Document:

exv10w1

Exhibit 10.1

H&E EQUIPMENT SERVICES, INC.,

GREAT NORTHERN EQUIPMENT, INC.,

and

H&E EQUIPMENT SERVICES (CALIFORNIA), LLC

as Borrowers,

THE OTHER CREDIT PARTIES SIGNATORY HERETO,

as Credit Parties,

THE LENDERS SIGNATORY HERETO

FROM TIME TO TIME,

as Lenders

GENERAL ELECTRIC CAPITAL CORPORATION,

as Agent,

BANK OF AMERICA, N.A.,

as Co-Syndication Agent, Documentation Agent, Joint Lead Arranger and Joint Bookrunner

and

WELLS FARGO CAPITAL FINANCE, LLC,

as Co-Syndication Agent

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of July 29, 2010

•••

GE CAPITAL MARKETS, INC.,

as Joint Lead Arranger and Joint Bookrunner

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	1 AMOUNT AND TERMS OF CREDIT
	 	 	2	 
	 
	 	 	 	 
	1.1 Credit Facilities
	 	 	2	 
	 
	 	 	 	 
	1.2 Letters of Credit
	 	 	7	 
	 
	 	 	 	 
	1.2A Swap Related Reimbursement Obligations
	 	 	7	 
	 
	 	 	 	 
	1.3 Prepayments
	 	 	8	 
	 
	 	 	 	 
	1.4 Use of Proceeds
	 	 	12	 
	 
	 	 	 	 
	1.5 Interest and Applicable Margins
	 	 	12	 
	 
	 	 	 	 
	1.6 Eligible Accounts
	 	 	16	 
	 
	 	 	 	 
	1.6A Eligible Rolling Stock
	 	 	19	 
	 
	 	 	 	 
	1.6B Eligible Rentals
	 	 	20	 
	 
	 	 	 	 
	1.7 Eligible Parts and Tools Inventory
	 	 	21	 
	 
	 	 	 	 
	1.7A Eligible Equipment Inventory
	 	 	23	 
	 
	 	 	 	 
	1.8 Cash Management Systems
	 	 	24	 
	 
	 	 	 	 
	1.9 Fees
	 	 	25	 
	 
	 	 	 	 
	1.10 Receipt of Payments
	 	 	26	 
	 
	 	 	 	 
	1.11 Application and Allocation of Payments
	 	 	26	 
	 
	 	 	 	 
	1.12 Loan Account and Accounting
	 	 	27	 
	 
	 	 	 	 
	1.13 Indemnity
	 	 	28	 
	 
	 	 	 	 
	1.14 Access
	 	 	29	 
	 
	 	 	 	 
	1.15 Taxes
	 	 	30	 
	 
	 	 	 	 
	1.16 Capital Adequacy; Increased Costs; Illegality
	 	 	32	 
	 
	 	 	 	 
	1.17 Single Loan
	 	 	34	 
	 
	 	 	 	 
	1.18 Increase of the Commitments
	 	 	34	 
	 
	 	 	 	 
	2 CONDITIONS PRECEDENT
	 	 	37	 
	 
	 	 	 	 
	2.1 Conditions to Amendment and Restatement and the Initial Loans
	 	 	37	 

- i -

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	Clause	 	Page	 
	2.2 Further Conditions to Each Loan
	 	 	38	 
	 
	 	 	 	 
	2.3 Effect of Amendment and Restatement
	 	 	39	 
	 
	 	 	 	 
	3 REPRESENTATIONS AND WARRANTIES
	 	 	41	 
	 
	 	 	 	 
	3.1 Corporate or Limited Liability Company Existence; Compliance with Law
	 	 	41	 
	 
	 	 	 	 
	3.2 Executive Offices; Collateral Locations; FEIN
	 	 	41	 
	 
	 	 	 	 
	3.3 Corporate or Limited Liability Company Power, Authorization,
Enforceable Obligations
	 	 	41	 
	 
	 	 	 	 
	3.4 Financial Statements and Projections
	 	 	42	 
	 
	 	 	 	 
	3.5 Material Adverse Effect
	 	 	43	 
	 
	 	 	 	 
	3.6 Ownership of Property; Liens
	 	 	43	 
	 
	 	 	 	 
	3.7 Labor Matters
	 	 	44	 
	 
	 	 	 	 
	3.8 Ventures, Subsidiaries and Affiliates; Outstanding Stock and Indebtedness
	 	 	44	 
	 
	 	 	 	 
	3.9 Government Regulation
	 	 	45	 
	 
	 	 	 	 
	3.10 Margin Regulations
	 	 	45	 
	 
	 	 	 	 
	3.11 Taxes
	 	 	45	 
	 
	 	 	 	 
	3.12 ERISA
	 	 	46	 
	 
	 	 	 	 
	3.13 No Litigation
	 	 	47	 
	 
	 	 	 	 
	3.14 Brokers
	 	 	47	 
	 
	 	 	 	 
	3.15 Intellectual Property
	 	 	47	 
	 
	 	 	 	 
	3.16 Full Disclosure
	 	 	48	 
	 
	 	 	 	 
	3.17 Environmental Matters
	 	 	48	 
	 
	 	 	 	 
	3.18 Insurance
	 	 	49	 
	 
	 	 	 	 
	3.19 Deposit and Disbursement Accounts
	 	 	49	 
	 
	 	 	 	 
	3.20 Government Contracts
	 	 	49	 
	 
	 	 	 	 
	3.21 Customer and Trade Relations
	 	 	49	 

- ii -

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	Clause	 	Page	 
	3.22 Agreements and Other Documents
	 	 	50	 
	 
	 	 	 	 
	3.23 Solvency
	 	 	50	 
	 
	 	 	 	 
	3.24 Titled Vehicles
	 	 	50	 
	 
	 	 	 	 
	3.25 Senior Unsecured Note Indenture
	 	 	51	 
	 
	 	 	 	 
	4 FINANCIAL STATEMENTS AND INFORMATION
	 	 	51	 
	 
	 	 	 	 
	4.1 Reports and Notices
	 	 	51	 
	 
	 	 	 	 
	4.2 Communication with Accountants
	 	 	51	 
	 
	 	 	 	 
	5 AFFIRMATIVE COVENANTS
	 	 	51	 
	 
	 	 	 	 
	5.1 Maintenance of Existence and Conduct of Business
	 	 	51	 
	 
	 	 	 	 
	5.2 Payment of Charges
	 	 	52	 
	 
	 	 	 	 
	5.3 Books and Records
	 	 	52	 
	 
	 	 	 	 
	5.4 Insurance; Damage to or Destruction of Collateral
	 	 	53	 
	 
	 	 	 	 
	5.5 Compliance with Laws
	 	 	54	 
	 
	 	 	 	 
	5.6 Supplemental Disclosure
	 	 	54	 
	 
	 	 	 	 
	5.7 Intellectual Property
	 	 	55	 
	 
	 	 	 	 
	5.8 Environmental Matters
	 	 	55	 
	 
	 	 	 	 
	5.9 Landlords’ Agreements, Mortgagee Agreements, Bailee Letters, Real
Estate Purchases and Vendor Inter-Creditor Agreements
	 	 	56	 
	 
	 	 	 	 
	5.10 Government Accounts
	 	 	57	 
	 
	 	 	 	 
	5.11 Further Assurances
	 	 	57	 
	 
	 	 	 	 
	6 NEGATIVE COVENANTS
	 	 	58	 
	 
	 	 	 	 
	6.1 Acquisitions, Subsidiaries, Etc.
	 	 	58	 
	 
	 	 	 	 
	6.2 Investments; Loans and Advances
	 	 	62	 
	 
	 	 	 	 
	6.3 Indebtedness
	 	 	63	 
	 
	 	 	 	 
	6.4 Employee Loans and Affiliate Transactions
	 	 	65	 

- iii -

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	Clause	 	Page	 
	6.5 Capital Structure and Business
	 	 	66	 
	 
	 	 	 	 
	6.6 Guaranteed Indebtedness
	 	 	66	 
	 
	 	 	 	 
	6.7 Liens
	 	 	66	 
	 
	 	 	 	 
	6.8 Disposition of Stock and Assets
	 	 	68	 
	 
	 	 	 	 
	6.9 ERISA
	 	 	69	 
	 
	 	 	 	 
	6.10 Financial Covenants
	 	 	69	 
	 
	 	 	 	 
	6.11 Hazardous Materials
	 	 	69	 
	 
	 	 	 	 
	6.12 Omitted
	 	 	69	 
	 
	 	 	 	 
	6.13 Cancellation of Indebtedness
	 	 	69	 
	 
	 	 	 	 
	6.14 Restricted Payments
	 	 	69	 
	 
	 	 	 	 
	6.15 Change of Name or Location; Change of Fiscal Year
	 	 	70	 
	 
	 	 	 	 
	6.16 No Impairment of Intercompany Transfers
	 	 	71	 
	 
	 	 	 	 
	6.17 No Speculative Transactions
	 	 	71	 
	 
	 	 	 	 
	6.18 Changes Relating to Senior Unsecured Notes; Subordinated Debt
Designation of Credit Facility
	 	 	71	 
	 
	 	 	 	 
	6.19 Changes in Depreciation Schedules
	 	 	71	 
	 
	 	 	 	 
	6.20 Credit Parties Other than Borrowers
	 	 	72	 
	 
	 	 	 	 
	6.21 Lock Box Remittances; Vendor Payments
	 	 	72	 
	 
	 	 	 	 
	7 TERM
	 	 	72	 
	 
	 	 	 	 
	7.1 Termination
	 	 	72	 
	 
	 	 	 	 
	7.2 Survival of Obligations Upon Termination of Financing Arrangements
	 	 	73	 
	 
	 	 	 	 
	8 EVENTS OF DEFAULT: RIGHTS AND REMEDIES
	 	 	73	 
	 
	 	 	 	 
	8.1 Events of Default
	 	 	73	 
	 
	 	 	 	 
	8.2 Remedies
	 	 	75	 
	 
	 	 	 	 
	8.3 Waivers by Credit Parties
	 	 	76	 

- iv -

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	Clause	 	Page	 
	9 ASSIGNMENT AND PARTICIPATIONS; APPOINTMENT OF AGENT
	 	 	76	 
	 
	 	 	 	 
	9.1 Assignments and Participations; Binding Effect
	 	 	76	 
	 
	 	 	 	 
	9.2 Appointment of Agent
	 	 	80	 
	 
	 	 	 	 
	9.3 Agent’s Reliance, Etc.
	 	 	81	 
	 
	 	 	 	 
	9.4 GE Capital and Affiliates
	 	 	81	 
	 
	 	 	 	 
	9.5 Lender Credit Decision
	 	 	82	 
	 
	 	 	 	 
	9.6 Indemnification
	 	 	82	 
	 
	 	 	 	 
	9.7 Successor Agent
	 	 	83	 
	 
	 	 	 	 
	9.8 Co Agents
	 	 	84	 
	 
	 	 	 	 
	9.9 Setoff and Sharing of Payments
	 	 	84	 
	 
	 	 	 	 
	9.10 Advances; Payments; Non Funding Lenders; Information; Actions in Concert
	 	 	85	 
	 
	 	 	 	 
	9.11 Release of Collateral or Guarantors
	 	 	90	 
	 
	 	 	 	 
	10 SUCCESSORS AND ASSIGNS
	 	 	91	 
	 
	 	 	 	 
	10.1 Successors and Assigns
	 	 	91	 
	 
	 	 	 	 
	11 MISCELLANEOUS
	 	 	91	 
	 
	 	 	 	 
	11.1 Complete Agreement; Modification of Agreement
	 	 	91	 
	 
	 	 	 	 
	11.2 Amendments and Waivers
	 	 	91	 
	 
	 	 	 	 
	11.3 Fees and Expenses
	 	 	94	 
	 
	 	 	 	 
	11.4 No Waiver
	 	 	95	 
	 
	 	 	 	 
	11.5 Remedies
	 	 	96	 
	 
	 	 	 	 
	11.6 Severability
	 	 	96	 
	 
	 	 	 	 
	11.7 Conflict of Terms
	 	 	96	 
	 
	 	 	 	 
	11.8 Non-Public Information; Confidentiality
	 	 	96	 
	 
	 	 	 	 
	11.9 GOVERNING LAW
	 	 	98	 

- v -

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	Clause	 	Page	 
	11.10 Notices
	 	 	99	 
	 
	 	 	 	 
	11.11 Electronic Transmissions
	 	 	100	 
	 
	 	 	 	 
	11.12 Section Titles
	 	 	102	 
	 
	 	 	 	 
	11.13 Counterparts
	 	 	102	 
	 
	 	 	 	 
	11.14 WAIVER OF JURY TRIAL
	 	 	102	 
	 
	 	 	 	 
	11.15 Omitted
	 	 	102	 
	 
	 	 	 	 
	11.16 Reinstatement
	 	 	102	 
	 
	 	 	 	 
	11.17 Advice of Counsel
	 	 	103	 
	 
	 	 	 	 
	11.18 No Strict Construction
	 	 	103	 
	 
	 	 	 	 
	11.19 Patriot Act
	 	 	103	 

- vi -

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	Clause	 	 	 	Page
	INDEX OF APPENDICES*
	 	 	 	 
	 
	 	 	 	 
	Exhibit 1.1(a)(i)

	 	-
	 	Form of Notice of Revolving Credit Advance
	 
	 	 	 	 
	Exhibit 1.1(a)(ii)

	 	-
	 	Form of Revolving Note
	 
	 	 	 	 
	Exhibit 1.1(b)(ii)

	 	-
	 	Form of Swing Line Note
	 
	 	 	 	 
	Exhibit 1.5(e)

	 	-
	 	Form of Notice of Conversion/Continuation
	 
	 	 	 	 
	Exhibit 4.1(b)

	 	-
	 	Form of Borrowing Base Certificate
	 
	 	 	 	 
	Exhibit 6.7(d)(iii)(A)

	 	-
	 	Form of Intercreditor Agreement (Floor Plan Inventory)
	 
	 	 	 	 
	Exhibit 6.7(d)(iii)(B)

	 	-
	 	Form of Intercreditor Agreement (Off Balance Sheet Inventory)
	 
	 	 	 	 
	Exhibit 9.1(a)

	 	-
	 	Form of Assignment Agreement
	 
	 	 	 	 
	Exhibit B-1(a)

	 	-
	 	Form of Notice of Issuance of Letter of Credit
	 
	 	 	 	 
	Exhibit D

	 	-
	 	Form of Guaranty and Security Agreement
	 
	 	 	 	 
	Schedule I

	 	-
	 	Original Letters of Credit
	 
	 	 	 	 
	Schedule 1.1

	 	-
	 	Responsible Individual
	 
	 	 	 	 
	Schedule 3.1

	 	-
	 	Corporate or Limited Liability Company Existence
	 
	 	 	 	 
	Schedule 3.2

	 	-
	 	Executive Offices; Collateral Locations; FEIN
	 
	 	 	 	 
	Schedule 3.6

	 	-
	 	Ownership of Property; Liens
	 
	 	 	 	 
	Schedule 3.7

	 	-
	 	Labor Matters
	 
	 	 	 	 
	Schedule 3.8

	 	-
	 	Ventures, Subsidiaries and Affiliates; Outstanding Stock and Indebtedness
	 
	 	 	 	 
	Schedule 3.11

	 	-
	 	Taxes
	 
	 	 	 	 
	Schedule 3.12

	 	-
	 	ERISA
	 
	 	 	 	 
	Schedule 3.13

	 	-
	 	Litigation
	 
	 	 	 	 
	Schedule 3.15

	 	-
	 	Intellectual Property
	 
	 	 	 	 
	Schedule 3.17

	 	-
	 	Environmental Matters

- vii -

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	Clause*	 	 	 	Page
	Schedule 3.18

	 	-
	 	Insurance
	 
	 	 	 	 
	Schedule 3.19

	 	-
	 	Deposit and Disbursement Accounts
	 
	 	 	 	 
	Schedule 3.20

	 	-
	 	Government Contracts
	 
	 	 	 	 
	Schedule 3.22

	 	-
	 	Agreements and Other Documents
	 
	 	 	 	 
	Schedule 3.24

	 	-
	 	Titled Vehicles
	 
	 	 	 	 
	Schedule 5.1

	 	-
	 	Maintenance of Existence and Conduct of Business
	 
	 	 	 	 
	Schedule 6.2

	 	-
	 	Investments; Loans and Advances
	 
	 	 	 	 
	Schedule 6.3

	 	-
	 	Indebtedness
	 
	 	 	 	 
	Schedule 6.4(a)

	 	-
	 	Affiliate Transactions
	 
	 	 	 	 
	Schedule 6.4(b)

	 	-
	 	Employee Loans
	 
	 	 	 	 
	Schedule 6.6

	 	-
	 	Guaranteed Indebtedness
	 
	 	 	 	 
	Schedule 6.7

	 	-
	 	Liens
	 
	 	 	 	 
	Annex A (Recitals)

	 	-
	 	Definitions
	 
	 	 	 	 
	Annex B (Section 1.2)

	 	-
	 	Letters of Credit
	 
	 	 	 	 
	Annex C (Section 1.8)

	 	-
	 	Cash Management Systems
	 
	 	 	 	 
	Annex D (Section 2.2(a))

	 	-
	 	Closing Checklist
	 
	 	 	 	 
	Annex E (Section 4.1(a))

	 	-
	 	Financial Statements and Projections — Reporting
	 
	 	 	 	 
	Annex F (Section 4.1(b))

	 	-
	 	Collateral Reports
	 
	 	 	 	 
	Annex G (Section 6.10)

	 	-
	 	Financial Covenants
	 
	 	 	 	 
	Annex H (Section 9.10(a))

	 	-
	 	Lenders’ Wire Transfer Information
	 
	 	 	 	 
	Annex I (Section 11.10)

	 	-
	 	Notice Addresses
	 
	 	 	 	 
	Annex J (Commitments)

	 	-
	 	Commitments

	*	 	The exhibits, schedules and certain annexes  have not been included in this
filing because they are not material. The Registrant will furnish
supplementally a copy of any omitted exhibit or schedule or similar
attachment to the Securities and Exchange Commission upon request.

- viii -

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT, dated as of
July 29, 2010 (as amended,
supplemented, amended and restated or otherwise modified from time to time, this “Agreement”),
among H&E EQUIPMENT SERVICES, INC., a Delaware corporation (“H&E Delaware”), GREAT NORTHERN
EQUIPMENT, INC., a Montana corporation (“Great Northern”), H&E EQUIPMENT SERVICES (CALIFORNIA),
LLC, a Delaware limited liability company (“H&E California”, and together with H&E Delaware and
Great Northern, each a “Borrower” and collectively and jointly and severally, the “Borrowers”), the
other Credit Parties signatory hereto, GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation
(in its individual capacity, “GE Capital”), for itself as Lender, as Agent for the Lenders and the
other Lenders signatory hereto from time to time, BANK OF AMERICA,
N.A., as Co-Syndication Agent
and Documentation Agent, and WELLS FARGO CAPITAL FINANCE, LLC, as Co-Syndication Agent.

WHEREAS:

     (A) GE Capital (as successor in interest to General Electric Capital Corporation), the other
Lenders named therein (collectively, the “Original Lenders”), Credit Parties and Agent are parties
to a Second Amended and Restated Credit Agreement, dated as of September 1, 2007 (as heretofore
amended, supplemented or modified, the “Original Credit Agreement”);

     (B) Borrowers have requested that Original Lenders amend and restate the Original Credit
Agreement to modify the Original Credit Agreement in certain respects and, subject to the terms and
conditions hereof, Lenders and Agent are willing to do so;

     (C) Credit Parties have agreed to continue to secure all of their Obligations under the Loan
Documents with a security interest in and lien in favor of Agent, for the benefit of Agent and
Lenders, upon substantially all of their existing and after-acquired personal and real property
including a continuing Lien or mortgage on and security interest in all Collateral in which a Lien
or mortgage on or security interest was granted pursuant to the Loan Documents prior to the Closing
Date;

     (D) Credit Parties are willing to continue to guaranty all of the Obligations of Borrowers;
and

     (E) Capitalized terms used in this Agreement have the meanings ascribed to them in Annex
A and, for purposes of this Agreement and the other Loan Documents, the rules of construction
set forth in Annex A shall govern. All Annexes, Disclosures Schedules, Exhibits and other
attachments (collectively, “Appendices”) hereto, or expressly identified to this Agreement, are
incorporated herein by reference, and taken together with this Agreement, shall constitute but a
single agreement. These Recitals shall be construed as part of the Agreement.

NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE MUTUAL COVENANTS HEREINAFTER CONTAINED,
AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES HERETO AGREE AS FOLLOWS:

 

 

1 AMOUNT AND TERMS OF CREDIT

	1.1	 	Credit Facilities

	(a)	 	Revolving Credit Facility

	 	(i)	 	On the Closing Date, the Original Revolving Credit Advances (if
any) shall be continued as Revolving Credit Advances hereunder.

	 	(ii)	 	Subject to the terms and conditions hereof, each Revolving
Lender agrees to make available to Borrowers from time to time until the
Commitment Termination Date its Pro Rata Share of advances (each, a “Revolving
Credit Advance”). The Pro Rata Share of the Revolving Loan of any Revolving
Lender shall not at any time exceed its separate Revolving Loan Commitment.
The obligations of each Revolving Lender hereunder shall be several and not
joint. Until the Commitment Termination Date, each Borrower may borrow, repay
and reborrow under this Section 1.1(a); provided, that the amount of any
Revolving Credit Advance to be made to such Borrower at any time shall not
exceed Borrowing Availability of such Borrower at such time or cause the
Borrowing Availability of all Borrowers to be exceeded. Moreover, the sum of
the Revolving Loan and Swing Line Loan outstanding to any Borrower shall not
exceed at any time that Borrower’s separate Borrowing Base. Each Revolving
Credit Advance shall be made on notice by Borrower Representative on behalf of
the applicable Borrower to the representative of Agent identified in
Schedule 1.1 at the address specified therein. Any such notice must be
given no later than (1) noon (New York time) on the Business Day of the
proposed Revolving Credit Advance, in the case of an Index Rate Loan, or (2)
noon (New York time) on the date which is three (3) Business Days prior to the
proposed Revolving Credit Advance, in the case of a LIBOR Loan. Each such
notice (a “Notice of Revolving Credit Advance”) must be given in writing (by
telecopy or overnight courier) substantially in the form of Exhibit
1.1(a)(i), and shall include the information required in such Exhibit and
such other administrative information as may be reasonably required by Agent.
If any Borrower desires to have the Revolving Credit Advances bear interest by
reference to a LIBOR Rate, Borrower Representative must comply with Section
1.5(e).

