Document:

EX-10.2

 EXHIBIT 10.2 

Execution Version 

REGISTRATION RIGHTS AGREEMENT 

among 
 CSI COMPRESSCO LP

 and 
 THE PURCHASERS
NAMED ON SCHEDULE A HERETO 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
		
	 ARTICLE I DEFINITIONS
	  	 	1	  
			
	 Section 1.01
	  	 Definitions
	  	 	1	  
	 Section 1.02
	  	 Registrable Securities
	  	 	4	  
		
	 ARTICLE II REGISTRATION RIGHTS
	  	 	4	  
			
	 Section 2.01
	  	 Shelf Registration
	  	 	4	  
	 Section 2.02
	  	 Further Obligations
	  	 	7	  
	 Section 2.03
	  	 Cooperation by Holders
	  	 	11	  
	 Section 2.04
	  	 Expenses
	  	 	11	  
	 Section 2.05
	  	 Indemnification
	  	 	12	  
	 Section 2.06
	  	 Rule 144 Reporting
	  	 	14	  
	 Section 2.07
	  	 Transfer or Assignment of Registration Rights
	  	 	15	  
		
	 ARTICLE III MISCELLANEOUS
	  	 	15	  
			
	 Section 3.01
	  	 Communications
	  	 	15	  
	 Section 3.02
	  	 Binding Effect
	  	 	16	  
	 Section 3.03
	  	 Assignment of Rights
	  	 	16	  
	 Section 3.04
	  	 Recapitalization, Exchanges, Etc.
	  	 	16	  
	 Section 3.05
	  	 Aggregation of Registrable Securities
	  	 	17	  
	 Section 3.06
	  	 Specific Performance
	  	 	17	  
	 Section 3.07
	  	 Counterparts
	  	 	17	  
	 Section 3.08
	  	 Governing Law, Submission to Jurisdiction
	  	 	17	  
	 Section 3.09
	  	 Waiver of Jury Trial
	  	 	17	  
	 Section 3.10
	  	 Entire Agreement
	  	 	18	  
	 Section 3.11
	  	 Amendment
	  	 	18	  
	 Section 3.12
	  	 No Presumption
	  	 	18	  
	 Section 3.13
	  	 Obligations Limited to Parties to Agreement
	  	 	18	  
	 Section 3.14
	  	 Interpretation
	  	 	19	  
	 Section 3.15
	  	 Severability
	  	 	19	  

  

	
	SCHEDULE A — Purchaser Name; Notice and Contact Information
	
	EXHIBIT A — Selling Holders; Plan of Distribution

  
 i 

 REGISTRATION RIGHTS AGREEMENT 

This REGISTRATION RIGHTS AGREEMENT, dated as of August 8, 2016 (this “Agreement”) is entered into by and among
CSI COMPRESSCO LP, a Delaware limited partnership (the “Partnership”), and each of the Persons set forth on Schedule A hereto (the “Purchasers”). 

WHEREAS, this Agreement is made in connection with the closing of the issuance and sale of the Purchased Units pursuant to the Series A
Preferred Unit Purchase Agreement, dated as of August 8, 2016 (the date of such closing, the “Closing Date”), by and among the Partnership and the Purchasers (the “Purchase Agreement”); and 

WHEREAS, the Partnership has agreed to provide the registration and other rights set forth in this Agreement for the benefit of the Purchasers
pursuant to the Purchase Agreement. 
 NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 
 ARTICLE I

 DEFINITIONS 

Section 1.01 Definitions. As used in this Agreement, the following terms have the meanings indicated: 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more
intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” (including, with correlative meanings, “controlled by” and “under common control
with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. For the avoidance of doubt, for
purposes of this Agreement, (a) the Partnership Entities and the General Partner, on the one hand, and any Purchaser, on the other, shall not be considered Affiliates and (b) any fund or account managed, advised or subadvised, directly or
indirectly, by a Purchaser or its Affiliates, shall be considered an Affiliate of such Purchaser. 
 “Agreement” has
the meaning set forth in the introductory paragraph of this Agreement. 
 “Allowable Grace Period” has the meaning
specified in section 2.01(d). 
 “Business Day” means any day other than a Saturday, Sunday, any federal legal
holiday or day on which banking institutions in the State of New York or State of Texas are authorized or required by law or other governmental action to close. 

“Closing Date” has the meaning set forth in the Recitals of this Agreement. 

“Commission” means the United States Securities and Exchange Commission. 

  
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 “Common Units” means the common units representing limited partner
interests in the Partnership and having the rights and obligations specified in the Partnership Agreement. 
 “Effective
Date” means the date of effectiveness of any Registration Statement. 
 “Effectiveness Period” has the
meaning specified in Section 1.02. 
 “Eligible Market” means The New York Stock Exchange, Inc., the NYSE MKT LLC,
The NASDAQ Global Select Market, The NASDAQ Capital Market or The NASDAQ Global Market. 
 “Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder. 

“General Partner” means CSI Compressco GP Inc., a Delaware corporation and the general partner of the Partnership.

 “Grace Period” has the meaning specified in section 2.01(d). 

“Holder” means the record holder of any Registrable Securities. 

“Holder Underwriter Registration Statement” has the meaning specified in Section 2.02(p). 

“Lead Investor” means HBC MLP LLC or its designee. 

“Liquidated Damages” has the meaning specified therefor in Section 2.01(b). 

“Liquidated Damages Multiplier” means the product of (i) the Purchased Unit Price and (ii) the number of Registrable
Securities then held by the applicable Holder. 
 “Losses” has the meaning specified in Section 2.05(a). 

“NASDAQ” means the Nasdaq Global Market. 

“Partnership” has the meaning set forth in the introductory paragraph of this Agreement. 

“Partnership Agreement” means the Second Amended and Restated Agreement of Limited Partnership of the Partnership,
dated as of the date hereof, as amended. 
 “Partnership Entities” means, collectively the Partnership and the
Partnership’s majority owned Subsidiaries. 
 “Person” means any individual, corporation, company, voluntary
association, partnership, joint venture, trust, limited liability company, unincorporated organization, government or any agency, instrumentality or political subdivision thereof or any other form of entity. 

  
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 “PIK Units” means additional Series A Preferred Units issued by the
Partnership to the Purchasers as in-kind distributions pursuant to the terms of the Partnership Agreement. 
 “Purchase
Agreement” has the meaning set forth in the Recitals of this Agreement. 
 “Purchase Price” has the
meaning set forth in the Purchase Agreement. 
 “Purchased Units” means the Series A Preferred Units to be
issued and sold to the Purchasers pursuant to the Purchase Agreement. 
 “Purchasers” has the meaning set forth in
the introductory paragraph of this Agreement. 
 “Registration” means any registration pursuant to this Agreement,
including pursuant to a Registration Statement. 
 “Registrable Securities” means 130% of the Common Units issuable
upon conversion of the Purchased Units and the PIK Units (without regard to any limitation or conversion included in the Partnership Agreement), all of which are subject to the rights provided herein until such time as such securities cease to be
Registrable Securities pursuant to Section 1.02. 
 “Registration Expenses” has the meaning specified in
Section 2.04(a). 
 “Registration Statement” has the meaning specified in Section 2.01(a). 

“Required Holders” means the Holders of at least a majority of the Registrable Securities and shall include the Lead
Investor so long as the Lead Investor or any of its Affiliates holds any Registrable Securities. 
 “Securities Act”
means the Securities Act of 1933, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder. 

“Selling Expenses” has the meaning specified in Section 2.04(a). 

“Selling Holder” means a Holder who is selling Registrable Securities pursuant to a registration statement. 

“Selling Holder Indemnified Persons” has the meaning specified in Section 2.05(a). 

“Series A Conversion Dates” means the date on which all of the Purchased Units are
convertible into Common Units pursuant to the terms of the Partnership Agreement. 
 “Series A Conversion Rate” has
the meaning specified in the Partnership Agreement. 
 “Series A Preferred Units”
means the Series A Preferred Units representing limited partner interests in the Partnership and having the rights and obligations specified in the Partnership Agreement. 

“Subsidiary” means, as to any Person, any corporation or other entity of which: (a) such Person or a Subsidiary of
such Person is a general partner or, in the case of a limited liability 

  
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company, the managing member or manager thereof; (b) at least a majority of the outstanding equity interest having by the terms thereof ordinary voting power to elect a majority of the board of
directors or similar governing body of such corporation or other entity (irrespective of whether or not at the time any equity interest of any other class or classes of such corporation or other entity shall have or might have voting power by reason
of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more of its Subsidiaries; or (c) any corporation or other entity as to which such Person consolidates for accounting purposes.

 “Target Effective Date” has the meaning specified therefor in Section 2.01(a). 

“Trading Day” means any day on which the Common Units are traded on the NASDAQ, or, if the NASDAQ is not the principal
trading market for the Common Units, then on the principal securities exchange or securities market on which the Common Units are then traded; provided that “Trading Day” shall not include any day on which the Common Units are scheduled to
trade on such exchange or market for less than 4.5 hours or any day that the Common Units are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing
time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time). 
 Section 1.02 Registrable
Securities. Any Registrable Security will cease to be a Registrable Security upon the earliest to occur of the following: (a) when a registration statement covering such Registrable Security becomes or has been declared effective
by the Commission and such Registrable Security has been sold or disposed of pursuant to such effective registration statement, (b) when such Registrable Security has been disposed of (excluding transfers or assignments by a Holder to an Affiliate
or to another Holder or any of its Affiliates or to any assignee or transferee to whom the rights under this Agreement have been transferred pursuant to Section 2.07) pursuant to any section of Rule 144 (or any similar provision then in
effect) under the Securities Act, (c) when such Registrable Security is held by the Partnership or one of its direct or indirect Subsidiaries, (d) when such Registrable Security has been sold or disposed of in a private transaction in which the
transferor’s rights under this Agreement are not assigned to the transferee of such securities pursuant to Section 2.07 and (e) when such Holder may sell all of the Registrable Securities without restriction or limitation pursuant to
Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the Securities Act (the “Effectiveness Period”). 

ARTICLE II 
 REGISTRATION
RIGHTS 
 Section 2.01 Shelf Registration. 

(a) Shelf Registration. The Partnership shall use its commercially reasonable efforts to (i) prepare and file within 90
days after the Closing Date an initial registration statement under the Securities Act to permit the public resale of Registrable Securities from time to time as permitted by Rule 415 (or any similar provision adopted by the Commission then in
effect) of the Securities Act (a “Registration Statement”) and (ii) cause such initial Registration Statement to become effective no later than 180 days after the Closing Date (the “Target Effective
Date”). 

  
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The Partnership will use its commercially reasonable efforts to cause such initial Registration Statement filed pursuant to this Section 2.01(a) to be continuously effective under the
Securities Act, with respect to any Holder, until the expiration of the Effectiveness Period. A Registration Statement filed pursuant to this Section 2.01(a) shall be on such appropriate registration form of the Commission as shall be
selected by the Partnership; provided that, if the Partnership is then eligible, it shall file such Registration Statement on Form S-3, provided further, that if the Partnership files a Registration Statement on Form S-1 and it is declared
effective, the Partnership shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective by the Commission. A
Registration Statement when declared effective (including the documents incorporated therein by reference) will comply as to form in all material respects with all applicable requirements of the Securities Act and the Exchange Act and such
Registration Statement (and, in the case of any prospectus contained in such Registration Statement, in the light of the circumstances under which a statement is made) will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not misleading. The Registration Statement shall contain (except if otherwise directed by the Required Holders) the “Selling Holders” and
“Plan of Distribution” sections in substantially the form attached hereto as Exhibit A. As soon as practicable following the Effective Date, but in any event within two (2) Trading Days of such date, the Partnership
shall provide the Holders with written notice of the effectiveness of a Registration Statement. By 9:30 a.m. New York time on the Business Day following the Effective Date of any Registration Statement required to be filed pursuant to this
Agreement, the Partnership shall file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement. 

