Document:

Exhibit

EXECUTION COPY

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT
THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made by and amongst ENDOCHOICE HOLDINGS, INC. (formerly known as ECPM Holdings, LLC) (together with its subsidiaries and affiliates, the “Company”), having its principal offices at 11810 Wills Road, Alpharetta, GA 30005 USA, and David N. Gill (the “Executive”), effective as of March 3, 2016.
WHEREAS, the Company desires to employ the Executive in the position of President & Chief Financial Officer for the Company; and
WHEREAS, the Executive desires to be employed by the Company as its President & Chief Financial Officer; 
NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Company and the Executive hereby agree as follows:
1.Definitions.  For purposes of this Agreement, the following terms shall have the meanings set forth below:
(a)    “Annual Base Salary” shall mean the Executive’s annual rate of regular base annual compensation prior to any reduction under (i) a salary reduction agreement pursuant to Section 401(k) or Section 125 of the Code or (ii) any plan or arrangement deferring any base salary.
(b)    “Board” shall mean the Board of Directors of the Company. The Board may delegate its authority to a committee of the Board (the “Committee”), including without limitation a compensation committee, which shall consist of outside directors as defined under Section 162(m) the Code, and related Treasury regulations, and “non-employee directors” as defined under Rule 16b-3 under the Securities Exchange Act of 1934 (the “Exchange Act”).  Unless otherwise specified in the Agreement, the term “Board” shall include any Committee (or sub-committee) to which the Board’s authority has been delegated.
(c)    “Cause” any of the following (i) conviction of the Executive by a court of competent jurisdiction of any felony or a crime involving dishonesty; (ii) the Executive’s grossly negligent or willful and material breach of the Executive’s duties and responsibilities; (iii) the Executive’s willful and material misconduct in the performance of Executive’s duties; (iv) the Executive’s failure to comply with any lawful instruction or directive of the Board or; (v) the Executive’s willful and material breach of the Employment Covenants Agreement.  An event described in (ii) - (v) above shall not be treated as “Cause” until after the Executive has been given written notice of such event, failure or conduct and the Executive fails to cure such event, failure, conduct or breach, if curable, within thirty (30) days from such written notice.  In any event, the Executive shall not be deemed to have been terminated for Cause unless the Company shall have given a reasonable opportunity to Executive to appear before the Board to request reconsideration.  

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Failure of the Company to meet financial or performance targets or goals shall not be deemed to be a breach pursuant to subsections (ii),  (iii) or (iv) above.  
(d)    “Change in Control” shall mean the occurrence of one (1) or more of the following events:
(i)    The date that any Person (other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company, or a company owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), or more than one such Person acting as a group (as determined under Treasury Regulations Section 1.409A-3(i)(5)(v)(B)), acquires ownership of the stock of the Company representing more than thirty-five percent (35%) of the total combined voting power of the Company’s then-outstanding stock;
(ii)    The date that any Person (other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company, or a company owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), or more than one such Person acting as a group (as determined under Treasury Regulations Section 1.409A-3(i)(5)(v)(B)), acquires assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Company immediately before such acquisition (with “gross fair market value” determined without regard to any liabilities associated with such assets); or
(iii)    The date that the majority of members of the Board are replaced during any twelve (12)-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of such appointment or election.
Notwithstanding the foregoing, in no event shall a Change in Control be deemed to have occurred if, with respect to the Executive, the Executive is part of a purchasing group which consummates the Change in Control transaction.  The Executive shall be deemed “part of the purchasing group” for purposes of the preceding sentence if the Executive is an equity participant or has agreed to become an equity participant in the purchasing company or group (except for (a) passive ownership of less than five percent (5%) of the voting securities of the purchasing company; or (b) ownership of equity participation in the purchasing company or group which is not more than ten percent (10%), as determined prior to the Change in Control by a majority of the non-employee continuing directors of the Board).  
Notwithstanding any provision herein to the contrary, the Company’s initial public offering shall not be a Change in Control for purposes of this Agreement.
(e)    “COBRA” shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, as well as any applicable state law of similar effect
(f)    “Code” shall mean the Internal Revenue Code of 1986, as amended, and, as applicable, Treasury Regulations promulgated thereunder.

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(g)    “Company” shall mean EndoChoice Holdings, Inc. and any successor to its business and/or assets which assumes (either expressly, by operation of law or otherwise) and/or agrees to perform this Agreement by operation of law or otherwise (except in determining, under subsection (d) hereof, whether or not any Change in Control of the Company has occurred in connection with such succession).
(h)    “Date of Termination” shall mean with respect to any purported termination of the Executive’s employment, the effective date of the Executive’s Separation from Service.
(i)    “Disability” shall mean the Executive’s inability for medical reasons to perform the essential duties of the Executive’s position for either ninety (90) consecutive calendar days or one hundred twenty (120) business days in a twelve (12) month period by reason of any medically determined physical or mental impairment as determined by a medical doctor selected by written agreement of the Company and the Executive upon the request of either party by notice to the other.
(j)    “Employment Covenants Agreement” shall mean the Employment Covenants Agreement between the Executive and the Company dated August 15, 2014. 
(k)    “Good Reason” shall mean (i) a material change in the character or scope of the Executive’s position, duties, Annual Base Salary, responsibilities, reporting or authority, including without limitation any requirement that the Executive report to a Person other than the Chief Executive Officer; (ii) any material reduction in the Executive’s Target Bonus opportunity; (iii) the Company requires Executive to change the Executive’s principal location of work to a location that is greater than fifty (50) miles from the location thereof as of the effective date of this Agreement without the Executive’s written consent; (iv) failure of the Company to have any successor entity assume and perform this Agreement pursuant to Section 7(d); or (v) the material breach of this Agreement by the Company or any successor thereto. A condition described in (i) – (v) above shall not be treated as “Good Reason” until after the Executive has given written notice to the Company of the existence of the condition not less than  thirty (30) days after the initial existence of the condition and the Company fails to cure such condition within thirty (30) days from such written notice. 
(l)    “Person” shall have the meaning ascribed thereto in Section 3(a)(9) of the Exchange Act, as modified, applied and used in Sections 13(d) and 14(d) thereof; provided, however, a Person shall not include (i) the Company or any of its respective subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its respective subsidiaries (in its capacity as such), or (iii) an underwriter temporarily holding securities pursuant to an offering of such securities.
(m)    “Release” shall mean a general mutual release of the Company and the Executive containing a mutual non-disparagement clause in substantially the form attached hereto as Exhibit A.  The Release must be signed by the Executive and become irrevocable and effective in accordance with its terms not later than sixty (60) days following the Date of Termination, unless a longer period for execution and effectiveness is expressly required by applicable law.

