Document:

Exhibit

Exhibit 10.1
Execution Version

Published CUSIP Number:    
Revolving Credit CUSIP Number:    

$400,000,000

CREDIT AGREEMENT 
 
dated as of September 30, 2019,

by and among

TYLER TECHNOLOGIES, INC., 
as Borrower,

the Lenders referred to herein, 
as Lenders,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Administrative Agent, 
Swingline Lender and Issuing Lender

PNC BANK, NATIONAL ASSOCIATION 
and
SUNTRUST BANK,
as Co-Syndication Agents

and 

CITIZENS BANK, NATIONAL ASSOCIATION,
REGIONS BANK 
and
MUFG UNION BANK, N.A.,
as Co-Documentation Agents

WELLS FARGO SECURITIES, LLC, 
PNC CAPITAL MARKETS LLC,
and
SUNTRUST ROBINSON HUMPHREY, INC.,  
as Joint Lead Arrangers and Joint Bookrunners

TABLE OF CONTENTS
Page

	
					
	ARTICLE I    DEFINITIONS
	1
	

	 
	SECTION 1.1
	Definitions
	1
	

	 
	SECTION 1.2
	Other Definition and Provision
	31
	

	 
	SECTION 1.3
	Accounting Terms
	32
	

	 
	SECTION 1.4
	UCC Terms
	32
	

	 
	SECTION 1.5
	Rounding
	32
	

	 
	SECTION 1.6
	References to Agreement and Laws
	32
	

	 
	SECTION 1.7
	Times of Day
	33
	

	 
	SECTION 1.8
	Letter of Credit Amounts
	33
	

	 
	SECTION 1.9
	Guarantees/Earn-outs
	33
	

	 
	SECTION 1.10
	Covenant Compliance Generally
	33
	

	 
	SECTION 1.11
	Limited Condition Acquisitions
	33
	

	 
	SECTION 1.12
	Rates
	35
	

	 
	SECTION 1.13
	Divisions
	35
	

	ARTICLE II    REVOLVING CREDIT FACILITY
	35
	

	 
	SECTION 2.1
	Revolving Credit Loans
	35
	

	 
	SECTION 2.2
	Swingline Loans
	35
	

	 
	SECTION 2.3
	Procedure for Advances of Revolving Credit Loans and Swingline Loans
	37
	

	 
	SECTION 2.4
	Repayment and Prepayment of Revolving Credit and Swingline Loans
	38
	

	 
	SECTION 2.5
	Permanent Reduction of the Revolving Credit Commitment
	39
	

	 
	SECTION 2.6
	Termination of Revolving Credit Facility
	40
	

	ARTICLE III    LETTER OF CREDIT FACILITY
	40
	

	 
	SECTION 3.1
	L/C Facility 
	40
	

	 
	SECTION 3.2
	Procedure for Issuance of Letters of Credit
	41
	

	 
	SECTION 3.3
	Commissions and Other Charges
	41
	

	 
	SECTION 3.4
	L/C Participations 
	42
	

	 
	SECTION 3.5
	Reimbursement Obligation of the Borrower
	43
	

	 
	SECTION 3.6
	Obligations Absolute
	43
	

	 
	SECTION 3.7
	Effect of Letter of Credit Application
	44
	

	 
	SECTION 3.8
	Letters Credit Issued for Subsidiaries
	44
	

	ARTICLE IV    INCREMENTAL LOANS
	44
	

	 
	SECTION 4.1
	Incremental Loans
	44
	

	ARTICLE V    GENERAL LOAN PROVISIONS
	47
	

	 
	SECTION 5.1
	Interest
	47
	

	 
	SECTION 5.2
	Notice and Manner of Conversion or Continuation of Loans
	48
	

	 
	SECTION 5.3
	Fees
	49
	

	 
	SECTION 5.4
	Manner of Payment
	49
	

	 
	SECTION 5.5
	Evidence of Indebtedness
	50
	

	 
	SECTION 5.6
	Sharing of Payments by Lenders
	50
	

	 
	SECTION 5.7
	Administrative Agent's Clawback
	51
	

	 
	SECTION 5.8
	Changed Circumstances
	52
	

	 
	SECTION 5.9
	Indemnity 
	54
	

i

TABLE OF CONTENTS
(continued)
Page

	
					
	 
	SECTION 5.10
	Increased Cost
	54
	

	 
	SECTION 5.11
	Taxes 
	55
	

	 
	SECTION 5.12
	Mitigation Obligations; Replacement of Lenders 
	59
	

	 
	SECTION 5.13
	Cash Collateral
	60
	

	 
	SECTION 5.14
	Defaulting Lenders
	61
	

	ARTICLE VI    CONDITIONS OF CLOSING AND BORROWING
	63
	

	 
	SECTION 6.1
	Conditions to Closing and Initial Extensions of Credit
	63
	

	 
	SECTION 6.2
	Conditions to All Extension of Credit
	66
	

	ARTICLE VII    REPRESENTATIONS AND WARRANTIES OF THE CREDIT PARTIES
	67
	

	 
	SECTION 7.1
	Organization; Power; Qualification
	67
	

	 
	SECTION 7.2
	Ownership
	67
	

	 
	SECTION 7.3
	Authorization; Enforceability 
	67
	

	 
	SECTION 7.4
	Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc
	68
	

	 
	SECTION 7.5
	Compliance with Law; Governmental Approvals
	68
	

	 
	SECTION 7.6
	Tax Returns and Payments
	68
	

	 
	SECTION 7.7
	Intellectual Property Matters
	69
	

	 
	SECTION 7.8
	Environmental Matters
	69
	

	 
	SECTION 7.9
	Employee Benefit Matters
	70
	

	 
	SECTION 7.10
	Margin Stock 
	71
	

	 
	SECTION 7.11
	Government Regulation
	71
	

	 
	SECTION 7.12
	Employee Relations
	71
	

	 
	SECTION 7.13
	Burdensome Provisions
	71
	

	 
	SECTION 7.14
	Financial Statements
	71
	

	 
	SECTION 7.15
	No Material Adverse Change
	72
	

	 
	SECTION 7.16
	Solvency
	72
	

	 
	SECTION 7.17
	Title of Properties
	72
	

	 
	SECTION 7.18
	Litigation 
	72
	

	 
	SECTION 7.19
	Insurance
	72
	

	 
	SECTION 7.20
	Anti-Corruption laws; Anti-Money Laundering Laws; and Sanctions
	72
	

	 
	SECTION 7.21
	Absence of Defaults
	73
	

	 
	SECTION 7.22
	Senior Indebtedness Status
	73
	

	 
	SECTION 7.23
	Disclosures
	73
	

	ARTICLE VIII    AFFIRMATIVE COVENANTS
	74
	

	 
	SECTION 8.1
	Financial Statements and Budgets
	74
	

	 
	SECTION 8.2
	Certificates; Other Reports
	75
	

	 
	SECTION 8.3
	Notice of Litigation and Other Matters
	77
	

	 
	SECTION 8.4
	Preservation of Corporate Existence and Related Matters
	77
	

	 
	SECTION 8.5
	Maintenance of Property and Licenses
	78
	

	 
	SECTION 8.6
	Insurance
	78
	

	 
	SECTION 8.7
	Accounting Methods and Financial Records
	78
	

	 
	SECTION 8.8
	Payment of Taxes and Other Obligations
	78
	

	 
	SECTION 8.9
	Compliance with LAws and Approvals
	78
	

ii

TABLE OF CONTENTS
(continued)
Page

	
					
	 
	SECTION 8.10
	Environmental Laws
	78
	

	 
	SECTION 8.11
	Compliance with ERISA
	79
	

	 
	SECTION 8.12
	Visits and Inspections
	79
	

	 
	SECTION 8.13
	Additional Subsidiaries
	79
	

	 
	SECTION 8.14
	Use of Proceeds 
	80
	

	 
	SECTION 8.15
	Compliance with Anti-Corruption Laws and Sanctions 
	80
	

	 
	SECTION 8.16
	Corporate Governance
	80
	

	 
	SECTION 8.17
	Further Assurance 
	81
	

	ARTICLE IX    NEGATIVE COVENANTS
	81
	

	 
	SECTION 9.1
	Indebtedness 
	81
	

	 
	SECTION 9.2
	Liens
	83
	

	 
	SECTION 9.3
	Investments
	85
	

	 
	SECTION 9.4
	Fundamental Changes
	86
	

	 
	SECTION 9.5
	Asset Dispositions 
	87
	

	 
	SECTION 9.6
	Restricted Payments
	88
	

	 
	SECTION 9.7
	Transactions with Affiliates
	88
	

	 
	SECTION 9.8
	Accounts Changes; Organizational Documents
	89
	

	 
	SECTION 9.9
	Payments and Modifications of Subordinated Indebtedness 
	89
	

	 
	SECTION 9.10
	No Further Negative Pledges; Restrictive Agreements
	89
	

	 
	SECTION 9.11
	Nature of Business
	90
	

	 
	SECTION 9.12
	Sale Leasebacks
	90
	

	 
	SECTION 9.13
	Financial Covenants 
	90
	

	 
	SECTION 9.14
	Disposal of Subsidiary Interests 
	91
	

	ARTICLE X    DEFAULT AND REMEDIES
	91
	

	 
	SECTION 10.1
	Events of Default
	91
	

	 
	SECTION 10.2
	Remedies
	93
	

	 
	SECTION 10.3
	Rights and Remedies Cumulative; Non-Waiver; etc
	93
	

	 
	SECTION 10.4
	Crediting of Payments and Proceeds
	94
	

	 
	SECTION 10.5
	Administrative Agent May File Proofs of Claim
	95
	

	ARTICLE XI    THE ADMINISTRATIVE AGENT
	95
	

	 
	SECTION 11.1
	Appointment and Authority
	95
	

	 
	SECTION 11.2
	Rights as a Lender
	96
	

	 
	SECTION 11.3
	Exculpatory Provisions
	96
	

	 
	SECTION 11.4
	Reliance by the Administrative Agent
	97
	

	 
	SECTION 11.5
	Delegation of Duties
	97
	

	 
	SECTION 11.6
	Resignation of Administrative Agent
	97
	

	 
	SECTION 11.7
	Non-Reliance on Administrative Agent and Other Lenders
	99
	

	 
	SECTION 11.8
	No Other Duties, Etc
	99
	

	 
	SECTION 11.9
	Guaranty Matters
	99
	

	 
	SECTION 11.10
	Guaranteed Hedge Agreements and Guaranteed Cash Management Agreements
	99
	

	ARTICLE XII    MISCELLANEOUS
	99
	

	 
	SECTION 12.1
	Notices
	99
	

iii

TABLE OF CONTENTS
(continued)
Page

	
					
	 
	SECTION 12.2
	Amendments, Waivers and Consents
	102
	

	 
	SECTION 12.3
	Expenses; Indemnity
	104
	

	 
	SECTION 12.4
	Right of Setoff
	105
	

	 
	SECTION 12.5
	Governing Law; Jurisdiction, Etc
	106
	

	 
	SECTION 12.6
	Waiver of Jury Trial
	107
	

	 
	SECTION 12.7
	Reversal of Payments
	107
	

	 
	SECTION 12.8
	Injunctive Relief
	107
	

	 
	SECTION 12.9
	Successors and Assigns; Participations
	107
	

	 
	SECTION 12.10
	Treatment of Certain Information; Confidentiality
	111
	

	 
	SECTION 12.11
	Performance of Duties
	112
	

	 
	SECTION 12.12
	All Powers Coupled with Interest
	112
	

	 
	SECTION 12.13
	Survival
	112
	

	 
	SECTION 12.14
	Titles and Captions
	113
	

	 
	SECTION 12.15
	Severability of Provisions
	113
	

	 
	SECTION 12.16
	Counterparts; Integration; Effectiveness; Electronic Execution
	113
	

	 
	SECTION 12.17
	Term of Agreement
	113
	

	 
	SECTION 12.18
	USA PATRIOT Act; Anti-Money Laundering Laws
	113
	

	 
	SECTION 12.19
	Independent Effect of Covenants
	114
	

	 
	SECTION 12.20
	No Advisory or Fiduciary Responsibility
	114
	

	 
	SECTION 12.21
	Inconsistencies with Other Documents
	115
	

	 
	SECTION 12.22
	Acknowledgement and Consent to Bail-In of EEA Financial Institutions
	115
	

	 
	SECTION 12.23
	Certain ERISA Matters
	115
	

	 
	SECTION 12.24
	Acknowledgement Regarding Any Supported QFCs
	116
	

iv

	
			
	EXHIBITS

	 
	 

	Exhibit A-1
	-
	Form of Revolving Credit Note

	Exhibit A-2
	-
	Form of Swingline Note

	Exhibit A-3
	-
	Form of Incremental Term Loan Note

	Exhibit B
	-
	Form of Notice of Borrowing

	Exhibit C
	-
	Form of Notice of Account Designation

	Exhibit D
	-
	Form of Notice of Prepayment

	Exhibit E
	-
	Form of Notice of Conversion/Continuation

	Exhibit F
	-
	Form of Officer’s Compliance Certificate

	Exhibit G
	-
	Form of Assignment and Assumption

	Exhibit H-1
	-
	Form of U.S. Tax Compliance Certificate (Non-Partnership Foreign Lenders)

	Exhibit H-2
	-
	Form of U.S. Tax Compliance Certificate (Non-Partnership Foreign Participants)

	Exhibit H-3
	-
	Form of U.S. Tax Compliance Certificate (Foreign Participant Partnerships)

	Exhibit H-4
	-
	Form of U.S. Tax Compliance Certificate (Foreign Lender Partnerships)

	

	SCHEDULES

	Schedule 1.1
	-
	Commitments and Commitment Percentages

	Schedule 7.1
	-
	Jurisdictions of Organization and Qualification and Subsidiary Guarantors

	Schedule 7.2
	-
	Subsidiaries and Capitalization

	Schedule 7.6
	-
	Tax Matters

	Schedule 7.9
	-
	ERISA Plans

	Schedule 7.12
	-
	Labor and Collective Bargaining Agreements

	Schedule 9.1
	-
	Existing Indebtedness

	Schedule 9.2
	-
	Existing Liens

	Schedule 9.3
	-
	Existing Loans, Advances and Investments

	Schedule 9.7
	-
	Transactions with Affiliates

v

CREDIT AGREEMENT, dated as of September 30, 2019, by and among TYLER TECHNOLOGIES, INC., a Delaware corporation, as Borrower, the lenders who are party to this Agreement and the lenders who may become a party to this Agreement pursuant to the terms hereof, as Lenders, and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative Agent for the Lenders.
STATEMENT OF PURPOSE
The Borrower has requested, and subject to the terms and conditions set forth in this Agreement, the Administrative Agent and the Lenders have agreed to extend, certain credit facilities to the Borrower.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, such parties hereby agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1    Definitions.  The following terms when used in this Agreement shall have the meanings assigned to them below:
“Acquisition” means any transaction, or any series of related transactions, consummated on or after the date of this Agreement, by which any Credit Party or any of its Subsidiaries (a) acquires any going business or all or substantially all of the assets of any Person, or division thereof, whether through purchase of assets, merger or otherwise or (b) directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes) of the securities of a corporation which have ordinary voting power for the election of directors (other than securities having such power only by reason of the happening of a contingency) or a majority (by percentage or voting power) of the outstanding ownership interests of a partnership or limited liability company. 
“Administrative Agent” means Wells Fargo, in its capacity as Administrative Agent hereunder, and any successor thereto appointed pursuant to Section 11.6.
“Administrative Agent’s Office” means the office of the Administrative Agent specified in or determined in accordance with the provisions of Section 12.1(c).
“Administrative Questionnaire” means an administrative questionnaire in a form supplied by the Administrative Agent.
“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.
“Agreement” means this Credit Agreement.
“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption, including, without limitation, the United States Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder.
“Anti-Money Laundering Laws” means any and all laws, statutes, regulations or obligatory government orders, decrees, ordinances or rules related to terrorism financing, money laundering, any 

predicate crime to money laundering or any financial record keeping, including any applicable provision of the Patriot Act and The Currency and Foreign Transactions Reporting Act (also known as the “Bank Secrecy Act,” 31 U.S.C. §§ 5311-5330 and 12 U.S.C. §§ 1818(s), 1820(b) and 1951-1959). 
“Applicable Law” means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders of Governmental Authorities and all orders and decrees of all courts and arbitrators.
“Applicable Margin” means the corresponding percentages per annum as set forth below based on the Consolidated Total Net Leverage Ratio:
	
					
	 
	 
	 
	Revolving Credit Loans

	Pricing Level
	Consolidated Total Net Leverage Ratio
	Commitment Fee
	LIBOR +
	Base Rate +

	I
	Less than to 1.00 to 1.00
	0.15%
	1.125%
	0.125%

	II
	Greater than or equal to 1.00 to 1.00, but less than 1.50 to 1.00
	0.20%
	1.25%
	0.25%

	III
	Greater than or equal to 1.50 to 1.00, but less than 3.00 to 1.00
	0.25%
	1.50%
	0.50%

	IV
	Greater than or equal to 3.00 to 1.00
	0.30%
	1.75%
	0.75%

	 
	 
	 
	 
	 

The Applicable Margin shall be determined and adjusted quarterly on the date five (5) Business Days after the day on which the Borrower provides an Officer’s Compliance Certificate pursuant to Section 8.2(a) for the most recently ended fiscal quarter of the Borrower (each such date, a “Calculation Date”); provided that (a) the Applicable Margin shall be based on Pricing Level I until the first Calculation Date occurring after the Closing Date and, thereafter the Pricing Level shall be determined by reference to the Consolidated Total Net Leverage Ratio as of the last day of the most recently ended fiscal quarter of the Borrower preceding the applicable Calculation Date, and (b) if the Borrower fails to provide an Officer’s Compliance Certificate when due as required by Section 8.2(a) for the most recently ended fiscal quarter of the Borrower preceding the applicable Calculation Date, the Applicable Margin from the date on which such Officer’s Compliance Certificate was required to have been delivered shall be based on Pricing Level IV until such time as such Officer’s Compliance Certificate is delivered, at which time the Pricing Level shall be determined by reference to the Consolidated Total Net Leverage Ratio as of the last day of the most recently ended fiscal quarter of the Borrower preceding such Calculation Date.  The applicable Pricing Level shall be effective from one Calculation Date until the next Calculation Date.  Any adjustment in the Pricing Level shall be applicable to all Extensions of Credit then existing or subsequently made or issued.
Notwithstanding the foregoing, in the event that any financial statement or Officer’s Compliance Certificate delivered pursuant to Section 8.1 or 8.2(a) is shown to be inaccurate (regardless of whether (i) this Agreement is in effect, (ii) any Commitments are in effect, or (iii) any Extension of Credit is outstanding when such inaccuracy is discovered or such financial statement or Officer’s Compliance Certificate was delivered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, then (A) the Borrower shall immediately deliver to the Administrative Agent a corrected Officer’s Compliance Certificate for such Applicable Period, (B) the Applicable Margin for such Applicable Period shall be determined as if 

2

the Consolidated Total Net Leverage Ratio in the corrected Officer’s Compliance Certificate were applicable for such Applicable Period, and (C) the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent the accrued additional interest and fees owing as a result of such increased Applicable Margin for such Applicable Period, which payment shall be promptly applied by the Administrative Agent in accordance with Section 5.4.  Nothing in this paragraph shall limit the rights of the Administrative Agent and Lenders with respect to Sections 5.1(b) and 10.2 nor any of their other rights under this Agreement or any other Loan Document.  The Borrower’s obligations under this paragraph shall survive the termination of the Commitments and the repayment of all other Obligations hereunder.
The Applicable Margin shall (a) with respect to any Revolving Extensions of Credit, be increased as, and to the extent, required by Section 4.1 and (b) with respect to any Incremental Term Loans, be determined pursuant to, and in accordance with, Section 4.1.
“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.
“Arrangers” means, collectively, Wells Fargo Securities, LLC, PNC Capital Markets LLC, and SunTrust Robinson Humphrey, Inc., each in its capacity as a joint lead arranger and joint bookrunner.
“Asset Disposition” means the sale, transfer, license, lease or other disposition of any Property (including any disposition of Equity Interests) by any Credit Party or any Subsidiary thereof (or the granting of any option or other right to do any of the foregoing).  The term “Asset Disposition” shall not include (a) the sale of inventory in the ordinary course of business, (b) the transfer of assets to the Borrower or any Subsidiary Guarantor pursuant to any other transaction permitted pursuant to Section 9.4, (c) the write-off, discount, sale or other disposition of defaulted or past-due receivables and similar obligations in the ordinary course of business and not undertaken as part of an accounts receivable financing transaction, (d) the disposition of any Hedge Agreement, (e) dispositions of Investments in cash and Cash Equivalents, (f) the transfer by any Credit Party of its assets to any other Credit Party, (g) the transfer by any Non-Guarantor Subsidiary of its assets to any Credit Party (provided that in connection with any new transfer, such Credit Party shall not pay more than an amount equal to the fair market value of such assets as determined in good faith at the time of such transfer) and (h) the transfer by any Non-Guarantor Subsidiary of its assets to any other Non-Guarantor Subsidiary. 
“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 12.9), and accepted by the Administrative Agent, in substantially the form attached as Exhibit G or any other form approved by the Administrative Agent.
“Attributable Indebtedness” means, on any date of determination, (a) in respect of any Capital Lease Obligation of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease, the capitalized amount or principal amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a Capital Lease Obligation.
“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.
“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the 

3

implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.
“Base Rate” means, at any time, the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) LIBOR for an Interest Period of one month plus 1%; each change in the Base Rate shall take effect simultaneously with the corresponding change or changes in the Prime Rate, the Federal Funds Rate or LIBOR (provided that clause (c) shall not be applicable during any period in which LIBOR is unavailable or unascertainable).
“Base Rate Loan” means any Loan bearing interest at a rate based upon the Base Rate as provided in Section 5.1(a).
“Benchmark Replacement” means the sum of: (a) the alternate benchmark rate (which may include Term SOFR) that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to LIBOR for U.S. dollar-denominated syndicated credit facilities and (b) the Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so determined would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement.
“Benchmark Replacement Adjustment” means, with respect to any replacement of LIBOR with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of LIBOR with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of LIBOR with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities at such time. 
“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement). 
“Benchmark Replacement Date” means the earlier to occur of the following events with respect to LIBOR: 
(a)in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of LIBOR permanently or indefinitely ceases to provide LIBOR; and 

4

(b)in the case of clause (c) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein. 
“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to LIBOR: 
(a)a public statement or publication of information by or on behalf of the administrator of LIBOR announcing that such administrator has ceased or will cease to provide LIBOR, permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide LIBOR; 
(b)a public statement or publication of information by the regulatory supervisor for the administrator of LIBOR, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for LIBOR, a resolution authority with jurisdiction over the administrator for LIBOR or a court or an entity with similar insolvency or resolution authority over the administrator for LIBOR, which states that the administrator of LIBOR has ceased or will cease to provide LIBOR permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide LIBOR; or 
(c)a public statement or publication of information by the regulatory supervisor for the administrator of LIBOR announcing that LIBOR is no longer representative. 
“Benchmark Transition Start Date” means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Administrative Agent or the Required Lenders, as applicable, by notice to the Borrower, the Administrative Agent (in the case of such notice by the Required Lenders) and the Lenders. 
“Benchmark Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to LIBOR and solely to the extent that LIBOR has not been replaced with a Benchmark Replacement, the period (a) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced LIBOR for all purposes hereunder in accordance with Section 5.8(c) and (b) ending at the time that a Benchmark Replacement has replaced LIBOR for all purposes hereunder pursuant to Section 5.8(c).
“Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.
“Beneficial Ownership Regulation” means 31 CFR § 1010.230.
“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.
“Borrower” means Tyler Technologies, Inc., a Delaware corporation.

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“Borrower Materials” has the meaning assigned thereto in Section 8.2.
“Business Day” means (a) for all purposes other than as set forth in clause (b) below, any day other than a Saturday, Sunday or legal holiday on which banks in Charlotte, North Carolina and New York, New York, are open for the conduct of their commercial banking business and (b) with respect to all notices and determinations in connection with, and payments of principal and interest on, any LIBOR Rate Loan, or any Base Rate Loan as to which the interest rate is determined by reference to LIBOR, any day that is a Business Day described in clause (a) and that is also a London Banking Day.
“Calculation Date” has the meaning assigned thereto in the definition of Applicable Margin.
“Capital Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.
“Cash Collateralize” means, to pledge and deposit with, or deliver to the Administrative Agent, or directly to the Issuing Lender (with notice thereof to the Administrative Agent), for the benefit of the Issuing Lender, the Swingline Lender or the Lenders, as collateral for L/C Obligations or obligations of the Lenders to fund participations in respect of L/C Obligations or Swingline Loans, cash or deposit account balances or, if the Administrative Agent and the Issuing Lender and the Swingline Lender shall agree, in their sole discretion, other credit support, in each case pursuant to documentation in form and substance satisfactory to the Administrative Agent, such Issuing Lender and the Swingline Lender, as applicable.  “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.
“Cash Equivalents” means, collectively, (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency thereof maturing within one hundred twenty (120) days from the date of acquisition thereof, (b) commercial paper maturing no more than one hundred twenty (120) days from the date of creation thereof and currently having the highest rating obtainable from either S&P or Moody’s, (c) certificates of deposit maturing no more than one hundred twenty (120) days from the date of creation thereof issued by commercial banks incorporated under the laws of the United States, each having combined capital, surplus and undivided profits of not less than $500,000,000 and having a rating of “A” or better by a nationally recognized rating agency; provided that the aggregate amount invested in such certificates of deposit shall not at any time exceed $5,000,000 for any one such certificate of deposit and $10,000,000 for any one such bank, or (d) time deposits maturing no more than thirty (30) days from the date of creation thereof with commercial banks or savings banks or savings and loan associations each having membership either in the FDIC or the deposits of which are insured by the FDIC and in amounts not exceeding the maximum amounts of insurance thereunder.
“Cash Management Agreement” means any agreement to provide cash management services, including treasury, depository, overdraft, credit or debit card (including non-card electronic payables), electronic funds transfer and other cash management arrangements.
“Cash Management Bank” means any Person that, (a) at the time it enters into a Cash Management Agreement with a Credit Party, is a Lender, an Affiliate of a Lender, the Administrative Agent or an Affiliate of the Administrative Agent, or (b) at the time it (or its Affiliate) becomes a Lender (including on the Closing Date), is a party to a Cash Management Agreement with a Credit Party, in each case in its capacity as a party to such Cash Management Agreement.

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“CFC” means a Foreign Subsidiary that is a “controlled foreign corporation” under Section 957 of the Code and any Subsidiary owned directly or indirectly by such Foreign Subsidiary. 
“CFC Holdco” means a Subsidiary substantially all the assets of which consist of Equity Interests in Foreign Subsidiaries that each constitute a CFC and/or Indebtedness or accounts receivable owed by Foreign Subsidiaries that each constitute a CFC or are treated as owed by any such Foreign Subsidiaries for U.S. federal income tax purposes.
“Change in Control” means an event or series of events by which:
(a)    (i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of such person or its Subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a “person” or “group” shall be deemed to have “beneficial ownership” of all Equity Interests that such “person” or “group” has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of more than twenty-five percent (25%) of the Equity Interests of the Borrower entitled to vote in the election of members of the board of directors (or equivalent governing body) of the Borrower or (ii) a majority of the members of the board of directors (or other equivalent governing body) of the Borrower shall not constitute Continuing Directors; or
(b)    there shall have occurred under any indenture or other instrument evidencing any Indebtedness or Equity Interests in excess of the Threshold Amount any “change in control” or similar provision (as set forth in the indenture, agreement or other evidence of such Indebtedness) obligating the Borrower or any of its Subsidiaries to repurchase, redeem or repay all or any part of the Indebtedness or Equity Interests provided for therein.
“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, implemented or issued.
“Class” means, when used in reference to any Loan, whether such Loan is a Revolving Credit Loan, Swingline Loan or Incremental Term Loan and, when used in reference to any Commitment, whether such Commitment is a Revolving Credit Commitment or an Incremental Term Loan Commitment.
“Closing Date” means the date of this Agreement.
“Code” means the Internal Revenue Code of 1986, and the rules and regulations promulgated thereunder.
“Commitment Fee” has the meaning assigned thereto in Section 5.3(a).

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“Commitment Percentage” means, as to any Lender, such Lender’s Revolving Credit Commitment Percentage or Incremental Term Loan Percentage, as applicable.
“Commitments” means, collectively, as to all Lenders, the Revolving Credit Commitments and, if applicable, the Incremental Term Loan Commitments of such Lenders.
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.).
“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.
“Consolidated” means, when used with reference to financial statements or financial statement items of any Person, such statements or items on a consolidated basis in accordance with applicable principles of consolidation under GAAP.
“Consolidated EBITDA” means, for any period, the sum of the following determined on a Consolidated basis, without duplication, for the Borrower and its Subsidiaries in accordance with GAAP: 
(a)     Consolidated Net Income for such period (excluding the effects of adjustments pursuant to GAAP resulting from the application of purchase accounting in relation to any Permitted Acquisition, net of taxes); plus 
(b)     the sum of the following, without duplication, to the extent deducted in determining Consolidated Net Income for such period: 
(i)     income and franchise taxes;
(ii)     Consolidated Interest Expense;
(iii)     amortization, depreciation and other non-cash charges (except to the extent that such non-cash charges are reserved for cash charges to be taken in the future);
(iv)     extraordinary losses (excluding extraordinary losses from discontinued operations);
(v)     non-cash stock compensation expense;
(vi)     Transaction Costs in an aggregate amount, together with any amount added to Consolidated EBITDA pursuant to clause (b)(vii) below, not to exceed fifteen percent (15%) of Consolidated EBITDA during any period of determination (determined without giving effect to this clause (b)(vi) and clause (b)(vii) below);
(vii)     (A) unusual and non-recurring cash expenses and charges, (B) one-time non-recurring severance charges incurred within 12 months of any Permitted Acquisition, any Specified Disposition and/or any other restructuring or other similar initiative taken after the Closing Date that have been consummated during the applicable period, (C) lease termination payments made within 12 months of any Permitted Acquisition, any Specified Disposition and/or any other restructuring or other similar initiative taken after the Closing Date that have been consummated during the applicable period and (D) the “run rate” amount of any synergies, operating expense reductions and other cost savings and integration costs, in each case projected by the Borrower in connection with any Permitted Acquisition, any Specified Disposition any/or any other restructuring 

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or other similar action taken after the Closing Date that have been consummated during the applicable period (calculated on a pro forma basis as though such synergies, operating expense reductions and other cost savings and integration costs had been realized on the first day of such period), net of the amount of actual benefits realized during such period from such actions (provided that, with respect to this clause (D), (1) such synergies, operating expense reductions and cost savings and integration costs are reasonably identifiable, factually supportable, expected to have a continuing impact on the operations of the Borrower and its Subsidiaries and have been determined by the Borrower in good faith to be reasonably anticipated to be realizable within 12 months following any such action as set forth in reasonable detail in a certificate of a Responsible Officer of the Borrower delivered to the Administrative Agent and (2) no such amounts shall be added pursuant to this clause to the extent duplicative of any expenses or charges otherwise added to Consolidated EBITDA, whether through a pro forma adjustment or otherwise); provided that the aggregate amount added to Consolidated EBITDA pursuant to this clause (b)(vii) during any period of determination, together with any amount added to Consolidated EBITDA pursuant to clause (b)(vi) above for such period, shall not exceed fifteen percent (15%) of Consolidated EBITDA for such period (determined without giving effect to clause (b)(vi) above and this clause (b)(vii)); less 
(c)     the sum of the following, without duplication, to the extent included in determining Consolidated Net Income for such period: 
(i)     interest income; 
(ii)     any extraordinary gains; and 
(iii)     non-cash gains or non-cash items increasing Consolidated Net Income.  
For purposes of this Agreement, Consolidated EBITDA shall be adjusted on a Pro Forma Basis.
“Consolidated Funded Indebtedness” means, as of any date of determination with respect to Borrower and its Subsidiaries on a Consolidated basis without duplication, the sum of:
(a)    all Indebtedness of the Borrower and its Subsidiaries of the types referred to in clauses (a), (b), (c), (d), (f) and (g) of the definition of Indebtedness; and
(b)    all Guarantees of any such Person with respect to any of the Indebtedness of the types referred to in clause (a) of this definition.
“Consolidated Interest Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date to (b) Consolidated Interest Expense for the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date.
“Consolidated Interest Expense” means, for any period, the sum of the following determined on a Consolidated basis, without duplication, for the Borrower and its Subsidiaries in accordance with GAAP, interest expense (including, without limitation, interest expense attributable to Capital Lease Obligations and all net payment obligations pursuant to Hedge Agreements) for such period.
“Consolidated Net Income” means, for any period, the net income (or loss) of the Borrower and its Subsidiaries for such period, determined on a Consolidated basis, without duplication, in accordance with GAAP; provided, that in calculating Consolidated Net Income of the Borrower and its Subsidiaries for any 

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period, there shall be excluded (a) the net income (or loss) of any Person (other than a Subsidiary which shall be subject to clause (c) below), in which the Borrower or any of its Subsidiaries has a joint interest with a third party, except to the extent such net income is actually paid in cash to the Borrower or any of its Subsidiaries by dividend or other distribution during such period, (b) the net income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of the Borrower or any of its Subsidiaries or is merged into or consolidated with the Borrower or any of its Subsidiaries or that Person’s assets are acquired by the Borrower or any of its Subsidiaries except to the extent included pursuant to the foregoing clause (a), (c) the net income (if positive), of any Subsidiary to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary to the Borrower or any of its Subsidiaries of such net income (i) is not at the time permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to such Subsidiary or (ii) would be subject to any taxes payable on such dividends or distributions, but in each case only to the extent of such prohibition or taxes and (d) any gain or loss from Asset Dispositions during such period.
“Consolidated Total Net Indebtedness” means, as of any date of determination with respect to the Borrower and its Subsidiaries on a Consolidated basis without duplication, the sum of (a) all Consolidated Funded Indebtedness of the Borrower and its Subsidiaries minus (b) Qualified Cash and Cash Equivalents of the Borrower and its Subsidiaries then on hand.
“Consolidated Total Net Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated Total Net Indebtedness on such date to (b) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date.
“Continuing Directors” means the directors (or equivalent governing body) of the Borrower on the Closing Date and each other director (or equivalent) of the Borrower, if, in each case, such other Person’s nomination for election to the board of directors (or equivalent governing body) of the Borrower is approved by at least 51% of the then Continuing Directors.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.
“Credit Facility” means, collectively, the Revolving Credit Facility, the Swingline Facility, the L/C Facility and, if applicable, any Incremental Term Loan Facility.
“Credit Parties” means, collectively, the Borrower and the Subsidiary Guarantors.
“Debt Issuance” means the issuance of any Indebtedness for borrowed money by any Credit Party or any of its Subsidiaries.
“Debtor Relief Laws” means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.
“Default” means any of the events specified in Section 10.1 which with the passage of time, the giving of notice or any other condition, would constitute an Event of Default.
“Defaulting Lender” means, subject to Section 5.14(b), any Lender that (a) has failed to (i) fund all or any portion of the Revolving Credit Loans, participations in L/C Obligations, participations in Swingline 

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Loans or, if applicable, any Incremental Term Loans required to be funded by it hereunder within two Business Days of the date such Loans or participations were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, the Issuing Lender, the Swingline Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit or Swingline Loans) within two Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent, the Issuing Lender or the Swingline Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the FDIC or any other state or federal regulatory authority acting in such a capacity or (iii) become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 5.14(b)) upon delivery of written notice of such determination to the Borrower, each Issuing Lender, the Swingline Lender and each Lender.
“Disqualified Equity Interests” means any Equity Interests that, by their terms (or by the terms of any security or other Equity Interest into which they are convertible or for which they are exchangeable) or upon the happening of any event or condition, (a)  mature or are mandatorily redeemable (other than solely for Qualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Commitments), (b) are redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests) (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Commitments), in whole or in part, (c) provide for the scheduled payment of dividends in cash or (d) are or become convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is 91 days after the Latest Maturity Date; provided that if such Equity Interests is issued pursuant to a plan for the benefit of the Borrower or its Subsidiaries or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Equity Interests solely because 

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they may be required to be repurchased by the Borrower or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations.
“Dollars” or “$” means, unless otherwise qualified, dollars in lawful currency of the United States.
“Domestic Subsidiary” means any Subsidiary organized under the laws of any political subdivision of the United States.
“Early Opt-in Election” means the occurrence of: 
(a)(i) a determination by the Administrative Agent or (ii) a notification by the Required Lenders to the Administrative Agent (with a copy to the Borrower) that the Required Lenders have determined that U.S. dollar-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in Section 5.8(c) are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace LIBOR; and 
(b)(i) the election by the Administrative Agent or (ii) the election by the Required Lenders to declare that an Early Opt-in Election has occurred and the provision, as applicable, by the Administrative Agent of written notice of such election to the Borrower and the Lenders or by the Required Lenders of written notice of such election to the Administrative Agent. 
“Earn-outs” means unsecured liabilities of a Credit Party arising under an agreement to make any deferred payment as a part of the purchase price for a Permitted 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 underlying target, in each case, to the extent that such deferred payment would be included as part of such purchase price.
“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent. 
“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any credit institution or investment firm established in any EEA Member Country.
“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 12.9(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 12.9(b)(iii)).  
“Employee Benefit Plan” means (a) any employee benefit plan within the meaning of Section 3(3) of ERISA that is maintained for employees of any Credit Party or any ERISA Affiliate or (b) any Pension Plan or Multiemployer Plan that has at any time within the preceding seven (7) years been maintained, funded or administered for the employees of any Credit Party or any current or former ERISA Affiliate.

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“Engagement Letter” means the engagement letter dated as of September 6, 2019 by and among the Borrower and Wells Fargo Securities, LLC.
“Environmental Claims” means any and all administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, accusations, allegations, notices of noncompliance or violation, investigations (other than internal reports prepared by any Person in the ordinary course of business and not in response to any third party action or request of any kind) or proceedings relating in any way to any actual or alleged violation of or liability under any Environmental Law or relating to any permit issued, or any approval given, under any such Environmental Law, including, without limitation, any and all claims by Governmental Authorities for enforcement, cleanup, removal, response, remedial or other actions or damages, contribution, indemnification, cost recovery, compensation or injunctive relief resulting from Hazardous Materials or arising from alleged injury or threat of injury to public health or the environment.
“Environmental Laws” means any and all federal, foreign, state, provincial and local laws, statutes, ordinances, codes, rules, standards and regulations, permits, licenses, approvals, interpretations and orders of courts or Governmental Authorities, relating to the protection of public health or the environment, including, but not limited to, requirements pertaining to the manufacture, processing, distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing, permitting, investigation or remediation of Hazardous Materials.
“Equity Interests” means (a) in the case of a corporation, capital stock, (b) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (c) in the case of a partnership, partnership interests (whether general or limited), (d) in the case of a limited liability company, membership interests, (e) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person and (f) any and all warrants, rights or options to purchase any of the foregoing.
“Equity Issuance” means (a) any issuance by the Borrower of shares of its Equity Interests to any Person that is not a Credit Party (including, without limitation, in connection with the exercise of options or warrants or the conversion of any debt securities to equity) and (b) any capital contribution from any Person that is not a Credit Party into any Credit Party or any Subsidiary thereof.  The term “Equity Issuance” shall not include (A) any Asset Disposition or (B) any Debt Issuance.
“ERISA” means the Employee Retirement Income Security Act of 1974, and the rules and regulations thereunder.
“ERISA Affiliate” means any Person who together with any Credit Party or any of its Subsidiaries is treated as a single employer within the meaning of Section 414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA.
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor thereto), as in effect from time to time. 
“Eurodollar Reserve Percentage” means, for any day, the percentage which is in effect for such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, any basic, supplemental or emergency reserves) in respect of eurocurrency liabilities or any similar category of liabilities for a member bank of the Federal Reserve System in New York City.

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“Event of Default” means any of the events specified in Section 10.1; provided that any requirement for passage of time, giving of notice, or any other condition, has been satisfied.
“Exchange Act” means the Securities Exchange Act of 1934.
“Excluded Subsidiary” means (a) each CFC, (b) each Subsidiary that is a direct or indirect Subsidiary of a CFC, (c) each CFC Holdco, (d) each Immaterial Subsidiary and (e) any other Subsidiary with respect to which the Administrative Agent and the Borrower mutually agree that the cost of providing a Guarantee would be excessive in relation to the benefit to be afforded thereby.
“Excluded Swap Obligation” means, with respect to any Credit Party, any Swap Obligation if, and to the extent that, all or a portion of the liability of such Credit Party for or the guarantee of such Credit Party of, or the grant by such Credit Party of a security interest to secure, such Swap Obligation (or any liability or guarantee 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 Credit 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 liability for or the guarantee of such Credit Party or the grant of such security interest becomes effective with respect to such Swap Obligation (such determination being made after giving effect to any applicable keepwell, support or other agreement for the benefit of the applicable Credit Party, including under Section 2.12 of the Guaranty Agreement).  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guarantee or security interest is or becomes illegal for the reasons identified in the immediately preceding sentence of this definition.
“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, United States federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 5.12(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 5.11, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 5.11(g) and (d) any United States federal withholding Taxes imposed under FATCA.
“Existing Credit Agreement” means that certain Credit Agreement dated as of November 16, 2015 by and among the Borrower, as borrower, the lenders party thereto, as lenders, and Wells Fargo Bank, National Association, as administrative agent, as amended, restated, supplemented or otherwise modified as of the date hereof.
“Extensions of Credit” means, as to any Lender at any time, (a) an amount equal to the sum of (i) the aggregate principal amount of all Revolving Credit Loans made by such Lender then outstanding, (ii) such Lender’s Revolving Credit Commitment Percentage of the L/C Obligations then outstanding, (iii) such Lender’s Revolving Credit Commitment Percentage of the Swingline Loans then outstanding and (iv) the 

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aggregate principal amount of Incremental Term Loans, if any, made by such Lender then outstanding, or (b) the making of any Loan or participation in any Letter of Credit by such Lender, as the context requires.
“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.
“FDIC” means the Federal Deposit Insurance Corporation.
“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that if such rate is not so published for any day which is a Business Day, the average of the quotation for such day on such transactions received by the Administrative Agent from three federal funds brokers of recognized standing selected by the Administrative Agent.  Notwithstanding the foregoing, if the Federal Funds Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
“Fiscal Year” means the fiscal year of the Borrower and its Subsidiaries ending on December 31.
“Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.
“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.
“FRB” means the Board of Governors of the Federal Reserve System of the United States. 
“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the Issuing Lender, such Defaulting Lender’s Revolving Credit Commitment Percentage of the outstanding L/C Obligations with respect to Letters of Credit issued by such Issuing Lender, other than such L/C Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof and (b) with respect to the Swingline Lender, such Defaulting Lender’s Revolving Credit Commitment Percentage of outstanding Swingline Loans other than Swingline Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.
“Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course of its activities.
“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.
“Governmental Approvals” means all authorizations, consents, approvals, permits, licenses and exemptions of, and all registrations and filings with or issued by, any Governmental Authorities.

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“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).
“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation or (e) for the purpose of assuming in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (whether in whole or in part).
“Guaranteed Cash Management Agreement” means any Cash Management Agreement between or among any Credit Party and any Cash Management Bank.
“Guaranteed Hedge Agreement” means any Hedge Agreement between or among any Credit Party and any Hedge Bank.
“Guaranteed Obligations” means, collectively, (a) the Obligations and (b) all existing or future payment and other obligations owing by any Credit Party under (i) any Guaranteed Hedge Agreement (other than an Excluded Swap Obligation) and (ii) any Guaranteed Cash Management Agreement.
“Guaranteed Parties” means, collectively, the Administrative Agent, the Lenders, the Issuing Lender, the Hedge Banks, the Cash Management Banks, each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to Section 11.5, any other holder from time to time of any of any Guaranteed Obligations and, in each case, their respective successors and permitted assigns.
“Guarantors” means, collectively, the Borrower and the Subsidiary Guarantors.
“Guaranty Agreement” means the unconditional guaranty agreement of even date herewith executed by the Guarantors in favor of the Administrative Agent, for the ratable benefit and the Guaranteed Parties, which shall be in form and substance acceptable to the Administrative Agent.
“Hazardous Materials” means any substances or materials (a) which are or become defined as hazardous wastes, hazardous substances, pollutants, contaminants, chemical substances or mixtures or toxic substances under any Environmental Law, (b) which are toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise harmful to public health or the environment and are or become regulated by any Governmental Authority, (c) the presence of which require investigation or remediation under any Environmental Law or common law, (d) the discharge or emission or release of which requires a permit or license under any Environmental Law or other Governmental Approval, (e) which are deemed by a Governmental Authority to constitute a nuisance or a trespass which pose a health or safety hazard to Persons or neighboring properties, or (f) which contain, without limitation, asbestos, 

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polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum hydrocarbons, petroleum derived substances or waste, crude oil, nuclear fuel, natural gas or synthetic gas.
“Hedge Agreement” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement.
“Hedge Bank” means any Person that, (a) at the time it enters into a Hedge Agreement with a Credit Party permitted under Article IX, is a Lender, an Affiliate of a Lender, the Administrative Agent or an Affiliate of the Administrative Agent or (b) at the time it (or its Affiliate) becomes a Lender (including on the Closing Date), is a party to a Hedge Agreement with a Credit Party, in each case in its capacity as a party to such Hedge Agreement.
“Hedge Termination Value” means, in respect of any one or more Hedge Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Hedge Agreements, (a) for any date on or after the date such Hedge Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Hedge Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Hedge Agreements (which may include a Lender or any Affiliate of a Lender).
“Holdback” means a portion of the purchase price for a Permitted Acquisition not paid at the closing therefor but held by a Credit Party for satisfaction of indemnification obligations and purchase price adjustments.
“Immaterial Subsidiary” means any Subsidiary of the Borrower that (a) together with its Subsidiaries, (i) contributed less than five percent (5%) of the Consolidated EBITDA of the Borrower and is Subsidiaries, taken as a whole, during the most recently-ended four fiscal quarter period (taken as a single period) and (ii) as of any applicable date of determination has assets that constitute less than five percent (5%) of the aggregate net book value of the assets of the Borrower and its Subsidiaries, taken as a whole (each of which calculations, for any Immaterial Subsidiary organized or acquired since the end of such period or such date, as the case may be, shall be determined on a pro forma basis as if such Subsidiary were in existence or acquired on such date), (b) does not Guarantee or provide a Lien on its assets or otherwise provide credit support with respect to any Indebtedness of the Borrower or any of its Subsidiaries, (c) does not own any other Subsidiaries (other than Immaterial Subsidiaries) and (d) has been designated as such by the Borrower in a written notice delivered to the Administrative Agent (other than any such Subsidiary as to which the Borrower has revoked such designation by written notice to the Administrative Agent).
“Increased Amount Date” has the meaning assigned thereto in Section 4.1(a).

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“Incremental Facilities Limit” means, with respect to any proposed incurrence of an Incremental Increase, the sum of the following:
(a)    the amount equal to the sum of (i) the greater of (A) $250,000,000 and (B) 100% of Consolidated EBITDA for the four (4) consecutive fiscal quarter period most recently ended prior to the incurrence of such Incremental Increase for which financial statements have been delivered to the Administrative Agent hereunder less (ii) the total aggregate initial principal amount (as of the date of incurrence thereof) of all Incremental Increases incurred under this clause (a) after the Closing Date and prior to the incurrence of such Incremental Increase; plus
(b)    the amount of additional Indebtedness that would cause the Consolidated Total Net Leverage Ratio as of the four (4) consecutive fiscal quarter period most recently ended prior to the incurrence of such additional Indebtedness (or in the case of any additional Indebtedness, the proceeds of which will finance a Limited Condition Acquisition, the LCA Test Date), calculated on a Pro Forma Basis after giving effect to the incurrence of such additional Indebtedness and any Permitted Acquisition to be consummated using the proceeds of such additional Indebtedness and assuming that the Revolving Credit Facility (including any proposed Incremental Revolving Credit Increase) is fully drawn at such time, not to exceed 3.25 to 1.00.
Unless the Borrower otherwise notifies the Administrative Agent, if all or any portion of any Incremental Increase would be permitted under clause (b) above on the applicable date of incurrence, such Incremental Increase (or the relevant portion thereof) shall be deemed to have been incurred in reliance on clause (b) above prior to the utilization of any amount available under clause (a) above.  Furthermore, notwithstanding anything to the contrary contained herein, for purposes of calculating the Consolidated Total Net Leverage Ratio, the proceeds from any additional Indebtedness incurred pursuant to any Incremental Increase shall not be netted from Consolidated Total Net Indebtedness.
“Incremental Increase” has the meaning assigned thereto in Section 4.1(a)(ii).
“Incremental Lender” has the meaning assigned thereto in Section 4.1(a).
“Incremental Loan Commitment” has the meaning assigned thereto in Section 4.1(a)(ii).
“Incremental Revolving Credit Commitment(s)” has the meaning assigned thereto in Section 4.1(a)(ii).
“Incremental Revolving Credit Increase(s)” has the meaning assigned thereto in Section 4.1(a)(ii).
“Incremental Term Loan(s)” has the meaning assigned thereto in Section 4.1(a)(i).
“Incremental Term Loan Commitment(s)” has the meaning assigned thereto in Section 4.1(a)(i).
“Incremental Term Loan Facility” means any new term loan facility established pursuant to Section 4.1 and all such term loan facilities collectively as the context require.
“Incremental Term Loan Lender” means any Lender with an Incremental Term Loan Commitment and/or outstanding Incremental Term Loans.
“Incremental Term Loan Note” means a promissory note made by the Borrower in favor of an Incremental Term Loan Lender evidencing the Incremental Term Loan Loans made by such Incremental 

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Term Loan Lender, substantially in the form attached as Exhibit A-3, and any substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part.
“Incremental Term Loan Percentage” means, with respect to any Incremental Term Loan Lender at any time, the percentage of the total outstanding principal balance of the Incremental Term Loans represented by the outstanding principal balance of such Incremental Term Loan Lender’s Incremental Term Loans.
“Indebtedness” means, with respect to any Person at any date and without duplication, the sum of the following:
(a)    all liabilities, obligations and indebtedness for borrowed money including, but not limited to, obligations evidenced by bonds, debentures, notes or other similar instruments of any such Person;
(b)    all obligations to pay the deferred purchase price of property or services of any such Person (including, without limitation, all obligations under non-competition, earn-out or similar agreements), except trade payables arising in the ordinary course of business not more than ninety (90) days past due, or that are currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided for on the books of such Person;
(c)    the Attributable Indebtedness of such Person with respect to such Person’s Capital Lease Obligations and Synthetic Leases (regardless of whether accounted for as indebtedness under GAAP);
(d)    all obligations of such Person under conditional sale or other title retention agreements relating to property purchased by such Person to the extent of the value of such property (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business);
(e)    all Indebtedness of any other Person secured by a Lien on any asset owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements except trade payables arising in the ordinary course of business), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;
(f)    all obligations, contingent or otherwise, of any such Person relative to the face amount of letters of credit, whether or not drawn, including, without limitation, any Reimbursement Obligation, and banker’s acceptances issued for the account of any such Person;
(g)    all obligations of any such Person in respect of Disqualified Equity Interests;
(h)    all net obligations of such Person under any Hedge Agreements; and
(i)    all Guarantees of any such Person with respect to any of the foregoing.
For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.  The amount of any net obligation under any Hedge Agreement on any date shall be deemed to be the Hedge Termination Value thereof as of such date.

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“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Credit Party under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.
“Insurance and Condemnation Event” means the receipt by any Credit Party or any of its Subsidiaries of any cash insurance proceeds or condemnation award payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of their respective Property.
“Interest Period” means, as to each LIBOR Rate Loan, the period commencing on the date such LIBOR Rate Loan is disbursed or converted to or continued as a LIBOR Rate Loan and ending on the date one (1), two (2), three (3), or six (6) months thereafter, in each case as selected by the Borrower in its Notice of Borrowing or Notice of Conversion/Continuation and subject to availability; provided that:
(a)    the Interest Period shall commence on the date of advance of or conversion to any LIBOR Rate Loan and, in the case of immediately successive Interest Periods, each successive Interest Period shall commence on the date on which the immediately preceding Interest Period expires;
(b)    if any Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day; provided that if any Interest Period with respect to a LIBOR Rate Loan would otherwise expire on a day that is not a Business Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the immediately preceding Business Day;
(c)    any Interest Period with respect to a LIBOR Rate Loan that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the relevant calendar month at the end of such Interest Period;
(d)    no Interest Period shall extend beyond the Revolving Credit Maturity Date or the maturity date with respect to any Incremental Term Loan, as applicable; and
(e)    there shall be no more than six (6) Interest Periods in effect at any time.
“IRS” means the United States Internal Revenue Service.
“ISP98” means the International Standby Practices (1998 Revision, effective January 1, 1999), International Chamber of Commerce Publication No. 590.
“Issuing Lender” means Wells Fargo, together with any successor.
“L/C Commitment” means, as to the Issuing Lender, the obligation to issue Letters of Credit for the account of the Borrower or one or more of its Subsidiaries from time to time in an aggregate amount equal to the L/C Sublimit. 
“L/C Facility” means the letter of credit facility established pursuant to Article III.
“L/C Obligations” means at any time, an amount equal to the sum of (a) the aggregate undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount of drawings under Letters of Credit which have not then been reimbursed pursuant to Section 3.5.

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“L/C Participants” means, with respect to any Letter of Credit, the collective reference to all the Revolving Credit Lenders other than the Issuing Lender.
“L/C Sublimit” means the lesser of (a) Twenty-Five Million Dollars ($25,000,000) and (b) the Revolving Credit Commitment.
“Latest Maturity Date” means, at any date of determination, the latest maturity or expiration date applicable to any Loan, Revolving Credit Commitment or Incremental Loan Commitment hereunder at such time, including the latest maturity or expiration date of any Incremental Term Loan.
“LCA Test Date” has the meaning assigned thereto in Section 1.11(a).  
“Lender” means the Persons listed on Schedule 1.1 and any other Person that shall have become a party to this Agreement as a Lender pursuant to an Assignment and Assumption or pursuant to Section 4.1, other than any Person that ceases to be a party hereto as a Lender pursuant to an Assignment and Assumption.  Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender.
“Lender Joinder Agreement” means a joinder agreement in form and substance reasonably satisfactory to the Administrative Agent delivered in connection with Section 4.1.
“Lending Office” means, with respect to any Lender, the office of such Lender maintaining such Lender’s Extensions of Credit.
“Letter of Credit Application” means an application, in the form specified by the Issuing Lender from time to time, requesting such Issuing Lender to issue a Letter of Credit.
“Letters of Credit” means the collective reference to letters of credit issued pursuant to Section 3.1.
“LIBOR” means, subject to the implementation of a Benchmark Replacement in accordance with Section 5.8(c):
(a)    for any interest rate calculation with respect to a LIBOR Rate Loan, the rate of interest per annum determined on the basis of the rate for deposits in Dollars for a period equal to the applicable Interest Period as published by the ICE Benchmark Administration Limited, a United Kingdom company, or a comparable or successor quoting service approved by the Administrative Agent, at approximately 11:00 a.m. (London time) two (2) London Banking Days prior to the first day of the applicable Interest Period.  If, for any reason, such rate is not so published then “LIBOR” shall be determined by the Administrative Agent to be the arithmetic average of the rate per annum at which deposits in Dollars would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) two (2) London Banking Days prior to the first day of the applicable Interest Period for a period equal to such Interest Period; and
(b)    for any interest rate calculation with respect to a Base Rate Loan, the rate of interest per annum determined on the basis of the rate for deposits in Dollars for an Interest Period equal to one month (commencing on the date of determination of such interest rate) as published by ICE Benchmark Administration Limited, a United Kingdom company, or a comparable or successor quoting service approved by the Administrative Agent, at approximately 11:00 a.m. (London time) on such date of determination, or, if such date is not a Business Day, then the immediately preceding Business Day.  If, for any reason, such rate is not so published then “LIBOR” for such Base Rate Loan shall be determined by the Administrative Agent to be the arithmetic average of the rate per annum at which deposits in Dollars would be offered by 

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first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) on such date of determination for a period equal to one month commencing on such date of determination.
Each calculation by the Administrative Agent of LIBOR shall be conclusive and binding for all purposes, absent manifest error.
Notwithstanding the foregoing, (A) in no event shall LIBOR (including any Benchmark Replacement with respect thereto) be less than 0% and (B) unless otherwise specified in any amendment to this Agreement entered into in accordance with Section 5.8(c), in the event that a Benchmark Replacement with respect to LIBOR is implemented, then all references herein to LIBOR shall be deemed references to such Benchmark Replacement.
“LIBOR Rate” means a rate per annum determined by the Administrative Agent pursuant to the following formula:
	
		
	LIBOR Rate =
	LIBOR

	 
	1.00-Eurodollar Reserve Percentage

Notwithstanding the foregoing, if the LIBOR Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

“LIBOR Rate Loan” means any Loan bearing interest at a rate based upon the LIBOR Rate as provided in Section 5.1(a).
“Lien” means, with respect to any asset, any mortgage, leasehold mortgage, lien, pledge, charge, security interest, hypothecation or encumbrance of any kind in respect of such asset.  For the purposes of this Agreement, a Person shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, Capital Lease Obligation or other title retention agreement relating to such asset.
“Limited Condition Acquisition” means any Acquisition that (a) is not prohibited hereunder, (b) is financed in whole or in part with a substantially concurrent incurrence of an Incremental Term Loan, (c) is not conditioned on the availability of, or on obtaining, third-party financing and (d) is completed within six (6) months of the LCA Test Date (or such longer period as may be agreed to by the Administrative Agent and the lenders providing such Incremental Term Loan in connection therewith).
“Loan Documents” means, collectively, this Agreement, each Note, the Letter of Credit Applications, the Guaranty Agreement, the Engagement Letter and each other document, instrument, certificate and agreement executed and delivered by the Credit Parties or any of their respective Subsidiaries in favor of or provided to the Administrative Agent or any Guaranteed Party in connection with this Agreement or otherwise referred to herein or contemplated hereby (excluding any Guaranteed Hedge Agreement and any Guaranteed Cash Management Agreement).
“Loans” means the collective reference to the Revolving Credit Loans, the Swingline Loans and, if applicable, any Incremental Term Loans, and “Loan” means any of such Loans.
“London Banking Day” means any day on which dealings in Dollar deposits are conducted by and between banks in the London interbank Eurodollar market.

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“Material Adverse Effect” means, with respect to the Borrower and its Subsidiaries, (a) a material adverse change in, or a material adverse effect on, the operations, business, assets, properties, liabilities (actual or contingent) or condition (financial or otherwise) of such Persons, taken as a whole, (b) a material impairment of the ability of any such Person to perform its obligations under the Loan Documents to which it is a party, (c) a material adverse effect on the rights and remedies of the Administrative Agent or any Lender under any Loan Document or (d) an impairment of the legality, validity, binding effect or enforceability against any Credit Party of any Loan Document to which it is a party.
“Material Permitted Acquisition” means a Permitted Acquisition (or series of related Acquisitions) having Permitted Acquisition Consideration in excess of $100,000,000.
“Minimum Collateral Amount” means, at any time, (a) with respect to Cash Collateral consisting of cash or deposit account balances, an amount equal to 105% of the sum of (i) the Fronting Exposure of the Issuing Lender with respect to Letters of Credit issued and outstanding at such time and (ii) the Fronting Exposure of the Swingline Lender with respect to all Swingline Loans outstanding at such time and (b) otherwise, an amount determined by the Administrative Agent and the Issuing Lender in their sole discretion.
“Moody’s” means Moody’s Investors Service, Inc.
“Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which any Credit Party or any ERISA Affiliate is making, or is accruing an obligation to make, or has accrued an obligation to make contributions within the preceding seven (7) years.
“Non-Consenting Lender” means any Lender that does not approve any consent, waiver, amendment, modification or termination that (a) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Section 12.2 and (b) has been approved by the Required Lenders.
“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.
“Non-Guarantor Subsidiary” means any Subsidiary of the Borrower that is not a Subsidiary Guarantor.
“Notes” means the collective reference to the Revolving Credit Notes, the Swingline Note and, if applicable, any Incremental Term Loan Note.
“Notice of Account Designation” has the meaning assigned thereto in Section 2.3(b).
“Notice of Borrowing” has the meaning assigned thereto in Section 2.3(a).
“Notice of Conversion/Continuation” has the meaning assigned thereto in Section 5.2.
“Notice of Prepayment” has the meaning assigned thereto in Section 2.4(c).
“Obligations” means, in each case, whether now in existence or hereafter arising: (a) the principal of and interest on (including interest accruing after the filing of any bankruptcy or similar petition) the Loans, (b) the L/C Obligations and (c) all other fees and commissions (including attorneys’ fees), charges, indebtedness, loans, liabilities, financial accommodations, obligations, covenants and duties owing by the Credit Parties and each of their respective Subsidiaries to the Lenders, the Issuing Lender or the Administrative Agent, in each case under any Loan Document, with respect to any Loan or Letter of Credit of every kind, 

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nature and description, direct or indirect, absolute or contingent, due or to become due, contractual or tortious, liquidated or unliquidated, and whether or not evidenced by any note and including interest and fees that accrue after the commencement by or against any Credit Party or any Subsidiary thereof of any proceeding under any Debtor Relief Laws, naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.
“OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.
“Officer’s Compliance Certificate” means a certificate of the chief financial officer or the treasurer of the Borrower substantially in the form attached as Exhibit F.
“Operating Lease” means, as to any Person as determined in accordance with GAAP, any lease of Property (whether real, personal or mixed) by such Person as lessee which is not a capital lease.
“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).
“Other Taxes” means all present or future stamp, court, documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 5.12).
“Participant” has the meaning assigned thereto in Section 12.9(d).
“Participant Register” has the meaning assigned thereto in Section 12.9(d).
“PATRIOT Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).
“PBGC” means the Pension Benefit Guaranty Corporation or any successor agency.
“Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to the provisions of Title IV of ERISA or Section 412 of the Code and which (a) is maintained, funded or administered for the employees of any Credit Party or any ERISA Affiliate or (b) has at any time within the preceding seven (7) years been maintained, funded or administered for the employees of any Credit Party or any current or former ERISA Affiliates.
“Permitted Acquisition” means any Acquisition that meets all of the following requirements (which, in the case of a Limited Condition Acquisition, shall be subject to Section 1.11):
(a)    no less than five (5) Business Days prior to the proposed closing date of such Acquisition, the Borrower shall have delivered written notice of such Acquisition to the Administrative Agent and the Lenders, which notice shall include the proposed closing date of such Acquisition; provided that if the Permitted Acquisition Consideration with respect to such Acquisition is less than $35,000,000, such written notice may be delivered within 30 days following the closing date of such Acquisition; 

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(b)    such Acquisition shall be consensual and, if applicable, shall have been approved by the board of directors and/or the shareholders of the Person whose Equity Interests or assets are proposed to be acquired;
(c)    the Person or business to be acquired shall be in a line of business permitted pursuant to Section 9.11;
(d)    the Borrower shall have delivered to the Administrative Agent all documents required to be delivered pursuant to, and in accordance with, Section 8.13;
(e)    with respect to any Acquisition with respect to which the Permitted Acquisition Consideration is equal to or greater than $50,000,000, no later than five (5) Business Days prior to the proposed closing date of such Acquisition, the Borrower shall have delivered to the Administrative Agent an Officer’s Compliance Certificate for the most recent fiscal quarter end preceding such Acquisition for which financial statements are available demonstrating, in form and substance reasonably satisfactory to the Administrative Agent, that the Borrower is in compliance on a Pro Forma Basis (as of the date of the Acquisition and after giving effect thereto and any Indebtedness incurred in connection therewith) with each covenant contained in Section 9.13;
(f)    with respect to any Material Permitted Acquisition, no later than five (5) Business Days prior to the proposed closing date of such Acquisition the Borrower, to the extent requested by the Administrative Agent, shall have delivered to the Administrative Agent promptly upon the finalization thereof copies of substantially final Permitted Acquisition Documents, which shall be in form and substance reasonably satisfactory to the Administrative Agent; and
(g)    no Default or Event of Default shall have occurred and be continuing both before and after giving effect to such Acquisition and any Indebtedness incurred in connection therewith.
“Permitted Acquisition Consideration” means the aggregate amount of the purchase price, including, but not limited to, any assumed debt, Earn-Outs (valued at the maximum amount payable thereunder), Holdbacks, other deferred payments, or Equity Interests of the Borrower, to be paid on a singular basis in connection with any applicable Permitted Acquisition as set forth in the applicable Permitted Acquisition Documents executed by the Borrower or any of its Subsidiaries in order to consummate the applicable Permitted Acquisition.
“Permitted Acquisition Documents” means with respect to any Acquisition proposed by the Borrower or any Subsidiary, final copies or substantially final drafts if not executed at the required time of delivery of the purchase agreement, sale agreement, merger agreement or other agreement evidencing such Acquisition, including, without limitation, all legal opinions and each other document executed, delivered, contemplated by or prepared in connection therewith and any amendment, modification or supplement to any of the foregoing.
“Permitted Liens” means the Liens permitted pursuant to Section 9.2.
“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
“Platform” means Debt Domain, Intralinks, SyndTrak or a substantially similar electronic transmission system.

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“Prime Rate” means, at any time, the rate of interest per annum publicly announced from time to time by the Administrative Agent as its prime rate.  Each change in the Prime Rate shall be effective as of the opening of business on the day such change in such prime rate occurs.  The parties hereto acknowledge that the rate announced publicly by the Administrative Agent as its prime rate is an index or base rate and shall not necessarily be its lowest or best rate charged to its customers or other banks.
“Pro Forma Basis” means, for purposes of calculating Consolidated EBITDA for any period during which one or more Specified Transactions occurs, that such Specified Transaction (and all other Specified Transactions that have been consummated during the applicable period) shall be deemed to have occurred as of the first day of the applicable period of measurement and all income statement items (whether positive or negative) attributable to the Property or Person disposed of in a Specified Disposition shall be excluded and all income statement items (whether positive or negative) attributable to the Property or Person acquired in a Permitted Acquisition shall be included (provided that such income statement items to be included are reflected in financial statements or other financial data reasonably acceptable to the Administrative Agent and based upon reasonable assumptions and calculations which are expected to have a continuous impact).
“Property” means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible, including, without limitation, Equity Interests.
“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.
“Public Lenders” has the meaning assigned thereto in Section 8.2.
“Qualified Cash and Cash Equivalents” means, as to any Person, as of any date of determination, the aggregate amount of Unrestricted cash and Cash Equivalents held by such Person and its Subsidiaries in domestic deposit accounts or securities accounts.  For purposes hereof, “Unrestricted” means, when referring to cash and Cash Equivalents of any Person, that such cash and Cash Equivalents (a) do not appear, or would not be required to appear, as “restricted” on the financial statements of such Person and its Subsidiaries (unless related to the Loan Documents or the Liens created thereunder), (b) are not subject to a Lien in favor of any Person other than (i) Liens in favor of the Administrative Agent under the Loan Documents (if any) or (ii) Liens of the type referred to in Section 9.2(k), or (c) are not otherwise unavailable to such Person or its Subsidiaries.
“Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity Interests.
“Recipient” means (a) the Administrative Agent, (b) any Lender and (c) the Issuing Lender, as applicable.
“Register” has the meaning assigned thereto in Section 12.9(c).
“Reimbursement Obligation” means the obligation of the Borrower to reimburse the Issuing Lender pursuant to Section 3.5 for amounts drawn under Letters of Credit issued by such Issuing Lender.
“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates.