(b) Effect of Failures. If (A) a Registration Statement required by Section 2.01(a) covering all Registrable
Securities does not become or is not declared effective by the Target Effective Date, (B) on any date after the Target Effective Date sales of all of the Registrable Securities cannot be made (other than during an Allowable Grace Period) pursuant to
such Registration Statement (including, without limitation, because of a failure to keep such Registration Statement effective, a failure to disclose such information as is necessary for sales to be made pursuant to such Registration Statement or a
failure to register a sufficient number of Common Units) or (C) at any time during the period commencing from the six (6) month anniversary of the Closing Date and ending at such time that all of the Registrable Securities, if a Registration
Statement is not available for the resale of all of the Registrable Securities, may be sold without restriction or limitation pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1), if the Partnership shall (i) fail
for any reason to satisfy the requirements of Rule 144(c)(1), including, without limitation, the failure to satisfy the current public information requirements under Rule 144(c) or (ii) if the Partnership has ever been an issuer described in Rule
144(i)(1)(i) or becomes such an issuer in the future, and the Partnership shall fail to satisfy any condition set forth in Rule 144(i)(2) (collectively, the “Obligation Failures”), then each Holder shall be entitled to a
payment (with respect to each of the Holder’s Registrable Securities), as sole monetary remedy for the damages to any Holder by reason of any such delay in or reduction of its ability to sell the Registrable Securities (which remedy shall not
be exclusive of any other remedies available in equity, including, without limitation, specific performance), as liquidated damages and not as a penalty, (i) for each non-overlapping 30-day 

  
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period for the first 60 days following the Target Effective Date, an amount equal to 0.25% per annum of the Liquidated Damages Multiplier, which shall accrue daily, and (ii) for each
non-overlapping 30-day period beginning on the 61st day following the Target Effective Date, an amount equal to the amount set forth in clause (i) plus an additional 0.25% per annum of the Liquidated Damages Multiplier for each
subsequent 60 days (i.e., 0.5% for 61-120 days, 0.75% for 121-180 days, and 1.0% thereafter), which shall accrue daily, up to a maximum amount equal to 1.0% of the Liquidated Damages Multiplier per non-overlapping 30 day period (the
“Liquidated Damages”), until such time as such Obligation Failure has been cured in full, and any payment of Liquidated Damages shall be prorated for any period of less than 30 days in which the payment of Liquidated Damages
ceases. The Liquidated Damages shall be payable within 10 Business Days after the end of each such 30 day period in immediately available funds to the account or accounts specified by the applicable Holders in writing. Any amount of Liquidated
Damages shall be prorated for any period of less than 30 days accruing during any period for which a Holder is entitled to Liquidated Damages hereunder. In the event the Partnership fails to pay any Liquidated Damages in a timely manner, such
Liquidated Damages shall bear interest at the rate of one and one-half percent (1.5%) per month (prorated for partial months) until paid in full. Notwithstanding the foregoing, if the Partnership certifies that it is unable to pay Liquidated
Damages (including, without limitation, any accrued interest thereon) in cash because such payment would result in a breach under the Partnership’s Compressco Credit Facility (as defined in the Purchase Agreement) as existing on the date hereof
(without any amendment, change or modification thereof on or after the date hereof), then the Partnership may pay the Liquidated Damages in kind in the form of the issuance of additional PIK Units, which amount of Liquidated Damages (including,
without limitation, any accrued interest thereon) due pursuant to this Section 2.01(b) shall increase the dollar amount underlying the Series A Preferred Units held by such Holder. 

(c) Waiver of Liquidated Damages. If the Partnership is unable to cause a Registration Statement to become effective on or
before the Target Effective Date, then the Partnership may request a waiver of the Liquidated Damages, which may be granted by the consent of the Holders of at least 75% of the Registrable Securities and shall include the Lead Investor so long as
the Lead Investor or any of its Affiliates holds any Registrable Securities, in their sole discretion, and which such waiver shall apply to all Holders of Registrable Securities included in such Registration Statement. 

(d) Delay Rights. Notwithstanding anything to the contrary contained herein, at any time after the Effective Date, the
Partnership may, upon written notice to any Selling Holder whose Registrable Securities are included in a Registration Statement (a “Delay Notice”), suspend such Selling Holder’s use of any prospectus which is a part of
such Registration Statement (in which event the Selling Holder shall suspend sales of the Registrable Securities pursuant to such Registration Statement) if (i) the Partnership is pursuing an acquisition, merger, reorganization, disposition or other
similar transaction and the Partnership determines in good faith and on the advice of counsel that the Partnership’s ability to pursue or consummate such a transaction would be materially and adversely affected by any required disclosure of
such transaction in such Registration Statement or (ii) the Partnership has experienced some other material non-public event, the disclosure of which at such time, in the good faith judgment of the Partnership and its counsel, would materially and
adversely affect the Partnership (each, a “Grace Period”); provided, however, that in no event shall any Grace Period exceed thirty (30) 

  
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consecutive Trading Days, or an aggregate of sixty (60) Trading Days during any three hundred sixty five (365) day period and the first day of any Grace Period must be at least five (5) Trading
Days after the last day of any prior Grace Period (each, an “Allowable Grace Period”). Each Delay Notice shall notify the Holders of the existence of material, non-public information giving rise to the delay rights being
exercised pursuant to this Section 2.01(d) (provided that in each Delay Notice the Partnership will not disclose the content of such material, non-public information to the Purchasers), and notify the Holders the dates on which the Grace Period
begins. Upon disclosure of such information or the termination of the condition described above, the Partnership shall provide prompt written notice to the Selling Holders whose Registrable Securities are included in such Registration Statement, and
shall promptly terminate any suspension of sales it has put into effect and shall take such other actions necessary or appropriate to permit registered sales of Registrable Securities as contemplated in this Agreement. For purposes of
determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Holders receive the Delay Notice and shall end on and include the later of the date the Holders receive a written notice of the end of such
Grace Period pursuant to the immediately preceding sentence and the date referred to in such notice. Notwithstanding anything to the contrary, the Partnership shall cause its transfer agent to deliver unlegended Common Units to a transferee of
a Holder in connection with any sale of Registrable Securities with respect to which a Holder has entered into a contract for sale, prior to such Holder’s receipt of the Delay Notice and for which such Purchaser has not yet settled, unless the
Partnership and its counsel determine that such sale may violate the Securities Act. 
 (e) Legal Counsel. The Required
Holders shall have the right to select one legal counsel to review and oversee any registration pursuant to Section 2.01(a) (“Legal Counsel”), which shall be Schulte Roth & Zabel LLP or such other counsel as
thereafter designated by the Required Holders. The Partnership and Legal Counsel shall reasonably cooperate with each other in performing the Partnership’s obligations under this Agreement.

Section 2.02 Further Obligations. In connection with its obligations under this Article II, the Partnership will:

 (a) promptly prepare and file with the Commission such amendments (including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective at all
times during the Effectiveness Period, and, during such period, comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such Registration Statement. In the case of amendments and
supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 2.02(a)) by reason of the Partnership filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous report
under the Exchange Act, the Partnership shall have incorporated such report by reference into such Registration Statement, if applicable, or shall use its commercially reasonable efforts to file such amendments or supplements with the Commission on
the same day on which the Exchange Act report is filed which created the requirement for the Partnership to amend or supplement such Registration Statement; 

  
 7 

 (b) furnish to each Selling Holder and Legal Counsel (i) as far in advance as reasonably
practicable, but in any event at least five (5) Business Days, before filing a Registration Statement or any other registration statement contemplated by this Agreement or any supplement or amendment thereto, upon request, copies of reasonably
complete drafts of all such documents proposed to be filed (including exhibits and each document incorporated by reference therein to the extent then required by the rules and regulations of the Commission), and provide each such Selling Holder and
Legal Counsel the opportunity to object to any information pertaining to such Selling Holder and its plan of distribution that is contained therein and, to the extent timely received, make the corrections reasonably requested by such Selling Holder
with respect to such information prior to filing such Registration Statement or such other registration statement and the prospectus included therein or any supplement or amendment thereto, (ii) promptly after the same is prepared and filed with the
Commission, such number of copies of such Registration Statement or such other registration statement and the prospectus included therein and any supplements and amendments thereto as such Persons may reasonably request in order to facilitate the
public sale or other disposition of the Registrable Securities covered by such Registration Statement or other registration statement and (iii) upon the effectiveness of any Registration Statement, one copy of the prospectus included in such
Registration Statement and all amendments and supplements thereto; 
 (c) if applicable, use its commercially reasonable efforts to promptly
register or qualify the Registrable Securities covered by any Registration Statement or any other registration statement contemplated by this Agreement under the securities or blue sky laws of such jurisdictions as the Selling Holders shall
reasonably request; provided, however, that the Partnership will not be required to qualify generally to transact business in any jurisdiction where it is not then required to so qualify or to take any action that would subject it to general
service of process in any such jurisdiction where it is not then so subject; 
 (d) promptly notify each Selling Holder in writing (provided
that in no event shall such notice contain any material, nonpublic information), at any time when a prospectus relating thereto is required to be delivered by any of them under the Securities Act, of (i) the filing of a Registration Statement or any
other registration statement contemplated by this Agreement or any prospectus or prospectus supplement to be used in connection therewith, or any amendment or supplement thereto, and, with respect to a Registration Statement or any other
registration statement or any post-effective amendment thereto, when the same has become effective; and (ii) the receipt of any written comments from the Commission with respect to any filing referred to in clause (i) and any written request by the
Commission for amendments or supplements to any such Registration Statement or any other registration statement or any prospectus or prospectus supplement thereto; 

(e) promptly notify each Selling Holder in writing (provided that in no event shall such notice contain any material, nonpublic information),
at any time when a prospectus relating thereto is required to be delivered by any of them under the Securities Act, of (i) the happening of any event as a result of which the prospectus or prospectus supplement contained in a Registration Statement
or any other registration statement contemplated by this Agreement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not
misleading (in the case of any prospectus contained therein, in the light of the circumstances under which a 

  
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statement is made); (ii) the issuance or threat of issuance by the Commission of any stop order suspending the effectiveness of a Registration Statement or any other registration statement
contemplated by this Agreement, or the initiation of any proceedings for that purpose; or (iii) the receipt by the Partnership of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the
applicable securities or blue sky laws of any jurisdiction. Following the provision of such notice, the Partnership agrees to, as promptly as practicable, amend or supplement the prospectus or prospectus supplement or take other appropriate
action so that the prospectus or prospectus supplement does not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of
the circumstances then existing and to take such other action as is reasonably necessary to remove a stop order, suspension, threat thereof or proceedings related thereto. By 9:30 a.m. New York City time on the Business Day following the date any
post-effective amendment has become effective, the Partnership shall file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement; 

(f) upon request and subject to appropriate confidentiality obligations, furnish to each Selling Holder copies of any and all transmittal
letters or other correspondence with the Commission, the staff of the Commission or any other governmental agency or self-regulatory body or other body having jurisdiction (including any domestic or foreign securities exchange) relating to such
offering of Registrable Securities; 
 (g) otherwise use its commercially reasonable efforts to comply with all applicable rules and
regulations of the Commission; 
 (h) use its commercially reasonable efforts to cause all Registrable Securities registered pursuant to
this Agreement to be listed on each securities exchange or nationally recognized quotation system on which similar securities issued by the Partnership are then listed; 

