Document:

ex10-1.htm

Exhibit 10.1

 

EXECUTION VERSION

 

SECOND AMENDMENT

 

TO

 

SYNDICATED FACILITY AGREEMENT

 

dated as of

 

February 18, 2016

 

among

 

CIVEO CORPORATION,

 

CIVEO U.S. HOLDINGS LLC,

 

CIVEO CANADA INC.,

CIVEO PREMIUM CAMP SERVICES LTD.,

CIVEO PTY LIMITED

 

and

 

CIVEO MANAGEMENT LLC,

as Borrowers

 

THE LENDERS NAMED HEREIN,

 

ROYAL BANK OF CANADA,
as Administrative Agent, U.S. Collateral Agent,
Canadian Administrative Agent, Canadian Collateral Agent
and an Issuing Bank,

 

and

 

RBC EUROPE LIMITED,
as Australian Administrative Agent, Australian Collateral Agent
and an Issuing Bank,

 

=================================================

 

RBC CAPITAL MARKETS,1
as Lead Arranger and Sole Bookrunner

 

 

  1 RBC Capital Markets is the global brand name of the corporate and investment banking business of Royal Bank of Canada and its affiliates.

 

 

 

 

 

SECOND AMENDMENT TO SYNDICATED FACILITY AGREEMENT

 

THIS SECOND AMENDMENT TO SYNDICATED FACILITY AGREEMENT (this “Second Amendment”), dated as of February 18, 2016 is among CIVEO CORPORATION, a corporation incorporated under the laws of the Province of British Columbia (the “Parent Borrower”), CIVEO U.S. HOLDINGS LLC, a Delaware limited liability company (formerly Civeo USA Corp., a Delaware corporation) (the “Original U.S. Borrower”), CIVEO MANAGEMENT LLC, a Delaware limited liability company (the “Additional U.S. Borrower”, together with the Original U.S. Borrower, the “U.S. Borrowers”), CIVEO CANADA INC., a corporation amalgamated under the laws of the Province of Alberta (the “Canadian Parent”), CIVEO PREMIUM CAMP SERVICES LTD., a corporation amalgamated under the laws of the Province of Alberta (“Civeo Premium” and, together with the Canadian Parent, the “Canadian Borrowers”), CIVEO PTY LIMITED ACN 003 657 510, an Australian proprietary limited company (the “Australian Borrower” and, together with the Parent Borrower, the Original U.S. Borrower and the Canadian Borrowers, the “Existing Borrowers”; the Existing Borrowers, together with the Additional U.S. Borrower, the “Borrowers”), the Lenders party hereto (the “Lenders”), the Issuing Banks, the Swing Line Lenders, the ROYAL BANK OF CANADA, as administrative agent for the U.S. Lenders, as U.S. collateral agent for the Lenders, as administrative agent for the Canadian Lenders and as Canadian collateral agent for the Lenders, and RBC EUROPE LIMITED, as administrative agent for the Australian Lenders and as Australian collateral agent for the Lenders.

 

R E C I T A L S

 

A.     The Existing Borrowers, the Agents and the Lenders are parties to that certain Syndicated Facility Agreement, dated as of May 28, 2014 (as amended by the First Amendment to Syndicated Facility Agreement dated as of May 13, 2015, the “Credit Agreement” and, as amended by this Second Amendment, the “Amended Credit Agreement”), pursuant to which the Lenders have made certain loans to and other extensions of credit on behalf of the Borrowers.

 

B.     The Existing Borrowers, the Agents, the Issuing Banks, the Swing Line Lenders and the Lenders desire to amend certain provisions of the Credit Agreement.

 

C.     The Additional U.S. Borrower desires to join the Amended Credit Agreement as a Borrower thereunder and the Agents, the Issuing Banks, the Swing Line Lenders and the Lenders desire to consent to such joinder, and as of the Second Amendment Effective Date, the Additional U.S. Borrower has requested the U.S. Lenders to extend credit in the form of U.S. Revolving Credit Loans to the Additional U.S. Borrower from time to time.

 

D.     The Borrowers have requested and the Agents, the Issuing Banks, the Swing Line Lenders and the requisite Lenders agree to consent to certain transactions described herein.

 

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

 

Section 1.     Defined Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Amended Credit Agreement. Unless otherwise indicated, all article and section references in this Second Amendment refer to articles and sections of the Amended Credit Agreement.

 

 

 

 

 

Section 2.     Amendments to Credit Agreement. Effective as of the Second Amendment Effective Date, the Credit Agreement is hereby amended as follows: 

 

(a)     The first paragraph of the Credit Agreement is amended in its entirety to read as follows:

 

THIS SYNDICATED FACILITY AGREEMENT dated as of May 28, 2014 (as amended, supplemented or modified from time to time, this “Agreement”), is among CIVEO CORPORATION, a corporation incorporated under the laws of the Province of British Columbia (the “Parent Borrower”), CIVEO U.S. HOLDINGS LLC (f/k/a Civeo USA Corp.), a Delaware corporation (the “Original U.S. Borrower”), CIVEO MANAGEMENT LLC, a Delaware limited liability company (the “Additional U.S. Borrower”, together with the Original U.S. Borrower, the “U.S. Borrowers”), CIVEO CANADA INC., a corporation amalgamated under the laws of the Province of Alberta

(the “Canadian Parent”), CIVEO PREMIUM CAMP SERVICES LTD., a corporation amalgamated under the laws of the Province of Alberta (“Civeo Premium” and, together with the Canadian Parent and the Parent Borrower, the “Canadian Borrowers”), CIVEO PTY LIMITED ACN 003 657 510, an Australian proprietary limited company (the “Australian Borrower” and, together with the U.S. Borrowers and the Canadian Borrowers, the “Borrowers”), the Lenders (as defined in Article I), ROYAL BANK OF CANADA (“RBC”), as administrative agent (in such capacity, the “Administrative Agent”) for the U.S. Lenders, as U.S. collateral agent (in such capacity, the “U.S. Collateral Agent”) for the Lenders, as administrative agent (in such capacity, the “Canadian Administrative Agent”) for the Canadian Lenders (as defined in Article I) and as Canadian collateral agent (in such capacity, the “Canadian Collateral Agent”) for the Lenders, and RBC EUROPE LIMITED (“RBC Europe”), as administrative agent (in such capacity, the “Australian Administrative Agent”) for the Australian Lenders (as defined in Article I) and as Australian collateral agent (in such capacity, the “Australian Collateral Agent”) for the Lenders.

