Document:

Exhibit 10.2

 

Execution Version

 

TERM LOAN JOINDER AGREEMENT AND AMENDMENT

 

This TERM LOAN JOINDER AGREEMENT AND AMENDMENT, dated as of July 15, 2016 (this “Agreement”), by and among Douglas Dynamics, Inc. (“Holdings”), Douglas Dynamics, L.L.C. (the “Company” or the “Borrower”), Douglas Dynamics Finance Company (“DD Finance”), Fisher, LLC (“Fisher”), Trynex International LLC (“Trynex”), Henderson Enterprises Group, Inc. (the survivor of a merger with DDIZ Acquisition, Inc.) (“HEG”), Henderson Products, Inc. (“HPI”) and Acquisition Delta LLC (“Delta” and, together with Holdings, DD Finance, Fisher, Trynex, HEG and HPI, each a “Guarantor” and collectively, the “Guarantors”), the Incremental Lenders (as defined below), JPMorgan Chase Bank, N.A. (“JPMorgan”), as administrative agent for the Incremental Lenders (in such capacity, the “Administrative Agent”) and as collateral agent for the Incremental Lenders (in such capacity, the “Collateral Agent”), and the other Lenders (as defined below) party hereto.

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, the Borrower is party to that certain Amended and Restated Credit and Guaranty Agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Term Loan Credit Agreement”), dated as of December 31, 2014, among the Borrower, the guarantors party thereto, the lenders from time to time party thereto (the “Lenders”), the Administrative Agent, the Collateral Agent and the certain other parties from time to time party thereto;

 

WHEREAS, the Borrower has, by notice to the Administrative Agent delivered pursuant to Section 2.23(a) of the Term Loan Credit Agreement, requested the establishment of incremental term loan commitments (the “Incremental Term Loan Commitments”) in an aggregate principal amount of $130,000,000 (the loans in respect thereof, the “Incremental Term Loans”);

 

WHEREAS, each financial institution identified on the signature pages hereto as an “Incremental Lender” (each, an “Incremental Lender”) has agreed, severally, on the terms and conditions set forth herein and in the Term Loan Credit Agreement, to provide a portion of the Incremental Term Loans and to become, if not already, a Lender for all purposes of the Term Loan Credit Agreement;

 

WHEREAS, the Borrower has requested that in connection with the establishment of the Incremental Term Loans, the Requisite Lenders agree (the “Required Approvals”) to (i) permit the Borrower to incur up to $20 million of floor plan financing and (ii) authorize the Administrative Agent to enter into any intercreditor or subordination agreement with any party providing floor plan financing and the administrative and collateral agent under the Revolving Credit Documents.

 

WHEREAS, the Borrower has requested that certain other amendments be made to the Term Loan Credit Agreement;

 

WHEREAS, the Requisite Lenders, on the terms and conditions set forth herein, are willing to provide the Required Approvals and agree to the amendments set forth herein;

 

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

 

 

I. DEFINED TERMS

 

Terms defined in the Term Loan Credit Agreement and not defined herein are used herein as defined therein.

 

II. INCREMENTAL FACILITY

 

(a)           Subject to and upon the terms and conditions set forth herein, each Incremental Lender severally agrees to make, on the Incremental Effective Date (as defined below), an Incremental Term Loan Commitment in dollars to the Borrower in an amount equal to the commitment amount set forth next to such Incremental Lender’s name in Schedule I hereto under the caption “Incremental Term Loan Commitment”; provided that the Incremental Term Loans shall be part of the same facility of loans as the Term Loans under the Term Loan Credit Agreement made prior to the date hereof (the “Existing Term Loans”).  Except as necessary to give effect to the provisions of clauses (b) through (f) below, the Incremental Term Loans shall be “Loans”, “Term Loans” and “Additional Term Loans” for all purposes of the Term Loan Credit Agreement and the other Credit Documents.  The Incremental Term Loans may be repaid or prepaid in accordance with the provisions of the Credit Agreement and this Agreement, but once repaid or prepaid may not be reborrowed.

 

(b)           The proceeds of the Incremental Term Loans shall be used solely (i) to pay in part the purchase price for the Asset Purchase (as defined below) and (ii) to pay the fees, costs and expenses incurred in connection with (x) the consummation of the Asset Purchase, (y) the making of the Incremental Term Loans and (z) the effectiveness of the Amendment and any amendment to the Revolving Credit Documents made on the Incremental Effective Date (the transactions described in clause (ii)(x)-(z), together with the payment of fees in connection therewith, the “Transactions”).

 

(c)           The aggregate principal amount of the Incremental Term Loans made on the Incremental Effective Date shall be $130,000,000.

 

(d)           Maturity.  The maturity date in respect of the Incremental Term Loans shall be December 31, 2021 (the “Incremental Term Maturity Date”).

 

(e)           Interest.  The interest rate in respect of the Incremental Term Loans shall be the interest rate applicable to the Existing Term Loans as of the Incremental Effective Date.

 

(f)            Amortization.  Commencing with the fiscal quarter ending September 30, 2016, the Incremental Term Loans shall be repayable in equal quarterly installments such that the amount repaid in each such quarterly installment is equal to one quarter of 1.69% of the original principal amount of the Incremental Term Loans.

 

The balance of the Incremental Term Loans will be repayable on the Incremental Term Maturity Date.

 

(g)           Guarantees and Security.  The Incremental Term Loans shall constitute Obligations for all purposes of the Term Loan Credit Agreement and the Collateral Documents and will be secured by the Collateral securing the other Obligations. For the avoidance of doubt, the Incremental Term Loans shall (i) benefit from the Guaranty to the same extent as the Existing Term Loans, (ii) be secured by Liens on the Collateral on a pari passu basis with the Liens on the Collateral securing the Existing Term Loans and (iii) be pari passu in right of payment with the Existing Term Loans.

 

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(h)           No FATCA Grandfather Obligation.  Solely for purposes of determining withholding taxes imposed under FATCA, from and after the Incremental Effective Date, the Borrower and the Arrangers agree to treat (and the Incremental Lenders and the Lenders hereby authorize the Arrangers to treat) any Credit Document and any Loan made under any Credit Document as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

(i)            Other Terms of Incremental Facility.  Except as expressly set forth herein, the Incremental Term Loans shall have the same terms and conditions as the Existing Term Loans.

 

III. AMENDMENTS

 

The Requisite Lenders hereby agree that the Term Loan Credit Agreement is hereby amended as of the Incremental Effective Date  to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in the pages of the Term Loan Credit Agreement attached as Exhibit A hereto.

 

IV. EXISTING MORTGAGES

 

Within 90 days following the Incremental Effective Date (or such later date as the Administrative Agent may agree), the Credit Parties shall deliver to the Administrative Agent, with respect to each Mortgage encumbering a Real Estate Asset on the Incremental Effective Date, an amendment to the existing Mortgage and such other documents required by Section 5.12(c) of the Term Loan Credit Agreement.

 

V. ACKNOWLEDGMENTS WITH RESPECT TO THE TERM LOAN CREDIT AGREEMENT AND THE INTERCREDITOR AGREEMENT

 

(a)           The Requisite Lenders hereby agree that (a) the Borrower may request Incremental Term Loan Commitments pursuant to clause (a)(ii) of Section 2.23 of the Term Loan Credit Agreement prior to requesting Incremental Term Loan Commitments pursuant to clause (a)(i) of Section 2.23 of the Term Loan Credit Agreement and (b) clause (ii) of the defined term “Maximum Term Principal Amount” in the Intercreditor Agreement may be utilized prior to full utilization of clause (i) of such defined term.

