Document:

EX-10.1

 Exhibit 10.1 
  

 
  

 

					
	

	  	 SECOND AMENDED AND RESTATED

CREDIT AND SECURITY AGREEMENT
  
	  	
	  	  	

 by and among 

IES HOLDINGS, INC. 
 IES
COMMUNICATIONS, LLC 
 IES COMMERCIAL, INC. 

IES MANAGEMENT LP 
 IES
MANAGEMENT ROO, LP 
 IES PURCHASING & MATERIALS, INC. 

IES RESIDENTIAL, INC. 

INTEGRATED ELECTRICAL FINANCE, INC. 

IES SUBSIDIARY HOLDINGS, INC. 

MAGNETECH INDUSTRIAL SERVICES, INC. 

HK ENGINE COMPONENTS, LLC 

IES RENEWABLE ENERGY, LLC 

SOUTHERN INDUSTRIAL SALES AND SERVICES, INC. 

CALUMET ARMATURE AND ELECTRIC, L.L.C. 

SHANAHAN MECHANICAL AND ELECTRICAL, INC. 

IES INFRASTRUCTURE SOLUTIONS, LLC 

TECHNIBUS, INC. 
 FREEMAN
ENCLOSURE SYSTEMS, LLC 
 STRATEGIC EDGE LLC 

as Borrowers, 
 and

 IES CONSOLIDATION, LLC 

IES PROPERTIES, INC. 
 IES
SHARED SERVICES, INC. 
 IES TANGIBLE PROPERTIES, INC. 

KEY ELECTRICAL SUPPLY, INC. 

IES OPERATIONS GROUP, INC. 

ICS HOLDINGS LLC 
 as
Guarantors, 
 and 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Lender 
 Dated as of
April 10, 2017 
  
  

 

 Table of Contents 

 

							
	 	 	 	  	Page	 
	 1.
	 	 DEFINITIONS AND CONSTRUCTION
	  	 	2	 
			
	 1.1.
	 	 Definitions, Code Terms, Accounting Terms and Construction
	  	 	2	 
			
	 2.
	 	 LOANS AND TERMS OF PAYMENT
	  	 	2	 
			
	 2.1.
	 	 Revolving Loan Advances
	  	 	2	 
			
	 2.2.
	 	 [Reserved]
	  	 	3	 
			
	 2.3.
	 	 Borrowing Procedures
	  	 	3	 
			
	 2.4.
	 	 Payments; Prepayments
	  	 	4	 
			
	 2.5.
	 	 Clearance Charge
	  	 	5	 
			
	 2.6.
	 	 Interest Rates: Rates, Payments, and Calculations
	  	 	6	 
			
	 2.7.
	 	 Designated Account
	  	 	7	 
			
	 2.8.
	 	 Maintenance of Loan Account; Statements of Obligations
	  	 	7	 
			
	 2.9.
	 	 Maturity Termination Dates
	  	 	7	 
			
	 2.10.
	 	 Effect of Maturity
	  	 	8	 
			
	 2.11.
	 	 Termination or Reduction by Borrowers
	  	 	8	 
			
	 2.12.
	 	 Fees
	  	 	9	 
			
	 2.13.
	 	 Letters of Credit
	  	 	9	 
			
	 2.14.
	 	 Illegality; Impracticability; Increased Costs
	  	 	13	 
			
	 2.15.
	 	 Capital Requirements
	  	 	13	 
			
	 2.16.
	 	 Extent of Each Borrower’s Liability, Contribution
	  	 	14	 
			
	 2.17.
	 	 Parent as Agent for each Loan Party
	  	 	15	 
			
	 3.
	 	 SECURITY INTEREST
	  	 	16	 
			
	 3.1.
	 	 Grant of Security Interest
	  	 	16	 
			
	 3.2.
	 	 Borrowers Remain Liable
	  	 	16	 
			
	 3.3.
	 	 Assignment of Insurance
	  	 	16	 
			
	 3.4.
	 	 Financing Statements
	  	 	17	 
			
	 4.
	 	 CONDITIONS
	  	 	17	 
			
	 4.1.
	 	 Conditions Precedent to the Initial Extension of Credit
	  	 	17	 
			
	 4.2.
	 	 Conditions Precedent to all Extensions of Credit
	  	 	17	 
			
	 4.3.
	 	 Conditions Subsequent
	  	 	18	 
			
	 5.
	 	 REPRESENTATIONS AND WARRANTIES
	  	 	18	 
			
	 6.
	 	 AFFIRMATIVE COVENANTS
	  	 	18	 
			
	 6.1.
	 	 Financial Statements, Reports, Certificates
	  	 	18	 

  
 -i- 

							
	 6.2.
	 	 Collateral Reporting
	  	 	18	 
			
	 6.3.
	 	 Existence
	  	 	19	 
			
	 6.4.
	 	 Maintenance of Properties
	  	 	19	 
			
	 6.5.
	 	 Taxes
	  	 	19	 
			
	 6.6.
	 	 Insurance
	  	 	19	 
			
	 6.7.
	 	 Inspections, Exams, Audits and Appraisals
	  	 	20	 
			
	 6.8.
	 	 Account Verification
	  	 	20	 
			
	 6.9.
	 	 Compliance with Laws
	  	 	20	 
			
	 6.10.
	 	 Environmental
	  	 	21	 
			
	 6.11.
	 	 Disclosure Updates
	  	 	21	 
			
	 6.12.
	 	 Collateral Covenants
	  	 	22	 
			
	 6.13.
	 	 Material Contracts
	  	 	27	 
			
	 6.14.
	 	 Location of Inventory, Equipment and Books
	  	 	27	 
			
	 6.15.
	 	 Further Assurances
	  	 	27	 
			
	 6.16.
	 	 Formation of Subsidiaries
	  	 	28	 
			
	 6.17.
	 	 Post-Closing
	  	 	28	 
			
	 7.
	 	 NEGATIVE COVENANTS
	  	 	29	 
			
	 7.1.
	 	 Indebtedness
	  	 	29	 
			
	 7.2.
	 	 Liens
	  	 	29	 
			
	 7.3.
	 	 Restrictions on Fundamental Changes
	  	 	29	 
			
	 7.4.
	 	 Disposal of Assets
	  	 	30	 
			
	 7.5.
	 	 Change Name
	  	 	30	 
			
	 7.6.
	 	 Nature of Business
	  	 	30	 
			
	 7.7.
	 	 Prepayments and Amendments
	  	 	30	 
			
	 7.8.
	 	 Change of Control
	  	 	30	 
			
	 7.9.
	 	 Restricted Junior Payments
	  	 	31	 
			
	 7.10.
	 	 Accounting Methods
	  	 	31	 
			
	 7.11.
	 	 Investments; Controlled Investments
	  	 	31	 
			
	 7.12.
	 	 Transactions with Affiliates
	  	 	31	 
			
	 7.13.
	 	 Use of Proceeds
	  	 	32	 
			
	 7.14.
	 	 Limitation on Issuance of Stock
	  	 	32	 
			
	 7.15.
	 	 Consignments
	  	 	32	 
			
	 7.16.
	 	 Inventory and Equipment with Bailees
	  	 	32	 
			
	 7.17.
	 	 Use of Proceeds in Connection with Bonded Contracts
	  	 	32	 
			
	 7.18.
	 	 Surety Bonds
	  	 	33	 

  
 -ii- 

							
			
	 8.
	 	 FINANCIAL COVENANTS
	  	 	33	 
			
	 9.
	 	 EVENTS OF DEFAULT
	  	 	34	 
			
	 10.
	 	 RIGHTS AND REMEDIES
	  	 	37	 
			
	 10.1.
	 	 Rights and Remedies
	  	 	37	 
			
	 10.2.
	 	 Additional Rights and Remedies
	  	 	38	 
			
	 10.3.
	 	 Disposition of Pledged Interests by Lender
	  	 	39	 
			
	 10.4.
	 	 Voting and Other Rights in Respect of Pledged Interests
	  	 	40	 
			
	 10.5.
	 	 Lender Appointed Attorney in Fact
	  	 	40	 
			
	 10.6.
	 	 Remedies Cumulative
	  	 	41	 
			
	 10.7.
	 	 Crediting of Payments and Proceeds
	  	 	41	 
			
	 10.8.
	 	 Marshaling
	  	 	41	 
			
	 10.9.
	 	 License
	  	 	42	 
			
	 11.
	 	 WAIVERS; INDEMNIFICATION
	  	 	42	 
			
	 11.1.
	 	 Demand; Protest; etc
	  	 	42	 
			
	 11.2.
	 	 The Lender’s Liability for Collateral
	  	 	42	 
			
	 11.3.
	 	 Indemnification
	  	 	42	 
			
	 12.
	 	 NOTICES
	  	 	43	 
			
	 13.
	 	 CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER
	  	 	44	 
			
	 14.
	 	 ASSIGNMENTS; SUCCESSORS
	  	 	46	 
			
	 15.
	 	 AMENDMENTS; WAIVERS
	  	 	46	 
			
	 16.
	 	 TAXES
	  	 	46	 
			
	 17.
	 	 GENERAL PROVISIONS
	  	 	47	 
			
	 17.1.
	 	 Effectiveness
	  	 	47	 
			
	 17.2.
	 	 Section Headings
	  	 	47	 
			
	 17.3.
	 	 Interpretation
	  	 	47	 
			
	 17.4.
	 	 Severability of Provisions
	  	 	47	 
			
	 17.5.
	 	 Debtor-Creditor Relationship
	  	 	47	 
			
	 17.6.
	 	 Counterparts; Electronic Execution
	  	 	47	 
			
	 17.7.
	 	 Revival and Reinstatement of Obligations
	  	 	47	 
			
	 17.8.
	 	 Confidentiality
	  	 	48	 
			
	 17.9.
	 	 Lender Expenses
	  	 	49	 
			
	 17.10.
	 	 Setoff
	  	 	49	 
			
	 17.11.
	 	 Survival
	  	 	49	 

  
 -iii- 

							
	 17.12.
	 	 Patriot Act
	  	 	49	 
			
	 17.13.
	 	 Integration
	  	 	49	 
			
	 17.14.
	 	 Bank Product Providers
	  	 	50	 
			
	 17.15.
	 	 Non-Applicability of Chapter 346
	  	 	50	 
			
	 17.16.
	 	 Waiver of Rights under Texas Deceptive Trade Practices Act
	  	 	50	 
			
	 17.17.
	 	 Amendment and Restatement
	  	 	51	 

 EXHIBITS AND SCHEDULES 
  

			
	 Schedule 1.1
	  	 Definitions

	 Schedule 2.12
	  	 Fees

	 Schedule 6.1
	  	 Financial Statement, Reports, Certificates

	 Schedule 6.2
	  	 Collateral Reporting

		
	 Exhibit A
	  	 Form of Compliance Certificate

	 Exhibit B
	  	 Conditions Precedent

	 Exhibit C
	  	 Conditions Subsequent

	 Exhibit D
	  	 Representations and Warranties

	 Exhibit E
	  	 Information Certificate

	 Exhibit E-1
	  	 Supplement to Information Certificate

	 Exhibit F
	  	 Pledged Interest Addendum

	 Schedule A-1
	  	 Collection Account

	 Schedule A-2
	  	 Authorized Person

	 Schedule D-1
	  	 Designated Account

	 Schedule P-1
	  	 Permitted Investments

	 Schedule P-2
	  	 Permitted Liens

  
 -iv- 

 SECOND AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

THIS SECOND AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT (this “Agreement”), is entered into as of
April 10, 2017, by and among WELLS FARGO BANK, NATIONAL ASSOCIATION (“Lender”), IES HOLDINGS, INC., a Delaware corporation; IES COMMUNICATIONS, LLC, a Delaware limited liability company; IES COMMERCIAL,
INC., a Delaware corporation; IES MANAGEMENT LP, a Texas limited partnership; IES MANAGEMENT ROO, LP, a Texas limited partnership; IES PURCHASING & MATERIALS, INC., a Delaware corporation; IES
RESIDENTIAL, INC., a Delaware corporation; INTEGRATED ELECTRICAL FINANCE, INC., a Delaware corporation; IES SUBSIDIARY HOLDINGS, INC., a Delaware corporation; MAGNETECH INDUSTRIAL SERVICES, INC., an Indiana corporation;
HK ENGINE COMPONENTS, LLC, an Indiana limited liability company; IES RENEWABLE ENERGY, LLC, a Delaware limited liability company SOUTHERN INDUSTRIAL SALES AND SERVICES, INC., a Georgia corporation d/b/a Southern Rewinding and
Sales; CALUMET ARMATURE AND ELECTRIC, L.L.C., an Illinois limited liability company; SHANAHAN MECHANICAL AND ELECTRICAL, INC., a Nebraska corporation; IES INFRASTRUCTURE SOLUTIONS, LLC, a Delaware limited liability company;
TECHNIBUS, INC., a Delaware corporation; FREEMAN ENCLOSURE SYSTEMS, LLC, an Ohio limited liability company; STRATEGIC EDGE LLC, an Ohio limited liability company (each, individually a “Borrower”, and
collectively, the “Borrowers”); IES CONSOLIDATION, LLC, a Delaware limited liability company; IES PROPERTIES, INC., a Delaware corporation; IES SHARED SERVICES, INC., a Delaware corporation; IES TANGIBLE
PROPERTIES, INC., a Delaware corporation; KEY ELECTRICAL SUPPLY, INC., a Texas corporation; IES OPERATIONS GROUP, INC., a Delaware corporation; and ICS HOLDINGS LLC, an Arizona limited liability company (each, individually a
(“Guarantor”), and collectively, the “Guarantors”). 
 RECITALS: 

Borrower and Lender are parties to that certain Amended and Restated Credit and Security Agreement dated as of September 24, 2014,
executed by and among certain Borrowers, Guarantors, and Lender as the same has been amended, restated, modified or supplemented from time to time prior to the date hereof (the “Existing Credit Agreement”) pursuant to which Lender
made certain revolving loans and other financial accommodations to Borrower (the “Existing Loans”), and Borrower granted to Lender a security interest in all of the Collateral (as described in the Existing Credit Agreement, the
“Existing Collateral”) as security for all of the Indebtedness (as defined therein, the “Existing Obligations”). Pursuant to the Existing Credit Agreement, Lender and Borrower entered into various other Loan
Documents (as defined in the Existing Credit Agreement) (collectively, including the Existing Credit Agreement, the “Existing Loan Documents”). 

Borrower has requested that Lender agree to increase, extend, and continue to provide the Existing Loans, as well as make certain additional
financial accommodations to Borrower. 
 The parties have agreed (i) to amend and restate the Existing Credit Agreement in its entirety
as set forth herein, (ii) that, from and after the date hereof, the Existing Loans and the other Existing Obligations outstanding under the Existing Credit Agreement shall be governed 

 
by and deemed to be outstanding under the amended and restated terms set forth in this Agreement and the other Loan Documents, and (iii) that the Existing Obligations are and shall continue
to be (and all Obligations incurred pursuant hereto shall be) secured by, among other things, the Existing Collateral as well as the other Collateral (as defined herein). 

It is the intent of the parties that the execution and delivery of this Agreement, which is made for the purposes described in the foregoing
recitals, shall not effectuate a novation of any of the Existing Loan Documents, or except as set forth herein constitute a release or discharge of the Existing Obligations or the Existing Collateral, but rather as a substitution of certain terms
governing the payment and performance of such obligations and indebtedness. 
 NOW, THEREFORE, for valuable consideration the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	1.	DEFINITIONS AND CONSTRUCTION. 

 1.1.    Definitions, Code
Terms, Accounting Terms and Construction. Capitalized terms used in this Agreement shall have the meanings specified therefor on Schedule 1.1. Additionally, matters of (i) interpretation of terms defined in the Code,
(ii) interpretation of accounting terms and (iii) construction are set forth in Schedule 1.1. 
  

	2.	LOANS AND TERMS OF PAYMENT. 

 2.1.    Revolving Loan
Advances. 
 (a)    Subject to the terms and conditions of this Agreement, and during the term of this Agreement,
Lender agrees to make revolving loans (“Advances”) to Borrowers in an amount at any one time outstanding not to exceed the lesser of: 

(i)    the Maximum Revolver Amount less the Letter of Credit Usage at such time, and 

(ii)    the Borrowing Base at such time less the Letter of Credit Usage, other than Letter of Credit Usage in respect of
Cash Collateralized Letters of Credit, at such time. 
 (b)    Amounts borrowed pursuant to this
Section 2.1 may be repaid and, subject to the terms and conditions of this Agreement, reborrowed at any time during the term of this Agreement. The outstanding principal amount of the Advances, together with interest
accrued and unpaid thereon, shall be due and payable on the Termination Date. Lender has no obligation to make an Advance at any time following the occurrence and during the continuance of a Default or an Event of Default. 

(c)    If at any time the Maximum Revolver Amount is less than the amount of the Borrowing Base, the amount of Advances
available under Section 2.1(a) above shall be reduced by any Reserves established by Lender with respect to amounts that may be payable by any Borrower to third parties. Lender agrees it shall use reasonable efforts to promptly notify
Borrowers upon establishing any new Reserves; provided, however, Lender’s failure to do so shall not impact the amount of Advances available hereunder or impose any liability upon Lender whatsoever. 

  
 -2- 

 (d)    Lender may request that any portion of its Obligations or the Advances
made by it be evidenced by one or more promissory notes. In such event, Borrowers shall execute and deliver to such Lender the requested promissory notes payable to the order of such Lender in a form reasonably satisfactory to Borrowers. Thereafter,
the portion of the Obligations and Advances evidenced by such promissory notes and interest thereon shall at all times be represented by one or more promissory notes in such form payable to the order of the payee named therein; provided
that on the Closing Date, this Agreement shall evidence the Advances and other Obligations owing to Lender regardless of whether the notes (which are solely at the option and at the request of Lender pursuant to this Section 2.1(d)) are
issued. On the Closing Date, the Existing Note shall be deemed cancelled and any and all Advances and Obligations with respect thereto shall remain outstanding in all respects and evidenced by this Agreement. The cancellation of the Existing Note
should not be deemed a repayment or a novation of the Existing Note, a forgiveness of the Advances and other Obligations owing to Lender under the Existing Note, the Existing Credit Agreement, or this Agreement, or as an intent for the Advances and
other Obligations owing to Lender to be affected in any way (it being the express intent of Lender that the Advances and other Obligations owing to Lender shall remain in full force and effect in all respects and evidenced by this Agreement). 

2.2.    [Reserved]. 

2.3.    Borrowing Procedures. 

(a)    Procedure for Borrowing. Provided Lender has not separately agreed that Borrowers may use the Loan Management
Service, each Borrowing shall be made by a written request by an Authorized Person of Administrative Borrower delivered to Lender. Such written request must be received by Lender no later than 1:00 p.m. (Eastern time) on the Business Day that is the
requested Funding Date specifying (i) the amount of such Borrowing, and (ii) the requested Funding Date, which shall be a Business Day. At Lender’s election, in lieu of delivering the above-described written request, any Authorized
Person may give Lender telephonic notice of such request by the required time. Lender is authorized to make the Advances, and to issue the Letters of Credit, under this Agreement based upon telephonic or other instructions received from anyone
purporting to be an Authorized Person. 
 (b)    Making of Loans. Promptly after receipt of a request for a
Borrowing pursuant to Section 2.3(a), Lender shall make the proceeds thereof available to Borrowers on the applicable Funding Date by transferring immediately available funds equal to such amount to the Designated Account; provided,
however, that, Lender shall not have the obligation to make any Advance if (i) one (1) or more of the applicable conditions precedent set forth in Section 4 will not be satisfied on the requested Funding Date
for the applicable Borrowing unless such condition has been waived by Lender, or (ii) the requested Borrowing would exceed the Availability on such Funding Date. 

(c)    Loan Management Service. If Lender has separately agreed that Borrowers may use the Loan Management Service,
Borrowers shall not request and Lender shall 

  
 -3- 

 
no longer honor a request for an Advance made in accordance with Section 2.3(a) and all Advances will instead be initiated by Lender and credited to the Designated Account as Advances as
of the end of each Business Day in an amount sufficient to maintain an agreed upon ledger balance in the Designated Account, subject only to Availability as provided in Section 2.1. If Lender terminates Borrowers’
access to the Loan Management Service, Borrowers may continue to request Advances as provided in Section 2.3(a), subject to the other terms and conditions of this Agreement. Lender shall have no obligation to make an Advance through the Loan
Management Service after the occurrence and during the continuance of a Default or an Event of Default, or in an amount in excess of Availability, and may terminate the Loan Management Service at any time in its sole discretion. 

(d)    Protective Advances. Lender may make an Advance for any reason at any time in its Permitted Discretion,
without Borrowers’ compliance with any of the conditions of this Agreement, and (i) disburse the proceeds directly to third Persons in order to protect Lender’s interest in the Collateral or to perform any obligation of Borrowers
under this Agreement or otherwise to enhance the likelihood of repayment of the Obligations, or (ii) apply the proceeds to outstanding Obligations then due and payable (such Advance, a “Protective Advance”). Lender agrees it
shall use reasonable efforts to promptly notify Borrowers upon making any Protective Advance (other than during the continuance of an Event of Default); provided, however, Lender’s failure to do so shall not impact Borrowers’
obligation to repay such Protective Advance or otherwise impose any liability upon Lender whatsoever. 

2.4.    Payments; Prepayments. 

(a)    Payments by Borrowers. Except as otherwise expressly provided herein, all payments by Borrowers shall be made
as directed by Lender or as otherwise specified in the applicable Cash Management Documents. 
 (b)    Payments by
Account Debtors. From and after the date on which (i) an Event of Default has occurred or (ii) Borrowers’ Liquidity is less than thirty percent (30%) of the Maximum Revolver Amount (with at least fifty percent (50%) of such
Liquidity comprised of Excess Availability) as set forth on the monthly calculation delivered to Lender pursuant to Section 6.1 of the Agreement (a “Springing Lockbox Event”), Borrowers shall, unless
otherwise notified by Lender in writing, instruct all Account Debtors to make payments either directly to the Lockbox for deposit by Lender directly to the Collection Account, or instruct them to deliver such payments to Lender by wire transfer,
ACH, or other means as Lender may direct for deposit to the Lockbox or Collection Account or for direct application to reduce the outstanding Advances. If any Borrower receives a payment of the Proceeds of Collateral directly (whether before or
after the occurrence of a Springing Lockbox Event), such Borrower will promptly deposit the payment or Proceeds into the Collection Account. Until so deposited, such Borrower will hold all such payments and Proceeds in trust for Lender without
commingling with other funds or property. 
 (c)    Crediting Payments. For purposes of calculating Availability
and the accrual of interest on outstanding Obligations, unless otherwise provided in the applicable Cash Management Documents or as otherwise agreed between Administrative Borrower and Lender, each payment shall be applied to the Obligations as of
the first Business Day following the 

  
 -4- 

 
Business Day of deposit to the Collection Account of immediately available funds or other receipt of immediately available funds by Lender provided such payment is received in accordance with
Lender’s usual and customary practices as in effect from time to time. Any payment received by Lender that is not a transfer of immediately available funds shall be considered provisional until the item or items representing such payment have
been finally paid under applicable law. Should any payment item not be honored when presented for payment, then Borrowers shall be deemed not to have made such payment, and that portion of Borrowers’ outstanding Obligations corresponding to the
amount of such dishonored payment item shall be deemed to bear interest as if the dishonored payment item had never been received by Lender. Each reduction in outstanding Advances resulting from the application of such payment to the outstanding
Advances shall be accompanied by an equal reduction in the amount of outstanding Accounts. 
 (d)    Application of
Payments. All Collections and all Proceeds of Collateral received by Lender shall be applied to reduce the outstanding Obligations in the following manner: (i) so long as no Event of Default has occurred and is continuing and no Advances
are outstanding, as requested by Administrative Borrower, and (ii) otherwise as Lender shall determine in its discretion. For the avoidance of doubt, to the extent Administrative Borrower does not designate its preferred application of
Collection and Proceeds in writing to Lender under clause (i) above, Lender shall apply such Collections and Proceeds in such manner as determined in its sole discretion. After payment in full in cash of all Obligations, any remaining balance
shall be transferred to the Designated Account or otherwise to such other Person entitled thereto under applicable law. 

(e)    [Reserved]. 

(f)    Mandatory Prepayments. If, at any time, (i) the Revolver Usage exceeds (A) the Borrowing Base or
(B) the Maximum Revolver Amount, less Reserves (in accordance with Section 2.1(c)) at such time or (ii) (A) the Revolver Usage on such date exceeds (B) the Maximum Credit, less Reserves (in accordance with Section
2.1(c)) at such time (such excess amount described in clauses (i) and (ii) being referred to as the “Overadvance Amount”), then Borrowers shall immediately upon demand prepay the Obligations in an aggregate amount equal to
the Overadvance Amount. If payment in full of the outstanding revolving loans is insufficient to eliminate the Overadvance Amount and Letter of Credit Usage continues to exceed the Borrowing Base, Borrowers shall maintain Letter of Credit
Collateralization of the outstanding Letter of Credit Usage sufficient to eliminate the Overadvance Amount. Lender shall not be obligated to provide any Advances during any period that an Overadvance Amount is outstanding. 

2.5.    Clearance Charge. Collections received by Lender shall be applied as provided in Sections
2.4(c) and (d), but the Obligations paid with such Collections shall continue to accrue interest at the rate then applicable to Advances as provided under Section 2.6 through the end of the first Business Day
following the Business Day that such Collections were applied to the Obligations. This one (1) Business Day clearance charge on all Collections is acknowledged by the parties to constitute an integral aspect of the pricing of the financing of
Borrowers and shall apply irrespective of whether or not there are any outstanding monetary Obligations. The parties acknowledge and agree that the economic benefit of the foregoing provisions of this Section 2.5 shall
accrue exclusively to Lender. 

  
 -5- 

 2.6.    Interest Rates: Rates, Payments, and Calculations. 

(a)    Interest Rates. Except as provided in Section 2.6(b), the principal amount of all Obligations (except
for the undrawn Letters of Credit and Bank Products) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof at a per annum rate equal to the Interest Rate plus the applicable Interest
Rate Margin. 
 (b)    Default Rate. Upon the occurrence and during the continuation of an Event of Default and
at any time following the Termination Date, 
 (i)    the principal amount of all Obligations (except for undrawn
Letters of Credit and Bank Products) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof at a per annum rate equal to three (3) percentage points above the per annum rate
otherwise applicable thereunder, and 
 (ii)    the Letter of Credit fee provided for in
Section 2.12 shall be increased by three (3) percentage points above the per annum rate otherwise applicable hereunder. 

(c)    Payment. Except to the extent provided to the contrary in Section 2.12, all
interest, all Letter of Credit fees, all other fees payable hereunder or under any of the other Loan Documents, all costs and expenses payable hereunder or under any of the other Loan Documents, and all Lender Expenses shall be due and payable, in
arrears, on the first day of each month. Each Borrower hereby authorizes Lender, from time to time without prior notice to Borrowers, to charge all interest, Letter of Credit fees, and all other fees payable hereunder or under any of the other Loan
Documents (in each case, as and when due and payable), all costs and expenses payable hereunder or under any of the other Loan Documents (in each case, as and when accrued or incurred), all Lender Expenses (as and when accrued or incurred), and all
fees and costs provided for in Section 2.12 (as and when accrued or incurred), and all other payment obligations as and when due and payable under any Loan Document or any Bank Product Agreement (including any amounts due
and payable to any Bank Product Provider in respect of Bank Products) to the Loan Account, which amounts shall thereupon constitute Advances hereunder and, shall accrue interest at the rate then applicable to Advances. Any interest, fees, costs,
expenses, Lender Expenses, or other amounts payable hereunder or under any other Loan Document or under any Bank Product Agreement that are charged to the Loan Account shall thereafter constitute Advances hereunder and shall accrue interest at the
rate then applicable to Advances. 
 (d)    Computation. All interest and fees chargeable under the Loan
Documents shall be computed on the basis of a 360 day year, in each case, for the actual number of days elapsed in the period during which the interest or fees accrue. In the event the Interest Rate is changed from time to time hereafter, the rates
of interest hereunder based upon the Interest Rate automatically and immediately shall be increased or decreased by an amount equal to such change in the Interest Rate. 

  
 -6- 

 (e)    Intent to Limit Charges to Maximum Lawful Rate. In no event
shall the interest rate or rates payable under this Agreement, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination, deem
applicable. Borrowers and Lender, in executing and delivering this Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided, however, that, anything contained herein to the
contrary notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law (including, without limitation, the “weekly ceiling” from time to time in effect under Chapter 303 of the
Texas Finance Code (Vernon’s Texas Code Annotated), as amended from time to time, unless preempted by federal law), then, as of the date of this Agreement, Borrowers are and shall be liable only for the payment of such maximum amount as is
allowed by law, and payment received from Borrowers in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of the Obligations to the extent of such excess. 

2.7.    Designated Account. Borrowers agree to establish and maintain one or more Designated Accounts, each
in the name of a single Borrower, for the purpose of receiving the proceeds of the Advances requested by Borrowers and made by Lender hereunder. Unless otherwise agreed by Lender and Administrative Borrower, any Advance requested by Administrative
Borrower and made by Lender hereunder shall be made to the applicable Designated Account. 
 2.8.    Maintenance
of Loan Account; Statements of Obligations. Lender shall maintain an account on its books in the name of Borrowers (the “Loan Account”) in which will be recorded all Advances made by Lender to Borrowers or for
Borrowers’ account, the Letters of Credit issued or arranged by Lender for Borrowers’ account, and all other payment Obligations hereunder or under the other Loan Documents, including accrued interest, fees and expenses, and Lender
Expenses. In accordance with Section 2.4 and Section 2.5, the Loan Account will be credited with all payments received by Lender from Administrative Borrower or for Borrowers’ account. All
monthly statements delivered by Lender to the Borrowers regarding the Loan Account, including with respect to principal, interest, fees, and including an itemization of all charges and expenses constituting Lender Expenses owing, shall be subject to
subsequent adjustment by Lender but shall, absent manifest error, be conclusively presumed to be correct and accurate and constitute an account stated between Borrowers and Lender unless, within thirty (30) days after receipt thereof by
Administrative Borrower, Administrative Borrower shall deliver to Lender written objection thereto describing the error or errors contained in any such statements. 

2.9.    Maturity Termination Dates. Lender’s obligations under this Agreement shall continue in full
force and effect for a term ending on the earliest of (i) August 9, 2021 (the “Maturity Date”) or (ii) the date Borrowers terminate the Revolving Credit Facility, or (iii) the date the Revolving Credit Facility
terminates pursuant to Sections 10.1 and 10.2 following an Event of Default (the earliest of these dates, the “Termination Date”). The foregoing notwithstanding, Lender shall have the right to terminate its obligations
under this Agreement 

  
 -7- 

 
immediately and without notice upon the occurrence and during the continuation of an Event of Default. Each Borrower jointly and severally promises to pay the Obligations (including principal,
interest, fees, costs, and expenses, including Lender Expenses) in full on the Termination Date (other than the Hedge Obligations, which shall be paid in accordance with the applicable Hedge Agreement). 

2.10.    Effect of Maturity. On the Termination Date, all obligations of Lender to provide additional credit
hereunder shall automatically be terminated and all of the Obligations (other than Hedge Obligations which shall be terminated in accordance with the applicable Hedge Agreement) shall immediately become due and payable without notice or demand and
Borrowers shall immediately repay all of the Obligations in full. No termination of the obligations of Lender (other than cash payment in full of the Obligations and termination of the obligations of Lender to provide additional credit hereunder)
shall relieve or discharge any Loan Party of its duties, obligations, or covenants hereunder or under any other Loan Document and Lender’s Liens in the Collateral shall continue to secure the Obligations and shall remain in effect until all
Obligations have been paid in full in cash and Lender’s obligations to provide additional credit hereunder shall have been terminated. Provided that there are no suits, actions, proceedings or claims pending or threatened against any
Indemnified Person under this Agreement with respect to any Indemnified Liabilities, Lender shall, at Borrowers’ expense, release or terminate any filings or other agreements that perfect the Lender’s Liens in the Collateral, upon
Lender’s receipt of each of the following, in form and content satisfactory to Lender: (i) cash payment in full of all Obligations and completed performance by Borrowers with respect to their other obligations under this Agreement
(including Letter of Credit Collateralization with respect to all outstanding Letter of Credit Usage), (ii) evidence that any obligation of Lender to make Advances to any Borrower or provide any further credit to any Borrower has been terminated,
(iii) a general release of all claims against Lender and its Affiliates by each Borrower and each Loan Party relating to Lender’s performance and obligations under the Loan Documents, and (iv) an agreement by each Borrower, each
Guarantor, and any new lender to any Borrower to indemnify Lender and its Affiliates for any payments received by Lender or its Affiliates that are applied to the Obligations as a final payoff that may subsequently be returned or otherwise not paid
for any reason. With respect to any outstanding Hedge Obligations which are not so paid in full, the Bank Product Provider may require Borrowers to cash collateralize the then existing Hedge Obligations in an amount acceptable to Lender prior to
releasing or terminating any filings or other agreements that perfect the Lender’s Liens in the Collateral. 

2.11.    Termination or Reduction by Borrowers. 

Administrative Borrower may terminate the Credit Facility or reduce the Maximum Revolver Amount at any time prior to the Maturity Date, if
(i) it delivers a notice to Lender of their intentions at least ten (10) days prior to the proposed action and (ii) Borrowers pay the Obligations (other than the outstanding Hedge Obligations, which shall be paid in accordance with the
applicable Hedge Agreement) in full or down to the reduced Maximum Revolver Amount. Any reduction in the Maximum Revolver Amount shall be in multiples of $100,000, with a minimum reduction of at least $1,000,000; provided that the aggregate
amount of reductions in the Maximum Revolver Amount may not exceed $5,000,000. Each such termination, reduction or prepayment shall be irrevocable. Once reduced, the Maximum Revolver Amount may not be increased. 

  
 -8- 

 2.12.    Fees. Borrowers shall pay to Lender the fees set forth
on Schedule 2.12 attached hereto. 
 2.13.    Letters of Credit. 

(a)    Subject to the terms and conditions of this Agreement, upon the request of Administrative Borrower made in
accordance herewith, Lender agrees to issue a requested Letter of Credit for the account of any Borrower. By submitting a request to Lender for the issuance of a Letter of Credit, Administrative Borrower shall be deemed to have requested that Lender
issue the requested Letter of Credit. Each request for the issuance of a Letter of Credit, or the amendment, renewal, or extension of any outstanding Letter of Credit, shall be made in writing by an Authorized Person of Administrative Borrower and
delivered to Lender via hand delivery, telefacsimile, or other electronic method of transmission reasonably in advance of the requested date of issuance, amendment, renewal, or extension. Each such request shall be in form and substance reasonably
satisfactory to Lender, and (i) shall specify (A) the amount of such Letter of Credit, (B) the date of issuance, amendment, renewal, or extension of such Letter of Credit, (C) the proposed expiration date of such Letter of
Credit, (D) the name and address of the beneficiary of the Letter of Credit, and (E) such other information (including, the conditions to drawing, and, in the case of an amendment, renewal, or extension, identification of the Letter of
Credit to be so amended, renewed, or extended) as shall be necessary to prepare, amend, renew, or extend such Letter of Credit, and (ii) shall be accompanied by such Letter of Credit Agreements as Lender may request or require, to the extent
that such requests or requirements are consistent with the Letter of Credit Agreements that Lender generally requests for Letters of Credit in similar circumstances. 

(b)    Lender shall have no obligation to issue, amend, renew or extend a Letter of Credit if, after giving effect to the
requested issuance, amendment, renewal, or extension, the Letter of Credit Usage would exceed the lesser of (x) the Maximum Revolver Amount less the outstanding amount of Advances, less Reserves (in accordance with Section 2.1(c)) at
such time or (ii) $15,000,000. 

  
 -9- 

 (c)    Lender shall have no obligation to issue a Letter of Credit if
(i) any order, judgment, or decree of any Governmental Authority or arbitrator shall, by its terms, purport to enjoin or restrain Lender from issuing such Letter of Credit or any law applicable to Lender or any request or directive (whether or
not having the force of law) from any Governmental Authority with jurisdiction over Lender shall prohibit or request that Lender refrain from the issuance of letters of credit generally or such Letter of Credit in particular, or (ii) the
issuance of such Letter of Credit would violate one or more policies of Lender applicable to letters of credit generally. 

(d)    Each Letter of Credit shall be in form and substance reasonably acceptable to Lender, including the requirement
that the amounts payable thereunder must be payable in Dollars, and shall expire on a date no more than 12 months after the date of issuance or last renewal of such Letter of Credit, which date shall be no later than the Maturity Date. If Lender
makes a payment under a Letter of Credit, Borrowers shall pay the Lender an amount equal to the applicable Letter of Credit Disbursement on the date such Letter of Credit Disbursement is made and, in the absence of such payment, the amount of the
Letter of Credit Disbursement immediately and automatically shall be deemed to be an Advance hereunder (notwithstanding any failure to satisfy any condition precedent set forth in Section 4 or this
Section 2.13) and, initially, shall bear interest at the rate then applicable to Advances. If a Letter of Credit Disbursement is deemed to be an Advance hereunder, Borrowers’ obligation to pay the amount of such Letter
of Credit Disbursement to Lender shall be automatically converted into an obligation to pay Lender such resulting Advance. 

(e)    Each Borrower hereby agrees to indemnify, save, defend, and hold Lender harmless from any damage, loss, cost,
expense, or liability, and reasonable attorneys’ fees and expenses incurred by Lender arising out of or in connection with any Letter of Credit; provided, that Borrowers shall not be obligated hereunder to indemnify Lender for any
damage, loss, cost, expense, or liability that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of Lender. 

(f)    Lender and each Borrower agree that, in paying any drawing under a Letter of Credit, Lender shall not have any
responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person
executing or delivering any such document. Neither Lender nor any correspondent, participant or assignee of Lender shall be liable to any Loan Party for any of the following absent gross negligence or willful misconduct: (i) any action taken or
omitted; (ii) any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit or any error in interpretation of technical terms; or
(iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Letter of Credit Agreement. Each Borrower hereby assumes all risks of the acts or omissions of any beneficiary
or transferee with respect to its use of any Letter of Credit; provided, that this assumption is not intended to, and shall not, preclude Borrowers from pursuing such rights and remedies as they may have against the beneficiary or transferee
at law or under any other agreement. Neither Lender nor any correspondent, participant or assignee of Lender shall be liable or responsible for any of the matters described in clauses (i) through (vi) of Section 2.13(g) or for any
action, neglect or omission under or in connection with any Letter of 

  
 -10- 

 
Credit or Letter of Credit Agreement, including in connection with the issuance or any amendment of any Letter of Credit, the failure to issue or amend any Letter of Credit, the honoring or
dishonoring of any demand under any Letter of Credit, or the following of any Borrower’s instructions or those contained in the Letter of Credit or any modifications, amendments, or supplements thereto, and such action or neglect or omission
will bind Borrowers. In furtherance and not in limitation of the foregoing, Lender may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the
contrary (or Lender may refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit and may disregard any requirement in a Letter of Credit that notice of dishonor be
given in a particular manner and any requirement that presentation be made at a particular place or by a particular time of day), and Lender shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason. Lender shall not be responsible for the wording of any
Letter of Credit (including any drawing conditions or any terms or conditions that are ineffective, ambiguous, inconsistent, unduly complicated or reasonably impossible to satisfy), notwithstanding any assistance Lender may provide to Borrowers with
drafting or recommending text for any letter of credit application or with the structuring of any transaction related to any Letter of Credit, and each Borrower hereby acknowledges and agrees that any such assistance will not constitute legal or
other advice by Lender or any representation or warranty by Lender that any such wording or such Letter of Credit will be effective. Without limiting the foregoing, Lender may, as it deems appropriate, use in any Letter of Credit any portion of the
language prepared by any Borrower and contained in the Letter of Credit Agreements relative to drawings under such Letter of Credit. Each Borrower hereby acknowledges and agrees that Lender shall not be responsible for delays, errors, or omissions
resulting from the malfunction of equipment in connection with any Letter of Credit. 
 (g)    The obligation of each
Borrower to reimburse Lender for each drawing under each Letter of Credit shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including the following:

 (i)    any lack of validity or enforceability of such Letter of Credit, this Agreement, or any other Loan Document,

 (ii)    the existence of any claim, counterclaim, setoff, defense or other right that any Borrower or any of its
Subsidiaries or any other Loan Party may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), Lender or any other Person, whether in
connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction, 

(iii)    any draft, demand, certificate or other document presented under such Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect, or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of
Credit, 

  
 -11- 

 (iv)    any payment by Lender under such Letter of Credit against
presentation of a draft or certificate that does not substantially or strictly comply with the terms of such Letter of Credit (including, without limitation, any requirement that presentation be made at a particular place or by a particular time of
day), or any payment made by Lender under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, 

(v)    any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any
other circumstance that might otherwise constitute a defense available to, or discharge of, any Borrower, any of its Subsidiaries, or any other Loan Party, or 

(vi)    the fact that any Default or Event of Default shall have occurred and be continuing. 

(h)    Each Borrower acknowledges and agrees that any and all fees, charges, costs, or commissions in effect from time to
time, of Lender relating to Letters of Credit, upon the payment or negotiation of any drawing under any Letter of Credit, or upon the occurrence of any other activity with respect to any Letter of Credit (including the transfer, amendment, or
cancellation of any Letter of Credit), shall be Lender Expenses for purposes of this Agreement and shall be reimbursable immediately by Borrowers to Lender. 

(i)    If by reason of (i) any change after the Closing Date in any applicable law, treaty, rule, or regulation or
any change in the interpretation or application thereof by any Governmental Authority, or (ii) compliance by Lender with any direction, request, or requirement (irrespective of whether having the force of law) of any Governmental Authority or
monetary authority including, Regulation D of the Board of Governors as from time to time in effect (and any successor thereto): 

(i)    any reserve, deposit, or similar requirement is or shall be imposed or modified in respect of any Letter of Credit
issued or caused to be issued hereunder or hereby, or 
 (ii)    there shall be imposed on Lender any other condition
regarding any Letter of Credit, 
 and the result of the foregoing is to increase, directly or indirectly, the cost to Lender of making, participating in,
or maintaining any Letter of Credit or to reduce the amount receivable in respect thereof, then, and in any such case, Lender may, at any time within a reasonable period after the additional cost is incurred or the amount received is reduced, notify
Borrowers, and Borrowers shall pay within thirty (30) days after demand therefor, such amounts as Lender may specify to be necessary to compensate Lender for such additional cost or reduced receipt, together with interest on such amount from
the date of such demand until payment in full thereof at the rate then applicable to Advances hereunder; provided, that (A) Borrowers shall not be required to 

  
 -12- 

 
provide any compensation pursuant to this Section 2.13(i) for any such amounts incurred more than one hundred and eighty (180) days prior to the date on which the demand for payment
of such amounts is first made to Borrowers, and (B) if an event or circumstance giving rise to such amounts is retroactive, then the one hundred and eighty (180) day period referred to above shall be extended to include the period of
retroactive effect thereof. The determination by Lender of any amount due pursuant to this Section 2.13(i), as set forth in a certificate setting forth the calculation thereof in reasonable detail, shall, in the absence of manifest or
demonstrable error, be final and conclusive and binding on all of the parties hereto. 
 (j)    Unless otherwise
expressly agreed by Lender and Borrowers, when a Letter of Credit is issued, (i) the rules of ISP98 shall apply to each standby Letter of Credit, and (ii) the rules of the UCP 600 shall apply to each commercial Letter of Credit. 

(k)    In the event of a direct conflict between the provisions of this Section 2.13 and any
provision contained in any Letter of Credit Agreement, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent possible, to be in concert with each other. In the event of any actual,
irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.13 shall control and govern. 

2.14.    Illegality; Impracticability; Increased Costs. In the event that (i) any change in market
conditions or any law, regulation, treaty, or directive, or any change therein or in the interpretation or application thereof make it unlawful or impractical for Lender to fund or maintain extensions of credit with interest based upon Daily Three
Month LIBOR or to continue such funding or maintaining, or to determine or charge interest rates based upon Daily Three Month LIBOR, (ii) Lender determines that by reasons affecting the London interbank Eurodollar market, adequate and
reasonable means do not exist for ascertaining Daily Three Month LIBOR, or (iii) Lender determines that the interest rate based on the Daily Three Month LIBOR will not adequately and fairly reflect the cost to Lender of maintaining or funding
Advances at the interest rate based upon Daily Three Month LIBOR, Lender shall give notice of such changed circumstances to Borrowers and (i) interest on the principal amount of such extensions of credit thereafter shall accrue interest at a
rate equal to the Prime Rate plus the Interest Rate Margin, and (ii) Borrowers shall not be entitled to elect Daily Three Month LIBOR until Lender determines that it would no longer be unlawful or impractical to do so or that such increased
costs would no longer be applicable. 
 2.15.    Capital Requirements. If, after the date hereof, Lender
determines that (i) the adoption of or change in any law, rule, regulation or guideline regarding capital or reserve requirements for lenders, banks or bank holding companies, or any change in the interpretation, implementation, or application
thereof by any Governmental Authority charged with the administration thereof, including those changes resulting from the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Basel III, regardless of the date enacted,
adopted or issued, or (ii) compliance by Lender or its parent bank holding company with any guideline, request or directive of any such entity regarding capital adequacy (whether or not having the force of law), has the effect of reducing the
return on Lender’s or such holding company’s capital as a consequence of Lender’s loan commitments hereunder to a level below that which such Lender or such holding company could have achieved but for such adoption, change, or
compliance (taking into consideration such Lender’s or such holding company’s then 

  
 -13- 

 
existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any amount deemed by Lender to be material, then Lender may notify Borrowers
thereof. Following receipt of such notice, Borrowers agree to pay Lender on demand the amount of such reduction of return of capital as and when such reduction is determined, payable within thirty (30) days after presentation by Lender of a
statement of the amount and setting forth in reasonable detail Lender’s calculation thereof and the assumptions upon which such calculation was based (which statement shall be deemed true and correct absent manifest error). In determining such
amount, Lender may use any reasonable averaging and attribution methods. Failure or delay on the part of Lender to demand compensation pursuant to this Section shall not constitute a waiver of Lender’s right to demand such compensation;
provided that Borrowers shall not be required to compensate Lender pursuant to this Section for any reductions in return incurred more than one hundred and eighty (180) days prior to the date that Lender notifies Borrowers of such law,
rule, regulation or guideline giving rise to such reductions and of Lender’s intention to claim compensation therefor; provided further that if such claim arises by reason of the adoption of or change in any law, rule, regulation
or guideline that is retroactive, then the one hundred and eighty (180) day period referred to above shall be extended to include the period of retroactive effect thereof. 

2.16.    Extent of Each Borrower’s Liability, Contribution. 

(a)    Joint and Several Liability. Each Borrower agrees that it is jointly and severally liable for, and absolutely
and unconditionally guarantees to Lender the prompt payment and performance of, all Obligations under this Agreement and all agreements under the Loan Documents. Each Borrower agrees that its guaranty obligations hereunder constitute a continuing
guaranty of payment and not of collection, that such obligations shall not be discharged until cash payment in full of the Obligations, and that such obligations are absolute and unconditional, irrespective of (i) the genuineness, validity,
regularity, enforceability, subordination or any future modification of, or change in, any Obligations or Loan Document, or any other document, instrument or agreement to which any Borrower is or may become a party or be bound; (ii) the absence
of any action to enforce this Agreement (including this Section) or any other Loan Document, or any waiver, consent or indulgence of any kind by Lender with respect thereto; (iii) the existence, value or condition of, or failure to perfect any
of Lender’s Liens or to preserve rights against, any security or guaranty for the Obligations or any action, or the absence of any action, by Lender in respect thereof (including the release of any security or guaranty); (iv) the insolvency of
any Borrower; (v) any election by Lender in an Insolvency Proceeding for the application of Section 1111(b)(2) of the Bankruptcy Code; (vi) any borrowing or grant of a Lien by any other Borrower, as debtor-in-possession under Section 364 of the Bankruptcy Code or otherwise; (vii) the disallowance of any claims of Lender against any Borrower for the repayment of any Obligations under
Section 502 of the Bankruptcy Code or otherwise; or (viii) any other action or circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, except cash payment in full of all
Obligations. 
 (b)    Contribution. Each Borrower hereby agrees that it will not enforce any of its rights of
contribution or subrogation against any other Borrower with respect to any liability incurred by it hereunder or under any of the other Loan Documents, any payments made by it to Lender with respect to any of the Obligations or any collateral
security therefor until such 

  
 -14- 

 
time as all of the Obligations have been paid in full in cash. Any claim which any Borrower may have against any other Borrower with respect to any payments to Lender hereunder or under any of
the Bank Product Agreements are hereby expressly made subordinate and junior in right of payment, without limitation as to any increases in the Obligations arising hereunder or thereunder, to the prior payment in full in cash of the Obligations and,
in the event of any insolvency, bankruptcy, receivership, liquidation, reorganization or other similar proceeding under the laws of any jurisdiction relating to any Borrower, its debts or its assets, whether voluntary or involuntary, all such
Obligations shall be paid in full in cash before any payment or distribution of any character, whether in cash, securities or other property, shall be made to any other Borrower therefor. 

(c)    No Limitation on Liability. Nothing contained in this Section 2.16 shall limit the
liability of any Borrower to pay extensions of credit made directly or indirectly to that Borrower (including revolving loans advanced to any other Borrower and then re-loaned or otherwise transferred to, or
for the benefit of, such Borrower), Obligations relating to Letters of Credit issued to support such Borrower’s business, and all accrued interest, fees, expenses and other related Obligations with respect thereto, for which such Borrower shall
be primarily liable for all purposes hereunder. Lender shall have the right, at any time in its discretion, to condition an extension of credit hereunder upon a separate calculation of borrowing availability for each Borrower and to restrict the
disbursement and use of such extensions of credit to such Borrower. 
 2.17.    Parent as Agent for each Loan
Party. Each Loan Party hereby irrevocably appoints Parent as the borrowing agent, agent under the Loan Documents, and attorney-in-fact for all Loan Parties (the
“Administrative Borrower”) which appointment shall remain in full force and effect unless and until Lender shall have received prior written notice signed by each Loan Party that such appointment has been revoked and that another
Loan Party has been appointed Administrative Borrower. Each Loan Party hereby irrevocably appoints and authorizes the Administrative Borrower (a) to provide Lender with all notices with respect to Advances, Letters of Credit and other
extensions of credit obtained for the benefit of any Loan Party and all other notices and instructions under this Agreement, (b) to take such action as the Administrative Borrower deems appropriate on its behalf to obtain Advances, Letters of
Credit and other extensions of credit, (c) to execute waivers, amendments, and other modifications of this Agreement and the other Loan Documents on such Loan Party’s behalf, and (d) to exercise such other powers as are reasonably
incidental thereto to carry out the purposes of this Agreement and the Loan Documents. It is understood that the handling of the Loan Account and Collateral in a combined fashion, as more fully set forth herein, is done solely as an accommodation to
Loan Parties in order to utilize the collective borrowing powers of Loan Parties in the most efficient and economical manner and at their request, and that Lender shall not incur liability to any Loan Party as a result hereof. Each Loan Party
expects to derive benefit, directly or indirectly, from the handling of the Loan Account and the Collateral in a combined fashion since the successful operation of each Loan Party is dependent on the continued successful performance of the
integrated group. To induce Lender to do so, and in consideration thereof, each Loan Party hereby jointly and severally agrees to indemnify Lender and hold Lender harmless against any and all liability, expense, loss or claim of damage or injury,
made against Lender by any Loan Party or by any third party whosoever, arising from or incurred by reason of (a) the handling of the Loan Account and Collateral of Loan Parties as herein provided, or (b) Lender’s relying on any
instructions, signatories, or actions of the 

  
 -15- 

 
Administrative Borrower, except that Loan Parties will have no liability to Lender under this Section 2.17 with respect to any liability that has been finally determined
by a court of competent jurisdiction to have resulted solely from the gross negligence or willful misconduct of Lender. 
  

	3.	SECURITY INTEREST. 

 3.1.    Grant of Security
Interest. Each Loan Party hereby unconditionally grants, assigns, and pledges to Lender for the benefit of Lender and each Bank Product Provider, to secure payment and performance of the Obligations, a continuing security interest
(hereinafter referred to as the “Security Interest”) in all of such Loan Party’s right, title, and interest in and to the Collateral, as security for the payment and performance of all Obligations. Following request by Lender,
each Loan Party shall grant Lender a Lien and security interest in all Commercial Tort Claims that it may have against any Person. The Security Interest created hereby secures the payment and performance of the Obligations, whether now existing or
arising hereafter. Without limiting the generality of the foregoing, this Agreement secures the payment of all amounts which constitute part of the Obligations and would be owed by any Loan Party to Lender or any other Bank Product Provider, but for
the fact that they are unenforceable or not allowable (in whole or in part) as a claim in an Insolvency Proceeding involving any Borrower due to the existence of such Insolvency Proceeding. 

3.2.    Borrowers Remain Liable. Anything herein to the contrary notwithstanding, (a) each Loan Party
shall remain liable under the contracts and agreements included in the Collateral, including the Pledged Operating Agreements and the Pledged Partnership Agreements, to perform all of the duties and obligations thereunder to the same extent as if
this Agreement had not been executed, (b) the exercise by Lender of any of the rights hereunder shall not release any Loan Party from any of its duties or obligations under such contracts and agreements included in the Collateral, and
(c) Lender shall not have any obligation or liability under such contracts and agreements included in the Collateral by reason of this Agreement, nor shall Lender be obligated to perform any of the obligations or duties of any Loan Party
thereunder or to take any action to collect or enforce any claim for payment assigned hereunder. Until an Event of Default shall occur, except as otherwise provided in this Agreement or any other Loan Document, the Loan Parties shall have the right
to possession and enjoyment of the Collateral for the purpose of conducting the ordinary course of their respective businesses, subject to and upon the terms hereof and of this Agreement and the other Loan Documents. Without limiting the generality
of the foregoing, it is the intention of the parties hereto that record and beneficial ownership of the Pledged Interests, including all voting, consensual, dividend, and distribution rights, shall remain in the Loan Parties until (i) the
occurrence and continuance of an Event of Default and (ii) Lender has notified Loan Parties of Lender’s election to exercise such rights with respect to the Pledged Interests pursuant to Sections 10.3 and/or 10.4. 

3.3.    Assignment of Insurance. As additional security for the Obligations, each Loan Party hereby assigns
to Lender for the benefit of Lender and each Bank Product Provider all rights of such Loan Party under every policy of insurance covering the Collateral and all other assets and property of each Loan Party (including, without limitation business
interruption insurance and proceeds thereof) and all business records and other documents relating to it, and 

  
 -16- 

 
all monies (including proceeds and refunds) that may be payable under any policy, and each Loan Party hereby directs the issuer of each policy to pay all such monies directly and solely to
Lender. At any time, (i) upon the occurrence and during the continuance of a Default or an Event of Default, or (ii) otherwise upon Lender’s request, Lender may (but need not), in Lender’s or any Loan Party’s name, execute
and deliver proofs of claim, receive payment of proceeds and endorse checks and other instruments representing payment of the policy of insurance, and adjust, litigate, compromise or release claims against the issuer of any policy. Any monies
received under any insurance policy assigned to Lender, other than liability insurance policies, or received as payment of any award or compensation for condemnation or taking by eminent domain, in each case, in excess of $250,000, shall be paid to
Lender and, as determined by Lender in its sole discretion, either be applied to prepayment of the Obligations or disbursed to Loan Parties under payment terms reasonably satisfactory to Lender for application to the cost of repairs, replacements,
or restorations of the affected Collateral which shall be effected with reasonable promptness and shall be of a value at least equal to the value of the items or property destroyed. 

3.4.    Financing Statements. Each Loan Party authorizes Lender to file financing statements describing
Collateral to perfect Lender’s and each Bank Product Provider’s Security Interest in the Collateral, and Lender may describe the Collateral as “all personal property” or “all assets” or describe specific items of
Collateral including without limitation any Commercial Tort Claims. All financing statements filed before the date of this Agreement to perfect the Security Interest were authorized by such Loan Party and are hereby ratified. 

 

	4.	CONDITIONS. 

 4.1.    Conditions Precedent to the Initial
Extension of Credit. The obligation of Lender to make the additional extension of credit provided for hereunder is subject to the fulfillment, to the satisfaction of Lender, of each of the conditions precedent set forth on Exhibit B.

 4.2.    Conditions Precedent to all Extensions of Credit. The obligation of Lender to make any Advances
hereunder (or to extend any other credit hereunder) at any time shall be subject to the following conditions precedent: 

(a)    the representations and warranties of each Borrower and each other Loan Party or its Subsidiaries contained in this
Agreement or in the other Loan Documents shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality
in the text thereof) on and as of the date of such extension of credit, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and
warranties shall continue to be true and correct as of such earlier date); and 
 (b)    no Default or Event of Default
shall have occurred and be continuing on the date of such extension of credit, nor shall either result from the making thereof. 

  
 -17- 

 Any request for an extension of credit shall be deemed to be a representation by each Borrower and each other
Loan Party that the statements set forth in this Section 4.2 are correct as of the time of such request and if such extension of credit is a request for an Advance or a Letter of Credit, sufficient Availability exists for
such Advance or Letter of Credit pursuant to Section 2.1(a) and Section 2.13. 

4.3.    Conditions Subsequent. The obligation of Lender to continue to make Advances (or otherwise extend
credit hereunder) is subject to the fulfillment, on or before the date applicable thereto, of the conditions subsequent set forth on Exhibit C (the failure by any Borrower or any other Loan Party to so perform or cause to be performed such
conditions subsequent as and when required by the terms thereof, shall constitute an Event of Default). 
  