(i) use its commercially reasonable efforts to cause Registrable Securities to be registered with or approved by such other governmental
agencies or authorities as may be necessary by virtue of the business and operations of the Partnership to enable the Selling Holders to consummate the disposition of such Registrable Securities; 

(j) provide a transfer agent and registrar for all Registrable Securities covered by any Registration Statement not later than the Effective
Date of such Registration Statement; 
 (k) enter into customary agreements and take such other actions as are reasonably requested by the
Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition of Registrable Securities (including making appropriate officers of the General Partner available to participate in customary marketing activities); 

(l) if reasonably requested by a Selling Holder, (i) incorporate in a prospectus supplement or post-effective amendment such information as
such Selling Holder reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including information with respect to the number of Registrable Securities being offered or sold, the purchase price
being paid therefor and any other terms of the offering of the Registrable 

  
 9 

 
Securities to be sold in such offering; and (ii) make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such
prospectus supplement or post-effective amendment; 
 (m) if reasonably required by the Partnership’s transfer agent, the Partnership
shall promptly deliver any authorizations, certificates and directions required by the transfer agent which authorize and direct the transfer agent to transfer such Registrable Securities without legend upon sale by the Holder of such Registrable
Securities under the Registration Statement; 
 (n) use its commercially reasonable efforts to prevent the issuance of any stop order or
other suspension of effectiveness of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such
order or suspension as soon as reasonably practicable and to notify Legal Counsel and each Holder who holds Registrable Securities being sold of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose; 
 (o) make generally available to its security holders as soon as practical, but not later
than ninety (90) days after the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions of Rule 158 under the securities Act) covering a twelve-month period beginning not
later than the first day of the Partnership’s fiscal quarter next following the applicable Effective Date of a Registration Statement; and 

(p) if any Holder could reasonably be deemed to be an “underwriter,” as defined in Section 2(a)(11) of the Securities
Act, in connection with the Registration Statement and any amendment or supplement thereof (a “Holder Underwriter Registration Statement”), then the Partnership will reasonably cooperate with such Holder in allowing such
Holder to conduct customary “underwriter’s due diligence” with respect to the Partnership and satisfy its obligations in respect thereof. In addition, at any Holder’s request, the
Partnership will furnish to such Holder, on the date of the effectiveness of the Holder Underwriter Registration Statement and thereafter from time to time on such dates as such Holder may reasonably request (provided that such request shall not be
more frequently than on an annual basis unless such Holder is offering Registrable Securities pursuant to a Holder Underwriter Registration Statement), (i) a “comfort” letter, dated such date, from the Partnership’s
independent certified public accountants in form and substance as has been customarily given by independent certified public accountants to underwriters in underwritten public offerings of securities by the Partnership, addressed to such Holder,
(ii) an opinion, dated as of such date, of counsel representing the Partnership for purposes of the Holder Underwriter Registration Statement, in form, scope and substance as has been customarily given in underwritten public offerings of securities
by the Partnership, including standard “10b-5” negative assurance for such offerings, addressed to such Holder and (iii) a standard officer’s certificate from the chief executive officer or chief financial officer, or
other officers serving such functions, of the General Partner addressed to the Holder, as has been customarily given by such officers in underwritten public offerings of securities by the Partnership. The Partnership will also use its reasonable
efforts to provide Legal Counsel to such Holder with an opportunity to review and comment upon any such Holder Underwriter Registration Statement, and any amendments and supplements thereto, prior to its filing with the Commission.

  
 10 

 Notwithstanding anything to the contrary in this Section 2.02, the Partnership will not
name a Holder as an underwriter (as defined in Section 2(a)(11) of the Securities Act) in any public disclosure or filing with the Commission or any Eligible Market (provided, however, that the foregoing shall not prohibit the
Partnership from including the disclosure found in the “Plan of Distribution” section attached hereto as Exhibit A in a Registration statement), without such Holder’s express prior written consent. If the staff of the
Commission requires the Partnership to name any Holder as an underwriter (as defined in Section 2(a)(11) of the Securities Act), and such Holder does not give its express prior written consent thereto, then such Holder’s Registrable Securities
shall not be included on the applicable Registration Statement and the Partnership shall have no further obligations hereunder with respect to Registrable Securities held by such Holder, unless such Holder has not had an opportunity to conduct
customary underwriter’s due diligence as set forth in subsection (p) of this Section 2.02 with respect to the Partnership at the time such Holder’s consent is sought. 

Each Selling Holder, upon receipt of notice from the Partnership of the happening of any event of the kind described in subsection (g)
of this Section 2.02, shall promptly discontinue offers and sales of the Registrable Securities by means of a prospectus or prospectus supplement until such Selling Holder’s receipt of the copies of the supplemented or amended prospectus
contemplated by subsection (g) of this Section 2.02 or until it is advised in writing by the Partnership that the use of the prospectus may be resumed and has received copies of any additional or supplemental filings incorporated by
reference in the prospectus, and, if so directed by the Partnership, such Selling Holder will deliver to the Partnership (at the Partnership’s expense) all copies in their possession or control, other than permanent file copies then in such
Selling Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice. 

Section 2.03 Cooperation by Holders. The Partnership shall have no obligation to include Registrable Securities of a Holder
in a Registration Statement who has failed to timely furnish such information that the Partnership determines, after consultation with its counsel, is reasonably required in order for any registration statement or prospectus supplement, as
applicable, to comply with the Securities Act. To the extent the Partnership requires any information from any Holder for inclusion in a Registration statement, it shall deliver a written notice to such Holder requesting such Holder to deliver such
information within five (5) Business Days of the receipt by such Holder of such written notice. 
 Section 2.04 Expenses. 

(a) Certain Definitions. “Registration Expenses” shall not include Selling Expenses but otherwise
means all expenses incident to the Partnership’s performance under or compliance with this Agreement to effect the registration of Registrable Securities on a Registration Statement pursuant to Section 2.01, and the disposition of such
Registrable Securities, including, without limitation, all registration, filing, securities exchange listing and NASDAQ fees (or fees of any other principal trading market on which the Common Units then trade), all registration, filing,
qualification and other fees and expenses of complying with 

  
 11 

 
securities or blue sky laws, fees of the Financial Industry Regulatory Authority, fees of transfer agents and registrars, all word processing, duplicating and printing expenses, and the fees and
disbursements of counsel and independent public accountants for the Partnership, including the expenses of any special audits or “cold comfort” letters required by or incident to such performance and compliance. “Selling
Expenses” means all underwriting fees, discounts and selling commissions and transfer taxes allocable to the sale of the Registrable Securities. 

(b) Expenses. The Partnership will pay all reasonable Registration Expenses, as determined in good faith, in connection
with a shelf Registration, whether or not any sale is made pursuant to such shelf Registration. Each Selling Holder shall pay its pro rata share of all Selling Expenses in connection with any sale of its Registrable Securities
hereunder. In addition, except as otherwise provided in Section 2.05, the Partnership shall not be responsible for professional fees (including legal fees) incurred by Holders in connection with the exercise of such Holders’ rights
hereunder. 
 Section 2.05 Indemnification. 

By the Partnership. In the event of a registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the
Partnership will indemnify and hold harmless each Selling Holder thereunder, its directors, officers, managers, partners, employees, members, representatives and agents and each Person, if any, who controls such Selling Holder within the
meaning of the Securities Act and the Exchange Act, and their respective directors, officers, managers, partners, employees, members, representatives or agents (collectively, the “Selling Holder Indemnified Persons”),
against any losses, claims, damages, expenses or liabilities (including reasonable attorneys’ fees and expenses) (collectively, “Losses”), joint or several, to which such Selling Holder Indemnified Person may become
subject under the Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue
statement of any material fact (in the case of any prospectus, in light of the circumstances under which such statement is made) contained in (which, for the avoidance of doubt, includes documents incorporated by reference in) the applicable
Registration Statement or other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement or final prospectus contained therein, or any amendment or supplement thereof, or any free writing prospectus
relating thereto, or any filing made in connection with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in light of the circumstances under which they were made) not misleading or (ii)
any violation or alleged violation by the Partnership of this Agreement, the Securities Act or the Exchange Act, and will reimburse each such Selling Holder Indemnified Person for any legal or other expenses reasonably incurred by them, as incurred,
in connection with investigating, defending or resolving any such Loss or actions or proceedings; provided, however, that the Partnership will not be liable in any such case if and to the extent that any such Loss arises out of or is based
solely upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by such Selling Holder Indemnified Person in writing specifically for use in the applicable Registration
Statement or other registration statement, or prospectus supplement, as applicable. 

  
 12 

 
Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Selling Holder Indemnified Person, and shall survive the transfer of such
securities by such Selling Holder. 
 (a) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to
indemnify and hold harmless the Partnership, the Partnership Entities, the General Partner’s directors, officers, employees and agents and each Person, who, directly or indirectly, controls the Partnership within the meaning of the Securities
Act or of the Exchange Act to the same extent as the foregoing indemnity from the Partnership to the Selling Holders, but only with respect to Losses incurred solely and to the extent of information regarding such Selling Holder furnished in writing
by or on behalf of such Selling Holder expressly for inclusion in a Registration Statement or any other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement or final prospectus contained therein,
or any amendment or supplement thereto or any free writing prospectus relating thereto; provided, however, that the liability of each Selling Holder shall not be greater in amount than the dollar amount of the proceeds (net of any Selling
Expenses) received by such Selling Holder from the sale of the Registrable Securities giving rise to such indemnification. 
 (b)
Notice. Promptly after receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party hereunder,
notify the indemnifying party in writing thereof, but the omission to so notify the indemnifying party shall not relieve it from any liability that it may have to any indemnified party other than under this Section 2.05(c) except to the
extent that the indemnifying party is materially prejudiced by such failure. In any action brought against any indemnified party, it shall notify the indemnifying party of the commencement thereof. The indemnifying party shall be entitled to
participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party and, after notice from the indemnifying party to such indemnified party of its election so to
assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 2.05 for any legal expenses subsequently incurred by such indemnified party in connection with the defense
thereof other than reasonable costs of investigation and of liaison with counsel so selected; provided, however, that, (i) if the indemnifying party has failed to assume the defense or employ counsel reasonably satisfactory to the indemnified
party or (ii) if the defendants in any such action include both the indemnified party and the indemnifying party and counsel to the indemnified party shall have concluded that there may be reasonable defenses available to the indemnified party that
are different from or additional to those available to the indemnifying party, or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, then the indemnified party shall have the
right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the reasonable expenses and fees of such separate counsel and other reasonable expenses related to such
participation to be reimbursed by the indemnifying party as incurred. Notwithstanding any other provision of this Agreement, no indemnifying party shall settle any action brought against any indemnified party with respect to which such indemnified
party may be entitled to indemnification hereunder without the prior written consent of the indemnified party, unless the settlement thereof imposes no liability or obligation on, includes a complete and unconditional release from liability of, and
does not contain any admission of wrongdoing by, the indemnified party. 

