by a branch office of the bank or securities
intermediary located within the United States. 
 “Real Property” means any estates or interests in real property now owned
or hereafter acquired by Borrower or its Subsidiaries and the improvements thereto. 
 “Real Property Collateral” means the
Real Property identified on Schedule R-1 and any Real Property hereafter acquired by Borrower or its Subsidiaries. 
 “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. 
 “Refinancing Indebtedness” means refinancings, renewals, or extensions of Indebtedness so long as: 
 (a) the terms and conditions of such refinancings, renewals, or extensions do not, in Agent’s reasonable judgment, materially impair
the prospects of repayment of the Obligations by Borrower or materially impair Borrower’s creditworthiness, 
 (b) such
refinancings, renewals, or extensions do not result in an increase in the principal amount of the Indebtedness so refinanced, renewed, or extended, 
 (c) such refinancings, renewals, or extensions do not result in an increase in the interest rate with respect to the Indebtedness so refinanced, renewed, or extended, 
 (d) such refinancings, renewals, or extensions do not result in a shortening of the average weighted maturity of the Indebtedness so
refinanced, renewed, or extended, nor are they on terms or conditions that, taken as a whole, are materially more burdensome or restrictive to Borrower, 
 (e) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension must include
subordination terms and conditions that are at least as favorable to the Lender Group as those that were applicable to the refinanced, renewed, or extended Indebtedness, and 
 (f) the Indebtedness that is refinanced, renewed, or extended is not recourse to any Person that is liable on account of the Obligations
other than those Persons which were obligated with respect to the Indebtedness that was refinanced, renewed, or extended. 
  

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 “Related Fund” means, with respect to any Lender that is an investment fund, any other
investment fund that invests in commercial loans and that is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor. 
 “Remedial Action” means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any
way address Hazardous Materials in the indoor or outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or welfare or the
indoor or outdoor environment, (c) restore or reclaim natural resources or the environment, (d) perform any pre-remedial studies, investigations, or post-remedial operation and maintenance activities, or (e) conduct any other actions
with respect to Hazardous Materials authorized by Environmental Laws. 
 “Replacement Lender” has the meaning specified
therefor in Section 2.13(b). 
 “Report” has the meaning specified therefor in Section 15.16.

 “Required Availability” means that the sum of (a) Excess Availability, plus (b) Qualified Cash exceeds
$7,000,000. 
 “Required Lenders” means, at any time, Lenders whose aggregate Pro Rata Shares (calculated under clause
(c) of the definition of Pro Rata Shares) exceed 50%; provided, however, that at any time there are 2 or more Lenders, “Required Lenders” must include at least 2 Lenders. 
 “Required Library” means, as of any date of determination, the copyrights of the Loan Parties that are based on or derived from those
computer software programs or other technology of the Loan Parties that at the time account for not less than 90% of the total amount of the net product and subscription revenues of the Loan Parties for the immediately preceding fiscal quarter of
Borrower. 
 “Reserve Percentage” means, on any day, for any Lender, the maximum percentage prescribed by the Board of
Governors of the Federal Reserve System (or any successor Governmental Authority) for determining the reserve requirements (including any basic, supplemental, marginal, or emergency reserves) that are in effect on such date with respect to
eurocurrency funding (currently referred to as “eurocurrency liabilities”) of that Lender, but so long as such Lender is not required or directed under applicable regulations to maintain such reserves, the Reserve Percentage shall be zero.

 “Revolver Commitment” means, with respect to each Lender, its Revolver Commitment, and, with respect to all Lenders,
their Revolver Commitments, in each case as such Dollar amounts are set forth beside such Lender’s name under the applicable heading on Schedule C-1 or in the Assignment and Acceptance pursuant to which such Lender became a Lender
hereunder, as such amounts may be reduced or increased from time to time pursuant to assignments made in accordance with the provisions of Section 13.1. 
 “Revolver Usage” means, as of any date of determination, the sum of (a) the amount of outstanding Advances, plus (b) the amount of the Letter of Credit Usage. 
 “Risk Participation Liability” means, as to each Letter of Credit, all reimbursement obligations of Borrower to the Issuing Lender with
respect to an L/C Undertaking, consisting of (a) the amount available to be drawn or which may become available to be drawn, (b) all amounts that have been paid by the Issuing Lender to the Underlying Issuer to the extent not reimbursed by
Borrower, whether by the making of an Advance or otherwise, and (c) all accrued and unpaid interest, fees, and expenses payable with respect thereto. 
 “Sanctioned Entity” means (a) a country or a government of a country, (b) an agency of the government of a country, (c) an organization directly or indirectly controlled by a country or
its government, (d) a Person resident in or determined to be resident in a country, in each case, that is subject to a country sanctions program administered and enforced by OFAC. 
  

 — 22 — 

 “Sanctioned Person” means a person named on the list of Specially Designated Nationals
maintained by OFAC. 
 “SEC” means the United States Securities and Exchange Commission and any successor thereto.

 “Securities Account” means a securities account (as that term is defined in the Code). 
 “Securities Act” means the Securities Act of 1933, as amended from time to time, and any successor statute. 
 “Security Agreement” means a security agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by
Borrower and Guarantors to Agent. 
 “Settlement” has the meaning specified therefor in Section 2.3(e)(i).

 “Settlement Date” has the meaning specified therefor in Section 2.3(e)(i). 
 “Solvent” means, with respect to any Person on a particular date, that, at fair valuations, the sum of such Person’s assets is
greater than all of such Person’s debts. 
 “Source Code Escrow Agreement” means that certain Source Code Escrow
Agreement, in form and substance reasonably satisfactory to Agent, among Agent, the Loan Parties and an escrow agent reasonably satisfactory to Agent. 
 “S&P” has the meaning specified therefor in the definition of Cash Equivalents. 
 “Stock” means all shares, options, warrants, interests, participations, or other equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock, or any
other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act). 
 “Subsidiary” of a Person means a corporation, partnership, limited liability company, or other entity in which that Person directly or indirectly owns or controls the shares of Stock having ordinary
voting power to elect a majority of the board of directors (or appoint other comparable managers) of such corporation, partnership, limited liability company, or other entity. 
 “Swing Lender” means WFF or any other Lender that, at the request of Borrower and with the consent of Agent agrees, in such
Lender’s sole discretion, to become the Swing Lender under Section 2.3(b). 
 “Swing Loan” has the meaning
specified therefor in Section 2.3(b). 
 “Taxes” shall mean, any taxes, levies, imposts, duties, fees,
assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein with respect to such payments and all interest, penalties or similar liabilities with
respect thereto; provided that Taxes shall exclude (i) any tax imposed on the net income or net profits of any Lender or any Participant (including any branch profits taxes), in each case imposed by the jurisdiction (or by any political
subdivision or taxing authority thereof) in which such Lender or such Participant is organized or the jurisdiction (or by any political subdivision or taxing authority thereof) in which such Lender’s or such 

  

 — 23 — 

 
Participant’s principal office is located in each case as a result of a present or former connection between such Lender or such Participant and the
jurisdiction or taxing authority imposing the tax (other than any such connection arising solely from such Lender or such Participant having executed, delivered or performed its obligations or received payment under, or enforced its rights or
remedies under the Agreement or any other Loan Document); (ii) taxes resulting from a Lender’s or a Participant’s failure to comply with the requirements of Section 16(c) or (d), and (iii) any United States
federal withholding taxes that would be imposed on amounts payable to a Foreign Lender based upon the applicable withholding rate in effect at the time such Foreign Lender becomes a party to the Agreement (or designates a new lending office), except
that Taxes shall include (A) any amount that such Foreign Lender (or its assignor, if any) was previously entitled to receive pursuant to Section 16(a), if any, with respect to such withholding tax at the time such Foreign Lender
becomes a party to this Agreement (or designates a new lending office), and (B) additional United States federal withholding taxes that may be imposed after the time such Foreign Lender becomes a party to the Agreement (or designates a new
lending office), as a result of a change in law, rule, regulation, order or other decision with respect to any of the foregoing by any Governmental Authority. 
 “Total Commitment” means, with respect to each Lender, its Total Commitment, and, with respect to all Lenders, their Total Commitments, in each case as such Dollar amounts are set forth beside such
Lender’s name under the applicable heading on Schedule C-1 attached hereto or on the signature page of the Assignment and Acceptance pursuant to which such Lender became a Lender hereunder, as such amounts may be reduced or increased
from time to time pursuant to assignments made in accordance with the provisions of Section 13.1. 
 “Trademark Security
Agreement” has the meaning specified therefor in the Security Agreement. 
 “TTM Maintenance Fee Revenues” means,
as of any date of determination, Maintenance Fee Revenues for the 12 month period most recently ended. 
 “Underlying
Issuer” means a third Person which is the beneficiary of an L/C Undertaking and which has issued a letter of credit at the request of the Issuing Lender for the benefit of Borrower. 
 “Underlying Letter of Credit” means a letter of credit that has been issued by an Underlying Issuer. 
 “United States” means the United States of America. 
 “Voidable Transfer” has the meaning specified therefor in Section 17.8. 
 “Wells Fargo” means Wells Fargo Bank, National Association, a national banking association. 
 “WFF” means Wells Fargo Foothill, LLC, a Delaware limited liability company. 
  

 — 24 — 

 Schedule 3.1 
 The obligation of each Lender to make its initial extension of credit provided for in the Agreement is subject to the fulfillment, to the satisfaction of each Lender (the making of such initial extension of credit by
any Lender being conclusively deemed to be its satisfaction or waiver of the following), of each of the following conditions precedent: 
 (a) the Closing Date shall occur on or before January 31, 2008; 
 (b) Agent shall have
received an agreement duly executed by Borrower authorizing Agent to file appropriate financing statements in such office or offices as may be necessary or, in the opinion of Agent, desirable to perfect the security interests to be created by the
Loan Documents; 
 (c) Agent shall have received evidence that appropriate financing statements have been duly filed in such
office or offices as may be necessary or, in the opinion of Agent, desirable to perfect the Agent’s Liens in and to the Collateral, and Agent shall have received searches reflecting the filing of all such financing statements; 
 (d) Agent shall have received each of the following documents, in form and substance satisfactory to Agent, duly executed, and each such
document shall be in full force and effect: 
 (i) the Control Agreements, 
 (ii) the Security Agreement, together with stock certificates and undated stock powers executed in blank representing 100% of the
outstanding stock of each of Borrower’s Domestic Subsidiaries, 
 (iii) a Trademark Security Agreement, 
 (iv) a Patent Security Agreement, 
 (v) a Copyright Security Agreement, 
 (vi) a disbursement letter executed and delivered by
Borrower to Agent regarding the extensions of credit to be made on the Closing Date, the form and substance of which is satisfactory to Agent, 
 (vii) the Fee Letter, 
 (viii) the Guaranty, and 
 (ix) the Intercompany Subordination Agreement, 
 (e) Agent shall have received a certificate from the Secretary of Borrower (i) attesting to the resolutions of Borrower’s Board
of Directors authorizing its execution, delivery, and performance of this Agreement and the other Loan Documents to which Borrower is a party, (ii) authorizing specific officers of Borrower to execute the same, and (iii) attesting to the
incumbency and signatures of such specific officers of Borrower; 
 (f) Agent shall have received copies of Borrower’s
Governing Documents, as amended, modified, or supplemented to the Closing Date, certified by the Secretary of Borrower; 
  

 — 1 — 

 (g) Agent shall have received a certificate of status with respect to Borrower, dated
within 10 days of the Closing Date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of Borrower, which certificate shall indicate that Borrower is in good standing in such jurisdiction; 
 (h) Agent shall have received certificates of status with respect to Borrower, each dated within 30 days of the Closing Date, such
certificates to be issued by the appropriate officer of the jurisdictions (other than the jurisdiction of organization of Borrower) in which its failure to be duly qualified or licensed would constitute a Material Adverse Change, which certificates
shall indicate that Borrower is in good standing in such jurisdictions; 
 (i) Agent shall have received a certificate from
the Secretary of each Guarantor (i) attesting to the resolutions of such Guarantor’s Board of Directors authorizing its execution, delivery, and performance of the Loan Documents to which such Guarantor is a party, (ii) authorizing
specific officers of such Guarantor to execute the same and (iii) attesting to the incumbency and signatures of such specific officers of Guarantor; 
 (j) Agent shall have received copies of each Guarantor’s Governing Documents, as amended, modified, or supplemented to the Closing Date, certified by the Secretary of such Guarantor; 
 (k) Agent shall have received a certificate of status with respect to each Guarantor, dated within 10 days of the Closing Date, such
certificate to be issued by the appropriate officer of the jurisdiction of organization of such Guarantor, which certificate shall indicate that such Guarantor is in good standing in such jurisdiction; 
 (l) Agent shall have received certificates of status with respect to each Guarantor, each dated within 30 days of the Closing Date, such
certificates to be issued by the appropriate officer of the jurisdictions (other than the jurisdiction of organization of such Guarantor) in which its failure to be duly qualified or licensed would constitute a Material Adverse Change, which
certificates shall indicate that such Guarantor is in good standing in such jurisdictions; 
 (m) Agent shall have received a
certificate of insurance, together with the endorsements thereto, as are required by Section 5.6, the form and substance of which shall be satisfactory to Agent; 
 (n) Agent shall have received an opinion of Loan Parties’ counsel in form and substance satisfactory to Agent; 
 (o) Borrower shall have the Required Availability after giving effect to the initial extensions of credit hereunder and the payment of all
fees and expenses required to be paid by Borrower on the Closing Date under this Agreement or the other Loan Documents; 
 (p)
Agent shall have completed its business, legal, and collateral due diligence, including (i) a collateral audit and review of Borrower’s and its Subsidiaries books and records and verification of Borrower’s representations and
warranties to Lender Group, the results of which shall be satisfactory to Agent, and (ii) a review of Borrower’s and its Subsidiaries’ Material Contracts, the results of which shall be satisfactory to Agent; 
 (q) Agent shall have received completed reference checks with respect to Borrower’s senior management, the results of which are
satisfactory to Agent in its sole discretion; 
 (r) Concurrently with the initial credit extension, Borrower shall have paid
all Lender Group Expenses incurred in connection with the transactions evidenced by this Agreement; 
  

 — 2 — 

 (s) Agent shall have received copies of each of the ODT Acquisition Documents, together
with a certificate of the Secretary of Borrower certifying each such document as being a true, correct, and complete copy thereof; 
 (t) Agent shall have received Borrower’s internally prepared interim financial statements for the month and 10 month period ending October 31, 2007, and the results reflected in such financial statements shall be materially
consistent with projections for such period previously provided to Agent; 
 (u) Borrower and each of its Subsidiaries shall
have received all licenses, approvals or evidence of other actions required by any Governmental Authority in connection with the execution and delivery by Borrower or its Subsidiaries of the Loan Documents or with the consummation of the
transactions contemplated thereby; and 
 (v) all other documents and legal matters in connection with the transactions
contemplated by this Agreement shall have been delivered, executed, or recorded and shall be in form and substance satisfactory to Agent. 
  

 — 3 — 

 Schedule 3.6 
 The obligation of each Lender to continue to make Advances (or otherwise extend credit under the Agreement) is subject to the fulfillment, on or before the date applicable thereto, of each of the following conditions
subsequent (the failure by Borrower to so perform or cause to be performed constituting an Event of Default): 
 (a) on or
prior to the date that is 60 days after the Closing Date, Agent shall have received satisfactory evidence that not less than the Required Library of all existing copyrights of the Loan Parties have been registered with the United States Copyright
Office; 
 (b) on or prior to the date that is 90 days after the Closing Date, Agent shall have received evidence that a
Copyright Security Agreement covering the Required Library has been duly received for filing in the United States Copyright Office; 
 (c) on or prior to the date that is 60 days after the Closing Date, Agent shall have received a Source Code Escrow Agreement, duly executed by the Loan Parties, Agent and an escrow agent reasonably satisfactory to Agent, with respect to the
source and object code for each version or versions of each item of computer software programs or other technology of the Loan Parties constituting the Required Library; 
 (d) on or prior to the date that is 90 days after the Closing Date, Agent shall have received evidence reasonably satisfactory to it that
the source and object code for each version or versions of each item of computer software programs or other technology of the Loan Parties constituting the Required Library has been deposited with the escrow agent in accordance with the terms and
conditions of the Source Code Escrow Agreement, as provided in the Security Agreement; 
 (e) on or prior to March 15,
2008, Borrower shall have closed all bank accounts that it or its Subsidiaries maintain at Silicon Valley Bank or Borrower shall have otherwise complied with Section 6.11; 
 (f) on or prior to the date that is 5 Business Days after the Closing Date, Agent shall have received the original promissory note issued
by Captaris Verwaltungs GmbH (formerly Blitz 07-751 GmbH) to the order of Borrower, including an endorsement of such note to Agent; and 
 (g) on or prior to the date that is 14 days after the Closing Date, Agent shall
have received a Collateral Access Agreement with respect to the following location: 301 116th Avenue SE, Bellevue, Washington 98004. 
  