	5.	REPRESENTATIONS AND WARRANTIES. 

 In order to induce Lender to enter into this Agreement,
each Borrower and each other Loan Party makes the representations and warranties to Lender set forth on Exhibit D. Each of such representations and warranties shall be true, correct, and complete, in all material respects (except that such
materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof), as of the Closing Date, and shall be true, correct, and complete, in all material
respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof), as of the date of the making of each Advance or other
extension of credit made thereafter, as though made on and as of the date of such Advance or other extension of credit (except to the extent that such representations and warranties relate solely to an earlier date in which case such representations
and warranties shall continue to be true and correct as of such earlier date) and such representations and warranties shall survive the execution and delivery of this Agreement. 

 

	6.	AFFIRMATIVE COVENANTS. 

 Each Borrower and each other Loan Party covenants and agrees
that, until termination of all of the commitments of Lender hereunder to provide any further extensions of credit and payment in full of the Obligations, each Borrower and each other Loan Party shall and shall cause each of their respective
Subsidiaries to comply with each of the following: 
 6.1.    Financial Statements, Reports, Certificates.
Deliver to Lender copies of each of the financial statements, reports, and other items set forth on Schedule 6.1 no later than the times specified therein. In addition, each Borrower agrees that no Subsidiary of a Borrower will have a fiscal
year different from that of Borrowers. Each Borrower agrees to maintain a system of accounting that enables such Borrower to produce financial statements in accordance with GAAP. Each Loan Party shall also (a) keep a reporting system that shows
all additions, sales, claims, returns, and allowances with respect to the sales of such Loan Party and its Subsidiaries, and (b) maintain its billing systems/practices substantially as in effect as of the Closing Date and shall only make
material modifications following prior notice to Lender. 
 6.2.    Collateral Reporting. Provide Lender
with each of the reports set forth on Schedule 6.2 at the times specified therein. In addition, each Borrower agrees to use 

  
 -18- 

 
commercially reasonable efforts in cooperation with Lender to facilitate and implement a system of electronic collateral reporting in order to provide electronic reporting of each of the items
set forth on such Schedule. 
 6.3.    Existence. Except as otherwise permitted under
Section 7.3 or Section 7.4, at all times maintain and preserve in full force and effect (a) its existence (including being in good standing in its jurisdiction of organization) and
(b) all rights and franchises, licenses and permits material to its business; provided, however, that no Loan Party nor any of its Subsidiaries shall be required to preserve any such right or franchise, licenses or permits if such
Person’s senior management shall determine that the preservation thereof is no longer desirable in the conduct of the business of such Person, and that the loss thereof is not disadvantageous in any material respect to such Person or to the
Lender; provided that Borrowers deliver at least ten (10) days prior written notice to Lender of the election of such Loan Party or such Subsidiary not to preserve any such right or franchise, license or permit. 

6.4.    Maintenance of Properties. Maintain and preserve all of its assets that are necessary or useful in
the proper conduct of its business in good working order and condition, ordinary wear, tear and casualty excepted and Permitted Dispositions excepted (and except where the failure to so maintain and preserve such assets could not reasonably be
expected to result in a Material Adverse Change), and comply with the material provisions of all material leases to which it is a party as lessee, so as to prevent the loss or forfeiture thereof, unless such provisions are the subject of a Permitted
Protest. 
 6.5.    Taxes. 

(a)    Cause all assessments and taxes imposed, levied, or assessed against any Loan Party or its Subsidiaries, or any of
their respective assets or in respect of any of its income, businesses, or franchises to be paid in full, before delinquency or before the expiration of any extension period, except to the extent that the validity of such assessment or tax shall be
the subject of a Permitted Protest. 
 (b)    Make timely payment or deposit of all tax payments and withholding taxes
required of it and them by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request, furnish Lender with proof reasonably satisfactory to Lender
indicating that such Loan Party and its Subsidiaries have made such payments or deposits. 

6.6.    Insurance. At Borrowers’ expense, maintain insurance with respect to the assets of each Loan
Party and each of its Subsidiaries wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and risks as ordinarily are insured against by other Persons engaged in the same or similar businesses. Borrowers also
shall maintain, with respect to each Loan Party and each of its Subsidiaries, business interruption insurance, general liability insurance, flood insurance for Collateral located in a flood plain, product liability insurance, director’s and
officer’s liability insurance, fiduciary liability insurance, and employment practices liability insurance, as well as insurance against larceny, embezzlement, and criminal misappropriation. All such policies of insurance shall be with
responsible and reputable insurance companies acceptable to Lender in its Permitted Discretion and in such amounts as is 

  
 -19- 

 
carried generally in accordance with sound business practice by companies in similar businesses similarly situated and located and in any event in amount, adequacy and scope reasonably
satisfactory to Lender. All property insurance policies covering the Collateral are to be made payable to Lender for the benefit of Lender, as its interests may appear, in case of loss, pursuant to a lender loss payable endorsement acceptable to
Lender in its Permitted Discretion and are to contain such other provisions as Lender may reasonably require to fully protect the Lender’s interest in the Collateral and to any payments to be made under such policies. Such evidence of property
and general liability insurance shall be delivered to Lender, with the lender loss payable endorsements (but only in respect of Collateral) and additional insured endorsements (with respect to general liability coverage) in favor of Lender and shall
provide for not less than thirty (30) days (ten (10) days in the case of non-payment) prior written notice to Lender of the exercise of any right of cancellation. If Borrowers fail to maintain such
insurance, Lender may arrange for such insurance, but at Borrowers’ expense and without any responsibility on Lender’s part for obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the
collection of claims. Borrowers shall give Lender prompt notice of any loss exceeding $100,000 covered by their casualty or business interruption insurance. Upon the occurrence and during the continuance of an Event of Default, unless otherwise
agreed to by Lender in its sole discretion, Lender shall have the sole right to file claims under any property and general liability insurance policies in respect of the Collateral, to receive and give acquittance for any payments that may be
payable thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies.

 6.7.    Inspections, Exams, Audits and Appraisals. Permit Lender and each of Lender’s duly
authorized representatives to visit any of its properties and inspect any of its assets or books and records, to conduct inspections, exams, audits and appraisals of the Collateral, to examine and make copies of its books and records, and to discuss
its affairs, finances, and accounts with, and to be advised as to the same by, its officers and employees at such reasonable times and intervals as Lender may designate and, so long as no Default or Event of Default exists, with reasonable prior
notice to Borrowers. Borrower shall reimburse Lender in connection with such inspections, exams, audits and appraisals in accordance with Section 2.12. 

6.8.    Account Verification. In the event either (i) any Advances are outstanding, or (ii) a
Default or an Event of Default has occurred and is continuing, permit Lender, in Lender’s name or in the name of a nominee of Lender, to verify the validity, amount or any other matter relating to any Account, by mail, telephone, facsimile
transmission or otherwise. Further, at the request of Lender, Borrowers shall send requests for verification of Accounts or send notices of assignment of Accounts to Account Debtors and other obligors. 

6.9.    Compliance with Laws. Comply with the requirements of all applicable laws, rules, regulations, and
orders of any Governmental Authority, other than laws, rules, regulations, and orders the non-compliance with which, individually or in the aggregate, could not reasonably be expected to result in a Material
Adverse Change. 

  
 -20- 

 6.10.    Environmental. 

(a)    Keep any property either owned or operated by any Borrower or any other Loan Party or its Subsidiaries free of any
Environmental Liens or post bonds or other financial assurances satisfactory to Lender and in an amount sufficient to satisfy the obligations or liability evidenced by such Environmental Liens; 

(b)    Comply, in all material respects, with Environmental Laws and provide to Lender documentation of such compliance
which Lender reasonably requests; 
 (c)    Promptly notify Lender of any release of which any Borrower or any other
Loan Party has knowledge of a Hazardous Material in any reportable quantity from or onto property owned or operated by any Loan Party or any of its Subsidiaries and take any Remedial Actions required to abate said release or otherwise to come into
compliance, in all material respects, with applicable Environmental Law; and 
 (d)    Promptly, but in any event within
five (5) Business Days of its receipt thereof, provide Lender with written notice of any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of any Loan Party or its
Subsidiaries, (ii) commencement of any Environmental Action or written notice that an Environmental Action will be filed against any Loan Party or any of its Subsidiaries, and (iii) written notice of a violation, citation, or other
administrative order from a Governmental Authority. 
 6.11.    Disclosure Updates. 

(a)    Promptly and in no event later than five (5) Business Days after obtaining knowledge thereof or after the
occurrence thereof, whichever is earlier, notify Lender: 
 (i)    if any written information, exhibit, or report
furnished to Lender contained, at the time it was furnished, any untrue statement of a material fact or omitted to state any material fact necessary to make the statements contained therein, when taken as a whole, not misleading in light of the
circumstances in which made. Any notification pursuant to the foregoing provision will not cure or remedy the effect of the prior untrue statement of a material fact or omission of any material fact nor shall any such notification have the effect of
amending or modifying this Agreement or any of the Schedules hereto; 
 (ii)    of all actions, suits, or proceedings
brought by or against any Loan Party or any of its Subsidiaries before any court or Governmental Authority which reasonably could be expected to result in a Material Adverse Change, provided that, in any event, such notification shall not be later
than five (5) days after service of process with respect thereto on any Loan Party or any of its Subsidiaries; 

(iii)    of (i) any disputes or claims by any Borrower’s customers exceeding $1,000,000, individually or
$2,000,000 in the aggregate during any fiscal year; or (ii) Goods returned to or recovered by any Borrower outside of the ordinary course of business, with a fair market value exceeding $1,000,000 individually or $2,000,000; 

  
 -21- 

 (iv)    of any material loss or damage to any Collateral or any substantial
adverse change in the Collateral; or 
 (v)    of a violation of any law, rule or regulation, the non-compliance with which reasonably could be expected to result in a Material Adverse Change. 

(vi)     (A) with respect to any Account included in the Borrowing Base that would become a Bonded Account upon the
issuance of a proposed Surety Bond, at least five (5) days prior to any request by any Loan Party for the issuance of a Surety Bond from any Surety, notice of such Loan Party’s intent to request the issuance of such Surety Bond from such
Surety, which notice shall be in form and substance satisfactory to Lender, and in any event shall include, without limitation, (a) the name of the Loan Party requesting such Surety Bond, (b) the project related to such proposed Surety
Bond, (c) the name and address of the obligee under such proposed Surety Bond, and (d) a certification by a senior officer of the Parent that (i) the information contained in such notice is true and correct and (ii) no Account
included in the Borrowing Base at the time of such notice would become a Bonded Account upon the issuance of such proposed Surety Bond; provided, however, if any Account included in the Borrowing Base at the time of such notice would
become a Bonded Account upon the issuance of such proposed Surety Bond, then, in lieu of providing the certification described in clause (d)(ii) above, such senior officer of the Parent may provide an updated Borrowing Base Certificate that reflects
the exclusion of such Account from the Borrowing Base and certifies that the sum of all outstanding Advances at the time of such notice does not exceed the Borrowing Base as calculated pursuant to such updated Borrowing Base Certificate and
(B) on the last day of each month, notice of all Surety Bonds issued at the request of any Loan Party during the month then ending. Further, with respect to each Surety, Borrowers shall deliver to Lender a fully executed intercreditor
agreement, in form and substance satisfactory to Lender in its sole discretion. 
 (vii)    Promptly and in no event
later than five (5) Business Days after obtaining knowledge thereof or after the occurrence thereof, whichever is earlier, provide Lender with a supplement to Schedules 5.1(b), 5.1(d), 5.3, 5.6(d), 5.7(b), 5.12, 5.15, 5.19, 5.26(a), 5.29, 5.31,
5.32, 5.33, and 7.15 of the Information Certificate for the updates to the information required pursuant to such Sections to reflect changes resulting from transactions expressly permitted under this Agreement; or 

(b)    Immediately upon obtaining knowledge thereof or after the occurrence thereof, notify Lender of any event or
condition which constitutes a Default or an Event of Default and provide a statement of the action that such Borrower proposes to take with respect to such Default or Event of Default. 

Upon request of Lender, each Loan Party shall deliver to Lender any other materials, reports, records or information reasonably requested relating to the
operations, business affairs, financial condition of any Loan Party or its Subsidiaries or the Collateral. 

6.12.    Collateral Covenants. 

(a)    Possession of Collateral. In the event that any Collateral, including Proceeds, is evidenced by or consists
of Negotiable Collateral, Investment Related Property, or 

  
 -22- 

 
Chattel Paper, in each case, having an aggregate value or face amount of $250,000 or more for all such Negotiable Collateral, Investment Related Property, or Chattel Paper, the Loan Parties shall
promptly (and in any event within two (2) Business Days after receipt thereof), notify Lender thereof, and if and to the extent that perfection or priority of Lender’s Liens is dependent on or enhanced by possession, the applicable Loan
Party, promptly (and in any event within two (2) Business Days) after request by Lender, shall execute such other documents and instruments as shall be requested by Lender or, if applicable, endorse and deliver physical possession of such
Negotiable Collateral, Investment Related Property, or Chattel Paper to Lender, together with such undated powers (or other relevant document of assignment or transfer acceptable to Lender) endorsed in blank as shall be requested by Lender, and
shall do such other acts or things deemed necessary or desirable by Lender to enhance, perfect and protect Lender’s Liens therein. 

(b)    Chattel Paper. 

(i)    Promptly (and in any event within two (2) Business Days) after request by Lender, each Loan Party shall take
all steps reasonably necessary to grant Lender control of all electronic Chattel Paper of any Loan Party in accordance with the Code and all “transferable records” as that term is defined in Section 16 of the Uniform Electronic
Transaction Act and Section 201 of the federal Electronic Signatures in Global and National Commerce Act as in effect in any relevant jurisdiction, to the extent that the individual or aggregate value or face amount of such electronic Chattel
Paper equals or exceeds $100,000; and 
 (ii)    If any Loan Party retains possession of any Chattel Paper or
instruments (which retention of possession shall be subject to the extent permitted hereby), promptly upon the request of Lender, such Chattel Paper and instruments shall be marked with the following legend: “This writing and the obligations
evidenced or secured hereby are subject to the Security Interest of Wells Fargo Bank, National Association, as Lender”. 

(c)    Control Agreements. 

(i)    Except to the extent otherwise provided by Section 7.11, each Loan Party shall obtain a
Control Agreement, from each bank (other than Lender) maintaining a Deposit Account for such Loan Party; 

(ii)    Except to the extent otherwise provided by Section 7.11, each Loan Party shall obtain a
Control Agreement, from each issuer of uncertificated securities, securities intermediary, or commodities intermediary issuing or holding any financial assets or commodities to or for any Loan Party; and 

(iii)    Except to the extent otherwise provided by Section 7.11, each Loan Party shall cause
Lender to obtain “control”, as such term is defined in the Code, with respect to all of such Loan Party’s investment property. 

(d)    Letter-of-Credit Rights. If
the Loan Parties (or any of them) are or become the beneficiary of letters of credit having a face amount or value of $250,000 or more in the aggregate, then the applicable Loan Party or Loan Parties shall promptly (and in any event within five
(5) Business Days after becoming a beneficiary), notify Lender thereof and, promptly (and in any event within twenty (20) Business Days) after request by Lender, enter into a tri-party 

  
 -23- 

 
agreement with Lender and the issuer or confirming bank with respect to letter-of-credit rights assigning such letter-of-credit rights to Lender and directing all payments thereunder to the Collection Account unless otherwise directed by Lender, all in form and substance satisfactory
to Lender. 
 (e)    Commercial Tort Claims. If the Loan Parties (or any of them) obtain Commercial Tort Claims
having a value, or involving an asserted claim, in the amount of $500,000 or more in the aggregate for all Commercial Tort Claims, then the applicable Loan Party or Loan Parties shall promptly (and in any event within two (2) Business Days of
obtaining such Commercial Tort Claim), notify Lender upon incurring or otherwise obtaining such Commercial Tort Claims and, promptly (and in any event within two (2) Business Days) after request by Lender, amend Schedule 5.6(d) to the
Information Certificate to describe such Commercial Tort Claims in a manner that reasonably identifies such Commercial Tort Claims and which is otherwise reasonably satisfactory to Lender, and hereby authorizes the filing of additional financing
statements or amendments to existing financing statements describing such Commercial Tort Claims, and agrees to do such other acts or things deemed necessary or desirable by Lender to give Lender a first priority, perfected security interest in any
such Commercial Tort Claim, which Commercial Tort Claim shall not be subject to any other Liens; 
 (f)    Government
Contracts. Other than Accounts and Chattel Paper the aggregate value of which does not at any one time exceed $2,000,000, if any Account or Chattel Paper of any Loan Party arises out of a contract or contracts with the United States of America
or any State or any department, agency, or instrumentality thereof, Loan Parties shall promptly (and in any event within two (2) Business Days of the creation thereof) notify Lender thereof and, promptly (and in any event within two
(2) Business Days) after request by Lender, execute any instruments or take any steps reasonably required by Lender in order that all moneys due or to become due under such contract or contracts shall be assigned to Lender, for the benefit of
Lender and each Bank Product Provider, and shall provide written notice thereof under the Assignment of Claims Act or other applicable law. 

(g)    Intellectual Property. 

(i)    Upon the request of Lender, in order to facilitate filings with the PTO and the United States Copyright Office,
each Loan Party shall execute and deliver to Lender one or more Copyright Security Agreements or Patent and Trademark Security Agreements to further evidence Lender’s Lien on such Loan Party’s Patents, Trademarks, or Copyrights, and the
General Intangibles of such Loan Party relating thereto or represented thereby; 
 (ii)    Each Loan Party shall have
the duty, with respect to Intellectual Property that is necessary in the conduct of such Loan Party’s business, to protect and diligently enforce and defend at such Loan Party’s expense its Intellectual Property, including using
commercially reasonable efforts to (A) to diligently enforce and defend, including promptly suing for infringement, misappropriation, or dilution and to recover any and all damages for such infringement, misappropriation, or dilution, and
filing for opposition, interference, and cancellation against conflicting Intellectual Property rights of any Person, (B) to prosecute diligently any trademark application or service mark application that is part of the Trademarks

  
 -24- 

 
pending as of the date hereof or hereafter, (C) to prosecute diligently any patent application that is part of the Patents pending as of the date hereof or hereafter, (D) to take all
reasonable and necessary action to preserve and maintain all of such Loan Party’s Trademarks, Patents, Copyrights, Intellectual Property Licenses, and its rights therein, including paying all maintenance fees and filing of applications for
renewal, affidavits of use, and affidavits of noncontestability, and (E) to require all employees, consultants, and contractors of each Loan Party who were involved in the creation or development of such Intellectual Property to sign agreements
containing assignment to such Loan Party of Intellectual Property rights created or developed and obligations of confidentiality. No Loan Party shall abandon any Intellectual Property or Intellectual Property License that is necessary in the conduct
of such Loan Party’s business. Each Loan Party shall take the steps described in this Section 6.12(g)(ii) with respect to all new or acquired Intellectual Property to which it or any of its Subsidiaries is now or later becomes entitled
that is necessary in the conduct of such Loan Party’s or Subsidiary’s business; 
 (iii)    Each Loan Party
acknowledges and agrees that Lender shall have no duties with respect to any Intellectual Property or Intellectual Property Licenses of any Loan Party. Without limiting the generality of this Section 6.12(g)(iii), each Loan Party acknowledges
and agrees that Lender shall not be under any obligation to take any steps necessary to preserve rights in the Collateral consisting of Intellectual Property or Intellectual Property Licenses against any other Person, but Lender may do so at its
option from and after the occurrence and during the continuance of an Event of Default, and all expenses incurred in connection therewith (including reasonable fees and expenses of attorneys and other professionals) shall be for the sole account of
Borrowers and shall be chargeable to the Loan Account; 
 (iv)    Each Loan Party shall promptly file an application
with the United States Copyright Office for any Copyright that has not been registered with the United States Copyright Office if such Copyright is necessary in connection with the conduct of such Loan Party’s business. Any expenses incurred in
connection with the foregoing shall be borne by the Loan Parties; and 
 (v)    No Loan Party shall enter into any
Intellectual Property License to receive any license or rights in any Intellectual Property of any other Person unless such Loan Party has used commercially reasonable efforts to permit the assignment of or grant of a Lien in such Intellectual
Property License (and all rights of such Loan Party thereunder) to Lender (and any transferees of Lender). 

(h)    Investment Related Property. 

(i)    Upon the occurrence and during the continuance of an Event of Default, following the request of Lender, all sums of
money and property paid or distributed in respect of the Investment Related Property that are received by any Loan Party shall be held by such Loan Party in trust for the benefit of Lender segregated from such Loan Party’s other property, and
such Loan Party shall deliver it promptly to Lender in the exact form received; and 
 (ii)    Each Loan Party shall
cooperate with Lender in obtaining all necessary approvals and making all necessary filings under federal, state, local, or foreign law to effect the perfection of the Security Interest on the Investment Related Property or to effect any sale or
transfer thereof. 

  
 -25- 

 (iii)    If any Loan Party shall acquire, obtain, receive or become entitled
to receive any Pledged Interests after the Closing Date, it shall promptly (and in any event within two (2) Business Days of acquiring or obtaining such Collateral) deliver to Lender a duly executed Pledged Interests Addendum identifying such
Pledged Interests; 
 (iv)    Each Loan Party shall promptly deliver to Lender a copy of each material notice or other
material communication received by it in respect of any Pledged Interests; 
 (v)    No Loan Party shall make or
consent to any amendment or other modification or waiver with respect to any Pledged Interests, Pledged Operating Agreement or Pledged Partnership Agreement, or enter into any agreement or permit to exist any restriction with respect to any Pledged
Interests in each case if the same is prohibited pursuant to the Loan Documents; 
 (vi)    As to all limited liability
company or partnership interests, issued under any Pledged Operating Agreement or Pledged Partnership Agreement, each Loan Party hereby covenants that the Pledged Interests issued pursuant to such agreement (A) are not and shall not be dealt in
or traded on securities exchanges or in securities markets, (B) do not and will not constitute investment company securities, and (C) are not and will not be held by such Loan Party in a securities account. In addition, none of the Pledged
Operating Agreements, the Pledged Partnership Agreements, or any other agreements governing any of the Pledged Interests issued under any Pledged Operating Agreement or Pledged Partnership Agreement, provide or shall provide that such Pledged
Interests are securities governed by Section 8 of the Uniform Commercial Code as in effect in any relevant jurisdiction. 

(i)    Controlled Accounts. Each Loan Party shall establish and maintain at Lender all Cash Management Services,
including all deposit accounts (other than the Permitted Petty Cash Account), and to the extent required hereunder or otherwise utilized by Borrowers, lockbox services. Such Cash Management Services maintained by each Loan Party shall be of a type
and on terms reasonably satisfactory to Lender. 
 (j)    Equipment. Promptly, and in any event within five
(5) Business Days of the acquisition of any Eligible Equipment (including Borrowers’ receipt of a clean certificate of title in respect of Eligible Equipment formerly subject to third-party financing) subject to a certificate of title
under applicable law (i.e. any item of rolling stock), the applicable Borrower shall deliver to Lender (or a service or processor designated by Lender from time to time), a certificate of title for each such item of titled Eligible Equipment owned
or acquired by such Borrower together with either (i) a duly completed and signed motor vehicle title application naming Lender as first lien holder with respect to such motor vehicle (subject to Permitted Liens) or (ii) a signed and
notarized power or attorney in appropriate form to permit Lender (or a servicer or processor designated by Lender from time to time) to cause such title certificates to be submitted to the appropriate state motor vehicle filing office for notation
of Lender’s first-priority Lien (subject to Permitted Liens). Borrowers shall take such other and additional actions as may be required to cause Lender’s first-Lien (subject to Permitted Liens) to be duly noted on each certificate of title
evidencing Borrowers’ ownership of Eligible Equipment. 

  
 -26- 

 6.13.    Material Contracts. Contemporaneously with the
delivery of each Compliance Certificate pursuant to Section 6.1, provide Lender with copies of (a) each Material Contract entered into since the delivery of the previous Compliance Certificate, (b) each material
amendment or modification of any Material Contract entered into since the delivery of the previous Compliance Certificate; provided, that public filing of such contracts with the SEC shall satisfy any such delivery requirement. Borrowers shall
maintain all Material Contracts in full force and effect and shall not default in any material respect in the payment or performance of any obligations thereunder. 

6.14.    Location of Inventory, Equipment and Books. Keep the Inventory and Equipment (other than vehicles
and Equipment out for repair) and Books of each Loan Party and each of its Subsidiaries only at the locations identified on Schedule 5.29 to the Information Certificate or on any Job Site and keep the chief executive office of each Loan Party
and each of its Subsidiaries only at the locations identified on Schedule 5.6(b) to the Information Certificate; provided, however, that Borrowers may amend Schedule 5.29 to the Information Certificate so long as such
amendment occurs by written notice to Lender not less than ten (10) days prior to the date on which such Inventory, Equipment or Books are moved to such new location, and, if Lender so requires, so long as, at the time of such written
notification, the applicable Loan Party or Subsidiary provides Lender a Collateral Access Agreement with respect thereto if such location is not owned by such Loan Party. 

6.15.    Further Assurances. 

(a)    At any time upon the reasonable request of Lender, execute or deliver to Lender any and all financing statements,
fixture filings, security agreements, pledges, assignments, endorsements of certificates of title, mortgages, deeds of trust, opinions of counsel, and all other documents (the “Additional Documents”) that Lender may reasonably
request and in form and substance reasonably satisfactory to Lender, to create, perfect, and continue perfection or to better perfect Lender’s Liens in all of the assets of each Loan Party (whether now owned or hereafter arising or acquired,
tangible or intangible, real or personal), and in order to fully consummate all of the transactions contemplated hereby and under the other Loan Documents. To the maximum extent permitted by applicable law, if a Borrower or any other Loan Party
refuses or fails to execute or deliver any reasonably requested Additional Documents within a reasonable period of time, not to exceed thirty (30) days following the request to do so such Borrower and such other Loan Party hereby authorizes
Lender to execute any such Additional Documents in the applicable Loan Party’s name, as applicable, and authorizes Lender to file such executed Additional Documents in any appropriate filing office. In furtherance and not in limitation of the
foregoing, each Loan Party shall take such actions as Lender may reasonably request from time to time to ensure that the Obligations are guaranteed by the Guarantors and are secured by substantially all of the assets of each Loan Party. 

(b)    Each Loan Party authorizes the filing by Lender of financing or continuation statements, or amendments thereto, and
such Loan Party will execute and deliver to Lender such other instruments or notices, as Lender may reasonably request, in order to perfect and preserve the Security Interest granted or purported to be granted hereby. 

  
 -27- 

 (c)    Each Loan Party authorizes Lender at any time and from time to time to
file, transmit, or communicate, as applicable, financing statements and amendments (i) describing the Collateral as “all personal property of debtor” or “all assets of debtor” or words of similar effect, (ii) describing
the Collateral as being of equal or lesser scope or with greater detail, or (iii) that contain any information required by Part 5 of Article 9 of the Code for the sufficiency or filing office acceptance of such financing statement. Each Loan
Party also hereby ratifies any and all financing statements or amendments previously filed by Lender in any jurisdiction. 

(d)    Each Loan Party acknowledges that no Loan Party is authorized to file any financing statement or amendment or
termination statement with respect to any financing statement filed in connection with this Agreement without the prior written consent of Lender, subject to such Loan Party’s rights under Section
9-509(d)(2) of the Code. 
 6.16.    Formation of Subsidiaries. At
the time that any Loan Party forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Closing Date, such Loan Party shall (a) within ten (10) days of such formation or acquisition (or such later date
as permitted by Lender in its sole discretion) cause any such new Subsidiary and Administrative Borrower, on behalf of each Loan Party, to provide to Lender a joinder to this Agreement, together with a supplement to the Information Certificate in
the form of Exhibit E-1 such other security documents, as well as appropriate financing statements, all in form and substance reasonably satisfactory to Lender (including being sufficient to grant
Lender a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary), (b) within ten (10) days of such formation or acquisition (or such later date as permitted by Lender in its sole
discretion) provide to Lender a pledge agreement and appropriate certificates and powers or financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary reasonably satisfactory to Lender, and
(c) within ten (10) days of such formation or acquisition (or such later date as permitted by Lender in its sole discretion) provide to Lender all other documentation, including if requested by Lender one or more opinions of counsel
reasonably satisfactory to Lender, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above. Any document, agreement, or instrument executed or issued pursuant to this
Section 6.16 shall be a Loan Document. 
 6.17.    Post-Closing Covenants. 

(a)    Within 10 days of the Closing Date (or such later date as Lender may agree to in its sole discretion),
Administrative Borrower will deliver to Lender the following items with respect to insurance: (i) Certificates of insurance with respect to liability insurance policies (including products liability insurance), showing Lender as certificate
holder and additional insured, together with additional insured endorsement and notice of cancellation endorsement attached to each certificate, and (ii) certificates of property insurance covering inventory and other personal property, showing
Lender as certificate holder and loss payee, with lender’s loss payable endorsement attached to each certificates. 

  
 -28- 

 (b)    Within 30 days of the Closing Date (or such later date as Lender may
agree to in its sole discretion), Administrative Borrower will deliver to Lender amended limited liability company agreements and limited partner agreements, each in form and substance satisfactory to Lender. 

(c)    Within 30 days of the Closing Date (or such later date as Lender may agree to in its sole discretion),
Administrative Borrower will deliver to Lender Governing Documents for each Loan Party certified by the applicable Loan Party’s Secretary of State, each in form and substance satisfactory to Agent. 

 

	7.	NEGATIVE COVENANTS. 

 Each Borrower and each Loan Party covenants and agrees that, until
termination of all of the commitments of Lender hereunder to provide any further extensions of credit and payment in full of the Obligations, no Borrower and no other Loan Party will do, nor will any Borrower or any other Loan Party permit any of
its Subsidiaries to do any of the following: 
 7.1.    Indebtedness. Create, incur, assume, suffer to
exist, guarantee, or otherwise become or remain, directly or indirectly, liable with respect to any Indebtedness, except for Permitted Indebtedness. 

7.2.    Liens. Create, incur, assume, or suffer to exist, directly or indirectly, any Lien on or with
respect to any of its assets, of any kind, whether now owned or hereafter acquired, or any income or profits therefrom, except for Permitted Liens. 

7.3.    Restrictions on Fundamental Changes. 

(a)    Enter into any merger, consolidation, reorganization, or recapitalization, or reclassify its Stock, except for
(i) any merger between Loan Parties, provided that a Borrower must be the surviving entity of any such merger to which it is a party, and (ii) any merger between Subsidiaries of a Borrower that are not Loan Parties. 

(b)    Liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution), except for (i) the
liquidation or dissolution of non-operating Subsidiaries of any Borrower with nominal assets and nominal liabilities, (ii) the liquidation or dissolution of a Loan Party (other than a Borrower) or any of
its wholly-owned Subsidiaries so long as all of the assets (including any interest in any Stock) of such liquidating or dissolving Loan Party or Subsidiary are transferred to a Loan Party that is not liquidating or dissolving, or (iii) the
liquidation or dissolution of a Subsidiary of a Borrower that is not a Loan Party (other than any such Subsidiary the Stock of which (or any portion thereof) is subject to a Lien in favor of Lender) so long as all of the assets of such liquidating
or dissolving Subsidiary are transferred to a Subsidiary of a Borrower that is not liquidating or dissolving. 

(c)    Suspend or cease operation of a substantial portion of its or their business, except as permitted pursuant to
Sections 7.3(a) or (b) above or in connection with the transactions permitted pursuant to Section 7.4. 

  
 -29- 

 7.4.    Disposal of Assets. Other than Permitted Dispositions
or transactions expressly permitted by Sections 7.3 or 7.12, sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant any option with respect to, any of the Collateral or any other asset except as expressly
permitted by this Agreement. Lender shall not be deemed to have consented to any sale or other disposition of any of the Collateral or any other asset except as expressly permitted in this Agreement or the other Loan Documents. 

7.5.    Change Name. Change the name, organizational identification number, state of organization,
organizational identity or “location” for purposes of Section 9-307 of the Code of any Loan Party or any of its Subsidiaries. 

7.6.    Nature of Business. Make any change in the nature of its or their business as conducted on the date
of this Agreement or acquire any properties or assets that are not reasonably related to the conduct of such business activities; provided, however, that the foregoing shall not prevent any Borrower or any other Loan Party or any of
its Subsidiaries from engaging in any business that is reasonably related or ancillary to its business. 

7.7.    Prepayments and Amendments. 

(a)    Except in connection with Refinancing Indebtedness permitted by Section 7.1, 

(i)    optionally prepay, redeem, defease, purchase, or otherwise acquire any Indebtedness of any Loan Party or any of
its Subsidiaries, other than (A) the Obligations in accordance with this Agreement, and (B) Permitted Intercompany Advances, 

(ii)    make any payment on account of other Indebtedness that has been contractually subordinated in right of payment to
the Obligations if such payment is not permitted at such time under the subordination terms and conditions, or 

(b)    Directly or indirectly, amend, modify, or change any of the terms or provisions of 

(i)    any agreement, instrument, document, indenture, or other writing evidencing or concerning Permitted Indebtedness
other than (A) the Obligations in accordance with this Agreement, (B) Permitted Intercompany Advances, and (C) Indebtedness permitted under clauses (c), (e), (f) and (k) of the definition of Permitted Indebtedness; 

(ii)    any Material Contract except to the extent that such amendment, modification, or change could not, individually
or in the aggregate, reasonably be expected to be materially adverse to the interests of Lender; or 
 (iii)    the
Governing Documents of any Loan Party or any of its Subsidiaries if the effect thereof, either individually or in the aggregate, could reasonably be expected to be materially adverse to the interests of Lender. 

7.8.    Change of Control. Cause, permit, or suffer, directly or indirectly, any Change of Control. 

  
 -30- 

 7.9.    Restricted Junior Payments. Make any Restricted Junior
Payment; provided, however, that, so long as it is permitted by law, and so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom and so long as such Borrower is a
“pass-through” tax entity for United States federal income tax purposes, and after first providing such supporting documentation as Lender may request (including the state and federal tax returns (and all related schedules) of each owner
of Stock in such Borrower, such Borrower may declare and pay Pass-Through Tax Liabilities, net of any prior year loss carry-forwards. 

7.10.    Accounting Methods. Modify or change its fiscal year or its method of accounting (other than as may
be required to conform to GAAP). 
 7.11.    Investments; Controlled Investments. 

(a)    Except for Permitted Investments, directly or indirectly, make or acquire any Investment or incur any liabilities
(including contingent obligations) for or in connection with any Investment. 
 (b)    Other than (i) the Permitted
Petty Cash Account, and (ii) amounts deposited into Deposit Accounts identified on Schedule 5.15 to the Information Certificate which are specially and exclusively used for payroll, payroll taxes and other employee wage and benefit
payments to or for the employees of any Loan Party or its Subsidiaries, make, acquire, or permit to exist Permitted Investments consisting of cash, Cash Equivalents, or amounts credited to Deposit Accounts or Securities Accounts unless such Borrower
and such other Loan Party or its Subsidiaries, as applicable, and the applicable bank (or as permitted solely pursuant to Section 6.12(i) or securities intermediary have entered into Control Agreements with Lender governing such Permitted
Investments in order to perfect (and further establish) Lender’s Liens in such Permitted Investments. Except as provided in Section 6.12(i) and this Sections 7.11(b), Borrowers and such Loan Parties shall not, and shall not permit
their Subsidiaries to, establish or maintain any Deposit Account or Securities Account with a banking institution other than Lender. 

7.12.    Transactions with Affiliates. Directly or indirectly enter into or permit to exist any transaction
with any Affiliate of any Borrower, any other Loan Party or any of their Subsidiaries except for: 
 (a)    transactions
contemplated by the Loan Documents or transactions with any Affiliates of any Borrower or any Loan Party in the ordinary course of business of such Borrower or Loan Party, consistent with past practices and undertaken in good faith, upon fair and
reasonable terms fully disclosed to Lender and no less favorable than would be obtained in a comparable arm’s length transaction with a non-Affiliate; 

(b)    so long as it has been approved by a Loan Party’s board of directors (or comparable governing body) in
accordance with applicable law, any customary indemnities provided for the benefit of directors (or comparable managers) of such Loan Party; 

(c)    so long as it has been approved by a Loan Party’s board of directors (or comparable governing body) in
accordance with applicable law, the payment of reasonable compensation, severance, or employee benefit arrangements to employees, officers, and outside directors of a Loan Party in the ordinary course of business and consistent with industry
practice; and 

  
 -31- 

 (d)    transactions permitted by Section 7.3 or
Section 7.9, or any Permitted Intercompany Advance. 
 (e)    so long as no Default or Event
of Default has occurred and is continuing, IES Commercial may make additional capital contributions to STR Mechanical in an aggregate amount not to exceed $750,000. 

7.13.    Use of Proceeds. Use the proceeds of any loan made hereunder for any purpose other than (a) to
pay fees, costs, and expenses, including Lender Expenses, incurred in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby and thereby, and (b) consistent with the terms and conditions hereof, for
general corporate and working capital purposes for their lawful and permitted purposes (provided that no part of the proceeds of the loans made to Borrowers will be used to purchase or carry any such Margin Stock or to extend credit to others for
the purpose of purchasing or carrying any such Margin Stock or for any purpose that violates the provisions of Regulation T, U or X of the Board of Governors of the Federal Reserve System). 

7.14.    Limitation on Issuance of Stock. Except for the issuance or sale of common stock, Permitted
Preferred Stock by a Borrower or other Loan Party, issue or sell or enter into any agreement or arrangement for the issuance and sale of any of their Stock. 

7.15.    Consignments. Consign any of its Inventory or sell any of its Inventory on bill and hold, sale or
return, sale on approval, or other conditional terms of sale, except as set forth on Schedule 7.15 to the Information Certificate. 

7.16.    Inventory and Equipment with Bailees. Store the Inventory or Equipment of any Loan
Party or any of its Subsidiaries at any time now or hereafter with a bailee, warehouseman, or similar party, except as set forth on Schedule 7.16 to the Information Certificate (as such Schedule may be updated from time to time to reflect
changes resulting from transactions permitted under this Agreement). 
 7.17.    Use of Proceeds in Connection
with Bonded Contracts. Use proceeds of the Loans in connection with funding work related to the Bonded Contracts unless such use is upon terms, provisions and conditions acceptable to Lender, in its good faith discretion (such as, without
limitation, Lender being satisfied with its Lien priority and right to proceeds relating to Borrowers’ assets and restrictions on when payments may be made by Borrowers in connection with Bonded Contracts); provided, however,
except as otherwise provided in the Federal Insurance Company and Liberty Mutual Intercreditor and the Chartis Intercreditor, the Everest Intercreditor, or any intercreditor agreement entered into after the Third Amendment Closing Date in form and
substance satisfactory to Lender, Lender agrees that the foregoing shall not be construed to prevent any ability of Federal Insurance Company, Liberty Mutual, Chartis, Everest, or any other Surety (so long as such Surety has entered into an
intercreditor agreement with lender in form and substance satisfactory to Lender), as applicable, to receive payment out of any 

  
 -32- 

 
assets of any Borrower in which Federal Insurance Company, Liberty Mutual, Chartis Everest, or such other Surety has a first priority Lien in a circumstance where Federal Insurance Company,
Liberty Mutual, Chartis, Everest, or such other Surety has made a payment on a Surety Bond and Federal Insurance Company, Liberty Mutual, Chartis, Everest, or such other Surety is seeking reimbursement for such payment from such Borrower. 

7.18.    Surety Bonds. Request the issuance of a Surety Bond from any Surety after the Closing Date without
(i) providing prior written notice thereof to Lender in accordance with Section 6.11(a)(vi) and (ii) (A) if no Event of Default has occurred and is continuing, obtaining the prior written consent of Lender to the issuance of such
Surety Bond if such Surety Bond would cause any Account included in the Borrowing Base to become a Bonded Account upon the issuance of such Surety Bond, which such consent shall be in Lender’s sole discretion or (B) if an Event of Default
has occurred and is continuing, obtaining the prior written consent of Lender to the issuance of such Surety Bond, which such consent shall be in Lender’s sole discretion. 

 

	8.	FINANCIAL COVENANTS. 

 Each Borrower covenants and agrees that, until termination of all
obligations of Lender to provide extensions of credit hereunder and payment in full of the Obligations, Borrowers will comply with each of the following financial covenants: 

(a)    Fixed Charge Coverage Ratio. Borrowers shall maintain a Fixed Charge Coverage Ratio, measured quarterly on a
trailing four-quarter basis at the end of each quarter, of at least 1.1 to 1.0. 
 (b)    Minimum Liquidity.
Borrowers shall, at all times, maintain a minimum Liquidity of at least thirty percent (30%) of the Maximum Revolver Amount; provided, that, for purposes of compliance with this clause (b), at least fifty percent (50%) of Borrowers’
Liquidity shall be comprised of Excess Availability. 
 (c)    Minimum EBITDA. Borrower shall achieve EBITDA,
measured at the end of each quarter, of at least the required amount set forth in the following table for the applicable period set forth opposite thereto: 
  

					
	 Applicable Amount
	 	  	 Applicable Period

	$	30,000,000	 	  	For each four quarter period ending March 31, 2017, June 30, 2017, and September 30, 2017
	$	32,500,000	 	  	For the four quarter period ending December 31, 2017
	$	35,000,000	 	  	For each four quarter period ending March 31, 2018 and each quarter-end thereafter

  
 -33- 

	9.	EVENTS OF DEFAULT. 

 Any one or more of the following events shall constitute an event of
default (each, an “Event of Default”) under this Agreement: 
 9.1.    If any Borrower fails to pay
when due and payable, or when declared due and payable, all or any portion of the Obligations consisting of principal, interest, fees, charges or other amounts due Lender or any Bank Product Provider, reimbursement of Lender Expenses, or other
amounts constituting Obligations (including any portion thereof that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding); 

9.2.    If any Loan Party or any of its Subsidiaries: 

(a)    fails to perform or observe any covenant or other agreement contained in any of (i) Sections 4.3,
6.1, 6.2, 6.3 (solely if any Loan Party or any of its Subsidiaries is not in good standing in its jurisdiction of organization), 6.5(a) (solely with respect to F.I.C.A., F.U.T.A., federal income taxes and any other taxes
or assessments the non-payment of which may result in a Lien having priority over Lender’s Liens), 6.5(b), 6.6, 6.7 (solely if any Loan Party or any of its Subsidiaries refuses to
allow Lender or its representatives or agents to visit its properties, inspect its assets or books or records, examine and make copies of its books and records, or discuss its affairs, finances, and accounts with its officers and employees),
6.8, 6.11, 6.12, 6.13, 6.14 or 6.17 (ii) Section 7 or (iii) Section 8; 

(b)    fails to perform or observe any covenant or other agreement contained in any of Sections 6.3 (other than if
a Loan Party is not in good standing in its jurisdiction of organization), 6.4, 6.5(a) (other than F.I.C.A., F.U.T.A., federal income taxes and any other taxes or assessments the non-payment of
which may result in a Lien having priority over Lender’s Liens), 6.7 (other than if any Loan Party or any of its Subsidiaries refuses to allow Lender or its representatives or agents to visit its properties, inspect its assets or books
or records, examine and make copies of its books or records or disclose it affairs, finances and accounts with its officers and employees), 6.9, 6.10, and 6.15 and such failure continues for a period of twenty (20) days
after the earlier of (i) the date on which such failure shall first become known to or should have been known by any officer of any Loan Party or (ii) the date on which written notice thereof is given to any Loan Party by Lender; or 

(c)    fails to perform or observe any covenant or other agreement contained in this Agreement, or in any of the other
Loan Documents, in each case, other than any such covenant or agreement that is unable to be cured or is the subject of another provision of this Section 9 (in which event such other provision of this
Section 9 shall govern), and such failure continues for a period of thirty (30) days after the earlier of (i) the date on which such failure shall first become known to or should have been known by any officer of
any Loan Party or (ii) the date on which written notice thereof is given to any Loan Party by Lender; 
 9.3.    If
one or more judgments, orders, or awards for the payment of money in an amount in excess of $500,000 in any one case or in excess of $1,500,000 in the aggregate, 

  
 -34- 

 
(except to the extent fully covered (other than to the extent of customary deductibles) by insurance pursuant to which the insurer has not denied coverage) is entered or filed against a Loan
Party or any of its Subsidiaries or with respect to any of their respective assets, and either (a) there is a period of thirty (30) consecutive days at any time after the entry of any such judgment, order, or award during which
(1) the same is not discharged, satisfied, vacated, or bonded pending appeal, or (2) a stay of enforcement thereof is not in effect, or (b) enforcement proceedings are commenced upon such judgment, order, or award; 

9.4.    If an Insolvency Proceeding is commenced by a Loan Party or any of its Subsidiaries; 

9.5.    If an Insolvency Proceeding is commenced against a Loan Party or any of its Subsidiaries and any of the following
events occur: (a) such Loan Party or such Subsidiary consents to the institution of such Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted, (c) the petition commencing
the Insolvency Proceeding is not dismissed within sixty (60) calendar days of the date of the filing thereof, (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets of, or to
operate all or any substantial portion of the business of, such Loan Party or its Subsidiary, or (e) an order for relief shall have been issued or entered therein; provided that Lender shall have no obligation to provide any extension of
credit to Borrowers during such 60 calendar day period specified in subsection (c); 
 9.6.    If any Loan Party is
enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of the business affairs of such Loan Party and its Subsidiaries, taken as a whole; 

9.7.    If there is (a) a default in one or more agreements to which a Loan Party is a party with one or more third
Persons relative to the Indebtedness of such Loan Party or such Subsidiary involving an aggregate amount of $250,000 or more, and such default (i) occurs at the final maturity of the obligations thereunder, or (ii) results in a right by
such third Person, irrespective of whether exercised, to accelerate the maturity of such Loan Party’s or its Subsidiary’s obligations thereunder, or (b) a default in or an involuntary early termination of one or more Hedge Agreements
to which a Loan Party or any of its Subsidiaries is a party involving an aggregate amount of $250,000 or more; 

9.8.    If any warranty, representation, certificate, statement, or Record made herein or in any other Loan Document or
delivered in writing to Lender in connection with this Agreement or any other Loan Document proves to be untrue in any material respect (except that such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof) as of the date of issuance or making or deemed making thereof; 

9.9.    If the obligation of any Guarantor under its Guaranty or any other Loan Document to which any Guarantor is a party
is limited or terminated by operation of law or by such Guarantor (other than in accordance with the terms of this Agreement), or if any Guarantor fails to perform any obligation under its Guaranty or under any such Loan Document, or repudiates or
revokes or purports to repudiate or revoke any obligation under its Guaranty, or under any such Loan Document, or any Guarantor ceases to exist for any reason; 

  
 -35- 

 9.10.    If this Agreement or any other Loan Document that purports to create
a Lien, shall, for any reason, fail or cease to create a valid and perfected and, except to the extent of Permitted Liens which are permitted purchase money Liens, tax Liens subject to a Permitted Protest or the interests of lessors under Capital
Leases, first priority Lien on the Collateral covered thereby, except in each case, (a) as a result of a disposition of the applicable Collateral in a transaction permitted under this Agreement, or (b) with respect to Collateral the
aggregate value of which, for all such Collateral, does not exceed at any time, $1,500,000; 
 9.11.    If any Material
Adverse Change occurs; 
 9.12.    If any event or circumstance shall occur which, in the Permitted Discretion of Lender
exercised in good faith, would be reasonably likely to cause Lender to suspect that any Loan Party has engaged in fraudulent activity with respect to the Collateral or other material matters; 

9.13.    Any director, officer, or owner of at least twenty percent (20%) of the issued and outstanding ownership
interests of a Loan Party is indicted for a felony offense under state or federal law, or, without performing commercially reasonable due diligence and/or background checks, a Loan Party knowingly hires an officer or appoints a director who has been
convicted of any such felony offense, or a Person becomes an owner of at least twenty percent (20%) of the issued and outstanding ownership interests of a Loan Party who has been convicted of any such felony offense; 

9.14.    If any Loan Party (a) fails to pay any indebtedness or obligation owed to Lender or its Affiliates which is
unrelated to the Credit Facility or this Agreement as it becomes due and payable (other than indebtedness or obligations involving an aggregate amount of $100,000 unless such failure continues for a period of thirty (30) days), or (b) the
occurrence of any default or event of default under any agreement between any Loan Party and Lender or its Affiliates unrelated to the Loan Documents (other than agreements involving an aggregate amount less than $100,000, unless such default or
event of default continues for a period of thirty (30) days); 
 9.15.    The validity or enforceability of any
Loan Document shall at any time for any reason be declared to be null and void, or a proceeding shall be commenced by a Loan Party or any of its Subsidiaries, or by any Governmental Authority having jurisdiction over a Loan Party or any of its
Subsidiaries, seeking to establish the invalidity or unenforceability thereof, or a Loan Party or any of its Subsidiaries shall deny that such Loan Party or such Subsidiary has any liability or obligation purported to be created under any Loan
Document; 
 9.16.    If there shall occur any default or event of default under any of the agreements or documentation
among any Surety and any Loan Parties relating to such Surety’s bonding program with such Loan Parties, and, as a result thereof, such Surety has ceased issuing Surety Bonds on behalf of any Loan Party (other than a temporary cessation not
arising from a violation or termination of the applicable Surety Bond documentation; provided that other Sureties are 

  
 -36- 

 
then issuing requested Surety Bonds on behalf of such Loan Party) and such Surety has not been replaced within thirty (30) days, or has made demand on any Loan Party for performance
thereunder or has otherwise commenced exercising any remedies thereunder (including, without limitation, attempting to segregate funds as to its Surety Collateral), or any unreimbursed claim is made on such Surety related to any Bonded Contract
against the issuer of any Surety Bond; or 
 9.17.    If there shall occur any default or event of default under
(a) the agreements entered into in connection with any Permitted Insurance Premium Financing Indebtedness, or (b) the Subordinated Debt Documentation. 
  

	10.	RIGHTS AND REMEDIES. 

 10.1.    Rights and Remedies.
Upon the occurrence and during the continuation of an Event of Default, Lender may, in addition to any other rights or remedies provided for hereunder or under any other Loan Document or by applicable law, do any one or more of the following: 

(a)    declare the Obligations (other than the Hedge Obligations, which may be accelerated in accordance with the terms of
the applicable Hedge Agreement), whether evidenced by this Agreement or by any of the other Loan Documents immediately due and payable, whereupon the same shall become and be immediately due and payable and Borrowers shall be obligated to repay all
of such Obligations in full, without presentment, demand, protest, or further notice or other requirements of any kind, all of which are hereby expressly waived by each Borrower and each other Loan Party; 

(b)    declare the funding obligations of Lender under this Agreement terminated, whereupon such funding obligations shall
immediately be terminated together with any obligation of Lender hereunder to make Advances, extend any other credit hereunder or issue Letters of Credit; 

(c)    give notice to an Account Debtor or other Person obligated to pay an Account, a General Intangible, Negotiable
Collateral, or other amount due, notice that the Account, General Intangible, Negotiable Collateral or other amount due has been assigned to Lender for security and must be paid directly to Lender and Lender may collect the Accounts, General
Intangible and Negotiable Collateral of each Borrower and each other Loan Party directly, and any collection costs and expenses shall constitute part of the Obligations under the Loan Documents; 

(d)    in Lender’s name or in each Loan Party’s name, as such Loan Party’s agent and attorney-in-fact, notify the United States Postal Service to change the address for delivery of mail to any address designated by Lender, otherwise intercept mail, and
receive, open and dispose of such Loan Party’s mail, applying all Collateral as permitted under this Agreement and holding all other mail for such Loan Party’s account or forwarding such mail to such Loan Party’s last known address;

 (e)    without notice to or consent from any Loan Party or any of its Subsidiaries, and without any obligation to pay
rent or other compensation, take exclusive possession of all locations where any Loan Party or any of its Subsidiaries conduct its business 

  
 -37- 

 
or has any rights of possession and use the locations to store, process, manufacture, sell, use, and liquidate or otherwise dispose of items that are Collateral, and for any other incidental
purposes deemed appropriate by Lender in good faith; and 
 (f)    exercise in respect of the Collateral, in addition to
other rights and remedies provided for herein, in the other Loan Documents, or otherwise available to it, all the rights and remedies of a secured party on default under the Code or any other applicable law. 

10.2.    Additional Rights and Remedies. Without limiting the generality of the foregoing, each Borrower
expressly agrees that upon the occurrence and during the continuation of an Event of Default: 
 (a)    Lender, without
demand of performance or other demand, advertisement or notice of any kind (except a notice specified below of time and place of public or private sale) to or upon any Borrower, any other Loan Party or any other Person (all and each of which
demands, advertisements and notices are hereby expressly waived to the maximum extent permitted by the Code or any other applicable law), may take immediate possession of all or any portion of the Collateral and (i) require Loan Parties to, and
each Borrower and each other Loan Party hereby agrees that it will at its own expense and upon request of Lender forthwith, assemble all or part of the Collateral as directed by Lender and make it available to Lender at one or more locations
designated by Lender where such Borrower or other Loan Party conducts business, and (ii) without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of Lender’s
or Loan Party’s offices or elsewhere, for cash, on credit, and upon such other terms as Lender may deem commercially reasonable. Each Borrower and each other Loan Party agrees that, to the extent notice of sale shall be required by law, at
least ten (10) days’ notice to such Borrower or such other Loan Party of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification and such notice shall constitute
a reasonable “authenticated notification of disposition” within the meaning of Section 9-611 of the Code. Lender shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given. Lender may adjourn any public or private sale from time to time, and such sale may be made at the time and place to which it was so adjourned. Each Borrower and each other Loan Party agrees that the internet shall constitute
a “place” for purposes of Section 9-610(b) of the Code. Each Borrower and each other Loan Party agrees that any sale of Collateral to a licensor pursuant to the terms of a license agreement between
such licensor and such Borrower or such other Loan Party is sufficient to constitute a commercially reasonable sale (including as to method, terms, manner, and time) within the meaning of Section 9-610 of
the Code; 
 (b)    Lender may, in addition to other rights and remedies provided for herein, in the other Loan
Documents, or otherwise available to it under applicable law and without the requirement of notice to or upon any Loan Party or any other Person (which notice is hereby expressly waived to the maximum extent permitted by the Code or any other
applicable law), (i) with respect to any Loan Party’s Deposit Accounts in which Lender’s Liens are perfected by control under Section 9-104 of the Code, instruct the bank maintaining such
Deposit Account for the applicable Loan Party to pay the balance of such Deposit Account to or for the benefit of Lender, and (ii) with respect to any Loan Party’s Securities Accounts in which Lender’s Liens are perfected by control
under Section 9-106 of the Code, instruct the securities intermediary 

  
 -38- 

 
maintaining such Securities Account for the applicable Loan Party to (A) transfer any cash in such Securities Account to or for the benefit of Lender, or (B) liquidate any financial
assets in such Securities Account that are customarily sold on a recognized market and transfer the cash proceeds thereof to or for the benefit of Lender; 

(c)    any cash held by Lender as Collateral and all cash proceeds received by Lender in respect of any sale of,
collection from, or other realization upon all or any part of the Collateral shall be applied against the Obligations in the order set forth in Section 10.5. In the event the proceeds of Collateral are insufficient to
satisfy all of the Obligations in full, each Borrower and each other Loan Party shall remain jointly and severally liable for any such deficiency; and 

(d)    the Obligations arise out of a commercial transaction, and that if an Event of Default shall occur, Lender shall
have the right to an immediate writ of possession without notice of a hearing. Lender shall have the right to the appointment of a receiver for each Loan Party or for the properties and assets of each Loan Party, and each Borrower and each other
Loan Party hereby consents to such rights and such appointment and hereby waives any objection such Borrower or such Loan Party may have thereto or the right to have a bond or other security posted by Lender. 

Notwithstanding the foregoing or anything to the contrary contained in Section 10.1, upon the occurrence of any Default or Event of
Default described in Section 9.4 or Section 9.5, in addition to the remedies set forth above, without any notice to any Borrower or any other Person or any act by Lender, all obligations of Lender
to provide any further extensions of credit hereunder shall automatically terminate and the Obligations (other than the Hedge Obligations), shall automatically and immediately become due and payable and each Borrower shall be obligated to repay all
of such Obligations in full, without presentment, demand, protest, or notice of any kind, all of which are expressly waived by each Borrower. 

10.3.    Disposition of Pledged Interests by Lender. None of the Pledged Interests existing as of the date
of this Agreement are, and none of the Pledged Interests hereafter acquired on the date of acquisition thereof will be, registered or qualified under the various federal or state securities laws of the United States and disposition thereof after an
Event of Default may be restricted to one or more private (instead of public) sales in view of the lack of such registration. Each Loan Party understands that in connection with such disposition, Lender may approach only a restricted number of
potential purchasers and further understands that a sale under such circumstances may yield a lower price for the Pledged Interests than if the Pledged Interests were registered and qualified pursuant to federal and state securities laws and sold on
the open market. Each Loan Party, therefore, agrees that: (a) if Lender shall, pursuant to the terms of this Agreement, sell or cause the Pledged Interests or any portion thereof to be sold at a private sale, Lender shall have the right to rely
upon the advice and opinion of any nationally recognized brokerage or investment firm (but shall not be obligated to seek such advice and the failure to do so shall not be considered in determining the commercial reasonableness of such action) as to
the best manner in which to offer the Pledged Interest or any portion thereof for sale and as to the best price reasonably obtainable at the private sale thereof; and (b) such reliance shall be conclusive evidence that Lender has handled the
disposition in a commercially reasonable manner. 