  
 13 

 (c) Contribution. If the indemnification provided for in this Section
2.05 is held by a court or government agency of competent jurisdiction to be unavailable to any indemnified party or is insufficient to hold them harmless in respect of any Losses, then each such indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Losses in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and of the
indemnified party, on the other hand, in connection with the statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations; provided, however, that in no event shall any Selling Holder be
required to contribute an aggregate amount in excess of the dollar amount of net proceeds (net of Selling Expenses) received by such Selling Holder from the sale of Registrable Securities giving rise to such indemnification. The relative fault
of the indemnifying party, on the one hand, and the indemnified party, on the other, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact has been made by, or relates to, information supplied by such party in writing, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The
parties hereto agree that it would not be just and equitable if contributions pursuant to this paragraph were to be determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations
referred to herein. The amount paid by an indemnified party as a result of the Losses referred to in the first sentence of this paragraph shall be deemed to include any legal and other expenses reasonably incurred by such indemnified party in
connection with investigating, defending or resolving any Loss that is the subject of this paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
from any Person who is not guilty of such fraudulent misrepresentation. 
 (d) Other Indemnification. The provisions of
this Section 2.05 shall be in addition to any other rights to indemnification or contribution that an indemnified party may have pursuant to law, equity, contract or otherwise. 

Section 2.06 Rule 144 Reporting. With a view to making available the benefits of certain rules and regulations of the
Commission that may permit the sale of the Registrable Securities to the public without registration, the Partnership agrees to use its commercially reasonable efforts to: 

(a) make and keep public information regarding the Partnership available, as those terms are understood and defined in Rule 144 under the
Securities Act (or any similar provision then in effect), at all times from and after the date hereof; 
 (b) file with the Commission in a
timely manner all reports and other documents required of the Partnership under the Securities Act and the Exchange Act at all times from and after the date hereof; and 

(c) so long as a Holder owns any Registrable Securities, furnish (i) to the extent accurate, forthwith upon request, a written statement of
the Partnership that it has complied with the reporting requirements of Rule 144 under the Securities Act (or any similar provision then in effect), the Securities Act and the Exchange Act, and (ii) unless otherwise available via the

  
 14 

 
Commission’s EDGAR filing system, to such Holder forthwith upon request a copy of the most recent annual or quarterly report of the Partnership, and such other reports and documents so filed
as such Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing such Holder to sell any such securities without registration. 

Section 2.07 Transfer or Assignment of Registration Rights. The rights to cause the Partnership to register Registrable
Securities under this Article II may be transferred or assigned by each Holder to one or more transferees or assignees of Registrable Securities or securities convertible into Registrable Securities; provided, however, that (a) unless
any such transferee or assignee is an Affiliate of, and after such transfer or assignment continues to be an Affiliate of, such Holder, the amount of Registrable Securities or securities convertible into Registrable Securities, as applicable,
transferred or assigned to such transferee or assignee shall represent at least $5 million of Registrable Securities (determined by multiplying the number of Registrable Securities (on an as-converted basis without regard to any limitations on
conversions and/or redemptions of the Series A Preferred units) owned by the average of the closing price on the NASDAQ (or any other principal trading market on which the Common Units then trade) for the Common Units for the ten (10) Trading Days
preceding the date of such transfer or assignment), (b) the Partnership is given written notice prior to any said transfer or assignment, stating the name and address of each such transferee or assignee and identifying the securities with respect to
which such registration rights are being transferred or assigned and (c) each such transferee or assignee assumes in writing responsibility for its portion of the obligations of such transferring Holder under this Agreement. 

ARTICLE III 

MISCELLANEOUS 
 Section
3.01 Communications. All notices and demands provided for hereunder shall be in writing and shall be given by registered or certified mail, return receipt requested, telecopy, air courier guaranteeing overnight delivery, personal
delivery or email to the following addresses: 
 (a) If to the Purchasers, to the addresses set forth on Schedule A, with a copy to
(which shall not constitute notice): 
 Schulte Roth & Zabel LLP 

919 Third Avenue 
 New York, New
York 10022 
 Attention: Eleazer Klein, Esq. 

Facsimile: (212) 593-5955 

Email: eleazer.klein@srz.com 

  
 15 

 (b) If to the Partnership: 

CSI Compressco GP Inc. 
 CSI
Compressco LP 
 3809 S. FM 1788 

Midland, Texas 79706 

Attention: Timothy A. Knox, President 

Email: tim.knox@csicompressco.com 

with a copy to (which shall not constitute notice): 

TETRA Technologies, Inc. 
 24955
Interstate 45 North 
 The Woodlands, Texas 77380 

Attention: Bass C. Wallace, Jr. 

Email: bwallace@tetratec.com 

and 
 Vinson & Elkins L.L.P.

 1001 Fannin Street 
 Suite
2500 
 Houston TX 77002-6760 

Attention: David P. Oelman 

Email: doelman@velaw.com 
 or to such other
address as the Partnership or the Purchasers may designate to each other in writing from time to time or, if to a transferee or assignee of the Purchasers or any transferee or assignee thereof, to such transferee or assignee at the address provided
pursuant to Section 2.07. All notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; upon actual receipt if sent by certified or registered mail, return receipt
requested, or regular mail, if mailed; upon actual receipt of the facsimile or email copy, if sent via facsimile or email; and upon actual receipt when delivered to an air courier guaranteeing overnight delivery. 

Section 3.02 Binding Effect. This Agreement shall be binding upon the Partnership, each of the Purchasers and their
respective successors and permitted assigns, including subsequent Holders of Registrable Securities to the extent permitted herein. Except as expressly provided in this Agreement, this Agreement shall not be construed so as to confer any right
or benefit upon any Person other than the parties to this Agreement and their respective successors and permitted assigns. 
 Section 3.03
Assignment of Rights. Except as provided in Section 2.07, neither this Agreement nor any of the rights, benefits or obligations hereunder may be assigned or transferred, by operation of law or otherwise, by any party hereto
without the prior written consent of the other party. 
 Section 3.04 Recapitalization, Exchanges, Etc. Affecting
Units. The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all units of 

  
 16 

 
the Partnership or any successor or assign of the Partnership (whether by merger, consolidation, sale of assets or otherwise) that may be issued in respect of, in exchange for or in substitution
of, the Registrable Securities, and shall be appropriately adjusted for combinations, unit splits, recapitalizations, pro rata distributions of units and the like occurring after the date of this Agreement. 

Section 3.05 Aggregation of Registrable Securities. All Registrable Securities held or acquired by Persons who are
Affiliates of one another shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 

Section 3.06 Specific Performance. Damages in the event of breach of this Agreement by a party hereto may be difficult, if
not impossible, to ascertain, and it is therefore agreed that each such Person, in addition to and without limiting any other remedy or right it may have, will have the right to seek an injunction or other equitable relief in any court of competent
jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground of lack of jurisdiction or competence of the court to
grant such an injunction or other equitable relief. The existence of this right will not preclude any such Person from pursuing any other rights and remedies at law or in equity that such Person may have. 

Section 3.07 Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same agreement. 

Section 3.08 Governing Law, Submission to Jurisdiction. This Agreement, and all claims or causes of action (whether in
contract or tort) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or
warranty made in or in connection with this Agreement), will be construed in accordance with and governed by the laws of the State of New York without regard to principles of conflicts of laws. Any action against any party relating to the foregoing
shall be brought in any federal or state court of competent jurisdiction located within the State of New York, and the parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of any federal or state court located within the State
of New York over any such action. The parties hereby irrevocably waive, to the fullest extent permitted by applicable law, any objection which they may now or hereafter have to the laying of venue of any such dispute brought in such court or any
defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 

Section 3.09 Waiver of Jury Trial. THE PARTIES TO THIS AGREEMENT EACH HEREBY WAIVE, AND AGREE TO CAUSE THEIR AFFILIATES TO
WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO IN RESPECT OF THIS 

  
 17 

 
AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. THE PARTIES TO THIS AGREEMENT EACH
HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
 Section 3.10 Entire
Agreement. This Agreement, the Purchase Agreement and the other agreements and documents referred to herein are intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of
the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein or in the Purchase
Agreement with respect to the rights granted by the Partnership or any of its Affiliates or the Purchasers or any of their respective Affiliates set forth herein or therein. This Agreement, the Purchase Agreement and the other agreements and
documents referred to herein or therein supersede all prior agreements and understandings between the parties with respect to such subject matter.

Section 3.11 Amendment. This Agreement may be amended only by means of a written amendment signed by the Partnership and
the Required Holders. Any amendment, supplement or modification of or to any provision of this Agreement, any waiver of any provision of this Agreement, and any consent to any departure by the Partnership or any Purchaser from the terms of any
provision of this Agreement shall be effective only in the specific instance and for the specific purpose for which such amendment, supplement, modification, waiver or consent has been made or given. 

Section 3.12 No Presumption. This Agreement has been reviewed and negotiated by sophisticated parties with access to legal
counsel and shall not be construed against the drafter. 
 Section 3.13 Obligations Limited to Parties to Agreement. Each
of the parties hereto covenants, agrees and acknowledges that, other than as set forth herein, no Person other than the Purchasers, the Selling Holders, their respective permitted assignees and the Partnership shall have any obligation hereunder and
that, notwithstanding that one or more of such Persons may be a corporation, partnership or limited liability company, no recourse under this Agreement or under any documents or instruments delivered in connection herewith shall be had against any
former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of such Persons or their respective permitted assignees, or any former, current or future director, officer,
employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the foregoing, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any applicable law, it being
expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any former, current or future director, officer, employee, agent, general or limited partner, manager, member,
stockholder or Affiliate of any of such Persons or any of their respective assignees, or any former, current or future director, officer, 

  
 18 

 
employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the foregoing, as such, for any obligations of such Persons or their respective permitted
assignees under this Agreement or any documents or instruments delivered in connection herewith or for any claim based on, in respect of or by reason of such obligation or its creation, except, in each case, for any assignee of any Purchaser or a
Selling Holder hereunder. 
 Section 3.14 Interpretation. Article, Section and Schedule references in this Agreement are
references to the corresponding Article, Section or Schedule to this Agreement, unless otherwise specified. All Schedules to this Agreement are hereby incorporated and made a part hereof as if set forth in full herein and are an integral part of
this Agreement. All references to instruments, documents, contracts and agreements are references to such instruments, documents, contracts and agreements as the same may be amended, supplemented and otherwise modified from time to time, unless
otherwise specified. The word “including” shall mean “including but not limited to” and shall not be construed to limit any general statement that it follows to the specific or similar items or matters immediately following it.
Whenever the Partnership has an obligation under this Agreement, the expense of complying with that obligation shall be an expense of the Partnership unless otherwise specified. Any reference in this Agreement to “$” shall mean U.S.
dollars. Whenever any determination, consent or approval is to be made or given by a Purchaser, such action shall be in such Purchaser’s sole discretion, unless otherwise specified in this Agreement. If any provision in this Agreement is held
to be illegal, invalid, not binding or unenforceable, (a) such provision shall be fully severable and this Agreement shall be construed and enforced as if such illegal, invalid, not binding or unenforceable provision had never comprised a part
of this Agreement, and the remaining provisions shall remain in full force and effect, and (b) the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible
in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. When calculating the period of time before which, within which or following which any act is to be
done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded. If the last day of such period is a non-Business Day, the period in question shall end on the next succeeding Business
Day. Any words imparting the singular number only shall include the plural and vice versa. The words such as “herein,” “hereinafter,” “hereof” and “hereunder” refer to this Agreement as a whole and not merely
to a subdivision in which such words appear unless the context otherwise requires. The provision of a Table of Contents, the division of this Agreement into Articles, Sections and other subdivisions and the insertion of headings are for convenience
of reference only and shall not affect or be utilized in construing or interpreting this Agreement. 
 Section 3.15
Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or
unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so
long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question
does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of 

  
 19 

 
the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a
valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s). 