 

(b)           The Borrower hereby represents and warrants that after giving effect to the Incremental Term Loans, the First Lien Debt Ratio shall not be greater than 3.25 to 1.00 (it being understood that in determining the amount of the unrestricted Cash of the Company for purposes of calculating the First Lien Debt Ratio, the proceeds of the Incremental Term Loans shall not be included).

 

VI. ACKNOWLEDGEMENT OF INCREMENTAL LENDERS

 

Each Incremental Lender (a) represents and warrants that (i) it has full power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby and to become a Lender under the Term Loan Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Term Loan Credit Agreement, (iii) from and after the Incremental Effective Date, it shall be bound by the provisions of this Agreement and the Term Loan Credit Agreement as a Lender thereunder and shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Term Loan Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it has

 

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deemed appropriate to make its own credit analysis and decision to enter into this Agreement and to make Incremental Term Loans on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender and (v) it does not bear a relationship to the Borrower described in Section 108(e)(4) of the Internal Revenue Code and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent or any other Lender (including any other Incremental Lender) and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Documents and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Credit Documents are required to be performed by it as a Lender.

 

VII. EFFECT ON THE CREDIT DOCUMENTS

 

Except as expressly provided herein, (a) the Incremental Term Loans shall be subject to the provisions of the Term Loan Credit Agreement and the other Credit Documents that apply to “Loans”, “Term Loans” and “Additional Term Loans” thereunder and (b) all of the terms and provisions of the Term Loan Credit Agreement and the other Credit Documents are and shall remain in full force and effect.  This Agreement shall constitute (i) the Term Loan Joinder Agreement and (ii) a Credit Document for all purposes of the Term Loan Credit Agreement and the other Credit Documents.  Provisions of this Agreement are deemed incorporated into the Term Loan Credit Agreement as if fully set forth therein.  To the extent required by the Term Loan Credit Agreement, the Borrower and the Administrative Agent hereby consent to each Incremental Lender that is not a Lender as of the date hereof becoming a Lender under the Term Loan Credit Agreement on the Incremental Effective Date.

 

VIII. CONDITIONS

 

This Agreement shall become effective on the date of satisfaction of the following conditions precedent (such date, the “Incremental Effective Date”):

 

(a)           The Administrative Agent shall have received sufficient copies of this Agreement, executed and delivered by each applicable Credit Party, the Administrative Agent, the Incremental Lenders and the Requisite Lenders.

 

(b)           The Administrative Agent, the Incremental Lenders, the Lenders and their respective counsel shall have received originally executed copies of the favorable written opinion of Foley & Lardner LLP, counsel for the Credit Parties, in form and substance satisfactory to the Administrative Agent, dated as of the Incremental Effective Date (and each Credit Party hereby instructs such counsel to deliver such opinion to the Administrative Agent, the Incremental Lenders and the Lenders).

 

(c)           The Administrative Agent shall have received (i) copies of each Organizational Document for each Credit Party, certified as of a recent date prior to the Incremental Effective Date by the appropriate governmental official or, as applicable, by an officer of such Credit Party, (ii) signature and incumbency certificates of the officers of each Credit Party executing the Credit Documents to which it is a party, (iii) resolutions of the Board of Directors or similar governing body of each Credit Party approving and authorizing the execution, delivery and performance of this Agreement and the other Credit Documents to which it is a party, certified as of the Incremental Effective Date by its secretary or an assistant secretary as being in full force and effect without modification or amendment, (iv) a good standing certificate from the applicable Governmental Authority of each Credit Party’s jurisdiction of incorporation, organization or formation and in each jurisdiction in which it is qualified as a foreign corporation or other entity to do business, each dated a recent date prior to the Incremental Effective Date, and (v) such other documents as the Administrative Agent may reasonably request.

 

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(d)           On the Incremental Effective Date, the Administrative Agent shall have received a Solvency Certificate from the chief financial officer of Holdings, dated as of the Incremental Effective Date and addressed to the Administrative Agent, the Incremental Lenders and the Lenders, in form, scope and substance satisfactory to the Administrative Agent, with appropriate attachments and demonstrating that after giving effect to the Transactions, the Borrower is and will be, and Holdings and its Subsidiaries (on a consolidated basis) are and will be, Solvent.

 

(e)           The terms of the Asset Purchase Agreement, dated June 15, 2016, among Acquisition Delta, Peter Paul Dejana Family Trust Dated 12/31/98, Dejana Truck & Utility Equipment Company, Inc. and Andrew Dejana (as appointed agent) (including all exhibits, schedules, annexes and other attachments thereto and other agreements related thereto) (the “Purchase Agreement”) and all related documents shall be reasonably satisfactory to the Arrangers. The acquisition of assets pursuant to the Purchase Agreement (the “Asset Purchase”) shall be consummated pursuant to the Purchase Agreement, substantially concurrently with the initial funding of the Incremental Term Loans, and no provision thereof shall have been amended or waived, and no consent shall have been given thereunder, in any manner materially adverse to the interests of the Incremental Lenders or the Arrangers without the prior written consent of the Arrangers.

 

(f)            On the Incremental Effective Date, after giving effect to the Transactions, none of Holdings, the Borrower or any of the Subsidiaries of the Borrower shall have any material indebtedness for borrowed money other than Indebtedness outstanding under the Term Loan Credit Agreement and Indebtedness outstanding under the Revolving Credit Documents.

 

(g)           The drawing of the Incremental Term Loans shall have occurred on or before the earlier of (i) August 31, 2016 and (ii) the termination of the Purchase Agreement prior to the closing of the Asset Purchase.

 

(h)           The Administrative Agent shall have received (a) audited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of the Sellers (as defined in the Purchase Agreement) and their Subsidiaries for the fiscal years ended December 31, 2013 and December 31, 2014, (b) an unaudited consolidated balance sheet and related statements of income, stockholders’ equity and cash flows of the Sellers (as defined in the Purchase Agreement) and their Subsidiaries, for the fiscal year ended December 31, 2015 and (c) unaudited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of the Sellers (as defined in the Purchase Agreement) and their Subsidiaries for each subsequent fiscal quarter ended at least 45 days prior to the Incremental Effective Date.

 

(i)            The Administrative Agent shall have received a pro forma consolidated balance sheet and related pro forma consolidated statement of income of the Company and its Subsidiaries as of and for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period ended at least 45 days prior to the Incremental Effective Date, prepared after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of income).

 

(j)            The Administrative Agent shall have received, at least five (5) Business Days in advance of the Incremental Effective Date, all documentation and other information required by Governmental Authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including, without limitation, as required by the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001.

 

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(k)           All fees, expenses and other amounts due and payable to the Arrangers, the Agents, the Incremental Lenders and the Lenders on the Incremental Effective Date shall have been paid or shall have been authorized to be deducted from the proceeds of the funding of the Incremental Term Loans.

 

(l)            The Administrative Agent shall be satisfied with (i) the valid perfected First Priority security interest in favor of Collateral Agent, for the benefit of Secured Parties, in the Term Priority Collateral (including any assets to be acquired through the Asset Purchase that would constitute Term Priority Collateral once acquired) and (ii) the valid perfected Second Priority security interest in favor of Collateral Agent, for the benefit of the Secured Parties, in the ABL Priority Collateral (including any assets to be acquired through the Asset Purchase that would constitute ABL Priority Collateral once acquired).

 

(m)          The Purchase Agreement Representations (as defined below) and the Specified Representations (as defined below) shall be true and correct in all material respects (unless qualified by materiality, in which case they shall be true and correct in all respects).

 

“Purchase Agreement Representations” means such of the representations made by or on behalf of the Sellers (as defined in the Purchase Agreement) in the Purchase Agreement as are material to the interests of the Incremental Lenders, but only to the extent that the accuracy of any such representation is a condition to the obligations of the Borrower (or an affiliate thereof) to close under the Purchase Agreement or the Borrower (or an affiliate thereof) has the right to terminate its obligations under the Purchase Agreement as a result of a breach of such representations in the Purchase Agreement.