  
 -39- 

 10.4.    Voting and Other Rights in Respect of Pledged
Interests. 
 (a)    Upon the occurrence and during the continuation of an Event of Default, (i) Lender may,
at its option, and with two (2) Business Days prior notice to such Borrower or such other Loan Party, and in addition to all rights and remedies available to Lender under any other agreement, at law, in equity, or otherwise, exercise all voting
rights, or any other ownership or consensual rights (including any dividend or distribution rights) in respect of the Pledged Interests owned by any Borrower or any other Loan Party, but under no circumstances is Lender obligated by the terms of
this Agreement to exercise such rights, and (ii) if Lender duly exercises its right to vote any of such Pledged Interests, each Borrower and each other Loan Party hereby appoints Lender, such Borrower’s and such Loan Party’s true and
lawful attorney-in-fact and IRREVOCABLE PROXY to vote such Pledged Interests in any manner Lender deems advisable for or against all matters submitted or which may be
submitted to a vote of shareholders, partners or members, as the case may be. The power-of-attorney and proxy granted hereby is coupled with an interest and shall be
irrevocable. 
 (b)    For so long as such Borrower or such other Loan Party shall have the right to vote the Pledged
Interests owned by it, such Borrower and such other Loan Party covenants and agrees that it will not, without the prior written consent of Lender, vote or take any consensual action with respect to such Pledged Interests which would materially
adversely affect the rights of Lender or the value of the Pledged Interests. 
 10.5.    Lender Appointed Attorney
in Fact. Each Borrower and each other Loan Party hereby irrevocably appoints Lender its attorney-in-fact, with full authority in the place and stead of such
Borrower and such Loan Party and in the name of such Borrower or such Loan Party or otherwise, at such time as an Event of Default has occurred and is continuing, to take any action and to execute any instrument which Lender may reasonably deem
necessary or advisable to accomplish the purposes of this Agreement, including: 
 (a)    to ask, demand, collect, sue
for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in connection with the Accounts or any other Collateral of such Borrower or such other Loan Party; 

(b)    to receive, indorse, and collect any drafts or other instruments, documents, Negotiable Collateral or Chattel
Paper; 
 (c)    to file any claims or take any action or institute any proceedings which Lender may deem necessary or
desirable for the collection of any of the Collateral of such Borrower or such other Loan Party or otherwise to enforce the rights of Lender with respect to any of the Collateral; 

(d)    to repair, alter, or supply Goods, if any, necessary to fulfill in whole or in part the purchase order of any
Person obligated to Borrower or such other Loan Party in respect of any Account of such Borrower or such other Loan Party; 

(e)    to use any Intellectual Property or Intellectual Property Licenses of such Borrower or such other Loan Party
including but not limited to any labels, Patents, Trademarks, trade names, URLs, domain names, industrial designs, Copyrights, or advertising matter, in preparing for sale, advertising for sale, or selling Inventory or other Collateral and to
collect any amounts due under Accounts, contracts or Negotiable Collateral of such Borrower or such other Loan Party; 

  
 -40- 

 (f)    to take exclusive possession of all locations where each Borrower or
other Loan Party conducts its business or has rights of possession, without notice to or consent of any Borrower or any Loan Party and to use such locations to store, process, manufacture, sell, use, and liquidate or otherwise dispose of items that
are Collateral, without obligation to pay rent or other compensation for the possession or use of any location; 

(g)    Lender shall have the right, but shall not be obligated, to bring suit in its own name or in the applicable Loan
Party’s name, to enforce the Intellectual Property and Intellectual Property Licenses and, if Lender shall commence any such suit, the appropriate Borrower or such other Loan Party shall, at the request of Lender, do any and all lawful acts and
execute any and all proper documents reasonably required by Lender in aid of such enforcement; and 
 (h)    to the
extent permitted by law, such Borrower and each other Loan Party hereby ratifies all that such attorney-in-fact shall lawfully do or cause to be done by virtue hereof.
This power of attorney is coupled with an interest and shall be irrevocable until all commitments of Lender under this Agreement to provide extensions of credit are terminated and all Obligations have been paid in full in cash. 

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

10.7.    Crediting of Payments and Proceeds. In the event that the Obligations (other than the Hedge
Obligations, which may be accelerated in accordance with the terms of the applicable Hedge Agreement) have been accelerated pursuant to Section 10.1 or the Lender has exercised any remedy set forth in this Agreement or any
other Loan Document, all payments received by Lender upon the Obligations and all net proceeds from the enforcement of the Obligations shall be applied in such manner as Lender shall determine in its discretion and, thereafter, to Borrowers (to be
wired to the Designated Account) or such other Person entitled thereto under applicable law. 

10.8.    Marshaling. Lender shall not be required to marshal any present or future collateral security
(including but not limited to the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of its rights and remedies
under this Agreement and under the other Loan Documents and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or arising. To the extent that
it lawfully may, each Borrower and each other Loan Party hereby agrees that it will not invoke any law relating to the marshaling of collateral 

  
 -41- 

 
which might cause delay in or impede the enforcement of Lender’s rights and remedies under this Agreement or under any other Loan Document or instrument creating or evidencing any of the
Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, each Borrower hereby irrevocably waives the benefits of
all such laws. 
 10.9.    License. Each Loan Party hereby grants to Lender a non-exclusive, worldwide and royalty-free license to use or otherwise exploit all Intellectual Property rights of such Loan Party for the purpose of: (a) completing the manufacture of any in-process materials following any Event of Default so that such materials become saleable Inventory, all in accordance with the same quality standards previously adopted by such Borrower for its own manufacturing;
and (b) selling, leasing or otherwise disposing of any or all Collateral following any Event of Default. 
  

	11.	WAIVERS; INDEMNIFICATION. 

 11.1.    Demand; Protest;
etc. Each Borrower and each other Loan Party waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of
documents, instruments, chattel paper, and guarantees at any time held by Lender on which such Borrower or such other Loan Party may in any way be liable. 

11.2.    The Lender’s Liability for Collateral. Each Borrower and each other Loan Party hereby agrees
that: (a) so long as Lender complies with its obligations, if any, under the Code, Lender shall not in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral, (ii) any loss or damage thereto occurring or
arising in any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or
destruction of the Collateral shall be borne by each Borrower and such other Loan Parties. 

11.3.    Indemnification. Each Borrower and each other Loan Party shall pay, indemnify, defend, and hold the
Lender-Related Persons (each, an “Indemnified Person”) harmless (to the fullest extent permitted by applicable law) from and against any and all claims, demands, suits, actions, investigations, proceedings, liabilities, fines,
costs, penalties, and damages, and all reasonable fees and disbursements of attorneys, experts, or consultants and all other costs and expenses actually incurred in connection therewith or in connection with the enforcement of this indemnification
(as and when they are incurred and irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of them (a) in connection with or as a result of or related to the execution and delivery, enforcement,
performance, or administration (including any restructuring, forbearance or workout with respect hereto) of this Agreement, any of the other Loan Documents, or the transactions contemplated hereby or thereby or the monitoring of compliance by each
Borrower and each other Loan Party and each of its Subsidiaries with the terms of the Loan Documents, (b) with respect to any investigation, litigation, or proceeding related to this Agreement, any other Loan Document, or the use of the
proceeds of the credit provided hereunder (irrespective of whether any Indemnified Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto, (c) in connection with the custody, preservation, use or
operation of, or, upon an Event 

  
 -42- 

 
of Default, the sale of, collection from, or other realization upon, any of the Collateral in accordance with this Agreement and the other Loan Documents, (d) with respect to the failure by
any Borrower or any other Loan Party to perform or observe any of the provisions hereof or any other Loan Document, (e) in connection with the exercise or enforcement of any of the rights of Lender hereunder or under any other Loan Document,
and (f) in connection with or arising out of any presence or release of Hazardous Materials at, on, under, to or from any assets or properties owned, leased or operated by any Borrower or any other Loan Party or any Subsidiary of a Borrower or
any other Loan Party or any Environmental Actions, Environmental Liabilities or Remedial Actions related in any way to any such assets or properties of such Loan Party or any of its Subsidiaries (each and all of the foregoing, the
“Indemnified Liabilities”). The foregoing to the contrary notwithstanding, no Borrower or any other Loan Party shall have any obligation to any Indemnified Person under this Section 11.3 with respect to any
Indemnified Liability that (i) a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such Indemnified Person or its officers, directors, employees, or attorneys or
(ii) arises solely from disputes between or among Indemnified Persons. This provision shall survive the termination of this Agreement and the repayment of the Obligations. If any Indemnified Person makes any payment to any other Indemnified
Person with respect to an Indemnified Liability as to which a Borrower or any other Loan Party was required to indemnify the Indemnified Person receiving such payment, the Indemnified Person making such payment is entitled to be indemnified and
reimbursed by such Borrower or such other Loan Party with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE
OUT OF ANY STRICT LIABILITY OR NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON. 
  

	12.	NOTICES. 

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

			
	If to any Loan Party:	  	 c/o IES Holdings, Inc.
 5433 Westheimer,
Suite 500
 Houston, TX 77056
 Attn: Tracy McLauchlin and Gail
Makode
 Fax No. (713) 860-1599

Email: tracy.mclauchlin@ies-co.com

gail.makode@ies-co.com

  
 -43- 

			
	 with courtesy copies to
 (which shall not
constitute
 Notice for purposes of this
 Section
12):
	  	 Dinsmore & Shohl LLP
 255 East Fifth
Street, Suite 1900
 Cincinnati, Ohio 45202
 Attn: Mary Newman,
Esq.
 Fax No.: (513) 977-8141

Email: mary.newman@dinsmore.com

		
	If to Lender:	  	 MAC S4101-158

100 W Washington St
 15th Floor

Phoenix, AZ
 85003-1808

Attn: Howard I. Handman
 Fax No.:
(602)378-6215
 Email: howard.i.handman@wellsfargo.com

		
	 with courtesy copies to
 (which shall not
constitute
 Notice for purposes of this
 Section
12)
	  	 Goldberg Kohn Ltd.
 55 East Monroe, Suite
3300
 Chicago, Illinois 60603
 Attn: William Starshak, Esq.

Fax No. (312) 863-7426

Email: William.Starshak@goldbergkohn.com

 Any party hereto may change the address at which it is to receive notices hereunder, by notice in writing in
the foregoing manner given to the other parties. All notices or demands sent in accordance with this Section 12 shall be deemed received on the earlier of the date of actual receipt or three (3) Business Days after the
deposit thereof in the mail; provided, that (a) notices sent by overnight courier service shall be deemed to have been given when received, (b) notices by facsimile shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient) and (c) notices by electronic mail shall be deemed received upon the sender’s
receipt of an acknowledgment from the intended recipient (such as by the “return receipt requested” function, as available, return email or other written acknowledgment). Any notice given by Lender to any Borrower as provided in this
Section 12 shall be deemed sufficient notice as to all Loan Parties, regardless of whether each Loan Party is sent a separate copy of such notice or whether each Loan Party is specifically identified in such notice. 

 

	13.	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. 

 (a)    THE VALIDITY OF
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE
PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR 

  
 -44- 

 
THERETO AS WELL AS ALL CLAIMS, CONTROVERSIES OR DISPUTES ARISING UNDER OR RELATED TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF. 
 (b)    THE
PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS MAY BE TRIED AND LITIGATED IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE CITY OF DALLAS
AND THE COUNTY OF DALLAS, STATE OF TEXAS; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT LENDER’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE LENDER ELECTS TO
BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH LOAN PARTY AND LENDER WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE
TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 13(b). 
 (c)    TO THE MAXIMUM EXTENT
PERMITTED BY APPLICABLE LAW, EACH LOAN PARTY AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS, IF ANY, TO A JURY TRIAL OF ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS
OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS (EACH, A “CLAIM”). EACH LOAN PARTY AND LENDER REPRESENT THAT EACH HAS
REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 

(d)    NO CLAIM MAY BE MADE BY ANY LOAN PARTY AGAINST THE LENDER, OR ANY AFFILIATE OF LENDER OR ANY DIRECTOR, OFFICER,
EMPLOYEE, COUNSEL, REPRESENTATIVE, AGENT, OR ATTORNEY-IN-FACT OF ANY OF THEM FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, OR PUNITIVE DAMAGES IN RESPECT OF ANY CLAIM FOR
BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY ARISING OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY ACT, OMISSION, OR EVENT OCCURRING IN CONNECTION THEREWITH, AND EACH LOAN PARTY HEREBY
WAIVES, RELEASES, AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR. 

  
 -45- 

	14.	ASSIGNMENTS; SUCCESSORS 

 This Agreement shall bind and inure to the benefit of the
respective successors and assigns of each of the parties; provided, however, that no Borrower or any other Loan Party may assign this Agreement or any rights or duties hereunder without Lender’s prior written consent and any
prohibited assignment shall be absolutely void ab initio. No consent to assignment by the Lender shall release any Borrower or any other Loan Party from its Obligations. Lender may assign this Agreement and the other Loan Documents in
whole or in part and its rights and duties hereunder or grant participations in the Obligations hereunder and thereunder and no consent or approval by any Borrower or any other Loan Party is required in connection with any such assignment or
participation. 
  

	15.	AMENDMENTS; WAIVERS 

 No amendment or modification of this Agreement or any other Loan
Document or any other document or agreement described in or related to this Agreement shall be effective unless it has been agreed to by Lender and Administrative Borrower (on behalf of itself and each other applicable Loan Party) in a writing that
specifically states that it is intended to amend or modify specific Loan Documents, or any other document or agreement described in or related to this Agreement. No failure by Lender to exercise any right, remedy, or option under this Agreement or
any other Loan Document, or delay by Lender in exercising the same, will operate as a waiver thereof. No waiver by Lender will be effective unless it is in writing, and then only to the extent specifically stated. No waiver by Lender on any occasion
shall affect or diminish Lender’s rights thereafter to require strict performance by Borrowers or any other Loan Party of any provision of this Agreement. Lender’s rights under this Agreement and the other Loan Documents will be cumulative
and not exclusive of any other right or remedy that Lender may have. 
  

	16.	TAXES. 

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

(b)    Each Borrower agrees to pay any present or future stamp, value added or documentary taxes or any other excise or
property taxes, charges, or similar levies that arise from any payment made hereunder or from the execution, delivery, performance, recordation, or filing of, or otherwise with respect to this Agreement or any other Loan Document. 

  
 -46- 

	17.	GENERAL PROVISIONS. 

 17.1.    Effectiveness. This
Agreement shall be binding and deemed effective when executed by each Borrower, each other Loan Party and Lender. 

17.2.    Section Headings. Headings and numbers have been set forth herein for convenience only. Unless the
contrary is compelled by the context, everything contained in each Section applies equally to this entire Agreement. 

17.3.    Interpretation. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed
against the Lender or any Loan Party, whether under any rule of construction or otherwise. On the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so
as to accomplish fairly the purposes and intentions of all parties hereto. 
 17.4.    Severability of
Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 

17.5.    Debtor-Creditor Relationship. The relationship between the Lender, on the one hand, and the Loan
Parties, on the other hand, is solely that of creditor and debtor. Lender shall not have (and shall not be deemed to have) any fiduciary relationship or duty to any Loan Party arising out of or in connection with the Loan Documents or the
transactions contemplated thereby, and there is no agency or joint venture relationship between Lender, on the one hand, and the Loan Parties, on the other hand, by virtue of any Loan Document or any transaction contemplated therein. 

17.6.    Counterparts; Electronic Execution. This Agreement may be executed in any number of counterparts
and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. Delivery of an executed
counterpart of this Agreement by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement
by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding
effect of this Agreement. 
 17.7.    Revival and Reinstatement of Obligations. If the incurrence or
payment of the Obligations by any Borrower or any other Loan Party or the transfer to Lender of any property should for any reason subsequently be asserted, or declared, to be void or voidable under any state or federal law relating to
creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent conveyances, preferences, or other voidable or recoverable payments of money or transfers of property (each, a “Voidable Transfer”), and if
Lender is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the 

  
 -47- 

 
reasonable advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that Lender is required or elects to repay or restore, and as to all reasonable costs, expenses,
and attorneys’ fees of Lender related thereto, the liability of such Borrower or such other Loan Party automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made and all of
Lender’s Liens in the Collateral shall be automatically reinstated without further action. 

17.8.    Confidentiality. 

(a)    Lender agrees that material, non-public information regarding the Loan
Parties and their Subsidiaries, their operations, assets, and existing and contemplated business plans (“Confidential Information”) shall be treated by Lender in a confidential manner, and shall not be disclosed by Lender to Persons
who are not parties to this Agreement, except: (i) to attorneys for and other advisors, accountants, auditors, and consultants to Lender and to employees, directors and officers of Lender (the Persons in this clause (i), “Lender
Representatives”) on a “need to know” basis in connection with this Agreement and the transactions contemplated hereby and on a confidential basis, (ii) to Subsidiaries and Affiliates of Lender, provided that any such
Subsidiary or Affiliate shall have agreed to receive such information hereunder subject to the terms of this Section 17.8, (iii) as may be required by regulatory authorities, (iv) as may be required by statute,
decision, or judicial or administrative order, rule, or regulation; provided that (x) prior to any disclosure under this clause (iv), the disclosing party agrees to provide Borrowers with prior notice thereof, to the extent that it is
practicable to do so and to the extent that the disclosing party is permitted to provide such prior notice to Borrowers pursuant to the terms of the applicable statute, decision, or judicial or administrative order, rule, or regulation and
(y) any disclosure under this clause (iv) shall be limited to the portion of the Confidential Information as may be required by such statute, decision, or judicial or administrative order, rule, or regulation, (v) as may be agreed to
in advance in writing by Borrowers, (vi) as requested or required by any Governmental Authority pursuant to any subpoena or other legal process, provided, that, (x) prior to any disclosure under this clause (vi) the disclosing party
agrees to provide Borrowers with prior written notice thereof, to the extent that it is practicable to do so and to the extent that the disclosing party is permitted to provide such prior written notice to Borrowers pursuant to the terms of the
subpoena or other legal process and (y) any disclosure under this clause (vi) shall be limited to the portion of the Confidential Information as may be required by such Governmental Authority pursuant to such subpoena or other legal
process, (vii) as to any such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Lender or Lender Representatives), (viii) in connection with any assignment, participation or
pledge of any Lender’s interest under this Agreement, provided that prior to receipt of Confidential Information any such assignee, participant, or pledgee shall have agreed in writing to receive such Confidential Information hereunder subject
to the terms of this Section 17.8, (ix) in connection with any litigation or other adversary proceeding involving parties hereto which such litigation or adversary proceeding involves claims related to the rights or duties
of such parties under this Agreement or the other Loan Documents; (x) to equity owners of each Loan Party and (xi) in connection with, and to the extent reasonably necessary for, the exercise of any secured creditor remedy under this
Agreement or under any other Loan Document. 

  
 -48- 

 (b)    Anything in this Agreement to the contrary notwithstanding, Lender may
use the name, logos, and other insignia of the Loan Parties and the Maximum Credit provided hereunder in any “tombstone” or comparable advertising, on its website or in other marketing materials of Lender. 

17.9.    Lender Expenses. Each Borrower and each other Loan Party agrees to pay the Lender Expenses on the
earlier of (a) the first day of the month following the date on which such Lender Expenses were first incurred, or (b) the date on which demand therefor is made by Lender and each Borrower and each other Loan Party agrees that its
obligations contained in this Section 17.9 shall survive payment or satisfaction in full of all other Obligations. 

17.10.    Setoff. Lender may at any time, in its sole discretion and without demand or notice to anyone,
setoff any liability owed to any Borrower or any Guarantor or any other Loan Party by Lender against any of the Obligations, whether or not due. 

17.11.    Survival. All representations and warranties made by the Loan Parties in the Loan Documents and in
the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the
Loan Documents and the making of any loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that Lender may have had notice or knowledge of any Default or Event
of Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as any of the Obligations is outstanding and unpaid or any Letter of Credit is outstanding and so
long as the obligation of Lender to provide extensions of credit hereunder has not expired or been terminated. 

17.12.    Patriot Act. Lender hereby notifies the Loan Parties that pursuant to the requirements of the
Patriot Act, it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Lender to identify each Loan Party in
accordance with the Patriot Act. In addition, if Lender is required by law or regulation or internal policies to do so, it shall have the right to periodically conduct (a) Patriot Act searches, OFAC/PEP searches, and customary individual
background checks for the Loan Parties, and (b) OFAC/PEP searches and customary individual background checks of the Loan Parties’ senior management and key principals, and each Borrower and each other Loan Party agrees to cooperate in
respect of the conduct of such searches and further agrees that the reasonable costs and charges for such searches shall constitute Lender Expenses hereunder and be for the account of Borrowers. 

17.13.    Integration. THIS AGREEMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS, REFLECTS THE ENTIRE
UNDERSTANDING OF THE PARTIES WITH RESPECT TO THE TRANSACTIONS CONTEMPLATED HEREBY AND SHALL NOT BE CONTRADICTED OR QUALIFIED BY ANY OTHER AGREEMENT, ORAL OR WRITTEN, BEFORE THE CLOSING DATE. THE FOREGOING TO THE CONTRARY NOTWITHSTANDING, ALL BANK
PRODUCT AGREEMENTS, IF ANY, ARE INDEPENDENT AGREEMENTS GOVERNED BY THE WRITTEN PROVISIONS OF SUCH BANK PRODUCT AGREEMENTS, WHICH WILL REMAIN IN FULL FORCE AND 

  
 -49- 

 
EFFECT, UNAFFECTED BY ANY REPAYMENT, PREPAYMENTS, ACCELERATION, REDUCTION, INCREASE, OR CHANGE IN THE TERMS OF ANY CREDIT EXTENDED HEREUNDER, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN SUCH BANK
PRODUCT AGREEMENT. 
 17.14.    Bank Product Providers. Each Bank Product Provider shall be deemed a third
party beneficiary hereof and of the provisions of the other Loan Documents for purposes of any reference in a Loan Document to the parties for whom Lender is acting. Lender hereby agrees to act as agent for such Bank Product Providers and, by virtue
of entering into a Bank Product Agreement, the applicable Bank Product Provider shall be automatically deemed to have appointed Lender as its agent and to have accepted the benefits of the Loan Documents; it being understood and agreed that the
rights and benefits of each Bank Product Provider under the Loan Documents consist exclusively of such Bank Product Provider’s being a beneficiary of the Liens and security interests (and, if applicable, guarantees) granted to Lender and the
right to share in payments and collections of the Collateral as more fully set forth herein and in the other Loan Documents. In addition, each Bank Product Provider, by virtue of entering into a Bank Product Agreement, shall be automatically deemed
to have agreed that Lender shall have the right, but shall have no obligation, to establish, maintain, relax, or release Reserves in respect of the Bank Product Obligations and that if Reserves are established there is no obligation on the part of
Lender to determine or ensure whether the amount of any such Reserve is appropriate or not. Notwithstanding anything to the contrary in this Agreement or any other Loan Document, no Bank Product Provider (other than Lender in its capacity as lender
hereunder) shall have any voting or approval rights hereunder solely by virtue of its status as the provider or holder of such agreements or products or the Obligations owing thereunder, nor shall the consent of any such provider or holder be
required for any matter hereunder or under any of the other Loan Documents, including as to any matter relating to the Collateral or the release of Collateral or any other Loan Party. 

17.15.    Non-Applicability of Chapter 346. Each Loan Party and
Lender hereby agree that except for Section 346.004 thereof, the provisions of Chapter 346 of the Texas Finance Code (Vernon’s Texas Code Annotated), as amended from time to time (regulating certain revolving credit loans and revolving tri-party accounts) shall not apply to this Agreement or any of the other Loan Documents. 

17.16.    Waiver of Rights under Texas Deceptive Trade Practices Act. EACH LOAN PARTY HEREBY WAIVES ITS
RIGHTS UNDER THE DECEPTIVE TRADE PRACTICES—CONSUMER PROTECTION ACT, SECTION § 17.41 ET SEQ. TEXAS BUSINESS & COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS. AFTER CONSULTATION WITH AN ATTORNEY OF EACH
LOAN PARTY’S OWN SELECTION, EACH LOAN PARTY VOLUNTARILY CONSENTS TO THIS WAIVER. EACH LOAN PARTY EXPRESSLY WARRANTS AND REPRESENTS THAT IT (A) IS NOT IN A SIGNIFICANTLY DISPARATE BARGAINING POSITION RELATIVE TO LENDER, AND (B) HAS
BEEN REPRESENTED BY LEGAL COUNSEL IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 

  
 -50- 

 17.17.    Amendment and Restatement. This Agreement amends and
restates the Existing Credit Agreement in its entirety. The Existing Loans and the other Existing Obligations (including the Obligations identified on the Existing Note) outstanding under the Existing Credit Agreement shall be governed by and deemed
to be outstanding under the amended and restated terms set forth in this Agreement and the other Loan Documents, and the Existing Obligations are and shall continue to be (and all Obligations incurred pursuant hereto shall be) secured by, among
other things, the Existing Collateral as well as the other Collateral. The execution and delivery of this Agreement, which is made for the purposes described in the foregoing recitals, shall not effectuate a novation of any of the Existing Loan
Documents, or, except as set forth below, constitute a release or discharge of the Existing Obligations or the Existing Collateral, but rather as a substitution of certain terms governing the payment and performance of such obligations and
indebtedness. 
 [Signature pages to follow] 

  
 -51- 

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

			
	BORROWERS:
	
	IES HOLDINGS, INC.
	IES COMMUNICATIONS, LLC
	IES COMMERCIAL, INC.
	IES PURCHASING & MATERIALS, INC.
	IES RESIDENTIAL, INC.
	INTEGRATED ELECTRICAL FINANCE, INC.
	IES RENEWABLE ENERGY, LLC
	IES SUBSIDIARY HOLDINGS, INC.
	HK ENGINE COMPONENTS, LLC
	MAGNETECH INDUSTRIAL SERVICES, INC.
	SOUTHERN INDUSTRIAL SALES AND SERVICES, INC.
	CALUMET ARMATURE AND ELECTRIC, L.L.C.
	SHANAHAN MECHANICAL AND ELECTRICAL, INC.
	IES INFRASTRUCTURE SOLUTIONS, LLC
	TECHNIBUS, INC.
	FREEMAN ENCLOSURE SYSTEMS, LLC
	STRATEGIC EDGE LLC
		
	Each By:	 	  

	Name:	 	Tracy A. McLauchlin
	Title:	 	Senior Vice President, CFO & Treasurer

  
 Signature Page to Second Amended and
Restated Credit and Security Agreement 

 
			
	IES MANAGEMENT LP
		
	By:	 	INTEGRATED ELECTRICAL FINANCE,
		 	INC., its General Partner
		
	By:	 	  

	Name:	 	Robert W. Lewey
	Title:	 	President
	
	IES MANAGEMENT ROO, LP
		
	By:	 	IES OPERATIONS GROUP, INC.,
		 	its General Partner
		
	By:	 	  

	Name:	 	Robert W. Lewey
	Title:	 	President
	
	GUARANTORS:
	
	IES CONSOLIDATION, LLC
	IES SHARED SERVICES, INC.
	IES PROPERTIES, INC.
	KEY ELECTRICAL SUPPLY, INC.
	IES TANGIBLE PROPERTIES, INC.
	IES OPERATIONS GROUP, INC.
	ICS HOLDINGS LLC
		
	Each By:	 	  

	Name:	 	Tracy A. McLauchlin
	Title:	 	Senior Vice President, CFO & Treasurer

  
 Signature Page to Second Amended and
Restated Credit and Security Agreement 

 
			
	LENDER:
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By:	 	                                     
                                         
           
	Name:	 	Howard I. Handman
	Title:	 	Authorized Signatory

  
 Signature Page to Second Amended and
Restated Credit and Security Agreement 

 Schedule 1.1 

a.    Definitions. As used in this Agreement, the following terms shall have the following definitions: 

“Account” means an account (as that term is defined in Article 9 of the Code). 

“Account Debtor” means an account debtor (as that term is defined in the Code). 

“Accounts Availability Amount” means, as of any date of determination, the sum of: 

(a).    ninety percent (90%) (less the amount, if any, of the Dilution Reserve applicable to
Eligible Accounts, if applicable) of the amount of Eligible Accounts, plus 
 (b).    the
lesser of (x) seventy-five percent (75%) (less the amount, if any, of the Dilution Reserve applicable to Eligible Progress Billing Accounts, if applicable) of the amount of Eligible Progress Billing Accounts, (y) $40,000,000, or (z) sixty
percent (60%) of an amount equal to the sum of clause (a) above plus clause (b) (x) above (after giving effect to any Reserves). 

“Acquisition” means (a) the purchase or other acquisition by a Person or its Subsidiaries of all or substantially all of
the assets of (or any division or business line of) any other Person, or (b) the purchase or other acquisition (whether by means of a merger, consolidation, or otherwise) by a Person or its Subsidiaries of all or substantially all of the Equity
Interests of any other Person. 
 “Additional Documents” has the meaning specified therefor in
Section 6.15. 
 “Advances” has the meaning specified therefor in Section 2.1(a). 

“Administrative Borrower” shall mean Parent in its capacity as Administrative Borrower on behalf of itself and the other Loan
Parties pursuant to Section 2.17 hereof and its successors and assigns in such capacity. 

“Affiliate” means, as applied to any Person, any other Person who controls, is controlled by, or is under common control
with, such Person. For purposes of this definition, “control” means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether through the ownership of
Stock, by contract, or otherwise; provided, however, that, for purposes of the definition of Eligible Accounts and Section 7.12: (a) any Person which owns directly or indirectly ten percent (10%) or more of
the Stock having ordinary voting power for the election of the board of directors or equivalent governing body of a Person or ten percent (10%) or more of the partnership or other ownership interests of a Person (other than as a limited partner of
such Person) shall be deemed an Affiliate of such Person, (b) each director (or comparable manager) of a Person shall be deemed to be an Affiliate of such Person, and (c) each partnership in which a Person is a general partner shall be
deemed an Affiliate of such Person. 

  
 Schedule 1.1 

Page 1 

 “Aged Payables Reserve” shall mean an amount equal to the aggregate amount of
Borrowers’ accounts payable that are outstanding more than sixty (60) days past the due date or more than ninety (90) days past the original invoice date. 

“Agreement” means the Second Amended and Restated Credit and Security Agreement to which this Schedule 1.1 is
attached. 
 “Authorized Person” means any one of the individuals identified on Schedule
A-2, as such schedule is updated from time to time by written notice from Administrative Borrower to Lender. 

“Availability” means, as of any date of determination, the amount that Borrowers are entitled to borrow as Advances under
Section 2.1 (after giving effect to all then outstanding Obligations). 
 “Bank Product” means
any one or more of the following financial products or accommodations extended to a Loan Party or any of its Subsidiaries by a Bank Product Provider: (a) commercial credit cards, (b) commercial credit card processing services,
(c) debit cards, (d) stored value cards, (e) purchase cards (including so-called “procurement cards” or “P-cards”), (f) Cash
Management Services, or (g) transactions under Hedge Agreements. 
 “Bank Product Agreements” means those agreements
entered into from time to time by a Loan Party or any of its Subsidiaries with a Bank Product Provider in connection with the obtaining of any of the Bank Products, including all Cash Management Documents. 

“Bank Product Collateralization” means providing cash collateral (pursuant to documentation reasonably satisfactory to
Lender) to be held by Lender for the benefit of the Bank Product Provider in an amount determined by Lender as sufficient to satisfy the reasonably estimated credit exposure with respect to the then existing Bank Product Obligations (other than
Hedge Obligations). 
 “Bank Product Obligations” means (a) all obligations, indebtedness, liabilities, reimbursement
obligations, fees, or expenses owing by a Loan Party or any of its Subsidiaries to Lender or another Bank Product Provider pursuant to or evidenced by a Bank Product Agreement and irrespective of whether for the payment of money, whether direct or
indirect, absolute or contingent, liquidated or unliquidated, determined or undetermined, voluntary or involuntary, due, not due or to become due, incurred in the past or now existing or hereafter arising, however arising and (b) all Hedge
Obligations. 
 “Bank Product Provider” means Lender or any of its Affiliates that provide Bank Products to a Loan Party or
any of its Subsidiaries. 
 “Bank Product Reserve Amount” means, as of any date of determination, the Dollar amount of
reserves that Lender has determined it is necessary or appropriate to establish (based upon Lender’s reasonable determination of the credit and operating risk exposure to a Loan Party or any of its Subsidiaries in respect of Bank Product
Obligations) in respect of Bank Products then provided or outstanding. 

  
 Schedule 1.1 

Page 2 

 “Bankruptcy Code” means title 11 of the United States Code, as in effect from
time to time. 
 “Benefit Plan” means a “defined benefit plan” (as defined in Section 3(35) of ERISA) for
which any Borrower or any of its Subsidiaries or ERISA Affiliates has been an “employer” (as defined in Section 3(5) of ERISA) within the past six years. 

“Board of Directors” means the board of directors (or comparable managers) of a Borrower or any other Loan Party or any
committee thereof duly authorized to act on behalf of the board of directors (or comparable managers). 
 “Books” means
books and records (including a Borrower’s or any other Loan Party’s Records indicating, summarizing, or evidencing such Borrower’s or such other Loan Party’s assets (including the Collateral) or liabilities, such Borrower’s
or such other Loan Party’s Records relating to such Borrower’s or such other Loan Party’s business operations or financial condition, or such Borrower’s or such other Loan Party’s Goods or General Intangibles related to such
information). 
 “Bonded Accounts” as to any Borrower, all now owned or hereafter acquired accounts (as defined in the UCC)
and (whether included in such definition) accounts receivable; and proceeds (other than such proceeds which are negotiable instruments or cash or Cash Equivalents in the possession or control of Lender), including without limitation, all insurance
proceeds and letter of credit proceeds, in each case solely to the extent such accounts, accounts receivable, and proceeds arise out of a Bonded Contract, including, but not limited to, Bonded Retainage, and all forms of obligations whatsoever owing
to any Loan Party under instruments and documents of title constituting the foregoing or proceeds thereof; and all rights, securities, and guarantees with respect to each of the foregoing. 

“Bonded Contract” the contracts listed on Schedule 5.33 to the Information Certificate on the Closing Date and any
future contract in respect of which any Surety Bond is issued on behalf of any Borrower and Lender receives written notice of such Surety Bond from Borrower prior to any Account related thereto being included in the Borrowing Base or reported on a
Borrowing Base Certificate. 
 “Bonded Equipment” all now owned or hereafter acquired right, title and interest with
respect to Equipment (as defined in the UCC), owned by a Borrower and (whether or not included in such definition) all other personal property in each case which is delivered to, prefabricated for or specifically ordered for a Bonded Job Site,
whether or not the same will be deemed to be affixed to, arise out of or relate to any real property, together with all accessions thereto. 

“Bonded Inventory” all now owned and hereafter acquired inventory of Borrowers, including, without limitation, goods,
merchandise and other personal property in each case which is furnished under any Bonded Contract, all raw materials, work in process, finished goods and materials and supplies of any kind, nature or description in each case which is delivered to,
prefabricated for or specifically ordered for a Bonded Job Site. 

  
 Schedule 1.1 

Page 3 

 “Bonded Job Site” the site specified in a Bonded Contract where any Borrower is
to perform the specialized electrical and communication services required thereunder, including all other labor, materials, equipment and services provided or to be provided to fulfill its obligations thereunder. 

“Bonded Retainage” contract proceeds periodically withheld by an account debtor to provide further security for the
performance by any Borrower of a Bonded Contract, and as such are payable to it only upon a clear demonstration of compliance with terms of the Bonded Contract. 

“Borrowers” means, jointly and severally, Parent; IES Communications, LLC, a Delaware limited liability company; IES
Commercial, Inc., a Delaware corporation; IES Management LP, a Texas limited partnership; IES Management ROO, LP, a Texas limited partnership; IES Purchasing & Materials, Inc., a Delaware corporation; IES Residential, Inc., a Delaware
corporation; Integrated Electrical Finance, Inc., a Delaware corporation; IES Subsidiary Holdings, Inc., a Delaware corporation; Magnetech Industrial Services, Inc., an Indiana corporation; HK Engine Components, LLC, an Indiana limited liability
company; IES Renewable Energy, LLC, a Delaware limited liability company; Southern Industrial Sales and Services, Inc., a Georgia corporation d/b/a Southern Rewinding and Sales; Calumet Armature and Electric, L.L.C., an Illinois limited liability
company; Shanahan Mechanical and Electrical, Inc., a Nebraska corporation; IES Infrastructure Solutions, LLC, a Delaware limited liability company; Technibus, Inc., a Delaware corporation; Freeman Enclosure Systems, LLC, an Ohio limited liability
company; Strategic Edge, LLC, an Ohio limited liability company; and any other Person that becomes a Borrower pursuant to a joinder agreement entered into pursuant to Section 6.16 hereof. 

“Borrowing” means a borrowing consisting of Advances (i) requested by Borrowers, (ii) made automatically pursuant
to Section 2.3(c) without the request of Borrowers, (iii) made by Lender pursuant to Section 2.6(c), or (iv) a Protective Advance. 

“Borrowing Base” means, as of any date of determination, the result of: 

(a)    the Accounts Availability Amount, plus: 

(b)    the lowest of 

(i)    $5,000,000, 

(ii)    sixty-five percent (65%) of the Value of Eligible Inventory, or 

(iii)    eighty-five percent (85%) times the most recently determined Net Liquidation Percentage times the
Value of Eligible Inventory, plus 
 (c)    Existing Fixed Asset Availability, plus 

(d)    Fixed Asset Availability, plus 

(e)    Real Estate Availability; minus 

  
 Schedule 1.1 

Page 4 

 (f)    the Aged Payables Reserve, minus 

(g)    the aggregate amount of Reserves, if any, established by Lender. 

“Borrowing Base Certificate” means a form of borrowing base certificate in form and substance acceptable to Lender. 

“Business Day” means any day that is not a Saturday, Sunday, or other day on which banks are authorized or required to close
pursuant to the rules and regulations of the Federal Reserve System. 
 “Capital Expenditures” means, with respect to any
Person for any period, the aggregate of all expenditures by such Person and its Subsidiaries during such period that are capital expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed. 

“Capitalized Lease Obligation” means that portion of the obligations under a Capital Lease that is required to be capitalized
in accordance with GAAP. 
 “Capital Lease” means a lease that is required to be capitalized for financial reporting
purposes in accordance with GAAP. 
 “Cash Collateralized Letter of Credit” means a Letter of Credit for which cash
collateral has been provided pursuant to clause (a) of the definition of “Letter of Credit Collateralization.” 

“Cash Equivalents” means (a) marketable direct obligations issued by, or unconditionally guaranteed by, the United
States or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within 1 year from the date of acquisition thereof, (b) marketable direct obligations issued or fully guaranteed by any
state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within 1 year from the date of acquisition thereof and having one of the two highest ratings obtainable from either
Standard & Poor’s Rating Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no more than two hundred seventy (270) days from the date of
creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody’s, (d) certificates of deposit, time
deposits, overnight bank deposits or bankers’ acceptances maturing within 1 year from the date of acquisition thereof issued by any bank organized under the laws of the United States or any state thereof or the District of Columbia or any
United States branch of a foreign bank having combined capital and surplus of not less than $250,000,000, (e) Deposit Accounts maintained with (i) any bank that satisfies the criteria described in clause (d) above, or (ii) any other
bank organized under the laws of the United States or any state thereof so long as the full amount maintained with any such other bank is insured by the Federal Deposit Insurance Corporation, (f) repurchase obligations of any commercial bank
satisfying the requirements of clause (d) of this definition or recognized securities dealer having combined capital and surplus of not less than $250,000,000, having a term of not more than seven (7) days, with respect to securities
satisfying the criteria in clauses (a) or (d) above, (g) debt securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any commercial bank

  
 Schedule 1.1 

Page 5 

 
satisfying the criteria described in clause (d) above, and (h) Investments in money market funds substantially all of whose assets are invested in the types of assets described in
clauses (a) through (g) above. 
 “Cash Management Documents” means the agreements governing each of the Cash
Management Services of Lender utilized by a Borrower which agreements shall currently include the Master Agreement for Treasury Management Services or other applicable treasury management services agreement, the “Acceptance of Services”,
the “Service Description” governing each such treasury management service used by a Borrower, and all replacement or successor agreements which govern such Cash Management Services of Lender. 

“Cash Management Services” means any cash management or related services including treasury, depository, return items,
overdraft, controlled disbursement, merchant stored value cards, e-payables services, electronic funds transfer, interstate depository network, automatic clearing house transfer (including the Automated
Clearing House processing of electronic funds transfers through the direct Federal Reserve Fedline system) and other cash management arrangements. 

“Cash Management Transition Period” has the meaning specified in Section 6.12(j)(i). 

“CFC” means a controlled foreign corporation (as that term is defined in the IRC). 

“Change of Control” means that (a) Permitted Holders fail to own and control, directly or indirectly, fifty percent
(50%), or more, of the Stock of Parent having the right to vote for the election of members of the board of directors of Parent, (b) a majority of the members of the board of directors of Parent do not constitute Continuing Directors,
(c) each Borrower fails to own and control, directly or indirectly, one hundred percent (100%) of the Stock of each of its Subsidiaries (other than STR Mechanical) or (d) IES Commercial or another Loan Party (subject to execution of a
Pledged Interests Addendum pursuant to Section 6.12(h)(iii)) ceases to own eight percent (80%) (or such greater amount that IES Commercial or another Loan Party may own from time to time following the Closing Date) of the membership interests
of STR Mechanical.. 
 “Chattel Paper” means chattel paper (as that term is defined in the Code), and includes tangible
chattel paper and electronic chattel paper. 
 “Chartis” means Chartis Property Casualty Company or any of its Affiliates
or Subsidiaries, including, without limitation, National Union Fire Insurance Company of Pittsburgh, Pa. 
 “Chartis
Intercreditor” means an Intercreditor Agreement entered into after August 9, 2012 by and among Lender, Chartis and certain Loan Parties, in form and substance satisfactory to Lender in its sole and absolute discretion, as the same may
be amended, amended and restated or otherwise modified from time to time. 
 “Closing Date” means April 10, 2017. 

  
 Schedule 1.1 

Page 6 

 “Code” means the Texas Uniform Commercial Code, as in effect from time to time;
provided, however, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, priority, or remedies with respect to Lender’s Lien on any Collateral is governed by the Uniform
Commercial Code as enacted and in effect in a jurisdiction other than the State of Texas, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions
thereof relating to such attachment, perfection, priority, or remedies. To the extent that defined terms set forth herein shall have different meanings under different Articles under the Uniform Commercial Code, the meaning assigned to such defined
term under Article 9 of the Uniform Commercial Code shall control. 
 “Collateral” means, other than the Excluded
Collateral, all of each Loan Party’s now owned or hereafter acquired: 
 (a)    Accounts; 

(b)    Books; 

(c)    Chattel Paper; 

(d)    Deposit Accounts; 

(e)    Goods, including Equipment and Fixtures; 

(f)    General Intangibles, including, without limitation, Intellectual Property and Intellectual Property Licenses; 

(g)    Inventory; 

(h)    Investment Related Property; 

(i)    Negotiable Collateral; 

(j)    Supporting Obligations; 

(k)    Commercial Tort Claims; 

(l)    money, Cash Equivalents, or other assets of such Loan Party that now or hereafter come into the possession,
custody, or control of Lender (or its agent or designee); and 
 (m)    all of the proceeds (as such term is defined in
the Code) and products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance or Commercial Tort Claims covering or relating to any or all of the foregoing, and any and all Accounts, Books, Chattel Paper, Deposit
Accounts, Equipment, Fixtures, General Intangibles (including, without limitation, Intellectual Property and Intellectual Property Licenses), Inventory, Investment Related Property, Negotiable Collateral, Supporting Obligations, money, or other
tangible or intangible property resulting from the sale, lease, license, exchange, collection, or other disposition of any of the foregoing, the proceeds of any award in 

  
 Schedule 1.1 

Page 7 

 
condemnation with respect to any of the foregoing, any rebates or refunds, whether for taxes or otherwise, and all proceeds of any such proceeds, or any portion thereof or interest therein, and
the proceeds thereof, and all proceeds of any loss of, damage to, or destruction of the above, whether insured or not insured, and, to the extent not otherwise included, any indemnity, warranty, or guaranty payable by reason of loss or damage to, or
otherwise with respect to any of the foregoing (collectively, the “Proceeds”). Without limiting the generality of the foregoing, the term “Proceeds” includes whatever is receivable or received when Investment Related
Property or proceeds are sold, exchanged, collected, or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes proceeds of any indemnity or guaranty payable to such Loan Party or Lender from time to time with
respect to any of the Investment Related Property. 
 “Collateral Access Agreement” means a landlord waiver, bailee letter,
or acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in possession of, having a Lien upon, or having rights or interests in the Books, Equipment, Accounts or Inventory of any Loan Party or any of its
Subsidiaries, in each case, in favor of Lender with respect to the Collateral at such premises or otherwise in the custody, control or possession of such lessor, warehouseman, processor, consignee or other Person and in form and substance reasonably
satisfactory to Lender. 
 “Collection Account” means the Deposit Account identified on Schedule A-1. 
 “Collections” means all cash, checks, notes, instruments, and other items of
payment (including insurance Proceeds, cash Proceeds of asset sales, rental Proceeds, and tax refunds). 
 “Commercial Tort
Claims” means commercial tort claims (as that term is defined in the Code), and includes those commercial tort claims listed on Schedule 5.6(d) to the Information Certificate (as such Schedule may be updated from time to time
pursuant to Section 6.12(e)). 
 “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1, et
seq., as in effect from time to time). 
 “Compliance Certificate” means a certificate substantially in the form of
Exhibit A delivered by the chief financial officer of each Borrower to Lender. 
 “Confidential Information” has the
meaning specified therefor in Section 17.8. 
 “Continuing Director” means (a) any member of
the Board of Directors who was a director (or comparable manager) of Parent on the Closing Date, and (b) any individual who becomes a member of the Board of Directors Parent after the Closing Date if such individual was approved, appointed or
nominated for election to the Board of Directors by either the Permitted Holders or a majority of the Continuing Directors, but excluding any such individual originally proposed for election in opposition to the Board of Directors in office at the
Closing Date in an actual or threatened election contest relating to the election of the directors (or comparable managers) of Parent and whose initial assumption of office resulted from such contest or the settlement thereof. 

  
 Schedule 1.1 

Page 8 

 “Control Agreement” means a control agreement, in form and substance reasonably
satisfactory to Lender, executed and delivered by a Loan Party or any Subsidiary of a Loan Party, Lender, and the applicable securities intermediary (with respect to a Securities Account) or bank (with respect to a Deposit Account) or issuer, (with
respect to uncertificated securities). 
 “Copyrights” means any and all rights in any works of authorship, including
(i) copyrights and moral rights, (ii) copyright registrations and recordings thereof and all applications in connection therewith including those listed on Schedule 5.26(b) to the Information Certificate (as such Schedule may be
updated from time to time to reflect changes resulting from transactions permitted under this Agreement), (iii) income, license fees, royalties, damages, and payments now and hereafter due or payable under and with respect thereto, including
payments under all licenses entered into in connection therewith and damages and payments for past, present, or future infringements thereof, (iv) the right to sue for past, present, and future infringements thereof, and (v) all of each
Borrower’s and each other Loan Party’s rights corresponding thereto throughout the world. 
 “Copyright Security
Agreement” means each Copyright Security Agreement executed and delivered by a Borrower or another Loan Party and Lender, in form and substance acceptable to Lender. 

“Credit Facility” means the Revolving Credit Facility. 

“Daily Balance” means, as of any date of determination and with respect to any Obligation, the amount of such Obligation owed
at the end of such day. 
 “Daily Three Month LIBOR” means, for any day the rate per annum (rounded upward to the nearest
whole 1/8th of 1%) for United States dollar deposits quoted by Lender for the purpose of calculating the effective Interest Rate for loans that reference Daily Three Month LIBOR as the Inter-Bank Market Offered Rate in effect from time to time for
the 3 month delivery of funds in amounts approximately equal to the principal amount of such loans. Borrowers understand and agree that Lender may base its quotation of the Inter-Bank Market Offered Rate upon such offers or other market indicators
of the Inter-Bank Market as Lender in its discretion deems appropriate, including but not limited to the rate offered for U.S. dollar deposits on the London Inter-Bank Market. When interest is determined in relation to Daily Three Month LIBOR, each
change in the interest rate shall become effective each Business Day that Lender determines that Daily Three Month LIBOR has changed. 

“Default” means an event, condition, or default that, with the giving of notice, the passage of time, or both, would be an
Event of Default. 
 “Deposit Account” means any deposit account (as that term is defined in the Code). 

“Designated Account” means the operating Deposit Account of Borrowers at Lender identified on Schedule D-1. 

  
 Schedule 1.1 

Page 9 

 “Dilution” means, as of any date of determination, a percentage that is, for the
trailing twelve months, the result of dividing the Dollar amount of (a) bad debt write-downs, discounts, credits, deductions, or other dilutive items as determined by Lender with respect to Borrowers’ Accounts by (b) Borrowers’
billings with respect to accounts. 
 “Dilution Reserve” means, as of any date of determination, an amount sufficient to
reduce the advance rate against (i) Eligible Accounts by one (1) percentage point for each percentage point by which Dilution is in excess of two and one-half of one percent (2.5%) and
(ii) Eligible Progress Billing Accounts by one (1) percentage point for each percentage point by which Dilution is in excess of five percent (5.0%). 

“Dollars” or “$” means United States dollars. 

“EBITDA” means, with respect to any fiscal period, the consolidated net income (or loss), of Borrowers and their
Subsidiaries, minus extraordinary gains, interest income, non-operating income and income tax benefits and decreases in any change in LIFO reserves, plus stock compensation expense, non-cash extraordinary losses (including, but not limited to, a non-cash impairment charge or write-down), Interest Expense, income taxes, depreciation and amortization and
increases in any change in LIFO reserves for such period, in each case, determined on a consolidated basis in accordance with GAAP; provided, that if any Loan Party makes an Acquisition after the Closing Date consented to by Lender, EBITDA for such
fiscal period shall be calculated after giving pro forma effect thereto assuming that such transaction has occurred on the first day of such period (including pro forma adjustments arising out of events which are directly attributable
to such Acquisition, are factually supportable, and are expected to have a continuing impact, in each case to be reasonably agreed to by Lender). 

“Eligible Accounts” means those Accounts, other than Eligible Progress Billing Accounts, created by each Borrower in the
ordinary course of its business, that arise out of such Borrower’s sale of Goods or rendition of services, that comply with each of the representations and warranties respecting Eligible Accounts made in the Loan Documents, and that are not
excluded as ineligible by virtue of one or more of the excluding criteria set forth below. In determining the amount to be included, Eligible Accounts shall be calculated net of customer deposits, credits and unapplied cash. Eligible Accounts shall
not include the following: 
 (a)    Accounts that the Account Debtor has failed to pay within ninety (90) days of
the original invoice date; 
 (b)    Accounts with selling terms of more than thirty (30) days; 

(c)    Accounts owed by an Account Debtor (or its Affiliates) where fifty percent (50%) or more of all Accounts owed by
that Account Debtor (or its Affiliates) are deemed ineligible under clauses (a) or (b) above or clauses (i) or (s) below; 

(d)    Accounts with respect to which the Account Debtor is an Affiliate, agent or equity owner of such Borrower or an
employee or agent of such Borrower or any Affiliate of such Borrower; 

  
 Schedule 1.1 

Page 10 

 (e)    Accounts arising in a transaction wherein Goods are placed on
consignment or are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, or any other terms by reason of which the payment by the Account Debtor may be conditional or contingent; 

(f)    Accounts that are not payable in Dollars; 

(g)    Accounts with respect to which the Account Debtor either (i) does not maintain its chief executive office in
the United States or Canada, or (ii) is not organized under the laws of the United States or any state thereof or Canada, or (iii) is the government of any foreign country or sovereign state, or of any state, province, municipality, or
other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless (x) the Account is supported by an irrevocable letter of credit reasonably satisfactory to Lender (as to form,
substance, and issuer or domestic confirming bank) that has been delivered to Lender and is directly drawable by Lender (or Lender is otherwise satisfied in its sole discretion that in can enforce same or cause Borrower to enforce same for
Lender’s benefit), (y) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, reasonably satisfactory to Lender, or (z) the Account is guaranteed pursuant to an approved working capital guarantee from
the Export-Import Bank of the United States in favor of Lender (or Lender is otherwise satisfied in its sole discretion that in can enforce same or cause Borrower to enforce same for Lender’s benefit) and acceptable to Lender in all respects;

 (h)    [reserved]; 

(i)    Accounts with respect to which the Account Debtor is a creditor of such Borrower (unless such Account Debtor has
delivered Lender a “non-offset” letter acceptable to Lender), has or has asserted a right of setoff, or has disputed its obligation to pay all or any portion of the Account, to the extent of such
claim, right of setoff, or dispute; 
 (j)    That portion of Accounts which reflect a reasonable reserve for warranty
claims or returns or amounts which are owed to Account Debtors, including those for rebates, allowances, co-op advertising, new store allowances or other deductions; 

(k)    Accounts owing by a single Account Debtor or group of Affiliated Account Debtors whose total obligations owing to
Borrower exceed fifteen (15%) percent of the aggregate amount of all otherwise Eligible Accounts and Eligible Progress Billing Accounts (but the portion of the Accounts not in excess of the foregoing applicable percentages may be deemed Eligible
Accounts), such percentages being subject to reduction in Lenders Permitted Discretion if the creditworthiness of such Account Debtor deteriorates; 

(l)    Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding, is not Solvent, has gone
out of business, or as to which such Borrower has received notice of an imminent Insolvency Proceeding or a material impairment of the financial condition of such Account Debtor; 

(m)    Accounts, the collection of which, Lender, in its Permitted Discretion, believes to be doubtful by reason of the
Account Debtor’s financial condition; 

  
 Schedule 1.1 

Page 11 

 (n)    Accounts representing credit card sales or “C.O.D.” sales;

 (o)    Accounts that are not subject to a valid and perfected first priority Lien in favor of Lender or that are
subject to any other Lien; 
 (p)    Accounts that consist of progress billings (such that the services giving rise to
such receivables have not been fully performed by the applicable Borrower) or retainage invoices; 
 (q)    Accounts
with respect to which the Account Debtor is a Sanctioned Person or Sanctioned Entity; 
 (r)    that portion of Accounts
which represent finance charges, service charges, sales taxes or excise taxes; 
 (s)    that portion of Accounts which
has been restructured, extended, amended or otherwise modified, other than in connection with a change order in the ordinary course of business; 

(t)    bill and hold invoices, except those with respect to which Lender shall have received an agreement in writing from
the Account Debtor, in form and substance satisfactory to Lender, confirming the unconditional obligation of the Account Debtor to take the Goods related thereto and pay such invoice, so long as such Accounts satisfy all other criteria for Eligible
Accounts hereunder; 
 (u)    Accounts which have not been invoiced; 

(v)    Accounts constituting (i) Proceeds of copyrightable material unless such copyrightable material shall have
been registered with the United States Copyright Office, or (ii) Proceeds of patentable inventions unless such patentable inventions have been registered with the United States Patent and Trademark Office; 

(w)    Accounts acquired in connection with the Permitted Acquisition, until the completion of an examination of such
Accounts, in each case, reasonably satisfactory to Lender; 
 (x)    Accounts that constitute Bonded Accounts; 

(y)    that portion of Accounts that represent billings in excess of cost; and 

(z)    Accounts or that portion of Accounts otherwise deemed ineligible by Lender in its Permitted Discretion. 

Any Accounts which are not Eligible Accounts shall nonetheless constitute Collateral. 

  
 Schedule 1.1 

Page 12 

 “Eligible Equipment” means Equipment owned by a Borrower designated by Lender as
eligible from time to time in its sole discretion, but excluding Equipment having any of the following characteristics: 

(a)    Equipment at premises other than those owned by any Borrower, unless Lender shall have entered into a Collateral
Access Agreement with the owner, operator or lessor of such premises and shall have received such other documents, instruments and agreements as Lender may request; 

(b)    Equipment that is subject to any Lien other than in favor of Lender; 

(c)    Equipment located outside the United States of America; 

(d)    Equipment that is not subject to the first priority, valid and perfected security interest of Lender; 

(e)    damaged or defective Equipment or Equipment not used or usable in the ordinary course of Borrowers’ business
as presently conducted or Equipment which is obsolete or not currently saleable or has been removed from service; 

(f)    Equipment that is not covered by “all risk” hazard insurance for an amount equal to its replacement cost;

 (g)    Equipment that requires proprietary software in order to operate in the manner in which it is intended when
such software is not freely assignable to Lender or any potential purchaser of such Equipment; 
 (h)    Equipment
consisting of computer hardware or software,; or 
 (i)    Equipment otherwise deemed unacceptable by Lender in its
Permitted Discretion. 
 Any Equipment which is not Eligible Equipment shall nonetheless constitute Collateral. 