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“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.
“Required Lenders” means, at any time, Lenders having Total Credit Exposures representing more than fifty percent (50%) of the Total Credit Exposures of all Lenders.  The Total Credit Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.
“Responsible Officer” means, as to any Person, the chief executive officer, president, chief financial officer, controller, treasurer or assistant treasurer of such Person or any other officer of such Person designated in writing by the Borrower and reasonably acceptable to the Administrative Agent; provided that, to the extent requested thereby, the Administrative Agent shall have received a certificate of such Person certifying as to the incumbency and genuineness of the signature of each such officer.  Any document delivered hereunder or under any other Loan Document that is signed by a Responsible Officer of a Person shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Person and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Person.
“Restricted Payment” has the meaning assigned thereto in Section 9.6.
“Revolving Credit Commitment” means (a) as to any Revolving Credit Lender, the obligation of such Revolving Credit Lender to make Revolving Credit Loans to, and to purchase participations in L/C Obligations and Swingline Loans for the account of, the Borrower hereunder in an aggregate principal amount at any time outstanding not to exceed the amount set forth opposite such Revolving Credit Lender’s name on the Register, as such amount may be modified at any time or from time to time pursuant to the terms hereof (including, without limitation, Section 4.1) and (b) as to all Revolving Credit Lenders, the aggregate commitment of all Revolving Credit Lenders to make Revolving Credit Loans, as such amount may be modified at any time or from time to time pursuant to the terms hereof (including, without limitation, Section 4.1).  The aggregate Revolving Credit Commitment of all the Revolving Credit Lenders on the Closing Date shall be $400,000,000.  The initial Revolving Credit Commitment of each Revolving Credit Lender is set forth opposite the name of such Lender on Schedule 1.1.
“Revolving Credit Commitment Percentage” means, with respect to any Revolving Credit Lender at any time, the percentage of the total Revolving Credit Commitments of all the Revolving Credit Lenders represented by such Revolving Credit Lender’s Revolving Credit Commitment.  If the Revolving Credit Commitments have terminated or expired, the Revolving Credit Commitment Percentages shall be determined based upon the Revolving Credit Commitments most recently in effect, giving effect to any assignments.  The initial Revolving Credit Commitment Percentage of each Revolving Credit Lender is set forth opposite the name of such Lender on Schedule 1.1.
“Revolving Credit Exposure” means, as to any Revolving Credit Lender at any time, the aggregate principal amount at such time of its outstanding Revolving Credit Loans and such Revolving Credit Lender’s participation in L/C Obligations and Swingline Loans at such time.
“Revolving Credit Facility” means the revolving credit facility established pursuant to Article II (including any increase in such revolving credit facility established pursuant to Section 4.1).
“Revolving Credit Lenders” means, collectively, all of the Lenders with a Revolving Credit Commitment.

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“Revolving Credit Loan” means any revolving loan made to the Borrower pursuant to Section 2.1, and all such revolving loans collectively as the context requires.
“Revolving Credit Maturity Date” means the earliest to occur of (a) September 30, 2024, (b) the date of termination of the entire Revolving Credit Commitment by the Borrower pursuant to Section 2.5, and (c) the date of termination of the Revolving Credit Commitment pursuant to Section 10.2(a).
“Revolving Credit Note” means a promissory note made by the Borrower in favor of a Revolving Credit Lender requesting a Revolving Credit Note evidencing the Revolving Credit Loans made by such Revolving Credit Lender, substantially in the form attached as Exhibit A-1, and any substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part.
“Revolving Credit Outstandings” means the sum of (a) with respect to Revolving Credit Loans and Swingline Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Revolving Credit Loans and Swingline Loans, as the case may be, occurring on such date; plus (b) with respect to any L/C Obligations on any date, the aggregate outstanding amount thereof on such date after giving effect to any Extensions of Credit occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursements of outstanding unpaid drawings under any Letters of Credit or any reductions in the maximum amount available for drawing under Letters of Credit taking effect on such date.
“Revolving Extensions of Credit” means (a) any Revolving Credit Loan then outstanding, (b) any Letter of Credit then outstanding or (c) any Swingline Loan then outstanding.
“S&P” means Standard & Poor’s Financial Services LLC, a part of McGraw-Hill Financial and any successor thereto.
“Sanctioned Country” means at any time, a country, region or territory which is itself the subject or target of any Sanctions (which, as of the Closing Date, includes Cuba, Iran, North Korea, Syria and Crimea).
“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in clauses (a) and (b).
“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government (including those administered by OFAC), the European Union, Her Majesty’s Treasury, or other relevant sanctions authority. 
“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.
“SOFR” means, with respect to any day, the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s Website.
“Solvent” and “Solvency” mean, with respect to any Person on any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person 

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is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital, and (e) such Person is able to pay its debts and liabilities, contingent obligations and other commitments as they mature in the ordinary course of business.  The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.
“Specified Disposition” means any Asset Disposition having gross sales proceeds in excess of the Threshold Amount.
“Specified Transactions” means (a) any Specified Disposition, (b) any Permitted Acquisition and (c) the Transactions.
“Subordinated Indebtedness” means the collective reference to any Indebtedness incurred by the Borrower or any of its Subsidiaries that is subordinated in right and time of payment to the Obligations on terms and conditions satisfactory to the Administrative Agent.
“Subsidiary” means as to any Person, any corporation, partnership, limited liability company or other entity of which more than fifty percent (50%) of the outstanding Equity Interests having ordinary voting power to elect a majority of the board of directors (or equivalent governing body) or other managers of such corporation, partnership, limited liability company or other entity is at the time owned by (directly or indirectly) or the management is otherwise controlled by (directly or indirectly) such Person (irrespective of whether, at the time, Equity Interests of any other class or classes of such corporation, partnership, limited liability company or other entity shall have or might have voting power by reason of the happening of any contingency).  Unless otherwise qualified, references to “Subsidiary” or “Subsidiaries” herein shall refer to those of the Borrower.
“Subsidiary Guarantors” means, collectively, (a) the Subsidiaries of the Borrower listed on Schedule 7.1 that are identified as a “Guarantor” and (b) each other Subsidiary of the Borrower that shall be required to execute and deliver a guaranty or guaranty supplement pursuant to Section 8.13.
“Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.
“Swingline Commitment” means the lesser of (a) Twenty-Five Million Dollars ($25,000,000) and (b) the Revolving Credit Commitment.
“Swingline Facility” means the swingline facility established pursuant to Section 2.2.
“Swingline Lender” means Wells Fargo in its capacity as swingline lender hereunder or any successor thereto.
“Swingline Loan” means any swingline loan made by the Swingline Lender to the Borrower pursuant to Section 2.2, and all such swingline loans collectively as the context requires.

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“Swingline Note” means a promissory note made by the Borrower in favor of the Swingline Lender, if requested, evidencing the Swingline Loans made by the Swingline Lender, substantially in the form attached as Exhibit A-2, and any substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part.
“Synthetic Lease” means any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing product where such transaction is considered borrowed money indebtedness for tax purposes but is classified as an Operating Lease in accordance with GAAP.
“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, fines, additions to tax or penalties applicable thereto.
“Term SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.
“Termination Event” means the occurrence of any of the following which, individually or in the aggregate, has resulted or could reasonably be expected to result in liability of the Borrower in an aggregate amount in excess of the Threshold Amount: (a) a “Reportable Event” described in Section 4043 of ERISA for which the thirty (30) day notice requirement has not been waived by the PBGC, or (b) the withdrawal of any Credit Party or any ERISA Affiliate from a Pension Plan during a plan year in which it was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA, or (c) the termination of a Pension Plan, the filing of a notice of intent to terminate a Pension Plan or the treatment of a Pension Plan amendment as a termination, under Section 4041 of ERISA, if the plan assets are not sufficient to pay all plan liabilities, or (d) the institution of proceedings to terminate, or the appointment of a trustee with respect to, any Pension Plan by the PBGC, or (e) any other event or condition which would constitute grounds under Section 4042(a) of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan, or (f) the imposition of a Lien pursuant to Section 430(k) of the Code or Section 303 of ERISA, or (g) the determination that any Pension Plan or Multiemployer Plan is considered an at-risk plan or plan in endangered or critical status with the meaning of Sections 430, 431 or 432 of the Code or Sections 303, 304 or 305 of ERISA or (h) the partial or complete withdrawal of any Credit Party or any ERISA Affiliate from a Multiemployer Plan if withdrawal liability is asserted by such plan, or (i) any event or condition which results in the reorganization or insolvency of a Multiemployer Plan under Sections 4241 or 4245 of ERISA, or (j) any event or condition which results in the termination of a Multiemployer Plan under Section 4041A of ERISA or the institution by PBGC of proceedings to terminate a Multiemployer Plan under Section 4042 of ERISA, or (k) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon any Credit Party or any ERISA Affiliate.
“Threshold Amount” means $25,000,000.
“Total Credit Exposure” means, as to any Lender at any time, the unused Commitments, Revolving Credit Exposure and outstanding Incremental Term Loans of such Lender at such time.
“Trade Date” has the meaning assigned thereto in Section 12.9(h)(i).
“Transaction Costs” means all non-recurring transaction fees, charges and other amounts related to (i) the Transactions, (ii) any Permitted Acquisitions and (iii) any offerings of Equity Interests, Investments, Asset Dispositions, Restricted Payments, recapitalizations or incurrence of Indebtedness, in each case permitted hereunder (including, without limitation, any financing fees, merger and acquisition fees, legal 

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fees and expenses, due diligence fees or any other fees and expenses in connection therewith), in each case to the extent paid within twelve (12) months of the closing of the Credit Facility or such other transaction, as applicable, and approved by the Administrative Agent in its reasonable discretion.  The term “Transaction Costs” shall also include transactions of the type described in clauses (ii) and (iii) above that are not consummated.
“Transactions” means, collectively, (a) the initial Extensions of Credit and (b) the payment of the Transaction Costs incurred in connection with the foregoing.
“UCC” means the Uniform Commercial Code as in effect in the State of New York.
“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.
“United States” means the United States of America.
“U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.
“U.S. Tax Compliance Certificate” has the meaning assigned thereto in Section 5.11(g).
“Wells Fargo” means Wells Fargo Bank, National Association, a national banking association.
“Wholly-Owned” means, with respect to a Subsidiary, that all of the Equity Interests of such Subsidiary are, directly or indirectly, owned or controlled by the Borrower and/or one or more of its Wholly-Owned Subsidiaries (except for directors’ qualifying shares or other shares required by Applicable Law to be owned by a Person other than the Borrower and/or one or more of its Wholly-Owned Subsidiaries). 
“Withholding Agent” means any Credit Party and the Administrative Agent.
“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.
SECTION 1.2    Other Definitions and Provisions.  With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document: (a) the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined, (b) whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms, (c) the words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”, (d) the word “will” shall be construed to have the same meaning and effect as the word “shall”, (e) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (f) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (g) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (h) 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, (i) the term “documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form and (j) in the computation of periods of time from a specified date to 

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a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including”.
SECTION 1.3    Accounting Terms.
(a)    All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with GAAP, applied on a consistent basis, as in effect from time to time and in a manner consistent with that used in preparing the audited financial statements required by Section 8.1(a), except as otherwise specifically prescribed herein.  Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded.
(b)    If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP; provided, further that (A) for purposes of the definitions of “Indebtedness”, all obligations of any Person that are or would have been treated as operating leases for purposes of GAAP prior to the effectiveness of FASB ASC 842 shall continue to be accounted for as operating leases for purposes of all financial definitions and calculations for purpose of this Agreement (whether or not such operating lease obligations were in effect on such date) notwithstanding the fact that such obligations are required in accordance with FASB ASC 842 (on a prospective or retroactive basis or otherwise) to be treated as Capital Lease Obligations in the financial statements and (B) all financial statements delivered to the Administrative Agent hereunder shall contain a schedule showing the modifications necessary to reconcile the adjustments made pursuant to clause (A) above with such financial statements.
SECTION 1.4    UCC Terms.  Terms defined in the UCC in effect on the Closing Date and not otherwise defined herein shall, unless the context otherwise indicates, have the meanings provided by those definitions.  Subject to the foregoing, the term “UCC” refers, as of any date of determination, to the UCC then in effect.
SECTION 1.5    Rounding.  Any financial ratios required to be maintained pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio or percentage is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).
SECTION 1.6    References to Agreement and Laws.  Unless otherwise expressly provided herein, (a) any definition or reference to formation documents, governing documents, agreements (including the Loan Documents) and other contractual documents or instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not 

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prohibited by any Loan Document; and (b) any definition or reference to any Applicable Law, including, without limitation, Anti-Corruption Laws, Anti-Money Laundering Laws, the Bankruptcy Code of the United States of America, the Code, the Commodity Exchange Act, ERISA, the Exchange Act, the PATRIOT Act, the Securities Act of 1933, the UCC, the Investment Company Act of 1940, the Interstate Commerce Act, the Trading with the Enemy Act of the United States or any of the foreign assets control regulations of the United States Treasury Department, shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Applicable Law.
SECTION 1.7    Times of Day.  Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).
SECTION 1.8    Letter of Credit Amounts.  Unless otherwise specified, all references herein to the amount of a Letter of Credit at any time shall be deemed to mean the maximum face amount of such Letter of Credit after giving effect to all increases thereof contemplated by such Letter of Credit or the Letter of Credit Application therefor (at the time specified therefor in such applicable Letter of Credit or Letter of Credit Application and as such amount may be reduced by (a) any permanent reduction of such Letter of Credit or (b) any amount which is drawn, reimbursed and no longer available under such Letter of Credit).
SECTION 1.9    Guarantees/Earn-outs.  Unless otherwise specified, (a) the amount of any Guarantee 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 Guarantee and (b) the amount of any earn-out or similar obligation shall be the amount of such obligation as reflected on the balance sheet of such Person in accordance with GAAP.
SECTION 1.10    Covenant Compliance Generally.  For purposes of determining compliance under Sections 9.1, 9.2, 9.3, 9.5 and 9.6, any amount in a currency other than Dollars will be converted to Dollars in a manner consistent with that used in calculating Consolidated Net Income in the most recent annual financial statements of the Borrower and its Subsidiaries delivered pursuant to Section 8.1(a).  Notwithstanding the foregoing, for purposes of determining compliance with Sections 9.1, 9.2 and 9.3, with respect to any amount of Indebtedness or Investment in a currency other than Dollars, no breach of any basket contained in such sections shall be deemed to have occurred solely as a result of changes in rates of exchange occurring after the time such Indebtedness or Investment is incurred; provided that for the avoidance of doubt, the foregoing provisions of this Section 1.10 shall otherwise apply to such Sections, including with respect to determining whether any Indebtedness or Investment may be incurred at any time under such Sections.
SECTION 1.11    Limited Condition Acquisitions.  In the event that the Borrower notifies the Administrative Agent in writing that any proposed Acquisition is a Limited Condition Acquisition and that the Borrower wishes to test the conditions to such Acquisition and the Indebtedness that is to be used to finance such Acquisition in accordance with this Section 1.11, then, so long as agreed to by the Administrative Agent and the lenders providing such Indebtedness, the following provisions shall apply:
(a)    any condition to such Limited Condition Acquisition or such Indebtedness that requires that no Default or Event of Default shall have occurred and be continuing at the time of such Limited Condition Acquisition or the incurrence of such Indebtedness, shall be satisfied if (i) no Default or Event of Default shall have occurred and be continuing at the time of the execution of the definitive purchase agreement, merger agreement or other acquisition agreement governing such Limited Condition Acquisition (the “LCA Test Date”) and (ii) no Event of Default under any of Sections 10.1(a), 10.1(b), 10.1(h) or 10.1(i) shall have 

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occurred and be continuing both before and after giving effect to such Limited Condition Acquisition and any Indebtedness incurred in connection therewith (including such additional Indebtedness);
(b)    any condition to such Limited Condition Acquisition or such Indebtedness that the representations and warranties in this Agreement and the other Loan Documents shall be true and correct at the time of consummation of such Limited Condition Acquisition or the incurrence of such Indebtedness shall be deemed satisfied if (i) all representations and warranties in this Agreement and the other Loan Documents are true and correct in all material respects (except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects) as of the LCA Test Date, or if such representation speaks as of an earlier date, as of such earlier date and (ii) as of the date of consummation of such Limited Condition Acquisition, (A) the representations and warranties under the relevant definitive agreement governing such Limited Condition Acquisition as are material to the lenders providing such Indebtedness shall be true and correct, but only to the extent that the Borrower or its applicable Subsidiary has the right to terminate its obligations under such agreement or otherwise decline to close such Limited Condition Acquisition as a result of a breach of such representations and warranties or the failure of those representations and warranties to be true and correct and (B) certain of the representations and warranties in this Agreement and the other Loan Documents which are customary for similar “funds certain” financings and required by the lenders providing such Indebtedness shall be true and correct in all material respects (except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects); 
(c)    any financial ratio test or condition to be tested in connection with such Limited Condition Acquisition and the availability of such Indebtedness will be tested as of the LCA Test Date, in each case, after giving effect to the relevant Limited Condition Acquisition and related incurrence of Indebtedness, on a Pro Forma Basis where applicable, and, for the avoidance of doubt, (i) such ratios and baskets shall not be tested at the time of consummation of such Limited Condition Acquisition and (ii) if any of such ratios are exceeded or conditions are not met following the LCA Test Date, but prior to the closing of such Limited Condition Acquisition, as a result of fluctuations in such ratio or amount (including due to fluctuations in Consolidated EBITDA of the Borrower or the Person subject to such Limited Condition Acquisition), at or prior to the consummation of the relevant transaction or action, such ratios will not be deemed to have been exceeded and such conditions will not be deemed unmet as a result of such fluctuations solely for purposes of determining whether the relevant transaction or action is permitted to be consummated or taken; and
(d)    except as provided in the next sentence, in connection with any subsequent calculation of any ratio or basket on or following the relevant LCA Test Date and prior to the earlier of the date on which such Limited Condition Acquisition is consummated and the date that the definitive agreement for such Limited Condition Acquisition is terminated or expires without consummation of such Limited Condition Acquisition, any such ratio or basket shall be calculated (i) on a Pro Forma Basis assuming such Limited Condition Acquisition and other transactions in connection therewith (including the incurrence or assumption of Indebtedness) have been consummated and (ii) assuming such Limited Condition Acquisition and other transactions in connection therewith (including the incurrence or assumption of Indebtedness) have not been consummated; provided that, notwithstanding the foregoing, any calculation of a ratio in connection with determining the Applicable Margin and determining whether or not the Borrower is in compliance with the financial covenants set forth in Section 9.13 shall, in each case be calculated assuming such Limited Condition Acquisition and other transactions in connection therewith (including the incurrence or assumption of Indebtedness) have not been consummated.

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The foregoing provisions shall apply with similar effect during the pendency of multiple Limited Condition Acquisitions such that each of the possible scenarios is separately tested.  Notwithstanding anything to the contrary herein, in no event shall there be more than two Limited Condition Acquisitions at any time outstanding.

SECTION 1.12    Rates.  The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the rates in the definition of “LIBOR” or with respect to any rate that is an alternative or replacement for or successor to any such rate (including, without limitation, any Benchmark Replacement) or the effect of any of the foregoing, or of any Benchmark Replacement Conforming Changes.  
SECTION 1.13    Divisions.  For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.
ARTICLE II     
 
REVOLVING CREDIT FACILITY
SECTION 2.1    Revolving Credit Loans.  Subject to the terms and conditions of this Agreement and the other Loan Documents, and in reliance upon the representations and warranties set forth in this Agreement and the other Loan Documents, each Revolving Credit Lender severally agrees to make Revolving Credit Loans to the Borrower from time to time from the Closing Date to, but not including, the Revolving Credit Maturity Date as requested by the Borrower in accordance with the terms of Section 2.3; provided, that (a) after the Closing Date, the Revolving Credit Outstandings shall not exceed the Revolving Credit Commitment and (b) the Revolving Credit Exposure of any Revolving Credit Lender shall not at any time exceed such Revolving Credit Lender’s Revolving Credit Commitment.  Each Revolving Credit Loan by a Revolving Credit Lender shall be in a principal amount equal to such Revolving Credit Lender’s Revolving Credit Commitment Percentage of the aggregate principal amount of Revolving Credit Loans requested on such occasion.  Subject to the terms and conditions hereof, the Borrower may borrow, repay and reborrow Revolving Credit Loans hereunder until the Revolving Credit Maturity Date.
SECTION 2.2    Swingline Loans.
(a)    Availability.  Subject to the terms and conditions of this Agreement and the other Loan Documents, including, without limitation, Section 6.2(d) of this Agreement, and in reliance upon the representations and warranties set forth in this Agreement and the other Loan Documents, the Swingline Lender may, in its sole discretion, make Swingline Loans to the Borrower from time to time from the Closing Date to, but not including, the Revolving Credit Maturity Date; provided, that (i) after giving effect to any amount requested, the Revolving Credit Outstandings shall not exceed the Revolving Credit Commitment and (ii) the aggregate principal amount of all outstanding Swingline Loans (after giving effect to any amount requested) shall not exceed the Swingline Commitment.  
(b)    Refunding.
(i)    The Swingline Lender, at any time and from time to time in its sole and absolute discretion may, on behalf of the Borrower (which hereby irrevocably directs the Swingline Lender 

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to act on its behalf), by written notice given no later than 11:00 a.m. on any Business Day request each Revolving Credit Lender to make, and each Revolving Credit Lender hereby agrees to make, a Revolving Credit Loan as a Base Rate Loan in an amount equal to such Revolving Credit Lender’s Revolving Credit Commitment Percentage of the aggregate amount of the Swingline Loans outstanding on the date of such notice, to repay the Swingline Lender.  Each Revolving Credit Lender shall make the amount of such Revolving Credit Loan available to the Administrative Agent in immediately available funds at the Administrative Agent’s Office not later than 1:00 p.m. on the day specified in such notice.  The proceeds of such Revolving Credit Loans shall be immediately made available by the Administrative Agent to the Swingline Lender for application by the Swingline Lender to the repayment of the Swingline Loans.  No Revolving Credit Lender’s obligation to fund its respective Revolving Credit Commitment Percentage of a Swingline Loan shall be affected by any other Revolving Credit Lender’s failure to fund its Revolving Credit Commitment Percentage of a Swingline Loan, nor shall any Revolving Credit Lender’s Revolving Credit Commitment Percentage be increased as a result of any such failure of any other Revolving Credit Lender to fund its Revolving Credit Commitment Percentage of a Swingline Loan.
(ii)    The Borrower shall pay to the Swingline Lender on demand in immediately available funds the amount of such Swingline Loans to the extent amounts received from the Revolving Credit Lenders are not sufficient to repay in full the outstanding Swingline Loans requested or required to be refunded.  In addition, the Borrower irrevocably authorizes the Administrative Agent to charge any account maintained by the Borrower with the Swingline Lender (up to the amount available therein) in order to immediately pay the Swingline Lender the amount of such Swingline Loans to the extent amounts received from the Revolving Credit Lenders are not sufficient to repay in full the outstanding Swingline Loans requested or required to be refunded.  If any portion of any such amount paid to the Swingline Lender shall be recovered by or on behalf of the Borrower from the Swingline Lender in bankruptcy or otherwise, the loss of the amount so recovered shall be ratably shared among all the Revolving Credit Lenders in accordance with their respective Revolving Credit Commitment Percentages.
(iii)    If for any reason any Swingline Loan cannot be refinanced with a Revolving Credit Loan pursuant to Section 2.2(b)(i), each Revolving Credit Lender shall, on the date such Revolving Credit Loan was to have been made pursuant to the notice referred to in Section 2.2(b)(i), purchase for cash an undivided participating interest in the then outstanding Swingline Loans by paying to the Swingline Lender an amount (the “Swingline Participation Amount”) equal to such Revolving Lender’s Revolving Credit Commitment Percentage of the aggregate principal amount of Swingline Loans then outstanding.  Each Revolving Credit Lender will immediately transfer to the Swingline Lender, in immediately available funds, the amount of its Swingline Participation Amount.  Whenever, at any time after the Swingline Lender has received from any Revolving Credit Lender such Revolving Credit Lender’s Swingline Participation Amount, the Swingline Lender receives any payment on account of the Swingline Loans, the Swingline Lender will distribute to such Revolving Credit Lender its Swingline Participation Amount (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s participating interest was outstanding and funded and, in the case of principal and interest payments, to reflect such Revolving Credit Lender’s pro rata portion of such payment if such payment is not sufficient to pay the principal of and interest on all Swingline Loans then due); provided that in the event that such payment received by the Swingline Lender is required to be returned, such Revolving Credit Lender will return to the Swingline Lender any portion thereof previously distributed to it by the Swingline Lender.

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(iv)    Each Revolving Credit Lender’s obligation to make the Revolving Credit Loans referred to in Section 2.2(b)(i) and to purchase participating interests pursuant to Section 2.2(b)(iii) shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right that such Revolving Credit Lender or the Borrower may have against the Swingline Lender, the Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy any of the other conditions specified in Article VI, (C) any adverse change in the condition (financial or otherwise) of the Borrower, (D) any breach of this Agreement or any other Loan Document by the Borrower, any other Credit Party or any other Revolving Credit Lender or (E) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.
(v)    If any Revolving Credit Lender fails to make available to the Administrative Agent for the account of the Swingline Lender any amount required to be paid by such Revolving Credit Lender pursuant to the foregoing provisions of this Section 2.04(c) by the time specified in Section 2.04(c)(i), the Swingline Lender shall be entitled to recover from such Revolving Credit Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swingline Lender at a rate per annum equal to the applicable Federal Funds Rate, plus any administrative, processing or similar fees customarily charged by the Swingline Lender in connection with the foregoing.  If such Revolving Credit Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Revolving Credit Lender’s Revolving Credit Loan or Swingline Participation Amount, as the case may be.  A certificate of the Swingline Lender submitted to any Revolving Credit Lender (through the Administrative Agent) with respect to any amounts owing under this clause (v) shall be conclusive absent manifest error.
(c)    Defaulting Lenders.  Notwithstanding anything to the contrary contained in this Agreement, this Section 2.2 shall be subject to the terms and conditions of Section 5.13 and Section 5.14.
SECTION 2.3    Procedure for Advances of Revolving Credit Loans and Swingline Loans.
(a)    Requests for Borrowing.  The Borrower shall give the Administrative Agent irrevocable prior written notice substantially in the form of Exhibit B (a “Notice of Borrowing”) (which may be delivered through the Administrative Agent’s electronic platform or portal) not later than 11:00 a.m. (i) on the same Business Day as each Swingline Loan, (ii) at least one (1) Business Day before each Base Rate Loan and (iii) at least three (3) Business Days before each LIBOR Rate Loan, of its intention to borrow, specifying (A) the date of such borrowing, which shall be a Business Day, (B) the amount of such borrowing, which shall be, (x) with respect to Base Rate Loans (other than Swingline Loans) in an aggregate principal amount of $3,000,000 or a whole multiple of $1,000,000 in excess thereof, (y) with respect to LIBOR Rate Loans in an aggregate principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof and (z) with respect to Swingline Loans in an aggregate principal amount of $500,000 or a whole multiple of $100,000 in excess thereof, (C) whether such Loan is to be a Revolving Credit Loan or Swingline Loan, (D) in the case of a Revolving Credit Loan whether the Loans are to be LIBOR Rate Loans or Base Rate Loans, and (E) in the case of a LIBOR Rate Loan, the duration of the Interest Period applicable thereto.  If the Borrower fails to specify a type of Loan in a Notice of Borrowing, then the applicable Loans shall be made as Base Rate Loans.  If the Borrower requests a Borrowing of LIBOR Rate Loans in any such Notice of Borrowing, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.  A Notice of Borrowing received after 11:00 a.m. shall be deemed received on the next Business Day.  The Administrative Agent shall promptly notify the Revolving Credit Lenders of each Notice of 

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Borrowing.  All borrowing requests that are not made on-line via the Administrative Agent’s electronic platform or portal shall be subject to (and unless the Administrative Agent elects otherwise, in its sole discretion, such borrowings shall not be made until the completion of) the Administrative Agent’s authentication process (with results satisfactory to the Administrative Agent) prior to the funding of any such requested Revolving Credit Loan or Swingline Loan, as applicable. 
(b)    Disbursement of Revolving Credit and Swingline Loans.  Not later than 1:00 p.m. on the proposed borrowing date, (i) each Revolving Credit Lender will make available to the Administrative Agent, for the account of the Borrower, at the office of the Administrative Agent in funds immediately available to the Administrative Agent, such Revolving Credit Lender’s Revolving Credit Commitment Percentage of the Revolving Credit Loans to be made on such borrowing date and (ii) the Swingline Lender will make available to the Administrative Agent, for the account of the Borrower, at the office of the Administrative Agent in funds immediately available to the Administrative Agent, the Swingline Loans to be made on such borrowing date.  The Borrower hereby irrevocably authorizes the Administrative Agent to disburse the proceeds of each borrowing requested pursuant to this Section in immediately available funds by crediting or wiring such proceeds to the deposit account of the Borrower identified in the most recent notice substantially in the form attached as Exhibit C (a “Notice of Account Designation”) delivered by the Borrower to the Administrative Agent or as may be otherwise agreed upon by the Borrower and the Administrative Agent from time to time.  Subject to Section 5.7 hereof, the Administrative Agent shall not be obligated to disburse the portion of the proceeds of any Revolving Credit Loan requested pursuant to this Section to the extent that any Revolving Credit Lender has not made available to the Administrative Agent its Revolving Credit Commitment Percentage of such Loan.  Revolving Credit Loans to be made for the purpose of refunding Swingline Loans shall be made by the Revolving Credit Lenders as provided in Section 2.2(b).
SECTION 2.4    Repayment and Prepayment of Revolving Credit and Swingline Loans.
(a)    Repayment on Termination Date.  The Borrower hereby agrees to repay the outstanding principal amount of (i) all Revolving Credit Loans in full on the Revolving Credit Maturity Date, and (ii) all Swingline Loans in accordance with Section 2.2(b) (but, in any event, no later than the earlier to occur of (A) the date five Business Days after such Swingline Loan is made and (B) the Revolving Credit Maturity Date), together, in each case, with all accrued but unpaid interest thereon.
(b)    Mandatory Prepayments.  If at any time the Revolving Credit Outstandings exceed the Revolving Credit Commitment, the Borrower agrees to repay immediately upon notice from the Administrative Agent, by payment to the Administrative Agent for the account of the Revolving Credit Lenders, Extensions of Credit in an amount equal to such excess with each such repayment applied first, to the principal amount of outstanding Swingline Loans, second to the principal amount of outstanding Revolving Credit Loans and third, with respect to any Letters of Credit then outstanding, a payment of Cash Collateral into a Cash Collateral account opened by the Administrative Agent, for the benefit of the Revolving Credit Lenders, in an amount equal to such excess (such Cash Collateral to be applied in accordance with Section 10.2(b)).
(c)    Optional Prepayments.  The Borrower may at any time and from time to time prepay Revolving Credit Loans and Swingline Loans, in whole or in part, with irrevocable prior written notice to the Administrative Agent substantially in the form attached as Exhibit D (a “Notice of Prepayment”) given not later than 11:00 a.m. (i) on the same Business Day as each Base Rate Loan and each Swingline Loan and (ii) at least three (3) Business Days before each LIBOR Rate Loan, specifying the date and amount of prepayment and whether the prepayment is of LIBOR Rate Loans, Base Rate Loans, Swingline Loans or a combination thereof, and, if of a combination thereof, the amount allocable to each.  Upon receipt of such 

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notice, the Administrative Agent shall promptly notify each Revolving Credit Lender.  If any such notice is given, the amount specified in such notice shall be due and payable on the date set forth in such notice.  Partial prepayments shall be in an aggregate amount of $3,000,000 or a whole multiple of $1,000,000 in excess thereof with respect to Base Rate Loans (other than Swingline Loans), $5,000,000 or a whole multiple of $1,000,000 in excess thereof with respect to LIBOR Rate Loans and $500,000 or a whole multiple of $100,000 in excess thereof with respect to Swingline Loans.  A Notice of Prepayment received after 11:00 a.m. shall be deemed received on the next Business Day.  Each such repayment shall be accompanied by any amount required to be paid pursuant to Section 5.9 hereof.  Notwithstanding the foregoing, any Notice of Prepayment delivered in connection with any refinancing of all of the Credit Facility with the proceeds of such refinancing or of any incurrence of Indebtedness, may be, if expressly so stated to be, contingent upon the consummation of such refinancing or incurrence and may be revoked by the Borrower in the event such refinancing is not consummated (provided that the failure of such contingency shall not relieve the Borrower from its obligations in respect thereof under Section 5.9).
(d)    Limitation on Prepayment of LIBOR Rate Loans.  The Borrower may not prepay any LIBOR Rate Loan on any day other than on the last day of the Interest Period applicable thereto unless such prepayment is accompanied by any amount required to be paid pursuant to Section 5.9 hereof.
(e)    Hedge Agreements.  No repayment or prepayment of the Loans pursuant to this Section shall affect any of the Borrower’s obligations under any Hedge Agreement entered into with respect to the Loans.
(f)    Prepayment of Excess Proceeds.  In the event proceeds remain after any mandatory prepayments of any Incremental Term Loan Facility, if applicable, the amount of such excess proceeds shall be used on the date of the required prepayment under such Incremental Term Loan Facility to prepay the outstanding principal amount of the Revolving Credit Loans, without a corresponding reduction of the Revolving Credit Commitment, with remaining proceeds, if any, refunded to the Borrower.
SECTION 2.5    Permanent Reduction of the Revolving Credit Commitment.
(a)    Voluntary Reduction.  The Borrower shall have the right at any time and from time to time, upon at least five (5) Business Days prior irrevocable written notice to the Administrative Agent, to permanently reduce, without premium or penalty, (i) the entire Revolving Credit Commitment at any time or (ii) portions of the Revolving Credit Commitment, from time to time, in an aggregate principal amount not less than $3,000,000 or any whole multiple of $1,000,000 in excess thereof.  Any reduction of the Revolving Credit Commitment shall be applied to the Revolving Credit Commitment of each Revolving Credit Lender according to its Revolving Credit Commitment Percentage.  All Commitment Fees accrued until the effective date of any termination of the Revolving Credit Commitment shall be paid on the effective date of such termination.  Notwithstanding the foregoing, any notice to reduce the Revolving Credit Commitment delivered in connection with any refinancing of all of the Credit Facility with the proceeds of such refinancing or of any incurrence of Indebtedness, may be, if expressly so stated to be, contingent upon the consummation of such refinancing or incurrence and may be revoked by the Borrower in the event such refinancing is not consummated (provided that the failure of such contingency shall not relieve the Borrower from its obligations in respect thereof under Section 5.9).
(b)    Corresponding Payment.  Each permanent reduction permitted pursuant to this Section shall be accompanied by a payment of principal sufficient to reduce the aggregate outstanding Revolving Credit Loans, Swingline Loans and L/C Obligations, as applicable, after such reduction to the Revolving Credit Commitment as so reduced, and if the aggregate amount of all outstanding Letters of Credit exceeds the 

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Revolving Credit Commitment as so reduced, the Borrower shall be required to deposit Cash Collateral in a Cash Collateral account opened by the Administrative Agent in an amount equal to such excess.  Such Cash Collateral shall be applied in accordance with Section 10.2(b).  Any reduction of the Revolving Credit Commitment to zero shall be accompanied by payment of all outstanding Revolving Credit Loans and Swingline Loans (and furnishing of Cash Collateral satisfactory to the Administrative Agent for all L/C Obligations) and shall result in the termination of the Revolving Credit Commitment and the Swingline Commitment and the Revolving Credit Facility.  If the reduction of the Revolving Credit Commitment requires the repayment of any LIBOR Rate Loan, such repayment shall be accompanied by any amount required to be paid pursuant to Section 5.9 hereof.
SECTION 2.6    Termination of Revolving Credit Facility.  The Revolving Credit Facility and the Revolving Credit Commitments shall terminate on the Revolving Credit Maturity Date.
ARTICLE III     
 
LETTER OF CREDIT FACILITY
SECTION 3.1    L/C Facility.
(a)    Availability.  Subject to the terms and conditions hereof, the Issuing Lender, in reliance on the agreements of the Revolving Credit Lenders set forth in Section 3.4(a), agrees to issue standby Letters of Credit in an aggregate amount not to exceed its L/C Commitment for the account of the Borrower or, subject to Section 3.8, any Subsidiary thereof, Letters of Credit may be issued on any Business Day from the Closing Date to, but not including the thirtieth (30th) Business Day prior to the Revolving Credit Maturity Date in such form as may be approved from time to time by the Issuing Lender; provided, that no Issuing Lender shall issue any Letter of Credit if, after giving effect to such issuance, (a) the L/C Obligations would exceed the L/C Sublimit or (b) the Revolving Credit Outstandings would exceed the Revolving Credit Commitment.  Each Letter of Credit shall (i) be denominated in Dollars in a minimum amount of $100,000 (or such lesser amount as agreed to by the Issuing Lender and the Administrative Agent), (ii) expire on a date no more than twelve (12) months after the date of issuance or last renewal of such Letter of Credit (subject to automatic renewal for additional one (1) year periods pursuant to the terms of the Letter of Credit Application or other documentation acceptable to the Issuing Lender), which date shall be no later than the fifth (5th) Business Day prior to the Revolving Credit Maturity Date and (iii) be subject to the ISP98 as set forth in the Letter of Credit Application or as determined by the Issuing Lender and, to the extent not inconsistent therewith, the laws of the State of New York.  The Issuing Lender shall not at any time be obligated to issue any Letter of Credit hereunder if (A) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such Issuing Lender from issuing such Letter of Credit, or any Applicable Law applicable to such Issuing Lender or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over such Issuing Lender shall prohibit, or request that such Issuing Lender refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such Issuing Lender with respect to letters of credit generally or such Letter of Credit in particular any restriction or reserve or capital requirement (for which such Issuing Lender is not otherwise compensated) not in effect on the Closing Date, or any unreimbursed loss, cost or expense that was not applicable, in effect as of the Closing Date and that such Issuing Lender in good faith deems material to it, or (B) the conditions set forth in Section 6.2 are not satisfied.  References herein to “issue” and derivations thereof with respect to Letters of Credit shall also include extensions or modifications of any outstanding Letters of Credit, unless the context otherwise requires.  

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(b)    Defaulting Lenders.  Notwithstanding anything to the contrary contained in this Agreement, Article III shall be subject to the terms and conditions of Section 5.13 and Section 5.14.
SECTION 3.2    Procedure for Issuance of Letters of Credit.  The Borrower may from time to time request that the Issuing Lender issue a Letter of Credit by delivering to such Issuing Lender at its applicable office (with a copy to the Administrative Agent at the Administrative Agent’s Office) a Letter of Credit Application therefor, which shall be delivered via facsimile other electronic method of transmission reasonably acceptable to the Administrative Agent and the Issuing Lender, completed to the satisfaction of the Administrative Agent and the Issuing Lender, and such other certificates, documents and other papers and information as the Administrative Agent or the Issuing Lender may request.  Upon receipt of any Letter of Credit Application, the Issuing Lender shall process such Letter of Credit Application and the certificates, documents and other papers and information delivered to it in connection therewith in accordance with its customary procedures (including, without limitation, its authentication process) and shall, subject to Section 3.1, Article VI and the satisfactory results of the authentication process of the Issuing Lender, promptly issue the Letter of Credit requested thereby (but in no event shall such Issuing Lender be required to issue any Letter of Credit earlier than three (3) Business Days after its receipt of the Letter of Credit Application therefor and all such other certificates, documents and other papers and information relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or as otherwise may be agreed by such Issuing Lender and the Borrower.  The Issuing Lender shall promptly furnish to the Borrower and the Administrative Agent a copy of such Letter of Credit and the Administrative Agent shall promptly notify each Revolving Credit Lender of the issuance and upon request by any Lender, furnish to such Revolving Credit Lender a copy of such Letter of Credit and the amount of such Revolving Credit Lender’s participation therein.
SECTION 3.3    Commissions and Other Charges.
(a)    Letter of Credit Commissions.  Subject to Section 5.14(a)(iii)(B), the Borrower shall pay to the Administrative Agent, for the account of the Issuing Lender and the L/C Participants, a letter of credit commission with respect to each Letter of Credit in the amount equal to the daily amount available to be drawn under such standby Letters of Credit times the Applicable Margin with respect to Revolving Credit Loans that are LIBOR Rate Loans (determined, in each case, on a per annum basis).  Such commission shall be payable quarterly in arrears on the last Business Day of each calendar quarter, on the Revolving Credit Maturity Date and thereafter on demand of the Administrative Agent.  The Administrative Agent shall, promptly following its receipt thereof, distribute to the Issuing Lender and the L/C Participants all commissions received pursuant to this Section 3.3 in accordance with their respective Revolving Credit Commitment Percentages.
(b)    Issuance Fee.  In addition to the foregoing commission, the Borrower shall pay directly to the Issuing Lender, for its own account, an issuance fee with respect to each Letter of Credit issued by such Issuing Lender as set forth in the Engagement Letter.  Such issuance fee shall be payable quarterly in arrears on the last Business Day of each calendar quarter commencing with the first such date to occur after the issuance of such Letter of Credit, on the Revolving Credit Maturity Date and thereafter on demand of the Issuing Lender.
(c)    Other Fees, Costs, Charges and Expenses.  In addition to the foregoing fees and commissions, the Borrower shall pay or reimburse each Issuing Lender for such normal and customary fees, costs, charges and expenses as are incurred or charged by such Issuing Lender in issuing, effecting payment under, amending or otherwise administering any Letter of Credit issued by it.

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SECTION 3.4    L/C Participations.
(a)    Each Issuing Lender irrevocably agrees to grant and hereby grants to each L/C Participant, and, to induce each Issuing Lender to issue Letters of Credit hereunder, each L/C Participant irrevocably agrees to accept and purchase and hereby accepts and purchases from each Issuing Lender, on the terms and conditions hereinafter stated, for such L/C Participant’s own account and risk an undivided interest equal to such L/C Participant’s Revolving Credit Commitment Percentage in each Issuing Lender’s obligations and rights under and in respect of each Letter of Credit issued by it hereunder and the amount of each draft paid by such Issuing Lender thereunder.  Each L/C Participant unconditionally and irrevocably agrees with each Issuing Lender that, if a draft is paid under any Letter of Credit issued by such Issuing Lender for which such Issuing Lender is not reimbursed in full by the Borrower through a Revolving Credit Loan or otherwise in accordance with the terms of this Agreement, such L/C Participant shall pay to such Issuing Lender upon demand at such Issuing Lender’s address for notices specified herein an amount equal to such L/C Participant’s Revolving Credit Commitment Percentage of the amount of such draft, or any part thereof, which is not so reimbursed.
(b)    Upon becoming aware of any amount required to be paid by any L/C Participant to the Issuing Lender pursuant to Section 3.4(a) in respect of any unreimbursed portion of any payment made by such Issuing Lender under any Letter of Credit, issued by it, such Issuing Lender shall notify the Administrative Agent of such unreimbursed amount and the Administrative Agent shall notify each L/C Participant (with a copy to the Issuing Lender) of the amount and due date of such required payment and such L/C Participant shall pay to the Administrative Agent (which, in turn shall pay such Issuing Lender) the amount specified on the applicable due date.  If any such amount is paid to such Issuing Lender after the date such payment is due, such L/C Participant shall pay to such Issuing Lender on demand, in addition to such amount, the product of (i) such amount, times (ii) the daily average Federal Funds Rate as determined by the Administrative Agent during the period from and including the date such payment is due to the date on which such payment is immediately available to such Issuing Lender, times (iii) a fraction the numerator of which is the number of days that elapse during such period and the denominator of which is 360.  A certificate of such Issuing Lender with respect to any amounts owing under this Section shall be conclusive in the absence of manifest error.  With respect to payment to such Issuing Lender of the unreimbursed amounts described in this Section, if the L/C Participants receive notice that any such payment is due (A) prior to 1:00 p.m. on any Business Day, such payment shall be due that Business Day, and (B) after 1:00 p.m. on any Business Day, such payment shall be due on the following Business Day.
(c)    Whenever, at any time after the Issuing Lender has made payment under any Letter of Credit issued by it and has received from any L/C Participant its Revolving Credit Commitment Percentage of such payment in accordance with this Section, such Issuing Lender receives any payment related to such Letter of Credit (whether directly from the Borrower or otherwise), or any payment of interest on account thereof, such Issuing Lender will distribute to such L/C Participant its pro rata share thereof; provided, that in the event that any such payment received by such Issuing Lender shall be required to be returned by such Issuing Lender, such L/C Participant shall return to such Issuing Lender the portion thereof previously distributed by such Issuing Lender to it.
(d)    Each L/C Participant’s obligation to make the Revolving Credit Loans referred to in Section 3.4(b) and to purchase participating interests pursuant to Section 3.4(a) shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any setoff, counterclaim, recoupment, defense or other right that such Revolving Credit Lender or the Borrower may have against the Issuing Lender, the Borrower or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy any of the other conditions specified in Article 

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VI, (iii) any adverse change in the condition (financial or otherwise) of the Borrower, (iv) any breach of this Agreement or any other Loan Document by the Borrower, any other Credit Party or any other Revolving Credit Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.
SECTION 3.5    Reimbursement Obligation of the Borrower.  In the event of any drawing under any Letter of Credit, the Borrower agrees to reimburse (either with the proceeds of a Revolving Credit Loan as provided for in this Section or with funds from other sources), in same day funds, the Issuing Lender on each date on which such Issuing Lender notifies the Borrower of the date and amount of a draft paid by it under any Letter of Credit for the amount of (a) such draft so paid and (b) any amounts referred to in Section 3.3(c) incurred by such Issuing Lender in connection with such payment.  Unless the Borrower shall immediately notify such Issuing Lender that the Borrower intends to reimburse such Issuing Lender for such drawing from other sources or funds, the Borrower shall be deemed to have timely given a Notice of Borrowing to the Administrative Agent requesting that the Revolving Credit Lenders make a Revolving Credit Loan as a Base Rate Loan on the applicable repayment date in the amount of (i) such draft so paid and (ii) any amounts referred to in Section 3.3(c) incurred by such Issuing Lender in connection with such payment, and the Revolving Credit Lenders shall make a Revolving Credit Loan as a Base Rate Loan in such amount, the proceeds of which shall be applied to reimburse such Issuing Lender for the amount of the related drawing and such fees and expenses.  Each Revolving Credit Lender acknowledges and agrees that its obligation to fund a Revolving Credit Loan in accordance with this Section to reimburse such Issuing Lender for any draft paid under a Letter of Credit issued by it is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, non-satisfaction of the conditions set forth in Section 2.3(a) or Article VI.  If the Borrower has elected to pay the amount of such drawing with funds from other sources and shall fail to reimburse such Issuing Lender as provided above, or if the amount of such drawing is not fully refunded through a Base Rate Loan as provided above, the unreimbursed amount of such drawing shall bear interest at the rate which would be payable on any outstanding Base Rate Loans which were then overdue from the date such amounts become payable (whether at stated maturity, by acceleration or otherwise) until payment in full.
SECTION 3.6    Obligations Absolute.  The Borrower’s obligations under this Article III (including, without limitation, the Reimbursement Obligation) shall be absolute and unconditional under any and all circumstances and irrespective of any set off, counterclaim or defense to payment which the Borrower may have or have had against the Issuing Lender or any beneficiary of a Letter of Credit or any other Person.  The Borrower also agrees that the Issuing Lender and the L/C Participants shall not be responsible for, and the Borrower’s Reimbursement Obligation under Section 3.5 shall not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute between or among the Borrower and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee.  No Issuing Lender shall be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit issued by it, except for errors or omissions caused by such Issuing Lender’s gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final nonappealable judgment.  The Borrower agrees that any action taken or omitted by the Issuing Lender under or in connection with any Letter of Credit issued by it or the related drafts or documents, if done in the absence of gross negligence or willful misconduct shall be binding on the Borrower and shall not result in any liability of such Issuing Lender or any L/C Participant to the Borrower.  The responsibility of the Issuing Lender to the Borrower in connection with any draft presented for payment under any Letter of Credit issued to it shall, in addition to any payment obligation expressly provided for in such Letter of Credit, be limited to determining that the 

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documents (including each draft) delivered under such Letter of Credit in connection with such presentment substantially conforms to the requirements under such Letter of Credit.
SECTION 3.7    Effect of Letter of Credit Application.  To the extent that any provision of any Letter of Credit Application related to any Letter of Credit is inconsistent with the provisions of this Article III, the provisions of this Article III shall apply.
SECTION 3.8    Letters of Credit Issued for Subsidiaries.  Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, the Borrower shall be obligated to reimburse, or to cause the applicable Subsidiary to reimburse, the Issuing Lender hereunder for any and all drawings under such Letter of Credit.  The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of any of its Subsidiaries inures to the benefit of the Borrower and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries.
ARTICLE IV
INCREMENTAL LOANS
SECTION 4.1    Incremental Loans.
(a)    At any time, the Borrower may by written notice to the Administrative Agent elect to request the establishment of:
(i)    one or more incremental term loan commitments (any such incremental term loan commitment, an “Incremental Term Loan Commitment” and, collectively, the “Incremental Term Loan Commitments”) to make one or more/an additional term loan (any such additional term loan, an “Incremental Term Loan” and, collectively, the “Incremental Term Loans”); or
(ii)    one or more increases in the Revolving Credit Commitments (any such increase, an “Incremental Revolving Credit Commitment” and, collectively, the “Incremental Revolving Credit Commitments” and, together with the Incremental Term Loan Commitments, the “Incremental Loan Commitments”) to make revolving credit loans under the Revolving Credit Facility (any such increase, an “Incremental Revolving Credit Increase” and, collectively, the “Incremental Revolving Credit Increases” and, together with the Incremental Term Loans, the “Incremental Increases”);
provided that (1) the aggregate initial principal amount of such requested Incremental Increase shall not exceed the Incremental Facilities Limit, (2) the total aggregate amount for each Incremental Increase shall not be less than a minimum principal amount of $5,000,000 or, if less, the remaining amount of the Incremental Facilities Limit and (3) the Borrower shall make a maximum of five (5) requests in the aggregate for Incremental Increases.  Each such notice shall specify the date (each, an “Increased Amount Date”) on which the Borrower proposes that any Incremental Increase shall be effective, which shall be a date not less than ten (10) Business Days after the date on which such notice is delivered to Administrative Agent.  The Borrower may invite any Lender, any Affiliate of any Lender and/or any Approved Fund, and/or any other Person reasonably satisfactory to the Administrative Agent, to provide an Incremental Increase (any such Person, an “Incremental Lender”); provided that existing Lenders shall be given the first opportunity to provide such Incremental Increase.  Any proposed Incremental Lender offered or approached to provide all or a portion of any Incremental Increase may elect or decline, in its sole discretion, to provide an Incremental Loan Commitment in connection with such Incremental Increase.  Any Incremental Increase shall become effective as of such Increased Amount Date; provided that:

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(A)    no Default or Event of Default shall exist on such Increased Amount Date before or after giving effect to (1) any Incremental Increase, (2) the making of any Extensions of Credit pursuant thereto and (3) any Permitted Acquisition consummated in connection therewith; provided that, in the case of an Incremental Term Loan incurred solely to finance a substantially concurrent Limited Condition Acquisition, the foregoing condition shall be subject to Section 1.11;
(B)    the Administrative Agent and the Lenders shall have received from the Borrower an Officer’s Compliance Certificate demonstrating, in form and substance reasonably satisfactory to the Administrative Agent, that the Borrower is in compliance with the financial covenants set forth in Section 9.13, in each case based on the financial statements most recently delivered pursuant to Section 8.1(a) or 8.1(b), as applicable, both before and after giving effect (on a Pro Forma Basis) to (x) any Incremental Increase, (y) the making of any Extension of Credit pursuant thereto (with any Incremental Loan Commitment being deemed to be fully funded) and (z) any Permitted Acquisition consummated in connection therewith; provided that, in the case of an Incremental Term Loan incurred solely to finance a substantially concurrent Limited Condition Acquisition, the foregoing condition shall be subject to Section 1.11;
(C)    each of the representations and warranties contained in Article VII shall be true and correct in all material respects, except to the extent any such representation and warranty is qualified by materiality or reference to Material Adverse Effect, in which case, such representation and warranty shall be true, correct and complete in all respects, on such Increased Amount Date with the same effect as if made on and as of such date (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct as of such earlier date); provided that, in the case of an Incremental Term Loan incurred solely to finance a substantially concurrent Limited Condition Acquisition, the foregoing condition shall be subject to Section 1.11;
(D)    the proceeds of any Incremental Increase shall be used for working capital and general corporate purposes of the Borrower and its Subsidiaries (including, without limitation, Permitted Acquisitions);
(E)    each Incremental Increase (and the Extensions of Credit made thereunder) shall constitute Obligations of the Borrower and shall be guaranteed with the other Extensions of Credit on a pari passu basis;
(F)    (1)    in the case of each Incremental Term Loan (the terms of which shall be set forth in the relevant Lender Joinder Agreement):
(w)    such Incremental Term Loan will not in any event have a shorter weighted average life to maturity than the remaining weighted average life to maturity of the then latest maturing existing Incremental Term Loans or a maturity date earlier than the Latest Maturity Date;
(x)    the Applicable Margin and pricing grid, if applicable, for such Incremental Term Loan shall be determined by the Administrative Agent, the applicable Incremental Lenders and the Borrower on the applicable Increased Amount Date; 

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(y)    such Incremental Term Loan may be subject to customary provisions applicable to term loan facilities as determined by the Administrative Agent, the applicable Incremental Lenders and the Borrower, including, without limitation, provisions with respect to call protection, redemption premiums, most favored nation pricing and mandatory prepayments; and  
(z)    except as provided above, all other terms and conditions applicable to any Incremental Term Loan, to the extent not consistent with the terms and conditions applicable to the Revolving Credit Loans, shall be reasonably satisfactory to the Administrative Agent and the Borrower (provided that in no event shall such other terms and conditions be more restrictive, taken as a whole, than those set forth in this Agreement and the other Loan Documents);
(2)    in the case of each Incremental Revolving Credit Increase (the terms of which shall be set forth in the relevant Lender Joinder Agreement):
(x)    such Incremental Revolving Credit Increase shall mature on the Revolving Credit Maturity Date, shall bear interest and be entitled to fees, in each case at the rate applicable to the Revolving Credit Loans, and shall be subject to the same terms and conditions as the Revolving Credit Loans (except for interest rate margins, commitment fees and upfront fees); provided that if the interest rate margins and/or commitment fees in respect of any Incremental Revolving Credit Increase exceed the interest rate margins and/or commitment fees for any other Revolving Credit Commitments, then the interest rate margins and/or commitment fees, as applicable, for such other Revolving Credit Commitments shall be increased so that the interest rate margins and/or commitment fees, as applicable, are equal to the interest rate margins and/or commitment fees for such Incremental Revolving Credit Increase;
(y)    the outstanding Revolving Credit Loans and Revolving Credit Commitment Percentages of Swingline Loans and L/C Obligations will be reallocated by the Administrative Agent on the applicable Increased Amount Date among the Revolving Credit Lenders (including the Incremental Lenders providing such Incremental Revolving Credit Increase) in accordance with their revised Revolving Credit Commitment Percentages (and the Revolving Credit Lenders (including the Incremental Lenders providing such Incremental Revolving Credit Increase) agree to make all payments and adjustments necessary to effect such reallocation and the Borrower shall pay any and all costs required pursuant to Section 5.9 in connection with such reallocation as if such reallocation were a repayment); and
(z)    except as provided above, all of the other terms and conditions applicable to such Incremental Revolving Credit Increase shall, except to the extent otherwise provided in this Section 4.1, be identical to the terms and conditions applicable to the Revolving Credit Facility;

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(G)    any Incremental Lender with an Incremental Revolving Credit Increase shall be entitled to the same voting rights as the existing Revolving Credit Lenders under the Revolving Credit Facility and any Extensions of Credit made in connection with each Incremental Revolving Credit Increase shall receive proceeds of prepayments on the same basis as the other Revolving Credit Loans made hereunder;
(H)    such Incremental Increase shall be effected pursuant to one or more Lender Joinder Agreements executed and delivered by the Borrower, the Administrative Agent and the applicable Incremental Lenders (which Lender Joinder Agreement may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the provisions of this Section 4.1); and
(I)    the Borrower shall deliver or cause to be delivered any customary legal opinions or other documents (including, without limitation, a resolution duly adopted by the board of directors (or equivalent governing body) of each Credit Party authorizing such Incremental Increase) reasonably requested by Administrative Agent in connection with any such transaction.
(b)    (23)    Each Incremental Term Loan shall be designated as a separate tranche of term loans for all purposes of this Agreement.
(i)    The Incremental Lenders shall be included in any determination of the Required Lenders, and, unless otherwise agreed, the Incremental Lenders will not constitute a separate voting class for any purposes under this Agreement.
(c)    (23)    On any Increased Amount Date on which any Incremental Term Loan Commitment becomes effective, subject to the foregoing terms and conditions, each Incremental Lender with an Incremental Term Loan Commitment shall make, or be obligated to make, an Incremental Term Loan to the Borrower in an amount equal to its Incremental Term Loan Commitment and shall become an Incremental Term Loan Lender hereunder with respect to such Incremental Term Loan Commitment and the Incremental Term Loan made pursuant thereto.
(i)    On any Increased Amount Date on which any Incremental Revolving Credit Increase becomes effective, subject to the foregoing terms and conditions, each Incremental Lender with an Incremental Revolving Credit Commitment shall become a Revolving Credit Lender hereunder with respect to such Incremental Revolving Credit Commitment.
ARTICLE V     
 
GENERAL LOAN PROVISIONS
SECTION 5.1    Interest.
(a)    Interest Rate Options.  Subject to the provisions of this Section, at the election of the Borrower, (i) Revolving Credit Loans and, if applicable, any Incremental Term Loans, shall bear interest at (A) the Base Rate plus the Applicable Margin or (B) the LIBOR Rate plus the Applicable Margin (provided that the LIBOR Rate shall not be available until three (3) Business Days (or four (4) Business Days with respect to a LIBOR Rate based on a twelve month Interest Period) after the Closing Date unless the Borrower has delivered to the Administrative Agent a letter in form and substance reasonably 

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satisfactory to the Administrative Agent indemnifying the Lenders in the manner set forth in Section 5.9 of this Agreement) and (ii) any Swingline Loan shall bear interest at the Base Rate plus the Applicable Margin.  The Borrower shall select the rate of interest and Interest Period, if any, applicable to any Loan at the time a Notice of Borrowing is given or at the time a Notice of Conversion/Continuation is given pursuant to Section 5.2.
(b)    Default Rate.  Subject to Section 10.3, (i) immediately upon the occurrence and during the continuance of an Event of Default under Section 10.1(a), (b), (h) or (i), or (ii) at the election of the Required Lenders, upon the occurrence and during the continuance of any other Event of Default, (A) the Borrower shall no longer have the option to request LIBOR Rate Loans, Swingline Loans or Letters of Credit, (B) all outstanding LIBOR Rate Loans shall bear interest at a rate per annum of two percent (2%) in excess of the rate (including the Applicable Margin) then applicable to LIBOR Rate Loans until the end of the applicable Interest Period and thereafter at a rate equal to two percent (2%) in excess of the rate (including the Applicable Margin) then applicable to Base Rate Loans, (C) all outstanding Base Rate Loans and other Obligations arising hereunder or under any other Loan Document shall bear interest at a rate per annum equal to two percent (2%) in excess of the rate (including the Applicable Margin) then applicable to Base Rate Loans or such other Obligations arising hereunder or under any other Loan Document and (D) all accrued and unpaid interest shall be due and payable on demand of the Administrative Agent.  Interest shall continue to accrue on the Obligations after the filing by or against the Borrower of any petition seeking any relief in bankruptcy or under any Debtor Relief Law.
(c)    Interest Payment and Computation.  Interest on each Base Rate Loan shall be due and payable in arrears on the first Business Day immediately following the end of each calendar quarter commencing December 31, 2019; and interest on each LIBOR Rate Loan shall be due and payable on the last day of each Interest Period applicable thereto, and if such Interest Period extends over three (3) months, at the end of each three (3) month interval during such Interest Period.  All computations of interest for Base Rate Loans when the Base Rate is determined by the Prime Rate shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest provided hereunder shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365/366-day year).
(d)    Maximum Rate.  In no contingency or event whatsoever shall the aggregate of all amounts deemed interest under this Agreement charged or collected pursuant to the terms of this Agreement exceed the highest rate permissible under any Applicable Law which a court of competent jurisdiction shall, in a final determination, deem applicable hereto.  In the event that such a court determines that the Lenders have charged or received interest hereunder in excess of the highest applicable rate, the rate in effect hereunder shall automatically be reduced to the maximum rate permitted by Applicable Law and the Lenders shall at the Administrative Agent’s option (i) promptly refund to the Borrower any interest received by the Lenders in excess of the maximum lawful rate or (ii) apply such excess to the principal balance of the Obligations.  It is the intent hereof that the Borrower not pay or contract to pay, and that neither the Administrative Agent nor any Lender receive or contract to receive, directly or indirectly in any manner whatsoever, interest in excess of that which may be paid by the Borrower under Applicable Law.
SECTION 5.2    Notice and Manner of Conversion or Continuation of Loans.  Provided that no Default or Event of Default has occurred and is then continuing, the Borrower shall have the option to (a) convert at any time all or any portion of any outstanding Base Rate Loans (other than Swingline Loans) in a principal amount equal to $5,000,000 or any whole multiple of $1,000,000 in excess thereof into one or more LIBOR Rate Loans and (b) upon the expiration of any Interest Period, (i) convert all or any part of 

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its outstanding LIBOR Rate Loans in a principal amount equal to $3,000,000 or a whole multiple of $1,000,000 in excess thereof into Base Rate Loans (other than Swingline Loans) or (ii) continue such LIBOR Rate Loans as LIBOR Rate Loans.  Whenever the Borrower desires to convert or continue Loans as provided above, the Borrower shall give the Administrative Agent irrevocable prior written notice in the form attached as Exhibit E (a “Notice of Conversion/Continuation”) not later than 11:00 a.m. three (3) Business Days before the day on which a proposed conversion or continuation of such Loan is to be effective specifying (A) the Loans to be converted or continued, and, in the case of any LIBOR Rate Loan to be converted or continued, the last day of the Interest Period therefor, (B) the effective date of such conversion or continuation (which shall be a Business Day), (C) the principal amount of such Loans to be converted or continued, and (D) the Interest Period to be applicable to such converted or continued LIBOR Rate Loan.  If the Borrower fails to give a timely Notice of Conversion/Continuation prior to the end of the Interest Period for any LIBOR Rate Loan, then the applicable LIBOR Rate Loan shall be converted to a Base Rate Loan.  Any such automatic conversion to a Base Rate Loan shall be effective as of the last day of the Interest Period then in effect with respect to the applicable LIBOR Rate Loan.  If the Borrower requests a conversion to, or continuation of, LIBOR Rate Loans, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.  Notwithstanding anything to the contrary herein, a Swingline Loan may not be converted to a LIBOR Rate Loan.  The Administrative Agent shall promptly notify the affected Lenders of such Notice of Conversion/Continuation.
SECTION 5.3    Fees.
(a)    Commitment Fee.  Commencing on the Closing Date, subject to Section 5.14(a)(iii)(A), the Borrower shall pay to the Administrative Agent, for the account of the Revolving Credit Lenders, a non-refundable commitment fee (the “Commitment Fee”) at a rate per annum equal to the Applicable Margin on the average daily unused portion of the Revolving Credit Commitment of the Revolving Credit Lenders (other than the Defaulting Lenders, if any); provided, that the amount of outstanding Swingline Loans shall not be considered usage of the Revolving Credit Commitment for the purpose of calculating the Commitment Fee.  The Commitment Fee shall be payable in arrears on the first Business Day immediately following the end of each calendar quarter during the term of this Agreement commencing December 31, 2019 and ending on the date upon which all Obligations (other than contingent indemnification obligations not then due) arising under the Revolving Credit Facility shall have been indefeasibly and irrevocably paid and satisfied in full, all Letters of Credit have been terminated or expired and the Revolving Credit Commitment has been terminated.  The Commitment Fee shall be distributed by the Administrative Agent to the Revolving Credit Lenders (other than any Defaulting Lender) pro rata in accordance with such Revolving Credit Lenders’ respective Revolving Credit Commitment Percentages.
(b)    Other Fees.  The Borrower shall pay to Wells Fargo Securities, LLC and the Administrative Agent, for their own respective accounts, fees in the amounts and at the times specified in the Engagement Letter.  The Borrower shall pay to the Lenders such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified.
SECTION 5.4    Manner of Payment.  Each payment by the Borrower on account of the principal of or interest on the Loans or of any fee, commission or other amounts (including the Reimbursement Obligation) payable to the Lenders under this Agreement shall be made not later than 1:00 p.m. on the date specified for payment under this Agreement to the Administrative Agent at the Administrative Agent’s Office for the account of the Lenders entitled to such payment in Dollars, in immediately available funds and shall be made without any set off, counterclaim or deduction whatsoever.  Any payment received after such time but before 2:00 p.m. on such day shall be deemed a payment on such date for the purposes of Section 10.1, but for all other purposes shall be deemed to have been made on the next succeeding Business Day.  Any 

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payment received after 2:00 p.m. shall be deemed to have been made on the next succeeding Business Day for all purposes.  Upon receipt by the Administrative Agent of each such payment, the Administrative Agent shall distribute to each such Lender at its address for notices set forth herein its Commitment Percentage in respect of the relevant Credit Facility (or other applicable share as provided herein) of such payment and shall wire advice of the amount of such credit to each Lender.  Each payment to the Administrative Agent on account of the principal of or interest on the Swingline Loans or of any fee, commission or other amounts payable to the Swingline Lender shall be made in like manner, but for the account of the Swingline Lender.  Each payment to the Administrative Agent of the Issuing Lender’s fees or L/C Participants’ commissions shall be made in like manner, but for the account of such Issuing Lender or the L/C Participants, as the case may be.  Each payment to the Administrative Agent of Administrative Agent’s fees or expenses shall be made for the account of the Administrative Agent and any amount payable to any Lender under Sections 5.9, 5.10, 5.11 or 12.3 shall be paid to the Administrative Agent for the account of the applicable Lender.  Subject to the definition of Interest Period, if any payment under this Agreement shall be specified to be made upon a day which is not a Business Day, it shall be made on the next succeeding day which is a Business Day and such extension of time shall in such case be included in computing any interest if payable along with such payment.  Notwithstanding the foregoing, if there exists a Defaulting Lender each payment by the Borrower to such Defaulting Lender hereunder shall be applied in accordance with Section 5.14(a)(ii).
SECTION 5.5    Evidence of Indebtedness.
(a)    Extensions of Credit.  The Extensions of Credit made by each Lender and each Issuing Lender shall be evidenced by one or more accounts or records maintained by such Lender or such Issuing Lender and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the Administrative Agent and each Lender or the Issuing Lender shall be conclusive absent manifest error of the amount of the Extensions of Credit made by the Lenders or such Issuing Lender to the Borrower and its Subsidiaries and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Lender or the Issuing Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Revolving Credit Note and/or Swingline Note and/or Incremental Term Loan Note, as applicable, which shall evidence such Lender’s Revolving Credit Loans and/or Swingline Loans and/or Incremental Term Loan, as applicable, in addition to such accounts or records.  Each Lender may attach schedules to its Notes and endorse thereon the date, amount and maturity of its Loans and payments with respect thereto.
(b)    Participations.  In addition to the accounts and records referred to in subsection (a), each Revolving Credit Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts or records evidencing the purchases and sales by such Revolving Credit Lender of participations in Letters of Credit and Swingline Loans.  In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Revolving Credit Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

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SECTION 5.6    Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or other obligations hereunder resulting in such Lender’s receiving payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations (other than pursuant to Sections 5.9, 5.10, 5.11 or 12.3) greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them; provided that:
(i)    if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and
(ii)    the provisions of this paragraph shall not be construed to apply to (A) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), (B) the application of Cash Collateral provided for in Section 5.13 or (C) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in Swingline Loans and Letters of Credit to any assignee or participant, other than to the Borrower or any of its Subsidiaries or Affiliates (as to which the provisions of this paragraph shall apply).
Each Credit Party consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against each Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of each Credit Party in the amount of such participation.
SECTION 5.7    Administrative Agent’s Clawback.
(a)    Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have received notice from a Lender (i) in the case of Base Rate Loans, not later than 12:00 noon on the date of any proposed borrowing and (ii) otherwise, prior to the proposed date of any borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Sections 2.3(b) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of the daily average Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans.  If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the applicable borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in 

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such borrowing.  Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.
(b)    Payments by the Borrower; Presumptions by Administrative Agent.  Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders, the Issuing Lender or the Swingline Lender hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders, the Issuing Lender or the Swingline Lender, as the case may be, the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Lenders, the Issuing Lender or the Swingline Lender, as the case maybe, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender, Issuing Lender or the Swingline Lender, with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.
(c)    Nature of Obligations of Lenders Regarding Extensions of Credit.  The obligations of the Lenders under this Agreement to make the Loans and issue or participate in Letters of Credit are several and are not joint or joint and several.  The failure of any Lender to make available its Commitment Percentage of any Loan requested by the Borrower shall not relieve it or any other Lender of its obligation, if any, hereunder to make its Commitment Percentage of such Loan available on the borrowing date, but no Lender shall be responsible for the failure of any other Lender to make its Commitment Percentage of such Loan available on the borrowing date.
SECTION 5.8    Changed Circumstances.
(a)    Circumstances Affecting LIBOR Rate Availability.  In connection with any request for a LIBOR Rate Loan or a conversion to or continuation thereof, if for any reason (i) the Administrative Agent shall determine (which determination shall be conclusive and binding absent manifest error) that Dollar deposits are not being offered to banks in the London interbank Eurodollar market for the applicable amount and Interest Period of such Loan, (ii) the Administrative Agent shall determine (which determination shall be conclusive and binding absent manifest error) that reasonable and adequate means do not exist for the ascertaining the LIBOR Rate for such Interest Period with respect to a proposed LIBOR Rate Loan or (iii) the Required Lenders shall determine (which determination shall be conclusive and binding absent manifest error) that the LIBOR Rate does not adequately and fairly reflect the cost to such Lenders of making or maintaining such Loans during such Interest Period, then the Administrative Agent shall promptly give notice thereof to the Borrower.  Thereafter, until the Administrative Agent notifies the Borrower that such circumstances no longer exist, the obligation of the Lenders to make LIBOR Rate Loans and the right of the Borrower to convert any Loan to or continue any Loan as a LIBOR Rate Loan shall be suspended, and the Borrower shall either (A) repay in full (or cause to be repaid in full) the then outstanding principal amount of each such LIBOR Rate Loan together with accrued interest thereon (subject to Section 5.1(d)), on the last day of the then current Interest Period applicable to such LIBOR Rate Loan; or (B) convert the then outstanding principal amount of each such LIBOR Rate Loan to a Base Rate Loan as of the last day of such Interest Period.
(b)    Laws Affecting LIBOR Rate Availability.  If, after the date hereof, the introduction of, or any change in, any Applicable Law or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or 

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administration thereof, or compliance by any of the Lenders (or any of their respective Lending Offices) with any request or directive (whether or not having the force of law) of any such Governmental Authority, central bank or comparable agency, shall make it unlawful or impossible for any of the Lenders (or any of their respective Lending Offices) to honor its obligations hereunder to make or maintain any LIBOR Rate Loan, such Lender shall promptly give notice thereof to the Administrative Agent and the Administrative Agent shall promptly give notice to the Borrower and the other Lenders.  Thereafter, until the Administrative Agent notifies the Borrower that such circumstances no longer exist, (i) the obligations of the Lenders to make LIBOR Rate Loans, and the right of the Borrower to convert any Loan to a LIBOR Rate Loan or continue any Loan as a LIBOR Rate Loan shall be suspended and thereafter the Borrower may select only Base Rate Loans and (ii) if any of the Lenders may not lawfully continue to maintain a LIBOR Rate Loan to the end of the then current Interest Period applicable thereto, the applicable Loan shall immediately be converted to a Base Rate Loan for the remainder of such Interest Period.
(c)    Effect of Benchmark Transition Event.  
(i)    Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, the Administrative Agent and the Borrower may amend this Agreement to replace LIBOR with a Benchmark Replacement.  Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders.  Any such amendment with respect to an Early Opt-in Election will become effective on the date that Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders accept such amendment.  No replacement of LIBOR with a Benchmark Replacement pursuant to this Section 5.8(c) will occur prior to the applicable Benchmark Transition Start Date. 
(ii)    Benchmark Replacement Conforming Changes.  In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement. 
(iii)    Notices; Standards for Decisions and Determinations.  The Administrative Agent will promptly notify the Borrower and the Lenders of (A) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (B) the implementation of any Benchmark Replacement, (C) the effectiveness of any Benchmark Replacement Conforming Changes and (D) the commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 5.8(c), including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 5.8(c). 