 

“Specified Representations” means the representations and warranties in the Term Loan Credit Agreement relating to corporate existence and qualification, power and authority, due authorization, execution and delivery of, and enforceability of, this Agreement, effectiveness, validity and perfection of First Priority Liens under the Collateral Documents, no conflicts with organizational documents, governmental approvals, use of proceeds, Investment Company Act, compliance with laws, solvency, OFAC, FCPA, Patriot Act, Federal Reserve margin regulations and the Investment Company Act.

 

(n)           Since December 31, 2015, there shall not have occurred any change, effect, event or development that, individually or in the aggregate, has had or would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of the Sellers (as defined in the Purchase Agreement) and their respective Subsidiaries.

 

(o)           The Administrative Agent shall have received a certificate of the Authorized Representative of the Borrower certifying that (a) as of the date of signing of the Purchase Agreement, the representations and warranties contained in the Term Loan Credit Agreement and the other Credit Documents were true and correct in all material respects (or in all respects, if qualified by materiality) on and as of such date to the same extent as though made on and as of such date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties were true and correct in all material respects (or in all respects, if qualified by materiality) on and as of such earlier date, (b) after giving effect to the borrowing of the Incremental Term Loans, the First Lien Debt Ratio is no greater than 3.25 to 1.00 and (c) both before and after giving effect to the making of the Incremental Term Loans, no Event of Default under Section 8.1(a), 8.1(f) or 8.1(g) of the Term Loan Credit Agreement exists on the Incremental Effective Date.

 

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(p)           Both before and after giving effect to the making of the Incremental Term Loans, no Event of Default under Section 8.1(a), 8.1(f) or 8.1(g) of the Term Loan Credit Agreement shall exist on the Incremental Effective Date.

 

(q)           With respect to mortgaged real property, the Administrative Agent shall have received a completed “Life-of-Loan” Federal Emergency Management Agency standard flood hazard determination (and if any improvements on such mortgaged property are located in a special flood hazard area, (i) a notice about special flood hazard area status and flood disaster assistance duly executed by the applicable Credit Parties and (ii) evidence of flood insurance in form and substance reasonably satisfactory to the Administrative Agent and any other information or documentation reasonably requested by the Administrative Agent in connection therewith).

 

SECTION IX. REAFFIRMATION

 

By signing this Agreement, each Credit Party hereby confirms that (a) its obligations and liabilities under the Term Loan Credit Agreement as modified hereby (including with respect to the Incremental Term Loans contemplated by this Agreement) and the other Credit Documents to which it is a party remain in full force and effect on a continuous basis after giving effect to this Agreement, (b) the Secured Parties remain entitled to the benefits of the Guaranty and the security interests set forth or created in the Collateral Documents and the other Credit Documents, (c) notwithstanding the effectiveness of the terms hereof, the Collateral Documents and the other Credit Documents are, and shall continue to be, in full force and effect and are hereby ratified and confirmed in all respects and (d) each Incremental Term Lender shall be a “Secured Party” and a “Lender” for all purposes of the Term Loan Credit Agreement and the other Credit Documents.  Each Credit Party ratifies and confirms that all Liens granted, conveyed, or assigned to any Agent by such Person pursuant to each Credit Document to which it is a party remain in full force and effect, are not released or reduced, and continue to secure full payment and performance of the Obligations as increased hereby.

 

SECTION X. EXPENSES

 

The Borrower agrees to pay and reimburse the Administrative Agent for all its reasonable costs and out-of-pocket expenses incurred in connection with the preparation and delivery of this Agreement, including, without limitation, the reasonable and invoiced fees, charges and disbursements of one counsel in each applicable jurisdiction to the Administrative Agent.

 

SECTION XI. MISCELLANEOUS

 

(a)           This Agreement and the rights and obligations of the parties hereunder shall be governed by, and shall be construed and enforced in accordance with the laws of the State of New York without regard to conflict of law principles thereof that would result in the application of the laws of another jurisdiction.

 

(b)           EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.  EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO THIS AGREEMENT, WHICH

 

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EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS.  EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION OF THIS AGREEMENT AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, SUPPLEMENTS OR MODIFICATIONS HERETO OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS AGREEMENT.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

(c)           This Agreement may be executed in counterparts, each of which when so executed and delivered shall be deemed an original, but all of such counterparts together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile or electronic file shall be effective as delivery of a manually executed counterpart of this Agreement.

 

[Signature Pages Follow.]

 

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DOUGLAS   DYNAMICS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert J. Young
    
	
 
    	
 
    	
Name: Robert J. Young
    
	
 
    	
 
    	
Title: Vice President,   Controller, and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DOUGLAS DYNAMICS,   L.L.C.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert J. Young
    
	
 
    	
 
    	
Name: Robert J. Young
    
	
 
    	
 
    	
Title: Vice President,   Controller, and Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DOUGLAS DYNAMICS   FINANCE COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ James L. Janik
    
	
 
    	
 
    	
Name: James L. Janik
    
	
 
    	
 
    	
Title: President and   Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FISHER, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
DOUGLAS DYNAMICS,   L.L.C.
    
	
 
    	
Its:
    	
Sole Member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert J. Young
    
	
 
    	
 
    	
Name: Robert J. Young
    
	
 
    	
 
    	
Title: Vice President,   Controller, and Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TRYNEX INTERNATIONAL   LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert J. Young
    
	
 
    	
 
    	
Name: Robert J. Young
    
	
 
    	
 
    	
Title: Vice President,   Controller, and Treasurer
    
				

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
HENDERSON ENTERPRISES   GROUP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert J. Young
    
	
 
    	
 
    	
Name: Robert J. Young
    
	
 
    	
 
    	
Title: Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HENDERSON   PRODUCTS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert J. Young
    
	
 
    	
 
    	
Name: Robert J. Young
    
	
 
    	
 
    	
Title: Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACQUISITION DELTA LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert J. Young
    
	
 
    	
 
    	
Name: Robert J. Young
    
	
 
    	
 
    	
Title: Treasurer
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
JPMORGAN CHASE BANK,   N.A., as Administrative Agent, as Collateral Agent, as a Lender and as   Incremental Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Raymond Gage
    
	
 
    	
 
    	
Name: Raymond Gage
    
	
 
    	
 
    	
Title: Authorized   Officer
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Gallatin CLO IV 2012-1,   Ltd
    
	
 
    	
As Assignee
    
	
 
    	
By: MP Senior Credit   Partners L.P.
    
	
 
    	
as its Collateral   Manger
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Niall Rosenzweig
    
	
 
    	
 
    	
Name: Niall Rosenzweig
    
	
 
    	
 
    	
Title: Principal
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Gallatin CLO IV 2013-1,   Ltd
    
	
 
    	
As Assignee
    
	
 
    	
By: MP Senior Credit   Partners L.P.
    
	
 
    	
as its Collateral   Manger
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Niall Rosenzweig
    
	
 
    	
 
    	
Name: Niall Rosenzweig
    
	
 
    	
 
    	
Title: Principal
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Gallatin CLO IV 2013-2,   LLC
    
	
 
    	
By: MP Senior Credit   Partners L.P.
    
	
 
    	
as its Portfolio Manger
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Niall Rosenzweig
    
	
 
    	
 
    	
Name: Niall Rosenzweig
    
	
 
    	
 
    	
Title: Principal
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Gallatin CLO IV   2014-1, Ltd.
    