“Eligible Inventory” means Inventory consisting of first quality finished goods held for sale in the ordinary course of each
Borrower’s business, that complies with each of the representations and warranties respecting Eligible Inventory made in the Loan Documents, and that is not excluded as ineligible by virtue of one or more of the excluding criteria set forth
below. An item of Inventory shall not be included in Eligible Inventory if: 
 (a)    such Borrower does not have good,
valid, and marketable title thereto; 
 (b)    it consists of work-in-process Inventory, components which are not part of finished goods, supplies used or consumed in such Borrower’s business, or Goods that constitute spare parts, maintenance parts, packaging and
shipping materials, or sample inventory or customer supplied parts or Inventory; 
 (c)    it consists of Inventory that
is perishable or live or where less than 8 weeks remain until the Inventory’s stated expiration or “sell-by” or “use by” date; 

  
 Schedule 1.1 

Page 13 

 (d)    such Borrower does not have actual and exclusive possession thereof
(either directly or through a bailee or agent of such Borrower); 
 (e)    it is not located at one of the locations in
the continental United States set forth on Schedule 5.29 to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement); 

(f)    it is stored at locations holding less than $50,000 of the aggregate value of such Borrower’s Inventory; 

(g)    it is in-transit to or from a location of such Borrower (other than in
transit from one location set forth on Schedule 5.29 to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement)to another location set forth
on Schedule 5.29 to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement)); 

(h)    it is located on real property leased by such Borrower or in a contract warehouse, in each case, unless it is
subject to a Collateral Access Agreement executed by the lessor or warehouseman, as the case may be, and unless it is segregated or otherwise separately identifiable from Goods of others, if any, stored on the premises; 

(i)    it is the subject of a bill of lading or other document of title; 

(j)    it is on consignment from any consignor; or on consignment to any consignee or subject to any bailment unless the
consignee or bailee has (i) executed an agreement with Lender, and (ii) provided evidence acceptable to Lender that the applicable Borrower has properly perfected a first priority security interest in such consigned Inventory and has
properly notified in writing the other creditors of consignee who hold an interest in such Inventory of Borrower’s security interest in such Inventory, and (iii) the applicable Borrower has taken such other actions with respect to such
consigned Inventory as Lender may reasonably request; 
 (k)    it is not subject to a valid and perfected first
priority Lender’s Lien; 
 (l)    it consists of goods returned or rejected by such Borrower’s customers; 

(m)    it consists of Goods that are damaged, defective, obsolete or slow moving; 

(n)    Inventory that such Borrower has returned, has attempted to return, is in the process of returning or intends to
return to the vendor of such Inventory; 
 (o)    it consists of Goods that are restricted or controlled, or regulated
items; 
 (p)    it consists of Goods that are bill and hold Goods; 

(q)    it consists of damaged or defective Goods or “seconds”; 

  
 Schedule 1.1 

Page 14 

 (r)    it is subject to third party trademark, licensing or other proprietary
rights, unless Lender is satisfied that such Inventory can be freely sold by Lender on and after the occurrence of an Event of a Default despite such third party rights; 

(s)    it consists of customer-specific Inventory not supported by purchase orders; 

(t)    it consists of Bonded Inventory; 

(u)    Lender has not completed an initial appraisal and field examination of such Inventory, in each case, reasonably
satisfactory to Lender; or 
 (v)    Inventory otherwise deemed ineligible by Lender in its Permitted Discretion. 

Any Inventory which is not Eligible Inventory shall nonetheless constitute Collateral. 

“Eligible Progress Billing Accounts” means those Accounts, other than Eligible Accounts, created by each Borrower in the
ordinary course of its business, which represent progress or milestone billings or which are otherwise conditioned upon the applicable Borrower’s completion of any further performance or service, that (a) are in accordance with the
applicable billing procedures, performance thresholds and other provisions of an executed contract or other documentation satisfactory to Lender in its Permitted Discretion with the applicable Account Debtor, (b) do not require a period of more
than forty-eight (48) months for the applicable Borrower to start and complete performance or service, (c) have been verified to Lender’s satisfaction pursuant to field examinations and other verifications from time to time performed
on behalf of Lender pursuant to the terms of this Agreement, (d) are otherwise satisfactory to Lender in its sole discretion and (e) would otherwise constitute Eligible Accounts in all respects but for clause (p) of such definition.
Without limiting the foregoing, an Account shall not be deemed an Eligible Progress Billing Account unless (a) such receivable is subject to Lender’s first priority perfected Lien and is not subject to any other Lien or (b) if such
Account (i) would be deemed ineligible under any of clauses (a) through (o) or clauses (q) through (z) of the definition of “Eligible Accounts, (ii) consists of a retainage invoice or represents billings in excess of cost,
(iii) does not comply with each of the representations and warranties respecting Eligible Accounts (without regard to whether such Account is an Eligible Account), or (iv) is otherwise deemed ineligible by Lender in its Permitted
Discretion. Notwithstanding anything in this Agreement to the contrary, until such time that Borrowers have demonstrated an ability to reliably distinguish Accounts representing progress billings from other Accounts in their Collateral reporting in
a manner satisfactory to Lender in its sole discretion, each Account that would otherwise constitute an Eligible Account under this Agreement shall be deemed an Eligible Progress Billing Account. 

“Environmental Action” means any written complaint, summons, citation, notice, directive, order, claim, litigation,
investigation, judicial or administrative proceeding, judgment, letter, or other written communication from any Governmental Authority, or any third party involving violations of Environmental Laws or releases of Hazardous Materials (a) from
any 

  
 Schedule 1.1 

Page 15 

 assets, properties, or businesses of any Loan Party, any Subsidiary of a Loan Party, or any of their predecessors
in interest, (b) from adjoining properties or businesses, or (c) from or onto any facilities which received Hazardous Materials generated by any Loan Party, any Subsidiary of a Loan Party, or any of their predecessors in interest. 

“Environmental Law” means any applicable federal, state, provincial, foreign or local statute, law, rule, regulation,
ordinance, code, binding and enforceable guideline, binding and enforceable written policy, or rule of common law now or hereafter in effect and in each case as amended, or any judicial or administrative interpretation thereof, including any
judicial or administrative order, consent decree or judgment, in each case, to the extent binding on any Loan Party or any of its Subsidiaries, relating to the environment, the effect of the environment on employee health, or Hazardous Materials, in
each case as amended from time to time. 
 “Environmental Liabilities” means all liabilities, monetary obligations, losses,
damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a result of any
claim or demand, or Remedial Action required, by any Governmental Authority or any third party, and which relate to any Environmental Action. 

“Environmental Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities. 

“Equipment” means equipment (as that term is defined in the Code). 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto. 

“ERISA Affiliate” means (a) any Person subject to ERISA whose employees are treated as employed by the same employer as
the employees of any Loan Party or its Subsidiaries under IRC Section 414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the same employer as the employees of any Loan Party or its Subsidiaries under IRC
Section 414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any organization subject to ERISA that is a member of an affiliated service group of which any Loan Party or any of its Subsidiaries is a member
under IRC Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 and 430 of the IRC, any Person subject to ERISA that is a party to an arrangement with any Loan Party or any of its Subsidiaries and whose
employees are aggregated with the employees of a Loan Party or its Subsidiaries under IRC Section 414(o). 
 “Everest”
means Everest Reinsurance Company, Everest National Insurance Company or any of their Affiliates or Subsidiaries. 
 “Everest
Intercreditor” means an Intercreditor Agreement entered into as of September 9, 2016 by and among Lender, Everest and certain Loan Parties, in form and substance satisfactory to Lender in its sole and absolute discretion, as the same
may be amended, amended and restated or otherwise modified from time to time. 

  
 Schedule 1.1 

Page 16 

 “Event of Default” has the meaning specified therefor in
Section 9. 
 “Excess Availability” means, as of any date of determination, the amount equal to
Availability minus the aggregate amount, if any, of all trade payables and other obligations each Borrower and its Subsidiaries aged in excess of sixty (60) days beyond their terms as of the end of the immediately preceding month, and all book
overdrafts and fees of each Borrower and its Subsidiaries, in each case as determined by Lender in its Permitted Discretion. 

“Exchange Act” means the Securities Exchange Act of 1934, as in effect from time to time. 

“Excluded Collateral” means (a) the Surety Collateral to the extent (i) the issuer of the Surety Bond is Chartis,
Everest, Liberty Mutual Federal Insurance Company, or other Surety (so long as such Surety has entered into an intercreditor agreement with Lender in form and substance satisfactory to Lender) or a co-surety
of such Person under the Specified Surety Agreements in effect on the Third Amendment Closing Date, provided that the Chartis Intercreditor, Everest Intercreditor, the Federal Insurance Company and Liberty Mutual Intercreditor, or an intercreditor
agreement entered into after the Third Amendment Closing Date in form and substance satisfactory to Lender, as applicable, is in full force and effect and (ii) such Surety Collateral has not previously been included in a Borrowing Base
Certificate delivered to Lender, (b) all cash collateral pledged to Federal Insurance Company, Everest, Liberty Mutual, Chartis or such other Surety pursuant to the Specified Surety Agreements that is in the possession or under the control of
Federal Insurance Company, Everest, Liberty Mutual, Chartis or such other Surety, as applicable, provided that the Chartis Intercreditor, Everest Intercreditor, the Federal Insurance Company and Liberty Mutual Intercreditor, or an intercreditor
agreement entered into after the Third Amendment Closing Date in form and substance satisfactory to Lender, as applicable, is in full force and effect and (c) cash collateral pledged to Sureties (other than Federal Insurance Company, Everest,
Liberty Mutual, Chartis or any other Surety (so long as such Surety has entered into an intercreditor agreement with Lender in form and substance satisfactory to Lender)) up to an aggregate amount of $2,000,000 (exclusive of any drawings under
letters of credit issued for the benefit of such Surety) that is in the possession or under the control of such Surety; provided, however, that in no event shall Excluded Collateral include any amounts which from time to time may be in the
Collection Account or any Deposit Account in which cash collateral or Qualified Cash is held. 
 “Excluded Hedge
Obligation” means, with respect to any Borrower or any other Loan Party, any Hedge Obligation if, and to the extent that, all or a portion of the agreement of such Loan Party to be jointly and severally liable for such Hedge Obligation of
another Loan Party or any guaranty of such Loan Party of, or the grant by such Loan Party of a security interest to secure, such Hedge Obligation (or any guaranty thereof) is or becomes illegal under the Commodity Exchange Act or any rule,
regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Loan Party’s failure for any reason to constitute an “eligible contract participant” as
defined in the Commodity Exchange Act and the regulations thereunder at the time the agreement of such Loan Party to be jointly and severally liable for such Hedge Obligation or guaranty of such Hedge Obligation or the grant of such security
interest becomes effective with respect to such Hedge Obligation. If a Hedge Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Hedge Obligation that is attributable to
swaps for which such joint and several liability or guaranty or security interest is or becomes illegal. 

  
 Schedule 1.1 

Page 17 

 “Existing Collateral” shall have the meaning set forth in the Recitals. 

“Existing Fixed Asset Availability” means $5,100,000 as of any date of determination; which amount shall be reduced by
$100,000 on the first day of each month beginning on May 1, 2017. 
 “Existing Loan Documents” shall have the meaning
set forth in the Recitals. 
 “Existing Loans” shall have the meaning set forth in the Recitals. 

“Existing Note” means that certain Tenth Amended and Restate Revolving Note, dated as of March 16, 2017 by and among
Lender, each Borrower, and each Guarantor. 
 “Existing Obligations” shall have the meaning set forth in the Recitals. 

“Federal Insurance Company” means Federal Insurance Company, an Indiana corporation, or any of its Affiliates or
Subsidiaries. 
 “Federal Insurance Company and Liberty Mutual Intercreditor” means an Intercreditor Agreement entered into
after August 9, 2012 by and among Lender, Federal Insurance Company, Liberty Mutual and certain Loan Parties, in form and substance satisfactory to Lender in its sole and absolute discretion, as the same may be amended, amended and restated or
otherwise modified from time to time. 
 “Fixed Asset Availability” means, as of any date of determination, the lesser of
(a) $4,000,000, (b) the amount that Administrative Borrower elects to include as Fixed Asset Availability on the first Borrowing Base Certificate delivered after the Closing Date that includes an amount for “Fixed Asset Availability”, or
(c) eighty- five percent (85%) of the Net Orderly Liquidation Value of all Eligible Equipment as set forth in the NOLV Appraisal most recently delivered to Lender prior to the first inclusion of an amount for “Fixed Asset
Availability” on the first Borrower Base Certificate after the Closing Date that includes an amount for “Fixed Asset Availability”, which amount shall be reduced by 1/60 on a monthly basis beginning on the first day of the first month
after the first inclusion of any amount for “Fixed Asset Availability” on the first Borrowing Base Certificate after the Closing Date; provided, that “Fixed Asset Availability” shall be $0.00 at all times either
(a) Administrative Borrower has not yet elected after the Closing Date to include an amount for “Fixed Asset Availability” on a Borrowing Base Certificate or (b) after March 31, 2018, if Administrative Borrower has not
elected to include an amount for “Fixed Asset Availability” on a Borrowing Base Certificate prior to such date. 
 “Fixed
Charge Coverage Ratio” means, with respect to Borrowers and their Subsidiaries on a consolidated basis, for the trailing twelve-month period preceding any date of determination, the ratio of (i) EBITDA for such period, minus (a) Non-Financed Capital Expenditures made (to the extent not already incurred in a prior period) or incurred during such period, (b) cash taxes paid during such period, to the extent greater than zero,
and (c) all 

  
 Schedule 1.1 

Page 18 

 
Restricted Junior Payments consisting of Pass-Through Tax Liabilities to (ii) Fixed Charges for such period; provided, that if any Loan Party makes an Acquisition after the Closing
Date consented to by Lender, the components of this Fixed Charge Coverage Ratio shall be calculated for such fiscal period after giving pro forma effect thereto assuming that such transaction has occurred on the first day of such period
(including pro forma adjustments arising out of events which are directly attributable to such Acquisition, are factually supportable, and are expected to have a continuing impact, in each case to be reasonably agreed to by Lender). 

“Fixed Charges” means, with respect to any fiscal period and with respect to Borrowers and their Subsidiaries determined on a
consolidated basis in accordance with GAAP, the sum, without duplication, of (a) cash Interest Expense paid during such period (other than interest paid-in-kind,
amortization of financing fees, and other non-cash Interest Expense), (b) principal payments paid in cash in respect of Indebtedness (other than Advances) paid during such period, including cash payments with
respect to Capital Leases, (c) any management, consulting, monitoring, and advisory fees paid to an Affiliate (whether or not permitted hereunder), and (d) all Restricted Junior Payments (other than Pass-Through Tax Liabilities) and other
distributions paid in cash during such period. 
 “Fixtures” means fixtures (as that term is defined in the Code). 

“Funding Date” means the date on which a Borrowing occurs. 

“GAAP” means generally accepted accounting principles as in effect from time to time in the United States, consistently
applied; provided, however, that all calculations relative to liabilities shall be made without giving effect to Statement of Financial Accounting Standards No. 159. 

“General Intangibles” means general intangibles (as that term is defined in the Code), and includes payment intangibles,
contract rights, rights to payment, rights under Hedge Agreements (including the right to receive payment on account of the termination (voluntarily or involuntarily) of any such Hedge Agreements), rights arising under common law, statutes, or
regulations, choses or things in action, goodwill, Intellectual Property, Intellectual Property Licenses, purchase orders, customer lists, monies due or recoverable from pension funds, route lists, rights to payment and other rights under any
royalty or licensing agreements, including Intellectual Property Licenses, infringement claims, pension plan refunds, pension plan refund claims, insurance premium rebates, tax refunds, and tax refund claims, interests in a partnership or limited
liability company which do not constitute a security under Article 8 of the Code, and any other personal property other than Commercial Tort Claims, money, Accounts, Chattel Paper, Deposit Accounts, Goods, Investment Related Property, Negotiable
Collateral, and oil, gas, or other minerals before extraction. 
 “General Reserve” shall mean an amount equal to
$4,000,000, which amount shall be reduced by $1,000,000 upon Borrowers’ Fixed Charge Coverage Ratio exceeding 1.0 to 1.0 as of the last day of any fiscal year (as demonstrated in audited financial statements delivered in accordance with
Schedule 6.1 hereof), effective as of five (5) Business Days after delivery of such financial statements. 

  
 Schedule 1.1 

Page 19 

 “Goods” means goods (as that term is defined in the Code). 

“Governing Documents” means, with respect to any Person, the certificate or articles of incorporation, by-laws, or other organizational documents of such Person. 
 “Governmental Authority”
means any federal, state, local, or other governmental or administrative body, instrumentality, board, department, or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar dispute-resolving panel
or body. 
 “Guarantors” means IES Shared Services, Inc., a Delaware corporation; IES Tangible Properties, Inc., a Delaware
corporation; IES Consolidation, LLC, a Delaware limited liability company; IES Properties, Inc., a Delaware corporation; Key Electrical Supply, Inc., a Texas corporation; IES Operations Group, Inc., a Delaware corporation; ICS Holdings LLC, an
Arizona limited liability company; and each other Person that becomes a guarantor after the Closing Date or otherwise executes and delivers a Guaranty pursuant to Section 6.16, and each of them is a “Guarantor”.

 “Guaranty” means that certain general continuing guaranty, dated as of even date with this Agreement, executed and
delivered by each Guarantor in favor of Lender in form and substance reasonably satisfactory to Lender and any other guaranty agreement delivered at any time by a Guarantor in favor of Lender, and all of such guaranties are, collectively, the
“Guaranties”. 
 “HK Engine” means HK ENGINE COMPONENTS, LLC, an Indiana limited liability company. 

“Hazardous Materials” means (a) substances that are defined or listed in, or otherwise classified pursuant to, any
applicable laws or regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,” or any other formulation intended to define, list, or classify substances by reason of
deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling
fluids, produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances or explosives or any radioactive materials, and
(d) asbestos in any form or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million. 

“Hedge Agreement” means a “swap agreement” as that term is defined in Section 101(53B)(A) of the Bankruptcy Code.

 “Hedge Obligations” means any and all obligations or liabilities, whether direct or indirect, absolute or contingent,
liquidated or unliquidated, determined or undetermined, voluntary or involuntary, due, not due or to become due, incurred in the past or now existing or hereafter arising, however arising of any Borrower or any of its Subsidiaries arising under,
owing pursuant to, or existing in respect of Hedge Agreements entered into with Lender or another Bank Product Provider. 

  
 Schedule 1.1 

Page 20 

 “IES Renewable” means IES Renewable Energy, LLC, a Delaware limited liability
company. 
 “IES Residential” means IES Residential Inc., a Delaware corporation. 

“IES Subsidiary” means IES Subsidiary Holdings, Inc., a Delaware corporation. 

“Indebtedness” as to any Person means, without duplication, (a) all obligations of such Person for borrowed money,
(b) all obligations of such Person evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, or other financial products, (c) all
obligations of such Person as a lessee under Capital Leases, (d) all obligations or liabilities of others secured by a Lien on any asset of such Person, irrespective of whether such obligation or liability is assumed, (e) all obligations
of such Person to pay the deferred purchase price of assets (other than trade payables incurred in the ordinary course of business and repayable in accordance with customary trade practices), (f) all obligations of such Person owing under Hedge
Agreements (which amount shall be calculated based on the amount that would be payable by such Person if the Hedge Agreement were terminated on the date of determination), (g) any Prohibited Preferred Stock of such Person, and (h) any
obligation of such Person guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person that
constitutes Indebtedness under any of clauses (a) through (g) above. For purposes of this definition, (i) the amount of any Indebtedness represented by a guaranty or other similar instrument shall be the lesser of the principal amount of
the obligations guaranteed and still outstanding and the maximum amount for which the guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Indebtedness, and (ii) the amount of any Indebtedness described in
clause (d) above shall be the lower of the amount of the obligation and the fair market value of the assets of such Person securing such obligation. 

“Indemnified Liabilities” has the meaning specified therefor in Section 11.3. 

“Indemnified Person” has the meaning specified therefor in Section 11.3. 

“Information Certificate” means the Information Certificate completed and executed by the Loan Parties attached hereto as
Exhibit E. 
 “Insolvency Proceeding” means any proceeding commenced by or against any Person under any provision of
the Bankruptcy Code or under any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, receiverships, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking
reorganization, arrangement, or other similar relief. 
 “Insurance Premium Lender” shall have the meaning set forth in the
definition of Permitted Insurance Premium Indebtedness. 
 “Insurance Premium Loan Documents” shall have the meaning set
forth in the definition of Permitted Insurance Premium Indebtedness. 

  
 Schedule 1.1 

Page 21 

 “Intellectual Property” means any and all Patents, Copyrights, Trademarks, trade
secrets, know-how, inventions (whether or not patentable), algorithms, software programs (including source code and object code), processes, product designs, industrial designs, blueprints, drawings, data,
customer lists, URLs and domain names, specifications, documentations, reports, catalogs, literature, and any other forms of technology or proprietary information of any kind, including all rights therein and all applications for registration or
registrations thereof. 
 “Intellectual Property Licenses” means, with respect to any Person (the “Specified
Party”), (a) any licenses or other similar rights provided to the Specified Party in or with respect to Intellectual Property owned or controlled by any other Person, and (b) any licenses or other similar rights provided to any other
Person in or with respect to Intellectual Property owned or controlled by the Specified Party, in each case, including (i) any software license agreements (other than license agreements for commercially available
off-the-shelf software that is generally available to the public which have been licensed to the Specified Party pursuant to
end-user licenses), (ii) the license agreements listed on Schedule 5.26(b) to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from
transactions permitted under this Agreement), and (iii) the right to use any of the licenses or other similar rights described in this definition in connection with the enforcement of the Lender’s rights under the Loan Documents. 

“Interest Expense” means, for any period, the aggregate of the interest expense of Borrowers and their Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP. 
 “Interest Rate” means an interest rate equal to
Daily Three Month LIBOR, which interest rate shall change whenever Daily Three Month LIBOR changes. 
 “Interest Rate
Margin” means, 
 (a)    As of any date of determination (with respect to any portion of the outstanding
Advances on such date), the applicable margin set forth in the following table that corresponds to the most recent Liquidity calculations delivered to Lender pursuant to Section 6.1 and accepted by Lender in its Permitted
Discretion; provided, however, upon the occurrence and during the continuation of an Event of Default, the Interest Rate Margin shall be the margin set forth below as “Level I” until the next Interest Rate Margin
Redetermination Date (as defined below) after the existence of such Event of Default. 
  

					
	 Level
	  	 Liquidity/Excess Availability/

Fixed Charge Coverage Ratio
	  	 Interest Rate Margin

	 I
	  	If Liquidity is less than thirty-five percent (35%) of the Maximum Revolver Amount at any time during such period	  	2.25 percentage points
	II	  	If Liquidity is greater than or equal to thirty-five percent (35%) of the Maximum Revolver Amount at all times during such period and less than fifty percent (50%) of the Maximum Revolver Amount at any time during such
period	  	2.00 percentage points
	III	  	If Liquidity is greater than or equal to fifty percent (50%) of the Maximum Revolver Amount at all times during such period	  	1.75 percentage points

  
 Schedule 1.1 

Page 22 

 Except as set forth in the foregoing proviso, the Interest Rate Margin shall be
re-determined quarterly on the first Business Day of each calendar quarter (such date being the “Interest Rate Margin Redetermination Date”) based upon the Liquidity for the immediately
preceding calendar quarter. In the event that the information contained in any certificate delivered pursuant to Section 6.1 of the Agreement is shown to be inaccurate, and such inaccuracy, if corrected, would have led to
the application of a higher Interest Rate Margin for any period than the Interest Rate Margin actually applied for such interest rate period, then (a) Borrowers shall immediately deliver to Lender a correct certificate for such period,
(b) the Interest Rate Margin shall be determined as if the correct Interest Rate Margin (as set forth in the table above) were applicable for such period, and (c) Borrowers shall immediately deliver to Lender full payment in respect of the
accrued additional interest as a result of such increased Interest Rate Margin for such interest rate period, which payment shall be promptly applied by Lender to the affected Obligations. In the event that the information contained in any
certificate delivered pursuant to Section 6.1 of the Agreement reflects that an Event of Default existed as of the Interest Rate Margin Redetermination Date, (a) the Interest Rate Margin shall be determined as if the
Interest Rate Margin set forth above as “Level I” were applicable as the first date of the existence of such Event of Default and (b) Borrowers shall immediately deliver to Lender full payment in respect of the accrued additional
interest as a result of such increased Interest Rate Margin for such interest rate period, which payment shall be promptly applied by Lender to the affected Obligations. In the event the Borrowers fail to timely deliver any certificate, report or
other documentation necessary for determination of the Interest Rate Margin, the Interest Rate Margin shall be the margin set forth above as “Level I” from the date of such failure until the next Interest Rate Margin Redetermination Date.

 “Inventory” means inventory (as that term is defined in the Code). 

“Investment” means, with respect to any Person, any investment by such Person in any other Person (including Affiliates) in
the form of loans, guarantees, advances, capital contributions (excluding (a) commission, travel, and similar advances to officers and employees of such Person made in the ordinary course of business not to exceed $250,000 in the aggregate
during any fiscal year of Borrowers, and (b) bona fide Accounts arising in the ordinary course of business), or acquisitions of Indebtedness, Stock, or all or substantially all of the assets of such other Person (or of any division or business
line of such other Person), and any other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. 

  
 Schedule 1.1 

Page 23 

 “Investment Related Property” means (a) any and all investment property (as
that term is defined in the Code), and (b) any and all of the following (regardless of whether classified as investment property under the Code): all Pledged Interests, Pledged Operating Agreements, and Pledged Partnership Agreements. 

“IRC” means the Internal Revenue Code of 1986, as in effect from time to time. 

“ISP98” means the International Standby Practices (1998 Revision, effective January 1, 1999), International Chamber of
Commerce Publication No. 590. 
 “Job Site” any site specified in a contract where any Borrower is to perform the
specialized electrical and communication services required thereunder, including all other labor, materials, equipment and services provided or to be provided to fulfill its obligations thereunder. 

“Lender” has the meaning specified therefor in the preamble to this Agreement and its successors and assigns. 

“Lender Expenses” means all (a) reasonable costs or expenses (including taxes, and insurance premiums) required to be
paid by any Loan Party or any of its Subsidiaries or any Guarantor under any of the Loan Documents that are paid, advanced, or incurred by Lender, (b) reasonable
out-of-pocket fees or charges paid or incurred by Lender in connection with Lender’s transactions with any Loan Party or any of its Subsidiaries under any of the
Loan Documents, including, fees or charges for photocopying, notarization, couriers and messengers, telecommunication, public record searches (including tax lien, judgment lien, litigation, bankruptcy and Code searches and including searches with
the patent and trademark office, the copyright office, or the department of motor vehicles), filing, recording, publication, appraisal (including periodic collateral appraisals or business valuations to the extent of the fees and charges (and up to
the amount of any limitation contained in this Agreement), real estate surveys, real estate title insurance policies and endorsements, and environmental audits, (c) Lender’s customary fees and charges (as adjusted from time to time) with
respect to the disbursement of funds (or the receipt of funds) to or for the account of Borrowers (whether by wire transfer or otherwise), together with any out of pocket costs and expenses incurred in connection therewith, (d) out-of-pocket charges paid or incurred by Lender resulting from the dishonor of checks payable by or to any Loan Party, (e) reasonable out-of-pocket costs and expenses paid or incurred by Lender to correct any default or enforce any provision of the Loan Documents, or during the continuance of an Event of
Default, in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated, (f) fees and
expenses to initiate electronic reporting by Borrowers to Lender, (g) reasonable out-of-pocket examination fees and expenses (including reasonable travel, meals,
and lodging) of Lender related to any inspections, examinations, audits or appraisals to the extent of the fees and charges (and up to the amount of any limitation) contained in this Agreement, (h) reasonable out-of-pocket costs and expenses of third party claims or any other suit paid or incurred by Lender in enforcing or defending the Loan Documents or in connection with the transactions contemplated by the Loan
Documents or Lender’s relationship with any Loan Party or any of its Subsidiaries, (i) Lender’s reasonable costs and expenses (including reasonable attorneys’ fees) incurred in advising, structuring, drafting, reviewing,
administering (including reasonable travel, meals, and lodging), 

  
 Schedule 1.1 

Page 24 

 
or amending the Loan Documents, (j) Lender’s reasonable costs and expenses (including reasonable attorneys, accountants, consultants, and other advisors fees and expenses) incurred in
terminating, enforcing (including reasonable attorneys, accountants, consultants, and other advisors fees and expenses incurred in connection with a “workout,” a “restructuring,” or an Insolvency Proceeding concerning any Loan
Party or any of its Subsidiaries or in exercising rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether suit is brought, or in taking any Remedial Action concerning the Collateral, and (k) usage
charges, charges, fees, costs and expenses for amendments, renewals, extensions, transfers, or drawings from time to time imposed by Lender in respect of Letters of Credit and
out-of-pocket charges, fees, costs and expenses paid or incurred by Lender in connection with the issuance, amendment, renewal, extension, or transfer of, or drawing
under, any Letter of Credit or any demand for payment thereunder. 
 “Lender Representatives” has the meaning specified
therefor in Section 17.8(a). 
 “Lender-Related Persons” means Lender, together with its Affiliates, officers,
directors, employees, attorneys, and agents. 
 “Lender’s Liens” mean the Liens granted by Borrowers and their
Subsidiaries to Lender under the Loan Documents. 
 “Letter of Credit” means a letter of credit (as that term is defined in
the Code) issued by Lender. 
 “Letter of Credit Agreements” means a Letter of Credit Application, together with any and
all related letter of credit agreements pursuant to which Lender agrees to issue, amend, or extend a Letter of Credit, or pursuant to which Borrowers agree to reimburse Lender for all Letter of Credit Disbursements, each such application and related
agreement to be in the form specified by Lender from time to time. 
 “Letter of Credit Application” means an application
requesting Lender to issue, amend, or extend a Letter of Credit, each such application to be in the form specified by Lender from time to time. 

“Letter of Credit Collateralization” means either (a) providing cash collateral (pursuant to documentation reasonably
satisfactory to Lender, including provisions that specify that the Letter of Credit fee and all usage charges set forth in this Agreement and the Letter of Credit Agreements will continue to accrue while the Letters of Credit are outstanding) to be
held by Lender for the benefit of Lender in an amount equal to one hundred five percent (105%) of the then existing Letter of Credit Usage, (b) delivering to Lender the original of each Letter of Credit, together with documentation executed by
all beneficiaries under each Letter of Credit in form and substance acceptable to Lender terminating all of such beneficiaries’ rights under such Letters of Credit, or (c) providing Lender with a standby letter of credit, in form and
substance reasonably satisfactory to Lender, from a commercial bank acceptable to Lender (in its sole discretion) in an amount equal to one hundred five percent (105%) of the then existing Letter of Credit Usage (it being understood that the Letter
of Credit fee and all usage charges set forth in this Agreement will continue to accrue while the Letters of Credit are outstanding and that any such fees that accrue must be an amount that can be drawn under any such standby letter of credit). 

  
 Schedule 1.1 

Page 25 

 “Letter of Credit Disbursement” means a payment made by Lender pursuant to a
Letter of Credit. 
 “Letter of Credit Usage” means, as of any date of determination, the sum of (i) the aggregate
undrawn amount of all outstanding Letters of Credit, and (ii) the aggregate amount of outstanding reimbursement obligations with respect to Letters of Credit which remain unreimbursed or which have not been paid through an Advance under the
Revolving Credit Facility. 
 “Liberty Mutual” means Safeco Insurance Company of America, a Washington corporation or any
of its Affiliates or Subsidiaries. 
 “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge,
deposit arrangement, encumbrance, easement, lien (statutory or other), security interest, or other security arrangement and any other preference, priority, or preferential arrangement of any kind or nature whatsoever, including any conditional sale
contract or other title retention agreement, the interest of a lessor under a Capital Lease and any synthetic or other financing lease having substantially the same economic effect as any of the foregoing. 

“Liquidity” means, as of any date of determination, the sum of (a) Borrowers’ Qualified Cash and (b) Excess
Availability. 
 “Loan Account” has the meaning specified therefor in Section 2.8. 

“Loan Documents” means this Agreement, any Borrowing Base Certificate, the Control Agreements, the Cash Management Documents,
the Guaranty, the Federal Insurance and Liberty Mutual Intercreditor, the Everest Intercreditor, the Chartis Intercreditor, any intercreditor agreement entered into after the Third Amendment Closing Date in form and substance satisfactory to
Lender, the Letters of Credit, each Patent and Trademark Security Agreement, any Copyright Security Agreement, the Omnibus Reaffirmation, any Letter of Credit Applications and other Letter of Credit Agreements entered into by any Borrower in
connection with the Existing Credit Agreement, and any other instrument or agreement entered into, now or in the future, by any Loan Party or any of its Subsidiaries and Lender in connection with this Agreement, but specifically excluding all Hedge
Agreements. 
 “Loan Management Service” means Lender’s proprietary automated loan management program currently known
as “Loan Manager” and any successor service or product of Lender which performs similar services. 
 “Loan
Parties” means collectively, each Borrower and each Guarantor and each of them is a “Loan Party”. 

“Lockbox” means “Lockbox” as defined and described in the Cash Management Documents. 

  
 Schedule 1.1 

Page 26 

 “Margin Stock” as defined in Regulation U of the Board of Governors of the
Federal Reserve System as in effect from time to time. 
 “Material Adverse Change” means (a) a material adverse
change in the business, operations, results of operations, assets, liabilities or condition (financial or otherwise) of the Borrowers, Loan Parties and their Subsidiaries taken as a whole, (b) a material impairment of the ability of any
Borrower or any Loan Party to perform its obligations under the Loan Documents to which it is a party or of the Lender’s ability to enforce the Obligations or realize upon the Collateral, (c) a material impairment of the enforceability or
priority of Lender’s Liens with respect to the Collateral as a result of an action or failure to act on the part of any Borrower any Loan Party or its Subsidiaries, or (d) any claim is made against any Borrower or any Loan Party which if
determined adversely to any Borrower any Loan Party or any of its Subsidiaries, would result in the occurrence of an event described in clauses (a), (b) or (c) above. 

“Material Contract” means, an agreement to which a Loan Party is a party (other than the Loan Documents (i) which is
deemed to be a material contract as provided in Regulation S-K promulgated by the SEC under the Securities Act of 1933 or (ii) for which breach, termination, cancellation, nonperformance or failure to
renew could reasonably be expected to result in a Material Adverse Change. 
 “Maturity Date” has the meaning specified
therefor in Section 2.9. 
 “Maximum Credit” means $100,000,000. 

“Maximum Revolver Amount” means mean $100,000,000, less permanent reductions in such amount made in accordance with
Section 2.11. 
 “Moody’s” has the meaning specified therefor in the definition of Cash
Equivalents. 
 “Negotiable Collateral” means letters of credit, letter-of-credit rights, instruments, promissory notes, drafts and documents (as each such term is defined in the Code). 

“Net Forced Liquidation Value” shall mean, as to Eligible Equipment, at any time, the value of such Eligible Equipment,
determined on a forced liquidation basis, reduced by such commissions, fees, costs and expenses as may be reasonably expected in connection with the liquidation thereof, as set forth in the most recent appraisal delivered, at the sole cost and
expense of Borrowers, to Lender, as to the Eligible Equipment, in form, scope, and methodology acceptable to Lender in its Permitted Discretion and performed by an appraiser acceptable to Lender in its Permitted Discretion, addressed to Lender and
upon which Lender is permitted to rely. 
 “Net Liquidation Percentage” means the percentage of the Value of a
Borrower’s Inventory that is estimated to be recoverable in an orderly liquidation of such Inventory as set forth in the most recent acceptable appraisal received by Lender and upon which Lender may rely, net of all operating expenses and
associated costs and expenses of such liquidation, such percentage to be as determined from time to time by an appraisal company selected or approved by Lender with such most recent acceptable appraisal to be in form, scope, methodology and content
acceptable to Lender. 

  
 Schedule 1.1 

Page 27 

 “Net Loss” means fiscal year-to-date after-tax net loss from continuing operations as determined in accordance with GAAP. 

“Net Orderly Liquidation Value” means dollar amount that is estimated to be recoverable in an orderly liquidation of
Borrowers’ Eligible Equipment as set forth in the most recent acceptable NOLV Appraisal received by Lender and upon which Lender may rely, such value to be calculated net of all operating expenses and associated costs and expenses of such
liquidation. 
 “NOLV Appraisal” means an on-site appraisal or desk-top update to such an appraisal, as applicable, conducted to determine the Net Orderly Liquidation Value of the Borrowers’ Eligible Equipment; such appraisal to be conducted (whether on-site or through desk-top update) from time to time by an appraisal company acceptable to Lender in its sole discretion, which appraisal shall be conducted in accordance
with Lender’s requirements and otherwise in form, scope, methodology and content acceptable to Lender. 
 “Non-Financed Capital Expenditures” means Capital Expenditures not financed by the seller of the capital asset, by a third party lender or by means of any extension of credit by Lender other than by means of
an Advance under the Revolving Credit Facility. 
 “Obligations” means (a) all loans (including the Advances), debts,
principal, interest (including any interest that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), reimbursement or
indemnification obligations with respect to Letters of Credit (irrespective of whether contingent), premiums, liabilities (including all amounts charged to the Loan Account pursuant to this Agreement), obligations (including indemnification
obligations), fees, Lender Expenses (including any fees or expenses that accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding),
guaranties, and all covenants and duties of any other kind and description in each case owing by any Loan Party to Lender or its Affiliates or any Bank Product Provider or its Affiliates pursuant to or evidenced by this Agreement or any of the other
Loan Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, liquidated or unliquidated, determined or undetermined, voluntary or involuntary, due, not due or to become due, sole, joint,
several or joint and several, incurred in the past or now existing or hereafter arising, however arising, and including all interest not paid when due, and all other expenses or other amounts that any Borrower or any other Loan Party is required to
pay or reimburse by the Loan Documents or by law or otherwise in connection with the Loan Documents, and (b) all Bank Product Obligations. Any reference in this Agreement or in the Loan Documents to the Obligations shall include all or any
portion thereof and any extensions, modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding. Notwithstanding the foregoing, “Obligations” shall not include any Excluded Hedge Obligations.

  
 Schedule 1.1 

Page 28 

 “OFAC” means The Office of Foreign Assets Control of the U.S. Department of the
Treasury. 
 “Omnibus Reaffirmation” means that certain Omnibus Reaffirmation of Loan Documents dated as of the Closing
Date, by and among each of the Loan Parties party thereto and Lender. 
 “Original Closing Date” means September 24,
2014. 
 “Overadvance Amount” has the meaning specified therefor in Section 2.4(f). 

“Parent” means IES Holdings, Inc., a Delaware corporation. 

“Pass-Through Tax Liabilities” means the amount of state and federal income tax paid or to be paid by the owner of any Stock
in a Borrower on taxable income earned by a Borrower and attributable to such owner of Stock as a result of such Borrower’s “pass-through” tax status, assuming the highest marginal income tax rate for federal and state (for the state
or states in which any owner of Stock is liable for income taxes with respect to such income) income tax purposes, after taking into account any deduction for state income taxes in calculating the federal income tax liability and all other
deductions, credits, deferrals and other reductions available to such owners of Stock from or through such Borrower. 

“Patents” means patents and patent applications, including (i) the patents and patent applications listed on Schedule
5.26(b) to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement), (ii) all continuations, divisionals, continuations-in-part, re-examinations, reissues, and renewals thereof and improvements thereon, (iii) all income, royalties, damages and payments now and
hereafter due or payable under and with respect thereto, including payments under all licenses entered into in connection therewith and damages and payments for past, present, or future infringements thereof, (iv) the right to sue for past,
present, and future infringements thereof, and (v) all of each Loan Party’s rights corresponding thereto throughout the world. 

“Patent and Trademark Security Agreement” means each Patent and Trademark Security Agreement executed and delivered by the
applicable Loan Party in favor of Lender, in form and substance acceptable to Lender. 
 “Patriot Act” has the meaning
specified therefor in Section 5.18 of Exhibit D to this Agreement. 
 “Pension Plan” means
a pension plan (as defined in Section 3(2) of ERISA) maintained for employees of any Borrower or any of its Subsidiaries or any ERISA Affiliate and covered by Title IV of ERISA. 

“Permitted Discretion” means a determination made in the exercise of the good faith judgment of Lender. 

  
 Schedule 1.1 

Page 29 

 “Permitted Dispositions” means: 

(a)    sales, abandonment, or other dispositions of Equipment that is substantially worn, damaged, or obsolete in the
ordinary course of business or no longer required in the ordinary course of business; 
 (b)    sales of Inventory to
buyers in the ordinary course of business; 
 (c)    the granting of Permitted Liens; 

(d)    the making of a Restricted Junior Payment that is expressly permitted to be made pursuant to this Agreement; 

(e)    the making of a Permitted Investment; and 

(f)    other dispositions which do not exceed $500,000 in any fiscal year in the aggregate. 

“Permitted Earnout Indebtedness” shall mean unsecured liabilities of a Loan Party arising under an agreement to make any
deferred payment as a part of the purchase price for an Acquisition, including performance bonuses or consulting payments in any related services, employment or similar agreement, in an amount that is subject to or contingent upon the revenues,
income, cash flow or profits (or the like) of the target of such Acquisition. 
 “Permitted Holdback Indebtedness” shall
mean unsecured liabilities of a Loan Party, arising under an Acquisition agreement to pay the seller on a deferred basis the residual value of any portion of the purchase price that was held back in the agreement, in a fixed amount over a defined
period, in order to support the seller’s indemnification or other obligations over that period. 
 “Permitted Holder”
means Tontine. 
 “Permitted Indebtedness” means: 

(a)    Indebtedness evidenced by this Agreement or the other Loan Documents; 

(b)    Indebtedness set forth on Schedule 5.19 to the Information Certificate and any Refinancing Indebtedness in
respect of such Indebtedness; 
 (c)    Permitted Purchase Money Indebtedness and any Refinancing Indebtedness in
respect of such Indebtedness; 
 (d)    endorsement of instruments or other payment items for deposit; 

(e)    the incurrence by any Borrower of Indebtedness under Hedge Agreements that are incurred for the bona fide purpose
of hedging the interest rate, commodity, or foreign currency risks associated with such Borrower’s operations and not for speculative purposes; 

  
 Schedule 1.1 

Page 30 

 (f)    Indebtedness incurred in respect of Bank Products other than pursuant
to Hedge Agreements; 
 (g)    Indebtedness constituting Permitted Investments; 

(h)    Indebtedness in the form of reimbursement obligations for Surety Bonds procured in ordinary course of business
consistent with past practices, provided such Surety Bonds are issued pursuant to a bonding program acceptable to Lender; 

(i)    Indebtedness consisting of Permitted Insurance Premium Financing Indebtedness; 

(j)    Permitted Earnout Indebtedness; 

(k)    Permitted Holdback Indebtedness; and 

(l)    other unsecured Indebtedness in an amount that shall not exceed $500,000 in the aggregate at any time. 

“Permitted Insurance Premium Financing Indebtedness” means (a) Indebtedness evidenced by that certain insurance premium
financing agreement with Aon Premium Finance, LLC dated as of November 1, 2011 and (b) Indebtedness arising under or in connection with the financing by any Loan Party of any insurance premiums, in which the insurance premium financier
(the “Insurance Premium Lender”) has agreed in writing for the benefit of Lender that (i) the Insurance Premium Lender shall provide Lender with thirty (30) days prior written notice of any intended cancellation of a
financed insurance policy (such notice to include a brief description of the grounds for cancellation and the actions necessary to cure any breach or default), (ii) Lender shall have the right, but not the obligation, to cure any breach or default
by the Loan Parties under the insurance premium financing arrangement (the “Insurance Premium Loan Documents”) (and any fees, expenses, costs, or other sums paid by Lender to effectuate such a cure shall constitute a Protective
Advance), (iii) any Lien of such Insurance Premium Lender is at all times junior in priority to the Liens in favor of Lender (except with respect to unearned premiums or otherwise to the extent such Liens have priority under applicable law), and
(iv) if the Insurance Premium Lender sells, assigns, or otherwise transfers the Insurance Premium Loan Documents or the loan represented by the Insurance Premium Loan Documents, whether in whole or in part, the Insurance Premium Lender shall
require that any such purchaser, assignee, or transferee agrees (in writing) to be bound by the foregoing terms and conditions. 

“Permitted Intercompany Advances” means loans made by (a) a Loan Party to a Borrower, (b) a Borrower to a Loan
Party in an amount of up to $500,000 in the aggregate at any time, (c) a Subsidiary of a Loan Party which is not a Loan Party to another Subsidiary of a Loan Party which is not a Loan Party, or (c) a Subsidiary of a Loan Party which is not
a Loan Party to a Loan Party, in each case, unless Lender otherwise agrees, so long as the parties thereto are party to an intercompany subordination agreement with Lender and/or the rights of the lending party with respect thereto have been
collaterally assigned to Lender, in each case, in form and substance satisfactory to Lender in its Permitted Discretion. 

  
 Schedule 1.1 

Page 31 

 “Permitted Investments” means: 

(a)    Investments in cash and Cash Equivalents; 

(b)    Investments in negotiable instruments deposited or to be deposited for collection in the ordinary course of
business; 
 (c)    advances made in connection with purchases of Goods or services in the ordinary course of business;

 (d)    Investments owned by any Loan Party or any of its Subsidiaries on the Closing Date and set forth on
Schedule P-1; 
 (e)    Permitted Intercompany Advances; 

(f)    Investments resulting from entering into Bank Product Agreements; 

(g)    Investments in an original amount not to exceed $20,000,000 in the aggregate for all Loan Parties in marketable
securities, subject to limitations imposed by the board of directors of Parent from time to time (provided, that for the avoidance of doubt, no Investment by any Loan Party made pursuant to this clause (g) shall be included in the calculation
of “Liquidity” unless such Investment meets the definition of Cash Equivalent); 
 (h)    Investments in an
original amount not to exceed $10,000,000 in the aggregate for all Loan Parties in non-marketable securities, subject to limitations imposed by the board of directors of Parent from time to time (provided,
that for the avoidance of doubt, no Investment by any Loan Party made pursuant to this clause (h) shall be included in the calculation of “Liquidity” unless such Investment meets the definition of Cash Equivalent), and provide that
the sum of Investments in marketable and non-marketable securities in clauses (g) and (h) do not exceed $ 20,000,000 in the aggregate; 

(i)    Investments (including contributions pursuant to Section 7.12(e)), by IES Commercial or another Loan Party
consisting of eighty percent (80%) of the membership interests of STR Mechanical, or such greater amount owned by IES Commercial or another Loan Party from time to time (provided, that IES Commercial or another Loan Party shall deliver an updated
Pledged Interest Addendum pursuant to Section 5.26(d) of Exhibit D for any additional interest held in STR Mechanical following the Closing Date). 

“Permitted Liens” means 

(a)    Liens granted to, or for the benefit of, Lender to secure the Obligations; 

(b)    Liens for unpaid taxes, assessments, or other governmental charges or levies that either (i) are not yet
delinquent, or (ii) the underlying taxes, assessments, or charges or levies are the subject of Permitted Protests; 

(c)    judgment Liens arising solely as a result of the existence of judgments, orders, or awards that do not constitute
an Event of Default under Section 9.3; 

  
 Schedule 1.1 

Page 32 

 (d)    Liens set forth on Schedule
P-2; provided, however, that to qualify as a Permitted Lien, any such Lien described on Schedule P-2 shall only secure the Indebtedness that it
secures on the Closing Date and any Refinancing Indebtedness in respect thereof; 
 (e)    the interests of lessors
under operating leases and non-exclusive licensors under license agreements; 

(f)    purchase money Liens or the interests of lessors under Capital Leases to the extent that such Liens or interests
secure Permitted Purchase Money Indebtedness and so long as (i) such Lien attaches only to the asset purchased or acquired and the proceeds thereof, and (ii) such Lien only secures the Indebtedness that was incurred to acquire the asset
purchased or acquired or any Refinancing Indebtedness in respect thereof; 
 (g)    Liens that are replacements of
Permitted Liens to the extent that the original Indebtedness is the subject of permitted Refinancing Indebtedness and so long as the replacement Liens only encumber those assets that secured the original Indebtedness; 

(h)    [Reserved], 

(i)    Liens in favor of Sureties in the Surety Collateral securing reimbursement obligations for Surety Bonds procured by
a Borrower in the ordinary course of business consistent with past practices pursuant to a bonding program acceptable to Lender; provided, that such Surety has, pursuant to documentation satisfactory to Lender in the good faith exercise of
its credit judgment: (a) agreed not to require segregation of funds as to its Bonded Collateral without the prior written consent of Lender (though Federal Insurance Company, Everest, Liberty Mutual, Chartis, and any other Surety (so long as
such Surety has entered into an intercreditor agreement with Lender in form and substance satisfactory to Lender) will be permitted such segregation upon a default under the Bonded Contract and notice to Lender from Federal Insurance Company,
Everest, Liberty Mutual, Chartis, or such other Surety, as applicable; provided, that the Federal Insurance and Liberty Mutual Intercreditor, the Everest Intercreditor, the Chartis Intercreditor, or other intercreditor agreement entered into
after the Third Amendment Closing Date in form and substance satisfactory to Lender, as applicable, is in full force and effect) and (b) (i) acknowledged and agreed that pursuant to the Loan Parties’ cash management system established in
connection with this Agreement, proceeds of the Surety Collateral, including Accounts arising from the Bonded Contracts (collectively, “Bonded Contract Proceeds”) may be commingled with proceeds of other Accounts and other Property
of Borrowers in the Collection Account and other Deposit Accounts in which Lender has, or in the future may have, security interests, Liens or other rights, and (ii) consented to such commingling and to security interests, Liens or other rights
in the Collection Account and such other Deposit Accounts, and (iii) released and waived any and all security interests and other legal and equitable rights and interests that it may then or thereafter have (as secured party, subrogee, trust
fund beneficiary, or otherwise) in or to (A) the Collection Account and such other Deposit Accounts and (B) Bonded Account Proceeds that from time to time are in the Collection Account and such other Deposit Accounts are in the possession
of Lender, that have been applied to indebtedness, liabilities or obligations from time to time owing to Lender by Borrowers, or have otherwise been removed from, set off against or applied from the Collection Account and such other Deposit
Accounts. 

  
 Schedule 1.1 

Page 33 

 (j)    Liens granted to an Insurance Premium Lender as security for Permitted
Insurance Premium Financing Indebtedness; 
 (k)    statutory Liens (excluding any Lien imposed pursuant to any of the
provisions of ERISA or any tax lien) arising in the ordinary course of business of a Loan Party or a Subsidiary, but only if and for long as (x) payment in respect of any such Lien is not yet delinquent or any such Lien is subject to a
Permitted Protest and (y) such Liens do not materially detract from the value of the assets of such Loan Party or Subsidiary and do not materially impair the use thereof in the operation of such Loan Party’s or such Subsidiary’s
business; 
 (l)    Liens securing Indebtedness under clauses (b) and (c) of the definition of Permitted
Intercompany Advances; 
 (m)    Liens incurred or deposits made in the ordinary course of business to secure the
performance of tenders, bids, leases, contracts (other than for the repayment of borrowed Indebtedness), statutory obligations and other similar obligations or arising as a result of progress payments under government contracts, provided that, to
the extent any such Liens attach to any of the Collateral, such Liens are at all times subordinate and junior to the Liens upon the Collateral in favor of Lender; 

(n)    general exceptions to title consisting of easements, rights-of-way, restrictions, covenants or other agreements of record and other similar charges or encumbrances that are on real property of such Loan Party that do not materially interfere with the ordinary
conduct of the business of such Loan Party or such Subsidiary; 
 (o)    normal and customary rights of setoff upon
deposits of cash in favor of banks and other depository institutions and Liens of a collection bank arising under the Code on checks, drafts, or other items of payment in the course of collection; and 

(p)    such other Liens as Lender in its sole discretion may hereafter approve in writing. 

“Permitted Petty Cash Account” means Borrowers’ Petty Cash Account #264267 at Bruning State Bank, provided that the
balance in such account at no time exceeds $100,000. 
 “Permitted Preferred Stock” means and refers to any Preferred Stock
issued by a Borrower (and not by one or more of its Subsidiaries) that is not Prohibited Preferred Stock. 
 “Permitted
Protest” means the right of any Borrower or any other Loan Party or any of their respective Subsidiaries to protest any Lien (other than any Lien that secures the Obligations), taxes (other than payroll taxes or taxes that are the subject
of a United States federal tax lien), or rental payment, provided that (a) a reserve with respect to such obligation is established on books and records of such Borrower, such other Loan Party or such Subsidiary in such amount as is required
under GAAP, (b) any such protest is instituted promptly and prosecuted diligently by such Borrower, Loan Party or Subsidiary, as applicable, in good faith, and (c) Lender is satisfied that, while any such protest is pending, no such Lien
has priority over Lender’s Liens and there will otherwise be no impairment of the enforceability, validity, or priority of any of Lender’s Liens. 

  
 Schedule 1.1 

Page 34 

 “Permitted Purchase Money Indebtedness” means, as of any date of determination,
Purchase Money Indebtedness in an aggregate principal amount outstanding at any one time not in excess of $750,000. 

“Person” means natural persons, corporations, limited liability companies, limited partnerships, general partnerships,
limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof. 

“Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA) maintained for employees of any Borrower or
any of its Subsidiaries or any ERISA Affiliate. 
 “Pledged Companies” means each Person listed on Schedule 5.1(c) to
the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement) a “Pledged Company”, together with each other Person, all or a portion of
whose Stock is acquired or otherwise owned by a Loan Party. 
 “Pledged Interests” means all of each Loan Party’s
right, title and interest in and to all of the Stock now owned or hereafter acquired by such Loan Party, regardless of class or designation, including in each of the Pledged Companies, and all substitutions therefor and replacements thereof, all
proceeds thereof and all rights relating thereto, also including any certificates representing the Stock, the right to receive any certificates representing any of the Stock, all warrants, options, share appreciation rights and other rights,
contractual or otherwise, in respect thereof and the right to receive all dividends, distributions of income, profits, surplus, or other compensation by way of income or liquidating distributions, in cash or in kind, and all cash, instruments, and
other property from time to time received, receivable, or otherwise distributed in respect of or in addition to, in substitution of, on account of, or in exchange for any or all of the foregoing. 

“Pledged Interests Addendum” means a Pledged Interests Addendum substantially in the form of Exhibit F. 

“Pledged Operating Agreements” means all of each Loan Party’s rights, powers, and remedies under the limited liability
company agreements of each of the Pledged Companies that are limited liability companies. 
 “Pledged Partnership
Agreements” means all of each Borrower’s rights, powers, and remedies under the partnership agreements of each of the Pledged Companies that are partnerships. 

“Preferred Stock” means, as applied to the Stock of any Person, the Stock of any class or classes (however designated) that
is preferred with respect to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Stock of any other class of such Person. 

“Prime Rate” means at any time the rate of interest most recently announced by Lender at its principal office as its Prime
Rate, with the understanding that the Prime Rate is one 

  
 Schedule 1.1 

Page 35 

 
of Lender’s base rates, and serves as the basis upon which effective rates of interest are calculated for those loans making reference to it, and is evidenced by its recording in such
internal publication or publications as Lender may designate. Each change in the rate of interest shall become effective on the date each Prime Rate change is announced by Lender. 

“Proceeds” has the meaning specified therefor in the definition of “Collateral” set forth in Schedule 1.1.

 “Prohibited Preferred Stock” means any Preferred Stock that by its terms is mandatorily redeemable or subject to any
other payment obligation (including any obligation to pay dividends, other than dividends of shares of Preferred Stock of the same class and series payable in kind or dividends of shares of common stock) on or before a date that is less than 1 year
after the Maturity Date, or, on or before the date that is less than 1 year after the Maturity Date, is redeemable at the option of the holder thereof for cash or assets or securities (other than distributions in kind of shares of Preferred Stock of
the same class and series or of shares of common stock). 
 “Projections” means each Borrower’s forecasted
(a) balance sheets, (b) profit and loss statements, (c) Availability projections, and (d) cash flow statements, all prepared on a basis consistent with such Borrower’s historical financial statements, together with
appropriate supporting details and a statement of underlying assumptions. 
 “Protective Advance” has the meaning specified
therefor in Section 2.3(d). 
 “PTO” means the United States Patent and Trademark Office. 

“Purchase Money Indebtedness” means Indebtedness (other than the Obligations, but including Capitalized Lease Obligations),
incurred at the time of, or within twenty (20) days after, the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof. 

“Qualified Cash” means, as of any date of determination, the amount of unrestricted cash and Cash Equivalents of each
Borrower and its Subsidiaries that is in Deposit Accounts or in Securities Accounts, or any combination thereof, and which such Deposit Account or Securities Account is maintained by Lender and accordingly under the “control” Lender in
accordance with Section 9-104(a)(1) of the Code. 
 “Real Estate Availability”
means, as of any date of determination, the lesser of (a) $6,000,000, (b) the amount that Administrative Borrower elects to include as Real Estate Availability on the first Borrowing Base Certificate delivered after the Closing Date that includes an
amount for “Real Estate Availability”, or (c) sixty percent (60%) of the most recently appraised fair market value of all Real Property subject to a Lien of Lender prior to the first inclusion of an amount for “ Real Estate
Availability” on the first Borrower Base Certificate after the Closing Date that includes an amount for “Real Estate Availability”, which amount shall be reduced by 1/120 on a monthly basis beginning on the first day of the first
month after the first inclusion of any amount for “ Real Estate Availability” on the first Borrowing Base Certificate after the Closing Date; provided, that “Real Availability” shall be $0.00 at all times either
(a) Administrative Borrower has not yet elected after the Closing Date to include an amount for 

  
 Schedule 1.1 

Page 36 

 
“Real Estate Availability” on a Borrowing Base Certificate or (b) after March 31, 2018, if Administrative Borrower has not elected to include an amount for “Real Estate
Availability” on a Borrowing Base Certificate prior to such date. 
 “Real Property” means any estates or interests in
real property now owned or hereafter acquired by a Loan Party and the improvements thereto. 
 “Record” means information
that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. 

