Exhibit 10.1

 

BORROWING BASE AGREEMENT AND FOURTH AMENDMENT TO CREDIT AGREEMENT

 

BORROWING BASE AGREEMENT AND FOURTH AMENDMENT TO CREDIT AGREEMENT, dated as of
April 6, 2015 (this “Agreement”), to the Credit Agreement, dated as of
May 24, 2012 (as amended, amended and restated, modified or supplemented from
time to time prior to the date hereof, the “Credit Agreement”), among EPE
Acquisition, LLC, a Delaware limited liability company (successor-by-merger to
EPE Holdings, LLC) (“Holdings”), EP Energy LLC (f/k/a Everest Acquisition LLC),
a Delaware limited liability company and a wholly-owned subsidiary of Holdings
(the “Borrower”), the banks, financial institutions and other lending
institutions from time to time parties as lenders thereto (each a “Lender” and
collectively, the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent
for the Lenders (in such capacity, the “Administrative Agent”) and as collateral
agent for the Lenders, the swingline lender and an issuer of Letters of Credit,
and each other Issuing Bank from time to time party thereto.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower has (i) provided to the Administrative Agent and the
Lenders in accordance with Section 9.14 of the Credit Agreement reserve reports
as of December 31, 2014, together with supplemental reserve information, with
respect to the Borrower’s Oil and Gas Properties (the “Assets Reserve Report”)
and requested that the Borrowing Base under the Credit Agreement be reaffirmed
at $2,750,000,000 and (ii) requested that the Scheduled Redetermination of the
Borrowing Base for the fall 2015 be completed on or about November 30, 2015
(rather than October 31, 2015, as provided in the Credit Agreement).

 

WHEREAS, the Borrower has requested that the maturity date under the Credit
Agreement be extended from May 24, 2017 to May 24, 2019, subject to an earlier
maturity date in the event that, (i) more than $25.0 million of Senior Secured
Term Loans are outstanding on the date that is 180 days prior to the maturity
date of such Senior Secured Term Loans or (ii) more than $25.0 million of Senior
Secured Notes are outstanding on the date that is 180 days prior to the maturity
date of such Senior Secured Notes.

 

WHEREAS, the Administrative Agent and the Lenders party hereto have
(i) determined based on the Assets Reserve Report that the Borrowing Base under
the Credit Agreement should be reaffirmed at the amounts described above,
subject to the conditions set forth in Section 4.1 hereof, and (ii) approved the
extension of the maturity date, subject to the conditions set forth in
Section 4.2 hereof.

 

NOW, THEREFORE, in consideration of the premises and covenants contained herein
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be legally bound
hereby, agree as follows:

 

ARTICLE I

 

Section 1.1.                                 Defined Terms. Terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement unless otherwise defined herein or the context otherwise
requires.

 

ARTICLE II

 

Section 2.1.                                 Redetermination of Borrowing Base. 
Effective upon the Agreement Effective Date, and until further adjusted, if at
all, pursuant to the next redetermination of the Borrowing

 

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Base in accordance with the provisions of Section 2.14 of the Credit Agreement
or otherwise, the amount of the Borrowing Base under the Credit Agreement is
hereby reaffirmed at $2,750,000,000.

 

Section 2.2.                                 Stipulation Regarding
Redetermination.  The Borrower, on the one hand, and the Administrative Agent
and the Lenders, on the other hand, agree that the redetermination and
adjustment of the Borrowing Base pursuant to this Article II shall constitute
the regularly scheduled semi-annual April 2015 redetermination of the Borrowing
Base pursuant to Section 2.14 of the Credit Agreement.

 

Section 2.3.                                 Scheduled Redetermination of
Borrowing Base for Fall 2015.  Notwithstanding anything to the contrary in the
Credit Agreement (including Section 2.14(b) or Section 9.14 of the Credit
Agreement), the parties hereto agree that the Scheduled Redetermination of the
Borrowing Base for the Fall 2015 shall be delayed by one month and implemented
as follows:  (a) the Reserve Report as of June 30, 2015, and the related Reserve
Report Certificate and Engineering Report (each of which the Borrower would
otherwise be required to deliver to the Administrative Agent on or before
September 30, 2015) shall be delivered the Administrative Agent on or before
October 31, 2015; (b) the Administrative Agent shall deliver the Proposed
Borrowing Base Notice with respect to the Scheduled Redetermination for the fall
2015 (which would otherwise be delivered to the Lenders on or before
October 15, 2015) to the Lenders on or before November 15, 2015; and (c) the
redetermined Borrowing Base (which would otherwise be effective on or about
October 31, 2015) shall become effective on or about November 30, 2015.  Except
for the one month delay in the Scheduled Redetermination of the Borrowing Base
for the fall 2015, each of the provisions of the Credit Agreement with respect
to any Scheduled Redetermination of the Borrowing Base shall otherwise apply in
the same manner as otherwise provided in the Credit Agreement.