 

(b)     The definition of “Applicable Borrower” is amended in its entirety to read as follows:

 

“Applicable Borrower” shall mean (a) the Parent Borrower, with respect to the

Canadian Term Loan Facility or the Canadian Tranche B Revolving Credit Facility, (b)

the applicable U.S. Borrower, with respect to the U.S. Revolving Credit Facility, (c) the Original U.S. Borrower, with respect to the U.S. Term Loan Facility, (d) the applicable Canadian Borrower, with respect to the Canadian Tranche A Revolving Credit Facility and (e) the Australian Borrower, with respect to the Australian Revolving Credit Facility.

 

(c)     The definition of “Applicable Percentage” is amended in its entirety to read as follows:

 

 

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“Applicable Percentage” shall mean, for any day, with respect to any Eurocurrency Loan, ABR Loan, B/A Loan, Canadian Prime Rate Loan, U.S. Base Rate Loan, BBSY Rate Loan or the Commitment Fee, the applicable percentage set forth below under the applicable caption, based upon the Leverage Ratio as of the relevant date of determination:

 

	
Leverage Ratio
	
Eurocurrency/BBSY 

Rate/B/A Spread
	
ABR, Canadian 

Prime Rate and 

U.S. Base Rate 

Spread
	
Commitment Fee

Percentage

	 	 	 	 
	
Category 1
	
2.25%
	
1.25%
	
0.51%

	 	 	 	 
	Less than 2.00 to 1.00	 	 	 
	 	 	 	 
	
Category 2
	
2.50%
	
1.50%
	
0.56%

	 	 	 	 
	Greater than or equal to 2.00 to 1.00 but less than 2.50 to 1.00	 	 	 
	 	 	 	 
	
Category 3
	
2.75%
	
1.75%
	
0.62%

	 	 	 	 
	Greater than or equal to 2.50 to 1.00 but less than 3.00 to 1.00	 	 	 
	 	 	 	 
	
Category 4
	
3.00%
	
2.00%
	
0.68%

	 	 	 	 
	Greater than or equal to 3.00 to 1.00 but less than 3.50 to 1.00	 	 	 
	 	 	 	 
	
Category 5
	
3.50%
	
2.50%
	
0.79%

	 	 	 	 
	Greater than or equal to 3.50 to 1.00 but less than 4.00 to 1.00	 	 	 
	 	 	 	 
	
Category 6
	
4.00%
	
3.00%
	
0.90%

	 	 	 	 
	Greater than or equal to 4.00 to 1.00 but less than 4.50 to 1.00	 	 	 
	 	 	 	 
	
Category 7
	
4.50%
	
3.50%
	
1.01%

	 	 	 	 
	Greater than or equal to 4.50 to 1.00 but less than 5.00 to 1.00	 	 	 
	 	 	 	 
	
Category 8
	
5.00%
	
4.00%
	
1.13%

	 	 	 	 
	Greater than or equal to 5.00 to 1.00 	 	 	 

 

 

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(d)      The definition of “Confidential Information Memorandum” is hereby deleted.

 

(e)       The definition of “Fee Letter” is amended in its entirety to read as follows:

 

“Fee Letter” shall mean, collectively, (a) the letter agreement dated as of April 4, 2014 between the Original U.S. Borrower and RBC, (b) the letter agreement dated as of the First Amendment Effective Date between the Parent Borrower and RBC and (c) the letter agreement dated as of the First Amendment Effective Date among the Parent Borrower and RBC on behalf of certain of the Lenders.

 

(f)        The definition of “Foreign Subsidiary” is hereby amended by replacing “the U.S. Borrower” in clause (b) with “a U.S. Borrower”.

 

(g)       The definition of “Inversion Transaction” is amended in its entirety to read as follows:

 

“Inversion Transaction” shall mean the transactions among the Parent Borrower and its subsidiaries (including the Original U.S. Borrower and its subsidiaries prior to such transactions) as described in the Inversion Documents.

 

(h)        The definition of “U.S. Owned Subsidiary” is hereby amended by replacing “the U.S. Borrower” in clause (i) with “either U.S. Borrower”.

 

 

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(i)     The definition of “U.S. Subsidiary Guarantor” is hereby amended by replacing “the U.S. Borrower” with “the Original U.S. Borrower”.

 

(j)     The definition of “U.S. Term Loan” is amended in its entirety as follows:

 

“U.S. Term Loan” shall mean the U.S. dollar-denominated term loans made by the U.S. Term Lenders to the Original U.S. Borrower. Subsequent to the prepayment of the U.S. Term Loans pursuant to Section 4 of the First Amendment, the U.S. Term Lenders will hold U.S. Term Loans in the amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “U.S. Term Loans.”

 

(k)     Except as otherwise expressly amended in this Second Amendment, each reference to “the U.S. Borrower” shall be amended to refer to “the U.S. Borrowers”.

 

(l)     The last sentence of Section 1.03(b) of the Credit Agreement is hereby amended in its entirety to read as follows: 

 

Each Canadian Borrower (other than the Parent Borrower), each U.S. Borrower and the Australian Borrower hereby ratifies any and all acts which any of its Attorneys shall do in order to execute on its behalf, or in connection with, the Documents mentioned herein.

 

(m)     Section 2.03(a) of the Credit Agreement is hereby amended by: (i) replacing “the U.S. Borrower” in the first sentence with “the applicable U.S. Borrower” and (ii) replacing “the U.S. Borrower” in the second sentence with “such U.S. Borrower”.

 

(n)     The first sentence of Section 2.04(a) of the Credit Agreement is hereby amended in its entirety to read as follows:

 

Each U.S. Borrower hereby, jointly and severally, unconditionally promises to pay to the Administrative Agent for the account of each U.S. Revolving Lender holding U.S. Revolving Credit Loans the then unpaid principal amount of each such Revolving Credit Loan of such Lender on the Maturity Date.

 

(o)     The first sentence of Section 2.04(b) of the Credit Agreement is hereby amended in its entirety to read as follows:

 

The Original U.S. Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each U.S. Term Lender holding U.S. Term Loans the principal amounts set forth in Part A of Schedule 2.04 on each corresponding date set forth on such schedule; provided that the Administrative Agent shall promptly update Part A of Schedule 2.04 upon any repayment or prepayment of U.S. Term Loans, which updated schedule shall become effective upon delivery to the Parent Borrower.

 

(p)     Section 2.05(a)(i) of the Credit Agreement is hereby amended in its entirety to read as follows:

 

Each U.S. Borrower agrees to pay, jointly and severally, to each U.S. Revolving Lender, through the Administrative Agent, on the last Business Day of March, June, September and December in each year, a commitment fee (the “U.S. Commitment Fee”) equal to the Applicable Percentage on the daily unused amount of the U.S. Revolving Commitments of such U.S. Revolving Lender to make U.S. Revolving Credit Loans to the U.S. Borrowers during the preceding quarter. The U.S. Commitment Fee shall be computed on the basis of the actual number of days elapsed in a year of 360 days.