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(n)    “Separation from Service” shall mean the date after which (i) no further services are reasonably expected to be performed by the Executive or (ii) the level of bona fide services that the Executive would perform (whether as an employee or as an independent contractor) would permanently decrease to no more than 20% of the average level of bona fide services performed (whether as an employee or as an independent contractor) over the preceding 36-month period.  The determination of such date shall be made in good faith by the Board based on the applicable facts and circumstances and in accordance with the requirements of Treasury Regulation Section 1.409A-1(h).
(o)    “Severance Commencement Date” shall mean the date on or following the Date of Termination and on which the Release becomes effective and irrevocable in accordance with its terms; provided, however, that if the Date of Termination occurs within sixty (60) days prior to the end of a calendar year, the Severance Commencement Date will be the later of (i) the date on which the Release becomes effective and irrevocable in accordance with its terms, or (ii) the first day of the calendar year immediately following the Date of Termination.
2.    Term of this Agreement.  The term of this Agreement, as amended, shall commence upon the date of this Agreement set forth above and shall continue until terminated in accordance with Section 4 (the “Term”).
3.    Duties; Scope of Employment; Compensation and Benefits.
(a)    Position and Duties.  The Company shall employ the Executive in the position of President & Chief Officer of the Company, reporting to the Chief Executive Officer.  During the Term, the Executive will devote substantially all of the Executive’s business efforts and time to the Company.  The Executive agrees not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the prior approval of the Board, provided, however, that the Executive may engage in the following as long as such activities do not materially interfere with the Executive’s duties and responsibilities with the Company: (i) serve on the board of two (2) unaffiliated corporations; (ii) serve on the boards of trade associations or charitable organizations or otherwise engage in charitable activities and community affairs; or (iii) manage the Executive’s personal investments and affairs; provided, however, that Executive may serve on the Board of more than two (2) unaffiliated corporations subject to the reasonable prior approval of the Board, which shall not be unreasonably withheld or delayed.
(b)    Annual Base Salary.  The Executive’s Annual Base Salary shall equal Three Hundred Seventy Four Thousand Dollars ($374,000).  The Annual Base Salary amount shall be reviewed not less frequently than annually by the Board and, in the sole discretion of the Board, may be adjusted upward.  Notwithstanding the preceding sentence, the Executive’s annual salary may be reduced if such reduction is pro rata among substantially all of the Company’s senior level executives as a group.
(c)    Bonus.  The Executive’s target bonus opportunity shall be forty-five percent (45%) of the Executive’s Annual Base Salary (the “Target Bonus”).  This target percentage shall be reviewed not less frequently than annually by the Board and, in its sole discretion, may be adjusted 

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upward.  The Executive’s actual bonus earned shall be determined based on the Executive’s performance and achievement of target objectives and such other terms agreed to in good faith by the Company and the Executive.
(d)    Pension and Welfare Plans.  During the Term, the Executive and the Executive’s dependents, if applicable, shall be entitled to participate in all incentive, savings and retirement plans, health and welfare benefit plans, practices, policies and programs (including, without limitation, medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) sponsored by the Company or its affiliates on the same terms and conditions generally applicable to executives of the Company; provided, however, the Executive shall not be eligible to participate in the EndoChoice Holdings, Inc. Officer Severance Benefit Plan or any other severance arrangement that may be maintained by the Company from time to time (other than the severance provided in this Agreement) unless such arrangement specifically designates Executive as eligible to participate therein.
(e)    Equity Plans.  The Executive shall be entitled to participate in any stock option, restricted stock, stock appreciation rights, or any other equity compensation plan or program sponsored by the Company or its affiliates on the same terms and conditions generally applicable to executives of the Company.  Notwithstanding the foregoing, except as expressly otherwise provided herein, the Executive shall not have a guaranteed right to awards under such plans at any time or in any particular amount.  Any equity interests or rights to purchase equity interests in the Company held by the Executive and issued pursuant to the EndoChoice Holdings, Inc. 2015 Omnibus Equity Incentive Plan or any successor plan (the “Equity Plan”) shall be administered and subject to the terms of the Equity Plan and any amendments thereto, including, without limitation, the Equity Plan’s provisions relevant to a Change in Control.
(f)    Fringe Benefits and Prerequisites.  The Executive shall be entitled to fringe benefits and prerequisites available to executives in accordance with the plans, practices, programs and policies of the Company from time to time.
(g)    Expenses.  The Executive shall be entitled to receive prompt reimbursement for all reasonable business expenses incurred by the Executive in accordance with the applicable policy of the Company and its affiliated companies as in effect from time to time.
(h)    Paid Time Off.  The Executive shall be entitled to four (4) weeks of paid time off in accordance with the general policy of the Company applicable to executives as in effect from time to time.
(i)    Indemnification/D&O Coverage/Other Benefits.  The Executive shall be a party to any indemnification or similar agreement into which the Company and any other senior executives enter, on terms no less favorable than any such other senior executives.  The Executive will also be indemnified to the fullest extent permitted by law, from and against any and all liability, loss, damages or expenses incurred as a result of, arising out of, or in any way related to, Executive’s lawful service as an employee, officer, director or agent of the Company or a Company affiliate, in accordance with the Company’s Certificate of Incorporation and bylaws. The Company shall maintain a directors and officers liability insurance policy (including commercially reasonable tail 

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coverage) covering the Executive in his capacity as an officer and director of the Company and any Company affiliate.  The Company’s obligation to indemnify the Executive shall survive termination of this Agreement.  The Executive shall be entitled to prompt reimbursement of the full cost of one annual executive physical examination, to the extent not covered by the Company’s group health plan and in accordance with the requirements of Treasury Regulation Section 1.105-11(g). 
4.    Termination.  The Term and Executive’s employment shall terminate upon the occurrence of any of the following events:
(a)    Termination Without Cause; Resignation for Good Reason; Death; Disability.
(iv)    General.  The Company may remove the Executive at any time without Cause from the position in which the Executive is employed hereunder upon not less than thirty (30) days’ prior written notice of termination to the Executive; provided, however, that, in the event that such notice is given, the Executive shall be allowed reasonable time away from the office to seek other employment.  In addition, the Executive may initiate termination of employment by resigning under this Section 4(a) for Good Reason.  The Executive shall give the Company not less than thirty (30) days’ prior written notice of termination of such resignation for Good Reason. 
(v)    Death, Disability, or Not in Connection with a Change in Control.  Upon any removal without Cause or resignation for Good Reason described in Section 4(a)(i) above (other than such a removal or resignation that occurs during the period commencing on the date the Company enters into a written agreement which, if consummated, would and does result in a Change in Control and ending twenty-four (24) months following the effective date of a Change in Control) or in the event of Executive’s death or termination of employment as a result of Disability, the Executive shall be entitled to receive, subject to the effectiveness and irrevocability of the Release, cash severance equal to: (a) the sum of (A) fifty percent (50%) the Executive’s Annual Base Salary at the rate in effect immediately prior to the Date of Termination, plus (B) fifty percent (50%) of the Executive’s Target Bonus (the “Severance Bonus”); (b) a pro-rated bonus for the year in which the Date of Termination occurs, calculated as the product of (i) the full annual target bonus for the year in which the Date of Termination occurs and (ii) a fraction, the numerator of which is the number of days during which the Executive was employed by the Company in the year in which the Date of Termination occurs, and the denominator of which is three hundred sixty five (365) (the “Pro-Rated Bonus”); and (c) if Executive timely elects continuation health care coverage pursuant to COBRA for himself and/or his eligible dependents, the Company shall pay the applicable COBRA premiums for such coverage for up to eighteen (18) months, or such earlier time as the Executive (i) ceases to be eligible for such continuation coverage for any reason, or (ii) becomes eligible for coverage under another employer’s group health plan, regardless of whether such coverage is actually elected. In addition, Executive’s equity awards will accelerate vesting in full and shall remain exercisable until the earlier of twenty four (24) months or the expiration of their original term (as determined without regard to the Executive’s termination of employment). For purposes of determining the number of shares that will vest pursuant to the foregoing provision with respect to any performance based vesting equity award that has multiple vesting levels depending upon the level of performance, vesting acceleration shall occur with respect to the number of shares subject 