	 	(iii)	 	Upon the request of any Revolving Lender, each Borrower shall
execute and deliver to such Revolving Lender a note to evidence the Revolving
Loan Commitment of that Revolving Lender. Each such note shall be in the
maximum principal amount of the Revolving Loan Commitment of the applicable
Revolving Lender, dated the Closing Date and substantially in the form of
Exhibit 1.1(a)(ii) (each as amended or replaced from time to time, a
“Revolving Note” and, collectively, the “Revolving Notes”). Each Revolving
Note shall

2

 

	 	 	 	represent the obligation of the applicable Borrower to pay the
amount of the applicable Revolving Lender’s Revolving Loan Commitment or, if
less, such Revolving Lender’s Pro Rata Share of the aggregate unpaid
principal amount of all Revolving Credit Advances to such Borrower together
with interest thereon as prescribed in Section 1.5. The entire unpaid
balance of the aggregate Revolving Loan and all other noncontingent
Obligations shall be immediately due and payable in full in immediately
available funds on the Commitment Termination Date. Without limitation of
the foregoing, in the event that any Original Lender holds an Original
Revolving Note and its Revolving Loan Commitment from and after the Closing
Date exceeds its Revolving Loan Commitment prior to the Closing Date, upon
request by such Original Lender, the applicable Borrower shall execute and
deliver a Revolving Note to evidence the increased Revolving Loan Commitment
and the Original Lender shall, upon receipt of such Revolving Note, return
to such Borrower the Original Revolving Note it so holds. Any Original
Revolving Note issued (and as such term was defined) prior to the Closing
Date shall in any event constitute a Revolving Note issued under this
Agreement and shall be entitled to all benefits hereof.

	 	(iv)	 	The Revolving Lenders, subject to the proviso set forth below,
hereby authorize Agent, for the account of the Revolving Lenders, to make or
permit to remain outstanding Revolving Loans to any Borrower in excess of its
Borrowing Base (any such excess Revolving Loan is herein referred to as an
“Overadvance”) to the extent that Agent, in its sole discretion, determines
that any such Overadvance is necessary or desirable (A) to preserve or protect
the Collateral, (B) to enhance the likelihood of repayment of the Obligations
or (C) to pay any other amount chargeable to the Borrowers pursuant to the
terms of this Agreement, including, without limitation, fees and expenses;
provided, however, that Agent may not cause Revolving Lenders to make, or
permit to remain outstanding, (A) aggregate Revolving Loans in excess of the
aggregate Revolving Loan Commitments of all Revolving Lenders less the sum of
outstanding Swing Line Loans plus the aggregate amount of Letter of Credit
Obligations or (B) an Overadvance in an aggregate amount in excess of 10% of
the aggregate Revolving Loan Commitments of all Revolving Lenders. If an
Overadvance is made, or permitted to remain outstanding, pursuant to the
preceding sentence, then all Revolving Lenders shall be bound to make, or
permit to remain outstanding, such Overadvance based upon their Pro Rata Shares
in accordance with the terms of this Agreement regardless of whether the
conditions to lending set forth in Section 2.2 have been met. Furthermore,
Requisite
Lenders may prospectively revoke Agent’s ability to make or permit
Overadvances by written notice to Agent. All Overadvances shall constitute
Index Rate Loans and shall bear interest at the Index Rate plus the
Applicable Revolver Index Margin and the default rate under Section 1.5(d).
Each

3

 

	 	 	 	Overadvance shall be repaid in full within thirty (30) days after the
date on which such Overadvance is made.

     (b) Swing Line Facility

	 	(i)	 	On the Closing Date, all Original Swing Line Advances (if any)
shall be continued as Swing Line Advances hereunder. Agent shall notify the
Swing Line Lender upon Agent’s receipt of any Notice of Revolving Credit
Advance. Subject to the terms and conditions hereof, the Swing Line Lender
may, in its discretion, make available from time to time until the Commitment
Termination Date advances (each, a “Swing Line Advance”) in accordance with any
such notice. The provisions of this Section 1.1(b) shall not relieve Revolving
Lenders of their obligations to make Revolving Credit Advances under Section
1.1(a); provided, that if the Swing Line Lender makes a Swing Line Advance
pursuant to any such notice, such Swing Line Advance shall be in lieu of any
Revolving Credit Advance that otherwise may be made by Revolving Credit Lenders
pursuant to such notice. The aggregate amount of Swing Line Advances
outstanding shall not exceed at any time the lesser of (A) the Swing Line
Commitment and (B) the lesser of (x) the Maximum Amount and (y) the Borrowing
Base in each case, less the outstanding balance of the Revolving Loan at such
time (“Swing Line Availability”). Moreover, the Swing Line Loan outstanding to
any Borrower shall not exceed at any time such Borrower’s separate Borrowing
Base less the Revolving Loan outstanding to such Borrower. Until the
Commitment Termination Date, each Borrower may from time to time borrow, repay
and reborrow under this Section 1.1(b). Each Swing Line Advance shall be made
on the day requested pursuant to a Notice of Revolving Credit Advance delivered
to Agent by Borrower Representative on behalf of the applicable Borrower
requesting a Swing Line Advance in accordance with Section 1.1(a). Any such
notice must be given no later than noon (New York time) on the Business Day of
the proposed Swing Line Advance. Unless the Swing Line Lender has received at
least one Business Day’s prior written notice from Requisite Lenders
instructing it not to make a Swing Line Advance, the Swing Line Lender shall,
notwithstanding the failure of any condition precedent set forth in Section
2.2, except in the case of a Prohibited Swing Line Advance, be entitled to fund
that Swing Line Advance, and to have each Revolving Lender make Revolving
Credit Advances in accordance with Section 1.1(b)(iii) or
purchase participating interests in accordance with Section 1.1(b)(iv).
Notwithstanding any other provision of this Agreement or the other Loan
Documents, the Swing Line Loan shall constitute an Index Rate Loan. Each
Borrower shall repay the aggregate outstanding principal amount of the Swing
Line Advances made to such Borrower upon demand therefor by Agent.

4

 

	 	(ii)	 	Upon the request of the Swing Line Lender, each Borrower shall
execute and deliver to the Swing Line Lender a promissory note to evidence the
Swing Line Commitment. If a promissory note is requested, each such note shall
be in the principal amount of the Swing Line Commitment of the Swing Line
Lender, dated the Closing Date and substantially in the form of Exhibit
1.1(b)(ii) (each as amended or replaced from time to time, a “Swing Line
Note” and, collectively, the “Swing Line Notes”). Each Swing Line Note shall
represent the obligation of such Borrower to pay the amount of the Swing Line
Commitment or, if less, the aggregate unpaid principal amount of all Swing Line
Advances made to such Borrower together with interest thereon as prescribed in
Section 1.5. The entire unpaid balance of the Swing Line Loan and all other
non contingent Obligations shall be immediately due and payable in full in
immediately available funds on the Commitment Termination Date if not sooner
paid in full. Any Swing Line Note issued (and as such term was defined) prior
to the Closing Date shall in any event constitute a Swing Line Note issued
under this Agreement.

	 	(iii)	 	The Swing Line Lender shall at any time and from time to time
in its sole and absolute discretion, but not less frequently than on each
Settlement Date on behalf of any Borrower (and each Borrower hereby irrevocably
authorizes the Swing Line Lender to so act on its behalf), request each
Revolving Lender (including the Swing Line Lender) to make a Revolving Credit
Advance to such Borrower (which shall be an Index Rate Loan) in an amount equal
to such Revolving Lender’s Pro Rata Share of the principal amount of such
Borrower’s Swing Line Loan (the “Refunded Swing Line Loan”) outstanding on the
date such notice is given. Unless any of the events described in Sections
8.1(h) or (i) has occurred (in which event the procedures of Section 1.1(b)(iv)
shall apply) and regardless of whether the conditions precedent set forth in
this Agreement to the making of a Revolving Credit Advance are then satisfied,
each Revolving Lender shall disburse directly to Agent, its Pro Rata Share of a
Revolving Credit Advance on behalf of the Swing Line Lender, prior to 3:00 p.m.
(New York time), in immediately available funds on the Business Day next
succeeding the date such notice is given. The proceeds of such Revolving
Credit Advances made to a Borrower shall be immediately paid to the Swing Line
Lender and applied to repay the Refunded Swing Line Loan of such Borrower.

	 	(iv)	 	If, prior to refunding a Swing Line Loan with a Revolving
Credit Advance pursuant to Section 1.1(b)(iii), one of the events described in
Sections 8.1(h) or (i) has occurred, then, subject to the provisions of Section
1.1(b)(v) below, each Revolving Lender shall, on the date such Revolving Credit
Advance was to have been made for the benefit of the applicable Borrower,
purchase from the Swing Line Lender an undivided participation interest in the
Swing Line Loan to such Borrower in an amount equal to its Pro Rata Share of
such Swing Line Loan.

5

 

	 	 	 	Upon request, each Revolving Lender shall promptly
transfer to the Swing Line Lender, in immediately available funds, the amount
of its participation interest.

	 	(v)	 	Each Revolving Lender’s obligation to make Revolving Credit
Advances in accordance with Section 1.1(b)(iii) and to purchase participation
interests in accordance with Section 1.1(b)(iv) 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
Lender may have against the Swing Line Lender, any Borrower or any other Person
for any reason whatsoever; (B) the occurrence or continuance of any Default or
Event of Default; (C) any inability of any Borrower to satisfy the conditions
precedent to borrowing set forth in this Agreement at any time; or (D) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing. If any Revolving Lender does not make available to Agent
or the Swing Line Lender, as applicable, the amount required pursuant to
Section 1.1(b)(iii) or 1.1(b)(iv), as the case may be, the Swing Line Lender
shall be entitled to recover such amount on demand from such Revolving Lender,
together with interest thereon for each day from the date of non-payment until
such amount is paid in full at the Federal Funds Rate for the first two (2)
Business Days and at the Index Rate thereafter.

     (c) Reliance on Notices; Appointment of Borrower Representative

	 	 	 	Agent shall be entitled to rely upon, and shall be fully protected in relying upon,
any Notice of Revolving Credit Advance, Notice of Conversion/Continuation or similar
notice believed by Agent to be genuine. Agent may assume that each Person executing
and delivering any such notice in accordance herewith was duly authorized, unless
the responsible individual acting thereon for Agent has actual knowledge to the
contrary. Each Borrower, and to the extent applicable, each other Credit Party,
hereby designates H&E Delaware as its representative and agent on its behalf for the
purposes of issuing Notices of Revolving Credit Advances and Notices of
Conversion/Continuation, giving instructions with respect to the disbursement of the
proceeds of the Loans, selecting interest rate options, requesting Letters of
Credit, giving and receiving all other notices and consents hereunder or under any
of the other Loan Documents and taking all other
actions (including in respect of compliance with covenants) on behalf of any Credit
Party or Credit Parties under the Loan Documents. Borrower Representative hereby
accepts such appointment. Agent and each Lender may regard any notice or other
communication pursuant to any Loan Document from Borrower Representative as a notice
or communication from all Credit Parties, and may give any notice or communication
required or permitted to be given to any Credit Party or Credit Parties hereunder
to Borrower Representative on behalf of such Credit Party or Credit Parties. Each
Credit Party agrees that each notice, election, representation and warranty,
covenant, agreement and undertaking made on its behalf by Borrower Representative

6

 

	 	 	 	shall be deemed for all purposes to have been made by such Credit Party and shall be
binding upon and enforceable against such Credit Party to the same extent as if the
same had been made directly by such Credit Party.

	1.2	 	Letters of Credit

	 	 	Subject to and in accordance with the terms and conditions contained herein and in Annex
B, Borrower Representative, on behalf of any Borrower, shall have the right to request,
and Revolving Lenders agree to incur, or purchase participations in, Letter of Credit
Obligations in respect of such Borrower. The parties hereto agree that all Original Letters
of Credit and Original Letter of Credit Obligations shall be deemed, respectively, Letters
of Credit and Letter of Credit Obligations issued or existing under and subject to and
governed by and entitled to the benefits of the terms of this Agreement.

	 	 	1.2A Swap Related Reimbursement Obligations

	 	(a)	 	Each Borrower agrees to reimburse GE Capital in immediately available funds
in the amount of any payment made by GE Capital under a Swap Related L/C (such
reimbursement obligation, whether contingent upon payment by GE Capital under the Swap
Related L/C or otherwise, being herein called a “Swap Related Reimbursement
Obligation”). No Swap Related Reimbursement Obligation for any Swap Related L/C
may exceed the amount of the payment obligations owed by any Borrower under the
interest rate protection or hedging agreement or transaction supported by the Swap
Related L/C. Any Swap Related L/C issued in connection with (and as such term is
defined in) the Original Credit Agreement shall constitute a Swap Related L/C issued
in connection with and subject to and governed by and entitled to the benefits of the
terms of this Agreement.

	 	(b)	 	A Swap Related Reimbursement Obligation shall be due and payable by any
applicable Borrower within one (1) Business Day after the date on which the related
payment is made by GE Capital under the Swap Related L/C.

	 	(c)	 	Any Swap Related Reimbursement Obligation shall, during the period in which
it is unpaid, bear interest at the rate per annum equal to the LIBOR Rate plus one
percent (1%), as if the unpaid amount of the Swap Related Reimbursement Obligation
were a LIBOR Loan, and not at any otherwise applicable Default Rate. Such interest
shall be payable upon demand. The following additional provisions apply to the
calculation and charging of interest on Swap Related Reimbursement Obligations by
reference to the LIBOR Rate:

     (i) The LIBOR Rate shall be determined for each successive one-month LIBOR
Period during which the Swap Related Reimbursement Obligation is unpaid,
notwithstanding the occurrence of any Event of Default and even if the LIBOR Period
were to extend beyond the Commitment Termination Date.

7

 

     (ii) If a Swap Related Reimbursement Obligation is paid during a monthly period
for which the LIBOR Rate is determined, interest shall be pro-rated and charged for
the portion of the monthly period during which the Swap Related Reimbursement
Obligation was unpaid. Section 1.13(b) shall not apply to any payment of a Swap
Related Reimbursement Obligation during the monthly period.

     (iii) Notwithstanding the last sentence of the definition of “LIBOR Rate”, if
the LIBOR Rate is no longer available from Reuters Screen LIBOR01 Page, the LIBOR
Rate with respect to Swap Related Reimbursement Obligations shall be determined by
GE Capital from such financial reporting service or other information available to
GE Capital as in GE Capital’s reasonable discretion indicates GE Capital’s cost of
funds.

	 	(d)	 	Except as provided in the foregoing provisions of this Section 1.2A and in
Section 11.3 no Borrower shall be obligated to pay to GE Capital or any of its
Affiliates any Letter of Credit Fee, or any other fees, charges or expenses, in
respect of a Swap Related L/C or arranging for any interest rate protection or hedging
agreement or transaction supported by the Swap Related L/C. GE Capital and its
Affiliates shall look to the beneficiary of a Swap Related L/C for payment of any such
letter of credit fees or other fees, charges or expenses and such beneficiary may
factor such fees, charges, or expenses into the pricing of any interest rate
protection or hedging arrangement or transaction supported by the Swap Related L/C.

	 	(e)	 	If any Swap Related L/C is revocable prior to its scheduled expiry date, GE
Capital agrees not to revoke the Swap Related L/C unless the Commitment Termination
Date or an Event of Default has occurred and is continuing.

	 	(f)	 	GE Capital or any of its Affiliates shall be permitted to (i) provide
confidential or other information furnished to it by any of the Credit Parties
(including, without limitation, copies of any documents and information in or referred
to in the Closing Checklist,
Financial Statements and Compliance Certificates) to a beneficiary or potential
beneficiary of a Swap Related L/C and (ii) receive confidential or other
information from the beneficiary or potential beneficiary relating to any agreement
or transaction supported or to be supported by the Swap Related L/C. However, no
confidential information shall be provided to any Person under this paragraph
unless the Person has agreed to comply with the covenant substantially as contained
in Section 11.8 of this Agreement.

	1.3	 	Prepayments

	 	(a)	 	Voluntary Prepayments; Reductions in Revolving Loan Commitments

	 	 	 	Any Borrower may at any time voluntarily prepay all or part of the Revolving Credit
Advances made to such Borrower at any time or from time to time without premium or
penalty, subject to Section 1.13(b)(i). Borrowers may at any time on at least ten
(10)

8

 

days’ prior written notice by Borrower Representative to Agent permanently
reduce (but not terminate) the Revolving Loan Commitment; provided, that (A) any
such reductions shall be in a minimum amount of $5,000,000 and integral multiples of
$250,000 in excess of such amount, (B) the Revolving Loan Commitment shall not be
reduced to an amount less than the amount of the Revolving Loan plus the Swingline
Loan then outstanding, and (C) after giving effect to such reductions, Borrowers
shall comply with Section 1.3(b)(i). In addition, Borrowers may at any time on at
least 10 days’ prior written notice by Borrower Representative to Agent terminate
the Revolving Loan Commitment; provided, that upon such termination, all Loans and
other Obligations shall be immediately due and payable in full and all Letter of
Credit Obligations shall be cash collateralized or otherwise satisfied in accordance
with Annex B. Any such payment resulting from termination of the Revolving
Loan Commitment must be accompanied by payment of all accrued and unpaid interest on
the Loans and other Obligations and any LIBOR funding breakage costs in accordance
with Section 1.13(b). Upon any such reduction or termination of the Revolving Loan
Commitment, each Borrower’s right to request Revolving Credit Advances, or request
that Letter of Credit Obligations be incurred on its behalf, or request Swing Line
Advances, shall simultaneously be permanently reduced or terminated, as the case may
be; provided, that a permanent reduction of the Revolving Loan Commitment shall not
require a corresponding pro rata reduction in the L/C Sublimit. Each notice of
partial prepayment shall designate the Borrower whose Revolving Credit Advances are
to be repaid and identify the particular Revolving Credit Advances to be repaid.

	 	(b)	 	Mandatory Prepayments

	 	(i)	 	Except as provided in Section 1.1(a)(iv), at any time the
aggregate outstanding balances of the Revolving Loan exceeds the lesser of (A)
the Maximum Amount less the aggregate outstanding Swing Line Loan at such time
and (B) the Aggregate Borrowing Base less the aggregate outstanding Swing Line
Loan at such time, Borrowers shall immediately repay the aggregate outstanding
Revolving Credit Advances to the extent required to eliminate such excess. If
any such excess remains after repayment in full of the aggregate outstanding
Revolving Credit Advances, Borrowers shall provide cash collateral for the
Letter of Credit Obligations in the manner set forth in Annex B to the
extent required to eliminate such excess. Furthermore, if, at any time, the
outstanding balance of the Revolving Loan to any Borrower exceeds such
Borrower’s separate Borrowing Base less the outstanding balance of the Swing
Line Loan to such Borrower, the applicable Borrower shall immediately repay its
Revolving Credit Advances in the amount of such excess (and, to the extent
necessary, provide cash collateral for its Letter of Credit Obligations as
described above).

	 	(ii)	 	Immediately upon receipt by any Credit Party of proceeds of any
asset disposition (excluding proceeds of dispositions of Equipment Inventory
and P&E 

9

 

	 	 	 	permitted by Section 6.8 having an aggregate Net Book Value in any one
Fiscal Year, not exceeding $500,000) or any sale of Stock of any Subsidiary of
such Credit Party, Borrowers shall prepay the Loans in an amount equal to all
such proceeds, net of (A) commissions and other reasonable and customary
transaction costs, fees and expenses properly attributable to such transaction
and payable by any Credit Party in connection therewith (in each case, paid to
non Affiliates), (B) amounts payable to holders of senior Liens (to the extent
such Liens constitute Permitted Encumbrances hereunder), if any, on the assets
so disposed, and (C) transfer taxes plus an appropriate reserve for income
taxes in accordance with GAAP in connection therewith (“Net Proceeds”). Any
such prepayment shall, subject to Section 1.3(b)(iv), be applied in accordance
with Section 1.3(c). Notwithstanding the foregoing and provided no Default or
Event of Default has occurred and is continuing, such prepayment shall not be
required to the extent such Credit Party reinvests the Net Proceeds of such
disposition in productive assets (other than Equipment Inventory and Parts and
Tools Inventory) of a kind then used or usable in the business of such Credit
Party, within one hundred eighty (180) days after the date of such disposition
or enters into a binding commitment thereof within said one hundred eighty
(180) day period and subsequently makes such reinvestment. Pending such
reinvestment, the Net Proceeds shall be delivered to the Agent and retained in
a cash collateral account established for that purpose and shall be available
for reinvestment so long as no Default or Event of Default is continuing.

	 	(iii)	 	If any Credit Party issues Stock or any Indebtedness (other
than Indebtedness permitted by Section 6.3) in excess of $1,000,000 in the
aggregate of such Stock and such Indebtedness, no later than the Business Day
following the date of receipt of the cash proceeds thereof, the issuing Credit
Party shall prepay the Loans in an amount equal to all such proceeds, net of
underwriting discounts and commissions and other reasonable costs and expenses
paid or payable to non Affiliates in connection therewith; provided, that no
such prepayment shall be required, so long as no Event of Default has occurred
and is continuing, from the proceeds of any issuance of Stock by a Credit Party
(i) to any director, officer or other employee of such Credit Party pursuant to
the stock incentive plan adopted by H&E Delaware prior to, and as in effect on,
the Closing Date, (ii) as consideration for any Person (other than any
Affiliate of a Credit Party) providing permitted Indebtedness under Section
6.3, (iii) to any other Credit Party, (iv) as consideration to any Person
(other than an Affiliate) selling assets or Stock in any Permitted Acquisition
or (v) if such proceeds are used within ninety (90) days after receipt thereof
to pay the consideration for a Permitted Acquisition. Any such prepayment
shall, subject to Section 1.3(b)(iv), be applied in accordance with Section
1.3(c).

10

 

	 	(iv)	 	In the event that Section 1.3(b)(i), (ii) or (iii) shall
require any prepayment to be made on a day other than an Interest Payment Date,
then upon receipt of such prepayment and to the extent requested by any
Borrower, Agent shall hold such amount as cash collateral (provided that the
Borrower delivering the same shall have executed and delivered such documents
as Agent shall have requested in connection with such cash collateral) and, so
long as no Default or Event of Default shall have occurred and be continuing,
shall not apply such cash collateral to the prepayment under the applicable
paragraph of this Section 1.3 until the next succeeding Interest Payment Date.
Such cash collateral shall be invested in Cash Equivalents as directed by such
Borrower in accordance with such documents. Interest earned on such cash
collateral shall accrue for the account of the Borrower providing the same,
shall constitute additional cash collateral and (assuming no Default or Event
of Default shall be continuing) shall be, to the extent remaining, applied to
such prepayment on such next succeeding Interest Payment Date.