“Refinancing Indebtedness” means refinancings, renewals, or extensions of Indebtedness so long as: 

(a)    such refinancings, renewals, or extensions do not result in an increase in the principal amount of the Indebtedness
so refinanced, renewed, or extended, other than by the amount of premiums paid thereon and the fees and expenses incurred in connection therewith and by the amount of unfunded commitments with respect thereto, 

(b)    such refinancings, renewals, or extensions do not result in a shortening of the average weighted maturity (measured
as of the refinancing, renewal, or extension) of the Indebtedness so refinanced, renewed, or extended, nor are they on terms or conditions that, taken as a whole, are or could reasonably be expected to be materially adverse to the interests of
Lender, 
 (c)    if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to
the Obligations, then the terms and conditions of the refinancing, renewal, or extension must include subordination terms and conditions that are at least as favorable to the Lender as those that were applicable to the refinanced, renewed, or
extended Indebtedness, and 
 (d)    the Indebtedness that is refinanced, renewed, or extended is not recourse to any
Person that is liable on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was refinanced, renewed, or extended. 

“Remedial Action” means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate,
or in any way address Hazardous Materials in the indoor or outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or welfare
or the indoor or outdoor environment, (c) restore or reclaim natural resources or the environment, (d) perform any pre-remedial studies, investigations, or post-remedial operation and maintenance
activities, or (e) conduct any other actions with respect to Hazardous Materials in each case as required by Environmental Laws. 

“Reporting Date” means the date on which the Borrowers and their Subsidiaries are required to deliver to Lender certain
financial information as required pursuant to Section 6.1 of the Credit Agreement. 

  
 Schedule 1.1 

Page 37 

 “Reserves” means, as of any date of determination, the sum of (a) an amount
or percent of a specified item or category of items that Lender establishes from time to time in its Permitted Discretion to reduce Availability under the Borrowing Base or the Maximum Revolver Amount to reflect (i) such matters, events,
conditions, contingencies or risks which affect or which may reasonably be expected to affect the assets, business or prospects of a Borrower, any other Loan Party or the Collateral or its value or the enforceability, perfection or priority of
Lender’s Liens in the Collateral, or (ii) Lender’s judgment that any collateral report or financial information relating to a Borrower or any other Loan Party delivered to Lender is incomplete, inaccurate or misleading in any material
respect, plus (b) the Dilution Reserve and the Bank Product Reserve Amount. 
 “Restricted Junior Payment” means
(a) any declaration or payment of any dividend or the making of any other payment or distribution on account of Stock issued by any Loan Party (including any payment in connection with any merger or consolidation involving any Loan Party) or to
the direct or indirect holders of Stock issued by any Loan Party in their capacity as such (other than dividends or distributions payable in Stock (other than Prohibited Preferred Stock) issued by any Loan Party, or (b) any purchase,
redemption, or other acquisition or retirement for value (including in connection with any merger or consolidation involving any Loan Party) of any Stock issued by any Loan Party; provided so long as no Default or Event of Default exists or
would result therefrom, (i) repurchases of Stock issued by Parent solely to satisfy federal income tax withholding obligations of employees with respect to stock-based compensation issued to them in accordance with applicable compensation plans
shall not be deemed a Restricted Junior Payment so long as such repurchases are made in the ordinary course of business and in an aggregate amount not to exceed $1,500,000 in any fiscal year of Borrowers, and (ii) Parent may repurchase Stock
issued by Parent for an aggregate purchase price not to exceed $7,500,000, in the aggregate, on or before January 31, 2019 with respect to any vesting of performance based phantom stock units granted by Parent on October 2, 2015 and
June 6, 2016. 
 “Revolver Usage” means, as of any date of determination, the sum of (a) the amount of
outstanding Advances, plus (b) the amount of the Letter of Credit Usage. 
 “Revolving Credit Facility” means the
revolving line of credit facility described in Section 2.1 pursuant to which Lender provides Advances to Borrowers and issues Letters of Credit for the account of Borrowers. 

“Sanctioned Entity” means (a) a country or a government of a country, (b) an agency of the government of a country,
(c) an organization directly or indirectly controlled by a country or its government, (d) a Person resident in or determined to be resident in a country, in each case, that is subject to a country sanctions program administered and
enforced by OFAC. 
 “Sanctioned Person” means a person named on the list of Specially Designated Nationals maintained by
OFAC. 
 “S&P” has the meaning specified therefor in the definition of Cash Equivalents. 

  
 Schedule 1.1 

Page 38 

 “SEC” means the United States Securities and Exchange Commission and any
successor thereto. 
 “Securities Account” means a securities account (as that term is defined in the Code). 

“Securities Act” means the Securities Act of 1933, as amended from time to time, and any successor statute. 

“Security Interest” has the meaning specified therefor in Section 3.1. 

“Solvent” means, with respect to any Person on a particular date, that, (i) at fair valuations, the sum of such
Person’s assets (and including as assets for this purpose all rights of subrogation, contribution or indemnification arising pursuant to any guarantees given by such Person) is greater than all of such Person’s debts and including
subordinated and contingent liabilities computed at the amount which, such Person has a reasonable basis to believe, represents an amount which can reasonably be expected to become an actual or matured liability (and including as to contingent
liabilities arising pursuant to any guarantee the face amount of such liability as reduced to reflect the probability of it becoming a matured liability); and (ii) such Person is able to pay its debts as they mature and has (and has a
reasonable basis to believe it will continue to have) sufficient capital (and not unreasonably small capital) to carry on its business consistent with its practices as of the date hereof. 

“Specified Surety Agreements” means the agreements with Chartis, Everest, Federal Insurance Company, Liberty Mutual and/or
any other Surety listed on Schedule 5.31 to the Information Certificate. 
 “Springing Lockbox Event” has the
meaning specified therefor in Section 2.4(b). 
 “Stock” means all shares, options, warrants, interests,
participations, or other equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act). 

“STR Mechanical” means STR Mechanical, LLC a North Carolina limited liability company. 

“Subsidiary” of a Person means a corporation, partnership, limited liability company, or other entity in which that Person
directly or indirectly owns or controls the shares of Stock having ordinary voting power to elect a majority of the board of directors (or appoint other comparable managers) of such corporation, partnership, limited liability company, or other
entity. 
 “Supporting Obligations” means supporting obligations (as such term is defined in the Code), and includes
letters of credit and guaranties issued in support of Accounts, Chattel Paper, documents, General Intangibles, instruments or Investment Related Property. 

  
 Schedule 1.1 

Page 39 

 “Surety” means any Person that issues a Surety Bond. 

“Surety Bond” means any surety bond, insurance policy, indemnity agreement, guaranty, letter or credit or other instrument
provided by a third party (i.e., excluding an Affiliate of the obligor) to an oblige to assure the payment by and/or performance of an obligor. 

“Surety Collateral” (a) all of the right, title and interest of the Borrowers in and to all existing and future Bonded
Contracts and associated contract rights; (b) Bonded Accounts; (c) all claims, rights and choses in action against any account debtor on any Surety Bond or against any other Person with respect to any Surety Bond or Bonded Contract;
(d) to the extent assignable (other than to the extent that any such prohibition and assignment term would be rendered ineffective pursuant to applicable law) all rights and actions that any Borrower may have or acquire in any subcontract,
purchase order or other agreement in connection with any Bonded Contract, and against any subcontract, purchase order or other agreement with any Person furnishing or agreeing to furnish or supply vehicles, labor, supplies, machinery or other
inventory or equipment in connection with or on account of any Bonded Contract, and against any surety or sureties of any such subcontractor, laborer or other Person; (e) Bonded Equipment; (f) Bonded Inventory; (g) any and all books,
accounts, computer software and other computer-stored information, and any and all drawings, plans, specifications, shop and as-built drawings, in each case, used in or necessary to fully perform all
obligations and services required of any Borrower under the Bonded Contracts; (h) all progress schedules, work in process schedules (including, but not limited to, estimates of completion costs), accounts receivable ledgers, accounts payable
ledgers and estimates of completion costs relating to any and all Bonded Contracts, and (i) any and all proceeds (other than such proceeds which are negotiable instruments or cash or Cash Equivalents in the possession or control of Lender)
remaining due to Borrowers and products arising with respect thereto. 
 “Taxes” means any taxes, levies, imposts, duties,
fees, assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein with respect to such payments and all interest, penalties or similar
liabilities with respect thereto; provided, however, that Taxes shall exclude any tax imposed on the net income or net profits of Lender (including any branch profits taxes), in each case imposed by the jurisdiction (or by any
political subdivision or taxing authority thereof in which Lender is organized or the jurisdiction (or by any political subdivision or taxing authority thereof) in which Lender’s principal office is located in each case as a result of a present
or former connection between Lender and the jurisdiction or taxing authority imposing the tax (other than any such connection arising solely from Lender having executed, delivered or performed its obligations or received payment under, or enforced
its rights or remedies under this Agreement or any other Loan Document). 
 “Termination Date” has the meaning specified
therefor in Section 2.9. 
 “Third Amendment Closing Date” shall mean September 9, 2016.

 “Tontine” means Tontine Capital Partners L.P. and its respective Affiliates 

  
 Schedule 1.1 

Page 40 

 “Trademarks” means any and all trademarks, trade names, registered trademarks,
trademark applications, service marks, registered service marks and service mark applications, including (i) the trade names, registered trademarks, trademark applications, registered service marks and service mark applications listed on
Schedule 5.26(b) to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement), (ii) all renewals thereof, (iii) all income, royalties,
damages and payments now and hereafter due or payable under and with respect thereto, including payments under all licenses entered into in connection therewith and damages and payments for past or future infringements or dilutions thereof,
(iv) the right to sue for past, present and future infringements and dilutions thereof, (v) the goodwill of each Loan Party’s business symbolized by the foregoing or connected therewith, and (vi) all of each Loan Party’s
rights corresponding thereto throughout the world. 
 “Uniform Customs” means the Uniform Customs and Practice for
Documentary Credits (2007 Revision), effective July, 2007 International Chamber of Commerce Publication No. 600. 
 “United
States” means the United States of America. 
 “Unused Amount” has the meaning specified therefor in Schedule
2.12 of this Agreement. 
 “URL” means “uniform resource locator,” an internet web address. 

“Value” means, as determined by Lender in good faith, with respect to Inventory, the lower of (a) cost computed on a first-in first-out basis in accordance with GAAP or (b) market value, provided that for purposes of the calculation of the Borrowing Base, (i) the Value of the
Inventory shall not include: (A) the portion of the value of Inventory equal to the profit earned by any Affiliate on the sale thereof to any Borrower or (B) write-ups or write-downs in value with
respect to currency exchange rates and (ii) notwithstanding anything to the contrary contained herein, the cost of the Inventory shall be computed in the same manner and consistent with the most recent appraisal of the Inventory received and
accepted by Lender, if any. 
 “Voidable Transfer” has the meaning specified therefor in
Section 17.7. 
 b.    Accounting Terms. All accounting terms not specifically defined
herein shall be construed in accordance with GAAP; provided, however, that if any Borrower notifies Lender that such Borrower requests an amendment to any provision hereof to eliminate the effect of any change in accounting principles
required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants (or successor thereto or any agency with similar functions) (an
“Accounting Change”) occurring after the Closing Date, or in the application thereof (or if Lender notifies any Borrower that Lender requests an amendment to any provision hereof for such purpose), regardless of whether any such
notice is given before or after such Accounting Change or in the application thereof, then Lender and Borrowers agree that they will negotiate in good faith amendments to the provisions of this Agreement that are directly affected by such Accounting
Change with the intent of having the respective positions of the Lender and 

  
 Schedule 1.1 

Page 41 

 
each Borrower after such Accounting Change conform as nearly as possible to their respective positions as of the date of this Agreement and, until any such amendments have been agreed upon, the
provisions in this Agreement shall be calculated as if no such Accounting Change had occurred. Whenever used herein, the term “financial statements” shall include the footnotes and schedules thereto. Whenever the term “Borrower”
is used in respect of a financial covenant or a related definition, it shall be understood to mean Borrowers and their respective Subsidiaries on a consolidated basis, unless the context clearly requires otherwise. 

c.    Code. Any terms used in this Agreement that are defined in the Code shall be construed and defined as set
forth in the Code unless otherwise defined herein. The meaning of any term defined herein by reference to the Code will not be limited by reason of any limitation set forth on the scope of the Code, whether under
Section 9-109 of the Code, by reason of federal preemption or otherwise. 

d.    Construction. Unless the context of this Agreement or any other Loan Document clearly requires otherwise,
references to the plural include the singular, references to the singular include the plural, the terms “includes” and “including” are not limiting, and the term “or” has, except where otherwise indicated, the inclusive
meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement or any other Loan Document refer to this Agreement or such other
Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless
otherwise specified. Any reference in this Agreement or in any other Loan Document to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions,
joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein). The
words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts, and contract rights. Any
reference herein or in any other Loan Document to the satisfaction, repayment, or payment in full of the Obligations shall mean the repayment in full in cash or immediately available funds (or, (a) in the case of contingent reimbursement
obligations with respect to Letters of Credit, providing Letter of Credit Collateralization, and (b) in the case of obligations with respect to Bank Products (other than Hedge Obligations), providing Bank Product Collateralization) of all of
the Obligations (including the payment of any Lender Expenses that have accrued irrespective of whether demand has been made therefor and the payment of any termination amount then applicable (or which would or could become applicable as a result of
the repayment of the other Obligations) under Hedge Agreements) other than unasserted contingent indemnification Obligations. Any reference herein to any Person shall be construed to include such Person’s successors and assigns. Any requirement
of a writing contained herein or in any other Loan Document shall be satisfied by the transmission of a Record. References herein to any statute or any provision thereof include such statute or provision (and all rules, regulations and
interpretations thereunder) as amended, revised, re-enacted, and /or consolidated from time to time and any successor statute thereto. 

  
 Schedule 1.1 

Page 42 

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

  
 Schedule 1.1 

Page 43 

 Schedule 2.12 

TO SECOND AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

Borrowers shall pay to Lender each of the following fees: 
 On
the Closing Date: 
 Amendment Fee. A one-time amendment fee of $150,000 in connection with the increase to
the Maximum Revolver Amount which shall be fully earned and payable upon the execution of this Agreement. 
 Monthly: 

(a)    Unused Fee. An unused line fee of one-quarter of one percent (0.25%) per annum of the
daily average of the Maximum Revolver Amount reduced by outstanding Advances (the “Unused Amount”), from the date of this Agreement to and including the Termination Date, which unused line fee shall be payable monthly in arrears on
the first day of each month and on the Termination Date. 
 (b)    Cash Management and Other Service Fees. Service fees to Lender
for Cash Management Services provided pursuant to the Cash Management Documents, Bank Product Agreements or any other agreement entered into by the parties, including Lender’s customary fees and charges (as adjusted from time to time) with
respect to the disbursement of funds (or the receipt of funds) to or for the account of Borrowers (whether by wire transfer or otherwise) in the amount prescribed in Lender’s current service fee schedule. 

(c)    Letter of Credit Fees. A Letter of Credit fee (in addition to the charges, commissions, fees, and costs set forth in
Section 2.13(e)) which shall accrue at a per annum rate equal to the applicable Interest Rate Margin times the Daily Balance of the undrawn amount of all outstanding Letters of Credit, payable in arrears on the first day of each month and on
the Termination Date and continuing until all undrawn Letters of Credit have expired or been returned for cancellation. All fees upon the occurrence of any other activity with respect to any Letter of Credit (including, without limitation, the
issuance, transfer, amendment, extension or cancellation of any Letter of Credit and honoring of draws under any Letter of Credit) determined in accordance with Lender’s standard fees and charges then in effect for such activity. 

Quarterly: 
 Collateral Monitoring Fee. A collateral
monitoring fee of five thousand ($5,000) is due and payable on the Closing Date, and thereafter quarterly in arrears on the first (1st) day of each quarter and on the Termination Date. 

Upon demand by Lender or as otherwise specified in this Agreement: 

(a)    Collateral Exam Fees, Costs and Expenses. Lender’s fees, costs and expenses in connection with any collateral exams,
audits or inspections conducted by or on behalf of Lender at the current rates established from time to time by Lender as its fee for collateral exams, audits or inspections (which fees are currently $125 per hour per collateral examiner), together
with all actual out-of-pocket costs and expenses incurred in conducting any collateral exam, audit, or 

  
 Schedule 2.12 

Page 1 

 
inspection; provided, however, (i) so long as no Default or Event of Default shall have occurred and be continuing, Borrowers shall be obligated to reimburse Lender for fees,
costs and expenses related to no more than three (3) such collateral exams, audits and inspections per location, per fiscal year, and (ii) after the first anniversary of the Original Closing Date, so long as (x) no Default or Event of
Default shall have occurred and be continuing during such fiscal year and (y) the applicable Interest Rate Margin has been designated at “Level 2” or “Level 3” (as described in the definition of Interest Rate Margin) at all
times during such fiscal year, Borrowers shall be obligated to reimburse Lender for fees, costs and expenses related to not more than two (2) such collateral exams, audits and inspections, per location, for such fiscal year. In addition,
Borrowers shall be obligated to reimburse Lender for all fees, costs and expenses related to any collateral exams, audits or inspections obtained prior to the Original Closing Date. 

(b)    Appraisal Fees, Costs and Expenses. Lender’s fees, costs and expenses (including any fees, costs and expenses incurred
by any appraiser) in connection with any appraisal of all or any part of the Collateral conducted at the request of Lender; provided, however, so long as no Default or Event of Default shall have occurred and be continuing, Borrowers
shall be obligated to reimburse Lender for fees, costs and expenses related to not more than one (1) appraisal of Borrowers’ Inventory during each fiscal year. 

  
 Schedule 2.12 

Page 2 

 Schedule 6.1 

TO SECOND AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

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

			
	as soon as available, but in any event within thirty (30) days after the end of each month	  	(a) a Compliance Certificate along with the underlying calculations, including the calculations to establish compliance with the financial covenants set forth in Section 8 and certain other covenants under this Agreement, as
well as calculations of Liquidity, Excess Availability and, if required, Fixed Charge Coverage Ratio.
		
	as soon as available, but in any event within forty-five (45) days after the end of each fiscal quarter, which, with respect to term (a), shall be deemed to be delivered to Lender upon filing of the same with the SEC on EDGAR,
or as otherwise described in the adjacent column, as applicable	  	 (a) an unaudited consolidated balance sheet, income statement, statement of cash flow, and statement of shareholder’s equity with
respect to the Borrowers and their respective Subsidiaries during such period and compared to the prior period and plan, prepared in accordance with GAAP, subject to year-end audit adjustments and the absence
of footnotes, together with a corresponding discussion and analysis of results from management; provided, however, that if, at any time, Liquidity is less than twenty-five percent (25%) of the Maximum Revolver Amount (or at least fifty
percent (50%) of such Liquidity is not comprised of Excess Availability) then the items listed under this clause (a) shall be delivered to Lender as soon as available, but in any event within thirty (30) days after the end of each month
until such time as until such time as Borrowers have demonstrated Liquidity in excess of twenty-five percent (25%) of the Maximum Revolver Amount (with at least fifty percent (50%) of such Liquidity comprised of Excess Availability) for thirty
(30) consecutive days; and
  
 (b) a Compliance Certificate along with the underlying
calculations, including the calculations to establish compliance with the financial covenants set forth in Section 8 and certain other covenants under this Agreement, as well as calculations of Liquidity, Excess
Availability and Fixed Charge Coverage Ratio.

		
	as soon as available, but in any event within one hundred twenty (120) days after the end of each fiscal year, which, with respect to term (a), shall be deemed to be delivered to Lender upon filing of the same with the	  	(a) consolidated financial statements of Borrowers and their respective Subsidiaries for such fiscal year, audited by Ernst & Young or another independent certified public accountant reasonably acceptable to Lender,
prepared in accordance with GAAP, and certified, without any qualifications (including any (A) “going concern” or like qualification or exception, (B) qualification or exception as to the scope of such audit, or
(C) qualification which relates to the treatment or classification

  
 Schedule 6.1 

Page 1 

			
	SEC on EDGAR	  	 of any item and which, as a condition to the removal of such qualification, would require an adjustment to such item), by such accountants
to have been prepared in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, statement of cash flow, and statement of shareholder’s equity and, if prepared, such accountants’ letter to
management); and
  
 (b) a Compliance Certificate along with the underlying calculations,
including the calculations to establish compliance with the financial covenants set forth in Section 8 and certain other covenants under this Agreement, as well as calculations of Liquidity, Excess Availability and Fixed
Charge Coverage Ratio.

		
	as soon as available, but in any event on or before the last day of each fiscal year,	  	(a) copies of Borrowers’ Projections, in form and substance (including as to scope and underlying assumptions) satisfactory to Lender, in its Permitted Discretion, for the forthcoming fiscal year, on a monthly
basis.
		
	if and when filed by any Borrower, all of which shall be deemed to be delivered to Lender upon filing of the same with the SEC on EDGAR.	  	 (a) Form 10-Q quarterly reports, Form 10-K annual reports,
and Form 8-K current reports;
  
 (b) any other
filings made by any Borrower with the SEC; and
  
 (c) any other information that is
provided by any Borrower to its shareholders generally.

  
 Schedule 6.1 

Page 2 

 Schedule 6.2 

TO SECOND AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

Provide Lender with each of the documents and information set forth below at the following times in form and substance satisfactory to Lender: 

 

			
	On or prior to the twenty-third (23rd) day of each month or more frequently if Lender requests	  	 (a) a Borrowing Base Certificate; provided, that if, at any time, Liquidity is less than thirty-five percent (35%) of the Maximum
Revolver Amount (or at least fifty percent (50%) of such Liquidity is not comprised of Excess Availability), then a Borrowing Base Certificate shall be delivered to Lender on Friday of each calendar week until such time as Borrowers have
demonstrated Liquidity in excess of twenty percent (20%) of the Maximum Revolver Amount (with at least fifty percent (50%) of such Liquidity comprised of Excess Availability) for thirty (30) consecutive days;

 
 (b) an Account roll-forward with supporting details to the extent requested by Lender;

 
 (c) to the extent requested by Lender, notice of all claims, offsets, or disputes asserted
by Account Debtors with respect to each Borrower’s and its Subsidiaries’ Accounts; and
  

(d) to the extent requested by Lender, copies of invoices together with corresponding shipping and delivery documents and credit memos together with
corresponding supporting documentation with respect to invoices and credit memos in excess of an amount determined in the sole discretion of Lender from time to time.

		
	Upon request by Lender	  	(a) to the extent Borrowers have requested that Lender make any Advances on its Inventory, Inventory system/perpetual reports specifying the cost of each Borrower’s and its Subsidiaries’ Inventory, by location and by
category, with additional detail showing additions to and deletions therefrom (delivered electronically in an acceptable format, if a Borrower has implemented electronic reporting).
		
	Upon request by Lender	  	 (a) a monthly Account roll-forward, in a format acceptable to Lender in its discretion;

 
 (b) a detailed aging of each Borrower’s Accounts, together with a reconciliation to
the monthly Account roll-forward and supporting documentation for any reconciling items noted (delivered electronically in an acceptable format, if a Borrower has implemented electronic reporting);

  
 Schedule 6.2 

Page 1 

			
		  	 (c) a detailed calculation of those Accounts that are not eligible for the Borrowing Base;

 
 (d) to the extent Borrowers have requested that Lender make any Advances on its Inventory,
a detailed Inventory system/perpetual report (delivered electronically in an acceptable format, if a Borrower has implemented electronic reporting);
  

(e) to the extent Borrowers have requested that Lender make any Advances on its Inventory, a detailed calculation of Inventory categories that are not eligible
for the Borrowing Base;
  
 (f) a summary aging, by vendor, of each Borrower’s and
its Subsidiaries’ accounts payable (delivered electronically in an acceptable format, if a Borrower has implemented electronic reporting); and
  

(g) a detailed report regarding each Borrower’s and its Subsidiaries’ cash and Cash Equivalents, including an indication of which amounts constitute
Qualified Cash.

		
	Upon request by Lender	  	(a) a reconciliation of Accounts aging, trade accounts payable aging, and Inventory perpetual of each Borrower to the general ledger and the monthly financial statements, including any book reserves related to each
category.
		
	Upon request by Lender	  	(a) a detailed list of each Borrower’s and its Subsidiaries’ customers, with address and contact information.
		
	Upon request by Lender	  	 (a) copies of purchase orders and invoices for Inventory and Equipment acquired by each Borrower or its Subsidiaries, and

 
 (b) such other reports and information as to the Collateral and as to each as Lender may
reasonably request.

  
 Schedule 6.2 

Page 2 

 EXHIBIT A 

TO SECOND AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

FORM OF COMPLIANCE CERTIFICATE 

[on Borrower’s letterhead] 
  

	To:	Wells Fargo Bank, National Association 

 MAC S4101-158

 100 W. Washington St. 15th Floor 

Phoenix, AZ 85003-1808 

Attention: Howard I. Handman 
  

	Re:	Compliance Certificate dated [                    ] 

Ladies and Gentlemen: 
 Reference is made to that certain
Second Amended and Restated Credit and Security Agreement (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) dated as of April 10, 2017, by and among WELLS
FARGO BANK, NATIONAL ASSOCIATION (“Lender”), IES HOLDINGS, INC., a Delaware corporation; IES COMMUNICATIONS, LLC, a Delaware limited liability company; IES COMMERCIAL, INC., a Delaware corporation; IES
MANAGEMENT LP, a Texas limited partnership; IES MANAGEMENT ROO, LP, a Texas limited partnership; IES PURCHASING & MATERIALS, INC., a Delaware corporation; IES RESIDENTIAL, INC., a Delaware corporation;
INTEGRATED ELECTRICAL FINANCE, INC., a Delaware corporation; IES SUBSIDIARY HOLDINGS, INC., a Delaware corporation; MAGNETECH INDUSTRIAL SERVICES, INC., an Indiana corporation; HK ENGINE COMPONENTS, LLC, an Indiana
limited liability company; IES RENEWABLE ENERGY, LLC, a Delaware limited liability company SOUTHERN INDUSTRIAL SALES AND SERVICES, INC., a Georgia corporation d/b/a Southern Rewinding and Sales, CALUMET ARMATURE AND ELECTRIC,
L.L.C., an Illinois limited liability company, SHANAHAN MECHANICAL AND ELECTRICAL, INC., a Nebraska corporation, IES INFRASTRUCTURE SOLUTIONS, LLC, a Delaware limited liability company, TECHNIBUS, INC., a Delaware
corporation, FREEMAN ENCLOSURE SYSTEMS, LLC, an Ohio limited liability company, STRATEGIC EDGE LLC, an Ohio limited liability company (each, individually a “Borrower”, and collectively, the
“Borrowers”), IES CONSOLIDATION, LLC, a Delaware limited liability company; IES PROPERTIES, INC., a Delaware corporation; IES SHARED SERVICES, INC., a Delaware corporation; IES TANGIBLE PROPERTIES, INC.,
a Delaware corporation; KEY ELECTRICAL SUPPLY, INC., a Texas corporation; IES OPERATIONS GROUP, INC., a Delaware corporation and ICS HOLDINGS LLC, an Arizona limited liability company (each, individually a
(“Guarantor”), and collectively, the “Guarantors”). Capitalized terms used in this Compliance Certificate have the meanings set forth in the Credit Agreement unless specifically defined herein. 

  
 Exhibit A 

Page 1 

 Pursuant to Schedule 6.1 of the Credit Agreement, the undersigned officer of Parent, or Administrative
Borrower, hereby certifies that: 
 1.    Attached is the financial information of Borrowers and their Subsidiaries which is required to
be furnished to Lender pursuant to Section 6.1 of the Credit Agreement for the period ended                     ,
                     (the “Reporting Date”). Such financial information has been prepared in accordance with GAAP [(except for year-end adjustments and the lack of footnotes)]1, and fairly presents in all material respects the financial condition of Borrowers and their Subsidiaries.

 2.    Such officer has reviewed the terms of the Credit Agreement and has made, or caused to be made under his/her supervision, a
review in reasonable detail of the transactions and condition of each Borrower and its Subsidiaries during the accounting period covered by the financial statements delivered pursuant to Schedule 6.1 of the Credit Agreement. 

3.    Such review has not disclosed the existence on and as of the date hereof, and the undersigned does not have knowledge of the
existence as of the date hereof, of any event or condition that constitutes a Default or Event of Default. 
 4.    The representations
and warranties of each Loan Party and its Subsidiaries set forth in the Credit Agreement and the other Loan Documents are true and correct in all material respects on and as of the date hereof (except to the extent they relate to a specified date).

 5.    Borrowers’ Liquidity, Excess Availability and Fixed Charge Coverage Ratio calculations are demonstrated on Schedule
1 hereof. 
 6.    As of the Reporting Date, the Borrowers and their respective Subsidiaries are in compliance with the applicable
covenants contained in Section 8 of the Credit Agreement, if applicable, as demonstrated on Schedule 1 hereof. 
 IN
WITNESS WHEREOF, this Compliance Certificate is executed by the undersigned this [    ] day of
[                    ],
[                    ]. 
  

			
	 IES HOLDINGS, INC.

		
	By:	 	                                     
                                         
            
	Name:	 	                                     
                                         
            
	Title:	 	                                     
                                         
            

  
  

	1 	Exclude bracketed language with annual audits 

  
 Exhibit A 

Page 2 

 SCHEDULE 1 TO COMPLIANCE CERTIFICATE 

Financial Covenants 
 I further certify
that (Please check and complete each of the following): 
 1.    Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio of
the Borrowers and their Subsidiaries, measured on a trailing four-quarter basis, for the applicable quarter-end is      to 1.0 which [does/does not] satisfy the requirement
set forth in Section 8(a) of the Credit Agreement that the Fixed Charge Coverage Ratio be not less than 1.1 to 1.0. Attached to this Schedule 1 are calculations supporting the foregoing calculation with respect to the Fixed Charge Coverage
Ratio. 
 2.    Minimum Liquidity. The Liquidity of the Borrowers during the recent month was no less than
$         which [does/does not] satisfy the requirement set forth in Section 8(b) of the Credit Agreement that the Borrowers maintain a minimum Liquidity of at least thirty percent (30%) of the
Maximum Revolver Amount. The Borrower’s Excess Availability during the recent month was no less than $         which [does/does not] satisfy the requirement set forth in Section 8(b)
of the Credit Agreement that at least fifty percent (50%) of the Borrowers’ Liquidity be comprised of Excess Availability. Attached to this Schedule 1 are calculations supporting the foregoing calculation with respect to the Liquidity
and Excess Availability. 
 3.    Minimum EBITDA. The EBITDA of Borrowers, measured on a trailing four-quarter period for the
applicable quarter-end is $         which [does/does not] satisfy the requirement set forth in Section 8(c) of the Credit Agreement that the Borrowers
maintain a minimum EBITDA for the applicable period set forth therein. 

  
 Exhibit A 

Page 3 

 EXHIBIT B 

TO SECOND AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

CONDITIONS PRECEDENT 
 The
obligation of Lender to make its initial extension of credit provided for in this Agreement is subject to the fulfillment, to the satisfaction of Lender, of each of the following conditions precedent: 

(a)    Lender shall have received each of the following documents, in form and substance satisfactory to Lender, duly
executed, and each such document shall be in full force and effect: 
 (i)    This Agreement; 

(ii)    Omnibus Reaffirmation of Loan Documents; 

(iii)    Intercompany Subordination Agreement; and 

(iv)    Any other Loan Documents requested by Lender; 

(b)    Lender shall have received a certificate from the Secretary of each Loan Party (i) attesting to the
resolutions of such Loan Party’s Board of Directors authorizing its execution, delivery, and performance of this Agreement and the other Loan Documents to which such Loan Party is a party, (ii) authorizing specific officers of such Loan
Party to execute the same, and (iii) attesting to the incumbency and signatures of such specific officers of such Loan Party; 

(c)    Lender shall have received copies of each Loan Party’s Governing Documents, as amended, modified, or
supplemented to the Closing Date, certified as true, correct and complete by the Secretary of such Loan Party, each in form and substance reasonably satisfactory to Lender; 

(d)    Lender shall have received a certificate of status with respect to each Loan Party, dated within thirty
(30) days of the Closing Date, such certificate to be issued by the appropriate officer of the jurisdiction of organization of each Loan Party, which certificate shall indicate that such Loan Party is in good standing in such jurisdiction; 

(e)    Lender shall have received copies of the policies of insurance and certificates of insurance, together with the
endorsements thereto, as are required by Section 6.6, the form and substance of which shall be satisfactory to Lender; 

(f)    Lender shall have received an opinion of each Loan Party’s counsel in form and substance satisfactory to
Lender; 
 (g)    Borrowers’ and their Subsidiaries’ Liquidity is not less than $40,000,000, and Excess
Availability is not less than $20,000,000. 

  
 Exhibit B 

Page 1 

 (h)    Lender shall have completed its business, legal, and collateral due
diligence, including (i) a collateral examination and review of each Borrower’s and its Subsidiaries Books and verification of each Loan Party’s representations and warranties to Lender, the results of which must be satisfactory to
Lender, and (ii) an inspection of each of the locations where the Inventory of each Loan Party and its Subsidiaries is located, the results of which must be satisfactory to Lender; 

(i)    Borrowers shall have paid all Lender Expenses incurred in connection with the transactions evidenced by this
Agreement; 
 (j)    since the date of the most recent financial statements delivered to Lender, no event, circumstance,
or change shall have occurred that has or could reasonably be expected to result in a Material Adverse Change with respect to the Loan Parties and their Subsidiaries; 

(k)    all other documents and legal matters in connection with the transactions contemplated by this Agreement shall have
been delivered, executed, or recorded and shall be in form and substance satisfactory to Lender; and 
 (l)    Lender
shall have received final credit approval for the Credit Facility and the transactions described in this Agreement. 

  
 Exhibit B 

Page 2 

 EXHIBIT C 

TO SECOND AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

CONDITIONS SUBSEQUENT 
 [To
come, if any] 

  
 Exhibit C 

Page 1 

 EXHIBIT D 

TO SECOND AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

REPRESENTATIONS AND WARRANTIES 

5.1    Due Organization and Qualification; Subsidiaries. 

(a)    Each Loan Party and each Subsidiary of each Loan Party (i) is duly organized and existing and in good standing
under the laws of the jurisdiction of its organization, (ii) is qualified to do business in any jurisdiction where the failure to be so qualified could reasonably be expected to result in a Material Adverse Change, and (iii) has all
requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Loan Documents to which it is a party and to carry out the transactions contemplated
thereby. 
 (b)    Set forth on Schedule 5.1(b) to the Information Certificate is a complete and accurate
description of the authorized capital Stock of each Loan Party, by class, and, as of the Closing Date, a description of the number of shares of each such class that are issued and outstanding. Other than as described on Schedule 5.1(b) to the
Information Certificate, there are no subscriptions, options, warrants, or calls relating to any shares of any Loan Party’s capital Stock, including any right of conversion or exchange under any outstanding security or other instrument. No
Loan Party is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its capital Stock or any security convertible into or exchangeable for any of its capital Stock. 

(c)    Set forth on Schedule 5.1(c) to the Information Certificate (as such Schedule may be updated from time to
time to reflect changes resulting from transactions permitted under this Agreement), is a complete and accurate list of the Loan Parties’ direct and indirect Subsidiaries, showing: (i) the number of shares of each class of common and
preferred Stock authorized for each of such Subsidiaries, and (ii) the number and the percentage of the outstanding shares of each such class owned directly or indirectly by each Loan Party. All of the outstanding capital Stock of each such
Subsidiary has been validly issued and is fully paid and non-assessable. 

(d)    Except as set forth on Schedule 5.1(d) to the Information Certificate, there are no subscriptions, options,
warrants, or calls relating to any shares of any capital stock or any Loan Party or of any of its Subsidiaries, including any right of conversion or exchange under any outstanding security or other instrument. No Loan Party nor any of its
Subsidiaries is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of such Loan Party’s Subsidiaries’ capital Stock or any security convertible into or exchangeable for any such
capital Stock. 

  
 Exhibit D 

Page 1 

 5.2    Due Authorization; No Conflict. 

(a)    As to each Loan Party, the execution, delivery, and performance by such Loan Party of the Loan Documents to which it
is a party have been duly authorized by all necessary action on the part of such Loan Party. 
 (b)    As to each Loan
Party, the execution, delivery, and performance by such Loan Party of the Loan Documents to which it is a party do not and will not (i) violate any material provision of federal, state, or local law or regulation applicable to any Loan Party or
its Subsidiaries, the Governing Documents of any Loan Party or its Subsidiaries, or any order, judgment, or decree of any court or other Governmental Authority binding on any Loan Party or its Subsidiaries, (ii) conflict with, result in a
breach of, or constitute (with due notice or lapse of time or both) a default under any Material Contract of any Loan Party or its Subsidiaries except to the extent that any such conflict, breach or default could not individually or in the aggregate
reasonably be expected to cause a Material Adverse Change, (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any assets of any Loan Party, other than Permitted Liens, or (iv) require any
approval of any Loan Party’s interest holders or any approval or consent of any Person under any Material Contract of any Loan Party, other than consents or approvals that have been obtained and that are still in force and effect and except, in
the case of Material Contracts, for consents or approvals, the failure to obtain could not individually or in the aggregate reasonably be expected to cause a Material Adverse Change. 

5.3    Governmental and Other Consents. No consent, approval, authorization, or other order or other action
by, and no notice to or filing with, any Governmental Authority or any other Person is required (a) for the grant of a Lien by such Loan Party in and to the Collateral pursuant to this Agreement or the other Loan Documents or for the execution,
delivery, or performance of this Agreement by such Loan Party, or (b) for the exercise by Lender of the voting or other rights provided for in this Agreement with respect to the Investment Related Property or the remedies in respect of the
Collateral pursuant to this Agreement, except as may be required in connection with such disposition of Investment Related Property by laws affecting the offering and sale of securities generally. Except as set forth on Schedule 5.3 to the
Information Certificate, no Intellectual Property License of any Loan Party that is necessary to the conduct of such Loan Party’s business requires any consent of any other Person in order for such Loan Party to grant the security interest
granted hereunder in such Loan Party’s right, title or interest in or to such Intellectual Property License. 

5.4    Binding Obligations. Each Loan Document has been duly executed and delivered by each Loan Party that
is a party thereto and is the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its respective terms, except as enforcement may be limited by equitable principles or by bankruptcy,
insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally. 

5.5    Title to Assets; No Encumbrances. Each of the Loan Parties and its Subsidiaries has (a) good,
sufficient and legal title to (in the case of fee interests in Real Property), (b) valid leasehold interests in (in the case of leasehold interests in real or personal property), and (c) good and marketable title to (in the case of all other
personal property), all of 

  
 Exhibit D 

Page 2 

 
their respective assets reflected in their most recent financial statements delivered pursuant to Section 6.1 and most recent collateral reports delivered pursuant to
Section 6.2, in each case except for assets disposed of since the date of such financial statements to the extent permitted hereby. All of such assets are free and clear of Liens except for Permitted Liens. 

5.6    Jurisdiction of Organization; Location of Chief Executive Office; Organizational Identification Number;
Commercial Tort Claims. 
 (a)    The exact legal name of (within the meaning of
Section 9-503 of the Code) and jurisdiction of organization of each Loan Party and each of its Subsidiaries is set forth on Schedule 5.6(a) to the Information Certificate (as such Schedule may be
updated from time to time to reflect changes resulting from transactions permitted under this Agreement). 
 (b)    The
chief executive office of each Loan Party and each of its Subsidiaries is located at the address indicated on Schedule 5.6(b) to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from
transactions permitted under this Agreement). 
 (c)    The tax identification number and organizational identification
number, if any, of each Loan Party and each of its Subsidiaries are identified on Schedule 5.6(c) to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under
this Agreement). 
 (d)    As of the Closing Date, no Loan Party and no Subsidiary of a Loan Party holds any asserted
Commercial Tort Claims or, to its knowledge, holds any unasserted Commercial Tort Claims, in either case, that exceed $500,000 in amount, except as set forth on Schedule 5.6(d) to the Information Certificate (as such Schedule may be updated
from time to time to reflect changes resulting from transactions permitted under this Agreement). 

5.7    Litigation. 

(a)    There are no actions, suits, or proceedings pending or, to the knowledge of any Loan Party, after due inquiry,
threatened in writing against a Loan Party or any of its Subsidiaries that either individually or in the aggregate could reasonably be expected to result in a Material Adverse Change. 

(b)    Schedule 5.7(b) to the Information Certificate sets forth a complete and accurate description, with respect
to each of the actions, suits, or proceedings with asserted liabilities in excess of, or that could reasonably be expected to result in liabilities in excess of, $500,000 in any one case or in excess of $1,500,000 in the aggregate that, as of the
Closing Date, is pending or, to the knowledge of any Loan Party, after due inquiry, threatened in writing against any Loan Party or any of its Subsidiaries, including (i) the parties to such actions, suits, or proceedings, (ii) the nature
of the dispute that is the subject of such actions, suits, or proceedings, (iii) the status, as of the Closing Date, with respect to such actions, suits, or proceedings, and (iv) whether any liability of any Loan Party or any Subsidiary in
connection with such actions, suits, or proceedings is covered by insurance. 

  
 Exhibit D 

Page 3 

 5.8    Compliance with Laws. No Loan Party nor any of its
Subsidiaries (a) is in violation of any applicable laws, rules, regulations, executive orders, or codes (including Environmental Laws) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change,
or (b) is subject to or in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations of any court or any federal, state, municipal or other governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change. 

5.9    No Material Adverse Change. All historical financial statements relating to the Loan Parties and
their Subsidiaries that have been delivered by Borrowers to Lender have been prepared in accordance with GAAP (except, in the case of unaudited financial statements, for the lack of footnotes and being subject to
year-end audit adjustments) and, taken as a whole, present fairly in all material respects, the consolidated financial condition of the Loan Parties and their Subsidiaries as of the date thereof and results of
operations for the period then ended. Since the date of the most recent financial statement delivered to Lender, no event, circumstance, or change has occurred that has or could reasonably be expected to result in a Material Adverse Change. 

5.10    Fraudulent Transfer. 

(a)    Each Loan Party (other than Guarantors) is Solvent. 

(b)    No transfer of property is being made by any Loan Party and no obligation is being incurred by any Loan Party in
connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of such Loan Party. 

(c)    No Loan Party that is a Guarantor has any operations or owns any material assets. 

5.11    Employee Benefits. No Loan Party, none of their Subsidiaries, or any of their ERISA Affiliates
maintains or contributes to any Benefit Plan. 
 5.12    Environmental Condition. Except as set forth on
Schedule 5.12 to the Information Certificate, (a) to each Loan Party’s knowledge, no properties or assets of any Loan Party or any of its Subsidiaries have ever been used by a Loan Party, its Subsidiaries, or by previous owners or
operators in the disposal of, or to produce, store, handle, treat, release, or transport, any Hazardous Materials, where such disposal, production, storage, handling, treatment, release or transport was in violation, in any material respect, of any
applicable Environmental Law, (b) to each Loan Party’s knowledge, after due inquiry, no Loan Party’s nor any of its Subsidiaries’ properties or assets have ever been designated or identified in any manner pursuant to any
environmental protection statute as a Hazardous Materials disposal site, (c) no Loan Party nor any of its Subsidiaries has received notice that a Lien arising under any Environmental Law has attached to any revenues or to any Real Property
owned or operated by a Loan Party or its Subsidiaries, and (d) no Loan Party nor any of its Subsidiaries nor any of their respective facilities or operations is subject to any outstanding written order, consent decree, or

  
 Exhibit D 

Page 4 

 
settlement agreement with any Person relating to any Environmental Law or Environmental Liability that, individually or in the aggregate, could reasonably be expected to result in a Material
Adverse Change. 
 5.13    Intellectual Property. Each Loan Party and each of its Subsidiaries own, or
hold licenses in, all trademarks, trade names, copyrights, patents, and licenses that are necessary to the conduct of its business as currently conducted. 

5.14    Leases. Each Loan Party and each of its Subsidiaries enjoy peaceful and undisturbed possession under
all leases material to their business and to which it is a party or under which it is operating, and, subject to Permitted Protests, all of such material leases are valid and subsisting and no material default by the applicable Loan Party or the
applicable Subsidiary exists under any of them. 
 5.15    Deposit Accounts and Securities Accounts. Set
forth on Schedule 5.15 to the Information Certificate (as updated pursuant to Section 6.12(j)(iv)) is a listing of all of the Deposit Accounts and Securities Accounts of each Loan Party and each of its Subsidiaries, including, with
respect to each bank or securities intermediary (a) the name and address of such Person, and (b) the account numbers of the Deposit Accounts or Securities Accounts maintained with such Person. 

5.16    Complete Disclosure. All factual information taken as a whole (other than forward-looking
information and projections and information of a general economic nature and general information about the industry of a Loan Party or any of its Subsidiaries) furnished by or on behalf of a Loan Party or any of its Subsidiaries in writing to Lender
(including all information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in connection with this Agreement or the other Loan Documents, and all other such factual information taken as a whole (other than
forward-looking information and projections and information of a general economic nature and general information about the industry of a Loan Party or any of its Subsidiaries) hereafter furnished by or on behalf of a Loan Party or any of its
Subsidiaries in writing to Lender will be, true and accurate, in all material respects, on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such information (taken as a
whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided. The Projections most recently delivered to Lender represent, and as of the date on which any other Projections are
delivered to Lender, such additional Projections represent, each Borrowers’ good faith estimate, on the date such Projections are delivered, of the future performance of a Loan Party or any of its Subsidiaries for the periods covered thereby
based upon assumptions believed by Borrowers to be reasonable at the time of the delivery thereof to Lender. 

5.17    Material Contracts. Set forth on Schedule 5.17 to the Information Certificate (as such
Schedule may be updated from time to time in accordance herewith) is a reasonably detailed description of the Material Contracts of each Loan Party and each of its Subsidiaries as of the most recent date on which Borrowers provided their Compliance
Certificate pursuant to Section 6.1; provided, however, that any Borrower may amend Schedule 5.17 to the Information Certificate to add additional Material Contracts so long as such amendment occurs by
written notice to Lender on the date that such Borrower provides its Compliance Certificate. Except for 

  
 Exhibit D 

Page 5 

 
matters which, either individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change, each Material Contract (other than those that have expired at the
end of their normal terms) (a) is in full force and effect and is binding upon and enforceable against the applicable Loan Party or the applicable Subsidiary and, to such Borrower’s knowledge, after due inquiry, each other Person that is a
party thereto in accordance with its terms, (b) has not been otherwise amended or modified (other than amendments or modifications permitted by Section 7.7(b)), and (c) is not in default due to the action or inaction of the
applicable Loan Party or the applicable Subsidiary. 
 5.18    Patriot Act. To the extent applicable, each
Loan Party and each of its Subsidiaries is in compliance, in all material respects, with the (a) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (b) Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of
2001) (the “Patriot Act”). No part of the proceeds of the loans made hereunder will be used by any Loan Party or any of its Subsidiaries or any of their Affiliates, directly or indirectly, for any payments to any governmental
official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the
United States Foreign Corrupt Practices Act of 1977, as amended. 
 5.19    Indebtedness. Set forth on
Schedule 5.19 to the Information Certificate is a true and complete list of all Indebtedness of each Loan Party and each of its Subsidiaries outstanding immediately prior to the Closing Date that is to remain outstanding immediately after
giving effect to the closing hereunder on the Closing Date and such Schedule accurately sets forth the aggregate principal amount of such Indebtedness as of the Closing Date. 

5.20    Payment of Taxes. Except as otherwise permitted under Section 6.5, all tax
returns of each Loan Party and each of its Subsidiaries required to be filed by any of them have been timely filed, and all taxes shown on such tax returns to be due and payable and all assessments, fees and other governmental charges upon a Loan
Party and its Subsidiaries and upon their respective assets, income, businesses and franchises that are due and payable have been paid when due and payable. Each Loan Party and each of its Subsidiaries have made adequate provision in accordance with
GAAP for all taxes not yet due and payable. No Borrower knows of any proposed tax assessment against a Loan Party or any of its Subsidiaries that is not being actively contested by such Loan Party or such Subsidiary diligently, (a) in good
faith, and by appropriate proceedings; provided such reserves or other appropriate provisions, if any, as shall be required in conformity with GAAP shall have been made or provided therefor or (b) that has resulted in a Lien in excess of
$500,000 on any of the assets of any of the Loan Parties. 
 5.21    Margin Stock. No Loan Party or any of
its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of the loans made to Borrowers will be used to
purchase or carry any such Margin Stock or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any purpose that violates the provisions of Regulation T, U or X of the Board of Governors of the United
States Federal Reserve. 

  
 Exhibit D 

Page 6 

 5.22    Governmental Regulation. No Loan Party or any of its
Subsidiaries is subject to regulation under the Federal Power Act or the Investment Company Act of 1940 or under any other federal or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or
any portion of the Obligations unenforceable. No Loan Party or any of its Subsidiaries is a “registered investment company” or a company “controlled” by a “registered investment company” or a “principal
underwriter” of a “registered investment company” as such terms are defined in the Investment Company Act of 1940. 

5.23    OFAC. No Loan Party or any of its Subsidiaries is in violation of any of the country or list based
economic and trade sanctions administered and enforced by OFAC. No Loan Party or any of its Subsidiaries (a) is a Sanctioned Person or a Sanctioned Entity, (b) has its assets located in Sanctioned Entities, or (c) derives revenues
from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. No proceeds of any loan made hereunder will be used to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned
Person or a Sanctioned Entity. 
 5.24    Employee and Labor Matters. There is (a) no unfair labor
practice complaint pending or, to the knowledge of Borrowers, threatened against any Loan Party or any of its Subsidiaries before any Governmental Authority and no grievance or arbitration proceeding pending or threatened against any Loan Party or
any of its Subsidiaries which arises out of or under any collective bargaining agreement and that could reasonably be expected to result in a material liability, (b) no strike, labor dispute, slowdown, stoppage or similar action or grievance
pending or threatened in writing against any Loan Party or any of its Subsidiaries that could reasonably be expected to result in a material liability, or (c) to the knowledge of Borrowers, after due inquiry, no union representation question
existing with respect to the employees of any Loan Party or any of its Subsidiaries and no union organizing activity taking place with respect to any of the employees of any Loan Party or any of its Subsidiaries. No Loan Party or any of its
Subsidiaries has incurred any liability or obligation under the Worker Adjustment and Retraining Notification Act or similar state law, which remains unpaid or unsatisfied. The hours worked and payments made to employees of each Loan Party and each
of its Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable legal requirements, except to the extent such violations could not, individually or in the aggregate, reasonably be expected to result in a
Material Adverse Change. All material payments due from any Loan Party or any of its Subsidiaries on account of wages and employee health and welfare insurance and other benefits have been paid or accrued as a liability on the books of such Loan
Party, except where the failure to do so could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change. 

5.25    [Reserved.] 

5.26    Collateral. 

(a)    Real Property. Schedule 5.26(a) to the Information Certificate sets forth all Real Property owned by
any of the Loan Parties as of the Closing Date. 

  
 Exhibit D 

Page 7 

 (b)    Intellectual Property. 

(i)    As of the Closing Date, Schedule 5.26(b) to the Information Certificate (as such Schedule may be updated
from time to time to reflect changes resulting from transactions permitted under this Agreement) provides a complete and correct list of: (A) all registered Copyrights owned by any Loan Party, all applications for registration of Copyrights
owned by any Loan Party, and all other Copyrights owned by any Loan Party and material to the conduct of the business of any Loan Party; (B) all Intellectual Property Licenses entered into by any Loan Party pursuant to which (x) any Loan
Party has provided any license or other rights in Intellectual Property owned or controlled by such Loan Party to any other Person or (y) any Person has granted to any Loan Party any license or other rights in Intellectual Property owned or
controlled by such Person that is material to the business of such Loan Party, including any Intellectual Property that is incorporated in any Inventory, software, or other product marketed, sold, licensed, or distributed by such Loan Party;
(C) all Patents owned by any Loan Party and all applications for Patents owned by any Loan Party; and (D) all registered Trademarks owned by any Loan Party, all applications for registration of Trademarks owned by any Loan Party, and all
other Trademarks owned by any Loan Party and material to the conduct of the business of any Loan Party; 
 (ii)    all
employees and contractors of each Loan Party who were involved in the creation or development of any Intellectual Property for such Loan Party that is necessary to the business of such Loan Party have signed agreements containing assignment of
Intellectual Property rights to such Loan Party and obligations of confidentiality; 
 (iii)    to each Loan
Party’s knowledge after reasonable inquiry, no Person has infringed or misappropriated or is currently infringing or misappropriating any Intellectual Property rights owned by such Loan Party, in each case, that either individually or in the
aggregate could reasonably be expected to result in a Material Adverse Change; 
 (iv)    to each Loan Party’s
knowledge after reasonable inquiry, all registered Copyrights, registered Trademarks, and issued Patents that are owned by such Loan Party and necessary in to the conduct of its business are valid, subsisting and enforceable and in compliance with
all legal requirements, filings, and payments and other actions that are required to maintain such Intellectual Property in full force and effect; and 

(v)    each Loan Party has taken reasonable steps to maintain the confidentiality of and otherwise protect and enforce
its rights in all trade secrets owned by such Loan Party that are necessary in the business of such Loan Party; 

(c)    Valid Security Interest. This Agreement creates a valid security interest in the Collateral of each Loan
Party, to the extent a security interest therein can be created under the Code, securing the payment of the Obligations. Except to the extent a security interest in the Collateral cannot be perfected by the filing of a financing statement under the
Code, all filings and other actions necessary or desirable to perfect and protect such security interest have been duly taken or will have been taken upon the filing of financing statements listing each applicable Loan Party, as a debtor, and Lender
for itself and as agent for the Bank Product Providers, as secured party, in the jurisdictions listed next to such Loan Party’s name on Schedule 5.6(a) to the  

  
 Exhibit D 

Page 8 

 
Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement). Upon the making of such filings,
Lender shall have a first priority perfected security interest in the Collateral of each Loan Party to the extent such security interest can be perfected by the filing of a financing statement, subject to Permitted Liens which are purchase money
Liens. Upon filing of the Copyright Security Agreement with the United States Copyright Office, filing of the Patent and Trademark Security Agreement with the PTO, and the filing of appropriate financing statements in the jurisdictions listed on
Schedule 5.6(a) to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement), all action necessary or desirable to protect and perfect the
Security Interest in and to on each Loan Party’s Patents, Trademarks, or Copyrights has been taken and such perfected Security Interest is enforceable as such as against any and all creditors of and purchasers from any Loan Party. All action by
any Loan Party necessary to protect and perfect such security interest on each item of Collateral has been duly taken. 

(d)    Pledged Interests. (i) Except for the Security Interest created hereby, each Loan Party is and will at
all times be the sole holder of record and the legal and beneficial owner, free and clear of all Liens other than Permitted Liens, of the Pledged Interests indicated on Schedule 5.1(c) to the Information Certificate (as such Schedule may be
updated from time to time to reflect changes resulting from transactions permitted under this Agreement) as being owned by such Loan Party and, when acquired by such Loan Party, any Pledged Interests acquired after the Closing Date and included on
Schedule 5.1(c) to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement); (ii) all of the Pledged Interests are duly authorized, validly
issued, fully paid and non-assessable and the Pledged Interests constitute or will constitute the percentage of the issued and outstanding Stock of the Pledged Companies of such Loan Party identified on
Schedule 5.1(c) to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement) as supplemented or modified by any Pledged Interests Addendum or
any Joinder to this Agreement; (iii) such Loan Party has the right and requisite authority to pledge, the Investment Related Property pledged by such Loan Party to Lender as provided herein; (iv) all actions necessary or desirable to
perfect and establish the first priority of, or otherwise protect, Lender’s Liens in the Investment Related Property, and the proceeds thereof, have been duly taken, upon (A) the execution and delivery of this Agreement; (B) the
taking of possession by Lender (or its Lender or designee) of any certificates representing the Pledged Interests, together with undated powers (or other documents of transfer acceptable to Lender) endorsed in blank by the applicable Loan Party;
(C) the filing of financing statements in the applicable jurisdiction set forth on Schedule 5.6(a) to the Information Certificate (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted
under this Agreement) for such Loan Party with respect to the Pledged Interests of such Loan Party that are not represented by certificates, and (D) with respect to any Securities Accounts, the delivery of Control Agreements with respect
thereto; and (v) each Loan Party has delivered to and deposited with Lender all certificates representing the Pledged Interests owned by such Loan Party to the extent such Pledged Interests are represented by certificates, and undated powers
(or other documents of transfer acceptable to Lender) endorsed in blank with respect to such certificates. None of the Pledged Interests owned or held by such Loan Party has been issued or transferred in violation of any securities registration,
securities disclosure, or similar laws of any jurisdiction to which such 

  
 Exhibit D 

Page 9 

 
issuance or transfer may be subject. As to all limited liability company or partnership interests, issued under any Pledged Operating Agreement or Pledged Partnership Agreement, each Borrower
hereby represents and warrants that the Pledged Interests issued pursuant to such agreement (A) are not dealt in or traded on securities exchanges or in securities markets, (B) do not constitute investment company securities, and
(C) are not held by such Loan Party in a securities account. In addition, none of the Pledged Operating Agreements, the Pledged Partnership Agreements, or any other agreements governing any of the Pledged Interests issued under any Pledged
Operating Agreement or Pledged Partnership Agreement, provided that such Pledged Interests are securities governed by Section 8 of the Uniform Commercial Code as in effect in any relevant jurisdiction. 

5.27    Eligible Accounts. As to each Account that is identified by a Borrower as an Eligible Account in a
Borrowing Base Certificate submitted to Lender, such Account is (a) a bona fide existing payment obligation of the applicable Account Debtor created by the sale and delivery of Inventory or the rendition of services to such Account Debtor in
the ordinary course of such Borrower’s business, (b) owed to such Borrower, and (c) not excluded as ineligible by virtue of one or more of the excluding criteria (other than Lender-discretionary criteria) set forth in the definition
of Eligible Accounts. 
 5.28    Eligible Inventory. As to each item of Inventory that is identified by
Borrower as Eligible Inventory in a Borrowing Base Certificate submitted to Lender, such Inventory is (a) of good and merchantable quality, free from known defects, and (b) not excluded as ineligible by virtue of one or more of the
excluding criteria (other than Lender-discretionary criteria) set forth in the definition of Eligible Inventory. 