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(iv)    Benchmark Unavailability Period.  Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a LIBOR Rate Loan of, conversion to or continuation of LIBOR Rate Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to Base Rate Loans.  During any Benchmark Unavailability Period, the component of the Base Rate based upon LIBOR will not be used in any determination of the Base Rate.
SECTION 5.9    Indemnity.  The Borrower hereby indemnifies each of the Lenders against any loss or expense (including any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain a LIBOR Rate Loan or from fees payable to terminate the deposits from which such funds were obtained) which may arise or be attributable to each Lender’s obtaining, liquidating or employing deposits or other funds acquired to effect, fund or maintain any Loan (a) as a consequence of any failure by the Borrower to make any payment when due of any amount due hereunder in connection with a LIBOR Rate Loan, (b) due to any failure of the Borrower to borrow, continue or convert on a date specified therefor in a Notice of Borrowing or Notice of Conversion/Continuation or (c) due to any payment, prepayment or conversion of any LIBOR Rate Loan on a date other than the last day of the Interest Period therefor.  The amount of such loss or expense shall be determined, in the applicable Lender’s sole discretion, based upon the assumption that such Lender funded its Commitment Percentage of the LIBOR Rate Loans in the London interbank market and using any reasonable attribution or averaging methods which such Lender deems appropriate and practical.  A certificate of such Lender setting forth the basis for determining such amount or amounts necessary to compensate such Lender shall be forwarded to the Borrower through the Administrative Agent and shall be conclusively presumed to be correct save for manifest error.
SECTION 5.10    Increased Costs.
(a)    Increased Costs Generally.  If any Change in Law shall:
(i)    impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or advances, loans or other credit extended or participated in by, any Lender (except any reserve requirement reflected in the LIBOR Rate) or the Issuing Lender;
(ii)    subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or
(iii)    impose on any Lender or the Issuing Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or LIBOR Rate Loans made by such Lender or any Letter of Credit or participation therein;
and the result of any of the foregoing shall be to increase the cost to such Lender, the Issuing Lender or such other Recipient of making, converting to, continuing or maintaining any Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender, such Issuing Lender or such other Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender, such Issuing Lender or such other Recipient hereunder (whether of principal, interest or any other amount) then, upon written request of such Lender, such Issuing Lender or other Recipient, the Borrower shall promptly pay to any such Lender, such Issuing Lender or other Recipient, as the case may be, such additional amount 

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or amounts as will compensate such Lender, such Issuing Lender or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.
(b)    Capital Requirements.  If any Lender or the Issuing Lender determines that any Change in Law affecting such Lender or such Issuing Lender or any lending office of such Lender or such Lender’s or such Issuing Lender’s holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender’s or such Issuing Lender’s capital or on the capital of such Lender’s or such Issuing Lender’s holding company, if any, as a consequence of this Agreement, the Revolving Credit Commitment of such Lender or the Loans made by, or participations in Letters of Credit or Swingline Loans held by, such Lender, or the Letters of Credit issued by such Issuing Lender, to a level below that which such Lender or such Issuing Lender or such Lender’s or such Issuing Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or such Issuing Lender’s policies and the policies of such Lender’s or such Issuing Lender’s holding company with respect to capital adequacy and liquidity), then from time to time upon written request of such Lender or such Issuing Lender the Borrower shall promptly pay to such Lender or such Issuing Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Lender or such Lender’s or such Issuing Lender’s holding company for any such reduction suffered.  
(c)    Certificates for Reimbursement.  A certificate of a Lender, or an Issuing Lender or such other Recipient setting forth the amount or amounts necessary to compensate such Lender or such Issuing Lender, such other Recipient or any of their respective holding companies, as the case may be, as specified in paragraph (a) or (b) of this Section and delivered to the Borrower, shall be conclusive absent manifest error.  The Borrower shall pay such Lender or such Issuing Lender or such other Recipient, as the case may be, the amount shown as due on any such certificate within ten (10) days after receipt thereof.
(d)    Delay in Requests.  Failure or delay on the part of any Lender or the Issuing Lender or such other Recipient to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or such Issuing Lender’s or such other Recipient’s right to demand such compensation; provided that the Borrower shall not be required to compensate any Lender or an Issuing Lender or any other Recipient pursuant to this Section for any increased costs incurred or reductions suffered more than nine (9) months prior to the date that such Lender or such Issuing Lender or such other Recipient, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender’s or such Issuing Lender’s or such other Recipient’s intention to claim compensation therefor (except that if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).
SECTION 5.11    Taxes.
(a)    Defined Terms.  For purposes of this Section 5.11, the term “Lender” includes the Issuing Lender and the term “Applicable Law” includes FATCA.
(b)    Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Credit Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Law.  If any Applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant 

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Governmental Authority in accordance with Applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Credit Party shall be increased as necessary so that, after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section), the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.
(c)    Payment of Other Taxes by the Credit Parties.  The Credit Parties shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.
(d)    Indemnification by the Credit Parties.  The Credit Parties shall jointly and severally indemnify each Recipient, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Recipient (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Recipient, shall be conclusive absent manifest error.
(e)    Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Credit Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Credit Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 12.9(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).
(f)    Evidence of Payments.  As soon as practicable after any payment of Taxes by any Credit Party to a Governmental Authority pursuant to this Section 5.11, such Credit Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.
(g)    Status of Lenders.
(i)    Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested 

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by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 5.11(g)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.
(ii)    Without limiting the generality of the foregoing:
(A)    Any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from United States federal backup withholding tax;
(B)    any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:
(1)    in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN-E establishing an exemption from, or reduction of, United States federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN-E establishing an exemption from, or reduction of, United States federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;
(2)    executed copies of IRS Form W-8ECI;
(3)    in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit H-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN-E; or
(4)    to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit H-2 or Exhibit H-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the 

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portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit H-4 on behalf of each such direct and indirect partner;
(C)    any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in United States federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and
(D)    if a payment made to a Lender under any Loan Document would be subject to United States federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.
(h)    Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 5.11 (including by the payment of additional amounts pursuant to this Section 5.11), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall not be construed to require any 

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indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.
(i)    Indemnification of the Administrative Agent.  Each Lender and each Issuing Lender shall severally indemnify the Administrative Agent within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Credit Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Credit Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 12.10(e) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (i).  The agreements in paragraph (i) shall survive the resignation and/or replacement of the Administrative Agent.
(j)    Survival.  Each party’s obligations under this Section 5.11 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.
SECTION 5.12    Mitigation Obligations; Replacement of Lenders.
(a)    Designation of a Different Lending Office.  If any Lender requests compensation under Section 5.10, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 5.11, then such Lender shall, at the request of the Borrower, use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 5.10 or Section 5.11, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
(b)    Replacement of Lenders.  If any Lender requests compensation under Section 5.10, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 5.11, and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with Section 5.12(a), or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 12.9), all of its interests, rights (other than its existing rights to payments pursuant to Section 5.10 or Section 5.11) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:

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(i)    the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 12.9;
(ii)    such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in Letters of Credit, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 5.9) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);
(iii)    in the case of any such assignment resulting from a claim for compensation under Section 5.10 or payments required to be made pursuant to Section 5.11, such assignment will result in a reduction in such compensation or payments thereafter;
(iv)    such assignment does not conflict with Applicable Law; and
(v)    in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.
A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.
SECTION 5.13    Cash Collateral.  At any time that there shall exist a Defaulting Lender, within one Business Day following the written request of the Administrative Agent, the Issuing Lender (with a copy to the Administrative Agent) or the Swingline Lender (with a copy to the Administrative Agent), the Borrower shall Cash Collateralize the Fronting Exposure of such Issuing Lender and/or the Swingline Lender, as applicable, with respect to such Defaulting Lender (determined after giving effect to Section 5.14(a)(iv) and any Cash Collateral provided by such Defaulting Lender) in an amount not less than the Minimum Collateral Amount.
(a)    Grant of Security Interest.  The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the benefit of each Issuing Lender and the Swingline Lender, and agrees to maintain, a first priority security interest in all such Cash Collateral as security for the Defaulting Lender’s obligation to fund participations in respect of L/C Obligations and Swingline Loans, to be applied pursuant to subsection (b) below.  If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent, each Issuing Lender and the Swingline Lender as herein provided, or that the total amount of such Cash Collateral is less than the Minimum Collateral Amount, the Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).
(b)    Application.  Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this Section 5.13 or Section 5.14 in respect of Letters of Credit and Swingline Loans shall be applied to the satisfaction of the Defaulting Lender’s obligation to fund participations in respect of L/C Obligations and Swingline Loans (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

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(c)    Termination of Requirement.  Cash Collateral (or the appropriate portion thereof) provided to reduce the Fronting Exposure of the Issuing Lender and/or the Swingline Lender, as applicable, shall no longer be required to be held as Cash Collateral pursuant to this Section 5.13 following (i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender), or (ii) the determination by the Administrative Agent, the Issuing Lender and the Swingline Lender that there exists excess Cash Collateral; provided that, subject to Section 5.14, the Person providing Cash Collateral, the Issuing Lender and the Swingline Lender may agree that Cash Collateral shall be held to support future anticipated Fronting Exposure or other obligations; and provided further that to the extent that such Cash Collateral was provided by the Borrower, such Cash Collateral shall remain subject to the security interest granted pursuant to the Loan Documents.
SECTION 5.14    Defaulting Lenders.
(a)    Defaulting Lender Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:
(i)    Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders and Section 12.2.
(ii)    Defaulting Lender Waterfall.  Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article X or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 12.4 shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to the Issuing Lender or the Swingline Lender hereunder; third, to Cash Collateralize the Fronting Exposure of the Issuing Lender and the Swingline Lender with respect to such Defaulting Lender in accordance with Section 5.13; fourth, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan or funded participation in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to (A) satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans and funded participations under this Agreement and (B) Cash Collateralize the Issuing Lender’s future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit and Swingline Loans issued under this Agreement, in accordance with Section 5.13; sixth, to the payment of any amounts owing to the Lenders, the Issuing Lender or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Lender or the Swingline Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (1) such payment is a payment of the principal amount of any Loans or funded participations in Letters of Credit or Swingline Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (2) such Loans were 

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made or the related Letters of Credit or Swingline Loans were issued at a time when the conditions set forth in Section 6.2 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and funded participations in Letters of Credit or Swingline Loans owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or funded participations in Letters of Credit or Swingline Loans owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in L/C Obligations and Swingline Loans are held by the Lenders pro rata in accordance with the Revolving Credit Commitments under the applicable Revolving Credit Facility without giving effect to Section 5.14(a)(iv).  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 5.14(a)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.
(iii)    Certain Fees.
(A)    No Defaulting Lender shall be entitled to receive any Commitment Fee for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).
(B)    Each Defaulting Lender shall be entitled to receive letter of credit commissions pursuant to Section 3.3 for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Revolving Credit Commitment Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to Section 5.13.
(C)    With respect to any Commitment Fee or letter of credit commission not required to be paid to any Defaulting Lender pursuant to clause (A) or (B) above, the Borrower shall (1) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation in L/C Obligations or Swingline Loans that has been reallocated to such Non-Defaulting Lender pursuant to clause (iv) below, (2) pay to the Issuing Lender and the Swingline Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to such Issuing Lender’s or Swingline Lender’s Fronting Exposure to such Defaulting Lender, and (3) not be required to pay the remaining amount of any such fee.
(iv)    Reallocation of Participations to Reduce Fronting Exposure.  All or any part of such Defaulting Lender’s participation in L/C Obligations and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Revolving Credit Commitment Percentages (calculated without regard to such Defaulting Lender’s Revolving Credit Commitment) but only to the extent that such reallocation does not cause the aggregate Revolving Credit Exposure of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Revolving Credit Commitment.  No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

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(v)    Cash Collateral, Repayment of Swingline Loans.  If the reallocation described in clause (iv) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law, (x) first, repay Swingline Loans in an amount equal to the Swingline Lenders’ Fronting Exposure and (y) second, Cash Collateralize the Issuing Lender’s Fronting Exposure in accordance with the procedures set forth in Section 5.13.
(b)    Defaulting Lender Cure.  If the Borrower, the Administrative Agent, the Issuing Lender and the Swingline Lender agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), such Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swingline Loans to be held pro rata by the Lenders in accordance with the Commitments under the applicable Credit Facility (without giving effect to Section 5.14(a)(iv)), whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.
ARTICLE VI     
 
CONDITIONS OF CLOSING AND BORROWING
SECTION 6.1    Conditions to Closing and Initial Extensions of Credit.  The obligation of the Lenders to close this Agreement and to make the initial Loans or issue or participate in the initial Letter of Credit, if any, is subject to the satisfaction of each of the following conditions:
(a)    Executed Loan Documents.  This Agreement, a Revolving Credit Note in favor of each Revolving Credit Lender requesting a Revolving Credit Note, a Swingline Note in favor of the Swingline Lender (in each case, if requested thereby) and the Guaranty Agreement, together with any other applicable Loan Documents, shall have been duly authorized, executed and delivered to the Administrative Agent by the parties thereto, shall be in full force and effect and no Default or Event of Default shall exist hereunder or thereunder.
(b)    Closing Certificates; Etc.  The Administrative Agent shall have received each of the following in form and substance reasonably satisfactory to the Administrative Agent:
(i)    Officer’s Certificate.  A certificate from a Responsible Officer of the Borrower to the effect that (A) all representations and warranties of the Credit Parties contained in this Agreement and the other Loan Documents are true, correct and complete in all material respects (except to the extent any such representation and warranty is qualified by materiality or reference to Material Adverse Effect, in which case, such representation and warranty shall be true, correct and complete in all respects); (B) none of the Credit Parties is in violation of any of the covenants contained in this Agreement and the other Loan Documents; (C) after giving effect to the Transactions, no Default or Event of Default has occurred and is continuing; (D) since December 31, 2018, no event has occurred or condition arisen, either individually or in the aggregate, that has had or could reasonably 

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be expected to have a Material Adverse Effect; and (E)  each of the Credit Parties, as applicable, has satisfied each of the conditions set forth in Section 6.1 and Section 6.2.
(ii)    Certificate of Secretary of each Credit Party.  A certificate of a Responsible Officer of each Credit Party certifying as to the incumbency and genuineness of the signature of each officer of such Credit Party executing Loan Documents to which it is a party and certifying that attached thereto is a true, correct and complete copy of (A) the articles or certificate of incorporation or formation (or equivalent), as applicable, of such Credit Party and all amendments thereto, certified as of a recent date by the appropriate Governmental Authority in its jurisdiction of incorporation, organization or formation (or equivalent), as applicable, (B) the bylaws or other governing document of such Credit Party as in effect on the Closing Date, (C) resolutions duly adopted by the board of directors (or other governing body) of such Credit Party authorizing and approving the transactions contemplated hereunder and the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party, and (D) each certificate required to be delivered pursuant to Section 6.1(b)(iii).
(iii)    Certificates of Good Standing.  Certificates as of a recent date of the good standing of each Credit Party under the laws of its jurisdiction of incorporation, organization or formation (or equivalent), as applicable, and, to the extent requested by the Administrative Agent, each other jurisdiction where such Credit Party is qualified to do business, except to the extent that the failure to be so qualified in such other jurisdiction could not reasonably be expected to result in a Material Adverse Effect.
(iv)    Opinions of Counsel.  Opinions of counsel to the Credit Parties addressed to the Administrative Agent and the Lenders with respect to the Credit Parties, the Loan Documents and such other matters as the Administrative Agent shall request (which such opinions shall expressly permit reliance by permitted successors and assigns of the Administrative Agent and the Lenders); provided that, with respect to MicroPact Holdings, LLC, a Georgia limited liability company, an opinion of Georgia local counsel shall not be required.
(c)    Lien Searches.  The Administrative Agent shall have received the results of a Lien search (including a search as to judgments, bankruptcy, tax and intellectual property matters), in form and substance reasonably satisfactory thereto, made against the Credit Parties under the Uniform Commercial Code (or applicable judicial docket) as in effect in each jurisdiction in which filings or recordations under the Uniform Commercial Code should be made to evidence or perfect security interests in all assets of such Credit Party, indicating among other things that the assets of each such Credit Party are free and clear of any Lien (except for Permitted Liens).
(d)    Consents; Defaults.
(i)    Governmental and Third Party Approvals.  The Credit Parties shall have received all material governmental, shareholder and third party consents and approvals necessary (or any other material consents as determined in the reasonable discretion of the Administrative Agent) in connection with the transactions contemplated by this Agreement and the other Loan Documents and all applicable waiting periods shall have expired without any action being taken by any Person that could reasonably be expected to restrain, prevent or impose any material adverse conditions on any of the Credit Parties or such other transactions or that could seek or threaten any of the foregoing, and no law or regulation shall be applicable which in the reasonable judgment of the Administrative Agent could reasonably be expected to have such effect.

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(ii)    No Injunction, Etc.  No action, proceeding or investigation shall be pending or, to the knowledge of the Borrower, threatened in any court or before any arbitrator or any Governmental Authority that could reasonably be expected to have a Material Adverse Effect.
(e)    Financial Matters.
(i)    Financial Statements.  The Administrative Agent shall have received (in form and substance reasonably satisfactory to the Administrative Agent): 
(A)    with respect to the Borrower and its Subsidiaries, (1) audited Consolidated balance sheets and related Consolidated statements of income, shareholders’ equity and cash flows for the three most recently completed Fiscal Years ended for which financial statements are available and (2) unaudited Consolidated balance sheets and related Consolidated statements of income, shareholders’ equity and cash flows for each interim fiscal quarter ended since the last audited financial statements for which financial statements are available; and
(B)    projections prepared by management of the Borrower, of balance sheets, income statements and cash flow statements on an annual basis for each year during the term of the Credit Facility, which shall not be inconsistent with any financial information or projections previously delivered to the Administrative Agent.
(ii)    Solvency Certificate.  The Borrower shall have delivered to the Administrative Agent a certificate, in form and substance satisfactory to the Administrative Agent, and certified as accurate by the chief financial officer of the Borrower, that after giving effect to the Transactions, (A) the Borrower is Solvent and (B) the Borrower and its Subsidiaries, on a Consolidated basis, are Solvent.
(iii)    Payment at Closing.  The Borrower shall have paid or made arrangements to pay contemporaneously with closing (A) to the Administrative Agent, Wells Fargo Securities, LLC and the Lenders the fees set forth or referenced in Section 5.3 and any other accrued and unpaid fees or commissions due hereunder, (B) to the extent invoiced at least three (3) Business Days (or such shorter period of time as reasonably agreed by the Borrower) prior to the Closing Date (or as otherwise set forth in a funds flow or settlement statement executed by the Borrower), all fees, charges and disbursements of counsel to the Administrative Agent (directly to such counsel if requested by the Administrative Agent) to the extent accrued and unpaid prior to or on the Closing Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent) and (C) to any other Person such amount as may be due thereto in connection with the transactions contemplated hereby, including all taxes, fees and other charges in connection with the execution, delivery, recording, filing and registration of any of the Loan Documents.
(f)    Miscellaneous.
(i)    Notice of Account Designation.  The Administrative Agent shall have received a Notice of Account Designation specifying the account or accounts to which the proceeds of any Loans made on or after the Closing Date are to be disbursed.

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(ii)    Existing Indebtedness.  All existing Indebtedness of the Borrower and its Subsidiaries (including Indebtedness under the Existing Credit Agreement but excluding Indebtedness permitted pursuant to Section 9.1) shall be repaid in full, all commitments (if any) in respect thereof shall have been terminated and all guarantees therefor and security therefor shall be released, and the Administrative Agent shall have received any pay-off letters reasonably requested thereby in form and substance satisfactory to it evidencing such repayment, termination and release.
(iii)    PATRIOT Act, etc.  The Borrower and each other Credit Party shall have provided to the Administrative Agent and the Lenders, at least five (5) Business Days prior to the Closing Date, the documentation and other information requested by the Administrative Agent in order to comply with requirements of any Anti-Money Laundering Laws, including the PATRIOT Act and any applicable “know your customer” rules and regulations.
(iv)    Beneficial Ownership Regulations.  The Borrower shall have delivered to the Administrative Agent, and directly to any Lender requesting the same, a Beneficial Ownership Certification in relation to it, in each case at least five (5) Business Days prior to the Closing Date.
(v)    Other Documents.  All opinions, certificates and other instruments and all proceedings in connection with the transactions contemplated by this Agreement shall be satisfactory in form and substance to the Administrative Agent.  The Administrative Agent shall have received copies of all other documents, certificates and instruments reasonably requested thereby, with respect to the transactions contemplated by this Agreement.
Without limiting the generality of the provisions of Section 11.3(c), for purposes of determining compliance with the conditions specified in this Section 6.1, the Administrative Agent and each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.
SECTION 6.2    Conditions to All Extensions of Credit.  Subject to Section 4.1 and Section 1.11 solely with respect to any Incremental Term Loan incurred to finance a substantially concurrent Limited Condition Acquisition, the obligations of the Lenders to make or participate in any Extensions of Credit (including the initial Extension of Credit) and/or the Issuing Lender to issue or extend any Letter of Credit are subject to the satisfaction of the following conditions precedent on the relevant borrowing, continuation, conversion, issuance or extension date:
(a)    Continuation of Representations and Warranties.  The representations and warranties contained in this Agreement and the other Loan Documents shall be true and correct in all material respects, except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects, on and as of such borrowing, continuation, conversion, issuance or extension date with the same effect as if made on and as of such date (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct in all material respects as of such earlier date, except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects as of such earlier date).
(b)    No Existing Default.  No Default or Event of Default shall have occurred and be continuing (i) on the borrowing, continuation or conversion date with respect to such Loan or after giving effect to 

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the Loans to be made, continued or converted on such date or (ii) on the issuance or extension date with respect to such Letter of Credit or after giving effect to the issuance or extension of such Letter of Credit on such date.
(c)    Notices.  The Administrative Agent shall have received a Notice of Borrowing, Letter of Credit Application, or Notice of Conversion/Continuation, as applicable, from the Borrower in accordance with Section 2.3(a), Section 3.2 or Section 5.2, as applicable.
(d)    New Swingline Loans/Letters of Credit.  So long as any Lender is a Defaulting Lender, (i) the Swingline Lender shall not be required to fund any Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan and (ii) the Issuing Lender shall not be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.
ARTICLE VII     
 
REPRESENTATIONS AND WARRANTIES OF THE CREDIT PARTIES
To induce the Administrative Agent and Lenders to enter into this Agreement and to induce the Lenders to make Extensions of Credit, the Credit Parties hereby represent and warrant to the Administrative Agent and the Lenders both before and after giving effect to the transactions contemplated hereunder, which representations and warranties shall be deemed made on the Closing Date and as otherwise set forth in Section 6.2, that:
SECTION 7.1    Organization; Power; Qualification.  Each Credit Party and each Subsidiary thereof (a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation, (b) has the power and authority to own its Properties and to carry on its business as now being and hereafter proposed to be conducted and (c) is duly qualified and authorized to do business in each jurisdiction in which the character of its Properties or the nature of its business requires such qualification and authorization except (i) in jurisdictions where the failure to be so qualified or in good standing could not reasonably be expected to result in a Material Adverse Effect and (ii) solely with respect to any Immaterial Subsidiary, with respect to clauses (a), (b) and (c) above, in jurisdictions where the failure could not reasonably be expected to result in a Material Adverse Effect.  The jurisdictions in which each Credit Party is organized and qualified to do business as of the Closing Date are described on Schedule 7.1. No Credit Party nor any Subsidiary thereof is an EEA Financial Institution.  No Credit Party nor any Subsidiary thereof is a Covered Entity.
SECTION 7.2    Ownership.  Each Subsidiary of each Credit Party as of the Closing Date is listed on Schedule 7.2.  As of the Closing Date, the capitalization of each Credit Party and its Subsidiaries consists of the number of shares, authorized, issued and outstanding, of such classes and series, with or without par value, described on Schedule 7.2.  All outstanding shares have been duly authorized and validly issued and are fully paid and nonassessable and not subject to any preemptive or similar rights, except as described in Schedule 7.2.  As of the Closing Date, there are no outstanding stock purchase warrants, subscriptions, options, securities, instruments or other rights of any type or nature whatsoever, which are convertible into, exchangeable for or otherwise provide for or require the issuance of Equity Interests of any Credit Party or any Subsidiary thereof, except as described on Schedule 7.2.
SECTION 7.3    Authorization; Enforceability.  Each Credit Party has the right, power and authority and has taken all necessary corporate and other action to authorize the execution, delivery and performance of this Agreement and each of the other Loan Documents to which it is a party in accordance 

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with their respective terms.  This Agreement and each of the other Loan Documents have been duly executed and delivered by the duly authorized officers of each Credit Party that is a party thereto, and each such document constitutes the legal, valid and binding obligation of each Credit Party that is a party thereto, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal Debtor Relief Laws from time to time in effect which affect the enforcement of creditors’ rights in general and the availability of equitable remedies.
SECTION 7.4    Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc.  The execution, delivery and performance by each Credit Party of the Loan Documents to which each such Person is a party, in accordance with their respective terms, the Extensions of Credit hereunder and the transactions contemplated hereby or thereby do not and will not, by the passage of time, the giving of notice or otherwise, (a) require any Governmental Approval or violate any Applicable Law relating to any Credit Party where the failure to obtain such Governmental Approval or such violation could reasonably be expected to have a Material Adverse Effect, (b) conflict with, result in a breach of or constitute a default under the articles of incorporation, bylaws or other organizational documents of any Credit Party, (c) conflict with, result in a breach of or constitute a default under any indenture, agreement or other instrument to which such Person is a party or by which any of its properties may be bound or any Governmental Approval relating to such Person, which could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (d) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by such Person other than Permitted Liens or (e) require any consent or authorization of, filing with, or other act in respect of, an arbitrator or Governmental Authority and no consent of any other Person is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement other than consents, authorizations, filings or other acts or consents for which the failure to obtain or make could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
SECTION 7.5    Compliance with Law; Governmental Approvals.  Each Credit Party (a) has all Governmental Approvals required by any Applicable Law for it to conduct its business, each of which is in full force and effect, is final and not subject to review on appeal and is not the subject of any pending or, to its knowledge, threatened attack by direct or collateral proceeding, (b) is in compliance with each Governmental Approval applicable to it and in compliance with all other Applicable Laws relating to it or any of its respective properties and (c) has timely filed all material reports, documents and other materials required to be filed by it under all Applicable Laws with any Governmental Authority and has retained all material records and documents required to be retained by it under Applicable Law except in each case (a), (b) or (c) where the failure to have, comply or file could not reasonably be expected to have a Material Adverse Effect.
SECTION 7.6    Tax Returns and Payments.  Each Credit Party and each Subsidiary thereof has duly filed or caused to be filed all federal, state and other material tax returns required by Applicable Law to be filed, and has paid, or made adequate provision for the payment of, all federal, state, local and other taxes, assessments and governmental charges or levies upon it and its property, income, profits and assets which are due and payable (other than any amount the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided for on the books of the relevant Credit Party), except solely with respect to any Immaterial Subsidiary where the failure to so file or pay could not reasonably be expected to result in a Material Adverse Effect.  Such returns accurately reflect in all material respects all liability for taxes of any Credit Party or any Subsidiary thereof for the periods covered thereby.  As of the Closing Date, except as set forth on Schedule 7.6, there is no ongoing audit or examination or, to its knowledge, other investigation by any Governmental Authority that could be reasonably expected to result in any material tax liability to any Credit Party or any 

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Subsidiary thereof.  No Governmental Authority has asserted any Lien or other claim against any Credit Party or any Subsidiary thereof with respect to material unpaid taxes which has not been discharged or resolved (other than (a) any amount the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided for on the books of the relevant Credit Party and (b) Permitted Liens).  The charges, accruals and reserves on the books of each Credit Party and each Subsidiary thereof in respect of federal, state, local and other material taxes for all Fiscal Years and portions thereof since the organization of any Credit Party or any Subsidiary thereof are in the judgment of the Borrower adequate, and the Borrower does not anticipate any additional taxes or assessments for any of such years.
SECTION 7.7    Intellectual Property Matters.  Each Credit Party and each Subsidiary thereof owns or possesses rights to use all material franchises, licenses, copyrights, copyright applications, patents, patent rights or licenses, patent applications, trademarks, trademark rights, service mark, service mark rights, trade names, trade name rights, copyrights and other rights with respect to the foregoing which are reasonably necessary to conduct its business, except to the extent the failure to have any such rights, individually or in the aggregate, could not reasonably be expect to have a Material Adverse Effect.  No event has occurred which permits, or after notice or lapse of time or both would permit, the revocation or termination of any such rights, and no Credit Party nor any Subsidiary thereof is liable to any Person for infringement under Applicable Law with respect to any such rights as a result of its business operations, which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
SECTION 7.8    Environmental Matters.
(a)    The properties owned, leased or operated by each Credit Party and each Subsidiary thereof now or in the past do not contain, and to their knowledge have not previously contained, any Hazardous Materials in amounts or concentrations which constitute or constituted a violation of applicable Environmental Laws that could reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect;
(b)    To its knowledge, each Credit Party and each Subsidiary thereof and such properties and all operations conducted in connection therewith are in compliance, and have been in compliance, with all applicable Environmental Laws, and there is no contamination at, under or about such properties or such operations that could reasonably be expected to materially interfere with the continued operation of such properties or materially impair the fair saleable value thereof;
(c)    No Credit Party nor any Subsidiary thereof has received any notice of violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters, Hazardous Materials, or compliance with applicable Environmental Laws that, if adversely determined, could reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, nor does any Credit Party or any Subsidiary thereof have knowledge or reason to believe that any such notice will be received or is being threatened;
(d)    To its knowledge, Hazardous Materials have not been transported or disposed of to or from the properties owned, leased or operated by any Credit Party or any Subsidiary thereof in violation of, or in a manner or to a location which could give rise to liability under, applicable Environmental Laws, nor have any Hazardous Materials been generated, treated, stored or disposed of at, on or under any of such properties in violation of, or in a manner that could give rise to liability under, any applicable Environmental Laws that could reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect;

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(e)    No judicial proceedings or governmental or administrative action is pending, or, to the knowledge of the Borrower, threatened, under any Environmental Law to which any Credit Party or any Subsidiary thereof is or will be named as a potentially responsible party, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any applicable Environmental Law with respect to any Credit Party, any Subsidiary thereof, with respect to any real property owned, leased or operated by any Credit Party or any Subsidiary thereof or operations conducted in connection therewith that could reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect; and
(f)    There has been no release, or to its knowledge, threat of release, of Hazardous Materials at or from properties owned, leased or operated by any Credit Party or any Subsidiary, now or in the past, in violation of or in amounts or in a manner that could give rise to liability under applicable Environmental Laws that could reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.
SECTION 7.9    Employee Benefit Matters.
(a)    As of the Closing Date, no Credit Party nor any ERISA Affiliate maintains or contributes to, or has any obligation under, any Employee Benefit Plans other than those identified on Schedule 7.9;
(b)    Each Credit Party and each ERISA Affiliate is in compliance with all applicable provisions of ERISA, the Code and the regulations and published interpretations thereunder with respect to all Employee Benefit Plans except for any required amendments for which the remedial amendment period as defined in Section 401(b) of the Code has not yet expired and except where a failure to so comply could not reasonably be expected to have a Material Adverse Effect.  Each Employee Benefit Plan that is intended to be qualified under Section 401(a) of the Code has been determined by the IRS to be so qualified, and each trust related to such plan has been determined to be exempt under Section 501(a) of the Code except for such plans that have not yet received determination letters but for which the remedial amendment period for submitting a determination letter has not yet expired.  No liability has been incurred by any Credit Party or any ERISA Affiliate which remains unsatisfied for any taxes or penalties assessed with respect to any Employee Benefit Plan or any Multiemployer Plan except for a liability that could not reasonably be expected to have a Material Adverse Effect;
(c)    As of the Closing Date, no Pension Plan has been terminated, nor has any Pension Plan become subject to funding based benefit restrictions under Section 436 of the Code, nor has any funding waiver from the IRS been received or requested with respect to any Pension Plan, nor has any Credit Party or any ERISA Affiliate failed to make any contributions or to pay any amounts due and owing as required by Sections 412 or 430 of the Code, Section 302 of ERISA or the terms of any Pension Plan on or prior to the due dates of such contributions under Sections 412 or 430 of the Code or Section 302 of ERISA, nor has there been any event requiring any disclosure under Section 4041(c)(3)(C) or 4063(a) of ERISA with respect to any Pension Plan;
(d)    Except where the failure of any of the following representations to be correct could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, no Credit Party nor any ERISA Affiliate has:  (i) engaged in a nonexempt prohibited transaction described in Section 406 of the ERISA or Section 4975 of the Code, (ii) incurred any liability to the PBGC which remains outstanding other than the payment of premiums and there are no premium payments which are due and unpaid, (iii) failed to make a required contribution or payment to a Multiemployer Plan, or 

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(iv) failed to make a required installment or other required payment under Sections 412 or 430 of the Code;
(e)    No Termination Event has occurred or is reasonably expected to occur;
(f)    Except where the failure of any of the following representations to be correct could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, no proceeding, claim (other than a benefits claim in the ordinary course of business), lawsuit and/or investigation is existing or, to its knowledge, threatened concerning or involving (i) any employee welfare benefit plan (as defined in Section 3(1) of ERISA) currently maintained or contributed to by any Credit Party or any ERISA Affiliate, (ii) any Pension Plan or (iii) any Multiemployer Plan.
(g)    No Credit Party nor any Subsidiary thereof is a party to any contract, agreement or arrangement that could, solely as a result of the delivery of this Agreement or the consummation of transactions contemplated hereby, result in the payment of any “excess parachute payment” within the meaning of Section 280G of the Code.
SECTION 7.10    Margin Stock.  No Credit Party nor any Subsidiary thereof is engaged principally or as one of its activities in the business of extending credit for the purpose of “purchasing” or “carrying” any “margin stock” (as each such term is defined or used, directly or indirectly, in Regulation U of the Board of Governors of the Federal Reserve System).  No part of the proceeds of any of the Loans or Letters of Credit will be used for purchasing or carrying margin stock or for any purpose which violates, or which would be inconsistent with, the provisions of Regulation T, U or X of such Board of Governors.  Following the application of the proceeds of each Extension of Credit, not more than twenty-five percent (25%) of the value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a Consolidated basis) subject to the provisions of Section 9.2 or Section 9.5 or subject to any restriction contained in any agreement or instrument between the Borrower and any Lender or any Affiliate of any Lender relating to Indebtedness in excess of the Threshold Amount will be “margin stock”.
SECTION 7.11    Government Regulation.  No Credit Party nor any Subsidiary thereof is an “investment company” or a company “controlled” by an “investment company” (as each such term is defined or used in the Investment Company Act of 1940) and no Credit Party nor any Subsidiary thereof is, or after giving effect to any Extension of Credit will be, subject to regulation under the Interstate Commerce Act, or any other Applicable Law which limits its ability to incur or consummate the transactions contemplated hereby.
SECTION 7.12    Employee Relations.  As of the Closing Date, no Credit Party is party to any collective bargaining agreement, nor has any labor union been recognized as the representative of its employees except as set forth on Schedule 7.12.  The Borrower knows of no pending, threatened or contemplated strikes, work stoppage or other collective labor disputes involving its employees or those of its Subsidiaries that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
SECTION 7.13    Burdensome Provisions.  The Credit Parties and their respective Subsidiaries do not presently anticipate that future expenditures needed to meet the provisions of any statutes, orders, rules or regulations of a Governmental Authority will be so burdensome as to have a Material Adverse Effect.  No Subsidiary is party to any agreement or instrument or otherwise subject to any restriction or encumbrance that restricts or limits its ability to make dividend payments or other distributions in respect of its Equity Interests to the Borrower or any Subsidiary or to transfer any of its assets or properties to the Borrower or 

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any other Subsidiary in each case other than existing under or by reason of the Loan Documents or Applicable Law.
SECTION 7.14    Financial Statements.  The audited and unaudited financial statements delivered pursuant to Section 6.1(e)(i)(A) and Section 6.1(e)(i)(B) are complete and correct and fairly present on a Consolidated basis the assets, liabilities and financial position of the Borrower and its Subsidiaries as at such dates, and the results of the operations and changes of financial position for the periods then ended (other than customary year-end adjustments for unaudited financial statements and the absence of footnotes from unaudited financial statements).  All such financial statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP.  Such financial statements show all material indebtedness and other material liabilities, direct or contingent, of the Borrower and its Subsidiaries as of the date thereof, including material liabilities for taxes, material commitments, and Indebtedness, in each case, to the extent required to be disclosed under GAAP.  The projections delivered pursuant to Section 6.1(e)(i)(C) and were prepared in good faith on the basis of the assumptions stated therein, which assumptions are believed to be reasonable in light of then existing conditions except that such financial projections and statements shall be subject to normal year end closing and audit adjustments (it being recognized by the Lenders that projections are not to be viewed as facts and that the actual results during the period or periods covered by such projections may vary from such projections).
SECTION 7.15    No Material Adverse Change.  Since December 31, 2018, there has been no material adverse change in the properties, business, operations, or condition (financial or otherwise) of the Borrower and its Subsidiaries and no event has occurred or condition arisen, either individually or in the aggregate, that could reasonably be expected to have a Material Adverse Effect.
SECTION 7.16    Solvency.  The Borrower is Solvent, and the Borrower and its Subsidiaries, on a Consolidated basis, are Solvent.
SECTION 7.17    Title to Properties.  Each Credit Party and each Subsidiary thereof has such title to the real property owned or leased by it as is necessary or desirable to the conduct of its business and valid and legal title to all of its personal property and assets, except (a) those which have been disposed of by the Credit Parties and their Subsidiaries subsequent to such date which dispositions have been in the ordinary course of business or as otherwise expressly permitted hereunder and (b) where the failure to have such title, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.
SECTION 7.18    Litigation.  There are no actions, suits or proceedings pending nor, to its knowledge, threatened against or in any other way relating adversely to or affecting any Credit Party or any Subsidiary thereof or any of their respective properties in any court or before any arbitrator of any kind or before or by any Governmental Authority that could reasonably be expected to have a Material Adverse Effect.
SECTION 7.19    Insurance.  The Borrower and each Subsidiary maintains in effect insurance that complies with the requirements of Section 8.6.  
SECTION 7.20    Anti-Corruption Laws; Anti-Money Laundering Laws; and Sanctions.  
(a)None of (i) the Borrower, any Subsidiary or, to the knowledge of the Borrower or such Subsidiary, any of their respective directors, officers, employees or affiliates, or (ii) to the knowledge of any Credit Party, any agent or representative of the Borrower or any Subsidiary that will act in any capacity in connection with or benefit from the Credit Facility, (A) is a Sanctioned Person or currently the subject or target of any Sanctions, (B) has its assets located in a Sanctioned Country, (C) is under administrative, civil 

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or criminal investigation for an alleged violation of, or received notice from or made a voluntary disclosure to any governmental entity regarding a possible violation of, Anti-Corruption Laws, Anti-Money Laundering Laws or Sanctions by a governmental authority that enforces Sanctions or any Anti-Corruption Laws or Anti-Money Laundering Laws, or (D) directly or indirectly derives revenues from investments in, or transactions with, Sanctioned Persons.  
(b)Each of the Borrower and its Subsidiaries has implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower and its Subsidiaries and their respective directors, officers, employees, agents and Affiliates with the Anti-Corruption Laws, Anti-Money Laundering Laws and applicable Sanctions.  
(c)Each of the Borrower and its Subsidiaries, and to the knowledge of the Borrower, each director, officer, employee, agent and Affiliate of the Borrower and each such Subsidiary, is in compliance with the Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions in all material respects.
(d)No proceeds of any Extension of Credit have been used, directly or indirectly, by the Borrower, any of its Subsidiaries or any of its or their respective directors, officers, employees and agents (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, including any payments (directly or indirectly) to a Sanctioned Person or a Sanctioned Country or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.
SECTION 7.21    Absence of Defaults.  No event has occurred or is continuing (a) which constitutes a Default or an Event of Default, or (b) which constitutes, or which with the passage of time or giving of notice or both would constitute, a default or event of default by any Credit Party or any Subsidiary thereof under any judgment, decree or order to which any Credit Party or any Subsidiary thereof is a party or by which any Credit Party or any Subsidiary thereof or any of their respective properties may be bound or which would require any Credit Party or any Subsidiary thereof to make any payment thereunder prior to the scheduled maturity date therefor that, in any case under this clause (b), could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
SECTION 7.22    Senior Indebtedness Status.  The Obligations of each Credit Party under this Agreement and each of the other Loan Documents ranks and shall continue to rank at least senior in priority of payment to all Subordinated Indebtedness of each such Person and is designated as “Senior Indebtedness” under all instruments and documents, now or in the future, relating to all Subordinated Indebtedness of such Person.
SECTION 7.23    Disclosure.  The Borrower has disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which any Credit Party and any Subsidiary thereof are subject, and all other matters known to them, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  No financial statement, material report, material certificate or other material information furnished (whether in writing or orally) by or on behalf of any Credit Party or any Subsidiary thereof to the Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished), taken together as a whole, contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected 

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financial information, pro forma financial information, estimated financial information and other projected or estimated information, such information was prepared in good faith based upon assumptions believed to be reasonable at the time (it being recognized by the Lenders that projections are not to be viewed as facts and that the actual results during the period or periods covered by such projections may vary from such projections).  As of the Closing Date, all of the information included in the Beneficial Ownership Certification is true and correct.
ARTICLE VIII     
 
AFFIRMATIVE COVENANTS
Until all of the Obligations (other than contingent indemnification obligations not then due) have been paid and satisfied in full in cash, all Letters of Credit have been terminated or expired and the Commitments terminated, each Credit Party will, and will cause each of its Subsidiaries to:
SECTION 8.1    Financial Statements and Budgets.  Deliver to the Administrative Agent, in form and detail satisfactory to the Administrative Agent (which shall promptly make such information available to the Lenders in accordance with its customary practice):
(a)    Annual Financial Statements.  As soon as practicable and in any event within ninety (90) days (or, if earlier, on the date of any required public filing thereof) after the end of each Fiscal Year (commencing with the Fiscal Year ended December 31, 2019), an audited Consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as of the close of such Fiscal Year and audited Consolidated and consolidating statements of income, retained earnings and cash flows including the notes thereto, all in reasonable detail setting forth in comparative form the corresponding figures as of the end of and for the preceding Fiscal Year and prepared in accordance with GAAP and, if applicable, containing disclosure of the effect on the financial position or results of operations of any change in the application of accounting principles and practices during the year.  Such annual financial statements shall be audited by an independent certified public accounting firm of recognized national standing acceptable to the Administrative Agent, and accompanied by a report and opinion thereon by such certified public accountants prepared in accordance with generally accepted auditing standards that is not subject to any “going concern” or similar qualification or exception or any qualification as to the scope of such audit or with respect to accounting principles followed by the Borrower or any of its Subsidiaries not in accordance with GAAP.
(b)    Quarterly Financial Statements.  As soon as practicable and in any event within forty-five (45) days (or, if earlier, on the date of any required public filing thereof) after the end of the first three fiscal quarters of each Fiscal Year (commencing with the fiscal quarter ended September 30, 2019), an unaudited Consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as of the close of such fiscal quarter and unaudited Consolidated and consolidating statements of income, retained earnings and cash flows and a report containing management’s discussion and analysis of such financial statements for the fiscal quarter then ended and that portion of the Fiscal Year then ended, including the notes thereto, all in reasonable detail setting forth in comparative form the corresponding figures as of the end of and for the corresponding period in the preceding Fiscal Year and prepared by the Borrower in accordance with GAAP and, if applicable, containing disclosure of the effect on the financial position or results of operations of any change in the application of accounting principles and practices during the period, and certified by the chief financial officer of the Borrower to present fairly in all material respects the financial condition of the Borrower and its Subsidiaries on a Consolidated and consolidating basis as 

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of their respective dates and the results of operations of the Borrower and its Subsidiaries for the respective periods then ended, subject to normal year-end adjustments and the absence of footnotes.
(c)    Annual Business Plan and Budget.  As soon as practicable and in any event within forty-five (45) days after the end of each Fiscal Year, a business plan and operating and capital budget of the Borrower and its Subsidiaries for the ensuing four (4) fiscal quarters, such plan to be prepared in accordance with GAAP and to include, on a quarterly basis, the following:  a quarterly operating and capital budget, a projected income statement, calculations demonstrating projected compliance with the financial covenants set forth in Section 9.13 and a report containing management’s discussion and analysis of such budget with a reasonable disclosure of the key assumptions and drivers with respect to such budget, accompanied by a certificate from a Responsible Officer of the Borrower to the effect that such budget contains good faith estimates (utilizing assumptions believed to be reasonable at the time of delivery of such budget) of the financial condition and operations of the Borrower and its Subsidiaries for such period.
SECTION 8.2    Certificates; Other Reports.  Deliver to the Administrative Agent (which shall promptly make such information available to the Lenders in accordance with its customary practice):
(a)    at each time financial statements are delivered pursuant to Sections 8.1(a) or (b) and at such other times as the Administrative Agent shall reasonably request, a duly completed Officer’s Compliance Certificate signed by the chief executive officer, chief financial officer, treasurer or controller of the Borrower and a report containing management’s discussion and analysis of such financial statements;
(b)    at each time financial statements are delivered pursuant to Sections 8.1(a) or (b) and at such other times as the Administrative Agent shall reasonably request, a certification of the Consolidated EBITDA and aggregate net book value of the assets of the Borrower and its Subsidiaries attributable to Immaterial Subsidiaries;
(c)    at each time financial statements are delivered pursuant to Section 8.1(a), a certificate of the independent certified public accountants of the Borrower certifying such financial statements that in connection with their audit, nothing came to their attention that caused them to believe that the Credit Parties failed to comply with the terms, covenants, provisions or conditions of Section 9.13, insofar as they relate to financial and accounting matters or, if such is not the case, specifying such non-compliance and its nature and period of existence;
(d)    promptly upon receipt thereof, copies of all reports, if any, submitted to any Credit Party, any Subsidiary thereof or any of their respective boards of directors by their respective independent public accountants in connection with their auditing function, including, without limitation, any management report and any management responses thereto;
(e)    promptly after the furnishing thereof, copies of any statement or report furnished to any holder of Indebtedness of any Credit Party or any Subsidiary thereof in excess of the Threshold Amount pursuant to the terms of any indenture, loan or credit or similar agreement;
(f)    promptly after the assertion or occurrence thereof, notice of any action or proceeding against or of any noncompliance by any Credit Party or any Subsidiary thereof with any Environmental Law that could reasonably be expected to have a Material Adverse Effect;
(g)    promptly after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of the Borrower, and copies of all annual, regular, periodic and special reports and registration statements which the Borrower may file or 

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be required to file with the SEC under Section 13 or 15(d) of the Exchange Act, or with any national securities exchange, and in any case not otherwise required to be delivered to the Administrative Agent pursuant hereto;
(h)    promptly, and in any event within five (5) Business Days after receipt thereof by any Credit Party or any Subsidiary thereof, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by such agency regarding financial or other operational results of any Credit Party or any Subsidiary thereof;
(i)    promptly upon the request thereof, such other information and documentation required under applicable “know your customer” rules and regulations, the PATRIOT Act or any applicable Anti-Money Laundering Laws or Anti-Corruption Laws, in each case as from time to time reasonably requested by the Administrative Agent or any Lender; and
(j)    such other information regarding the operations, business affairs and financial condition of any Credit Party or any Subsidiary thereof as the Administrative Agent or any Lender may reasonably request.
Documents required to be delivered pursuant to Section 8.1(a) or (b) or Section 8.2(f) or (g) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet at the website address listed in Section 12.1; or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that: (i) the Borrower shall deliver paper copies of such documents to the Administrative Agent or any Lender that requests the Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (ii) the Borrower shall notify the Administrative Agent and each Lender (by facsimile or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions of such documents.  Notwithstanding anything contained herein, upon request from the Administrative Agent, the Borrower shall provide paper copies of the Officer’s Compliance Certificates required by Section 8.2 to the Administrative Agent.  Except for such Officer’s Compliance Certificates, the Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.
The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will make available to the Lenders and the Issuing Lender materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on the Platform and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to the Borrower or its securities) (each, a “Public Lender”).  The Borrower hereby agrees that it will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and that (w) all such Borrower Materials shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, means that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative Agent, the Arrangers, the Issuing Lender and the Lenders to treat such Borrower Materials as not containing any material non-public information 

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(although it may be sensitive and proprietary) with respect to the Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 12.10); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor;” and (z) the Administrative Agent and the Arrangers shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor.”  
SECTION 8.3    Notice of Litigation and Other Matters.  Promptly (but in no event later than ten (10) days after any Responsible Officer of any Credit Party obtains knowledge thereof) notify the Administrative Agent in writing of (which shall promptly make such information available to the Lenders in accordance with its customary practice):
(a)    the occurrence of any Default or Event of Default;
(b)    the commencement of all proceedings and investigations by or before any Governmental Authority and all actions and proceedings in any court or before any arbitrator against or involving any Credit Party or any Subsidiary thereof or any of their respective properties, assets or businesses in each case that if adversely determined could reasonably be expected to result in a Material Adverse Effect;
(c)    any notice of any violation received by any Credit Party or any Subsidiary thereof from any Governmental Authority including, without limitation, any notice of violation of applicable Environmental Laws which in any such case could reasonably be expected to have a Material Adverse Effect;
(d)    any labor controversy that has resulted in a strike or other work action against any Credit Party or any Subsidiary thereof that could reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect;
(e)    any attachment, judgment, lien, levy or order exceeding the Threshold Amount that may be assessed against any Credit Party or any Subsidiary thereof;
(f)    (i) any unfavorable determination letter from the IRS regarding the qualification of an Employee Benefit Plan under Section 401(a) of the Code (along with a copy thereof), (ii) all notices received by any Credit Party or any ERISA Affiliate of the PBGC’s intent to terminate any Pension Plan or to have a trustee appointed to administer any Pension Plan, (iii) all notices received by any Credit Party or any ERISA Affiliate from a Multiemployer Plan sponsor concerning the imposition or amount of withdrawal liability pursuant to Section 4202 of ERISA and (iv) the Borrower obtaining knowledge or reason to know that any Credit Party or any ERISA Affiliate has filed or intends to file a notice of intent to terminate any Pension Plan under a distress termination within the meaning of Section 4041(c) of ERISA; and
(g)    any event which makes any of the representations set forth in Article VII that is subject to materiality or Material Adverse Effect qualifications inaccurate in any respect or any event which makes any of the representations set forth in Article VII that is not subject to materiality or Material Adverse Effect qualifications inaccurate in any material respect.
Each notice pursuant to Section 8.3 shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action the Borrower has taken and proposes to take with respect thereto.  Each notice pursuant to Section 8.3(a) shall describe 

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with particularity any and all provisions of this Agreement and any other Loan Document that have been breached.
SECTION 8.4    Preservation of Corporate Existence and Related Matters.  Except as permitted by Section 9.4, preserve and maintain its separate corporate existence and all rights, franchises, licenses and privileges necessary to the conduct of its business, and qualify and remain qualified as a foreign corporation or other entity and authorized to do business in each jurisdiction in which the failure to so qualify could reasonably be expected to have a Material Adverse Effect.
SECTION 8.5    Maintenance of Property and Licenses.
(a)    Protect and preserve all Properties necessary in and material to its business, including material copyrights, patents, trade names, service marks and trademarks; maintain in good working order and condition, ordinary wear and tear excepted, all buildings, equipment and other tangible real and personal property; and from time to time make or cause to be made all repairs, renewals and replacements thereof and additions to such Property necessary for the conduct of its business, so that the business carried on in connection therewith may be conducted in a commercially reasonable manner, in each case except as such action or inaction would not reasonably be expected to result in a Material Adverse Effect.
(b)    Maintain, in full force and effect in all material respects, each and every material license, permit, certification, qualification, approval or franchise issued by any Governmental Authority (each a “License”) required for each of them to conduct their respective businesses as presently conducted.
SECTION 8.6    Insurance.  Maintain insurance with financially sound and reputable insurance companies against at least such risks and in at least such amounts as are customarily maintained by similar businesses and as may be required by Applicable Law.  The Borrower shall, from time to time upon reasonable request, deliver to the Administrative Agent information in reasonable detail as to the insurance then in effect, stating the names of the insurance companies, the amounts and rates of the insurance, the dates of the expiration thereof and the properties and risks covered thereby.  
SECTION 8.7    Accounting Methods and Financial Records.  Maintain a system of accounting, and keep proper books, records and accounts (which shall be true and complete in all material respects) as may be required or as may be necessary to permit the preparation of financial statements in accordance with GAAP and in compliance with the regulations of any Governmental Authority having jurisdiction over it or any of its Properties.
SECTION 8.8    Payment of Taxes and Other Obligations.  Pay and perform (a) all material taxes, assessments and other governmental charges that may be levied or assessed upon it or any of its Property; provided, that the Borrower or such Subsidiary may contest any item described in this clause (a) in good faith so long as adequate reserves are maintained with respect thereto in accordance with GAAP and (b) except where the failure to pay or perform such items described in this clause (b) could not reasonably be expected to have a Material Adverse Effect, all other Indebtedness, obligations and liabilities in accordance with customary trade practices.
SECTION 8.9    Compliance with Laws and Approvals.  Observe and remain in compliance with all Applicable Laws and maintain in full force and effect all Governmental Approvals, in each case applicable to the conduct of its business, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

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SECTION 8.10    Environmental Laws.  In addition to and without limiting the generality of Section 8.9, except where the failure to so comply could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (a) comply with, and ensure such compliance by all tenants and subtenants with all applicable Environmental Laws and obtain and comply with and maintain, and ensure that all tenants and subtenants, if any, obtain and comply with and maintain, any and all licenses, approvals, notifications, registrations or permits required by applicable Environmental Laws and (b) conduct and complete all investigations, studies, sampling and testing, and all remedial, removal and other actions required under applicable Environmental Laws, and promptly comply with all lawful orders and directives of any Governmental Authority regarding applicable Environmental Laws.
SECTION 8.11    Compliance with ERISA.  In addition to and without limiting the generality of Section 8.9, (a) except where the failure to so comply could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) comply with applicable provisions of ERISA, the Code and the regulations and published interpretations thereunder with respect to all Employee Benefit Plans, (ii) not take any action or fail to take action the result of which could reasonably be expected to result in a liability to the PBGC or to a Multiemployer Plan, (iii) not participate in any prohibited transaction that could result in any civil penalty under ERISA or tax under the Code and (iv) operate each Employee Benefit Plan in such a manner that will not incur any tax liability under Section 4980B of the Code or any liability to any qualified beneficiary as defined in Section 4980B of the Code and (b) furnish to the Administrative Agent upon the Administrative Agent’s request such additional information about any Employee Benefit Plan as may be reasonably requested by the Administrative Agent.
SECTION 8.12    Visits and Inspections.  Permit representatives of the Administrative Agent or any Lender, from time to time upon prior reasonable notice and at such times during normal business hours, all at the expense of the Borrower, to visit and inspect its properties; inspect, audit and make extracts from its books, records and files, including, but not limited to, management letters prepared by independent accountants; and discuss with its principal officers, and its independent accountants, its business, assets, liabilities, financial condition, results of operations and business prospects; provided that excluding any such visits and inspections during the continuation of an Event of Default, the Administrative Agent shall not exercise such rights more often than once per fiscal year at the Borrower’s expense; provided further that upon the occurrence and during the continuance of an Event of Default, the Administrative Agent or any Lender may do any of the foregoing at the expense of the Borrower at any time during normal business hours without advance notice.  
SECTION 8.13    Additional Subsidiaries.
(a)    Additional Domestic Subsidiaries.  Promptly (and, in any event, within ninety (90) days, as such time period may be extended by the Administrative Agent in its sole discretion) (x) after the creation or acquisition (including by division) of any Person that becomes a Subsidiary (other than an Excluded Subsidiary) or (y) after any Domestic Subsidiary ceases to be an Excluded Subsidiary, cause such Person to (i) become a Subsidiary Guarantor by delivering to the Administrative Agent a duly executed supplement to the Guaranty Agreement or such other document as the Administrative Agent shall deem appropriate for such purpose, (ii)  deliver to the Administrative Agent such opinions, documents and certificates referred to in Section 6.1 as may be reasonably requested by the Administrative Agent, (iii)  deliver to the Administrative Agent such updated Schedules to the Loan Documents as requested by the Administrative Agent with respect to such Person, and (iv) deliver to the Administrative Agent such other documents as may be reasonably requested by the Administrative Agent, all in form, content and scope reasonably satisfactory to the Administrative Agent.