 -1- 

 Schedule 5.1 
 Deliver to Agent, with copies to each Lender, each of the financial statements, reports, or other items set forth set forth below at the following times in form satisfactory to Agent: 
  

			
	as soon as available, but in any event within 30 days (45 days in the case of a month that is the end of one of Borrower’s fiscal quarters) after the end of each month	  	(h) an unaudited consolidated and consolidating balance sheet, income statement, and statement of cash flow covering Borrower’s and its Subsidiaries’ operations during such period,
including comparisons versus budget and prior year.
		
	as soon as available, but in any event within 45 days after the end of each of Borrower’s fiscal quarters	  	(i) an unaudited consolidated and consolidating balance sheet, income statement, and statement of cash flow covering Borrower’s and its Subsidiaries’ operations during such period,
including comparisons versus budget and prior year.
		
	as soon as available, but in any event within 90 days after the end of each of Borrower’s fiscal years	  	 (j) consolidated and consolidating financial statements of Borrower and its Subsidiaries for each such fiscal year, audited by independent certified
public accountants reasonably acceptable to Agent and certified, without any qualifications (including any (A) “going concern” or like qualification or exception, (B) qualification or exception as to the scope of such audit, or (C)
qualification which relates to the treatment or classification of any item and which, as a condition to the removal of such qualification, would require an adjustment to such item, the effect of which would be to cause any noncompliance with the
provisions of Section 7), by such accountants to have been prepared in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, and statement of cash flow and, if prepared, such accountants’ letter
to management), and
  
 (k) a Compliance Certificate.

		
	as soon as available, but in any event within 30 days after the start of each of Borrower’s fiscal years,	  	(l) copies of Borrower’s Projections, in form and substance (including as to scope and underlying assumptions) satisfactory to Agent, in its Permitted Discretion, for the forthcoming 3
years, year by year, and for the forthcoming fiscal year, month by month, certified by the chief financial officer of Borrower as being such officer’s good faith estimate of the financial performance of Borrower during the period covered
thereby.
		
	if and when filed by Borrower,	  	 (m) Form 10-Q quarterly reports, Form 10-K annual reports, and Form 8-K current reports,
  
 (n) any other filings made by Borrower with the SEC, and
  
 (o) any other information that is provided by Borrower to its shareholders
generally.

  

 -1- 

			
		
	promptly, but in any event within 5 days after Borrower has knowledge of any event or condition that constitutes a Default or an Event of Default,	  	(p) notice of such event or condition and a statement of the curative action that Borrower proposes to take with respect thereto.
		
	promptly after the commencement thereof, but in any event within 5 days after the service of process with respect thereto on Borrower or any of its Subsidiaries,	  	(q) notice of all actions, suits, or proceedings brought by or against Borrower or any of its Subsidiaries before any Governmental Authority which reasonably could be expected to result in a
Material Adverse Change.
		
	upon the request of Agent,	  	(r) any other information reasonably requested relating to the financial condition of Borrower or its Subsidiaries.

  

 -2- 

 Schedule 5.2 
 Provide Agent (and if so requested by Agent, with copies for each Lender) with each of the documents set forth below at the following times in form satisfactory to Agent: 
  

			
	Weekly	  	(s) A detailed cash report of Borrower and its Subsidiaries, segmented as to domestic and foreign, including separate detail as to Qualified Cash.
		
	Monthly (not later than the 15th day of each month)	  	 (t) a Credit Amount Certificate,
  
 (u) a detailed aging of Borrower’s Accounts, by total, and segregated based upon Maintenance Fee Revenues and other revenues, together with a reconciliation to the
Credit Amount Certificate,
  
 (v) a “roll forward” of the Accounts from the
prior month with supporting documentation to include cash journals, sales journals, debit memos and credit memos,
  
 (w) notice of all claims, offsets, or disputes asserted by Account Debtors with respect to Borrower’s and its Subsidiaries’ Accounts, and
  
 (x) a calculation for the prior month of the Maintenance Fee Revenues and the collections associated
with such Maintenance Fee Revenues,
  
 (y) a report detailing maintenance contract and
service contract retention statistics for Borrower,
  
 (z) a report showing (i) all
deferred revenue as set forth in Borrower’s balance sheet for the prior month, (ii) the portion of such deferred revenue that will be earned during the next four fiscal quarters, (iii) the portion of such revenue that will be earned during the
four fiscal quarters commencing one year from the date of such balance sheet, (iv) the portion of such revenue that will be earned on or after the date two years following the date of such balance sheet, and (v) the portion of such non-current
deferred revenue that has previously been paid in cash,
  
 (aa) a detailed report
regarding royalty payables for Borrower and its Subsidiaries,
  
 (bb) a detailed report
regarding Borrower’s and its Subsidiaries’ cash and Cash Equivalents, including an indication of which accounts constitute Qualified Cash, and
  
 (cc) a summary aging, by vendor, of Borrower’s accounts payable, and any book overdraft.

		
	Monthly (not later than the 25th day of each month)	  	(dd) a reconciliation of the prior months’ deferred revenue balance between Borrower’s balance sheet and Borrower’s general ledger,

  

 -1- 

			
		
	Quarterly	  	 (ee) a detailed list of Borrower’s customers including contract expiration dates and annualized recurring revenue (including Maintenance Fee
Revenues) contributions,
  
 (ff) a report of all modified, newly developed, and newly
acquired copyrights, patents and trademarks for each of the Loan Parties, as required pursuant to Section 6(g) of the Security Agreement,
  
 (gg) a report of Material Contracts as required pursuant to Section 5.14 of the Security Agreement,
  
 (hh) a profit and loss statement for the recurring revenue base (including Maintenance Fee Revenues),

  
 (ii) a report regarding the amount of cash currently required under German law to
ensure compliance by Borrower’s German Subsidiaries with capital maintenance rules under German law, in particular section 30 of the German Limited Liability Company Act (GmbHG), and
  
 (jj) a report regarding Borrower’s and its Subsidiaries’ accrued, but unpaid,
taxes.

		
	Upon request by Agent	  	 (kk) copies of invoices, credit memos, remittance advices, deposit slips, shipping and delivery documents in connection with Borrower’s and its
Subsidiaries’ Accounts and copies of purchase orders and invoices for Inventory and Equipment acquired by Borrower or its Subsidiaries, and
  
 (ll) such other reports as to the Collateral or the financial condition of Borrower and its Subsidiaries, as Agent may reasonably request.

  

 -2-Purchase and Sale Agreement

 Exhibit 10.1 
 PURCHASE AND SALE AGREEMENT 
 THIS AGREEMENT (“the Agreement”) is made and entered into on
January 4, 2008 (“Date of Agreement”), by and between IDM EQUIPMENT, LLC, 11616 Galayda Street, Houston, Texas 77086 (the “Seller”), and UNION DRILLING, INC., 4055 International Plaza, Suite 610, Fort Worth, Texas, 76109
(the “Purchaser”). 
 RECITALS: 
 The Seller is the manufacturer of and is desirous of building and selling a certain drilling rig (Union Drilling Rig No. 058) and related equipment generally described as a 1600hp AC Fast Moving Quicksilver Drilling System (“the
Rig”), together with related equipment and modifications thereto, as more fully described in Quotation No. R071002BO-01 Revision C from Seller to Purchaser dated January 3, 2008 (“the Quotation”) described in Exhibit A, attached
hereto and incorporated herein for all purposes; 
 NOW, THEREFORE, for and in consideration of the premises, mutual covenants contained herein, and other
good and valuable consideration, the receipt and sufficiency of which are acknowledged by each party, the parties do hereby agree as follows: 
  

	1.	Calculation of Time. 

  

	 	a.	“Business Day(s)” as used herein, shall mean any day other than a Saturday, Sunday, or any day defined as a legal public holiday under 5 U.S.C. § 6103. When
applicable, if an event occurs before 5 pm Central Time the day of the event is counted as the first Business Day. When applicable, if an event occurs after 5 pm Central Time the day after the event is counted as the first Business Day.

  

	 	b.	“Calendar Day(s)” as used herein, shall mean the twenty-four hour period from midnight to midnight. When applicable, if an event occurs before 5 pm Central Time the day of
the event is counted as the first Calendar Day. When applicable, if an event occurs after 5 pm Central Time the day after the event is counted as the first Calendar Day. 

  

	2.	Sale. Subject to the manufacture, assembly, rig up, testing of the Rig and rig down (“the Work”), and subject to the terms and conditions set forth herein, the
Seller hereby agrees to sell, assign and convey to the Purchaser, and the Purchaser hereby agrees to purchase from the Seller, the Rig, and the related Work. 

  

	3.	Purchase Price and Payment Schedule. The total purchase price for the Rig shall be Twelve Million, Seven Hundred Fifty-Seven Thousand, Three Hundred Twenty-Five Dollars And
56/100 ($12,757,325.56) (“the Purchase Price”), together with any applicable state or local taxes, if any, to be paid as follows: 

  

	 	a.	 A down payment of Four Million, Four Hundred Sixty-Five Thousand, Sixty-Three Dollars And 95/100 ($4,465,063.95) (the “Down Payment”) (thirty-five percent
[35%] of the purchase price) together with any and all applicable state or local taxes, 

	 	 
if any due. Payment is to be paid by the Purchaser to the Seller within two (2) Business Days of order placement. The signing of this contract serves as
invoice and/or notification of payment due. Rig delivery will be moved one (1) day later for every day, after the second day, which payment is not received in Seller’s account. 

  

	 	b.	Upon completion by Seller of the Mast and Substructure Fabrication, receipt of the Mud Pumps and Engine Generator Skids respectively, as described in Exhibit A, or equipment of
equal value, an installment payment which is equal to Five Million, One Hundred Two Thousand, Nine Hundred Thirty Dollars And 23/100 ($5,102,930.23) (“the Installment Payment”) (forty percent [40%] of the purchase price) together with any
and all applicable state or local taxes, if any due shall be paid by Purchaser to Seller. The Installment Payment shall be subject to inspection of the aforementioned relevant items by Purchaser and acknowledgment that the aforementioned relevant
items have been completed. Such inspection and acknowledgment shall not be unreasonably withheld by Purchaser. Purchaser shall conduct said inspection within seventy-two (72) hours of Seller’s request for Purchaser’s inspection and
Purchaser shall, within seventy-two (72) hours after the inspection, provide acknowledgment or notify Seller in writing of any deficiencies which Purchaser claims entitles Purchaser to withhold acknowledgment that the aforementioned relevant
items have been completed; 

  

	 	c.	The balance of the Purchase Price, Three Million, One Hundred Eighty-Nine Thousand, Three Hundred Thirty-One Dollars And 39/100 ($3,189,331.39) (twenty-five percent [25%] of the
purchase price) together with any and all applicable state or local taxes, if any due shall be paid by Purchaser to Seller upon Acceptance of the Rig, as hereinafter defined. Such approval and payment shall not be unreasonably withheld by the
Purchaser. 

  

	 	d.	Unless otherwise noted, all payments due under this Agreement are payable within two (2) Business Days of receipt of Seller’s invoice for the same. All payments to Seller
hereunder shall be made by wire transfer to Seller’s designated bank account. 

  

	 	e.	Within ten (10) Business Days of the date of the execution of this Agreement, Purchaser shall provide Seller with a Texas Sales and Use Tax Exemption Certification related to
the Rig and Work, if applicable. If Purchaser fails to provide the same, all applicable state and local taxes will be added to the payments due from Purchaser. If appropriate, Seller will refund to Buyer any amount paid for tax prior to
Seller’s receipt of the above-mentioned certification. 

  

	4.	Performance of the Work. Seller shall perform the Work in a good and workmanlike manner and in accordance with the specifications set forth in the Quotation.

  

	5.	Inspection and Acceptance of the Rig and Work. 

  

	 	a.	 Seller shall notify Purchaser promptly upon completion of the Work, and Purchaser shall inspect the Rig and Work within three (3) Business Days after receipt
of such notice. If the Rig and Work are approved by Purchaser, Purchaser shall promptly issue and deliver to Seller the Rig Acceptance Certificate, attached hereto as Exhibit 

	 	 
“B” and incorporated herein for all purposes. If Purchaser rejects the Rig and the Work, Purchaser shall specifically identify its reason(s) for
such rejection in writing to Seller within such forty-eight (48) hours. If Purchaser fails to notify Seller of its rejection as set forth in the immediately preceding sentence, Purchaser shall be deemed to have accepted the Rig and the Work.
Upon acceptance (“Acceptance”) of the Rig and Work either deemed or acknowledged, Purchaser shall promptly issue and deliver to Seller the “Rig Acceptance Certificate,” attached hereto as Exhibit B. 

 

	 	b.	Purchaser shall have the right to inspect the Rig and Work at any reasonable time throughout the term of the Agreement upon written notice to Seller at least twenty-four
(24) hours prior to the time of inspection. 

  

	6.	Delivery. 

  

	 	a.	Subject to the provisions of this Agreement, Seller shall deliver the Rig and Work to Purchaser at 11616 Galayda Street, Houston, Texas, on terms Ex-works on or before May 31,
2008 (the “Delivery Date”). The Rig and Work shall be deemed to be delivered once it has been manufactured, rigged up, tested, rigged down, and is accepted by the Purchaser pursuant to Section 5 herein (“Delivery”).
Acceptance of the Rig and Work for purposes of delivery shall not be unreasonably withheld by the Purchaser. In addition, Seller will furnish to Purchaser, within two weeks after Delivery, copies of all instruction, maintenance and repair manuals
related to the systems and equipment provided under this Agreement, provided however, that reasonable delay in delivery of such manuals shall not affect determination of the time of Delivery. Contemporaneously with the delivery, rig up, testing of
the Rig, and rig down, Seller shall provide Purchaser with a Bill of Sale for the Rig in the form attached hereto as Exhibit C. Delivery will not be completed nor will Seller provide the Bill of Sale prior to Seller’s receiving the balance of
the purchase price as described above in Section 3 and any outstanding amount due in connection with any change orders. The Delivery Date may only be extended for reasons and events of Force Majeure, Permissible Delays, or Change Order Delays,
as hereinafter defined. Any delay or expected delay shall be communicated and confirmed by letter to Purchaser. Acceptance of any delays defined as Permissible Delays, Force Majeure, or Change Order Delays shall not be unreasonably withheld by
Purchaser. 

  

	 	b.	Within thirty (30) Calendar Days of the date of the execution of this Agreement, Seller and Purchaser shall agree to a written schedule outlining timing and dates for drawing
approvals and Purchaser’s delivery of Purchaser-supplied equipment. All Purchaser-supplied equipment must be operable, and it shall be Purchaser’s responsibility to ensure that all Purchaser-supplied equipment is operable and fit for use
with and/or incorporation into the Rig and Work prior to delivering it to Seller. 

  

	 	c.	Seller and Purchaser agree that: (i) Seller shall give Purchaser a credit of $3,000 per day against the Purchase Price for each day that Seller’s delivery of the Rig
extends beyond the Delivery Date; and (ii) Purchaser shall pay to Seller a bonus of $3,000 per day, in addition to the Purchase Price, for each day in advance of the Delivery Date that the Seller is able to make the Rig available to Purchaser.

	7.	Representations of the Seller. The Seller represents to the Purchaser the following: 

  

	 	a.	That it is a limited liability company organized and existing under the laws of the State of Delaware and is duly authorized to do business in the State of Texas;

  

	 	b.	That it has full power, authority and ability to perform all of the obligations of the Seller hereunder; and 

  

	 	c.	That the execution of this Agreement and all obligations hereunder have been duly authorized by all necessary legal action and shall constitute valid and binding obligations as to
the Seller, enforceable in accordance with their terms, and further that the representative of the Seller executing this Agreement has full authority to bind the Seller, and that the joinder of no person or entity, other than those set out herein,
will be necessary to create a binding obligation upon the Seller pursuant to this Agreement. 