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to the equity award as if the applicable performance criteria had been attained at a 100% level. Subject to any delay in payment required by Section 4(c), the Company will pay (a) the Cash Severance, less the Severance Bonus and Pro-Rated Bonus in substantially equal installments on the Company’s regular payroll schedule and subject to standard deductions and withholdings over the six (6) month period immediately following the Date of Termination, and (b) the Severance Bonus and Pro-Rated Bonus in a lump sum on the date that the Company would otherwise pay the annual bonus for that year to other executives whose employment has not terminated (but in no event later than March 15 of the year following the year in which the annual bonus would have otherwise been earned).  However, no payments of the Cash Severance will be made prior to the Severance Commencement Date.  On the first payroll pay day following the Severance Commencement Date, the Company will pay the Executive in a lump sum the Cash Severance the Executive would otherwise have received on or prior to such date but for the delay in payment related to the effectiveness and irrevocability of the Release, with the balance of the Cash Severance being paid as originally scheduled.
(vi)    In Connection with a Change in Control. 
(1)    Severance. Upon any removal without Cause or resignation for Good Reason described in Section 4(a)(i) above that occurs during the period commencing on the date the Company enters into a written agreement which, if consummated, would and does result in a Change in Control and ending twenty four (24) months following the effective date of a Change in Control (a “Qualifying CIC Termination”) (1) the Executive shall be entitled to receive, subject to the effectiveness and irrevocability of the Release, cash severance equal to the sum of (a) one hundred percent (100%) of the Executive’s Annual Base Salary at the rate in effect immediately prior to the Date of Termination (the “CIC Severance”), and (b) the Executive’s full annual target bonus for the year in which the Date of Termination occurs (the “CIC Severance Bonus”) and (c) a pro-rated bonus for the year in which the Date of Termination occurs, calculated as the product of (i) the full annual bonus for the year in which the Date of Termination occurs and (ii) a fraction, the numerator of which is the number of days during which the Executive was employed by the Company in the year in which the Date of Termination occurs, and the denominator of which is three hundred and sixty five (365) (the “Pro-Rated CIC Bonus”).  Subject to any delay in payment required by Section 4(c), the Company will pay (a) the CIC Severance, less the CIC Severance Bonus and the Pro-Rated CIC Bonus, in a lump sum on the Severance Commencement Date, and (b) the CIC Severance Bonus in a lump sum on the date that the Company would otherwise pay the annual bonus for that year to other executives whose employment has not terminated (but in no event later than March 15 of the year following the year in which the annual bonus would have otherwise been earned).  
(2)    Equity.  If the Executive’s employment terminates due to a Qualifying CIC Termination, then subject to the Executive’s timely provision of an effective and irrevocable Release, and effective as of the later of the Severance Commencement Date or the effective date of the Change in Control, the Executive’s equity awards will accelerate vesting in full and shall remain exercisable until the earlier of twenty four (24) months or the expiration of their original term (as determined without regard to the Executive’s termination of employment); provided, however, that in order to give effect to the intent of the foregoing provision, to the extent 

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the Severance Commencement Date is later than the effective date of a Change in Control where the Executive’s equity award is not assumed, substituted or continued by the acquiring or surviving entity, the vesting of the Executive’s equity awards will be contingent upon the Executive’s timely provision of an effective and irrevocable Release, but will be deemed to have been effective immediately prior to the Change in Control.  For purposes of determining the number of shares that will vest pursuant to the foregoing provision with respect to any performance based vesting equity award that has multiple vesting levels depending upon the level of performance, vesting acceleration shall occur with respect to the number of shares subject to the equity award as if the applicable performance criteria had been attained at the greater of a 100% level or the level of actual performance as of the date of the Change in Control.
(3)    COBRA Coverage. If the Executive’s employment terminates due to a Qualifying CIC Termination, then subject to the Executive’s timely provision of an effective and irrevocable Release, if Executive timely elects continuation health care coverage pursuant to COBRA for himself and/or his eligible dependents, the Company shall pay the applicable COBRA premiums for such coverage for up to eighteen (18) months, or such earlier time as the Executive (i) ceases to be eligible for such continuation coverage for any reason, or (ii) becomes eligible for coverage under another employer’s group health plan, regardless of whether such coverage is actually elected.
(b)    Termination for Cause; Voluntary Resignation Without Good Reason.  In the event that the Executive voluntarily terminates his employment for any reason other than Good Reason or in the event that Company terminates the Executive for Cause no further payments shall be due under this Agreement, except that the Executive shall be entitled to any amounts earned, accrued or owing but not yet paid under Section 3 above and any benefits accrued or earned under the Company’s benefit plans and programs or to which Executive is otherwise entitled under applicable law.
(c)    Compliance with Section 409A of the Code.
(i)    All payments and benefits provided under the Agreement are intended to satisfy the requirements for an exemption from application of Section 409A of the Code to the maximum extent that an exemption is available and any ambiguities herein shall be interpreted accordingly.  Notwithstanding anything to the contrary set forth herein, any payments and benefits provided under the Agreement that constitute “deferred compensation” within the meaning of Section 409A of the Code and the regulations and other guidance thereunder shall not commence in connection with the Executive’s termination of employment unless and until the Executive has also incurred a “separation from service,” as such term is defined in Treasury Regulations Section 1.409A-1(h).
(ii)    It is intended that each installment of the payments provided for in this Section 4 is a separate “payment” for purposes of Treasury Regulations Section 1.409A2(b)(2)(i).  For the avoidance of doubt, it is intended that payments of the amounts set forth in this Section 4 satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulation 1.409A-1(b)(4)  and 1.409A-1(b)(9)(v).