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(b)    Merger Subsidiaries.  Notwithstanding the foregoing, to the extent any new Subsidiary is created solely for the purpose of consummating a merger transaction pursuant to a Permitted Acquisition, and such new Subsidiary at no time holds any assets or liabilities other than any merger consideration contributed to it contemporaneously with the closing of such merger transaction, such new Subsidiary shall not be required to take the actions set forth in Section 8.13(a) until the consummation of such Permitted Acquisition (at which time, the surviving entity of the respective merger transaction shall be required to so comply with Section 8.13(a) within ninety (90) days of the consummation of such Permitted Acquisition, as such time period may be extended by the Administrative Agent in its sole discretion).
(c)    Immaterial Subsidiaries.  If at any time after a Responsible Officer of the Borrower obtains knowledge that the Subsidiaries that constitute Immaterial Subsidiaries account for, in the aggregate, more than (i) ten percent (10%) of the aggregate net book value of the assets of the Borrower and its Subsidiaries or (ii) ten percent (10%) of the Consolidated EBITDA, then the Borrower shall (A) identify in writing to the Administrative Agent one or more Subsidiaries to be removed from its designation as an Immaterial Subsidiary so that the Subsidiaries constituting Immaterial Subsidiaries account for, in the aggregate, not more than (1) ten percent (10%) of the aggregate net book value of the assets of the Borrower and its Subsidiaries and (2) ten percent (10%) of the Consolidated EBITDA and (B) cause such identified Subsidiaries to comply with the applicable provisions of Section 8.13(a) within the time provided therein.
SECTION 8.14    Use of Proceeds.
(a)    Use the proceeds of the Extensions of Credit (i) to refinance certain Indebtedness of the Borrower and its Subsidiaries, including, without limitation, the Existing Credit Agreement, (ii) pay fees, commissions and expenses in connection with the Transactions, and (iii) for working capital and general corporate purposes, including, without limitation, in each case to the extent permitted hereunder, capital expenditures, Permitted Acquisitions and Restricted Payments, of the Borrower and its Subsidiaries.
(b)    Use the proceeds of any Incremental Term Loan and any Incremental Revolving Credit Increase as permitted pursuant to Section 4.1, as applicable.
(c)    The Not request any Extension of Credit, and the Borrower shall not use, and shall ensure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Extension of Credit, directly or indirectly, (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws or Anti-Money Laundering Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto or (iv) for purchasing or carrying margin stock (within the meaning of Regulation T, U or X of the FRB) or for any purpose which violates the provisions of Regulation T, U or X of the FRB (it being agreed that the Borrower shall promptly furnish to the Administrative Agent and each requesting Lender a statement in conformity with the requirements of Form G-3 or Form U-1, as applicable, under Regulation U of the FRB).
SECTION 8.15    Compliance with Anti-Corruption Laws and Sanctions.  (a) Maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with all Anti-Corruption Laws, Anti-Money Laundering Laws and applicable Sanctions, (b) notify the Administrative Agent and each Lender that previously received a Beneficial Ownership Certification of any change in the information provided in the 

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Beneficial Ownership Certification that would result in a change to the list of beneficial owners identified therein (or, if applicable, the Borrower ceasing to fall within an express exclusion to the definition of “legal entity customer” under the Beneficial Ownership Regulation) and (c) promptly upon the reasonable request of the Administrative Agent or any Lender, provide the Administrative Agent or directly to such Lender, as the case may be, any information or documentation requested by it for purposes of complying with the Beneficial Ownership Regulation.
SECTION 8.16    Corporate Governance.  (a) Maintain entity records and books of account separate from those of any other entity which is an Affiliate of such entity, (b) not commingle its funds or assets with those of any other entity which is an Affiliate of such entity (except pursuant to cash management systems reasonably acceptable to the Administrative Agent) and (c) provide that its board of directors (or equivalent governing body) will hold all appropriate meetings to authorize and approve such entity’s actions, which meetings will be separate from those of any other entity which is an Affiliate of such entity.  For the purposes of this Section 8.16, “Affiliate” shall not include the Borrower or any Subsidiary thereof.
SECTION 8.17    Further Assurances.  Execute any and all further documents, agreements and instruments, and take all such further actions, which may be required under any Applicable Law, or which the Administrative Agent or the Required Lenders may reasonably request, to effectuate the transactions contemplated by the Loan Documents.
ARTICLE IX     
 
NEGATIVE COVENANTS
Until all of the Obligations (other than contingent, indemnification obligations not then due) have been paid and satisfied in full in cash, all Letters of Credit have been terminated or expired and the Commitments terminated, the Credit Parties will not, and will not permit any of their respective Subsidiaries to:
SECTION 9.1    Indebtedness.  Create, incur, assume or suffer to exist any Indebtedness except:
(a)    the Obligations;
(b)    Indebtedness (i) owing under Hedge Agreements entered into in order to manage existing or anticipated interest rate, exchange rate or commodity price risks and not for speculative purposes and (ii) owing under Guaranteed Cash Management Agreements entered into the ordinary course of business;
(c)    Indebtedness existing on the Closing Date and listed on Schedule 9.1, and any refinancings, refundings, renewals or extensions thereof; provided that (i) the principal amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder, (ii) the final maturity date and weighted average life of such refinancing, refunding, renewal or extension shall not be prior to or shorter than that applicable to the Indebtedness prior to such refinancing, refunding, renewal or extension and (iii) any refinancing, refunding, renewal or extension of any Subordinated Indebtedness shall be (A) on subordination terms at least as favorable to the Lenders, (B) no more restrictive on the Borrower and its Subsidiaries than the Subordinated Indebtedness being refinanced, refunded, renewed or extended and (C) in an amount not less than the amount outstanding at the time of such refinancing, refunding, renewal or extension;

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(d)    Capital Lease Obligations and Indebtedness incurred by the Borrower or any Domestic Subsidiary in connection with purchase money Indebtedness in an aggregate amount not to exceed the greater of (i) $50,000,000 and (ii) six and one-half percent (6.5%) of the Consolidated total assets of the Borrower and its Subsidiaries as shown on the balance sheets of the Borrower most recently delivered pursuant to Section 8.1(a) or 8.1(b), as applicable;
(e)    Indebtedness of a Person existing at the time such Person became a Domestic Subsidiary or assets were acquired by the Borrower or any Domestic Subsidiary from such Person in connection with an Investment permitted pursuant to Section 9.3, to the extent that (i) such Indebtedness was not incurred in connection with, or in contemplation of, such Person becoming a Domestic Subsidiary or the acquisition of such assets, (ii) neither the Borrower nor any Subsidiary thereof (other than such Person or any other Person that such Person merges with or that acquires the assets of such Person) shall have any liability or other obligation with respect to such Indebtedness and (iii) the aggregate outstanding principal amount of such Indebtedness does not exceed $35,000,000 at any time outstanding;
(f)    Guarantees with respect to Indebtedness permitted pursuant to subsections (a) through (e) of this Section;
(g)    unsecured intercompany Indebtedness:
(i)     owed by any Credit Party to another Credit Party;
(ii)     owed by any Credit Party to any Non-Guarantor Subsidiary (provided that such Indebtedness shall be subordinated to the Obligations in a manner reasonably satisfactory to the Administrative Agent); and
(i)    owed by any Non-Guarantor Subsidiary to any other Non-Guarantor Subsidiary; and
(iv)     owed by any Non-Guarantor Subsidiary to any Credit Party to the extent permitted pursuant to Section 9.3(a)(vi);
(h)    Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or other similar instrument drawn against insufficient funds in the ordinary course of business;
(i)    Subordinated Indebtedness of the Borrower and or any Subsidiary Guarantor; provided, that in the case of each incurrence of such Subordinated Indebtedness, (i) no Default or Event of Default shall have occurred and be continuing or would be caused by the incurrence of such Subordinated Indebtedness and (ii) the Administrative Agent shall have received satisfactory written evidence that the Borrower would be in compliance with the financial covenants set forth in Section 9.13 on a Pro Forma Basis after giving effect to the issuance of any such Subordinated Indebtedness;
(j)    Indebtedness under performance bonds, surety bonds, release, appeal and similar bonds, statutory obligations or with respect to workers’ compensation claims, in each case incurred in the ordinary course of business, and reimbursement obligations in respect of any of the foregoing;
(k)    Indebtedness of Foreign Subsidiaries in an aggregate principal amount not to exceed $50,000,000 at any time outstanding;

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(l)    unsecured Indebtedness of the Borrower or any Subsidiary Guarantor thereof not otherwise permitted pursuant to this Section; provided that (i) the Borrower shall be in compliance with the financial covenants set forth in Section 9.13, in each case on a Pro Forma Basis (based on the financial statements for the most recent fiscal quarter end for which financial statements have been provided) immediately after giving effect to the incurrence of such Indebtedness, (ii) the final maturity of such Indebtedness shall not be prior to the date that is ninety-one (91) days after the Latest Maturity Date, (iii) such Indebtedness will not have mandatory prepayment or mandatory amortization, redemption, sinking fund or similar prepayments (other than asset sale, change of control, fundamental change or similar mandatory offers to repurchase customary for high-yield or convertible debt securities) prior to the date that is ninety-one (91) days after the Latest Maturity Date at the time of the issuance of such Indebtedness, (iv) such Indebtedness is not guaranteed by any Domestic Subsidiary that is not a Subsidiary Guarantor, (v) to the extent such Indebtedness is subordinated in right of payment to the Obligations, any guaranty thereof by the Credit Parties shall be expressly subordinated to the Guaranteed Obligations on terms materially not less favorable to the Lenders than the subordination terms of such Indebtedness, (vi) the terms of such Indebtedness, taken as a whole, are no more restrictive on the Borrower and its Subsidiaries than the terms of the Loan Documents, taken as a whole, and (vii) no Event of Default shall have occurred and be continuing or result from the incurrence of such Indebtedness; and
(m)    other Indebtedness of any Credit Party or any Domestic Subsidiary thereof not otherwise permitted pursuant to this Section in an aggregate principal amount not to exceed $50,000,000 at any time outstanding; provided that, immediately before and immediately after giving pro forma effect to any secured Indebtedness, (i) no Default or Event of Default shall have occurred and be continuing and (ii) the Borrower shall have demonstrated compliance (based on the financial statements for the most recent fiscal quarter end for which financial statements have been provided) with the financial covenants set forth in Section 9.13.
SECTION 9.2    Liens.  Create, incur, assume or suffer to exist, any Lien on or with respect to any of its Property, whether now owned or hereafter acquired, except:
(a)    Liens created pursuant to the Loan Documents (including, without limitation, Liens in favor of the Swingline Lender and/or the Issuing Lender, as applicable, on Cash Collateral granted pursuant to the Loan Documents);
(b)    Liens in existence on the Closing Date and described on Schedule 9.2, and the replacement, renewal or extension thereof (including Liens incurred, assumed or suffered to exist in connection with any refinancing, refunding, renewal or extension of Indebtedness pursuant to Section 9.1(c) (solely to the extent that such Liens were in existence on the Closing Date and described on Schedule 9.2)); provided that the scope of any such Lien shall not be increased, or otherwise expanded, to cover any additional property or type of asset, as applicable, beyond that in existence on the Closing Date, except for products and proceeds of the foregoing;
(c)    Liens for taxes, assessments and other governmental charges or levies (excluding any Lien imposed pursuant to any of the provisions of ERISA or applicable Environmental Laws) (i) not yet due or as to which the period of grace (not to exceed thirty (30) days), if any, related thereto has not expired or (ii) which are being contested in good faith and by appropriate proceedings if adequate reserves are maintained to the extent required by GAAP;
(d)    the claims of materialmen, mechanics, carriers, warehousemen, processors or landlords for labor, materials, supplies or rentals incurred in the ordinary course of business, which (i) are not overdue 

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for a period of more than thirty (30) days, or if more than thirty (30) days overdue, no action has been taken to enforce such Liens and such Liens are being contested in good faith and by appropriate proceedings if adequate reserves are maintained to the extent required by GAAP and (ii) do not, individually or in the aggregate, materially impair the use thereof in the operation of the business of the Borrower or any of its Subsidiaries;
(e)    deposits or pledges made in the ordinary course of business in connection with, or to secure payment of, obligations under workers’ compensation, unemployment insurance and other types of social security or similar legislation, or to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety bonds (other than bonds related to judgments or litigation), performance bonds and other obligations of a like nature incurred in the ordinary course of business;
(f)    encumbrances in the nature of zoning restrictions, easements and rights or restrictions of record on the use of real property, which in the aggregate are not substantial in amount and which do not, in any case, detract from the value of such property or impair the use thereof in the ordinary conduct of business;
(g)    Liens arising from the filing of precautionary UCC financing statements relating solely to personal property leased pursuant to operating leases entered into in the ordinary course of business of the Borrower and its Subsidiaries;
(h)    Liens securing Indebtedness permitted under Section 9.1(d); provided that (i) such Liens shall be created substantially simultaneously with the acquisition, repair, improvement or lease, as applicable, of the related Property, (ii) such Liens do not at any time encumber any property other than the Property financed by such Indebtedness and (iii)  the principal amount of Indebtedness secured by any such Lien shall at no time exceed one hundred percent (100%) of the original price for the purchase, repair improvement or lease amount (as applicable) of such Property at the time of purchase, repair, improvement or lease (as applicable);
(i)    Liens securing judgments for the payment of money not constituting an Event of Default under Section 10.1(l) or securing appeal or other surety bonds relating to such judgments;
(j)    Liens on Property (i) of any Subsidiary which are in existence at the time that such Subsidiary is acquired pursuant to a Permitted Acquisition and (ii) of the Borrower or any of its Subsidiaries existing at the time such tangible property or tangible assets are purchased or otherwise acquired by the Borrower or such Subsidiary thereof pursuant to a transaction permitted pursuant to this Agreement; provided that, with respect to each of the foregoing clauses (i) and (ii), (A) such Liens are not incurred in connection with, or in anticipation of, such Permitted Acquisition, purchase or other acquisition, (B) such Liens are applicable only to specific Property, (C) such Liens are not “blanket” or all asset Liens, (D) such Liens do not attach to any other Property of the Borrower or any of its Subsidiaries and (E) the Indebtedness secured by such Liens is permitted under Section 9.1(e) of this Agreement (provided that, for purposes of this Section 9.2(j), the aggregate amount of Indebtedness under Section 9.1(e) which is secured by such Liens shall not to exceed $25,000,000 at any time outstanding);
(k)    (i) Liens of a collecting bank arising in the ordinary course of business under Section 4-210 of the Uniform Commercial Code in effect in the relevant jurisdiction and (ii) Liens of any depositary bank in connection with statutory, common law and contractual rights of set-off and recoupment with respect to any deposit account of the Borrower or any Subsidiary thereof;

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(l)    (i) contractual or statutory Liens of landlords to the extent relating to the property and assets relating to any lease agreements with such landlord, and (ii) contractual Liens of suppliers (including sellers of goods) or customers granted in the ordinary course of business to the extent limited to the property or assets relating to such contract;
(m)    any interest or title of a licensor, sublicensor, lessor or sublessor with respect to any assets under any license or lease agreement entered into in the ordinary course of business which do not (i) interfere in any material respect with the business of the Borrower or its Subsidiaries or materially detract from the value of the relevant assets of the Borrower or its Subsidiaries or (ii) secure any Indebtedness; and
(n)    Liens not otherwise permitted hereunder securing Indebtedness or other obligations in the aggregate principal amount not to exceed $25,000,000 at any time outstanding.
SECTION 9.3    Investments.  Purchase, own, invest in or otherwise acquire (in one transaction or a series of transactions), directly or indirectly, any Equity Interests, interests in any partnership or joint venture (including, without limitation, the creation or capitalization of any Subsidiary), evidence of Indebtedness or other obligation or security, substantially all or a portion of the business or assets of any other Person or any other investment or interest whatsoever in any other Person, or make or permit to exist, directly or indirectly, any loans, advances or extensions of credit to, or any investment in cash or by delivery of Property in, any Person (all the foregoing, “Investments”) except:
(a)    (i)     Investments existing on the Closing Date in Subsidiaries existing on the Closing Date;
(ii)     Investments existing on the Closing Date (other than Investments in Subsidiaries existing on the Closing Date) and described on Schedule 9.3;
(iii)     Investments made after the Closing Date by any Credit Party in any other Credit Party;
(iv)    Investments made after the Closing Date by any Non-Guarantor Subsidiary in any other Non-Guarantor Subsidiary; 
(v)    Investments made after the Closing Date by any Non-Guarantor Subsidiary in any Credit Party; and
(vi)    Investments made after the Closing Date by any Credit Party in any Non-Guarantor Subsidiary in an aggregate amount at any time outstanding not to exceed (A) $10,000,000 less (B) the amount of outstanding Investments made pursuant to Section 9.3(f)(ii) (provided that any Investments in the form of loans or advances made by any Credit Party to any Non-Guarantor Subsidiary pursuant to this clause (vi) shall be evidenced by a demand note in form and substance reasonably satisfactory to the Administrative Agent);
(b)    Investments in cash and Cash Equivalents;
(c)    deposits made in the ordinary course of business to secure the performance of leases or other obligations as permitted by Section 9.2;
(d)    Hedge Agreements permitted pursuant to Section 9.1;

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(e)    purchases of assets in the ordinary course of business;
(f)    Investments by the Borrower or any Subsidiary thereof in the form of:
(i)     Permitted Acquisitions to the extent that any Person or Property acquired in such Acquisition becomes a part of the Borrower or a Subsidiary Guarantor or becomes (whether or not such Person is a Wholly-Owned Subsidiary) a Subsidiary Guarantor in the manner contemplated by Section 8.13; and
(ii)     Permitted Acquisitions to the extent that any Person or Property acquired in such Acquisition does not become a Subsidiary Guarantor or a part of a Subsidiary Guarantor; provided that, immediately prior to giving effect to any such Permitted Acquisition, the Administrative Agent and the Lenders shall have received from the Borrower an Officer’s Compliance Certificate demonstrating, in form and substance reasonably satisfactory to the Administrative Agent, that after giving effect to any such Permitted Acquisition and determined on a Pro Forma Basis with respect thereto, the Consolidated EBITDA of all Credit Parties is greater than fifty percent (50%) of the Consolidated EBITDA of all Credit Parties and their Subsidiaries (including, without limitation, all Non-Guarantor Subsidiaries and the Person or Property acquired in connection with such Permitted Acquisition);
(g)    Investments in the form of loans and advances to officers, directors and employees in the ordinary course of business in an aggregate amount not to exceed at any time outstanding $500,000 (determined without regard to any write-downs or write-offs of such loans or advances);
(h)    Investments in the form of Restricted Payments permitted pursuant to Section 9.6;
(i)    Guarantees permitted pursuant to Section 9.1;
(j)    Investments consisting of extensions of credit in the nature of accounts receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss; and
(k)    Investments not otherwise permitted pursuant to this Section; provided that, immediately before and immediately after giving pro forma effect to any such Investments and any Indebtedness incurred in connection therewith, (i) no Default or Event of Default shall have occurred and be continuing and (ii) the Borrower shall be in compliance with the financial covenants set forth in Section 9.13, in each case on a Pro Forma Basis based on the financial statements for the most recent fiscal quarter end for which financial statements have been provided.
For purposes of determining the amount of any Investment outstanding for purposes of this Section 9.3, such amount shall be deemed to be the amount of such Investment when made, purchased or acquired (without adjustment for subsequent increases or decreases in the value of such Investment) less any amount realized in respect of such Investment upon the sale, collection or return of capital (not to exceed the original amount invested).
SECTION 9.4    Fundamental Changes.  Merge, consolidate or enter into any similar combination with, or enter into any Asset Disposition of all or substantially all of its assets (whether in a single transaction or a series of transactions) with, any other Person or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution) except:

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(a)    (i) any Wholly-Owned Subsidiary of the Borrower may be merged, amalgamated or consolidated with or into the Borrower (provided that the Borrower shall be the continuing or surviving entity) or (ii) any Wholly-Owned Subsidiary of the Borrower may be merged, amalgamated or consolidated with or into any Subsidiary Guarantor (provided that such Subsidiary Guarantor shall be the continuing or surviving entity or simultaneously with such transaction, the continuing or surviving entity shall become a Subsidiary Guarantor and the Borrower shall comply with Section 8.13 in connection therewith);
(b)    (i) any Non-Guarantor Subsidiary that is a Foreign Subsidiary may be merged, amalgamated or consolidated with or into, or be liquidated into, any other Non-Guarantor Subsidiary and (ii) any Non-Guarantor Subsidiary that is a Domestic Subsidiary may be merged, amalgamated or consolidated with or into, or be liquidated into, any other Non-Guarantor Subsidiary that is a Domestic Subsidiary;
(c)    any Subsidiary may dispose of all or substantially all of its assets (upon voluntary liquidation, dissolution, winding up or otherwise) to the Borrower or any Subsidiary Guarantor; provided that, with respect to any such disposition by any Non-Guarantor Subsidiary, the consideration for such disposition shall not exceed the fair value of such assets;
(d)    (i) any Non-Guarantor Subsidiary that is a Foreign Subsidiary may dispose of all or substantially all of its assets (upon voluntary liquidation, dissolution, winding up or otherwise) to any other Non-Guarantor Subsidiary and (ii) any Non-Guarantor Subsidiary that is a Domestic Subsidiary may dispose of all or substantially all of its assets (upon voluntary liquidation, dissolution, winding up or otherwise) to any other Non-Guarantor Subsidiary that is a Domestic Subsidiary;
(e)    any Wholly-Owned Subsidiary of the Borrower may merge with or into the Person such Wholly-Owned Subsidiary was formed to acquire in connection with any acquisition permitted hereunder (including, without limitation, any Permitted Acquisition permitted pursuant to Section 9.3(g)); provided that in the case of any merger involving a Wholly-Owned Subsidiary that is a Domestic Subsidiary, (i) a Subsidiary Guarantor shall be the continuing or surviving entity or (ii) simultaneously with such transaction, the continuing or surviving entity shall become a Subsidiary Guarantor and the Borrower shall comply with Section 8.13 in connection therewith; and
(f)    any Person may merge into the Borrower or any of its Wholly-Owned Subsidiaries in connection with a Permitted Acquisition permitted pursuant to Section 9.3(g); provided that (i) in the case of a merger involving the Borrower or a Subsidiary Guarantor, the continuing or surviving Person shall be the Borrower or such Subsidiary Guarantor and (ii) the continuing or surviving Person shall be the Borrower or a Wholly-Owned Subsidiary of the Borrower.
SECTION 9.5    Asset Dispositions.  Make any Asset Disposition except:
(a)    the sale of obsolete, worn-out or surplus assets no longer used or usable in the business of the Borrower or any of its Subsidiaries;
(b)    non-exclusive licenses and sublicenses of intellectual property rights in the ordinary course of business not interfering, individually or in the aggregate, in any material respect with the conduct of the business of the Borrower and its Subsidiaries;
(c)    leases, subleases, licenses or sublicenses of real or personal property granted by the Borrower or any of its Subsidiaries to others in the ordinary course of business not detracting from the value of 

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such real or personal property or interfering in any material respect with the business of the Borrower or any of its Subsidiaries;
(d)    Asset Dispositions in connection with Insurance and Condemnation Events;
(e)    Assets Dispositions in connection with transactions permitted by Section 9.4; and
(f)    Asset Dispositions not otherwise permitted pursuant to this Section; provided that (i) at the time of such Asset Disposition, no Default or Event of Default shall exist or would result from such Asset Disposition and (ii) for Asset Dispositions with an aggregate fair market value excess of $50,000,000, such Asset Disposition is made for fair market value and the consideration received shall be no less than 75% in cash, and (iii) the aggregate fair market value of all property disposed of in reliance on this clause (f) shall not exceed 10% of the Consolidated total assets of the Borrower and its Subsidiaries as shown on the balance sheets of the Borrower most recently delivered pursuant to Section 8.1(a) or (b), as applicable, in any Fiscal Year.
SECTION 9.6    Restricted Payments.  Declare or pay any dividend on, or make any payment or other distribution on account of, or purchase, redeem, retire or otherwise acquire (directly or indirectly), or set apart assets for a sinking or other analogous fund for the purchase, redemption, retirement or other acquisition of, any class of Equity Interests of any Credit Party or any Subsidiary thereof, or make any distribution of cash, property or assets to the holders of shares of any Equity Interests of any Credit Party or any Subsidiary thereof (all of the foregoing, the “Restricted Payments”) provided that:
(a)    so long as no Default or Event of Default has occurred and is continuing or would result therefrom, the Borrower or any of its Subsidiaries may pay dividends in shares of its own Qualified Equity Interests;
(b)    any Subsidiary of the Borrower may pay cash dividends to the Borrower or any Subsidiary Guarantor (and, if applicable, to other holders of its outstanding Qualified Equity Interests on a pro rata basis);
(c)    (i) any Non-Guarantor Subsidiary that is a Domestic Subsidiary may make Restricted Payments to any other Non-Guarantor Subsidiary that is a Domestic Subsidiary (and, if applicable, to other holders of its outstanding Equity Interests on a ratable basis) and (ii) any Non-Guarantor Subsidiary that is a Foreign Subsidiary may make Restricted Payments to any other Non-Guarantor Subsidiary (and, if applicable, to other holders of its outstanding Equity Interests on a ratable basis); and
(d)    the Borrower may declare and make Restricted Payments not otherwise permitted pursuant to this Section 9.6; provided that, immediately before and immediately after the making of any such Restricted Payment, (i) no Default or Event of Default shall have occurred and be continuing and (ii) the Borrower shall be in compliance with the financial covenants set forth in Section 9.13, in each case on a Pro Forma Basis based on the financial statements for the most recent fiscal quarter end for which financial statements have been provided.
SECTION 9.7    Transactions with Affiliates.  Directly or indirectly enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property, the rendering of any service or the payment of any management, advisory or similar fees, with (a) any officer, director, holder of any Equity Interests in, or other Affiliate of the Borrower or any of its Subsidiaries or (b) any Affiliate of any such officer, director or holder, other than:

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(i)    transactions permitted by Sections 9.1, 9.3, 9.4, 9.5, 9.6 and 9.12;
(ii)    transactions existing on the Closing Date and described on Schedule 9.7;
(iii)    transactions among Credit Parties;
(iv)    other transactions in the ordinary course of business on terms as favorable as would be obtained by it on a comparable arm’s-length transaction with an independent, unrelated third party as determined in good faith by the board of directors (or equivalent governing body) of the Borrower;
(v)    employment and severance arrangements (including equity incentive plans and employee benefit plans and arrangements) with their respective officers and employees in the ordinary course of business; and
(vi)    payment of customary fees and reasonable out of pocket costs to, and indemnities for the benefit of, directors, officers and employees of the Borrower and its Subsidiaries in the ordinary course of business to the extent attributable to the ownership or operation of the Borrower and its Subsidiaries.
SECTION 9.8    Accounting Changes; Organizational Documents.
(a)    Change its Fiscal Year end, or make (without the consent of the Administrative Agent) any material change in its accounting treatment and reporting practices except as required by GAAP.
(b)    Amend, modify or change its articles of incorporation (or corporate charter or other similar organizational documents) or amend, modify or change its bylaws (or other similar documents) in any manner materially adverse to the rights or interests of the Lenders.
SECTION 9.9    Payments and Modifications of Subordinated Indebtedness.
(a)    Amend, modify, waive or supplement (or permit the modification, amendment, waiver or supplement of) any of the terms or provisions of any Subordinated Indebtedness in any respect which would materially and adversely affect the rights or interests of the Administrative Agent and Lenders hereunder.
(b)    Cancel, forgive, make any payment or prepayment on, or redeem or acquire for value (including, without limitation, (x) by way of depositing with any trustee with respect thereto money or securities before due for the purpose of paying when due and (y) at the maturity thereof) any Subordinated Indebtedness, except:
(i)    refinancings, refundings, renewals, extensions or exchange of any Subordinated Indebtedness permitted by Section 9.1(c), (g)(ii), (i), (l) or (m), and by any subordination provisions applicable thereto;
(ii)    payments and prepayments of any Subordinated Indebtedness made solely with the proceeds of Qualified Equity Interests; and

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(iii)    the payment of interest, expenses and indemnities in respect of Subordinated Indebtedness incurred under Section 9.1(c), (g)(ii), (i), (l) or (m) (other than any such payments prohibited by any subordination provisions applicable thereto).
SECTION 9.10    No Further Negative Pledges; Restrictive Agreements.
(a)    Enter into, assume or be subject to any agreement prohibiting or otherwise restricting the creation or assumption of any Lien upon its properties or assets, whether now owned or hereafter acquired, or requiring the grant of any security for such obligation if security is given for some other obligation, except (i) pursuant to this Agreement and the other Loan Documents, (ii) pursuant to any document or instrument governing Indebtedness incurred pursuant to Section 9.1(d) (provided that any such restriction contained therein relates only to the asset or assets financed thereby), (iii) customary restrictions contained in the organizational documents of any Non-Guarantor Subsidiary as of the Closing Date and (iv) customary restrictions in connection with any Permitted Lien or any document or instrument governing any Permitted Lien (provided that any such restriction contained therein relates only to the asset or assets subject to such Permitted Lien).
(b)    Create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction on the ability of any Credit Party or any Subsidiary thereof to (i) pay dividends or make any other distributions to any Credit Party or any Subsidiary on its Equity Interests or with respect to any other interest or participation in, or measured by, its profits, (ii) pay any Indebtedness or other obligation owed to any Credit Party or (iii) make loans or advances to any Credit Party, except in each case for such encumbrances or restrictions existing under or by reason of (A) this Agreement and the other Loan Documents and (B) Applicable Law.
(c)    Create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction on the ability of any Credit Party or any Subsidiary thereof to (i) sell, lease or transfer any of its properties or assets to any Credit Party or (ii) act as a Credit Party pursuant to the Loan Documents or any renewals, refinancings, exchanges, refundings or extension thereof, except in each case for such encumbrances or restrictions existing under or by reason of (A) this Agreement and the other Loan Documents, (B) Applicable Law, (C) any document or instrument governing Indebtedness incurred pursuant to Section 9.1(d) (provided that any such restriction contained therein relates only to the asset or assets acquired in connection therewith), (D) any Permitted Lien or any document or instrument governing any Permitted Lien (provided that any such restriction contained therein relates only to the asset or assets subject to such Permitted Lien), (E) obligations that are binding on a Subsidiary at the time such Subsidiary first becomes a Subsidiary of the Borrower, so long as such obligations are not entered into in contemplation of such Person becoming a Subsidiary, (F) customary restrictions contained in an agreement related to the sale of Property (to the extent such sale is permitted pursuant to Section 9.5) that limit the transfer of such Property pending the consummation of such sale, (G) customary restrictions in leases, subleases, licenses and sublicenses or asset sale agreements otherwise permitted by this Agreement so long as such restrictions relate only to the assets subject thereto and (H) customary provisions restricting assignment of any agreement entered into in the ordinary course of business.
SECTION 9.11    Nature of Business.  Engage in any business other than the business conducted by the Borrower and its Subsidiaries as of the Closing Date and business activities that are reasonably related or ancillary thereto, are reasonable extensions thereof or are useful in the primary business thereof.
SECTION 9.12    Sale Leasebacks.  Directly or indirectly become or remain liable as lessee or as guarantor or other surety with respect to any lease, whether an operating lease or a capital lease, of any 

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Property (whether real, personal or mixed), whether now owned or hereafter acquired, (a) which any Credit Party or any Subsidiary thereof has sold or transferred or is to sell or transfer to a Person which is not another Credit Party or Subsidiary of a Credit Party or (b) which any Credit Party or any Subsidiary of a Credit Party intends to use for substantially the same purpose as any other Property that has been sold or is to be sold or transferred by such Credit Party or such Subsidiary to another Person which is not another Credit Party or Subsidiary of a Credit Party in connection with such lease.
SECTION 9.13    Financial Covenants.
(a)    Consolidated Total Net Leverage Ratio.  As of the last day of any fiscal quarter, permit the Consolidated Total Net Leverage Ratio to be greater than 3.50 to 1.00.
(b)    Consolidated Interest Coverage Ratio.  As of the last day of any fiscal quarter, permit the Consolidated Interest Coverage Ratio to be less than 3.00 to 1.00.
SECTION 9.14    Disposal of Subsidiary Interests.  Permit any Domestic Subsidiary (other than an Immaterial Subsidiary) to be a non-Wholly-Owned Subsidiary except as a result of or in connection with a dissolution, merger, amalgamation, consolidation or disposition permitted by Section 9.4 or 9.5.
ARTICLE X     
 
DEFAULT AND REMEDIES
SECTION 10.1    Events of Default.  Each of the following shall constitute an Event of Default:
(a)    Default in Payment of Principal of Loans and Reimbursement Obligations.  The Borrower shall default in any payment of principal of any Loan or Reimbursement Obligation when and as due (whether at maturity, by reason of acceleration or otherwise).
(b)    Other Payment Default.  The Borrower shall default in the payment when and as due (whether at maturity, by reason of acceleration or otherwise) of interest on any Loan or Reimbursement Obligation or the payment of any other Obligation, and such default shall continue for a period of three (3) Business Days.
(c)    Misrepresentation.  Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of any Credit Party or any Subsidiary thereof in this Agreement, in any other Loan Document, or in any document delivered in connection herewith or therewith that is subject to materiality or Material Adverse Effect qualifications, shall be incorrect or misleading in any respect when made or deemed made or any representation, warranty, certification or statement of fact made or deemed made by or on behalf of any Credit Party or any Subsidiary thereof in this Agreement, any other Loan Document, or in any document delivered in connection herewith or therewith that is not subject to materiality or Material Adverse Effect qualifications, shall be incorrect or misleading in any material respect when made or deemed made.
(d)    Default in Performance of Certain Covenants.  Any Credit Party or any Subsidiary thereof shall default in the performance or observance of any covenant or agreement contained in Sections 8.1, 8.2, 8.3, 8.4, 8.12, 8.13, 8.14, 8.15, 8.18 or Article IX.
(e)    Default in Performance of Other Covenants and Conditions.  Any Credit Party or any Subsidiary thereof shall default in the performance or observance of any term, covenant, condition or 

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agreement contained in this Agreement (other than as specifically provided for in this Section) or any other Loan Document and such default shall continue for a period of thirty (30) days after the earlier of (i) the Administrative Agent’s delivery of written notice thereof to the Borrower and (ii) a Responsible Officer of any Credit Party having obtained knowledge thereof.
(f)    Indebtedness Cross-Default.  Any Credit Party or any Subsidiary thereof shall (i) default in the payment of any Indebtedness (other than the Loans or any Reimbursement Obligation) the aggregate principal amount (including undrawn committed or available amounts), or with respect to any Hedge Agreement, the Hedge Termination Value, of which is in excess of the Threshold Amount beyond the period of grace if any, provided in the instrument or agreement under which such Indebtedness was created, or (ii) default in the observance or performance of any other agreement or condition relating to any Indebtedness (other than the Loans or any Reimbursement Obligation) the aggregate principal amount (including undrawn committed or available amounts), or with respect to any Hedge Agreement, the Hedge Termination Value, of which is in excess of the Threshold Amount or contained in any instrument or agreement evidencing, securing or relating thereto or any other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, with the giving of notice and/or lapse of time, if required, any such Indebtedness to become due or be required to be prepaid, repurchased or redeemed, in each case prior to its stated maturity (any applicable grace period having expired).
(g)    Change in Control.  Any Change in Control shall occur.
(h)    Voluntary Bankruptcy Proceeding.  Any Credit Party or any Subsidiary thereof shall (i) commence a voluntary case under any Debtor Relief Laws, (ii) file a petition seeking to take advantage of any Debtor Relief Laws, (iii) consent to or fail to contest in a timely and appropriate manner any petition filed against it in an involuntary case under any Debtor Relief Laws, (iv) apply for or consent to, or fail to contest in a timely and appropriate manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator of itself or of a substantial part of its property, domestic or foreign, (v) admit in writing its inability to pay its debts as they become due, (vi) make a general assignment for the benefit of creditors, or (vii) take any corporate action for the purpose of authorizing any of the foregoing.
(i)    Involuntary Bankruptcy Proceeding.  A case or other proceeding shall be commenced against any Credit Party or any Subsidiary thereof in any court of competent jurisdiction seeking (i) relief under any Debtor Relief Laws, or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like for any Credit Party or any Subsidiary thereof or for all or any substantial part of their respective assets, domestic or foreign, and such case or proceeding shall continue without dismissal or stay for a period of sixty (60) consecutive days, or an order granting the relief requested in such case or proceeding (including, but not limited to, an order for relief under such federal bankruptcy laws) shall be entered.
(j)    Failure of Agreements.  Any provision of this Agreement or any provision of any other Loan Document shall for any reason cease to be valid and binding on any Credit Party or any Subsidiary thereof party thereto or any such Person shall so state in writing, in each case other than in accordance with the express terms hereof or thereof.
(k)    ERISA Events.  The occurrence of any of the following events: (i) any Credit Party or any ERISA Affiliate fails to make full payment when due of all amounts which, under the provisions of any Pension Plan or Sections 412 or 430 of the Code, any Credit Party or any ERISA Affiliate is required to 

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pay as contributions thereto and such unpaid amounts are in excess of the Threshold Amount, (ii) a Termination Event or (iii) any Credit Party or any ERISA Affiliate as employers under one or more Multiemployer Plans makes a complete or partial withdrawal from any such Multiemployer Plan and the plan sponsor of such Multiemployer Plans notifies such withdrawing employer that such employer has incurred a withdrawal liability requiring payments in an amount exceeding the Threshold Amount.
(l)    Judgment.  One or more judgments, orders or decrees shall be entered against any Credit Party or any Subsidiary thereof by any court and continues without having been discharged, vacated or stayed for a period of thirty (30) consecutive days after the entry thereof and such judgments, orders or decrees are either (i) for the payment of money, individually or in the aggregate (not paid or fully covered by insurance as to which the relevant insurance company has acknowledged coverage), equal to or in excess of the Threshold Amount or (ii) for injunctive relief and could reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.
SECTION 10.2    Remedies.  Upon the occurrence and during the continuance of an Event of Default, with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower:
(a)    Acceleration; Termination of Credit Facility.  Terminate the Revolving Credit Commitment and declare the principal of and interest on the Loans and the Reimbursement Obligations at the time outstanding, and all other amounts owed to the Lenders and to the Administrative Agent under this Agreement or any of the other Loan Documents (including, without limitation, all L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented or shall be entitled to present the documents required thereunder) and all other Obligations, to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by each Credit Party, anything in this Agreement or the other Loan Documents to the contrary notwithstanding, and terminate the Credit Facility and any right of the Borrower to request borrowings or Letters of Credit thereunder; provided, that upon the occurrence of an Event of Default specified in Section 10.1(h) or (i), the Credit Facility shall be automatically terminated and all Obligations shall automatically become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by each Credit Party, anything in this Agreement or in any other Loan Document to the contrary notwithstanding.
(b)    Letters of Credit.  With respect to all Letters of Credit with respect to which presentment for honor shall not have occurred at the time of an acceleration pursuant to the preceding paragraph, demand that the Borrower deposit in a Cash Collateral account opened by the Administrative Agent an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit.  Amounts held in such Cash Collateral account shall be applied by the Administrative Agent to the payment of drafts drawn under such Letters of Credit, and the unused portion thereof after all such Letters of Credit shall have expired or been fully drawn upon, if any, shall be applied to repay the other Guaranteed Obligations in accordance with Section 10.3.  After all such Letters of Credit shall have expired or been fully drawn upon, the Reimbursement Obligation shall have been satisfied and all other Guaranteed Obligations shall have been paid in full, the balance, if any, in such Cash Collateral account shall be returned to the Borrower.
(c)    General Remedies.  Exercise on behalf of the Guaranteed Parties all of its other rights and remedies under this Agreement, the other Loan Documents and Applicable Law, in order to satisfy all of the Guaranteed Obligations.
SECTION 10.3    Rights and Remedies Cumulative; Non-Waiver; etc.

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(a)    The enumeration of the rights and remedies of the Administrative Agent and the Lenders set forth in this Agreement is not intended to be exhaustive and the exercise by the Administrative Agent and the Lenders of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be cumulative, and shall be in addition to any other right or remedy given hereunder or under the other Loan Documents or that may now or hereafter exist at law or in equity or by suit or otherwise.  No delay or failure to take action on the part of the Administrative Agent or any Lender in exercising any right, power or privilege shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege or shall be construed to be a waiver of any Event of Default.  No course of dealing between the Borrower, the Administrative Agent and the Lenders or their respective agents or employees shall be effective to change, modify or discharge any provision of this Agreement or any of the other Loan Documents or to constitute a waiver of any Event of Default.
(b)    Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Credit Parties or any of them shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance with Section 10.2 for the benefit of all the Lenders and the Issuing Lender; provided that the foregoing shall not prohibit (a) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (b) the Issuing Lender or the Swingline Lender from exercising the rights and remedies that inure to its benefit (solely in its capacity as an Issuing Lender or Swingline Lender, as the case may be) hereunder and under the other Loan Documents, (c) any Lender from exercising setoff rights in accordance with Section 12.4 (subject to the terms of Section 5.6), or (d) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Credit Party under any Debtor Relief Law; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 10.2 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 5.6, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders.
SECTION 10.4    Crediting of Payments and Proceeds.  In the event that the Obligations have been accelerated pursuant to Section 10.2 or the Administrative Agent or any Lender has exercised any remedy set forth in this Agreement or any other Loan Document, all payments received on account of the Guaranteed Obligations and all net proceeds from the enforcement of the Guaranteed Obligations shall be applied by the Administrative Agent as follows:
First, to payment of that portion of the Guaranteed Obligations constituting fees, indemnities, expenses and other amounts, including attorney fees, payable to the Administrative Agent in its capacity as such, the Issuing Lender in their capacity as such and the Swingline Lender in its capacity as such, ratably among the Administrative Agent, the Issuing Lender and Swingline Lender in proportion to the respective amounts described in this clause First payable to them;
Second, to payment of that portion of the Guaranteed Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders under the Loan Documents, including attorney fees, ratably among the Lenders in proportion to the respective amounts described in this clause Second payable to them;

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Third, to payment of that portion of the Guaranteed Obligations constituting accrued and unpaid interest on the Loans and Reimbursement Obligations, ratably among the Lenders in proportion to the respective amounts described in this clause Third payable to them;
Fourth, to payment of that portion of the Guaranteed Obligations constituting unpaid principal of the Loans, Reimbursement Obligations and payment obligations then owing under Guaranteed Hedge Agreements and Guaranteed Cash Management Agreements, ratably among the Lenders, the Issuing Lender, the Hedge Banks and the Cash Management Banks in proportion to the respective amounts described in this clause Fourth payable to them;
Fifth, to the Administrative Agent for the account of the Issuing Lender, to Cash Collateralize any L/C Obligations then outstanding; and
Last, the balance, if any, after all of the Guaranteed Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by Applicable Law.
Notwithstanding the foregoing, Guaranteed Obligations arising under Guaranteed Cash Management Agreements and Guaranteed Hedge Agreements shall be excluded from the application described above if the Administrative Agent has not received written notice thereof, together with such supporting documentation as the Administrative Agent may request, from the applicable Cash Management Bank or Hedge Bank, as the case may be.  Each Cash Management Bank or Hedge Bank not a party to this Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of Article XI for itself and its Affiliates as if a “Lender” party hereto.
SECTION 10.5    Administrative Agent May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:
(a)    to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations and all other Guaranteed Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the Issuing Lender and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Issuing Lender and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the Issuing Lender and the Administrative Agent under Sections 3.3, 5.3 and 12.3) allowed in such judicial proceeding; and
(b)    to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and each Issuing Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the Issuing Lender, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent 

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and its agents and counsel, and any other amounts due the Administrative Agent under Sections 3.3, 5.3 and 12.3.
ARTICLE XI     
 
THE ADMINISTRATIVE AGENT
SECTION 11.1    Appointment and Authority.  Each of the Lenders and each Issuing Lender hereby irrevocably appoints Wells Fargo to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the Issuing Lender, and neither the Borrower nor any Subsidiary thereof shall have rights as a third-party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law.  Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.
SECTION 11.2    Rights as a Lender.  The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.
SECTION 11.3    Exculpatory Provisions.
(a)    The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder and thereunder shall be administrative in nature.  Without limiting the generality of the foregoing, the Administrative Agent:
(i)    shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and is continuing;
(ii)    shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or Applicable Law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

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(iii)    shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries or Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.
(b)    The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section 12.2 and Section 10.2) or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final nonappealable judgment.  The Administrative Agent shall be deemed not to have knowledge of any Default or Event of Default unless and until notice describing such Default or Event of Default is given to the Administrative Agent by the Borrower, a Lender or an Issuing Lender.
(c)    The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, (v) the satisfaction of any condition set forth in Article VI or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent or (vi) the utilization of the Issuing Lender’s L/C Commitment (it being understood and agreed that the Issuing Lender shall monitor compliance with its L/C Commitment without any further action by the Administrative Agent).
SECTION 11.4    Reliance by the Administrative Agent.  The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an Issuing Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender or such Issuing Lender unless the Administrative Agent shall have received notice to the contrary from such Lender or such Issuing Lender prior to the making of such Loan or the issuance of such Letter of Credit.  The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.
SECTION 11.5    Delegation of Duties.  The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the Credit Facility as well as activities as Administrative 

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Agent.  The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub‐agents.
SECTION 11.6    Resignation of Administrative Agent.
(a)    The Administrative Agent may at any time give notice of its resignation to the Lenders, the Issuing Lender and the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower and subject to the consent of the Borrower (provided no Event of Default has occurred and is continuing at the time of such resignation), to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders and the Issuing Lender, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that in no event shall any such successor Administrative Agent be a Defaulting Lender.  Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.
(b)    If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law, by notice in writing to the Borrower and such Person, remove such Person as Administrative Agent and, in consultation with the Borrower, appoint a successor.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.
(c)    With effect from the Resignation Effective Date or the Removal Effective Date (as applicable), (i) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the Issuing Lender under any of the Loan Documents, the retiring or removed Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (ii) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and each Issuing Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents.  The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 12.3 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective 

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Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.
(d)    Any resignation by, or removal of, Wells Fargo as Administrative Agent pursuant to this Section shall also constitute its resignation as an Issuing Lender and Swingline Lender.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Issuing Lender, if in its sole discretion it elects to, and Swingline Lender, (b) the retiring Issuing Lender and Swingline Lender shall be discharged from all of their respective duties and obligations hereunder or under the other Loan Documents, and (c) the successor Issuing Lender, if in its sole discretion it elects to, shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangement satisfactory to the retiring Issuing Lender to effectively assume the obligations of the retiring Issuing Lender with respect to such Letters of Credit.
SECTION 11.7    Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and each Issuing Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender and each Issuing Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
SECTION 11.8    No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of the syndication agents, documentation agents, co-agents, arrangers or bookrunners listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or an Issuing Lender hereunder.
SECTION 11.9    Guaranty Matters.  Each of the Lenders (including in its or any of its Affiliate’s capacities as a potential Hedge Bank or Cash Management Bank) irrevocably authorize the Administrative Agent, at its option and in its discretion, to release any Subsidiary Guarantor from its obligations under any Loan Documents if such Person (i) ceases to be a Subsidiary as a result of a transaction permitted under the Loan Documents or (ii) is designated as, and qualifies to become, an Immaterial Subsidiary.  Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release any Subsidiary Guarantor from its obligations under the Guaranty Agreement pursuant to this Section 11.9.  In each case as specified in this Section 11.9, the Administrative Agent will, at the Borrower’s expense, execute and deliver to the applicable Credit Party such documents as such Credit Party may reasonably request to subordinate its interest in such item or to release such Subsidiary Guarantor from its obligations under the Guaranty Agreement, in each case in accordance with the terms of the Loan Documents and this Section 11.9.  .
SECTION 11.10    Guaranteed Hedge Agreements and Guaranteed Cash Management Agreements.  No Cash Management Bank or Hedge Bank that obtains the benefits of Section 10.4 shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents.  Notwithstanding any other provision of this Article XI to the contrary, the Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements 

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have been made with respect to, Guaranteed Cash Management Agreements and Guaranteed Hedge Agreements unless the Administrative Agent has received written notice of such Guaranteed Cash Management Agreements and Guaranteed Hedge Agreements, together with such supporting documentation as the Administrative Agent may request, from the applicable Cash Management Bank or Hedge Bank, as the case may be.
ARTICLE XII     
 
MISCELLANEOUS
SECTION 12.1    Notices.
(a)    Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows:
If to the Borrower:
Tyler Technologies, Inc. 
5101 Tennyson Parkway 
Plano, Texas 75024 
Attention of:  Brian Miller, Executive Vice President & 
Chief Financial Officer  
Telephone No.: (972) 713-3720 
Facsimile No.: (972) 713-3741 
E-mail: brian.miller@tyertech.com
With copies to:
Attention of:  H. Lynn Moore, Jr., General Counsel 
Telephone No.: (972) 713-3770 
E-mail: lynn.moore@tylertech.com 
And to:
K&L Gates LLP 
1717 Main Street, Suite 2800 
Dallas, Texas 75201 
Attention of:  Laurie G. Lang 
Telephone No.:  (214) 939-4945 
E-mail: Laurie.Lang@klgates.com 
If to Wells Fargo as 
Administrative  
Agent:
Wells Fargo Bank, National Association 
MAC D1109-019 
1525 West W.T. Harris Blvd. 

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Charlotte, NC 28262 
Attn: Syndication Agency Services 
Telecopy:  (704) 590-3481
If to any Lender:
To the address set forth on the Register
Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent 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).  Notices delivered through electronic communications to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).
(b)    Electronic Communications.  Notices and other communications to the Lenders and the Issuing Lender hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or the Issuing Lender pursuant to Article II if such Lender or such Issuing Lender, as applicable, has notified the Administrative Agent that is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications.  Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice, email or other communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.
(c)    Administrative Agent’s Office.  The Administrative Agent hereby designates its office located at the address set forth above, or any subsequent office which shall have been specified for such purpose by written notice to the Borrower and Lenders, as the Administrative Agent’s Office referred to herein, to which payments due are to be made and at which Loans will be disbursed and Letters of Credit requested.
(d)    Change of Address, Etc.  Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.
(e)    Platform.
(i)    Each Credit Party agrees that the Administrative Agent may, but shall not be obligated to, make the Borrower Materials available to the Issuing Lender and the other Lenders by posting the Borrower Materials on the Platform.  

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(ii)    The Platform is provided “as is” and “as available.”  The Agent Parties (as defined below) do not warrant the accuracy or completeness of the Borrower Materials or the adequacy of the Platform, and expressly disclaim liability for errors or omissions in the Borrower Materials.  No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Borrower Materials or the Platform.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to any Credit Party, any Lender or any other Person or entity for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of any Credit Party’s or the Administrative Agent’s transmission of communications through the Internet (including, without limitation, the Platform), except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party; provided that in no event shall any Agent Party have any liability to any Credit Party, any Lender, the Issuing Lender or any other Person for indirect, special, incidental, consequential or punitive damages, losses or expenses (as opposed to actual damages, losses or expenses).  
(f)    Private Side Designation.  Each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and Applicable Law, including United States Federal and state securities Applicable Laws, to make reference to Borrower Materials that are not made available through the “Public Side Information” portion of the Platform and that may contain material non-public information with respect to the Borrower or its securities for purposes of United States Federal or state securities Applicable Laws.
SECTION 12.2    Amendments, Waivers and Consents.  Except as set forth below or as specifically provided in any Loan Document, any term, covenant, agreement or condition of this Agreement or any of the other Loan Documents may be amended or waived by the Lenders, and any consent given by the Lenders, if, but only if, such amendment, waiver or consent is in writing signed by the Required Lenders (or by the Administrative Agent with the consent of the Required Lenders) and delivered to the Administrative Agent and, in the case of an amendment, signed by the Borrower; provided, that no amendment, waiver or consent shall:
(a)    increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 10.2) or the amount of Loans of any Lender, in any case, without the written consent of such Lender;
(b)    waive, extend or postpone any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly and adversely affected thereby;
(c)    reduce the principal of, or the rate of interest specified herein on, any Loan or Reimbursement Obligation, or (subject to clause (iv) of the proviso set forth in the paragraph below) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly and adversely affected thereby; provided that only the consent of the Required Lenders shall be necessary (i) to waive any obligation of the Borrower to pay interest at the rate set forth in Section 5.1(b) 

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during the continuance of an Event of Default or (ii) to amend any financial covenant hereunder (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Loan or L/C Obligation or to reduce any fee payable hereunder;
(d)    change Section 5.6 or Section 10.4 in a manner that would alter the pro rata sharing of payments or order of application required thereby without the written consent of each Lender directly and adversely affected thereby;
(e)    consent to the assignment or transfer by any Credit Party of such Credit Party’s rights and obligations under any Loan Document to which it is a party (except as permitted pursuant to Section 9.4), in each case, without the written consent of each Lender; 
(f)    release (i) all of the Subsidiary Guarantors or (ii) Subsidiary Guarantors comprising substantially all of the credit support for the Guaranteed Obligations, in any case, from the Guaranty Agreement (other than as authorized in Section 11.9), without the written consent of each Lender; or
(g)    except as otherwise permitted by this Section 12.2, change any provision of this Section or reduce the percentages specified in the definitions of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender directly affected thereby; 
provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by each affected Issuing Lender in addition to the Lenders required above, affect the rights or duties of such Issuing Lender under this Agreement or any Letter of Credit Application relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swingline Lender in addition to the Lenders required above, affect the rights or duties of the Swingline Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; (iv) the Engagement Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto, (v) each Letter of Credit Application may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto; provided that a copy of such amended Letter of Credit Application shall be promptly delivered to the Administrative Agent upon such amendment or waiver, (vi) any waiver, amendment or modification of this Agreement that by its terms affects the rights or duties under this Agreement of Lenders holding Loans or Commitments of a particular Class (but not the Lenders holding Loans or Commitments of any other Class) may be effected by an agreement or agreements in writing entered into by the Borrower and the requisite percentage in interest of the affected Class of Lenders that would be required to consent thereto under this Section if such Class of Lenders were the only Class of Lenders hereunder at the time, and (vii) the Administrative Agent and the Borrower shall be permitted to amend any provision of the Loan Documents (and such amendment shall become effective without any further action or consent of any other party to any Loan Document) if the Administrative Agent and the Borrower shall have jointly identified an obvious error or any error, ambiguity, defect, inconsistency or omission of a technical or immaterial nature in any such provision and (viii) the Administrative Agent and the Borrower may, without the consent of any Lender, enter into amendments or modifications to this Agreement or any of the other Loan Documents or to enter into additional Loan Documents as the Administrative Agent reasonably deems appropriate in order to implement any Benchmark Replacement or any Benchmark Replacement Conforming Changes or otherwise effectuate the terms of Section 5.8(c) in accordance with the terms of Section 5.8(c).  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any 

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amendment, waiver or consent hereunder, except that the Revolving Credit Commitment of such Lender may not be increased or extended without the consent of such Lender.
Notwithstanding anything in this Agreement to the contrary, each Lender hereby irrevocably authorizes the Administrative Agent on its behalf, and without further consent, to enter into amendments or modifications to this Agreement (including, without limitation, amendments to this Section 12.2) or any of the other Loan Documents or to enter into additional Loan Documents as the Administrative Agent reasonably deems appropriate in order to effectuate the terms of Section 4.1 (including, without limitation, as applicable, (1) to permit the Incremental Term Loans and the Incremental Revolving Credit Increases to share ratably in the benefits of this Agreement and the other Loan Documents and (2) to include the Incremental Term Loan Commitments and the Incremental Revolving Credit Increase, as applicable, or outstanding Incremental Term Loans and outstanding Incremental Revolving Credit Increase, as applicable, in any determination of (i) Required Lenders or (ii) similar required lender terms applicable thereto); provided that no amendment or modification shall result in any increase in the amount of any Lender’s Commitment or any increase in any Lender’s Commitment Percentage, in each case, without the written consent of such affected Lender.
SECTION 12.3    Expenses; Indemnity.
(a)    Costs and Expenses.  The Borrower and any other Credit Party, jointly and severally, shall pay (i) all reasonable out of pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the Credit Facility, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out of pocket expenses incurred by the Issuing Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out of pocket expenses incurred by the Administrative Agent, any Lender or the Issuing Lender (including the fees, charges and disbursements of any counsel for the Administrative Agent, any Lender or the Issuing Lender), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out of pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.
(b)    Indemnification by the Borrower.  The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), each Lender and each Issuing Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, and shall pay or reimburse any such Indemnitee for, any and all losses, claims (including, without limitation, any Environmental Claims), penalties, damages, liabilities and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any other Credit Party), arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby (including, without limitation, the Transactions), (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Lender to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any 

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property owned or operated by any Credit Party or any Subsidiary thereof, or any Environmental Claim related in any way to any Credit Party or any Subsidiary, (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by any Credit Party or any Subsidiary thereof, and regardless of whether any Indemnitee is a party thereto, or (v) any claim (including, without limitation, any Environmental Claims), investigation, litigation or other proceeding (whether or not the Administrative Agent or any Lender is a party thereto) and the prosecution and defense thereof, arising out of or in any way connected with the Loans, this Agreement, any other Loan Document, or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby, including without limitation, reasonable attorneys and consultant’s fees, provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.  This Section 12.3(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.
(c)    Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under clause (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), the Issuing Lender, the Swingline Lender or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), such Issuing Lender, the Swingline Lender or such Related Party, as the case may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender’s share of the Total Credit Exposure at such time, or if the Total Credit Exposure has been reduced to zero, then based on such Lender’s share of the Total Credit Exposure immediately prior to such reduction) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); provided that with respect to such unpaid amounts owed to the Issuing Lender or the Swingline Lender solely in its capacity as such, only the Revolving Credit Lenders shall be required to pay such unpaid amounts, such payment to be made severally among them based on such Revolving Credit Lenders’ Revolving Credit Commitment Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought or, if the Revolving Credit Commitment has been reduced to zero as of such time, determined immediately prior to such reduction); provided, further, that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent), such Issuing Lender or the Swingline Lender in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent), such Issuing Lender or the Swingline Lender in connection with such capacity.  The obligations of the Lenders under this clause (c) are subject to the provisions of Section 5.7.
(d)    Waiver of Consequential Damages, Etc.  To the fullest extent permitted by Applicable Law, the Borrower and each other Credit Party shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.  No Indemnitee referred to in clause (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

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(e)    Payments.  All amounts due under this Section shall be payable promptly after demand therefor.
(f)    Survival.  Each party’s obligations under this Section shall survive the termination of the Loan Documents and payment of the obligations hereunder.
SECTION 12.4    Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender, each Issuing Lender, the Swingline Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, after obtaining the prior written consent of the Administrative Agent, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, such Issuing Lender, the Swingline Lender or any such Affiliate to or for the credit or the account of the Borrower or any other Credit Party against any and all of the obligations of the Borrower or such Credit Party now or hereafter existing under this Agreement or any other Loan Document to such Lender, such Issuing Lender or the Swingline Lender or any of their respective Affiliates, irrespective of whether or not such Lender, such Issuing Lender, the Swingline Lender or any such Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower or such Credit Party may be contingent or unmatured or are owed to a branch or office of such Lender, such Issuing Lender, the Swingline Lender or such Affiliate different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 10.4 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Lender, the Swingline Lender and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.  The rights of each Lender, each Issuing Lender, the Swingline Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, such Issuing Lender, the Swingline Lender or their respective Affiliates may have.  Each Lender, such Issuing Lender and the Swingline Lender agree to notify the Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application.  
SECTION 12.5    Governing Law; Jurisdiction, Etc.
(a)    Governing Law.  This Agreement and the other Loan Documents and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of New York (without giving effect to the choice of law principles thereof (other than Section 5-1401 of the General Obligations Law of the State of New York)).
(b)    Submission to Jurisdiction.  The Borrower and each other Credit Party irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Administrative Agent, any Lender, the Issuing Lender, the Swingline Lender, or any Related Party of the foregoing in any way relating to this Agreement or any other Loan Document or the transactions relating hereto or thereto, in any forum other than the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and any appellate court from any 

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thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by Applicable Law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement or in any other Loan Document shall affect any right that the Administrative Agent, any Lender, the Issuing Lender or the Swingline Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or any other Credit Party or its properties in the courts of any jurisdiction.
(c)    Waiver of Venue.  The Borrower and each other Credit Party irrevocably and unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(d)    Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 12.1.  Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law.
SECTION 12.6    Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
SECTION 12.7    Reversal of Payments.  To the extent any Credit Party makes a payment or payments to the Administrative Agent for the ratable benefit of the Lenders which payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any Debtor Relief Law, other Applicable Law or equitable cause, then, to the extent of such payment or proceeds repaid, the Guaranteed Obligations or part thereof intended to be satisfied shall be revived and continued in full force and effect as if such payment or proceeds had not been received by the Administrative Agent.
SECTION 12.8    Injunctive Relief.  The Borrower recognizes that, in the event the Borrower fails to perform, observe or discharge any of its obligations or liabilities under this Agreement, any remedy of law may prove to be inadequate relief to the Lenders.  Therefore, the Borrower agrees that the Lenders, at the Lenders’ option, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.
SECTION 12.9    Successors and Assigns; Participations.

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(a)    Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b)    Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Revolving Credit Commitment and the Loans at the time owing to it); provided that, in each case with respect to any Credit Facility, any such assignment shall be subject to the following conditions:
(i)    Minimum Amounts.
(A)    in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and/or the Loans at the time owing to it (in each case with respect to any Credit Facility) or contemporaneous assignments to related Approved Funds (determined after giving effect to such assignments) that equal at least the amount specified in paragraph (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and
(B)    in any case not described in paragraph (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000, in the case of any assignment in respect of the Revolving Credit Facility, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); provided that the Borrower shall be deemed to have given its consent five (5) Business Days after the date written notice thereof has been delivered by the assigning Lender (through the Administrative Agent) unless such consent is expressly refused by the Borrower prior to such fifth (5th) Business Day;
(ii)    Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loan or the Commitment assigned;

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(iii)    Required Consents.  No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section and, in addition:
(A)    the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund or (z) the assignment is made in connection with the primary syndication of the Credit Facility and during the period commencing on the Closing Date and ending on the date that is ninety (90) days following the Closing Date; provided, that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within 5 Business Days after having received notice thereof; and provided, further, that the Borrower’s consent shall not be required during the primary syndication of the Credit Facility;
(B)    the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of (i) the Revolving Credit Facility or any unfunded Incremental Term Loan Commitments if such assignment is to a Person that is not a Lender with a Revolving Credit Commitment or an Incremental Term Loan Commitment, as applicable, an Affiliate of such Lender or an Approved Fund with respect to such Lender or (ii) the Incremental Term Loans to a Person who is not a Lender, an Affiliate of a Lender or an Approved Fund; and
(C)    the consents of the Issuing Lender and the Swingline Lender shall be required for any assignment in respect of the Revolving Credit Facility.
(iv)    Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500 for each assignment; provided that (A) only one such fee will be payable in connection with simultaneous assignments to two or more related Approved Funds by a Lender and (B) the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.
(v)    No Assignment to Certain Persons.  No such assignment shall be made to (A) the Borrower or any of its Subsidiaries or Affiliates or (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B).
(vi)    No Assignment to Natural Persons.  No such assignment shall be made to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person).
(vii)    Certain Additional Payments.  In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested, but not funded by, the Defaulting Lender, to each of which the applicable 

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assignee and assignor hereby irrevocably consent), to (A) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the Issuing Lender, the Swingline Lender and each other Lender hereunder (and interest accrued thereon), and (B) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and Swingline Loans in accordance with its Revolving Credit Commitment Percentage.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.
Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 5.8, 5.9, 5.10, 5.11 and 12.3 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section (other than a purported assignment to a natural Person or the Borrower or any of the Borrower’s Subsidiaries or Affiliates, which shall be null and void.)
(c)    Register.  The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices in Charlotte, North Carolina, a copy of each Assignment and Assumption and each Lender Joinder Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amounts of (and stated interest on) the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the Borrower and any Lender (but only to the extent of entries in the Register that are applicable to such Lender), at any reasonable time and from time to time upon reasonable prior notice.
(d)    Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural Person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person, or the Borrower or any of the Borrower’s Subsidiaries or Affiliates) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent, the Issuing Lender, the Swingline Lender and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be 

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responsible for the indemnity under Section 12.3(c) with respect to any payments made by such Lender to its Participant(s).
Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in Section 12.2(b), (c), (d) or (e) that directly and adversely affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 5.9, 5.10 and 5.11 (subject to the requirements and limitations therein, including the requirements under Section 5.11(g) (it being understood that the documentation required under Section 5.11(g) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Section 5.12 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 5.10 or 5.11, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.  Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 5.12(b) with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 12.4 as though it were a Lender; provided that such Participant agrees to be subject to Section 5.6 as though it were a Lender.
Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts of (and stated interest on) each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
(e)    Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
(f)    Cashless Settlement.  Notwithstanding anything to the contrary contained in this Agreement, any Lender may exchange, continue or rollover all or a portion of its Loans in connection with any refinancing, extension, loan modification or similar transaction permitted by the terms of this Agreement, pursuant to a cashless settlement mechanism approved by the Borrower, the Administrative Agent and such Lender.

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SECTION 12.10    Treatment of Certain Information; Confidentiality.  Each of the Administrative Agent, the Lenders and the Issuing Lender agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Related Parties in connection with the Credit Facility, this Agreement, the transactions contemplated hereby or in connection with marketing of services by such Affiliate or Related Party to the Borrower or any of its Subsidiaries (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent required or requested by, or required to be disclosed to, any regulatory or similar authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) as to the extent required by Applicable Laws or regulations or in any legal, judicial, administrative or other compulsory process, (d) to any other party hereto, (e) in connection with the exercise of any remedies under this Agreement, under any other Loan Document or under any Guaranteed Hedge Agreement or Guaranteed Cash Management Agreement, or any action or proceeding relating to this Agreement, any other Loan Document or any Guaranteed Hedge Agreement or Guaranteed Cash Management Agreement, or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder, (g) on a confidential basis to (i) any rating agency in connection with rating the Borrower or its Subsidiaries or the Credit Facility or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the Credit Facility, (h) with the consent of the Borrower, (i) deal terms and other information customarily reported to Thomson Reuters, other bank market data collectors and similar service providers to the lending industry and service providers to the Administrative Agent and the Lenders in connection with the administration of the Loan Documents, (j) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent, any Lender, the Issuing Lender or any of their respective Affiliates from a third party that is not, to such Person’s knowledge, subject to confidentiality obligations to the Borrower, (k) to governmental regulatory authorities in connection with any regulatory examination of the Administrative Agent or any Lender or in accordance with the Administrative Agent’s or any Lender’s regulatory compliance policy if the Administrative Agent or such Lender deems necessary for the mitigation of claims by those authorities against the Administrative Agent or such Lender or any of its subsidiaries or affiliates, (l) to the extent that such information is independently developed by such Person, or (m) for purposes of establishing a “due diligence” defense.  For purposes of this Section, “Information” means all information received from any Credit Party or any Subsidiary thereof relating to any Credit Party or any Subsidiary thereof or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender or the Issuing Lender on a nonconfidential basis prior to disclosure by any Credit Party or any Subsidiary thereof; provided that, in the case of information received from a Credit Party or any Subsidiary thereof after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.
SECTION 12.11    Performance of Duties.  Each of the Credit Party’s obligations under this Agreement and each of the other Loan Documents shall be performed by such Credit Party at its sole cost and expense.

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SECTION 12.12    All Powers Coupled with Interest.  All powers of attorney and other authorizations granted to the Lenders, the Administrative Agent and any Persons designated by the Administrative Agent or any Lender pursuant to any provisions of this Agreement or any of the other Loan Documents shall be deemed coupled with an interest and shall be irrevocable so long as any of the Obligations remain unpaid or unsatisfied, any of the Commitments remain in effect or the Credit Facility has not been terminated.
SECTION 12.13    Survival.
(a)    All representations and warranties set forth in Article VII and all representations and warranties contained in any certificate, or any of the Loan Documents (including, but not limited to, any such representation or warranty made in or in connection with any amendment thereto) shall constitute representations and warranties made under this Agreement.  All representations and warranties made under this Agreement shall be made or deemed to be made at and as of the Closing Date (except those that are expressly made as of a specific date), shall survive the Closing Date and shall not be waived by the execution and delivery of this Agreement, any investigation made by or on behalf of the Lenders or any borrowing hereunder.
(b)    Notwithstanding any termination of this Agreement, the indemnities to which the Administrative Agent and the Lenders are entitled under the provisions of this Article XII and any other provision of this Agreement and the other Loan Documents shall continue in full force and effect and shall protect the Administrative Agent and the Lenders against events arising after such termination as well as before.
SECTION 12.14    Titles and Captions.  Titles and captions of Articles, Sections and subsections in, and the table of contents of, this Agreement are for convenience only, and neither limit nor amplify the provisions of this Agreement.
SECTION 12.15    Severability of Provisions.  Any provision of this Agreement or any other Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction.
SECTION 12.16    Counterparts; Integration; Effectiveness; Electronic Execution.
(a)    Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, the Issuing Lender, the Swingline Lender and/or any Arranger, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 6.1, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.