  

	 	d.	That it holds or has rights to use all the intellectual property included in the Rig. 

  

	8.	Representations of the Purchaser. The Purchaser represents to the Seller the following: 

  

	 	a.	That it is a corporation organized and existing under the laws of the State of Delaware; 

  

	 	b.	That it has full power, authority and ability to perform all of the obligations of the Purchaser hereunder; and 

  

	 	c.	That the execution of this Agreement and all obligations hereunder have been duly authorized by all necessary legal action and shall constitute valid and binding obligations as to
the Purchaser, enforceable in accordance with their terms, and further that the representative of the Purchaser executing this Agreement has full authority to bind the Purchaser, and that the joinder of no person or entity, other than those set out
herein, will be necessary to create a binding obligation upon the Purchaser pursuant to this Agreement. 

  

	9.	Change Orders. 

  

	 	a.	Purchaser may at any time require a change in the equipment, design, or the method, sequencing, conduct or timing of the Work within the general scope of this Agreement (a
“Change”). 

  

	 	b.	If Purchaser requests a Change, then Seller shall promptly prepare and submit to Purchaser an estimate of the increase or decrease, if any, in the cost and time required to
complete, or other aspect of, the Work, together with an explanation of the basis for such estimate utilizing the rates set forth in Seller’s prevailing Hourly and Daily Labor, Equipment and Facility Rates as set out in Exhibit D.

	 	c.	Once the parties agree on the terms and effect of a Change, they shall execute a written change order (a “Change Order”) on Seller’s Customer Change Order Form set
forth in Exhibit E. Change Orders shall contain full particulars of the Change, and any adjustments in the Purchase Price, Delivery Date or other aspects of the Work, and it shall represent the full and final agreement of the parties as to the
Change. Seller may, but shall not be obligated to proceed with a Change prior to execution of the Change Order by Purchaser. 

  

	 	d.	The anticipated delivery date shall be reasonably extended for all purposes, for each Change Order that creates additional time for performance of the Work (“Change Order
Delay”). 

  

	 	 e.
	 Change orders made during the first ninety (90) days of signing this Agreement will be charged at the standard
stated rates in Exhibit D. Change orders made from the ninety-first (91st) day to the one hundred fifty-first (151st) day will be charged at one-and-one-half (1.5) times the standard stated rates. Change orders made from the one hundred fifty-second (152nd) day until Delivery will be charged at two (2) times the standard rates. 

  

	 	f.	If Purchaser approves the Seller’s Change Order Notice, Seller shall issue an invoice to Purchaser after the completion of the Change Order. Purchaser shall pay Seller’s
invoice within fifteen (15) Business Days of Purchaser’s receipt of Seller’s invoice. 

  

	10.	Default by the Purchaser: Seller’s Remedies. Purchaser shall be deemed to be in default upon the occurrence of any one or more of the following events; provided, that
the Seller has given Purchaser, written notice of such default and Purchaser has failed to cure: (i) within three (3) Business Days of such notice, any default with respect to payment due hereunder; and (ii) within fifteen
(15) Business Days of such notice, any default of the type described in Sections 10(b), (c), and (d) below: 

  

	 	a.	The Purchaser fails to make any payment as and when required pursuant to this Agreement or any other agreement pertaining to this transaction; 

  

	 	b.	The Purchaser fails to meet or comply with or perform any covenant, agreement or obligation on its part required within the time limits and in the manner required in this Agreement,
or any other agreement pertaining to this transaction; 

  

	 	c.	Any warranty, representation or statement made or furnished to the Seller by or on behalf of the Purchaser proves to be false in any material respect when made or furnished; or

  

	 	d.	The dissolution or termination of the Purchaser’s legal existence, insolvency, business failure, appointment of a receiver, assignment for the benefit of creditors, or the
commencement of any proceedings under any bankruptcy or insolvency law of, by, or against the Purchaser. 

 In the event the
Purchaser shall be deemed to be in default hereunder, the Seller may 

 
exercise any such right or remedy as Seller may have, at law or in equity, by reason of such default, including, but not limited to, termination of this
Agreement, suspension of performance, enforcement of specific performance, and recovery of reasonable attorney’s fees incurred by the Seller in connection therewith. 
  

	11.	Default by the Seller: Purchaser’s Remedies. The Seller shall be deemed to be in default upon the occurrence of any one or more of the following events provided that
Purchaser has given Seller written notice of such default and Seller has failed to cure within fifteen (15) Business Days of such notice, any default with respect to obligations or warranties described in Section 11(a), (b), and
(c) herein: 

  

	 	a.	The Seller fails to meet or comply with or perform any covenant, agreement or obligation on its part required within the time limits and in the manner required in this Agreement, or
any other agreement pertaining to this transaction; 

  

	 	b.	Any warranty, representation or statement made or furnished to the Purchaser by or on behalf of the Seller proves to be false in any material respect when made or furnished; or

  

	 	c.	The dissolution or termination of the Seller’s legal existence, insolvency, business failure, appointment of a receiver, assignment for the benefit of creditors, or the
commencement of any proceedings under any bankruptcy or insolvency law of, by, or against the Seller. 

 In the event the Seller
shall be deemed to be in default hereunder, the Purchaser may exercise any such right or remedy as Purchaser may have, at law or in equity, by reason of such default, including, but not limited to, termination of this Agreement or enforcement of
specific performance, and recovery of reasonable attorney’s fees incurred by the Purchaser in connection therewith. 
  

	12.	Force Majeure. In the event that performance by either party of any of its obligations under this Agreement (other than the payment of monies) shall be interrupted by an act
of God, by an act of war, riot, or a civil disturbance, by an act of state, civil or military authority, or any political subdivision or agency thereof, by strikes, fire, flood, hurricane, or by the occurrence of any other event beyond the
reasonable control of either party hereto, and which by the exercise of due diligence could not reasonably be prevented (each an “Event of Force Majeure”), such party shall be excused from such performance for an amount of time reasonably
necessary for such party to recover from the effects of such Event of Force Majeure. A party claiming an event of force majeure shall, as soon as reasonably practical, notify the other party in writing of such event and the anticipated duration of
such event. 

  

	13.	Permissible Delays. In addition to Force Majeure events described herein, delivery may be delayed for an equal amount of time caused by any such delay if:

  

	 	a.	The Purchaser provides a written change in specifications or time of delivery of the Rig and Work; 

  

	 	b.	Any inspections or tests are required for certifications which are not included or contemplated in this Agreement; 

	 	c.	There is a delay in delivery of Purchaser-supplied equipment, if any, not caused in whole or in part by Seller, or a delay caused by repair or servicing of any Purchaser-supplied
equipment; 

  

	 	d.	There is a Change Order Delay; or 

  

	 	e.	There is a delay caused by weather conditions which render the Work unsafe, impracticable, or incapable of being performed safely in the determination of the job superintendent
(Seller shall maintain a written log of the weather conditions which pertain to this issue and shall promptly provide the Purchaser with written notice of any delay caused by weather conditions); (collectively “Permissible Delays”).

  

	14.	Title. Title to the Rig and the Work shall remain with Seller until Acceptance and payment in full. 

  

	15.	Warranty and Limits of Liability. The Seller’s Warranty and Limit of Liability is set forth in its Standard Terms & Conditions of Sale attached hereto as
Exhibit F, and is incorporated herein for all purposes. 

  

	16.	Indemnity by the Purchaser. 

  

	 	a.	The Purchaser agrees to be liable for, indemnify, defend and hold the Seller and its affiliates (the “Seller Group”) and the property of the Seller Group, including, but
not limited to, the Rig and Work, free and harmless from any and all claims, charges, liens, mortgages, lis pendens, attachments, security interests, causes of action, judgments, or any other encumbrances with respect to and resulting from
(i) any breach of this Agreement by Purchaser, and (ii) any liability of Purchaser. 

  

	 	b.	The Purchaser agrees to be liable for, indemnify, defend and hold the Seller Group harmless from and against any liabilities, costs, claims, expenses, loss or damage to the Seller
Group’s property, including the Rig and the Work, caused by the negligent acts or willful misconduct on the part of Purchaser’s employees, third party contractors or agents. 

  

	17.	Indemnity by the Seller. The Seller agrees to indemnify, defend and hold the Purchaser and its affiliates (the “Purchaser Group”), and the property of the Purchaser
Group, including, but not limited to, the Rig and Work, free and harmless from any and all claims, charges, liens, mortgages, lis pendens, attachments, security interests, causes of action, judgments, or any other encumbrances with respect to or
resulting from (i) any breach of this Agreement by Seller, and (ii) any liability of Seller. 

  

	18.	 Insurance. The Seller shall keep the Rig and Work, except Purchaser supplied equipment, if any, insured for all risks customary for this type of Rig and
Work, including liability coverage, for a minimum of the full amount of the Purchase Price, from the date of execution of this Agreement until Acceptance. The Seller, upon written request of Purchaser, shall provide Purchaser with proof of insurance
and all renewals thereof. 

	 	 
Notwithstanding the foregoing the Purchaser is responsible for negligent acts or willful misconduct on the part of its employees, third party contractors, or
agents in connection with the completion of the Rig and Work. 

  

	19.	Commissioning. Seller shall supply, at its cost, two men (one Rig-Up Supervisor and one Electrical technician) for up to fourteen (14) Calendar Days (travel time to be
included in calculation of said days), as required, to provide technical advice to commission the Rig at its first drilling location. Purchaser will be responsible for all reasonable and customary travel, lodging, meals, incidentals and expenses
associated with the trip. In the event that Purchaser requests one or both of Seller’s representatives to stay for more than the fourteen (14) Calendar Days, each additional day for each of Seller’s representatives shall be charged to
Purchaser as per Seller’s Service Rates as set out in Exhibit G, attached hereto and incorporated herein for all purposes, and Purchaser will be responsible for all travel, lodging, meals, incidentals and expenses associated with the duration
of the trip beyond the initial fourteen day period. Such costs will be paid to Seller within fifteen (15) Business Days of Purchaser’s receipt of Seller’s invoice for such charges. 

  

	20.	Proprietary and Confidential Information. The parties agree that the information and data exchanged between them is considered proprietary information and confidential. Such
information, if disseminated to third parties, would be detrimental to the owner of the proprietary information. Accordingly, each party agrees to take any and all reasonable precautions to restrict the dissemination of such information by its
employees, agents or subcontractors. 

 Information provided by the parties shall not be deemed confidential if such
information: 
  

	 	a.	Is already known by the parties; 

  

	 	b.	Is or becomes publicly known, through no wrongful act of a party, but only to the extent made public; 

  

	 	c.	Is rightly received by a party from a third party without a similar restriction and without breach of this Agreement; 

  

	 	d.	Is independently developed by a party without breach of this Agreement: 

  

	 	e.	Is approved for release by a party’s written communication; or 

  

	 	f.	Is required to be disclosed pursuant to court order, order of a governmental agency, or by operation of law after all parties have been notified of the same and given a reasonable
time period within which to object to, or prevent by injunctive relief, such disclosure. 

 During the term of this Agreement or
any extension of this Agreement, neither party shall permit access by any nonaffiliated employee or person to the proprietary and confidential information, without the other party’s written permission. 

	21.	Assignment. 

  

	 	a.	Purchaser may not assign its rights acquired hereunder in whole or in part without the prior written consent of the Seller, such consent not to be unreasonably withheld. Upon
assignment by Purchaser as approved by Seller, the provisions of this Purchase and Sale Agreement shall inure to the benefit of and shall be binding upon the respective heirs, successors and assigns of Purchaser. Any assignment not in compliance
with this Section 21 shall be void and without force and effect. 

  

	 	b.	Seller may subcontract or assign its rights or delegate duties hereunder without the written consent of Purchaser. 

  

	22.	Notices. All notices required or permitted hereunder shall be given and received if personally delivered to each party’s designated on-site representative or sent by
certified or registered mail, postage prepaid, return receipt requested, addressed as follows: 

  

	 	a.	If to Seller: 

 Mr. David J. Godin 
 Chief Operating Officer 
 IDM Equipment, LLC

 11616 Galayda Street 
 Houston,
Texas 77086 
  

	 	b.	If to Purchaser: 

 Mr. Christopher D. Strong

 President and CEO 
 Union
Drilling, Inc. 
 4055 International Plaza, Ste. 610 
 Fort Worth, Texas 76109 
  

	23.	Miscellaneous. 

  

	 	a.	THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS. 

  

	 	b.	 ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN
DISTRICT OF TEXAS, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER 

	 	 
HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND DOES NOT
PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION. 

  

	 	c.	Regardless of whether the transactions contemplated hereby are consummated, and unless otherwise provided for under this Agreement, each party hereto shall pay its own expenses
incident to this Agreement. 

  

	 	d.	This Agreement and the Exhibits attached hereto contain the entire agreement between the parties and supersede all prior agreements and understandings, if any, relating to the sale
and purchase of the Rig and Work and may be amended or supplemented only by instrument in writing executed by both parties. 

  

	 	e.	This Agreement shall be binding upon and inure to the benefit of the Seller and the Purchaser and their respective successors and assigns. 

	 	f.	This Agreement is subject to the Seller’s Standard Terms & Conditions of Sale as described in Exhibit F. However, in the event of a conflict between this Agreement and
any of the Exhibits attached hereto, the provisions of this Agreement shall prevail. 

  

	 	g.	If any one or more of the provisions contained in this Agreement or in any other document delivered pursuant hereto shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such document. All other provisions and the entirety of this Agreement shall remain in full force and
effect unless the removal of the invalid, illegal or unenforceable provision destroys the legitimate purposes of this Agreement, in which event this Agreement shall be terminated. 

  

	 	h.	This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which when taken together shall constitute but one and the same
Agreement. 

  

	 	i.	The failure or delay of either party in the enforcement of its rights set out in this Agreement shall not constitute a waiver of the rights nor shall it be considered as a basis for
estoppel either at law or in equity. 

  

	 	j.	 For a period commencing at the Date of Agreement and extending until one (1) year following Delivery, Seller and Purchaser agree not to solicit directly or
induce any individual in the other party’s employ to terminate the employee’s relationship with the other party, regardless of whom would benefit from such inducement. Ordinary course advertisement/posting of jobs to the general public
will not be a “direct” solicitation. It is expressly agreed that if Seller or Purchaser acts in such a manner, the other party would be damaged in a manner and to an extent such that the other party could not be adequately compensated
by monetary damages. Seller and Purchaser therefore agree that a party’s 

	 	 
breach (or threatened breach) of the obligations under this section may appropriately be restrained by an injunctive order, granted by a court of
competent and appropriate jurisdiction. It is expressly understood and agreed by Seller and Purchaser that the terms hereof are contractual and are not merely recitals, that the agreements herein contained constitute a binding obligation upon
Seller and Purchaser, and their employees, agents, successors and assigns, and that this provision shall survive the termination or completion of this Agreement. 

  

	 	k.	All skids, structures and mud systems will be fabricated in accordance with ANSI/AWS D1.1 structural welding code. Piping systems will be fabricated in accordance with ANSI/ASME
B31.3 pressure piping code. 

 EXECUTED THE 4th day of January, 2008. 
  

			
	PURCHASER:
	
	UNION DRILLING, INC.
		
	By:	 	 /s/ Christopher D. Strong

	Name:	 	Christopher D. Strong
	Title:	 	President and CEO
	
	SELLER:
	
	IDM EQUIPMENT, LLC
		
	By:	 	IDM Equipment, Inc.,
		 	its sole and managing member
		
	By:	 	 /s/ Elliot S. Smith

	Name:	 	Elliott S. Smith
	Title:	 	Chief Financial Officer

 EXHIBIT A 
 QUOTATION 
  

			
	

	 	IDM Group
	 	11616 Galayda
	 	Houston, Texas
	 	281-447-9000
	 	www.idmequipment.com

 E-Mail: b.olsen@idmequipment.com 
 January 3, 2008 
 Quotation No.: R071002BO-01 Revision C 
 Union Drilling, Inc. 
 4055 International Plaza, Suite 610 
 Fort Worth, TX 76109 
  

			
	Attention:	 	Christopher D. Strong
		
	Reference:	 	1600hp AC Fast Moving Quicksilver Drilling System

 Dear Chris, 
 We are
pleased to offer the following for delivery 22 to 24 weeks after receipt of the signed approved contract and the initial deposit: 
  

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	IDM EQUIPMENT 1600HP QUICKSILVER DRILLING RIG	  		  	
					
		  		  	 Drawworks, Mast, Substructure and accessories to be supplied per the following;
  
 •      Mast, Crown and
substructure to comply with API spec 4F.
  