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(iii)    Any provision of this Agreement to the contrary notwithstanding if at the time of the Executive’s Date of Termination Executive is a “specified employee,” within the meaning of Section 409A of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement on account of his Separation from Service would be considered nonqualified deferred compensation under Section 409A of the Code, such payment or benefit shall be paid or provided at the date which is the earlier of (i) six (6) months and one day after the Date of Termination and (ii) the date of the Executive’s death (the ‘Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 4(d) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or provided to the Executive in a lump-sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.
(iv)    Any reimbursements provided under this Agreement that constitute deferred compensation within the meaning of Section 409A of the Code shall be made or provided in accordance with the requirements of Section 409A of the Code, including, without limitation, that (i) in no event shall any fees, expenses or other amounts eligible to be reimbursed by the Company under this Agreement be paid later than the last day of the calendar year next following the calendar year in which the applicable fees, expenses or other amounts were incurred; (ii) the amount of expenses eligible for reimbursement in any given calendar year shall not affect the expenses that the Company is obligated to reimburse in any other calendar year, provided that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect; (iii) the Executive’s right to have the Company pay or provide such reimbursements may not be liquidated or exchanged for any other benefit; and (iv) in no event shall the Company’s obligations to make such reimbursements apply later than the Executive’s remaining lifetime.
5.    Non-Disclosure; Proprietary Information and Inventions, etc.  The Executive agrees to continue to be bound and abide by the Employment Covenants Agreement. Executive also acknowledges that nothing in this Agreement relieves the Executive of his obligations under the Employment Covenants Agreement.
6.    Limitation on Payments; Section 280G.  In the event the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) are “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 6, would be subject to the “golden parachute” excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits will be either:
		
	(a)
	delivered in full, or

		
	(b)
	delivered as to such lesser extent which would result in no portion of such severance benefits being subject to the excise tax under Section 4999 of the Code,

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whichever of (a) or (b), taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits.  If a reduction in the severance and other benefits constituting “parachute payments” is necessary so that no portion of such severance benefits is subject to excise tax under Section 4999 of the Code, the reduction shall be made in accordance with Section 409A of the Code and occur in the following order: (1) payments which do not constitute nonqualified deferred compensation subject to Section 409A of the Code; (2) reduction of the cash severance payments; (3) cancellation of accelerated vesting of equity awards; and (4) reduction of continued employee benefits.  In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of Executive’s equity awards.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section 6 will be made by the Company’s independent accounting firm, whose determination will be conclusive and binding upon Executive and the Company for all purposes.
7.    Miscellaneous.
(a)    Legal Costs.  The Company shall reimburse the Executive for reasonable legal fees and expenses incurred if the Executive prevails on any issue which is the subject of such of a lawsuit or arbitration brought by the Executive or the Company as a result of any dispute with any party (including, but not limited to, the Company and/or any affiliate of the Company) regarding the provisions of this Agreement.  Otherwise, the Executive and the Company shall be responsible for its own legal fees and expenses in connection with such action. The Company will reimburse the Executive for reasonable legal fees and expenses directly relating to the negotiation of this Agreement up to a maximum of Ten Thousand Dollars ($10,000). 
(b)    Arbitration.  In the event of any dispute under the provisions of this Agreement, other than a dispute in which the primary relief sought is an equitable remedy such as an injunction, the parties shall be required to have the dispute, controversy or claim settled by arbitration in Atlanta, Georgia in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association, before one arbitrator.  Any award entered by the arbitrator shall be final, binding and nonappealable and judgment may be entered thereon by either party in accordance with applicable law in any court of competent jurisdiction.  This arbitration provision shall be specifically enforceable.  The arbitrator shall have no authority to modify any provision of this Agreement or to award a remedy for a dispute involving this Agreement other than a benefit specifically provided under or by virtue of the Agreement.
(c)    No Mitigation.  The Company agrees that, if the Executive’s employment is terminated during the Term, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to this Agreement.  Further, the amount of any payment or benefit provided for in Section 4 of this Agreement shall not be reduced by any compensation earned by the Executive as the result of employment by another employer, by retirement benefits, or offset against any amount claimed to be owed by the Executive to the Company or any of their respective subsidiaries.  However, the severance benefits provided under this Agreement are intended to satisfy, to the greatest extent 

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possible, any and all statutory obligations that may arise out of the Executive’s termination of employment including, without limitation, the Worker Adjustment and Retraining Notification Act.
(d)    Successors.  In addition to any obligations imposed by law upon any successor to the Company, the Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.
(e)    Binding Agreement.  This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If the Executive shall die while any amount would still be payable to the Executive hereunder (other than amounts which, by their terms, terminate upon the death of the Executive) if the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of the Executive’s estate.
(f)    Notices.  For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon actual receipt:
To the Company:
EndoChoice  
11810 Wills Road 
Alpharetta, GA 30005
Attention: CEO
Facsimile: 770-962-6981

With copy to:

Keith Townsend
King & Spalding LLP
1180 Peachtree Street N.E.
Atlanta, GA 30309
Facsimile: 404-572-5100

To the Executive:
Mr. David Gill  
At the address most recently on file with the Company

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With copy to:
Joseph M. Yaffe
Skadden, Arps, Slate, Meagher & Flom LLP
525 University Avenue, Suite 1400
Palo Alto, California 94301
Facsimile: 650-798-6552
(g)    Amendments.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and such officer as may be specifically designated by the Company.  No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
(h)    Entire Agreement.  Except as otherwise provided, this Agreement contains the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, express or implied, between the parties with respect thereto.
(i)    Applicable Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Georgia  without regard to the principles of conflict of laws thereof.
(j)    Captions.  The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.
(k)    Withholding.  Any payments provided for hereunder shall be paid net of any applicable withholding required under federal, state or local law and any additional withholding to which the Executive has agreed.
(l)    Survivorship.  The rights and obligations of the Company and the Executive under this Agreement shall survive the expiration of the Term.
(m)    Mutual Intent.  All parties participated in the drafting of the Agreement, and the language used in this Agreement is the language chosen by the Executive and the Company to express their mutual intent . The parties agree that in the event that any language, section, clause, phrase or word used in the Agreement is determined to be ambiguous, no presumption shall arise against or in favor of either party and that no rule of strict construction shall be applied against either party with respect to such ambiguity.
(n)    Validity.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

12

EXECUTION COPY

(o)    Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.
[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.
ENDOCHOICE HOLDINGS, INC.

By:    
Mark Gilreath
CEO

EXECUTIVE

    
David N. Gill

13

EXECUTION COPY

EXHIBIT A

MUTUAL RELEASE OF CLAIMS

(To be signed on or within 21 days after the employment termination date.)