5.29    Locations of Inventory and Equipment. The Inventory and Equipment (other than vehicles or Equipment
out for repair) of the Loan Parties and their Subsidiaries are not stored with a bailee, warehouseman, or similar party and are located only at, or in-transit between or to, the locations identified on
Schedule 5.29 to the Information Certificate (as such Schedule may be updated pursuant to Section 6.14). 

5.30    Inventory Records. Each Loan Party keeps correct and accurate records itemizing and describing the
type, quality, and quantity of its Inventory and of the Inventory of its Subsidiaries and the book value thereof. 

5.31    Surety Agreements. No Loan Party or any of its Subsidiaries has any Surety Bond or related agreement
(including any intercreditor agreements) with any Surety except as disclosed on Schedule 5.31 to the Information Certificate (including all amendments thereto). 

5.32    Surety Bonds Cash and LCs. No Loan Party or any of its Subsidiaries has provided any cash collateral
or letters of credit to issuers of Surety Bonds except as disclosed on Schedule 5.32 to the Information Certificate. 

5.33    Bonded Contracts: No Loan Party is subject to any Bonded Contract except as disclosed on Schedule
5.33 to the Information Certificate. 

  
 Exhibit D 

Page 10 

 EXHIBIT E 

TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

INFORMATION CERTIFICATE 
 OF 

LOAN PARTIES 
  

 
 Dated:
[                    ] 
 Wells Fargo Bank,
National Association 
 MAC S4101-158 

100 W. Washington St. 15th Floor 
 Phoenix, AZ 85003-1808 

Attention: Howard I. Handman 
 In connection with certain
financing provided or to be provided by Wells Fargo Bank, National Association (“Lender”), Administrative Borrower on behalf of each Loan Party represents and warrants to Lender the following information about each Loan Party
(capitalized terms not specifically defined shall have the meaning set forth in the Agreement): 
  

	1.	Attached as Schedule 5.1(b) is a complete and accurate description of (i) the authorized capital Stock of each Loan Party and each of its Subsidiaries, by class, and the number of shares issued and
outstanding and the names of the owners thereof (including stockholders, members and partners) and their holdings, all as of the date of this Agreement, (ii) all subscriptions, options, warrants or calls relating to any shares of Stock of each
Loan Party and each of its Subsidiaries, including any right of conversion or exchange; (iii) each stockholders’ agreement, restrictive agreement, voting agreement or similar agreement relating to any such capital Stock; and (iv) an
organization chart of each Loan Party and all Subsidiaries. 

  

	2.	Each Loan Party is affiliated with, or has ownership in, the entities (including Subsidiaries) set forth on Schedule 5.1(c). 

  

	3.	The Loan Parties use the following trade name(s) in the operation of their business (e.g. billing, advertising, etc.): 

[                    ] 

 

	4.	Each of the Loan Parties is a registered organization of the following type: 

[                    ] 

  
 Exhibit E 

Page 1 

	5.	The exact legal name (within the meaning of Section 9-503 of the Code) of each Loan Party and each Subsidiary of each Loan Party as set forth in its respective certificate of
incorporation, organization or formation, or other public organic document, as amended to date is set forth in Schedule 5.6(a). 

  

	6.	Each Loan Party and each Subsidiary of each Loan Party is organized solely under the laws of the State set forth on Schedule 5.6(a). Each Loan Party and each Subsidiary of each Loan Party is in good standing
under those laws and no Loan Party is organized in any other State. 

  

	7.	The chief executive office and mailing address of each Loan Party and each Subsidiary of each Loan Party is located at the address set forth on Schedule 5.6(b) hereto. 

 

	8.	The books and records of each Loan Party and each Subsidiary of each Loan Party pertaining to Accounts, contract rights, Inventory, and other assets are located at the addresses specified on Schedule 5.6(b).

  

	9.	The identity and Federal Employer Identification Number of each Loan Party and each Subsidiary of each Loan Party and organizational identification number, if any, is set forth on Schedule 5.6(c). (Please Use
Form Attached) 

  

	10.	No Loan Party has any Commercial Tort Claims, except as set forth on Schedule 5.6(d). 

  

	11.	There are no judgments, actions, suits, proceedings or other litigation pending by or against or threatened by or against any Loan Party, any of its Subsidiaries and/or Affiliates or any of its officers or principals,
except as set forth on Schedule 5.7(b). 

  

	12.	Since its date of organization, the name as set forth in each Loan Party’s organizational documentation filed of record with the applicable state authority has been changed as follows: 

 

			
	Date	  	Prior Name
	[Date]	  	[Prior Name]

  

	13.	Since the dates of their respective organization, the Loan Parties have made or entered into the following mergers or acquisitions: 

[                    ] 

 

	14.	The assets of each Loan Party and of each Subsidiary of each Loan Party are owned and held free and clear of Liens, mortgages, pledges, security interests, encumbrances or charges except as set forth below:

  

					
	 Name and Address

of Secured Party
	 	 Description of Collateral
	 	 File No. of Financing
Statement/Jurisdiction

		 		 	
		 		 	
		 		 	
		 		 	
		 		 	
		 		 	

  
 Exhibit E 

Page 2 

	15.	Each Loan Party and each Subsidiary of each Loan Party has been and remains in compliance with all environmental laws applicable to its business or operations except as set forth on Schedule 5.12.

  

	16.	No Loan Party and no Subsidiary of any Loan Party has any Deposit Accounts, investment accounts, Securities Accounts or similar accounts with any bank, securities intermediary or other financial institution, except as
set forth on Schedule 5.15 for the purposes and of the types indicated therein. 

  

	17.	No Loan Party and no Subsidiary of any Loan Party is a party to or bound by an collective bargaining or similar agreement with any union, labor organization or other bargaining agent except as set forth below(indicate
date of agreement, parties to agreement, description of employees covered, and date of termination) 

  

							
	 Name of Agreement
	 	 Date of

Agreement
	 	 Parties to Agreement
	 	 Date of Expiration /

Termination

		 		 		 	
		 		 		 	
		 		 		 	

  

	18.	Set forth on Schedule 5.17 is a reasonably detailed description of each Material Contract of each Loan Party and its Subsidiaries as of the date of the Agreement. 

 

	19.	Set forth on Schedule 5.19 is a true and complete list of all Indebtedness of each Loan Party and its Subsidiaries outstanding immediately prior to the Closing Date. 

 

	20.	No Loan Party and no Subsidiary of any Loan Party has made any loans or advances or guaranteed or otherwise become liable for the obligations of any others, except as set forth below: 

 

							
	 Name / Address of Debtor
	 	 Outstanding Balance of

Loans as of [Date]
	 	 Secured / Unsecured
	 	 Due Date

		 		 		 	
		 		 		 	
		 		 		 	

  
 Exhibit E 

Page 3 

	21.	No Loan Party has any Chattel Paper (whether tangible or electronic) or instruments as of the date hereof, except as follows: 

[                    ] 

 

	22.	No Loan Party owns or licenses any Trademarks, Patents, Copyrights or other Intellectual Property, and is not a party to any Intellectual Property License except as set forth on Schedule 5.26(b) (indicate type of
Intellectual Property and whether owned or licensed, registration number, date of registration, and, if licensed, the name and address of the licensor) and there are no restrictions in any Intellectual Property License that restrict the sale or
other disposition of any Inventory, Equipment or other property of any Loan Party other than as set forth in Schedule 5.26.(b). 

  

	23.	Schedule 5.26(a) sets forth all Real Property owned by each Loan Party. 

  

	24.	The Inventory, Equipment and other goods of each Loan Party are located only at the locations set forth on Schedule 5.29. 

  

	25.	At the present time, there are no delinquent taxes due (including, but not limited to, all payroll taxes, personal property taxes, real estate taxes or income taxes) of any Loan Party or any Subsidiary of any Loan Party
except as follows: 

[                    ] 

 

	26.	There is no consignment, bill and hold, sale or return, sale on approval or conditional sale arrangements with respect to any Inventory of any Borrower or any other Loan or other goods except as set forth in Schedule
7.15. 

  

	27.	No Borrower or other Loan Party has any Inventory stored with or in the possession of a bailee, warehouseman, processor or other third party except as set forth in Schedule 7.16. 

 

	28.	Schedule 5.31 sets forth all agreements (including any intercreditor agreements) with any issuer of a Surety Bond. 

  

	29.	Schedule 5.32 sets forth all cash collateral or letters of credit to issuers of Surety Bonds. 

  

	30.	Schedule 5.33 sets forth all Bonded Contracts entered into by any Loan Party. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 Exhibit E 

Page 4 

 Lender shall be entitled to rely upon the foregoing in all respects and the undersigned is duly
authorized to execute and deliver this Information Certificate on behalf of each Loan Party. 
  

			
	Very truly yours,
	
	ADMINISTRATIVE BORROWER:
	
	IES HOLDINGS, INC.

		
	By:	 	                                     
                                         
           
	Name:	 	Robert W. Lewey
	Title:	 	Senior Vice President

  
 Exhibit E 

Page 5 

 Schedule 5.1(b) 

TO INFORMATION CERTIFICATE 

Capitalization of Loan Parties 

and Subsidiaries 
 Organization
Chart 
  

											
	 Loan Party
	  	 Authorized

Shares /
 Issued Shares
	  	 Holder
	  	 Type of Rights/Stock

(common/preferred/
option/class)
	  	 Number of Shares

(after exercise of all

rights to acquire shares)
	  	 Percent

Interest (on
 a fully

diluted
 basis)

		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	

  
 Schedule 5.1(b) 

Page 1 

 Schedule 5.1(c) 

TO INFORMATION CERTIFICATE 

Subsidiaries; Affiliates; Investments; Pledged Interests2 

Part 1 – Subsidiaries (More than 50% owned by a Loan Party) 
  

					
	 Name
	  	 Jurisdiction of Organization
	  	 Percentage Owned

		  		  	
		  		  	

 Part 2 – Affiliates (Less than 50% Owned by a Loan Party) 

 

					
	 Name
	  	 Jurisdiction of Organization
	  	 Percentage Owned

		  		  	
		  		  	

 Part 3 – Affiliates (Subject to common ownership with) a Loan Party 

 

							
	 Name
	  	 Jurisdiction of
Organization
	  	 Parent
	  	 Percentage Owned

		  		  		  	
		  		  		  	

 Part 4 - Shareholders (If widely held, only holders with more than 10%) 

 

					
	 Name
	  	 Jurisdiction of Organization
	  	 Percentage Owned

		  		  	
		  		  	

 Part 5 – Pledged Interests 
  

											
	 Name of Pledgor
	  	 Name of Pledged
Company
	  	 Number of

Shares/Units
	  	 Class of
Interests
	  	 Percentage of
Class Owned
	  	 Certificate
Nos.

		  		  		  		  		  	
		  		  		  		  		  	

  

	*	If Shareholders are individuals, indicate “N/A” 

  
 Schedule 5.1(c) 

Page 1 

 Schedule 5.3 

TO INFORMATION CERTIFICATE 

Governmental and Other Consents 

  
 Schedule 5.3 

Page 1 

 Schedule 5.5(a) 

TO INFORMATION CERTIFICATE 
 Exact
Legal Name 
  

	
	 
	
	
	
	

  
 Schedule 5.5(a) 

Page 1 

 Schedule 5.6(a) 

TO INFORMATION CERTIFICATE 

Jurisdiction of Organization 
  

			
	 Name
	  	 Jurisdiction of Organization*

		  	
		  	
		  	
		  	
		  	

  

	*	If Shareholders are individuals, indicate “N/A” 

  
 Schedule 5.6(a) 

Page 1 

 Schedule 5.6(b) 

TO INFORMATION CERTIFICATE 

Locations 
 Part 1 - Chief Executive Office

 [                    ] 

[                    ] 

[                    ] 

Part 2 - Location of Books and Records 

[                    ] 

[                    ] 

[                    ] 

  
 Schedule 5.6(b) 

Page 1 

 Schedule 5.6(c) 

TO INFORMATION CERTIFICATE 

Federal Employer Identification Number 

Organizational Identification Number 
  

					
	 Name
	  	 Federal Employer
Identification Number
	  	 Organizational Identification
Number

		  		  	
		  		  	
		  		  	
		  		  	
		  		  	

  
 Schedule 5.6(c) 

Page 1 

 Schedule 5.6(d) 

TO INFORMATION CERTIFICATE 

Commercial Tort Claims 

  
 Schedule 5.6(d) 

Page 1 

 Schedule 5.7(b) 

TO INFORMATION CERTIFICATE 

Judgments/ Pending Litigation 

  
 Schedule 5.7(b) 

Page 1 

 Schedule 5.12 

TO INFORMATION CERTIFICATE 

Environmental Compliance 

  
 Schedule 5.12 

Page 1 

 Schedule 5.15 

TO INFORMATION CERTIFICATE 

Deposit Accounts; Investment Accounts 
 Part 1
- Deposit Accounts 
  

					
	 Name and Address of Bank
	  	 Account No.
	  	 Purpose*

		  		  	
		  		  	

 Part 2 - Investment and Other Accounts 
  

									
	
Name and Address of Broker
or Other Institution
	  	 Account No.
	  	 Purpose
	  	 Types of Investments
	  	 Balance as of
[Date]

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

	*	For “Purpose” indicate either: “collection account” if proceeds of receivables or other assets are deposited in it, and note “lockbox” if it is subject to lockbox servicing arrangements
with the applicable bank or “disbursement account” if it is a checking account or account used for transferring funds to third parties and note if it is used for a specific purpose, e.g., “payroll”, “medical”,
“insurance”, “escrow” etc. Also, please note any “zero balance” or other automatic sweep or investment sweep accounts 

  
 Schedule 5.15 

Page 1 

 Schedule 5.17 

TO INFORMATION CERTIFICATE 

Material Contracts 
  

							
	 Name of Agreement
	  	 Date of Agreement
	  	 Parties to Agreement
	  	 Date of Expiration /
Termination

		  		  		  	
		  		  		  	
		  		  		  	

  
 Schedule 5.17 

Page 1 

 Schedule 5.19 

TO INFORMATION CERTIFICATE 

Existing Indebtedness 
 Part 1 - Direct Debt

  

							
	 Name/Address of Payee
	  	 Principal Balance

as of [Date]
	  	 Nature of Debt
	  	 Term

		  		  		  	
		  		  		  	
		  		  		  	

 Part 2 - Guarantees 
  

							
	 Name/Address of Payee
	  	 Principal Balance

as of [Date]
	  	 Nature of Debt
	  	 Term

		  		  		  	
		  		  		  	
		  		  		  	

  
 Schedule 5.19 

Page 1 

 Schedule 5.26(a) 

TO INFORMATION CERTIFICATE 
 Owned
Real Estate 

  
 Schedule 5.26(a) 

Page 1 

 Schedule 5.26(b) 

TO INFORMATION CERTIFICATE 

Intellectual Property 
 Part 1 –
Trademarks Owned 
  

							
	 Trademark
	 	 Registration

Number
	 	 Registration

Date
	 	 Expiration

Date

		 		 		 	
		 		 		 	

  

					
	 Trademark

Application
	 	 Application/Serial

Number
	 	 Application

Date

		 		 	
		 		 	

 Part 2 – Trademarks Licensed 
  

							
	 Trademark
	 	 Registration

Number
	 	 Registration

Date
	 	 Expiration

Date

		 		 		 	
		 		 		 	

  

					
	 Trademark

Application
	 	 Application/Serial

Number
	 	 Application

Date

		 		 	
		 		 	

 Part 3 – Patents Owned 
  

							
	 Patent

Description
	 	 Registration

Number
	 	 Registration

Date
	 	 Expiration

Date

		 		 		 	
		 		 		 	

  

					
	 Patent

Application
	 	 Application/Serial

Number
	 	 Application

Date

		 		 	
		 		 	

  
 Schedule 5.26(b) 

Page 1 

 Part 4 – Patents Licensed 
  

							
	 Patent

Description
	 	 Registration

Number
	 	 Registration

Date
	 	 Expiration

Date

		 		 		 	
		 		 		 	

  

					
	 Patent

Application
	 	 Application/Serial

Number
	 	 Application

Date

		 		 	
		 		 	

 Part 5 – Copyrights Owned 
  

					
	 Copyright
	 	 Registration Number
	 	 Registration Date

		 		 	
		 		 	

 Part 6 – Copyrights Licensed 
  

					
	 Copyright
	 	 Registration Number
	 	 Registration Date

		 		 	
		 		 	

 Part 7 – Other License Agreements 
  

									
	 Name of

Document
	 	 Date of

Document
	 	 Licensor
	 	 Term
	 	 License

Intellectual
 Property

		 		 		 		 	
		 		 		 		 	

 [Restrictions] 

  
 Schedule 5.26(b) 

Page 2 

 Schedule 5.26(c) 

TO INFORMATION CERTIFICATE 
 Motor
Vehicles 

  
 Schedule 5.26(c) 

Page 1 

 Schedule 5.29 

TO INFORMATION CERTIFICATE 

Locations of Inventory and Equipment 

Locations of Inventory, Equipment and Other Assets 
  

					
	 Address
	 	 Owned/Leased/Third Party*
	 	 Name/Address of Lessor or

Third Party, as Applicable

		 		 	
		 		 	

  

	*	Indicate in this column next to applicable address whether the location is owned by the Company, licensed by the Company or owned and operated by a third party (e.g., ware house, processor, consignee, etc.)

  
 Schedule 5.29 

Page 1 

 Schedule 5.31 

TO INFORMATION CERTIFICATE 

SURETY AGREEMENTS 

  
 Schedule 5.31 

Page 1 

 Schedule 5.32 

TO INFORMATION CERTIFICATE 
 Cash
Collateral or Letters Of Credit to Issuers of Surety Bonds 

  
 Schedule 5.32 

Page 1 

 Schedule 5.33 

TO INFORMATION CERTIFICATE 

Bonded Contracts 

  
 Schedule 5.33 

Page 1 

 EXHIBIT E-1 

TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

FORM OF SUPPLEMENT TO INFORMATION CERTIFICATE 

OF 
 LOAN PARTIES 

 
  

Dated: [                    ] 

Wells Fargo Bank, National Association 
 MAC S4101-158 

100 W. Washington St. 15th Floor 
 Phoenix, AZ 85003-1808 

Attention: Howard I. Handman 
 This Supplement
(this “Supplement”), dated as of             , 20    , to the Information Certificate, dated as of [    ], 2017 (as
amended, restated, supplemented or otherwise modified from time to time, the “Information Certificate”) by the Administrative Borrower on behalf of each of the Loan Parties (collectively, jointly and severally, “Grantors” and
each individually “Grantor”). 
 Reference is made to that certain Second Amended and Restated Credit and Security Agreement (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) dated as of April 10, 2017, by and among WELLS FARGO BANK, NATIONAL ASSOCIATION (“Lender”), IES HOLDINGS, INC., a Delaware corporation;
IES COMMUNICATIONS, LLC, a Delaware limited liability company; IES COMMERCIAL, INC., a Delaware corporation; IES MANAGEMENT LP, a Texas limited partnership; IES MANAGEMENT ROO, LP, a Texas limited partnership; IES PURCHASING & MATERIALS,
INC., a Delaware corporation; IES RESIDENTIAL, INC., a Delaware corporation; INTEGRATED ELECTRICAL FINANCE, INC., a Delaware corporation; IES SUBSIDIARY HOLDINGS, INC., a Delaware corporation; MAGNETECH INDUSTRIAL SERVICES, INC., an Indiana
corporation; HK ENGINE COMPONENTS, LLC, an Indiana limited liability company; IES RENEWABLE ENERGY, LLC, a Delaware limited liability company SOUTHERN INDUSTRIAL SALES AND SERVICES, INC., a Georgia corporation d/b/a Southern Rewinding and Sales,
CALUMET ARMATURE AND ELECTRIC, L.L.C., an Illinois limited liability company, SHANAHAN MECHANICAL AND ELECTRICAL, INC., a Nebraska corporation, IES INFRASTRUCTURE SOLUTIONS, LLC, a Delaware limited liability company, TECHNIBUS, INC., a Delaware
corporation, FREEMAN ENCLOSURE SYSTEMS, LLC, an Ohio limited liability company, STRATEGIC EDGE LLC, an Ohio limited liability company, IES CONSOLIDATION, LLC, a Delaware limited liability company; IES

  
 Exhibit E-1 

 
PROPERTIES, INC., a Delaware corporation; IES SHARED SERVICES, INC., a Delaware corporation; IES TANGIBLE PROPERTIES, INC., a Delaware corporation; KEY ELECTRICAL SUPPLY, INC., a Texas
corporation; IES OPERATIONS GROUP, INC., a Delaware corporation and ICS HOLDINGS LLC, an Arizona limited liability company. 
 All
initially capitalized terms used herein without definition shall have the meanings ascribed thereto in the Credit Agreement. Administrative Borrower, on behalf of the following Loan Part[y][ies] hereby [supplements][amends and
restates] the following Schedules to the Information Certificate: [    ] as set forth on the corresponding schedules hereto. 

Except as expressly supplemented hereby, the Information Certificate shall remain in full force and effect. 

Lender shall be entitled to rely upon the foregoing in all respects and the undersigned is duly authorized to execute and deliver this
Supplement on behalf of each applicable Loan Party. 
  

			
	 Very truly yours,
  

ADMINISTRATIVE BORROWER:
  

IES HOLDINGS, INC.

		
	By:	 	                                     
                                         
           
	Name:	 	                                     
                                         
           
	Title:	 	                                     
                                         
           

  
 Exhibit E-2 

 EXHIBIT F 

TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

FORM OF 
 PLEDGED INTERESTS
ADDENDUM 
 This Pledged Interests Addendum, dated as of [            ], is delivered
pursuant to Section 6.12(h)(ii) of the Credit Agreement referred to below. The undersigned hereby agrees that this Pledged Interests Addendum may be attached to that certain Second Amended and Restated Credit and Security Agreement,
dated as of April 10, 2017 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), made by the undersigned, together with the other Borrowers and Guarantors named therein, to Wells
Fargo Bank, National Association, as Lender. Initially capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Credit Agreement. The undersigned hereby agrees that the additional interests listed on this
Pledged Interests Addendum as set forth below shall be and become part of the Pledged Interests pledged by the undersigned to the Lender in the Credit Agreement and any pledged company set forth on this Pledged Interests Addendum as set forth below
shall be and become a “Pledged Company” under the Credit Agreement, each with the same force and effect as if originally named therein. 
 The
undersigned hereby certifies that the representations and warranties of the undersigned set forth in Section 5.26 of Exhibit D to the Credit Agreement are true and correct as to the Pledged Interests listed herein on and as of the
date hereof. 
 [Signature Page Follows] 

  
 Exhibit F 

Page 1 

 IN WITNESS WHEREOF, the undersigned has caused this Pledged Interests Addendum to be executed and
delivered as of the day and year first above written. 
  

			
	IES HOLDINGS, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  
 Exhibit F 

Page 2 

 SCHEDULE I 

TO 
 PLEDGED INTERESTS
ADDENDUM 
 Pledged Interests 
  

											
	 Name of Pledgor
	  	 Name of
Pledged
Company
	  	 Number of
Shares/Units
	  	 Class of Interests
	  	 Percentage of
Class Owned
	  	 Certificate Nos.

		  		  		  		  		  	
		  		  		  		  		  	

  
 Exhibit F 

Page 3 

 Schedule A-1 

TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

Collection Account 

  
 Schedule A-1 

Page 1 

 Schedule A-2 

TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

Authorized Person 

  
 Schedule A-2 

Page 1 

 Schedule D-1 

TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

Designated Account 

  
 Schedule D-1 

Page 1 

 Schedule P-1 

TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

Permitted Investments 

  
 Schedule P-1 

Page 1 

 Schedule P-2 

TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT 

Permitted Liens 

  
 Schedule P-2 

Page 1Exhibit 4.1

 

EXECUTION COPY

 

Essex Portfolio, L.P., as Issuer

Essex Property Trust, Inc., as Guarantor

U.S. Bank National Association, as Trustee

 

INDENTURE

Dated as of

 April 10, 2017

3.625% Senior Notes due 2027

 

TABLE OF CONTENTS

Page

 

	
ARTICLE 1

	
DEFINITIONS

	
1

	 	 	 
	
Section 1.01.

	
Definitions

	
1

	 	 	 
	
ARTICLE 2

	
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

	
7

	 	 	 
	
Section 2.01.

	
Designation Amount and Issue of Notes

	
7

	
Section 2.02.

	
Form of Notes

	
7

	
Section 2.03.

	
Date and Denomination of Notes; Payments of Interest

	
8

	
Section 2.04.

	
Execution of Notes

	
9

	
Section 2.05.

	
Note Registrar and Paying Agent

	
9

	
Section 2.06.

	
Exchange and Registration of Transfer of Notes

	
10

	
Section 2.07.

	
Mutilated, Destroyed, Lost or Stolen Notes

	
13

	
Section 2.08.

	
Temporary Notes

	
14

	
Section 2.09.

	
Cancellation of Notes

	
14

	
Section 2.10.

	
CUSIP Numbers

	
14

	
Section 2.11.

	
Issuance of Additional Notes

	
15

	 	 	 
	
ARTICLE 3

	
REDEMPTION OF NOTES

	
15

	 	 	 
	
Section 3.01.

	
Optional Redemption of Notes

	
15

	
Section 3.02.

	
Notice of Optional Redemption; Selection of Notes

	
16

	
Section 3.03.

	
Payment of Notes Called for Redemption by the Issuer

	
16

	
Section 3.04.

	
Sinking Fund

	
17

	 	 	 
	
ARTICLE 4

	
PARTICULAR COVENANTS OF THE ISSUER

	
17

	 	 	 
	
Section 4.01.

	
Payment of Principal, Premium and Interest

	
17

	
Section 4.02.

	
Maintenance of Office or Agency

	
17

	
Section 4.03.

	
Appointments to Fill Vacancies in Trustee’s Office

	
17

	
Section 4.04.

	
Provisions as to Paying Agent.

	
18

	
Section 4.05.

	
Existence

	
18

	
Section 4.06.

	
Reports

	
18

	
Section 4.07.

	
Stay, Extension and Usury Laws

	
19

	
Section 4.08.

	
Compliance Certificate

	
19

	
Section 4.09.

	
Limitations on Incurrence of Debt

	
19

	
Section 4.10.

	
Insurance

	
20

	 	 	 
	
ARTICLE 5

	
NOTEHOLDERS’ LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

	
20

	 	 	 
	
Section 5.01.

	
Noteholders’ Lists

	
20

	
Section 5.02.

	
Preservation and Disclosure of Lists

	
21

	
Section 5.03.

	
Reports by Trustee

	
21

	 	 	 
	
ARTICLE 6

	
REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT

	
21

	 	 	 
	
Section 6.01.

	
Events of Default

	
21

	
Section 6.02.

	
Payments of Notes on Default; Suit Therefor

	
23

	
Section 6.03.

	
Application of Monies Collected by Trustee

	
24

	
Section 6.04.

	
Proceedings by Noteholders

	
25

	
Section 6.05.

	
Proceedings by Trustee

	
25

	
Section 6.06.

	
Remedies Cumulative and Continuing

	
25

	
Section 6.07.

	
Direction of Proceedings and Waiver of Defaults by Majority of Noteholders

	
25

	
Section 6.08.

	
Notice of Defaults

	
26

	
Section 6.09.

	
Undertaking to Pay Costs

	
26

 

	
ARTICLE 7

	
THE TRUSTEE

	
26

	 	 	 
	
Section 7.01.

	
Duties and Responsibilities of Trustee

	
26

	
Section 7.02.

	
Reliance on Documents, Opinions, etc

	
27

	
Section 7.03.

	
No Responsibility for Recitals, etc

	
28

	
Section 7.04.

	
Trustee, Paying Agents or Registrar May Own Notes

	
28

	
Section 7.05.

	
Monies to Be Held in Trust

	
28

	
Section 7.06.

	
Compensation and Expenses of Trustee

	
29

	
Section 7.07.

	
Officers’ Certificate as Evidence

	
29

	
Section 7.08.

	
Conflicting Interests of Trustee

	
29

	
Section 7.09.

	
Eligibility of Trustee

	
29

	
Section 7.10.

	
Resignation or Removal of Trustee

	
30

	
Section 7.11.

	
Acceptance by Successor Trustee

	
31

	
Section 7.12.

	
Succession by Merger

	
31

	
Section 7.13.

	
Preferential Collection of Claims

	
31

	 	 	 
	
ARTICLE 8

	
THE NOTEHOLDERS

	
32

	 	 	 
	
Section 8.01.

	
Action by Noteholders

	
32

	
Section 8.02.

	
Proof of Execution by Noteholders

	
32

	
Section 8.03.

	
Absolute Owners

	
32

	
Section 8.04.

	
Issuer-owned Notes Disregarded

	
32

	
Section 8.05.

	
Revocation of Consents; Future Holders Bound

	
32

	 	 	 
	
ARTICLE 9

	
SUPPLEMENTAL INDENTURES

	
33

	 	 	 
	
Section 9.01.

	
Supplemental Indentures Without Consent of Noteholders

	
33

	
Section 9.02.

	
Supplemental Indenture With Consent of Noteholders

	
34

	
Section 9.03.

	
Effect of Supplemental Indenture

	
34

	
Section 9.04.

	
Notation on Notes

	
34

	
Section 9.05.

	
Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee

	
34

	 	 	 
	
ARTICLE 10

	
CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

	
35

	 	 	 
	
Section 10.01.

	
Issuer May Consolidate on Certain Terms

	
35

	
Section 10.02.

	
Issuer Successor to Be Substituted

	
35

	
Section 10.03.

	
Guarantor May Consolidate on Certain Terms

	
35

	
Section 10.04.

	
Guarantor Successor to Be Substituted

	
36

	 	 	 
	
ARTICLE 11

	
SATISFACTION AND DISCHARGE OF INDENTURE

	
36

	 	 	 
	
Section 11.01.

	
Discharge of Indenture

	
36

	
Section 11.02.

	
Deposited Monies to Be Held in Trust by Trustee

	
37

	
Section 11.03.

	
Paying Agent Application of Monies Held

	
37

	
Section 11.04.

	
Return of Unclaimed Monies

	
37

	
Section 11.05.

	
Reinstatement

	
37

	 	 	 
	
ARTICLE 12

	
LEGAL DEFEASANCE AND COVENANT DEFEASANCE

	
37

	 	 	 
	
Section 12.01.

	
Option to Effect Legal Defeasance or Covenant Defeasance

	
37

	
Section 12.02.

	
Legal Defeasance and Discharge

	
37

	
Section 12.03.

	
Covenant Defeasance

	
38

	
Section 12.04.

	
Conditions to Legal or Covenant Defeasance

	
38

	
Section 12.05.

	
Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions

	
39

	
Section 12.06.

	
Repayment to Issuer

	
40

	
Section 12.07.

	
Reinstatement

	
40

 

ii

	
ARTICLE 13

	
IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

	
40

	 	 	 
	
Section 13.01.

	
Indenture and Notes Solely Corporate Obligations

	
40

	 	 	 
	
ARTICLE 14

	
MEETINGS OF HOLDERS OF NOTES

	
41

	 	 	 
	
Section 14.01.

	
Purposes for Which Meetings May Be Called

	
41

	
Section 14.02.

	
Call, Notice and Place of Meetings

	
41

	
Section 14.03.

	
Persons Entitled to Vote at Meetings

	
41

	
Section 14.04.

	
Quorum; Action

	
41

	
Section 14.05.

	
Determination of Voting Rights; Conduct and Adjournment of Meetings

	
42

	
Section 14.06.

	
Counting Votes and Recording Action of Meetings

	
42

	 	 	 
	
ARTICLE 15

	
GUARANTEE

	
42

	 	 	 
	
Section 15.01.

	
Guarantee

	
42

	
Section 15.02.

	
Execution and Delivery of Guarantee

	
43

	
Section 15.03.

	
Limitation of Guarantor’s Liability; Certain Bankruptcy Events

	
43

	
Section 15.04.

	
Application of Certain Terms and Provisions to the Guarantor

	
43

	 	 	 
	
ARTICLE 16

	
MISCELLANEOUS PROVISIONS

	
44

	 	 	 
	
Section 16.01.

	
Provisions Binding on Issuer’s and Guarantor’s Successors

	
44

	
Section 16.02.

	
Official Acts by Successor Corporation

	
44

	
Section 16.03.

	
Addresses for Notices, etc

	
44

	
Section 16.04.

	
Governing Law

	
45

	
Section 16.05.

	
Evidence of Compliance with Conditions Precedent, Certificates to Trustee

	
45

	
Section 16.06.

	
Legal Holidays

	
45

	
Section 16.07.

	
Trust Indenture Act

	
45

	
Section 16.08.

	
No Security Interest Created

	
45

	
Section 16.09.

	
Benefits of Indenture

	
45

	
Section 16.10.

	
Table of Contents, Headings, etc

	
45

	
Section 16.11.

	
Authenticating Agent

	
45

	
Section 16.12.

	
Execution in Counterparts

	
46

	
Section 16.13.

	
Severability

	
46

	
Section 16.14.

	
USA Patriot Act

	
46

 

iii

CROSS REFERENCE TABLE*

	
Trust Indenture Act Section

	 	
Indenture Section

	
310(a)(1)

	 	
7.09

	
(a)(2)

	 	
7.09

	
(a)(3)

	 	
N.A.

	
(a)(4)

	 	
N.A.

	
(a)(5)

	 	
N.A.

	
(b)

	 	
7.08, 7.10

	
311(a)

	 	
7.13

	
(b)

	 	
7.13

	
312(a)

	 	
5.01, 5.02

	
(b)

	 	
5.02

	
(c)

	 	
5.02

	
313(a)

	 	
5.03

	
(b)

	 	
5.03

	
(c)

	 	
5.03

	
(d)

	 	
5.03

	
314(a)

	 	
4.06, 4.08

	
(b)

	 	
N.A.

	
(c)(1)

	 	
16.05

	
(c)(2)

	 	
16.05

	
(c)(3)

	 	
N.A.

	
(d)

	 	
N.A.

	
(e)

	 	
16.05

	
(f)

	 	
N.A.

	
315(a)

	 	
7.01

	
(b)

	 	
6.08

	
(c)

	 	
7.01

	
(d)

	 	
7.01

	
(e)

	 	
6.09

	
316(a)(1)(A)

	 	
6.07

	
(a)(1)(B)

	 	
6.07

	
(a)(2)

	 	
N.A.

	
(b)

	 	
N.A.

	
(c)

	 	
N.A.

	
317(a)(1)

	 	
6.02

	
(a)(2)

	 	
6.02

	
(b)

	 	
11.03

	
318(a)

	 	
N.A.

 

 N.A. means not applicable.

* This Cross-Reference Table is not part of the Indenture.

INDENTURE

 

INDENTURE dated as of April 10, 2017 among Essex Portfolio, L.P., a California limited partnership (hereinafter called the “Issuer”), Essex Property Trust, Inc., a Maryland corporation (hereinafter called the “Guarantor” or, in its capacity as the sole general partner of the Issuer, the “General Partner”), each having its principal office at Essex Portfolio, L.P., 1100 Park Place, Suite 200, San Mateo, California 94403, and U.S. Bank National Association, as trustee hereunder (hereinafter called the “Trustee”). Each party agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the holders of the Issuer’s 3.625% Senior Notes due 2027 (hereinafter called the “Notes”) guaranteed by the Guarantor.

 

ARTICLE 1

 Definitions

 

Section 1.01.        Definitions. The terms defined in this Section 1.01 (except as herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section 1.01. All other terms used in this Indenture that are defined in the Trust Indenture Act (as defined below) or which are by reference therein defined in the Securities Act (as defined below) (except as herein otherwise expressly provided or unless the context otherwise requires) shall have the respective meanings assigned to such terms in the Trust Indenture Act and in the Securities Act as in force at the date of the execution of this Indenture.

 

Except as otherwise expressly provided in or pursuant to this Indenture or unless the context otherwise requires, for all purposes of this Indenture and any indenture supplemental hereto:

 

(1)        the terms defined in this Article include the plural as well as the singular;

 

(2)        all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP;

 

(3)        the words “herein”, “hereof”, “hereto” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision;

 

(4)        references herein to the Articles, Sections and other subdivisions shall be to the Articles, Sections and other subdivisions of this Indenture;

 

(5)        the word “or” is used inclusively (for example, the phrase “A or B” means “A or B or both”, not “either A or B but not both”);

 

(6)        provisions apply to successive events and transactions;

 

(7)        the term “merger” includes a statutory share exchange and the terms “merge” and “merged” have correlative meanings;

 

(8)        the masculine gender includes the feminine and the neuter; and

 

(9)        references to agreements and other instruments include subsequent amendments and supplements thereto.

 

“Acquired Debt” means Debt of a Person (i) existing at the time such Person becomes a Subsidiary of the Issuer or (ii) assumed in connection with the acquisition of assets from such Person, in each case, other than Debt incurred in connection with, or in contemplation of, such Person becoming such a Subsidiary or such acquisition. Acquired Debt shall be deemed to be incurred on the date of the related acquisition of assets from any Person or the date the acquired Person becomes such a Subsidiary.

 

“Additional Notes” means additional Notes (other than the Initial Notes) issued under this Indenture in accordance with Sections 2.04 and 2.11 hereof, as part of the same series as the Initial Notes.

-1-

“Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control,” when used with respect to any specified Person means the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Agent” means any Note Registrar, co-registrar, Paying Agent, additional paying agent or authentication agent.

 

“Annual Debt Service Charge” for any period means the maximum amount which is payable during such period for interest on, and original issue discount of, Debt of the Issuer and its Subsidiaries and the amount of any dividends which are payable during such period in respect of any Disqualified Stock.

 

“Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and procedures of the Depositary.

 

“Authentication Order” has the meaning specified in Section 2.01.

 

“Bankruptcy Law” means Title 11, U.S. Code or any similar federal, state, or foreign law for the relief of debtors.

 

“Benefited Party” has the meaning specified in Section 15.01.

 

“Board of Directors” means the board of directors of the General Partner or a committee of such board duly authorized to act for it hereunder.

 

“Business Day” means, with respect to any Note, any day, other than a Saturday, Sunday or any other day on which banking institutions in New York, New York are authorized or obligated by law or executive order to close.

 

“Capital Stock” means any capital stock (including preferred stock), shares, interests, participations or other ownership interests (however designated) of the Issuer or any of its Subsidiaries and any rights (other than debt securities convertible into or exchangeable for corporate stock), warrants or options to purchase any thereof.

 

“Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after the execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed (assuming the Notes to be redeemed matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes (assuming such Notes matured on the Par Call Date).

 

“Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such Quotations.

 

“Consolidated Income Available for Debt Service” for any period means Earnings from Operations of the Issuer and its Subsidiaries plus amounts which have been deducted, and minus amounts which have been added, for the following (without duplication): (i) interest on Debt of the Issuer and its Subsidiaries, (ii) provision for taxes of the Issuer and its Subsidiaries based on income, (iii) amortization of debt discount and other deferred financing costs, (iv) provisions for gains and losses on properties and property depreciation and amortization, (v) the effect of any noncash charge resulting from a change in accounting principles in determining Earnings from Operations for such period and (vi) amortization of deferred charges.

-2-

“Corporate Trust Office” or other similar term, means the designated office of the Trustee at which, at any particular time, its corporate trust business as it relates to this Indenture shall be administered, which office is, at the date as of which this Indenture is dated, located at the address set forth in Section 16.03.

 

“Covenant Defeasance” has the meaning specified in Section 12.03.

 

“CUSIP” means the Committee on Uniform Securities Identification Procedures.

 

“Custodian” means U.S. Bank National Association, as custodian with respect to the Notes in global form, or any successor entity thereto.

 

“Debt” means, without duplication, any indebtedness of the Issuer and its Subsidiaries, whether or not contingent, in respect of (i) borrowed money or evidenced by bonds, notes, debentures or similar instruments, (ii) indebtedness for borrowed money secured by any Encumbrance existing on property owned by the Issuer or any of its Subsidiaries, (iii) the reimbursement obligations, contingent or otherwise, in connection with any letters of credit actually issued (other than letters of credit issued to provide credit enhancement or support with respect to other indebtedness of the Issuer or any of its Subsidiaries otherwise reflected as Debt hereunder) or amounts representing the balance deferred and unpaid of the purchase price of any property or services, except any such balance that constitutes an accrued expense or trade payable, or all conditional sale obligations or obligations under any title retention agreement, (iv) the principal amount of all obligations of the Issuer or any of its Subsidiaries with respect to redemption, repayment or other repurchase of any Disqualified Stock, (v) any lease of property by the Issuer or any of its Subsidiaries as lessee which is reflected on the consolidated balance sheet of the Issuer and its Subsidiaries as a capitalized lease in accordance with U.S. generally accepted accounting principles, or (vi) interest rate swaps, caps or similar agreements and foreign exchange contracts, currency swaps or similar agreements, to the extent, in the case of items of indebtedness under (i) through (iii) above, that any such items (other than letters of credit) would appear as a liability on the consolidated balance sheet of the Issuer and its Subsidiaries in accordance with U.S. generally accepted accounting principles, and also includes, to the extent not otherwise included, any obligation by the Issuer or any of its Subsidiaries to be liable for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business), Debt of another Person (other than the Issuer or any of its Subsidiaries) (it being understood that Debt shall be deemed to be incurred by the Issuer or any of its Subsidiaries whenever the Issuer or any of its Subsidiaries shall create, assume, guarantee or otherwise become liable in respect thereof).

 

“Default” means any event which, after notice or the lapse of time, or both, would become, an Event of Default.

 

“Defaulted Interest” has the meaning specified in Section 2.03.

 

“Definitive Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with Section 2.06 hereof, substantially in the form of Exhibit A hereto except that such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges of Interests in the Global Note” attached thereto.

 

“Depositary” means the clearing agency registered under the Exchange Act that is designated to act as the Depositary for the Global Notes. DTC shall be the initial Depositary, until a successor shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary” shall mean or include such successor.

 

“Disqualified Stock” means any Capital Stock of the Issuer or any of its Subsidiaries which by the terms of such Capital Stock (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the happening of any event or otherwise (i) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (other than Capital Stock which is redeemable solely in exchange for common stock), (ii) is convertible into or exchangeable or exercisable for Debt or Disqualified Stock or (iii) is redeemable at the option of the holder thereof, in whole or in part (other than Capital Stock which is redeemable solely in exchange for Capital Stock which is not Disqualified Stock), in each case on or prior to the maturity of the Notes.

-3-

“DTC” means The Depository Trust Company.

 

“Earnings from Operations” for any period means net earnings excluding gains and losses on sales of investments, extraordinary items, and property valuation gains and losses, as reflected in the financial statements of the Issuer and its Subsidiaries for such period determined on a consolidated basis in accordance with U.S. generally accepted accounting principles.

 

“Encumbrance” means any mortgage, deed of trust, lien, charge, pledge, security interest, security agreement or other encumbrance of any kind.

 

“Event of Default” means any event specified in Section 6.01 as an Event of Default.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time.

 

“GAAP” means generally accepted accounting principles, as in effect from time to time, as used in the United States of America applied on a consistent basis.

 

“General Partner” means the corporation named as the “General Partner” in the first paragraph of this Indenture, and, subject to the provisions of Article 10, shall include its successors and assigns.

 

“Global Note Legend” means the legend set forth in Section 2.06(f) hereof, which is required to be placed on all Global Notes issued under this Indenture.

 

“Global Notes” means, individually and collectively, each of the Global Notes deposited with or on behalf of and registered in the name of the Depositary or its nominee, substantially in the form of Exhibit A hereto and that bears the Global Note Legend and that has the “Schedule of Exchanges of Interests in the Global Note” attached thereto, issued in accordance with this Indenture.

 

“Government Securities” means direct obligations of, or obligations guaranteed by, the United States of America, and the payment for which the United States pledges its full faith and credit.

 

“Guarantee” means the full and unconditional guarantee provided by the Guarantor in respect of the Notes as made applicable to the Notes in accordance with the provisions of Section 15.01 hereof.

 

“Guarantee Obligations” has the meaning specified in Section 15.01.

 

“Guarantor” means the corporation named as the “Guarantor” in the first paragraph of this Indenture, and, subject to the provisions of Article 10, shall include its successors and assigns.

 

“Indenture” means this instrument as originally executed or, if amended or supplemented as herein provided, as so amended or supplemented.

 

“Indirect Participant” means a Person who holds a beneficial interest in a Global Note through a Participant.

 

“Initial Notes” means the first $350,000,000 of aggregate principal amount of Notes issued under this Indenture on the date hereof.

 

“interest” means, when used with reference to the Notes, any interest payable under the terms of the Notes.

 

“Issuer” means the limited partnership named as the “Issuer” in the first paragraph of this Indenture, and, subject to the provisions of Article 10, shall include its successors and assigns.

-4-

“Legal Defeasance” has the meaning specified in Section 12.02.

 

“Maturity Date” means May 1, 2027.

 

“Note” or “Notes” means any Note or Notes, as the case may be, authenticated and delivered under this Indenture, including the Initial Notes, any Additional Notes and any Global Note.

 

“Note Register” has the meaning specified in Section 2.05.

 

“Note Registrar” has the meaning specified in Section 2.05.

 

“Noteholder” or “Holder” as applied to any Note, or other similar terms (but excluding the term “beneficial holder”), means any Person in whose name at the time a particular Note is registered on the Note Registrar’s books.

 

“Officer” means any person holding any of the following positions with the General Partner or the Issuer: the Chairman of the Board, the Chief Executive Officer, the President, any Vice President (whether or not designated by a number or numbers or word or words added before or after the title “Vice President”), the Chief Financial Officer, the Treasurer and the Secretary.

 

“Officers’ Certificate,” when used with respect to the Issuer, means a certificate signed by any two Officers or by one such Officer and any Assistant Treasurer or Assistant Secretary of the General Partner or the Issuer.

 

“Opinion of Counsel” means an opinion in writing signed by legal counsel, who may be an employee of or counsel to the Issuer, or other counsel reasonably acceptable to the Trustee.

 

“outstanding,” when used with reference to Notes and subject to the provisions of Section 8.04, means, as of any particular time, all Notes authenticated and delivered by the Trustee under this Indenture, except:

 

(1)        Notes theretofore canceled by the Trustee or delivered to the Trustee for cancellation;

 

(2)        Notes, or portions thereof, (i) for the redemption of which monies in the necessary amount shall have been deposited in trust with the Trustee or with any Paying Agent (other than the Issuer or the Guarantor) or (ii) which shall have been otherwise discharged in accordance with Article 11;

 

(3)        Notes in lieu of which, or in substitution for which, other Notes shall have been authenticated and delivered pursuant to the terms of Section 2.07; and

 

(4)        Notes paid or redeemed pursuant to Article 3.

 

“Par Call Date” means February 1, 2027.

 

“Participant” means, with respect to the Depositary, a Person who has an account with the Depositary.

 

“Paying Agent” has the meaning specified in Section 2.05.

 

“Person” means a corporation, an association, a partnership, a limited liability company, an individual, a joint venture, a joint stock company, a trust, an unincorporated organization or a government or an agency or a political subdivision thereof.

 

“Predecessor Note” of any particular Note means every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note, and, for the purposes of this definition, any Note authenticated and delivered under Section 2.07 in lieu of a lost, mutilated, destroyed or stolen Note shall be deemed to evidence the same debt as the lost, mutilated, destroyed or stolen Note that it replaces.

 

“premium” means any premium payable under the terms of the Notes.

-5-

“Prospectus” means collectively the prospectus supplement dated April 3, 2017 relating to the Notes and the related prospectus dated March 4, 2016, including the documents incorporated or deemed to be incorporated by reference therein.

 

“Quotation Agent” means the Reference Treasury Dealer appointed by the Issuer.

 

“Record Date” has the meaning specified in Section 2.03.

 

“Redemption Date” means, with respect to any Note or portion thereof to be redeemed in accordance with the provisions of Section 3.01 hereof, the date fixed for such redemption in accordance with the provisions of Section 3.01 hereof.

 

“Redemption Price” has the meaning provided in Section 3.01 hereof.

 

“Reference Treasury Dealer” means each of (1) Wells Fargo Securities, LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC and their respective successors or their respective affiliates who are Primary Treasury Dealers (as defined below), (2) a Primary Treasury Dealer selected by each of MUFG Securities Americas Inc. and U.S. Bancorp Investments, Inc. and their respective successors and (3) any one other Primary Treasury Dealer selected by the Issuer; provided, however, that if any of the Reference Treasury Dealers ceases to be a primary U.S. Government securities dealer (“Primary Treasury Dealer”), the Issuer will substitute therefor another Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by Issuer, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

 

“Responsible Officer” shall mean, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee with direct responsibility for the administration of this Indenture and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of such person’s knowledge of or familiarity with the particular subject.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time.

 

“Significant Subsidiary” has the meaning specified in Section 6.01(d).

 

“Stated Maturity,” with respect to any Note or any installment of principal thereof or interest thereon, means the date established by or pursuant to this Indenture or such Note as the fixed date on which the principal of such Note or such installment of principal or interest is due and payable.

 

“Subsidiary” means, with respect to any Person, (i) any corporation, association or other business entity of which more than 50% of the total voting power of shares of capital stock or other equity interest entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other subsidiaries of that Person (or a combination thereof) and (ii) any partnership (a) the sole general partner or managing general partner of which is such Person or a subsidiary of such Person or (b) the only general partners of which are such Person or of one or more subsidiaries of such Person (or any combination thereof).

 

“Total Assets” as of any date means the sum of (without duplication) (i) Undepreciated Real Estate Assets and (ii) all other assets (excluding accounts receivable and intangibles) of the Issuer and its Subsidiaries, all determined on a consolidated basis in accordance with U.S. generally accepted accounting principles.

 

“Total Unencumbered Assets” means the sum of (without duplication) (i) those Undepreciated Real Estate Assets which are not subject to an Encumbrance securing Debt and (ii) all other assets (excluding accounts receivable, intangibles and unconsolidated equity interests in funds and joint ventures) of the Issuer and its Subsidiaries not subject to an Encumbrance securing Debt, all determined on a consolidated basis in accordance with U.S. generally accepted accounting principles.

-6-

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as it was in force at the date of this Indenture; provided that if the Trust Indenture Act of 1939 is amended after the date hereof, the term “Trust Indenture Act” shall mean, to the extent required by such amendment, the Trust Indenture Act of 1939 as so amended.

 

“Trustee” means U.S. Bank National Association, and its successors and any corporation resulting from or surviving any consolidation or merger to which it or its successors may be a party and any successor trustee at the time serving as successor trustee hereunder.

 

“Undepreciated Real Estate Assets” means, as of any date, the cost (original cost plus capital improvements) of real estate assets of the Issuer and its Subsidiaries on such date, before depreciation and amortization, all determined on a consolidated basis in accordance with U.S. generally accepted accounting principles.

 

“Unsecured Debt” means Debt of the Issuer or any of its Subsidiaries which is not secured by an Encumbrance on any property or assets of the Issuer or any of its Subsidiaries.

 

“USA Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Patriot Act), Pub. L. 107-56 and all other United States laws and regulations relating to money-laundering and terrorist activities.

 

ARTICLE 2

 Issue, Description, Execution, Registration and Exchange of Notes

 

Section 2.01.        Designation Amount and Issue of Notes. The Notes shall be designated as “3.625 % Senior Notes due 2027.” Upon the execution of this Indenture, and from time to time thereafter, Notes may be executed by the Issuer and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver Notes upon a written order of the Issuer (an “Authentication Order”), such order signed by two Officers or by an Officer and either an Assistant Treasurer of the General Partner or the Issuer or any Assistant Secretary of the General Partner or the Issuer, without any further action by the Issuer hereunder.

 

The aggregate principal amount of Notes which may be authenticated and delivered under this Indenture is unlimited, provided that upon initial issuance the principal amount of Notes outstanding shall not exceed $350,000,000, except as provided in Sections 2.07 and 2.08. The Issuer may, without the consent of the Holders of Notes, issue Additional Notes from time to time in the future in an unlimited principal amount, subject to compliance with the terms of this Indenture, including Section 2.11.

 

Section 2.02.        Form of Notes. Notes issued in global form will be substantially in the form of Exhibit A hereto (including the Global Note Legend thereon and the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Notes issued in definitive form will be substantially in the form of Exhibit A hereto (but without the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Each Global Note will represent such of the outstanding Notes as will be specified therein and each shall provide that it represents the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby will be made by the Trustee or the Custodian, at the direction of the Trustee. The terms and provisions contained in the form of Note attached as Exhibit A hereto shall constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable, the Issuer and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby.

 

Any of the Notes may have such letters, numbers or other marks of identification and such notations, legends, endorsements or changes as the officers executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this Indenture, or as may be required by the Custodian, the Depositary or as may be required for the Notes to be tradable on any market existing or developed for trading of securities or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange or automated quotation system on which the Notes may be listed, or to conform to usage, or to indicate any special limitations or restrictions to which any particular Notes are subject.

-7-

So long as the Notes are eligible for book-entry settlement with the Depositary, or unless otherwise required by law, or otherwise contemplated by Section 2.06(a), all of the Notes will be represented by one or more Global Notes. The transfer and exchange of beneficial interests in any such Global Note shall be effected through the Depositary in accordance with this Indenture and the Applicable Procedures of the Depositary. Except as provided in Section 2.06(a), beneficial owners of a Global Note shall not be entitled to have certificates registered in their names, will not receive or be entitled to receive physical delivery of certificates in definitive form and will not be considered Holders of such Global Note.

 

Section 2.03.        Date and Denomination of Notes; Payments of Interest. The Notes shall be issuable in registered form without coupons in minimum denominations of $2,000 principal amount and integral multiples of $1,000 in excess thereof. Each Note shall be dated the date of its authentication and shall bear interest from the date specified on the face of the form of Note attached as Exhibit A hereto. Interest on the Notes shall be computed on the basis of a 360-day year consisting of twelve 30-day months.

 

The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register at 5:00 p.m., New York City time, on any Record Date with respect to any interest payment date shall be entitled to receive the interest payable on such interest payment date. Interest shall be payable at the office of the Issuer maintained by the Issuer for such purposes in The City of New York, which shall initially be an office or agency of the Trustee. The Issuer shall pay interest (i) on any Definitive Note by check mailed to the address of the Person entitled thereto as it appears in the Note Register; provided, however, that a Holder of any Definitive Note may specify by written notice to the Issuer that it pay interest by wire transfer of immediately available funds to the account specified by the Noteholder in such notice, or (ii) on any Global Note by wire transfer of immediately available funds to the account of the Depositary or its nominee. If a payment date is not a Business Day, payment shall be made on the next succeeding Business Day, and no additional interest shall accrue thereon. The term “Record Date” with respect to any interest payment date shall mean the April 15th or October 15th preceding the applicable May 1st or November 1st interest payment date, respectively.

 

No other payment or adjustment will be made for accrued interest on an exchanged Note.

 

Any interest on any Note which is payable, but is not punctually paid or duly provided for, on any interest payment date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Noteholder registered as such on the relevant Record Date, and such Defaulted Interest shall be paid by the Issuer, at its election in each case, as provided in clause (1) or (2) below:

 

(1)        The Issuer may elect to make payment of any Defaulted Interest to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at 5:00 p.m., New York City time, on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Issuer shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed payment (which shall be not less than twenty-five (25) calendar days after the receipt by the Trustee of such notice, unless the Trustee shall consent to an earlier date), and at the same time the Issuer shall deposit with the Trustee an amount of monies equal to the aggregate amount to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such monies when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall be not more than fifteen (15) calendar days and not less than ten (10) calendar days prior to the date of the proposed payment, and not less than ten (10) calendar days after the receipt by the Trustee of the notice of the proposed payment (unless, the Trustee shall consent to an earlier date). The Trustee shall promptly notify the Issuer of such special record date and, in the name and at the expense of the Issuer, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed (or sent by electronic transmission), first-class postage prepaid, to each Holder at its address as it appears in the Note Register, not less than ten (10) calendar days prior to such special record date (unless, the Trustee shall consent to an earlier date). Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at 5:00 p.m., New York City time, on such special record date and shall no longer be payable pursuant to the following clause (b) of this Section 2.03.

-8-

(2)        The Issuer may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange or automated quotation system on which the Notes may be listed or designated for issuance, and upon such notice as may be required by such exchange or automated quotation system, if, after notice given by the Issuer to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 

Section 2.04.        Execution of Notes. The Notes shall be signed in the name and on behalf of the Issuer by the General Partner by the manual or facsimile signature of an Officer. The Trustee will, upon receipt of an Authentication Order, authenticate Notes for issue under this Indenture, including any Additional Notes. The aggregate principal amount of Notes outstanding at any time may not exceed the aggregate principal amount of Notes authorized for issuance by the Issuer pursuant to one or more Authentication Orders, except as provided in Sections 2.07 and 2.08 hereof.

 

Only such Notes as shall bear thereon a certificate of authentication substantially in the form set forth on the form of Note attached as Exhibit A hereto, executed manually by the Trustee (or an authenticating agent appointed by the Trustee as provided by Section 16.11), shall be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee (or such an authenticating agent) upon any Note executed by the Issuer shall be conclusive evidence that the Note so authenticated has been duly authenticated and delivered hereunder and that the Holder is entitled to the benefits of this Indenture.

 

In case any Officer who shall have signed any of the Notes shall cease to be such Officer before the Notes so signed shall have been authenticated and delivered by the Trustee, or disposed of by the Issuer, such Notes nevertheless may be authenticated and delivered or disposed of as though the person who signed such Notes had not ceased to be such Officer, and any Note may be signed on behalf of the Issuer by such persons as, at the actual date of the execution of such Note, shall be the proper Officers, although at the date of the execution of this Indenture any such person was not such an Officer.