 

ARTICLE III

 

Section 3.1.                                 Amendments.  If the conditions to
effectiveness of this Article III are satisfied in accordance with Section 4.2
below, then the Credit Agreement shall be amended as follows:

 

(a)                                 Section 1.1 of the Credit Agreement shall be
amended by inserting the following definitions in appropriate alphabetical
order:

 

“Secured Notes Early Maturity Test Date” shall mean the date that is 180 days
prior to the final maturity of the Senior Secured Notes as in effect on the
Amendment Effective Date.

 

“Term Loan Early Maturity Test Date” shall mean the date that is 180 days prior
to the final maturity of the Senior Secured Term Loans as in effect on the
Amendment Effective Date.

 

(b)                                 Section 1.1 of the Credit Agreement shall be
amended by deleting the definition of “Initial Maturity Date” contained therein
and replacing it with the following:

 

“Initial Maturity Date” shall mean the seventh anniversary of the Closing Date,
or, if such anniversary is not a Business Day, the Business Day immediately
following such anniversary; provided that if, (i) on the Term Loan Early
Maturity Test Date, the aggregate principal amount of Senior Secured Term Loans
that mature 180 days after the Term Loan Early Maturity Test Date exceeds $25.0
million, the Initial Maturity Date shall be the Term Loan Early Maturity Test
Date (or, if such date is not a Business Day, the Business Day immediately
following such date) and (ii) on the Secured Notes Early

 

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Maturity Test Date, the aggregate principal amount of Senior Secured Notes that
mature 180 days after the Secured Notes Early Maturity Test Date exceeds $25.0
million, the Initial Maturity Date shall be the Secured Notes Early Maturity
Test Date (or, if such date is not a Business Day, the Business Day immediately
following such date).

 

ARTICLE IV

 

Section 4.1.                                 Conditions to Effectiveness.  This
Agreement shall become effective (other than the amendments pursuant to
Article III above) on the date (the “Agreement Effective Date”) on which:

 

(a)                                 The Administrative Agent shall have received
this Agreement, executed and delivered by a duly authorized officer of each of
the Borrower and Holdings and Lenders comprising at least the Required Lenders;
and

 

(b)                                 Each of the Borrower and Holdings shall have
confirmed and acknowledged to the Administrative Agent, each Issuing Bank and
the Lenders, and by its execution and delivery of this Agreement each of the
Borrower and Holdings does hereby confirm and acknowledge to the Administrative
Agent, each Issuing Bank and the Lenders, that (i) it shall have taken all
necessary organizational action to authorize the execution, delivery and
performance of this Agreement, (ii) the Credit Agreement and each other Credit
Document to which it or any of its applicable Subsidiaries that are Credit
Parties is a party constitutes the legal, valid and binding obligation of such
Credit Party enforceable in accordance with its terms, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization and other similar
laws relating to or affecting creditors’ rights generally and general principles
of equity (whether considered in a proceeding in equity or law) and (iii) no
Default or Event of Default exists under the Credit Agreement or any of the
other Credit Documents.

 

The Administrative Agent shall notify the Borrower and the Lenders of the
Agreement Effective Date, and such notice shall be conclusive and binding. 
Notwithstanding the foregoing, the Agreement Effective Date shall not occur
unless each of the foregoing conditions is satisfied (or waived) at or prior to
2:00 p.m., New York City time, on April 15, 2015 (and, in the event such
conditions are not so satisfied or waived, the amendments contemplated hereby
shall be null and void).