Pursuant to the terms of the Amended and Restated Employment  Agreement (the "Agreement") by and amongst EndoChoice Holdings, Inc. (the "Company"), and David Gill (the "Executive") effective as of ____________, the Company and the Executive hereby enter into the following Mutual Release of Claims (the "Release"):

1.    Executive's Release of Claims:

Executive understands that, on the last date of his employment with the Company, the Company will pay him any accrued salary and accrued and unused vacation  to  which  he  is entitled by law, regardless of whether he signs this Release, but he is not entitled to the severance benefits provided in the Agreement unless he signs and returns this Release to the Company and allows it to become effective.

In exchange for payment of benefits set forth in Section 4 of the Agreement,  Executive hereby generally and completely releases the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns (collectively the "Released Parties") of and from any  and  all claims, liabilities and obligations, both known and unknown, arising out of or in any way related to events, acts, conduct, or omissions occurring at any time prior to or at the time that Executive signs this Release (the "Executive Released Claims"). This general release includes, but is not limited to: (1) all claims arising out of or in any way related to Executive's employment with the Company or the termination of that employment; (2) all claims related to  Executive's compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership or equity interests in the Company; (3) all claims  for breach of contract,  wrongful termination, and breach of the implied covenant of good faith and fair dealing (including claims based on or arising under the Agreement); (4) all tort claims, including claims for fraud, defamation, emotional  distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys' fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act (as amended) ("ADEA"), and the federal Family and Medical Leave Act.

Executive understands that notwithstanding the foregoing, the following are not included in the Executive Released Claims (the "Executive Excluded Claims"):  (i) any rights or claims for indemnification  Executive  may  have pursuant  to any written  indemnification  agreement to which he is a party, the charter, bylaws, or operating agreements of any of the Released Parties, or under applicable law; (ii) any rights or claims pursuant to any directors and officers liability insurance 

14

EXECUTION COPY

policy of which Executive is a direct or indirect beneficiary; (iii) any rights or claims to compensation or benefits to which Executive has a vested or non-forfeitable right as of his termination of employment with the Company; (iii) any rights or claims to enforce any provisions of the Agreement or (iv) any rights which cannot be waived as a matter of law. In addition, Executive understands that nothing in this  Release  prevents  him  from  filing, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission or the Department of Labor, except that Executive acknowledges and agrees that he shall not recover any monetary benefits in connection with any such claim, charge or proceeding with regard to  any  claim released herein. Executive hereby represents  and warrants that, other than the  Executive Excluded Claims, Executive is not aware of any claims he has or might have against any of the Released Parties that are not included in the Executive Released Claims.

Executive acknowledges that he is knowingly and voluntarily waiving and releasing any rights he may have under the ADEA, and that the consideration given for the waiver and release in the preceding paragraph is in addition to anything of value to which  he is already entitled. Executive further acknowledges that he has been advised by this writing that: (1) his waiver and release do not apply to any rights or claims that may arise after the date he signs this Release; (2) he should consult with an attorney prior to signing this Release (although he may choose voluntarily not to do so); (3) he has twenty-one (21) days to consider this Release (although he may choose voluntarily to sign it earlier); (4) he has seven (7) days following the date he signs this Release to revoke it by providing written notice of revocation to the Chairman of the Company's Board of Directors; and (5) this Release will not be effective until  the  date upon which the revocation period has expired, which will be the eighth calendar day after the date Executive signs it provided that he does not revoke it and that  the Company has signed this Release by such date (the "Effective Date ").

Executive hereby represents that he has been paid all  compensation  owed  and  for  all hours worked, he has received all the leave and leave benefits and protections for which he is eligible, pursuant to the  Family and Medical Leave Act or otherwise, and he has not suffered any on-the-job injury for which he has not  already filed a workers'  compensation  claim.

2.    Company's Release of Claims:

The Company hereby  generally and completely releases Executive of and from any and all claims,  liabilities, and obligations,  both known and unknown,  arising out of or in any way related  to events, acts,  conduct  or omissions occurring  at any time prior  to  or at the time the Company signs this  Release  (the "Company Released  Claims");  provided,   however,  that  this Release shall not extend to: (1) any claims that may  arise out of any events,  acts, conduct  or omissions  occurring after this Release  is executed, including  without  limitation,  any  claims for breach  of the Agreement;  (2) any claims arising  at any time out of Executive's  obligations to protect the Company's proprietary information, including without limitation, any claims arising from Executive's obligations under his Information and Inventions Agreement and his Patent, Copyright and Nondisclosure Agreement, or common law claims arising from these obligations; or (3) any claims arising from any actions by Executive which were  intentional or amount to gross negligence during his employment with the Company which were outside of his authority as President & Chief 

15

EXECUTION COPY

Financial Officer or outside of the course and scope of his employment (the "Company Excluded  Claims").

The Company hereby represents and warrants that, other than the Company Excluded Claims, it is not aware of any claims it has or might have against Executive that are not included in the Company Released Claims.

3.    Additional  Agreements:

The parties hereby further agree as follows: (1) Executive agrees not to disparage the Company, its parent, or its or their officers, directors, employees, shareholders, affiliates and agents, in any manner likely to be harmful to its or their business, business reputation, or personal reputation, and the Company agrees not to, and agrees to instruct its executives, representatives and members of its Board of Directors not to, disparage Executive in any manner likely to be harmful to his business reputation or personal reputation (although the parties may respond accurately and fully to any question, inquiry or request for information as required by legal process); (2) not to voluntarily (except in response to legal compulsion) assist any third party in bringing or pursuing any proposed or pending litigation, arbitration, administrative claim or other formal proceeding against the other party, or against the Released Parties; and (3) to reasonably cooperate with the other party, by voluntarily (without legal compulsion) providing accurate and complete information, in connection with such other party's actual or contemplated defense, prosecution, or investigation of any claims or demands by or against third parties, or other matters, arising from events, acts, or failures to act that occurred during the period of Executive's employment by the Company.

[Signature Page Follows]

16

EXECUTION COPY

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

ENDOCHOICE HOLDINGS, INC.

By:    
Name:  
Title:  

EXECUTIVE

    
David Gill

17Exhibit 10.1

 

THIRD AMENDMENT TO FIFTH
 AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of March 18, 2016 (the “Third Amendment Closing Date”) among USA COMPRESSION PARTNERS, LP, a Delaware limited partnership (“Holdings”), USA COMPRESSION PARTNERS, LLC, a Delaware limited liability company (“USA Compression Partners”), USAC LEASING, LLC, a Delaware limited liability company (“USAC Leasing”), USAC OPCO 2, LLC, a Texas limited liability company (“USAC OpCo 2”) and USAC LEASING 2, LLC, a Texas limited liability company (“USAC Leasing 2” and together with USA Compression Partners, USAC Leasing and USAC OpCo 2, jointly and severally, the “Borrower”); and JPMORGAN CHASE BANK, N.A., a national banking association, for itself, as an LC Issuer and Lender, and as agent for Lenders (in such capacity, the “Agent”) and the other Lenders signatory hereto.