	 	(c)	 	Application of Certain Mandatory Prepayments
	 
	 	 	 	Any prepayments made by any Borrower or Credit Party pursuant to Section 1.3(b)(ii)
or (iii) shall be applied as follows: first, to Fees and reimbursable expenses of
Agent then due and payable pursuant to any of the Loan Documents; second, to Fees
and any other fees and reimbursable expenses of Lenders then due and payable
pursuant to any of the Loan Documents; third, to interest then due and payable on
the Swing Line Loan; fourth, to the principal balance of the Swing Line Loan until
the same has been repaid in full; fifth, to interest then due and payable on the
Revolving Credit Advances; sixth, to the outstanding principal balance of the
Revolving Credit Advances until the same has been paid in full; seventh, to any
Letter of Credit Obligations, to provide cash collateral therefor in the manner set
forth in Annex B and last to any other Obligations. So long as no Event of
Default is outstanding, the Borrowers may direct that any such prepayments be
applied to Index Rate Loans to the extent outstanding, rather than LIBOR Loans.
Neither the Revolving Loan Commitment nor the Swing Line Commitment shall be
permanently reduced by the amount of any such prepayments; provided, that any
prepayment made by any Borrower pursuant to Section 1.3(b)(iii) in connection with
the issuance of Indebtedness shall also permanently reduce the Revolving Loan
Commitment by the amount of such prepayment.

	 	(d)	 	Application of Prepayments from Insurance and Condemnation Proceeds
	 
	 	 	 	Prepayments from insurance or condemnation proceeds in accordance with Section 5.4
shall be applied first to the Swing Line Loans and second to the Revolving Credit
Advances of the applicable Borrower. Neither the Revolving Loan Commitment nor the
Swing Line Loan Commitment shall be permanently reduced by the amount of any such
prepayments. So long as no Event of Default is outstanding, Borrower Representative

11

 

	 	 	 	may direct that any such prepayments be applied to Index Rate Loans to the extent
outstanding, rather than LIBOR Loans. Notwithstanding the foregoing and provided no
Default or Event of Default has occurred and is continuing, such prepayment shall
not be required to the extent such Credit Party reinvests such insurance or
condemnation proceeds in productive assets (other than Equipment Inventory) of a
kind then used or usable in the business of such Credit Party, within one hundred
eighty (180) days after the date of such disposition or enters into a binding
commitment thereof within said one hundred eighty (180) day period and subsequently
makes such reinvestment. Pending such reinvestment, such proceeds shall be
delivered to the Agent and retained in a cash collateral account established for
that purpose and shall be available for reinvestment so long as no Default or Event
of Default is continuing.

	 	(e)	 	No Implied Consent
	 
	 	 	 	Nothing in this Section 1.3 shall be construed to constitute Agent’s or any Lender’s
consent to any transaction referred to in Sections 1.3(b)(ii) and 1.3(b)(iii) which
is not permitted by other provisions of this Agreement or the other Loan Documents.

	1.4	 	Use of Proceeds

Borrowers shall utilize the proceeds of the Revolving Loan and the Swing Line Loan solely
for the financing of Borrowers’ ordinary working capital and general corporate needs and for
such purposes as permitted herein.

	1.5	 	Interest and Applicable Margins

	 	(a)	 	(i) Interest
	 
	 	 	 	Borrowers shall pay interest to Agent, for the ratable benefit of Lenders in
accordance with the various Revolving Credit Advances and Swing Line Loans being
made by each Lender, and in respect of all unreimbursed Letters of Credit
Obligations, in arrears on each applicable Interest Payment Date, at the following
rates: (A) with respect to the Revolving Credit Advances and unreimbursed Letter
of Credit Obligations and all other Obligations (other than LIBOR Loans and Swing
Line Loans), the Index Rate plus the Applicable Revolver Index Margin per annum or,
at the election of Borrower Representative, the applicable LIBOR Rate plus the
Applicable Revolver LIBOR Margin; and (B) with respect to the Swing Line Loan, the
Index Rate plus the Applicable Revolver Index Margin per annum.

	 	(ii)	 	Applicable Margins

	 	(A)	 	The Applicable Margins on a per annum basis
shall, until (and excluding) the Closing Date, be the respective rates
provided in the Original Credit Agreement.

12

 

	 	(B)	 	The Applicable Margins on a per annum basis for
the period beginning on the Closing Date and ending on the date
Financial Statements in
respect of the Fiscal Quarter ending September 30, 2010 are required
to be delivered hereunder, or are actually delivered hereunder,
whichever is earlier, are as follows:

	 	 	 	 	 

	Applicable Revolver Index Margin
	 	 	1.75	%
	 
	 	 	 	 
	Applicable Revolver LIBOR Margin
	 	 	2.75	%
	 
	 	 	 	 
	Applicable L/C Margin
	 	 	2.75	%
	 
	 	 	 	 
	Applicable Unused Line Fee Margin
	 	 	0.50	%

	 	(C)	 	From and after the date the Financial
Statements in respect of the Fiscal Quarter ending September 30, 2010
are required to be delivered hereunder, or are actually delivered
hereunder, whichever is earlier, the Applicable Margins (other than the
Applicable Unused Line Fee Margin, which shall remain at 0.50% for the
term of this Agreement and shall not be adjusted) shall be adjusted (up
or down) on a quarterly basis based on the Leverage Ratio of H&E
Delaware and its Subsidiaries as of the last day of the most recent
Fiscal Quarter then ended (as reflected in the quarterly unaudited
Financial Statements required to be delivered hereunder). Each such
adjustment in the Applicable Margins shall be effective as of the first
day of the Fiscal Quarter next succeeding the date of delivery to Agent
and Lenders of the quarterly unaudited Financial Statements truthfully
and accurately evidencing the need for an adjustment (the Agent
reserving the right to challenge any such Financial Statements or
certificate provided below and make any prospective or retroactive
claim for any interest that would have accrued but for any inaccuracy
of any such evidence or certificate, and Borrowers shall be liable for
any such claim). Concurrently with the delivery of those Financial
Statements, Borrower Representative shall deliver to Agent and Lenders
a certificate, signed by its chief financial officer, setting forth in
reasonable detail the basis for the continuance of, or any change in,
the Applicable Margins (other than the Applicable Unused Line Fee
Margin). Failure to timely deliver such Financial Statements shall, in
addition to any other remedy provided for in this Agreement, result in
an increase in the Applicable Margins (other than the Applicable Unused
Line Fee Margin) to the highest levels set forth in the grid appearing
below, until the first day of the first Fiscal Quarter following the
delivery of those Financial Statements demonstrating that such an
increase is not required. If any Default or an Event of Default has
occurred and is 

13

 

	 	 	 	continuing at the time any reduction in the Applicable
Margins (other than the Applicable Unused Line Fee Margin) is to be
implemented, that reduction shall be deferred until the first day of
the first Fiscal Quarter
following the date on which all Defaults or Events of Default are
waived or cured.

Adjustments in the Applicable Margins (other than the Applicable
Unused Line Fee Margin) will be determined by reference to the
following grid:

	 	 	 
	If Leverage Ratio is:	 	Level of Applicable Margins:
	<2.50 to 1.00

	 	Level I
	 
	 	 
	<3.50
to 1.00 but ≥ 2.50 to 1.00

	 	Level II
	 
	 	 
	<4.50 to 1.00 but ≥ 3.50 to 1.00

	 	Level III
	 
	 	 
	≥ 4.50 to 1.00

	 	Level IV

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Applicable Margins	 
	 	 	Level I	 	 	Level II	 	 	Level III	 	 	Level IV	 
	Applicable
Revolver Index Margin
	 	 	1.50	%	 	 	1.75	%	 	 	2.00	%	 	 	2.25	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable
Revolver LIBOR Margin
	 	 	2.50	%	 	 	2.75	%	 	 	3.00	%	 	 	3.25	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable L/C Margin
	 	 	2.50	%	 	 	2.75	%	 	 	3.00	%	 	 	3.25	%

	 	(b)	 	If any payment on any Loan becomes due and payable on a day other than a
Business Day, the maturity thereof will be extended to the next succeeding Business
Day (except 

14

 

	 	 	 	as set forth in the definition of LIBOR Period) and, with respect to
payments of principal, interest thereon shall be payable at the then applicable rate
during such extension.

	 	(c)	 	All computations of Fees calculated on a per annum basis and interest shall
be made by Agent on the basis of a three hundred sixty (360) day year, in each case
for the actual number of days occurring in the period for which such interest and Fees
are payable. The Index Rate is a floating rate determined for each day. Each
determination by Agent of an interest rate and Fees hereunder shall be final, binding
and conclusive on Borrowers, absent manifest error.
	 
	 	(d)	 	So long as an Event of Default has occurred and is continuing, and at the
election of Agent (or upon the written request of Requisite Lenders) confirmed by
written notice from Agent to Borrower Representative, the interest rates applicable to
the Loans and the Letter of Credit Fees shall be increased by two percentage points
(2%) per annum above the rates of interest or the rate of such Fees otherwise
applicable hereunder (“Default Rate”), and all outstanding Obligations shall bear
interest at the Default Rate applicable to such Obligations. Interest and Letter of
Credit Fees at the Default Rate shall accrue from the initial date of such Event of
Default until that Event of Default is cured or waived and shall be payable upon
demand.
	 
	 	(e)	 	So long as no Event of Default has occurred and is continuing, Borrower
Representative shall have the option to (i) request that any Revolving Credit Advance
be made as a LIBOR Loan, (ii) convert at any time all or any part of outstanding Loans
(other than the Swing Line Loan) from Index Rate Loans to LIBOR Loans, (iii) convert
any LIBOR Loan to an Index Rate Loan, subject to payment of LIBOR breakage costs in
accordance with Section 1.13(b) if such conversion is made prior to the expiration of
the LIBOR Period applicable thereto, or (iv) continue all or any portion of any Loan
(other than the Swing Line Loan) as a LIBOR Loan upon the expiration of the applicable
LIBOR Period and the succeeding LIBOR Period of that continued Loan shall commence on
the first day after the last day of the LIBOR Period of the Loan to be continued. Any
Loan or group of Loans having the same proposed LIBOR Period to be made or continued
as, or converted into, a LIBOR Loan must be in a minimum amount of $1,000,000 and
integral multiples of $100,000 in excess of such amount. Any such election must be
made by noon (New York time) on the third (3rd) Business Day prior to (1) the date of
any proposed Advance which is to bear interest at the LIBOR Rate, (2) the end of each
LIBOR Period with respect to any LIBOR Loans to be continued as such, or (3) the date
on which the applicable Borrower wishes to convert any Index Rate Loan to a LIBOR Loan
for a LIBOR Period designated by Borrower Representative in such election. If no
election is received with respect to a LIBOR Loan by noon (New York time) on the third
(3rd) Business Day prior to the end of the LIBOR Period with respect thereto (or if an
Event of Default has occurred and is continuing), that LIBOR Loan shall be converted
to an Index Rate Loan at the end of its LIBOR Period.

15

 

	 	 	 	Borrower Representative must
make such election by notice to Agent in writing, by telecopy or overnight courier.
In the case of any conversion or continuation, such election must be made pursuant to
a written notice (a “Notice of Conversion/Continuation”) in the form of Exhibit
1.5(e).

	 	(f)	 	Notwithstanding anything to the contrary set forth in this Section 1.5, if a
court of competent jurisdiction determines in a final order that the rate of interest
payable hereunder exceeds the highest rate of interest permissible under law (the
“Maximum Lawful Rate”), then so long as the Maximum Lawful Rate would be so exceeded,
the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate;
provided, that if at any time thereafter the rate of interest payable hereunder is
less than the Maximum Lawful Rate, Borrowers shall continue to pay interest hereunder
at the Maximum Lawful Rate until such time as the total interest received by Agent, on
behalf of Lenders, is equal to the total interest that would have been received had
the interest rate payable hereunder been (but for the operation of this paragraph) the
interest rate payable since the Closing Date as otherwise provided in this Agreement.
Thereafter, interest hereunder shall be paid at the rate(s) of interest and in the
manner provided in Sections 1.5(a) through (d) above, unless and until the rate of
interest again exceeds the Maximum Lawful Rate, and at that time this paragraph shall
again apply. In no event shall the total interest received by any Lender pursuant to
the terms hereof exceed the amount that such Lender could lawfully have received had
the interest due hereunder been calculated for the full term hereof at the Maximum
Lawful Rate. If the Maximum Lawful Rate is calculated pursuant to this paragraph,
such interest shall be calculated at a daily rate equal to the Maximum Lawful Rate
divided by the number of days in the year in which such calculation is made. If,
notwithstanding the provisions of this Section 1.5(f), a court of competent
jurisdiction shall finally determine that a Lender has received interest hereunder in
excess of the Maximum Lawful Rate, Agent shall, to the extent permitted by applicable
law, promptly apply such excess in the order specified in Section 1.11 and thereafter
shall refund any excess to Borrowers or as a court of competent jurisdiction may
otherwise order.

	1.6	 	Eligible Accounts
	 
	 	 	All of the Accounts owned by any Borrower and reflected in the most recent Borrowing Base
Certificate delivered by such Borrower to Agent shall be “Eligible Accounts” for purposes of
this Agreement, except any Account to which any of the exclusionary criteria set forth below
applies. In addition, Agent reserves the right, at any time and from time to time after the
Closing Date, to adjust any of the criteria set forth below, to establish new criteria and
to adjust advance rates with respect to Eligible Accounts, in its reasonable credit judgment
exercised in good faith; provided, that (i) any increase of any advance rate above its
Original Advance Rate is subject to the approval of all Lenders and (ii) any adjustment by
Agent to any criterion set forth below that results in such criterion being less restrictive
than as in effect on the Closing Date shall be subject 

16

 

	 	 	to approval of Requisite Lenders.
Eligible Accounts shall not include any Account of any Borrower:

	 	(a)	 	which does not arise from the sale of goods or the performance of services by
such Borrower in the ordinary course of its business;
	 
	 	(b)	 	upon which (i) such Borrower’s right to receive payment is contingent upon
the fulfillment of any condition by such Borrower or (ii) such Borrower is not able to
bring suit or otherwise enforce its remedies against the Account Debtor through
judicial process;
	 
	 	(c)	 	to the extent that any defense, counterclaim, setoff or dispute is asserted
as to such Account;
	 
	 	(d)	 	if the Account represents a progress billing consisting of an invoice for
goods sold or used or services rendered pursuant to a contract under which the Account
Debtor’s obligation to pay that invoice is subject to such Borrower’s completion of
further performance under such contract;
	 
	 	(e)	 	that is not a true and correct statement of bona fide indebtedness incurred
in the amount of the Account for merchandise sold to or services rendered and accepted
by the applicable Account Debtor;
	 
	 	(f)	 	with respect to which an invoice, that is not unacceptable to Agent (in its
reasonable judgment) in form and substance, has not been sent to the applicable
Account Debtor;
	 
	 	(g)	 	(i) that is not owned by such Borrower or (ii) to the extent it is subject to
any right, claim, security interest or other interest of any other Person, other than
Liens in favor of Agent, on behalf of itself and Lenders, and other than Permitted
Liens;
	 
	 	(h)	 	that arises from a sale to any director, officer, other employee or Affiliate
of any Credit Party, or to any entity that has any common officer or director with any
Credit Party;
	 
	 	(i)	 	that is the obligation of an Account Debtor that is the United States or
Canadian government or a political subdivision thereof, or any state, county, province
or municipality or department, agency or instrumentality thereof unless Agent, in its
sole discretion, has agreed to the contrary in writing and such Borrower, if necessary
or desirable, has complied with the Federal Assignment of Claims Act of 1940, any
Canadian equivalent thereof, or any applicable state, county or municipal law
restricting assignment thereof, with respect to such obligation; provided, so long as
no Default or Event of Default shall have occurred and be continuing, Accounts
described in this Section 1.6(i) and identified to the Agent pursuant to Section 5.10
shall be deemed Eligible Accounts to the extent such Accounts in the aggregate
outstanding at any time do not exceed $1,500,000 and otherwise meet the eligibility
criteria set forth in this Section 1.6;

17

 

	 	(j)	 	that is the obligation of an Account Debtor located in a foreign country
other than Canada (excluding the provinces of Newfoundland, the Northwest Territories
and the Territory of Nunavut), unless payment thereof is assured by a letter of credit
assigned and delivered to Agent, reasonably satisfactory to Agent as to form, amount
and issuer;
	 
	 	(k)	 	to the extent such Borrower or any Subsidiary thereof is liable for goods
sold or services rendered by the applicable Account Debtor to such Borrower or any
Subsidiary thereof but only to the extent of the potential offset;
	 
	 	(l)	 	that arises with respect to goods that are delivered on a bill-and-hold,
cash-on-delivery basis or placed on consignment, guaranteed sale or other terms by
reason of which the payment by the Account Debtor is or may be conditional;
	 
	 	(m)	 	that is in default; provided, that, without limiting the generality of the
foregoing, an Account shall be deemed in default upon the occurrence of any of the
following:

	 	(i)	 	the Account is not paid within the earlier of: sixty (60) days
following its due date or ninety (90) days following its original invoice date;
	 
	 	(ii)	 	the Account Debtor obligated upon such Account suspends
business, makes a general assignment for the benefit of creditors or fails to
pay its debts generally as they come due; or
	 
	 	(iii)	 	a petition is filed by or against any Account Debtor obligated
upon such Account under any bankruptcy law or any other federal, state or
foreign (including any provincial) receivership, insolvency relief or other law
or laws for the relief of debtors;

	 	(n)	 	that is the obligation of an Account Debtor if fifty percent (50%) or more of
the Dollar amount of all Accounts owing by that Account Debtor are ineligible under
the other criteria set forth in paragraph (m) of this Section 1.6;
	 
	 	(o)	 	that is not subject to a first priority perfected Lien in favor of Agent, on
behalf of itself and Lenders;
	 
	 	(p)	 	as to which any of the representations or warranties in the Loan Documents
are untrue in any material respect (provided that no immaterial breach of any such
representation or warranty shall override any of the eligibility criteria set forth in
other clauses in this Section 1.6);
	 
	 	(q)	 	to the extent such Account is evidenced by a judgment;
	 
	 	(r)	 	to the extent such Account exceeds any credit limit established by Agent, in
its reasonable credit judgment;
	 
	 	(s)	 	that is payable in any currency other than Dollars; or

18

 

	 	(t)	 	that is otherwise unacceptable to Agent in its reasonable credit judgment.

	1.6A	 	Eligible Rolling Stock
	 
	 	 	All of the P&E owned by such Borrower and reflected in the most recent Borrowing Base
Certificate delivered by such Borrower to Agent shall be “Eligible Rolling Stock” for
purposes of this Agreement, except any P&E to which any of the exclusionary criteria set
forth below applies. In addition, Agent reserves the right, at any time and from time to
time after the Closing Date, to adjust any of the criteria set forth below, to establish new
criteria and to adjust advance rates with respect to Eligible Rolling Stock in its
reasonable credit judgment; provided, that (i) any increase of any advance rate above its
Original Advance Rate is subject to the approval of all Lenders and (ii) any adjustment by
Agent to any criterion set forth below that results in such criterion being less restrictive
than as in effect on the Closing Date shall be subject to approval of Requisite Lenders.
Eligible Rolling Stock shall not include any P&E of any Borrower:

	 	(a)	 	that is not owned by such Borrower free and clear of all Liens and rights of
any other person, except the Liens in favor of Agent, on behalf of itself and Lenders,
and the rights of a lessee pursuant to any permitted lease of such P&E or Permitted
Liens;
	 
	 	(b)	 	if such P&E (i) (except to the extent in use and not then being stored) is
not stored on premises owned, leased or rented by such Borrower and set forth in
Disclosure Schedule (3.2), or (ii) is stored at a leased location in respect
of which Agent has requested a landlord waiver, unless a reasonably satisfactory
landlord waiver has been delivered to Agent, provided that Agent may, treat any such
P&E at any such location as Eligible Rolling Stock and, in lieu of imposing the
exclusionary criterion in this paragraph (b) to such P&E, impose a Reserve (without
duplicating any Reserve established for other eligible collateral at such location as
a consequence of the failure to obtain such landlord’s waiver) in an amount not less
than six month’s rent for all such P&E stored at such location in respect of which
such a landlord waiver has not been delivered, or (iii) is stored with a bailee or
warehouseman unless a reasonably satisfactory, acknowledged bailee letter has been
received by Agent and Reserves reasonably satisfactory to Agent have been established
with respect thereto, (iv) is stored at an owned location subject to a mortgage in
favor of a lender other than Agent unless a reasonably satisfactory mortgagee waiver
requested by Agent has been delivered to Agent or (v) is anything other than
automotive equipment, a trailer, a truck, a forklift, a motor vehicle or other rolling
stock;
	 
	 	(c)	 	that is covered by a certificate of title unless the interest of Agent in the
P&E has been noted on such certificate of title in accordance with applicable law;
	 
	 	(d)	 	that is excess, obsolete or damaged;
	 
	 	(e)	 	that is held for sale or lease in the ordinary course of such Borrower’s
business;

19

 

	 	(f)	 	that is not subject to a first priority perfected Lien in favor of Agent on
behalf of itself and Lenders;
	 
	 	(g)	 	as to which any of the representations or warranties pertaining to P&E set
forth in the Loan Documents are untrue in any material respect (provided that no
immaterial breach
of any such representation or warranty shall override any of the eligibility
criteria set forth in other clauses in this Section 1.6A);
	 
	 	(h)	 	that is not covered by casualty insurance as to which Agent is listed as loss
payee in accordance with Section 5.4(c); or
	 
	 	(i)	 	that is otherwise unacceptable to Agent in its reasonable credit judgment.