 

Section 4.2.                                 Conditions to Effectiveness of
Amendments in Article III.  The amendments in Article III of this Agreement
shall become effective on the date (the “Amendment Effective Date”) on which the
Administrative Agent shall have received (x) counterparts of this Agreement
executed by (in addition to counterparts of this Agreement executed by the
Administrative Agent, the Collateral Agent, the Borrower and Holdings (together
with the Borrower, the “Amendment Parties”)) each other Credit Party and all of
the Lenders and (y) each of the following certificates and opinions:

 

(a)                                 a copy of a certificate as to the good
standing of each of the Amendment Parties as of a recent date from the Secretary
of State of the State of Delaware;

 

(b)                                 a certificate of the Secretary or Assistant
Secretary of each of the Amendment Parties dated the Amendment Effective Date
and certifying:

 

(i)                                     that attached thereto is the certificate
of formation, including all amendments thereto, of such Amendment Party
certified as of a recent date by the Secretary of State of the State of Delaware
and no action has been taken by such Amendment

 

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Party for the purpose of effecting an amendment to its certificate of formation
since such recent date,

 

(ii)                                  that attached thereto is a true and
complete copy of the operating agreement of such Amendment Party,

 

(iii)                               that attached thereto is a true and complete
copy of resolutions duly adopted by the board of directors of the ultimate sole
member of such Amendment Party authorizing the execution, delivery and
performance of this Agreement and that such resolutions have not been modified,
rescinded or amended and are in full force and effect on the Amendment Effective
Date,

 

(iv)                              as to the incumbency and specimen signature of
the officer executing this Agreement or any other document delivered in
connection herewith on behalf of such Amendment Party, and

 

(v)                                 as to the absence of any pending proceeding
for the dissolution or liquidation of such Amendment Party, and

 

(c)                                  on behalf of itself and the Secured Parties
on the Agreement Effective Date, a written opinion of Paul, Weiss, Rifkind,
Wharton & Garrison LLP, special counsel to the Amendment Parties, (A) dated the
Amendment Effective Date, (B) addressed to the Administrative Agent, the
Collateral Agent, the Lenders and each Issuing Bank and (C) in form and
substance reasonably satisfactory to the Administrative Agent (and the Borrower
hereby instructs such counsel to deliver such legal opinion).

 

Section 4.3.                                 Ratification.  Each Credit Party
hereby (a) ratifies and confirms all of the Obligations under the Credit
Agreement (as amended hereby) and the other Credit Documents related thereto,
and, in particular, affirms that, after giving effect to this Agreement, the
terms of the Security Documents secure, and will continue to secure, all
Obligations thereunder, and (b) represents and warrants to the Lenders that as
of the effectiveness of this Agreement (i) all of the representations and
warranties contained in the Credit Document to which it is a party are true and
correct in all material respects with the same effect as though such
representations and warranties had been made on and as of such date (except
where such representations and warranties expressly relate to an earlier date,
in which case, such representations and warranties shall have been true and
correct in all material respects as of such earlier date) and (ii) no Default or
Event of Default has occurred and is continuing.

 

Section 4.4.                                 Continuing Effect; No Other
Amendments or Waivers. This Agreement shall not constitute an amendment or
waiver of or consent to any provision of the Credit Agreement or the other
Credit Documents except as expressly stated herein and shall not be construed as
an amendment, waiver or consent to any action on the part of the Borrower that
would require an amendment, waiver or consent of the Administrative Agent or the
Lenders except as expressly stated herein.  Except as expressly waived hereby,
the provisions of the Credit Agreement and the other Credit Documents are and
shall remain in full force and effect in accordance with their terms.

 

ARTICLE V

 

Section 5.1.                                 Counterparts. This Agreement may be
executed in any number of separate counterparts by the parties hereto (including
by telecopy or via electronic mail), each of which counterparts when so executed
shall be an original, but all the counterparts shall together constitute one and
the same instrument.

 

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Section 5.2.                                 GOVERNING LAW. THIS AGREEMENT AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT A SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

 

Section 5.3.                                 FINAL AGREEMENT.  THE CREDIT
AGREEMENT AND THE OTHER CREDIT DOCUMENTS, WHICH SHALL INCLUDE THIS AGREEMENT,
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.  THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.

 

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

 

 

EPE ACQUISITION LLC (SUCCESSOR TO EPE HOLDINGS LLC)

 

 

 

 

 

By:

/s/ Kyle McCuen

 

 

Name: Kyle McCuen

 

 

Title: Vice President and Treasurer

 

 

 

 

 

EP ENERGY LLC (F/K/A EVEREST ACQUISITION LLC)

 

 

 

 

 

By:

/s/ Kyle McCuen

 

 

Name: Kyle McCuen

 

 

Title: Vice President and Treasurer

 

Signature Page — Fourth Amendment

 

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FOR PURPOSES OF ACKNOWLEDGING AND AGREEING TO ARTICLE III and SECTION 4.3
HEREOF, each of the Subsidiary Guarantors has caused this Agreement to be
executed by its officer(s) thereunto duly authorized as of the date first above
written.