 

 

5

 

 

(q)     Section 2.05(c) of the Credit Agreement is hereby amended by replacing the clause “The U.S. Borrower agrees to pay” with “Each U.S. Borrower agrees to pay, jointly and severally”.

 

(r)     Section 2.12 of the Credit Agreement is hereby amended by adding the following new subsection (d):

 

(d)     If at any time the aggregate amount of cash and Permitted Investments on hand at the Parent Borrower and its Subsidiaries exceeds $40,000,000 for a period of more than three consecutive Business Days, make mandatory prepayments of Revolving Credit Loans (or, in respect of Bankers’ Acceptances, defease such Bankers’ Acceptances in accordance with the procedures set forth in Section 2.11(a)) in an amount equal to the lesser of (a) an amount sufficient to reduce the aggregate amount of cash and Permitted Investments on hand at the Parent and its Subsidiaries after such prepayment to below $40,000,000 or (b) an amount sufficient to repay all Revolving Credit Loans outstanding hereunder, in each case, such prepayment shall be made within two Business Days.

 

(s)     Section 3.05 is hereby amended in their entirety as follows:

 

The Parent Borrower has heretofore furnished to the Lenders the audited combined balance sheets and related combined statements of income, comprehensive income, changes in net investment, and cash flows of the Original U.S. Borrower, as of and for the year ended December 31, 2014. Such financial statements in each case present fairly, in all material respects, the financial condition of the Original U.S. Borrower, as of such date and for such period. Such financial statements and the notes thereto, disclose all material liabilities, direct or contingent, of the accommodations business and the Original U.S. Borrower, as applicable, as of the date thereof. Such financial statements were prepared in accordance with GAAP.

 

(t)     Section 4.01 of the Credit Agreement is amended by adding the following new subsection (d) and revising the last paragraph in its entirety as follows:

 

(d)      Immediately after giving effect to such Borrowing, no mandatory prepayment would be required under Section 2.12(d).

 

Each Credit Event shall be deemed to constitute a representation and warranty by the Borrowers on the date of such Credit Event as to the matters specified in paragraphs (b), (c) and (d) of this Section 4.01.

 

(u)     Section 6.04(i)(ii) of the Credit Agreement is amended in its entirety as follows:

 

 

 

6

 

 

(ii)     the Parent Borrower would (A) be in compliance with the covenants set forth in Section 6.10 and (B) after giving effect to such Permitted Acquisition, have a Leverage Ratio less than the Leverage Ratio immediately prior to such Permitted Acquisition, in each case as of the most recently completed period of four consecutive fiscal quarters ending prior to such transaction for which the financial statements required by Section 5.04(a) or 5.04(b) have been delivered or for which comparable financial statements have been filed with the SEC, after giving pro forma effect to such transaction and to any other event occurring during or after such period as to which pro forma recalculation is appropriate (including any Asset Sale and any other transaction described in this Section 6.04(i) occurring during or after such period) as if such transaction had occurred as of the first day of such period; 

 

(v)     Section 6.06 of the Credit Agreement is amended by replacing “January 1, 2016” with “January 1, 2017”. 

 

(w)     Section 6.11 of the Credit Agreement is amended in its entirety to read as follows:

 

Maximum Leverage Ratio. Permit the Leverage Ratio for any period of four consecutive fiscal quarters of the Parent Borrower, in each case taken as one accounting period, as of the last day of any fiscal quarter, to be greater than:

 

 

	
Fiscal Quarter Ending

 
	
Leverage Ratio

	
Any fiscal quarter ending on or 
prior to December 31, 2015

 
	
4.00:1.00

	
March 31, 2016

 
	
4.25:1.00

	
June 30, 2016

 
	
5.25:1.00

	
September 30, 2016 and 
December 31, 2016

 
	
5.50:1.00

	
March 31, 2017 and 
June 30, 2017

 
	
5.25:1.00

	
September 30, 2017 and 
December 31, 2017

 
	
5.00:1.00

	
March 31, 2018 

 
	
4.75:1.00

	
June 30, 2018 

 
	
3.75:1.00

	
September 30, 2018 and thereafter

 
	
3.50:1.00

 

 

7

 

 

(x)     Section 9.01(a)(ii) of the Credit Agreement is amended by replacing “the U.S. Borrower” with “a U.S. Borrower”.

 

(y)     Section 9.08 of the Credit Agreement is amended by adding the following paragraph at the end thereof:

 

Notwithstanding anything to the contrary contained in this Section 9.08 or any other provision of this Agreement or any other Loan Document, the Security Documents and related documents in connection with this Agreement and the other Loan Documents may be in a form reasonably determined by the Administrative Agent and the Collateral Agent and may be, together with this Agreement, amended, supplemented and waived with the consent of the Administrative Agent and the Collateral Agent at the request of the Borrower without the need to obtain the consent of any other Lender if such amendment, supplement or waiver is delivered in order (i) to comply with local law or advice of local counsel, or (ii) to cause such Security Documents or other documents to be consistent with this Agreement and the other Loan Documents.

 

Section 2.     Addition of Additional U.S. Borrower as a Borrower under the Amended Credit Agreement. The Additional U.S. Borrower hereby agrees to be bound by all of the terms, conditions and provisions of the Amended Credit Agreement and the other Loan Documents to which it becomes a party (and in furtherance thereof, the Additional U.S. Borrower ratifies and confirms, as to itself, all such terms, conditions and provisions) and, effective on the Second Amendment Effective Date, becomes a party to the Amended Credit Agreement as a Borrower with the same effect as if it were an original signatory to the Credit Agreement. From and after the Second Amendment Effective Date, the Additional U.S. Borrower shall have the rights and obligations of a Borrower under the Amended Credit Agreement and under the other Loan Documents and shall be bound by the terms, conditions and provisions thereof.

 

Section 3.     Reduction of Canadian Tranche B Revolving Commitments and Partial Repayment of U.S. Term Loans. The Borrowers agree that on the Second Amendment Effective Date, (i) the U.S. Term Loans will be prepaid in the aggregate principal amount of $25,000,000 and (ii) the Canadian Tranche B Revolving Commitment will be permanently reduced to an aggregate amount of $100,000,000.