	
 
    	
By: MP Senior Credit   Partners
    
	
 
    	
as its Portfolio Manger
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Niall Rosenzweig
    
	
 
    	
 
    	
Name: Niall Rosenzweig
    
	
 
    	
 
    	
Title: Principal
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Kingsland II, Ltd.
    
	
 
    	
BY: Kingsland Capital   Management, LLC, as Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Katherine Kim
    
	
 
    	
 
    	
Name: Katherine Kim
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Kingsland   III, Ltd.
    
	
 
    	
BY: Kingsland Capital   Management, LLC, as Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Katherine Kim
    
	
 
    	
 
    	
Name: Katherine Kim
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Kingsland IV, Ltd.
    
	
 
    	
BY: Kingsland Capital   Management, LLC, as Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Katherine Kim
    
	
 
    	
 
    	
Name: Katherine Kim
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Kingsland V, Ltd.
    
	
 
    	
BY: Kingsland Capital   Management, LLC, as Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Katherine Kim
    
	
 
    	
 
    	
Name: Katherine Kim
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Kingsland VI
    
	
 
    	
By: Kingsland Capital   Management, LLC, as Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Katherine Kim
    
	
 
    	
 
    	
Name: Katherine Kim
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Kingsland VII
    
	
 
    	
By: Kingsland Capital   Management, LLC, as Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Katherine Kim
    
	
 
    	
 
    	
Name: Katherine Kim
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Golub Capital Partners   CLO 14, Ltd.
    
	
 
    	
By: GC Advisors LLC, as   agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christina D.   Jamieson
    
	
 
    	
 
    	
Name: Christina D.   Jamieson
    
	
 
    	
 
    	
Title: Designated   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Golub Capital Partners   CLO 15, Ltd.
    
	
 
    	
By: GC Advisors LLC, as   agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christina D.   Jamieson
    
	
 
    	
 
    	
Name: Christina D.   Jamieson
    
	
 
    	
 
    	
Title: Designated   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Golub Capital Partners   CLO 22(B), Ltd.
    
	
 
    	
By: GC Advisors LLC, as   agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christina D.   Jamieson
    
	
 
    	
 
    	
Name: Christina D.   Jamieson
    
	
 
    	
 
    	
Title: Designated   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Golub Capital Partners   CLO 23(B), Ltd.
    
	
 
    	
By: GC Advisors LLC, as   agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christina D.   Jamieson
    
	
 
    	
 
    	
Name: Christina D.   Jamieson
    
	
 
    	
 
    	
Title: Designated Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Golub Capital Partners   CLO 29(B), Ltd.
    
	
 
    	
By: GC Advisors LLC, as   agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christina D.   Jamieson
    
	
 
    	
 
    	
Name: Christina D.   Jamieson
    
	
 
    	
 
    	
Title: Designated   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA CREDIT PARTNERS   IX, LTD.
    
	
 
    	
By: Oak Hill Advisors,   L.P.
    
	
 
    	
as Portfolio Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA CREDIT PARTNERS   VI, LTD.
    
	
 
    	
By: Oak Hill Advisors,   L.P. As its Portfolio
    
	
 
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA CREDIT PARTNERS   VII, LTD.
    
	
 
    	
By: Oak Hill Advisors,   L.P. As Portfolio 
    
	
 
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA CREDIT PARTNERS   VIII, LTD.
    
	
 
    	
By: Oak Hill Advisors,   L.P.
    
	
 
    	
as Warehouse Portfolio   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA CREDIT PARTNERS   X, LTD.
    
	
 
    	
By: Oak Hill Advisors,   L.P.
    
	
 
    	
as Portfolio Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA CREDIT PARTNERS   XII, LTD.
    
	
 
    	
By: Oak Hill Advisors,   L.P.
    
	
 
    	
as Portfolio Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA LOAN FUNDING   2012-1, LTD.
    
	
 
    	
By: Oak Hill Advisors,   L.P.
    
	
 
    	
As Portfolio Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA LOAN FUNDING   2013-1, LTD.
    
	
 
    	
By: Oak Hill Advisors,   L.P.
    
	
 
    	
as Portfolio Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA LOAN FUNDING   2013-2, LTD.
    
	
 
    	
By: Oak Hill Advisors,   L.P.
    
	
 
    	
As Portfolio Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA LOAN FUNDING   2014-1, LTD.
    
	
 
    	
By: Oak Hill Advisors,   L.P. as Portfolio
    
	
 
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA LOAN FUNDING   2015-1, LTD.
    
	
 
    	
By: Oak Hill Advisors,   L.P. as Portfolio 
    
	
 
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
OHA S.C.A., SICAV-SIF
    
	
 
    	
represented by OHA   Management 

(Luxembourg) S.Ã r.l.,   in its capacity of General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Glenn August
    
	
 
    	
 
    	
Name: Glenn August
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
IVY HILL MIDDLE MARKET   CREDIT FUND IV, LTD., as a Lender
    
	
 
    	
By: Ivy Hill Asset   Management, L.P., as Portfolio Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Name: Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    
	
 
    	
IVY HILL MIDDLE MARKET   CREDIT FUND V, LTD., as a Lender
    
	
 
    	
By: Ivy Hill Asset   Management, L.P., as Portfolio Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Name: Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    
	
 
    	
IVY HILL MIDDLE MARKET   CREDIT FUND VII, LTD., as a Lender
    
	
 
    	
By: Ivy Hill Asset   Management, L.P., as Asset Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Name: Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    
	
 
    	
IVY HILL MIDDLE MARKET   CREDIT FUND VIII, LTD., as a Lender
    
	
 
    	
By: Ivy Hill Asset   Management, L.P., as Collateral Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Name: Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    
	
 
    	
IVY HILL MIDDLE MARKET   CREDIT FUND IX, LTD., as a Lender
    
	
 
    	
By: Ivy Hill Asset   Management, L.P., as Asset Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Name: Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Title: Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
IVY HILL MIDDLE MARKET   CREDIT FUND X, LTD., as a Lender
    
	
 
    	
By: Ivy Hill Asset   Management, L.P., as Asset Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Name: Ian Fitzgerald
    
	
 
    	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Cent CLO 16, L.P.
    
	
 
    	
BY: Columbia Management   Investment Advisers, LLC
    
	
 
    	
As Collateral Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven B. Staver
    
	
 
    	
 
    	
Name: Steven B. Staver
    
	
 
    	
 
    	
Title: Assistant Vice   President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Cent CLO 17 Limited
    
	
 
    	
BY: Columbia Management   Investment Advisers, LLC
    
	
 
    	
As Collateral Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven B. Staver
    
	
 
    	
 
    	
Name: Steven B. Staver
    
	
 
    	
 
    	
Title: Assistant Vice   President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Cent CLO 18 Limited
    
	
 
    	
BY: Columbia Management   Investment Advisers, LLC As Collateral Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven B. Staver
    
	
 
    	
 
    	
Name: Steven B. Staver
    
	
 
    	
 
    	
Title: Assistant Vice   President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Cent CLO 19 Limited
    
	
 
    	
By: Columbia Management   Investment Advisers, LLC
    
	
 
    	
As Collateral Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven B. Staver
    
	
 
    	
 
    	
Name: Steven B. Staver
    
	
 
    	
 
    	
Title: Assistant Vice   President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Cent CLO 20 Limited
    
	
 
    	
By: Columbia Management   Investment Advisers, LLC As Collateral Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven B. Staver
    
	
 
    	
 
    	
Name: Steven B. Staver
    
	
 
    	
 
    	
Title: Assistant Vice   President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Cent CLO 21 Limited
    
	
 
    	
By: Columbia Management   Investment Advisers, LLC
    
	
 
    	
As Collateral Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven B. Staver
    
	
 
    	
 
    	
Name: Steven B. Staver
    
	
 