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(b)    Electronic Execution of Assignments.  The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
SECTION 12.17    Term of Agreement.  This Agreement shall remain in effect from the Closing Date through and including the date upon which all Obligations (other than contingent indemnification obligations not then due) arising hereunder or under any other Loan Document shall have been indefeasibly and irrevocably paid and satisfied in full, all Letters of Credit have been terminated or expired (or been Cash Collateralized or otherwise satisfied in a manner acceptable to the Issuing Lender) and the Revolving Credit Commitment has been terminated.  No termination of this Agreement shall affect the rights and obligations of the parties hereto arising prior to such termination or in respect of any provision of this Agreement which survives such termination.
SECTION 12.18    USA PATRIOT Act; Anti-Money Laundering Laws.  The Administrative Agent and each Lender hereby notifies the Borrower that pursuant to the requirements of the PATRIOT Act or any other Anti-Money Laundering Laws, each of them is required to obtain, verify and record information that identifies each Credit Party, which information includes the name and address of each Credit Party and other information that will allow such Lender to identify each Credit Party in accordance with the PATRIOT Act or such Anti-Money Laundering Laws.
SECTION 12.19    Independent Effect of Covenants.  The Borrower expressly acknowledges and agrees that each covenant contained in Articles VIII or IX hereof shall be given independent effect.  Accordingly, the Borrower shall not engage in any transaction or other act otherwise permitted under any covenant contained in Articles VIII or IX, before or after giving effect to such transaction or act, the Borrower shall or would be in breach of any other covenant contained in Articles VIII or IX.
SECTION 12.20    No Advisory or Fiduciary Responsibility.
(a)    In connection with all aspects of each transaction contemplated hereby, each Credit Party acknowledges and agrees, and acknowledges its Affiliates’ understanding, that (i) the facilities provided for hereunder and any related arranging or other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document) are an arm’s-length commercial transaction between the Borrower and its Affiliates, on the one hand, and the Administrative Agent, the Arrangers and the Lenders, on the other hand, and the Borrower is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents (including any amendment, waiver or other modification hereof or thereof), (ii) in connection with the process leading to such transaction, each of the Administrative Agent, the Arrangers and the Lenders is and has been acting solely as a principal and is not the financial advisor, agent or fiduciary, for the Borrower or any of its Affiliates, stockholders, creditors or employees or any other Person, (iii) none of the Administrative Agent, the Arrangers or the Lenders has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Borrower with respect to any of the transactions contemplated hereby or the process leading thereto, including with respect to any amendment, waiver or other modification hereof or of any other Loan Document (irrespective of whether any Arranger or Lender has advised or is currently advising the Borrower or any of its Affiliates on other matters) and none of the Administrative Agent, the Arrangers or the Lenders has any obligation to the Borrower or any of its Affiliates 

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with respect to the financing transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents, (iv) the Arrangers and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from, and may conflict with, those of the Borrower and its Affiliates, and none of the Administrative Agent, the Arrangers or the Lenders has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship and (v) the Administrative Agent, the Arrangers and the Lenders have not provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or other modification hereof or of any other Loan Document) and the Credit Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent they have deemed appropriate.  
(b)    Each Credit Party acknowledges and agrees that each Lender, each Arranger and each Affiliate thereof may lend money to, invest in, and generally engage in any kind of business with, any of the Borrower, any Affiliate thereof or any other person or entity that may do business with or own securities of any of the foregoing, all as if such Lender, such Arranger or such Affiliate thereof were not a Lender or an Arranger or an Affiliate thereof (or an agent or any other person with any similar role under the Credit Facilities) and without any duty to account therefor to any other Lender, the Arrangers, the Borrower or any Affiliate of the foregoing.  Each Lender, each Arranger and each Affiliate thereof may accept fees and other consideration from the Borrower or any Affiliate thereof for services in connection with this Agreement, the Credit Facilities or otherwise without having to account for the same to any other Lender, any other Arranger, the Borrower or any Affiliate of the foregoing.
SECTION 12.21    Inconsistencies with Other Documents.  In the event there is a conflict or inconsistency between this Agreement and any other Loan Document, the terms of this Agreement shall control.
SECTION 12.22    Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(a)    the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and
(b)    the effects of any Bail-In Action on any such liability, including, if applicable:
(i)    a reduction in full or in part or cancellation of any such liability;
(ii)    a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or
(iii)    the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.

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SECTION 12.23    Certain ERISA Matters.
(a)    Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, each Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that at least one of the following is and will be true:
(i)    such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit or the Commitments; 
(ii)    the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement;
(iii)    (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement; or 
(iv)    such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.
(b)    In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, each Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that none of the Administrative Agent, each Arranger and their respective Affiliates is a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto). 

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SECTION 12.24    Acknowledgement Regarding Any Supported QFCs.  To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Hedge Agreements or any other agreement or instrument that is a QFC (such support, “QFC Credit Support” and, each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the FDIC under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States): 
(a)    In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States.  In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States.  Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.  
(b)    As used in this Section 12.25, the following terms have the following meanings:
“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
“Covered Entity” means any of the following:
		
	(i)
	a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

		
	(ii)
	a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

		
	(iii)
	a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).     

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[Signature pages to follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed under seal by their duly authorized officers, all as of the day and year first written above.
TYLER TECHNOLOGIES, INC., as Borrower
By:      
Name:  
Title:

Tyler Technologies, Inc. 
Credit Agreement
Signature Page

AGENTS AND LENDERS:
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Swingline Lender, Issuing Lender and Lender
By:      
Name:  
Title:

Tyler Technologies, Inc. 
Credit Agreement
Signature Page

[LENDER], as Lender
By:      
Name:  
Title:

Tyler Technologies, Inc.
Credit Agreement
Signature PageBlueprint

Exhibit 10.1

 

Execution Version

 

 

 

 

 

 

 

 

 

 

 

 

RESTRUCTURING AND EXCHANGE AGREEMENT

 

 

 

 

 

 

TABLE OF CONTENTS

 

	

ARTICLE I

	

DEFINITIONS AND ACCOUNTING TERMS

	

2

	

Section
1.1.

	

Definitions

	

2

	

Section
1.2. 

	

Computation
of Time Periods

	

6

	

Section
1.3.

	

Terms
Generally; Rules of Interpretation

	

6

	

Section
1.4.

	

Accounting
Terms

	

6

	

ARTICLE II

	

RESTRUCTURING TRANSACTIONS

	

7

	

Section
2.1.

	

Restructuring
Transactions

	

7

	

Section
2.2.

	

Closing

	

8

	

Section
2.3.

	

Public
Announcements

	

8

	

ARTICLE III

	

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

	

8

	

Section
3.1.

	

Due
Organization, Power and Authority

	

8

	

Section
3.2.

	

Capitalization

	

9

	

Section
3.3.

	

Non-Contravention

	

9

	

Section
3.4.

	

No
Approvals or Consents

	

9

	

Section
3.5.

	

Financial
Statements; Internal Controls; Reports

	

9

	

Section
3.6.

	

No
Undisclosed Liabilities

	

10

	

Section
3.7.

	

No
Actions or Proceedings

	

10

	

Section
3.8.

	

Title
to Properties

	

10

	

Section
3.9.

	

Taxes

	

10

	

Section
3.10.

	

[Reserved.]

	11

	

Section
3.11.

	

Labor
Matters

	11

	

Section
3.12.

	

Private
Offering; No Integration

	

11

	

Section
3.13.

	

Investment
Company Act

	

11

	

Section
3.14.

	

Insurance

	

11

	

Section
3.15.

	

Compliance
with Laws; Permits

	

11

	

Section
3.16.

	

Material
Contracts

	

11

	

Section
3.17. 

	

Information
Supplied

	

11

	

Section
3.18.

	

Brokerage
Fees

	

11

	

ARTICLE IV

	

REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

	

12

	

Section
4.1.

	

Due
Organization, Power and Authority

	

12

	

Section
4.2.

	

Investor
Status

	

12

	

Section
4.3.

	

No
Approvals or Consents

	

12

	

Section
4.4.

	

No
Actions or Proceedings

	

12

	

Section
4.5.

	

Non-Contravention

	

12

	

ARTICLE V

	

REPRESENTATIONS AND WARRANTIES OF YE

	

12

	

Section
5.1.

	

Ownership;
Due Organization, Power and Authority

	

12

	

Section
5.2.

	

Investor
Status

	

12

	

Section
5.3.

	

No
Approvals or Consents

	

13

	

Section
5.4.

	

No
Actions or Proceedings

	

13

	

Section
5.5.

	

Non-Contravention

	

13

 

 

 

 

	

ARTICLE VI

	

COVENANTS OF THE PARTIES

	

13

	

Section
6.1.

	

Covenants
of the Company

	

13

	

Section
6.2.

	

Covenants
of YE and the Investors

	

15

	

Section
6.3.

	

Mutual
Covenants of the Parties

	

15

	

Section
6.4.

	

Tax
Treatment

	

15

	

ARTICLE VII

	

CONDITIONS TO CLOSING

	

15

	

Section
7.1.

	

Each
Party’s Conditions to Closing

	

15

	

Section
7.2.

	

Company’s
Conditions to Closing

	

15

	

Section
7.3.

	

Investors’
Conditions to Closing

	

16

	

Section
7.4.

	

YE’s
Conditions to Closing

	

16

	

Section
7.5.

	

Frustration
of Closing Conditions

	

16

	

ARTICLE VIII

	

TERMINATION

	

17

	

Section
8.1.

	

Termination

	

17

	

Section
8.2.

	

Effect
of Termination

	

17

	

Section
8.3.

	

Notice
of Termination

	

17

	

Section
8.4.

	

Separate
Transactions

	

18

	

ARTICLE IX

	

INDEMNIFICATION

	

18

	

Section
9.1.

	

Indemnification

	

18

	

ARTICLE X

	

MUTUAL RELEASES

	

19

	

Section
10.1.

	

Mutual
Releases

	

19

	

ARTICLE XI

	

MISCELLANEOUS

	

20

	

Section
11.1.

	

Waiver
of Punitive Damages

	

20

	

Section
11.2.

	

Notices

	

20

	

Section
11.3. 

	

Assignment;
Successors

	

20

	

Section
11.4.

	

No
Waiver of Remedies; Remedies Cumulative

	

20

	

Section
11.5.

	

Counterparts

	

21

	

Section
11.6.

	

Governing
Law; Submission to Jurisdiction; Venue

	

21

	

Section
11.7.

	

Severability

	

22

	

Section
11.8. 

	

Entirety

	

22

	

Section
11.9. 

	

No
Third Party Beneficiaries

	

22

	

Section
11.10. 

	

Amendments
and Waivers of Terms

	

22

	

Section
11.11. 

	

Construction

	

22

	

Section
11.12.

	

Non-Survival
of Representations and Warranties

	

22

	

Section
11.13.

	

Reservation
of Rights; Settlement Discussions

	

22

	

Section
11.14.

	

Construction

	

22

	

Section
11.15.

	

Fees
and Expenses

	

22

 

 Exhibits

 

	
 Exhibit
A

	
 Loan Modification
Agreement

	
 Exhibit
B 

	
 Form of Amendment
to Certificate of Designation

	
 Exhibit
C      

	
 Voting
Agreement

	
 Exhibit
D

	
 Convertible Note
Terms

	
 Exhibit
E     

	
 Form of Board
Representation Rights Agreement

	
 Exhibit
F 

	
 Form of
Registration Rights Agreement

	
 Exhibit
G   

	
 A&R Credit
Agreement Terms

 

 

 

Execution Version

 

RESTRUCTURING AND EXCHANGE AGREEMENT

 

This RESTRUCTURING
AND EXCHANGE AGREEMENT, dated as of September 30, 2019 (this
“Agreement”), by and
among: Yuma Energy, Inc., a Delaware corporation (the
“Company”), Yuma
Exploration and Production Company, Inc., a Delaware corporation
(“Yuma
E&P”), Pyramid Oil LLC, a California limited
liability company (“Pyramid”), Davis
Petroleum Corp., a Delaware corporation (“Davis”), Red Mountain
Capital Partners LLC, a Delaware limited liability company
(“Red
Mountain”), RMCP PIV DPC, LP, a Delaware limited
partnership and an Affiliate of Red Mountain (“DPC PIV”), RMCP PIV DPC
II, LP, a Delaware limited partnership and an Affiliate of Red
Mountain (“DPC PIV
II” and together with Red Mountain and DPC PIV, the
“Investors”), YE
Investment LLC, a Delaware limited liability company and an
Affiliate of Red Mountain (“YE”). Each of the
Company, Yuma E&P, Pyramid, Davis, the Investors and YE may
hereinafter be referred to as a “Party” and collectively
as the “Parties”. Capitalized
terms that are used and are not otherwise defined herein have the
meanings given to them in Section 1.1.

 

WHEREAS, on or about September 10, 2019,
YE purchased the 2016 Loans from the lenders under the Credit
Agreement and the Hedge Obligations from the counterparty
thereto;

 

WHEREAS, the Parties have engaged in
arm’s length good faith negotiations regarding the
restructuring and exchange transactions set forth in Section 2.1 of
this Agreement (collectively, the “Restructuring
Transactions”) pursuant to the terms and conditions
set forth in this Agreement and the Restructuring Documents, with
respect to the capital structure of the Company, including the
indebtedness of the Company under the Existing
Facility;

 

WHEREAS, YE and the Company have entered
into a loan modification agreement, dated as of the date hereof and
attached hereto as Exhibit
A (the “Loan
Modification Agreement”);

 

WHEREAS, in accordance with the
Restructuring Transactions, the Certificate of Designation will be
amended to provide, among other things, for a conversion price of
$1.44372 substantially in the form attached as Exhibit B (the
“COD
Amendment”);

 

WHEREAS, the Investors and the Company
have entered into a voting agreement, dated as of the date hereof,
with certain Company stockholders and attached hereto as
Exhibit C (the
“Voting
Agreement”);

 

WHEREAS, in accordance with the
Restructuring Transactions, YE will convert the 2016 Loans and the
Hedge Obligations into the Convertible Note under the Credit
Agreement (the “Note
Exchange”);

 

WHEREAS, the Convertible Note will be
convertible into 10,863,923 shares of Common Stock, subject to
adjustment; and

 

WHEREAS, in accordance with the
Restructuring Transactions, the Company and YE will enter into a
registration rights agreement substantially in the form attached
hereto as Exhibit
F (the “Registration Rights
Agreement”);

 

WHEREAS, in accordance with the
Restructuring Transactions, the Company and Red Mountain will enter
into a board representation rights agreement substantially in the
form attached hereto as Exhibit E (the
“Board Rights
Agreement”);

 

WHEREAS, the Company and YE will enter
into an amended and restated credit agreement consistent with the
terms set forth on Exhibit
G and in such form as is mutually acceptable to YE and the
Company (the “A&R Credit
Agreement”);

 

WHEREAS, in accordance with the
Restructuring Transactions, the Company will hold a stockholder
meeting to solicit stockholder consent for (i) the COD Amendment,
(ii) the issuance of shares of Common Stock upon the conversion of
the Convertible Note, and (iii) the issuance of the shares of
Common Stock upon conversion of the shares of Series D Preferred
Stock; and

 

WHEREAS, the board of directors of the
Company (the “Board”) intends
concurrently with the execution of this Agreement to increase the
number of directors to four and to nominate an individual mutually
agreeable to the Company and Red Mountain to reflect the ownership
in the Company held by Red Mountain and its
Affiliates.

 

NOW, THEREFORE, in consideration of the
foregoing, of the mutual promises hereinafter set forth and for
other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties, intending to be
legally bound, hereby agree as follows:

 

 

1

 

 

ARTICLE I

 

DEFINITIONS AND ACCOUNTING TERMS

 

Section
1.1.                      Definitions.

 

As used
herein the following terms shall have the meanings specified herein
(it being understood that defined terms shall include in the
singular number, the plural, and in the plural, the
singular):

 

“2016
Loans” means the outstanding loans and other
obligations under the Existing Credit Agreement with an aggregate
principal amount of $32,805,517.85.

 

“A&R
Credit Agreement” has the meaning given in the
Recitals.

 

“Acquisition
Proposal” shall mean any bona fide inquiry, proposal
or offer made by any Person for, in a single transaction or a
series of transactions, (i) a merger, reorganization, share
exchange, consolidation, business combination, recapitalization,
extraordinary dividend or share repurchase, dissolution,
liquidation or similar transaction involving the Company, (ii) the
direct or indirect acquisition by any Person or group of twenty
percent (20%) or more of the assets of the Company and its
Subsidiaries, on a consolidated basis or assets of the Company and
its Subsidiaries representing twenty percent (20%) or more of the
consolidated revenues or net income (including, in each case,
securities of the Company’s Subsidiaries) or (iii) the direct
or indirect acquisition by any Person or group of twenty percent
(20%) or more of the voting power of the outstanding shares of
Common Stock, including any tender offer or exchange offer that if
consummated would result in any Person beneficially owning shares
with twenty percent (20%) or more of the voting power of the
outstanding shares of Common Stock.

 

“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 purposes of this
definition, “control” (including, with correlative
meanings, the terms “controlling,” “controlled
by” and “under common control with”), as used
with respect to any Person, shall mean the possession, directly or
indirectly, of the right or power to direct or cause the direction
of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or
otherwise.

 

“Agreement”
has the meaning given in the Preamble.

 

“Alternative
Acquisition Agreement” has the meaning given
in Section
6.1(k)(iii).

 

“Applicable
Law” means all laws, statutes, treaties, rules, codes,
ordinances, regulations, certificates, orders and licenses of any
Governmental Authority and judgments, decrees, injunctions, writs,
permits, orders or like governmental action of any Governmental
Authority applicable to the Company or any of its Subsidiaries or
any of their property or operations.

 

“Board”
has the meaning given in the Recitals.

 

“Board
Rights Agreement” has the meaning given in the
Recitals.

 

“Business
Day” means any day, other than a Saturday, Sunday or a
day on which banks are generally closed for business in the State
of New York.

 

“Capital
Stock” means (i) in the case of a corporation, capital
stock, (ii) in the case of an association or business entity other
than a corporation, partnership or limited liability company, any
and all shares, equity interests, equity participations, rights or
other equivalents (however designated) of capital stock, (iii) in
the case of a partnership or limited liability company, partnership
or membership interests (whether general or limited), and (iv) any
other interest or participation that confers on a Person the right
to receive a share of the profits and losses of, or distributions
of assets of, the issuing Person.

 

“Certificate
of Designation” means the Certificate of Designation
of the Series D Convertible Preferred Stock of Yuma Energy, Inc.
dated October 26, 2016.

 

“Closing”
has the meaning given in Section 2.2.

 

“Closing
Date” has the meaning given in Section 2.2.

 

“COD
Amendment” has the meaning given in the
Recitals.

 

“COD
Shares” has the meaning given in Section 3.1(b).

 

“Common
Stock” has the meaning given in Section 3.2(a).

 

“Company”
has the meaning given in the Preamble.

 

 

2

 

“Company
Form 10-Q” has the meaning given in Section 3.5(c).

 

“Company
SEC Reports” means the Company’s Annual Report
on Form 10-K for the year ended December 31, 2018, and any
subsequent filings made with the SEC pursuant to Sections 13(a),
13(c), 14 or 15(d) of the Exchange Act, excluding any information
or materials deemed “furnished” and not
“filed” thereunder.

 

“Company
Stockholder Approval” means the affirmative vote of
holders of (i) a majority of the outstanding voting stock of the
Company constituting a quorum (according to the Company’s
bylaws) at the Stockholder Meeting (or at any adjournment or
postponement thereof) to approve the issuance of the Resulting
Shares and the issuance of the COD Shares, and (ii) a majority of
the outstanding voting stock of the Company to approve the COD
Amendment.

 

“Convertible
Note” means the convertible note under the Credit
Agreement consistent with the terms set forth on Exhibit D and in such form as
is mutually agreed between the Company and YE.

 

“Credit
Agreement” means the Existing Credit Agreement, as
amended, restated, modified or supplemented from time to time,
including as applicable by the A&R Credit
Agreement.

 

“Davis”
has the meaning given in the Preamble.

 

“Definitive
Proxy Statement” means the definitive proxy statement
incorporating any SEC comments to the Preliminary Proxy
Statement.

 

“Disclosure
Schedule” means the disclosure schedule delivered by
the Company to the other Parties hereto prior to the execution of
this Agreement.

 

“dollars”
or “$”
refers to lawful money of the United States of
America.

 

“DPC
PIV” has the meaning given in the
Preamble.

 

“DPC
PIV II” has the meaning given in the
Preamble.

 

“Environmental
Laws” means, all Laws related to pollution, the
protection of the environment, the presence, Release, threatened
Release, generation, recycling, disposal or treatment of Hazardous
Substances, protection of human health and safety (to the extent
related to the exposure to Hazardous Substances) including, but not
limited to, CERCLA, the Resource Conservation and Recovery Act,
42 U.S.C. § 6901 et seq.; the Federal Water
Pollution Control Act, 33 U.S.C. § 1251
et seq.; the Clean Air Act, 42 U.S.C. § 7401
et seq.; the Hazardous Materials Transportation Act,
49 U.S.C. § 1471 et seq.; the Toxic Substances
Control Act, 15 U.S.C. §§ 2601 through 2629;
the Oil Pollution Act, 33 U.S.C. § 2701
et seq.; the Emergency Planning and Community Right-to-Know
Act, 42 U.S.C. § 11001 et seq.; and the Safe
Drinking Water Act, 42 U.S.C. §§ 300f through
300j.

 

“Equity
Interest” means any issued, unissued, authorized, or
outstanding shares of common stock, preferred stock or other
instrument evidencing an ownership interest in the Company, whether
or not transferable, together with any warrants, stock options,
equity-based awards or contractual rights to purchase or acquire
such equity interests at any time and all rights arising with
respect thereto that existed immediately before the Closing
Date.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated
thereunder.

 

“Existing
Credit Agreement” means that certain Credit Agreement,
dated as of October 26, 2016 (the “Original Credit
Agreement”) by and among the Lenders party thereto, YE
as Administrative Agent (in such capacity, the “Agent”) and the Company,
Yuma E&P, Pyramid and Davis (collectively, the
“Borrowers”), as amended
or modified by (i) the First Amendment to Credit Agreement and
Borrowing Base Redetermination dated as of May 19, 2017, (ii) the
Second Amendment to Credit Agreement and Borrowing Base
Redetermination dated as of May 8, 2018, (iii) the Waiver and Third
Amendment to Credit Agreement dated as of July 31, 2018, (iv) the
Limited Waiver dated as of August 30, 2018, in each case among the
Lenders, the Agent and the Borrowers, and (v) and the Successor
Agent and Issuing Bank Agreement dated as of September 10, 2019
(the agreements in (i) through (v), the “Default Documents”, and
the Original Credit Agreement as so amended or modified by the
Default Documents.

 

“Existing
Facility” means the secured loan facility under the
Existing Credit Agreement.

 

“Financial
Statements” has the meaning given in Section 3.5(a).

 

“Forbearance
Agreement” means that certain Forbearance Agreement
dated September 16, 2019, by and among the Company, Yuma E&P,
Pyramid, Davis, The Yuma Companies, Inc., Davis Petroleum
Acquisition Corp., and YE.

 

“GAAP”
means those accounting principles in the United States, which are
in effect at the time of the preparation of financial statements
required to be delivered hereunder.

 

“Governmental
Authority” means any nation or government, any state,
province, territory or other political subdivision thereof, and any
agency, body or entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to
government.

 

 

3

 

 

“Hazardous
Substances” means any substance or waste that is
listed, defined, designated, classified as, or otherwise determined
to be hazardous, extremely hazardous, toxic, radioactive, a
pollutant or a contaminant under or pursuant to any
Law.

 

“Hedge
Obligations” means the outstanding obligation of
$360,588.00 under that certain ISDA Master Agreement, together with
its schedules and the Amendment Adopting, Incorporating and
Amending the ISDA August 2012 DF Supplement and Amendment Adopting,
Incorporating and Amending the ISDA March 2013 DF Supplement, dated
October 25, 2016, between Société Générale and
Yuma E&P, that was acquired by YE on or about September 10,
2019.

 

“Indemnified
Parties” means (i) the Company’s current
directors, officers, managers, employees, attorneys, other
professionals, and agents that were employed in such capacity on or
after the date of this Agreement and that are entitled to be
indemnified by the Company pursuant to the Company’s bylaws,
certificates of incorporation, board resolutions, employment
contracts, or other agreements and (ii) each of the Investor
Indemnified Parties and YE Indemnified Parties.

 

“Investment
Company Act” means the Investment Company Act of 1940
(or any successor provision), as amended, and the rules and
regulations of the SEC promulgated thereunder.

 

“Investor
Indemnified Parties” means, collectively, the
Investors, their Affiliates and their respective directors,
officers, managers, partners, members, employees and
agents.

 

“Investors”
has the meaning given in the Preamble.

 

“Knowledge”
means, with respect to any matter in question, the knowledge of
such matter by any of the individuals listed in Section 1.1 of the
Disclosure Schedule.

 

“Legal
Restraints” has the meaning given in Section 7.1(b).

 

“Lien”
means any security interest, mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or
otherwise), charge against or interest in property, or other
priority or preferential arrangement of any kind or nature
whatsoever, whether or not filed, recorded or otherwise perfected
under Applicable Law, to secure payment of a debt or performance of
an obligation.

 

“Loan
Modification Agreement” has the meaning given in the
Recitals.

 

“Losses”
has the meaning given in Section 9.1.

 

“Material
Adverse Effect” means any event, change, effect,
circumstance or condition that, individually or in the aggregate
with other such events, changes, effects, circumstances or
conditions, (i) is, or is reasonably likely to be, materially
adverse to the business, operations, results of operations,
properties, condition (financial or otherwise), assets, liabilities
(actual or contingent) or prospects of the Company and its
Subsidiaries, taken as a whole or (ii) could reasonably be expected
to materially interfere with the consummation of the transactions
contemplated hereby. The Parties acknowledge that a materially
negative change in the NYSE American listing status of the Common
Stock from the listing status as of the date hereof shall be deemed
a “Material Adverse Effect.”

 

“Material
Contract” means any agreement which would be deemed a
“material contract” within the meaning of Item
601(b)(10) of SEC Regulation S-K.

 

“Note
Exchange” has the meaning given in the
Recitals.

 

“NYSE
American” means NYSE American LLC, a national
securities exchange registered with the SEC pursuant to Section 6
of the Exchange Act.

 

“Order”
means a judgment, order, writ, injunction, stipulation or decree
issued by, or legally binding agreement with, a Governmental
Authority.

 

“Party”
has the meaning given in the Preamble.

 

“Permits”
means any permits, approvals or authorizations by, or filings with,
a Governmental Authority.

 

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

 

“Preamble”
means the Preamble of this Agreement.

 

“Preferred
Stock” has the meaning given in Section 3.2(a).

 

“Preliminary
Proxy Statement” means the preliminary proxy statement
for the Stockholder Meeting.

 

 

4

 

 

“Pyramid”
has the meaning given in the Preamble.

 

“Red
Mountain” has the meaning given in the
Preamble.

 

“Registration
Rights Agreement” has the meaning given in the
Recitals.

 

“Release”
means the disposing, discharging, injecting, spilling, leaking,
pumping, leaching, dumping, emitting, escaping or emptying into or
upon any air, soil, sediment, subsurface strata, surface water or
groundwater.

 

“Released
Parties” has the meaning given in Section 10.1(a).

 

“Releasing
Parties” has the meaning given in Section 10.1(a).

 

“Representatives”
has the meaning given in Section 10.1(a).

 

“Reserve
Report” means the report of Netherland, Sewell &
Associates, Inc., as of December 31, 2018 and dated January 30,
2019.

 

“Restricted
Period” has the meaning given in Section 6.2.

 

“Restructuring
Documents” means the Loan Modification Agreement, the
A&R Credit Agreement, the Board Rights Agreement, the
Registration Rights Agreement, the Convertible Note, the COD
Amendment, and each other document, certificate or agreement
executed, delivered or filed in connection with, contemplated by or
necessary to carry out the Restructuring Transactions and any other
transactions contemplated by this Agreement.

 

“Restructuring
Transactions” has the meaning given in the
Recitals.

 

“Resulting
Shares” means the shares of Common Stock issuable upon
the conversion of the Convertible Note.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“SEC
Reports” has the meaning given in Section 3.5(f).

 

“Securities
Act” means the Securities Act of 1933, as amended, and
the rules and regulations of the SEC promulgated
thereunder.

 

“Series
D Preferred Stock” has the meaning given
in Section
3.2(a).

 

“Stockholder
Meeting” means the special meeting of the Company
stockholders, during which the Company stockholders will consider
the approval of the issuance of the Resulting Shares, the issuance
of the COD Shares and the COD Amendment.

 

 

5

 

 

“Subsidiary”
means, with respect to any Person, (a) any corporation,
association, or other business entity (other than a partnership,
joint venture, limited liability company or similar entity) of
which more than 50% of the total voting power of shares of Capital
Stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or
trustees thereof is at the time of determination 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 (b) any partnership, joint venture, limited liability company
or similar entity of which: (i) more than 50% of the capital
accounts, distribution rights, total equity and voting interests or
general or limited partnership interests, as applicable, are owned
or controlled, directly or indirectly, by such Person or one or
more of the other Subsidiaries of that Person or a combination
thereof whether in the form of membership, general, special or
limited partnership or otherwise; and (ii) such Person is a
controlling general partner or otherwise controls (within the
meaning of the last sentence of the definition of
“Affiliate” contained herein) such entity.

 

“Superior
Proposal” means a bona fide written Acquisition
Proposal (with the percentages set forth in clauses (ii) and (iii)
of the definition of such term changed from twenty percent
(20%) to fifty percent (50%) and it being understood that
any transaction that would constitute an Acquisition Proposal
pursuant to clause (ii) or (iii) of the definition thereof cannot
constitute a Superior Proposal under clause (i) under the
definition thereof unless it also constitutes a Superior Proposal
pursuant to clause (ii) or (iii), as applicable, after giving
effect to this parenthetical) that the Board has determined in its
good faith judgment, is more favorable to the Company’s
stockholders than the Restructuring Transactions and the other
transactions contemplated hereby, taking into account all of the
terms and conditions of such Acquisition Proposal (including the
financing, likelihood and timing of consummation thereof) and this
Agreement.

 

“Taxes”
means taxes of any kind, levies or other like assessments, customs,
duties, imposts, charges or fees, including, without limitation,
income, gross receipts, ad valorem, value added, excise, real or
personal property, asset, sales, use, license, payroll,
transaction, capital, net worth and franchise taxes, estimated
taxes, withholding, employment, social security, workers
compensation, utility, severance, production, unemployment
compensation, occupation, premium, windfall profits, transfer and
gains taxes or other governmental taxes imposed or payable to the
United States, or any state, county, local or foreign government,
or any subdivision or agency thereof, and, in each instance, such
term shall include any interest, penalties or additions to tax
attributable to any such Tax or requirement to report information
with respect thereto.

 

 

“Voting
Agreement” has the meaning given in the
Recitals.

 

“YE”
has the meaning given in the Preamble.

 

“YE
Indemnified Parties” means, collectively, YE, its
Affiliates and their respective directors, officers, managers,
partners, members, employees and agents.

 

“Yuma
E&P” has the meaning given in the
Preamble.

 

Section
1.2.                       Computation
of Time Periods. For purposes of computation of periods of
time hereunder, the word “from” means “from and
including” and the words “to” and
“until” each mean “to but
excluding.”

 

Section
1.3.                      Terms
Generally; Rules of Interpretation. The titles and subtitles
used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement. When a
reference is made in this Agreement to a Section, Article, Schedule
or Exhibit, such reference shall be to a Section, Article, Schedule
or Exhibit of this Agreement unless otherwise indicated. Unless the
context requires otherwise (i) any definition of or reference
to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise
modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein); (ii) any
reference herein to any Person shall be construed to include such
Person’s successors and assigns; (iii) the words
“including” and “includes” shall mean
“including without limitation” and “includes
without limitation,” as applicable; (iv) in the
appropriate context, each term, whether stated in the singular or
the plural, shall include both the singular and the plural, and
pronouns stated in the masculine, feminine or neuter gender shall
include the masculine, feminine, and the neuter gender;
(v) any reference herein to a contract (including contracts),
instrument, release, indenture, or other agreement or document
being in a particular form or on particular terms and conditions
means that the referenced document shall be substantially in that
form or substantially on those terms and conditions; (vi) any
reference herein to an existing document or exhibit having been
filed or to be filed shall mean that document or exhibit, as it may
thereafter be amended, modified, or supplemented; (vii) unless
otherwise specified, all references herein to
“Articles” or “Sections” are references to
Articles or Sections hereof or hereto; (viii) the words
“herein,” “hereof” and “hereto”
refer to this Agreement in its entirety rather than to a particular
portion of this Agreement; and (ix) captions and headings to
Articles and Sections are inserted for convenience of reference
only and are not intended to be a part of or to affect the
interpretation hereof. In the event of any inconsistencies between
the terms of this Agreement and any Restructuring Documents, the
Restructuring Documents shall govern.

 

Section
1.4.                      Accounting
Terms. Accounting terms used but not otherwise defined
herein shall have the meanings provided, and be construed in
accordance with, GAAP.

 

 

6

 

 

ARTICLE II

 

RESTRUCTURING TRANSACTIONS

 

Section
2.1.                      Restructuring
Transactions.

 

(a)            In
order to effect the Restructuring Transactions, subject to the
terms and conditions of this Agreement (including, without
limitation, the provisions of Article VII), the Parties agree
to complete (or cause to be completed) the actions as and at the
times set forth herein.

 

(b)            Prior
to the date hereof, the following shall have occurred:

 

(i)           The
Board shall have adopted board resolutions, as required under
Applicable Law:

 

(1)           authorizing
(x) the execution of this Agreement, (y) the Restructuring
Transactions and (z) the listing of the Resulting Shares and the
COD Shares on the NYSE American;

 

(2)           approving
and declaring advisable the adoption of the COD Amendment,
directing that the adoption of the COD Amendment be submitted to a
vote at the Stockholder Meeting and recommending that the Company
stockholders adopt the COD Amendment;

 

(3)           approving
and declaring advisable the Note Exchange, directing that the
approval of the issuance of the Resulting Shares be submitted to a
vote at the Stockholder Meeting and recommending that the Company
stockholders approve the issuance of the Resulting
Shares;

 

(4)           approving
and declaring advisable issuance of the COD Shares, directing that
the approval of the issuance of the COD Shares be submitted to a
vote at the Stockholder Meeting and recommending that the Company
stockholders approve the issuance of the COD Shares;
and

 

(5)           authorizing
the execution by the Company of the Loan Modification Agreement,
the Board Rights Agreement, the Convertible Note, the Voting
Agreement, the Registration Rights Agreement and the performance of
its obligations thereunder; and

 

(ii)           The
Company and YE shall have executed the Loan Modification Agreement;
and

 

(iii)           The
Company and the Investors shall have executed the Voting
Agreement.

 

(c)            Promptly
after the date hereof and prior to the Closing, the following shall
occur:

 

(i)           The
Company shall issue a press release, mutually agreed upon with Red
Mountain, announcing the execution of this Agreement and the
Restructuring Transactions;

 

(ii)           The
Company shall have submitted all necessary filings and documents
with the NYSE American for the listing of the Resulting Shares and
the COD Shares on the NYSE American;

 

(iii)           The
Company shall give the NYSE American notice of the record date for
the Stockholder Meeting;

 

(iv)           The
Company shall file a Form 8-K, and any other applicable filing,
with respect to the execution of this Agreement and the
Restructuring Transactions;

 

(v)           The
Company shall file the Preliminary Proxy Statement and the
Definitive Proxy Statement with the SEC and shall effect the
mailing of the Definitive Proxy Statement to the Company
stockholders; and

 

(vi)           The
Company and YE shall in good faith negotiate and enter into the
A&R Credit Agreement.

 

(d)            Immediately
prior to the Closing, the Company shall hold the Stockholder
Meeting and shall hold a stockholder vote on (i) the issuance
of the Resulting Shares, (ii) the issuance of the COD Shares, and
(iii) the COD Amendment.

 

(e)            At
the Closing, but only in the event that the Company Stockholder
Approval shall have been obtained, the following shall
occur:

 

(i)           The
Company shall execute the COD Amendment and file the COD Amendment
with the Secretary of State of the State of Delaware;

 

(ii)           The
Company shall issue to YE the Convertible Note, YE shall surrender
any promissory notes it holds for the 2016 Loans and forgive the
Hedge Obligations;

 

(iii)           The
Company and YE shall enter into the Registration Rights Agreement;
and

 

(iv)           The
Company and Red Mountain shall enter into the Board Rights
Agreement.

 

 

7

 

 

Section
2.2.                      Closing.
The closing of the transactions contemplated by Section 2.1(e) shall occur at
the offices of Jones & Keller, P.C. at 10:00 a.m. Denver time
(the “Closing”) as soon as
practicable, and in no event later than the fifth (5th) Business
Day, following the satisfaction (or, to the extent permitted under
this Agreement, waiver) of the conditions set forth
in Article VII
(other than those conditions that by their terms are to be
satisfied or waived at the Closing, but subject to the satisfaction
or waiver of such conditions), or at such other place, time and
date as shall be agreed between the Parties hereto. The date on
which the Closing occurs is referred to in this Agreement as the
“Closing
Date.”

 

Section
2.3.                      Public
Announcements. Except as otherwise contemplated hereby, no
Party shall issue or cause the publication of any press release or
other public announcement (to the extent not previously issued or
made in accordance with this Agreement) with respect to this
Agreement or the Restructuring Transactions without the prior
written consent of the other Parties (which consent shall not be
unreasonably withheld or delayed), except as may be required by
Applicable Law, including applicable SEC requirements, applicable
fiduciary duties or by any applicable listing agreement with the
NYSE American (in which case such party shall not issue or cause
the publication of such press release or other public statement
without prior consultation with the other party).

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except
as set forth in the Disclosure Schedule, which identifies the
Section of this Agreement to which such exception relates
(provided, however, that any disclosure
contained in any section of the Disclosure Schedule shall be deemed
to be disclosed with respect to any other Section of this Agreement
to the extent that it is reasonably apparent on its face to be
applicable to such other Section), the Company represents and
warrants to each of the other Parties hereto, as of the date hereof
and as of the Closing Date, as follows:

 

Section
3.1.                      Due
Organization, Power and Authority.

 

(a)           The
Company (i) is duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization and
(ii) 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 execute, deliver and perform its
obligations under this Agreement and the Restructuring Documents to
which it is a party and to carry out the transactions contemplated
hereby and thereby. The execution, delivery and performance of this
Agreement and the Restructuring Documents and the consummation of
the transactions contemplated hereby and thereby (including the
issuance of the Resulting Shares and COD Shares) have been duly
authorized by all corporate action on the part of the Company,
subject to the Company Stockholder Approval, and except for the
Company Stockholder Approval, no further approval or authorization
is required on the part of the Company or its stockholders with
respect to the transactions contemplated by Section 2.1(e). This Agreement
has been duly and validly authorized, executed and delivered by the
Company. The Restructuring Documents have been duly and validly
authorized by the Company and, when executed and delivered by the
Company as contemplated hereby, assuming due authorization,
execution and delivery by the other parties thereto, will
constitute valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms,
except as such enforceability may be limited by bankruptcy,
fraudulent conveyance, insolvency, reorganization, moratorium, and
other laws relating to or affecting creditors’ rights
generally and by general equitable principles (regardless of
whether such enforceability is considered in a proceeding in equity
or at law).

 

(b)           Upon
Company Stockholder Approval, the Company has all the requisite
corporate power and authority to issue the Resulting Shares and the
shares of Common Stock issuable upon conversion of the Series D
Preferred Stock, giving effect to the COD Amendment (the
“COD
Shares”). The Resulting Shares and the COD Shares
(determined without giving effect to the COD Amendment) have been,
and following the Company Stockholder Approval the balance of the
COD Shares will be, duly and validly authorized and reserved for
issuance, by the Company and, when issued, in accordance with the
terms of the Convertible Note or the Certificate of Designation (as
amended by the COD Amendment), as applicable, will be validly
issued, fully paid and non-assessable, and the issuance of the
Resulting Shares and the COD Shares will not be subject to any
preemptive or similar rights.

 

(c)            Each
Subsidiary of the Company is validly existing and in good standing
as a corporation or limited liability company, as applicable, under
the laws of its jurisdiction of organization and is duly qualified
to do business and in good standing as a foreign corporation or
other business entity in each jurisdiction in which its ownership
or lease of property or the conduct of its businesses requires such
qualification, except where the failure to be so qualified or in
good standing could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. Each
Subsidiary of the Company has all requisite power and authority to
own and operate its properties and to carry on its business as now
conducted and as proposed to be conducted.

 

 

8

 

 

Section
3.2.                      Capitalization.

 

(a)            As
of the date hereof, the Company has duly authorized for issuance
100,000,000 shares of common stock, $0.001 par value per share (the
“Common
Stock”), of which 1,551,989 shares are validly issued
and outstanding and 26,516 shares of Common Stock are held as
treasury stock, 20,000,000 shares of preferred stock, $0.001 par
value per share (the “Preferred Stock”), of
which 7,000,000 shares of Preferred Stock have been designated
Series D Convertible Preferred Stock (the “Series D Preferred
Stock”), of which 2,149,986 shares are validly issued
and outstanding, and does not have any other shares of capital
stock outstanding. Except as set forth on Section 3.2(a) of the
Disclosure Schedule, there are no outstanding warrants, options,
rights of conversion or other rights, agreements, arrangements or
commitments giving any Person the right (contingent or otherwise)
to acquire any shares of Common Stock or any shares of capital
stock or other Equity Interests in the Company or any of its
Subsidiaries.

 

(b)            All
the outstanding shares of capital stock or other voting securities
or equity interests of each Subsidiary of the Company have been
duly authorized and validly issued, and are fully paid and
non-assessable.

 

(c)            Section
3.2(c) of the Disclosure Schedule correctly states the
name of any Person (other than Subsidiaries of the Company) whose
equity interests are owned, directly or indirectly, by the Company.
Neither the Company nor any of its Subsidiaries owns or controls,
directly or indirectly, any Capital Stock or other equity interest
in any Person other than (x) as listed on Section 3.2(c) of the
Disclosure Schedule and (y) in the case of the Company, equity
interest in the Subsidiaries. Each issued and outstanding share of
Capital Stock of each Subsidiary of the Company (i) has been
duly authorized and validly issued, is fully paid and
non-assessable and was issued free of preemptive rights and (ii)
except for any equity interests not owned directly or indirectly by
the Company as shown on Section 3.2(c) of the
Disclosure Schedule is owned by the Company, directly or through
Subsidiaries, free and clear of any Liens except as could not,
individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

Section
3.3.                      Non-Contravention.
Except as set forth in Section 3.3 of the
Disclosure Schedule, the issuance of the Resulting Shares upon
conversion of the Convertible Note, the issuance of the COD Shares
upon conversion of the Series D Preferred Stock, the execution,
delivery and performance by the Company of this Agreement and the
Restructuring Documents and the consummation of the transactions
contemplated hereby and thereby, will not (i) violate any provision
of any Applicable Law, (ii) violate any provision of any of the
organizational documents of the Company or any of its Subsidiaries
(after giving effect to the COD Amendment), (iii) conflict
with or result in a breach or violation of, (iv) constitute
(with or without notice or lapse of time or both) a default under,
(v) result in or give to any Person any right of termination,
cancellation, acceleration or modification in or with respect to,
(vi) result in or give to any Person any additional rights or
entitlement to increased, additional, accelerated or guaranteed
payments under, or (vii) result in the creation or imposition
of any Lien upon the Company or any of its Subsidiaries or any of
their respective assets and properties under, any of the terms or
provisions of any contract, indenture, mortgage, deed of trust,
loan agreement, license, lease or other agreement or instrument to
which the Company or any of its Subsidiaries is a party or by which
any of them is bound or to which any of their respective properties
or assets is subject, except, with respect to clauses (i), (iii),
(iv), (v), (vi) and (vii), conflicts, default, violations,
terminations or Liens that could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect.

 

Section
3.4.                      No
Approvals or Consents. Except as specifically contemplated
in this Agreement, no consent, approval, authorization or Order of,
or filing, notice, registration or qualification with any
Governmental Authority having jurisdiction over the Company or any
of its Subsidiaries or any of their respective properties or assets
is required for the issuance of the Resulting Shares upon
completion of the Note Exchange, the issuance of the COD Shares
upon conversion of the Series D Preferred Stock, the execution,
delivery and performance by the Company of this Agreement and the
Restructuring Documents, and the consummation of the transactions
contemplated hereby and thereby.

 

Section
3.5.                      Financial
Statements; Internal Controls; Reports.

 

(a)            The
Company has delivered to the Investors (i) complete and correct
copies of the audited consolidated balance sheet of the Company and
its consolidated subsidiaries as of December 31, 2018, and the
related consolidated statements of operations and consolidated
statements of changes in stockholders’ equity and statements
of cash flows for the fiscal year then ended, including the notes
thereto, certified by independent registered public accountants,
and (ii) copies of the unaudited consolidated balance sheet of the
Company and its consolidated Subsidiaries as of June 30, 2019, and
the related unaudited consolidated statements of operations and
consolidated statements of changes in stockholders’ equity
and statements of cash flows for the six month period then ended
(the documents in clauses (i) and (ii) collectively the
“Financial
Statements”).

 

(b)            Each
of the consolidated balance sheets contained in the Financial
Statements fairly presents in all material respects the
consolidated financial position of the Company and its consolidated
Subsidiaries as of its date and each of the consolidated statements
of operations and consolidated statements of changes in
stockholders’ equity and statements of cash flows included in
the Financial Statements fairly presents in all material respects
the consolidated results of operations, shareholders’ equity
or cash flows, as the case may be, of the Company and its
consolidated Subsidiaries for the periods to which they relate
(subject, in the case of any unaudited interim financial
statements, to normal year-end adjustments and the absence of note
disclosures), in each case in accordance with GAAP applied on a
consistent basis during the periods involved, except as noted
therein.

 

(c)            Since
the date of the latest financial statements included in the
Company’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2019 (the “Company Form 10-Q”)
and except as disclosed therein or as set forth
in Section
3.5(c) of the Disclosure Schedule, neither the Company
nor any of its Subsidiaries has (i) sustained any loss or
interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor
disturbance or dispute or action or Order from any applicable
Governmental Authority, (ii) issued or granted any securities
(other than pursuant to (x) employee benefit plans, qualified stock
option plans, other employee compensation plans or non-employee
director compensation programs in existence on the date hereof and
described in the Company Form 10-Q or (y) options, warrants or
rights outstanding on the date hereof), (iii) incurred any
liability or obligation, direct or contingent, other than
liabilities and obligations that were incurred in the ordinary
course of business, (iv) entered into any transaction not in the
ordinary course of business (other than as described in the Company
Form 10-Q (without giving effect to any supplements or amendments
thereto after the execution and delivery of this Agreement)), or
(v) declared or paid any dividend on its Capital Stock, and, since
such date, there has not been any change in the Equity Interests or
long-term debt of the Company or any of its Subsidiaries (other
than as described in the Company Form 10-Q (without giving effect
to any supplements or amendments thereto after the execution and
delivery of this Agreement)) or any adverse change, or any
development involving a prospective adverse change, in or affecting
the condition (financial or otherwise), results of operations,
stockholders’ equity, properties, management, business or
prospects of the Company and its Subsidiaries, taken as a whole, in
each case except as could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse
Effect.

 

 

9

 

 

(d)            Except
as set forth in Section 3.5(d) of the
Disclosure Schedule, the Company maintains a system of internal
controls over financial reporting (as such term is defined in Rule
13a-15(f) of the Exchange Act) that complies with the requirements
of the Exchange Act and that has been designed by, or under the
supervision of, the Company’s principal executive and
principal financial officers, to provide assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with GAAP. Except as
set forth in Section
3.5(d) of the Disclosure Schedule, the Company
maintains internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific
authorization, (ii) transactions are recorded as necessary to
permit preparation of the Company’s financial statements in
conformity with GAAP and to maintain accountability for its assets,
(iii) access to the Company’s assets is permitted only in
accordance with management’s general or specific
authorization, and (iv) the recorded accountability for the
Company’s assets is compared with existing assets at
reasonable intervals and appropriate action is taken with respect
to any differences. As of the date of the most recent balance sheet
of the Company and its consolidated Subsidiaries reviewed or
audited by Marcum LLP and the audit committee of the Board, there
were no material weaknesses in the Company’s internal
controls.

 

(e)            Except
as set forth in Section 3.5(e) of the
Disclosure Schedule, since the date of the most recent balance
sheet of the Company and its consolidated Subsidiaries reviewed or
audited by Marcum LLP, (i) the Company has not been advised of
or become aware of (x) any significant deficiencies in the design
or operation of internal controls, that could adversely affect the
ability of the Company or any of its Subsidiaries to record,
process, summarize and report financial data, or any material
weaknesses in internal controls, and (y) any fraud, whether or not
material, that involves management or other employees who have a
significant role in the internal controls of the Company and each
of its Subsidiaries; and (ii) there have been no significant
changes in internal controls or in other factors that could
significantly affect internal controls, including any corrective
actions with regard to significant deficiencies and material
weaknesses.

 

(f)           Since
December 31, 2018 and through the date of this Agreement, the
Company has complied in all material respects with the filing
requirements of Sections 13(a), 14(a) and 15(d) of the Exchange
Act. As of the date of this Agreement, the reports, statements,
schedules or other documents filed by the Company with the SEC
pursuant to the Securities Act or Exchange Act (collectively,
“SEC
reports”) through the date of this Agreement, when
they became effective or were filed with the SEC, as the case may
be, conformed in all material respects to the requirements of the
Securities Act or the Exchange Act, as applicable, and the rules
and regulations of the SEC thereunder, and no such SEC Report, when
it became effective or was filed with the SEC contained an untrue
statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they were made, not
misleading

 

Section
3.6.                      No
Undisclosed Liabilities. The Company does not have any
material liabilities other than (i) liabilities adequately
reflected on the financial statements of the Company in the Company
Form 10-Q or (ii) incurred since June 30, 2019 in the ordinary
course of business consistent with past practice (none of which
arise from or are related to a breach of contract, tort,
infringement or a violation of law). Except as otherwise disclosed
in the Company’s SEC Reports or the Disclosure Schedule, from
December 31, 2018 to the date of this Agreement, there has not been
any development or event which, individually or in the aggregate,
has had or could reasonably be expected to have a Material Adverse
Effect.

 

Section
3.7.                      No
Actions or Proceedings. Except as set forth in Section 3.7 of the Disclosure
Schedule or the Company Form 10-Q, there are no legal or
governmental actions, suits, proceedings, audits, investigations or
other reviews pending or, to the Knowledge of the Company,
threatened in writing or affecting, the Company, its Subsidiaries
or any of their respective assets or properties that could,
individually or in the aggregate, reasonably be expected to (i)
have a Material Adverse Effect or (ii) have a material adverse
effect on the performance by the Company of this Agreement, the
Restructuring Documents or on the consummation of any of the
transactions contemplated hereby or thereby. No Governmental
Authority has notified the Company of an intention to conduct any
audit, investigation or other review with respect to the Company
that could, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

 

Section
3.8.                      Title
to Properties. To the Knowledge of the Company, except for
property sold or otherwise disposed of, impaired or abandoned in
the ordinary course of business since the dates of the Reserve
Report, the Company has good and defensible title to all oil and
gas properties forming the basis for the reserves reflected in the
Reserve Report as attributable to interests owned or held by the
Company free and clear of all Encumbrances, except for Encumbrances
set forth in Section
3.8 of the Disclosure Schedule and any other liens,
charges, encumbrances, defects or irregularities that do not,
individually or in the aggregate, materially detract from the value
of or materially interfere with the use or ownership of such oil
and gas properties. The oil and gas leases and other
agreements that provide the Company with operating rights in the
oil and gas properties reflected in the Reserve Report are in full
force and effect as to the oil and gas properties reflected in the
Reserve Report, and the rentals, royalties and other payments due
thereunder have been properly and timely paid and there is no
existing default (or event that, with notice or lapse of time or
both, would become a default) under any of such oil and gas leases
or other agreements, except, in each case, as individually or in
the aggregate has not had, and would not be reasonably likely to
have or result in, a Material Adverse Effect. For purposes of
this Section
3.8, “good and defensible title” means title
that is free from reasonable doubt to the end that a prudent person
engaged in the business of purchasing and owning, developing, and
operating producing or non-producing oil and gas properties in the
geographical areas in which they are located, with knowledge of all
of the facts and their legal bearing, would be willing to accept,
acting reasonably.

 

Section
3.9.                      Taxes.
The Company and each of its Subsidiaries have filed all federal,
state and local Tax returns required to be filed through the date
hereof, subject to permitted extensions, and have paid all Taxes
due, and no Tax deficiency has been determined adversely to the
Company or any of its Subsidiaries, nor does the Company have any
Knowledge of any Tax deficiencies that have been, or could
reasonably be expected to be asserted against the Company or any of
its Subsidiaries, that could, individually or in the aggregate,
reasonably be expected to have a Material Adverse
Effect. 

 

 

10

 

 

Section
3.10.                   
[Reserved.]

 

Section
3.11.                   
Labor Matters. No
labor disturbance by or dispute with the employees of the Company
or any of its Subsidiaries exists or, to the Knowledge of the
Company, is imminent that could, individually or in the aggregate,
reasonably be expected to have a Material Adverse
Effect.

 

Section
3.12.                   
Private Offering; No
Integration.

 

(a)           
It is not necessary in connection with the issuance or delivery of
the Resulting Shares or the COD Shares, in the manner contemplated
by this Agreement and the Restructuring Documents or the
Certificate of Designation (as amended by the COD Amendment) to
register the Resulting Shares or the COD Shares under the
Securities Act.

 

(b)           
None of the Company or any of its Affiliates nor any Person acting
on any of their behalf has, directly or indirectly, offered,
issued, sold or solicited any offer to buy any security of a type
which would be integrated with the Restructuring Transactions in
any manner that would require the Resulting Shares or the COD
Shares to be registered under the Securities Act.

 

Section
3.13.                   
Investment Company
Act. Neither the Company nor any of its Subsidiaries is,
and, after giving effect to the Restructuring Transactions, none of
them will be, an “investment company” within the
meaning of the Investment Company Act.

 

Section
3.14.                   
Insurance.
Section
3.14 of the Disclosure Schedule contains a complete and
correct list of material insurance policies maintained by or on
behalf of the Company as of the date of this
Agreement.

 

Section
3.15.                   
Compliance with Laws;
Permits.

 

(a)           Except
as disclosed on Section 3.15(a) of the
Disclosure Schedule, to the Knowledge of the Company, the Company
has complied in all material respects with all applicable Laws
(including Environmental Laws). Except as disclosed
on Section
3.15(a) of the Disclosure Schedule, the Company has not
received any written notice from any Governmental Authority, which
has not been dismissed or otherwise disposed of, that the Company
has not so complied. The Company has not been charged or, to
the Knowledge of the Company, threatened with, or under
investigation with respect to, any material violation of any
Applicable Law relating to any aspect of the business of the
Company.

 

(b)           There
is and has been no failure on the part of the Company or any of its
directors or officers, in their capacities as such, to comply with
any provision of the Sarbanes-Oxley Act of 2002 and the rules and
regulations promulgated in connection therewith.

 

(c)           The
Company holds all material Permits (including those issued pursuant
to Environmental Laws) necessary or required for the conduct of its
business as currently conducted. Each of such Permits is in
full force and effect and the Company is in material compliance
with each such Permit. Except as disclosed
on Section
3.15(c) of the Disclosure Schedule, the Company has not
received any written notice from any Governmental Authority and no
proceeding is pending or, to the Knowledge of the Company,
threatened with respect to any alleged failure by the Company to
have any Permit.

 

Section
3.16.                 
Material
Contracts.

 

(a)            Section
3.16(a) of the Disclosure Schedule lists the Material
Contracts of the Company.

 

(b)            The
Company has made available to the Investors true and complete
copies of all Material Contracts. Each Material Contract is in full
force and effect and is a valid and binding obligation of the
Company or its applicable Subsidiary party thereto and each of the
other parties thereto, enforceable in accordance with its terms.
Except as set forth in Section 3.16(b) of the
Disclosure Schedule, no event, occurrence, condition or act has
occurred, is pending or, to the Knowledge of the Company is
threatened, which, with the giving of notice, lapse of time, or the
happening of any further event, occurrence, condition or act, would
constitute a breach or default by the Company, any of its
Subsidiaries or, to the Knowledge of the Company, any other party
to (i) any Material Contract listed on Section 3.16(a) of
the Disclosure Schedule or (ii) any other Material Contract, under
such Material Contract, or give rise to a right of termination,
cancellation or to loss of a material benefit under, or to
increased, additional, accelerated or guaranteed rights or
entitlements of any Person under any Material Contract, except
where such breach or default or giving rise to such a right with
respect to any Material Contract referred to in clause (ii) above
would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(c)            Except
as described in Section 3.16(c) of the
Disclosure Schedule, the execution and delivery of this Agreement
and the consummation of the Restructuring Transactions and the
other transactions contemplated hereby will not (i) result in any
material payment (including severance, unemployment compensation,
tax gross-up, bonus or otherwise) becoming due to any current or
former director, officer, employee or independent contractor of the
Company or any of its Subsidiaries, from the Company or one of its
Subsidiaries under any employee benefit plan, contract or
otherwise, (ii) materially increase any benefits otherwise payable
under any employee benefit plan, contract or otherwise or (iii)
result in the acceleration of the time of payment, exercise or
vesting of any such material benefits.

 

Section
3.17.           
Information
Supplied. None of the information supplied or to be supplied
by or on behalf of the Company specifically for inclusion or
incorporation by reference in the Preliminary Proxy Statement or
the Definitive Proxy Statement (and any amendment or supplement
thereto) will, at the time the Preliminary Proxy Statement or the
Definitive Proxy Statement (and any amendment or supplement
thereto), as applicable, is filed with the SEC or mailed to the
Company stockholders or at the time of the Stockholder Meeting,
contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under
which they are made, not misleading. The Preliminary Proxy
Statement and the Definitive Proxy Statement will comply as to form
in all material respects with the requirements of the Securities
Act and the Exchange Act.

 

Section
3.18.            
Brokerage Fees.
Other than fees payable pursuant to the agreements set forth
on Section
3.18 of the Disclosure Schedule, true and correct
copies of which have been made available to Red Mountain, neither
the Company nor any of its Subsidiaries has paid, or is a party to
any contract, agreement or understanding with any Person (other
than this Agreement) that could give rise to a valid claim against
any of them for, a brokerage commission, finder’s fee or like
payment in connection with the Restructuring
Transactions.

 

 

11

 

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

 

Each
Investor, severally and not jointly, represents and warrants to
each of the other Parties hereto as follows:

 

Section
4.1.                 
Due Organization, Power
and Authority. Each Investor is validly existing and in good
standing under the laws of the state of its organization. Each
Investor has full right, power, authority and capacity to enter
into this Agreement and the Restructuring Documents to which it is
(or will be) a party and to carry out the transactions contemplated
thereby, and has taken all necessary action to authorize the
execution, delivery and performance of this Agreement and the
Restructuring Documents to which it is (or will be) a party. Upon
execution and delivery by an Investor of this Agreement and the
Restructuring Documents to which it is (or will be) a party and,
assuming due authorization, execution and delivery by the other
parties thereto, this Agreement and the Restructuring Documents to
which it is (or will be) a party will constitute valid and binding
obligations of such Investor, enforceable against such Investor in
accordance with their terms, except as such enforceability may be
limited by bankruptcy, fraudulent conveyance, insolvency,
reorganization, moratorium, and other laws relating to or affecting
creditors’ rights generally and by general equitable
principles (regardless of whether such enforceability is considered
in a proceeding in equity or at law).

 

Section
4.2.                  
Investor
Status.

 

(a)            Each
Investor acknowledges that it is a sophisticated institutional
investor, has knowledge and experience in financial matters and is
capable of independently evaluating the merits and risks of
investment decisions with respect to the Restructuring
Transactions.

 

(b)            Each
Investor acknowledges that (i) it has conducted its own
investigation of the Company, (ii) it has had access to, and has
had an adequate opportunity to review, (x) all information the
Company has filed with and furnished to the SEC, (y) all
information set forth in such filings and (z) such financial and
other information as it deems necessary to make its decision to
engage in the Restructuring Transactions, and (iii) it has been
offered the opportunity to ask questions of the Company, and
received such answers thereto to its complete satisfaction, as it
deemed necessary in connection with the decision to engage in the
Restructuring Transactions.

 

Section
4.3.                  
No Approvals or
Consents. Except as expressly provided in this Agreement, no
consent or approval is required by any other Person or entity in
order for an Investor to carry out the Restructuring Transactions
contemplated by, and perform the respective obligations under, this
Agreement and each of the Restructuring Documents to which it is
(or will be) a party.

 

Section
4.4.                  
No Actions or
Proceedings. There are no legal or governmental actions,
suits or proceedings pending or, to any Investor’s knowledge,
threatened against or affecting such Investor, or any of its
properties or assets which, if adversely determined, in the
aggregate, would reasonably be expected to materially and adversely
affect the ability of such Investor to consummate any of the
transactions contemplated by this Agreement or any Restructuring
Document.

 

Section
4.5.                  
Non-Contravention.
The entry into and performance of this Agreement by each Investor
and the consummation by such Investor of the transactions
contemplated hereby will not (i) result in a violation of the
organizational documents of such Investor, (ii) conflict with, or
constitute a default under, or give to others any rights of
termination, amendment, acceleration or cancellation of any
agreement, indenture or instrument to which such Investor is party,
or (iii) result in the violation of any law, rule, regulation or
Order (including federal and state securities laws) applicable to
such Investor, except in the case of clauses (ii) and (iii) above,
for such conflicts, defaults, rights or violations which would not,
individually or in the aggregate, reasonably be expected to have a
material adverse effect on the ability of such Investor to perform
its obligations hereunder.

 

ARTICLE V

 

REPRESENTATIONS AND WARRANTIES OF YE

 

YE
represents and warrants to each of the other Parties hereto as
follows:

 

Section
5.1.                      Ownership;
Due Organization, Power and Authority.

 

(a)            It
is the sole beneficial owner of the 2016 Loans.

 

(b)            It
is validly existing and in good standing under the laws of the
state of its organization.

 

(c)            It
has full power and authority to act, to the full extent
contemplated by this Agreement and the Restructuring Documents to
which it is (or will be) a party and without having to obtain the
consent or waiver of any Person (other than such consents or
waivers as have been irrevocably obtained), with respect to the
2016 Loans.

 

(d)            Upon
execution and delivery by YE and, assuming due authorization,
execution and delivery by the other parties thereto, this Agreement
and the Restructuring Documents to which YE is (or will be) a party
will constitute valid and binding obligations of YE, enforceable
against YE in accordance with their terms, except as such
enforceability may be limited by bankruptcy, fraudulent conveyance,
insolvency, reorganization, moratorium, and other laws relating to
or affecting creditors’ rights generally and by general
equitable principles (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

 

Section
5.2.                      Investor
Status.

 

(a)            YE
acknowledges that it is a sophisticated institutional investor, has
knowledge and experience in financial matters and is capable of
independently evaluating the merits and risks of investment
decisions with respect to the Restructuring
Transactions.

 

(b)            YE
acknowledges that (i) it has conducted its own investigation of the
Company, (ii) it has had access to, and has had an adequate
opportunity to review, (x) all information the Company has filed
with and furnished to the SEC, (y) all information set forth in
such filings and (z) such financial and other information as it
deems necessary to make its decision to engage in the Restructuring
Transactions, and (iii) it has been offered the opportunity to ask
questions of the Company, and received such answers thereto to its
complete satisfaction, as it deemed necessary in connection with
the decision to engage in the Restructuring
Transactions.

  

 

12

 

  

Section
5.3.                      No
Approvals or Consents. Except as expressly provided in this
Agreement, no consent or approval is required to be obtained by YE
from any other Person or entity in order for YE to carry out the
Restructuring Transactions contemplated by, and perform the
respective obligations under, this Agreement and each of the
Restructuring Documents to which it is (or will be) a
party.

 

Section
5.4.                      No
Actions or Proceedings. There are no legal or governmental
actions, suits or proceedings pending or, to the knowledge of YE,
threatened against or affecting YE, or any of YE’s properties
or assets which, if adversely determined, in the aggregate, would
reasonably be expected to materially and adversely affect the
ability of YE to consummate any of the transactions contemplated by
this Agreement or any Restructuring Document.

 

Section
5.5.                      Non-Contravention.
Assuming the truth and accuracy of the representations and
warranties of the Company and of each Investor, as set forth
in Article
III and Article IV, respectively, the
entry into and performance of this Agreement by YE and the
consummation by YE of the transactions contemplated hereby will not
(i) result in a violation of the organizational documents of YE,
(ii) conflict with, or constitute a default under, or give to
others any rights of termination, amendment, acceleration or
cancellation of any agreement, indenture or instrument to which YE
is party, or (iii) result in the violation of any law, rule,
regulation or Order (including federal and state securities laws)
applicable to YE, except in the case of clauses (ii) and (iii)
above, for such conflicts, defaults, rights or violations which
would not, individually or in the aggregate, reasonably be expected
to have a material adverse effect on the ability of YE to perform
its obligations hereunder.

 

ARTICLE VI

 

COVENANTS OF THE PARTIES

 

Section
6.1.                      Covenants
of the Company.

 

(a)            Business
Operations. Except as expressly permitted by this Agreement,
during the period beginning on the date of this Agreement and
ending on the Closing Date, the Company shall (i) operate its
businesses in the ordinary course based on historic practices and
the operations contemplated pursuant to the Company’s
business plans, taking into account the Restructuring Transactions
and the other transactions contemplated hereby, (ii) use
commercially reasonable efforts to preserve intact in all material
respects the business organization of the Company, (iii) make all
commercially reasonable efforts consistent with past practices to
keep its physical assets in good working condition, to keep
available the services of its current officers and employees and to
preserve the Company’s and each of its Subsidiaries’
relationships with lenders, creditors, lessors, lessees, licensors,
licensees, officers, employees, contractors, distributors, vendors,
clients, customers, suppliers or other Persons having a material
business relationship with the Company or any of its Subsidiaries,
and (iv) comply with all Applicable Laws and
Orders.

 

(b)            Effectuating
Documents; Further Transactions. After the Closing Date, to
the extent permitted by this Agreement and the Restructuring
Documents, the Company and its officers, directors and members are
authorized to and may issue, execute, deliver, file or record such
contracts, securities, instruments, releases, and other agreements
or documents and take such actions as may be necessary or
appropriate to effectuate, implement, and further evidence the
terms and conditions of this Agreement and the Equity Interests to
be converted, exchanged or issued, as applicable, pursuant to the
Restructuring Transactions on behalf of the Company, without the
need for any approvals, authorization, or consents except for those
expressly required pursuant to this Agreement.

 

(c)            Material
Adverse Effect. During the period beginning on the date of
this Agreement and ending on the Closing Date, the Company shall
promptly, but in any event within three (3) Business Days
thereafter, give written notice to the Investors and YE after
knowing of any development or event which, individually or in the
aggregate, has had or could reasonably be expected to have a
Material Adverse Effect.

 

(d)            Proxy
Statement. The Company shall use its reasonable best efforts
to cause the Definitive Proxy Statement to be mailed to the Company
stockholders as promptly as practicable after the date hereof. If
at any time prior to receipt of the Company Stockholder Approval
any information relating to the Company, or any of its Affiliates,
directors or officers, should be discovered by the Company which is
required to be set forth in an amendment or supplement to the
Definitive Proxy Statement, so that such document would not include
any misstatement of a material fact or omit to state any material
fact necessary to make the statements therein, in light of the
circumstances under which they are made, not misleading, the
Company shall promptly notify the Investors and an appropriate
amendment or supplement describing such information shall be
promptly filed with the SEC and, to the extent required by
Applicable Law, disseminated to the Company stockholders. The
Company shall promptly notify the Investors of the receipt of any
and all comments from the SEC or the staff of the SEC and of any
request by the SEC or the staff of the SEC for amendments or
supplements to the Preliminary Proxy Statement or the Definitive
Proxy Statement for additional information. The Company shall
respond to any and all comments from the SEC or the staff of the
SEC and to any request by the SEC or the staff of the SEC for
amendments or supplements to the Preliminary Proxy Statement or the
Definitive Proxy Statement, as promptly as practicable, and to the
extent practicable shall share drafts thereof with the Investors in
advance of submitting such responses.