 •      Crown sheave assemblies comply with API spec 8A.
  
 •      Traveling Block API 8A
  
 •      Drawworks and
Rotary Table will comply with API 7K
  
 •      Designed to 0oF (-17.8oC) thru 104oF (40oC) ambient
	  		  	
					
		  		  	SECTION (1)	  		  	
					
		  		  	DRAWWORKS, MAST, SUB AND ACCESSORIES	  		  	$  3,932,820.50
					
	 1.
	  	1	  	NEW IDM-1600 1600HP AC DRAWWORKS	  		  	Included
					
		  		  	New IDM-1600 AC Drawworks (DW), supplied complete;	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 IDM-1600, Drawworks rated at 1600 nominal hp per the following;
  
 a.      1600hp input power

  
 b.      Heavy
duty sub skid to match to Mud Boat
  
 c.      Heavy duty Drawworks shell with guards & covers
  
 d.      Heavy duty drum sized for the application and grooved for 1-3/8” Drill line

 
 e.      One (1) integrated
HPU
  
 f.       One (1) Disc Parking Brake complete with controller
  
 g.      Configured to operate with one AC traction motor
  
 Drive Assembly;
  
 Electric motor drive arrangement with one (1) New Ward Leonard AC traction motor 1500hp Drawworks
duty motor to include one (1) 20hp blower complete with junction box.
  
 Drawworks
controls are mounted in the driller’s cabin. The IDM-1600 AC Drawworks mounts on the Mud Boat and is designed to be transported on the Mud Boat.
	  		  	
						
		  		  	Manufactured:	  	IDM Equipment	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	IDM-1600	  		  	
					
	 2.
	  	1	  	MAST ASSEMBLY	  		  	Included
					
		  		  	 IDM, freestanding vertical, triple telescoping, hydraulically raised Mast Assembly complete with 136’ clear height, 750,000 lb.
static hook load capacity, strung on 12 lines with 13’ x 9’ base, ladders, lighting and crown assembly.
  
 The mast is designed to be telescoped out horizontally using a tandem axle truck, and retracted in horizontally utilizing the mast dolly mounted drill line spooler. The mast will remain mounted on the 4-axle removable
dolly complete with integrated hydraulically operated drill line spooler assembly for transportation.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 The drill line spooler integration into the mast dolly facilitates the mast being transported with the traveling assembly remaining
strung. The traveling block and hook assembly are designed to be transported in the mast assembly secured in the traveling assembly cradle.
  
 The mast raising cylinders, two (2) hydraulic cylinders, are mounted on the mud boat during transportation and are utilized for handling and operation of the mast during
the raising and lowering procedure. The make-up and breakout assembly is supplied complete with hydraulic cylinders mounted in the mast and drill floor level sheave assemblies complete with all the necessary hydraulic hoses, fittings, and valves for
operation.
  
 The crown assembly is supplied complete with a main cluster consisting
of five (5) 36” diameter sheaves grooved for 1-3/8” wire line, a fastline sheave consisting of one (1) 42” diameter sheave grooved for 1-3/8” wireline, a tandem deadline sheave arrangement consisting of one (1) 42”
diameter sheave and one (1) 36” diameter sheave, each grooved for 1-3/8” wireline all arranged to accommodate a six (6) sheave traveling block. Additional features include a removable fifth wheel plate mounted
on the front side of the crown frame, 42” high handrails, bumper blocks, padeyes for block suspension line, tugger sheaves and top drive.
  
 The racking board is designed with a racking capacity of 14,400’ of 5” drill pipe and four (4) stands of 6 1/2” Drill Collars. The racking board will be complete with an adjustable diving board, finger covers for the driller’s side fingers, a 1500 lb.
pull back winch and mount, a SALA block, safety chains on each finger, 78” handrails, racking board frame and a ladder landing platform with handrails.
  
 Two (2) tong counterweights complete with buckets, guides, blocks and wirelines are to be included. Padeyes are to be mounted in the mast intermediate section.

 
 Two (2) M491 or equal tugger sheave units grooved for 9/16” diameter
wireline.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 Escape line, 9/16” x 1.5 x mast height with padeye and shackle.
  
 Hydraulic line spooler supplied with and designed to accommodate line designed to facilitate the
stringing process.
  
 The mast will contain all the necessary drive pins and bolts for
assembly.
	  		  	
						
		  		  	Manufacture:	  	IDM Equipment	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	QDS-1600M	  		  	
					
		  		  	Note: Mast is to be supplied Top Drive ready with a hinged safety platform for Top Drive rig up.	  		  	
					
	 3.
	  	1	  	DRILL LINE SPOOLER	  		  	Included
					
		  		  	 One (1) Tulsa Power Drill Line Spooler complete per the following;
  
 •     Material: 1-3/8”
Diameter Wire Rope
  
 •     Material Length: 7,500 ft.
  
 •     Pneumatic
  
 Model
TUAF-30-DLS Tailboardable Drill Line Spooler
  
 •     Construction: Heavy-duty oil field steel I-beam base and tubing frame and uprights.
  
 •     Anti-skid steel plate to top surface of frame.
  
 •     Frame includes 4 point
lifting eyes and forklift pockets.
  
 •     Solid shaft includes heavy-duty drive arm with solid shaft.
  
 •     Bearings: Oil impregnated bronze bearing material shaft supports with grease nipples and
grease paths.
  
 •     Air Motor: An air motor transmits torque to the drive arm through a suitable gear reducer. Air Motor and brakes to run off rig air supply. Fittings mounted to inlet line with quick disconnect. Pl. specify
the size of connections at the time of placing the order.
  
 •     Control: Dual directional modulating hand valve with pressure gauge valving for speed and direction control. Controls include SS labels.
  
 •     Brakes: pneumatically
operated brake with caliper and brake pads to provide hold back tension. Regulator provided.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 •     Guards: Guards to protect drive components and controls.

  
 •     All welds
are seal welded.
  
 •     Tailboardable
	  		  	
					
	 4.
	  	1	  	TRAVELING ASSEMBLY	  		  	Included
					
		  		  	 One (1) New Traveling Block assembly complete per the following;
  
 •     One (1) 400 Ton
Traveling Block with five (6) 42” sheaves, sealed bearings grooved for 1-3/8” Drill line
	  		  	
						
		  		  	Manufacture:	  	IDM or Equal	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	TBD	  		  	
					
	 5.
	  	Lot	  	TELESCOPING SUBSTRUCTURE	  		  	Included
					
		  		  	 The Telescoping Substructure is supplied complete per the following:
  
 The hydraulically raised Substructure is supplied complete with a 22’ drill floor with
18’- 4”s of clear working height under rotary beams. The substructure has a casing capacity of 750,000 lb. and setback capacity of 400,000 lb. for a combined setback and rotary capacity of 1,150,000 lb.
  
 The structure is supplied with, checkered floor plate, safety handrails with toe-boards for working
floor and V-door ramp.
  
 BOP Trolley beams to extend to the front of the rig –
under the V-door.
  
 Features:
  
 •     The Drill floor area is
21.5’ x 40’
  
 •     The Independent rotary drive is built into substructure.
  
 Three (3) sets of stairs from working floor, two (2) to the ground and one (1) to the trip tank landing complete with handrails.
  
 One (1) Mousehole to be included for Range II pipe.
  
 One (1) Rathole to be included for Range II pipe.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 One (1) receptacle for customer-supplied iron roughneck.
  
 Est. Substructure Dim.: 40’ long x 12’ wide
  
 Est. Substructure Dim.: 40’ long x 8’ wide
	  		  	
						
		  		  	Manufacture:	  	IDM Equipment	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	QDS-1600-S	  		  	
		  		  	  
 Note: The sub is to be supplied with square tube hand rail wind
wall extensions. The sub is to be supplied with tarp rails and anchors for the Norseman tarp system (customer supplied) for the sub structure.
  
 Note: The diagonal braces in the main sub section are to be designed for forklift removal during rig moves. They cannot be removed until after the sub is loaded on to the
transportation trailer.
  
 Note: The diagonal braces must be installed on the
substructure prior to moving the component. The substructure cannot be moved or loaded or unloaded without the diagonal braces installed and pinned in the transportation position.
	  		  	
					
	 6.
	  	Lot	  	INDEPENDENT ROTARY SYSTEM	  		  	Included
					
		  		  	 New Rotary system complete with drive shaft, universal joints and hardware and one (1) 27.5” Rotary table rigid box-type base
cartridge type pinion shaft assembly with roller bearings turntable locking-dog with selection of permanent lock in both directions. Heat treated spiral bevel gear and pinion precision alloy-steel main table ball bearing and upper thrust ball
bearing, centralized oil and grease lubrication.
  
 Independent rotary drive system
complete with one (1) new 1150/1500hp AC Traction motor. One (1) new 15 hp Blower complete with air ducting to rotary motor.
  
 One (1) Rotary Master Bushing
  
 One (1) Pneumatic Inertia brake system
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 Manufacture:
  
 Country of Origin:
  
 Model
Number:
	  	 IDM (American Block)
  
 US (US Rotary Table)
  
 TBD
	  		  	

											
		  		  	  
 Note: The Rotary drive system (traction motor and drive
assembly) is to be designed for forklift removal.
	  		  	
					
	 7.
	  	Lot	  	CATWALK & V-DOOR	  		  	Included
					
		  		  	The single piece 5’ wide x 18” high x 52’ long Catwalk is supplied complete with a lay down post and the V-Door pipe ramp is 5’ wide complete with two (2) 4”
rail pipes and a 3/8” flat plate on ramp.	  		  	
					
	 8.
	  	Lot	  	PIPE RACKS	  		  	Included
					
		  		  	18” high x 28’ long triangular pipe racks composed of 5” pipe with  3/4” plate legs (12-total).	  		  	
					
	 9.
	  	1	  	HAWKJAW T-REX 6080	  		  	Included
						
		  		  	 Torque:
  
 Tool Joint Size Range:
  
 Spinner Size
Range:
  
 Hydraulic Requirements:
  
 Air Requirements:
  
 Connection Height:
  
 Rotation:
  
 Tilt:
	  	 65,000 Ft/Lbs
  
 3.5” O.D. – 8” O.D.
  
 3.5” O.D.
– 8” O.D.
  
 2,500 PSI @ 2035gpm
  
 100 PSI @ 2 – 10cfm
  
 30 – 60”
  
 270 degrees
  
 +/- 15 degrees
	  		  	
		  		  	  
 The T-Wrex 6080 make-up/break-out system from HAWK Industries is
based upon the proven performance, reliability and safety of the HAWKJAW system, but in a pedestal mounted and remotely operated configuration. Ideally suited for the harsh environments of offshore drilling, as well as land-based applications, the
T-Wrex 6080 is a safe and efficient system that can significantly reduce trip time as well as various other operations.
  
 •     Improved trip time by as much as 40% in most applications
  
 •     Remote console for
remote operation
  
 •     Increased safety and efficiency
  
 •     Preset torque regulator ensures proper make-up torque on each joint
  
 •     Low torque warning system prevents under torqued connections
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 •     Spins and torques in less than 15 seconds in most
applications
  
 •     Fits all pipe sizes within the working range of the tool
  
 •     No jaw or die changes required for different pipe sizes
  
 •     Hydraulically rotated
from mouse hole to rotary
  
 •     Tilt adjustment for mouse hole operations
  
 •     Applications include
  
 •     Coring Running / Pulling

  
 •     Casing
Milling / Cutting
  
 •     Tripping Drill String
  
 •     Workover Trips
  
 •     Sidetrack / Re-entry’s
  
 •     Simultaneous Operations

  
 •     Drill
string components during idle time
  
 •     Initial and additional pickup/ laydown of drill string
  
 •     Logging operations
  
 •     Cementing operations

	  		  	
					
	 10.
	  	1	  	MUD BOAT	  		  	Included
					
		  		  	One (1) Mud Boat complete with a fabricated steel structure, tubing Mast dolly guides, Deadline anchor mount, hydraulic Mast leveling cylinders and support structure, Mast guides and
raising padeyes.	  		  	

											
						
		  		  	Est. Mud boat area:	  	13’ 5-1/2” x 51’-7”	  		  	
						
		  		  	Est. Weight:	  	35,000 lbs.	  		  	
						
		  		  	Manufacture:	  	IDM Equipment	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	QDS-1600MB	  		  	

											
					
	 11.
	  	1	  	DEADLINE ANCHOR	  		  	Included
					
		  		  	 One (1) new deadline anchor for use with 1-1/4” wire rope, 100,000lb. Deadline load.
  
 Note: Deadline Anchor is mounted on the Mud Boat.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 Manufacture:
  
 Country of Origin:
  
 Model
Number:
	  	 Hercules
  
 US
  
 HA-131T
	  		  	
					
	 12.
	  	1	  	HPU SKID ASSEMBLY	  		  	Included
					
		  		  	 The Quicksilver Drilling System has the Rig HPU and Diesel Powered HPU mounted on a 10’ wide x 40’ long oilfield type skid
complete with hitch, high pressure piping, low pressure piping, hydraulically raised integrated grasshopper and lighting fixtures.
  
 Hydraulic Power Unit Package – Rig HPU package complete with 75 HP electric motor hydraulic pump, Cummins Model B3.3T 4-cylinder diesel power unit package
with commercial shearing gear pump, all necessary valves, hoses, fittings, quick disconnects and 40-gallon fuel tank with bank valve for substructure/mast and driller’s cabin elevation. Package to include one (1) 1200 gallon reservoir tank.

  
 Note: The HPU system is to be supplied with Low Temperature service hydraulic fluid.

  
 Retractable Cable Tray – One (1) QDS retractable cable tray mounted on
the HPU skid assembly complete with all the necessary power and control cables, hoses, fittings, quick disconnects and connectors. This retractable cable tray is designed to accommodate skidding the QDS 100’ from the initial well
location.
	  		  	
					
	 13.
	  	1	  	STANDPIPE ASSEMBLY	  		  	Included
					
		  		  	New 5” single standpipe assembly with clamps installed on off-driller’s side to including welded on type unions with schedule XXH piping.	  		  	
					
	 14.
	  	1	  	STANDPIPE MANIFOLD ASSEMBLY	  		  	Included
					
		  		  	New 5”, 5,000 lb. W.P. standpipe manifold assembly with connections for one (1) 2”, 5000psi pressure gauge, one (1) 2”, 5000psi kill/fill line and two (2) 2”
welded connections for mud pump sensors. Welded type unions, Demco valves and schedule XXH piping to be utilized.	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

	 15.
	  	1	  	STANDPIPE LINE	  		  	Included
					
		  		  	New 5”, 5000psi standpipe line running from manifold to bottom of substructure. Single line comprised of 1002 5000psi unions.	  		  	
					
	 16.
	  	1	  	KILL LINE KIT	  		  	Included
					
		  		  	One (1) 2-10M manual valve and one (1) 2-10M kill line hose to run from the standpipe manifold to the stack.	  		  	
					
	 17.
	  	1	  	FLOW LINE	  		  	Included
					
		  		  	 Bell Nipple, 10” Flowline from the bell nipple to the shaker and the kill line kit assembly complete.
  
 Note: The flowline is to include an air drilling bypass. The flow line is to be provided capable of
drilling five wells on 20’ centers.
	  		  	
					
		  		  	TOTAL SECTION 1	  		  	$  3,932,820.50

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	SECTION (2)	  		  	
					
		  		  	HIGH PRESSURE MUD SYSTEM & ACCESSORIES	  		  	$  1,329,566.15
					
		  		  	HP Mud System and accessories is to be supplied per the following;	  		  	
					
	 1.
	  	2	  	MUD PUMP	  		  	Included
					
		  		  	 New single acting 1600hp slush pump complete with the following;
  
 Fully enclosed fabricated steel power end, double extended pinion shaft, self-aligning spherical
main and pinion shaft bearings, roller bearings at crank and crosshead end of connecting rods, shim-adjustable and replaceable crosshead guide, oil-bath and positive flow lubrication systems, electric motor-driven, external circulating lube oil pump
and filter with ac motor, oil gauge and associated piping. Fluid-end module’s, suction and discharge manifolds liner flushing pump and reservoir includes AC electric motor, piping, manifold and hose. Companion flange for suction manifold
8” suction strainer.
	  		  	