[Remainder of Page Left Intentionally Blank] 

  
 20 

 IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first
above written. 
  

					
	CSI COMPRESSCO LP
		
	By:	 	CSI COMPRESSCO GP INC, its general partner
			
		 	By:	 	 /s/ Timothy A. Knox

		 	Name:	 	Timothy A. Knox
		 	Title:	 	President

  
 Signature Page to
Registration Rights Agreement 

 
					
	HBC MLP LLC
		
		 	By: Hudson Bay Capital Management LP, as its Investment Manager
			
		 	By:	 	 /s/ Sander Gerber

		 	Name:	 	Sander Gerber
		 	Title:	 	Authorized Signatory of its Manager
	
	OPPENHEIMER STEELPATH MLP INCOME FUND
			
		 	By:	 	 /s/ Brian Watson

		 	Name:	 	Brian Watson
		 	Title:	 	Vice President
	
	CSI COMPRESSCO INVESTMENT LLC
		
		 	By: CSI Compressco GP Inc., its sole member
			
		 	By:	 	 /s/ Timothy A. Knox

		 	Name:	 	Timothy A. Knox
		 	Title:	 	President

  
 Signature Page to
Registration Rights Agreement 

 Schedule A 

Purchaser Name; Notice and Contact Information 
  

			
	 Purchaser
	  	 Contact Information

	HBC MLP LLC	  	 c/o Hudson Bay Capital Management LP
 777 Third
Avenue, 30th Floor
 New York, New York 10017
 Attention: Yoav
Roth
                 George Antonopoulos

Facsimile:  646-214-7946
 Telephone: 212-571-1244

E-mail: investments@hudsonbaycapital.com

             operations@hudsonbaycapital.com

		
	Oppenheimer Steelpath MLP Income Fund	  	 Oppenheimer Steelpath MLP Income Fund
 2100
McKinney Ave, Suite 1401
 Dallas, TX 75201
 Attention: Brian
Watson

		
	CSI Compressco Investment LLC	  	 c/o CSI Compressco GP Inc.
 24955 Interstate 45
North
 The Woodlands, Texas 77380
 Attention: Timothy A.
Knox
 E-mail: tim.knox@csicompressco.com

  
 Schedule A-1 

 Exhibit A 

Selling Holders 
 The
Common Units being offered by the selling holders are those issuable upon conversion of the Series A Preferred Units. We are registering the Common Units in order to permit the selling holders to offer the Common Units for resale from time to time.
Except for the ownership of the Series A Preferred Units and                 , the selling holders have not had any material relationship with us within the past three
years. 
 The table below lists the selling holders and other information regarding the beneficial ownership of the Common Units. The second
column lists the number of Common Units beneficially owned by each selling holder, based on its ownership of the Series A Preferred Units, as of             , 2016, assuming conversion of
all Series A Preferred Units held by the selling holders on that date, without regard to any limitations on conversions and/or redemptions of the Series A Preferred Units. 

The third column lists the Common Units being offered by this prospectus by the selling holders. 

In accordance with the terms of a registration rights agreement with the holders of the Series A Preferred Units, this prospectus generally
covers the resale of all of 130% of the maximum of the sum of (i) the Common Units issued and issuable pursuant to the Series A Preferred Units and (ii) the Common Units issued and issuable pursuant to the PIK Units, each as of the Trading Day
immediately preceding the date the registration statement is initially filed with the Commission, subject to adjustment as provided in the registration rights agreement and in each case without regard to any limitations on the issuance of Common
Units pursuant to the terms of the Series A Preferred Units. Because the conversion price of the Series A Preferred Units may be adjusted, the number of Common Units that will actually be issued may be more or less than the number of Common Units
being offered by this prospectus. The fourth column assumes the sale of all of the Common Units offered by the selling holders pursuant to this prospectus. 

Under the terms of the Series A Preferred Units, a selling shareholder may not convert the Series A Preferred Units, to the extent such
conversion would cause such selling shareholder, together with its affiliates, to beneficially own a number of Common Units which would exceed 9.99% of our then outstanding Common Units following such conversion, excluding for purposes of such
determination Common Units issuable upon conversion of the Series A Preferred Units which have not been converted. The number of Common Units in the second column does not reflect this limitation. The selling shareholders may sell all, some or none
of their Common Units in this offering. See “Plan of Distribution.” 
 The selling holders may sell all, some or none of their
Common Units in this offering. See “Plan of Distribution.” 

  
 Exhibit A 

													
	 Name of Selling Holder
	  	Number of Common Units
Owned Prior to Offering	 	  	Maximum Number of
Common Units to be Sold
Pursuant to this Prospectus	 	  	Number of Common
Units Owned After
Offering	 
		  				  				  			
		  				  				  			
		  				  				  			

  
 Exhibit A 

 Plan of Distribution 

We are registering the Common Units issuable upon conversion of the Series A Preferred Units to permit the resale of Common Units by the
holders of the Series A Preferred Units from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale by the selling holders of the Common Units. We will bear all fees and expenses incident to our
obligation to register the Common Units. 
 The selling holders may sell all or a portion of the Common Units beneficially owned by them and
offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents. If the Common Units are sold through underwriters or broker-dealers, the selling holders will be responsible for underwriting discounts or
commissions or agent’s commissions. The Common Units may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These
sales may be effected in transactions, which may involve crosses or block transactions, 
  

	 	•	 	on any national securities exchange or quotation service on which the Common Units may be listed or quoted at the time of sale; 

  

	 	•	 	in the over-the-counter market; 

  

	 	•	 	in transactions otherwise than on these exchanges or systems or in the over-the-counter market; 

  

	 	•	 	through the writing of options, whether such options are listed on an options exchange or otherwise; 

  

	 	•	 	in ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; 

  

	 	•	 	in block trades in which the broker-dealer will attempt to sell the Common Units as agent but may position and resell a portion of the block as principal to facilitate the transaction; 

 

	 	•	 	in purchases by a broker-dealer as principal and resale by the broker-dealer for its account; 

  

	 	•	 	in exchange distributions in accordance with the rules of the applicable exchange; 

  

	 	•	 	privately negotiated transactions; 

  

	 	•	 	as short sales; 

  

	 	•	 	as sales pursuant to Rule 144; 

  

	 	•	 	as broker-dealers may agree with the selling holders to sell a specified number of such Common Units at a stipulated price per unit; 

 

	 	•	 	in a combination of any such methods of sale; and 

  

	 	•	 	in any other method permitted pursuant to applicable law. 

 If the selling holders effect such
transactions by selling Common Units to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling holders or
commissions from purchasers of the Common Units for whom they may act as agent or to whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those
customary in the types of 

  
 Exhibit A 

 
transactions involved). In connection with sales of the Common Units or otherwise, the selling holders may enter into hedging transactions with broker-dealers, which may in turn engage in short
sales of the Common Units in the course of hedging in positions they assume. The selling holders may also sell Common Units short and deliver Common Units covered by this prospectus to close out short positions and to return borrowed Common Units in
connection with such short sales. The selling holders may also loan or pledge Common Units to broker-dealers that in turn may sell such units. 

The selling holders may pledge or grant a security interest in some or all of the Series A Preferred Units or Common Units owned by them and,
if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the Common Units from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(7) or other
applicable provision of the Securities Act of 1933, as amended, amending, if necessary, the list of selling holders to include the pledgee, transferee or other successors in interest as selling holders under this prospectus. The selling holders also
may transfer and donate the Common Units in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus. 

The selling holders and any broker-dealer participating in the distribution of the Common Units may be deemed to be “underwriters”
within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular
offering of the Common Units is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of Common Units being offered and the terms of the offering, including the name or names of any broker-dealers
or agents, any discounts, commissions and other terms constituting compensation from the selling holders and any discounts, commissions or concessions allowed or reallowed or paid to broker-dealers. 

Under the securities laws of some states, the Common Units may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the Common Units may not be sold unless such units have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied with. 

There can be no assurance that any selling holder will sell any or all of the Common Units registered pursuant to the registration statement,
of which this prospectus forms a part. 
 The selling holders and any other person participating in such distribution will be subject to
applicable provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which may limit the timing of purchases and sales of any of the
Common Units by the selling holders and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the Common Units to engage in market-making activities with respect to the Common Units.
All of the foregoing may affect the marketability of the Common Units and the ability of any person or entity to engage in market-making activities with respect to the Common Units. 

  
 Exhibit A 

 We will pay all expenses of the registration of the Common Units pursuant to the registration
rights agreement, estimated to be $         in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities or “blue sky”
laws; provided, however, that a selling holder will pay all underwriting discounts and selling commissions, if any. We will indemnify the selling holders against liabilities, including some liabilities under the Securities Act, in accordance with
the registration rights agreements, or the selling holders will be entitled to contribution. We may be indemnified by the selling holders against civil liabilities, including liabilities under the Securities Act, that may arise from any written
information furnished to us by the selling holder specifically for use in this prospectus, in accordance with the related registration rights agreement, or we may be entitled to contribution. 

Once sold under the registration statement, of which this prospectus forms a part, the Common Units will be freely tradable in the hands of
persons other than our affiliates. 

  
 Exhibit AExhibit

Exhibit 10.4

EXECUTION COPY
EMPLOYMENT AGREEMENT
This Amended & Restated Employment Agreement (the “Agreement”) is entered into as of June 1, 2016 (the “Start Date”) by and between Diamond Resorts Centralized Services Company, a Delaware corporation (the “Company”) and Brian Garavuso (the “Executive”), with reference to the following facts:
A.The Company’s parent, Diamond Resorts International, Inc. (“DRII”) and all of its affiliates (collectively, “Diamond”) is headquartered in Las Vegas, Nevada and is a leader in developing, operating, marketing and selling vacation ownership interests.
B.
    The Company wishes to continue to employ Executive for the position of Executive Vice President & Chief Information Officer of DRII, and Executive wishes to be employed in such position, on the terms and conditions set forth in this Agreement, which amends and restates the prior employment agreement dated April 7, 2014.
NOW, THEREFORE, based on the above premises and in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1.Position and Duties.  
1.1 Executive shall be employed by the Company as Executive Vice President & Chief Information Officer and shall be responsible for global leadership of the Information Technology group, focusing on strategic development of Diamond’s technology and alignment with business objectives, reporting to the President and Chief Executive Officer of DRII, and assuming and discharging such responsibilities as are commensurate with Executive’s position.  Executive acknowledges that frequent travel may be necessary in carrying out his duties hereunder.
1.2 Executive shall perform his duties faithfully and to the best of his ability and shall devote his full business time and effort to the performance of his duties hereunder and shall not engage in any other business duties or business pursuits or render any services of a professional nature for pay to any entity or person without the prior written consent of the President and Chief Executive Officer of DRII.  Executive may only participate in or serve on boards or committees of, charitable and community service organizations (or with the advance written approval of the Board, not to be unreasonably withheld, on industry boards or committees), so long as such activities do not interfere or otherwise compete with the discharge of Executive’s duties hereunder.
2.    Term.  Except as otherwise provided herein or as the parties may otherwise agree in writing, this Agreement shall be effective as of the Start Date and remain in effect until April 7, 2017.