 

(e)            Stockholder
Meeting and Company Stockholder Approval. The Company shall,
subject to Applicable Law, the Company’s certificate of
incorporation, the Company’s bylaws and the rules of the NYSE
American, (i) as promptly as reasonably practicable, establish a
record date for, duly call and give notice of the Stockholder
Meeting and (ii) as promptly as reasonably practicable convene and
hold the Stockholder Meeting and submit  the issuance of the
Resulting Shares, the issuance of the COD Shares, and the COD
Amendment to its stockholders for approval and adoption, in
order to obtain the Company Stockholder Approval. If, prior to the
date on which the Stockholder Meeting is scheduled, (x) the
Company reasonably believes that it is necessary to postpone or
adjourn the Stockholder Meeting to ensure that any required
supplement or amendment to the Definitive Proxy Statement is
provided to the Company stockholders in advance of the Stockholder
Meeting or (y) the Company or the Investors believe the Company
will not receive proxies sufficient to obtain the Company
Stockholder Approval, the Company may postpone or adjourn, or make
one or more successive postponements or adjournments of, the
Stockholder Meeting. The Company shall recommend in the Preliminary
Proxy Statement and the Definitive Proxy Statement that the Company
stockholders vote in favor of the proposals set forth above, and
shall use reasonable best efforts to obtain from its stockholders
the Company Stockholder Approval.

 

 

13

 

 

(f)            Reasonable
Best Efforts. The Company shall, and shall cause its
Affiliates to, use reasonable best efforts to take, or cause to be
taken, all actions, and to do, or cause to be done, and to assist
and cooperate with the other Parties in doing, all things
necessary, proper or advisable to consummate and make effective, in
the most expeditious manner practicable, the Restructuring
Transactions, including (i) taking of all acts necessary to cause
the conditions to the Closing to be satisfied as promptly as
practicable, (ii) ensuring that all steps set forth
in Section 2.1 occur as
promptly as practicable, and (iii) making all filings related to
the other Restructuring Transactions with applicable Governmental
Authorities as promptly as practicable.

 

(g)            Access
to Information. From the date hereof until the Closing Date,
the Company shall, and shall cause its Subsidiaries to: (i) provide
to the Investors reasonable access to the directors, officers,
employees, properties, facilities, books and records of the Company
and its Subsidiaries and (ii) furnish to the Investors information
concerning the business, properties, assets, liabilities, Equity
Interests and other aspects of the Company and its Subsidiaries as
the Investors may reasonably request.

 

(h)            NYSE
American Listing. As promptly as practicable after the date
hereof and prior to the Closing Date, the Company shall use its
reasonable best efforts to cause the Resulting Shares and the COD
Shares to be approved for listing on the NYSE American, subject to
official notice of issuance. The Company shall, and shall cause its
Affiliates to, use reasonable best efforts to take, or cause to be
taken, all actions, and to do, or cause to be done, and to assist
and cooperate with the other Parties in doing, all things
necessary, proper or advisable to maintain the listing of the
Common Stock on the NYSE American.

 

(i)            D&O
Insurance. The Company shall obtain, at or prior to the
Closing, prepaid (or “tail”) directors’ and
officers’ liability insurance policies in respect of acts or
omissions occurring at or prior to the Closing for six (6) years
from the Closing, covering each existing member of the Board on
terms with respect to such coverage and amounts no less favorable
than those of such policies in effect on the date of this
Agreement.

 

(j)           COD
Amendment. The Company shall cause the COD Amendment to
become effective at the Closing.

 

(k)           Solicitation
by the Company; Company Recommendation.

 

(i)           
Notwithstanding anything to the contrary in this Agreement, at any
time and from time to time prior to obtaining the Company
Stockholder Approval, the Company and its representatives shall
have the right, without any allegation of breach of this Agreement
by the Investors or YE, to (x) initiate, solicit and encourage any
inquiry or the making of any proposal or offer that constitutes an
Acquisition Proposal, including by making available information
(including non-public information and data) regarding, and
affording access to the business, properties, assets, books,
records and personnel of, the Company or its Subsidiaries pursuant
to a customary confidentiality agreement and (y) engage in, enter
into, continue or otherwise participate in any discussions or
negotiations with any Persons or group of Persons with respect to
any Acquisition Proposals and cooperate with or assist or
participate in or facilitate any such inquiries, proposals,
discussions or negotiations or any effort or attempt to make any
Acquisition Proposals; provided that, in each
case ((x) and (y)), the Company shall make available to the
Investors substantially concurrently with providing to any such
other Person (and in any event within 48 hours) any non-public
information concerning the Company or its Subsidiaries that was not
previously provided to the Investors. No later than two (2)
Business Days after receipt of an Acquisition Proposal, the Company
shall notify the Investors and YE in writing of the identity of
each Person or group of Persons from whom the Company, or its
applicable Subsidiary, received a written Acquisition Proposal and
provide to the Investors and, upon request, YE (A) a copy of
any Acquisition Proposal made in writing and any other written
terms or proposals provided to the Company or any of its
Subsidiaries and (B) a written summary of the material terms of any
Acquisition Proposal not made in writing (including any terms
proposed orally or supplementally).

 

(ii)           The
Company shall promptly (and in any event within 48 hours of receipt
thereof), notify the Investors both orally and in writing of the
receipt of any Acquisition Proposal or any inquiries that would
reasonably be expected to result in an Acquisition Proposal, or any
negotiations sought to be initiated or resumed with, either the
Company, one of its Subsidiaries or any of their respective
representatives concerning an Acquisition Proposal, which notice
shall include (x) a copy of any Acquisition Proposal
(including any financing commitments) made in writing and other
written terms or proposals provided to the Company or any of its
Subsidiaries and (y) a written summary of the material terms
of any Acquisition Proposal not made in writing or any such inquiry
or request. The Company shall keep the Investors reasonably
informed on a prompt basis (and in any event within 48 hours) of
any material developments, material discussions or material
negotiations regarding (i) any Acquisition Proposal, inquiry that
would reasonably be expected to result in an Acquisition Proposal,
or request for non-public information from any third party, or (ii)
any Acquisition Proposal that is or would reasonably be expected to
lead to a Superior Proposal. None of the Company or any of its
Subsidiaries shall, after the date of this Agreement, enter into
any agreement that would prohibit them from providing such
information or the information contemplated by the last sentence
of Section
6.1(k)(i) to the Investors and, as applicable,
YE.

 

(iii)           If
(x) the Company receives an Acquisition Proposal and complies in
all material respects with its disclosure obligations to the
Investors under Section 6.1(k)(i) and (y)
the Board determines in good faith after consultation with outside
counsel that such Acquisition Proposal constitutes a Superior
Proposal, the Board may authorize, adopt, or approve such Superior
Proposal and cause or permit the Company to enter into an
acquisition agreement, merger agreement or similar definitive
agreement with respect to such Superior Proposal (an
“Alternative
Acquisition Agreement”). Any Alternative Acquisition
Agreement must (A) provide for the full repayment of all Loans
and satisfaction of all Obligations (as such terms are defined in
the Existing Credit Agreement) of the Company and its Subsidiaries
under the Existing Credit Agreement and the Loan Documents (as such
term is defined in the Existing Credit Agreement), including
payment of all accrued and unpaid interest, repayment and
prepayment premiums and costs and expenses incurred by YE under the
Existing Credit Agreement and the Loan Documents, (B) provide for
the repurchase at par by the Company of the 2016 Loans, including
all accrued and unpaid interest thereon, and (C) provide for
transactions that can reasonably be expected to close no later than
ninety (90) days following execution thereof.

 

 

14

 

 

Section
6.2.                      Covenants
of YE and the Investors. For the period commencing as of the
date each Party executes this Agreement until the earlier to occur
of the termination of this Agreement pursuant to the terms hereof
or the Closing Date (such period, the “Restricted Period”),
YE shall not sell, transfer or assign any of the 2016 Loans. Except
as expressly provided in the preceding sentence, this Agreement
shall in no way restrict the right or ability of any Investor to
sell, transfer or assign any Equity Interests. During the
Restricted Period, YE agrees that it will not foreclose on the 2016
Loans.

 

Section
6.3.                      Mutual
Covenants of the Parties. Subject to the terms and
conditions hereof and for so long as this Agreement has not been
terminated in accordance with the terms hereof, each of the
Parties, as applicable, agrees to comply with the following
covenants:

 

(a)            Each
of the Parties hereby covenants and agrees to support and use
commercially reasonable efforts to facilitate consummation of each
of the Restructuring Transactions, as may be applicable, pursuant
to the terms set forth in this Agreement and the Restructuring
Documents, and take all reasonable actions necessary or reasonably
requested by the Company or the Investors to facilitate
consummation of each of the Restructuring Transactions, as may be
applicable, including voting in favor of, or executing written
consents approving, any actions necessary to effectuate the
foregoing.

 

(b)            Each
of the Parties hereby covenants and agrees not to, in its capacity
as a Party, or in any other capacity, in any material respect,
object to, delay, impede, or take any other action to interfere
with the Restructuring Transactions.

 

Section
6.4.                      Tax
Treatment. The Note Exchange and the COD Amendment shall, to the
maximum extent permitted by law, be treated as a tax-deferred
recapitalization transaction within the meaning of the Internal
Revenue Code of 1986, as amended.

 

ARTICLE VII

 

CONDITIONS TO CLOSING

 

Section
7.1.                      Each
Party’s Conditions to Closing. The respective
obligations of each Party to effect the Restructuring Transactions
set forth in Section 2.1(e) of this Agreement is subject to the
satisfaction or waiver on or prior to the Closing Date of the
following conditions:

 

(a)            Regulatory
Approvals. All governmental and regulatory approvals and
consents necessary to effectuate the Restructuring Transactions and
any other transactions contemplated hereby under any Applicable Law
shall have been obtained.

 

(b)            No
Injunctions or Legal Restraints. No temporary restraining
order, preliminary or permanent injunction or other Order issued by
any court of competent jurisdiction or other legal restraint or
prohibition (collectively, “Legal Restraints”) which
has the effect of preventing the consummation of the Restructuring
Transactions and the other transactions contemplated in this
Agreement or in the Restructuring Documents shall be in
effect.

 

(c)            Restructuring
Documents and Consents. All Restructuring Documents shall
have been (i) tendered for delivery, (ii) effected or
executed and (iii) to the extent required, filed and accepted
with the applicable Governmental Authority in accordance with
Applicable Laws. All conditions precedent to the Restructuring
Documents shall have been satisfied or waived pursuant to the terms
of the Restructuring Documents. All actions necessary to implement
the Restructuring Transactions shall have been taken by the
required Parties in accordance with Applicable Laws.

 

Section
7.2.                      Company’s
Conditions to Closing. The obligations of the Company to
effect the Restructuring Transactions set forth in Section 2.1(e)
of this Agreement are further subject to the satisfaction or waiver
on or prior to the Closing Date of the following
conditions:

 

(a)            Representations
and Warranties. The representations and warranties of the
Parties (other than the Company) contained herein that are
qualified as to materiality shall be true and correct, and the
representations and warranties of the other Parties contained
herein that are not so qualified shall be true and correct in all
material respects, in each case, as of the Closing Date as if made
as of such date, except that the accuracy of representations and
warranties that by their terms speak as of a specified date will be
determined as of such date.

 

(b)            Performance
of Obligations. Each of the Parties (other than the
Company) shall have performed in all material respects all
obligations required to be performed by it under this Agreement at
or prior to the Closing Date.

 

(c)            Waiver
of Conditions. The Company may waive any of the conditions
to the Closing set forth above in this Section 7.2 at any
time; provided, that in the event
that any such waiver has the effect of adversely impacting the
rights of YE under Article IX, Article
X or Section 6.1(c), the prior
consent of YE shall be required. The failure of YE to exercise any
of the foregoing rights shall not be deemed a waiver of any other
rights, and each such right shall be deemed an ongoing right, which
may be asserted at any time.

 

 

15

 

 

Section
7.3.                      Investors’
Conditions to Closing.

 

(a)            General.
Each Investor’s obligation hereunder to consummate the
Restructuring Transactions set forth in Section 2.1(e) of this
Agreement is subject to the satisfaction or express waiver by it
prior to or at the Closing of each of the conditions specified
below in this Section
7.3.

 

(b)            Representations
and Warranties of the Company. Each of the representations
and warranties of the Company that is qualified as to materiality
or Material Adverse Effect shall be true and correct, and each of
the representations and warranties of the Company in this Agreement
that is not so qualified shall be true and correct in all material
respects, in each case, on and as of the Closing Date as if made as
of such date except that the accuracy of representations and
warranties that by their terms speak as of a specified date will be
determined as of such date.

 

(c)            Performance
by the Company; No Default under Other Agreements. The
Company and each of its Subsidiaries shall have performed and
complied in all material respects with all agreements and covenants
contained in this Agreement and the Restructuring Documents
required to be performed or complied with by them prior to or at
the Closing (or such compliance shall have been waived on terms and
conditions reasonably satisfactory to each Investor) and after
giving effect to the Restructuring Transactions, no default or
event of default shall have occurred and be continuing under this
Agreement or any of the Restructuring Documents.

 

(d)            Material
Adverse Effect. Since the date of this Agreement, there
shall not have been any Material Adverse Effect.

 

(e)            Representations
and Warranties of YE. Each of the representations and
warranties of the YE in this Agreement and in each of the
Restructuring Documents shall be true and correct in all material
respects, in each case, on and as of the Closing Date as if made as
of such date except that the accuracy of representations and
warranties that by their terms speak as of a specified date will be
determined as of such date.

 

(f)            Performance
by YE. YE shall have performed and complied in all material
respects with all agreements and covenants contained in this
Agreement and the Restructuring Documents required to be performed
or complied with by YE prior to or at the Closing (or such
compliance shall have been waived on terms and conditions
reasonably satisfactory to each Investor).

 

(g)            Closing
Certificate. The Company shall have furnished a certificate,
addressed to each Investor, signed by the interim chief executive
officer and the chief restructuring officer of the Company, to the
effect that the closing conditions with respect to the Company set
forth in paragraphs (b) through (d) of this Section 7.3 have been
satisfied.

 

Section
7.4.                      YE’s
Conditions to Closing. The obligations of YE with respect to
the Restructuring Transactions and the other transactions
contemplated hereby are further subject to the satisfaction or
waiver on or prior to the Closing Date of the following
conditions:

 

(a)            Performance
by the Other Parties. Each of the Parties shall have
performed and complied in all material respects with the
agreements, covenants and obligations under this Agreement to the
extent they affect the rights of YE under this
Agreement.

 

(b)            Material
Adverse Effect. Since the date of this Agreement, there
shall not have been any Material Adverse Effect.

 

(c)            Closing
Certificate. The Company shall have furnished a certificate,
addressed to YE, signed by the interim chief executive officer and
the chief restructuring officer of the Company, to the effect that
the closing conditions with respect to the Company set forth in
paragraphs (a) and (b) of this Section 7.4 have been
satisfied.

 

Section
7.5.                      Frustration
of Closing Conditions. None of the Parties hereto may rely
on the failure of any condition set forth in this Article VII, as the case may
be, to be satisfied if such failure was caused by such
Party’s failure to comply with the terms of this
Agreement.

 

 

16

 

 

ARTICLE VIII

 

TERMINATION

 

Section
8.1.                      Termination.
This Agreement may be terminated, and the transactions contemplated
by Section 2.1(e)
of this Agreement may be abandoned, at any time prior to the
Closing Date:

 

(a)            by
written consent of the Company, the Investors and YE;

 

(b)            by
either the Investors and YE, on the one hand, or the Company on the
other hand, or (solely with respect to its obligations under this
Agreement), if the Closing shall not have been consummated by
December 31, 2019; provided, however, that if the SEC has
not cleared the Definitive Proxy Statement by November 15, 2019,
then any Party may, by written notice to the other Party,
extend such date to February 1, 2020; provided, further that the right to
terminate this Agreement under this Section 8.1(b) shall not
be available to any Party if the failure of such Party to perform
any of its obligations under this Agreement has been a principal
cause of or resulted in the failure of the Closing to be
consummated on or before such date;

 

(c)            by
either the Investors and YE, on the one hand, or the Company, on
the other hand, if any Legal Restraints having the effect set forth
in Section
7.1(b) shall be in effect and shall have become final
and nonappealable;

 

(d)            by
the Investors and YE, if the Company Stockholder Approval shall not
have been obtained at the Stockholder Meeting, as adjourned or
postponed from time to time;

 

(e)            by
the Investors and YE, if the Company shall have breached in any
material respect any of its representations, warranties, covenants
or other agreements contained in this Agreement or the
Restructuring Documents, which breach or failure to perform (i)
would give rise to the failure of a condition set forth
in Section
7.3, and (ii) has not been or is incapable of being cured by
the Company within ten (10) days after its receipt of written
notice thereof from the Investors and YE;

 

(f)            by
the Company, if the Investors or YE shall have breached in any
material respect any of their respective representations,
warranties, covenants or other agreements contained in this
Agreement, which breach or failure to perform (i) would give rise
to the failure of a condition set forth in Section 7.2, and (ii) has not
been or is incapable of being cured by the applicable Investor or
YE within ten (10) days after receipt of written notice thereof
from the Company;

 

(g)            solely
with respect to its obligations under this Agreement, by YE, if the
Company shall have breached in any material respect any of its
representations, warranties, covenants or other agreements
contained in this Agreement, which breach or failure to perform (i)
would give rise to the failure of a condition set forth
in Section
7.4, and (ii) has not been or is incapable of being cured by
the Company within ten (10) days after its receipt of written
notice thereof from YE; or

 

(h)            by
the Company, at any time prior to the Stockholder Meeting, if (i)
the Board determines that an Acquisition Proposal constitutes a
Superior Proposal and authorizes the Company, subject to complying
in all material respects with the terms of Section 6.1, to enter into an
Alternative Acquisition Agreement, (ii) concurrently with or
immediately following the termination of this Agreement, the
Company, subject to complying in all material respects with the
terms of Section
6.1, enters into such an Alternative Acquisition Agreement,
(iii) prior to or concurrently with such termination, the Company
reimburses the Investors for any and all fees and expenses
(including attorneys’ fees and expense reimbursement)
incurred by the Investors with respect to the negotiation,
execution, delivery and performance of this Agreement, the
Restructuring Documents and any Restructuring Transactions or other
transactions contemplated hereby which have been completed up until
such date and (iv) the Alternative Acquisition Agreement meets the
requirements set forth in the last sentence of Section 6.1(k)(iii);
provided, however, that no termination
may be made pursuant to this Section 8.1(h) until after
at least three (3) Business Days following the Investors’
receipt of written notice from the Company advising the Investors
that the Board intends to take such action.

 

Section
8.2.                      Effect
of Termination. In the event of termination of this
Agreement as provided in Section 8.1, the executory
provisions of this Agreement shall forthwith become void and have
no further effect, without any liability or obligation on the part
of any Party hereto or any of their respective officers, directors,
managers, partners, members, employees and agents, other than the
provisions of Sections 6.1(c), 8.2 and 8.3, Article IX, Article
X and Article XI, which shall survive
any such termination, and except to the extent that such
termination results from a material breach by such Party of any of
its representations, warranties, covenants or agreements set forth
in this Agreement or any of the Restructuring Documents. Nothing in
this Section
8.2 shall relieve either Party of (x) liability for
common law fraud or (y) liability resulting from any willful
breaches of this Agreement prior to the termination hereof. In
addition, notwithstanding anything to the contrary herein, no
termination of this Agreement shall affect, impair or limit in any
respect the validity and effectiveness of the Restructuring
Documents entered into prior to the termination of this
Agreement.

 

Section
8.3.                      Notice
of Termination. Termination of this Agreement by any Party
shall be by delivery of a written notice to the other Parties. Such
notice shall state the termination provision in this Agreement that
such terminating Party is claiming provides a basis for termination
of this Agreement. Termination of this Agreement pursuant to the
provisions of Section
8.1 shall be effective upon and as of the date of
delivery of such written notice as determined pursuant
to Section
11.2.

 

 

17

 

 

Section
8.4.                      Separate
Transactions. The Parties acknowledge and agree that the
Company Stockholder Approval will cover a number of proposals and
those proposals may receive different voting outcomes. Therefore,
notwithstanding anything to the contrary in this Agreement,
including in Article VII or Article VIII, (a) if the Company
Stockholder Approval with respect to the issuance of the Resulting
Shares is obtained, and all other conditions to Closing applicable
to the Note Exchange and the issuance of the Resulting Shares are
satisfied or waived (other than any conditions relating to the COD
Amendment and the issuance of the COD Shares), then, at Red
Mountain’s option, notwithstanding any failure of the Company
Stockholder Approval with respect to the COD Amendment or the
issuance of the COD Shares, the Parties shall be obligated to
consummate the Note Exchange and the other transactions
contemplated by Section 2.1(e) other than those relating to the COD
Amendment (and the COD Amendment shall be deemed abandoned), and
(b) in the event that the Company Stockholder Approval with respect
to the COD Amendment and the issuance of the COD shares is
obtained, and all other conditions to Closing applicable to the COD
Amendment and the issuance of the COD Shares are satisfied or
waived (other than any conditions relating to the Note Exchange and
the issuance of the Resulting Shares), then, at Red
Mountain’s option, notwithstanding any failure of the Company
Stockholder Approval with respect to the issuance of the Resulting
Shares, the Parties shall be obligated to make the COD Amendment
effective and consummate the other transactions contemplated by
Section 2.1(e) other than those relating to the Note Exchange (and
the Note Exchange shall be deemed abandoned), in each case, unless
(x) the Parties otherwise mutually agree or (y) the Company is
eligible to terminate this Agreement for a reason unrelated to a
failure of the Company Stockholder Approval or any consequence
thereof with respect to the COD Amendment or the issuance of the
COD Shares (in the case of clause (a)) or the issuance of the
Resulting Shares (in the case of clause (b)). In the event that the
Note Exchange is consummated or the COD Amendment is made effective
in accordance with this Section 8.4, the “Closing”
under this Agreement shall be deemed to have occurred, all other
transactions contemplated by this Agreement that are reasonably
necessary to give effect to or otherwise carry out the Note
Exchange or the COD Amendment, as the case may be, shall be
undertaken.

 

ARTICLE IX

 

INDEMNIFICATION

 

Section
9.1.                      Indemnification.
Except as prohibited by Applicable Law, the Company shall indemnify
and hold harmless each of the Indemnified Parties, for all costs,
expenses, loss, damage or liability incurred or suffered by any
such Indemnified Party arising from or related in any way to any
and all causes of action whether known or unknown, whether for
tort, contract, violations of federal or state securities laws or
otherwise, including any claims or causes of action, whether direct
or derivative, liquidated or unliquidated, fixed or contingent,
disputed or undisputed, matured or unmatured, known or unknown,
foreseen or unforeseen, asserted or unasserted (collectively,
“Losses”), to the extent
such Losses are based in whole or in part upon any act or omission,
transaction or other occurrence or circumstances arising from or
related in any way to the Company, the Restructuring Transactions,
this Agreement and the Restructuring Documents, including those
arising from or related in any way to: (a) any action or
omission of any such Indemnified Party in such Indemnified
Party’s capacity as director, officer, manager, employee,
attorney, other professional, and agent to the Company;
(b) any disclosure made or not made by any Indemnified Party
to any current or former holder of any such indebtedness of or any
such Equity Interest in the Company; and (c) any action taken
or not taken in connection with the negotiations, formulation,
solicitation or preparation of documents, agreements or instruments
prepared in connection with, or in furtherance of, the
Restructuring Transactions and the other transactions contemplated
hereunder; provided that the
foregoing indemnity shall not apply to any Losses arising from or
relating to any act or omission of an Indemnified Party that
constitutes fraud, willful misconduct or gross negligence. In the
event that any such Indemnified Party becomes involved in any
action, proceeding or investigation brought by or against any
Indemnified Party, as a result of matters to which the foregoing
“Indemnification” may relate, the Indemnified Party
shall promptly notify the Company and the Company shall assume the
defense thereof, including the employment of counsel reasonably
satisfactory to the Indemnified Party, and shall assume the payment
of all fees and expenses; provided that the failure
of any Indemnified Party to notify the Company in accordance with
the foregoing shall not relieve the Company of its obligations
except to the extent that the Company is materially prejudiced by
such failure to notify. The Company shall not be liable for any
settlement of any claim or action effected without its written
consent, which consent shall not be unreasonably withheld or
delayed, but if settled with such consent, or if there be a final
judgment for the plaintiff, the Company shall indemnify and hold
harmless such Indemnified Party from and against any Losses (to the
extent stated above) by reason of such settlement or
judgment.

 

 

18

 

 

ARTICLE X

 

MUTUAL RELEASES

 

Section
10.1.                     
Mutual
Releases.

 

(a)            AS
OF THE CLOSING DATE, SUBJECT TO THE CLOSING, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES (IN SUCH CAPACITY,
THE “RELEASING
PARTIES”) SHALL
CONCLUSIVELY, ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND FOREVER
RELEASE THE OTHER PARTIES, THEIR RESPECTIVE AFFILIATES, AND THEIR
RESPECTIVE REPRESENTATIVES, SUCCESSORS AND ASSIGNS (THE
“RELEASED
PARTIES”) FROM ANY AND
ALL CLAIMS, OBLIGATIONS, RIGHTS, SUITS, DAMAGES, CAUSES OF ACTION,
REMEDIES, AND LIABILITIES WHATSOEVER, INCLUDING ANY DERIVATIVE
CLAIMS ASSERTED ON BEHALF OF THE COMPANY, WHETHER KNOWN OR UNKNOWN,
FORESEEN OR UNFORESEEN, EXISTING OR HEREAFTER ARISING, IN LAW,
EQUITY OR OTHERWISE, THAT SUCH PARTY WOULD HAVE BEEN LEGALLY
ENTITLED TO ASSERT (WHETHER INDIVIDUALLY OR COLLECTIVELY), BASED ON
OR RELATING TO, OR IN ANY MANNER ARISING FROM, IN WHOLE OR IN PART,
THE RESTRUCTURING TRANSACTIONS, THE PURCHASE, SALE OR RESCISSION OF
THE PURCHASE OR SALE, OF ANY SECURITY OF THE COMPANY, THE SUBJECT
MATTER OF, OR THE TRANSACTIONS OR EVENTS GIVING RISE TO, ANY CLAIM
OR EQUITY INTEREST THAT IS TREATED IN THIS AGREEMENT OR THE
AGREEMENTS CONTEMPLATED BY THIS AGREEMENT, THE RESTRUCTURING OF
DEBT OF THE COMPANY OR EQUITY INTERESTS PRIOR TO OR DURING THE
RESTRUCTURING TRANSACTIONS, THE NEGOTIATION, FORMULATION, OR
PREPARATION OF THIS AGREEMENT, THE RESTRUCTURING DOCUMENTS OR OTHER
DOCUMENTS OR ANY OTHER ACT OR OMISSION, TRANSACTION, AGREEMENT,
EVENT, OR OTHER OCCURRENCE RELATED TO ANY OF THE FOREGOING AND
TAKING PLACE ON OR BEFORE THE CLOSING
DATE; PROVIDED, HOWEVER,
THAT THE RELEASES PURSUANT TO THIS SECTION
10.1 SHALL NOT APPLY
(I) WITH RESPECT TO A RELEASED PARTY, TO ANY CLAIMS OR LIABILITIES
ARISING OUT OF OR RELATING TO ANY ACT OR OMISSION OF SUCH RELEASED
PARTY THAT CONSTITUTES FRAUD, WILLFUL MISCONDUCT, GROSS NEGLIGENCE,
OR A CRIMINAL ACT TO THE EXTENT SUCH ACT OR OMISSION IS DETERMINED
BY A FINAL ORDER TO HAVE CONSTITUTED FRAUD, WILLFUL MISCONDUCT OR
GROSS NEGLIGENCE OR (II) TO ANY CONTRACT, AGREEMENT, ARRANGEMENT OR
UNDERSTANDING, WRITTEN OR ORAL, BETWEEN ANY ONE OR MORE OF THE
COMPANY, AND/OR THE RELEASED PARTIES, ON ONE HAND, AND ANY ONE OR
MORE OF THE RELEASING PARTIES, ON THE OTHER HAND, TO THE EXTENT NOT
RELATED TO THE RESTRUCTURING TRANSACTIONS OR ANY CLAIM OR EQUITY
INTEREST THAT IS THE SUBJECT OF ANY ACTION OR TREATMENT UNDER, OR
PURSUANT TO ANY PROVISION OF, THIS
AGREEMENT; PROVIDED, HOWEVER,
THAT THIS CLAUSE (II) SHALL NOT IN ANY WAY LIMIT OR AFFECT THE
RELEASES GRANTED TO THE INVESTORS AND YE AND THEIR AFFILIATES OR,
IN THEIR CAPACITIES AS SUCH, THEIR RESPECTIVE DIRECTORS, OFFICERS,
SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, PARENTS,
SUBSIDIARIES, PREDECESSORS, SUCCESSORS, HEIRS, EXECUTORS AND
ASSIGNEES, ATTORNEYS, FINANCIAL ADVISORS, INVESTMENT BANKERS,
ACCOUNTANTS AND OTHER PROFESSIONALS OR REPRESENTATIVES
(COLLECTIVELY, “REPRESENTATIVES”).

 

(b)            NOTWITHSTANDING
ANYTHING TO THE CONTRARY IN THE FOREGOING, NOTHING HEREIN SHALL BE
DEEMED TO AND NOTHING HEREIN SHALL RELEASE ANY POST-CLOSING
OBLIGATIONS OR RIGHTS OF ANY PARTY UNDER THIS AGREEMENT (INCLUDING
UNDER ARTICLE IX, SECTION 6.3, SECTION 11.3
OR SECTION
11.12 OF THIS AGREEMENT),
THE RESTRUCTURING DOCUMENTS OR ANY DOCUMENT, INSTRUMENT OR
AGREEMENT (INCLUDING THOSE SET FORTH IN THE RESTRUCTURING
DOCUMENTS) EXECUTED TO IMPLEMENT THE RESTRUCTURING TRANSACTIONS AND
THIS AGREEMENT.

 

(c)            NOTWITHSTANDING
ANYTHING TO THE CONTRARY IN THE FOREGOING, NOTHING HEREIN SHALL BE
DEEMED TO AND NOTHING HEREIN SHALL RELEASE ANY CLAIM ARISING UNDER
THE EXISTING CREDIT AGREEMENT OR THE LOAN DOCUMENTS (AS SUCH TERM
IS DEFINED IN THE EXISTING CREDIT AGREEMENT).

 

 

19

 

 

ARTICLE XI

 

MISCELLANEOUS

 

Section
11.1.                                Waiver
of Punitive Damages. Except in respect of any action based
on fraud, gross negligence or willful misconduct, to the extent
permitted by Applicable Law, none of the Parties hereto shall
assert, and each hereby waives, any claim against the other Parties
(including their respective Affiliates, partners, stockholders,
members, directors, officers, agents, employees and controlling
Persons), on any theory of liability for special, indirect,
consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of,
this Agreement or any agreement or instrument contemplated hereby,
the Restructuring Transactions, this Agreement or any Restructuring
Document.

 

Section
11.2.                                Notices.
Except as otherwise expressly provided herein, all notices and
other communications shall have been duly given and shall be
effective (a) when delivered, including via email (except that
if the day of delivery is not a Business Day, then the next
Business Day), (b) when transmitted via telecopy (or other
facsimile device) on a Business Day during normal business hours to
the number set out below if the sender on the same day sends a
confirming copy of such notice by a recognized overnight delivery
service (charges prepaid), (c) the day following the day
(except that if such day is not a Business Day, then the next
Business Day) on which the same has been delivered prepaid to a
reputable national overnight air courier service or (d) the
third Business Day following the day on which the same is sent by
certified or registered mail, postage prepaid, in each case to the
respective parties at the address set forth below, or at such other
address as such Party may specify by written notice to the other
Party:

 

(i)           
if to the Investors or YE, to: Red Mountain Capital Partners LLC,
10250 Constellation Blvd, Suite 2300, Los Angeles, CA 90067,
Attention: Willem Mesdag, with a copy (which copy shall not
constitute notice) to: Munger Tolles & Olson LLP, 350 South
Grand Avenue, 50th Floor, Los Angeles, CA 90071, Attention: C.
David Lee and Jennifer M. Broder.

 

(ii)           if
to the Company, to: Yuma Energy, Inc., 1177 West Loop South, Suite
1825, Houston, Texas 77027; Attention: Anthony C. Schnur, Interim
Chief Executive Officer with a copy (which copy shall not
constitute notice) to: Jones & Keller, P.C., 1999 Broadway,
Suite 3150, Denver, Colorado 80202; Attention: Reid A. Godbolt,
Esq. and Adam J. Fogoros, Esq.

 

Section
11.3.                                 Assignment;
Successors. Neither this Agreement nor any of the rights,
interests or obligations under this Agreement may be assigned or
delegated, in whole or in part, by operation of law or otherwise,
by any Party without the prior written consent of the other
Parties, and any such assignment without such prior written consent
shall be null and void; provided, however, that no assignment
shall limit the assignor’s obligations hereunder. Subject to
the preceding sentence, this Agreement (and the rights, duties and
obligations of the Parties to this Agreement) will be binding upon,
inure to the benefit of, and be enforceable by, the Parties and
their respective successors and assigns.

 

Section
11.4.                                No
Waiver of Remedies; Remedies Cumulative. No failure or delay
on the part of any Party in exercising any right, power or
privilege hereunder and no course of dealing between the Company,
its Subsidiaries and any other Party shall operate as a waiver
thereof; nor shall any single or partial exercise of any right,
power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege
hereunder. The rights and remedies provided herein are cumulative
and not exclusive of any rights or remedies that the Parties would
otherwise have. No notice to or demand on the Company or its
Subsidiaries in any case shall entitle the Company or its
Subsidiaries to any other or further notice or demand in similar or
other circumstances or constitute a waiver of the rights of the
other Parties hereto to any other or further action in any
circumstances without notice or demand.

 

 

20

 

 

Section
11.5.                                Counterparts.
This Agreement may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an
original, but all of which shall constitute one and the same
instrument. It shall not be necessary in making proof of this
Agreement to produce or account for more than one such counterpart.
Each counterpart may consist of a number of copies hereof, each
signed by less than all, but together signed by all, of the parties
hereto. Delivery of an executed counterpart of this Agreement by
facsimile or other electronic means shall be effective as delivery
of a manually executed counterpart thereof.

 

Section
11.6.                                Governing
Law; Submission to Jurisdiction; Venue.

 

(a)            THIS
AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND
THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE
STATE OF DELAWARE, EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE LAW OF
SUCH STATE THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF A
JURISDICTION OTHER THAN SUCH STATE.

 

(b)            If
any action, proceeding or litigation shall be brought in order to
enforce any right or remedy under this Agreement, each Party hereby
consents and will submit, and will cause each of their respective
Subsidiaries to submit, to the jurisdiction in the Delaware
Court of Chancery and any state appellate court therefrom within
the State of Delaware (unless the Delaware Court of Chancery shall
decline to accept jurisdiction over a particular matter, in which
case, in any federal court within the State of Delaware). Each
Party hereby irrevocably waives, and will cause each of their
respective Subsidiaries to waive, any objection, including, but not
limited to, any objection to the laying of venue or based on the
grounds of forum non conveniens, which they may now or hereafter
have to the bringing of any such action, proceeding or litigation
in such jurisdiction. Each Party further agrees that they shall
not, and shall cause each of their respective Subsidiaries not to,
bring any action, proceeding or litigation arising out of this
Agreement in the Delaware Court of Chancery and any state
appellate court therefrom within the State of Delaware (unless the
Delaware Court of Chancery shall decline to accept jurisdiction
over a particular matter, in which case, in any federal court
within the State of Delaware).

 

(c)            Each
Party irrevocably consents, and will cause each of their respective
Subsidiaries to consent, to the service of process of any of the
applicable aforementioned courts in any such action, proceeding or
litigation by the mailing of copies thereof by registered or
certified mail, postage prepaid, to the address set forth
in Section
11.2, such service to become effective thirty (30) days
after such mailing.

 

(d)            EACH
PARTY HERETO HEREBY WAIVES, AND WILL CAUSE EACH OF THEIR RESPECTIVE
SUBSIDIARIES TO WAIVE, ANY AND ALL RIGHTS ANY OF THEM MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING OR LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH,
THIS AGREEMENT.

 

 

21

 

 

Section
11.7.                                Severability.
If any provision of this Agreement becomes or is determined by a
court of competent jurisdiction to be illegal, invalid,
unenforceable or void, portions of such provision, or such
provision in its entirety, to the extent necessary, shall be
severed from this Agreement and the remaining provisions (or
portion of the provision) shall remain in full force and effect and
shall be construed without giving effect to the illegal, invalid,
unenforceable or void provisions (or portions
thereof).

 

Section
11.8.                                 Entirety.
This Agreement together with the Restructuring Documents represents
the entire agreement of the parties hereto and thereto, and
supersedes all previous and contemporaneous negotiations, promises,
covenants, understandings, agreements and representations, oral or
written, if any, on such subjects or relating to this Agreement,
the Restructuring Documents or the transactions contemplated herein
or therein, all of which have become merged and integrated into
this Agreement. All Schedules and Exhibits attached to this
Agreement constitute a part of this Agreement and are incorporated
herein for all purposes.

 

Section
11.9.                                 No
Third Party Beneficiaries. Notwithstanding anything
contained in this Agreement to the contrary, nothing in this
Agreement, expressed or implied, is intended to confer on any
Person other than the Parties to this Agreement (other than the
Indemnified Parties and the Released Parties) any rights, remedies,
obligations or liabilities under or by reason of this Agreement,
and no Person that is not a party to this Agreement (including any
partner, member, shareholder, director, officer, employee or other
beneficial owner of any party, in its own capacity as such or in
bringing a derivative action on behalf of a party) shall have any
standing as third-party beneficiary with respect to this Agreement
or the transactions contemplated by this Agreement.

 

Section
11.10.                                 Amendments
and Waivers of Terms. Any term of this Agreement may be
amended and the observance of any term of this Agreement may be
waived (either generally or in a particular instance and either
retroactively or prospectively), only if such amendment or waiver
is in writing and signed, in the case of an amendment, by the
Company, the Investors and YE.

 

Section
11.11.                                 Construction.
Each covenant contained herein shall be construed (absent express
provision to the contrary) as being independent of each other
covenant contained herein, so that compliance with any one covenant
shall not (absent such an express contrary provision) be deemed to
excuse compliance with any other covenant. Where any provision
herein refers to action to be taken by any Person, or which such
Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by
such Person, whether or not expressly specified in such
provision.

 

Section
11.12.                                Non-Survival
of Representations and Warranties. Absent actual fraud,
and any intentional, willful and material breach of any
representation or warranty contained in this Agreement by the
Company, none of the representations and warranties contained in
this Agreement or in any instrument delivered under this Agreement
will survive the Closing. This Section 11.12 does not
limit any covenant of the Parties which, by its terms, contemplates
performance after the Closing.

 

Section
11.13.                                Reservation
of Rights; Settlement Discussions. Except as expressly
provided in this Agreement, nothing contained in this Agreement is
intended to, nor shall it, in any manner, waive, limit, impair or
restrict the ability of each Investor and YE to protect and
preserve its rights, remedies and interest, including any claims
that such Investor or YE may have against the Company. Without
limiting the foregoing: (i) if the Restructuring Transactions are
not consummated, or if this Agreement is terminated for any reason,
the Parties hereto fully reserve any and all of their respective
rights and remedies under the Existing Credit Agreement and
Applicable Law, except with respect to the provisions of this
Agreement that survive termination of this Agreement as set forth
in Section 8.2; (ii) nothing
herein shall be deemed an admission of any kind; and (iii) pursuant
to Federal Rule of Evidence 408 and any applicable state rules of
evidence, this Agreement and all negotiations relating hereto shall
not be admissible into evidence in any action or proceeding other
than an action or proceeding to enforce the terms of this
Agreement.

 

Section
11.14.                                Construction.
The Parties acknowledge that (a) each Party has had the opportunity
to exercise business discretion in relation to the negotiation of
the details of the transactions contemplated hereby, (b) this
Agreement is the result of arms-length negotiations from equal
bargaining positions and (c) each Party and its counsel
participated in the preparation and negotiation of this Agreement.
Any rule of construction that a contract be construed against the
drafter shall not apply to the interpretation or construction of
this Agreement.

 

Section
11.15.                                Fees
and Expenses. The Company shall pay (a) when due and
payable, all reasonable costs and expenses (including attorney's
fees and expense reimbursement) that it incurs with respect to the
negotiation, execution, delivery and performance of this Agreement,
the Restructuring Documents and the Restructuring Transactions and
(b) at the Closing, all documented (pursuant to summary form
invoices which may be redacted for privileged information) costs
and expenses (for professional fees, expense reimbursement or
otherwise) presented for payment by the counsel and professionals
retained by the Investors and YE. The costs and expenses payable
pursuant to this Section 11.15 shall be in
addition to, and shall in no way affect or limit, the reimbursement
rights held by the Investors and YE under any other document or
agreement.

 

 

 

[SIGNATURE
PAGE FOLLOWS]

 

 

 

 

22

 

 

 

IN WITNESS WHEREOF, each of the parties
hereto has caused a counterpart of this Agreement to be duly
executed and delivered as of the date first above
written.

 

 

 

	

Yuma
Energy, Inc.

	
 

	

Yuma
Exploration and Production Company, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	

By: /s/
Anthony C. Schnur

	
 

	

By: /s/
Anthony C. Schnur

	

Name:
Anthony C. Schnur

	
 

	

Name:
Anthony C. Schnur

	

Title:
Interim Chief Executive Officer

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

	

Pyramid
Oil LLC

	
 

	

Davis
Petroleum Corp.

	
 

	
 

	
 

	
 

	
 

	
 

	

By: /s/
Anthony C. Schnur

	
 

	

By: /s/
Anthony C. Schnur

	

Name:
Anthony C. Schnur

	
 

	

Name:
Anthony C. Schnur

	

Title:
Interim Chief Executive Officer

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

	
 

 

 

23

 

 

 

	
 

	
 

	

RMCP
PIV DPC, LP

	
 

	
 

	
 

	
 

	
 

	

By:            RMCP
DPC LLC, its general partner

	
 

	
 

	
 

	
 

	
 

	

By: Red
Mountain Capital Partners LLC, its managing member

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Willem Mesdag

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	
 

	

Title:

	

Managing
Member

 

 

	
 

	
 

	

RMCP
PIV DPC II, LP

	
 

	
 

	
 

	
 

	
 

	

By:            RMP
DPC II LLC, its general partner

	
 

	
 

	
 

	
 

	
 

	

By: Red
Mountain Capital Partners LLC, its managing member

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Willem Mesdag

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	
 

	

Title:

	

Managing
Member

 

 

	
 

	
 

	

Red
Mountain Capital Partners LLC

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Willem Mesdag

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	
 

	

Title:

	

Managing
Member

 

 

	
 

	
 

	

YE
Investment LLC

	
 

	
 

	

 

By: Red
Mountain Capital Partners LLC, its managing member

 

	
 

	
 

	

By:

	

/s/
Willem Mesdag

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	
 

	

Title:

	

Managing
Member

 

 

 

 

24

 

 

 Exhibit A

LOAN MODIFICATION AGREEMENT

 

THIS
LOAN MODIFICATION
AGREEMENT (this
“Agreement”) is
made as of September 30, 2019 by and among Yuma Energy, Inc., a
Delaware corporation (the “Company”), Yuma Exploration and
Production Company, Inc., a Delaware corporation
(“Yuma
E&P”), Pyramid Oil LLC, a California limited
liability company (“Pyramid”), Davis Petroleum Corp.,
a Delaware corporation (“Davis” and collectively with the
Company, Yuma E&P and Pyramid, the “Borrowers”), and YE Investment
LLC, a Delaware limited liability company, as lender and
administrative agent (“YE”). Capitalized terms used but
not defined herein have the meanings set forth in the Credit
Agreement (as defined below).

 

W I T N E S S E T H:

 

WHEREAS, YE acquired as of September 10,
2019 all of the outstanding Loans and other Obligations of the
Borrowers (the “Purchased
Loans”) under that certain Credit Agreement, dated as
of October 26, 2016 (the “Original Credit Agreement”) by and
among the Lender party thereto, YE as Administrative Agent (in such
capacity, the “Agent”), and the Borrowers, as
amended or modified by (A) the First Amendment to Credit Agreement
and Borrowing Base Redetermination dated as of May 19, 2017, (B)
the Second Amendment to Credit Agreement and Borrowing Base
Redetermination dated as of May 8, 2018, (C) the Waiver and Third
Amendment to Credit Agreement dated as of July 31, 2018, (D) the
Limited Waiver dated as of August 30, 2018, in each case among the
Lenders, the Agent and the Borrowers, and (E) and the Successor
Agent and Issuing Bank Agreement dated as of September 10, 2019
(the agreements in (A) through (E), the “Default Documents”, and the
Original Credit Agreement as so amended or modified by the Default
Documents, the “Credit
Agreement”);

 

WHEREAS, the Purchased Loans are further
evidenced and secured by the other Loan Documents (as defined in
the Credit Agreement);

 

WHEREAS, the Borrowers and YE have
agreed, in the manner set forth herein, the outstanding principal
amount of the Purchased Loans will be reduced from $32,805,517.85
to $1,400,000.00; and

 

WHEREAS, YE and the Borrowers desire to
amend the Credit Agreement and the other Loan Documents in the
manner hereinafter set forth to reflect the reduction in the
principal amount of the Purchased Loans and certain additional
amendments to the Credit Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing recitals, which are incorporated into the operative
provisions of this Agreement by this reference, and for other good
and valuable consideration, the receipt and adequacy of which are
hereby conclusively acknowledged, the Borrowers hereby covenant and
agree with YE as follows:

 

Section
1.                           Original
Indebtedness. The Borrowers hereby acknowledge that, as of
the date hereof, the aggregate principal amount of the Purchased
Loans is $32,805,517.85.

 

Section
2.                           Forgiveness
of Certain Amounts.

 

(a) The aggregate
principal amount of the Purchased Loans is hereby reduced to an
outstanding principal amount of One Million, Four Hundred Thousand
and No/100 Dollars ($1,400,000.00) (the Purchased Loans with such
reduced aggregate principal amount are hereinafter referred to as
the “Modified Purchased
Loans”).

 

(b) The Modified
Purchased Loans shall be evidenced by a promissory note dated as of
September 30, 2019 from the Borrowers to YE (the
“YE Note”)
attached hereto as Exhibit
A.

 

(c) YE agrees that
$31,405,517.85 of, along with all interest due and payable in
connection with, the Purchased Loans as of the date hereof and all
fees due related thereto as of the date hereof are
forgiven.

 

Section
3.                           Ratification
of the YE Note. The YE Note is hereby ratified and confirmed
in all respects by the Borrowers and, except as so consolidated and
modified as set forth herein, the YE Note shall remain unchanged
and in full force and effect. The YE Note is secured by the liens
and security interests created by the Guarantee and Collateral
Agreement.

 

Section
4.                           Amendments
to the Credit Agreement.

 

(a) The definition of
“Alternate Base Rate” as set forth in Section 1.1 of
the Credit Agreement shall be deleted in its entirety, and the
following definition shall be inserted in place
thereof:

 

“Alternate Base Rate”
means, for any day, a rate per annum equal to ten percent
(10%).

 

(b) The definition of
“Applicable Margin” as set forth in Section 1.1 of the
Credit Agreement shall be deleted in its entirety, and the
following definition shall be inserted in place
thereof:

 

“Applicable Margin” means,
for any day, with respect to any Base Rate Loan or Eurodollar Loan
or the Commitment Fee Rate, the rate per annum of zero percent
(0.00%).

 

 

25

 

 

(c) The definition of
“Interest Payment Date” as set forth in Section 1.1 of
the Credit Agreement shall be deleted in its entirety, and the
following definition shall be inserted in place
thereof:

 

“Interest Payment Date”
means (a) with respect to any Base Rate Loan, the last day of each
March, June, September and December until December 31, 2019 and
thereafter the last day of each of January, February, March, April,
May, June, July, August, September, October, November and December,
and (b) with respect to any Eurodollar Loan, the last day of the
Interest Period applicable to the Borrowing of which such Loan is a
part and, in the case of a Eurodollar Borrowing with an Interest
Period of more than three months’ duration, each day prior to
the last day of such Interest Period that occurs at intervals of
three months’ duration after the first day of such Interest
Period.

 

 

(d) The definition of
“Maturity Date” as set forth in Section 1.1 of the
Credit Agreement shall be deleted in its entirety, and the
following definition shall be inserted in place
thereof:

 

“Maturity Date” means
September 30, 2022 or any earlier date on which the Commitments are
terminated pursuant to the terms hereof.

 

(e) Section 1.1 of
the Credit Agreement is hereby amended by
adding the following new definition in its
proper alphabetical order:

 

“Restructuring Agreement”
is defined in Section 7.1(o).

 

(f) Section 6.1 of the
Credit Agreement is hereby deleted in its entirety and replaced
with the following:

 

“Section
6.1  
[RESERVED]”

 

(g) Section 7.1 of the
Credit Agreement is hereby amended by adding a new subsection (o),
which shall read as follows:

 

“(o) the
failure of all of the Restructuring Transactions (as defined in
that certain Restructuring and Exchange Agreement, by and among the
parties hereto and the other parties thereto, dated as of September
30, 2019 (the “Restructuring
Agreement”)), including the Note Exchange and the COD
Amendment (each as defined in the Restructuring Agreement), to be
consummated and made effective on or before September 30,
2020.”

 

(h) Section 9.1(a)(ii)
of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

 

“(ii) if to
the Administrative Agent, to YE Investment LLC c/o Red Mountain
Capital Partners LLC, 10250 Constellation Blvd, Suite 2300, Los
Angeles, CA 90067, Attention: Willem Mesdag;”

 

(i) Section 9.1(a)(iii)
of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

 

“[RESERVED]”

 

(j) All references in
the Loan Documents to the Credit Agreement shall mean the Credit
Agreement as hereby modified.

 

(k) As amended by this
Agreement, all terms, covenants and provisions of the Loan
Documents are ratified and confirmed and shall remain in full force
and effect as first written.

 

 

26

 

 

(l) Except as modified
and amended hereby, the Loan, the Credit Agreement and the other
Loan Documents and the obligations of YE, Borrowers and Guarantors
thereunder shall remain unmodified and in full force and
effect.

 

(m) The Borrowers and
YE agree that the Borrowers shall not have the right to select an
interest rate based on the Adjusted LIBOR Rate.

 

(n) The
Borrowers agree that no Letters of Credit may be issued under the
Credit Agreement.

 

(o) The Borrowers and
YE agree that, for income tax purposes, the modification of the
Purchased Loans as set forth in this Agreement shall be treated as
a significant modification of the Purchased Loans that results in
an exchange of the Purchased Loans for a modified instrument that
differs materially in kind or in extent within the meaning of
Treasury Regulations Section 1.1001-3(b).

 

(p) The Borrowers agree
that no additional Loans will be made under the Credit Agreement
(including by way of re-borrowing).

 

Section
5.                      No
New Indebtedness.

 

(a) The Borrowers and
YE hereby acknowledge and agree that the YE Note evidences the same
indebtedness as the promissory notes evidencing the Purchased Loans
(the “Original
Notes”) and substitute for the Original Notes without
any novation, cancellation, extinguishment, payment or satisfaction
thereof, except as provided in this Agreement, including
forgiveness of debt and change to the interest rate. The Original
Notes have been superseded in their entirety by the YE Note.
Nothing contained in this Agreement or in the YE Note
shall:

 

(i) be deemed to
cancel, extinguish, or constitute payment or satisfaction of the
indebtedness secured by the Guarantee and Collateral Agreement or
other Loan Documents or evidenced by the Original
Notes;

 

(ii) give
rise to any defense, set-off, right of recoupment, claim or
counterclaim with respect to any of the Borrowers’
obligations under the Loan Documents or the Original
Notes;

 

(iii) constitute
a new or additional indebtedness or constitute a novation as to
Borrowers’ obligations under the Original Notes or the Loan
Documents;

 

(iv) constitute
a re-advance of a loan; or

 

(v) evidence any
principal indebtedness other than the same principal indebtedness
evidenced by the Original Notes and secured by the Guarantee and
Collateral Agreement and the other Loan Documents.

 

(b) The Borrowers
hereby (i) ratify and confirm the lien and security interests
contained in and created by the Guarantee and Collateral Agreement
and the other Loan Documents, and (ii) agree that nothing
contained in this Agreement is intended to or shall impair the
liens or security interests contained in and created by the
Guarantee and Collateral Agreement and the other Loan Documents,
which continues to secure the Modified Purchased
Loans.

 

Section
6.                     
Additional Representations
and Warranties. The Borrowers represent, warrant and
covenant that (a) there are no offsets, counterclaims or defenses
against the Modified Purchased Loans, this Agreement, the Credit
Agreement, the Guarantee and Collateral Agreement or the YE Note
arising solely by reason of entering into this Agreement, and (b)
the Borrowers have the full power, authority and legal right to
execute this Agreement and to keep and observe all of the terms of
this Agreement on its part to be observed or
performed. 

 

 

27

 

 

Section
7.                      Ratification.
By their signatures below, each Guarantor hereby agrees and
consents to this Agreement and ratifies and confirms as to itself
all of the terms and provisions set forth in the Guarantee and
Collateral Agreement and each of the other Loan Documents to which
it is a party (as each of the Loan Documents are amended or
otherwise modified on the date hereof by this Agreement), and each
agrees that their respective obligations and liabilities under such
agreements shall continue without impairment or limitation by
reason of this Agreement. Except as modified and amended by this
Agreement, the Credit Agreement and the respective obligations of
YE, Borrowers and Guarantors thereunder and in respect of the Loan
shall remain unmodified and in full force and effect.

 

Section
8.                   
Further Assurances.
At any time or from time to time, upon the request of YE, the
Borrowers shall execute and deliver such further documents and do
such other acts and things as YE may reasonably request in order to
effect fully the purposes of this Agreement, provided that the same
shall not increase the obligations or decrease the rights of the
Borrowers hereunder or under the Loan Documents.

 

Section
9.                      Notices.
All notices or other written communications hereunder shall be
delivered in accordance with Section 9.1 of the Credit
Agreement.

 

Section
10.                   
Defined Terms.
Capitalized terms which are not defined in this Agreement shall
have the meanings set forth in the Credit Agreement.

 

Section
11.                  
No Joint Venture or
Partnership. The Borrowers and YE intend that the
relationships created hereunder and under the other Loan Documents
be solely that of borrower and lender. Nothing herein or therein is
intended to create a joint venture, partnership, tenancy-in-common,
or joint tenancy relationship among the Borrowers and YE nor to
grant YE any interest in the Collateral other than that of
mortgagee, beneficiary or lender.

 

Section
12.                  
Modification, Waiver in
Writing. No modification, amendment, extension,
discharge, termination or waiver of any provision of this
Agreement, or of the YE Note, or of any other Loan Document, nor
consent to any departure by the Borrowers therefrom, shall in any
event be effective unless the same shall be in a writing signed by
the party against whom enforcement is sought, and then such waiver
or consent shall be effective only in the specific instance, and
for the purpose, for which given. Except as otherwise expressly
provided herein, no notice to, or demand on the Borrowers shall
entitle the Borrowers to any other or future notice or demand in
the same, similar or other circumstances.

 

Section
13.                 
Headings. The
Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of
this Agreement for any other purpose.

 

Section
14.              
Entire Agreement.
This Agreement, the YE Note and the other Loan Documents contain
the entire agreement of the parties hereto and thereto in respect
of the transactions contemplated hereby and thereby, and all prior
agreements among or between such parties, whether oral or written,
among the Borrowers and YE are superseded by the terms of this
Agreement and the other Loan Documents.

 

Section
15.               
Successors and
Assigns. Whenever in this Agreement any of the parties
hereto is referred to, such reference shall be deemed to include
the legal representatives, successors and assigns of such party.
All covenants, promises and agreements in this Agreement, by or on
behalf of the Borrowers, shall inure to the benefit of the
respective legal representatives, successors and assigns of
YE.

 

Section
16.                 
No Third-Party
Beneficiaries. Nothing contained herein is intended or shall
be deemed to create or confer any rights upon any third person not
a party hereto, whether as a third-party beneficiary or otherwise,
except as expressly provided herein.

 

Section
17.                
Severability.
Wherever possible, each provision of this Agreement and every other
Loan Document shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of
this Agreement or any other Loan Document shall be prohibited by or
invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining
provisions of this Agreement or any other Loan Document, as
applicable.

 

Section
18.                 
Governing Law. This
Agreement shall be governed in accordance with the terms and
provisions of Section 9.9 of the Credit Agreement.

 

Section
19.             
TRIAL BY
JURY. BORROWERS
AND YE HEREBY AGREE
NOT TO ELECT A TRIAL BY JURY OF ANY
ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT
THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE
LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING
IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWERS AND YE, AND IS INTENDED TO ENCOMPASS
INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO
A TRIAL BY JURY WOULD OTHERWISE ACCRUE. THE BORROWERS AND YE ARE HEREBY AUTHORIZED TO FILE A COPY OF THIS
PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER
BY THE OTHER
PARTY.

 

Section
20.                
Counterparts. To
facilitate execution, this Agreement may be executed in as many
counterparts as may be convenient or required. It shall not be
necessary that the signature of, or on behalf of, each party, or
that the signature of all persons required to bind any party,
appear on each counterpart. All counterparts shall collectively
constitute a single instrument. It shall not be necessary in making
proof of this Agreement to produce or account for more than a
single counterpart containing the respective signatures of, or on
behalf of, each of the parties hereto. Any signature page to any
counterpart may be detached from such counterpart without impairing
the legal effect of the signatures thereon and thereafter attached
to another counterpart identical thereto except having attached to
it additional signature pages.

 

[Signature
Page Follows]

 

 

 

28

 

 

 IN WITNESS WHEREOF, this Agreement has
been executed by the Borrowers and YE as of the date first set
forth above.

 

 

BORROWERS:

 

	

Yuma
Energy, Inc.

	
 

	

Yuma
Exploration and Production Company, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	

By: /s/
Anthony C. Schnur

	
 

	

By: /s/
Anthony C. Schnur

	

Name:
Anthony C. Schnur

	
 

	

Name:
Anthony C. Schnur

	

Title:
Interim Chief Executive Officer

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

	

Pyramid
Oil LLC

	
 

	

Davis
Petroleum Corp.

	
 

	
 

	
 

	
 

	
 

	
 

	

By: /s/
Anthony C. Schnur

	
 

	

By: /s/
Anthony C. Schnur

	

Name:
Anthony C. Schnur

	
 

	

Name:
Anthony C. Schnur

	

Title:
Interim Chief Executive Officer

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

 

 

29

 

 

 

	

 

LENDER:

 

	
 

	
 

	

YE Investment LLC

By: Red Mountain Capital Partners LLC,

its Managing Member

	
 

	
 

	
By: /s/
Willem Mesdag

Name: Willem
Mesdag

Title:
Managing Partner

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

 

 

30

 

 

The
undersigned hereby acknowledges and consents to the amendment of
the Credit Agreement and the Loan Documents pursuant to this
Agreement, and agrees that the liability of the undersigned under
the Guarantee and Collateral Agreement and each of the other Loan
Documents (as each of the Loan Documents are amended or otherwise
modified on the date hereof by this Agreement) to which it is a
party (collectively, the “Guarantor Documents”) shall not be
affected as a result of this Agreement or any other documents
executed in connection therewith, and hereby ratifies the Guarantor
Documents in all respects and confirms that the Guarantor Documents
are and shall remain in full force and effect.

 

 

GUARANTORS:

 

	

Davis
Petroleum Acquisition Corp.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By: /s/
Anthony C. Schnur

	
 

	
 

	

Name:
Anthony C. Schnur

	
 

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

The
Yuma Companies, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By: /s/
Anthony C. Schnur

	
 

	
 

	

Name:
Anthony C. Schnur

	
 

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

 

 

 

 

31

 

EXHIBIT A

 

YE Note

 

(attached
hereto)

 

 

32

 

 

NOTE

 

September
30, 2019

 

FOR
VALUE RECEIVED, the undersigned, 
YUMA ENERGY, INC., YUMA EXPLORATION AND PRODUCTION
COMPANY, INC., PYRAMID OIL LLC and DAVIS PETROLEUM CORP. (the
“Borrowers”, and each a
“Borrower”), each hereby
jointly and severally promise to pay to the order of YE INVESTMENT
LLC (together with its successors and permitted assigns, the
“Lender”) the aggregate
unpaid principal amount of all Loans made by the Lender to the
Borrowers pursuant to the Credit Agreement dated as of October 26,
2016 among the Borrowers, various financial institutions and YE
Investment LLC, as Administrative Agent (as amended, restated or
otherwise modified from time to time, the “Credit Agreement”), on
the dates, in the amounts and at the place provided in the Credit
Agreement. Each Borrower further jointly and severally promises to
pay interest on the unpaid principal amount of the Loans evidenced
hereby from time to time at the rates, on the dates, and otherwise
as provided in the Credit Agreement.

 

The
Lender is authorized to record the amount and the date on which
each Loan is made and each payment of principal with respect
thereto in its records; provided that any failure to so record such
information shall not in any manner affect any obligation of any
Borrower under the Credit Agreement or this Note.

 

This
Note may only be assigned as provided in the Credit
Agreement.

 

This
Note is one of the Notes referred to in, and is entitled to the
benefits of, the Credit Agreement. Capitalized terms used but not defined
herein have the respective meanings
set forth in the Credit
Agreement.

 

This
Note is issued as a replacement for (but not a novation of) those
certain notes dated October 26, 2016 made by Yuma Energy, Inc.,
Yuma Exploration and Production Company, Inc., Pyramid Oil LLC, and
Davis Petroleum Corp. Such prior notes are not to be deemed paid,
cancelled or terminated and the indebtedness represented by such
prior notes is a continuing obligation of the Borrowers and each
Borrower acknowledges and affirms that all indebtedness existing
under the Credit Agreement shall continue to be Indebtedness under
the Credit Agreement and evidenced hereby.

 

THIS
NOTE IS GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

[Signature
Page Follows]

 

 

 

 

33

Exhibit B

 

IN
WITNESS WHEREOF, each Borrower has caused this Note to be duly
executed and delivered as of the day and year first above
written.

 

YUMA
ENERGY, INC.

 

By:                                                                 

Name:
Anthony C. Schnur

Title:
Interim Chief Executive Officer

 

 

YUMA
EXPLORATION AND PRODUCTION COMPANY, INC.

 

 

By:                                                                 

Name:
Anthony C. Schnur

Title:
Interim Chief Executive Officer

 

 

PYRAMID
OIL LLC

 

 

By:                                                                 

Name:
Anthony C. Schnur

Title:
Interim Chief Executive Officer

 

 

DAVIS
PETROLEUM CORP.

 

By:                                                                 

Name:
Anthony C. Schnur

Title:
Interim Chief Executive Officer

                                                           

 

34

 

 

 

FORM OF

AMENDED AND RESTATED

CERTIFICATE OF DESIGNATION

OF

SERIES D CONVERTIBLE PREFERRED STOCK

 

OF

 

YUMA ENERGY, INC.

 

To Be Designated

 

Series D Convertible Preferred Stock

 

Pursuant to Section 151(g) of the

 

General Corporation Law of the State of Delaware

 

 

Yuma
Energy, Inc., a corporation organized and existing under the
General Corporation Law of the State of Delaware, as amended (the
“DGCL”), in accordance
with Section 151 of the DGCL, does hereby certify
that:

 

1. The
name of the corporation is Yuma Energy, Inc. (the
“Corporation”).

 

2. The
original Certificate of Incorporation of the Corporation (as
amended on October 26, 2016, the “Certificate of
Incorporation”) was filed with the Secretary of State
of the State of Delaware on February 10, 2016. The Corporation
filed its Amended and Restated Certificate of Incorporation on
October 26, 2016 (as may be amended from time to time, the
“Amended and
Restated Certificate of Incorporation”) with the
Secretary of State of the State of Delaware. The Corporation
amended the Amended and Restated Certificate of Incorporation on
July 3, 2019.

 

3.
Pursuant to the authority conferred upon the Board of Directors
(the “Board of
Directors”) of the Corporation by the Certificate of
Incorporation, and pursuant to the provisions of Sections 103 and
151(g) of the DGCL, said Board of Directors, by unanimous written
consent on October 26, 2016, adopted a resolution establishing the
rights, preferences, privileges and restrictions of, and the number
of shares comprising, the Corporation’s Series D Convertible
Preferred Stock.

 

4. The
Certificate of Designation of the Series D Convertible Preferred
Stock (the “Certificate of
Designation”) was filed with the Secretary of State of
the State of Delaware on October 26, 2016.

 

5. That
pursuant to the authority expressly conferred upon the Board of
Directors by the Amended and Restated Certificate of Incorporation,
the Board of Directors, by unanimous written consent on
[_______________], adopted the following resolutions amending and
restating the Certificate of Designation (the “Amended and Restated Certificate of
Designation”):

 

RESOLVED, that pursuant to the authority
conferred on the Board of Directors by the Amended and Restated
Certificate of Incorporation, any of the Chairman of the Board of
Directors, President, Secretary, Treasurer or any person authorized
by the Board of Directors (each, an “Authorized Officer”) of
the Corporation be, and hereby is, authorized and directed to
execute and file with the Secretary of State of the State of
Delaware an Amended and Restated Certificate of Designation of
Series D Convertible Preferred Stock of the Corporation fixing the
designations, powers, preferences and rights of the shares of such
series, and the qualifications, limitations or restrictions thereof
(in addition to the designations, powers, preferences and rights,
and the qualifications, limitations or restrictions thereof, set
forth in the Amended and Restated Certificate of Incorporation
which may be applicable to the Corporation’s preferred
stock), as follows:

 

 

 

1.           DESIGNATION
AND AMOUNT. A total of 7,000,000 shares of preferred stock,
$0.001 par value per share, of the Corporation, are hereby
designated as “Series D Convertible Preferred Stock”
(the “Series D
Preferred Stock”).

 

 

35

 

 

2.           
DIVIDENDS. The holders of
shares of Series D Preferred Stock shall be entitled to receive, in
preference to all of the Corporation’s common stock, $0.001
par value per share (the “Common Stock”), issued
previously or hereafter, a 7.0% per annum dividend on the Original
Issue Price of each share of Series D Preferred Stock held by such
holder that is cumulative and payable in kind per share in such
number of shares of Series D Preferred Stock determined using a
price per share equal to $11.0741176 per share (adjusted
appropriately for stock splits, stock dividends, recapitalizations,
consolidations, mergers, reclassifications and the like with
respect to the Series D Preferred Stock) (the “Original Issue
Price’’) and calculated on actual number of days
elapsed in a year of 365 days. In lieu of the issuance of a
fractional share of Series D Preferred Stock as a dividend, the
Corporation shall issue a whole share of Series D Preferred Stock
(rounded to the nearest whole share), determined on the basis of
the total number of shares of Series D Preferred Stock held by the
holder with respect to which such dividends are being calculated.
Such dividends will be cumulative and compound on a quarterly basis
to the extent not paid for any reason. Dividends will accrue and be
cumulative from the date that the Series D Preferred Stock is
issued under the Certificate of Designation, whether or not the
Corporation has earnings or profits, whether or not there are funds
legally available for the payment of such dividends and whether or
not such dividends are declared or paid. Quarterly dividends will
be paid on the last business day of the fiscal quarter (the
“Payment
Date”). Dividends paid in an amount less than the
total amount of such accrued dividends at the time shall be
allocated pro rata on a share-by-share basis among all shares of
Series D Preferred Stock at the time outstanding. The record date
for determination of the holders of Series D Preferred Stock
entitled to receive payment of a dividend thereon shall be fifteen
(15) days before the Payment Date, or
such other date that the Corporation establishes no less than ten
(10) days and no more than thirty (30) days preceding the Payment
Date. In addition, if and when any dividend is declared or paid by
the Board of Directors with respect to the Common Stock, the Board
of Directors shall also declare and pay the same dividend on each
share of the Series D Preferred Stock then outstanding on an
as-if-converted to Common Stock basis.