 

RECITALS:

 

WHEREAS, Holdings, each Borrower, Agent and Lenders are parties to that certain Fifth Amended and Restated Credit Agreement dated as of December 13, 2013 (as amended from time to time, prior to the date hereof, including, without limitation, pursuant to (i) that certain Limited Consent, Amendment and Subordination letter agreement among Holdings, the Borrower, the Agent and the Lenders signatory thereto and (ii) that certain Second Amendment dated January 6, 2015 among Holdings, the Borrower, the Agent and the Lenders signatory thereto, the “Credit Agreement”); and

 

WHEREAS, the parties desire to amend the Credit Agreement as further set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and the agreements, promises and covenants set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1:  Definitions.  Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meaning as in the Credit Agreement, as amended hereby.

 

SECTION 2:  Amendments to Credit Agreement.

 

(a)           Amendments to Article I of the Credit Agreement.  Effective as of the Third Amendment Closing Date, the following defined term in Article I of the Credit Agreement is hereby amended and restated to read as follows:

 

““Fee Letter” means, collectively, (a) that certain Fee Letter, dated as of December 13, 2013, by and among Borrower and Agent, (b) that certain Fee Letter, dated as of December 12, 2014, by and among the Loan Parties and Agent, and (c) that certain Fee Letter, dated as of March 18, 2016, by and among the Loan Parties and Agent, in each case, as the same may be further amended, restated or otherwise modified from time to time.”

 

 

(b)           Amendments to Article I of the Credit Agreement.  Effective as of the Third Amendment Closing Date, the definition of “Defaulting Lender” in Article I of the Credit Agreement is hereby amended by replacing the word “or” at the end of clause (d) thereof with the text “,”, by replacing the period at the end of clause (e) with the word “or”, and by inserting the following text as a new clause (f) at the end thereof:

 

“(f) become the subject of a Bail-In Action or has a direct or indirect parent company that has become the subject of a Bail-In Action.”

 

(c)           Amendments to Article I of the Credit Agreement.  Effective as of the Third Amendment Closing Date, the following defined terms are added to Article I of the Credit Agreement in alphabetical order:

 

““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 implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.”

 

““EEA Financial Institution” means (a) any institution 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 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 EEA Financial Institution.”

 

““EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.”

 

““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

 

2

 

applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.”

 

(d)           Addition of Section 5.34.  Effective as of the Third Amendment Closing Date, the following paragraph is hereby added to the Credit Agreement as Section 5.34 immediately following Section 5.33:

 

“SECTION 5.34. EEA Financial Institutions.   No Loan Party is an EEA Financial Institution.”

 

(e)           Amendment to Section 6.29.2 of the Credit Agreement.  Effective as of the Third Amendment Closing Date, the table set forth in Section 6.29.2 of the Credit Agreement is hereby amended and restated to read as follows:

 

	
Fiscal Quarter Ending
    	
 
    	
Leverage Ratio
    
	
December 31, 2015
    	
 
    	
5.50 to 1.0
    
	
March 31, 2016
    	
 
    	
5.50 to 1.0
    
	
June 30, 2016
    	
 
    	
5.95 to 1.0
    
	
September 30, 2016
    	
 
    	
5.95 to 1.0
    
	
December 31, 2016
    	
 
    	
5.75 to 1.0
    
	
March 31, 2017
    	
 
    	
5.50 to 1.0
    
	
June 30, 2017
    	
 
    	
5.50 to 1.0
    
	
September 30, 2017
    	
 
    	
5.25 to 1.0
    
	
December 31, 2017
    	
 
    	
5.25 to 1.0
    
	
March 31, 2018, and each Fiscal Quarter   thereafter
    	
 
    	
5.00 to 1.0
    

 

(f)            Addition of Section 9.15.  Effective as of the Third Amendment Closing Date, the following paragraph is hereby added to the Credit Agreement as Section 9.15 immediately following Section 9.14:

 

“SECTION 9.15. Acknowledgment 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

 

3

 

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 entity, 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.

 

SECTION 3:  Representations and Warranties.  To induce Agent and Lenders to enter into this Amendment, each Loan Party represents and warrants that:

 

(a)           No Default.  After giving effect to this Amendment, no Default or Unmatured Default shall have occurred and be continuing as of the date hereof;

 

(b)           Representations and Warranties.  Both immediately before and immediately after giving effect to this Amendment and the transactions contemplated hereby, the representations and warranties of Loan Parties contained in the Loan Documents are true and correct in all material respects as of the Third Amendment Closing Date to the same extent as though made on and as of such date except to the extent such representations and warranties specifically relate to an earlier date;

 

(c)           Authorization and Validity.  Each Loan Party has the power and authority and legal right to execute and deliver this Amendment and to perform its obligations hereunder.  The execution and delivery by each Loan Party of this Amendment and the performance of its obligations hereunder have been duly authorized by proper proceedings, and this Amendment constitutes the legal, valid and binding obligation of such Loan Party enforceable against such Loan Party in accordance with the terms hereof, except as enforceability may be limited by

 

4

 

bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally; and

 

(d)           No Conflict; Government Consent.  Neither the execution and delivery by any Loan Party of this Amendment, nor the consummation of the transactions herein contemplated, nor compliance with the provisions hereof will violate (i) any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on such Loan Party, (ii) any Loan Party’s articles or certificate of incorporation, partnership agreement, certificate of partnership, articles or certificate of organization, by-laws, or operating or other management agreement, as the case may be, or (iii) the provisions of any material indenture, instrument or agreement to which any Loan Party is a party or is subject, or by which it, or its Property, is bound, or conflict with or constitute a default thereunder, or result in, or require, the creation or imposition of any Lien in, of or on the Property of such Loan Party pursuant to the terms of any such indenture, instrument or agreement.  No order, consent, adjudication, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by, or other action in respect of any governmental or public body or authority, or any subdivision thereof, which has not been obtained by a Loan Party, is required to be obtained by any Loan Party in connection with the execution and delivery of this Amendment, the performance of the obligations hereunder or the legality, validity, binding effect or enforceability hereof.

 

SECTION 4:  Conditions Precedent.  The effectiveness of this Amendment is subject to the following conditions precedent:

 

(a)           Documentation.  Agent shall have received each of the following, each in form and substance satisfactory to Agent, in its sole discretion, and, where applicable, each duly executed by each party thereto, other than Agent (each of which shall be deemed to constitute a “Loan Document” pursuant to the Credit Agreement):

 

(i)            this Amendment or counterparts hereof, as well as Schedules hereto; and

 

(ii)           such other documents, instruments, and agreements as the Agent, the LC Issuer, any Lender or their respective counsel may reasonably request in connection with the transactions contemplated by this Amendment and the other Loan Documents, each in form and substance reasonably satisfactory to the Agent.