	1.6B	 	Eligible Rentals
	 
	 	 	All of the Rentals of each Borrower and reflected in the most recent Borrowing Base
Certificate delivered by such Borrower to Agent shall be “Eligible Rentals” for purposes of
this Agreement, except any Rental to which any of the exclusionary criteria set forth below
applies. In addition, Agent reserves the right, at any time and from time to time after the
Closing Date to adjust any such criteria and to establish new criteria with respect to
Eligible Rentals in its reasonable credit judgment, provided, that (i) any increase of any
advance rate above its Original Advance Rate is subject to the approval of all Lenders and
(ii) any adjustment by Agent of any criteria set forth below that results in such criteria
being less restrictive than as in effect on the Closing Date shall be subject to the
approval of Requisite Lenders. Eligible Rentals shall not include any Rental of any
Borrower:

	 	(a)	 	that is not subject to a written lease agreement in form and substance reasonably acceptable to
Agent;
	 
	 	(b)	 	that is not subject to a first priority perfected security interest of Agent
on behalf of itself and Lenders, perfected by possession of all Chattel Paper related
to such Rental by possession or by the stamping of notice of Agent’s security interest
thereon;
	 
	 	(c)	 	that is not due within ninety (90) days of the applicable date of
determination;
	 
	 	(d)	 	upon which such Borrower is not able to bring suit or otherwise enforce its
remedies against the relevant lessee through judicial process;
	 
	 	(e)	 	(i) that is not owned by such Borrower, (ii) that is subject to any right,
claim, security interest or other interest of any other Person, other than Liens in
favor of Agent, on behalf of itself and Lenders, except Permitted Liens, or (iii) to
the extent that any counterclaim, dispute, offset or defense is asserted as to such
Rental;
	 
	 	(f)	 	that is the obligation of a lessee that is the United States or Canadian
government or a political subdivision thereof, or any state, county, province or
municipality or 

20

 

	 	 	 	department, agency or instrumentality thereof unless Agent, in its
sole discretion, has agreed to the contrary in writing and such Borrower, if necessary
or desirable, has complied with the Federal Assignment of Claims Act of 1940, and any
amendments thereto, its Canadian equivalent or any applicable state, county or
municipal law restricting assignment thereof, with respect to such obligation;

	 	(g)	 	that is the obligation of a lessee located in a foreign country other than
Canada (excluding the province of Newfoundland, the Northwest Territories and the
Territory of Nunavut), unless payment thereof is assured by a letter of credit,
reasonably satisfactory to Agent as to form, amount and issuer;
	 
	 	(h)	 	that is in default, or is due under a lease which is in default;
	 
	 	(i)	 	if any lessee obligated upon such Rental suspends business, makes a general
assignment for the benefit of creditors or fails to pay its debts generally as they
come due;
	 
	 	(j)	 	if any petition is filed by or against any lessee obligated upon such Rental
under any bankruptcy law or any other federal, state or foreign (including any
provincial) receivership, insolvency relief or other law or laws for the relief of
debtors;
	 
	 	(k)	 	that is the obligation of a lessee if fifty percent (50%) or more of the
Dollar amount of all Rentals owing by that lessee are ineligible under the other
criteria set forth in this Section 1.6B;
	 
	 	(l)	 	as to which any of the representations or warranties in the Loan Documents
are untrue in any material respect (provided that no immaterial breach of any such
representation or warranty shall override any of the eligibility criteria set forth in
other clauses in this Section 1.6B);
	 
	 	(m)	 	to the extent such Rental exceeds any credit limit established by Agent, in
its reasonable credit judgment;
	 
	 	(n)	 	that is payable in any currency other than Dollars; or
	 
	 	(o)	 	that is otherwise unacceptable to Agent in its reasonable credit judgment.

	1.7	 	Eligible Parts and Tools Inventory
	 
	 	 	All of the Parts and Tools Inventory owned by any Borrower and reflected in the most recent
Borrowing Base Certificate delivered by such Borrower to Agent shall be “Eligible Parts and
Tools Inventory” for purposes of this Agreement, except any Parts and Tools Inventory to
which any of the exclusionary criteria set forth below applies. In addition, Agent reserves
the right, at any time and from time to time after the Closing Date, to adjust any of the
criteria set forth below, to establish new criteria and to adjust advance rates with respect
to Eligible Parts and Tools Inventory in its reasonable credit judgment; provided, that (i)
any increase of any advance rate 

21

 

	 	 	above its Original Advance Rate is subject to the approval
of all Lenders and (ii) any adjustment by Agent to any criterion set forth below that
results in such criterion being less restrictive than as in effect on the Closing Date shall
be subject to approval of Requisite Lenders. Eligible Parts and Tools Inventory shall not
include any Parts and Tools Inventory of any Borrower:

	 	(a)	 	that (i) is not owned by such Borrower free and clear of all Liens and rights
of any other Person (including the rights of a purchaser that has made progress
payments and the
rights of a surety that has issued a bond to assure such Borrower’s performance
with respect to that Parts and Tools Inventory), except the Liens in favor of
Agent, on behalf of itself and Lenders, and Permitted Liens in favor of landlords
and bailees to the extent permitted in Section 5.9 hereof (subject to Reserves
established by Agent in accordance with Section 5.9 hereof);
	 
	 	(b)	 	(i) that is not located on premises owned, leased or rented by such Borrower
and set forth in Disclosure Schedule (3.2), or (ii) is stored at a leased
location in respect of which Agent has requested a landlord waiver, unless a
reasonably satisfactory landlord waiver has been delivered to Agent, provided that
Agent may, treat any such Parts and Tools Inventory at any such location as Eligible
Parts and Tools Inventory and, in lieu of imposing the exclusionary criterion in this
paragraph (b) to such Parts and Tools Inventory, impose a Reserve (without duplicating
any Reserve established for other eligible collateral at such location as a
consequence of the failure to obtain such landlord’s waiver) in an amount not less
than six month’s rent for all Parts and Tools Inventory stored at such location in
respect of which such a landlord waiver has not been delivered, or (iii) is stored
with a bailee or warehouseman unless a reasonably satisfactory, acknowledged bailee
letter has been received by Agent and Reserves reasonably satisfactory to Agent have
been established with respect thereto, or (iv) is located at an owned location subject
to a mortgage in favor of a lender other than Agent unless a reasonably satisfactory
mortgagee waiver requested by Agent has been delivered to Agent, or (v) is located at
any site if the aggregate book value of Parts and Tools Inventory at any such location
is less than $100,000;
	 
	 	(c)	 	that is placed on consignment or is in transit;
	 
	 	(d)	 	that is covered by a negotiable document of title, unless such document has
been delivered to Agent with all necessary endorsements, free and clear of all Liens
except those in favor of Agent and Lenders;
	 
	 	(e)	 	that is excess, obsolete, unsalable or damaged;
	 
	 	(f)	 	that consists of display items or packing or shipping materials,
manufacturing supplies or work-in-process Inventory;
	 
	 	(g)	 	that is not held for sale in the ordinary course of such Borrower’s business;

22

 

	 	(h)	 	that is not subject to a first priority perfected Lien in favor of Agent on
behalf of itself and Lenders;
	 
	 	(i)	 	as to which any of the representations or warranties pertaining to Parts and
Tools Inventory set forth in the Loan Documents are untrue in any material respect
(provided that no immaterial breach of any such representation or warranty shall
override any of the eligibility criteria set forth in other clauses in this Section
1.7);
	 
	 	(j)	 	that consists of Hazardous Materials or goods that can be transported or sold
only with licenses that are not readily available;
	 
	 	(k)	 	that is not covered by casualty insurance as to which Agent is listed as loss
payee in accordance with Section 5.4(c); or
	 
	 	(l)	 	that is otherwise unacceptable to Agent in its reasonable credit judgment.

	1.7A	 	Eligible Equipment Inventory
	 
	 	 	All of the Equipment Inventory owned by any Borrower and reflected in the most recent
Borrowing Base Certificate delivered by such Borrower to Agent shall be “Eligible Equipment
Inventory” for purposes of this Agreement, except any Equipment Inventory to which any of
the exclusionary criteria set forth below applies. In addition, Agent reserves the right,
at any time and from time to time after the Closing Date, to adjust any of the criteria set
forth below, to establish new criteria and to adjust advance rates with respect to Eligible
Equipment Inventory in its reasonable credit judgment; provided, that (i) any increase of
any advance rate above its Original Advance Rate is subject to the approval of all Lenders
and (ii) any adjustment by Agent to any criterion set forth below that results in such
criterion being less restrictive than as in effect on the Closing Date shall be subject to
approval of Requisite Lenders. Eligible Equipment Inventory shall not include any Equipment
Inventory of any Borrower:

	 	(a)	 	that is not owned by such Borrower free and clear of all Liens and rights of
any other person (including the rights of a purchaser that has made progress payments
and the rights of a surety that has issued a bond to assure such Borrower’s
performance with respect to that Equipment Inventory), except the Liens in favor of
Agent, on behalf of itself and Lenders, and the rights of a lessee pursuant to any
permitted lease of such Equipment Inventory or Permitted Liens;
	 
	 	(b)	 	that (i) except to the extent in the possession of a lessee or being
transported to or from a lessee) is not located on premises owned, leased or rented by
such Borrower and set forth in Disclosure Schedule (3.2), or (ii) is stored at
a leased location in respect of which Agent has requested a landlord waiver, unless a
reasonably satisfactory landlord waiver has been delivered to Agent, provided that
Agent may, treat any such Equipment Inventory stored at any such location as Eligible
Equipment Inventory and, in lieu of imposing the exclusionary criterion in this
paragraph (b) to such Equipment Inventory,

23

 

	 	 	 	impose a Reserve (without duplicating any Reserve established for other
eligible collateral at such location as a consequence of the failure to obtain such
landlord’s waiver) in an amount not less than six month’s rent for all Equipment
Inventory stored at such location in respect of which such a landlord waiver has not
been delivered, or (iii) is stored with a bailee or warehouseman unless a reasonably
satisfactory, acknowledged bailee letter has been received by Agent and Reserves
reasonably satisfactory to Agent have been established with respect thereto, or (iv)
is located at an owned location subject to a mortgage in favor of a lender other than
Agent unless a reasonably satisfactory mortgagee waiver requested by Agent has been
delivered to Agent, or (v) is leased to a lessee other than pursuant to a lease of
such Equipment Inventory entered into in the ordinary course of business or is not
located in the United States or Canada (excluding. the provinces of Newfoundland, the
Northwest Territories and the Territory of Nunavut);
	 
	 	(c)	 	that is placed on consignment;
	 
	 	(d)	 	that is covered by a negotiable document of title or a certificate of title
unless such negotiable document has been delivered to Agent with all necessary
endorsements free and clear of all Liens except those in favor of Agent and Lenders,
or where it is required to perfect the security interest of Agent in the Equipment
Inventory such certificate of title has been noted in such certificate of title in
accordance with applicable law;
	 
	 	(e)	 	that is obsolete, unsalable or damaged beyond repair;
	 
	 	(f)	 	that is not held for sale or lease in the ordinary course of such Borrower’s
business;
	 
	 	(g)	 	that is not subject to a first priority perfected Lien in favor of Agent on
behalf of itself and Lenders;
	 
	 	(h)	 	as to which any of the representations or warranties pertaining to Equipment
Inventory set forth in the Loan Documents are untrue in any material respect (provided
that no immaterial breach of any such representation or warranty shall override any of
the eligibility criteria set forth in other clauses in this Section 1.7A);
	 
	 	(i)	 	that is not covered by casualty insurance as to which Agent is listed as loss
payee in accordance with Section 5.4(c); or
	 
	 	(j)	 	that is otherwise unacceptable to Agent in its reasonable credit judgment.

	1.8	 	Cash Management Systems
	 
	 	 	On or prior to the Closing Date, Borrowers will establish and will maintain until the
Termination Date, the cash management systems described in Annex C (the “Cash
Management Systems”).

24

 

	1.9	 	Fees

	 	(a)	 	Borrowers shall pay to GE Capital, individually, the Fees specified in that
certain fee letter dated July 29, 2010 between H&E Delaware and GE Capital (the
“GE Capital Fee Letter”), at the times specified for payment therein which shall
include the annual Administrative Agent’s fee, which will be due and payable on the
Closing Date (but only to the extent provided in the GE Capital Fee Letter) and on
each anniversary thereof.
	 
	 	(b)	 	On the Closing Date, the Borrowers shall pay to Agent, for the pro rata
benefit of each Lender without offset, deduction or withholding of any kind, a fee in
an amount equal to seventy-five (75) basis points of such Lender’s Commitment as of
the Closing Date.
	 
	 	(c)	 	As additional compensation for the Revolving Lenders, Borrowers agree to pay
to Agent, for the ratable benefit of such Lenders, in arrears, on the first Business
Day of each month prior to the Commitment Termination Date and on the Commitment
Termination Date, a Fee for Borrowers’ non use of available funds in an amount equal
to the Applicable Unused Line Fee Margin per annum (calculated on the basis of a 360
day year for actual days elapsed) multiplied by the difference between (x) the Maximum
Amount (as it may be reduced from time to time) and (y) the average for the period of
the daily closing balances of the aggregate Revolving Loan and the Swing Line Loan
outstanding during the period for which such Fee is due.
	 
	 	(d)	 	As additional compensation for the Agent, Borrowers agree to pay to the L/C
Issuer with respect to any Letter of Credit, at the time such Letter of Credit is
issued or extended, a fronting fee in an amount equal twelve and one half (12.5) basis
points of the face amount of such Letter of Credit (which fronting fee shall be in
addition to any other fees, charges and expenses of the L/C Issuer in effect from time
to time in respect of the issuance, negotiation, acceptance, amendment, transfer and
payment of such Letter of Credit or otherwise payable pursuant to the application and
related documentation under which such Letter of Credit is issued and are in addition
to the Letter of Credit Fee payable as provided in Annex B).
	 
	 	(e)	 	Borrowers shall pay to Agent, for the ratable benefit of Revolving Lenders,
the Letter of Credit Fee as provided in Annex B.
	 
	 	(f)	 	In addition, and in addition to the costs of Equipment Inventory Appraisals,
P&E Appraisals and Inspections, Borrowers agree to pay to Agent, which are due and
payable as incurred, all out of pocket costs (including reasonable fees and expenses)
paid by Agent to third party auditors, or a fee of $900 per audit day per in-house
auditor, plus out of pocket expenses; provided, that Borrowers shall not be
required to pay such costs and expenses (unless an Event of Default or an Audit and
Appraisal Liquidity Event has occurred and is continuing) in relation to more than
two (2) audits

25

 

	 	 	 	in any year (such audit to be conducted, while no Event of Default
or Audit and Appraisal Liquidity Event is continuing, during an Inspection).

	1.10	 	Receipt of Payments
	 
	 	 	Each Borrower shall make each payment under this Agreement not later than 2:00 p.m. (New
York time) on the day when due in immediately available funds in Dollars to the Collection
Account. For purposes of computing interest and Fees and determining Borrowing Availability
as of any date, all payments shall be deemed received on the Business Day on which
immediately available funds therefor are received in the Collection Account prior to 2:00
p.m. New York time. Payments received after 2:00 p.m. New York time on any Business Day or
on a day that is not a Business Day shall be deemed to have been received on the following
Business Day.
	 
	1.11	 	Application and Allocation of Payments

	 	(a)	 	So long as no Event of Default has occurred and is continuing, (i) payments
consisting of proceeds of Accounts received in the ordinary course of business shall
be applied, first, to the Swing Line Loan and, second, to the Revolving Loan; (ii)
payments matching specific scheduled payments then due shall be applied to those
scheduled payments; (iii) voluntary prepayments shall be applied in accordance with
the provisions of Section 1.3(a); and (iv) mandatory prepayments shall be applied as
set forth in Sections 1.3(c) and 1.3(d). All payments and prepayments applied to a
particular Loan shall be applied ratably to the portion thereof held by each Lender as
determined by its Pro Rata Share. As to any other payment, and as to all payments
made when an Event of Default has occurred and is continuing or following the
Commitment Termination Date, payments shall be applied to amounts then due and payable
in the following order: (1) to Fees and Agent’s expenses
reimbursable hereunder and expenses of Lenders to the extent
reimbursable under Section 11.3; (2)
to interest on the Swing Line Loan; (3) to principal payments of the Swing Line Loan;
(4) to interest on the other Loans; (5) to principal payments of the other Loans and
to provide cash collateral for Letter of Credit Obligations in the manner described in
Annex B, ratably to the aggregate, combined principal balance of the other
Loans and outstanding Letter of Credit Obligations; (6) to interest on unpaid Swap
Related Reimbursement Obligations and unpaid swap obligations owing to Lenders other
than GE Capital or their Affiliates, ratably in proportion to the interest accrued as
to each unpaid Swap Related Reimbursement Obligation and unpaid swap obligation; (7)
to principal payments of unpaid Swap Related Reimbursement Obligations and unpaid swap
obligations owing to Lenders other than GE Capital or their Affiliates, ratably to the
aggregate principal balance of the unpaid Swap Related Reimbursement Obligations and
other unpaid swap obligations; and (8) to all other Obligations.
	 
	 	(b)	 	Agent is authorized to, and at its sole election may, charge to the Revolving
Loan balance on behalf of each Borrower and cause to be paid all Fees, expenses,
Charges,

26

 

	 	 	 	costs (including insurance premiums in accordance with Section 5.4(a)) and
interest and principal, other than principal of the Revolving Credit Advances, due and
owing by Borrowers under this Agreement or any of the other Loan Documents if and to
the extent Borrowers fail to pay promptly any such amounts as and when due, even if
the amount of such charges would exceed Borrowing Availability at such time or would
cause the aggregate balance of the Revolving Loan and the Swing Line Loan of any
Borrower to exceed such Borrower’s separate Borrowing Base after giving effect to such
charges or if such charges would cause the aggregate balance of the Revolving Loan and
Swing Line Loan to exceed the Aggregate Borrowing Base after giving effect to such
charges. At Agent’s option and to the extent permitted by law, any charges so made
shall constitute part of the Revolving Loan hereunder.

	1.12	 	Loan Account and Accounting

	 	(a)	 	Agent, on behalf of the Lenders, shall record on its books and records the
amount of each Loan made, the interest rate applicable, all payments of principal and
interest thereon and the principal balance thereof from time to time outstanding.
Agent shall deliver to the Borrower Representative on a monthly basis a loan statement
setting forth such record for the immediately preceding calendar month. Such record
shall, absent manifest error, be conclusive evidence of the amount of the Loans made
by the Lenders to the Borrowers and the interest and payments thereon. Any failure to
so record or any error in doing so, or any failure to deliver such loan statement
shall not, however, limit or otherwise affect the obligation of the Borrowers
hereunder (and under any Note) to pay any amount owing with respect to the Loans or
provide the basis for any claim against Agent.
	 
	 	(b)	 	Agent, acting as a non-fiduciary agent of the Borrowers solely for tax
purposes and solely with respect to the actions described in this Section 1.12(b),
shall establish and maintain at its address referred to in Annex I (or at such
other address as Agent may notify the Borrower Representative) (A) a record of
ownership (the “Register”) in which Agent agrees to register by book entry the
interests (including any rights to receive payment hereunder) of Agent, each Lender
and each L/C Issuer in the Revolving Loans, Swing Loans and Letter of Credit
Obligations, each of their obligations under this Agreement to participate in each
Loan, Letter of Credit and Letter of Credit Obligations, and any assignment of any
such interest, obligation or right and (B) accounts in the Register in accordance with
its usual practice in which it shall record (1) the names and addresses of the Lenders
and the L/C Issuers (and each change thereto pursuant to Sections 9.1 and 9.10(d)),
(2) the Commitments of each Lender, (3) the amount of each Loan and each funding of
any participation described in clause (A) above, and for LIBOR Loans, the LIBOR Period
applicable thereto, (4) the amount of any principal or interest due and payable or
paid, (5) the amount of the reimbursement
obligations owed to each L/C Issuer in respect of Letters of Credit and (6) any
other payment received by Agent from any Borrower and its application to the
Obligations.

27

 

	 	(c)	 	Notwithstanding anything to the contrary contained in this Agreement, the
Loans (including any Notes evidencing such Loans and, in the case of Revolving Loans,
the corresponding obligations to participate in Letter of Credit Obligations and Swing
Loans) and the reimbursement obligations in respect of Letters of Credit are
registered obligations, the right, title and interest of the Lenders and the L/C
Issuers and their assignees in and to such Loans or reimbursement obligations, as the
case may be, shall be transferable only upon notation of such transfer in the Register
and no assignment thereof shall be effective until recorded therein. This Section
1.12 and Section 9.1 shall be construed so that the Loans and reimbursement
obligations in respect of Letters of Credit are at all times maintained in “registered
form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code.
	 
	 	(d)	 	The Credit Parties, Agent, the Lenders and the L/C Issuers shall treat each
Person whose name is recorded in the Register as a Lender or L/C Issuer, as
applicable, for all purposes of this Agreement. Information contained in the Register
with respect to any Lender or any L/C Issuer shall be available for access by the
Borrower Representative, Agent, such Lender or such L/C Issuer during normal business
hours and from time to time upon at least one Business Day’s prior notice. No Lender
or L/C Issuer shall, in such capacity, have access to or be otherwise permitted to
review any information in the Register other than information with respect to such
Lender or L/C Issuer unless otherwise agreed by the Agent.

	1.13	 	Indemnity

	 	(a)	 	Each Credit Party shall jointly and severally indemnify and hold harmless
each of Agent, Arranger, Lenders and their respective Affiliates, and each such
Person’s respective officers, directors, employees, attorneys, agents and
representatives (each, an “Indemnified Person”), from and against any and all suits,
actions, proceedings, claims, damages, losses, liabilities and expenses (including
reasonable attorneys’ fees and disbursements and other costs of investigation or
defense, including those incurred upon any appeal) that may be instituted or asserted
against or incurred by any such Indemnified Person as the result of credit having been
extended, suspended or terminated under this Agreement and the other Loan Documents
and the administration of such credit, and in connection with or arising out of the
transactions contemplated hereunder and thereunder and any actions or failures to act
in connection therewith, including any and all Environmental Liabilities and legal
costs and expenses arising out of or incurred in connection with disputes between or
among any parties to any of the Loan Documents and including any contractual
obligation entered into in connection with any E-Systems or Electronic Transmissions
(collectively, “Indemnified Liabilities”); provided, that no Credit Party shall be
liable for any indemnification to an Indemnified Person to the extent that any such
suit, action, proceeding, claim, damage,
loss, liability or expense results solely from that Indemnified Person’s gross
negligence or willful misconduct. NO INDEMNIFIED PERSON SHALL BE RESPONSIBLE OR

28

 

	 	 	 	LIABLE TO ANY OTHER PARTY TO ANY LOAN DOCUMENT, ANY SUCCESSOR, ASSIGNEE OR THIRD
PARTY BENEFICIARY OF SUCH PERSON OR ANY OTHER PERSON ASSERTING CLAIMS DERIVATIVELY
THROUGH SUCH PARTY, FOR INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES
WHICH MAY BE ALLEGED AS A RESULT OF CREDIT HAVING BEEN EXTENDED, SUSPENDED OR
TERMINATED UNDER ANY LOAN DOCUMENT OR AS A RESULT OF ANY OTHER TRANSACTION
CONTEMPLATED HEREUNDER OR THEREUNDER.
	 
	 	(b)	 	To induce Lenders to provide the LIBOR Rate option on the terms provided
herein, if (i) any LIBOR Loans are repaid in whole or in part prior to the last day of
any applicable LIBOR Period (whether that repayment is made pursuant to any provision
of this Agreement or any other Loan Document or occurs as a the result of
acceleration, by operation of law or otherwise), subject to Section 1.3(b)(iv); (ii)
any Borrower shall default in payment when due of the principal amount of or interest
on any LIBOR Loan; (iii) any Borrower shall refuse to accept any borrowing of, or
shall request a termination of, any borrowing of, conversion into or continuation of,
LIBOR Loans after such Borrower has given notice requesting the same in accordance
herewith; or (iv) any Borrower shall fail to make any prepayment of a LIBOR Loan after
such Borrower has given a notice thereof in accordance herewith, then Borrowers shall
jointly and severally indemnify and hold harmless each Lender from and against all
losses, costs and expenses resulting from or arising from any of the foregoing. Such
indemnification shall include any loss (including loss of margin) or expense arising
from the reemployment of funds obtained by it or from fees payable to terminate
deposits from which such funds were obtained. For the purpose of calculating amounts
payable to a Lender under this subsection, each Lender shall be deemed to have
actually funded its relevant LIBOR Loan through the purchase of a deposit bearing
interest at the LIBOR Rate in an amount equal to the amount of that LIBOR Loan and
having a maturity comparable to the relevant LIBOR Period; provided, that each Lender
may fund each of its LIBOR Loans in any manner it sees fit, and the foregoing
assumption shall be utilized only for the calculation of amounts payable under this
subsection. This covenant shall survive the termination of this Agreement and the
payment of the Notes and all other amounts payable hereunder. As promptly as
practicable under the circumstances, each Lender shall provide Borrowers with its
written calculation of all amounts payable pursuant to this Section 1.13(b), and such
calculation shall be binding on the parties hereto unless Borrower Representative
shall object in writing within ten (10) Business Days of receipt thereof, specifying
the basis for such objection in detail.