 

 

3.           

SALE
TRANSACTION AND LIQUIDATION.

 

 

(a) Payments to Holders of Series D Preferred
Stock. In the event of a Triggering Event, the holders of
Series D Preferred Stock shall be entitled to receive, prior and in
preference to any distribution of any of the assets of the
Corporation to the holders of Common Stock by reason of their
ownership thereof, the Preference Amount payable with respect to
each outstanding share of Series D Preferred Stock held by them.
If, upon the occurrence of such Triggering Event, the assets and
funds thus distributed or the consideration paid to the holders of
the Corporation’s capital stock, as the case may be, among
the holders of Series D Preferred Stock shall be insufficient to
permit the payment to such holders of the full aforesaid Preference
Amounts, then the entire assets and funds of the Corporation
legally available for distribution or the consideration paid to the
holders of the Corporation’s capital stock, as the case may
be, shall be distributed ratably among the holders of Series D
Preferred Stock in proportion to the Preference Amounts each such
holder is otherwise entitled to receive. The term
“Triggering
Event” means a transaction or series of related
transactions that results in (i) the sale, conveyance, transfer or
other disposition of all or substantially all of the property,
assets or business of the Corporation or its subsidiaries, taken as
a whole, (ii) the merger of the Corporation with or into or the
consolidation of the Corporation with any other corporation,
limited liability company or other entity (other than a
wholly-owned subsidiary of the Corporation), (iii) a third party or
a group of related third parties (other than pursuant to an
offering registered under the Securities Act of 1933, as amended
(the “Securities
Act”)) acquiring from the Corporation, or from the
holders of the Corporation’s capital stock, shares
representing 50% or more of the outstanding voting power of the
Corporation, or (iv) the liquidation, dissolution or winding up of
the Corporation, either voluntary or involuntary; provided that
none of the following shall be considered a Triggering Event: (A) a
merger effected exclusively for the purpose of changing the
domicile of the Corporation, (B) a transaction in which the
stockholders of the Corporation immediately prior to the
transaction own 50% or more of the voting power of the surviving
corporation following the transaction, (C) the acquisition of the
Convertible Promissory Note dated [__________] (the
“Convertible
Note”) by YE Investments LLC, a Delaware limited
liability company (“YE”), or (D) the
conversion of the Convertible Note into Common Stock. The term
“Preference
Amount” means, with respect to each outstanding share
of Series D Preferred Stock, the greater of (x) the Original Issue
Price for each outstanding share of Series D Preferred Stock then
held by them, plus accrued but unpaid dividends and (y) the amount
distributable or the consideration payable with respect to Common
Stock on the number of shares of Common Stock into which such share
of Series D Preferred Stock is convertible in the event of a
Triggering Event if all outstanding shares of Series D Preferred
Stock were deemed to have converted into shares of Common Stock
immediately prior to such Triggering Event. Nothing in this Section
3(a) shall require the distribution to stockholders of anything
other than proceeds of such Triggering Event in the event of a
merger or consolidation of the Corporation.

 

 

(b) Payments to Holders of Common Stock.
Upon the completion of the distribution required by Section 3(a)
above, if assets or consideration, as applicable, remain in the
Corporation the holders of the Common Stock of the Corporation
shall receive all of the remaining assets or consideration, as
applicable, of the Corporation on a pro rata basis based on the
number of shares of Common Stock held by each such
holder.

 

 

36

 

 

(c) Valuation of Consideration. In the event
of a Triggering Event as described in clauses (i), (ii) or (iii) of
the definition of Triggering Event, if the consideration received
by the Corporation is other than cash, its value will be deemed its
fair market value. Any securities shall be valued as
follows:

 

(i)    

Securities not
subject to investment letter or similar restrictions on free
marketability:

 

(A) if traded on a
securities exchange or market, the value shall be based on a
formula approved by the Board of Directors and derived from the
closing prices of the securities on such exchange or market over a
specified time period as determined in good faith by the Board of
Directors;

 

 

(B) if actively traded
over-the-counter, the value shall be based on a formula approved by
the Board of Directors and derived from the closing bid or sales
prices (whichever is applicable) of such securities over a
specified time period as determined in good faith by the Board of
Directors; and

 

 

(C) if there is no
active public market, the value shall be the fair market value
thereof, as determined in good faith by the Board of
Directors.

 

 

(ii)           

The method of
valuation of securities subject to investment letter or other
restrictions on free marketability (other than restrictions arising
solely by virtue of a stockholder’s status as an affiliate or
former affiliate) shall be to make an appropriate discount from the
market value determined as specified above in Section 3(c)(i) to
reflect the approximate fair market value thereof, as determined in
good faith by the Board of Directors.

4.

VOTING.

 

 

(a) General Voting Rights. The holders of
the Series D Preferred Stock shall be entitled to notice of
all stockholder meetings at which holders of Common Stock shall be
entitled to vote and shall be entitled to vote equally with the
holders of the Common Stock as a single class on an as-converted
basis on any matter presented to the stockholders of the
Corporation for their action or consideration.

 

 

(b) Special
Voting Rights. In addition to any other vote required by
law, the Amended and Restated Certificate of Incorporation or this
Amended and Restated Certificate of Designation, the holders of
shares of Series D Preferred Stock shall be entitled to vote
as a separate class on all matters specifically affecting the
Series D Preferred Stock. Without limiting the foregoing, the
Corporation shall not, either directly or indirectly, by amendment,
merger, consolidation or otherwise, do any of the following without
first obtaining the approval (by vote or written consent, as
provided by law) of the holders of at least a majority of the
outstanding shares of Series D Preferred Stock, and any
such act or transaction entered into without such approval
shall be null and void ab
initio, and of no force or effect:

 

 

(i) amend or repeal any
provision of, or add any provision to, the Amended and Restated
Certificate of Incorporation or this Amended and Restated
Certificate of Designation if such action would adversely alter or
change the relative rights, preferences, privileges or powers of
the Series D Preferred Stock;

 

 

(ii) authorize
or issue, or obligate itself to issue, any other equity security,
including any security convertible into or exercisable for any
equity security, having a preference over, or being on a parity
with, the Series D Preferred Stock with respect to voting
(other than the pari passu voting rights of Common Stock),
dividends, redemption, conversion or upon liquidation;

 

(iii) redeem,
purchase or otherwise acquire (or pay into or set aside for a
sinking fund for such purpose) any share of Common Stock or any
security (other than Series D Preferred Stock) convertible
into or exchangeable or exercisable for shares of Common Stock;
provided, however, that this restriction shall not apply to the
repurchase of shares of Common Stock at fair market value from
employees, officers, directors, consultants or other persons
performing services for this Corporation or any subsidiary pursuant
to agreements under which this Corporation has the option to
repurchase such shares under existing agreements and/or upon the
occurrence of certain events, such as the termination of employment
or service, or pursuant to a right of first refusal;
or

 

(iv) declare,
pay or set aside any dividends on any class of the
Corporation’s capital stock (other than the payment of
dividends on the Series D Preferred Stock in accordance with
Section 2).

 

 

37

 

 

5.           

CONVERSION. The holders of shares of
Series D Preferred Stock shall be entitled to conversion
rights as follows:

 

 

(a) Optional Conversion. Subject to Section
5(c), each share of Series D Preferred Stock (including any shares
of Series D Preferred Stock payable as dividends that have accrued
but are unpaid) shall be convertible, at the option of the holder
thereof, at any time after the date of issuance of such share, at
the principal corporate offices of the Corporation or any transfer
agent for such stock, into such number of fully paid and
nonassessable shares of Common Stock as is determined by dividing
(i) the Original Issue Price, by (ii) the conversion price (the
“Conversion
Price”) applicable to such share, determined as
hereafter provided, in effect on the date the stock certificate is
surrendered for conversion. The initial Conversion Price per share
of Series D Preferred Stock shall be $11.0741176 (before giving
effect to the issuances of Common Stock on or about October 3, 2017
and October 31, 2017, the reverse stock split of the Common Stock
that was effective on July 3, 2019, and the Restructuring and
Exchange Agreement dated September 30, 2019), but shall be amended
to be equal to $1.44372, subject to adjustment as set forth in
Section 5(d).

 

(b) Mandatory Conversion. Without limiting
the conversion rights set forth in Section 5(a) above, each share
of Series D Preferred Stock shall, at the election of the
Corporation, automatically be converted into shares of Common Stock
at the Conversion Price then in effect for such share immediately
upon a Mandatory Conversion Event. The term “Mandatory Conversion
Event” means any of: (i) the date specified, if any,
by vote or written consent of the holders of a majority of the
outstanding shares of Series D Preferred Stock; (ii) with respect
to any holder, any time that less than 10% of the original number
of shares of Series D Preferred Stock issued to such holder (as
adjusted for stock splits, stock dividends, reclassification and
the like) are held by such holder together with its affiliates on
combined basis; or (iii) with respect to any holder, when such
holder, together with its affiliates on combined basis, is no
longer a holder of shares of the Corporation’s Common Stock
(or any securities received in consideration for such Common Stock
in the event of merger, reorganization, reclassification or similar
transaction).

 

(c) Mechanics
of Conversion.

 

(i) Optional Conversion. Before any
holder of Series D Preferred Stock shall be entitled to convert
shares of Series D Preferred Stock into shares of Common Stock, the
holder shall surrender the certificate or certificates therefor,
duly endorsed, at the principal corporate office of the Corporation
or of any transfer agent for the Series D Preferred Stock, and
shall give written notice to the Corporation at its principal
corporate office, of the election to convert the same and shall
state therein the name or names in which the certificate or
certificates for shares of Common Stock are to be issued. The
Corporation shall, as soon as practicable thereafter, issue and
deliver at such office to such holder of Series D Preferred Stock,
or to the nominee or nominees of such holder, a certificate or
certificates for the number of shares of Common Stock to which such
holder shall be entitled as aforesaid. Such conversion shall be
deemed to have been made immediately prior to the close of business
on the date of such surrender of the shares of the Series D
Preferred Stock to be converted, and the person or persons entitled
to receive the shares of Common Stock issuable upon such conversion
shall be treated for all purposes as the record holder or holders
of such shares of Common Stock as of such date. If the conversion
is in connection with a firm commitment underwritten public
offering of securities, the conversion may, at the option of any
holder tendering shares of Series D Preferred Stock for conversion,
be conditioned upon the closing of the sale of securities pursuant
to such offering, in which event such holder shall not be deemed to
have converted shares of Series D Preferred Stock until immediately
prior to the closing of such sale of securities. At least ten (10)
days prior to the occurrence of a Triggering Event, the Corporation
shall notify each holder of Series D Preferred Stock in
writing of such Triggering Event. If the conversion is in
connection with a Triggering Event, the conversion may, at the
option of any holder tendering shares of Series D Preferred
Stock for conversion, be conditioned upon the closing of such
Triggering Event, in which event such holder shall not be deemed to
have converted shares of Series D Preferred Stock until
immediately prior to the closing of such Triggering
Event.

 

(ii) Mandatory
Conversion. At any time following a Mandatory Conversion
Event, the Corporation shall have the right to convert all shares
of Series D Preferred Stock then outstanding into that number of
shares of Common Stock as determined by the Conversion Price. The
Corporation shall effect such conversion by providing the holders
of Series D Preferred Stock with written notice (a
“Notice of Mandatory
Conversion”) sent by facsimile or as a scanned e-mail
attachment to the e-mail address provided to the Corporation by
each such holder, promptly followed by delivery of such written
notice by overnight courier to the address provided to the
Corporation by each such holder, and (A) stating that a Mandatory
Conversion Event has occurred, (B) specifying the then applicable
Conversion Price, the number of shares of Series D Preferred Stock
owned prior to the conversion, and the number of shares of Common
Stock to be received as a result of such conversion, and (C) the
date on which such conversion shall be consummated (the
“Conversion
Date”). From and after the Conversion Date, the shares
of Series D Preferred Stock shall be null and void and only
represent the right to receive the shares of Common Stock due upon
conversion thereof, and each holder shall be deemed to have become
the record holder of such shares of Common Stock on the Conversion
Date. The Corporation shall issue the shares of Common Stock
promptly following surrender by the holder Series D Preferred Stock
of the certificate(s) representing the shares of Series D Preferred
Stock to the Corporation.

 

 

38

 

 

(d) Conversion Price Adjustments for Certain
Dilutive Issuances, Splits and Combinations. The Conversion
Price of the Series D Preferred Stock shall be subject to
adjustment from time to time as follows:

 

(i) Issuance of Additional Stock Below Conversion
Price. If the Corporation should issue, at any time after
the date upon which any shares of Series D Preferred Stock were
first issued (the “Issue Date”), any
Additional Stock (as defined below) without consideration or for a
consideration per share less than the Conversion Price in effect
immediately prior to the issuance of such Additional Stock (as
adjusted for stock splits, stock dividends, reclassification and
the like), the Conversion Price in effect immediately prior to each
such issuance shall automatically be adjusted as set forth in this
Section 5(d)(i), unless otherwise provided in this Section
5(d)(i).

 

(A) Adjustment Formula. Whenever the
Conversion Price is adjusted pursuant to this Section 5(d)(i), the
new Conversion Price shall be determined by multiplying the
Conversion Price then in effect by a fraction, (1) the numerator of
which shall be the number of shares of Common Stock outstanding
immediately prior to such issuance (the “Outstanding Common”) plus
the number of shares of Common Stock that the aggregate
consideration received by the Corporation for such issuance would
purchase at such Conversion Price; and (2) the denominator of which
shall be the number of shares of Outstanding Common plus the number
of shares of such Additional Stock. For purposes of the foregoing
calculation, the term “Outstanding Common” shall
include shares of Common Stock deemed issued pursuant to Section
5(d)(i)(E) below.

 

 

(B) Definition of Additional Stock. For
purposes of this Section 5(d)(i), “Additional Stock” shall
mean any shares of Common Stock issued (or deemed to have been
issued pursuant to Section 5(d)(i)(E)) by the Corporation after the
Issue Date, other than:

 

(1)           securities
issued pursuant to stock splits, stock dividends or similar
transactions, as described in Section 5(d)(ii) hereof;

 

(2) securities issuable
upon conversion, exchange or exercise of convertible, exchangeable
or exercisable securities outstanding as of the Issue Date
including, without limitation, warrants, notes or
options;

 

(3) Common Stock (or
options therefor) issued or issuable to employees, consultants,
officers or directors of the Corporation pursuant to employee
benefit plans, stock option plans, incentive plans, or restricted
stock plans or agreements approved by the Board of Directors or a
duly authorized committee thereof;

 

(4) Common Stock issued
or issuable in an offering registered under the Securities Act, in
connection with which all outstanding shares of Series D Preferred
Stock convert to Common Stock;

 

(5) securities issued
or issuable in connection with the acquisition by the Corporation
of another company or business;

 

(6) securities issued
or issuable to financial institutions, equipment lessors, brokers
or similar persons in connection with commercial credit
arrangements, equipment financings, commercial property lease
transactions or similar transactions;

 

(7) securities issued
or issuable to an entity as a component of any business
relationship with such entity primarily for the purpose of (A)
joint venture, technology licensing or development activities, (B)
distribution, supply or manufacture of the Corporation’s
products or services or (C) any other arrangements involving
corporate partners that are primarily for purposes other than
raising capital, the terms of which business relationship with such
entity are approved by the Board of Directors;

 

(8) Common Stock issued
or issuable upon conversion of the Series D Preferred
Stock;

 

(9) the issuance of the
Convertible Note;

 

(10) Common
Stock issued or issuable upon conversion of the Convertible Note;
and

 

(11) securities
issued or issuable in any other transaction in which exemption from
these price-based antidilution provisions is approved by the
affirmative vote of at least a majority of the outstanding shares
of Series D Preferred Stock.

 

 

39

 

 

(C) No Fractional Adjustments. No adjustment
of the Conversion Price shall be made in an amount less than one
cent per share; provided that any adjustments which are not
required to be made by reason of this sentence shall be carried
forward and shall be either taken into account in any subsequent
adjustment made prior to three (3) years from the date of the event
giving rise to the adjustment being carried forward, or shall be
made at the end of three (3) years from the date of the event
giving rise to the adjustment being carried forward.

 

 

(D) Determination of Consideration. In the
case of the issuance of Common Stock for cash, the consideration
shall be deemed to be the amount of cash paid therefor before
deducting any reasonable discounts, commissions or other expenses
allowed, paid or incurred by the Corporation for any underwriting
or otherwise in connection with the issuance and sale thereof, as
determined by the Board of Directors. In the case of the issuance
of the Common Stock for a consideration in whole or in part other
than cash, the consideration other than cash shall be deemed to be
the fair value thereof as determined by the Board of Directors
irrespective of any accounting treatment.

 

 

(E) Deemed Issuances of Common Stock. In the
case of the issuance of securities or rights convertible into, or
entitling the holder thereof to receive directly or indirectly,
additional shares of Common Stock (the “Common Stock
Equivalents”), the following provisions shall apply
for all purposes of this Section 5(d)(i):

 

 

(1)           The
aggregate maximum number of shares of Common Stock deliverable upon
conversion, exchange or exercise (assuming the satisfaction of any
conditions to convertibility, exchangeability or exercisability,
including, without limitation, the passage of time, but without
taking into account potential antidilution adjustments) of any
Common Stock Equivalents and subsequent conversion, exchange or
exercise thereof shall be deemed to have been issued at the time
such securities were issued or such Common Stock Equivalents were
issued and for a consideration equal to the consideration, if any,
received by the Corporation for any such securities and related
Common Stock Equivalents (excluding any cash received on account of
accrued interest or accrued dividends), plus the minimum additional
consideration, if any, to be received by the Corporation (without
taking into account potential antidilution adjustments) upon the
conversion, exchange or exercise of any Common Stock Equivalents
(the consideration in each case to be determined in the manner
provided in Section 5(d)(i)(D)).

 

 

(2) In the event of any
change in the number of shares of Common Stock deliverable or in
the consideration payable to the Corporation upon conversion,
exchange or exercise of any Common Stock Equivalents, other than a
change resulting from the antidilution provisions thereof, the
Conversion Price, to the extent in any way affected by or computed
using such Common Stock Equivalents, shall be recomputed to reflect
such change, but no further adjustment shall be made for the actual
issuance of Common Stock or any payment of such consideration upon
the conversion, exchange or exercise of such Common Stock
Equivalents.

 

 

(3) Upon the
termination or expiration of the convertibility, exchangeability or
exercisability of any Common Stock Equivalents, the Conversion
Price, to the extent in any way affected by or computed using such
Common Stock Equivalents, shall be recomputed to reflect the
issuance of only the number of shares of Common Stock (and Common
Stock Equivalents that remain convertible, exchangeable or
exercisable) actually issued upon the conversion, exchange or
exercise of such Common Stock Equivalents.

 

 

(4) The number of
shares of Common Stock deemed issued and the consideration deemed
paid therefor pursuant to Section 5(d)(i)(E) shall be appropriately
adjusted to reflect any change, termination or expiration of the
type described in either Section 5(d)(i)(E)(2) or (3).

 

 

(F) No Increased Conversion Price.
Notwithstanding any other provisions of this Section 5(d)(i),
except to the limited extent provided for in Sections 5(d)(i)(E)(2)
and (3), no adjustment of the Conversion Price pursuant to this
Section 5(d)(i) shall have the effect of increasing the Conversion
Price above the Conversion Price in effect immediately prior to
such adjustment.

 

 

40

 

 

(ii) Stock
Splits and Dividends. In the event the Corporation should at
any time after the filing date of this Amended and Restated
Certificate of Designation fix a record date for the effectuation
of a split or subdivision of the outstanding shares of Common Stock
or the determination of holders of Common Stock entitled to receive
a dividend or other distribution payable in additional shares of
Common Stock or the Common Stock Equivalents without payment of any
consideration by such holder for the additional shares of Common
Stock or the Common Stock Equivalents (including the additional
shares of Common Stock issuable upon conversion or exercise
thereof), then, as of such record date (or the date of such
dividend distribution, split or subdivision if no record date is
fixed), the Conversion Price shall be appropriately decreased so
that the number of shares of Common Stock issuable on conversion of
each share of Series D Preferred Stock shall be increased in
proportion to such increase of the aggregate number of shares of
Common Stock outstanding and those issuable with respect to such
Common Stock Equivalents with the number of shares issuable with
respect to Common Stock Equivalents determined from time to time in
the manner provided for deemed issuances in Section
5(d)(i)(E).

 

 

(iii) Reverse
Stock Splits. If the number of shares of Common Stock
outstanding at any time after the filing date of this Amended and
Restated Certificate of Designation is decreased by a combination
of the outstanding shares of Common Stock (including by way of a
reverse stock split), then, following the record date of such
combination, the Conversion Price shall be appropriately increased
so that the number of shares of Common Stock issuable on conversion
of each share of Series D Preferred Stock shall be decreased in
proportion to such decrease in outstanding shares.

 

(e) Other Distributions. In the event the
Corporation shall declare a distribution payable in securities of
other persons, evidences of indebtedness issued by the Corporation
or other persons, assets (excluding cash dividends) or options or
rights not referred to in Section 5(d)(ii) or 5(d)(iii), then, in
each such case for the purpose of this Section 5(e), the holders of
Series D Preferred Stock shall be entitled to a proportionate share
of any such distribution as though they were the holders of the
number of shares of Common Stock of the Corporation into which
their shares of Series D Preferred Stock are convertible as of the
record date fixed for the determination of the holders of Common
Stock of the Corporation entitled to receive such
distribution.

 

 

(f) Recapitalizations. If at any time or
from time to time there shall be a recapitalization of the Common
Stock (other than a subdivision, combination or merger or sale of
assets transaction or other Triggering Event provided for elsewhere
in this Section 5 or in Section 3), a provision shall be made so
that the holders of Series D Preferred Stock shall thereafter be
entitled to receive upon conversion of shares of Series D Preferred
Stock the number of shares of stock or other securities or property
of the Corporation or otherwise, to which a holder of Common Stock
deliverable upon conversion would have been entitled on such
recapitalization. In any such case, appropriate adjustment shall be
made in the application of the provisions of this Section 5 with
respect to the rights of the holders of Series D Preferred Stock
after the recapitalization to the end that the provisions of this
Section 5 (including adjustment of the Conversion Price then in
effect and the number of shares issuable upon conversion of each
share of Series D Preferred Stock) shall be applicable after that
event and be as nearly equivalent as practicable.

 

 

(g) No
Fractional Shares and Certificate as to Adjustments.

 

 

(i) No fractional
shares shall be issued upon the conversion of any share or shares
of Series D Preferred Stock, and the number of shares of Common
Stock to be issued shall be rounded to the nearest whole share. The
number of shares issuable upon such conversion shall be determined
on the basis of the total number of shares of Series D Preferred
Stock the holder is at the time converting into Common Stock and
the number of shares of Common Stock issuable upon such aggregate
conversion. If the conversion would result in any fractional share,
the Corporation shall, in lieu of issuing any such fractional
share, pay the holder thereof an amount in cash equal to the fair
market value of such fractional share on the date of conversion, as
determined in good faith by the Board of Directors.

 

 

(ii) Upon
the occurrence of each adjustment or readjustment of the Conversion
Price pursuant to this Section 5, the Corporation, at its expense,
shall promptly compute such adjustment or readjustment in
accordance with the terms hereof and prepare and furnish to each
holder of Series D Preferred Stock a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon
which such adjustment or readjustment is based. The Corporation
shall, upon the written request at any time of any holder of Series
D Preferred Stock, furnish or cause to be furnished to such holder
a like certificate setting forth (A) such adjustment and
readjustment, (B) the Conversion Price at the time in effect, and
(C) the number of shares of Common Stock and the amount, if any, of
other property which at the time would be received upon the
conversion of a share of Series D Preferred Stock.

 

 

(h) Notices of Record Date. In the event of
any taking by the Corporation of a record of the holders of any
class of securities for the purpose of determining the holders
thereof who are entitled to receive any dividend (other than a cash
dividend) or other distribution, any right to subscribe for,
purchase or otherwise acquire any shares of stock of any class or
any other securities or property, or to receive any other right,
the Corporation shall mail to each holder of Series D Preferred
Stock, at least ten (10) business days prior to the date specified
therein, a notice specifying the date on which any such record is
to be taken for the purpose of such dividend, distribution or
right, and the amount and character of such dividend, distribution
or right.

 

 

41

 

 

(i) Reservation of Stock Issuable Upon
Conversion. The Corporation shall at all times reserve and
keep available out of its authorized but unissued shares of Common
Stock, solely for the purpose of effecting the conversion of the
shares of Series D Preferred Stock that is convertible into Common
Stock, such number of its shares of Common Stock as shall from time
to time be sufficient to effect the conversion of all outstanding
shares of Series D Preferred Stock; and if at any time the number
of authorized but unissued shares of Common Stock shall not be
sufficient to effect the conversion of all then outstanding shares
of Series D Preferred Stock, in addition to such other remedies as
shall be available to the holder of shares of Series D Preferred
Stock, the Corporation will take such corporate action as may, in
the opinion of its counsel, be necessary to increase its authorized
but unissued shares of Common Stock to such number of shares as
shall be sufficient for such purposes, including, without
limitation, engaging in best efforts to obtain the requisite
stockholder approval of any necessary amendment to the Certificate
of Incorporation.

 

(j)           Reservation
of Series D Preferred Stock Issuable as Dividends. The
Corporation shall at all times reserve and keep available out of
its authorized but unissued shares of Series D Preferred Stock,
solely for the purpose of effecting the payment of dividends in
kind on the Series D Preferred Stock, such number of its shares of
Series D Preferred Stock as shall from time to time be sufficient
to effect such payment of dividends on all outstanding shares of
Series D Preferred Stock; and if at any time the number of
authorized but unissued shares of Series D Preferred Stock shall
not be sufficient to effect the payment of dividends in kind on all
then outstanding shares of Series D Preferred Stock, in addition to
such other remedies as shall be available to the holder of shares
of Series D Preferred Stock, the Corporation will take such
corporate action as may, in the opinion of its counsel, be
necessary to increase its authorized but unissued shares of Series
D Preferred Stock to such number of shares as shall be sufficient
for such purposes, including, without limitation, engaging in best
efforts to obtain the requisite stockholder approval of any
necessary amendment to this Amended and Restated Certificate of
Designation.

 

 

(k)           Notices.
Any notice required by the provisions of this Section 5 to be given
to the holders of shares of Series D Preferred Stock shall be
deemed given if deposited 48 hours after being deposited in the
United States mail, as certified mail with postage prepaid, and
addressed to each holder of record at its address appearing on the
records of the Corporation or its transfer agent.

 

6.           

MISCELLANEOUS.

 

 

(a) Any provision in
this Amended and Restated Certificate of Designation (including,
but not limited to, any notice requirements) may be waived, in
whole or in part, amended or otherwise modified by the prior vote
or written consent of holders representing at least a majority of
the outstanding shares of Series D Preferred Stock.

 

 

(b) If any Series D
Preferred Stock certificate shall be mutilated, lost, stolen or
destroyed, the Corporation will issue, in exchange and in
substitution for and upon cancellation of the mutilated
certificate, or in lieu of and substitution for the certificate
lost, stolen or destroyed, a new Series D Preferred Stock
certificate of like tenor and representing an equivalent amount of
Series D Preferred Stock, upon receipt of evidence of such loss,
theft or destruction of such certificate and, if requested by the
Corporation, an indemnity on customary terms for such situations
reasonably satisfactory to the Corporation.

 

 

(c) The headings of the
various subdivisions hereof are for convenience of reference only
and shall not affect the interpretation of any of the provisions
hereof.

 

 

(d) This Amended and
Restated Certificate of Designation was submitted to a vote of
stockholders of the Corporation and was duly approved by the
required vote of the stockholders of the Corporation in accordance
with the terms of the Certificate of Designation and Section 242 of
the DGCL.

 

(e) This Amended and
Restated Certificate of Designation shall become effective upon the
filing thereof with the Secretary of State of the State of
Delaware.

 

 

7.           

NO OTHER RIGHTS. The shares of Series D
Preferred Stock shall not have any relative, participating,
optional or other special rights or powers except as set forth
herein or as may be required by law.

 

 

 

 

[Signature Page Follows]

 

 

42

 

IN WITNESS WHEREOF, the Corporation has
caused this Amended and Restated Certificate of Designation to be
signed by its Authorized Officer, this [___] day of [__________],
20[__].

 

 

 

 

 

YUMA
ENERGY, INC.

 

 

 

 

 

By:
_________________________

 

Name:

 

Title:
Authorized Officer

 

 

 

 

 

 

 

 

 

43

 

  Exhibit
C

 

VOTING AGREEMENT

 

This
VOTING AGREEMENT (this “Agreement”) is dated as
of September 30, 2019 by and among Yuma Energy, Inc., a Delaware
corporation (the “Company”), and each of
the persons listed on Schedule A hereto (each a
“Stockholder” and
collectively, the “Stockholders”).

 

WHEREAS, each of the Stockholders is, as
of the date hereof, the record and beneficial owner of that number
of shares of (i) common stock, $0.001 par value per share (the
“Common
Stock”), of the Company, and (ii) Series D
preferred stock, $0.001 par value per share (“Preferred Stock”), of the
Company, in each case, as set forth opposite such
Stockholder’s name on Schedule A hereto;

 

WHEREAS, the Company, Yuma Exploration
and Production Company, Inc., a Delaware corporation
(“Yuma
E&P”), Pyramid Oil LLC, a California limited
liability company (“Pyramid”), Davis
Petroleum Corp., a Delaware corporation (“Davis” and collectively
with the Company, Yuma E&P and Pyramid, the “Yuma Parties”), Red
Mountain Capital Partners LLC, a Delaware limited liability company
(“Red
Mountain”), RMCP PIV DPC, LP, a Delaware limited
partnership and an Affiliate of Red Mountain (“DPC PIV”), RMCP PIV DPC
II, LP, a Delaware limited partnership and an Affiliate of Red
Mountain (“DPC PIV
II” and together with Red Mountain and DPC PIV, the
“Investors”), and YE
Investment LLC, a Delaware limited liability company and an
Affiliate of Red Mountain (“YE”), concurrently with
the execution and delivery of this Agreement are entering into that
certain Restructuring and Exchange Agreement, dated as of the date
hereof (as the same may be amended or supplemented, the
“Restructuring
Agreement”) (capitalized terms used and not otherwise
defined herein shall have the meanings attributed thereto in the
Restructuring Agreement); and

 

WHEREAS, as a condition to the
willingness of the Yuma Parties to enter into the Restructuring
Agreement, and in order to induce the Yuma Parties to enter into
the Restructuring Agreement, the Stockholders have agreed to enter
into this Agreement.

 

NOW, THEREFORE, in consideration of the
execution and delivery by the Yuma Parties of the Restructuring
Agreement and the mutual representations, warranties, covenants and
agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

Section1. Representations
and Warranties of the Stockholders. Each of the Stockholders
hereby represents and warrants to the Yuma Parties, severally and
not jointly, as follows:

 

(a) Such
Stockholder is the beneficial owner (within the meaning of Rule
13d-3 under the Securities Exchange Act of 1934, as amended (the
“Exchange
Act”)) and unless otherwise indicated, the record
owner of the shares of Common Stock and Preferred Stock (as may be
adjusted from time to time pursuant to Section 5 hereof, the
“Shares”) set forth
opposite such Stockholder’s name on Schedule A to this Agreement.
For purposes of this Agreement, the term “Shares” shall
include any shares of Common Stock and Preferred Stock issuable to
such Stockholder upon exercise or conversion of any existing right,
contract, option, or warrant to purchase, or securities convertible
into or exchangeable for, Common Stock or Preferred Stock, as the
case may be (“Stockholder Rights”) that
are currently exercisable or convertible or become exercisable or
convertible and any other shares of Common Stock or Preferred Stock
such Stockholder may acquire or beneficially own during the term of
this Agreement.

 

44

 

 

(b) Such
Stockholder has all requisite organizational power and authority to
execute and deliver this Agreement and to perform its obligations
contemplated hereby. This Agreement has been validly executed and
delivered by such Stockholder and, assuming that this Agreement
constitutes the legal, valid and binding obligation of the Yuma
Parties and the other parties hereto, constitutes the legal, valid
and binding obligation of such Stockholder, enforceable against
such Stockholder in accordance with its terms (except insofar as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting
creditors’ rights generally, or by principles governing the
availability of equitable remedies).

 

(c) The
execution and delivery of this Agreement by such Stockholder does
not, and the performance of this Agreement by such Stockholder will
not, (i) if such Stockholder is a corporation, limited liability
company or limited partnership, conflict with the certificate or
articles of incorporation, certificate of formation or limited
liability company agreement or bylaws, certificate of limited
partnership or limited partnership agreement, or similar
organizational documents of such Stockholder as presently in effect
(in the case of a Stockholder that is a legal entity), (ii)
conflict with or violate any judgment, order, decree, statute, law,
ordinance, rule or regulation applicable to such Stockholder or by
which it is bound or affected, (iii)(A) result in any breach of or
constitute a default (or an event that with notice or lapse of time
or both would become a default) under, (B) give to any other person
any rights of termination, amendment, acceleration or cancellation
of, or (C) result in the creation of any pledge, claim, lien,
charge, encumbrance or security interest of any kind or nature
whatsoever upon any of the properties or assets of the Stockholder
under, any agreement, contract, indenture, note or instrument to
which such Stockholder is a party or by which it is bound or
affected, except for such breaches, defaults or other occurrences
that would not prevent or materially delay the performance by such
Stockholder of any of such Stockholder’s obligations under
this Agreement, or (iv) except for applicable requirements, if any,
of the Exchange Act, the Securities Act of 1933, as amended (the
“Securities
Act”), the NYSE American LLC (the “NYSE American”) or the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended
(the “HSR
Act”), require any filing by such Stockholder with, or
any permit, authorization, consent or approval of, any governmental
or regulatory authority, except where the failure to make such
filing or obtain such permit, authorization, consent or approval
would not prevent or materially delay the performance by the
Stockholder of any of such Stockholder’s obligations under
this Agreement.

 

(d) The
Shares and the certificates representing the Shares owned by such
Stockholder are now and at all times during the term hereof will be
held by such Stockholder, or by a nominee or custodian for the
benefit of such Stockholder, free and clear of all pledges, liens,
charges, claims, security interests, proxies, voting trusts or
agreements, understandings or arrangements or any other
encumbrances whatsoever, except for any such encumbrances or
proxies arising hereunder or under applicable federal and state
securities laws. As of the date hereof, such Stockholder owns of
record or beneficially no shares of Common Stock or Preferred Stock
other than (x) such Stockholder’s Shares as set forth on
Schedule A, (y)
shares of Common Stock or Preferred Stock owned of record or
beneficially by another Stockholder as set forth on Schedule A which may be deemed
to be beneficially owned by such Stockholder, and (z) shares of
Common Stock into which shares of Preferred Stock as set forth on
Schedule A may
convert.

 

45

 

 

(e) As
of the date hereof, neither such Stockholder, nor any of its
respective properties or assets is subject to any order, writ,
judgment, injunction, decree, determination or award that would
prevent or delay the consummation of the transactions contemplated
hereby.

 

(f) Such
Stockholder understands and acknowledges that the Yuma Parties are
entering into the Restructuring Agreement in reliance upon such
Stockholder’s execution and delivery of this
Agreement.

 

Section2. Representations
and Warranties of the Yuma Parties. The Yuma Parties hereby
jointly and severally represent and warrant to the Stockholders as
follows:

 

(a) Each
of the Yuma Parties is a corporation or limited liability company,
as applicable, validly existing and in good standing under the laws
of the jurisdiction of its incorporation or formation. Each of the
Yuma Parties has all requisite organizational power and authority
to execute and deliver this Agreement, to perform its respective
obligations hereunder and to consummate the transactions
contemplated hereby, and has taken all necessary corporate or
limited liability company action, as applicable, to authorize the
execution, delivery and performance of this Agreement. This
Agreement has been duly executed and delivered by each of the Yuma
Parties and, assuming that this Agreement constitutes the legal,
valid and binding obligation of the Stockholders hereto,
constitutes the legal, valid and binding obligation of the Yuma
Parties, enforceable against the Yuma Parties in accordance with
the terms of this Agreement (except insofar as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights
generally, or by principles governing the availability of equitable
remedies).

 

(b) The
execution and delivery of this Agreement by the Yuma Parties does
not, and the performance of this Agreement by the Yuma Parties will
not, (i) conflict with the certificates of incorporation,
certificate of formation or limited liability company agreement or
bylaws, or similar organizational documents of each of the Yuma
Parties as presently in effect, (ii) conflict with or violate any
judgment, order, decree, statute, law, ordinance, rule or
regulation applicable to the Yuma Parties or by which each is bound
or affected, (iii) (A) result in any breach of or constitute a
default (or an event that with notice or lapse of time or both
would become a default) under, (B) give to any other person any
rights of termination, amendment, acceleration or cancellation of,
or (C) result in the creation of any pledge, claim, lien, charge,
encumbrance or security interest of any kind or nature whatsoever
upon any of the properties or assets of the Yuma Parties under, any
agreement, contract, indenture, note or instrument to which any of
the Yuma Parties is a party or by which any of the Yuma Parties is
bound or affected, except for such breaches, defaults or other
occurrences that would not prevent or materially delay the
performance by the Yuma Parties of their respective obligations
under this Agreement, or (iv) except for applicable requirements,
if any, of the Exchange Act, the Securities Act, the NYSE American
or the HSR Act, require any filing by the Yuma Parties with, or any
permit, authorization, consent or approval of, any governmental or
regulatory authority, except where the failure to make such filing
or obtain such permit, authorization, consent or approval would not
prevent or materially delay the performance by the Yuma Parties of
their respective obligations under this Agreement.

 

46

 

 

(c) As
of the date hereof, none of the Yuma Parties or any of their
properties or assets are subject to any order, writ, judgment,
injunction, decree, determination or award that would prevent or
delay the consummation of the transactions contemplated
hereby.

 

Section3. Covenants
of the Stockholders. Each of the Stockholders, severally and
not jointly, agrees as follows:

 

(a) Prior
to Closing, such Stockholder shall not, except as contemplated by
the terms of this Agreement, sell, transfer, pledge, assign or
otherwise dispose of, or enter into any contract, option or other
arrangement (including any profit-sharing arrangement) or
understanding with respect to the sale, transfer, pledge,
assignment or other disposition of, the Shares (including any
options or warrants to purchase Common Stock or Preferred Stock) to
any person (any such action, a “Transfer”). For purposes
of clarification, the term “Transfer” shall include,
without limitation, any short sale (including any “short sale
against the box”), pledge, transfer, and the establishment of
any open “put equivalent position” within the meaning
of Rule 16a-1(h) under the Exchange Act. Notwithstanding the
foregoing, distributions of Shares to partners, members,
shareholders, subsidiaries, affiliates, affiliated partnerships or
other affiliated entities of the undersigned shall not be
prohibited by this Agreement; provided that in the case of any such
distribution, each distributee shall execute and deliver to the
Yuma Parties a valid and binding counterpart to this
Agreement.

 

(b) Prior
to Closing, such Stockholder shall not, except as contemplated by
the terms of this Agreement (i) enter into any voting arrangement,
whether by proxy, voting agreement, voting trust, power-of-attorney
or otherwise, with respect to the Shares or (ii) take any other
action that would in any way restrict, limit or interfere with the
performance of its obligations hereunder or the transactions
contemplated hereby or make any representation or warranty of such
Stockholder herein untrue or incorrect in any material
respect.

 

(c) At any meeting of
the stockholders of the Company called to vote upon the
transactions contemplated by the Restructuring Agreement or in
connection with any stockholder consent in respect of a vote on the
transactions contemplated by the Restructuring Agreement, the
Restructuring Agreement or any other transaction contemplated by
the Restructuring Agreement or at any adjournment thereof or in any
other circumstances upon which a vote, consent or other approval
(including by written consent) with respect to such matters is
sought, each Stockholder shall vote (or cause to be voted), or
shall consent, execute a consent or cause to be executed a consent
in respect of, all Shares owned by such Stockholder in favor of the
issuance of the Resulting Shares, the issuance of the COD Shares,
the approval and adoption of the COD Amendment and the approval of
any other transactions contemplated by the Restructuring Agreement,
but subject in all respects to Section 7 hereof. For the
avoidance of doubt, nothing in this Agreement shall be deemed to
require any Stockholder to exercise or convert any of such
Stockholder’s Stockholder Rights into or for any Common Stock
or Preferred Stock.

 

47

 

 

(d) Such
Stockholder agrees to permit the Company to publish and disclose in
the Preliminary Proxy Statement, the Definitive Proxy Statement and
related filings under the securities laws such Stockholder’s
identity and ownership of Shares and the nature of its commitments,
arrangements and understandings under this Agreement and any other
information required by applicable law.

 

Section4. Grant
of Irrevocable Proxy; Appointment of Proxy.

 

(a) Each
Stockholder hereby irrevocably grants to, and appoints, Anthony C.
Schnur, and any other individual who shall hereafter be designated
by the Company, such Stockholder’s proxy and attorney-in-fact
(with full power of substitution), for and in the name, place and
stead of such Stockholder, to vote such Stockholder’s Shares,
or grant a consent or approval in respect of such Shares, at any
meeting of stockholders of the Company or at any adjournment
thereof or in any other circumstances upon which their vote,
consent or other approval is sought, in favor of the issuance of
the Resulting Shares, the issuance of the COD Shares, the approval
and adoption of the COD Amendment and the approval of any other
transactions contemplated by the Restructuring Agreement, in
accordance with the terms hereof, but subject in all respects to
Section 7
hereof.

 

(b) Each
Stockholder represents that any existing proxies given in respect
of such Stockholder’s Shares are not irrevocable, and that
any such proxies are hereby revoked.

 

(c) Each
Stockholder hereby affirms that the irrevocable proxy set forth in
this Section 4 is
given in connection with the execution of the Restructuring
Agreement, and that such irrevocable proxy is given to secure the
performance of the duties of such Stockholder under this Agreement.
Such Stockholder hereby further affirms that the irrevocable proxy
is coupled with an interest and may under no circumstances be
revoked, subject to Section 7 herein. Such
Stockholder hereby ratifies and confirms all that such irrevocable
proxy may lawfully do or cause to be done by virtue hereof. Such
irrevocable proxy is executed and intended to be irrevocable in
accordance with applicable law. Such irrevocable proxy shall be
valid until the termination of this Agreement pursuant to
Section 7 herein,
at which time such irrevocable proxy shall terminate.

 

Section
5. Adjustments Upon Share Issuances,
Changes in Capitalization. In the event of any change in
Common Stock or in the number of outstanding shares of Common Stock
by reason of a stock dividend, subdivision, reclassification,
recapitalization, split, combination, exchange of shares or other
similar event or transaction or any other change in the corporate
or capital structure of the Company (including, without limitation,
the declaration or payment of an extraordinary dividend of cash,
securities or other property), and consequently the number of
Shares changes or is otherwise adjusted, this Agreement and the
obligations hereunder shall attach to any additional shares of
Common Stock, Preferred Stock, stockholder rights or other
securities or rights of the Company issued to or acquired by each
of the Stockholders.

 

48

 

 

Section
6. Further Assurances. Each
Stockholder will, from time to time, execute and deliver, or cause
to be executed and delivered, such additional or further transfers,
assignments, endorsements, consents and other instruments as the
Yuma Parties may reasonably request for the purpose of effectively
carrying out the transactions contemplated by this Agreement and to
vest the power to vote such Stockholder’s Shares as
contemplated by Section
3 herein.

 

Section
7. Termination. This Agreement,
and all rights and obligations of the parties hereunder, shall
terminate upon the earlier of (a) the Closing and (b) the date upon
which the Restructuring Agreement is terminated pursuant to Section
8.1 thereof. Notwithstanding the foregoing, Sections 7, 8 and 9 hereof shall survive any
termination of this Agreement.

 

Section
8. Action in Stockholder Capacity
Only. No Stockholder executing this Agreement who is or
becomes during the term hereof a director or officer of the Company
makes any agreement or understanding herein in his or her capacity
as such director or officer. Each Stockholder signs solely in its
capacity as the record holder and beneficial owner of, or the
trustee of a trust whose beneficiaries are the beneficial owners
of, such Stockholder’s Shares and nothing herein shall limit
or affect any actions or omissions taken by or fiduciary duties of,
a Stockholder or any of its affiliates, in his or her capacity as
an officer or director of the Company to the extent permitted by
the Restructuring Agreement and applicable law.

 

Section
9. Miscellaneous.

 

(a) Assignment.
Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any of the parties
hereto without the prior written consent of the other parties.
Subject to the preceding sentence, this Agreement will be binding
upon, inure to the benefit of and be enforceable by the parties and
their respective successors and assigns. Each Stockholder agrees
that this Agreement and the obligations of such Stockholder
hereunder shall attach to such Stockholder’s Shares and shall
be binding upon any person or entity to which legal or beneficial
ownership of such Shares shall pass, whether by operation of law or
otherwise, including without limitation such Stockholder’s
heirs, guardians, administrators or successors.

 

(b) Expenses.
Except as set forth in the Restructuring Agreement, all costs and
expenses incurred in connection with this Agreement and the
transactions contemplated thereby shall be paid by the party
incurring such expenses.

 

(c) Amendments.
This Agreement may not be amended except vis-à-vis the Company
and a Stockholder by an instrument in writing signed by the Company
and the applicable Stockholder and in compliance with applicable
law.

 

(d) Notice.
All notices and other communications hereunder shall be in writing
and shall be deemed duly given if delivered personally, mailed by
registered or certified mail (return receipt requested) or
delivered by Federal Express or other nationally recognized
overnight courier service to the parties at the following addresses
(or at such other address for a party as shall be specified by like
notice):

 

49

 

 

(i)         

if to a
Stockholder, to the address set forth under the name of such
Stockholder on Schedule
A hereto

 

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

 

Munger
Tolles & Olson LLP

350
South Grand Avenue, 50th Floor

Los
Angeles, CA 90071

Attention: C. David
Lee

Jennifer M.
Broder

 

and

 

(ii)           

if to the Yuma
Parties:

 

Yuma
Energy, Inc.

1177
West Loop South, Suite 1825

Houston, TX
77027

Attention:                                Anthony
C. Schnur

 

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

 

Jones
& Keller, P.C.

1999
Broadway, Suite 3150

Denver,
CO 80202

Attention: Reid A.
Godbolt

Adam J.
Fogoros

 

 

50

 

 

 

(e) Interpretation.
The headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation
of this Agreement. In this Agreement, unless a contrary intention
appears, (i) the words “herein,” “hereof”
and “hereunder” and other words of similar import refer
to this Agreement as a whole and not to any particular Section or
other subdivision and (ii) reference to any Section means such
Section hereof. No provision of this Agreement shall be interpreted
or construed against any party hereto solely because such party or
its legal representative drafted such provision.

 

(f) Counterparts.
This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which shall be
considered one and the same agreement. Delivery of an executed
counterpart signature page of this Agreement by facsimile or by
e-mail of a PDF document is as effective as executing and
delivering this Agreement in the presence of the other
parties.

 

(g) Entire
Agreement. This Agreement constitutes the entire agreement
of the parties and supersedes all prior agreements and
undertakings, both written and oral, among the parties, or between
any of them, with respect to the subject matter hereof, and except
as otherwise expressly provided herein, is not intended to confer
upon any other person any rights or remedies
hereunder.

 

(h) Governing
Law; Consent to Jurisdiction; Waiver of Trial by Jury. This
Agreement shall be governed by, and construed in accordance with,
the laws of the State of Delaware, without regard to laws that may
be applicable under conflicts of laws principles. Each of the
parties hereto irrevocably and unconditionally (i) agrees that any
suit, action or other legal proceeding arising out of or relating
to this Agreement or any of the agreements delivered in connection
herewith or the transactions contemplated hereby or thereby shall
be brought in the state courts of the State of Delaware (or, if
such courts do not have jurisdiction or do not accept jurisdiction,
in the United States District Court located in the State of
Delaware), (ii) consents to the jurisdiction of any such court in
any such suit, action or proceeding, and (iii) waives any objection
that such party may have to the laying of venue of any such suit,
action or proceeding in any such court. Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on
the judgment or in any other manner provided by law. Each party to
this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 9(d). Nothing in this
Agreement will affect the right of any party to this Agreement to
serve process in any other manner permitted by law.

 

EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE
UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO
THIS AGREEMENT AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION
HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH
PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (B) IT
UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS,
(C) IT MAKES SUCH WAIVERS VOLUNTARILY, AND (D) IT HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 9(h).

 

(i) Specific
Performance. The parties to this Agreement agree that
irreparable damage would occur in the event that any provision of
this Agreement was not performed in accordance with the terms of
this Agreement and that the Company shall be entitled to specific
performance of the terms of this Agreement without the posting of
any bond or security in addition to any other remedy at law or
equity.

 

(j) Severability.
If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction or other authority to
be invalid, void, unenforceable or against its regulatory policy,
the remainder of the terms, provisions, covenants and restrictions
of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

 

(k) Several
Liability. Each party to this Agreement enters into this
Agreement solely on its own behalf, each such party shall solely be
severally liable for any breaches of this Agreement by such party
and in no event shall any party be liable for breaches of this
Agreement by any other party hereto.

 

(l) Non-Recourse.
No past, present or future director, officer, employee,
incorporator, member, partner, stockholder, agent, attorney,
representative or affiliate of any Stockholder hereto or of any of
their respective Affiliates shall have any liability (whether in
contract or in tort) for any obligations or liabilities of such
party arising under, in connection with or related to this
Agreement or for any claim based on, in respect of, or by reason
of, the transactions contemplated hereby;provided, however, that nothing in this
Section 9(l) shall
limit any liability of any Stockholder hereto for its breaches of
the terms and conditions of this Agreement.

 

(m) Ownership
Interest. Nothing contained in this Agreement shall be
deemed to vest in the Yuma Parties any direct or indirect ownership
or incidence of ownership of or with respect to any
Stockholder’s Shares. All rights, ownership and economic
benefits of and relating to each Stockholder’s Shares shall
remain vested in and belong to such Stockholder, and the Yuma
Parties shall have no authority to direct any Stockholder in the
voting or disposition of any of such Stockholder’s Shares,
except as otherwise provided in this Agreement.

 

(n) Waiver.
No failure or delay by any party hereto in exercising any right,
power or privilege hereunder shall operate as a waiver thereof nor
shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power
or privilege. The rights and remedies herein provided shall be
cumulative and not exclusive of any rights or remedies provided by
applicable law.

 

 

 

[Signature Page Follows]

 

 

51

 

 

IN WITNESS WHEREOF, the Company has
caused this Agreement to be signed by its officer thereunto duly
authorized and each Stockholder has signed this Agreement, all as
of the date first written above.

 

 

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

YUMA
ENERGY, INC.

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Anthony C. Schnur

	
 

	
 

	

Name:

	

Anthony
C. Schnur

	
 

	
 

	

Title:

	

Interim
Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

	

YUMA
EXPLORATION AND PRODUCTION COMPANY, INC.

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Anthony C. Schnur

	
 

	
 

	

Name:

	

Anthony
C. Schnur

	
 

	
 

	

Title:

	

Interim
Chief Executive Officer

 

 

	
 

	
 

	
 

	
 

	
 

	

PYRAMID
OIL LLC

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Anthony C. Schnur

	
 

	
 

	

Name:

	

Anthony
C. Schnur

	
 

	
 

	

Title:

	

Interim
Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

 

 

	
 

	
 

	

DAVIS
PETROLEUM CORP.

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Anthony C. Schnur

	
 

	
 

	

Name:

	

Anthony
C. Schnur

	
 

	
 

	

Title:

	

Interim
Chief Executive Officer

 

 

 

 

 

 

52

 

 

VOTING
AGREEMENT

STOCKHOLDER
SIGNATURE PAGE

 

 

 

	
 

	
 

	

STOCKHOLDER:

	
 

	
 

	
 

	
 

	
 

	

RMCP
PIV DPC, LP

	
 

	
 

	
 

	
 

	
 

	

By:            RMCP
DPC LLC, its general partner

	
 

	
 

	
 

	
 

	
 

	

By: Red
Mountain Capital Partners LLC, its managing member

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Willem Mesdag

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	
 

	

Title:

	

Managing
Member

 

 

 

	
 

	
 

	

STOCKHOLDER:

	
 

	
 

	
 

	
 

	
 

	

RMCP
PIV DPC II, LP

	
 

	
 

	
 

	
 

	
 

	

By:            RMP
DPC II LLC, its general partner

	
 

	
 

	
 

	
 

	
 

	

By: Red
Mountain Capital Partners LLC, its managing member

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Willem Mesdag

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	
 

	

Title:

	

Managing
Member

 

 

	
 

	
 

	

STOCKHOLDER:

	
 

	
 

	
 

	
 

	
 

	

Red
Mountain Capital Partners LLC

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Willem Mesdag

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	
 

	

Title:

	

Managing
Member

 

53

 

SCHEDULE A

 

OWNERSHIP
OF SHARES

 

	

Name and Address of Stockholder

	

Number of Shares of Common Stock Beneficially Owned

	

Number of Shares of Series D Preferred Stock Beneficially
Owned

	
 

	
 

	
 

	

RMCP
PIV DPC, LP

	
 

	
 

	

c/o Red
Mountain Capital Partners LLC

	
 

	
 

	

10250
Constellation Blvd, Suite 2300 Los Angeles, CA 90067

	
 

	
 

	

Attention:
Willem Mesdag

	

168,337

	

-

	
 

	
 

	
 

	

RMCP
PIV DPC II, LP

	
 

	
 

	

c/o Red
Mountain Capital Partners LLC

	
 

	
 

	

10250
Constellation Blvd, Suite 2300 Los Angeles, CA 90067

	
 

	
 

	

Attention:
Willem Mesdag

	

-

	

2,136,670

	
 

	
 

	
 

	
 

	
 

	
 

	

Red
Mountain Capital Partners LLC

	
 

	
 

	

10250
Constellation Blvd, Suite 2300 Los Angeles, CA 90067

	
 

	
 

	

Attention:
Willem Mesdag

	

5,200

	
 -

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

54

 

 

 

Exhibit D

 

Convertible Note Terms

 

	

Principal

 

	

$1,400,000

 

	

Interest
Rate

 

	

5% per
annum

 

	

Interest
Payment Schedule

 

	

Monthly

 

	

Maturity

 

	

The
earlier of December 31, 2022 or the consummation of certain
business combination transactions, subject to earlier acceleration
upon an event of default

 

	

Secured
Status

 

	

Secured
under the Credit Agreement

 

	

Conversion

 

	

The
note may be converted at the sole election of the holder into a
number of shares determined by dividing the principal amount and
any accrued and unpaid interest of the note by $0.1288668927422 as
equitably adjusted for any stock split or stock dividends effected
after the date of the note, subject to customary anti-dilution
adjustment provisions

 

 

 

 

55

 

 

Exhibit E

 

FORM OF

BOARD REPRESENTATION RIGHTS AGREEMENT

This
Board Representation Rights Agreement (this “Agreement”), dated
[______] between Yuma Energy, Inc., a Delaware corporation (the
“Company”), and Red
Mountain Capital Partners LLC, a Delaware limited liability company
(“Red
Mountain”). The Company and Red Mountain, together,
the “Parties” and each, a
“Party.”

 

RECITALS

 

WHEREAS, the Company, Yuma Exploration
and Production Company, Inc., a Delaware corporation
(“Yuma
E&P”), Pyramid Oil LLC, a California limited
liability company (“Pyramid”), Davis
Petroleum Corp., a Delaware corporation (“Davis” and collectively
with the Company, Yuma E&P and Pyramid, the “Yuma Parties”), Red
Mountain, RMCP PIV DPC, LP, a Delaware limited partnership and an
Affiliate of Red Mountain (“DPC PIV”), RMCP PIV DPC
II, LP, a Delaware limited partnership and an Affiliate of Red
Mountain (“DPC PIV
II”), and YE Investment LLC, a Delaware limited
liability company and an Affiliate of Red Mountain
(“YE”
and collectively, with Red Mountain, DPC PIV and DPC PIV II, the
“RM
Holders”), have entered into that certain
Restructuring and Exchange Agreement, dated as of September 30,
2019 (as the same may be amended or supplemented, the
“Restructuring
Agreement”) (capitalized terms used and not otherwise
defined herein shall have the meanings attributed thereto in the
Restructuring Agreement);

 

WHEREAS, at Closing (as defined in the
Restructuring Agreement), assuming conversion of the Series D
Convertible Preferred Stock, $0.001 par value per share of the
Company (the “Series
D Preferred Stock”), to common stock, $0.001 par value
per share of the Company (the “Common Stock”) and
conversion of the Convertible Note to Common Stock), Red Mountain
and its Affiliates will hold approximately 91% of the issued and
outstanding shares of Common Stock on a fully diluted as converted
basis; and

 

WHEREAS, Red Mountain and the Company
desire to enter into this Agreement to set forth their agreements
regarding the designation of nominees on the Board of Directors of
the Company (the “Board”).

NOW, THEREFORE, in consideration of the
mutual covenants and agreements set forth herein and for good and
valuable consideration, the receipt and sufficiency of which is
hereby acknowledged by each of the Parties hereto, the Parties
hereby agree as follows:

 

Section
1.                      Board
Designation Rights. Until the annual meeting of the
Company’s stockholders (the “Stockholders”) held in
2022 (the “2022
Annual Meeting”) and including the 2022 Annual
Meeting:

 

(a) Subject to the
terms and conditions of this Agreement, Red Mountain shall have the
right (but not the obligation) to designate up to four (4) natural
persons (collectively, the “Nominees” and each, a
“Nominee”) for inclusion
by the Company and the Board, acting through the Nominating
Committee of the Board (the “Nominating Committee”),
in the slate of nominees recommended to the Stockholders for
election as directors at any annual or special meeting of the
Stockholders at which directors of the Company are to be elected.
Notwithstanding the foregoing, if the RM Holders’ combined
beneficial ownership (as defined in SEC Rule 13d-3) of the Common
Stock (including shares of Common Stock that may be issued upon
conversion of the Series D Preferred Stock and conversion of the
Convertible Note):

 

(i) is less than 50% of
the outstanding Common Stock on an as-converted basis (assuming
conversion of all outstanding shares of Series Preferred Stock to
Common Stock and conversion of the Convertible Note to Common
Stock), Red Mountain will, without further action, only be entitled
to designate up to two (2) Nominees;

 

(ii) is
less than 20% of the outstanding Common Stock on an as-converted
basis (assuming conversion of all outstanding shares of Series
Preferred Stock to Common Stock and conversion of the Convertible
Note to Common Stock), Red Mountain will, without further action,
only be entitled to designate up to one (1) Nominee;
and

 

(iii) is
less than 10% of the outstanding Common Stock on an as-converted
basis (assuming conversion of all outstanding shares of Series
Preferred Stock to Common Stock and conversion of the Convertible
Note to Common Stock), Red Mountain will, without further action,
no longer have any nomination rights hereunder.

 

 

56

 

 

(b) Board vacancies
arising through the death, resignation or removal of a then-serving
Nominee may be filled by the Board only with another Nominee and
the director so chosen will hold office until the next election at
an annual meeting of the Stockholders and until his or her
successor is duly elected and qualified, or until his or her
earlier death, resignation or removal.

 

(c) Notwithstanding the
provisions of this Section
1, Red Mountain will not be entitled to designate a person
as a nominee to the Board upon a determination in good faith by (i)
the Nominating Committee that such person would not be qualified
under applicable law, rule or regulation to serve as a director of
the Company or (ii) the Board, the Nominating Committee or another
duly authorized committee of the Board, after consultation with
outside counsel, that so doing would be inconsistent with its
fiduciary duties under applicable law or violate applicable law.
Other than with respect to the considerations set forth in the
preceding sentence, the Company will not have the right to object
to any Nominee.

 

(d) The Company will
notify Red Mountain in writing of the date on which proxy materials
are expected to be mailed by the Company in connection with an
election of directors at an annual or special meeting of the
Stockholders (and such notice will be delivered to Red Mountain at
least thirty (30) days prior to such expected mailing date). The
Company will use its reasonable best efforts to notify Red Mountain
of any opposition to the Nominee in accordance with Section 1(c) sufficiently in
advance of the date on which such proxy materials are to be mailed
by the Company in connection with such election of directors so as
to enable Red Mountain to propose a replacement Nominee at its
election in accordance with the terms of this Agreement, and Red
Mountain will have five (5) Business Days to designate another
nominee.

 

(e) Subject to
applicable legal requirements, the Company will procure that its
Certificate of Incorporation and Bylaws accommodate the rights and
obligations set forth herein.

 

Section
2.                    
Subsequent Nomination of
Persons Designated by Red Mountain; Voting.

 

(a) Subject to
applicable law, the Company will use its commercially reasonable
efforts to cause the election of each Nominee, including by
including each such Nominee in the proxy statement prepared by
management of the Company in connection with soliciting proxies for
every meeting of Stockholders called for the election of such
Nominee, and at every postponement or adjournment thereof, and on
every action of the Board or the Stockholders with respect to the
election of such Nominee.

 

(b) Until the 2022
Annual Meeting, the RM Holders will vote their shares of Common
Stock and Series D Preferred Stock to confirm any nominee nominated
and recommended by the Board (whether or not it has nomination
rights hereunder) as long as it owns any such shares.

 

Section
3.                   
Termination. This
Agreement may be terminated at any time with the affirmative
written consent of Red Mountain.

Section
4.                    
Expenses. Except as
otherwise provided herein, all expenses incurred in connection with
this Agreement and the transactions contemplated hereby will be
paid by the Company; provided, further, for the avoidance of doubt,
that the Company will pay the reasonable out-of-pocket expenses
incurred by each Nominee in connection with his or her election
and/or attending the meetings of the Board and any committee
thereof submitted in accordance with its expense reimbursement
policies.

 

Section
5.                    
Notice. All
notices, requests, demands and other communications made under or
by reason of the provisions of this Agreement must be in writing
and be given by hand delivery, email, facsimile or next Business
Day courier to the affected Party at the addresses and facsimile
numbers set forth below. Such notices will be deemed given at the
time personally delivered (if delivered by hand with receipt
acknowledged), upon issuance by the transmitting machine of
confirmation that the number of pages constituting the notice has
been transmitted without error and confirmed telephonically (if
sent by email or facsimile), and the first Business Day after
timely delivery to the courier (if sent by next-Business Day
courier specifying next-Business Day delivery).

 

Section
6.                    
Interpretation.
This Agreement has been freely and fairly negotiated among the
Parties. If an ambiguity or question of intent or interpretation
arises, this Agreement will be construed as if drafted jointly by
the Parties and no presumption or burden of proof will arise
favoring or disfavoring any Party because of the authorship of any
provision of this Agreement. When a reference is made in this
Agreement to a Section, such reference will be to a Section of this
Agreement unless otherwise indicated. The headings contained in
this Agreement are for reference purposes only and will not affect
in any way the meaning or interpretation of this Agreement.
Whenever the words “include,” “includes” or
“including” are used in this Agreement, they will be
deemed to be followed by the words “without
limitation.” “$” refers to U.S. dollars. Words
used in the singular form in this Agreement will be deemed to
include the plural, and vice versa, as the context may require. If
the date upon or by which any Party is required to perform any
covenant or obligation hereunder falls on a day that is not a
Business Day, then such date of performance will be automatically
extended to the next Business Day thereafter. The words
“hereof,” “herein” and
“hereunder” and words of similar import when used in
this Agreement will refer to this Agreement as a whole and not to
any particular provision of this Agreement. Unless the context
otherwise requires, (a) ”or” is disjunctive but not
necessarily exclusive, (b) the use in this Agreement of a pronoun
in reference to a Party includes the masculine, feminine or neuter,
as the context may require, and (c) unless otherwise defined
herein, terms used herein which are defined in GAAP have the
meanings ascribed to them therein. Any agreement, instrument or law
defined or referred to herein means such agreement, instrument or
law as from time to time amended, modified or supplemented (and, in
the case of any law, the rules and regulations promulgated
thereunder), including (in the case of agreements or instruments)
by waiver or consent and (in the case of laws) by succession of
comparable successor laws. The term “Business Day”
means any day that is not a Saturday, a Sunday or other day that is
a statutory holiday and on which banks are open in New York to the
general public for business.

 

 

57

 

 

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

 

Section
8.                      Specific
Enforcement. Each of the Parties acknowledges and agrees
that monetary damages would not adequately compensate an injured
Party for the breach of this Agreement by any Party, that this
Agreement shall be specifically enforceable and that any breach or
threatened breach of this Agreement shall be the proper subject of
a temporary or permanent injunction or restraining order without a
requirement of posting bond. Further, each Party hereto waives any
claim or defense that there is an adequate remedy at law for such
breach or threatened breach.

 

Section
9.                      WAIVER
OF JURY TRIAL. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY
IRREVOCABLY WAIVES, AND AGREES TO CAUSE ITS AFFILIATES TO WAIVE, TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF
ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (a) ARISING UNDER THIS
AGREEMENT OR (b) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT
OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT,
EQUITY OR OTHERWISE. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY
IRREVOCABLY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY
AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF
THEIR RIGHT TO TRIAL BY JURY.

 

Section
10.                       
Successors and Assigns;
Assignment. Except as otherwise expressly provided herein,
the provisions hereof will inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors and administrators
of the Parties hereto; provided, however, that any of the rights
and obligations of Red Mountain hereunder may be transferred or
assigned in whole or in part by it to any Affiliate of Red
Mountain, provided, further, that such rights and obligations will
terminate and cease to be so transferred or assigned upon any
Affiliate to which such rights and obligations are transferred or
assigned no longer being an Affiliate of Red Mountain.

 

Section
11.                        
Amendment and
Waiver. No amendment, waiver or other modification of, or
consent under, any provision of this Agreement will be effective
unless it is approved in writing by each Party. No waiver of any
breach of any agreement or provision herein contained will be
deemed a waiver of any preceding or succeeding breach thereof or of
any other agreement or provision herein contained or be deemed
effective in any instance or for any purpose other than the
specific instance or specific purpose in or for which it was made.
The failure or delay of any Party to assert any of its rights or
remedies under this Agreement will not constitute a waiver of such
rights nor will it preclude any other or further exercise of the
same or of any other right or remedy.

 

Section
12.                         
No Third-Party
Beneficiaries. This Agreement is for the sole benefit of the
Parties and their permitted assigns and nothing herein expressed or
implied will give or be construed to give any person, other than
the Parties and such permitted assigns, any legal or equitable
rights hereunder.

 

Section
13.                         
Entire Agreement.
This Agreement constitutes the entire agreement among the Parties
with respect to the subject matter hereof and supersede all prior
agreements, understandings, representations and undertakings, both
written and oral, among the Parties with respect to the subject
matter hereof and thereof.