 

Section 2.05.        Note Registrar and Paying Agent. The Issuer will maintain an office or agency where Notes may be presented for registration of transfer or for exchange (“Note Registrar”) and an office or agency where Notes may be presented for payment (“Paying Agent”).The Note Registrar will keep a register of the Notes and of their transfer and exchange (the “Note Register”). The Issuer may appoint one or more co-registrars and one or more additional paying agents. The term “Note Registrar” includes any co-registrar and the term “Paying Agent” includes any additional paying agent. The Issuer may change any Paying Agent or Note Registrar without notice to any Holder. The Issuer will notify the Trustee in writing of the name and address of any Agent not a party to this Indenture. If the Issuer fails to appoint or maintain another entity as Note Registrar or Paying Agent, the Trustee shall act as such. The Issuer or any of its Subsidiaries may act as Paying Agent or Note Registrar.

 

The Issuer initially appoints DTC to act as Depositary with respect to the Global Notes.

 

The Issuer initially appoints the Trustee to act as the Note Registrar and Paying Agent and to act as Custodian with respect to the Global Notes.

 

The Issuer will require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal, premium, if any, or interest on the Notes, and will notify the Trustee of any default by the Issuer (or any other obligor upon the Notes) in making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Issuer at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Issuer, Guarantor or a Subsidiary of the Issuer) will have no further liability for the money. If the Issuer, Guarantor or a Subsidiary of the Issuer acts as Paying Agent, it will segregate and hold in a separate trust fund for the benefit of the Holders or the Trustee all money held by it as Paying Agent and shall promptly notify the Trustee of any failure to take such action and of any failure by the Issuer (or any other obligor under the Notes) to make any payment of the principal of or interest on the Notes when the same shall become due and payable. Upon any bankruptcy or reorganization proceedings relating to the Issuer, the Trustee will serve as Paying Agent for the Notes.

-9-

Section 2.06.        Exchange and Registration of Transfer of Notes.

 

(a)        Transfer and Exchange of Global Notes. A Global Note may not be transferred except as a whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. All Global Notes will be exchanged by the Issuer for Definitive Notes if:

 

(1)        the Issuer delivers to the Trustee notice from the Depositary that it is unwilling or unable to continue to act as Depositary or that it has ceased to be a clearing agency registered under the Exchange Act and, in either case, a successor Depositary is not appointed by the Issuer within 120 days after the date of such notice from the Depositary;

 

(2)        the Issuer in its sole discretion determines that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes and delivers a written notice to such effect to the Trustee; or

 

(3)        the Depositary so requests and there has occurred and is continuing a Default or Event of Default with respect to the Notes.

 

Upon the occurrence of any of the preceding events in (1), (2) or (3) above, Definitive Notes shall be issued in such names as the Depositary in accordance with the Applicable Procedures shall instruct the Note Registrar. Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and 2.08 hereof. Except as provided this Section 2.06(a), every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.06 or Section 2.07 or 2.08 hereof, shall be authenticated and delivered in the form of, and shall be, a Global Note. Any Note that is registered in the name of a Person other than the Depositary or a nominee thereof shall not be a Global Note. A Global Note may not be exchanged for another Note other than as provided in this Section 2.06(a). However, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 2.06(b) or (c) hereof.

 

(b)        Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in the Global Notes will be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures of the Depositary. Transfers of beneficial interests in the Global Notes also will require compliance with either subparagraph (1) or (2) below, as applicable:

 

(1)        Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in any Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Global Note. No written orders or instructions shall be required to be delivered to the Note Registrar to effect the transfers described in this Section 2.06(b)(1).

 

(2)        All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In connection with all transfers and exchanges of beneficial interests in the Global Notes that are not subject to Section 2.06(b)(1) above, any such transfer or exchange must comply with the Applicable Procedures and Section 2.06(c) below if applicable and the transferor of such beneficial interest must deliver to the Note Registrar either:

 

(A)        both:

 

(i)        a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged; and

 

(ii)        instructions given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such increase; or

-10-

(B)        both:

 

(i)        a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred or exchanged; and

 

(ii)        instructions given by the Depositary to the Note Registrar containing information regarding the Person in whose name such Definitive Note shall be registered to effect the transfer or exchange referred to in (i) above.

 

Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Notes contained in this Indenture and the Notes or otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 2.06(g) hereof.

 

(c)        Transfer or Exchange of Beneficial Interests for Definitive Notes. If any holder of a beneficial interest in a Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.06(b)(2)(B) hereof, the Trustee will cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(g) hereof, and the Issuer will execute and the Trustee will authenticate and deliver to the Persons as specified below a Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange for or upon transfer of a beneficial interest in a Global Note pursuant to this Section 2.06(c) will be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest requests through instructions to the Note Registrar from the Depositary or Participant or Indirect Participant through the Depositary. The Trustee will deliver such Definitive Notes to the Persons in whose names such Notes are so registered.

 

(d)        Transfer and Exchange of Definitive Notes for Beneficial Interests. Upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.06(d), the Note Registrar will register the transfer or exchange of Definitive Notes for a beneficial interest in a Global Note as provided herein. Prior to such registration of transfer or exchange, the requesting Holder must present or surrender to the Note Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Note Registrar duly executed by such Holder or by its attorney, duly authorized in writing. A Holder of a Definitive Note may exchange such Note for a beneficial interest in a Global Note in accordance with the Applicable Procedures or transfer such Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in a Global Note in accordance with the Applicable Procedures at any time. Upon receipt of a request for such an exchange or transfer, the Trustee will cancel the applicable Definitive Note and increase or cause to be increased the aggregate principal amount of a Global Note.

 

(e)        Transfer of Definitive Notes for Definitive Notes. If Definitive Notes have been issued in accordance with Section 2.06(a), upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.06(e), the Note Registrar will register the transfer of Definitive Notes to a Person who takes delivery thereof in the form of Definitive Notes as provided herein. Prior to such registration of transfer, the requesting Holder must present or surrender to the Note Registrar the Definitive Notes to be transferred duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Note Registrar duly executed by such Holder or by its attorney, duly authorized in writing. Upon receipt of such a request to register such a transfer and such other documents, the Note Registrar shall register the Definitive Notes being transferred pursuant to the instructions from the Holder thereof.

-11-

(f)        Legends. Each Global Note will bear a legend in substantially the following form:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.09 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

 

(g)        Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed or canceled in whole and not in part, each such Global Note will be returned to or retained and canceled by the Trustee in accordance with Section 2.09 hereof. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global Note will be reduced accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note will be increased accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase.

 

(h)        General Provisions Relating to Transfers and Exchanges.

 

(1)        To permit registrations of transfers and exchanges, the Issuer will execute and the Trustee will authenticate Global Notes and Definitive Notes upon receipt of an Authentication Order in accordance with Section 2.04 hereof or at the Note Registrar’s request.

 

(2)        No service charge will be made to a Holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but the Issuer may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.08, 3.03 and 9.04 hereof).

 

(3)        The Note Registrar will not be required to register the transfer of or exchange of any Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part.

-12-

(4)        All Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes will be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange.

 

(5)        Neither the Note Registrar nor the Issuer will be required:

 

(A)        to issue, register the transfer of or to exchange any Note during a period beginning at the opening of business 15 days before any selection of Notes for redemption under Article 3 hereof and ending at the close of business on the earliest date on which the relevant notice of redemption is deemed to have been given to all Holders of Notes to be so redeemed; or

 

(B)        to register the transfer or exchange of any Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part.

 

(6)        Prior to due presentment for the registration of a transfer of any Note, the Trustee, any Agent and the Issuer may deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the Issuer shall be affected by notice to the contrary.

 

(7)        The Trustee will authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.04 hereof.

 

(8)        All certifications, certificates and Opinions of Counsel required to be submitted to the Note Registrar pursuant to this Section 2.06 to effect a registration of transfer or exchange may be submitted by facsimile.

 

(9)        The Trustee shall have no responsibility or obligation to any Participants, Indirect Participants or any other Person with respect to the accuracy of the books or records, or the acts or omissions, of the Depositary or its nominee or of any participant or member thereof, with respect to any ownership interest in the Notes or with respect to the delivery to any Participants, Indirect Participants or other Person (other than the Depositary) of any notice (including any notice of redemption) or the payment of any amount, under or with respect to such Notes. All notices and communications to be given to the Noteholders and all payments to be made to Noteholders under the Notes shall be given or made only to or upon the order of the registered Noteholders (which shall be the Depositary or its nominee in the case of a Global Note). The rights of beneficial owners in any Global Note shall be exercised only through the Depositary subject to the customary procedures of the Depositary. The Trustee may rely and shall be fully protected in relying upon information furnished by the Depositary with respect to its Participants.

 

The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers between or among Participants in any Global Note) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

 

Section 2.07.        Mutilated, Destroyed, Lost or Stolen Notes. In case any Note shall become mutilated or be destroyed, lost or stolen, the Issuer in its discretion may execute, and upon its written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate and make available for delivery, a new Note, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Note, or in lieu of and in substitution for the Note so destroyed, lost or stolen. In every case, the applicant for a substituted Note shall furnish to the Issuer, to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense caused by or connected with such substitution, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Issuer, to the Trustee and, if applicable, to such authenticating agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership thereof.

-13-

Following receipt by the Trustee or such authenticating agent, as the case may be, of satisfactory security or indemnity and evidence, as described in the preceding paragraph, the Trustee or such authenticating agent may authenticate any such substituted Note and make available for delivery such Note. Upon the issuance of any substituted Note, the Issuer may require the payment by the Holder of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in relation thereto and any other expenses connected therewith. In case any Note which has matured or is about to mature or has been called for redemption, as the case may be, shall become mutilated or be destroyed, lost or stolen, the Issuer may, instead of issuing a substitute Note, pay or authorize the payment of such Note, as the case may be, if the applicant for such payment shall furnish to the Issuer, to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense caused by or in connection with such payment, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Issuer, the Trustee and, if applicable, any Paying Agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership thereof.

 

Every substitute Note issued pursuant to the provisions of this Section 2.07 by virtue of the fact that any Note is destroyed, lost or stolen shall constitute an additional contractual obligation of the Issuer, whether or not the destroyed, lost or stolen Note shall be found at any time, and shall be entitled to all the benefits of (but shall be subject to all the limitations set forth in) this Indenture equally and proportionately with any and all other Notes duly issued hereunder. To the extent permitted by law, all Notes shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment or exchange or redemption of mutilated, destroyed, lost or stolen Notes and shall preclude any and all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment or redemption of negotiable instruments or other securities without their surrender.

 

Section 2.08.        Temporary Notes. Pending the preparation of Notes in definitive form for issuance and delivery when provided for hereunder, the Issuer may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon the written request of the Issuer, authenticate and deliver temporary Notes (printed or lithographed). Temporary Notes shall be issuable in any authorized denomination, and substantially in the form of the Notes in definitive form, but with such omissions, insertions and variations as may be appropriate for temporary Notes, all as may be determined by the Issuer. Every such temporary Note shall be executed by the Issuer and authenticated by the Trustee or such authenticating agent upon the same conditions and in substantially the same manner, and with the same effect, as the Notes in definitive form. Without unreasonable delay, the Issuer will execute and deliver to the Trustee or such authenticating agent Notes in definitive form for issuance and delivery when provided for hereunder and thereupon any or all temporary Notes may be surrendered in exchange therefor, at each office or agency maintained by the Issuer pursuant to Section 4.02 and the Trustee or such authenticating agent shall authenticate and make available for delivery in exchange for such temporary Notes an equal aggregate principal amount of Notes in definitive form. Such exchange shall be made by the Issuer at its own expense and without any charge therefor. Until so exchanged, the temporary Notes shall in all respects be entitled to the same benefits and subject to the same limitations under this Indenture as Notes in definitive form authenticated and delivered hereunder. Temporary Notes may be in global form.

 

Section 2.09.        Cancellation of Notes. All Notes surrendered for the purpose of payment, redemption, exchange or registration of transfer shall, if surrendered to the Issuer or any Paying Agent, which shall initially be the Trustee, or any Note Registrar, be surrendered to the Trustee and promptly canceled by it or, if surrendered to the Trustee, shall be promptly canceled by it and no Notes shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture. The Trustee shall dispose of such canceled Notes in accordance with its customary procedures, with copies of such cancelled Notes and related documentation provided to the Issuer. If the Issuer shall acquire any of the Notes, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Notes unless and until the same are delivered to the Trustee for cancellation.

 

Section 2.10.        CUSIP Numbers. The Issuer in issuing the Notes may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Noteholders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. The Issuer will promptly notify the Trustee of any change in the “CUSIP” numbers.

-14-

Section 2.11.        Issuance of Additional Notes. The Issuer will be entitled, upon delivery of an Officers’ Certificate, Opinion of Counsel and Authentication Order, subject to its compliance with Section 4.09, to issue Additional Notes under the Indenture that will have identical terms to and the same CUSIP number as the Initial Notes issued on the date of this Indenture other than with respect to the date of issuance, public offering price, interest accrued prior to the issue date of the Additional Notes and, if applicable, the initial interest payment date; provided that such Additional Notes must be part of the same issue as and fungible with the Initial Notes for United States federal income tax purposes and provided further that no such Additional Notes may be issued if the Issuer has effected satisfaction and discharge with respect to the Notes pursuant to Article 11 or effected legal defeasance or covenant defeasance with respect to the Notes pursuant to Article 12. The Initial Notes and any such Additional Notes will constitute a single series of debt securities, and in circumstances in which this Indenture provides for the Holders of Notes to vote or take any action, the Holders of Initial Notes and the Holders of any such Additional Notes will vote or take the action as a single class.

 

With respect to any Additional Notes, the Issuer will set forth in a resolution of its Board of Directors and an Officers’ Certificate, a copy of each of which will be delivered to the Trustee, the following information:

 

(1)        the aggregate principal amount of such Additional Notes to be authenticated and delivered pursuant to this Indenture; and

 

(2)        the issue price, the issue date and the CUSIP number of such Additional Notes (which CUSIP number shall be the same as the CUSIP number for the Initial Notes).

 

ARTICLE 3

 Redemption of Notes

 

Section 3.01.        Optional Redemption of Notes.

 

(a)        The Issuer shall have the right to redeem the Notes at its option and in its sole discretion, at any time in whole or from time to time in part, for cash, at a redemption price with respect to the Notes to be redeemed on any Redemption Date (the “Redemption Price”) equal to the greater of (i) 100% of the principal amount of such Notes to be redeemed and (ii) as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the principal amount of the Notes to be redeemed that would be due if such Notes to be redeemed matured on the Par Call Date but for redemption thereof on such Redemption Date (not including any portion of such payments of interest accrued as of such Redemption Date) discounted to such Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus twenty-five (25) basis points (0.250% or twenty-five one-hundredths of one percent), plus, in each case, accrued and unpaid interest on the principal amount of such Notes to be redeemed to, but excluding, such Redemption Date; provided, however, that if such Redemption Date falls after the Record Date immediately preceding an interest payment date and on or prior to such interest payment date, the Issuer will pay the full amount of such accrued and unpaid interest and premium, if any, on such interest payment date to the Holder of record at the close of business on such Record Date (instead of the Holder surrendering its Notes for redemption). Notwithstanding the foregoing, if the Notes are redeemed on or after the Par Call Date, the Redemption Price will be equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest on the principal amount of such Notes to be redeemed to the Redemption Date for such redemption.

 

(b)        The Issuer shall not redeem the Notes pursuant to Section 3.01(a) on any date if the principal amount of the Notes has been accelerated, and such an acceleration has not been rescinded or cured on or prior to such date (except in the case of an acceleration resulting from a default by the Issuer in the payment of the Redemption Price with respect to the Notes to be redeemed).

-15-

Section 3.02.        Notice of Optional Redemption; Selection of Notes. In case the Issuer shall desire to exercise the right to redeem all or, as the case may be, any part of the Notes pursuant to Section 3.01, it shall fix a date for redemption and it or, at its written request received by the Trustee not fewer than five (5) Business Days prior (or such shorter period of time as may be acceptable to the Trustee) to the date the notice of redemption is to be mailed (or sent by electronic transmission), the Trustee in the name of and at the expense of the Issuer, shall mail (or send by electronic transmission) or cause to be mailed (or sent by electronic transmission) a notice of such redemption not fewer than fifteen (15) calendar days nor more than sixty (60) calendar days prior to the Redemption Date to each Holder of Notes so to be redeemed in whole or in part at its last address as the same appears on the Note Register; provided that if the Issuer makes such request of the Trustee, it shall, together with such request, also give written notice of the Redemption Date to the Trustee; provided further that the text of the notice shall be prepared by the Issuer. Such mailing shall be by first class mail (unless sent by electronic transmission). The notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not the Holder receives such notice. In any case, failure to give such notice by mail or any defect in the notice to the Holder of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Note.

 

Each such notice of redemption shall specify: (i) the aggregate principal amount of Notes to be redeemed, (ii) the CUSIP number or numbers, if any, of the Notes being redeemed, (iii) the Redemption Date (which shall be a Business Day), (iv) the Redemption Price at which Notes are to be redeemed, (v) the place or places of payment and that payment will be made upon presentation and surrender of such Notes and (vi) that interest accrued and unpaid to, but excluding, the Redemption Date will be paid as specified in said notice, and that on and after said date interest thereon or on the portion thereof to be redeemed will cease to accrue. If fewer than all the Notes are to be redeemed, the notice of redemption shall identify the Notes to be redeemed (including CUSIP numbers, if any). In case any Note is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that, on and after the Redemption Date, upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion thereof will be issued.

 

Whenever any Notes are to be redeemed, the Issuer will give the Trustee written notice of the Redemption Date, together with an Officers’ Certificate as to the aggregate principal amount of Notes to be redeemed not fewer than forty-five (45) calendar days (or such shorter period of time as may be acceptable to the Trustee) prior to the Redemption Date.

 

On or prior to the Redemption Date specified in the notice of redemption given as provided in this Section 3.02, the Issuer will deposit with the Paying Agent (or, if the Issuer or the Guarantor is acting as Paying Agent, set aside, segregate and hold in trust as provided in Section 4.04) an amount of monies in immediately available funds sufficient to redeem on the Redemption Date all the Notes (or portions thereof) so called for redemption at the appropriate Redemption Price; provided that if such payment is made on the Redemption Date, it must be received by the Paying Agent, by 11:00 a.m., New York City time, on such date. The Issuer shall be entitled to retain any interest, yield or gain on amounts deposited with the Paying Agent pursuant to this Section 3.02 in excess of amounts required hereunder to pay the Redemption Price.

 

If less than all of the outstanding Notes are to be redeemed, the Trustee shall select the Notes or portions thereof of the Global Note or the Definitive Notes to be redeemed on a pro rata basis or such other method the Trustee deems fair and appropriate or is required by the Depositary, provided that the unredeemed portion of any Note to be redeemed in part shall remain in a denomination authorized hereunder. The Notes (or portions thereof) so selected for redemption shall be deemed duly selected for redemption for all purposes hereof.

 

Section 3.03.        Payment of Notes Called for Redemption by the Issuer. If notice of redemption has been given as provided in Section 3.02, the Notes or portion of Notes with respect to which such notice has been given shall become due and payable on the Redemption Date and at the place or places stated in such notice at the Redemption Price, and unless the Issuer shall default in the payment of such Notes at the Redemption Price, so long as the Paying Agent holds funds sufficient to pay the Redemption Price of the Notes to be redeemed on the Redemption Date, then (a) such Notes will cease to be outstanding on and after the Redemption Date, (b) interest on the Notes or portion of Notes so called for redemption shall cease to accrue on and after the Redemption Date, (c) except as provided in Section 7.05 and Section 11.02, such Notes will cease to be entitled to any benefit or security under this Indenture, and (d) the Holders of the Notes shall have no right in respect of such Notes except the right to receive the Redemption Price thereof. On presentation and surrender of such Notes at a place of payment in said notice specified, the said Notes or the specified portions thereof shall be paid and redeemed by the Issuer at the Redemption Price.

-16-

Upon presentation of any Note redeemed in part only, the Issuer shall execute and the Trustee shall authenticate and make available for delivery to the Holder thereof, at the expense of the Issuer, a new Note or Notes, of authorized denominations, in principal amount equal to the unredeemed portion of the Notes so presented.

 

Section 3.04.        Sinking Fund. There shall be no sinking fund provided for the Notes.

 

ARTICLE 4

 Particular Covenants of the Issuer

 

Section 4.01.        Payment of Principal, Premium and Interest. The Issuer covenants and agrees that it will duly and punctually pay or cause to be paid when due the principal of (including the Redemption Price upon redemption pursuant to Article 3), and premium, if any, and interest on each of the Notes at the places, at the respective times and in the manner provided herein and in the Notes; provided that, the Issuer or Paying Agent may withhold from payments of interest and upon redemption pursuant to Article 3, maturity or otherwise any amounts the Issuer or Paying Agent is required to withhold by law, including amounts required to be withheld in accordance with applicable tax laws. If any withholding tax is required to be imposed on any payment by the Issuer to a Holder under the Notes, such tax shall reduce the amount otherwise payable to such Holder, and any amounts so withheld shall be treated as having been paid to such Holder for all purposes of this Indenture. Failure of a Holder or a beneficial owner of a Note to provide the Issuer or Paying Agent or Depositary with appropriate tax certificates (including on an Internal Revenue Service Form W-9 or an applicable Internal Revenue Service Form W-8) may result in amounts being withheld from a payment to such Holder or for the account of such a beneficial owner. Notwithstanding anything to the contrary herein, in no event shall the consent of the Holders or any beneficial owner be required for any required withholding.

 

Section 4.02.        Maintenance of Office or Agency. The Issuer will maintain an office or agency, where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or redemption and where notices and demands to or upon the Issuer and the Guarantor in respect of the Notes, the Guarantees and this Indenture may be served. As of the date of this Indenture, such office shall be the Corporate Trust Office and, at any other time, at such other address as the Trustee may designate from time to time by notice to the Issuer. The Issuer will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency not designated or appointed by the Trustee. If at any time the Issuer shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office.

 

The Issuer may also from time to time designate co-registrars and one or more offices or agencies where the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided, however that no such designation or rescission shall in any manner relieve the Issuer of its obligation to maintain an office or agency for such purposes. The Issuer will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency.

 

The Issuer hereby initially designates the Trustee as Paying Agent, Note Registrar and Custodian, and the Corporate Trust Office shall be considered as one such office or agency of the Issuer for each of the aforesaid purposes.

 

So long as the Trustee is the Note Registrar, the Trustee agrees to mail (or send by electronic transmission), or cause to be mailed, the notices set forth in Section 7.10 and the third paragraph of Section 7.11. If co-registrars have been appointed in accordance with this Section, the Trustee shall mail such notices only to the Issuer and the Holders of Notes it can identify from its records.

 

Section 4.03.        Appointments to Fill Vacancies in Trustee’s Office. The Issuer, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, upon the terms and conditions and otherwise as provided in Section 7.10, a Trustee, so that there shall at all times be a Trustee hereunder.

-17-

Section 4.04.        Provisions as to Paying Agent.

 

(a)        If the Issuer shall appoint a Paying Agent other than the Trustee, or if the Trustee shall appoint such a Paying Agent, the Issuer will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section 4.04:

 

(1)        that it will hold all sums held by it as such agent for the payment of the principal of and premium, if any, or interest on the Notes (whether such sums have been paid to it by the Issuer, the Guarantor or by any other obligor on the Notes) in trust for the benefit of the Holders of the Notes;

 

(2)        that it will give the Trustee notice of any failure by the Issuer (or by any other obligor on the Notes) to make any payment of the principal of and premium, if any, or interest on the Notes when the same shall be due and payable; and

 

(3)        that at any time during the continuance of an Event of Default, upon request of the Trustee, it will forthwith pay to the Trustee all sums so held in trust.

 

The Issuer shall, on or before each due date of the principal of, premium, if any, or interest on the Notes, deposit with the Paying Agent a sum (in funds which are immediately available on the due date for such payment) sufficient to pay such principal, premium, if any, or interest and (unless such Paying Agent is the Trustee) the Issuer will promptly notify the Trustee of any failure to take such action; provided that if such deposit is made on the due date, such deposit shall be received by the Paying Agent by 11:00 a.m. New York City time, on such date.

 

(b)        If the Issuer or the Guarantor shall act as Paying Agent, it will, on or before each due date of the principal of, premium, if any, or interest on the Notes, set aside, segregate and hold in trust for the benefit of the Holders of the Notes a sum sufficient to pay such principal, premium, if any, and interest so becoming due and will promptly notify the Trustee of any failure to take such action and of any failure by the Issuer (or any other obligor under the Notes) to make any payment of the principal of, premium, if any, or interest on the Notes when the same shall become due and payable.

 

(c)        Anything in this Section 4.04 to the contrary notwithstanding, the Issuer may, at any time, for the purpose of obtaining a satisfaction and discharge of this Indenture, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by the Issuer or the Guarantor or any Paying Agent hereunder as required by this Section 4.04, such sums to be held by the Trustee upon the trusts herein contained and upon such payment by the Issuer, the Guarantor or any Paying Agent to the Trustee, the Issuer, the Guarantor or such Paying Agent shall be released from all further liability with respect to such sums.

 

(d)        Anything in this Section 4.04 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 4.04 is subject to Section 11.02 and Section 11.03.

 

The Trustee shall not be responsible for the actions of any other Paying Agents (including the Issuer or Guarantor if acting as Paying Agent) and shall have no control of any funds held by such other Paying Agents.

 

Section 4.05.        Existence. Subject to Article 10, each of the Issuer and the Guarantor will do or cause to be done all things necessary to preserve and keep in full force and effect its existence and rights (charter and statutory); provided that neither the Issuer nor the Guarantor shall be required to preserve any such right if the Issuer or the Guarantor, as applicable, shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Issuer or the Guarantor, as applicable, and that the loss thereof is not disadvantageous in any material respect to the Noteholders.

 

Section 4.06.        Reports. Whether or not subject to Section 13 or 15(d) of the Exchange Act and for so long as any Notes are outstanding, within fifteen (15) days of the date on which such filing is made with the Commission (or would have been required to have been made with the Commission), each of the Issuer and the Guarantor will furnish to the Trustee:

 

(1)        all quarterly and annual reports that are or would be required to be filed by them with the Commission on Forms 10-Q and 10-K; and

 

(2)        all current reports that are or would be required to be filed by them with the Commission on Form 8-K.

-18-

Notwithstanding the foregoing, during any period in which the Issuer is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Issuer may satisfy its obligation to furnish the reports described above by furnishing reports for the Guarantor.

 

Each of the Issuer and the Guarantor shall comply with the provisions of Section 314(a)(1) of under the Trust Indenture Act.

 

Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Issuer’s or Guarantor’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).

 

Section 4.07.        Stay, Extension and Usury Laws. The Issuer and the Guarantor each covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Issuer from paying all or any portion of the principal, premium, if any, or interest on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture, the Notes or the Guarantees endorsed on the Notes and the Issuer and the Guarantor each (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

 

Section 4.08.        Compliance Certificate. Within one hundred twenty (120) calendar days after the end of each fiscal year of the Issuer, the Issuer and the Guarantor shall deliver to the Trustee a certificate signed by any of the principal executive officer, principal financial officer or principal accounting officer of the Issuer (or its General Partner) and the Guarantor, as the case may be, stating whether or not the signer has knowledge of any Default under this Indenture that has occurred and is continuing, and, if so, specifying each Default under this Indenture that has occurred and is continuing and the nature and the status thereof. The certificate shall state if the determination as to whether any Default has occurred and is continuing for purposes of such certificate has been made with regard to any period of grace or requirement of notice under this Indenture.

 

The Issuer will deliver to the Trustee, promptly upon becoming aware of (i) any default in the performance or observance of any covenant, agreement or condition contained in this Indenture, or (ii) any Event of Default, an Officers’ Certificate specifying with particularity such default or Event of Default and further stating what action the Issuer has taken, is taking or proposes to take with respect thereto.

 

Any notice required to be given under this Section 4.08 shall be delivered to a Responsible Officer of the Trustee at its Corporate Trust Office.

 

Section 4.09.        Limitations on Incurrence of Debt.

 

(a)        Limitation on Total Outstanding Debt. The Issuer will not, and will not cause or permit any of its Subsidiaries to, incur any Debt (including, without limitation, Acquired Debt) if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds therefrom on a pro forma basis, the aggregate principal amount of all outstanding Debt of the Issuer and its Subsidiaries (determined on a consolidated basis in accordance with U.S. generally accepted accounting principles) is greater than sixty five percent (65%) of the sum of (without duplication) (i) Total Assets as of the last day of the then most recently ended fiscal quarter and (ii) the aggregate purchase price of any real estate assets or mortgages receivable acquired, and the aggregate amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Issuer or any of its Subsidiaries since the end of such fiscal quarter, including the proceeds obtained from the incurrence of such additional Debt, determined on a consolidated basis in accordance with U.S. generally accepted accounting principles.

-19-

(b)        Limitation on Secured Debt. The Issuer will not, and will not cause or permit any of its Subsidiaries to, incur any Debt (including, without limitation, Acquired Debt) secured by any Encumbrance on any property or assets of the Issuer or any of its Subsidiaries, whether owned on the date of this Indenture or thereafter acquired, if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds therefrom on a pro forma basis, the aggregate principal amount (determined on a consolidated basis in accordance with U.S. generally accepted accounting principles) of all outstanding Debt of the Issuer and its Subsidiaries which is secured by any Encumbrance on any property or assets of the Issuer or any of its Subsidiaries is greater than forty percent (40%) of the sum of (without duplication) (i) Total Assets as of the last day of the then most recently ended fiscal quarter and (ii) the aggregate purchase price of any real estate assets or mortgages receivable acquired, and the aggregate amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Issuer or any of its Subsidiaries since the end of such fiscal quarter, including the proceeds obtained from the incurrence of such additional Debt, determined on a consolidated basis in accordance with U.S. generally accepted accounting principles.

 

(c)        Ratio of Consolidated Income Available for Debt Service to the Annual Debt Service Charge. The Issuer will not, and will not cause or permit any of its Subsidiaries to, incur any Debt (including, without limitation, Acquired Debt) if the ratio of Consolidated Income Available for Debt Service to the Annual Debt Service Charge for the period consisting of the four consecutive fiscal quarters most recently ended prior to the date on which such additional Debt is to be incurred shall have been less than 1.5:1.0 on a pro forma basis after giving effect to the incurrence of such Debt and the application of the proceeds therefrom, and calculated on the assumption that (i) such Debt and any other Debt (including, without limitation, Acquired Debt) incurred by the Issuer or any of its Subsidiaries since the first day of such four quarter period had been incurred, and the application of the proceeds therefrom (including to repay or retire other Debt) had occurred, on the first day of such period, (ii) the repayment or retirement of any other Debt of the Issuer or any of its Subsidiaries since the first day of such four quarter period had occurred on the first day of such period (except that, in making such computation, the amount of Debt under any revolving credit facility, line of credit or similar facility shall be computed based upon the average daily balance of such Debt during such period), and (iii) in the case of any acquisition or disposition by the Issuer or any of its Subsidiaries of any asset or group of assets, in any such case with a fair market value (determined in good faith by the Guarantor’s Board of Directors) in excess of $1,000,000, since the first day of such four quarter period, whether by merger, stock purchase or sale or asset purchase or sale or otherwise, such acquisition or disposition had occurred as of the first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such pro forma calculation. If the Debt giving rise to the need to make the foregoing calculation or any other Debt incurred after the first day of the relevant four quarter period bears interest at a floating rate then, for purposes of calculating the Annual Debt Service Charge, the interest rate on such Debt shall be computed on a pro forma basis as if the average rate which would have been in effect during the entire such four quarter period had been the applicable rate for the entire such period.

 

(d)        Maintenance of Unencumbered Total Asset Value. The Issuer, together with its Subsidiaries, will have at all times Total Unencumbered Assets of not less than one hundred and fifty percent (150%) of the aggregate principal amount of all of their outstanding Unsecured Debt, determined on a consolidated basis in accordance with U.S. generally accepted accounting principles.

 

Section 4.10.        Insurance. The Issuer will, and will cause of each of its Subsidiaries to, maintain insurance with financially sound and reputable insurance companies against such risks and in such amounts as is customarily maintained by Persons engaged in similar businesses or as may be required by applicable law.

 

ARTICLE 5

 Noteholders’ Lists and Reports by the Issuer and the Trustee

 

Section 5.01.        Noteholders’ Lists. The Issuer covenants and agrees that it will furnish or cause to be furnished to the Trustee, semiannually, at least five Business Days before each May 1st and November 1st of each year beginning with November 1, 2017, and at such other times as the Trustee may reasonably request in writing, within thirty (30) calendar days after receipt by the Issuer of any such request (or such lesser time as the Trustee may reasonably request in order to enable it to timely provide any notice to be provided by it hereunder), a list in such form as the Trustee may reasonably require of the names and addresses of the Holders of Notes as of a date not more than fifteen (15) calendar days (or such other date as the Trustee may reasonably request in order to so provide any such notices) prior to the time such information is furnished, except that no such list need be furnished by the Issuer to the Trustee so long as the Trustee is acting as the sole Note Registrar.

-20-

Section 5.02.        Preservation and Disclosure of Lists.

 

(a)        The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the Holders of Notes contained in the most recent list furnished to it as provided in Section 5.01 or maintained by the Trustee in its capacity as Note Registrar or co-registrar in respect of the Notes, if so acting. The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt of a new list so furnished.

 

(b)        The rights of Noteholders to communicate with other Holders of Notes with respect to their rights under this Indenture or under the Notes, and the corresponding rights and duties of the Trustee, shall be as provided by the Trust Indenture Act.

 

(c)        Every Noteholder agrees with the Issuer and the Trustee that neither the Issuer nor the Trustee nor any agent of either of them shall be held accountable by reason of any disclosure of information as to names and addresses of Holders of Notes made pursuant to the Trust Indenture Act.

 

Section 5.03.        Reports by Trustee.

 

(a)        On or before May 15th of each year beginning with May 15, 2017, the Trustee shall transmit to Holders of Notes such reports dated as of May 15th of the year in which such reports are made concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto. In the event that no events have occurred under the applicable sections of the Trust Indenture Act, the Trustee shall be under no duty or obligation to provide such reports.

 

(b)        A copy of such report shall, at the time of such transmission to Holders of Notes, be filed by the Trustee with each stock exchange and automated quotation system, if any, upon which the Notes are listed and with the Issuer. The Issuer will promptly notify the Trustee in writing if the Notes are listed on any stock exchange or automated quotation system or delisted therefrom.

 

ARTICLE 6

 Remedies of the Trustee and Noteholders on an Event of Default

 

Section 6.01.        Events of Default. In case one or more of the following (each an “Event of Default”)(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body) shall have occurred and be continuing:

 

(a)        default for thirty (30) days in the payment of any installment of interest under the Notes; or

 

(b)        default in the payment of the principal amount or Redemption Price due with respect to the Notes, when the same becomes due and payable; or

 

(c)        the Issuer or the Guarantor fails to comply with any of its other agreements contained in the Notes or this Indenture upon receipt by the Issuer or the Guarantor of notice of such default by the Trustee or by Holders of not less than 25% in aggregate principal amount of the Notes then outstanding and the Issuer or the Guarantor fails to cure (or obtain a waiver of) such default within sixty (60) days after receiving such notice; or

 

(d)        failure to pay any indebtedness for monies borrowed by the Issuer, the Guarantor or any Subsidiary of the Issuer in which the Issuer has invested at least $50,000,000 in capital (a “Significant Subsidiary”) in an outstanding principal amount in excess of $50,000,000 at final maturity or upon acceleration after the expiration of any applicable grace period, which indebtedness is not discharged, or such default in payment or acceleration is not cured or rescinded, within thirty (30) days after written notice to the Issuer from the Trustee (or to the Issuer and the Trustee from Holders of at least 25% in principal amount of the outstanding Notes); or

-21-

(e)        the Issuer, the Guarantor or any Significant Subsidiary pursuant to or under or within meaning of any Bankruptcy Law:

 

(i)        commences a voluntary case or proceeding seeking liquidation, reorganization or other relief with respect to the Issuer, the Guarantor or a Significant Subsidiary or its debts or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Issuer, the Guarantor or a Significant Subsidiary or any substantial part of the property of the Issuer, the Guarantor or a Significant Subsidiary; or

 

(ii)        consents to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against the Issuer, the Guarantor or a Significant Subsidiary; or

 

(iii)        consents to the appointment of a custodian of it or for all or substantially all of its property; or

 

(iv)        makes a general assignment for the benefit of creditors; or

 

(f)        an involuntary case or other proceeding shall be commenced against the Issuer, the Guarantor or any of the Issuer’s Significant Subsidiaries seeking liquidation, reorganization or other relief with respect to the Issuer, the Guarantor or a Significant Subsidiary or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Issuer, the Guarantor or a Significant Subsidiary or any substantial part of the property of the Issuer, the Guarantor or a Significant Subsidiary, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of sixty (60) calendar days; or

 

(g)        a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(i)        is for relief against the Issuer, the Guarantor or any of the Issuer’s Significant Subsidiaries in an involuntary case or proceeding; or

 

(ii)        appoints a trustee, receiver, liquidator, custodian or other similar official of the Issuer, the Guarantor or a Significant Subsidiary or any substantial part of the property of the Issuer, the Guarantor or a Significant Subsidiary; or

 

(iii)        orders the liquidation of the Issuer, the Guarantor or a Significant Subsidiary; and, in each case in this clause (g), the order or decree remains unstayed and in effect for sixty (60) calendar days;

 

then, and in each and every such case (other than an Event of Default specified in Section 6.01(e), 6.01(f) and 6.01(g) with respect to the Issuer or the Guarantor), unless the principal of all of the Notes shall have already become due and payable, either the Trustee or the Holders of at least twenty-five percent (25%) in aggregate principal amount of the Notes then outstanding, by notice in writing to the Issuer and the Guarantor (and to the Trustee if given by Noteholders), may declare the principal amount of and premium, if any, and interest accrued and unpaid on all the Notes to be immediately due and payable, and upon any such declaration the same shall be immediately due and payable.

 

If an Event of Default specified in Section 6.01(e), 6.01(f) or 6.01(g) occurs with respect to the Issuer or the Guarantor, the principal amount of and premium, if any, and interest accrued and unpaid on all the Notes shall be immediately and automatically due and payable without necessity of further action.

-22-

If, at any time after the principal amount of and premium, if any, and interest on the Notes shall have been so declared due and payable, and before any judgment or decree for the payment of the monies due shall have been obtained or entered as hereinafter provided, Holders of a majority in aggregate principal amount of the Notes then outstanding on behalf of the Holders of all of the Notes then outstanding, by written notice to the Issuer and to the Trustee, may waive all defaults or Events of Default and rescind and annul such declaration and its consequences, subject in all respects to Section 6.07, if: (a) all Events of Default, other than the nonpayment of the principal amount and any accrued and unpaid interest that have become due solely because of such acceleration, have been cured or waived and (b) the Issuer or the Guarantor has deposited with the Trustee all required payments of the principal of and interest on the Notes and paid the Trustee its reasonable compensation and reimbursed the Trustee for its expenses, disbursements and advances pursuant to Section 7.06. No such rescission and annulment shall extend to or shall affect any subsequent Default or Event of Default, or shall impair any right consequent thereon. The Issuer shall notify in writing a Responsible Officer of the Trustee, promptly upon becoming aware thereof, of any Event of Default, as provided in Section 4.08.

 

In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of such waiver or rescission and annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case the Issuer, the Guarantor, the Holders of Notes, and the Trustee shall be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the Issuer, the Guarantor, the Holders of Notes, and the Trustee shall continue as though no such proceeding had been taken.

 

Section 6.02.        Payments of Notes on Default; Suit Therefor. The Issuer covenants that in the case of an Event of Default pursuant to Section 6.01(a) or 6.01(b), upon demand of the Trustee, the Issuer will pay to the Trustee, for the benefit of the Holders of the Notes, (i) the whole amount that then shall be due and payable on all such Notes for principal and premium, if any, or interest, as the case may be, with interest upon the overdue principal and premium, if any, and (to the extent that payment of such interest is enforceable under applicable law) upon the overdue installments of accrued and unpaid interest at the rate borne by the Notes from the required payment date and, (ii) in addition thereto, any amounts due the Trustee under Section 7.06. Until such demand by the Trustee, the Issuer may pay the principal of and premium, if any, and interest on the Notes to the registered Holders, whether or not the Notes are overdue.

 

In case the Issuer shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Issuer, the Guarantor or any other obligor on the Notes and collect in the manner provided by law out of the property of the Issuer or any other obligor on the Notes wherever situated the monies adjudged or decreed to be payable.

 

In case there shall be pending proceedings for the bankruptcy or for the reorganization of the Issuer, Guarantor or any other obligor on the Notes under any Bankruptcy Law, or any other applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Issuer, Guarantor or such other obligor, the property of the Issuer, Guarantor or such other obligor, or in the case of any other judicial proceedings relative to the Issuer, Guarantor or such other obligor upon the Notes, or to the creditors or property of the Issuer, Guarantor or such other obligor, the Trustee, irrespective of whether the principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this Section 6.02, shall be entitled and empowered, by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal, premium, if any, accrued and unpaid interest in respect of the Notes, and, in case of any judicial proceedings, to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and of the Noteholders allowed in such judicial proceedings relative to the Issuer, Guarantor or any other obligor on the Notes, its or their creditors, or its or their property, and to collect and receive any monies or other property payable or deliverable on any such claims, and to distribute the same after the deduction of any amounts due the Trustee under Section 7.06, and to take any other action with respect to such claims, including participating as a member of any official committee of creditors, as it reasonably deems necessary or advisable, unless prohibited by law or applicable regulations, and any receiver, assignee or trustee in bankruptcy or reorganization, liquidator, custodian or similar official is hereby authorized by each of the Noteholders to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to the Noteholders, to pay to the Trustee any amount due it for reasonable compensation, expenses, advances and disbursements, including counsel fees and expenses incurred by it up to the date of such distribution. To the extent that such payment of reasonable compensation, expenses, advances and disbursements out of the estate in any such proceedings shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions, dividends, monies, securities and other property which the Holders of the Notes may be entitled to receive in such proceedings, whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder of a Note any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the Guarantees or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of Notes in any such proceeding; provided, however, that the Trustee may, on behalf of the Holders of Notes, vote for the election of a trustee in bankruptcy or similar official and may be a member of the creditors’ committee.

-23-

All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Trustee without the possession of any of the Notes, or the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Notes.

 

In any proceedings brought by the Trustee (and in any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party) the Trustee shall be held to represent all the Holders of the Notes, and it shall not be necessary to make any Holders of the Notes parties to any such proceedings.

 

Section 6.03.        Application of Monies Collected by Trustee. Any monies or property collected by the Trustee pursuant to this Article 6, shall be applied, in the following order, at the date or dates fixed by the Trustee for the distribution of such monies or property, upon presentation of the several Notes, and stamping thereon the payment, if only partially paid, and upon surrender thereof, if fully paid:

 

FIRST: To the payment of all amounts due the Trustee under Section 7.06;

 

SECOND: In case the principal of the outstanding Notes shall not have become due and be unpaid, to the payment of accrued and unpaid interest, if any, on the Notes in default in the order of the maturity of the installments of such interest, with interest (to the extent that such interest has been collected by the Trustee) as provided in Section 6.02 upon the overdue installments of interest, such payments to be made ratably to the Persons entitled thereto;

 

THIRD: In case the principal of the outstanding Notes shall have become due, by declaration or otherwise, and be unpaid to the payment of the whole amount then owing and unpaid upon the Notes for principal and premium, if any, and interest, with interest on the overdue principal and premium, if any, and (to the extent that such interest has been collected by the Trustee) upon overdue installments of accrued and unpaid interest, as provided in Section 6.02, and in case such monies shall be insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the payment of such principal and premium, if any, and interest without preference or priority of principal and premium, if any, over interest, or of interest over principal and premium, if any, or of any installment of interest over any other installment of interest, or of any Note over any other Note, ratably to the aggregate of such principal and premium, if any, and accrued and unpaid interest; and

 

FOURTH: To the payment of the remainder, if any, to the Issuer or any other Person lawfully entitled thereto.

 

Section 6.04.        Proceedings by Noteholders. No Holder of any Note shall have any right by virtue of or by reference to any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture, or for the appointment of a receiver, trustee, liquidator, custodian or other similar official, or for any other remedy hereunder, except in the case of a default in the payment of principal, premium, if any, or interest on the Notes, unless (a) such Holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof, as hereinbefore provided, (b) the Holders of at least twenty-five percent (25%) in aggregate principal amount of the Notes then outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such reasonable security or indemnity as it may require against the costs, liabilities or expenses to be incurred therein or thereby, (c) the Trustee for sixty (60) calendar days after its receipt of such notice, request and offer of indemnity, shall have neglected or refused to institute any such action, suit or proceeding and (d) no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 6.07; it being understood and intended, and being expressly covenanted by the taker and Holder of every Note with every other taker and Holder and the Trustee, that no one or more Holders of Notes shall have any right in any manner whatever by virtue of or by reference to any provision of this Indenture to affect, disturb or prejudice the rights of any other Holder of Notes, or to obtain or seek to obtain priority over or preference to any other such Holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders of Notes (except as otherwise provided herein). For the protection and enforcement of this Section 6.04, each and every Noteholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

-24-

Notwithstanding any other provision of this Indenture and any provision of any Note, the right of any Holder of any Note to receive payment of the principal of (including the Redemption Price upon redemption pursuant to Article 3) and premium, if any, and accrued interest on such Note, on or after the respective due dates expressed in such Note or in the event of redemption, or to institute suit for the enforcement of any such payment on or after such respective dates against the Issuer or the Guarantor shall not be impaired or affected without the consent of such Holder.

 

Section 6.05.        Proceedings by Trustee. In case of an Event of Default, the Trustee may, in its discretion, proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.

 

Section 6.06.        Remedies Cumulative and Continuing. All powers and remedies given by this Article 6 to the Trustee or to the Noteholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers and remedies available to the Trustee or the Holders of the Notes, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no delay or omission of the Trustee or of any Holder of any of the Notes to exercise any right or power accruing upon any Default or Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such Default or any acquiescence therein, and, subject to the provisions of Section 6.04, every power and remedy given by this Article 6 or by law to the Trustee or to the Noteholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Noteholders.

 

Section 6.07.        Direction of Proceedings and Waiver of Defaults by Majority of Noteholders. The Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee; provided that (a) such direction shall not be in conflict with any rule of law or with this Indenture, (b) the Trustee may take any other action which is not inconsistent with such direction, (c) the Trustee may decline to take any action that would benefit some Noteholders to the detriment of other Noteholders or otherwise be unduly prejudicial to the Noteholders not joining therein and (d) the Trustee may decline to take any action that would involve the Trustee in personal liability. Prior to taking any such action hereunder, the Trustee shall be entitled to indemnification reasonably satisfactory to it in its sole discretion against all losses and expenses caused by taking or not taking such action.

 

The Holders of a majority in aggregate principal amount of the Notes at the time outstanding may, on behalf of the Holders of all of the Notes, waive any past Default or Event of Default hereunder and its consequences except (i) a default in the payment of the principal of (including the Redemption Price upon redemption pursuant to Article 3), premium, if any, or interest on the Notes or (ii) a default in respect of a covenant or provisions hereof which under Article 9 cannot be modified or amended without the consent of the Holders of all Notes then outstanding or each Note affected thereby.

 

Upon any such waiver, the Issuer, the Guarantor, the Trustee and the Holders of the Notes shall be restored to their former positions and rights hereunder; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. Whenever any Default or Event of Default hereunder shall have been waived as permitted by this Section 6.07, said Default or Event of Default shall for all purposes of the Notes and this Indenture be deemed to have been cured and to be not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon.

-25-

Section 6.08.        Notice of Defaults. The Trustee shall, within ninety (90) calendar days after a Responsible Officer of the Trustee has knowledge of the occurrence of a Default, mail (or send by electronic transmission) to all Noteholders, as the names and addresses of such Holders appear upon the Note Register, notice of all Defaults known to a Responsible Officer, unless such Defaults shall have been cured or waived before the giving of such notice; provided that except in the case of default in the payment of the principal of (including the Redemption Price upon redemption pursuant to Article 3), or interest on any of the Notes, the Trustee shall be protected in withholding such notice if and so long as a trust committee of directors and/or Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interest of the Noteholders.

 

Section 6.09.        Undertaking to Pay Costs. All parties to this Indenture agree, and each Holder of any Note by its acceptance thereof shall be deemed to have agreed, that any court may, in its discretion, require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; provided that the provisions of this Section 6.09 (to the extent permitted by law) shall not apply to any suit instituted by the Trustee, to any suit instituted by any Noteholder, or group of Noteholders, holding in the aggregate more than ten percent in principal amount of the Notes at the time outstanding determined in accordance with Section 8.04, or to any suit instituted by any Noteholder for the enforcement of the payment of the principal of (including the Redemption Price upon redemption pursuant to Article 3), or interest on any Note on or after the due date expressed in such Note.

 

ARTICLE 7

 The Trustee

 

Section 7.01.        Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence of an Event of Default and after the curing or waiver of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default has occurred (which has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of its own affairs.

 

No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

 

(a)        prior to the occurrence of an Event of Default and after the curing or waiving of all Events of Default which may have occurred:

 

(i)        the duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture and the Trust Indenture Act, and the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this Indenture and the Trust Indenture Act against the Trustee; and

 

(ii)        in the absence of bad faith and willful misconduct on the part of the Trustee, the Trustee may conclusively rely as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but, in the case of any such certificates or opinions which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture;

-26-

(b)        the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Officers of the Trustee, unless the Trustee was negligent in ascertaining the pertinent facts;

 

(c)        the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the written direction of the Holders of not less than a majority in principal amount of the Notes at the time outstanding determined as provided in Section 8.04 relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture;

 

(d)        whether or not therein provided, every provision of this Indenture relating to the conduct or affecting the liability of, or affording protection to, the Trustee shall be subject to the provisions of this Section;

 

(e)        except for (i) a default under Sections 6.01(a) or 6.01(b) hereof, which occurs while the Trustee is acting as Paying Agent, or (ii) any other event of which a Responsible Officer of the Trustee has “actual knowledge” and which event constitutes or, with the giving of notice or the passage of time or both, would constitute an Event of Default under this Indenture, the Trustee shall not be deemed to have notice of any Default or Event of Default unless specifically notified in writing of such event by the Issuer or a Holder; as used herein, the term “actual knowledge” means the actual fact or statement of knowing, without any duty to make any investigation with regard thereto.

 

None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

 

Except as explicitly specified otherwise herein, the Issuer will be responsible for making all calculations required under this Indenture and the Notes. The Issuer will make such calculations in good faith and, absent manifest error, the Issuer’s calculations will be final and binding on Holders of the Notes. The Issuer will provide a schedule of its calculations to the Trustee, and the Trustee is entitled to rely upon the accuracy of the Issuer’s calculations without independent verification. The Trustee will forward the Issuer’s calculations to any Holder of the Notes upon request.

 

Section 7.02.        Reliance on Documents, Opinions, etc. Except as otherwise provided in Section 7.01:

 

(a)        the Trustee may conclusively rely and shall be protected in acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, Note, coupon or other paper or document (whether in its original or facsimile form) believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties;

 

(b)        any request, direction, order or demand of the Issuer mentioned herein shall be sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the Issuer or the General Partner;

 

(c)        the Trustee may consult with counsel of its own selection and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or omitted by it hereunder in good faith and in reliance on and in accordance with such advice or Opinion of Counsel;

-27-

(d)        the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Noteholders pursuant to the provisions of this Indenture, unless such Noteholders shall have offered to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby;

 

(e)        the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document, unless requested in writing so to do by the Holders of not less than a majority in aggregate principal amount of the outstanding Notes; provided that, if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require reasonable indemnity against such expenses or liabilities as a condition to proceeding; the reasonable expenses of every such examination shall be paid by the Holders or, if paid by the Trustee, shall be repaid by the Holders upon demand. The Trustee may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Issuer and the Guarantor, personally or by agent or attorney;

 

(f)        the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it with due care hereunder;

 

(g)        the Trustee shall not be liable for any action taken, suffered or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture;

 

(h)        the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder;

 

(i)        the Trustee may request that the Issuer deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded; and

 

(j)        any permissive right or authority granted to the Trustee shall not be construed as a mandatory duty.

 

Section 7.03.        No Responsibility for Recitals, etc. The recitals contained herein and in the Notes (except in the Trustee’s certificate of authentication) shall be taken as the statements of the Issuer, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Issuer of any Notes or the proceeds of any Notes authenticated and delivered by the Trustee in conformity with the provisions of this Indenture.

 

Section 7.04.        Trustee, Paying Agents or Registrar May Own Notes. The Trustee, any Paying Agent or Note Registrar, in its individual or any other capacity, may become the owner or pledgee of Notes and, subject to Sections 310(b) and 311 of the Trust Indenture Act, may otherwise deal with the Issuer and the Guarantor with the same rights it would have if it were not Trustee, Paying Agent or Note Registrar.

 

Section 7.05.        Monies to Be Held in Trust. Subject to the provisions of Section 11.02, all monies received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received. Monies held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. Except as otherwise provided herein, the Trustee shall be under no liability for interest on any monies received by it hereunder except as may be agreed in writing from time to time by the Issuer and the Trustee.

-28-

Section 7.06.        Compensation and Expenses of Trustee. The Issuer covenants and agrees to pay to the Trustee from time to time, and the Trustee shall be entitled to, such compensation for all services rendered by it hereunder in any capacity (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) as mutually agreed to from time to time in writing between the Issuer and the Trustee, and the Issuer will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances reasonably incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the reasonable expenses and disbursements of its counsel and of all Persons not regularly in its employ) except any such expense, disbursement or advance as may arise from its negligence, willful misconduct, recklessness or bad faith. The Issuer also covenants to indemnify the Trustee and any predecessor Trustee (or any officer, director or employee of the Trustee), in any capacity under this Indenture and any authenticating agent for, and to hold them harmless against, any and all loss, liability, damage, claim or reasonable expense including taxes (other than taxes based on the income of the Trustee) incurred without negligence, willful misconduct, recklessness or bad faith on the part of the Trustee or such officers, directors, employees or authenticating agent, as the case may be, and arising out of or in connection with the acceptance or administration of this trust or in any other capacity hereunder, including the reasonable costs and expenses of defending themselves against any claim (whether asserted by the Issuer, any Holder or any other Person) of liability in the premises. The obligations of the Issuer under this Section 7.06 to compensate or indemnify the Trustee and to pay or reimburse the Trustee for reasonable expenses, disbursements and advances shall be secured by a lien prior to that of the Notes upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the Holders of particular Notes. The obligation of the Issuer under this Section shall survive the satisfaction and discharge of this Indenture and any resignation or removal of the Trustee.

 

When the Trustee and its agents and any authenticating agent incur expenses or render services after an Event of Default specified in Section 6.01(e), 6.01(f) or 6.01(g) with respect to the Issuer, the expenses and the compensation for the services are intended to constitute reasonable expenses of administration under any bankruptcy, insolvency or similar laws.

 

Section 7.07.        Officers’ Certificate as Evidence. Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of gross negligence, bad faith, recklessness or willful misconduct on the part of the Trustee, be deemed to be conclusively proved and established by an Officers’ Certificate delivered to the Trustee.

 

Section 7.08.        Conflicting Interests of Trustee. If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.

 

Section 7.09.        Eligibility of Trustee. There shall at all times be a Trustee hereunder which shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000 (or if such Person is a member of a bank holding company system, its bank holding company shall have a combined capital and surplus of at least $50,000,000). If such Person publishes reports of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority, then for the purposes of this Section the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 7.09, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

-29-

Section 7.10.        Resignation or Removal of Trustee.

 

(a)        The Trustee may at any time resign by giving written notice of such resignation to the Issuer and to the Holders of Notes. Upon receiving such notice of resignation, the Issuer shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment thirty (30) calendar days after the mailing of such notice of resignation to the Noteholders, the resigning Trustee may, upon ten (10) Business Days’ notice to the Issuer and the Noteholders, appoint a successor identified in such notice or may petition, at the expense of the Issuer, any court of competent jurisdiction for the appointment of a successor trustee or any Noteholder who has been a bona fide holder of a Note or Notes for at least six months may, subject to the provisions of Section 6.09, on behalf of itself and all others similarly situated, petition any such court for the appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

 

(b)        In case at any time any of the following shall occur:

 

(i)        the Trustee shall fail to comply with Section 7.08 after written request therefor by the Issuer or by any Noteholder who has been a bona fide holder of a Note or Notes for at least six months; or

 

(ii)        the Trustee shall cease to be eligible in accordance with the provisions of Section 7.09 and shall fail to resign after written request therefor by the Issuer or by any such Noteholder; or

 

(iii)        the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation;

 

then, in any such case, the Issuer may remove the Trustee and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, subject to the provisions of Section 6.09, any Noteholder who has been a bona fide holder of a Note or Notes for at least six months may, on behalf of itself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee; provided that if no successor Trustee shall have been appointed and have accepted appointment thirty (30) calendar days after the Issuer has removed the Trustee, the Trustee so removed may petition, at the expense of the Issuer, any court of competent jurisdiction for an appointment of a successor trustee and such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

 

(c)        The Trustee may be removed at any time by the Holders of a majority in principal amount of the outstanding Notes provided that such Holders have prior to such removal provided (i) to the Trustee an undertaking satisfactory to the Trustee to reimburse the Trustee for and hold the Trustee harmless from the costs of any proceedings arising from any petition by the Trustee pursuant to the penultimate sentence of this Section 7.10(c) and (ii) to the Issuer an undertaking satisfactory to the Issuer to reimburse the Issuer for and hold the Issuer harmless from any amount payable by the Issuer under Section 7.06 hereof in connection with such removal or proceedings to replace the Trustee following such removal. Upon such removal, the Issuer shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the removed Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment thirty (30) calendar days after the removal of the Trustee by the Holders as provided in this Section 7.10(c), any Noteholder who has been a bona fide holder of a Note or Notes for at least six months may, subject to the provisions of Section 6.09, on behalf of itself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor trustee. If no successor Trustee shall have been appointed and have accepted appointment thirty (30) calendar days after the removal of the Trustee by the Holders as provided in this Section 7.10(c), the Trustee so removed may petition, at the expense of the Holders providing the undertaking to the Trustee referred to above in this Section 7.10(c), any court of competent jurisdiction for the appointment of a successor trustee. Such court may upon any such above-referenced petition, after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

-30-

(d)        Any resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section 7.10 shall not become effective until acceptance of appointment by the successor trustee as provided in Section 7.11.