						
		  		  	Manufacture:	  	TBD	  		  	
						
		  		  	Country of Origin:	  	China	  		  	
						
		  		  	Model Number:	  	TBD	  		  	
					
	 2.
	  	2	  	PUMP SKID UNITIZATION	  		  	Included
					
		  		  	 Mud Pump unitization complete per the following;
  
 Structural steel three-runner skid and one (1) belt drive assembly with guard and drive sheaves. Structural steel motor sub-base with one (1) adjustable motor base
plate’s all mounted on master skid. One (1) removable roof complete with lighting and integrated cable system.
	  		  	
						
		  		  	Manufacture:	  	IDM Equipment	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	N/A	  		  	
		  		  	  
 Note: Tarp rails are to be mounted on the roof and skid on the
exterior wall areas based on the location layout.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

	 3.
	  	2	  	SUPERCHARGING PUMP	  		  	Included
					
		  		  	 Supercharging pump assembly complete;
  
 5 x 6 x 11 centrifugal Mission Magnum pump with mechanical seal mounted on an oilfield base type skid with coupling, OSHA compliant coupling guard and 40 hp, 1200 rpm,
480 volt, 3-phase, 60hz AC motor.
  
	  		  	
						
		  		  	Manufacture:	  	TBD	  		  	
						
		  		  	Country of Origin:	  	TBD	  		  	
						
		  		  	Model Number:	  	TBD	  		  	
					
	 4.
	  	lot	  	SUCTION SYSTEM	  		  	Included
					
		  		  	 New Suction system complete for two (2) pumps as follows:
  
 Mount two (2) charging pumps on existing mud pump skid extension. Provide two (2) 8” suction
lines from suction valves in mix tank, strainer, suction dampner and suction tank to the mud pumps utilizing hoses to suction manifold. Provide suction connection for supercharger pumps from suction lines. Manifold supercharger pump discharge for
charging triplex pump.
  
 Note: Hoses are to be used between the suction piping on the
suction tank and the mud pump skid suction piping.
	  		  	
					
	 5.
	  	2	  	DRIVE MOTORS ASSEMBLIES	  		  	Included
					
		  		  	Electric motor drive assemblies complete with one (1) new AC 1500/1830hp traction motor per Mud Pump. Motor to include one (1) 20 hp blower, junction box.	  		  	
						
		  		  	Manufacture:	  	TBD	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	TBD	  		  	
					
	 6.
	  	2	  	PULSATION DAMPNER	  		  	Included
					
		  		  	 New Pulsation Dampner per the following;
  
 5000psi maximum service pressure, 20-gallons surge capacity, 4” API 5000 ring joint connection.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	Manufacture:	  	TBD	  		  	
						
		  		  	Country of Origin:	  	China	  		  	
						
		  		  	Model Number:	  	TBD	  		  	
					
	 7.
	  	2	  	RELIEF VALVE	  		  	Included
					
		  		  	3” relief valve, manual reset type, 1500-6000psi with welded connections.	  		  	
						
		  		  	Manufacture:	  	NOV	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	TBD	  		  	
					
	 8.
	  	2	  	PRESSURE GAUGE	  		  	Included
					
		  		  	Pressure gauge, 0-6,000psi range with 2” line flanged connection.	  		  	
					
	 9.
	  	2	  	STRAINER ASSEMBLY	  		  	Included
					
		  		  	Strainer assembly 5” API 5000 lb. Studded outlets.	  		  	
					
	 10.
	  	1	  	HIGH PRESSURE MUD SYSTEM	  		  	Included
					
		  		  	 One (1) 5”, 5,000psi WP high pressure mud delivery system for two (2) mud pumps as follows:
  
 Provide one (1) 5” schedule XXH lines complete with hammer unions at break points from bottom
of substructure to mud pumps via vibrator hoses.
  
 Note: All hammer unions are to be of
US manufacture.
	  		  	
					
	 11.
	  	3	  	VIBRATOR HOSES	  		  	Included
					
		  		  	4” ID, two (2) 12’ and one (1) 20’, 5000 lb. working pressure with 5” API connections for connection of mud pumps to above high pressure mud lines.	  		  	
					
		  		  	TOTAL SECTION 2, MUD PUMPS	  		  	$  1,329,566.15

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	SECTION (3)	  		  	
					
	 1.
	  	1	  	IDM POWER & AC CONTROL SYSTEM	  		  	$  3,788,862.35
					
		  		  	 New IDM model 2400 AC system designed to the following;
  
 •     The Control System is
designed to API RP 500.
	  		  	
					
	 2.
	  	1	  	IDM AC VFD CONTROL SYSTEM	  		  	Included
					
		  		  	 New IDM Power/Control House Skid: Model CH-VFD-3A3210 Model VFD3A3211 system is designed to operate the following major equipment:

  
 •     Three (3)
Caterpillar D-3512C SCAC diesel electric land engine rated at 1476hp @ 1200rpm;1365kw 1950KVA 600 volt, 60 hertz generators
  
 •     One (1) 1600 HP Drawworks (DW) with one (1) 1500/1830 HP AC Traction Motors
  
 •     27.5 Rotary Table(RT),
800HP with one (1) 1150HP AC Traction Motor
  
 •     Top Drive (TD), 800HP with one (1) 1150HP AC Traction Motor
  
 •     Two (2) Mud Pumps 1600hp MP with one (1) 1500/1830hp AC traction motor each
  
 One (1) approximately 12’ wide x 11’6” high Power/Control House with plug panels and
two (2) 10-ton air conditioning system is installed on a oilfield type skid. The following are either housed within the Power/Control House or installed on the skid:
  
 Three (3) Generator Cubicles
  
 -        Ground Fault Detection System
  
 -        Diesel
Engine Battery System
  
 -        Power Limit Circuit
  
 -        Woodward Generator control modules
  
 Two (2) 3600A Three Phase Diode Converters
  
 Two (2)
1200HP (Dual 600HP) Variable Frequency Drives, 4 Quadrant PWM Inverter for TD and RT.
  
 Three (3) 1600HP (Dual 800HP) Variable Frequency Drives, 4 Quadrant PWM Inverter for DW, MP1 & MP2.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 One (1) PLC Cabinet and one (1) HMI station with Communications Interface between the VFD Control House and Driller’s
Cabin
  
 600 VAC Distribution
  
 -        One (1)
600:480 1000 KVA Transformer Feeder Breaker
  
 -        One (1) 480:220 112.5KVA Transformer Feeder Breaker
  
 480 VAC Distribution
  
 -        11 (11) Sections of 480VAC Motor Control Center (MCC)
  
 Intercom Federal Signal 310XMV Audio Master, units are to be mounted in the Driller Cabin, Racking Board and the Control house.
  
 All lighting is to be 220V.
  
 Note: The Top Drive (TD) power and control cables and connectors are to be supplied from the control house to drillers cabin and TD Junction box at the drill floor.
	  		  	
						
		  		  	Manufacture:	  	IDM Equipment	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	Model CH-VFD-3A2310	  		  	
					
	 3.
	  	1	  	DRILLERS CABIN/PARTS ROOM	  		  	Included
					
		  		  	 12’ wide x 27’ long x 7’ clear ceiling height with 3’ porch on one (1) end. Driller’s cabin walls are
fabricated of 12-gauge insulated panels and the crimp wall parts room is open to the drill floor.
  
 Drillers Cabin House includes:
  
 Two
(2) personnel doors
  
 One (1) side walkway
  
 One (1) air conditioner/heater
  
 Three (3) interior lights
  
 One (1) set fixed glass windows
  
 Parts Room includes:
  

One (1) set of shelves
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 One (1) work bench
  
 Two (2) interior lights
  
 Two (2) 220 outlets
  
 Driller’s cabin/Tool room is to be unitized with master skid and will be elevated to drill floor height by hydraulic cylinders.
  
 10’ wide x 50’ long raising skid to accommodate driller’s cabin, parts room and the BOP Accumulator.
  
 Controls and indicators located on the operation consoles include:
  
 Three (3) Hand Throttles:
  
 1.      Mud Pump 1

 
 2.      Mud Pump
2
  
 3.      Rotary
Table
  
 4.      Drawworks
  
 One (1) Joystick for
Drawworks
  
 Seven (7) Selector Switches
  
 1.      Mud Pump 1 “ON
– OFF”
  
 2.      Mud Pump 2 “ON – OFF”
  
 3.      Drawworks “ON – OFF”
  
 4.      Rotary Table
“Reverse-Off-Forward”
  
 5.      Rotary Table Brake “ON-OFF”
  
 6.      Drawworks “Slow-Normal”
  
 7.      Drawworks Hydraulic
Brake “Park-Auto”
  
 Two (2) Analog Gauges:
  
 1.      Hook Load

 
 2.      Rotary
Torque
  
 One (1) Potentiometer for Rotary Table Torque Limit
  
 One (1) Momentary Pushbutton for “Drawworks Limit Override”
  
 Two (2) Pushbuttons:
  

1.      Rig HPU “Start-Stop & ON light”
  
 2.      Trip tank
“Start-Stop & ON light”
  
 Two (2) Emergency Shutdown
pushbuttons:
  
 1.      Power/Control House emergency shutdown (VFD’s Shutdown)
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 2.      Drawworks emergency shutdown (Drawworks VFD
Shutdown)
  
 Controls and Displays provided by the PLC/HIM system:
  
 One (1) Siemens S7-300 PLC system contains the following:
  
 •     CPU module
  
 •     I/O modules

 
 •     Communication modules

  
 •     Interfaces to all the control system components
  
 Software design, configuration and programming of PLC and HMI
  
 Two (2) HMI stations with touch screens will provide controls, status monitoring, data acquisition
and management for the followings:
  
 1.      Drawworks
  
 2.      Mud pumps
  
 3.      Auto driller
  
 4.      Crown floor
stops
  
 5.      Rotary table
  
 6.      Drives
  
 7.      Top drive (optional)
  
 8.      Alarms/shutdowns
  
 9.      System data

 
 The indicators and controls displayed on the HMI screen will include:
  
 1.      Generators

 
 a.      Run /
Stop
  
 b.      Online / Offline
  
 c.      KW, KVA, VOLTS, HZ
  
 d.      RUN TIME
  
 2.      Mud Pumps
  

a.      Digital/Analog control
  
 b.      Pump pressure max set
point
  
 c.      Strokes set point
  
 d.      On/off status
  
 e.      Make Connection Pause
  
 3.      Drawworks

 
 a.      Crown Floor Stops

	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 b.      Block Position
  
 c.      HI/LOW
speed
  
 d.      Park Brake
  
 e.      Power Limit
  
 4.      Auto Driller
  
 a.      Weight on
Bit
  
 b.      Rate
of Penetration
  
 c.      Hook load
  
 5.      Rotary Table
  
 a.      Torque Set point
  
 b.      Actual
Torque
  
 c.      Speed (RPM)
  
 d.      Automatic Torque Release
  
 e.      Park Brake
  

6.      Drives
  

a.      On/off status
  
 b.      MAX RPM
  
 c.      Actual rpm

 
 d.      Voltage

 
 e.      Current

 
 f.       KW

 
 g.      Torque

 
 7.      Alarms

 
 a.      Drive
lockouts
  
 b.      Motor Overtemp
  
 c.      Blower / Auxiliary Equipment Fault
  
 d.      Crown Floor Exceeded
  
 e.      Bearing oil Pressure
Failure
  
 f.       Brake Limit Switch Fault
  
 g.      Over speed Fault
  
 Electronic/Auto Driller:
  
 One (1) IDM Electronic Driller controls the drilling
operation by utilizing the regenerative ability of the AC Drawworks. The electronic driller provides weight on bit (WOB), rate of penetration (ROP), Rotary torque control and monitoring.
	  		  	
						
		  		  	 Manufacture:
	  	 IDM Equipment
	  		  	
						
		  		  	 Country of Origin:
	  	 US
	  		  	
						
		  		  	 Model Number:
	  	 Model DC-1608D-A210
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

	4.	  	3	  	DIESEL ENGINES	  		  	Included
					
		  		  	 New Caterpillar D-3512C SCAC diesel electric land engine rated at 1476hp @ 1200rpm;
  
 Air inlet system
  
 Aftercooler core, corrosion resistant air cleaner, heavy dessert duty, with soot filter service
indicators
  
 Control system
  
 Caterpillar ADEM II electronic engine control left hand
  
 Radiator cooled land based:
  
 Outlet controlled thermostat and housing jacket water pump gear driven dual outlet Aftercooler fresh
water cooling pump (SCAC), gear driven centrifugal SCAC pump circuit contains a thermostat to keep the aftercooler coolant from falling below 30 deg c (85 f). 
  
 Exhaust system
  
 Exhaust fittings, flexible, 203 mm (8 in) Exhaust flange, weldable, 356 mm (12 in) Exhaust manifolds, dry Dual turbochargers with watercooled bearings
  
 Flywheels and flywheel housings
  
 Flywheel, SAE no. 00 flywheel housing, SAE no. 00 SAE standard rotation
  
 Fuel system
  

Fuel filter fuel transfer pump flexible fuel lines fuel priming pump, left hand electronically controlled unit injectors
  
 Instrumentation
  
 Electronic instrument panel, left hand analog gauges with digital display data for:
 Engine oil pressure gauge engine water temperature gauge fuel pressure gauge
  
 System DC voltage gauge air inlet restriction gauge exhaust temperature (prior to turbochargers) gauge fuel filter differential pressure gauge oil filter
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 differential pressure gauge service meter (digital display only) tachometer (digital display only) instantaneous fuel consumption
(digital display only) total fuel consumed (digital display only) engine start-stop (off, auto start, manual start, cool down timer)
  
 Lube system
  
 Crankcase breather oil cooler oil filter shallow oil pan oil pan drain valve, 2” npt female connection lubricating oil, SAE 10w30, caterpillar DEO (cg4) 643 l.
  
 Mounting system
  
 Rails, mounting, floor type, 254 mm (10 in)
  
 Power take-offs
  
 Accessory drives upper right hand, lower left hand front (available for PTO usage)
 front housing, two-sided
  
 Protection system
  
 ADEM II monitoring system
provides engine de-ration, alarm, or shutdown strategies protect against adverse operating conditions. Selected parameters are customer programmable. Status available on engine mounted instrument panel and can be broadcast through the optional
customer communications module or programmable relay control modules (s). initially set as
 follows:
  
 Safety shutoff protection, electrical: oil pressure, water temperature, overspeed, crankcase
pressure, aftercooler temperature. includes air inlet shutoff, activated on overspeed or emergency stop. alarms, electrical: ECM voltage, oil pressure, water temperature (low and high), overspeed, crankcase pressure, aftercooler temperature, low
water level (sensor is optional attachment), air inlet restriction, exhaust stack temperature, filter differential pressure (oil and fuel). Derate, electrical: high water temperature, crankcase pressure, aftercooler temperature, air inlet
restriction, altitude, exhaust temperature. emergency stop push button, located on instrument panel.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 Starting system
  
 Air starting motor, right hand, 620 to 1034 kpa (90 to 150 psi), left hand control
 air silencer 12” low profile muffler attached to underside of roof with exhaust piping. Muffler and exhaust piping will be covered with a heat resistant blanket.
  
 Pony skid and hardware for mounting of engine and generator
  
 Radiator
  
 Radiator has two circuit cooling for engine jacket water and aftercooler. Includes:
  
 The 50hp independently driven reversible blower fan designed to exhaust the heat in the summer and pull it in during the winter. The unit is supplied complete with fan
drive assembly, fan pulleys, belt guard and fan guard.
  
 Water connections, core guard
and fuel cooler.
  
 Note: This radiator with no coolant is good for 122 deg. F (50 deg.
C) ambient
  
 Air silencer
  
 12” low profile Hospital grade muffler attached to underside of roof with exhaust piping.
Muffler and exhaust piping will be covered with a heat resistant blanket.
	  		  	