 

(b)           Payment of Fees.  The Loan Parties shall have paid all of the fees and expenses owing to the Agent, the Arranger, the LC Issuer and the Lenders pursuant to Section 9.6(a) of the Credit Agreement, to the extent invoiced to the Borrower at least two (2) Business Days prior to the date hereof and pursuant to each Fee Letter.

 

(c)           No Default.  No Default or Unmatured Default under the Credit Agreement, as amended hereby, shall have occurred and be continuing.

 

(d)           Warranties and Representations.  Both immediately before and immediately after giving effect to this Amendment and the transactions contemplated hereby, the warranties and representations of Loan Parties contained in the Loan Documents shall be true 

 

5

 

and correct in all material respects as of the Third Amendment Closing Date (eliminating, for the purpose of this condition, the effect of materiality qualifications within representations and warranties that have a materiality qualification), with the same effect as though made on such date, except to the extent that such warranties and representations expressly relate to an earlier date, and all of such representations and warranties (except those relating to an earlier date) are hereby remade by Loan Parties as of the Third Amendment Closing Date.

 

SECTION 5:  No Waiver.  Nothing contained in this Amendment shall be construed as a waiver by Agent or any Lender of any covenant or provision of the Credit Agreement, the other Loan Documents, this Amendment, or of any other contract or instrument between any Loan Party and Agent and any Lender, and the failure of Agent or Lenders at any time or times hereafter to require strict performance by any Loan Party of any provision thereof shall not waive, affect or diminish any rights of Agent or Lenders to thereafter demand strict compliance therewith.  Agent and Lenders hereby reserve all rights granted under the Credit Agreement, the other Loan Documents, this Amendment and any other contract or instrument between any Loan Party and Agent or any Lender.

 

SECTION 6:  Acknowledgment of Amended and Restated Schedule 5.9.  Each of the Agent and the Lenders acknowledge receipt, pursuant to Section 5.9 of the Credit Agreement, on March 7, 2016 of the attached Schedule 5.9 which amended and restated Schedule 5.9 to the Credit Agreement as of such date.

 

SECTION 7:  Ratification; Reference to and Effect on Loan Documents.

 

(a)           Ratification.  Except as specifically amended above, the Credit Agreement and the other Loan Documents shall remain in full force and effect.  Notwithstanding anything contained herein, the terms of this Amendment are not intended to and do not effect a novation of the Credit Agreement or any other Loan Document.  Each of the Loan Parties hereby ratifies and reaffirms each of the terms and conditions of the Loan Documents to which it is a party and all of its obligations thereunder.  Each Loan Party confirms that all of its obligations under the Loan Documents (as amended by this Amendment) are in full force and effect and are performable in accordance with their respective terms without setoff, defense, counter-claim or claims in recoupment.  Each Loan Party further confirms that the term “Obligations”, as used in the Credit Agreement, shall include all Obligations of the Loan Parties under the Credit Agreement (as amended by this Amendment), any promissory notes issued under the Credit Agreement and each other Loan Document.  Each of the Loan Parties hereby agrees that all liens and security interests securing payment of the Obligations under the Credit Agreement and each of the other Loan Documents are hereby collectively renewed, ratified and brought forward as security for the payment and performance of the Obligations.

 

(b)           References.  Upon the effectiveness of this Amendment, each of the Loan Documents, including the Credit Agreement, and any and all other agreements, documents or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement, as amended hereby, are hereby amended so that any reference in such Loan Documents to the Credit Agreement shall mean a reference to the Credit Agreement, as amended hereby.

 

6

 

SECTION 8:  Miscellaneous.

 

(a)           Successors and Assigns.  This Amendment shall be binding on and shall inure to the benefit of Loan Parties, Agent, Lenders and their respective successors and assigns.

 

(b)           ENTIRE AGREEMENT.  THIS AMENDMENT CONSTITUTES THE ENTIRE AGREEMENT OF THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDES ALL OTHER UNDERSTANDINGS, ORAL OR WRITTEN, WITH RESPECT TO THE SUBJECT MATTER HEREOF.

 

(c)           Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

(d)           Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment 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 Amendment.

 

(e)           Counterparts.  This Amendment may be executed in any number of separate original counterparts (or telecopied or electronically transmitted counterparts with original execution copy to follow) and by the different parties on separate counterparts, each of which shall be deemed to be an original, but all of such counterparts shall together constitute one agreement.  Delivery of an executed counterpart of a signature page to this Amendment by telecopy or electronic transmission (e.g. “pdf” or “tif”) shall have the same effect as delivery of a manually executed counterpart of this Amendment.

 

(f)            Incorporation of Credit Agreement Provisions.  The provisions contained in Section 16.1 (Choice of Law), Section 16.2 (Consent to Jurisdiction), and Section 16.3 (Waiver of Jury Trial) of the Credit Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety.

 

(g)           RELEASE.  EACH LOAN PARTY HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE “OBLIGATIONS” (AS SUCH TERM IS DEFINED IN THE CREDIT AGREEMENT, AS AMENDED HEREBY) OR ANY KNOWN DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM AGENT OR LENDERS.  EACH LOAN PARTY HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES AGENT AND EACH LENDER, THEIR RESPECTIVE PREDECESSORS, OFFICERS, DIRECTORS, EMPLOYEES, AGENT, SUCCESSORS AND ASSIGNS, FROM ALL CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER KNOWN AS OF THE DATE HEREOF TO THE EXTENT RELATING TO THE “OBLIGATIONS” (AS

 

7

 

SUCH TERM IS DEFINED IN THE CREDIT AGREEMENT, AS AMENDED HEREBY), THE CREDIT AGREEMENT, THIS AMENDMENT OR ANY TRANSACTIONS CONTEMPLATED THEREBY WHETHER FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH SUCH LOAN PARTY MAY NOW HAVE AGAINST AGENT AND ANY LENDER, THEIR PREDECESSORS, OFFICERS, DIRECTORS, EMPLOYEES, AGENT, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY LOANS, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT, THIS AMENDMENT OR OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT, THE CREDIT AGREEMENT OR OTHER LOAN DOCUMENTS.

 

[Remainder of Page Intentionally Left Blank]

 

8

 

IN WITNESS WHEREOF, this Amendment has been executed on the date first written above, to be effective upon satisfaction of the conditions set forth herein.