	1.14	 	Access
	 
	 	 	Each Credit Party shall, during normal business hours, from time to time upon reasonable
advance notice as frequently as Agent reasonably determines to be appropriate: (a) provide
Agent and any of its officers, employees and agents access to its properties, facilities,
advisors

29

 

	 	 	and employees (including officers) of such Credit Party and to the Collateral, (b)
permit Agent, and any of its officers, employees and agents, to inspect, audit and make
extracts from such Credit Party’s books and records, and (c) permit Agent, and its officers,
employees and agents, to inspect, review, evaluate and make test verifications and counts of
the Accounts, Inventory and other Collateral of such Credit Party (clauses (a), (b) and (c)
collectively, “Inspections”). Borrowers agree to pay to Agent, which are due and payable as
incurred, all out of pocket costs (including fees and expenses) incurred by Agent in
relation to any Inspections, to the extent provided in Section 1.9 (with respect to any
Inspections performed in connection with audits) and the definitions of “Equipment Inventory
Appraisal” and “P&E Appraisal” (with respect to Inspections performed in connection with
Equipment Inventory Appraisals and P&E Appraisals, respectively). Borrowers’ obligation to
pay for Inspections is in addition to their obligation to pay for Equipment Inventory
Appraisals and P&E Appraisals. If an Event of Default has occurred and is continuing or if
action is necessary to preserve or protect the Collateral as determined by Agent, each
Credit Party shall provide such access to Agent and to each Lender at all times and without
advance notice. Furthermore, so long as any Event of Default has occurred and is
continuing, each Borrower shall provide Agent and each Lender with access to its suppliers
and customers. Each Credit Party shall make available to Agent and its counsel, as quickly
as is possible under the circumstances, originals or copies of all books and records that
Agent may reasonably request. Each Credit Party shall deliver any document or instrument
necessary for Agent, as it may from time to time reasonably request, to obtain records from
any service bureau or other Person that maintains records for such Credit Party, and shall
maintain duplicate records or supporting documentation on media consistent with reasonable
commercial standards, including computer tapes and discs owned by such Credit Party. Agent
will give Lenders at least five (5) days’ prior written notice of regularly scheduled
Inspections. Representatives of other Lenders may accompany Agent’s representatives on
regularly scheduled Inspections at no charge to any Credit Party.
	 
	1.15	 	Taxes

	 	(a)	 	Any and all payments by each Credit Party hereunder or under the Notes shall
be made, in accordance with this Section 1.15, free and clear of and without deduction
for any and all present or future Non-Excluded Taxes, unless required by law. If any
Credit Party shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder or under the Notes, (i) in the case of Non-Excluded Taxes, the
sum payable shall be increased as much as shall be necessary so that after making all
required deductions (including deductions applicable to additional sums payable under
this Section 1.15) Agent or Lenders, as applicable, receive an amount equal to the sum
they would have received had no such deductions been made, (ii) such Credit Party
shall make such deductions, and (iii) such Credit Party shall pay the full amount
deducted to the relevant taxing or other authority in accordance with applicable
law. Within thirty (30) days after the date of any payment of Taxes, Borrower
Representative shall furnish to Agent the original or a certified copy of a receipt
evidencing payment

30

 

	 		 	thereof. Agent and Lenders shall not be obligated to return or
refund any amounts received pursuant to this Section, except that in the event a
Lender or Agent receives a refund of, or credit with respect to any Taxes that it
determines in its reasonable discretion were paid (directly or indirectly) by a
Credit Party pursuant to Section 1.15(a) or Section 1.15(b), such Lender or Agent,
as applicable, shall pay the amount of such refund or credit to such Credit Party
within thirty (30) days of receipt of such refund or application of such credit;
provided that (i) the calculation of such refund or credit shall be determined
solely by such Lender or Agent, as applicable, (ii) such Credit Party, upon the
request of such Lender or Agent, shall repay the amount paid to such Credit Party
(plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to such Lender or Agent in the event a Governmental Authority
subsequently determines that such Lender or Agent was not entitled to receive such
refund or credit, and (iii) no provision contained in this Section 1.15(a) shall be
construed to require either Agent or any Lender to make available its tax returns
(or any other information relating to its taxes which it deems confidential) to any
Credit Party or any other Person. In addition, the Borrowers shall timely pay any
Other Taxes to the relevant Governmental Authority in accordance with applicable
law.
	 
	 	(b)	 	Each Credit Party shall jointly and severally indemnify and, within ten (10)
days of demand therefor, pay Agent and each Lender for the full amount of Non-Excluded
and Other Taxes (including any Taxes imposed by any jurisdiction on amounts payable
under this Section 1.15) paid by Agent or such Lender, as appropriate, and any
liability (including penalties and interest, neither of which are the result of gross
negligence by Agent or such Lender, and reasonable expenses) arising therefrom or with
respect thereto, whether or not such Taxes were correctly or legally asserted.
	 
	 	(c)	 	Each Lender created or organized under the laws of a jurisdiction outside the
United States (a “Foreign Lender”) that, at any of the following times, is entitled to
an exemption from United States withholding tax or is subject to such withholding tax
at a reduced rate under an applicable tax treaty, shall (w) on or prior to the date
such Foreign Lender becomes a “Foreign Lender” hereunder, (x) on or prior to the date
on which any such form or certification expires or becomes obsolete, (y) after the
occurrence of any event requiring a change in the most recent form or certification
previously delivered by it under this paragraph and (z) from time to time if requested
by Borrower Representative or Agent (or, in the case of a participant or SPV, the
relevant Lender), provide Agent and Borrower Representative (or, in the case of a
participant or SPV, the relevant Lender) with two completed originals of each of the
following, as applicable (together with any required schedules and attachments): (A)
Forms W-8ECI (claiming exemption from U.S. withholding tax because the income is
effectively connected with
a U.S. trade or business), W-8BEN (claiming exemption from, or a reduction of, U.S.
withholding tax under an income tax treaty) and/or W-8IMY or any successor forms,
(B) in the case of a Foreign Lender claiming exemption under IRC Sections 871(h) or

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	 	 	 	881(c), Form W-8BEN (claiming exemption from U.S. withholding tax under the
portfolio interest exemption) or any successor form and a certificate in form and
substance acceptable to Borrower Representative and Agent that such Foreign Lender
is not (1) a “bank” within the meaning of IRC Section 881(c)(3)(A), (2) a “10
percent shareholder” of the Borrower within the meaning of IRC Section 881(c)(3)(B)
or (3) a “controlled foreign corporation” described in IRC Section 881(c)(3)(C) or
(C) any other applicable document prescribed by the IRS certifying as to the
entitlement of such Foreign Lender to such exemption from United States withholding
tax or reduced rate with respect to all payments to be made to such Foreign Lender
under the Loan Documents. In addition, if a payment made to a Foreign Lender under
any Loan Document would be subject to U.S. federal withholding tax imposed by FATCA
if such Foreign Lender fails to comply with the applicable reporting requirements
of FATCA including those contained in IRC Section 1471(b) or 1472(b), as
applicable), such Foreign Lender shall deliver to Agent and Borrower Representative
documentation reasonably requested by Agent or Borrower Representative sufficient
for Agent and the Credit Parties to comply with their obligations under FATCA and
to determine that such Foreign Lender has complied with such applicable reporting
requirements. Unless Borrower Representative and Agent have received forms or
other documents satisfactory to them indicating that payments under any Loan
Document to or for a Foreign Lender are not subject to United States withholding
tax or are subject to such tax at a rate reduced by an applicable tax treaty, the
Credit Parties and Agent shall withhold amounts required to be withheld by
applicable requirements of law from such payments at the applicable statutory rate.
Notwithstanding any other provision of this Section 1.15 to the contrary, a Lender
shall not be required to deliver any form pursuant to this paragraph that such
Lender is not legally able to deliver, provided that failure to deliver any such
form shall not in itself cause Taxes to be treated as Non-Excluded Taxes.

	1.16	 	Capital Adequacy; Increased Costs; Illegality

	 	(a)	 	If any Lender shall have determined in good faith that any law, treaty,
governmental (or quasi-governmental) rule, regulation, guideline or order regarding
capital adequacy, reserve requirements or similar requirements or compliance by any
Lender with any request or directive regarding capital adequacy, reserve requirements
or similar requirements (whether or not having the force of law), in each case adopted
after the Closing Date, from any central bank or other Governmental Authority
increases or would have the effect of increasing the amount of capital, reserves or
other funds required to be maintained by such Lender and thereby reducing the rate of
return on such Lender’s capital as a consequence of its obligations hereunder, then
Borrowers shall from time to time upon written demand by such Lender (with a copy of
such
demand to Agent) pay to Agent, for the account of such Lender, additional amounts
sufficient to compensate such Lender for such reduction. A certificate as to the
amount

32

 

	 		 	of that reduction and showing the basis of the computation thereof submitted
by such Lender to Borrower Representative and to Agent shall, absent manifest
error, be final, conclusive and binding for all purposes.
	 
	 	(b)	 	If, due to either (i) the introduction of or any change in any law or
regulation (or any change in the interpretation thereof) or (ii) the compliance with
any guideline or request from any central bank or other Governmental Authority
(whether or not having the force of law), in each case adopted after the Closing Date,
there shall be any increase in the cost to any Lender of agreeing to make or making,
funding or maintaining any Loan (excluding for purposes of this Section 1.16(b)
Non-Excluded Taxes, as to which Section 1.15 shall govern), then Borrowers shall from
time to time, upon written demand by such Lender (with a copy of such demand to
Agent), pay to Agent for the account of such Lender additional amounts sufficient to
compensate such Lender for such increased cost. A certificate as to the amount of
such increased cost, submitted to Borrower Representative and to Agent by such Lender,
shall be conclusive and binding on Borrowers for all purposes, absent manifest error.
Each Lender agrees that, as promptly as practicable after it becomes aware of any
circumstances referred to above which would result in any such increased cost, the
affected Lender shall, to the extent not inconsistent with such Lender’s internal
policies of general application, use reasonable commercial efforts to minimize costs
and expenses incurred by it and payable to it by Borrowers pursuant to this Section
1.16(b).
	 
	 	(c)	 	Notwithstanding anything to the contrary contained herein, if the
introduction of or any change in any law or regulation (or any change in the
interpretation thereof) shall make it unlawful, or any central bank or other
Governmental Authority shall assert that it is unlawful, for any Lender to agree to
make or to make or to continue to fund or maintain any LIBOR Loan, then, unless that
Lender is able to make or to continue to fund or to maintain such LIBOR Loan at
another branch or office of that Lender without, in that Lender’s good faith opinion,
adversely affecting it or its Loans or the income obtained therefrom, on written
notice thereof and written demand therefor by such Lender to Borrower Representative
through Agent, (i) the obligation of such Lender to agree to make or to make or to
continue to fund or maintain LIBOR Loans shall terminate and (ii) each Borrower shall
forthwith prepay in full all outstanding LIBOR Loans owing by such Borrower to such
Lender, together with interest accrued thereon, unless such Borrower, within five (5)
Business Days after the delivery of such notice and demand, converts all LIBOR Loans
into Index Rate Loans.
	 
	 	(d)	 	Within fifteen (15) days after receipt by Borrower Representative of written
notice and demand from any Lender (an “Affected Lender”) for payment of additional
amounts, increased costs or reserve costs as provided in Section 1.15(a), 1.15(b),
1.16(a), 1.16(b) or 1.16(c), Borrower Representative may, at its option, notify Agent
and such Affected
Lender of its intention to replace the Affected Lender. So long as no Default or
Event of Default has occurred and is continuing, Borrower Representative, with the
consent of

33

 

	 	 	 	Agent not to be unreasonably withheld, may obtain, at Borrowers’
expense, a replacement Lender (“Replacement Lender”) for the Affected Lender, which
Replacement Lender must be reasonably satisfactory to Agent. If Borrower
Representative obtains a Replacement Lender within ninety (90) days following
notice of its intention to do so, the Affected Lender must sell and assign (in
accordance with the requirements for assignments in Section 9.1) its Loans and
Commitments to such Replacement Lender for an amount equal to the principal balance
of all Loans held by the Affected Lender and all accrued interest and Fees with
respect thereto through the date of such sale and the Replacement Lender shall
assume all Commitments of the Affected Lender (and the Affected Lender shall be
released from its Commitments), provided, that Borrowers shall have reimbursed such
Affected Lender for the additional amounts or increased costs that it is entitled
to receive under this Agreement through the date of such sale and assignment.
Notwithstanding the foregoing, Borrowers shall not have the right to obtain a
Replacement Lender if the Affected Lender rescinds its demand for increased costs
or additional amounts within fifteen (15) days following its receipt of Borrower
Representative’s notice of intention to replace such Affected Lender. Furthermore,
if Borrower Representative gives a notice of intention to replace and does not so
replace such Affected Lender within ninety (90) days thereafter, Borrowers’ rights
under this Section 1.16(d) shall terminate and Borrowers shall promptly pay all
increased costs or additional amounts demanded by such Affected Lender pursuant to
Sections 1.15(a), 1.15(b), 1.16(a), 1.16(b) and 1.16(c).
	 
	 	(e)	 	Notwithstanding the provisions of Section 1.16(a) and (b), if any Lender
fails to notify Borrower Representative of any event or circumstance which will
entitle such Lender to compensation pursuant to Section 1.16(a) or (b) within one
hundred eighty (180) days after such Lender becomes aware of such event or occurrence,
then such Lender shall not be entitled to compensation from Borrowers for any amount
arising prior to the date which is one hundred eighty (180) days before the date of
such notice to Borrower Representative.

	1.17	 	Single Loan

All Loans to each Borrower and all of the other Obligations of each Borrower arising under this
Agreement and the other Loan Documents shall constitute one general obligation of that Borrower
secured, until the Termination Date, by all of the Collateral and shall be a joint and several
obligation of such Borrower with the obligations of the other Borrowers for all Loans and other
Obligations arising under this Agreement and the Loan Documents of the other Borrowers.

	1.18	 	Increase of the Commitments

	 	(a)	 	Borrower Representative may from time to time after the Closing Date, with
the consent of Agent and upon at least thirty (30) days’ prior written notice to the
Agent (who shall
promptly provide a copy of such notice to each Lender), propose to increase the

34

 

	 	 	 	Revolving Loan Commitments by up to an aggregate of $130,000,000; such additional
Revolving Loan Commitments (the “Incremental Revolving Loan Commitments”) as
determined by and with the approval of the Agent; provided, that the terms
and conditions of the Incremental Revolving Loan Commitment shall be the same as
those applicable to the Revolving Loan Commitments theretofore in effect except
that to the extent that the Applicable Margins for Revolving Loans or Letters of
Credit to be issued under the Incremental Revolving Loan Commitments are higher
than the Applicable Revolver Margins and/or Applicable L/C Margin set forth herein,
the Applicable Revolver Margins and Applicable L/C Margin shall automatically be
adjusted to the Applicable Margins for the Revolving Loans and Letters of Credit to
be issued under the Incremental Revolving Loan Commitments. Each Lender shall have
the right for a period of fifteen (15) days following receipt of such notice, to
elect by written notice to the Borrower Representative and the Agent, to commit to
make all or a portion of such Incremental Revolving Loan Commitments. Final
allocations of the Incremental Revolving Loan Commitments are to be determined by
the Agent after consultation with Borrower Representative. No Lender (or any
successor thereto) shall have any obligation to provide all or any portion of such
Incremental Revolving Loan Commitments or to increase any other obligations under
this Agreement and the other Loan Documents, and any decision by a Lender to
provide any such Incremental Revolving Loan Commitment shall be made in its sole
discretion independently from any other Lender.
	 
	 	(b)	 	If the Lenders do not commit to make the entire Incremental Revolving Loan
Commitments pursuant to Section 1.18(a), the Borrower Representative may designate a
Qualified Assignee (which may be, but need not be, one or more of the existing
Lenders), provided, however, that if such Person is not an existing Lender,
such Person must join this Agreement as a Lender (an “Additional Revolving Lender”).
	 
	 	(c)	 	In the event that the Borrower Representative desires to obtain Incremental
Revolving Loan Commitments, the Agent, the Credit Parties and the Additional Revolving
Lenders shall enter into an amendment to this Agreement to provide for such
Incremental Revolving Loan Commitments (and an amendment to Annex J to reflect
the resulting Revolving Loan Commitments of the Lenders), which amendment shall
provide for the issuance of promissory notes to evidence the Revolving Credit Advances
made pursuant to the Incremental Revolving Loan Commitments if requested by such
Lenders (which notes shall constitute Notes for purposes of this Agreement), such
amendment to be in form and substance reasonably acceptable to Agent and consistent
with the terms of this Section 1.18 and of the other provisions of this Agreement. No
consent of any Lender not providing Incremental Revolving Loan Commitments is required
to permit the Incremental Revolving Loan Commitments contemplated by and otherwise
complying with this Section 1.18 or the aforesaid amendment to effectuate the
Incremental

35

 

	 	 	 	Revolving Loan Commitments. This clause (c) shall supersede any provisions
contained in this Agreement, including, without limitation, Section 11.2.
	 
	 	(d)	 	The increase of the Incremental Revolving Loan Commitments will be subject to
the satisfaction of the following conditions precedent: (i) after giving pro forma
effect to all Revolving Loans that could be incurred under Incremental Revolving Loan
Commitments, no Default or Event of Default shall have occurred and be continuing and
Borrower would be in compliance with the Financial Covenants, (ii) execution of the
amendment hereto referenced in clause (c) above by Agent, the Lenders providing the
Incremental Revolving Loan Commitments and the Credit Parties, (iii) delivery to Agent
of a certificate of the Secretary or an Assistant Secretary of each Credit Party, in
form and substance satisfactory to Agent, certifying the resolutions of such Person’s
board of directors (or equivalent governing body) approving and authorizing the
Incremental Revolving Loan Commitments (if not previously delivered to Agent), and
certifying that none of the organizational documents of such Credit Party delivered to
the Agent prior thereto have been modified or altered in any way (or if modifications
have occurred, certifying new copies of such organizational documents), (iv) delivery
to Agent of an opinion of counsel to the Credit Parties in form and substance and from
counsel reasonably satisfactory to the Agent, addressed to Agent and Lenders providing
the Incremental Revolving Loan Commitments and covering such matters as the Agent may
reasonably request, (v) the payment in full by the Credit Parties of all Revolving
Credit Advances to the Lenders holding same in accordance with the Revolving Loan
Commitments in effect immediately prior to the increase contemplated by this Section
1.18 and the re-borrowing of such Revolving Credit Advances by the Lenders in
accordance with their Revolving Loan Commitments giving effect to the increase
contemplated by this Section 1.18, (vi) each Lender shall acknowledge that its Pro
Rata Share of participations in Letters of Credit that are outstanding as of the time
of the increase in the Revolving Loan Commitments pursuant to this Section 1.18 shall
be in accordance with Revolving Loan Commitments giving effect to the increase to the
Revolving Loan Commitments under this Section 1.18 and (vii) receipt by Agent of such
new Notes, reaffirmations of guaranties, security agreements and pledge agreements as
Agent may reasonably request, together with amendments to all mortgages reflecting
that the Revolving Loans and Letters of Credit extended pursuant to the Incremental
Revolving Loan Commitments are secured pari passu with the Revolving Loan and such
endorsements to title policies or additional title searches as the Agent may
reasonably request.
	 
	 	(e)	 	Notwithstanding any provision contained herein to the contrary, from and
after the date of any Commitment increase contemplated by this Section 1.18, and the
repayment and making of Revolving Credit Advances on such date pursuant to clause
(d)(v) above, all calculations and payments of fees and of interest on the Revolving
Credit Advances shall take into account the actual Revolving Loan Commitment of each
Lender and the

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	 	 	 	principal amount outstanding of each Revolving Credit Advance made by such Lender
during the relevant period of time.

2 CONDITIONS PRECEDENT

	2.1	 	Conditions to Amendment and Restatement and the Initial Loans
	 
	 	 	The amendment and restatement of the Original Credit Agreement provided for herein shall not
be effective, and no Lender shall be obligated to make any Loan to, or incur any Letter of
Credit Obligations on the Closing Date, or to take, fulfill or perform any other action
hereunder, until the following conditions have been satisfied or provided for in a manner
satisfactory to Agent, or waived in writing by Agent and Lenders:

	 	(a)	 	Amended and Restated Credit Agreement; Loan Documents
	 
	 	 	 	This Agreement or counterparts hereof shall have been duly executed by, and
delivered to, each Credit Party, Agent and Lenders (which Lenders shall include
either (i) all Original Lenders or (ii) Requisite Lenders (as defined in the
Original Credit Agreement), provided that Agent shall have received an executed
Assignment Agreement from each Non-Consenting Lender (as defined in Section 11.2(d)
of the Original Credit Agreement) in accordance with Section 11.2(d) of the Original
Credit Agreement, pursuant to which the assignee thereunder shall have irrevocably
consented to the amendment and restatement provided for herein, each such Assignment
Agreement to be effective upon the effectiveness of this Agreement); and Agent shall
have received such documents, instruments, agreements and legal opinions as Agent
shall reasonably request in connection with the transactions contemplated by this
Agreement and the other Loan Documents, including all those listed in the Closing
Checklist attached hereto as Annex D, each in form and substance reasonably
satisfactory to Agent.
	 
	 	(b)	 	Approvals
	 
	 	 	 	Agent shall have received (i) reasonably satisfactory evidence that each Credit
Party has obtained all required consents and approvals of all Persons including all
requisite Governmental Authorities, to the execution, delivery and performance of
this Agreement and the other Loan Documents or (ii) a certificate of an Authorized
Officer in form and substance reasonably satisfactory to Agent affirming that no
such consents or approvals are required.
	 
	 	(c)	 	Opening Availability; Initial Revolving Credit Advance
	 
	 	 	 	The Eligible Accounts, Eligible Rentals, Eligible Parts and Tools Inventory,
Eligible Rolling Stock and Eligible Equipment Inventory supporting the Original
Revolving Credit Advances, the Original Letter of Credit Obligations, the Original
Swing Line Advances, the Revolving Credit Advance and the Letter of Credit
Obligations incurred on the Closing Date and the amount of the Reserves to be
established or continued on the

37

 

	 	 	 	Closing Date shall be sufficient in value, as determined by Agent, to provide
Borrowers, collectively, with Borrowing Availability of at least $250,000,000.
	 