 

Section 4.     Consent Fees. The Borrowers agree to pay to the Administrative Agent (a) for the account of each Lender that (i) notifies the Administrative Agent (or its counsel) that it has consented to this Second Amendment and (ii) delivers evidence satisfactory to the Administrative Agent that it has obtained all credit and other internal approvals necessary to enter into this Second Amendment, in each case at or prior to 2:00 p.m., New York City time, on February 17, 2016, a consent fee (the “Consent Fees”) in an amount equal to 0.25% of the aggregate principal amount of the outstanding U.S. Term Loans, Canadian Term Loans, the U.S. Revolving Commitment, the Canadian Tranche A Revolving Commitment, the Canadian Tranche B Revolving Commitment and the Australian Revolving Commitment of such Lender as of the Second Amendment Effective Date, after giving effect to the Amended Credit Agreement.

 

Section 5.     Conditions Precedent. This Second Amendment shall not be deemed to be effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.08 of the Credit Agreement) (the “Second Amendment Effective Date”):

 

 

8

 

 

(a)     The Administrative Agent shall have received from the Required Lenders, the Borrowers and the Guarantors, counterparts (in such number as may be requested by the Administrative Agent) of this Second Amendment signed on behalf of such Persons.

 

(b)     The Administrative Agents and the Lead Arranger shall have received all Fees and other amounts due and payable on or prior to the Second Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses (including, without limitation, the reasonable fees, charges and disbursements of counsel for the Agents) required to be reimbursed or paid by the Borrowers hereunder, under the Credit Agreement or under any other Loan Document.

 

(c)     The representations and warranties set forth in Article III of the Amended Credit Agreement and in each other Loan Document shall be true and correct in all material respects (provided that to the extent any representation and warranty is qualified as to “Material Adverse Effect” or otherwise as to “materiality”, such representation and warranty is true and correct in all respects) on and as of the Second Amendment Effective Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representation and warranty is true and correct in all material respects (provided that to the extent any such representation and warranty is qualified as to “Material Adverse Effect” or otherwise as to “materiality”, such representation and warranty is true and correct in all respects) as of such earlier date.

 

(d)     No Default or Event of Default shall have occurred and be continuing, after giving effect to the terms of this Second Amendment.

 

(e)     The Administrative Agent shall have received, on behalf of itself, the other Agents, the Lenders and the Issuing Banks:

 

(i)     any Note requested by a Lender pursuant to Section 2.04 of the Amended Credit Agreement payable to such requesting Lender;

 

(ii)     a favorable written opinion of Simpson Thacher & Bartlett LLP, U.S. counsel for the Additional U.S. Borrower (A) dated on or about the Second Amendment Effective Date, (B) addressed to the Agents and the Lenders, and (C) covering such matters relating to the Loan Documents in respect of the jurisdiction of the relevant counsel as the Administrative Agent shall reasonably request, and the Additional U.S. Borrower hereby requests such counsel to deliver such opinion;

 

(iii)     a certificate as to the good standing or tax status of the Additional U.S. Borrower as of a recent date, from the Secretary of State or other relevant Governmental Authority of the state of its organization;

 

(iv)     a certificate of the Secretary or Assistant Secretary (or such other corporate officer satisfactory to the Administrative Agent) of the Additional U.S. Borrower dated as of the Second Amendment Effective Date and certifying (1) that attached thereto is a true and complete copy of the organizational documents of such Borrower as in effect on the Second Amendment Effective Date and at all times since a date prior to the date of the resolutions described in clause (2) below, (2) that attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors (or persons performing similar functions) of such Borrower authorizing the Transactions to be entered into by such Borrower and the execution, delivery and performance of the Loan Documents to which such person is a party and the borrowings under the Amended Credit Agreement, and that such resolutions have not been modified, rescinded or amended and are in full force and effect, and (3) as to the incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in connection herewith on behalf of such Borrower;

 

 

9

 

 

(v)     a certificate, dated the Second Amendment Effective Date and signed by a Financial Officer of the Parent Borrower, certifying compliance with the conditions precedent set forth in Section 4.01(b) and (c) of the Amended Credit Agreement; and

 

(vi)     such other documents as Administrative Agent or special counsel to Administrative Agent may reasonably request.

 

Section 6.     Representations and Warranties. As of the date hereof, each Borrower hereby represents and warrants to the Administrative Agent and each of the Lenders as follows:

 

(a)     The representations and warranties set forth in Article III of the Credit Agreement and in each other Loan Document are true and correct in all material respects (provided that to the extent any representation and warranty is qualified as to “Material Adverse Effect” or otherwise as to “materiality”, such representation and warranty is true and correct in all respects) on and as of the date hereof with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representation and warranty is true and correct in all material respects (provided that to the extent any such representation and warranty is qualified as to “Material Adverse Effect” or otherwise as to “materiality”, such representation and warranty is true and correct in all respects) as of such earlier date.

 

(b)     No Default or Event of Default has occurred and is continuing.

 

Section 7.     Miscellaneous.

 

(a)     Confirmation. The provisions of the Credit Agreement, as amended by this Second Amendment, are hereby ratified and confirmed by the Borrowers and shall remain in full force and effect following the effectiveness of this Second Amendment. The amendments contained herein shall not be construed as a waiver or amendment of any other provision of the Credit Agreement or the other Loan Documents or for any purpose except as expressly set forth herein or a consent to any further or future action on the part of the Borrowers or the other Loan Parties that would require the waiver or consent of the Administrative Agents or the Lenders.

 

(b)     Ratification and Affirmation. Each of the Borrowers hereby (a) acknowledges the terms of this Second Amendment and (b) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended or modified hereby.

 

 

10

 

 

(c)     Limited Waiver of Certain Notice Requirements. Solely for purposes of the prepayment of the U.S. Term Loans and the permanent reduction of the Canadian Tranche B Revolving Commitment, in each case, in accordance with Section 9.08 of the Credit Agreement, the Lenders party hereto hereby (a) waive the requirement under Section 2.09(c) of the Credit Agreement that the Canadian Borrowers provide three Business Days’ prior irrevocable written notice in connection with such permanent reduction of the Canadian Tranche B Revolving Commitments and (b) waive the requirement under Section 2.11(a) of the Credit Agreement that the U.S. Borrower provide prior written notice as set forth therein in connection with the prepayment of the U.S. Term Loans. The waivers by the Lenders described in this Section 7(c) shall not be construed to be a consent to, or a permanent waiver of, Sections 2.09(c) or 2.11(a) of the Credit Agreement, or any other terms, provisions, covenants, warranties or agreements contained in the Credit Agreement or in any of the other Loan Documents.

 

(d)     Loan Document. This Second Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the terms and provisions of the Amended Credit Agreement relating to Loan Documents shall apply hereto.

 

(e)     Counterparts. This Second Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this Second Amendment by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

 

(f)     NO ORAL AGREEMENT. THIS SECOND AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

 

(g)     GOVERNING LAW. THIS SECOND AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

[SIGNATURES BEGIN NEXT PAGE]

 

 

11

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed as of the date first written above.