    	
 
    	
Title: Assistant Vice President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Cent CLO 22 Limited
    
	
 
    	
By: Columbia Management   Investment Advisers, LLC
    
	
 
    	
As Collateral Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven B. Staver
    
	
 
    	
 
    	
Name: Steven B. Staver
    
	
 
    	
 
    	
Title: Assistant Vice   President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Cent CLO 23 Limited
    
	
 
    	
By: Columbia Management   Investment Advisers, LLC
    
	
 
    	
As Collateral Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven B. Staver
    
	
 
    	
 
    	
Name: Steven B. Staver
    
	
 
    	
 
    	
Title: Assistant Vice   President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Cent CLO 24 Limited
    
	
 
    	
By: Columbia Management   Investment Advisers, LLC
    
	
 
    	
As Collateral Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven B. Staver
    
	
 
    	
 
    	
Name: Steven B. Staver
    
	
 
    	
 
    	
Title: Assistant Vice   President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
RiverSource Life   Insurance Company
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven B. Staver
    
	
 
    	
 
    	
Name: Steven B. Staver
    
	
 
    	
 
    	
Title: Assistant Vice   President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
LOOMIS SAYLES CLO   II, LTD.,
    
	
 
    	
As Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Loomis,   Sayles & Company, L.P.,
    
	
 
    	
 
    	
Its Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Loomis,   Sayles & Company, Incorporated,
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mary McCarthy
    
	
 
    	
 
    	
Name: Mary McCarthy
    
	
 
    	
 
    	
Title: Vice President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
LOOMIS SAYLES CREDIT OPPORTUNITIES   FUND,
    
	
 
    	
As Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
Loomis,   Sayles & Company, L.P.,
    
	
 
    	
 
    	
the Investment Manager   of the Fund
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Loomis,   Sayles & Company, Incorporated,
    
	
 
    	
 
    	
the General Partner of   Loomis, Sayles & Company, L.P.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mary McCarthy
    
	
 
    	
 
    	
 
    	
Name: Mary McCarthy
    
	
 
    	
 
    	
 
    	
Title: Vice President
    
					

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
LOOMIS SAYLES SENIOR   FLOATING RATE LOAN FUND,
    
	
 
    	
As Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
Loomis,   Sayles & Company, L.P.,
    
	
 
    	
 
    	
Its Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Loomis,   Sayles & Company, Incorporated,
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mary McCarthy
    
	
 
    	
 
    	
 
    	
Name: Mary McCarthy
    
	
 
    	
 
    	
 
    	
Title: Vice President
    
					

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
NATIXIS LOOMIS SAYLES   SENIOR LOAN FUND,
    
	
 
    	
As Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
Loomis,   Sayles & Company, L.P.,
    
	
 
    	
 
    	
Its Investment Manager
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Loomis,   Sayles & Company, Incorporated,
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mary McCarthy
    
	
 
    	
 
    	
 
    	
Name: Mary McCarthy
    
	
 
    	
 
    	
 
    	
Title: Vice President
    
					

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
NHIT SENIOR FLOATING   RATE AND FIXED INCOME TRUST,
    
	
 
    	
As Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
Loomis, Sayles Trust   Company, LLC,
    
	
 
    	
 
    	
As Trustee
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mary McCarthy
    
	
 
    	
 
    	
 
    	
Name: Mary McCarthy
    
	
 
    	
 
    	
 
    	
Title: Vice President
    
					

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
THE LOOMIS SAYLES   SENIOR LOAN FUND, LLC,
    
	
 
    	
As Lender
    
	
 
    	
 
    
	
 
    	
By: 
    	
Loomis,   Sayles & Company, L.P.,
    
	
 
    	
 
    	
Its Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
Loomis,   Sayles & Company, Incorporated,
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mary McCarthy
    
	
 
    	
 
    	
 
    	
Name: Mary McCarthy
    
	
 
    	
 
    	
 
    	
Title: Vice President
    
					

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
WhiteHorse X, Ltd.
    
	
 
    	
 
    
	
 
    	
By: H.I.G. WhiteHorse   Capital, LLC
    
	
 
    	
As: Collateral Manager
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ethan Underwood
    
	
 
    	
 
    	
Name: Ethan Underwood
    
	
 
    	
 
    	
Title: Manager
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
BlueMountain CLO 2014-4   Ltd
    
	
 
    	
BY: BlueMountain   Capital Management
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Meghan Fornshell
    
	
 
    	
 
    	
Name: Meghan Fornshell
    
	
 
    	
 
    	
Title: Operations   Analyst
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
GLG Ore Hill CLO   2013-1, LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steve Kalin
    
	
 
    	
 
    	
Name: Steve Kalin
    
	
 
    	
 
    	
Title: Managing   Director
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Silvermore CLO LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steve Kalin
    
	
 
    	
 
    	
Name: Steve Kalin
    
	
 
    	
 
    	
Title: Managing   Director
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Silver Spring CLO LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steve Kalin
    
	
 
    	
 
    	
Name: Steve Kalin
    
	
 
    	
 
    	
Title: Managing   Director
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
ECP CLO   2015-7, LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steve Kalin
    
	
 
    	
 
    	
Name: Steve Kalin
    
	
 
    	
 
    	
Title: Managing   Director
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
ECP CLO   2014-6, LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steve Kalin
    
	
 
    	
 
    	
Name: Steve Kalin
    
	
 
    	
 
    	
Title: Managing   Director
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
ECP CLO   2013-5, LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steve Kalin
    
	
 
    	
 
    	
Name: Steve Kalin
    
	
 
    	
 
    	
Title: Managing   Director
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
DoubleLine Capital LP   as Collateral Manager
    
	
 
    	
to: Parallel   2015-1, Ltd.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Oi Jong Martel
    
	
 
    	
 
    	
Name: Oi Jong Martel
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
DoubleLine Capital LP   as Investment Advisor
    
	
 
    	
to: DoubleLine Income   Solutions Fund
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Oi Jong Martel
    
	
 
    	
 
    	
Name: Oi Jong Martel
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
DoubleLine Capital LP   as Investment Advisor
    
	
 
    	
to: DoubleLine Income   Solutions Trust
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Oi Jong Martel
    
	
 
    	
 
    	
Name: Oi Jong Martel
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
TICP CLO III, LTD.
    
	
 
    	
By: TICP CLO III   Management, LLC
    
	
 
    	
Its Collateral Manager,
    
	
 
    	
as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Daniel Wanek
    
	
 
    	
 
    	
Name: Daniel Wanek
    
	
 
    	
 
    	
Title: Vice President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Wells Fargo Principal   Lending, LLC, as a
    
	
 
    	
Lender
    
	
  
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian Schelter
    
	
 
    	
 
    	
Name: Brian Schelter
    
	
 
    	
 
    	
Title: Vice President
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
ICG US CLO   2014-1, Ltd.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Seth Katzenstein
    
	
 
    	
 
    	
Name: Seth Katzenstein
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
ICG US CLO 2014-2, Ltd.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Seth Katzenstein
    
	
 
    	
 
    	
Name: Seth Katzenstein
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
ICG US CLO   2014-3, Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Seth Katzenstein
    
	
 
    	
 
    	
Name: Seth Katzenstein
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
ICG US CLO 2015-1, Ltd
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Seth Katzenstein
    
	
 
    	
 
    	
Name: Seth Katzenstein
    
	
 
    	
 
    	
Title: Authorized   Signatory
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

	
 
    	
Lockwood Grove   CLO, Ltd.
    
	
 
    	
By: Tall Tree   Investment Management, LLC
    
	
 
    	
as Collateral Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael J. Starshak   Jr.
    
	
 
    	
 
    	
Name: Michael J.   Starshak Jr.
    