	 	(d)	 	Payment of Fees
	 
	 	 	 	Borrowers shall have paid the Fees required to be paid on the Closing Date in the
respective amounts specified in Section 1.9 (including the Fees specified in the GE
Capital Fee Letter), and shall have reimbursed Agent for all fees, costs and
expenses of closing presented as of the Closing Date in accordance with Section
11.3.
	 
	 	(e)	 	Capital Structure; Other Indebtedness
	 
	 	 	 	The organizational documents, terms of equity interests, ownership, capital,
corporate, tax and legal structure of each Credit Party and the terms and conditions
of all Indebtedness of each Credit Party shall be reasonably acceptable to Agent
with no material change from that reported in Borrowers’ May 31, 2010 Financial
Statements.
	 
	 	(f)	 	Due Diligence
	 
	 	 	 	Agent shall have completed its legal due diligence with results reasonably
satisfactory to Agent.
	 
	 	(g)	 	Omitted
	 
	 	(h)	 	Omitted
	 
	 	(i)	 	Omitted
	 
	 	(j)	 	Payment of Interest and Fees
	 
	 	 	 	Borrowers shall have paid in cash all interest and fees
accrued through the Closing Date.

	2.2	 	Further Conditions to Each Loan
	 
	 	 	Except as otherwise expressly provided herein, no Lender shall be obligated to fund any
Advance, convert or continue any Loan as a LIBOR Loan or incur any Letter of Credit
Obligation, if, as of the date thereof:

	 	(a)	 	(i) any representation or warranty by any Credit Party contained herein or in
any other Loan Document is untrue or incorrect as of such date in any material
respect, except to the extent that such representation or warranty expressly relates
to an earlier date and except for changes therein expressly permitted or expressly
contemplated by this Agreement and (ii) Agent or Requisite Lenders have determined not
to make such Advance, convert or continue any Loan as a LIBOR Loan or incur such
Letter of Credit

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	 	 	 	Obligation as a result of the fact that such warranty or
representation is untrue or incorrect; or
	 
	 	(b)	 	(i) any event or circumstance having a Material Adverse Effect has occurred
since the date hereof as determined by the Requisite Lenders and (ii) Agent or
Requisite Lenders have determined not to make such Advance, convert or continue any
Loan as a LIBOR Loan or incur such Letter of Credit Obligation as a result of the fact
that such event or circumstance has occurred; or
	 
	 	(c)	 	(i) any Default or Event of Default has occurred and is continuing or would
reasonably be expected to result after giving effect to any Advance (or the incurrence
of any Letter of Credit Obligation), and (ii) Agent or Requisite Lenders shall have
determined not to make any Advance, convert or continue any Loan as a LIBOR Loan or
incur any Letter of Credit Obligation as a result of such Default or Event of Default;
or
	 
	 	(d)	 	except as provided in Section 1.1(a)(iv), after giving effect to any Advance
(or the incurrence of any Letter of Credit Obligations), (i) the outstanding principal
amount of the aggregate Revolving Loan would exceed the lesser of the Aggregate
Borrowing Base and the Maximum Amount, in each case, less the aggregate outstanding
Swing Line Loan at such time or (ii) the outstanding principal amount of the Revolving
Loan to the applicable Borrower would exceed such Borrower’s separate Borrowing Base
less the aggregate outstanding Swing Line Loan at such time, to that Borrower; or
	 
	 	(e)	 	after giving effect to any Swing Line Advance, the outstanding principal
amount of the Swing Line Loan would exceed Swing Line Availability.

	 	 	The request and acceptance by any Borrower of the proceeds of any Advance, the incurrence of
any Letter of Credit Obligations or the conversion or continuation of any Loan into, or as,
a LIBOR Loan, shall be deemed to constitute, as of the date thereof, (i) a representation
and warranty by such Borrower that the conditions in this Section 2.2 have been satisfied
and (ii) a reaffirmation by such Borrower of the cross-guaranty provisions set forth in the
Guaranty and Security Agreement and of the granting and continuance of Agent’s Liens, on
behalf of itself and Lenders, pursuant to the Collateral Documents.
	 
	2.3	 	Effect of Amendment and Restatement
	 
	 	 	Upon this Agreement becoming effective pursuant to Section 2.1, from and after the Closing
Date: (a) the Revolving Loan Commitments shall be restated as set forth in Annex J
(which restatement shall include any Revolving Loan Commitments of assignees referred to in
Section 2.1(a)(ii)); (b) all terms and conditions of the Original Credit Agreement and any
other “Loan Document” as defined therein, as amended and restated by this Agreement and the
other Loan Documents being executed and delivered on or as of the Closing Date, shall be and
remain in full force and effect, as so amended and restated, and shall constitute the legal,
valid, binding and enforceable obligations of the Credit Parties party thereto, except as
enforceability thereof may be

39

 

	 	 	limited by applicable bankruptcy, insolvency, moratorium and
other laws relating to the enforcement of creditors’ rights and by general principles of
equity (whether considered at law or in equity); (c) the terms and conditions of the
Original Credit Agreement shall be amended as set
forth herein and, as so amended, shall be restated in their entirety; provided that any
rights, duties and obligations among Borrowers, Lenders and Agent accruing before the
Closing Date under the Original Credit Agreement and any other Loan Documents shall survive
in their entirety unless specifically amended hereunder; (d) this Agreement shall not in any
way release or impair the rights, duties, Obligations or Liens created pursuant to the
Original Credit Agreement or any other Loan Document or affect the relative priorities
thereof, in each case to the extent in force and effect thereunder as of the Closing Date,
except as amended hereby or by documents, instruments and agreements executed and delivered
in connection herewith, and all of such rights, duties, Obligations and Liens are assumed,
ratified and affirmed by Borrowers; (e) all indemnification obligations of the Credit
Parties under the Original Credit Agreement and any other Loan Documents shall survive the
execution and delivery of this Agreement and shall continue in full force and effect for the
benefit of Lenders, Agent, and any other Person indemnified under the Original Credit
Agreement or any other Loan Document at any time prior to the Closing Date; (f) the
Obligations incurred under the Original Credit Agreement, including, without limitation, in
respect of principal, interest, reimbursement obligations for Letters of Credit, expenses
and fees, shall, to the extent outstanding on the Closing Date, continue outstanding under
this Agreement and shall not be deemed to be paid, released, discharged or otherwise
satisfied by the execution of this Agreement, and this Agreement shall not constitute a
refinancing, substitution or novation of such Obligations or any of the other rights, duties
and obligations of the parties hereunder; (g) the execution, delivery and effectiveness of
this Agreement shall not operate as a waiver of any right, power or remedy of Lenders or
Agent under the Original Credit Agreement, nor constitute a waiver of any covenant,
agreement or obligation under the Original Credit Agreement, except to the extent that any
such covenant, agreement or obligation is no longer set forth herein or is amended hereby;
(h) any and all references in the Loan Documents to the Original Credit Agreement shall,
without further action of the parties, be deemed a reference to the Original Credit
Agreement, as amended and restated by this Agreement, and as this Agreement shall be further
amended or amended and restated from time to time hereafter; (i) any and all references in
the Loan Documents that were executed or delivered on or after the Original Closing Date but
prior to the First Restatement Date to the “Closing Date” shall, without further action of
the parties, be deemed a reference to the Original Closing Date, and any and all references
in the Loan Documents that were executed and delivered on or after First Restatement Date
but prior to the Second Restatement Date to the “Closing Date” shall, without further action
of the parties, be deemed a reference to the First Restatement Date, and any and all
references in the Loan Documents that were executed and delivered on or after the Second
Restatement Date but prior to the date hereof to the “Closing Date” shall, without further
action of the parties, be deemed a reference to the Second Restatement Date, and (j) all
security interests created under the Original Credit Agreement and the other Loan Documents
executed prior to the date hereof continue to be in full force and effect after giving
effect to the consummation of this Agreement.

40

 

	3	 	REPRESENTATIONS AND WARRANTIES
	 
	 	 	To induce Lenders to make the Loans and to incur Letter of Credit Obligations, each Credit
Party, jointly and severally, makes the following representations and warranties to Agent
and each Lender, with respect to all Credit Parties, each and all of which shall survive the
execution and delivery of this Agreement.
	 
	3.1	 	Corporate or Limited Liability Company Existence; Compliance with Law
	 
	 	 	Each Credit Party (a) is a limited liability company or corporation, as applicable, duly
organized, validly existing and in good standing under the laws of its respective
jurisdiction of organization or incorporation set forth in Disclosure Schedule
(3.1); (b) is duly qualified to conduct business and is in good standing in each other
jurisdiction where its ownership or lease of property or the conduct of its business
requires such qualification, except where the failure to be so qualified would not result in
exposure to losses, damages or liabilities in excess of $50,000; (c) has the requisite
corporate or limited liability company, as applicable, power and authority and the legal
right to own, pledge, mortgage or otherwise encumber and operate its properties, to lease
the property it operates under lease and to conduct its business as is now, heretofore and
is proposed to be conducted; (d) has all material licenses, permits, consents or approvals
from or by, and has made all material filings with, and has given all material notices to,
all Governmental Authorities having jurisdiction, to the extent required for such ownership,
operation and conduct; (e) is in compliance with its charter and bylaws or certificate of
formation and operating agreement, as applicable; and (f) subject to specific
representations set forth herein regarding ERISA, Environmental Laws, tax and other laws, is
in compliance with all applicable provisions of law; except in the case of clauses (b), (d)
and (f) of this Section 3.1, where the failure to comply, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect.
	 
	3.2	 	Executive Offices; Collateral Locations; FEIN
	 
	 	 	As of the Closing Date, the current location of each Credit Party’s chief executive office
and the warehouses and premises at which any Collateral is located are set forth in
Disclosure Schedule (3.2). In addition, Disclosure Schedule (3.2) lists the
jurisdiction of organization, organizational identification number, if any, and federal
employer identification number of each Credit Party. Each Credit Party is a “registered
organization” within the meaning of Article 9 of the Code.
	 
	3.3	 	Corporate or Limited Liability Company Power, Authorization, Enforceable Obligations
	 
	 	 	The execution, delivery and performance by each Credit Party of the Loan Documents to which
it is a party and the creation of all Liens provided for therein: (a) are within such
Credit Party’s corporate or limited liability company, as applicable, power; (b) have been
duly authorized by all necessary corporate, limited liability company, shareholder and
member action, as applicable; (c) do not contravene any provision of such Credit Party’s
certificate of formation, operating agreement, charter or by laws, as applicable; (d) do not
violate any law or regulation, or any order

41

 

		 	or decree of any court or Governmental Authority where such violations individually or in
the aggregate could reasonably be expected to have a Material Adverse Effect; (e) do not
conflict with or result in the breach or termination of, constitute a default under or
accelerate or permit the acceleration of any performance required by, any indenture,
mortgage, deed of trust, lease, agreement or other instrument to which such Credit Party is
a party or by which such Credit Party or any of its property is bound that alone or in the
aggregate could reasonably be expected to have a Material Adverse Effect; (f) do not result
in the creation or imposition of any Lien upon any of the property of such Credit Party
other than Permitted Liens or those in favor of Agent, on behalf of itself and Lenders,
pursuant to the Loan Documents; and (g) do not require the consent or approval of any
Governmental Authority or any other Person, except those referred to in Section 2.1(b), all
of which will have been duly obtained, made or complied with prior to the Closing Date,
except where failure to obtain such consent or approval would not reasonably be expected to
have a Material Adverse Effect. Each of the Loan Documents shall be duly executed and
delivered by each Credit Party that is a party thereto and each such Loan Document shall
constitute a legal, valid and binding obligation of such Credit Party enforceable against it
in accordance with its terms, subject to any applicable bankruptcy, insolvency, moratorium
or similar laws affecting creditors’ rights generally and to general principles of equity.
	 
	3.4	 	Financial Statements and Projections

	 	(a)	 	The audited consolidated financial statements of H&E Delaware and its
Subsidiaries included in the Annual Report on Form 10-K for the year ended December
31, 2009 filed by H&E Delaware with the SEC, and the unaudited financial statements of
H&E Delaware and its Subsidiaries for each Fiscal Month from January 2010 through May
31, 2010 have been prepared in accordance with GAAP consistently applied throughout
the periods covered (except as disclosed therein and except, with respect to unaudited
Financial Statements, for the absence of footnotes and normal year end audit
adjustments) and present fairly in all material respects the financial position of the
Persons covered thereby as at the dates thereof and the results of their operations
and cash flows for the periods then ended.
	 
	 	(b)	 	Omitted
	 
	 	(c)	 	Projections
	 
	 	 	 	The Projections delivered on or prior to the Closing Date have been prepared by
Borrowers in light of the past operations of their businesses (including the actual
results of past operations during the twelve month period prior to the Closing
Date), and reflect annual profit and loss projections for the Fiscal Year ending
December 31, 2010. The Projections are based upon estimates and assumptions stated
therein, all of which Borrowers believe to be reasonable and fair in light of
current conditions and current facts known to Borrowers and, as of the Closing Date,
reflect Borrowers’ good faith and

42

 

	 	 	 	reasonable estimates of the future financial
performance of Borrowers and of the other information projected therein for the
period set forth therein.

	3.5	 	Material Adverse Effect
	 
	 	 	Since December 31, 2009: (a) none of the Credit Parties has incurred any obligations,
contingent or noncontingent liabilities, liabilities for Charges, long-term leases or
unusual forward or long-term commitments that, alone or in the aggregate, could reasonably
be expected to have a Material Adverse Effect, (b) no contract, lease or other agreement or
instrument has been entered into by any Credit Party or has become binding upon any Credit
Party’s assets and no law or regulation applicable to any Credit Party has been adopted that
has had or could reasonably be expected to have a Material Adverse Effect, and (c) no Credit
Party is in default and to the best of any Credit Party’s knowledge no third party is in
default under any material contract, lease or other agreement or instrument, that alone or
in the aggregate could reasonably be expected to have a Material Adverse Effect. Since
December 31, 2009, no event has occurred, that alone or together with other events, has had
or could reasonably be expected to have a Material Adverse Effect.

	3.6	 	Ownership of Property; Liens

	 	(a)	 	As of the Closing Date, the real estate (together with any real property
acquired by any Borrower or Guarantor after the Closing Date, “Real Estate”)
designated as such and listed in Disclosure Schedule (3.6) constitutes all of
the material real property owned, leased, subleased, or operated by any Credit Party.
Except as disclosed in Disclosure Schedule (3.6), each Credit Party owns good
and marketable fee simple title to all of such owned Real Estate, and valid leasehold
interests in all of such leased Real Estate, all as more particularly described on
such schedule, and copies of all such leases or a summary of terms thereof reasonably
satisfactory to Agent have been delivered to Agent. Disclosure Schedule (3.6)
further describes any material Real Estate with respect to which any Credit Party is a
lessor, sublessor or assignor as of the Closing Date. Each Credit Party also has good
and marketable title to, or valid leasehold interests in, all of its material personal
properties and assets that are necessary in connection with the operation of such
Credit Party’s business, including, without limitation, those Titled Vehicles
described in Disclosure Schedule (3.6). As of the Closing Date, none of such
material properties and assets of any Credit Party are subject to any Liens other than
Permitted Encumbrances, and there are no facts, circumstances or conditions known to
any Credit Party that may reasonably be expected to result in any Liens (including
Liens arising under Environmental Laws) other than Permitted Encumbrances. Except as
described in Disclosure Schedule (3.6), each Credit Party has received all
deeds, certificates of title, assignments, waivers, consents, nondisturbance and
attornment or similar agreements, bills of sale and other documents, and has duly
effected all recordings, filings and other actions necessary to establish, protect and
perfect such Credit Party’s right, title and interest in and to all such Real Estate
and

43

 

	 	 	 	other properties and assets including, without limitation, the Titled Vehicles.
Disclosure Schedule (3.6) also describes any purchase options, rights of first
refusal or other similar contractual rights pertaining to any such Real Estate. No
portion of any Credit
Party’s material Real Estate has suffered any material damage by fire or other
casualty loss that has not heretofore been repaired and restored in all material
respects to its original condition or otherwise remedied. All material permits
required to have been issued or appropriate to enable such Real Estate to be
lawfully occupied and used for all of the purposes for which it is currently
occupied and used have been lawfully issued and are in full force and effect.

	3.7	 	Labor Matters
	 
	 	 	As of the Closing Date (a) no strikes or other material labor disputes against any Credit
Party are pending or, to any Credit Party’s knowledge, threatened that could reasonably be
expected to have a Material Adverse Effect; (b) hours worked by and payment made to
employees of each Credit Party comply in all material respects with the Fair Labor Standards
Act and each other federal, state, local or foreign law applicable to such matters; (c) all
material payments due from any Credit Party for employee health and welfare insurance have
been paid or accrued as a liability on the books of such Credit Party; (d) except as set
forth in Disclosure Schedule (3.7), no Credit Party is a party to or bound by any
collective bargaining agreement, management agreement, consulting agreement, employment
agreement, bonus, restricted stock, stock option, stock appreciation plan or agreement or
any similar plan, agreement or arrangement (and true and complete copies of any agreements
described in Disclosure Schedule (3.7) have been delivered to Agent); (e) except as
set forth in Disclosure Schedule (3.7), there is no organizing activity involving
any Credit Party pending or, to any Credit Party’s knowledge, threatened by any labor union
or group of employees; (f) except as set forth in Disclosure Schedule (3.7), there
are no representation proceedings pending or, to any Credit Party’s knowledge, threatened
with the National Labor Relations Board, and no labor organization or group of employees of
any Credit Party has made a pending demand for recognition; and (g) except as set forth in
Disclosure Schedule (3.7), there are no complaints or charges against any Credit
Party pending or, to the knowledge of any Credit Party, threatened to be filed with any
Governmental Authority or arbitrator based on, arising out of, in connection with, or
otherwise relating to the employment or termination of employment by any Credit Party of any
individual that could reasonably be expected to have a Material Adverse Effect.
	 
	3.8	 	Ventures, Subsidiaries and Affiliates; Outstanding Stock and Indebtedness
	 
	 	 	Except as set forth in Disclosure Schedule (3.8), as of the Closing Date, no Credit
Party has any Subsidiaries, is engaged in any joint venture or partnership with any other
Person, or is an Affiliate of any other Person. All of the issued and outstanding Stock of
each Credit Party is owned by each of the members or Stockholders, as applicable, and in the
amounts set forth in Disclosure Schedule (3.8). Except as set forth in
Disclosure Schedule (3.8), there are no outstanding rights to purchase, options,
warrants or similar rights or agreements pursuant to

44

 

	 	 	which any Credit Party may be required
to issue, sell, repurchase or redeem any of its Stock or other equity securities or any
Stock or other equity securities of its Subsidiaries. All outstanding Indebtedness and
Guaranteed Indebtedness of each Credit Party as of the Closing Date is described in Section
6.3 (including Disclosure Schedule (6.3)). None of the Credit Parties other
than Borrowers and H&E Mid-Atlantic has any material assets (except Stock of their
Subsidiaries) or any Indebtedness or Guaranteed Indebtedness other than (i) the Obligations
and (ii) guarantees of the Senior Unsecured Notes as provided for in the Senior Unsecured
Note Indenture. No Credit Party has any outstanding Indebtedness or true lease obligations
secured by a Lien described in Section 6.7(c) or Section 6.7(d) except as described in
Disclosure Schedule (6.3) under the heading “Vendor Financings.”
	 
	3.9	 	Government Regulation
	 
	 	 	No Credit Party is an “investment company” or an “affiliated person” of, or “promoter” or
“principal underwriter” for, an “investment company,” as such terms are defined in the
Investment Company Act of 1940. No Credit Party is subject to regulation under the Federal
Power Act or any other federal or state statute that restricts or limits its ability to
incur Indebtedness or to perform its obligations hereunder. The making of the Loans by
Lenders to Borrowers, the incurrence of the Letter of Credit Obligations on behalf of
Borrowers and the application of the proceeds thereof and repayment thereof will not violate
any provision of any such statute or any rule, regulation or order issued by the Securities
and Exchange Commission.
	 
	3.10	 	Margin Regulations
	 
	 	 	No Credit Party is engaged, nor will it engage, principally or as one of its important
activities, in the business of extending credit for the purpose of “purchasing” or
“carrying” any “margin stock” as such terms are defined in Regulation U of the Federal
Reserve Board as now and from time to time hereafter in effect (such securities being
referred to herein as “Margin Stock”). No Credit Party owns any Margin Stock, and none of
the proceeds of the Loans or other extensions of credit under this Agreement will be used,
directly or indirectly, for the purpose of purchasing or carrying any Margin Stock, for the
purpose of reducing or retiring any Indebtedness that was originally incurred to purchase or
carry any Margin Stock or for any other purpose that might cause any of the Loans or other
extensions of credit under this Agreement to be considered a “purpose credit” within the
meaning of Regulations T, U or X of the Federal Reserve Board. No Credit Party will take or
permit any Subsidiary to take any action that might cause any Loan Document to violate any
regulation of the Federal Reserve Board.
	 
	3.11	 	Taxes
	 
	 	 	All tax returns, reports and statements, including information returns, required by any
Governmental Authority to be filed by any Credit Party have been filed with the appropriate
Governmental Authority and all Taxes owed by any Credit Party have been paid prior to the
date on which any fine, penalty, interest or late charge may be added thereto for nonpayment
thereof

45

 

	 	 	(or any such fine, penalty, interest, late charge or loss has been paid), except (a)
Taxes or other amounts being contested in accordance with Section 5.2(b) or (b) to the
extent that the failure to file or pay could not reasonably be expected to result in a
Material Adverse Effect. Proper and accurate amounts have been withheld by each Credit
Party from its respective employees for all periods in full and complete compliance with all
applicable federal, state, local and foreign laws
and such withholdings have been timely paid to the respective Governmental Authorities,
except to the extent failure to so withhold, together with any failure described in the
preceding sentence, could not reasonably be expected to result in a Material Adverse Effect.
Disclosure Schedule (3.11) sets forth as of the Closing Date those taxable years
for which any Credit Party’s tax returns are currently being audited by the IRS or any other
applicable Governmental Authority and any assessments or threatened assessments in
connection with such audit, or otherwise currently outstanding. Except as described in
Disclosure Schedule (3.11), no Credit Party has executed or filed with the IRS or
any other Governmental Authority any agreement or other document extending, or having the
effect of extending, the period for assessment or collection of any Charges. None of the
Credit Parties or their respective predecessors are liable for any Taxes: (a) under any
agreement (including any tax sharing agreements), (b) to any Credit Party’s knowledge, as a
transferee or (c) under Treasury Regulation Section 1.1502-6(a) or any analogous or similar
state, local or foreign law or regulation. As of the Closing Date, no Credit Party has
agreed or been requested to make any adjustment under IRC Section 481(a), by reason of a
change in accounting method or otherwise, which would have a Material Adverse Effect. As of
the Closing Date, no Credit Party has participated in a “reportable transaction” within the
meaning of Treasury Regulation Section 1.6011-4(b).
	 