 

	
 
	
 CIVEO CORPORATION
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Frank Steininger
	
 

	
 
	
Name:     
	
Frank Steininger
	
 

	
 
	
Title:  
	
Senior Vice President, Chief Financial 
	
 

	 	 	Officer and Treasurer 	 

 

 

	
 
	
CIVEO U.S. HOLDINGS LLC
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Frank Steininger
	
 

	
 
	
Name:
	
Frank Steininger
	
 

	
 
	
Title:     
	
Senior Vice President and Treasurer 
	
 

 

 

	
 
	
CIVEO CANADA INC.
	
 

	 	 	 
	 	CIVEO PREMIUM CAMP SERVICES LTD.	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Frank Steininger
	
 

	
 
	
Name:  
	
Frank Steininger
	
 

	
 
	
Title:   
	
Director 
	
 

 

	
 
	
CIVEO MANAGEMENT LLC
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Frank Steininger
	
 

	
 
	
Name:  
	
Frank Steininger
	
 

	
 
	
Title: 
	
Senior Vice President, Chief Financial
	
 

	 	 	Officer and Treasurer	 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

	
 
	
CIVEO PTY LIMITED
	
 

	 	 	 
	 	 	 
	 	/s/ Bradley Dodson 	 
	 	Signature of Director 	 
	 	 	 
	 	 	 
	 	Bradley Dodson	 
	 	Name of Director	 
	 	 	 
	 	 	 
	 	/s/ Frank Steininger            	 
	 	Signature of Director 	 
	 	 	 
	 	Frank Steininger     	 
	 	Name of Director	 
	
 
	
 
	
 
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

 

	
 
	
ROYAL BANK OF CANADA,
	
 

	 	as Administrative Agent, U.S. Collateral Agent, Canadian Administrative Agent and Canadian Collateral Agent	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Ann Hurley
	
 

	
 
	
Name:    
	
Ann Hurley
	
 

	
 
	
Title:
	
Manager, Agency
	
 

                   

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

                  

	
 
	
RBC EUROPE LIMITED, 
	
 

	 	
as Australian Administrative Agent, Australian Collateral Agent and an Issuing Lender
	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Johnson Tse
	
 

	
 
	
Name: 
	
Johnson Tse
	
 

	
 
	
Title:
	
Authorized Signatory
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

 

	
 
	
ROYAL BANK OF CANADA, as a U.S. Lender,
	
 

	 	the U.S. Swing Line Lender and an Issuing Bank	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Jay T. Sartain
	
 

	
 
	
Name:  
	
Jay T. Sartain
	
 

	
 
	
Title:   
	
Authorized Signatory
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

	
 
	
ROYAL BANK OF CANADA, as a Canadian
	
 

	 	Lender, the Canadian Swing Line Lender and an Issuing Bank	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Maria E. Hushovd
	
 

	
 
	
Name:     
	
Maria E. Hushovd
	
 

	
 
	
Title:  
	
Authorized Signatory
	
 

   

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

 

	
 
	
ROYAL BANK OF CANADA, as an Australian
	
 

	 	Lender and an Issuing Bank	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Marcus Rayment
	
 

	
 
	
Name:     
	
Marcus Rayment
	
 

	
 
	
Title:  
	
Vice President
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

 

	
 
	
THE BANK OF NOVA SCOTIA, as a Canadian
	
 

	 	Lender and an Issuing Bank	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Mark Sparrow
	
 

	
 
	
Name:     
	
Mark Sparrow
	
 

	
 
	
Title:
	
Director
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

 

	
 
	
THE BANK OF NOVA SCOTIA ASIA LIMITED, 
	
 

	 	as an Australian Lender	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Mark Levia
	
 

	
 
	
Name:    
	
Mark Levia
	
 

	
 
	
Title:     
	
Director and Head
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

	
 
	
WELLS FARGO BANK, NATIONAL
	
 

	 	ASSOCIATION, as an Australian Lender	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Michael W. Nygren
	
 

	
 
	
Name:  
	
Michael W. Nygren
	
 

	
 
	
Title: 
	
Vice President
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement 

 

 

 

 

	
 
	
WELLS FARGO BANK N.A., CANADIAN
	
 

	 	BRANCH, as a Canadian Lender	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Lindy Couillard
	
 

	
 
	
Name:     
	
Vice President
	
 

	
 
	
Title:    
	
Wells Fargo Corporate Banking
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

	
 
	
NATIONAL AUSTRALIA BANK LIMITED
	
 

	 	
ABN # 12-004-044-937, as an Australian Lender 
	 
	 	and the Bilateral Lender	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Clare McComb
	
 

	
 
	
Name:    
	
Clare McComb
	
 

	
 
	
Title:   
	
Director
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

	
 
	
NATIONAL AUSTRALIA BANK LIMITED
	
 

	 	ABN # 12-004-044-937, as a U.S. Lender	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Clare McComb
	
 

	
 
	
Name: 
	
Clare McComb
	
 

	
 
	
Title:    
	
Director
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

	
 
	
CAPITAL ONE, N.A., as a U.S. Lender and an
	
 

	 	Issuing Bank	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ William P. Herrington
	
 

	
 
	
Name: 
	
William P. Herrington
	
 

	
 
	
Title:
	
EVP
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

	
 
	
COMPASS BANK, as a U.S. Lender, Canadian
	
 

	 	Lender and an Australian Lender	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Michael Song
	
 

	
 
	
Name:   
	
Michael Song
	
 

	
 
	
Title:     
	
Senior Vice President
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

	
 
	
ATB FINANCIAL, as a Canadian Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Warren Goodwin
	
 

	
 
	
Name:    
	
Warren Goodwin
	
 

	
 
	
Title:     
	
Director
	
 

 

 

	
 
	
By: 
	
/s/ Steven Ems
	
 

	
 
	
Name:     
	
Steven Ems
	
 

	
 
	
Title: 
	
Associate Director
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

	
 
	
NATIONAL BANK OF CANADA, as a Canadian
	
 

	 	Lender and an Australian Lender	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Craig Braun
	
 

	
 
	
Name:  
	
Craig Braun
	
 

	
 
	
Title:  
	
Managing Director, Energy Services Group
	
 

 

 

	
 
	
By: 
	
/s/ Darrell Stelmack
	
 

	
 
	
Name:  
	
Darrell Stelmack
	
 

	
 
	
Title:     
	
Director, Energy Services
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

	
 
	
FIRSTMERIT BANK, N.A., as a U.S. Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Evan Bing
	
 