	
 
    	
 
    	
Title: Officer
    

 

[Signature Page to Term Loan Joinder Agreement and Amendment]

 

 

Schedule I

 

INCREMENTAL TERM LOAN COMMITMENTS

 

	
Incremental Lender
    	
 
    	
Incremental Term Loan Commitment
    	
 
    
	
JPMorgan Chase   Bank, N.A.
    	
 
    	
$
    	
130,000,000
    	
 
    
	
Total
    	
 
    	
$
    	
130,000,000Converted by EDGARwiz

THE EXCHANGE CONTEMPLATED HEREIN IS INTENDED TO COMPORT WITH THE REQUIREMENTS OF SECTION 3(a)(9) OF THE SECURITIES ACT OF 1933, AS AMENDED.

Exchange Agreement

THIS EXCHANGE AGREEMENT (this “Agreement”) is executed as of July 15, 2016 by and between Vapor Hub International Inc., a Nevada corporation (the “Company”), and Iliad Research and Trading, L.P., a Utah limited partnership, its successors and/or assigns (“Holder”). Capitalized terms not defined herein shall have the same meaning as set forth in the Original Note (as defined below).

A.

Pursuant to that certain Note Purchase Agreement dated August 12, 2015 between Holder and the Company (the “Purchase Agreement”), the Company issued to Holder a certain Promissory Note in the original principal amount of $245,000.00 and having an original issue date of August 12, 2015 (the “Original Note”). 

B.

On May 12, 2016, Holder and Company exchanged the Original Note for a new Promissory Note in the original principal amount $272,250.00 and having an original issue date of August 12, 2015 (the “First Exchange Note”).  

Subject to the terms of this Agreement, Holder and the Company desire to exchange (such exchange is referred to as the “Note Exchange”) the First Exchange Note for a new Promissory Note in the original principal amount of $81,631.88 and substantially in the form attached hereto as Exhibit A (the “Second Exchange Note”). The Note Exchange will consist of Holder surrendering the First Exchange Note in return for the Second Exchange Note. Other than the surrender of the First Exchange Note, no consideration of any kind whatsoever shall be given by Holder to the Company in connection with this Agreement.  

C.

Pursuant to the terms and conditions hereof, Holder and the Company agree to exchange the First Exchange Note for the Second Exchange Note.

NOW, THEREFORE, in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties and covenants herein contained, the parties hereto agree as follows:

1.

Issuance of Second Exchange Note. Upon execution of this Agreement, Holder will surrender the First Exchange Note to the Company and the Company will issue to Holder the Second Exchange Note. In conjunction therewith, the Company hereby confirms that the First Exchange Note represents the Company’s unconditional obligation to pay the outstanding balance of such note pursuant to the terms of the First Exchange Note. The Company and Holder agree that upon surrender, the First Exchange Note will be cancelled and the remaining amount owed to Holder in consideration of the Note Exchange shall hereafter be evidenced solely by the Second Exchange Note.

2.

Exchange Fee; Affirmation of Outstanding Balance. The Company acknowledges that the Outstanding Balance (as defined in the Second Exchange Note) of the Second Exchange Note includes an exchange fee in the amount of $2,500.00 (the “Exchange Fee”), which sum was added to the Outstanding Balance of the Second Exchange Note in consideration of the accommodations granted to the Company and the legal and other fees incurred by Holder in connection with the Note Exchange. Holder and the Company acknowledge and agree that the Outstanding Balance of the Second Exchange Note upon its issuance, including the application of the Exchange Fee, is $81,631.88. 

3.

Closing Date; Deliveries. The closing of the transaction contemplated hereby (the “Closing”) along with the delivery of the First Exchange Note and the other Exchange Documents (as defined below) shall occur on the date that is mutually agreed to by the Company and Holder (the “Closing Date”) by means of the exchange by express courier and email of .pdf documents, but shall be deemed to have occurred at the offices of Hansen Black Anderson Ashcraft PLLC in Lehi, Utah. On the Closing Date, prior to or contemporaneously with the execution and delivery of this Agreement, the following events shall occur: 

3.1.

The Company shall execute and deliver to Holder the Secretary’s Certificate substantially in the form attached hereto as Exhibit B (the “Secretary’s Certificate”).

3.2.

The Company shall issue the Second Exchange Note to Holder.

3.3.

Mutual delivery of all other Exchange Documents, including without limitation this Agreement.

3.4.

Holder shall deliver the First Exchange Note to the Company for cancellation. 

3.5.

Company shall have delivered to Holder a fully executed Irrevocable Letter of Instructions to Transfer Agent substantially in the form attached hereto as Exhibit C (the “TA Letter”) acknowledged and agreed to in writing by Company’s transfer agent (the “Transfer Agent”).

3.6.

Company shall have delivered to Holder a fully executed Share Issuance Resolution to be delivered to the Transfer Agent substantially in the form attached hereto as Exhibit D.

4.

Holding Period, Tacking and Legal Opinion. The Company represents, warrants and agrees that for the purposes of Rule 144 (“Rule 144”) of the Securities Act of 1933, as amended (the “Securities Act”), the holding period of the Second Exchange Note will include the holding period of the Original Note and the First Exchange Note from August 12, 2015, which date is the date that the Original Note was issued. The Company agrees not to take a position contrary to this Section 4 in any document, statement, setting, or situation and further acknowledges that the First Exchange Note has not been amended or altered since such date. The Company represents that it has ceased to be an issuer described in Rule 144(i)(1)(i). The Second Exchange Note is being issued in substitution of and exchange for and not in satisfaction of the First Exchange Note. The Second Exchange Note shall not constitute a novation or satisfaction and accord of the First Exchange Note. The Company acknowledges and understands that the representations and agreements of the Company in this Section 4 are a material inducement to Holder’s decision to consummate the transactions contemplated herein.

5.

Representations, Warranties and Covenants of Holder. Holder represents, warrants, and covenants to the Company that:

5.1.

Investment Purpose. Holder is acquiring the Second Exchange Note for its own account for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the Securities Act; provided, however, that by making the representations herein, Holder reserves the right to dispose of any Conversion Shares (as defined in the Second Exchange Note) (together with the Second Exchange Note, the “Securities”) issued thereunder at any time in accordance with or pursuant to an effective registration statement covering such Conversion Shares or an available exemption under the Securities Act.  

5.2.

Accredited Investor Status. Holder is an “Accredited Investor” as that term is defined in Rule 501(a)(3) of Regulation D of the Securities Act.

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5.3.

Authorization, Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of Holder and is a valid and binding agreement of Holder enforceable in accordance with its terms.

5.4.

Brokers. There are no brokerage commissions, finder’s fees or similar fees or commissions payable by Holder in connection with the transactions contemplated hereby based on any agreement, arrangement or understanding with Holder or any action taken by Holder.

6.

Representations, Warranties, and Covenants of the Company. The Company hereby makes the representations set forth below and covenants and agrees as follows to Holder (in addition to those set forth elsewhere herein):

6.1.

Organization and Qualification. The Company has been duly organized, validly exists and is in good standing under the laws of the State of Nevada.  The Company has full corporate power and authority to enter into this Agreement and this Agreement has been duly and validly authorized, executed and delivered by the Company and is a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforcement may be limited by the United States Bankruptcy Code and laws effecting creditors’ rights, generally. 

6.2.