 

 

EVEREST ACQUISITION FINANCE INC.

 

 

 

 

 

EP ENERGY GLOBAL LLC

 

 

 

 

 

EP ENERGY MANAGEMENT, L.L.C.

 

 

 

 

 

EP ENERGY RESALE COMPANY, L.L.C.

 

 

 

 

 

EP ENERGY GATHERING COMPANY, L.L.C.

 

 

 

 

 

EP ENERGY E&P COMPANY, L.P.

 

 

 

 

 

CRYSTAL E&P COMPANY, L.L.C.

 

 

 

 

 

By:

/s/ Kyle McCuen

 

 

Name: Kyle McCuen

 

 

Title: Vice President and Treasurer

 

Signature Page — Fourth Amendment

 

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JPMORGAN CHASE BANK, N.A., as

 

Administrative Agent, Collateral Agent and as a Lender

 

 

 

 

 

By:

/s/ Jo Linda Papadakis

 

 

Name: Jo Linda Papadakis

 

 

Title: Authorized Officer

 

Signature Page — Fourth Amendment

 

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CITIBANK, N.A., as a Lender and Issuing Bank

 

 

 

 

 

By:

/s/Phil Ballard

 

 

Name: Phil Ballard

 

 

Title: Vice President

 

Signature Page — Fourth Amendment

 

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BMO HARRIS FINANCING, INC., as a Lender

 

 

 

 

 

By:

/s/ Matthew Davis

 

 

Name: Matthew Davis

 

 

Title: Vice President

 

Signature Page — Fourth Amendment

 

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CREDIT SUISSE AG, CAYMAN ISLANDS

 

BRANCH, as a Lender

 

 

 

 

 

By:

/s/Mikhail Faybusovich

 

 

Name: Mikhail Faybusovich

 

 

Title: Authorized Signatory

 

 

 

 

 

By:

/s/Sean Macgregor

 

 

Name: Sean Macgregor

 

 

Title: Authorized Signatory

 

Signature Page — Fourth Amendment

 

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DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender

 

 

 

 

 

 

 

By:

/s/ Peter Cucchiara

 

 

Name: Peter Cucchiara

 

 

Title: Vice President

 

 

 

 

 

 

 

By:

/s/Kirk Tashjian

 

 

Name: Kirk L. Tashjian

 

 

Title: Director

 

Signature Page — Fourth Amendment

 

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ROYAL BANK OF CANADA, as a Lender

 

 

 

 

 

By:

/s/ Mark Lumpkin Jr.

 

 

Name: Mark Lumpkin Jr.

 

 

Title: Authorized Signatory

 

Signature Page — Fourth Amendment

 

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UBS AG, Stamford Branch, as a Lender

 

 

 

 

 

 

 

By:

/s/ Craig Pearson

 

 

Name: Craig Pearson

 

 

Title: Associate Director

 

 

Banking Product Services, US

 

 

 

 

 

 

 

By:

/s/ Darlene Arias

 

 

Name: Darlene Arias

 

 

Title: Director

 

 

Banking Product Services, US

 

Signature Page — Fourth Amendment

 

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CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender

 

 

 

 

 

By:

/s/ Robert James

 

 

Name: Robert James

 

 

Title: Director

 

Signature Page — Fourth Amendment

 

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CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCK, as a Lender

 

 

 

 

 

By:

/s/Trudy Nelson

 

 

Name: Trudy Nelson

 

 

Title: Authorized Signatory

 

 

 

 

 

 

 

By:

/s/William Reid

 

 

Name: William M. Reid

 

 

Title: Authorized Signatory

 

Signature Page — Fourth Amendment

 

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WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender

 

 

 

 

 

By:

/s/ Collin Mayer

 

 

Name: Collin Mayer

 

 

Title: Assistant Vice President

 

Signature Page — Fourth Amendment

 

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COMPASS BANK, as a Lender

 

 

 

 

 

By:

/s/ Kathleen J. Bowen

 

 

Name: Kathleen J. Bowen

 

 

Title: Senior Vice President

 