	3.12	 	ERISA

	 	(a)	 	Disclosure Schedule (3.12) lists all material Plans and separately
identifies all Pension Plans, Title IV Plans, Multiemployer Plans, and Welfare Plans,
including all Retiree Welfare Plans. Copies of all Title IV Plans, together with a
copy of the latest IRS/DOL 5500-series form for each such Title IV Plan, have been
made available to Agent. Except as would not reasonably be expected to have a
Material Adverse Effect (i) except with respect to Multiemployer Plans, each Qualified
Plan has received a favorable determination letter from the IRS, and nothing has
occurred that would cause the loss of such Qualified Plans qualification; (ii) each
Plan is in compliance in all material respects with the applicable provisions of ERISA
and the IRC, including the timely filing of all reports required under the IRC or
ERISA; (iii) neither any Credit Party nor any ERISA Affiliate has failed to make any
contribution or pay any amount due as required by either Section 412 of the IRC or
Section 302 of ERISA or the terms of any Title IV Plan; and (iv) no Credit Party or
any ERISA Affiliate has engaged in a “prohibited transaction”, as defined in Section
406 of ERISA and Section 4975 of the IRC, that will subject any Credit Party to a
material tax on prohibited transactions imposed by Section 502(i) of ERISA or Section
4975 of the IRC.

46

 

	(b)	 	Except as set forth in Disclosure Schedule (3.12): (i) no Title IV
Plan has any material Unfunded Pension Liability; (ii) no ERISA Event or event
described in Section 4062(e) of ERISA with respect to any Title IV Plan has occurred
or is reasonably expected to occur that in all cases could reasonably be expected a
Material Adverse Effect; (iii) there are no pending, or to the knowledge of any Credit
Party, threatened claims (other than claims for benefits in the normal course),
sanctions, actions or lawsuits, asserted or
instituted against any Plan or any Person as fiduciary or sponsor of any Plan that
could reasonably be expected to have a Material Adverse Effect; (iv) no Credit
Party or ERISA Affiliate has incurred or reasonably expects to incur any liability
as a result of a complete or partial withdrawal from a Multiemployer Plan that
could reasonably be expected to have a Material Adverse Effect; (v) within the last
five years no Title IV Plan of any Credit Party or ERISA Affiliate has been
terminated, whether or not in a “standard termination” as that term is used in
Section 4041(b)(1) of ERISA, nor has any Title IV Plan of any Credit Party or any
ERISA Affiliate (determined at any time within the last five years) with Unfunded
Pension Liabilities been transferred outside of the “controlled group” (within the
meaning of Section 4001(a)(14) of ERISA) of any Credit Party or ERISA Affiliate
(determined at the time of any such transfer).

	3.13	 	No Litigation
	 
	 	 	No action, claim, lawsuit, demand, investigation or proceeding is now pending or, to the
knowledge of any Credit Party, threatened against any Credit Party or before any
Governmental Authority or before any arbitrator or panel of arbitrators (collectively,
“Litigation”), (a) that challenges any Credit Party’s, right or power to enter into or
perform any of its obligations under any Loan Document to which it is a party, or the
validity or enforceability of any Loan Document or any action taken thereunder, or (b) that
has a reasonable risk of being determined adversely to any Credit Party, and which, if so
determined, could reasonably be expected to have a Material Adverse Effect. Except as set
forth in Disclosure Schedule (3.13), as of the Closing Date there is no Litigation
pending or to any Credit Party’s knowledge threatened against any Credit Party that seeks
damages in excess of $500,000 or injunctive relief against, or alleges criminal misconduct
of, any Credit Party.
	 
	3.14	 	Brokers
	 
	 	 	No broker or finder brought about the obtaining, making or closing of the Loans, and no
Credit Party or Affiliate thereof has any obligation to any Person in respect of any
finder’s or brokerage fees in connection therewith.
	 
	3.15	 	Intellectual Property
	 
	 	 	As of the Closing Date, each Credit Party owns or has rights to use all Intellectual
Property material to the continuance of the conduct of its business as now or heretofore
conducted by it or proposed to be conducted by it, and each Patent, each registration or
each application for

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	 	 	registration of each Trademark, each Copyright and each License is
listed, together with application or registration numbers, as applicable, in Disclosure
Schedule (3.15). Each Credit Party conducts its business and affairs without material
infringement of or material interference with any Intellectual Property of any other Person.
Except as set forth in Disclosure Schedule (3.15), no Credit Party is aware of any
infringement claim by any other Person with respect to any Intellectual Property.
	 
	3.16	 	Full Disclosure
	 
	 	 	No information contained in this Agreement, any of the other Loan Documents, any
Projections, Financial Statements or Collateral Reports or other written reports, taken as a
whole, from time to time delivered hereunder or any written statement furnished by or on
behalf of any Credit Party to Agent or any Lender pursuant to the terms of this Agreement
contained as of its date or will contain any untrue statement of a material fact or omitted
or will omit to state a material fact necessary to make the statements, taken as a whole,
contained herein or therein not misleading in light of the circumstances under which they
were made. The Liens granted to Agent, on behalf of itself and Lenders, pursuant to the
Collateral Documents will at all times be fully perfected first priority Liens in and to the
Collateral described therein, subject, as to priority, only to Permitted Encumbrances.
	 
	3.17	 	Environmental Matters

	 	(a)	 	Except as set forth in Disclosure Schedule (3.17), as of the Closing
Date: (i) the Real Estate is free of contamination from any Hazardous Material except
for such contamination that would not adversely impact the value or marketability of
such Real Estate and that would not result in Environmental Liabilities that could
reasonably be expected to exceed $500,000; (ii) no Credit Party has caused or suffered
to occur any Release of Hazardous Materials on, at, in, under, above, to, from or
about any of its Real Estate that would result in Environmental Liabilities that could
reasonably be expected to exceed $500,000; (iii) each Credit Party is and has been in
compliance with all Environmental Laws, except for such noncompliance that would not
result in Environmental Liabilities which could reasonably be expected to exceed
$500,000; (iv) each Credit Party has obtained, and is in compliance with, all
Environmental Permits required by Environmental Laws for the operations of its
businesses as presently conducted or as proposed to be conducted, except where the
failure to so obtain or comply with such Environmental Permits would not result in
Environmental Liabilities that could reasonably be expected to exceed $500,000, and
all such Environmental Permits are valid, uncontested and in good standing; (v) no
Credit Party is involved in operations or knows of any facts, circumstances or
conditions, including any Releases of Hazardous Materials, that are likely to result
in any Environmental Liabilities of Borrowers that could reasonably be expected to
exceed $500,000, and no Credit Party has permitted any current or former tenant or
occupant of the Real Estate to engage in any such operations; (vi) there is no
Litigation arising under or related to any

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	 	 	 	Environmental Laws, Environmental Permits
or Hazardous Material that seeks damages, penalties, fines, costs or expenses in
excess of $500,000 or injunctive relief, or which alleges criminal misconduct by any
Credit Party, (vii) no notice has been received by any Credit Party identifying it as
a “potentially responsible party” or requesting information under CERCLA or analogous
state statutes, and to the knowledge of any Credit Party, there are no facts,
circumstances or conditions that may result in any Credit Party being identified as a
“potentially responsible party” under
CERCLA or analogous state statutes; and (viii) the Credit Parties have provided to
Agent copies of all material existing environmental reports, reviews and audits and
all material written information in their possession pertaining to actual or
potential Environmental Liabilities, in each case relating to the Credit Parties.
	 
	 	(b)	 	Each Credit Party hereby acknowledges and agrees that Agent (i) is not now,
and has not ever been in control of any of the Real Estate or any Credit Party’s
affairs, and (ii) does not have the capacity through the provisions of the Loan
Documents or otherwise to influence any Credit Party’s conduct with respect to the
ownership, operation or management of any of its Real Estate or compliance with
Environmental Laws or Environmental Permits.

	3.18	 	Insurance
	 
	 	 	Disclosure Schedule (3.18) lists all insurance policies of any nature maintained, as
of the Closing Date, for current occurrences by each Credit Party, as well as a summary of
the terms of each such policy.
	 
	3.19	 	Deposit and Disbursement Accounts
	 
	 	 	Disclosure Schedule (3.19) lists all banks and other financial institutions at which
each Credit Party maintains deposit or other accounts as of the Closing Date, including any
Disbursement Accounts, and such Schedule correctly identifies the name, address and
telephone number of each depository, the name in which the account is held, a description of
the purpose of the account, and the complete account number therefor.
	 
	3.20	 	Government Contracts
	 
	 	 	Except as set forth in Disclosure Schedule (3.20), as of the Closing Date, no Credit
Party is a party to any contract or agreement with any Governmental Authority the value of
which exceeds $500,000 and no Credit Party’s Accounts are subject to the Federal Assignment
of Claims Act, as amended (31 U.S.C. Section 3727) or any similar foreign, state or local
law.
	 
	3.21	 	Customer and Trade Relations
	 
	 	 	As of the Closing Date, there exists no actual or, to the knowledge of any Credit Party,
threatened termination or cancellation of, or any material adverse modification or change
in: (a) the business

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	 	 	relationship of any Credit Party with any customer or group of customers whose purchases
during the preceding twelve (12) months caused it or them, as applicable, to be ranked among the
ten largest customers of such Credit Party, considered as a whole; or (b) the business relationship
of any Credit Party with any supplier or group of suppliers whose sales during the preceding twelve
(12) months caused it or them, as applicable, to be ranked among the ten largest suppliers of such
Credit Party.
	 
	3.22	 	Agreements and Other Documents
	 
	 	 	Disclosure Schedule (3.22) lists, as of the Closing Date, all of the following agreements or
documents to which each Credit Party is subject, and the Credit Parties have provided to Agent or
its counsel, on behalf of Lenders, accurate and complete copies (or summaries) of each of such
documents as requested by Agent: (a) supply agreements and purchase agreements not terminable by
such Credit Party within sixty (60) days following written notice issued by such Credit Party and
involving transactions in excess of $1,000,000 per annum (other than purchase orders); (b) licenses
and permits held by such Credit Party, the absence of which could be reasonably likely to have a
Material Adverse Effect (other than business or operating licenses or permits in obtained by such
Credit Party in the ordinary course of business); (c) instruments and documents evidencing any
Indebtedness, Floor Plan Financing or Guaranteed Indebtedness of such Credit Party and any Lien
(other than Permitted Liens) granted by such Credit Party with respect thereto; and (d) instruments
and agreements evidencing the issuance of any equity securities, warrants, rights or options to
purchase equity securities of such Credit Party. As of the Closing Date, each Borrower has
provided to Agent the forms of lease under which such Borrower leases Equipment Inventory to third
Persons.
	 
	3.23	 	Solvency
	 
	 	 	Both before and immediately after giving effect to (a) the Loans and Letter of Credit Obligations
to be made or incurred on the Closing Date or such other date as Loans and Letter of Credit
Obligations requested hereunder are made or incurred, (b) the disbursement of the proceeds of such
Loans pursuant to the instructions of Borrower Representative, and (c) the payment and accrual of
all transaction costs in connection with the foregoing, the Credit Parties, taken as a whole, are
and will be Solvent.
	 
	3.24	 	Titled Vehicles
	 
	 	 	Each Borrower and H&E Mid-Atlantic is in the business of selling (as such phrase is used in section
9-311(d) of the Code) all Equipment Inventory constituting Titled Vehicles now or hereafter owned
by such Borrower, other than those types of Titled Vehicles set forth on Disclosure Schedule
(3.24).

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	3.25	 	Senior Unsecured Note Indenture
	 
	 	 	The amount of Permitted Debt that may be incurred under Credit Facilities pursuant to
Section 4.09(b)(1) of the Senior Unsecured Note Indenture is $350,000,000. No Net Proceeds
of any Asset Sales have been applied to repay any term Indebtedness or revolving credit
Indebtedness under a Credit Facility (and in the case of revolving credit Indebtedness,
effecting a corresponding commitment reduction thereunder). As used in this Section 3.25,
the defined terms “Permitted Debt”, “Credit Facility”, “Net Proceeds”, “Asset Sale” and
“Indebtedness” shall have the meanings provided in the Senior Unsecured Note Indenture.

	4	 	FINANCIAL STATEMENTS AND INFORMATION

	4.1	 	Reports and Notices

	 	(a)	 	Each Credit Party hereby agrees that from and after the Closing Date and
until the Termination Date, it shall deliver to Agent or to Agent and Lenders, as
required, the Financial Statements, notices, Projections and other information at the
times, to the Persons and in the manner set forth in Annex E.
	 
	 	(b)	 	Each Credit Party hereby agrees that from and after the Closing Date and
until the Termination Date, it shall deliver to Agent or to Agent and Lenders, as
required, the various Collateral Reports (including Borrowing Base Certificates in the
form of Exhibit 4.1(b)) at the times, to the Persons and in the manner set
forth in Annex F.

	4.2	 	Communication with Accountants
	 
	 	 	Each Credit Party authorizes (a) Agent and (b) so long as an Event of Default has occurred
and is continuing, each Lender, to communicate directly with its independent certified
public accountants and authorizes and, at Agent’s request, shall instruct those accountants
and advisors to disclose and make available to Agent and each Lender any and all Financial
Statements and other supporting financial documents, schedules and information relating to
any Credit Party (including copies of any issued management letters) with respect to the
business, financial condition and other affairs of any Credit Party.

	5	 	AFFIRMATIVE COVENANTS
	 
	 		Each Credit Party jointly and severally agrees as to all Credit Parties that from and after
the date hereof and until the Termination Date:

	5.1	 	Maintenance of Existence and Conduct of Business
	 
	 	 	Each Credit Party shall: (a) do or cause to be done all things necessary to preserve and
keep in full force and effect its existence as a limited liability company or a corporation,
as the case may be, and its rights and franchises; (b) continue to conduct its business substantially as now
conducted or as otherwise permitted hereunder; (c) at all times maintain, preserve and
protect all

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	 	 	of its assets and properties used or useful in the conduct of its business, and
keep the same in good repair, working order and condition in all material respects (taking
into consideration ordinary wear and tear) and from time to time make, or cause to be made,
all necessary or appropriate repairs, replacements and improvements thereto consistent with
industry practices; and (d) transact business only in such limited liability company,
corporate and trade names as are set forth in Disclosure Schedule (5.1) except, in
each case, where failure to do so would not reasonably be expected to have a Material
Adverse Effect.

	5.2	 	Payment of Charges

	 	(a)	 	Subject to Section 5.2(b), each Credit Party shall pay and discharge or cause
to be paid and discharged when due all material Charges payable by it, including (i)
Charges imposed upon it, its income and profits, or any of its property (real,
personal or mixed) and all Charges with respect to tax, social security and
unemployment withholding with respect to its employees, and (ii) lawful claims for
labor, materials, supplies and services or otherwise, and (iii) all storage or rental
charges payable to warehousemen or bailees, in each case, before any thereof shall
become past due.
	 
	 	(b)	 	Each Credit Party may in good faith contest, by appropriate proceedings, the
validity or amount of any Charges, Taxes or claims described in Section 5.2(a);
provided, that (i) adequate reserves with respect to such contest are maintained on
the books of such Credit Party, in accordance with GAAP; (ii) no Lien shall be imposed
to secure payment of such Charges (other than payments to warehousemen and/or bailees
and Permitted Liens) that is superior to any of the Liens securing the Obligations and
such contest is maintained and prosecuted continuously and with diligence and operates
to suspend collection or enforcement of such Charges; (iii) none of the Collateral
becomes subject to forfeiture or loss as a result of such contest; (iv) such Credit
Party shall promptly pay or discharge such contested Charges, Taxes or claims and all
additional charges, interest, penalties and expenses, if any, and shall deliver to
Agent evidence reasonably acceptable to Agent of such compliance, payment or
discharge, if such contest is terminated or discontinued adversely to such Credit
Party or the conditions set forth in this Section 5.2(b) are no longer met, and (v)
Agent has not advised such Credit Party in writing that Agent reasonably believes that
nonpayment or nondischarge thereof could have or result in a Material Adverse Effect.

	5.3	 	Books and Records
	 
	 	 	Each Credit Party shall keep adequate books and records (which may be in electronic form)
with respect to its business activities in which proper entries, reflecting all financial
transactions, are made in accordance with GAAP in all material respects and on a basis
materially consistent with the Financial Statements.

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	5.4	 	Insurance; Damage to or Destruction of Collateral

	 	(a)	 	Each Credit Party shall at its sole cost and expense, maintain the policies
of insurance described in Disclosure Schedule (3.18) as in effect on the date
hereof or policies providing reasonably comparable coverage, or otherwise in form and
amounts and with insurers reasonably acceptable to Agent. Such policies of insurance
(or the loss payable and additional insured endorsements delivered to Agent) shall
contain provisions pursuant to which the insurer agrees to provide thirty (30) days
prior written notice to Agent in the event of any non-renewal, cancellation or
amendment of any such insurance policy. If any Credit Party at any time or times
hereafter shall fail to obtain or maintain any of the policies of insurance required
above or to pay all premiums relating thereto, Agent may at any time or times
thereafter obtain and maintain such policies of insurance and pay such premiums and
take any other action with respect thereto that Agent reasonably deems advisable.
Agent shall have no obligation to obtain insurance for any Credit Party or pay any
premiums therefor. By doing so, Agent shall not be deemed to have waived any Default
or Event of Default arising from any Credit Party’s failure to maintain such insurance
or pay any premiums therefor. All sums so disbursed, including reasonable attorneys’
fees, court costs and other charges related thereto, shall be payable on demand by
Borrowers to Agent and shall be additional Obligations hereunder secured by the
Collateral.
	 
	 	(b)	 	Agent reserves the right at any time upon any change in any Credit Party’s
risk profile (including any change in the product mix maintained by any Credit Party
or any laws affecting the potential liability of such Credit Party) to require
additional forms and limits of insurance to, in Agent’s reasonable opinion, adequately
protect both Agent’s and Lender’s interests in all or any portion of the Collateral
and to ensure that each Credit Party is protected by insurance in amounts and with
coverage reasonably customary for its industry. If reasonably requested by Agent,
each Credit Party shall deliver to Agent from time to time a report of the Credit
Parties’ insurance broker, reasonably satisfactory to Agent, with respect to its
insurance policies.
	 
	 	(c)	 	Each Credit Party shall deliver to Agent, in form and substance reasonably
satisfactory to Agent, endorsements to (i) any “All Risk,” keyman life insurance and
business interruption insurance naming Agent, on behalf of itself and Lenders, as loss
payee, and (ii) all general liability and other liability policies naming Agent, on
behalf of itself and Lenders, as additional insured. Each Credit Party irrevocably
makes, constitutes and appoints Agent (and all officers, employees or agents
designated by Agent), so long as any Event of Default has occurred and is continuing
or the anticipated insurance proceeds exceed $5,000,000, as such Credit Party’s true
and lawful agent and attorney-in-fact for the purpose of making, settling and
adjusting claims under any such “All Risk” policies of insurance, endorsing the name
of such Credit Party on any check or other item of payment for the proceeds of any
such “All Risk” policies of insurance and for making all determinations and decisions
with respect to any such “All Risk” policies

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	 	 	 	of insurance. Agent shall have no duty to exercise any rights or powers granted to
it pursuant to the foregoing power-of-attorney. Borrower Representative shall
promptly notify Agent of any loss, damage, or destruction to the Collateral in the
amount of $1,000,000 or more, whether or not covered by insurance. After deducting
from such proceeds the expenses, if any, incurred by Agent in the collection or
handling thereof, such proceeds shall be applied to the Obligations except as
otherwise provided by Section 1.3(d).

	 	(d)	 	Borrower Representative shall, immediately upon learning of the institution
of any proceeding for the condemnation or other taking of any property of any Credit
Party in excess of $1,000,000 in the aggregate for all such condemnations or takings,
notify the Agent of the pendency of such proceeding, and agree that the Agent may
participate in any such proceeding, and Borrower Representative from time to time will
deliver to the Agent all instruments reasonably requested by the Agent to permit such
participation. The Agent is authorized to collect the proceeds of any such
condemnation claim or award and such proceeds shall be applied to the Obligations,
except as otherwise provided in Section 1.3(d).

	5.5	 	Compliance with Laws
	 
	 	 	Each Credit Party shall comply with all federal, state, local and foreign laws and
regulations applicable to it, including those relating to licensing, ERISA and labor matters
and Environmental Laws and Environmental Permits, except to the extent that the failure to
comply, individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

	5.6	 	Supplemental Disclosure
	 
	 	 	From time to time as may be reasonably requested by Agent (which request will not be made
more frequently than once each year absent the occurrence and continuance of a Default or an
Event of Default), Credit Parties shall supplement each Disclosure Schedule hereto, or any
representation herein or in any other Loan Document, with respect to any matter hereafter
arising that, if existing or occurring at the date of this Agreement, would have been
required to be set forth or described in such Disclosure Schedule or as an exception to such
representation or that is necessary to correct any information in such Disclosure Schedule
or representation which has been rendered inaccurate thereby (and, in the case of any
supplements to any Disclosure Schedule, such Disclosure Schedule shall be appropriately
marked to show the changes made therein); provided, that (a) no such supplement to any such
Disclosure Schedule or representation shall amend, supplement or otherwise modify any
Disclosure Schedule or representation, or be or be deemed a waiver of any Default or Event
of Default resulting from the matters disclosed therein, except as consented to by Agent and
Requisite Lenders in writing; and (b) no supplement shall be required or permitted as to
representations and warranties that relate solely to the Closing Date.

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	5.7	 	Intellectual Property
	 
	 	 	Each Credit Party will conduct its business and affairs without material infringement of or
material interference with any Intellectual Property of any other Person; provided, that to
the extent any Credit Party learns of any such material infringement or interference and
such Credit Party promptly takes steps to eliminate such infringement or interference (by
procuring a license or otherwise) such Credit Party shall not be deemed to be in violation
of this Section 5.7 so long as such Credit Party is entitled to continue to use such
Intellectual Property.