Authorization, Enforcement, Compliance with Other Instruments. (i) The Company has the requisite corporate power and authority to enter into and perform its obligations under this Agreement, the Second Exchange Note, and each of the other Exchange Documents and to issue the Securities in accordance with the terms hereof, (ii) the execution and delivery of the Exchange Documents by the Company and the consummation by the Company of the transactions contemplated hereby, including, without limitation, the issuance of the Securities, have been duly authorized by the Company’s Board of Directors and no further consent or authorization is required by the Company, its Board of Directors or its stockholders, (iii) the Exchange Documents have been duly executed and delivered by the Company, (iv) the Exchange Documents constitute the valid and binding obligations of the Company enforceable against the Company in accordance with its terms, except as such enforcement may be limited by the United States Bankruptcy Code and laws effecting creditors’ rights, generally, and (v) the Company’s signatory has full corporate or other requisite authority to execute the Exchange Documents and to bind the Company. The Company’s Board of Directors has duly adopted a resolution authorizing this Agreement and ratifying its terms, as indicated by the Secretary’s Certificate.

6.3.

Issuance of Securities. The issuance of the Securities is duly authorized and the Securities are and will be, upon issuance, free and clear of all taxes, liens, claims, pledges, mortgages, restrictions, obligations, security interests and encumbrances of any kind, nature and description other than liens in favor of Holder, and when issued will be validly issued, fully paid and non-assessable.

6.4.

No Conflicts. The execution and delivery by the Company of, and the performance by the Company of its obligations under this Agreement in accordance with the terms of this Agreement will not contravene any provision of applicable law or the charter documents of the Company or any agreement or other instrument binding upon the Company, or any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Company, and no consent, approval, authorization or order of, or qualification with, any governmental body or agency is required for the performance by the Company of its obligations under this Agreement in accordance with the terms of this Agreement.

6.5.

SEC Documents: Financial Statements. None of the Company’s filings (“SEC Documents”) filed with the SEC contained, at the time they were filed, any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements 

3

made therein, in light of the circumstances under which they were made, not misleading. Since August 12, 2015, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  

6.6.

Brokers. The Company has taken no action which would give rise to any claim by any person for a brokerage commission, placement agent or finder’s fees or similar payments by Holder relating to this Agreement or the transactions contemplated hereby.  The Company shall indemnify and hold harmless each of Holder, its employees, officers, directors, stockholders, managers, members, agents, attorneys, and partners, and their respective affiliates, from and against all claims, losses, damages, costs (including the costs of preparation and attorneys’ fees) and expenses suffered in respect of any such claimed or existing fees.

6.7.

Authorization and Issuance.  The First Exchange Note and the Original Note were authorized by all necessary company action and validly issued and executed, and the Company’s signatory had full corporate or other requisite authority to execute such agreements and to bind the Company.

6.8.

Holding Period. After due inquiry, the Company represents and warrants that at all times, the Company has complied in all material respects with all applicable securities and other applicable laws in relation with the issuance, holding and transfers of the Original Note and the First Exchange Note. To the Company’s knowledge, no violation of securities and other applicable laws occurred in connection with the acquisition, issuance, or holding of the Original Note and the First Exchange Note.

6.9.

No Modifications. No written document, agreement, instrument, contract, amendment or modification to the First Exchange Note exists that supplements, modifies, or amends the terms set forth in the First Exchange Note.

6.10.

Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending against or affecting the Company, the Common Stock or any of the Company’s subsidiaries, wherein an unfavorable decision, ruling or finding would have a material adverse effect on the Company or its operations.

6.11.

No Additional Consideration. The Company has not received any cash or property consideration in any form whatsoever for entering into this Agreement, other than the surrender of the First Exchange Note.

6.12.

Recitals.  All of the information, facts and representations set forth in the Recitals section of this Agreement are in all respects true and accurate as of the date hereof and are incorporated as representations and warranties of the Company as if set forth in this Section 6.

6.13.

Issuer Status. Until the full repayment of the Second Exchange Note, the Company shall not terminate its status as an issuer required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would otherwise permit such termination.

6.14.

Acknowledgement of Obligations. The Company hereby acknowledges, confirms and agrees that the obligations of the Company to Holder under the Second Exchange Note are unconditionally owed by the Company to Holder without offset, defense or counterclaim of any kind, nature or description whatsoever.

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6.15.

Termination. The Purchase Agreement and all other Transaction Documents (as defined in the Purchase Agreement) are hereby terminated with respect to the First Exchange Note, but remain in full force and effect with respect to the Second Exchange Note. All references in the Transaction Documents to the First Exchange Note shall hereafter be deemed to be references to the Second Exchange Note.      

7.

Deliverables; Exchange Documents. Together with its execution of this Agreement, the Company shall execute and deliver the Secretary’s Certificate, the TA Letter and the Share Issuance Resolution. This Agreement, the Secretary’s Certificate, the Second Exchange Note, the TA Letter, the Share Issuance Resolution and any other documents, agreements, or instruments entered into or delivered in connection with this Agreement, or any amendments to any of the foregoing, are collectively referred to as the “Exchange Documents”. For the avoidance of doubt, all of the Transaction Documents entered into by the parties in connection with the Purchase Agreement (other than the First Exchange Note) shall continue to apply to the Second Exchange Note as if the Second Exchange Note was issued concurrently therewith.

8.

Reservation of Shares. At all times during which the Second Exchange Note is outstanding, Company will reserve from its authorized and unissued Common Stock to provide for the issuance of Common Stock upon the full conversion of the Second Exchange Note at least (i) three (3) times the number of shares of Common Stock obtained by dividing the Outstanding Balance by the Conversion Price (as defined in the Second Exchange Note) (the “Share Reserve”), but in any event not less than 100,000,000 shares of Common Stock shall be reserved at all times for such purpose (the “Transfer Agent Reserve”). Company further agrees that it will cause the Transfer Agent to immediately add shares of Common Stock to the Transfer Agent Reserve in increments of 10,000,000 shares as and when requested by Holder in writing from time to time, provided that such incremental increases do not cause the Transfer Agent Reserve to exceed the Share Reserve. In furtherance thereof, from and after the date hereof and until such time that the Second Exchange Note has been paid in full, Company shall require the Transfer Agent to reserve for the purpose of issuance of Conversion Shares under the Second Exchange Note, a number of shares of Common Stock equal to the Transfer Agent Reserve. Company shall further require the Transfer Agent to hold such shares of Common Stock exclusively for the benefit of Holder and to issue such shares to Holder promptly upon Holder’s delivery of a conversion notice under the Second Exchange Note. Finally, Company shall require the Transfer Agent to issue shares of Common Stock pursuant to the Second Exchange Note to Holder out of its authorized and unissued shares, and not the Transfer Agent Reserve, to the extent shares of Common Stock have been authorized, but not issued, and are not included in the Transfer Agent Reserve. The Transfer Agent shall only issue shares out of the Transfer Agent Reserve to the extent there are no other authorized shares available for issuance and then only with Holder’s written consent.

9.

Releases and Waivers. 

9.1.

Upon the full repayment of the Second Exchange Note (referred to as “Payment in Full”), Holder will release and forever discharge the Company of and from any and all manner of actions, suits, debts, sums of money, contracts, agreements, claims and demands at law or in equity, that Holder had, or may have arising from the First Exchange Note.

9.2.

The Company hereby affirms that the obligations under the Second Exchange Note and as set forth herein are valid and binding obligations of the Company, and hereby waives, to the fullest extent allowable under law, any and all defenses that may be available to a debtor under applicable state and federal law including, without limiting the foregoing, any and all defenses available to a debtor or maker under the provisions of the Uniform Commercial Code pertaining to negotiable instruments.

5

9.3.

Upon execution of this Agreement, the Company releases and forever discharges Holder of and from any and all manner of actions, suits, debts, sums of money, contracts, agreements, claims and demands at law or in equity, that the Company had, or may have arising from the First Exchange Note.

10.

Miscellaneous. The provisions set forth in this Section 10 shall apply to this Agreement, as well as all other Exchange Documents as if these terms were fully set forth therein.