	
 
	
Name:  
	
Evan Bing
	
 

	
 
	
Title:     
	
Vice President
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

	
 
	
SUMITOMO MITSUI BANKING
	
 

	 	CORPORATION, as a U.S. Lender	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Ryo Suzuki
	
 

	
 
	
Name:
	
Ryo Suzuki
	
 

	
 
	
Title:     
	
General Manager
	
 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

	
 
	
SUMITOMO MITSUI BANKING
	
 

	 	CORPORATION OF CANADA, as a Canadian	 
	 	 Lender	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Alfred Lee
	
 

	
 
	
Name:  
	
Alfred Lee
	
 

	
 
	
Title:     
	
Managing Director
	
 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

	
 
	
THE TORONTO-DOMINION BANK, as a 
	
 

	 	Canadian Lender and an Issuing Bank	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Roshni Patel
	
 

	
 
	
Name:   
	
Roshni Patel
	
 

	
 
	
Title:     
	
Senior Analyst
	
 

	 	 	Commercial National Accounts	 

 

 

	
 
	
By: 
	
/s/ Joe Seidel
	
 

	
 
	
Name:    
	
Joe Seidel
	
 

	
 
	
Title:     
	
Associate Vice President
	
 

	 	 	Commercial National Accounts	 

 

 

 

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

	
 
	
TORONTO-DOMINION (TEXAS) LLC, as a U.S. Lender 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Mark Narbey
	
 

	
 
	
Name:   
	
Mark Narbey
	
 

	
 
	
Title:   
	
Vice President
	
 

 

  

Signature Page to Second Amendment to Syndicated Facility Agreement

 

 

 

 

	
 
	
CANADIAN WESTERN BANK, as a Canadian Lender
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Amin Haque
	
 

	
 
	
Name:   
	
Amin Haque
	
 

	
 
	
Title:     
	
Manager, Energy & Corporate Banking
	
 

 

 

	
 
	
By: 
	
/s/ Arden Buskell
	
 

	
 
	
Name:    
	
Arden Buskell
	
 

	
 
	
Title:     
	
AVP & Manager, Energy Lending & 
	
 

	 	 	Corporate Banking	 

 

 

 

Signature Page to Second Amendment to Syndicated Facility AgreementExhibit

Exhibit 10.L

2016 RESTRICTED SHARE UNIT GRANT
RESTRICTED SHARE UNIT AGREEMENT 
UNDER THE 2015 STOCK PLAN

Grant Date:  Grant Date
Name:  Participant Name
Number and Type of Shares:  Shares Granted  RSU Shares
  

Award of Restricted Share Units under the 
Eaton Corporation plc 2015 Stock Plan

The Compensation and Organization Committee (the “Committee”) of the Board of Directors of Eaton Corporation plc (the “Company”) has awarded you a number of restricted share units effective as of Grant Date (the “Grant Date”) under the terms and conditions of the Company’s 2015 Stock Plan (the “Plan”).  Capitalized terms used without definition in this Restricted Share Unit Agreement (this “Agreement”) shall have the meanings given to such terms in the Plan.  Information concerning the number of restricted share units awarded to you (the “Award”) is available online through the Eaton Service Center maintained by Fidelity Stock Plan Services (or any successor third party administrator of the Plan) (the “Third Party Administrator”), which may be accessed through the Company’s website.  You are required to accept the Award online at the Eaton Service Center maintained by the Third Party Administrator.  You acknowledge and agree as follows:

1.    Acceptance.  I hereby accept the aforementioned Award on the terms and conditions provided in the Plan and this Agreement. 

2.    Restricted Share Units.  I acknowledge that, as of the Grant Date, the restricted share units referred to above (the “Restricted Units”) have been awarded to me, contingent on the continuation of my service with the Company or any of its subsidiaries as provided herein.  Each Restricted Unit is equivalent in value to the market value of one (1) ordinary share of  nominal value $0.01 per share (“Ordinary Share”) of the Company.  Except as otherwise provided in the Plan or this Agreement, the Restricted Units shall be forfeited and immediately cancelled if my employment with the Company or any of its subsidiaries is terminated under any circumstances whatsoever prior to the applicable vesting date, including without limitation dismissal, resignation, divestiture of operations, disability or retirement.  This possibility of forfeiture shall lapse according to the vesting schedule as published on the Company’s records at the Eaton Service Center maintained by the Third Party Administrator.

If any Restricted Units are forfeited for any reason, I understand that I will not be entitled to any payment of cash or Ordinary Shares in respect of any Restricted Units so forfeited.  Restricted Units that vest in 

accordance with Section 3 of this Agreement shall be settled by the delivery to me of an equal number of Ordinary Shares within ten (10) days following the applicable vesting date. 
The Management Compensation Committee of the Company (the “Management Committee”) reserves the right to decide to what extent my leaves of absence for government or military service, illness, temporary disability, or other reasons shall not be deemed to be an interruption of continuous employment.        

3.    Vesting.   The Restricted Units will vest subject to and conditioned upon my continued employment by the Company or any of its subsidiaries through each applicable vesting date as published on the Company’s records at the Eaton Service Center maintained by the Third Party Administrator; provided, however that the Committee may, in its sole discretion, waive the requirement of continued employment in whole or in part in the event of my termination of employment prior to the applicable vesting date.  Further, if a regularly scheduled vest day falls on a Saturday, Sunday or other day when the principal stock exchange for the Ordinary Shares is closed for trading, the vest day shall mean the nearest preceding day when that stock exchange is open for trading.  
    
4.    Par Value.  To the extent that Ordinary Shares issued upon settlement of my Award of Restricted Units are newly issued Ordinary Shares, I hereby authorize the Company or any subsidiary to withhold from me via payroll deduction an amount equal to the nominal value, being US $0.01 per share, of such number of newly issued Ordinary Shares, or if such deduction is not made, I will pay or make arrangements with the Company for payment of such amount.

5.    Transferability.  The Restricted Units and any Ordinary Shares to be delivered with respect to the Restricted Units shall be non-transferable until such time as the Ordinary Shares are delivered to me hereunder.  I agree not to make, or attempt to make, any sale, assignment, transfer or pledge of any of the Restricted Units or Ordinary Shares prior to the date on which Ordinary Shares are delivered to me.  Notwithstanding the foregoing provisions of this Section 5, I am permitted to designate one or more primary and contingent beneficiaries to whom the Restricted Units will be transferred in the event of my death.  The process for designating such beneficiaries is available through the Eaton Service Center maintained by the Third Party Administrator. 

6.    Reorganizations, etc.  The number of Restricted Units and class of shares subject to this Award are subject to adjustment as provided in Section 11 of the Plan.