 

Section
14                          
Severability. If
any term or other provision of this Agreement is invalid, illegal
or incapable of being enforced by any law or public policy in any
jurisdiction, all other terms and provisions of this Agreement will
nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions and the intention
of the Parties with respect to the transactions contemplated hereby
is not affected in any manner materially adverse to any of the
Parties. Upon such determination that any term or other provision
is invalid, illegal or incapable of being enforced, the Parties
will negotiate in good faith to modify this Agreement so as to
effect the original intent of the Parties as closely as possible in
an acceptable manner in order that the transactions contemplated
hereby are consummated as originally contemplated to the greatest
extent possible.

 

Section
15.                         
Confidentiality.
Each Nominee shall agree to maintain the confidentiality of all
Confidential Information (as such term is defined in the terms of
the confidentiality agreement attached hereto as Annex A (or such other form of
agreement as is mutually acceptable to the Parties hereto, the
“Confidentially
Agreement”)) and to enter into, comply with, and be
bound by, in all respects, the terms and conditions of the
Confidentiality Agreement.

 

Section
16.                          
Further Assurances.
Each of the Parties hereto will, from time to time and without
further consideration, execute such further instruments and take
such other actions as any other Party hereto will reasonably
request in order to fulfill its obligations under this Agreement to
effectuate the purposes of this Agreement.

 

Section
17.                        
Counterparts. This
Agreement may be executed in counterparts, each of which will be
deemed an original, but all of which will constitute one and the
same agreement. This Agreement may be executed by any Party by
means of a facsimile, email or PDF transmission of an originally
executed counterpart, the delivery of which facsimile, email or PDF
transmission will have the same force and effect, except as
specified in any document executed and delivered pursuant to the
immediately preceding sentence, as the delivery of the originally
executed counterpart.

 

 

[Signature
Pages Follow]

 

 

 

58

 

 

 

IN WITNESS WHEREOF, the Parties have
executed this Agreement as of the date first above
written.

 

 

 

YUMA
ENERGY, INC.

 

 

 

By:
_____________________________

 

Name:
Anthony C. Schnur

 

Title:
Interim Chief Executive Officer

 

 

 

 

RED
MOUNTAIN CAPITAL PARTNERS LLC

 

 

By:
_____________________________

 

Name:

 

Title:

 

 

 

 

 

 

59

 

 

ANNEX A

 

 

 

FORM OF
CONFIDENTIALITY AGREEMENT

 

 

 

,
20

 

 

 

Yuma
Energy, Inc.

 

1177
West Loop South, Suite 1825

 

Houston,
Texas 77027

 

 

 

Dear
Ladies and Gentlemen:

 

 

 

Pursuant to Section
15 of that certain Board Representation Rights Agreement (the
“Board Rights
Agreement”), dated as of [________], between Yuma
Energy, Inc., a Delaware corporation (the “Company”), and Red
Mountain Capital Partners LLC, a Delaware limited liability company
(“Red
Mountain”), Red Mountain has exercised its right to
appoint the undersigned as its representative (the
“Nominee”) to the board of
directors of the Company (the “Board”), although the
individual serving as the Nominee may be changed from time to
pursuant to the terms of the Board Rights Agreement and upon such
other individual signing a confidentiality agreement in
substantially the form hereof. The Nominee acknowledges that at the
meetings of the Board and at other times the Nominee may be
provided with and otherwise have access to non-public information
concerning the Yuma Parties. Capitalized terms used but not
otherwise defined herein, shall have the respective meanings
ascribed therefor in the Board Rights Agreement. In consideration
for and as a condition to the Yuma Parties furnishing access to
such information, the Nominee hereby agrees to the terms and
conditions set forth in this letter agreement (this
“Agreement”):

 

1. As used in this
Agreement, subject to Paragraph 3 below, “Confidential Information”
means any and all non-public financial or other non-public
information concerning the Company and its affiliates that may
hereafter be disclosed to the Nominee by the Yuma Parties, their
affiliates or by any of their directors, officers, employees,
agents, consultants, advisors or other representatives (including
financial advisors, accountants or legal counsel) (the
“Representatives”) of the
Company and its affiliates, including, without limitation, all
notices, minutes, consents, materials, ideas or other information
(to the extent constituting information concerning the Company and
its affiliates that is non-public financial or other non-public
information) provided to the Nominee.

 

2. Except to the
extent permitted by this Paragraph 2 or by Paragraph 3 or 4, the
Nominee shall keep such Confidential Information strictly
confidential; provided, that the Nominee may, upon request from an
officer of any RM Holder, share Confidential Information with such
officer of the RM Holder so long as such individuals agree to
comply with, and be bound by, in all respects, the terms of this
Agreement. For the avoidance of doubt, the recipient of such
Confidential Information from the Nominee may further provide such
Confidential Information to (a) any other officer of a RM Holder
and (b) any legal counsel, consultant, accountant or financial
advisor that has been engaged by such recipient to discuss such
matters or Confidential Information; provided, that any such
recipient in clause (a), or (b) above agrees and acknowledges in a
writing between such person and Red Mountain to be bound by the
terms of this Agreement or is subject to confidentiality
restrictions enforceable by Red Mountain that are no less stringent
than those set forth in this Agreement prior to the date of such
disclosure. The Nominee may not record the proceedings of any
meeting of the Board by means of an electronic recording device.
Notwithstanding anything to the contrary contained in this
Agreement, no provision of this Agreement shall be applicable to
any other officer of the RM Holders except to the extent, if any,
that such officer of the RM Holders has been provided access to
Confidential Information from the Nominee. Furthermore, the Yuma
Parties acknowledge that the Nominee may serve as a director or
officer of the RM Holders and no such officer of the RM Holders
will be deemed to have received Confidential Information solely due
to the dual role of the Nominee.

 

3. The term
“Confidential
Information” does not include information that (a) is
or becomes generally available to the public other than (ii) as a
result of a disclosure by the Nominee in violation of this
Agreement or (ii) in violation of a confidentiality obligation to
the Yuma Parties known to the Nominee, (b) is or becomes available
to the Nominee on a non-confidential basis from a source not known
to have an obligation of confidentiality to the Yuma Parties, (c)
was already known to the Nominee at the time of disclosure, or (d)
is independently developed by the Nominee without reference to any
Confidential Information disclosed to the Nominee.

 

4. In the event that
the Nominee is legally required or compelled to disclose the
Confidential Information, the Nominee shall use reasonable best
efforts, to the extent permitted and practicable, to provide the
Company with prompt prior written notice of such requirement so
that the Company may seek, at the Company’s sole expense and
cost, an appropriate protective order. If in the absence of a
protective order, the Nominee is nonetheless legally required or
compelled to disclose Confidential Information, the Nominee may
disclose only the portion of the Confidential Information or other
information that it is so legally required or compelled to
disclose.

 

 

60

 

5.           All
Confidential Information disclosed by the Yuma Parties or their
Representatives to the Nominee is and will remain the property of
the Yuma Parties, so long as such information remains Confidential
Information.

 

6.           It
is understood and acknowledged that neither the Company nor any
Representative makes any representation or warranty as to the
accuracy or completeness of the Confidential Information or any
component thereof.

 

7.           It
is further understood and agreed that money damages may not be a
sufficient remedy for any breach of this Agreement by the Nominee
and that the Company shall be entitled to seek specific performance
or any other appropriate form of equitable relief as a remedy for
any such breach in addition to the remedies available to the
Company at law.

 

8.           This
Agreement is personal to the Nominee, is not assignable by the
Nominee and may be modified or waived only in writing. This
Agreement is binding upon the parties hereto and their respective
successors and assigns and inures to the benefit of the parties
hereto and their respective successors and assigns.

 

 

61

 

 

 

9.           If
any provision of this Agreement is not enforceable in whole or in
part, the remaining provisions of this Agreement will not be
affected thereby. No failure or delay in exercising any right,
power or privilege hereunder operates as a waiver thereof, nor does
any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power
or privilege hereunder.

 

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

 

11.           EACH
OF THE PARTIES TO THIS AGREEMENT HEREBY WAIVES, AND AGREES TO CAUSE
ITS AFFILIATES TO WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION (a) ARISING UNDER THIS AGREEMENT OR (b) IN ANY WAY CONNECTED
WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO
IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED
HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. EACH OF THE PARTIES
TO THIS AGREEMENT HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN
ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER
OF THEIR RIGHT TO TRIAL BY JURY.

 

12.           This
Agreement and all obligations herein will automatically expire one
(1) year from the date the Nominee ceases to act as the
Nominee.

 

13.           This
Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement, and
all of which, when taken together, will constitute one and the same
agreement. The exchange of copies of this Agreement and of
signature pages by facsimile or electronic transmission constitutes
effective execution and delivery of this Agreement as to the
parties and may be used in lieu of the original Agreement.
Signatures of the parties transmitted by facsimile or electronic
transmission will be deemed to be their original signatures for any
purpose whatsoever.

 

 

 Very
truly yours,

 

 

 

 

 

[NAME OF
NOMINEE]                                                       

 

 

 

62

 

 

Exhibit F

 

FORM OF

REGISTRATION RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS
AGREEMENT, dated as of [_________] (this “Agreement”), is by and
among Yuma Energy, Inc., a Delaware corporation (the
“Company”), and each of
the parties executing a counterpart signature page on or after the
date hereof (the “Holders”).

 

RECITALS

 

WHEREAS, on September 30, 2019, the
Company entered into a Restructuring and Exchange Agreement (the
“Restructuring
Agreement”) by and among the Company, Yuma Exploration
and Production Company, Inc., a Delaware corporation, Pyramid Oil
LLC, a California limited liability company, Davis Petroleum Corp.,
a Delaware corporation, Red Mountain Capital Partners LLC, a
Delaware limited liability company (“Red Mountain”), RMCP PIV
DPC, LP, a Delaware limited partnership and an Affiliate of Red
Mountain (“DPC
PIV”), RMCP PIV DPC II, LP, a Delaware limited
partnership and an Affiliate of Red Mountain (“DPC PIV II” and together
with Red Mountain and DPC PIV, the “Investors”), YE
Investment LLC, a Delaware limited liability company and an
Affiliate of Red Mountain (“YE”);

 

WHEREAS, the Company and certain Holders
entered into that certain Registration Rights Agreement dated as of
October 26, 2016 (the “Davis RRA”) related to
shares of common stock, par value $0.001 per share (the
“Common
Stock”), of the Company and shares of Series D
Preferred Stock of the Company, par value $0.001 per share
(“Preferred
Stock”), which are convertible into shares of Common
Stock under terms and conditions set forth in the Company’s
certificate of designation (the “COD”) with respect to the
Series D Preferred Stock, received by those certain holders as part
of the closing of the Agreement and Plan of Merger and
Reorganization dated February 10, 2016 by and among Davis Petroleum
Acquisition Corp., a Delaware corporation, Yuma Energy, Inc., a
California corporation, the Company and Yuma Merger Subsidiary,
Inc., a Delaware corporation (the “Merger
Agreement”);

 

WHEREAS, as part of the Restructuring
Agreement, the Company amended the COD (the “COD Amendment”) to change
the conversion rate so that each share of Preferred Stock now
converts into a greater number of shares of Common Stock (the
“Additional COD
Shares”);

 

WHEREAS, as part of the Restructuring
Agreement, YE will receive shares of Common Stock upon conversion
of the Convertible Note (as such term is defined in the
Restructuring Agreement);

 

WHEREAS, resales by the Holders of the
Common Stock (including Common Stock issued upon conversion of the
Convertible Note and the Preferred Stock) may be required to be
registered under the Securities Act and applicable state securities
laws, depending upon the status of a Holder or the intended method
of distribution of the Common Stock; and

 

WHEREAS, the Company has agreed to
provide such Holders who execute this Agreement with the
registration rights specified in this Agreement with respect to any
shares of Common Stock held by them as well as shares of Common
Stock to be issued upon conversion of the Convertible Note and the
Preferred Stock held by them, on the terms and subject to the
conditions set forth herein.

 

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

 

 

63

 

 

ARTICLE I

DEFINITIONS

1.1
Definitions. 

 

(a) For
purposes of this Agreement, the following terms shall have the
meanings specified in this Section 1.1; provided, however, that capitalized terms
used but not defined herein shall have the meaning ascribed to such
terms in the Restructuring Agreement.

“Affiliate” means, with
respect to any Person, any Person who, directly or indirectly
through one or more intermediaries, controls, is controlled by or
is under common control with any Person.

 

“Automatic Shelf Registration
Statement” means an “Automatic Shelf
Registration Statement,” as defined in Rule 405 under the
Securities Act.

 

“Beneficial Ownership” and
terms of similar import shall be as defined under and determined
pursuant to Rule 13d-3 promulgated under the Exchange
Act.

 

“Business Day” means any
day other than (a) a Saturday, Sunday or a federal holiday, or (b)
a day on which commercial banks in New York City, New York are
authorized or required to be closed.

 

“Closing” means the
Closing as defined in the Restructuring Agreement.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended, or any similar federal
statute, and the rules and regulations promulgated by the SEC
thereunder.

 

“Excluded Registration”
means a registration under the Securities Act of (i) securities
pursuant to one or more Demand Requests pursuant to Section 2.1 hereof, (ii)
securities registered on Form S-8 or any similar successor form and
(iii) securities registered to effect the acquisition of or
combination with another Person.

 

“Holder” means (i) a
securityholder listed on the signature page hereof and (ii) any
direct or indirect transferee of any such securityholder, including
any securityholder that receives shares of Common Stock upon a
distribution or liquidation of a Holder, who has been assigned the
rights of the transferor Holder under this Agreement in accordance
with Section
2.8.

 

“Participating Majority”
shall mean, with respect to any particular Underwritten Shelf
Takedown, the Holder(s) of a majority of the Registrable Securities
requested to be included in such Underwritten Shelf Takedown;
provided,
however, that in
the event that, with respect to any particular Underwritten Shelf
Takedown, if any of DCP PIV, DCP PIV II OR YE proposes to sell in
such offering 30% or more of the Registrable Securities acquired by
it at the Closing, then it shall constitute the
“Participating Majority” for purposes of such
Underwritten Shelf Takedown; provided, further, however, that if each of DCP
PIV, DCP PIV II or YE or any two of them propose to sell in such
offering 30% or more of the Registrable Securities held by it, then
those Holders shall jointly constitute the Participating Majority,
provided, that if they shall fail to agree on any matter in such
capacity, the one of them that proposes to sell the largest number
of Registrable Securities in such offering shall be the
“Participating Majority” for purposes of such
Underwritten Shelf Takedown.

 

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

 

“Prospectus” means the
prospectus (including any preliminary, final or summary prospectus)
included in any Registration Statement, all amendments and
supplements to such prospectus and all other material incorporated
by reference in such prospectus.

 

64

 

 

“register,”
“registered” and
“registration” refer to a
registration effected by preparing and filing a Registration
Statement in compliance with the Securities Act, and the
declaration or ordering of the effectiveness of such Registration
Statement.

 

“Registrable Securities”
means, at any time, the Common Stock owned by the Holders, whether
owned on the date hereof or acquired hereafter, including any
shares of Common Stock which may be issued or distributed in
respect of such shares of Common Stock or shares of Preferred Stock
by way of conversion, concession, stock dividend or stock split or
other distribution, recapitalization or reclassification or similar
transaction; provided, however, that Registrable
Securities shall not include any shares (i) the sale of which has
been registered pursuant to the Securities Act and which shares
have been sold pursuant to such registration (other than, for the
avoidance of doubt, the sale or issuance of shares to the Holders
as a result of the consummation of the transactions contemplated by
the Restructuring Agreement) or (ii) which have been sold pursuant
to Rule 144.

 

“Registration Expenses”
means all expenses (other than underwriting discounts and
commissions) arising from or incident to the Company’s
performance of or compliance with this Agreement, including,
without limitation: (i) SEC, stock exchange, FINRA and other
registration and filing fees; (ii) all fees and expenses incurred
in connection with complying with any securities or blue sky laws
(including, without limitation, fees, charges and disbursements of
counsel in connection with blue sky qualifications of the
Registrable Securities); (iii) all printing, messenger and delivery
expenses; (iv) the fees, charges and disbursements of counsel to
the Company and of its independent public accountants and any other
accounting and legal fees, charges and expenses incurred by the
Company (including, without limitation, any expenses arising from
any special audits or “comfort” letters required in
connection with or incident to any registration); (v) the fees and
expenses incurred in connection with the listing of the Registrable
Securities on the NYSE American, NYSE or NASDAQ (or any other
national securities exchange) or the quotation of Registrable
Securities on any inter-dealer quotation system; (vi) the fees and
expenses incurred by the Company in connection with any road show
for underwritten offerings; and (vii) reasonable fees, charges and
disbursements of counsel to the Holders, including, for the
avoidance of doubt, any expenses of counsel to the Holders in
connection with the filing or amendment of any Registration
Statement or Prospectus hereunder; provided that Registration
Expenses shall only include the fees and expenses of one counsel to
the Holders (and one local counsel per jurisdiction) with respect
to any offering.

“Registration Statement”
means any registration statement of the Company (including a
Shelf-Registration Statement) that covers the resale of any
Registrable Securities pursuant to the provisions of this Agreement
filed with, or to be filed with, the SEC under the rules and
regulations promulgated under the Securities Act, including the
related Prospectus, amendments and supplements to such registration
statement, including pre- and post-effective amendments, and all
exhibits, financial information and all other material incorporated
by reference in such registration statement.

 

“Required Holders” means
the consent or approval of Holders who then own beneficially more
than 66-2/3% of the aggregate number of shares of Common Stock
subject to this Agreement together with each of DCP PIV, DCP PIV II
and YE; provided
that at any time that any of DCP PIV, DCP PIV II or YE ceases to
hold at least 30% of the Registrable Securities acquired as a
result of the transactions contemplated in the Restructuring
Agreement (adjusted appropriately for stock splits, stock
dividends, combinations, recapitalizations, consolidations,
mergers, reclassifications and the like with respect to the
Registrable Securities), the consent or approval of such Holder
shall not be required.

 

“Rule 144” means Rule 144
promulgated by the SEC pursuant to the Securities Act, as such rule
may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC as a replacement thereto having
substantially the same effect as such rule.

 

“SEC” means the Securities
and Exchange Commission or any other Federal agency at the time
administering the Securities Act.

 

“Securities Act” means the
Securities Act of 1933, as amended, or any similar Federal statute,
and the rules and regulations promulgated by the SEC
thereunder.

 

65

 

 

“Selling Expenses” means
the underwriting fees, discounts, selling commissions and stock
transfer taxes applicable to all Registrable Securities registered
by the Holders and legal expenses not included within the
definition of Registration Expenses.

 

“Shelf Registration
Statement” means a “shelf” registration
statement of the Company that covers all the Registrable Securities
(and may cover other securities of the Company) on Form S-3 and
under Rule 415 under the Securities Act or, if the Company is not
then eligible to file on Form S-3, on Form S-1 under the Securities
Act, or any successor rule that may be adopted by the SEC,
including without limitation any such registration statement filed
pursuant to Section
2.1, and all amendments and supplements to such
“shelf” registration statement, including
post-effective amendments, in each case, including the Prospectus
contained therein, all exhibits thereto and any document
incorporated by reference therein.

 

(b) For
purposes of this Agreement, the following terms have the meanings
set forth in the sections indicated:

 

	

Term

	

Section

	

Additional COD
Shares

	

Recitals

	

Advice

	

2.5

	

Agreement

	

Introductory
Paragraph

	

COD

	

Recitals

	

COD
Amendment

	

Recitals

	

Common
Stock

	

Recitals

	

Company

	

Introductory
Paragraph

	

Company
Notice

	

2.1(c)

	

Company
Underwritten Offering

	

2.3

	

Davis
RRA

	

Recitals

	

DCP
PIV

	

Recitals

	

DCP PIV
II

	

Recitals

	

Demand
Request

	

2.1(c)

	

First
Reserve

	

2.1(d)

	

Investors

	

Recitals

	

Lock-Up
Period

	

2.3

	

Material Adverse
Effect

	

2.2(b)

	

Merger
Agreement

	

Recitals

	

Records

	

2.4(l)

	

Red
Mountain

	

Recitals

	

Restructuring
Agreement

	

Recitals

	

Requesting
Holder

	

2.1(c)

	

Seller
Affiliates

	

2.7

	

Suspension
Period

	

2.1(f)

	

Suspension
Notice

	

2.5

	

Underwritten Shelf
Takedown

	

2.1(b)

	

YE

	

Recitals

 

1.2
Other
Definitional and Interpretive Matters. Unless otherwise
expressly provided or the context otherwise requires, for purposes
of this Agreement the following rules of interpretation
apply.

 

(a)
When calculating the period of time before which, within which or
following which any act is to be done or step taken pursuant to
this Agreement, the date that is the reference date in calculating
such period is excluded. If the last day of such period is a
non-Business Day, the period in question ends on the next
succeeding Business Day.

 

(b) Any
reference in this Agreement to $ means U.S. dollars.

 

(c) Any
reference in this Agreement to gender includes all genders, and
words imparting the singular number also include the plural and
vice versa.

 

66

 

 

(d) The
division of this Agreement into Articles, Sections and other
subdivisions and the insertion of headings are for convenience of
reference only and do not affect, and should not be utilized in,
the construction or interpretation of this Agreement.

 

(e) All
references in this Agreement to any “Article” or
“Section” are to the corresponding Article or Section
of this Agreement.

 

(f) The
words “herein,”
“hereinafter,”
“hereof,” and
“hereunder” refer to this
Agreement as a whole and not merely to a subdivision in which such
words appear unless the context otherwise requires.

 

(g) The
word “including” or any
variation thereof means “including, but not limited to,” and
does not limit any general statement that it follows to the
specific or similar items or matters immediately following
it.

ARTICLE II

REGISTRATION RIGHTS

2.1
Shelf
Registration.

 

(a) On
or prior to the 180th day following the Closing, the Company will
prepare and file one Shelf Registration Statement (which Shelf
Registration Statement shall be an Automatic Shelf Registration
Statement if the Company is then eligible to file an Automatic
Shelf Registration Statement) registering for resale the
Registrable Securities under the Securities Act. The plan of
distribution indicated in the Shelf Registration Statement will
include all such methods of sale as any Holder may reasonably
request in writing prior to the filing of the Shelf Registration
Statement and that can be included in the Shelf Registration
Statement under the rules and regulations of the SEC. The Company
shall use its commercially reasonable efforts to cause the Shelf
Registration Statement to be declared effective by the SEC as
promptly as practicable following such filing. Until such time as
all Registrable Securities cease to be Registrable Securities or
the Company is no longer eligible to maintain a Shelf Registration
Statement, the Company shall use its commercially reasonable
efforts to keep current and effective such Shelf Registration
Statement and file such supplements or amendments to such Shelf
Registration Statement (or file a new Shelf Registration Statement
(which Shelf Registration Statement shall be an Automatic Shelf
Registration Statement if the Company is then eligible to file an
Automatic Shelf Registration Statement) when such preceding Shelf
Registration Statement expires pursuant to the rules of the SEC) as
may be necessary or appropriate in order to keep such Shelf
Registration Statement continuously effective and useable for the
resale of all Registrable Securities under the Securities Act. Any
Shelf Registration Statement when declared effective (including the
documents incorporated therein by reference) will comply in all
material respects as to form with all applicable requirements of
the Securities Act and the Exchange Act and will not contain an
untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the
statements therein not misleading.

 

(b) Any
one or more Holders of Registrable Securities may request to sell
all or any portion of their Registrable Securities in an
underwritten offering that is registered pursuant to the Shelf
Registration Statement (each, an “Underwritten Shelf
Takedown”); provided, however, that in the case of
each such Underwritten Shelf Takedown, such Holder or Holders will
be entitled to make such demand only if the proceeds from the sale
of Registrable Securities in the offering (before the deduction of
underwriting discounts) is reasonably expected to exceed, in the
aggregate, $5 million (or such lower amount as may be approved by
the board of directors of the Company); provided, further that the Company shall
not be obligated to effect more than three Underwritten Shelf
Takedowns during any period of twelve consecutive months and shall
not be obligated to effect an Underwritten Shelf Takedown within
ninety days after the pricing of a previous Underwritten Shelf
Takedown. The Company shall not be deemed to have effected any
Underwritten Shelf Takedown if the Holders participating in such
offering are not able to sell at least 50% of the Registrable
Securities desired to be sold in such Underwritten Shelf
Takedown.

 

(c) All
requests (a “Demand
Request”) for Underwritten Shelf Takedowns shall be
made by the Holder or Holders making such request (the
“Requesting
Holder”) by giving written notice to the Company. Each
Demand Request shall specify the approximate number of Registrable
Securities to be sold in the Underwritten Shelf Takedown and the
expected price range (net of underwriting discounts and
commissions) of such Underwritten Shelf Takedown. Within three
Business Days after receipt of any Demand Request, the Company
shall send written notice of such requested Underwritten Shelf
Takedown to all other Holders of Registrable Securities (the
“Company
Notice”) and shall include in such Underwritten Shelf
Takedown all Registrable Securities with respect to which the
Company has received written requests for inclusion therein from
such other Holders within five Business Days after sending the
Company Notice.

 

67

 

 

 

(d) The
Company shall select one or more nationally prominent firms of
investment bankers reasonably acceptable to the Participating
Majority to act as the lead managing underwriter or underwriters in
connection with such Underwritten Shelf Takedown. All Holders
proposing to distribute their securities through such underwriting
shall enter into an underwriting agreement with such underwriter or
underwriters in accordance with Section 2.1(g). The Company
shall not, without the written consent of the Participating
Majority, include in such Underwritten Shelf Takedown any
securities other than those beneficially owned by the participating
Holders.

 

(e) If
the managing underwriters for such Underwritten Shelf Takedown
advise the Company and the participating Holders in writing that,
in their opinion, marketing factors require a limitation of the
amount of securities to be underwritten (including Registrable
Securities) because the amount of securities to be underwritten is
likely to have an adverse effect on the price, timing or the
distribution of the securities to be offered, then the Company
shall so advise all Holders of Registrable Securities which would
otherwise be underwritten pursuant hereto, and the amount of
Registrable Securities that may be included in the underwriting
shall be allocated among participating Holders, (i) first among the participating
Holders as nearly as possible on a pro rata basis based on the
total amount of Registrable Securities held by such Holders
requested to be included in such underwriting and (ii) second to the extent all
Registrable Securities requested to be included in such
underwriting by the participating Holders have been included, to
any securities to be included with the written consent of the
Participating Majority pursuant to the final sentence of the above
clause (d) allocated on such basis as the Company shall determine.
The Company shall prepare preliminary and final prospectus
supplements for use in connection with the Underwritten Shelf
Takedown, containing such additional information as may be
reasonably requested by the underwriter(s).

 

 (f) Upon
written notice to the Holders of Registrable Securities, the
Company shall be entitled to suspend, for a reasonable period of
time (each, a “Suspension Period”), the
use of any Registration Statement or Prospectus and shall not be
required to amend or supplement the Registration Statement, any
related Prospectus or any document incorporated therein by
reference if the board of directors, chief executive officer or
chief financial officer of the Company determines in its or his or
her reasonable good faith judgment that the Registration Statement
or any Prospectus may contain an untrue statement of a material
fact or may omit any fact necessary to make the statements in the
Registration Statement or Prospectus not misleading; provided, that the Company
shall use its commercially reasonable efforts to amend the
Registration Statement or Prospectus to correct such untrue
statement or omission as promptly as reasonably practicable, unless
(but only for so long as) the board of directors of the Company
determines in good faith that such amendment would reasonably be
expected to have a materially detrimental effect on the Company.
The Holders acknowledge and agree that written notice of any
Suspension Period may constitute material non-public information
regarding the Company and shall keep the existence and contents of
any such written notice confidential.

 

(g) If
requested by the underwriters for an Underwritten Shelf Takedown,
the Company shall enter into an underwriting agreement with such
underwriters for such offering, such agreement to be form and
substance (including with respect to representations and warranties
by the Company) as is customarily given by the Company to
underwriters in an underwritten public offering, and to contain
indemnities to the effect and to the extent provided in
Section 2.7. The
Holders of Registrable Securities participating in the Underwritten
Shelf Takedown shall be parties to such underwriting agreement;
provided,
however, that no
such Holder shall be required to (i) make any representations or
warranties in connection with any such registration other than
representations and warranties as to (A) such Holder’s
ownership of his or its Registrable Securities to be sold or
transferred free and clear of all liens, claims and encumbrances,
(B) such Holder’s power and authority to effect such transfer
and (C) such customary matters pertaining to compliance with
securities laws as may be reasonably requested or (ii) undertake
any indemnification obligations to the Company or the underwriters
with respect thereto except as otherwise provided in Section 2.7. No Holder may
participate in the Underwritten Shelf Takedown unless such Holder
agrees to sell its Registrable Securities on the basis provided in
such underwriting agreement and completes and executes all
questionnaires, powers of attorney, indemnities (subject to clause
(ii) in the above proviso) and other documents reasonably required
under the terms of such underwriting agreement. Each participating
Holder may, at its option, require that any or all of the
representations and warranties by, and the other agreements on the
part of, the Company to and for the benefit of such underwriters
also be made to and for such participating Holder’s benefit
and that any or all of the conditions precedent to the obligations
of such underwriters under such underwriting agreement also be
conditions precedent to its obligations.

 

 

68

 

 

2.2
Piggyback
Registrations. 

 

(a)
Each time the Company proposes to register any of its equity
securities (other than pursuant to an Excluded Registration) under
the Securities Act for sale to the public (whether for the account
of the Company or the account of any securityholder of the Company)
and the form of registration statement to be used permits the
registration of Registrable Securities, the Company shall give
prompt written notice to each Holder of Registrable Securities
(which notice shall be given not less than ten (10) Business Days
prior to the anticipated filing date), which notice shall offer
each such Holder the opportunity to include any or all of its or
his Registrable Securities in such registration statement,
subject to the limitations contained in Section 2.2(b) hereof. Each
Holder who desires to have its or his Registrable Securities
included in such registration statement shall so advise the Company
in writing (stating the number of shares desired to be registered)
within five (5) Business Days after the date of such notice from
the Company. Any Holder shall have the right to withdraw such
Holder’s request for inclusion of such Holder’s
Registrable Securities in any registration statement pursuant to
this Section 2.2(a)
by giving written notice to the Company of such withdrawal. Subject
to Section 2.2(b)
below, the Company shall include in such registration statement all
such Registrable Securities so requested to be included therein;
provided,
however, that the
Company may at any time withdraw or cease proceeding with any such
registration if it shall at the same time withdraw or cease
proceeding with the registration of all other equity securities
originally proposed to be registered. For the avoidance of doubt,
any registration or offering pursuant to this Section 2.2 shall not be
considered an Underwritten Shelf Takedown for purposes of
Section 2.1 of this
Agreement.

 

(b)
With respect to any registration pursuant to Section 2.2(a), if the managing
underwriter advises the Company that the inclusion of Registrable
Securities requested to be included in the Registration Statement
will materially and adversely affect the price or success of the
offering (a “Material Adverse
Effect”), the Company will be obligated to include in
the Registration Statement (after all such shares for its own
account), (i) first
among the requesting Holders as nearly as possible on a pro rata
basis based on the total amount of Registrable Securities held by
such Holders requested to be included in such Registration
Statement and (ii) second to the extent all
Registrable Securities requested to be included in such
Registration Statement by the requesting Holders have been
included, to any securities requested to be included in such
Registration Statement by all Persons other than the Holders who
have requested (pursuant to other contractual registration rights)
that their shares be included in such Registration Statement,
allocated on such basis as the Company shall determine, but in no
event more than the maximum number of Registrable Securities that
the managing underwriter advises may be sold in the offering
covered by the Registration Statement without a Material Adverse
Effect. If, as a result of the provisions of this Section 2.2(b), any Holder
shall not be entitled to include all Registrable Securities in a
registration that such Holder has requested to be so included, such
Holder may withdraw such Holder’s request to include
Registrable Securities in such Registration Statement. No Person
may participate in any Registration Statement pursuant to
Section 2.2(a)
unless such Person (i) agrees to sell such person’s
Registrable Securities on the basis provided in any underwriting
arrangements approved by the Company and (ii) completes and
executes all questionnaires, powers of attorney, customary
indemnities (subject to the immediately following proviso),
underwriting agreements and other documents, each in customary
form, reasonably required under the terms of such underwriting
arrangements; provided, however, that no such Person
shall be required to (A) make any representations or warranties in
connection with any such registration other than representations
and warranties as to (1) such Person’s ownership of his or
its Registrable Securities to be sold or transferred free and clear
of all liens, claims and encumbrances, (2) such Person’s
power and authority to effect such transfer and (3) such matters
pertaining to compliance with securities laws as may be reasonably
requested or (B) undertake any indemnification obligations to the
Company or the underwriters with respect thereto except as
otherwise provided in Section 2.7.

 

(c) The
Company and the Holders hereby agree that the rights of holders
under the Davis RRA and their permitted assigns to register shares
of Common Stock under the Davis RRA shall rank pari passu with the rights of the
Holders to register shares of Common Stock under this
Agreement.

 

69

 

 

 

2.3
Holdback
Agreement. In
connection with any Underwritten Shelf Takedown or other registered
underwritten offering of equity securities by the Company (a
“Company
Underwritten Offering”) commencing after the date of
execution of the Restructuring Agreement (other than any
registration on Form S-8, S-4 or any successor forms thereto), each
Holder agrees, with respect to the Registrable Securities owned by
such Holder, to be bound by any and all restrictions on the sale,
disposition, distribution, hedging or other transfer of any
interest in Registrable Securities (except with respect to such
Registrable Securities as are proposed to be offered pursuant to
the Underwritten Shelf Takedown or other registered underwritten
offering), or any securities convertible into or exchangeable or
exercisable for such securities, as are imposed on the Company,
without prior written consent from the managing underwriter of such
Company Underwritten Offering, for the period commencing on and
ending 90 days following the date of pricing of such Company
Underwritten Offering (subject to extension in connection with any
earnings release or other release of material information pursuant
to FINRA Rule 2711(f) to the extent applicable) (the
“Lock-Up
Period”). If requested by the managing underwriter,
each Holder agrees to execute a lock-up agreement in favor of the
Company’s underwriters to such effect that the
Company’s underwriters in any relevant Company Underwritten
Offering shall be third party beneficiaries of this Section 2.3. The provisions of
this Section 2.3
will no longer apply to a Holder once such Holder ceases to hold at
least 1% of the Registrable Securities acquired as a result of the
transactions contemplated in the Restructuring Agreement (adjusted
appropriately for stock splits, stock dividends, combinations,
recapitalizations, consolidations, mergers, reclassifications and
the like with respect to the Registrable Securities).
Notwithstanding anything to the contrary set forth in this
Section 2.3, (i)
each Holder may sell or transfer any Registrable Securities to any
Affiliate of such Holder, so long as such Affiliate agrees to be
and remains bound hereby, (ii) each Holder may enter into a bona
fide pledge of any Registrable Securities (and any foreclosure on
any such pledge shall also be permitted), and (iii) any hedging
transaction with respect to an index or basket of securities where
the equity securities of the Company constitute a de minimis amount
shall not be prohibited pursuant to this Section 2.3.

2.4
Registration
Procedures. In connection with the registration and sale of
Registrable Securities pursuant to this Agreement, the Company will
use its commercially reasonable efforts to effect the registration
and the sale of such Registrable Securities in accordance with the
intended method of disposition thereof, and pursuant thereto the
Company will:

 

(a) if
the Registration Statement is not automatically effective upon
filing, use commercially reasonable efforts to cause such
Registration Statement to become effective as promptly as
reasonably practicable;

 

(b)
promptly notify each selling Holder, promptly after the Company
receives notice thereof, of the time when such Registration
Statement has been declared effective or a supplement to any
prospectus forming a part of such Registration Statement has been
filed;

 

(c)
after the Registration Statement becomes effective, promptly notify
each selling Holder of any request by the SEC that the Company
amend or supplement such Registration Statement or
Prospectus;

 

(d)
prepare and file with the SEC such amendments and supplements to
the Registration Statement and the Prospectus used in connection
therewith as may be reasonably necessary to keep the Registration
Statement effective and to comply with the provisions of the
Securities Act with respect to the disposition of all Registrable
Stock covered by the Registration Statement for the period required
to effect the distribution of the Registrable Securities as set
forth in Section 2
hereof;

 

(e)
furnish to the selling Holders such numbers of copies of such
Registration Statement, each amendment and supplement thereto, each
Prospectus (including each preliminary Prospectus and Prospectus
supplement) and such other documents as the Holder and any
underwriter(s) may reasonably request in order to facilitate the
disposition of the Registrable Securities;

 

(f) use
its commercially reasonable efforts to register and qualify the
Registrable Securities under such other securities or blue-sky laws
of such jurisdictions as shall be reasonably requested by the
Holders and any underwriter(s) and do any and all other acts and
things that may be reasonably necessary or advisable to enable the
Holders and any underwriter(s) to consummate the disposition of the
Registrable Securities in such jurisdictions; provided, however, that the Company shall
not be required in connection therewith or as a condition thereto
to qualify to do business in or to file a general consent to
service of process in any jurisdiction, unless the Company is
already subject to service in such jurisdiction and except as may
be required by the Securities Act, or subject itself to taxation in
any such jurisdiction, unless the Company is already subject to
taxation in such jurisdiction;

 

70

 

 

(g) use
its commercially reasonable efforts to cause all such Registrable
Securities to be listed on a national securities exchange or
trading system and each securities exchange and trading system (if
any) on which similar equity securities issued by the Company are
then listed;

 

(h)
provide a transfer agent and registrar for the Registrable
Securities and provide a CUSIP number for all such Registrable
Securities, in each case not later than the effective date of the
Registration Statement;

 

(i) use
its commercially reasonable efforts to furnish, on the date that
shares of Registrable Securities are delivered to the underwriters
for sale, if such securities are being sold through underwriters,
(i) an opinion, dated as of such date, of the counsel representing
the Company for the purposes of such registration, in form and
substance as is customarily given to underwriters by the Company in
an underwritten public offering, addressed to the underwriters,
(ii) a letter dated as of such date, from the independent public
accountants of the Company, in form and substance as is customarily
given by independent public accountants to underwriters in an
underwritten public offering, addressed to the underwriters and
(iii) an engineers’ reserve report letter as of such date,
from the independent petroleum engineers of the Company, in form
and substance as is customarily given by independent petroleum
engineers to underwriters in an underwritten public offering,
addressed to the underwriters;

 

(j) if
requested by the Holders, cooperate with the Holders and the
managing underwriter (if any) to facilitate the timely preparation
and delivery of certificates (which shall not bear any restrictive
legends unless required under applicable law) representing
securities sold under the Registration Statement, and enable such
securities to be in such denominations and registered in such names
as such Holders or the managing underwriter (if any) may request
and keep available and make available to the Company’s
transfer agent prior to the effectiveness of such Registration
Statement a supply of such certificates;

 

(k) in
the event of any underwritten public offering, enter into and
perform its obligations under an underwriting agreement, in form
and substance as is customarily given by the Company to
underwriters in an underwritten public offering, with the
underwriter(s) of such offering;

 

(l)
upon execution of confidentiality agreements in form and substance
reasonably satisfactory to the Company, promptly make available for
inspection by the selling Holders, any underwriter(s) participating
in any disposition pursuant to such Registration Statement, and any
attorney or accountant or other agent retained by any such
underwriter or selected by the selling Holders, all financial and
other records, pertinent corporate documents, and properties of the
Company (collectively, “Records”), and use
commercially reasonable efforts to cause the Company’s
officers, directors, employees, and independent accountants to
supply all information reasonably requested by any such seller,
underwriter, attorney, accountant, or agent, in each case, as
necessary or advisable to verify the accuracy of the information in
such Registration Statement and to conduct appropriate due
diligence in connection therewith; provided, Records that the
Company determines, in good faith, to be confidential and that it
notifies the selling Holders are confidential shall not be
disclosed by the selling Holders unless the release of such Records
is ordered pursuant to a subpoena or other order from a court of
competent jurisdiction or is otherwise required by applicable law.
Each Holder agrees that information obtained by it as a result of
such inspections shall be deemed confidential and shall not be used
by it or its affiliates (other than with respect to such
Holders’ due diligence) unless and until such information is
made generally available to the public, and further agrees that,
upon learning that disclosure of such Records is sought in a court
of competent jurisdiction, to the extent permitted and to the
extent practicable it shall give notice to the Company and allow
the Company to undertake appropriate action to prevent disclosure
of the Records deemed confidential;

 

(m)
promptly notify the selling Holders and any underwriter(s) of the
notification to the Company by the SEC of its initiation of any
proceeding with respect to the issuance by the SEC of any stop
order suspending the effectiveness of the Registration Statement,
and in the event of the issuance of any stop order suspending the
effectiveness of such Registration Statement, or of any order
suspending or preventing the use of any related Prospectus or
suspending the qualification of any Registrable Securities included
in such Registration Statement for sale in any jurisdiction, use
its commercially reasonable efforts to obtain promptly the
withdrawal of such order;

 

(n)
promptly notify the selling Holders and any underwriter(s) at any
time when a Prospectus relating thereto is required to be delivered
under the Securities Act of the happening of any event as a result
of which the Prospectus included in the Registration Statement, as
then in effect, includes an untrue statement of a material fact or
omits to state any material fact required to be stated therein or
necessary to make the statements therein not misleading in light of
the circumstances under which they were made, and at the request of
any Holder promptly prepare and furnish to such Holder a reasonable
number of copies of a supplement to or an amendment of such
Prospectus, or a revised Prospectus, as may be necessary so that,
as thereafter delivered to the purchasers of such securities, such
Prospectus shall not include an untrue statement of a material fact
or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of
the circumstances under which they were made (following receipt of
any supplement or amendment to any Prospectus, the selling Holders
shall deliver such amended, supplemental or revised Prospectus in
connection with any offers or sales of Registrable Stock, and shall
not deliver or use any Prospectus not so supplemented, amended or
revised);

 

71

 

 

(o)
promptly notify the selling Holders and any underwriter(s) of the
receipt by the Company of any notification with respect to the
suspension of the qualification of any Registrable Securities for
sale under the applicable securities or blue sky laws of any
jurisdiction;

 

(p)
make available to each Holder (i) promptly after the same is
prepared and publicly distributed, filed with the SEC, or received
by the Company, one copy of each Registration Statement and any
amendment thereto, each preliminary Prospectus and Prospectus and
each amendment or supplement thereto, each letter written by or on
behalf of the Company to the SEC or the staff of the SEC (or other
governmental agency or self-regulatory body or other body having
jurisdiction, including any domestic or foreign securities
exchange), and each item of correspondence from the SEC or the
staff of the SEC (or other governmental agency or self-regulatory
body or other body having jurisdiction, including any domestic or
foreign securities exchange), in each case relating to such
Registration Statement or to any of the documents incorporated by
reference therein, and (ii) such number of copies of each
Prospectus, including a preliminary Prospectus, and all amendments
and supplements thereto and such other documents as any Holder or
any underwriter may reasonably request in order to facilitate the
disposition of the Registrable Securities. The Company will
promptly notify the Holders of the effectiveness of each
Registration Statement or any post-effective amendment or the
filing of any supplement or amendment to such Registration
Statement or of any Prospectus supplement. The Company will
promptly respond to any and all comments received from the SEC,
with a view towards causing each Registration Statement or any
amendment thereto to be declared effective by the SEC as soon as
practicable and shall file an acceleration request, if necessary,
as soon as practicable following the resolution or clearance of all
SEC comments or, if applicable, following notification by the SEC
that any such Registration Statement or any amendment thereto will
not be subject to review;

(q)
take no direct or indirect action prohibited by Regulation M under
the Exchange Act; provided, that, to the extent
that any prohibition is applicable to the Company, the Company will
take all reasonable action to make any such prohibition
inapplicable;

 

(r)
provide a transfer agent and registrar for all such Registrable
Securities not later than the effective date of such Registration
Statement; and

 

(s)
take all such other actions as are reasonably necessary in order to
facilitate the disposition of such Registrable
Securities.

2.5
Suspension of
Dispositions. Each Holder agrees by acquisition of any
Registrable Securities that, upon receipt of any notice (a
“Suspension
Notice”) from the Company of the happening of any
event of the kind described in Section 2.4(n) such Holder will
forthwith discontinue disposition of Registrable Securities
pursuant to the Registration Statement until such Holder’s
receipt of the copies of the supplemented or amended Prospectus, or
until it is advised in writing (the “Advice”) by the Company
that the use of the Prospectus may be resumed, and has received
copies of any additional or supplemental filings which are
incorporated by reference in the Prospectus. The Company shall
extend the period of time during which the Company is required to
maintain the Shelf Registration Statement effective pursuant to
this Agreement by the number of days during the period from and
including the date of the giving of such Suspension Notice to and
including the date such Holder either receives the supplemented or
amended Prospectus or receives the Advice. If so directed by the
Company, such Holder will deliver to the Company all copies, other
than permanent file copies then in such Holder’s possession,
of the Prospectus covering such Registrable Securities current at
the time of receipt of such notice. The Company shall use its
commercially reasonable efforts and take such actions as are
reasonably necessary to render the Advice as promptly as
practicable. The Holders acknowledge and agree that receipt of a
Suspension Notice may constitute material non-public information
regarding the Company and shall keep the existence and contents of
any such Suspension Notice confidential.

 

72

 

 

2.6
Registration
Expenses. All Registration Expenses shall be borne by the
Company. In addition, for the avoidance of doubt, the Company shall
pay its internal expenses in connection with the performance of or
compliance with this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing
legal or accounting duties), the expense of any annual audit or
quarterly review, the expense of any liability insurance and the
expenses and fees for listing the securities to be registered on
each securities exchange on which they are to be listed. All
Selling Expenses relating to Registrable Securities registered
shall be borne by the Holders of such Registrable Securities pro
rata on the basis of the number of Registrable Securities
sold.

 

2.7
Indemnification. 

 

(a) The
Company agrees to indemnify and reimburse, to the fullest extent
permitted by law, each Holder that is a seller of Registrable
Securities, and each of its employees, advisors, agents,
representatives, partners, officers, and directors and each Person
who controls such Holder (within the meaning of the Securities Act
or the Exchange Act) and any

agent
or investment advisor thereof (collectively, the
“Seller
Affiliates”) (i) against any and all losses, claims,
damages, liabilities and expenses, joint or several (including,
without limitation, reasonable attorneys’ fees and
disbursements except as limited by Section 2.7(c)) based upon,
arising out of, related to or resulting from any untrue or alleged
untrue statement of a material fact contained in any Registration
Statement or Prospectus or any amendment thereof or supplement
thereto, or any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements
therein not misleading, (ii) against any and all losses,
liabilities, claims, damages and expenses whatsoever, as incurred,
to the extent of the aggregate amount paid in settlement of any
litigation or investigation or proceeding by any governmental
agency or body, commenced or threatened, or of any claim whatsoever
based upon, arising out of, related to or resulting from any such
untrue statement or omission or alleged untrue statement or
omission, and (iii) against any and all costs and expenses
(including reasonable fees and disbursements of counsel) as may be
reasonably incurred in investigating, preparing or defending
against any litigation, investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim
whatsoever based upon, arising out of, related to or resulting from
any such untrue statement or omission or alleged untrue statement
or omission, or such violation of the Securities Act or Exchange
Act, to the extent that any such expense or cost is not paid under
subparagraph (i) or (ii) above; except insofar as any such
statements are made in reliance upon information furnished to the
Company in writing by such seller or any Seller Affiliate expressly
for use therein. The reimbursements required by this Section 2.7(a) will be made by
periodic payments during the course of the investigation or
defense, as and when bills are received or expenses
incurred.

 

(b) In
connection with any Registration Statement in which a Holder that
is a seller of Registrable Securities is participating, each such
Holder will furnish to the Company such information and affidavits
as the Company reasonably requests for use in connection with any
such Registration Statement or Prospectus and, to the fullest
extent permitted by law, each such seller will indemnify the
Company and its directors and officers and each Person who controls
the Company (within the meaning of the Securities Act or the
Exchange Act) against any and all losses, claims, damages,
liabilities and expenses (including, without limitation, reasonable
attorneys’ fees and disbursements except as limited by
Section 2.7(c))
resulting from any untrue statement or alleged untrue statement of
a material fact contained in the Registration Statement, Prospectus
or any amendment thereof or supplement thereto or any omission or
alleged omission of a material fact required to be stated therein
or necessary to make the statements therein not misleading, but
only to the extent that such untrue statement or alleged untrue
statement or omission or alleged omission is contained in any
information or affidavit so furnished by such seller or any of its
Seller Affiliates in writing specifically for inclusion in the
Registration Statement; provided that the obligation to
indemnify will be several, not joint and several, among such
sellers of Registrable Securities, and the liability of each such
seller of Registrable Securities will be in proportion to the
amount of Registrable Securities registered by them, and,
provided,
further, that such
liability will be limited to the amount received by such seller
from the sale of Registrable Securities pursuant to such
Registration Statement; provided, however, that such seller of
Registrable Securities shall not be liable in any such case to the
extent that prior to the filing of any such Registration Statement
or Prospectus, such seller has furnished to the Company information
expressly for use in such Registration Statement or Prospectus or
any amendment thereof or supplement thereto which corrected or made
not misleading information previously furnished to the
Company.

 

73

 

 

(c) Any
Person entitled to indemnification hereunder will (i) give prompt
written notice to the indemnifying party of any claim with respect
to which it seeks indemnification (provided that the failure to
give such notice shall not limit the rights of such Person) and
(ii) unless in such indemnified party’s reasonable judgment a
conflict of interest between such indemnified and indemnifying
parties may exist with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel
reasonably satisfactory to the indemnified party; provided, however, that any person
entitled to indemnification hereunder shall have the right to
employ separate counsel and to participate in the defense of such
claim, but the fees and expenses of such counsel shall be at the
expense of such person unless (A) the indemnifying party has agreed
to pay such fees or expenses or (B) the indemnifying party shall
have failed to assume the defense of such claim and employ counsel
reasonably satisfactory to such person. If such defense is not
assumed by the indemnifying party as permitted hereunder, the
indemnifying party will not be subject to any liability for any
settlement made by the indemnified party without its consent (but
such consent will not be unreasonably withheld, conditioned or
delayed). If such defense is assumed by the indemnifying party
pursuant to the provisions hereof, such indemnifying party shall
not settle or otherwise compromise the applicable claim unless (i)
such settlement or compromise contains a full and unconditional
release of the indemnified party or (ii) the indemnified party
otherwise consents in writing (which consent will not be
unreasonably withheld, conditioned or delayed). An indemnifying
party who is not entitled to, or elects not to, assume the defense
of a claim will not be obligated to pay the fees and expenses of
more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless in the
reasonable judgment of any indemnified party, a conflict of
interest may exist between such indemnified party and any other of
such indemnified parties with respect to such claim, in which event
the indemnifying party shall be obligated to pay the reasonable
fees and disbursements of such additional counsel or
counsels.

 

(d)
Each party hereto agrees that, if for any reason the
indemnification provisions contemplated by Section 2.7(a) or Section 2.7(b) are unavailable
to or insufficient to hold harmless an indemnified party in respect
of any losses, claims, damages, liabilities or expenses (or actions
in respect thereof) referred to therein, then each indemnifying
party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, liabilities
or expenses (or actions in respect thereof) in such proportion as
is appropriate to reflect the relative fault of the indemnifying
party and the indemnified party in connection with the actions
which resulted in the losses, claims, damages, liabilities or
expenses as well as any other relevant equitable considerations.
The relative fault of such indemnifying party and indemnified party
shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact relates to
information supplied by such indemnifying party or indemnified
party, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or
omission. The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 2.7(d) were determined
by pro rata allocation (even if the Holders or any underwriters or
all of them were treated as one entity for such purpose) or by any
other method of allocation which does not take account of the
equitable considerations referred to in this Section 2.7(d). The amount paid
or payable by an indemnified party as a result of the losses,
claims, damages, liabilities or expenses (or actions in respect
thereof) referred to above shall be deemed to include any legal or
other fees or expenses reasonably incurred by such indemnified
party in connection with investigating or, except as provided in
Section 2.7(c),
defending any such action or claim. Notwithstanding the provisions
of this Section
2.7(d), no Holder shall be required to contribute an amount
greater than the dollar amount by which the proceeds received by
such Holder with respect to the sale of any Registrable Securities
exceeds the amount of damages which such Holder has otherwise been
required to pay by reason of any and all untrue or alleged untrue
statements of material fact or omissions or alleged omissions of
material fact made in any Registration Statement or Prospectus or
any amendment thereof or supplement thereto related to such sale of
Registrable Securities. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The
Holders’ obligations in this Section 2.7(d) to contribute
shall be several in proportion to the amount of Registrable
Securities registered by them and not joint.

 

If
indemnification is available under this Section 2.7, the indemnifying
parties shall indemnify each indemnified party to the full extent
provided in Section
2.7(a) and Section
2.7(b) without regard to the relative fault of said
indemnifying party or indemnified party or any other equitable
consideration provided for in this Section 2.7(d) subject, in the
case of the Holders, to the limited dollar amounts set forth in
Section
2.7(b).

 

74

 

 

(e) The
indemnification and contribution provided for under this Agreement
will remain in full force and effect regardless of any
investigation made by or on behalf of the indemnified party or any
officer, director or controlling Person of such indemnified party
and will survive the transfer of securities.

 

 

75

 

 

2.8
Transfer of
Registration Rights. The registration rights of a Holder
under this Agreement with respect to any Registrable Securities may
be transferred or assigned to any purchaser or transferee of
Registrable Securities; provided, however, that (i) such Holder
shall give the Company written notice prior to the time of such
transfer stating the name and address of the transferee and
identifying the securities with respect to which the rights under
this Agreement are being transferred; (ii) such transferee shall
agree in writing, in form and substance reasonably satisfactory to
the Company, to be bound as a Holder by the provisions of this
Agreement; (iii) such transferee is not a direct competitor of the
Company; and (iv) immediately following such transfer the further
disposition of such securities by such transferee shall be
restricted to the extent set forth under applicable
law.

 

2.9
Current
Public Information. With a view to making available to the
Holders of Registrable Securities the benefits of Rule 144 and Rule
144A promulgated under the Securities Act and other rules and
regulations of the SEC that may at any time permit a Holder of
Registrable Securities to sell securities of the Company to the
public without registration, the Company covenants that it will (i)
use its commercially reasonable efforts to file in a timely manner
all reports and other documents required, if any, to be filed by it
under the Securities Act and the Exchange Act and the rules and
regulations adopted thereunder and (ii) make available information
necessary to comply with Rule 144 and Rule 144A, if available with
respect to resales of the Registrable Securities under the
Securities Act, at all times, all to the extent required from time
to time to enable such Holder to sell Registrable Securities
without registration under the Securities Act within the limitation
of the exemptions provided by (x) Rule 144 and Rule 144A
promulgated under the Securities Act (if available with respect to
resales of the Registrable Securities), as such rules may be
amended from time to time or (y) any other rules or regulations now
existing or hereafter adopted by the SEC.

 

2.10
Company
Obligations Regarding Transfers. In connection with any sale
or transfer of Registrable Securities by any Holder, including any
sale or transfer pursuant to Rule 144 and Rule 144A promulgated
under the Securities Act and other rules and regulations of the SEC
that may at any time permit a Holder of Registrable Securities to
sell securities of the Company to the public without registration,
the Company shall, to the extent allowed by law, take any and all
action necessary or reasonably requested by such Holder in order to
permit or facilitate such sale or transfer, including, without
limitation, at the sole expense of the Company, by (i) issuing such
directions to any transfer agent, registrar or depositary, as
applicable, (ii) delivering such opinions to the transfer agent,
registrar or depositary as are requested by the same, and (iii)
taking or causing to be taken such other actions as are reasonably
necessary (in each case on a timely basis) in order to cause any
legends, notations or similar designations restricting
transferability of the Registrable Securities held by such Holder
to be removed and to rescind any transfer restrictions (other than
as may apply pursuant to Section 2.3) with respect to
such Registrable Securities.

 

2.11
No
Conflict of Rights. The Company represents and warrants
that, except as set forth in the Davis RRA, it has not granted, and
is not subject to, any registration rights that are superior to,
inconsistent with or that in any way violate or subordinate the
rights granted to the Holders hereby. The Company shall not, prior
to the termination of this Agreement, grant any registration rights
that are superior to, inconsistent with or that in any way violate
or subordinate the rights granted to the Holders
hereby.

 

2.12
Free
Writing Prospectuses. The Company shall not permit any
officer, director, underwriter, broker or any other person acting
on behalf of the Company to use any free writing prospectus (as
defined in Rule 405 under the Securities Act) in connection with
any registration statement covering Registrable Securities, without
the prior written consent of each participating Holder and any
underwriter. No Holder shall, or permit any officer, manager,
underwriter, broker or any other person acting on behalf of such
Holder to use any free-writing prospectus in connection with any
registration statement covering Registrable Securities, without the
prior written consent of the Company.

 

 

76

 

 

ARTICLE III

TERMINATION

 

3.1
Termination.
The provisions of this Agreement shall terminate and be of no
further force and effect upon the earlier of (a) the fourth
anniversary of the date of the effectiveness of the Registration
Statement contemplated by Section 2.1(a), provided that
this four-year period shall be extended to account for any period
of time in which registration hereunder is unavailable (during a
Suspension Period or the period of time contemplated by
Section 2.5, during
a suspension of the effectiveness of the Registration Statement or
a suspension of the qualification of Registrable Securities for
sale, or otherwise) and (b) the date when there shall no longer be
any Registrable Securities outstanding; provided, however, that
notwithstanding the foregoing, the obligations of the Company under
Section 2.10 shall
not terminate and shall remain in effect until there shall no
longer be any Registrable Securities outstanding.

 

ARTICLE IV

MISCELLANEOUS

 

4.1
Notices. Any
notice or other communication required or permitted hereunder shall
be in writing and shall be delivered by hand, by facsimile
transmission or electronic mail transmission, or by certified or
registered mail, postage prepaid and return receipt requested.
Notices shall be deemed to have been given upon delivery, if
delivered by hand, three days after mailing, if mailed, and upon
receipt of an appropriate electronic confirmation, if delivered by
facsimile or electronic mail transmission. Notices shall be
delivered to the parties at the addresses set forth
below:

If to
the Company:

 

Yuma
Energy, Inc.

Attention: Chief
Executive Officer

1177
West Loop South, Suite 1825

Houston, Texas
77027

Phone:
(713) 968-7068

 

With
copies to (which shall not constitute notice):

Jones
& Keller, P.C.

Attention:    
Reid A.
Godbolt, Esq.

Adam J.
Fogoros, Esq.

1999
Broadway, Suite 3150

Denver,
Colorado 80202

Phone:
(303) 573-1600

Facsimile: (303)
573-8133

Email: 

rgodbolt@joneskeller.com

adamf@joneskeller.com 

If to
any Holder, at its address listed on the signature pages
hereof.

 

Any
party may from time to time change its address or designee for
notification purposes by giving the other parties prior notice in
the manner specified above of the new address or the new designee
and the subsequent date upon which the change shall be
effective.

4.2
Choice
of Law; Exclusive Jurisdiction; Waiver of Jury Trial.
 

 

(a)
This Agreement shall be constructed, interpreted and enforced in
accordance with, and the respective rights and obligations of the
parties shall be governed by, the laws of the State of Delaware
without regard to principles of conflicts of law.

 

(b) All
actions and proceedings for the enforcement of or based on, arising
out of or relating to this Agreement shall be heard and determined
exclusively in the Delaware Court of Chancery (or, only if the
Delaware Court of Chancery declines to accept jurisdiction over the
particular matter, any other court of the State of Delaware, or any
federal court sitting in the State of Delaware), and each of the
parties hereto hereby (i) irrevocably submits to the exclusive
jurisdiction of such courts (and, in the case of appeals,
appropriate appellate courts therefrom) in any such action or
proceeding, (ii) irrevocably waives the defense of an inconvenient
forum to the maintenance of any such action or
proceeding,

 

77

 

 

(iii)
agrees that it shall not bring any such action in any court other
than the Court of Chancery of the State of Delaware (or, only if
the Delaware Court of Chancery declines to accept jurisdiction over
the particular matter, any other court of the State of Delaware, or
any federal court sitting in the State of Delaware), and (iv)
irrevocably consents to service of process by first class certified
mail, return receipt requested, postage prepaid, to the address at
which Member or Parent, as the case may be, is to receive notice in
accordance with Section
4.2. The parties hereto agree that a final judgment in any
such action or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other
manner provided by applicable law.

 

(c)
Each of the parties hereto hereby irrevocably waives any and all
rights to trial by jury in any legal proceeding arising out of or
related to this Agreement.

 

4.3
No
Third-Party Beneficiaries. This Agreement is for the sole
benefit of the parties hereto and their respective successors and
permitted assigns and nothing herein, express or implied, is
intended to or shall confer upon any other Person any legal or
equitable right, benefit or remedy of any nature whatsoever, under
or by reason of this Agreement; provided, however, the parties
hereto hereby acknowledge that the Persons set forth in
Section 2.3 and
Section 2.7 are
express third-party beneficiaries of the obligations of the parties
hereto set forth in Section 2.3 and Section 2.7,
respectively.

 

4.4
 Successors and
Assigns. Except as otherwise expressly provided herein, this
Agreement shall be binding upon and benefit the Company, each
Holder and their respective successors and assigns. The Company
shall not, directly or indirectly, enter into any merger,
consolidation or reorganization in which the Company shall not be
the surviving entity unless the surviving entity shall, prior to
such merger, consolidation or reorganization, agree in writing to
assume the obligations of the Company under this Agreement, and for
that purpose references hereunder to “Registrable
Securities” shall be deemed to include the common equity
interests or other securities, if any, which the Holders would be
entitled to receive in exchange for Registrable Securities under
any such merger, consolidation or reorganization, provided that, to
the extent the Holders receive securities that are by their terms
convertible into common equity interests of the issuer thereof,
then any such common equity interests as are issued or issuable
upon conversion of said convertible securities shall be included
within the definition of “Registrable
Securities.”

 

4.5
Counterparts.
This Agreement may be executed by the parties in separate
counterparts (including by means of executed counterparts delivered
via facsimile or other electronic means), each of which shall be
deemed an original, but all of which together shall constitute one
and the same instrument.

 

4.6
Severability.
In case any provision in this Agreement shall be held invalid,
illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in
every other respect and the remaining provisions shall not in any
way be affected or impaired thereby.

 

4.7
No
Waivers; Amendments. 

 

(a) No
failure or delay on the part of the Company or any Holder 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. The
remedies provided for herein are cumulative and are not exclusive
of any remedies that may be available to the Company or any Holder
at law or in equity or otherwise.

 

(b) Any
provision of this Agreement may be amended or waived if, but only
if, such amendment or waiver is in writing and is signed by the
Company and the Required Holders

 

4.8
Entire
Agreement. This Agreement and the other writings referred to
herein or therein or delivered pursuant hereto or thereto, contain
the entire agreement between the Holders and the Company with
respect to the subject matter hereof and supersede all prior and
contemporaneous arrangements or understandings with respect
thereto.

 

4.9
Remedies; Specific
Performance.  

 

(a)
Each Holder shall have all rights and remedies reserved for such
Holder pursuant to this Agreement and all rights and remedies which
such Holder has been granted at any time under any other agreement
or contract and all of the rights which such Holder has under any
law or equity. Any Person having any rights under any provision of
this Agreement will be entitled to enforce such rights
specifically, to recover damages by reason of any breach of any
provision of this Agreement and to exercise all other rights
granted by law or equity.

 

(b) The
parties hereto recognize and agree that money damages may be
insufficient to compensate the Holders of any Registrable
Securities for breaches by the Company of the terms hereof and,
consequently, that the Holders shall be entitled to the equitable
remedies of injunctive relief and of specific performance of the
terms hereof in the event of any such breach. If any action should
be brought in equity to enforce any of the provisions of this
Agreement, none of the parties hereto shall raise the defense that
there is an adequate remedy at law.

 

4.10
Negotiated
Agreement. This Agreement was negotiated by the parties with
the benefit of legal representation, and any rule of construction
or interpretation otherwise requiring this Agreement to be
construed or interpreted against any party shall not apply to the
construction or interpretation hereof.

 

[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

78

 

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

	
 

	
 

	
 

	
 

	
 

	

YUMA
ENERGY, INC.

	
 

	
 

	
 

	
 

	
By: 

	
 

	
 

	
 

	
Name: 

	
 

	

Anthony
C. Schnur

	
 

	
Title: 

	
 

	

Interim
Chief Executive Officer

 

Signature Page to Registration Rights Agreement

 

79

 

 

Counterpart Signature Page

 

	

FOR
ENTITY INVESTORS:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

RMCP
PIV DPC, LP

	
 

	

By:
RMCP DPC LLC, its General Partner

By: Red
Mountain Capital Partners, its managing member

 

	
 

	

By:

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	

Title:

	

Managing
Partner

	
 

	

Taxpayer
ID #:

	
 

	
 

 

 

	
 

	
 

	
 

	

RMCP
PIV DPC II, LP

	
 

	

By:
RMCP DPC II LLC, its General Partner

By: Red
Mountain Capital Partners, its managing member

 

	
 

	

By:

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	

Title:

	

Managing
Partner

	
 

	

Taxpayer
ID #:

	
 

	
 

 

 

	
 

	
 

	
 

	

YE
INVESTMENT LLC

	
 

	

By: Red
Mountain Capital Partners, its Managing Member

 

	
 

	

By:

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	

Title:

	

Managing
Partner

	
 

	

Taxpayer
ID #:

	
 

	
 

 

 

 

	

RED
MOUNTAIN CAPITAL PARTNERS LLC

	
 

	
 

	
 

	

By:

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	

Title:

	

Managing
Partner

	
 

	

Taxpayer
ID #:

	
 

	
 

 

 

 

80

 

 

Counterpart Signature Page

 

 

	
 

	
 

	

FOR INDIVIDUAL INVESTORS:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Signature:

	
 

	
 

	
 

	

Name:

	

Thomas
E. Hardisty

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Signature:

	
 

	
 

	
 

	

Name:

	

Mel
Hainey

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Signature:

	
 

	
 

	
 

	

Name:

	

J. Mark
Bunch

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

81

 

 

Exhibit G

 

A&R Credit Agreement Terms

 

	

Amendment
and Restatement

 

	

The
Credit Agreement shall be amended and restated to provide for the
possibility of a new term loan to the Company with lender consent
on the terms set forth on this Exhibit G

 

	

Term
Loan

 

	

Uncommitted
delayed draw term loan

 

	

Principal

 

	

Up to
$2,000,000

 

	

Interest
Rate

 

	

10% per
annum

 

	

Interest
Payment Schedule

 

	

Monthly

 

	

Maturity

 

	

September
30, 2022

 

	

Secured
Status

 

	

Secured
under the Credit Agreement

 

	

Seniority

 

	

Senior
to the 2016 Loans

 

	

Prepayment
Penalty

 

	

10% of
the principal amount repaid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82

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