 

(e)        Notwithstanding the replacement of the Trustee pursuant to this Section, the Issuer’s obligations under Section 7.06 shall continue for the benefit of the retiring Trustee.

 

Section 7.11.        Acceptance by Successor Trustee. Any successor trustee appointed as provided in Section 7.10 shall execute, acknowledge and deliver to the Issuer and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations of its predecessor hereunder, with like effect as if originally named as trustee herein; but, nevertheless, on the written request of the Issuer or of the successor trustee, the trustee ceasing to act shall, upon payment of any amount then due it pursuant to the provisions of Section 7.06, execute and deliver an instrument transferring to such successor trustee all the rights and powers of the trustee so ceasing to act. Upon request of any such successor trustee, the Issuer shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a lien upon all property and funds held or collected by such trustee as such, except for funds held in trust for the benefit of Holders of particular Notes, to secure any amounts then due it pursuant to the provisions of Section 7.06.

 

No successor trustee shall accept appointment as provided in this Section 7.11 unless, at the time of such acceptance, such successor trustee shall be qualified under the provisions of Section 7.08 and be eligible under the provisions of Section 7.09.

 

Upon acceptance of appointment by a successor trustee as provided in this Section 7.11, the Issuer (or the former trustee, at the written direction of the Issuer) shall mail (or send by electronic transmission) or cause to be mailed (or sent by electronic transmission) notice of the succession of such trustee hereunder to the Holders of Notes at their addresses as they shall appear on the Note Register. If the Issuer fails to mail such notice within ten (10) calendar days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be mailed at the expense of the Issuer.

 

Section 7.12.        Succession by Merger. Any corporation into which the Trustee may be merged or exchanged or with which it may be consolidated, or any corporation resulting from any merger, exchange or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee (including any trust created by this Indenture), shall be the successor to the Trustee hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that in the case of any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, such corporation shall be qualified under the provisions of Section 7.08 and eligible under the provisions of Section 7.09.

 

In case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture, any of the Notes shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or authenticating agent appointed by such predecessor trustee, and deliver such Notes so authenticated; and in case at that time any of the Notes shall not have been authenticated, any successor to the Trustee or any authenticating agent appointed by such successor trustee may authenticate such Notes in the name of the successor trustee; and in all such cases such certificates shall have the full force that is provided in the Notes or in this Indenture; provided that the right to adopt the certificate of authentication of any predecessor Trustee or authenticate Notes in the name of any predecessor Trustee shall apply only to its successor or successors by merger, exchange or consolidation.

 

Section 7.13.        Preferential Collection of Claims. If and when the Trustee shall be or become a creditor of the Issuer, Guarantor (or any other obligor upon the Notes), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of the claims against the Issuer, Guarantor (or any such other obligor).

-31-

ARTICLE 8

The Noteholders

 

Section 8.01.        Action by Noteholders. Whenever in this Indenture it is provided that the Holders of a specified percentage in aggregate principal amount of the Notes may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such action, the Holders of such specified percentage have joined therein may be evidenced (a) by any instrument or any number of instruments of similar tenor executed by Noteholders in person or by agent or proxy appointed in writing, or (b) by the record of the Holders of Notes voting in favor thereof at any meeting of Noteholders, or (c) by a combination of such instrument or instruments and any such record of such a meeting of Noteholders. Whenever the Issuer or the Trustee solicits the taking of any action by the Holders of the Notes, the Issuer or the Trustee may fix in advance of such solicitation a date as the record date for determining Holders entitled to take such action. Such record date, if any, shall be not more than fifteen (15) calendar days prior to the date of commencement of solicitation of such action.

 

Section 8.02.        Proof of Execution by Noteholders. Subject to the provisions of Sections 7.01 and 7.02, proof of the execution of any instrument by a Noteholder or its agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The holding of Notes shall be proved by the registry of such Notes or by a certificate of the Note Registrar.

 

Section 8.03.        Absolute Owners. The Issuer, the Guarantor, the Trustee, any Paying Agent and any Note Registrar may deem the Person in whose name such Note shall be registered upon the Note Register to be, and may treat it as, the absolute owner of such Note (whether or not such Note shall be overdue and notwithstanding any notation of ownership or other writing thereon made by any Person other than the Issuer or any Note Registrar) for the purpose of receiving payment of or on account of the principal of (including the Redemption Price upon redemption pursuant to Article 3), premium, if any, and interest on such Note and for all other purposes; and neither the Issuer nor the Trustee nor any Paying Agent nor any Note Registrar shall be affected by any notice to the contrary. All such payments so made to any Holder for the time being, or upon its order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for monies payable upon any such Note.

 

Section 8.04.        Issuer-owned Notes Disregarded. In determining whether the Holders of the requisite aggregate principal amount of Notes have concurred in any direction, consent, waiver or other action under this Indenture or whether a quorum is present at a meeting of the Holders of the Notes, Notes which are owned by the Issuer or any other obligor on the Notes or any Affiliate of the Issuer or any other obligor on the Notes shall be disregarded and deemed not to be outstanding for the purpose of any such determination; provided that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, consent, waiver or other action, only Notes which a Responsible Officer knows are so owned shall be so disregarded. Notes so owned which have been pledged in good faith may be regarded as outstanding for the purposes of this Section 8.04 if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right to vote such Notes and that the pledgee is not the Issuer, any other obligor on the Notes or any Affiliate of the Issuer or any such other obligor. In the case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee. Upon request of the Trustee, the Issuer shall furnish to the Trustee promptly an Officers’ Certificate listing and identifying all Notes, if any, known by the Issuer to be owned or held by or for the account of any of the above described Persons, and, subject to Section 7.01, the Trustee shall be entitled to accept such Officers’ Certificate as conclusive evidence of the facts therein set forth and of the fact that all Notes not listed therein are outstanding for the purpose of any such determination.

 

Section 8.05.        Revocation of Consents; Future Holders Bound. At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the Holders of the percentage in aggregate principal amount of the Notes specified in this Indenture in connection with such action, any Holder of a Note which is shown by the evidence to be included in the Notes the Holders of which have consented to such action may, by filing written notice with the Trustee at its Corporate Trust Office and upon proof of holding as provided in Section 8.02, revoke such action so far as it concerns such Note. Except as aforesaid, any such action taken by the Holder of any Note shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Note and of any Notes issued in exchange or substitution therefor, irrespective of whether any notation in regard thereto is made upon such Note or any Note issued in exchange or substitution therefor.

-32-

ARTICLE 9

Supplemental Indentures

 

Section 9.01.        Supplemental Indentures Without Consent of Noteholders. The Issuer, when authorized by the resolutions of the Board of Directors, the Guarantor and the Trustee may, from time to time, and at any time enter into an indenture or indentures supplemental without the consent of the Holders of the Notes hereto for one or more of the following purposes:

 

(a)        to evidence a successor to the Issuer as obligor or to the Guarantor as guarantor under this Indenture;

 

(b)        to add to the covenants of the Issuer or the Guarantor for the benefit of the Holders of the Notes or to surrender any right or power conferred upon the Issuer or the Guarantor in this Indenture or in the Notes;

 

(c)        to add Events of Default for the benefit of the Holders of the Notes;

 

(d)        to amend or supplement any provisions of this Indenture; provided that no amendment or supplement shall adversely affect the interests of the Holders of any Notes then outstanding in any material respect;

 

(e)        to secure the Notes;

 

(f)        to provide for the acceptance of appointment of a successor Trustee or facilitate the administration of the trusts under this Indenture by more than one Trustee;

 

(g)        to provide for rights of Holders of Notes if any consolidation, merger or sale of all or substantially all of property or assets of the Issuer and the Guarantor occurs;

 

(h)        to cure any ambiguity, defect or inconsistency in this Indenture; provided that this action shall not adversely affect the interests of the Holders of the Notes in any material respect;

 

(i)        to provide for the issuance of Additional Notes in accordance with the limitations set forth in this Indenture;

 

(j)        to supplement any of the provisions of this Indenture to the extent necessary to permit or facilitate defeasance and discharge of any of the Notes; provided that the action shall not adversely affect the interests of the Holders of the Notes in any material respect; or

 

(k)        to conform the text of this Indenture, any Guarantee or the Notes to any provision of the description thereof set forth in the Prospectus.

 

Upon the written request of the Issuer, accompanied by a copy of the resolutions of the Board of Directors certified by the Issuer’s or the General Partner’s Secretary or Assistant Secretary authorizing the execution of any supplemental indenture, the Trustee is hereby authorized to join with the Issuer and the Guarantor in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations that may be therein contained and to accept the conveyance, transfer and assignment of any property thereunder, but the Trustee shall not be obligated to, but may in its discretion, enter into any supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

 

Any supplemental indenture authorized by the provisions of this Section 9.01 may be executed by the Issuer, the Guarantor and the Trustee without the consent of the Holders of any of the Notes at the time outstanding, notwithstanding any of the provisions of Section 9.02.

-33-

Section 9.02.        Supplemental Indenture With Consent of Noteholders. With the consent (evidenced as provided in Article 8) of the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding, the Issuer, when authorized by the resolutions of the Board of Directors, the Guarantor and the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or any supplemental indenture or modifying in any manner the rights of the Holders of the Notes; provided that no such supplemental indenture shall, without the consent of the Holder of each Note so affected:

 

(a)        change the Stated Maturity of the principal of or any installment of interest on the Notes, reduce the principal amount of, or the rate or amount of interest on, or any premium payable on redemption of, the Notes, or adversely affect any right of repayment of the Holders of the Notes, change the place of payment, or the coin or currency, for payment of principal of or interest on any Note or impair the right to institute suit for the enforcement of any payment on or with respect to the Notes;

 

(b)        reduce the percentage in principal amount of the outstanding Notes necessary to modify or amend this Indenture, to waive compliance with certain provisions of this Indenture or certain defaults and their consequences provided in this Indenture, or to reduce the requirements of quorum or change voting requirements set forth in this Indenture;

 

(c)        modify or affect in any manner adverse to the Holders the terms and conditions of the obligations of the Issuer or the Guarantor in respect of the due and punctual payments of principal and interest; or

 

(d)        modify any of this Section 9.02 or Section 6.07 or any of the requirements thereof for waiver of certain past Defaults or certain covenants, except to increase the required percentage to effect the action or to provide that certain other provisions may not be modified or waived without the consent of the Holders of the Notes.

 

Upon the written request of the Issuer, accompanied by a copy of the resolutions of the Board of Directors certified by the Issuer’s or the General Partner’s Secretary or Assistant Secretary authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Noteholders as aforesaid, the Trustee shall join with the Issuer and the Guarantor in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture.

 

It shall not be necessary for the consent of the Noteholders under this Section 9.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.

 

Section 9.03.        Effect of Supplemental Indenture. Any supplemental indenture executed pursuant to the provisions of this Article 9 shall comply with the Trust Indenture Act, as then in effect. Upon the execution of any supplemental indenture pursuant to the provisions of this Article 9, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitation of rights, obligations, duties and immunities under this Indenture of the Trustee, the Issuer, the Guarantor and the Holders of Notes shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such modifications and amendments and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

 

Section 9.04.        Notation on Notes. Notes authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article 9 may bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Issuer or the Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Trustee and the Issuer, to any modification of this Indenture contained in any such supplemental indenture may, at the Issuer’s expense, be prepared and executed by the Issuer, authenticated by the Trustee (or an authenticating agent duly appointed by the Trustee pursuant to Section 16.11) and delivered in exchange for the Notes then outstanding, upon surrender of such Notes then outstanding.

 

Section 9.05.        Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee. Prior to entering into any supplemental indenture pursuant to this Article 9, the Trustee shall be provided with an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant hereto complies with the requirements of this Article 9 and is otherwise authorized or permitted by this Indenture.

-34-

ARTICLE 10

Consolidation, Merger, Sale, Conveyance and Lease

 

Section 10.01.     Issuer May Consolidate on Certain Terms. Nothing contained in this Indenture or in the Notes shall prevent any consolidation or merger of the Issuer with or into any other Person or Persons (whether or not affiliated with the Issuer), or successive consolidations or mergers in which either the Issuer will be the continuing entity or the Issuer or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or lease of all or substantially all of the property of the Issuer, to any other Person (whether or not affiliated with the Issuer); provided, however, that the following conditions are met:

 

(a)        the Issuer shall be the continuing entity, or the successor entity (if other than the Issuer) formed by or resulting from any consolidation or merger or which shall have received the transfer of assets shall be organized and validly existing under the laws of the United States of America, any State thereof or the District of Columbia and shall expressly assume payment of the principal of and interest on all of the Notes and the due and punctual performance and observance of all of the covenants and conditions in this Indenture;

 

(b)        immediately after giving effect to such transaction, no Default and no Event of Default shall have occurred and be continuing; and

 

(c)        either the Issuer or the successor Person, in either case, shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, sale, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with this Article 10 and that all conditions precedent herein provided for relating to such transaction have been complied with.

 

No such consolidation, merger, sale, conveyance, transfer or lease shall be permitted by this Section 10.01 unless prior thereto the Issuer shall have delivered to the Trustee an Issuer’s Officers’ Certificate and an Opinion of Counsel, each stating that the Issuer’s obligations hereunder shall remain in full force and effect thereafter.

 

Section 10.02.     Issuer Successor to Be Substituted. Upon any consolidation by the Issuer with or merger of the Issuer into any other Person or any sale, conveyance, transfer or lease of all or substantially all of the properties and assets of the Issuer to any Person in accordance with Section 10.01, the successor Person formed by such consolidation or into which the Issuer is merged or to which such sale, conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this Indenture with the same effect as if such successor Person had been named as the Issuer herein, and thereafter, the predecessor Person shall be released and discharged from all obligations and covenants under this Indenture and the Notes.

 

In case of any such consolidation, merger, sale, conveyance, transfer or lease, such changes in phraseology and form (but not in substance) may be made in the Notes thereafter to be issued as may be appropriate.

 

Section 10.03.     Guarantor May Consolidate on Certain Terms. Nothing contained in this Indenture or in the Notes shall prevent any consolidation or merger of the Guarantor with or into any other Person or Persons (whether or not affiliated with the Guarantor), or successive consolidations or mergers in which either the Guarantor will be the continuing entity or the Guarantor or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or lease of all or substantially all of the property of the Guarantor, to any other Person (whether or not affiliated with the Guarantor); provided, however, that the following conditions are met:

 

(a)        the Guarantor shall be the continuing entity, or the successor entity (if other than the Guarantor) formed by or resulting from any consolidation or merger or which shall have received the transfer of assets shall be organized and validly existing under the laws of the United States of America, any State thereof or the District of Columbia and shall expressly assume the obligations of the Guarantor under the Guarantee and the due and punctual performance and observance of all of the covenants and conditions in this Indenture;

-35-

(b)        immediately after giving effect to such transaction, no Default and no Event of Default shall have occurred and be continuing; and

 

(c)        either the Guarantor or the successor Person, in either case, shall have delivered to the Trustee an Officers’ Certificate of the Guarantor and an Opinion of Counsel, each stating that such consolidation, sale, merger, conveyance, transfer or lease and such supplemental indenture comply with this Article 10 and that all conditions precedent herein provided for relating to such transaction have been complied with.

 

No such consolidation, merger, sale, conveyance, transfer or lease shall be permitted by this Section 10.03 unless prior thereto the Guarantor shall have delivered to the Trustee a Guarantor’s Officers’ Certificate and an Opinion of Counsel, each stating that the Guarantor’s obligations hereunder shall remain in full force and effect thereafter.

 

Section 10.04.     Guarantor Successor to Be Substituted. Upon any consolidation or merger with or any sale, conveyance, transfer or lease of all or substantially all of the properties and assets of the Guarantor to any Person in accordance with Section 10.03, the successor Person formed by such consolidation or into which the Guarantor is merged or to which such sale, conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Guarantor under this Indenture with the same effect as if such successor Person had been named as the Guarantor herein, and thereafter, except in the case of a lease, the predecessor Person shall be released and discharged from all obligations and covenants under this Indenture and the Guarantee.

 

In case of any such consolidation, merger, sale, conveyance, transfer or lease, such changes in phraseology and form (but not in substance) may be made in the Notes thereafter to be issued as may be appropriate.

 

ARTICLE 11

 Satisfaction and Discharge of Indenture

 

Section 11.01.     Discharge of Indenture. This Indenture shall cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of Notes herein expressly provided for and except as further provided below), and the Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when (a) either: (1) all Notes theretofore authenticated and delivered (other than (i) Notes which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.07 and (ii) Notes for whose payment monies have theretofore been deposited in trust and thereafter repaid to the Issuer as provided in Section 11.04) have been delivered to the Trustee for cancellation; or (2) all such Notes not theretofore delivered to the Trustee for cancellation (i) have become due and payable, whether at the Maturity Date, or otherwise, (ii) will become due and payable at their Stated Maturity within one year or (iii) are to be called for redemption on a Redemption Date within one year under irrevocable arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Issuer, and the Issuer, in the case of clause (2) above, has irrevocably deposited or caused to be irrevocably deposited with the Trustee or a Paying Agent (other than the Issuer or any of its Affiliates), as applicable, as trust funds in trust cash in an amount sufficient to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit (in the case of Notes which have become due and payable) or to the Maturity Date or Redemption Date, as the case may be; (b) the Issuer has paid or caused to be paid all other sums payable hereunder by the Issuer; and (c) the Issuer has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

-36-

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Issuer to the Trustee under Section 7.06 shall survive and, if monies shall have been deposited with the Trustee pursuant to subclause (2) of clause (a) of this Section, the provisions of Sections 2.06, 2.07, 2.08, 2.09, 4.02, 4.03, 4.04, 4.07, 5.01, 5.03, 7.05, this Article 11, and, if the Notes will be paid on a Redemption Date, Article 3, shall survive and remain in full force and effect.

 

Section 11.02.     Deposited Monies to Be Held in Trust by Trustee. Subject to Section 11.04, all monies deposited with the Trustee pursuant to Section 4.04, Section 11.01 and in accordance with Section 7.05 shall be held in trust for the sole benefit of the Noteholders, and such monies shall be applied by the Trustee to the payment, either directly or through any Paying Agent (including the Issuer if acting as its own Paying Agent), to the Holders of the particular Notes for the payment or redemption of which such monies have been deposited with the Trustee, of all sums due and to become due thereon for principal, premium, if any, and interest. The Trustee is not responsible to anyone for interest on any deposited funds except as agreed in writing.

 

Section 11.03.     Paying Agent Application of Monies Held. Subject to the provisions of Section 11.04, a Paying Agent shall hold in trust, for the benefit of the Noteholders, all monies deposited with it pursuant to Section 4.04 or Section 11.01 and shall apply the deposited monies in accordance with this Indenture and the Notes to the payment of the principal of (including the Redemption Price upon redemption pursuant to Article 3) and interest on the Notes.

 

Section 11.04.     Return of Unclaimed Monies. The Trustee and each Paying Agent shall pay to the Issuer upon request any monies held by them for the payment of principal, premium or interest that remains unclaimed for two years after a right to such monies have matured; provided, however, that the Trustee or such Paying Agent, before being required to make any such payment, may, at the expense of the Issuer, either publish in a newspaper of general circulation in The City of New York, or cause to be mailed (or sent by electronic transmission) to each Holder entitled to such monies, notice that such monies remain unclaimed and that after a date specified therein, which shall be at least thirty (30) calendar days from the date of such mailing or publication, any unclaimed balance of such monies then remaining will be repaid to the Issuer. After payment to the Issuer, Holders entitled to monies must look to the Issuer for payment as general creditors unless an applicable abandoned property law designates another person, and the Trustee and each Paying Agent shall be relieved of all liability with respect to such monies.

 

Section 11.05.     Reinstatement. If the Trustee or a Paying Agent is unable to apply any monies in accordance with Section 11.02 by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Issuer’s obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 11.01 until such time as the Trustee or the Paying Agent is permitted to apply all such monies in accordance with Section 11.02; provided that if the Issuer makes any payment of principal of or interest on any Note following the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the Holders of such Notes to receive such payment from the monies held by the Trustee or Paying Agent.

 

ARTICLE 12

 Legal Defeasance and Covenant Defeasance

 

Section 12.01.     Option to Effect Legal Defeasance or Covenant Defeasance. The Issuer may at any time, at the option of the Board of Directors evidenced by a resolution set forth in an Officers’ Certificate, elect to have either Section 12.02 or 12.03 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below in this Article 12.

 

Section 12.02.     Legal Defeasance and Discharge. Upon the Issuer’s exercise under Section 12.01 hereof of the option applicable to this Section 12.02, the Issuer and the Guarantor will, subject to the satisfaction of the conditions set forth in Section 12.04 hereof, be deemed to have been discharged from their obligations with respect to all outstanding Notes and Guarantees on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Issuer and the Guarantor will be deemed to have paid and discharged the entire Debt represented by the outstanding Notes and Guarantees, which will thereafter be deemed to be “outstanding” only for the purposes of Section 12.05 hereof and the other Sections of this Indenture referred to in clauses (1) and (2) below, and to have satisfied all their other obligations under such Notes, the Guarantees and this Indenture (and the Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging the same), except for the following provisions which will survive until otherwise terminated or discharged hereunder:

 

(a)        the rights of Holders of outstanding Notes to receive payments in respect of the principal of, or interest or premium, if any, on, such Notes when such payments are due from the trust referred to in Section 12.04 hereof;

-37-

(b)        the Issuer’s obligations with respect to such Notes under Sections 2.06, 2.07, 2.08, 2.09, 4.02, 4.03, 4.04, 4.07, 5.01, 5.03, 7.06 and, if the Notes will be paid on a Redemption Date, Article 3;

 

(c)        the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Issuer’s and the Guarantor’s obligations in connection therewith; and

 

(d)        this Article 12.

 

Subject to compliance with this Article 12, the Issuer may exercise its option under this Section 12.02 notwithstanding the prior exercise of its option under Section 12.03 hereof.

 

Section 12.03.     Covenant Defeasance. Upon the Issuer’s exercise under Section 12.01 hereof of the option applicable to this Section 12.03, the Issuer and the Guarantor will, subject to the satisfaction of the conditions set forth in Section 12.04 hereof, be released from each of their obligations under the covenants contained in Section 4.05 to keep in full force and effect their respective rights (charter and statutory) (but, for the avoidance of doubt, they will not be released from their respective obligations to do or cause to be done all things necessary to preserve and keep in full force and effect their respective existences (except as provided under Article 10)) and contained in Sections 4.06, 4.09 and 4.10 with respect to the outstanding Notes on and after the date the conditions set forth in Section 12.04 hereof are satisfied (hereinafter, “Covenant Defeasance”), and the Notes will thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but will continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes will not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes and Guarantee, the Issuer and the Guarantor may omit to comply with and will have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply will not constitute a Default or an Event of Default under Section 6.01(c) hereof, but, except as specified above, the remainder of this Indenture and such Notes and Guarantee will be unaffected thereby.

 

Section 12.04.     Conditions to Legal or Covenant Defeasance. In order to exercise either Legal Defeasance or Covenant Defeasance under either Section 12.02 or 12.03 hereof:

 

(a)        the Issuer must irrevocably deposit with the Trustee, in trust, for the sole benefit of the Holders, cash in U.S. dollars, non-callable Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of, premium, if any, and interest on, the outstanding Notes on the stated date for payment thereof or on the applicable Redemption Date, as the case may be, and the Issuer must specify whether the Notes are being defeased to such stated date for payment or to a particular Redemption Date;

 

(b)        in the case of an election under Section 12.02 hereof, the Issuer must deliver to the Trustee an Opinion of Counsel confirming that:

 

(1)        the Issuer has received from, or there has been published by, the Internal Revenue Service a ruling; or

 

(2)        since the date of this Indenture, there has been a change in the applicable federal income tax law,

 

in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

-38-

(c)        in the case of an election under Section 12.03 hereof, the Issuer must deliver to the Trustee an Opinion of Counsel confirming that the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;

 

(d)        No Default or Event of Default (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit (and any similar concurrent deposit relating to other indebtedness being defeased, discharged or replaced), and the granting of liens to secure such borrowings) shall have occurred and be continuing on the date of such deposit and no Event of Default or event which with notice or lapse of time or both would become an Event of Default under Sections 6.01(e), 6.01(f) or 6.01(g) shall have occurred and be continuing at any time during the period ending on and including the 91st day after the date of such deposit (it being understood that this condition to defeasance shall not be deemed satisfied until the expiration of such period);

 

(e)        such Legal Defeasance or Covenant Defeasance will not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than this Indenture and the agreements governing any other indebtedness being defeased, discharged or replaced) to which the Issuer or the Guarantor is a party or by which the Issuer or the Guarantor is bound;

 

(f)        the Issuer must deliver to the Trustee an Officers’ Certificate stating that the deposit was not made by the Issuer with both (i) the intent of preferring the Holders of Notes over the other creditors of the Issuer and (ii) the intent of hindering, delaying or defrauding any creditors of the Issuer or others;

 

(g)        the Issuer must deliver to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the Covenant Defeasance have been complied with;

 

(h)        if the cash or Government Securities or combination thereof, as the case may be, deposited under Section 12.04(a) above are sufficient to pay the principal of and interest on the Notes provided the Notes are redeemed on a particular Redemption Date, the Issuer shall have given the Trustee irrevocable instructions to redeem the Notes on such date and to provide notice of such redemption to Holders as provided in or pursuant to this Indenture; and

 

(i)        the Issuer must pay or cause to paid all amounts due to the Trustee and any Agent appointed hereunder.

 

Section 12.05.     Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions. Subject to Section 12.06 hereof, all money and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 12.05, the “Trustee”) pursuant to Section 12.04 hereof in respect of the outstanding Notes will be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Issuer acting as Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law.

 

The Issuer will pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable Government Securities deposited pursuant to Section 12.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes.

-39-

Notwithstanding anything in this Article 12 to the contrary, the Trustee will deliver or pay to the Issuer from time to time upon the request of the Issuer any money or non-callable Government Securities held by it as provided in Section 12.04 hereof which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 12.04(a) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section 12.06.     Repayment to Issuer. Any money and Government Securities deposited with the Trustee or any Paying Agent, or then held by the Issuer, in trust for the payment of the principal of, premium, if any, or interest on, any Note under this Article 12 and remaining unclaimed for two years after such principal, premium, if any, or interest has become due and payable shall be paid to the Issuer on its request or (if then held by the Issuer) will be discharged from such trust; and the Holder of such Note will thereafter be permitted to look only to the Issuer for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money or Government Securities, and all liability of the Issuer as trustee thereof, will thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Issuer cause to be published once, in a newspaper of general circulation in The City of New York, notice that payment from such money or Government Securities remains unclaimed and that, after a date specified therein, which will not be less than thirty (30) days from the date of such notification or publication, any unclaimed balance of such money or Government Securities then remaining will be repaid to the Issuer.

 

Section 12.07.     Reinstatement. If the Trustee or Paying Agent is unable to apply any cash or non-callable Government Securities in accordance with Section 12.02 or 12.03 hereof, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Issuer’s and the Guarantor’s obligations under this Indenture and the Notes and the Guarantee will be revived and reinstated as though no deposit had occurred pursuant to Section 12.02 or 12.03 hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 12.02 or 12.03 hereof, as the case may be; provided, however, that, if the Issuer makes any payment of principal of, premium, if any, or interest on, any Note following the reinstatement of its obligations, the Issuer will be subrogated to the rights of the Holders of such Notes to receive such payment from the money or non-callable Government Securities held by the Trustee or Paying Agent.

 

ARTICLE 13

 Immunity of Incorporators, Stockholders, Officers and Directors

 

Section 13.01.     Indenture and Notes Solely Corporate Obligations. Except as otherwise expressly provided in Article 15, no recourse for the payment of the principal of (including the Redemption Price upon redemption pursuant to Article 3) or, premium, if any, or interest on any Note, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Issuer or the Guarantor in this Indenture or in any supplemental indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, limited partner, member, manager, employee, agent, officer, director or Subsidiary, as such, past, present or future, of the General Partner, the Issuer, the Guarantor or any of the Issuer’s or Guarantor’s Subsidiaries or of any successor thereto, either directly or through the Issuer or Guarantor any of the Issuer’s or Guarantor’s Subsidiaries or any successor thereto, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issue of the Notes.

-40-

ARTICLE 14

Meetings of Holders of Notes

 

Section 14.01.     Purposes for Which Meetings May Be Called. A meeting of Holders of Notes may be called at any time and from time to time pursuant to this Article 14 to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other act provided by this Indenture to be made, given or taken by Holders of Notes.

 

Section 14.02.     Call, Notice and Place of Meetings.

 

(a)        The Trustee may at any time call a meeting of Holders of Notes for any purpose specified in Section 14.01, to be held at such time and at such place in The City of New York, New York as the Trustee shall determine. Notice of every meeting of Holders of Notes, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be given, in the manner provided in Section 16.03, not less than twenty-one (21) nor more than 180 days prior to the date fixed for the meeting.

 

(b)        In case at any time the Issuer, the Guarantor or the Holders of at least 10% in principal amount of the outstanding Notes shall have requested the Trustee to call a meeting of the Holders of Notes for any purpose specified in Section 14.01, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed notice of or made the first publication of the notice of such meeting within twenty-one (21) days after receipt of such request or shall not thereafter proceed to cause the meeting to be held as provided herein, then the Issuer, the Guarantor, if applicable, or the Holders of Notes in the amount above specified, as the case may be, may determine the time and the place in the City of New York, New York, for such meeting and may call such meeting for such purposes by giving notice thereof as provided in clause (a) of this Section.

 

Section 14.03.     Persons Entitled to Vote at Meetings. To be entitled to vote at any meeting of Holders of Notes, a Person shall be (a) a Holder of one or more outstanding Notes, or (b) a Person appointed by an instrument in writing as proxy for a Holder or Holders of one or more outstanding Notes by such Holder or Holders. The only Persons who shall be entitled to be present or to speak at any meeting of Holders of Notes shall be the Persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and its counsel, any representatives of the Guarantor and its counsel and any representatives of the Issuer and its counsel.

 

Section 14.04.     Quorum; Action. The Persons entitled to vote a majority in principal amount of the outstanding Notes shall constitute a quorum for a meeting of Holders of Notes; provided, however, that if any action is to be taken at the meeting with respect to any request, demand, authorization, direction, notice, consent, waiver or other action which may be made, given or taken by the Holders of not less than a specified percentage in principal amount of the outstanding Notes, the Persons holding or representing the specified percentage in principal amount of the outstanding Notes will constitute a quorum. In the absence of a quorum within thirty (30) minutes after the time appointed for any such meeting, the meeting shall, if convened at the request of Holders of Notes, be dissolved. In any other case the meeting may be adjourned for a period of not less than ten (10) days as determined by the chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at the reconvening of any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less than ten (10) days as determined by the chairman of the meeting prior to the adjournment of such reconvened meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in Section 14.02, except that such notice need be given only once not less than five days prior to the date on which the meeting is scheduled to be reconvened. Notice of the reconvening of an adjourned meeting shall state expressly the percentage, as provided above, of the principal amount of the outstanding Notes which shall constitute a quorum.

 

Except as limited by the proviso to Section 9.02, any resolution presented to a meeting or adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted only by the affirmative vote of the Holders of a majority in principal amount of the outstanding Notes; provided, however, that, except as limited by the proviso to Section 9.02, any resolution with respect to any request, demand, authorization, direction, notice, consent, waiver or other action which this Indenture expressly provides may be made, given or taken by the Holders of a specified percentage, which is less than a majority, in principal amount of the outstanding Notes may be adopted at a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid by the affirmative vote of the Holders of such specified percentage in principal amount of the outstanding Notes.

-41-

Any resolution passed or decision taken at any meeting of Holders of Notes duly held in accordance with this Section 14.04 shall be binding on all the Holders of Notes, whether or not such Holders were present or represented at the meeting.

 

Section 14.05.     Determination of Voting Rights; Conduct and Adjournment of Meetings. Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders of Notes in regard to proof of the holding of Notes and of the appointment of proxies and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate. Except as otherwise permitted or required by any such regulations, the holding of Notes shall be proved in the manner specified in Section 8.03 and the appointment of any proxy shall be proved in the manner specified in Section 8.01.

 

(a)        The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Issuer or Guarantor or by Holders of Notes as provided in Section 14.02(b), in which case the Issuer, the Guarantor or the Holders of Notes calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons entitled to vote a majority in principal amount of the outstanding Notes represented at the meeting.

 

(b)        At any meeting, each Holder of a Note or proxy shall be entitled to one vote for each $1,000 principal amount of outstanding Notes held or represented by him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Note challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding. The chairman of the meeting shall have no right to vote, except as a Holder of a Note or proxy.

 

(c)        Any meeting of Holders of Notes duly called pursuant to Section 14.02 at which a quorum is present may be adjourned from time to time by Persons entitled to vote a majority in principal amount of the outstanding Notes represented at the meeting; and the meeting may be held as so adjourned without further notice.

 

Section 14.06.     Counting Votes and Recording Action of Meetings. The vote upon any resolution submitted to any meeting of Holders of Notes shall be by written ballots on which shall be subscribed the signatures of the Holders of Notes or of their representatives by proxy and the principal amounts and serial numbers of the outstanding Notes held or represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in triplicate of all votes cast at the meeting. A record, at least in triplicate, of the proceedings of each meeting of Holders of Notes shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was given as provided in Section 14.02 and, if applicable, Section 14.04. Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one such copy shall be delivered to the Issuer and the Guarantor, and another to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein stated.

 

ARTICLE 15

 Guarantee

 

Section 15.01.     Guarantee. By its execution hereof, the Guarantor acknowledges and agrees that it receives substantial benefits from the Issuer and that the Guarantor is providing its Guarantee for good and valuable consideration, including, without limitation, such substantial benefits. Accordingly, subject to the provisions of this Article 15, the Guarantor hereby fully, absolutely, irrevocably and unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and its successors and assigns that: (i) the principal of (including the Redemption Price upon redemption pursuant to Article 3), premium, if any, and interest on the Notes shall be duly and punctually paid in full when due, whether at the Maturity Date, upon acceleration, upon redemption or otherwise, and interest on overdue principal, premium, if any, and (to the extent permitted by law) interest on any overdue interest, if any, on the Notes and all other obligations of the Issuer to the Holders or the Trustee hereunder or under the Notes (including fees, expenses or other) shall be promptly paid in full or performed, all in accordance with the terms hereof; and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at the Maturity Date, by acceleration, call for redemption or otherwise, subject, however, in the case of clauses (i) and (ii) above, to the limitations set forth in Section 15.03 hereof (collectively, the “Guarantee Obligations”).

-42-

Subject to the provisions of this Article 15, the Guarantor hereby agrees that its Guarantee hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any thereof, the entry of any judgment against the Issuer, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of the Guarantor. The Guarantor hereby waives and relinquishes: (a) any right to require the Trustee, the Holders or the Issuer (each, a “Benefited Party”) to proceed against the Issuer or any other Person or to proceed against or exhaust any security held by a Benefited Party at any time or to pursue any other remedy in any Benefited Party’s power before proceeding against the Guarantor as this shall be a guaranty of payment and not of collection; (b) any defense that may arise by reason of the incapacity, lack of authority, death or disability of any other Person or Persons or the failure of a Benefited Party to file or enforce a claim against the estate (in administration, bankruptcy or any other proceeding) of any other Person or Persons; (c) demand, protest and notice of any kind (except as expressly required by this Indenture), including but not limited to notice of the existence, creation or incurring of any new or additional indebtedness or obligation or of any action or non-action on the part of the Guarantor, the Issuer, any Benefited Party, any creditor of the Guarantor or the Issuer or on the part of any other Person whomsoever in connection with any obligations the performance of which are hereby guaranteed; (d) any defense based upon an election of remedies by a Benefited Party, including but not limited to an election to proceed against the Guarantor for reimbursement; (e) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (f) any defense arising because of a Benefited Party’s election, in any proceeding instituted under the Bankruptcy Law, of the application of Section 1111(b)(2) of the Bankruptcy Code; and (g) any defense based on any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code. The Guarantor hereby covenants that, except as otherwise provided therein, the Guarantee shall not be discharged except by payment in full of all Guarantee Obligations, including the principal, premium, if any, and interest on the Notes and all other costs provided for under this Indenture or as provided in Article 7.

 

If any Holder or the Trustee is required by any court or otherwise to return to either the Issuer or the Guarantor, or any trustee or similar official acting in relation to either the Issuer or the Guarantor, any amount paid by the Issuer or the Guarantor to the Trustee or such Holder, the Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. The Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Guarantee Obligations hereby until payment in full of all such obligations guaranteed hereby. The Guarantor agrees that, as between it, on the one hand, and the Holders of Notes and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 hereof for the purposes hereof, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Guarantee Obligations, and (y) in the event of any acceleration of such obligations as provided in Article 6 hereof, such Guarantee Obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantor for the purpose of the Guarantee.

 

Section 15.02.     Execution and Delivery of Guarantee. To evidence the Guarantee set forth in Section 15.01 hereof, the Guarantor agrees that a notation of the Guarantee substantially in the form included in Exhibit B hereto shall be endorsed on each Note authenticated and delivered by the Trustee and that this Indenture shall be executed on behalf of the Guarantor by an officer of the Guarantor.

 

The Guarantor agrees that the Guarantee set forth in this Article 15 shall remain in full force and effect and apply to all the Notes notwithstanding any failure to endorse on each Note a notation of the Guarantee.

 

If an officer whose facsimile signature is on a Note or a notation of Guarantee no longer holds that office at the time the Trustee authenticates the Note on which the Guarantee is endorsed, the Guarantee shall be valid nevertheless.

 

The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Guarantee set forth in this Indenture and endorsed on such Note on behalf of the Guarantor.

 

Section 15.03.     Limitation of Guarantor’s Liability; Certain Bankruptcy Events.

 

(a)        The Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is the intention of all such parties that the Guarantee Obligations of the Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or conveyance for purposes of any Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law. To effectuate the foregoing intention, the Holders and the Guarantor hereby irrevocably agree that the Guarantee Obligations of the Guarantor under this Article 15 shall be limited to the maximum amount as shall, after giving effect to all other contingent and fixed liabilities of the Guarantor, result in the Guarantee Obligations of the Guarantor under the Guarantee not constituting a fraudulent transfer or conveyance.

 

(b)        The Guarantor hereby covenants and agrees, to the fullest extent that it may do so under applicable law, that in the event of the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Issuer, the Guarantor shall not file (or join in any filing of), or otherwise seek to participate in the filing of, any motion or request seeking to stay or to prohibit (even temporarily) execution on the Guarantee and hereby waives and agrees not to take the benefit of any such stay of execution, whether under Section 362 or 105 of the Bankruptcy Law or otherwise.

 

Section 15.04.     Application of Certain Terms and Provisions to the Guarantor. For purposes of any provision of this Indenture which provides for the delivery by the Guarantor of an Officers’ Certificate and/or an Opinion of Counsel, the definitions of such terms in Section 1.01 hereof shall apply to the Guarantor as if references therein to the Issuer or the General Partner, as applicable, were references to the Guarantor. Upon any demand, request or application by the Guarantor to the Trustee to take any action under this Indenture, the Guarantor shall furnish to the Trustee such certificates and opinions as are required in Section 16.05 hereof as if all references therein to the Issuer were references to the Guarantor.

-43-

ARTICLE 16

Miscellaneous Provisions

 

Section 16.01.     Provisions Binding on Issuer’s and Guarantor’s Successors. All the covenants, stipulations, promises and agreements by the Issuer or Guarantor contained in this Indenture shall bind their respective successors and assigns whether so expressed or not.

 

Section 16.02.     Official Acts by Successor Corporation. Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Issuer or the Guarantor shall and may be done and performed with like force and effect by the like board, committee or officer of any Person that shall at the time be the lawful sole successor of the Issuer or Guarantor.

 

Section 16.03.     Addresses for Notices, etc. Any notice or demand which by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the Holders of Notes on the Issuer or Guarantor shall be in writing and shall be deemed to have been sufficiently given or made, for all purposes, if given or served by being deposited postage prepaid by registered or certified mail in a post office letter box, or sent by overnight courier, or sent by .pdf transmission (receipt of which has been confirmed via return email) addressed as follows:

 

To Issuer:

Essex Portfolio, L.P.

1100 Park Place, Suite 200

San Mateo, California 94403

Email: akleiman@essex.com

 Attention: Angela Kleiman, Chief Financial Officer

 

To Guarantor:

Essex Property Trust, Inc.

1100 Park Place, Suite 200

San Mateo, California 94403

Email: akleiman@essex.com

 Attention: Angela Kleiman, Chief Financial Officer

 

Any notice, direction, request or demand hereunder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or served by being deposited, postage prepaid, by registered or certified mail in a post office letter box, or sent by overnight courier, or sent by telecopier transmission addressed as follows:

 

U.S. Bank National Association

Global Corporate Trust Services

One California Street, Suite 1000

San Francisco, California 94111

Fax: (415) 677-3769

 Attention: David Jasnon (Essex Portfolio)

 

The Trustee, by notice to the Issuer, may designate additional or different addresses for subsequent notices or communications.

-44-

Any notice or communication mailed to a Noteholder shall be mailed by first class mail, postage prepaid, at such Noteholder’s address as it appears on the Note Register and shall be sufficiently given to such Noteholder if so mailed within the time prescribed.

 

Failure to mail a notice or communication to a Noteholder or any defect in it shall not affect its sufficiency with respect to other Noteholders. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it.

 

Section 16.04.     Governing Law. This Indenture shall be governed by, and construed in accordance with, the laws of the State of New York without regard to conflict of law principles that would result in the application of any laws other than the laws of the State of New York.

 

Section 16.05.     Evidence of Compliance with Conditions Precedent, Certificates to Trustee. Upon any application or demand by the Issuer to the Trustee to take any action under any of the provisions of this Indenture, the Issuer shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, and, if requested by the Trustee, an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

 

Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture shall include: (1) a statement that the person making such certificate or opinion has read such covenant or condition; (2) a brief statement as to the nature and scope of the examination or investigation upon which the statement or opinion contained in such certificate or opinion is based; (3) a statement that, in the opinion of such person, such person has made such examination or investigation as is necessary to enable such person to express an informed opinion as to whether or not such covenant or condition has been complied with; and (4) a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with; provided, however, that with respect to matters of fact an Opinion of Counsel may rely on an Officers’ Certificate or certificates of public officials.

 

Section 16.06.     Legal Holidays. In any case in which any interest payment date, Redemption Date, Stated Maturity or Maturity of any Note or any installment of principal or interest thereon will not be a Business Day, then payment of such interest on or principal of the Notes need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on such interest payment date, Redemption Date, Stated Maturity or Maturity Date, and no interest shall accrue on the amount so payable for the period from and after such interest payment date, Redemption Date, Stated Maturity or Maturity Date, to such next succeeding Business Day.

 

Section 16.07.     Trust Indenture Act. This Indenture is hereby made subject to, and shall be governed by, the provisions of the Trust Indenture Act required to be part of and to govern indentures qualified under the Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in an indenture qualified under the Trust Indenture Act, such required provision shall control.

 

Section 16.08.     No Security Interest Created. Nothing in this Indenture or in the Notes, expressed or implied, shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any jurisdiction in which property of the Issuer or its Subsidiaries is located.

 

Section 16.09.     Benefits of Indenture. Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto, any Paying Agent, any authenticating agent, any Note Registrar and their successors hereunder and the Holders of Notes any benefit or any legal or equitable right, remedy or claim under this Indenture.

 

Section 16.10.     Table of Contents, Headings, etc. The table of contents and the titles and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 16.11.     Authenticating Agent. The Trustee may appoint an authenticating agent that shall be authorized to act on its behalf, and subject to its direction, in the authentication and delivery of Notes in connection with the original issuance thereof and transfers and exchanges of Notes hereunder, including under Sections 2.04, 2.06, 2.07, 2.08 and 3.03, as fully to all intents and purposes as though the authenticating agent had been expressly authorized by this Indenture and those Sections to authenticate and deliver Notes. For all purposes of this Indenture, the authentication and delivery of Notes by the authenticating agent shall be deemed to be authentication and delivery of such Notes “by the Trustee” and a certificate of authentication executed on behalf of the Trustee by an authenticating agent shall be deemed to satisfy any requirement hereunder or in the Notes for the Trustee’s certificate of authentication. Such authenticating agent shall at all times be a Person eligible to serve as trustee hereunder pursuant to Section 7.09.

 

Any corporation into which any authenticating agent may be merged or exchanged or with which it may be consolidated, or any corporation resulting from any merger, consolidation or exchange to which any authenticating agent shall be a party, or any corporation succeeding to the corporate trust business of any authenticating agent, shall be the successor of the authenticating agent hereunder, if such successor corporation is otherwise eligible under this Section 16.11, without the execution or filing of any paper or any further act on the part of the parties hereto or the authenticating agent or such successor corporation.

-45-

Any authenticating agent may at any time resign by giving written notice of resignation to the Trustee and to the Issuer. The Trustee may at any time terminate the agency of any authenticating agent by giving written notice of termination to such authenticating agent and to the Issuer. Upon receiving such a notice of resignation or upon such a termination, or in case at any time any authenticating agent shall cease to be eligible under this Section, the Trustee shall either promptly appoint a successor authenticating agent or itself assume the duties and obligations of the former authenticating agent under this Indenture and, upon such appointment of a successor authenticating agent, if made, shall give written notice of such appointment of a successor authenticating agent to the Issuer and shall mail notice of such appointment of a successor authenticating agent to all Holders of Notes as the names and addresses of such Holders appear on the Note Register.

 

The Issuer agrees to pay to the authenticating agent from time to time such reasonable compensation for its services as shall be agreed upon in writing between the Issuer and the authenticating agent.

 

The provisions of Sections 7.02, 7.03, 7.04 and 8.03 and this Section 16.11 shall be applicable to any authenticating agent.

 

Section 16.12.     Execution in Counterparts. This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

 

Section 16.13.     Severability. In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 16.14.     USA Patriot Act. The parties hereto acknowledge that in accordance with Section 326 of the USA Patriot Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee. The parties to this Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the USA Patriot Act.

 

U.S. Bank National Association hereby accepts the trusts in this Indenture declared and provided, upon the terms and conditions herein above set forth.

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed.

 

	 	
ESSEX PORTFOLIO, L.P.

	 
	 	 	 
	 	
By:

	
Essex Property Trust, Inc. 

	 	 	
Its Sole General Partner 

	 	 	 	 
	 	
By:

	/s/ Barb Pak
	 	 	
Name: Barb Pak

	 	 	
Title: Vice President of Finance

	 	 	 	 
	 	
ESSEX PROPERTY TRUST, INC., 

	 	
   as Guarantor 

	 	 	 	 
	 	
By:

	/s/ Barb Pak  
	 	 	
Name: Barb Pak

	 	 	
Title: Vice President of Finance

	 	 	 	 
	 	
U.S. BANK NATIONAL ASSOCIATION, 

	 	
   as Trustee 

	 	 	 	 
	 	
By:

	/s/ David Jason
	 	 	
Name: David Jason 

	 	 	
Title: Vice President

 

Signature Page to Essex Portfolio, L.P. Indenture

-46-

EXHIBIT A

 

FORM OF NOTE

 

[Include only for Global Notes]

 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.09 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

A-1

ESSEX PORTFOLIO, L.P.

3.625% SENIOR NOTES DUE 2027

 

No. [      ]

 

CUSIP No.: 29717P AR8

 

ISIN: US29717PAR82

 

$[      ]

 

Essex Portfolio, L.P., a California limited partnership (herein called the “Issuer,” which term includes any successor entity under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to [Cede & Co.][holder of note in definitive form], or its registered assigns, the principal sum of [  ] ($[  ]), [or such other amount as is set forth in the Schedule of Exchanges of Interests in the Global Note on the other side of this Note,*] on May 1, 2027, at the office or agency of the Issuer maintained for that purpose in accordance with the terms of the Indenture, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, semi-annually on May 1st and November 1st of each year, commencing November 1, 2017 on said principal sum at said office or agency, in like coin or currency, at the rate per annum of 3.625%, from the May 1st or November 1st, as the case may be, next preceding the date of this Note to which interest has been paid or duly provided for, unless no interest has been paid or duly provided for on the Notes, in which case from April 10, 2017 until payment of said principal sum has been made or duly provided for. The Issuer shall pay interest on any Definitive Note by check mailed to the address of the Person entitled thereto as it appears in the Note Register; provided, however, that a Holder of any Definitive Note may specify by written notice to the Issuer that it pay interest by wire transfer of immediately available funds to the account specified by the Noteholder in such notice, or on any Global Note by wire transfer of immediately available funds to the account of the Depositary or its nominee.

 

The Issuer promises to pay interest on overdue principal, premium, if any, and (to the extent that payment of such interest is enforceable under applicable law) interest at the rate per annum borne by the Notes.

 

Reference is made to the further provisions of this Note set forth on the reverse hereof and the Indenture governing this Note. Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed manually by the Trustee or a duly authorized authenticating agent under the Indenture.

 

 

* This language should be included only if the Note is issued in global form.

 

IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

 

Dated:

 

	 	
ESSEX PORTFOLIO, L.P.

	 	 
	 	
By:

	
Essex Property Trust, Inc.

	 	 	
Its Sole General Partner

	 	 	 
	 	
By:

	
	 	 	
Name:

	 	 	
Title:

 

A-2

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes described in the within-named Indenture.

 

Dated:

 

	 	
U.S. Bank National Association, as Trustee

	 	 
	 	
By:

	 
	 	 	
Authorized Signatory

A-3

[FORM OF REVERSE SIDE OF NOTE]

 

ESSEX PORTFOLIO, L.P.

 3.625% SENIOR NOTES DUE 2027

 

This Note is one of a duly authorized issue of Notes of the Issuer, designated as its 3.625% Senior Notes due 2027 (herein called the “Notes”), issued under and pursuant to an Indenture dated as of April 10, 2017 (herein called the “Indenture”), among the Issuer, the Guarantor and U.S. Bank National Association, as trustee (herein called the “Trustee”), to which Indenture and any indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Issuer, the Guarantor and the Holders of the Notes. Defined terms used but not otherwise defined in this Note shall have the respective meanings ascribed thereto in the Indenture.

 

If an Event of Default (other than an Event of Default specified in Section 6.01(e), 6.01(f) or 6.01(g) with respect to the Issuer) occurs and is continuing, the principal of, premium, if any, and accrued and unpaid interest on all Notes may be declared to be due and payable by either the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding, and, upon said declaration the same shall be immediately due and payable. If an Event of Default specified in Section 6.01(e), 6.01(f) or 6.01(g) of the Indenture occurs with respect to the Issuer, the principal of and premium, if any, and interest accrued and unpaid on all the Notes shall be immediately and automatically due and payable without necessity of further action.

 

The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the Holders of the Notes, subject to exceptions set forth in Section 9.02 of the Indenture. Subject to the provisions of the Indenture, the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding may, on behalf of the Holders of all of the Notes, waive any past Default or Event of Default, subject to exceptions set forth in the Indenture.

 

No reference herein to the Indenture and no provision of this Note, the Guarantee endorsed on this Note or of the Indenture shall impair, as among the Issuer and the Holder of the Notes, the obligation of the Issuer, which is absolute and unconditional, to pay the principal of, premium, if any, on and interest on this Note at the place, at the respective times, at the rate and in the coin or currency herein and in the Indenture prescribed.

 

Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months.

 

The Notes are issuable in fully registered form, without coupons, in minimum denominations of $2,000 principal amount and any integral multiple of $1,000 in excess thereof. At the office or agency of the Issuer referred to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but with payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection with any registration or exchange of Notes, Notes may be exchanged for a like aggregate principal amount of Notes of any other authorized denominations.

 

The Issuer shall have the right to redeem the Notes under certain circumstances as set forth in Section 3.01, Section 3.02 and Section 3.03 of the Indenture.

 

The Notes are not subject to redemption through the operation of any sinking fund.

 

Except as expressly provided in Article 15 of the Indenture, no recourse for the payment of the principal of or any premium or interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or agreement of the Issuer in the Indenture or any supplemental indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, limited partner, member, manager, employee, agent, officer, director or subsidiary, as such, past, present or future, of the Guarantor, the Issuer or any of the Issuer’s Subsidiaries or of any successor thereto, either directly or through the Guarantor, the Issuer or any of the Issuer’s Subsidiaries or of any successor thereto, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as consideration for, the execution of the Indenture and the issue of this Note.

A-4

ASSIGNMENT FORM

 

	
To assign this Note, fill in the form below:

	 
	
(I) or (we) assign and transfer this Note to:

	
 

	
 

	
(Insert assignee’s legal name)

	
 

	
 

	
(Insert assignee’s soc. sec. or tax I.D. no.)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(Print or type assignee’s name, address and zip code)

	
 

	
 

	
and irrevocably appoint

	
 

	
to transfer this Note on the books of the Issuer. The agent may substitute another to act for him.

	
 

	
Date:

	
 

	
 

	
 

	
 

	
 

	
Your Signature:

	
 

		
(Sign exactly as your name appears on the face of this Note)

	
 

	
Signature Guarantee*:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

* Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE *

 

The following exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made:

 

	
Date of Exchange

	 	
Amount of 

decrease in

Principal Amount

at maturity of this

 Global Note

	 	
Amount of increase

in Principal

Amount at

maturity of this

 Global Note

	 	
Principal Amount

at maturity of this

Global Note

following such

decrease (or

 increase)

	 	
Signature of

authorized officer

of Trustee or

 Custodian

	
 

	 	
 

	 	
 

	 	
 

	 	
 

	
 

	 	
 

	 	
 

	 	
 

	 	
 

 

* This schedule should be included only if the Note is issued in global form.

A-5

EXHIBIT B

 

FORM OF GUARANTEE

 

The Guarantor listed below (hereinafter referred to as the “Guarantor,” which term includes any successors or assigns under the Indenture, dated the date hereof, among the Guarantor, the Issuer (defined below) and U.S. Bank National Association, as trustee (the “Indenture”)), has fully, absolutely, irrevocably and unconditionally guaranteed on a senior basis the Guarantee Obligations (as defined in Section 15.01 of the Indenture), which include (i) the due and punctual payment of the principal of, premium, if any, and interest on the 3.625% Senior Notes due 2027 (the “Notes”) of Essex Portfolio, L.P., a California limited partnership (the “Issuer”), whether at maturity, by acceleration, call for redemption or otherwise, the due and punctual payment of interest on the overdue principal and premium, if any, and (to the extent permitted by law) interest on any overdue interest on the Notes, and the due and punctual performance of all other obligations of the Issuer, to the Holders of the Notes or the Trustee all in accordance with the terms set forth in Article 15 of the Indenture, and (ii) in case of any extension of time of payment or renewal of any Notes or any such other obligations, that the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at maturity, by acceleration, call for redemption or otherwise.

 

The obligations of the Guarantor to the Holders of the Notes and to the Trustee pursuant to this Guarantee and the Indenture are expressly set forth in Article 15 of the Indenture and reference is hereby made to such Indenture for the precise terms of this Guarantee.

 

No past, present or future director, officer, employee, incorporator or stockholder (direct or indirect) of the Guarantor (or any such successor entity), as such, shall have any liability for any obligations of the Guarantor under this Guarantee or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.

 

The Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of merger or bankruptcy of the Issuer, any right to require a proceeding first against the Issuer, the benefit of discussion, protest or notice with respect to the Notes and all demands whatsoever.

 

This is a continuing Guarantee and shall remain in full force and effect and shall be binding upon the Guarantor and its successors and assigns until full and final payment of all of the Issuer’s obligations under the Notes and Indenture or until legally discharged in accordance with the Indenture and shall inure to the benefit of the successors and assigns of the Trustee and the Holders of the Notes, and, in the event of any transfer or assignment of rights by any Holder of the Notes or the Trustee, the rights and privileges herein conferred upon that party shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions hereof. This is a Guarantee of payment and performance and not of collectability.

 

This Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Note upon which this Guarantee is noted shall have been executed by the Trustee or a duly authorized authenticating agent under the Indenture by the manual signature of one of its authorized officers.

 

The obligations of the Guarantor under this Guarantee shall be limited to the extent necessary to insure that it does not constitute a fraudulent conveyance under applicable law.

 

THE TERMS OF ARTICLE 15 OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

 

Capitalized terms used herein have the same meanings given in the Indenture unless otherwise indicated.

 

IN WITNESS WHEREOF, the Guarantor has caused this instrument to be duly executed.

 

Dated:

 

	 	
ESSEX PROPERTY TRUST, INC.

	 	 
	 	
By:

	 
	 	 	
Name:

	 	 	
Title:

B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00269-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00269-of-00352.parquet"}]]