7.    No Dividends or Voting Rights.  I acknowledge that there are no voting or dividend rights associated with the Restricted Units such as those available to holders of Ordinary Shares of the Company.

8.    Tax Withholdings.  

(a)    I am responsible for all taxes and social insurance contributions owed by me in connection with the Restricted Units, regardless of any action the Company takes with respect to any Tax Withholding Obligations (as defined below) that arise in connection with the Restricted Units.  The Company does not make any representation or undertaking regarding the tax treatment or treatment of any tax withholding in connection with the grant, vesting or payment of the Restricted Units or the subsequent sale of the Ordinary Shares.  The Company does not commit and is under no obligation to structure the Restricted Units to reduce or eliminate my tax liability. 

(b)    Prior to any event in connection with the Restricted Units that the Company determines may result in any domestic or foreign tax withholding obligation, whether national, federal, state or local, including any social insurance contributions (the “Tax Withholding Obligation”), I am required to arrange for the satisfaction of the amount of such Tax Withholding Obligation in a manner acceptable to the Company.  My 

acceptance of this Agreement constitutes my instruction and authorization to the Company to withhold on my behalf the number of Ordinary Shares from those Ordinary Shares issuable to me at the time when the Restricted Units become vested or payable as the Company determines to be sufficient to satisfy the Tax Withholding Obligation.  The value of the Ordinary Shares withheld for such purposes shall be based on the fair market value of the Ordinary Shares on the date of vesting or payment, as applicable.  To the extent that the Company or an affiliate withholds in Ordinary Shares, it will do so at the minimum statutory rate to the extent necessary, as determined by the Company, to avoid negative accounting treatment.  Should the Company or the affiliate withhold an amount in excess of my actual Tax Withholding Obligation, the Company and/or my employer will refund the excess within a reasonable period and without any interest.  I agree (i) to pay the Company and/or the affiliate employing me any amount of the Tax Withholding Obligation that is not satisfied by the means described herein or (ii) to the extent permitted by applicable law, for the Company and/or the affiliate employing me to deduct cash from my regular salary payroll to cover such additional amounts.  If I fail to comply with my obligations in connection with the Tax Withholding Obligation as described in this section, the Company may refuse to deliver the Ordinary Shares.

9.    No Rights to Continued Employment.  I acknowledge that this Award of Restricted Units does not in any way entitle me to continued employment with the Company or any of its subsidiaries for the period during which the possibility of forfeiture continues or for any other period, and does not limit or restrict any right the Company or any of its subsidiaries otherwise may have to terminate my employment.  Furthermore, the Restricted Units and my participation in the Plan will not be interpreted to form an employment contract or relationship with the Company or any subsidiary or affiliate.

10.    Non-Competition.  I expressly acknowledge and agree that in the event that I voluntarily leave the employment of the Company or a subsidiary and within one year after the vesting of the Restricted Units enter into an activity as employee, agent, officer, director, principal or proprietor which, in the sole judgment of the Management Committee, is in competition with the Company or a subsidiary, the amount of the total fair market value of such vested Restricted Units as of the vesting date shall inure to the benefit of the Company and I agree to promptly pay the same to the Company, unless the Management Committee in its sole discretion shall determine that such action by me is not inimical to the best interests of the Company or its subsidiaries.    

11.    Non-Solicitation.  I agree that during my employment and for a period of twelve (12) months from the voluntary or involuntary termination of my employment for any reason and with or without Cause, I will not, (a) either on my own behalf or for any competing business, directly or indirectly solicit, divert, appropriate, or accept any business from, or attempt to solicit, divert, appropriate, or accept any business from any customers with whom I had material business contact during the last five (5) years of my employment, or about whom I have any trade secret information, for the purposes of providing products or services that are the same as or substantially similar to those provided by the Company or a subsidiary, or (b) directly or indirectly solicit, recruit, or encourage current employees of Eaton or employees who have terminated their employment with Eaton or been terminated by Eaton within six months of the solicitation, recruitment, or encouragement to terminate employment with Eaton and/or to work in any manner for me or any entity affiliated with me.

12.    Change of Control.  

(a)     Notwithstanding anything in this Agreement to the contrary, the provisions of this Section 12 shall govern the Award, to the extent not previously vested or forfeited, in the event of a Change of Control (as defined in the Plan) of the Company.

(b)      If the Restricted Units are not assumed by the acquiring or surviving entity or otherwise equitably converted or substituted in connection with the Change of Control in a manner approved by the Committee, then, the forfeiture restrictions referred to in Section 2 hereof shall lapse with respect to all of the Restricted Units as of the date of the Change of Control and the vested Restricted Units shall be settled in accordance with Section 2 hereof, subject to Section 13 of this Agreement.

(c)      If the Restricted Units are assumed by the acquiring or surviving entity or otherwise equitably converted or substituted in connection with the Change of Control in a manner approved by the Committee, then the Restricted Units shall continue to vest subject to my continued employment in accordance with the original vesting schedule of the Award; provided, however that if within two years after the Change of Control, my employment is terminated by the Company or a subsidiary without Cause (as defined in the Plan) or by me for Good Reason (as defined in the Plan), then the forfeiture restrictions referred to in Section 2 hereof shall lapse with respect to all of the Restricted Units as of the date of the date of such employment termination and the vested Restricted Units shall be settled in accordance with Section 2 hereof, subject to Section 13 of this Agreement.

13.    Section 409A of the Code.  The Company intends that the Restricted Units will be exempt from or comply with the requirements of Section 409A of the Code, and this Agreement shall be interpreted and administered in accordance with such intent.  In particular, to the extent required to comply with Section 409A of the Code and notwithstanding any other provision of this Agreement to the contrary: (a) the phrase “termination of employment” or words of similar import shall mean my “separation from service” with the Company within the meaning of Section 409A of the Code; (b) if I am a “specified employee” at the time of my separation from service with the Company (as determined by the Company in accordance with Section 409A of the Code), then any Restricted Units otherwise payable as a result of my  separation from service shall be paid within thirty (30) days after the first business day which is at least six (6) months after my separation from service (or if earlier, within 60 days after my death); and (c) any vested Restricted Units otherwise payable under Section 12(b) hereof as a result of a Change of Control shall not be paid at such time unless the Change of Control qualifies as a “change in control event” within the meaning of Section 409A of the Code and the Treasury Regulations thereunder and payment at such time is otherwise permitted without the imposition of additional tax under Section 409A of the Code, and if payment of Restricted Units that become vested upon a Change of Control is not so permitted, payment of such vested Restricted Units will be made within thirty (30) days after the earlier of the originally schedule vesting date(s) or the date of my separation from service (subject to any six-month delay required to comply with Section 409A of the Code if I am a specified employee as provided herein).  Although the Company will use reasonable efforts to avoid the imposition of taxation, interest and penalties under Section 409A of the Code, the tax treatment of the Restricted Units is not warranted or guaranteed.  I expressly acknowledge and agree that neither the Company, its subsidiaries nor their respective directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by me (or any other individual claiming a benefit through me) as a result of this Agreement or the Restricted Units granted hereunder.