						
		  		  	Manufacture:	  	Caterpillar	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	3512C	  		  	
						
	5.	  	3	  	GENERATORS	  		  		  	Included
					
		  		  	867 Frame, 2 Bearing, 1750 KVA, 1,225 KW, 600 volt, .7 PF, form wound with class H insulation, 1200 RPM, Includes: Space heater, Bus bar and cable extension box.	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	TOTAL PRICE
		  		  	Manufacture:	  	Caterpillar	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	SR4	  		  	
					
	6.	  	3	  	MOTOR GENERATOR SKID UNITIZATION	  		  	Included
					
		  		  	 Oilfield type skid assemblies complete to accommodate the engine generator to include the following;
  
 Oilfield skid base, 18” wide flange, primary runners with 6” pipe ends oil field type hitch
at each end with integrated step, 10’ wide x 31’-6” long roof (curved design) access ladder to roof fuel and air piping with unions for connection of the engines and between skids.
	  		  	
						
		  		  	Est. Dimensions:	  	10’ wide x 40’	  		  	
						
		  		  	Manufacture:	  	IDM Equipment	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	TBD	  		  	
		  		  	  
 Note: The skid assemblies are to be supplied complete with doors
between the radiators and with tarp rails on the exterior walls on the roof and skid on third engine.
	  		  	
					
	7.	  	2	  	COMPRESSOR	  		  	Included
					
		  		  	 Sullair 1809 compressor, Rotary Screw compressor complete per the following:
  
 •     25 hp
  
 •     Capacities from 106 acfm

  
 •     Pressures
from 125 psig
  
 •     Insulated intake and exhaust louvers
  
 •     High efficiency centrifugal Fan
	  		  	
					
	8.	  	1	  	AIR DRYER	  		  	Included
					
		  		  	One (1) new Gardner Denver RNC-125 or equal refrigerated air dryer.	  		  	
					
	9.	  	1	  	COLD START	  		  	Included
					
		  		  	One (1) Gardner Denver HDRS-3 cold start complete with 9hp Lombardini Diesel, 16.5 CFM @ 125psig.	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

	10.	  	2	  	AIR RECEIVER	  		  	Included
					
		  		  	New Air receiver, 240 gallon with pressure relief valve, gauge and piping.	  		  	
					
		  		  	TOTAL SECTION 3, ELECTRICAL SYSTEM	  		  	$  3,788,862.35

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	SECTION (4)	  		  	
					
	1.	  	Lot	  	LOW PRESSURE MUD SYSTEM	  		  	$  1,314,615.38
					
		  		  	 Low Pressure Mud System complete with Two (2) round bottom tanks, one (1) self elevating equipment skid and a total capacity of
approximately 1000bbls, tank general construction as follows;
  
 Two (2) 10’ wide x
50’ long x 10’ high with solid removable deck (Mud Cleaning & Suction Tank), one. Deck to come with hinged man-ways in each compartment, fold-over handrails with built-in handrail toe plate, drain outlets, gated mud ditch for easy
clean-out. Each skid to be 3-runner, 8’ wide x 50’ long. Triple Linear Motion Shakers, Degasser and Desilter to be mounted on top of a self elevating skid. The self elevating Mud Cleaning equipment skid assembly is to have hinged hand
rails. All piping will run on the outside of tanks, within the equipment skid or within 6” of the mud rim. The tank clean-out lines shall manifold together into one (1) pipe for draining fluids into waste pit with fittings down the back of the
mud tanks. All agitators will be set inside sump boxes with telescoping light poles and hinged starter mounting arms. Each tank is to be constructed with round bottoms to eliminate the need for mud guns and to reduce settling.
	  		  	
						
		  		  	Manufacture:	  	IDM Equipment	  		  	
						
		  		  	Country of Origin:	  	US	  		  	
						
		  		  	Model Number:	  	TBD	  		  	
					
		  		  	Note: The pump porches are to be supplied with tarp rails.	  		  	
					
	2.	  	1	  	SELF ELEVATING EQUIPMENT SKID	  		  	Included
					
		  		  	 All equipment, Shakers, Desilter and Degasser are mounted on the self elevating equipment skid. The shaker sump aligns and feeds into
the mud ditch on the cleaning tank. This skid assembly is supplied complete with the following;
  
 •     Three (3) linear motion shale shaker utilizing Three (3) Four (4) panel linear motion screen
decks on a common skid.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 •     One (1) 1000gpm Vertical Vacuum Degasser supplied and
installed.
  
 •     One (1) 16-cone Desilter supplied and installed.
  
 •     One (1) water connection to Desilter trough
  
 •     Three (3) shaker slides

	  		  	
					
	3.	  	1	  	MUD CLEANING TANK	  		  	Included
					
		  		  	 Mud Cleaning Tank compartments as follows:
  
 •     Approximately 46 bbls. Sand Trap Compartment
  
 •     Approximately 89 bbls.
Settling. compartment
  
 •     Approximately 89 bbls. Degas. compartment
  
 •     Approximately 89 bbls. Desilt. compartment
  
 •     Approximately 89 bbls.
Centrifuge. compartment
  
 •     Approximately 89 bbls. Active. compartment
  
 The Mud cleaning tank is comprised of five (5) full partitions with top equalizing in between the # 1, 2 & 3 and bottom equalizing valves between # 3, 4, 5, 6 with a header box that allows transfer from the Suction tank to the Mud
Cleaning tank. The tank porch is designed to accommodate desilter/desander pump and the Degasser pump is mounted on the item # 2 the self elevating equipment skid, one (1) 1” diameter x 25’ long valved water wash-down hose, 16” x
18” mud ditch with dump gate to each compartment,
  
 •     Three (3) 8” butterfly valve clean-out gates
  
 •     Two (2) 6 x 8 x 14 belt driven Centrifugal pumps with 14” impellers, mechanical seals
each powered by a 75 hp, 480 volt, 3-phase, 60 hertz AC motor mounted and mounted on tank porch.
  
 •     One (1) 10” ditch connection to suction tank.
  
 •     One (1) 6” mud mix
line connection to suction tank.
  
 •     One (1) water line connection to suction tank.
  
 •     Two (2) 2” water inlets complete with butterfly valves for filling tank compartments.

  
 •     Five (5)
IDM equipment 10 hp agitators walkway around shakers complete with handrails.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

	4.	  	1	  	SUCTION TANK	  		  	Included
					
		  		  	 Suction Tank compartments as follows:
  
 •     Approximately 85 bbls. Pill compartment
  
 •     Two (2) Approx. 194
bbls. Suction compartment
  
 The Suction tank is comprised of two (2) full partition with
equalizer valve, porch to accommodate mud mixing and circulation pump, one (1) 1” diameter x 25’ long valved water wash-down hose,
  
 •     Two (2) full partition with top equalizing on the two suction compartments
  
 •     Two (2) belt driven 6 x
8 x 14 Centrifugal pumps one (1) transfer and one (1) mixing with 14” impeller, mechanical seals, powered by a 75 hp, 1800 rpm, 480 volt, 3-phase, 60hz motor
  
 •     Three (3) IDM equipment 10 hp agitators
  
 •     Three (3) 8”
butterfly valve clean-out gates
  
 •     Four (4) 6” butterfly suction valves, two (2) in each compartment for mixing system
  
 •     Two (2) 2” water inlets complete with butterfly valves for filling tank compartments.

  
 •     Four (4)
8” butterfly suction valves, two (2) in each compartment for suction system
  
 •     One (1) Caustic Barrel assembly
  
 •     Two (2) combination
shower and eye wash stations
  
 Manifolding is designed to suck or discharge from the
suction compartment or the pill compartment with either the mixing or transfer centrifugal pump. It is also designed to mix two separate components in separate compartments simultaneously.
	  		  	
					
	5.	  	1	  	MUD MIXING SKID	  		  	Included
					
		  		  	 Mud Mixing skid to include the following equipment:
  
 One (1) two (2) runner 10’ wide by 20’ long Mud Mixing skid complete with oilfield type hitch each end, lighting and roof;
  
 •     Two (2) 6” hopper
complete with sack table
  
 Note: The skid is to be supplied complete with tarp rails on
the exterior walls.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

	6.	  	1	  	GAS CONTROL & TRIP TANK SKID	  		  	Included
					
		  		  	 Oilfield type skid combination to include the Mud Gas Separator, Choke & Kill Manifold and the trip tanks to be comprised of the
following;
  
 Stand landing for access to the top of the Mud tanks from either the ground
or the Drill floor.
  
 Trip Tank
  
 One (1) approximately 100 bbls. trip tank complete with one (1) 3x2 centrifugal pump with mechanical
seal powered by a 25 hp, 1800 rpm, 480 volt, 3-phase, 60 HZ AC motors and provisions for remote start/stop from drill floor.
  
 Mud Gas Separator
  
 One (1) 1200gpm mud gas separator, 48” diameter and 120” measured vertically from one (1) head seam weld to the other head seam weld. Inlet to be 6” diameter, outlet to be 8” diameter, vent line to
be 8” diameter and inspection hatch to be 20” diameter. Separator to be mounted on a framework that allows the separator to lay over during transportation and telescopes to raise the mud gas separator to the operating vertical position
providing 10’ of liquid seal. Unit also includes integrated piping to choke manifold.
  
 Choke & Kill Manifold
  
 One (1) dual choke 3-10 x 4-10M manifold with
one (1) manual and one (1) Swaco style hydraulic choke complete with remote per IDM Equipments standard design.
	  		  	
					
		  		  	TOTAL SECTION 4, LP MUD SYSTEM	  		  	$  1,314,615.38

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	SECTION (5)	  		  	
					
		  		  	HOUSES, TANKS & MISCELLANEOUS EQUIPMENT	  		  	$  1,006,331.76
					
		  		  	System equipment, Houses and Tanks complete per the following;	  		  	
					
	1.	  	1	  	BOP CONTROL SYSTEM	  		  	Included
					
		  		  	 1 Only – 337.5 Gallon Fluid Reservoir, Complete With Baffles, (4) Inspection - Clean Out Ports, Sight Glass, Vent, And Mounted On
A Heavy Duty Structural Steel Skid (Checker Plated Accordingly)
  
 Skid Dimensions:
60” Width X 121” Length
  
 Tank Dimensions: 18” Wide X 120” Long X
36” High
  
 12 Only – (11) Gallon, 3000 Psi. W.P. Separator (Bladder Type ) Top
Load Accumulators. The Accumulator Shell Is Manufactured From A Single –Piece Of Chrome Moly Steel And Is Free From Joints, Seams Or Welds. The Top Load Design Permits Field Repair Without Voiding The Certification. The Vessel Meets U.S.C.G.
And A.P.I. And Other Agency Requirements. It Is A.S.M.E. Certified And May Be Certified By Other Agencies When Requested At Time Of Order
  
 2 Only – 4  1/2” O.D.
Accumulator Manifolds. This Is Seamless Pipe With All Welds Being 100% Penetration And Meets Requirements To 4500 Psi. W.P. These Manifolds Are Equipped With An Isolation Valve On One End And Are Free Standing Units, Separate From The Main Skid Unit

  
 1 Only – Positive Displacement Reciprocating Tri-Plex 1” Plunger
Pumps ( 11.4 Gpm. @ 3000 Psi. ) With 1  1/2” Suction Line, Y-Strainer, 1” X 5000 Psi. Discharge Check
Valve And ( 1 ) Pulsation Dampners
  
 1 Only – Polychain And Sprocket Drive
Assembly
  
 1 Only – 25 H.P. Motor, 3 – Phase, 480 Voltage.
  
 1 Only – Barksdale Pressure Switch
  
 1 Only – Starter Box Assembly ( Manual – Off – Auto ) Spring Return In Manual Position

	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 2 Only – 8  1/2”, 40:1 Pneumatic Pumps With All Isolation Valves, Check Valves And By-Pass Valves ( 10 Gpm @ 1500 Psi. Total )
  
 1 Only – Hydro-Pneumatic Pressure Switch With All Necessary Fittings
  
 1 Only – 1” Filter, Lubricator, Regulator Assembly
  
 1 Only – 1” ( 5 ) Station, Hydraulic Manifold, 5 - Station Option
  
 1 Only 1” – Annular Manifold
  
 5 Only – 1” ( 4 ) Way, Stainless Steel Fitted, Rotary Shear Seal “Selector” Hydraulic Valves
  
 1 Only - 1” Annular ( 4 ) Way, Stainless Steel Fitted, Rotary Shear Seal “Selector” Hydraulic Valve
  
 1 Only – 1” ( 4 ) Way, Stainless Steel Fitted, Rotary Shear Seal “By-Pass”
Hydraulic Valve
  
 1 Only – 3/4” Full-Flow, Manual Regulator, Stainless Steel
Fitted
  
 1 Only – 3/4” Hydraulically Controlled Full-Flow Annular Regulator,
Stainless Steel Fitted, Fail-Safe Design
  
 6 Only – Hydraulic Actuators And Mounting
Brackets
  
 4 Only – 4” Liquid Filled, Panel Mount Gauges Installed In A
Protective Panel ( Accumulator, Manifold, Annular And Rig Air )
  
 1 Only –  3/4” X 3300 Psi. Relief Valve, Self Re-Setting
  
 2 Only – 1/2” X 10,000 Psi. Bleed-Off Valve
  
 1 Only – Weather-Proof Main Hydraulic “Plc” Panel
  
 1 Only – Weather-Proof Plc Cabinet
  
 4 Only – Nitrogen Back-Up Bottles, 2500 Psi, 50 Litre, With Free Standing Mounting
Rack
  
 2 Only – Operation / Parts Manuals
  
 1 Only – Charging And Gauging Assemblies With Top Load Extension
  
 Remote Panel: Class-I, Division-Ii
  
 1 Only - Stainless Steel Enclosure With Complete Color Touch Screen, Class-I, Division-Ii, With
Pressure Read-Outs In Psi & Kpa ( Accumulator, Manifold, Annular And Rig Air )
  
 Annular Increase / Decrease Controls
  
 No By-Pass Controls On Panel

 
 1 Only - “Hold To Operate” Button
  
 1 Only - “Motor Run” Lighted Indication
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 1 Only – “Lamp Test” Push Button
  
 1 Only – Shear Ram Activation Visual Alarm
  
 Custom Programming On Touch Screen
  
 132 Gallon, 6 – Station, Hydraulic Actuation With Plc Remote Controls ( Class-I, Division-Ii ):
  
 Note: The closing unit is to be mounted on the drillers cabin skid assembly complete in an enclosure with lighting.
	  		  	
					
	2.	  	1	  	TOOL HOUSE SKID ASSEMBLY	  		  	Included
					
		  		  	10’ wide x (TBD based on the retractable cable tray requirement) long three-runner oilfield type skid with loading hitches containing a parts room complete with lighting, two
(2) sliding doors open shelving, plug panel and work bench.	  		  	
					
	3.	  	1	  	DRILL WATER TANK	  		  	Included
					
		  		  	 One (1) Square 500 bbl. water tank with 3” water line to suction tank. One (1) approximately 5’ porch containing two (2) 2 x
3 x 2.5 centrifugal pumps each powered by a 25 hp, 1800 rpm, 480 volts, 3-phase, 60hz AC motor.
  
 Note: The pump porch is to be enclosed complete with lighting.
	  		  	
					
	4.	  	1	  	DIESEL FUEL TANK	  		  	Included
					
		  		  	500 bbl. Cylindrical Diesel tank complete with integrated Lubester and porch extension containing two (2) Roper AMD 27 pumps each with 3 hp, 1800 rpm, 480 volt, 3-phase, 60hz ac
motor. Unit is designed with recovery system on the pump manifold porch, local start/stop and filter.	  		  	
					
	5.	  	2	  	HYDRAULIC WINCH	  		  	Included
					
		  		  	PD-12 C handling hoist with safety features mounted. Planetary type hydraulic winch, power in and power out. Automatic fail safe brake, winch controls, includes all piping for the
handling winch and Block in Mast, 9/16” wireline, 335’ wireline capacity, maximum pull 8300# means and 12000# bare drum.	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

	6.	  	1	  	MANRIDER HYDRAULIC WINCH	  		  	Included
					
		  		  	BGRA hoist with safety features mounted. Planetary type hydraulic winch, power in and power out. Automatic fail safe brake, winch controls, includes all piping for the handling
winch and Block in Mast	  		  	
					
	7.	  	1	  	WIRELINE UNIT	  		  	Included
					
		  		  	 One (1) Tulsa Power Wireline Unit complete per the following;
  
 This single drum wireline unit can be deployed for running and retrieving down-hole tools, performing
light duty wireline and fishing operations. Compact, lightweight, low maintenance yet fully functional unit housed in a robust frame with control console. A counter head assembly is mounted at the front of unit. Integral forklift pockets and single
point lift is provided for ease of crane handling. This ergonomically designed unit with all controls and an unrestricted view of action on the rig floor for the operator is ideally suited for small footprint and lightweight needs. This unit
operates off of rig hydraulics.
  