10.1.

Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Utah without regard to the principles of conflict of laws. Each party consents to and expressly agrees that the exclusive venue for arbitration of any dispute arising out of or relating to this Agreement or the relationship of the parties or their affiliates shall be in Salt Lake County, Utah. Without modifying the parties’ obligations to resolve disputes hereunder pursuant to the Arbitration Provisions (as defined in the Purchase Agreement), each party hereto submits to the exclusive jurisdiction of any state or federal court sitting in Salt Lake County, Utah in any proceeding arising out of or relating to this Agreement and agrees that all Claims (as defined in the Arbitration Provisions) in respect of the proceeding may only be heard and determined in any such court and hereby expressly submits to the exclusive personal jurisdiction and venue of such court for the purposes hereof and expressly waives any claim of improper venue and any claim that such courts are an inconvenient forum. Each party hereto hereby irrevocably consents to the service of process of any of the aforementioned courts in any such proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to its address as set forth in the Purchase Agreement, such service to become effective ten (10) days after such mailing.

10.2.

Arbitration of Claims. Each party agrees that any dispute arising out of or relating to this Agreement or any other Exchange Document shall be subject to the Arbitration Provisions. 

10.3.

Successors and Assigns; Third Party Beneficiaries. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties hereto. Except as otherwise expressly provided herein, no person other than the parties hereto and their successors and permitted assigns is intended to be a beneficiary of this Agreement. 

10.4.

Pronouns.  All pronouns and any variations thereof in this Agreement refer to the masculine, feminine or neuter, singular or plural, as the context may permit or require.

10.5.

Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. The parties hereto confirm that any electronic copy of another party’s executed counterpart of this Agreement (or its signature page thereof) will be deemed to be an executed original thereof.

10.6.

Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

10.7.

Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such provision shall be modified to achieve the objective of the parties to the fullest extent permitted and such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement or the validity or enforceability of this Agreement in any other jurisdiction.

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10.8.

Entire Agreement. This Agreement, together with the Second Exchange Note, the other Exchange Documents, and the Transaction Documents, constitutes and contains the entire agreement between the parties hereto, and supersedes all prior oral or written agreements and understandings between Holder, the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor Holder makes any representation, warranty, covenant or undertaking with respect to such matters.

10.9.

No Reliance. The Company acknowledges and agrees that neither Holder nor any of its officers, directors, members, managers, representatives or agents has made any representations or warranties to the Company or any of its officers, directors, stockholders, agents, representatives, or employees except as expressly set forth in the Exchange Documents and, in making its decision to enter into the transactions contemplated by the Exchange Documents, the Company is not relying on any representation, warranty, covenant or promise of Holder or its officers, directors, members, managers, agents or representatives other than as set forth in the Exchange Documents.

10.10.

Amendment. Any amendment, supplement or modification of or to any provision of this Agreement, shall be effective only if it is made or given by an instrument in writing (excluding any email message) and signed by the Company and Holder.

10.11.

No Waiver. No forbearance, failure or delay on the part of a party hereto in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. Any waiver of any provision of this Agreement shall be effective (a) only if it is made or given in writing (including an email message) and (b) only in the specific instance and for the specific purpose for which made or given.

10.12.

Assignment. Notwithstanding anything to the contrary herein, the rights, interests or obligations of the Company hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of Holder, which consent may be withheld at the sole discretion of Holder; provided, however, that in the case of a merger, sale of substantially all of the Company’s assets or other corporate reorganization, Holder shall not unreasonably withhold, condition or delay such consent. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed by Holder hereunder may be assigned by Holder to a third party, including its financing sources, in whole or in part.

10.13.

Advice of Counsel. In connection with the preparation of this Agreement and all other Exchange Documents, each of the Company, its stockholders, officers, agents, and representatives acknowledges and agrees that the attorney that prepared this Agreement and all of the other Exchange Documents acted as legal counsel to Holder only.  Each of the Company, its stockholders, officers, agents, and representatives (a) hereby acknowledges that he/she/it has been, and hereby is, advised to seek legal counsel and to review this Agreement and all of the other Exchange Documents with legal counsel of his/her/its choice, and (b) either has sought such legal counsel or hereby waives the right to do so.  

10.14.

No Strict Construction. The language used in this Agreement is the language chosen mutually by the parties hereto and no doctrine of construction shall be applied for or against any party.

10.15.

Attorneys’ Fees.  In the event of any action at law or in equity to enforce or interpret the terms of this Agreement or any of the other Exchange Documents, the parties agree that the 

7

party who is awarded the most money (which, for the avoidance of doubt, shall be determined without regard to any statutory fines, penalties, fees, or other charges awarded to any party) shall be deemed the prevailing party for all purposes and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses paid by such prevailing party in connection with the litigation and/or dispute without reduction or apportionment based upon the individual claims or defenses giving rise to the fees and expenses.  Nothing herein shall restrict or impair a court’s power to award fees and expenses for frivolous or bad faith pleading. 

10.16.

Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT, ANY OTHER EXCHANGE DOCUMENT, OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY.  THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING ITS RIGHT TO DEMAND TRIAL BY JURY.

10.17.

Further Assurances. Each party shall do and perform or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

10.18.

Notices. Unless otherwise specifically provided for herein, all notices, demands or requests required or permitted under this Agreement to be given to the Company or Holder shall be given as set forth in the “Notices” section of the Purchase Agreement. 

10.19.

Survival of Representations and Warranties. All of the representations and warranties made herein shall survive the execution and delivery of this Agreement for the maximum time allowable by applicable law.

10.20.

Transaction Fees. Each party shall be responsible for its own attorneys’ fees and other costs and expenses associated with documenting and closing the transaction contemplated by this Agreement.

10.21.

Specific Performance. The Company and Holder acknowledge and agree that irreparable damage would occur in the event that any provision of this Agreement or any of the other Exchange Documents were not performed in accordance with its specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions, without (except as specified in the Arbitration Provisions) the necessity to post a bond, to prevent or cure breaches of the provisions of this Agreement or such other Exchange Document and to enforce specifically the terms and provisions hereof or thereof, this being in addition to any other remedy to which any of them may be entitled by law or equity. 

10.22.

Time is of the Essence. Time is expressly made of the essence of each and every provision of this Agreement and the Exchange Documents.

10.23.

Voluntary Agreement. The Company has carefully read this Agreement and each of the other Exchange Documents and has asked any questions needed for the Company to understand the terms, consequences and binding effect of this Agreement and each of the other Exchange Documents and 

8

fully understand them. The Company has had the opportunity to seek the advice of an attorney of the Company’s choosing, or has waived the right to do so, and is executing this Agreement and each of the other Exchange Documents voluntarily and without any duress or undue influence by Holder or anyone else.

[Remainder of the page intentionally left blank; signature page to follow]

9

IN WITNESS WHEREOF, each of the undersigned represents that the foregoing statements made by it above are true and correct and that it has caused this Exchange Agreement to be duly executed on its behalf (if an entity, by one of its officers thereunto duly authorized) as of the date first above written.

HOLDER:

ILIAD RESEARCH AND TRADING, L.P.

By: Iliad Management, LLC, its General Partner

By: Fife Trading, Inc., its Manager

       By: /s/ John M. Fife

       John M. Fife, President

COMPANY:

VAPOR HUB INTERNATIONAL INC.

By:

 /s/ Lori Winther

Name: 

Lori Winther

Title: 

Chief Financial Officer

ATTACHMENTS:

Exhibit A

Second Exchange Note

Exhibit B

Secretary’s Certificate

Exhibit C

TA Letter

Exhibit D

Share Issuance Resolution

[Signature Page to Exchange Agreement]

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