14.    Nature of Grant.  In accepting the grant, I acknowledge that:

(a)    the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time;
(b)    the grant of the Restricted Units is voluntary and occasional and does not create any contractual or other right to receive future grants of restricted units, or benefits in lieu of restricted share units, even if restricted share units have been granted repeatedly in the past and all decisions with respect to future restricted share unit grants, if any, will be at the sole discretion of the Company;

(c)    I am voluntarily participating in the Plan;
(d)    the Restricted Units and the Ordinary Shares subject to the Restricted Units are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or my employer, and which is outside the scope of my employment contract, if any;
(e)    the Restricted Units and the Ordinary Shares subject to the Restricted Units are not intended to replace any pension rights or compensation;
(f)    the Restricted Units and the Ordinary Shares subject to the Restricted Units are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company, my employer, or any subsidiary or affiliate;
(g)    the future value of the underlying Ordinary Shares is unknown and cannot be predicted with certainty;
(h)    in consideration of the grant of the Restricted Units, no claim or entitlement to compensation or damages shall arise from forfeiture of the Restricted Units resulting from termination of my employment with the Company or my employer (for any reason whatsoever and whether or not in breach of local labor laws) and I irrevocably release the Company and my employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, I shall be deemed irrevocably to have waived any entitlement to pursue such claim; and
(i)    in the event of termination of my employment (whether or not in breach of local labor laws), my right to vest in the Restricted Units under the Plan, if any, will terminate effective as of the date that I am no longer actively providing services and will not be extended by any notice period mandated under local law (e.g., active service would not include a period of “garden leave” or similar period pursuant to local law); the Management Committee shall have the exclusive discretion to determine when I am no longer actively providing services for purposes of the Restricted Units.
15.    Data Privacy and Data Protection.  
(a)     I hereby explicitly and voluntarily consent to the collection, use, processing and transfer, in electronic or other form, of my personal data, including my Data as that term is defined below, as described in this Agreement and in any other award materials by and among, as applicable, my employer, the Company, and its subsidiaries and affiliates, as well as third parties acting on their behalf, for the exclusive purpose of implementing, administering and managing my eligibility for and participation in the Plan.

(b)    I understand that the Company and my employer may hold certain personal data about me, including but not limited to, my name, home address and telephone number, date of birth, social insurance number or other identification number, salary, benefit eligibility, nationality, job title, any Ordinary Shares or directorships held in the Company, details of all awards or any other entitlement to Ordinary Shares  granted, canceled, exercised, vested, unvested or outstanding in my favor, for the exclusive purpose of implementing, administering and managing the Plan (collectively, the “Data”). 
    
(c)    I understand that Data will be transferred to and processed and stored by third parties assisting the Company with the implementation, administration and management of the Plan, including Fidelity Stock Plan Services and any successor Third Party Administrator, and I consent to such transfer, processing and 

storage.  I understand that the Data may be transferred to and processed and stored outside of my country of residence, including  the United States of America, and that the recipients’ country (including the United States) may have different data privacy laws and protections than my country of residence, and I nevertheless consent to the transfer, processing and storage of my data in those nations. I understand that I may request a list with the names and addresses of any potential recipients of the Data by contacting my local human resources representative.  I authorize the Company and any other possible recipients that may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, store, process, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing my participation in the Plan.  I understand that Data will be held only as long as is necessary to implement, administer and manage my participation in the Plan or as otherwise may be required by applicable law.  I understand that I may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary and appropriate amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing my local human resources representative.  I understand, however, that refusing or withdrawing my consent may affect my ability to participate in the Plan.  For more information on the consequences of my refusal to consent or withdrawal of consent, I understand that I may contact my local human resources representative.

16.    Non-U.S. Addendum.  Notwithstanding any provisions in this Agreement, the Restricted Units shall be subject to the special terms and conditions set forth in the addendum attached hereto as Appendix A to this Agreement (the “Non-U.S. Addendum”) for my country.  Moreover, if I relocate to one of the countries included in the Non-U.S. Addendum, the special terms and conditions for such country will apply to me, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan.  The Non-U.S. Addendum constitutes part of this Agreement.

17.    Legal Fees.  I agree that if Eaton substantially prevails in any litigation arising out of or relating to this Agreement, Eaton shall be entitled to recovery of its reasonable attorneys’ fees and associated costs, in addition to any other relief mentioned herein.  

18.    Choice of Law, Venue, and Jurisdiction.  This Agreement shall be governed by the laws of the State of Ohio, except any such laws that require the application of another jurisdiction’s laws.
 
19.    Severability and Reformation.  The parties acknowledge that this Agreement is valid and enforceable only to the extent permitted by applicable law.  In the event that Sections 10 or 11 of this Agreement are rendered unenforceable by a court of law or by an arbitral body for any reason, I hereby acknowledge and agree that Eaton does not owe me any financial obligation as I am not bound by such section, nor will I seek any compensation from Eaton based on this Agreement or any provision thereof.  I agree that if any particular paragraphs, subparagraphs, sections, phrases, words, or other portions of this Agreement are determined by an appropriate court to be overbroad, invalid, or unenforceable as written, they shall be modified as necessary to be made valid or enforceable, and such modification shall not affect the remaining provisions of this Agreement, or, if they cannot be modified to be made valid or enforceable, then they shall be severed from this Agreement, and all remaining terms and provisions shall remain enforceable.

20.    Miscellaneous.  Unless otherwise expressly provided herein, terms defined in the Plan shall have the same meanings when used in this Agreement.  The Committee (or its delegate) shall have the right at any time in its sole discretion to amend, alter, suspend, discontinue or terminate any Restricted Units without my consent.  Also, the Restricted Units shall be null and void to the extent the grant of Restricted Units or the lapse of restrictions thereon is prohibited under the laws of the country of my residence or employment.  The Committee (or its delegate) may, in circumstances determined in its sole discretion, provide 

for the lapse of the above restrictions at earlier dates.  The use of the masculine gender shall be deemed to include the feminine gender.  In the event of a conflict between this Agreement and the Plan, the Plan shall control.  This Agreement represents the entire understanding between us on the subject hereof.

1019623.4
Appendix A

Non-U.S. Addendum

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