	
			
	 
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3.    Compensation.  
3.1    Base Salary:  For all services to be rendered by Executive pursuant to this Agreement, Executive’s annual base salary will be $500,000 (Five Hundred Thousand Dollars) per year (the “Base Salary”), payable bi-weekly in accordance with the Company’s normal payroll practices.  It is possible for the Executive’s Base Salary to be increased, after annual performance reviews conducted each January, based on the sole discretion of the Compensation Committee of DRII (“Compensation Committee”).
3.2    Annual Performance Bonus:  Executive will be eligible to earn an “Annual Performance Bonus” based upon achievement of objectives determined by the Compensation Committee in its discretion, provided they are consistent for similarly situated senior executives of DRII (including the President and CEO, and the other Executive Vice Presidents) (hereinafter “Similarly Situated Executives”).  The target bonus award will be one hundred and fifty percent (150%) of Executive's Base Salary, and the annual bonus may be in a greater amount if so determined by the Compensation Committee.  The Company agrees to pay any prior year bonus that is authorized by the Compensation Committee by March 15th of the following year, for so long as such timing is applicable to Similarly Situated Executives.  
4.    Other Benefits.
4.1    Executive Health Insurance Package and General Programs.  Executive shall be entitled to participate in Diamond’s Executive Health Insurance Package available to Diamond executives upon Start Date, subject to its terms and conditions as in effect from time to time.  In addition, Executive is entitled to additional benefit programs of the Company or of Diamond for Similarly Situated Executives, if any, to the extent that his/her position, tenure, salary, age, health and other qualifications make him/her eligible to participate in such plans or programs, subject to the rules and regulations applicable thereto.  The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees and executives at any time.
4.2    Expenses.  The Company (or Diamond, as applicable) shall reimburse Executive for reasonable expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder, consistent with how the Company (or Diamond, as applicable) handles expense guidelines and reimbursement for Similarly Situated Executives, which procedure for all such executives is subject to change from time to time.
5.    Termination.
5.1    Termination for Cause.  The Company shall have the right at any time, exercisable immediately upon written notice subject to any available cure periods as set forth before, to terminate Executive’s employment for Cause.  “Cause” shall mean (1) Executive’s negligence or willful misconduct in the performance of Executive’s obligations hereunder, (2) breach by Executive of any provision of this Agreement, (3) any felony indictment or conviction of Executive, including a guilty plea by nolo contendere, (4) a failure of Executive to substantially perform his duties hereunder, (5) fraud, embezzlement or any other illegal or wrongful conduct by Executive 

	
			
	 
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upon the Company or Diamond, whether prior or subsequent to the Start Date, (6) Executive’s intentional infliction of any damage of material nature to any property of the Company or Diamond, (7) Executive’s use of illegal narcotics or other illegal substances, (8) Executive’s breach of Diamond policies or the Confidentiality and Non-Competition Agreement (the “Confidentiality Agreement”), including without limitation, sexual harassment and discrimination, and (9) Executive’s failure to comply with laws and regulations which are applicable to the Company or to Diamond.  Any notice of termination pursuant to this Section 5.1 must be in writing, delivered to Executive in the manner set forth in Section 9.1, and shall specify the action or actions constituting “Cause”.  In the case of a breach which is reasonably susceptible to cure, Executive shall have ten business days following Company’s delivery of written notice of termination to cure such breach.  Notwithstanding the foregoing, no breach of paragraphs (3), (5), (6) or (7) above shall be subject to cure by Executive.  Upon termination for Cause, Executive shall be entitled to receive (i) his Base Salary then in effect through the effective date of the termination, (ii) any Annual Performance Bonus earned in the prior year that has been authorized by the Compensation Committee but has not yet been paid, and (iii) benefits through the effective date of the termination.  No other payments or compensation of any kind will be paid.
5.2    Termination Due to Death or Disability.  This Agreement shall automatically terminate upon Executive’s death.  In addition, if Executive is unable to perform his duties by reason of any mental or physical disability or incapacity for a period of ninety (90) days of any one hundred eighty (180) day period, then upon compliance with applicable law (including without limitation, the Americans with Disabilities Act), the Company may terminate Executive’s employment upon ten (10) days’ written notice.  In either such event, Executive will receive (1) his Base Salary then in effect through the effective date of the termination, (2) a pro rata portion of his target Annual Performance Bonus for the calendar year in which the termination takes place (the “Pro Rata Performance Bonus”), and (3) benefits through the effective date of the termination.  No other payments or compensation of any kind will be paid.
5.3    Resignation.  Executive may resign and terminate his employment at any time upon ninety (90) days written notice in which event Executive will receive the same payment as if Executive were terminated for Cause.  No other payments or compensation of any kind will be paid.  This Section does not apply in the event of Executive’s resignation for Good Reason, as defined in Section 5.6 below.
5.4    Termination Without Cause.  The Company shall have the right to terminate Executive’s employment under this Agreement for any reason or for no reason, at any time and shall provide the Executive written notice of said decision.  If Executive is terminated without Cause pursuant to this Section 5.4, subject to (a) the Executive’s continued compliance with each provision of the Confidentiality Agreement and (b) Executive’s execution of a release of all claims against the Company and Diamond (“the Release”), which shall be provided to Executive concurrent with notification of termination and which shall be returned to the Company within 30 days of receipt, Executive will be entitled to receive (1) his Base Salary then in effect to be paid in equal installments monthly for a period of twelve (12) months following the effective date of termination and (2) a payment of a pro rata portion of his target Annual Performance Bonus for the calendar year in 

	
			
	 
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which the termination takes place.  Such payments shall be made in accordance with the Company’s payroll procedures; provided that any payments otherwise due within 30 days of termination shall be paid in the first payroll period beginning thereafter.  All such payments will terminate immediately upon any breach of the Confidentiality Agreement, or post-employment covenant within the Agreement, which shall, for purposes hereof, be deemed a material breach.  These payments shall be in addition to the amounts set forth in Section 5.1(i)-(iii).  No other payments or compensation of any kind will be paid unless otherwise provided hereunder.
5.5    Termination Without Cause Following Change in Control.  Notwithstanding the foregoing, if, within six (6) months following a Change in Control, Executive is terminated without Cause pursuant to Section 5.4, subject to (a) Executive’s continued compliance with each provision of the Confidentiality Agreement, and (b) Executive’s execution of the Release, which shall be provided to Executive concurrent with notification of termination and which shall be returned to the Company within 30 days of receipt, Executive will be entitled to receive (1) an amount equal to two (2) years’ Base Salary then in effect and (2) a payment of two (2) years’ target Annual Performance Bonus.  Such amount will be payable in 12 monthly installments commencing on the first day of the month following the effective date of Executive’s termination; provided that any payments otherwise due within 30 days of termination shall be paid in the first payroll period beginning thereafter.  Such payment shall be in lieu of the payments provided under Section 5.4.  All such payments will terminate immediately upon any breach of the Confidentiality Agreement, which shall, for purposes hereof, be deemed a material breach.  These payments shall be in addition to the amounts set forth in Section 5.1(i)-(iii).
For purposes of this Section 5.5 and Section 5.6, a “Change in Control” shall mean (i) the sale, lease, transfer, conveyance or other disposition, in one transaction or a series of related transactions, of all or substantially all of the assets of Diamond and its subsidiaries, taken as a whole, (ii) the sale, transfer, conveyance or other disposition, in one transaction or a series of related transactions, of the outstanding equity securities of Diamond, or (iii) the merger, consolidation, recapitalization or reorganization of Diamond with another Person, in each case in clauses (i) and (ii) above under circumstances in which the direct or indirect holders of the voting power of outstanding equity securities, immediately prior to such transaction, are no longer, in the aggregate, the “beneficial owners” (as such term is defined in Rule 13d-3 and Rule 13d-5 promulgated under the Securities Exchange Act of 1934, as amended), directly or indirectly through one or more intermediaries, of more than fifty percent (50%) of the voting power of the outstanding equity securities of the surviving or resulting corporation or acquirer, as the case may be, immediately following such transaction.
5.6    Resignation for Good Reason Following Change in Control.  Notwithstanding Section 5.3, at any time within six (6) months following a Change in Control, Executive has the right to resign and terminate his employment for Good Reason (as hereinafter defined) upon prior written notice, which notice must be delivered no later than 60 days following the events giving rise to such termination right.  Upon such resignation, subject to (a) Executive’s continued compliance with each provision of the Confidentiality Agreement and (b) Executive’s execution of a release of all claims against the Company and Diamond (“the Release”), which shall be provided 

	
			
	 
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to Executive concurrent with notification of termination and which shall by returned to the Company within 30 days of receipt, Executive will be entitled to receive (1) an amount equal to two (2) years’ Base Salary then in effect and (2) a payment of two (2) years’ target Annual Performance Bonus.  Such amount will be payable in 12 monthly installments commencing on the first day of the month following the effective date of Executive’s resignation; provided that any payments otherwise due within 30 days of termination shall be paid in the first payroll period beginning thereafter.  All such payments will terminate immediately upon any breach of the Confidentiality Agreement or post-employment covenant within the Agreement, which shall, for purposes hereof, be deemed a material breach.  These payments shall be in addition to the amounts set forth in Section 5.1(i)-(iii).
(i)    A resignation shall be deemed to be for “Good Reason” if, within four (4) months after a Change in Control, Executive provides the Company with written notice of any of the following occurrences within thirty (30) days after its first occurrence and the Company fails to cure such conduct within thirty (30) days of the receipt by the Company of written notice by Employee stating the nature of such conduct:  (A) it follows a material reduction of Executive’s duties and responsibilities; (B) it follows Executive’s being required to work solely or substantially at a location more than 50 miles from a location where he has been permitted to work prior to the Change in Control; or (C) it follows a material breach of this Agreement (which shall include, without limitation, a reduction in Executive’s then-effective Base Salary or target Annual Performance Bonus opportunity) by the Company.  Good Reason shall also exist if, as of the effective date of the Change in Control, the remaining term of this Agreement (as such may have been amended or extended) is less than one (1) year, and the Executive’s resignation follows the refusal of the Company (or any successor thereto) to enter into either an extension of this Agreement or a new employment agreement with Executive that provides for an employment term of at least one (1) additional year and provides for Executive’s employment on substantially identical terms and conditions (including compensation and benefits) as contained in this Agreement.
5.7     Expiration.  Expiration of this Agreement at the end of its term does not constitute Termination under any of the provisions of the Agreement. 
6.    Indemnification.  Notwithstanding the foregoing, the Executive will be entitled to indemnification for all claims to the full extent permitted by Company by-laws and applicable law during and after the termination of Executive’s employment.
7.    Advice of Counsel.  Executive acknowledges that he has had the opportunity to be represented by counsel in the negotiation of this Agreement, at his own expense, and is fully aware of his rights and obligations under this Agreement.
8.    Successors.
8.1    Company’s Successors.  This Agreement shall be assigned by the Company to any corporation or other business entity which succeeds to all or substantially all of the business of the Company through merger, consolidation, corporate reorganization or by acquisition of all or substantially all of the assets of the Company and which assumes the Company’s obligations under this Agreement.  The terms and conditions of this Agreement including Exhibit A to this Agreement 

	
			
	 
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shall inure to the benefit of and be binding upon and shall be enforceable by any such assignee or successor to the business of the Company.  
8.2    Executive’s Successors.  Executive shall not assign or transfer this Agreement or any right or obligation under this Agreement to any other person or entity.
9.    Notice.
9.1    Manner.  Any notice required or permitted by this Agreement shall be in English and shall be forwarded to the parties by certified mail, return receipt requested, by personal delivery service, or by facsimile, so long as there is evidence of receipt by the other party, under local law, at the following addresses, or at any subsequent addresses given by the parties:
		
	If to Employee:
	Brian Garavuso 
8725 Newport Isle Court 
Las Vegas, Nevada 89117 
Telephone:  (239) 470-5600 
 

		
	If to Company:
	Diamond Resorts Centralized Services Company c/o Diamond Resorts Management, Inc. 
10600 West Charleston Blvd 
Las Vegas, Nevada 89135 
Attention:  Howard S. Lanznar 
Tel:  (702) 823-7400

Any changes in the above addresses for notice shall be provided to the party to this Agreement pursuant to the above terms within ten (10) days of such change.
9.2    Effectiveness.  Any notice or other communication required or permitted to be given under this Agreement will be deemed given on the day when delivered in person, or the business day after the day on which such notice was mailed in accordance with Section 9.1.
10.    Governing Law/Venue.  This Agreement shall be governed by and construed in accordance with the internal substantive laws, but not the choice of law rules, of the state of Nevada and venue shall be in Clark County, Nevada.  The Company and Executive each hereby irrevocably consent to the exclusive jurisdiction of the courts of the State of Nevada for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement.
11.    Arbitration.  Any dispute between the parties to this Agreement shall be governed by the provisions of Exhibit B:  Agreement to Arbitrate Claims, which exhibit is incorporated herein by this reference, provided that the Company may seek injunctive or equitable relief from any court of competent jurisdiction, as provided in the Confidentiality Agreement.