Signature Page — Fourth Amendment

 

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SOCIETE GENERALE, as a Lender

 

 

 

 

 

By:

/s/ Max Sonnonstine

 

 

Name: Max Sonnonstine

 

 

Title: Director

 

Signature Page — Fourth Amendment

 

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SUNTRUST BANK, as a Lender

 

 

 

 

 

By:

/s/ Chulley Bogle

 

 

Name: Chulley Bogle

 

 

Title: Vice President

 

Signature Page — Fourth Amendment

 

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TORONTO DOMINION (NEW YORK) LLC, as a Lender

 

 

 

 

 

By:

/s/ Marie Fernandes

 

 

Name: Marie Fernandes

 

 

Title: Manager

 

Signature Page — Fourth Amendment

 

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Scotiabanc Inc., as a Lender

 

 

 

 

 

By:

/s/ J. F. Todd

 

 

Name: J. F. Todd

 

 

Title: Managing Director

 

Signature Page — Fourth Amendment

 

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THE BANK OF NOVA SCOTIA, as a Lender

 

 

 

 

 

By:

/s/ Alan Dawson

 

 

Name: Alan Dawson

 

 

Title: Director

 

Signature Page — Fourth Amendment

 

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DNB CAPITAL LLC, as a Lender

 

 

 

 

 

By:

/s/Joe Hykle

 

 

Name: Joe Hykle

 

 

Title: Senior Vice President

 

 

 

 

 

 

 

By:

/s/Jamie Grubb

 

 

Name: Jamie Grubb

 

 

Title: Vice President

 

Signature Page — Fourth Amendment

 

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BANK OF AMERICA, NA, as a Lender

 

 

 

 

 

 

By:

/s/ Bryan Heller

 

 

Name: Bryan Heller

 

 

Title: Director

 

Signature Page — Fourth Amendment

 

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ING CAPITAL LLC, as a Lender

 

 

 

 

 

By:

/s/Scott Lamoreaux

 

 

Name: Scott Lamoreaux

 

 

Title: Director

 

 

 

 

 

 

 

By:

/s/John Strong

 

 

Name: John Strong

 

 

Title: Director

 

Signature Page — Fourth Amendment

 

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MIZUHO BANK, LTD., as a Lender

 

 

 

 

 

By:

/s/ James Fayen

 

 

Name: James R. Fayen

 

 

Title: Deputy General Manager

 

Signature Page — Fourth Amendment

 

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CITIZENS BANK, N.A., as a Lender

 

 

 

 

 

By:

/s/ Scott Donaldson

 

 

Name: Scott Donaldson

 

 

Title: Senior Vice President

 

Signature Page — Fourth Amendment

 

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SUMITOMO LITSUI BANKING CORPORATION, as a Lender

 

 

 

 

 

By:

/s/ James D. Weinstein

 

 

Name: James D. Weinstein

 

 

Title: Managing Director

 

Signature Page — Fourth Amendment

 

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THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender

 

 

 

 

 

By:

/s/ Sherwin Brandford

 

 

Name: Sherwin Brandford

 

 

Title: Director

 

Signature Page — Fourth Amendment

 

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GOLDMAN SACHS BANK USA, as a Lender

 

 

 

 

 

By:

/s/ Rebecca Kratz

 

 

Name: Rebecca Kratz

 

 

Title: Authorized Signatory

 

Signature Page — Fourth Amendment

 

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MORGAN STANLEY BANK, N.A., as a Lender

 

 

 

 

 

By:

/s/ Michael King

 

 

Name: Michael King

 

 

Title: Authorized Signatory

 

Signature Page — Fourth Amendment

 

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MUFG UNION BANK, N.A., as a Lender

 

 

 

 

 

 

By:

/s/ Brian Hawk

 

 

Name: Brian Hawk

 

 

Title: Vice President

 

Signature Page — Fourth Amendment

 

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COMERICA BANK, as a Lender

 

 

 

 

 

By:

/s/ Jeffery Treadway

 

 

Name: Jeffery Treadway

 

 

Title: Senior Vice President

 

Signature Page — Fourth Amendment

 

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NOMURA CORPORATE FUDNING AMERICAS, LLC, as a Lender

 

 

 

 

 

By:

/s/ Andrew Keith

 

 

Name: Andrew Keith

 

 

Title: Executive Director

 

Signature Page — Fourth Amendment

 

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