 

	
 
    	
GUARANTOR:
    
	
 
    	
 
    
	
 
    	
USA COMPRESSION PARTNERS, LP,
    
	
 
    	
a Delaware limited   partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
USA Compression GP,   LLC,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Eric D. Long
    
	
 
    	
Name:
    	
Eric D. Long
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
USA COMPRESSION PARTNERS, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Eric D. Long
    
	
 
    	
Name:
    	
Eric D. Long
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
USAC LEASING, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Eric D. Long
    
	
 
    	
Name:
    	
Eric D. Long
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
USAC OPCO 2, LLC,
    
	
 
    	
a Texas limited   liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Eric D. Long
    
	
 
    	
Name:
    	
Eric D. Long
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
USAC LEASING 2, LLC,
    
	
 
    	
a Texas limited   liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Eric D. Long
    
	
 
    	
Name:
    	
Eric D. Long
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
AGENT:
    
	
 
    	
 
    
	
 
    	
JPMORGAN   CHASE BANK, N.A.,
    
	
 
    	
as   Agent
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   J. Devin Mock
    
	
 
    	
Name:   J. Devin Mock
    
	
 
    	
Title:   Authorized Officer
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
LENDERS:
    
	
 
    	
 
    
	
 
    	
JPMORGAN   CHASE BANK, N.A.,
    
	
 
    	
as   Lender, LC Issuer and Swingline Lender
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   J. Devin Mock
    
	
 
    	
Name:   J. Devin Mock
    
	
 
    	
Title:   Authorized Officer
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
WELLS   FARGO BANK, N.A.,
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   T. Alan Smith
    
	
 
    	
Name:   T. Alan Smith
    
	
 
    	
Title:   Managing Director
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
REGIONS   BANK,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Dennis M. Hansen
    
	
 
    	
Name:   Dennis M. Hansen
    
	
 
    	
Title:   Senior Vice President
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
UBS   AG, STAMFORD BRANCH,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Darlene Arias
    
	
 
    	
Name:   Darlene Arias
    
	
 
    	
Title:   Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Houssem Daly
    
	
 
    	
Name:   Houssem Daly
    
	
 
    	
Title:   Associate Director
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
THE   BANK OF NOVA SCOTIA,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Mark Sparrow
    
	
 
    	
Name:   Mark Sparrow
    
	
 
    	
Title:   Director
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
MUFG   UNION BANK, N.A.,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Christopher S. Calice
    
	
 
    	
Name:   Christopher S. Calice
    
	
 
    	
Title:   Vice President
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
BARCLAYS   BANK PLC,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Ronnie Glenn
    
	
 
    	
Name:   Ronnie Glenn
    
	
 
    	
Title:   Vice President
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
SUNTRUST   BANK,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Dan Clubb
    
	
 
    	
Name:   Dan Clubb
    
	
 
    	
Title:   Director
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
GOLDMAN   SACHS BANK USA,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Jerry Li
    
	
 
    	
Name:   Jerry Li
    
	
 
    	
Title:   Authorized Signatory
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
PNC   BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/ Brad   Miller
    
	
 
    	
Name:   Brad Miller
    
	
 
    	
Title:   Officer
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
COMERICA   BANK,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Bradley Kuhn
    
	
 
    	
Name:   Bradley Kuhn
    
	
 
    	
Title:   Assistant Vice President
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
SIEMENS   FINANCIAL SERVICES, INC.,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Jeffrey B. Iervese
    
	
 
    	
Name:   Jeffrey B. Iervese
    
	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   John Finore
    
	
 
    	
Name:   John Finore
    
	
 
    	
Title:   Vice President
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
CAPITAL   ONE NATIONAL ASSOCIATION
    
	
 
    	
(formerly   CAPITAL ONE BUSINESS CREDIT CORP.),
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Edward Behnen
    
	
 
    	
Name:   Edward Behnen
    
	
 
    	
Title:   Director
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
CIT   FINANCE LLC,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Michael A Robinson
    
	
 
    	
Name:   Michael A Robinson
    
	
 
    	
Title:   Vice President
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
 
    	
RAYMOND   JAMES BANK, N.A.,
    
	
 
    	
as   Lender,
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Scott G. Axelrod
    
	
 
    	
Name:   Scott G. Axelrod
    
	
 
    	
Title:   Senior Vice President
    

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

Schedule 5.9

 

Capitalization and Subsidiaries

 

USA Compression Partners, LP, a Delaware limited partnership

 

	
Capitalization:
    	
 
    	
22,651,057 Common Units owned by USA Compression   Holdings, LLC. 8,002,351 Common Units owned by Argonaut Private Equity,   L.L.C. and certain related parties (i.e. those parties who filed as a group   on Schedule 13D). 23,327,246 Common Units owned by other public investors.   100% of general partnership interests owned by USA Compression GP, LLC   (formerly R/C IV USA Compression Partners GP, LLC).
    
	
 
    	
 
    	
 
    
	
Office:
    	
 
    	
Austin, Texas
    
	
Organization:
    	
 
    	
Federal EIN: 75-2771546
    
	
 
    	
 
    	
Delaware Filing No.: 4992962
    
	
 
    	
 
    	
 
    
	
Subsidiaries:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
USA   Compression Partners, LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
Capitalization:
    	
 
    	
100% of membership interests owned beneficially and   of record by USA Compression Partners, LP
    
	
 
    	
 
    	
 
    
	
Office:
    	
 
    	
Austin, Texas
    
	
 
    	
 
    	
Previously, Dallas, Texas
    
	
 
    	
 
    	
 
    
	
Organization:
    	
 
    	
Federal EIN: 26-3932764
    
	
 
    	
 
    	
Delaware Filing No.: 4610999
    
	
 
    	
 
    	
 
    
	
USAC   Leasing, LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
Capitalization:
    	
 
    	
100% of membership interests owned beneficially and   of record by USA Compression Partners, LLC
    
	
 
    	
 
    	
 
    
	
Office:
    	
 
    	
Austin, Texas
    
	
 
    	
 
    	
 
    
	
Organization:
    	
 
    	
Federal EIN: 26-3447808
    
	
 
    	
 
    	
Delaware Filing No.: 4604415
    
	
 
    	
 
    	
 
    
	
USA   OpCo 2, LLC, a Texas limited liability company
    
	
 
    	
 
    	
 
    
	
Capitalization:
    	
 
    	
100% of membership interests owned beneficially and   of record by USA Compression Partners, LP
    
	
 
    	
 
    	
 
    
	
Office:
    	
 
    	
Austin, Texas
    
	
 
    	
 
    	
 
    
	
Organization:
    	
 
    	
Federal EIN: 46-3505858
    
	
 
    	
 
    	
Texas Filing No.: 801839110
    
	
 
    	
 
    	
 
    
	
USAC   Leasing 2, LLC, a Texas limited liability company
    
	
 
    	
 
    	
 
    
	
Capitalization:
    	
 
    	
100% of membership interests owned beneficially and   of record by USA OpCo 2, LLC
    
	
 
    	
 
    	
 
    
	
Office:
    	
 
    	
Austin, Texas
    
	
 
    	
 
    	
 
    
	
Organization:
    	
 
    	
Federal EIN: 90-1012891
    
	
 
    	
 
    	
Texas Filing No.: 801839107
    
	
 
    	
 
    	
 
    
	
USA   Compression Finance Corp., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
Capitalization:
    	
 
    	
100% of capital stock owned beneficially and of   record by USA Compression Partners, LP
    
	
 
    	
 
    	
 
    
	
Office:
    	
 
    	
Austin, Texas

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]