	
			
	 
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12.    Severability.  The invalidity or unenforceability of any provision of this Agreement, or any terms hereof, shall not affect the validity or enforceability of any other provision or term of this Agreement.
13.    Confidentiality.  Executive acknowledges that he concurrently is executing the Confidentiality and Non-Competition Agreement in a form attached hereto as Exhibit A attached hereto and incorporated by this reference.
14.    Integration.  This Agreement, the Confidentiality Agreement and any associated indemnification agreements represent the entire agreement and understanding between the parties as to the subject matter herein and supersede all prior or contemporaneous agreements whether written or oral.  No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless approved by the Compensation Committee, memorialized in writing and signed by the President and Chief Executive Officer of DRII and Executive.
15.    Taxes.  All payments made pursuant to this Agreement shall be subject to withholding of such applicable income and employment taxes as the Company determines to be required by applicable law. Executive shall be solely responsible for all taxes imposed on Executive by reason of the receipt of any amount of compensation or benefits payable to Executive under this Agreement.  Although the payments and benefits provided hereunder are intended to be structured in a manner to avoid the implication of any additional or excise taxes under Sections 409A or 4999 of the Internal Revenue Code (as amended from time to time, the “Code”), in no event whatsoever shall the Company or any of its affiliates have any obligation to pay, mitigate, or protect Executive from any such tax liabilities, including any imposed under Sections 409A and/or 4999.
     Notwithstanding any other provision of this Agreement, if the total severance-related payments and benefits to be paid to the Executive under this Agreement, along with any other payments to the Executive under any other agreement, plan, program, or arrangement, would result in the Executive being subject to the excise tax imposed by Section 4999 of the Code, the Company shall reduce the aggregate payments hereunder to the largest amount which can be paid to the Executive without triggering the excise tax, but only if and to the extent that such reduction would result in the Executive retaining larger aggregate after-tax payments.  The determination of the excise tax and the aggregate after-tax payments to be received by the Executive will be made by the Company after consultation with its advisors and in material compliance with applicable law.  For this purpose, the parties agree that the payments provided for in Section 5 of this Agreement are intended to be reasonable compensation for refraining from performing services after termination of employment (i.e, the Executive’s obligations pursuant to that Section of this Agreement to the maximum extent possible, and if necessary or desirable, the Company will retain a valuator or consultant to determine the amount constituting reasonable compensation.  If payments are to be reduced, to the extent permissible under Section 4999 of the Code, payments will be reduced in a manner that maximizes the after-tax economic benefit to the Executive and to the extent consistent with that objective, in the following order of precedence: (A) first, payments will be reduced in order of those with the highest ratio of value for purposes of 

	
			
	 
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the calculation of the parachute payment to projected actual taxable compensation to those with the lowest such ratio, (B) second, cash payments will be reduced before non-cash payments, and (C) third, payments to be made latest in time will be reduced first.  Any reduction will be made in a manner that is intended to avoid a tax being incurred under Code Section 409A, starting in all cases with reductions of payments and benefits that are exempt from Section 409A. 
16.    409A Compliance.  If, at the time of Executive’s “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h), Executive is a “specified employee” (within the meaning of Code Section 409A), any benefit as to which Section 409A penalties could be assessed that becomes payable to Executive on account of Executive’s “separation from service” shall be paid to the Executive, without interest thereon, on the date six months and one day after such separation from service.  It is intended that any amounts payable under this Agreement and the Company’s and the Executive’s exercise of authority or discretion hereunder shall comply with and avoid the imputation of any tax, penalty, or interest under Code Section 409A and the regulations and guidance promulgated thereunder (collectively, the “Nonqualified Deferred Compensation Rules”).  This Agreement shall be construed and interpreted consistent with that intent.
With respect to any expenses eligible for reimbursement that are required to be included in Executive’s gross income for federal income tax purposes, such expenses shall be reimbursed to Executive no later than December 31 of the year following the year in which Executive incurs the related expenses.  In no event shall the amount of expenses (or in-kind benefits) eligible for reimbursement in one calendar year affect the amount of expenses (or in-kind benefits) eligible for reimbursement in any other calendar year (except for those medical reimbursements referred to in Section 105(b) of the Internal Revenue Code of 1986), nor shall Executive’s right to reimbursement or in-kind benefits be subject to liquidation or exchange for another benefit. In no event shall any payment under this Agreement that is subject to Code Section 409A be made by the Company (prior to the termination of this Agreement) unless such payment would be classified as a payment upon “separation from service” within the meaning of the Nonqualified Deferred Compensation Rules.  Each payment under this Agreement shall be considered a separate payment for purposes of Treasury Regulation Sections 1.409A-1(b)(4) and 1.409A-2(b)(2).
17.    Counterparts and Facsimile.  This Agreement may be executed in counterparts and by facsimile.
Executive has read this Agreement carefully and understands and accepts the obligations which it imposes upon Executive without reservation.  No other promises or representations have been made to Executive to induce Executive to sign this Agreement.  Executive is signing this Agreement voluntarily and freely.

 
EXECUTIVE

	
			
	 
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	Executive
	 
	Company

 
 
 
_/s/ Brian Garavuso_______________________________ 
Brian Garavuso

 

 

 
COMPANY
Diamond Resorts Centralized Services Company
 
 
 
By:  _/s/ Howard S. Lanznar_______________________ 
        Howard S. Lanznar

	
			
	 
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Exhibit A 
Confidentiality and Non-Competition Agreement
We are pleased that you have decided to continue to serve as an employee of Diamond Resorts Centralized Services Company (the “Company”).  We are concurrently executing an Employment Agreement with you to serve as an executive of Company’s parent, Diamond Resorts International, Inc. (collectively with all of its affiliates, “Diamond”).  As a condition to our offering you the Employment Agreement and to ensure that you understand and agree with some of our more important policies, we have described them in this Agreement.  Please read this Agreement carefully and then sign the last page if you understand and agree to it.  This is a binding contract.
1.    Confidentiality.  You acknowledge that, in the course of performing your responsibilities under this Agreement, you will form relationships and become acquainted with Confidential Information.  As an employee, you will have access to much of our Confidential Information.  By way of example, our Confidential Information includes information about Diamond’s business, independent contractor relationships, contracts, client relationships, potential customers, existing customer names, phone numbers and addresses, Diamond manuals, sales techniques, registration cards, books, records, letters, forms, customer relationships, marketing information, business plans, financial data, bank information, forecasts, strategies, and information about (or acquired from) our business partners.  We agree that the existence and negotiation of your employment agreement, and any non-public information exchanged in connection therewith, is confidential.  Please note that this is not an exhaustive list of our Confidential Information, and you agree to consult with us in advance if there is any question regarding the confidential nature of any information.  You agree to keep this information strictly confidential.  You may not use or disclose any of it for any purpose other than as necessary for Diamond business.  Furthermore, you agree that if you leave our employ you will continue to treat that information as confidential, and will return all documents and computer discs and files containing that information to us.
2.    Inventions.  We invest significant time and financial resources in the development of our business.  In recognition of this investment, you hereby irrevocably assign to us all interest in any inventions, discoveries, developments, improvements and innovations, whether or not patentable (“Inventions”) which you help develop during your employment with us.  If requested by us, you will execute specific assignments and other documents helpful or necessary to evidence our ownership of such inventions and assist us in obtaining or defending patents for such inventions.  You will promptly disclose in writing to us any inventions you help develop during your employment with us regardless of whether you believe such inventions will be the property of the Company.  We agree to treat such disclosures in confidence.
3.    Covenant Not to Compete.  You agree that our Confidential Information is valuable to us, and the restrictions on your future employment contained in this Agreement are reasonably necessary in order for us to remain competitive in our business and constitute our protectable legal interests.  You agree that during the course of your employment with the Company you have learned and will learn trade secrets and valuable Confidential Information of Diamond, have developed 

	
			
	 
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and will develop substantial business relationships with specific customers and prospective customers or clients of Diamond and entities doing business with Diamond, including homeowners associations, and have developed and will develop goodwill on behalf of Diamond in every geographic area in which Diamond owns or manages properties or has plans to do so.  You have participated and will participate in specialized training on behalf of Diamond.  You acknowledge and agree that misuse or diversion of the information and relationships you have developed on behalf of Diamond anywhere Diamond owns or manages properties or has plans to do so at the termination of your employment will irreparably injure Diamond.  In consideration of our execution of the Employment Agreement and the compensation payable to you under the Employment Agreement, and in recognition of our heightened need for protection from abuse of relationships formed or Confidential Information garnered, you covenant and agree that during the term of your employment agreement and for one (1) year after termination (excluding your termination without Cause as defined therein), you will not directly or indirectly engage in the business of Diamond, which shall include without limitation, timesharing, club or affiliates that (i) operate a timeshare, interval, points membership or vacation membership resort or (ii) have a marketing or sales office that engages in the business of Diamond, anywhere that Diamond owns or manages properties or has plans to do so.
You further agree that for a period of two (2) years following your separation from the Company, you shall not directly or indirectly, whether for pay or otherwise, alone or with or on behalf of others, (a) solicit or contact for the purpose of providing, or provide (regardless of whether you engaged in solicitations) business services of the same type provided by Diamond to any homeowners association with which you have conducted business or with which you have sought to do business on behalf of Diamond; (b) divert or attempt to divert any homeowners association with which you have conducted business or attempted to conduct business on behalf of Diamond to enter into business relationships with any individuals or entities of the same or similar type as the relationships with which they have conducted with Diamond during your employment with the Company; (c) assist, encourage, or induce any homeowners association with which you have dealt on behalf of Diamond during your employment with the Company to terminate or reduce its business relationship with Diamond; (d) solicit or contact any members, prospective purchasers, guests and customers of Diamond to reduce or terminate their relationship with Diamond or to enter into relationships with individuals or entities performing or offering services in competition with Diamond; (e) provide services to any prospective purchasers, guests and customers of Diamond in competition with Diamond; (f) solicit or recruit (whether as a consultant, employee, or independent contractor) any individual who is or who was in the six (6) months preceding the solicitation or recruitment, a team member/employee of Diamond; (g) assist other individuals or entities to do the acts set forth in this Section.  It shall not be a defense to a claim of breach of this provision that any homeowners association, owner, prospective purchaser, or customer first contacted you to seek your services.  These restrictions shall apply in any jurisdiction and location in which Diamond currently conducts or has active plans to conduct business.
Further, following your separation, you agree that you shall not use or disclose any Confidential Information or trade secrets of Diamond without written authorization of Diamond or 

	
			
	 
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as required by law and shall not make false or defamatory statements regarding Diamond, its business, and its officers, directors and employees.  To the extent that you have any questions as to whether any of these restrictions apply to any specific employment or business opportunity you wish to consider you shall contact the President and Chief Executive Officer of DRII in writing setting forth the activities in which you wish to engage and seeking a determination of whether Diamond views such proposed activities as being prohibited by this Agreement.  You agree that these prohibitions do not prohibit you from earning a living subject to the obligations contained in this Agreement.
4.    Agreements with Former Employers.  You represent and warrant to the Company that:
		
	(a)
	The performance by you of the obligations under this Agreement will not breach any agreement to keep in confidence proprietary information acquired by you in confidence or in trust prior to your employment by the Company, and during your employment by the Company you will not breach any obligation of confidentiality that you may have to any former employer.