 Construction:
  
 •     Lightweight yet sturdy
construction.
  
 •     Single lift frame and forklift pockets.
  
 •     Skid base has provision for easy mounting on drill floor.
  
 •     Guards on all rotating
parts.
  
 Drawworks Area:
  
 •     Drum capacity: 20,000
feet of 0.092” wireline
  
 •     Hydraulic transmission and heavy duty hydraulic motor
  
 •     High performance dual drum brake.
  
 •     A traverse, chain driven
from a hand wheel on control panel is included in the prices quoted.
  
 •     Drum and draw works frame of steel construction.
  
 •     Guard around front and back of drum.
  
 •     Our design allows for
freewheeling.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 Electric Motor & Hydraulic Circuit:
  
 •     An explosion proof motor with start/stop station drives a hydraulic pump. The hydraulic motor
is coupled to a gearbox. Hydraulic system is rated for 2500psi operating pressure. Hydraulic system pressure gauge is a part of the system.
  
 •     Levelwind Features and Counterhead System:
  
 •     An automatic level
wind assembly c/w depth-measuring device (Counter- included) allows the incoming line to be wound evenly on the reel. Linear bearings on shafts support the remote readout depth-measuring device. The depth counter is at the operator’s console.
Please specify English / Metric system at the time of order placement.
  
 •     Counterhead is fitted to traverse in front of drum area
  
 •     Conventional, long service life measurer
  
 •     Imperial measurement
available Automatic, hands free traversing feature provided.
  
 •     Depth Counter and Manual levelwind included
  
 •     Tension Type Weight Indicator System (Optional):
  
 •     Martin Decker OR
equivalent 0-2000 lb. weight indicator c/w load cells, 50 ft. hose, hydraulic oil and other accessories.
  
 •     Control panel mounted 0 - 2,000 Lbs weight indicator gauge
  
 •     Hydraulic tension load
cell
  
 •     Provided with 50 feet of hydraulic hook up hose
  
 •     Hose and load cell storage near front of drum area
  
 •     Operators Control Area:

  
 •     Operator’s control panel includes the following controls:
  
 •     Drum direction, control lever, and speed control valve.
  
 •     Mechanical brake lever
for drum.
  
 •     Levelwind hand wheel for spooling
  
 •     Hydraulic pressure gauge
  
 •     Transmission shift lever
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

	8.	  	1	  	CAMP TRANSFORMER	  		  	Included
					
		  		  	 New 112 kva, 480:220 volt camp Transformer mounted on skid complete with distribution box containing one (1) main breaker box and six
(6) 100 amp receptacles to feed six (6) trailers.
  
 Transformer to receive power from
the VFD house via one (1) run of cable from VFD Control house to transformer incoming power box.
	  		  	
					
	9.	  	1	  	ROTARY HOSE	  		  	Included
					
		  		  	4” ID x approximately 75’ (75’ if the Top Drive is selected), 5000 lb. working pressure coupled with 3-1/2” and 5” API connections.	  		  	
					
	10.	  	Lot	  	ACCUMULATOR HOSE	  		  	Included
					
		  		  	 BOP hydraulic control line hose connections.
  
 Eight (8) 1” and two (2) 1-1/2” 30’ hoses, Safety Factor (Hose): 4:1
  
 Construction
  
 Armor : .015 heavy duty Stainless Steel.
  
 Armor Wall:
..031 wall thickness.
  
 Thermal Blanket: 1500°F continuous rating, non-flammable, and
non-conductive.
  
 End Connection: 303 Stainless Steel with extra long hex (Carbon Steel
also available).
  
 Armor Ferrule: 316 Stainless Steel (Carbon Steel also
available).
	  		  	
					
	11.	  	1	  	CHOKE & KILL HOSE	  		  	Included
					
		  		  	3” ID 10Kpsi Choke & Kill Hose x 48.5ft O/A Length	  		  	
					
	12.	  	1	  	BOP TRANSPORTATION SKID	  		  	Included
					
		  		  	11-10M Stack Dolly and transportation skid frame is supplied complete oil field type hitches at each end, two (2) hydraulic cylinders and is designed to accommodate handling,
testing the stack and transportation of the stack.	  		  	
					
	13.	  	Lot	  	36MT BOP HANDLING SYSTEM	  		  	Included
					
		  		  	One (1) Ingersoll-Rand Lift chain BOP handling system complete with two (2) model number BHS36PA2-17-15 for a total of 36 metric tons of	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	BOP handling system consisting of two 18 metric ton geared Air motor powered hoist and hand geared trolleys, 17’ lift, 1.64 FPM@ 90psi delivery 18 metric ton per hook and two
chain falls of chain.	  		  	
					
	14.	  	0	  	OPTIONAL SKIDDING SYSTEM	  	$  295,450.00	  	Not Included
					
		  		  	 The Skidding system is designed to skid the 1600hp AC QDS longitudinally with a full set back on several possible well center well
programs and up to 100’ from the initial well location.
  
 One (1) Mud Skid frame
base, one (1) lot of ten (10) skid H beams, 14” beam 26’ long x 10’ wide, two (2) Mud Boat skids, 14” beam 25’ long x 13’ wide, three (3) Drillers Cabin skid welded frames 14” beam 25’ long x 7’5”
wide, complete per IDM Equipments standard design hardware . The system is comprised of one (1) set of 4 100T Claw ram assemblies, hoses, control manifold, all connecting pins (double pin locations) and twenty (20) cross members. This option
includes two skids designed for storage and transportation of all the cross members, pins, and hydraulic components.
  
 This option includes the HP Mud lines and the stair modifications to accommodate skidding up to 100’ from the initial well location.
	  		  	
					
	15.	  	lot	  	ELECTRIC HEATERS	  		  	Included
					
		  		  	 One (1) lot of electric heaters complete with all the required powered cables, connectors and mounts per the following;
  
 •     One (1) electric
heater’s mounted on the suction end porch of each mud pump skid assembly (two (2) 16” units).
  
 •     One (1) electric heater mounted in the BOP Closing unit shelter, Hopper skid assembly and the
Drill Water tank porch (three (3) 12” units).
  
 •     Two (2) electric heaters mounted in the sub under the drill floor facing the well center area (two (2) 30” units).
  
 •     Two (2) electric heaters with drill floor mounting systems that project into the drill floor
area (two (2) 16” units).
  
 •     One (1) electric heater with a temporary mount for the racking board (one (1) 12” unit).
	  		  	
					
		  		  	TOTAL SECTION (5)	  		  	$  1,006,331.76

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	SECTION (6)	  		  	
					
		  		  	SYSTEMS INTEGRATION & TEST	  		  	$  1,385,129.41
					
		  		  	Is all inclusive of all labor and facilities to complete per the following per IDM standard;	  		  	
					
	1.	  	Lot	  	STRUCTURAL & MECHANICAL	  		  	Included
					
		  		  	 The Mechanical Rig-up is base on IDM standard practice and scope of supply and is to include the following;
  
 •     Set and assemble mast
and substructure
  
 •     Install all flooring and handrails
  
 •     Install stairs and v-door
  
 •     Set and align rotary
table
  
 •     Set
and align Drawworks
  
 •     Set driller’s cabin/tool house skid assembly
  
 •     Install mast accessories (racking board, etc.)
  
 •     String up traveling
block
  
 •     Set
and align mud pumps
  
 Set and align equipment including:
  
 Mud system
  
 Water tank
  
 Fuel tank
  
 Drillers Cabin
  
 BOP Closing unit
  
 Choke & Kill Manifold
  
 Catwalk
  
 Cable trays
  
 Provide pipe, fittings, hoses and valves for following accessory systems:
  
 Water system:
  

Provide water supply to rig floor washdown
  
 Fuel system:
  
 Provide fuel to feed and return lines from fuel tank to generator sets.
  
 Air system:
  
 Provide air supply for accumulator
unit and rig floor air manifold.
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 Provide hose connections from rig floor air manifold and other floor tools.
  
 Provide air supply to generator set engine starters.
  
 Provide and install the following miscellaneous items:
  
 Two (2) hydraulic hoist stands
  
 One (1) hydraulic boom pole
  
 Tong back-up post
  
 Hose hobbles for vibrator hoses
	  		  	
					
	2.	  	Lot	  	ELECTRICAL	  		  	Included
					
		  		  	 All electrical will conform to API RP 500 Guidelines.
  

Provide and install two (2) 220V mast light strings with fluorescent light fixtures and obstruction light.
  
 Provide and install rig lighting package consisting of fluorescent and metal halide light fixtures
for rig floor, mud tanks, utility skids, substructure and doghouse.
  
 Provide and
install power and control cable for generators, AC motors, driller’s console and all related functions indicated in this proposal.
	  		  	
					
	3.	  	Lot	  	TESTING	  		  	Included
					
		  		  	 Testing will be per IDM standard for all the IDM supplied equipment will include the following;
  
 •     Fill mud tanks with
water
  
 •     Provide lube products to all machinery
  
 •     Provide 2000 gallons diesel fuel
  
 •     Circulate water
throughout mud system
  
 •     Run air compressors and pressure test air manifold
  
 •     Pressure test all high pressure lines and connections to working pressure
  
 •     Pressure test all low
pressure lines to working pressure
  
 •     Circulate through high pressure system for minimum of four (4) hours
  
 •     Run all solids control equipment
  
 •     Load test generators

  
 •     Run all
generator sets in parallel
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 •     Test all VFD assignments
	  		  	
					
	4.	  	Lot	  	PROJECT MANAGEMENT	  		  	Included
					
		  		  	 Project Management services includes the following:
  
 •     Management of the
interface between products supplied,
  
 •     Technical coordination,
  
 •     Scheduling,
  
 •     Proactive problem identification and resolution,
  
 •     Contract administration

  
 •     Coordination and assistance
  
 •     Regular project status reporting and planning/scheduling of equipment installation and commissioning.
  
 Project Management Services provides the customer with IDM Equipments resources required to execute,
monitor and control major projects in a timely, efficient and cost effective manner.
	  		  	
					
	5.	  	Lot	  	COMMISSIONING	  		  	Included
					
		  		  	Two (2) commissioning technicians; one (1) electrical technician will be available for 30 days and one (1) mechanical will be available for a total of 15 days at the rig up site.
Travel and per diem will be charged at cost. An extension of the support will be charged per IDM’s applicable service rate sheet.	  		  	
					
	6.	  	Lot	  	TRAINING	  		  	Included
					
		  		  	 IDM will provide rig up and rig down training during the last six weeks of the project and during final assembly of the rig. IDM will
also provide training for the following items during the last four to six weeks of the project at IDM’s facility up to 10 people;
  
 •     Electronic Driller operation
  
 •     Generator Controls
operation and maintenance
  
 •     VFD Controls and maintenance
  
 •     Mud system operation
	  		  	

											
	 ITEM
	  	 QTY
	  	 DESCRIPTION
	  	 PRICE EA.
	  	 TOTAL PRICE

		  		  	 •     Mast & Substructure operation and
maintenance
  
 •     HPU operation and maintenance
  
 •     Drawworks operation and maintenance
	  		  	
					
	7.	  	Lot	  	COATING SYSTEM	  		  	Included
					
		  		  	All equipment is to either be coated per the OEM suppliers coating specification or by IDM’s standard coating specification, (Sandblasted, primed and finish coated with an
industrial epoxy polyurethane coating system).	  		  	
					
	8.	  	Lot	  	IDM STANDARD DOCUMENT	  		  	Included
					
		  		  	 IDM Equipments Standard Data Book to include the following sections, as applicable:
  
 a.      Complete list of
serial numbers for all serialized equipment
  
 b.      IDM Certificate of Conformance for these items:
  
 i.       Mast
  

ii.      Crown
  

iii.    Substructure
  
 iv.     Drawworks
  
 v.      Traveling block
  
 vi.     Rotary Table
  
 c.      IDM Certificate of
Compliance for completed rig
	  		  	
					
	9.	  	Lot	  	OPERATION & MAINTENANCE MANUAL	  		  	Included
					
		  		  	 Operation and Maintenance manuals, three (3) hard copies and one (1) electronic copy to include the following sections;
  
 a.      Operation

 
 b.      Maintenance
  
 c.      Spares
	  		  	
					
		  		  	TOTAL SECTION (6)	  		  	$        1,385,129.41
					
		  		  	TOTAL PER RIG EX-WORKS	  		  	$  12,757,325.56

 TERMS: 
 This
quotation is subject to IDM Equipments Standard Terms and Conditions of sale unless other wise noted and will be held firm for 30 days. 
 Terms between IDM
Equipment and Union Drilling will be that the total of the original contract will be paid to IDM in the following milestones, 35% at order placement at order placement, 40% at completion of the Mast of Substructure Fabrication, Receipt of the Mud
Pumps and Engine Generator Skids and 25% at delivery. Prices are in U.S. Dollars and should a wire transfer be elected as a form of payment it would be at no additional charge. 
  

	
	Sincerely,
	
	Barry Olsen
	Sales Manager

 EXHIBIT B 
 RIG ACCEPTANCE CERTIFICATE 
 DATE:
                     
  

			
	 LOCATION:
	  	11616 Galayda Street
		  	Houston, Texas 77086
		  	USA

 RIG DESCRIPTION: 1600 hp AC Fast Moving Quicksilver Drilling System 
 This certifies that the above described Rig has been rigged up and tested in conformity with the original Quotation No. R071002BO-01 Revision C from IDM Equipment, LLC.

 ACCEPTED: 
  

			
	UNION DRILLING, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 EXHIBIT C 
 BILL OF SALE 
 IDM EQUIPMENT, LLC (“Seller”), in consideration of the sum of Ten Dollars
($10.00), and other good and valuable consideration in hand paid to Seller by Union Drilling, Inc. (“Purchaser”), the receipt of which is hereby acknowledged, IDM EQUIPMENT, LLC. (“Seller”) has BARGAINED, SOLD, and
DELIVERED, and by these presents does BARGAIN, SELL, and DELIVER unto Purchaser that certain 1600hp AC Fast Moving Quicksilver Drilling System (“the Rig”), and all associated equipment described in the attached Exhibit A, together with all
parts and equipment thereunto appertaining, all hereinafter being called the “Rig.” 
 SELLER MAKES NO WARRANTIES OR GUARANTEES
WITH RESPECT TO THE RIG OTHER THAN THOSE SPECIFICALLY CONTAINED IN THE PURCHASE AND SALE AGREEMENT FOR THE RIG BETWEEN PURCHASER AND SELLER DATED
                    . 
 TO HAVE
AND TO HOLD unto Purchaser, its successors and assigns, forever; and Seller does hereby covenant that Seller is the sole owner of the Rig and equipment sold and conveyed hereby, free and clear of all liens and other encumbrances; that Seller has the
right and authority to sell and convey the same; that all necessary approvals for the sale and conveyance thereof have been obtained; and that Seller does hereby bind itself, its successors and assigns to WARRANT AND FOREVER DEFEND the title to the
Rig and the equipment unto Purchaser, it successors and assigns, against the just and lawful claims and demand of all persons whomsoever. 
 WITNESS the
execution hereof this      day of             ,       . 
  

			
	IDM EQUIPMENT, LLC
		
	By:	 	IDM Equipment, Inc.,
		 	its sole and managing member
		
	By:	 	  

	Name:	 	David J. Godin
	Title:	 	Chief Operating Officer

 EXHIBIT D 
 HOURLY AND DAILY LABOR, EQUIPMENT AND FACILITY RATES 
 EFFECTIVE AS OF JUNE 30, 2007 
 HOURLY RATES 
  

				
	 ENGINEERING & DESIGN
	  	$	135.00 USD
		
	 SUPERVISORS
	  	$	80.00 USD
		
	 WELDERS
	  	$	70.00 USD
		
	 MECHANICS
	  	$	70.00 USD
		
	 ROUGHNECKS
	  	$	60.00 USD
		
	 HELPERS
	  	$	50.00 USD
		
	 ELECTRICIANS
	  	$	70.00 USD
		
	 CRANE TO 50 TONS WITH OPERATOR
	  	$	145.00 USD
		
	 FORKLIFTS TO 33,000# WITH OPERATOR
	  	$	115.00 USD
		
	 FORKLIFTS TO 8,000# WITH OPERATOR
	  	$	100.00 USD

 OVERTIME RATE TO BE 1.5 X ABOVE HOURLY RATE AFTER 8 HOURS IN THE SAME WORK DAY. 
 DAILY RATES 
  

				
	 RIG-UP PAD DAILY RENTAL RATE
	  	$	10,000.00 USD
		  	 	PER DAY

 EXHIBIT E 
 CUSTOMER CHANGE ORDER FORM 
  

					
	 

	  		  	
	  	CUSTOMER:	  	
	  	JOB NO.:	  	
	  	CHANGE NO.:	  	
	  	PROJECT:	  	
	  	ORIGINAL PO NO.:	  	
	  	NEW PO NO.	  	
		  	(IFREQ.):	  	

  

					
	ITEM	  	 DESCRIPTION
	  	SUBTOTAL
	  	  	 	  	 
	  	  	 	  	 
	  	  	 	  	 
	  	  	 	  	 
	  	  	 	  	 
	  	  	 	  	 
	  	  	 	  	 
	  	  	 	  	 
	  	  	 	  	 

  

	
	 PRICE CHANGE:

	 DELIVERY CHANGE:

  

							
	 IDM AUTHORIZATION
	  	PURCHASER AUTHORIZATION
				
	Print Name:	 	  
	  	Print Name:	  	  

	Signature:	 	  
	  	Signature:	  	  

	Date:	 	  
	  	Date:	  	  

 EXHIBIT F 
 STANDARD TERMS & CONDITIONS OF SALE 
 All sales and transactions with IDM Equipment, LLC (the
“Seller”) are subject to the following conditions of sale (capitalized terms not defined herein shall have the meaning given to such terms in the Purchase and Sale Agreement): 
 1. Terms of Payment: 
 Seller’s domestic terms are net 30 days
after the receipt of the Seller invoice. INTEREST WILL BE CHARGED AT THE RATE OF 1-1/2% PER MONTH OR THE MAXIMUM LEGAL RATE; WHICHEVER IS LESS, ON PAST DUE ACCOUNTS AFTER 30 DAYS FROM RECEIPT OF INVOICE. Export terms require a confirmed irrevocable
letter of credit to be opened by Purchaser at its sole expense including bank confirmation charges through a prime U.S. bank acceptable to Seller unless otherwise specified. All letters of credit will be in favor of and acceptable to Seller, shall
be maintained in sufficient amounts and for the period necessary to meet all payment obligations, shall be irrevocable and issued or confirmed by the bank to Seller within sixty (60) days after acceptance of the order by Seller, permit partial
deliveries and shall provide for pro-rata payments upon presentation of Seller’s invoices and certificate of delivery, or of delivery into storage with certification of cause therefor, and for the payment of any cancellation charges. Boxing,
cartage, freight, insurance, handling, labor, rental and similar expenses are net cash upon receipt of invoice. All deliveries are ex-works, Houston, Texas, unless otherwise specified in Seller’s sales order or quote. In the event that
collection of invoices is placed in the hands of an attorney, Purchaser agrees to pay all costs and attorneys’ fees. 
 2. Warranty, Remedy,
Disclaimer: 
 Seller warrants that for a period of one (1) year from the date of delivery of new equipment of Seller manufacture (the
“Equipment”) shall be free of defects in materials and workmanship under normal use and service, and provided the Equipment is used and maintained in accordance with instructions supplied by Seller. Remanufactured equipment will be
warranted for a period of one year, not to exceed fifteen months from collection from Seller. THIS IS SELLER’S SOLE AND EXCLUSIVE WARRANTY. If a defect in the Equipment appears within one year from the date of shipment, and Purchaser has given
written notice to Seller of such defect within thirty days from the discovery thereof, Seller will repair or replace the part, at its option, by, at its option, either (a) shipping a similar part FOB shipping point or (b) refunding an
equitable portion of the purchase price. Seller may require the return of the defective part within sixty (60) days of failure to a designated Seller location, transportation prepaid to establish Purchaser’s claim. No allowance will be
made for repairs undertaken without Seller’s written consent or approval. This warranty applies only to equipment manufactured by Seller and excludes standard equipment maintenance items, hoses, and expendables. Warranties on equipment
manufactured by others, if any, are assigned to Purchaser by Seller (without recourse) at time of delivery. Any descriptions of the Equipment, drawings, specifications, and any samples, models, bulletins, or similar material, used in connection with
this sale are for the sole purpose of identifying the Equipment and are not to be construed as an express warranty that the Equipment will conform to such description. Any field advisory or installation support is advisory 

 
only. THE FOREGOING WARRANTIES ARE SELLER’S SOLE AND EXCLUSIVE WARRANTIES AND ARE IN LIEU OF ALL OTHER WARRANTIES, WHETHER ORAL, WRITTEN, EXPRESS,
IMPLIED OR STATUTORY AND NOTHING TO THE CONTRARY CONTAINED IN THE AGREEMENT OR THESE STANDARD TERMS AND CONDITIONS SHALL BE DEEMED TO CREATE ANY ADDITIONAL WARRANTY WHATSOEVER. SELLER MAKES NO IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE WILL NOT APPLY. SELLER’S WARRANTY OBLIGATIONS AND PURCHASER’S REMEDIES THEREUNDER ARE SOLELY AND EXCLUSIVELY AS STATED HEREIN. Purchaser’s sole and exclusive remedy, whether based upon warranty, contract or tort,
including negligence, will be to proceed under this warranty. All liability of Seller shall terminate one year from the date of delivery of the Equipment. 
 3. Limit of Liability: 
  

	 	A.	SELLER SHALL IN NO EVENT BE LIABLE TO PURCHASER OR ANY THIRD PARTY FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING, WITHOUT LIMITATION, DAMAGES FOR COST OF
CAPITAL, LOSS OF REVENUE, COSTS AND EXPENSES INCURRED IN CONNECTION WITH LABOR, OVERHEAD, TRANSPORTATION OR SUBSTITUTE FACILITIES OR SUPPLY SOURCES, RIG COSTS, DRILLING COSTS, ENVIRONMENTAL DAMAGE CLAIMS OR ANY LOSS INCURRED BECAUSE OF INTERRUPTION
OF DRILLING OPERATIONS OR AS A RESULT OF PERFORMANCE OF THIS SALES CONTRACT. SELLER’S TOTAL LIABILITY ON ANY CLAIM OF ANY KIND ARISING OUT OF THE AGREEMENT WHETHER BASED UPON WARRANTY, CONTRACT, TORT OR NEGLIGENCE SHALL IN NO CASE EXCEED THE
PRICE PAID BY PURCHASER FOR THE EQUIPMENT OR PART THEREOF GIVING RISE TO THE CLAIM. SELLER FURTHER DISCLAIMS ALL LIABILITY, WHETHER IN CONTRACT, TORT, WARRANTY, OR OTHERWISE, TO ANY PARTY OTHER THAN PURCHASER. NEITHER PARTY SHALL BE LIABLE TO THE
OTHER FOR ANY PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY NATURE. 

  

	 	B.	PURCHASER SHALL IN NO EVENT BE LIABLE TO SELLER OR ANY THIRD PARTY FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING, WITHOUT LIMITATION, DAMAGES FOR COST OF
CAPITAL, LOSS OF REVENUE, COSTS AND EXPENSES INCURRED IN CONNECTION WITH LABOR, OVERHEAD, TRANSPORTATION OR SUBSTITUTE FACILITIES OR SUPPLY SOURCES, RIG COSTS, ENVIRONMENTAL DAMAGE CLAIMS OR AS A RESULT OF PERFORMANCE OF THIS SALES CONTRACT.
PURCHASER’S TOTAL LIABILITY ON ANY CLAIM OF ANY KIND ARISING OUT OF THE AGREEMENT WHETHER BASED UPON WARRANTY, CONTRACT, TORT OR NEGLIGENCE SHALL IN NO CASE EXCEED THE AGGREGATE VALUE OF THE PRICE PAID BY PURCHASER FOR THE EQUIPMENT AND ANY
APPROVED CHANGE ORDERS OR PART THEREOF GIVING RISE TO THE CLAIM. PURCHASER FURTHER DISCLAIMS ALL LIABILITY, WHETHER IN CONTRACT, TORT, WARRANTY, OR OTHERWISE, TO ANY PARTY OTHER THAN SELLER. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY
PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY NATURE. 

 4. Payments: 
 The prices specified are in U.S. currency, payable in Houston, Texas free of all expenses 

 
to Seller for collection charges. Pro rata payments shall be made for partial shipments. If delivery is prevented or postponed at Purchaser’s request,
or by reason of any other cause set forth in the Agreement, then all dates of payment related to delivery shall relate instead to the placement of such Equipment in storage. Letters of credit or other credit instruments established to provide
payment for the Equipment shall make provision for payment as set forth above where delivery is prevented or postponed under such circumstances. Storage of such Equipment shall be at Purchaser’s expense and risk. When in the opinion of Seller
the financial condition of Purchaser renders it necessary, Seller may require cash payment or satisfactory security before shipment. 
 5. Changes and
Drawings: 
 Seller reserves the right to change or modify the design and construction of the Rig and the Work and to substitute other suitable material.
Seller is not required to retrofit units in the field because of an engineering change. 
 6. Patent Indemnity: 
 Where designs and specifications are furnished by Purchaser, then Purchaser agrees to indemnify and hold harmless Seller against all claims, demands, loss and liability,
including costs and fees resulting from actual or alleged infringements of any U.S. or foreign patent, trademark or copyright, by reason of the manufacture of the Equipment or articles called hereunder. 
 7. Cancellation: 
 Purchaser may cancel its order only upon written
notice and payment to Seller of Seller’s cancellation charges, as outlined herein. Subject to the provisions of this Agreement, including those related to Force Majeure and Permissible Delays, Purchaser may have the option to cancel this
Agreement should Delivery be delayed for a period of more than Ninety (90) days beyond the Date of Delivery (the Date of Delivery being the Delivery Date as amended by any and all extensions thereto under the provisions of this Agreement),
subject to the Purchaser’s obligation to pay Seller for the pro rata portion of work completed to the date of cancellation with title of all such completed work being transferred to Purchaser by Seller upon receipt of Purchaser’s payment.
Equipment or parts of special design, size or materials are not refundable. Written permission must be secured before returning standard equipment or parts, and these returns will be subject to a restocking charge as determined by Seller.

 8. Suspension: 
 If IDM’s performance of the work
is delayed for a period of more than six (6) months at the request of Purchaser or by reason of the acts of civil or military authority, or “force majeure”, upon removal of the cause or any such delay performance shall be resumed,
delivery will be rescheduled, and the purchase price shall be adjusted to that in effect at the time of resumption of performance subject to such price adjustment clause as may then be applicable. If Purchaser is unwilling to accept the adjustment
price and projected delivery date, Purchaser may cancel its order by giving written notice thereof to IDM at any time within thirty (30) days after Purchaser has been informed of IDM’s adjusted price and projected delivery date and upon
payment of reasonable cancellation charges specified by IDM. 

 9. Risk of Loss: 
 For
all sales, risk of loss and title to the Equipment will pass to Purchaser ex works, Seller’s facility in Houston, TX. 
 10. Taxes: 

Purchaser shall pay to Seller in addition to the purchase price, the amount of all Sales, Use, Privilege, Occupation, Excise or other taxes, Federal, State, local or
foreign which Seller may be required to pay in connection with furnishing goods or services to the Purchaser. Notwithstanding the foregoing sentence, Purchaser shall have no obligation whatsoever to pay any income, or similar, tax imposed upon
Seller as a result of Seller’s receipt of any monies from Purchaser. 
 11. Government Authorizations: 
 Purchaser will be responsible for the timely obtaining of all required authorizations, including export licenses, import licenses, exchange permits and all other
governmental authorizations, even though such authorizations may be applied for by Seller. Purchaser and Seller will assist each other in every manner reasonably possible in securing such authorizations as may be required. Seller will not be liable
if any authorization is delayed, denied, revoked, restricted or not renewed and Purchaser will not be relieved thereby of its obligations to pay IDM for its work. 
 ALL SALES HEREUNDER WILL AT ALL TIMES BE SUBJECT TO THE EXPORT CONTROL LAWS AND REGULATIONS OF THE UNITED STATES GOVERNMENT AND ANY AMENDMENTS THEREOF. PURCHASER AGREES THAT IT WILL NOT MAKE ANY DISPOSITION, BY WAY OF TRANS-SHIPMENT
RE-EXPORT, DIVERSION OR OTHERWISE, EXCEPT AS SUCH LAWS AND REGULATIONS MAY EXPRESSLY PERMIT, OF U.S. ORIGIN GOODS PURCHASED FROM SELLER, OTHER THAN IN AND TO THE ULTIMATE COUNTRY OF DESTINATION SPECIFIED ON PURCHASER’S ORDER AND/OR DECLARED AS
THE COUNTRY OF ULTIMATE DESTINATION ON SELLER’S INVOICES. 
 12. General: 
 This order will in all respects be construed and be given legal effect in conformity with the laws of the State of Texas, U.S.A. No waiver or modification of the Agreement or these conditions shall be binding upon
Seller unless made in writing and signed by a duly authorized representative of Seller. A waiver of a breach of any provision of the Agreement will not constitute a waiver of any other breach hereof. All quotations are subject to change at any time
prior to acceptance of an order and expire thirty (30) days from the date thereof. 

 EXHIBIT G 
 SERVICE RATES 

			
	 DATE:
 SUPERSEDES:
	  	 April 1, 2007
 January 01,
2001

  

													
	 Service
	  	Rate	  	 Overtime Service
 (Time over 12 Hrs)
	  	Per Diem	  	Auto Travel
	 Service Engineer Domestic
	  	$
  
	1,250.00
 USD/day
	  	$	156.00 USD/Hr	  	$
  
	60.00
 USD/day
	  	$	0.85 per mi
					
	 Service Engineer International
	  	$
  
	1,600.00
 USD/day
	  	$	200.00 USD/ Hr	  	$
  
	100.00
 USD/day
	  	 	N/A

 Notes: 

	 	•	 	 A purchase order MUST be given prior to the notification of a service engineer to proceed to job. Even if it is a warranty issue this will be determined after
service is rendered. 

  

	 	•	 	 Domestic is defined as inside the continental United States. 

  

	 	•	 	 International is defined as outside the continental United States. This includes Alaska, Hawaii, and offshore. 

  

	 	•	 	 Work over 12 hours a day will be charged at the over time service rates posted above. 

  

	 	•	 	 All overtime service rates must be initialed by the Purchaser on the service report. 

  

	 	•	 	 Travel days will be charged as working days. 

  

	 	•	 	 Full day rate will be charged for anything over four hours. Any thing less will be charged at 50% of service rate posted above. 

  

	 	•	 	 Service Engineer will limit time on the job to no more than 16 hours per day. This is Company policy. 

  

	 	•	 	 Chargeable time will start when the service engineer gets the call to go to location. This includes time getting parts, programs, drawings, etc.

  

	 	•	 	 Time spent “standing by” at Purchaser request will be charged at the day rates listed above. 

  

	 	•	 	 The Purchaser will incur all travel costs related to non-warranty issues / non-warranty service calls. Travel expenses related to warranty issues / warranty
services call will be split equally between Purchaser and Seller and shall be due and payable upon Seller’s invoice of the same. 

  

	 	•	 	 Any international flight longer than four (4) hours will be Business class and be charged as such. All other air travel is economy class.

  

	 	•	 	 All travel expenses will be charged at cost plus 10% administrative fee. This includes flights, hotel, phone, parking, gas, tolls, auto rental, etc.

  

	 	•	 	 All parts used for repairs and parts requested to stay on location will be charged at current published rates. Shipping cost for said parts will be charged to the
customer. 

  

	 	•	 	 IDM is not responsible for third party services, charges, repairs or any other costs requested by the Purchaser. 

  

	 	•	 	 For international service, a deposit of up to 100% of the anticipated costs may be required. 

  

	 	•	 	 International travel must be approved in advance by the Service Manager, IDM Equipment LLC.

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