		
	(b)
	You have not brought and will not bring to the Company or use in the performance of your duties at the Company any materials or documents of a former employer that are not generally available to the public or otherwise subject to a duty of confidentiality, unless you have obtained express written authorization from the former employer for their possession and use and delivered a copy of such authorization to the Company.

5.    Duty to Inform Subsequent Employer.  You agree that, if you are no longer employed by us, you will inform any subsequent employer (or client if you engage in consulting work) that you are a party to this Agreement and if requested will provide a copy of this Agreement to such subsequent employer or client.
6.    Records.  Because of the need for confidentiality, we must maintain tight controls over our business records.  Business records are those documents whose primary purpose is to record the actions of Diamond, including marketing and financial matters.  You may remove business records from Diamond premises to the extent necessary to carry out your responsibilities under the Employment Agreement.  Such documents shall be returned to the premises immediately once they are no longer necessary.  All documents must immediately be returned to the Company upon termination of employment.
7.    Company Property.  You agree that if you leave our employ you will promptly return any Diamond property in your possession wherever it may be located.  You also agree to cooperate with and follow the instructions of Diamond and to permit access to professionals retained by Diamond for assistance in removing any digital copies of Diamond documents from the hard drives of computers or electronic data digital storage devices that you use, including flash drives, external hard drives, Personal Data Assistants, cell phones, tablet computers, and other devices.  If you 

	
			
	 
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do not promptly return such property, we may exercise all of our legal remedies to recover such property, and you agree to reimburse us for all expenses (including attorneys’ fees and court costs) incurred in connection with the attempt to recover such property.
8.    Communication with the Public.  Under all circumstances, communications with anyone from the media should be strictly limited (other than to say that a call will be referred to the appropriate person within Diamond).  Only persons authorized by the President and Chief Executive Officer of DRII shall be entitled to speak with the press on any subject.
9.    Injunctive Relief of Breaches.  I understand that any failure by me to perform my duties, obligations and agreements in this document could result in irreparable injury to Diamond.  We both agree that damages would be an inadequate remedy for the Company in the event of breach or threatened breach of this Agreement.  Accordingly, you agree in advance that in addition to the remedies otherwise available to the Company at law, the Company is entitled to receive restraining orders and/or injunctive relief without bond from courts of competent jurisdiction to enforce any of those duties, obligations or agreements.
10.    Arbitration.  All disputes in connection with or arising out of this Agreement shall be subject to the arbitration provisions attached hereto as Exhibit B, which exhibit is incorporated herein by this reference.  The only exception is that either you or we may seek injunctive relieve from any court having jurisdiction.  Both parties consent to exclusive jurisdiction in Clark County, Nevada.
11.    Severability.  If any portion of this Agreement is invalid or unenforceable, or if this Agreement is invalid or unenforceable in any particular circumstance, that fact shall not affect the validity or enforceability of any other provision of this Agreement or its application in any other circumstance.
12.    Governing Law.  Our respective rights and liabilities under this Agreement shall be governed by the laws of the State of Nevada, regardless of the choice of law provisions of Nevada or any other jurisdiction.
	
		
	Date:  __________________________
	Diamond Resorts Centralized Services Company

             /s/ Howard S. Lanznar                        
By:  Howard S. Lanznar

I HAVE CAREFULLY READ AND CONSIDERED THE TERMS OF THIS AGREEMENT.  I HAVE ASKED ANY QUESTIONS ABOUT THEM WHICH I MIGHT HAVE HAD AND UNDERSTAND THEIR IMPLICATIONS.  I ALSO UNDERSTAND THAT ANY CHANGES IN THIS AGREEMENT MUST BE APPROVED BY THE COMPENSATION COMMITTEE, MEMORIALIZED IN WRITING AND SIGNED BY THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DRII.

	
			
	 
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	Date:  __________________________
	          /s/    Brian Garavuso                            
Brian Garavuso

 
 
DO NOT SIGN THIS AGREEMENT UNLESS YOU UNDERSTAND AND AGREE 
TO ALL OF ITS TERMS.  THIS AGREEMENT CONTAINS AN ARBITRATION CLAUSE.

	
			
	 
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Exhibit B
Agreement to Arbitrate Claims

Claims Covered by the Agreement
Diamond Resorts Centralized Services Company (the “Company”) and I mutually agree to resolve by arbitration, and only by individual arbitration, all claims, whether or not arising out of my employment (or its termination), that the Company may have against me or that I may have against the Company and any other related or affiliated entity or person, including but not limited to parent, subsidiary and affiliated companies and employees or agents of any of them.  I agree that no court or arbitrator shall determine any of my rights or claims on a class, collective or representative basis under any federal, state or local law.  I understand, however, that I retain the right to bring claims in arbitration for myself as an individual.
Except as provided in the section titled “Claims Not Covered by the Agreement”, all claims that, in the absence of this Agreement, could have been brought in court are subject to arbitration, whether the claims derive from common law, statute, regulation, or otherwise, including but not limited to tort claims, contract claims, claims for wages, and claims for discrimination, retaliation and/or harassment.  Except as otherwise provided in this Agreement, both the Company and I agree that neither of us shall initiate or prosecute any lawsuit in any way related to any claim covered by this Agreement, other than a lawsuit seeking temporary equitable relief in aid of arbitration.
Except as provided in this Agreement, the Federal Arbitration Act shall govern the interpretation, enforcement and all proceedings pursuant to this Agreement.  
Claims Not Covered by the Agreement
The following claims are not covered by this Agreement:  claims that as a matter of law cannot be subject to arbitration; claims under an employee benefit or pension plan that specifies a different arbitration procedure; and claims asserted in an existing dispute in which both: (i) I currently am represented by legal counsel, and (ii) counsel has asserted such claims on my behalf.
Arbitration Procedures
The arbitration will be held under the auspices of Judicial Arbitration & Mediation Services (“J•A•M•S”), in Las Vegas, Nevada.  The Company and I agree that, except as provided in this Agreement, the arbitration shall be held in accordance with its then-current Employment Arbitration Rules & Procedures (and no other J•A•M•S rules), which are currently available at http://www.jamsadr.com/rules-employment-arbitration.  I understand that, upon request, the Company will supply me with a copy of the J•A•M•S rules.  The Arbitrator shall apply the substantive law (and the law of remedies, if applicable) of the state in which the claim arose, or federal law, or both, as applicable to the claim(s) asserted.  The Arbitrator is without jurisdiction to apply any different substantive law or law of remedies.  In connection with each arbitration hereunder, the arbitrators shall be bound by the terms of the applicable contracts and the applicable law in making their 

	
			
	 
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determinations and shall have no power to vary from the same.  In addition, if the issues being arbitrated include issues of law, the parties agree that the arbitrators shall be lawyers.   
The Company will be responsible for paying any filing fee and the fees and costs of the Arbitrator; provided, however, that if I am the party initiating the claim, I will contribute an amount equal to the filing fee to initiate a claim in the court of general jurisdiction in the state in which I am (or was last) employed by the Company.  
Sole and Entire Agreement
This is the complete agreement of the parties on the subject of arbitration of disputes (except for any arbitration agreement in connection with any pension or benefit plan).  This Agreement supersedes any prior or contemporaneous oral or written understandings on the subject.  No party is relying on any representations, oral or written, on the subject of the effect, enforceability or meaning of this Agreement, except as specifically set forth in this Agreement.
Construction and Severability
If any provision of the section entitled “Claims Covered by the Agreement” is determined to be void or unenforceable, then this Agreement shall be of no force or effect, because the parties intended to create an agreement to arbitrate individual disputes only.  If any other provision of this Agreement is determined to be void or unenforceable, in whole or in part, it shall not affect the validity of the remainder of the Agreement.  All other provisions shall remain in full force and effect based on the parties’ mutual intent to create a binding agreement to arbitrate their disputes individually.
Costs of Arbitration  
The costs and expenses of the arbitration, including the arbitrator’s fees shall be paid by the non-prevailing party, as determined by the arbitrators as part of the Final Determination.  In the event the arbitrators are unable to identify the prevailing party as part of the Final Determination, the arbitrators shall allocate the costs and expenses of the arbitration, including the arbitrators’ fees, in their sole discretion.
Satisfaction of Award
  If any party fails to pay the amount of the award, if any, assessed against it within thirty (30) calendar days of the delivery to such party of the Final Determination, the unpaid amount shall bear interest from the date of such delivery at the lesser of (i) the prime lending rate announced by Citibank N.A., plus three percent (3%) and (ii) the maximum rate permitted by applicable usury laws.  In addition, such party shall promptly reimburse the other party for any and all costs or expenses of any nature or kind whatsoever (including attorneys’ fees) incurred in seeking to collect such award or to enforce any Final Determination.
Confidentiality of Proceedings  

	
			
	 
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The parties hereto agree that all of the mediation and arbitration proceedings provided for herein, including any notice of claim, the Notice of Arbitration, the submissions of the parties, and the Final Determination issued by the arbitrators, shall be confidential and that no such party shall disclose such confidential information; provided, however, no party shall have an obligation hereunder to keep confidential any matter if and to the extent disclosure thereof is required by applicable law, regulation, court order, fiduciary duty, existing contractual obligation, or accounting rule or custom, as determined by legal counsel or accountants to such party, as applicable; provided, further, that this provision shall not prevent the party prevailing in the arbitration from submitting the Final Determination to a court for the purpose of enforcing the award, subject to comparable confidentiality provisions if the court agrees.
Voluntary Agreement
I ACKNOWLEDGE THAT I HAVE CAREFULLY READ THIS AGREEMENT; THAT I UNDERSTAND ITS TERMS; THAT ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN THE COMPANY AND ME RELATING TO THE SUBJECTS COVERED IN THE AGREEMENT ARE CONTAINED IN IT; AND THAT I HAVE ENTERED INTO THE AGREEMENT VOLUNTARILY AND NOT IN RELIANCE ON ANY PROMISES OR REPRESENTATIONS BY THE COMPANY OTHER THAN THOSE CONTAINED IN THIS AGREEMENT ITSELF AND THE DOCUMENTS THAT ACCOMPANIED ITS DISTRIBUTION TO ME.
I UNDERSTAND THAT I AM GIVING UP MY RIGHT TO A JURY TRIAL.
I FURTHER ACKNOWLEDGE THAT I HAVE BEEN GIVEN THE OPPORTUNITY TO DISCUSS THIS AGREEMENT WITH MY PRIVATE LEGAL COUNSEL AND HAVE AVAILED MYSELF OF THAT OPPORTUNITY TO THE EXTENT I WISH TO DO SO.

	
		
	Date:  __________________________
	_________________________________

 
 

	
			
	 
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