	5.8	 	Environmental Matters
	 
	 	 	Each Credit Party shall and shall cause each Person within its reasonable control to: (a)
conduct its operations and keep and maintain its Real Estate in compliance with all
Environmental Laws and Environmental Permits other than noncompliance that could not
reasonably be expected to have a Material Adverse Effect; (b) implement any and all
commercially reasonable investigation, remediation, removal and response actions that are
appropriate or necessary to comply in all material respects with Environmental Laws and
Environmental Permits pertaining to the presence, generation, treatment, storage, use,
disposal, transportation or Release of any Hazardous Material on, at, in, under, above, to,
from or about any of its Real Estate; (c) notify Agent promptly after such Credit Party
becomes aware of any violation of Environmental Laws or Environmental Permits or any Release
on, at, in, under, above, to, from or about any Real Estate which could reasonably be
expected to result in Environmental Liabilities in excess of $500,000; and (d) promptly
forward to Agent a copy of any order, notice, request for information or any written
communication or report received by such Credit Party in connection with any such violation
or Release or any other matter relating to any Environmental Laws or Environmental Permits
that could reasonably be expected to result in Environmental Liabilities in excess of
$500,000, in each case whether or not the Environmental Protection Agency or any
Governmental Authority has taken or threatened any action in connection with any such
violation, Release or other matter. If Agent at any time has a reasonable basis to believe
that there may be a violation of any Environmental Laws or Environmental Permits by any
Credit Party or any Environmental Liability arising thereunder, or a Release of Hazardous
Materials on, at, in, under, above, to, from or about any of its Real Estate, which, in each
case, could reasonably be expected to have a Material Adverse Effect, then Credit Parties
shall, upon Agent’s written request (i) cause the performance of an environmental audit,
which may include subsurface sampling of soil and groundwater, and preparation of an
environmental report with respect to the subject matter of such breach, at Credit Parties’
expense, as Agent may from time to time reasonably request, which shall be conducted by
reputable environmental consulting firms reasonably acceptable to Agent and shall be in form
and substance reasonably acceptable to Agent, and (ii) permit Agent or its representatives
to have access to all Real Estate for the purpose of conducting environmental audits and
testing with respect to the subject matter of such breach, as Agent deems appropriate,
including subsurface sampling of soil and groundwater, provided, that Agent provides
Borrower Representative with reasonable prior notice and conducts, or causes its
representatives to conduct, all such audits and tests in a manner reasonably directed to
minimize

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	 	 	interference with the applicable Credit Party’s business. Borrowers shall reimburse Agent
for the reasonable costs of such audits and tests and the same will constitute a part of the
Obligations secured hereunder.

	5.9	 	Landlords’ Agreements, Mortgagee Agreements, Bailee Letters, Real Estate Purchases and Vendor
Inter-Creditor Agreements

	 	(a)	 	If requested by Agent, Credit Party shall use its commercially reasonable
best efforts to obtain a landlord’s agreement, mortgagee agreement or bailee letter,
as applicable, from the lessor of each leased property, mortgagee of owned property or
bailee with respect to any warehouse, processor or converter facility or other
location where Collateral is stored or located (other than with respect to Equipment
Inventory which is being leased by a Borrower to others in the ordinary course of such
Borrower’s business), which agreement or letter shall contain a waiver or
subordination of all Liens or claims that the landlord, mortgagee or bailee may assert
against the Collateral at that location, and shall otherwise be reasonably
satisfactory in form and substance to Agent. If Agent has not received a landlord or
mortgagee agreement or bailee letter at any such location within thirty (30) days
following the first placement of Collateral at such location, the applicable
Borrower’s Eligible Parts and Tools Inventory, Eligible Rolling Stock or Eligible
Equipment Inventory at that location shall, in Agent’s discretion, be excluded from
the applicable Borrower’s Borrowing Base or be subject to such Reserves as may be
established in good faith by Agent in its reasonable credit judgment and as set forth
in Sections 1.6A, 1.7 and 1.7A. Borrower Representative shall notify Agent within
fifteen (15) days after any Credit Party enters into any lease of real property or
warehouse space or ships any Parts and Tools Inventory or Equipment Inventory to a
processor or converter under arrangements established after the Closing Date. Each
Credit Party shall timely and fully pay and perform its obligations in all material
respects under all leases and other agreements with respect to each leased location or
public warehouse where any Collateral is or may be located. To the extent otherwise
permitted hereunder, if any Credit Party proposes to acquire a fee ownership or
leasehold interest in Real Estate after the Closing Date, it shall first provide to
Agent written notice thereof and (at the reasonable request of Agent) a mortgage or
deed of trust granting Agent a first priority Lien on such Real Estate, together with,
to the extent reasonably requested by Agent, a FIRREA compliant appraisal,
environmental audits, mortgage title insurance commitment, real property survey, local
counsel opinions, supplemental casualty insurance and flood insurance, and such other
documents, instruments or agreements reasonably requested by Agent, in each case, in
form and substance reasonably satisfactory to Agent.
	 
	 	(b)	 	At the request of Agent, each applicable Borrower shall execute and deliver
or cause to be executed and delivered to Agent a mortgage or deed of trust granting to
Agent a first priority Lien on any Real Estate at any time owned by such Borrower (or,
if such Real Estate is subject to any prior Liens as of the Closing Date or, if
acquired after the

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	 	 	 	Closing Date, as of the date such Real Estate was acquired by the Borrower, a Lien
subject only to such prior Liens), together with, to the extent reasonably
requested by Agent, a FIRREA compliant appraisal, environmental audit, mortgage
title insurance commitment, real property survey, local counsel opinion and
supplemental casualty insurance, and such other documents, instruments or
agreements reasonably requested by Agent, in each case, in form and substance
satisfactory to Agent.
	 
	 	(c)	 	Within fifteen (15) days after entering into any financing arrangement
described in Section 6.7(c) or Section 6.7(d), a Borrower shall notify Agent. In the
event that a Borrower obtains knowledge of the assignment by any holder of any such
Lien referred to in Section 6.7(c) or Section 6.7(d), or the owner of any equipment
leased by such Borrower has transferred or sold such Lien or Equipment to another
Person, such Borrower shall notify Agent and use reasonable efforts to cause such
Person to enter into an applicable Vendor Inter-Creditor Agreement with such Person.

	5.10	 	Government Accounts
	 
	 	 	Each Borrower shall at any time upon reasonable request by the Agent prepare and deliver to
the Agent a report setting forth all of its Accounts on which the Account Debtor is the
United States or Canadian Government or a political subdivision thereof, or any state,
province or municipality or department, agency or instrumentality thereof, which such report
shall disclose the name of the Account Debtor, the amount of such Account and any other
information the Agent shall reasonably request.

	5.11	 	Further Assurances

	 	(a)	 	Each Credit Party shall ensure that all written information, exhibits and
reports, taken as a whole, furnished to the Agent or the Lenders do not and will not
contain any untrue statement of a material fact and do not and will not as of the date
such information, exhibits or reports are furnished, omit to state any material fact
or any fact necessary to make the statements, taken as a whole, contained therein not
misleading in light of the circumstances in which made, and will promptly disclose to
the Agent and the Lenders and correct any material defect or error that may be
discovered therein or in any Loan Document or in the execution, acknowledgement or
recordation thereof.
	 
	 	(b)	 	Promptly upon request by the Agent, the Credit Parties shall (and, subject to
the limitations hereinafter set forth, shall cause each of their Subsidiaries to) take
such additional actions as the Agent may reasonably require from time to time in order
(i) to carry out more effectively the purposes of this Agreement or any other Loan
Document, (ii) to subject to the Liens created by any of the Collateral Documents any
of the properties, rights or interests covered by any of the Collateral Documents,
(iii) to perfect and maintain the validity, effectiveness and priority of any of the
Collateral Documents and the Liens intended to be created thereby, and (iv) to better
assure, convey, grant, assign, transfer, preserve, protect and confirm to the Agent
and Lenders the rights

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	 	 	 	granted or now or hereafter intended to be granted to the Agent and the Lenders
under any Loan Document or under any other document executed in connection
therewith. Without limiting the generality of the foregoing and except as
otherwise approved in writing by Requisite Lenders, the Credit Parties shall cause
each of their Domestic Subsidiaries to guaranty the Obligations and to cause each
such Subsidiary to grant to the Agent, for the benefit of the Agent and Lenders, a
security interest in, subject to the limitations hereinafter set forth, all of such
Subsidiary’s property to secure such guaranty. Furthermore and except as otherwise
approved in writing by Requisite Lenders, each Credit Party shall, and shall cause
each of its Domestic Subsidiaries to, pledge all of the Stock and Stock equivalents
of each of its Domestic Subsidiaries, in each instance, to the Agent, for the
benefit of the Agent and Lenders, to secure the Obligations. In connection with
each pledge of Stock and Stock equivalents, the Credit Parties shall deliver, or
cause to be delivered, to the Agent, irrevocable proxies and stock powers and/or
assignments, as applicable, duly executed in blank. In the event any Credit Party
or any Domestic Subsidiary of any Credit Party acquires any real property,
simultaneously with such acquisition, such Person shall execute and/or deliver, or
cause to be executed and/or delivered, to the Agent, (x) a fully executed mortgage,
in form and substance reasonably satisfactory to the Agent together with an
A.L.T.A. lender’s title insurance policy issued by a title insurer reasonably
satisfactory to the Agent, in form and substance and in an amount reasonably
satisfactory to the Agent insuring that the mortgage is a valid and enforceable
first priority Lien on the respective property, free and clear of all defects,
encumbrances and Liens, (y) then current A.L.T.A. surveys, certified to the Agent
and the Lenders by a licensed surveyor sufficient to allow the issuer of the
lender’s title insurance policy to issue such policy without a survey exception and
(z) an environmental site assessment prepared by a qualified firm reasonably
acceptable to the Agent, in form and substance satisfactory to the Agent.

	6	 	NEGATIVE COVENANTS
	 
	 	 	Each Credit Party agrees jointly and severally as to all parties that from and after the
date hereof until the Termination Date:

	6.1	 	Acquisitions, Subsidiaries, Etc.
	 
	 	 	No Credit Party shall directly or indirectly, by operation of law or otherwise, (a) form or
acquire any Subsidiary or (b) merge with, consolidate with, acquire all or substantially all
of the assets or Stock of, or otherwise combine with or acquire, any Person; provided, that
any Credit Party may merge with another Credit Party, so long as (i) Borrower Representative
shall be the survivor of any such merger to which it is a party and (ii) a Borrower shall be
the survivor of any such merger to which one or more Borrowers is a party.

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		 	Notwithstanding the foregoing, any Borrower may acquire all or any substantial portion of
the assets or all of the Stock (other than assets consisting of Stock) of any Person (the
“Target”) (a“Permitted Acquisition”) subject to the satisfaction of each of the following conditions;
provided that to the extent that the consideration payable in connection with any Permitted
Acquisition does not exceed $10,000,000 and the aggregate consideration payable in
connection with all Permitted Acquisitions consummated by the Borrowers does not exceed
$25,000,000, each such Permitted Acquisition (each, an “Immaterial Permitted Acquisition”)
shall be subject only to the satisfaction of the conditions set forth in clauses (i), (ii),
(iii), (v), (vi), (vii), (ix), (xii) and (xiii) below:

	 	(i)	 	with respect to any proposed Permitted Acquisition that is not
an Immaterial Permitted Acquisition, Agent shall receive at least forty-five
(45) days prior written notice of such proposed Permitted Acquisition, which
notice shall include a detailed description of such proposed Permitted
Acquisition including, without limitation, financial statements of Target and
any other due diligence items requested by Lenders, and with respect to any
Immaterial Permitted Acquisition, Agent shall receive written notice of such
Permitted Acquisition promptly after consummation thereof;
	 
	 	(ii)	 	such Permitted Acquisition shall only involve a Target that
upon acquisition would constitute a Domestic Subsidiary and 75% or more of
whose assets are located in the United States and comprising or conducting a
business, or those assets of a business, of the type engaged in by such
Borrower as of the Closing Date or a business reasonably related thereto or a
logical extension thereof, and which business would not subject Agent or any
Lender to regulatory or third party approvals in connection with the exercise
of its rights and remedies under this Agreement or any other Loan Documents
other than approvals applicable to the exercise of such rights and remedies
with respect to such Borrower prior to such Permitted Acquisition;
	 
	 	(iii)	 	no additional Indebtedness or Guaranteed Indebtedness,
contingent obligations or other liabilities shall be incurred, assumed or
otherwise be reflected on a consolidated balance sheet of any Credit Party and
Target after giving effect to such Permitted Acquisition, except (A)
Indebtedness permitted under clause (v) and (B) ordinary course trade payables,
accrued expenses and unsecured Indebtedness and other liabilities and
contingent obligations of the Target to the extent no Default or Event of
Default has occurred and is continuing or would result after giving effect to
such Permitted Acquisition;
	 
	 	(iv)	 	such Permitted Acquisition shall not be hostile and shall have
been approved by all requisite corporate or limited liability company action,
as the case may be, of the Target;

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	 	(v)	 	no Indebtedness for borrowed money to finance such acquisitions
shall be incurred, guaranteed, assumed or consolidated in connection with such
Permitted Acquisitions other than Revolving Credit Advances subject to the
terms hereof;
	 
	 	(vi)	 	the business and assets acquired in such Permitted Acquisition
shall be free and clear of all Liens (other than Permitted Encumbrances);
	 
	 	(vii)	 	at or prior to the closing of any Permitted Acquisition, (x)
to the extent such Permitted Acquisition consists of the acquisition of assets
from Target, Agent will be granted a first priority perfected Lien (subject to
Permitted Encumbrances) in all assets acquired pursuant thereto and H&E
Delaware and its Subsidiaries shall have taken such actions and executed and
delivered such documents as Agent may have reasonably requested in connection
therewith and in addition, H&E Delaware and its Subsidiaries shall have
complied with the requirements of Section 5.9(a) in respect of any real
property acquired in such Permitted Acquisition and (y) to the extent such
Permitted Acquisition consists of the acquisition of the Stock of Target, (1)
Target shall have become a party to this Agreement pursuant to a joinder
agreement in form and substance satisfactory to Agent, (2) Target shall have
become a party to the Guaranty and Security Agreement pursuant to a Joinder
Agreement (as defined in the Guaranty and Security Agreement) in accordance
with Section 8.6 of the Guaranty and Security Agreement, (3) the Credit Parties
shall have executed and delivered a Pledge Amendment (as defined in the
Guaranty and Security Agreement) in accordance with Section 8.6 of the Guaranty
and Security Agreement providing to Agent a first priority perfected security
interest in all Stock of Target, together with certificates evidencing such
Stock and blank undated stock powers therewith, (5) Target shall have executed
and delivered such other Collateral Documents as Agent shall have required in
order to provide to Agent a first priority security interest (subject to
Permitted Encumbrances) in all then owned or thereafter acquired assets of
Target, in each case, together with such legal opinions, certificates and other
documents as Agent shall have reasonably requested, and (6) H&E Delaware and
its Subsidiaries shall comply and cause the Target to comply with all other
requirements of Section 5.11(b) as to such Target.
	 
	 	(viii)	 	Concurrently with delivery of the notice referred to in clause (i) above, the
Borrower Representative shall have delivered to Agent, in form and substance
satisfactory to Agent:

	 	(A)	 	(x) a pro forma consolidated and consolidating,
if applicable, balance sheet of H&E Delaware and its Subsidiaries (the
“Acquisition Pro Forma”), based on recent financial data, which shall
be complete and shall accurately and fairly represent the assets,
liabilities, financial

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	 	 	 	condition and results of operations of H&E
Delaware and its Subsidiaries in accordance with GAAP consistently
applied, but taking into account such Permitted Acquisition and the
funding of all Loans in connection therewith, and such Acquisition Pro
Forma shall reflect that on a pro
forma basis, no Event of Default has occurred and is continuing or
would result after giving effect to such Permitted Acquisition and
H&E Delaware and its Subsidiaries would have had a Fixed Charge
Coverage Ratio for the twelve month period reflected in the
Compliance Certificate most recently delivered to Agent pursuant to
Annex E prior to the consummation of such Permitted
Acquisition (after giving effect to such Permitted Acquisition and
all Loans funded in connection therewith as if made on the first day
of such period) of at least 1.10:1.00;
	 
	 	(B)	 	updated versions of the most recently delivered
operating plan in form reasonably satisfactory to the Agent taking into
account such Permitted Acquisition (the “Acquisition Projections”); and
	 
	 	(C)	 	a certificate of an Authorized Officer of the
Borrower Representative to the effect that: (w) such Borrower will be
Solvent upon the consummation of the Permitted Acquisition; (x) the
Acquisition Pro Forma fairly presents in all material respects the
financial condition of such Borrower and its Subsidiaries (on a
consolidated and consolidating basis, if applicable) as of the date
thereof after giving effect to the Permitted Acquisition; and (y) the
Acquisition Projections are based on assumptions believed by such
Borrower to be fair and reasonable in light of current market
conditions (it being acknowledged and agreed by Agent and Lenders that
projections as to future events are not to be viewed as facts and that
the actual results during the period or periods covered by such
projections may differ from the projected results);

	 	(ix)	 	Agent shall have received copies of the acquisition agreement
and related agreements and instruments, and all opinions, certificates, lien
search results and other documents reasonably requested by Agent, which
acquisition agreement, related agreements and other documents shall (x) in the
case of Permitted Acquisitions that are not Immaterial Permitted Acquisitions,
be delivered to Agent on or prior to the date of such Permitted Acquisition and
shall be in form and substance reasonably satisfactory to Agent and (y) in the
case of Immaterial Permitted Acquisitions, be delivered to Agent within ten
(10) days after the consummation of such Permitted Acquisition;
	 
	 	(x)	 	Agent and Lenders shall have received results of an appraisal
and audit of the Target, its assets, and its books and records, in form and
substance reasonably satisfactory to the Agent;

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	 	(xi)	 	the structure and terms of the Permitted Acquisition shall be
satisfactory to the Agent and no Credit Party shall acquire any liabilities in
such transaction other than those approved by the Agent or described in clause
(iii)(B);
	 
	 	(xii)	 	at the time of such Permitted Acquisition and after giving
effect thereto, no Default or Event of Default shall have occurred and be
continuing; and
	 
	 	(xiii)	 	at the time of such Permitted Acquisition and after giving effect thereto and
the making of any Loans in connection therewith, Borrowing Availability shall
exceed $40,000,000.

	6.2	 	Investments; Loans and Advances
	 
	 	 	Except as otherwise expressly permitted by this Section 6.2 and except as expressly
permitted by Section 6.3(b) and Section 6.14, no Credit Party shall make or permit to exist
any investment in, or make, accrue or permit to exist loans or advances of money to, any
Person (other than any other Credit Party), through the direct or indirect lending of money,
holding of securities or otherwise, except that (a) a Borrower may hold investments
comprised of notes payable, or stock or other securities issued by Account Debtors to such
Borrower pursuant to a bankruptcy proceeding of such Account Debtor or negotiated agreements
with respect to settlement of such Account Debtor’s Accounts, as applicable, in the ordinary
course of business, so long as the aggregate amount of such Accounts so settled by Borrowers
does not exceed $1,000,000; (b) a Borrower may acquire Intercompany Notes permitted to be
incurred under Section 6.3, (c) a Borrower may invest in P&E Capital Expenditures, (d) a
Credit Party may hold investments received pursuant to a sale of assets permitted under
Section 6.8, (e) a Credit Party may hold investments held in the ordinary course of business
in any Deposit Account subject to a Lien in favor of Agent, (f) a Credit Party may hold
investments in existence on the Closing Date and summarized in Disclosure Schedule
(6.2), (g) the Borrowers may make Permitted Acquisitions in accordance with Section 6.1,
and (h) so long as no Default or Event of Default or Cash Dominion Event has occurred and is
continuing, (A) Borrowers may make investments, subject to Control Letters or otherwise
subject to a perfected security interest in favor of Agent for the benefit of Lenders, in
(i) marketable direct obligations issued, unconditionally guaranteed or insured by the
United States of America or any agency thereof maturing within one year from the date of
acquisition thereof, (ii) commercial paper maturing no more than one year from the date of
creation thereof and currently having a minimum rating of A-1 from Standard & Poor’s Ratings
Group or P-1 from Moody’s Investors Service, Inc., (iii) checking and/or savings accounts
with commercial banks incorporated under the laws of the United States of America, that (A)
has Tier 1 Capital (as defined in such regulations) of not less than $1,000,000,000, (B) is
“adequately capitalized” (as defined in the regulations of its primary federal banking
regulators) and (C) has a senior secured rating of “A” or better by a nationally recognized
rating agency (an “A Rated Bank”), (iv) certificates of deposit, maturing no more than one
year from the date of creation thereof, issued by an A Rated Bank, (v) time deposits
(excluding deposits described in clause (iii) above), maturing no more than thirty (30) days
from the date of creation thereof with A Rated

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Banks, (vi) mutual funds that invest solely
in one or more of the investments described in clauses (i) through (v) above and (vii) other
investments (other than the Senior Unsecured Notes or, except as permitted by Section
6.3(b), other Indebtedness of a Credit Party) not exceeding $1,000,000 in aggregate amount
in which Agent has a perfected first priority security interest; and
(B) in addition to the investments set forth in clauses (i) through (v) of the foregoing
clause (A), at any time when there are no Revolving Loans outstanding hereunder, Borrower
may make investments, subject to Control Letters or otherwise subject to a perfected
security interest in favor of Agent for the benefit of Lenders, in (i) 2a-7 money market
mutual funds that (x) comply with the criteria set forth in SEC Rule 2a-7 under the
Investment Company Act of 1940, as amended, (y) are rated AAA by Standard & Poor’s Ratings
Group and Aaa by or Moody’s Investors Service, Inc. and (z) have portfolio assets of least
$5,000,000,000 and (ii) other investments (other than the Senior Unsecured Notes or, except
as permitted by Section 6.3(b), other Indebtedness of a Credit Party) not exceeding
$10,000,000 in aggregate amount in which Agent has a perfected first priority security
interest. Each Credit Party may maintain its existing investments in its Subsidiaries as of
the Closing Date.

	6.3	 	Indebtedness

	 	(a)	 	No Credit Party shall create, incur, assume or permit to exist any
Indebtedness, except (without duplication):

	 	(i)	 	Indebtedness secured by purchase money security interests,
Refinancing Liens and Capital Leases permitted in clause (c) or (d) of Section
6.7;
	 
	 	(ii)	 	the Loans and the other Obligations;
	 
	 	(iii)	 	deferred taxes, to the extent permitted under applicable law;
	 
	 	(iv)	 	unfunded pension fund and other employee benefit plan
obligations and liabilities to the extent they are permitted to remain unfunded
under applicable law;
	 
	 	(v)	 	existing Indebtedness described in Disclosure Schedule
(6.3) and refinancings thereof or amendments or modifications thereto that
do not have the effect of increasing the principal amount thereof or changing
the amortization thereof (other than to extend the same) and that are otherwise
on terms and conditions materially no less favorable, taken as a whole, to any
Credit Party than the terms of the Indebtedness being refinanced, amended or
modified;
	 
	 	(vi)	 	Indebtedness specifically permitted under Section 6.1;
	 
	 	(vii)	 	Indebtedness of Borrowers not exceeding $250,000,000 in
aggregate principal amount evidenced by Senior Unsecured Notes (less all
payments of principal and repurchases and redemptions thereof);

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	 	(viii)	 	Indebtedness consisting of intercompany loans and advances made by any
Borrower to any other Borrower; provided, that: (A) each Borrower shall have
executed and delivered to each other Borrower, on the Closing Date, a demand
note (collectively, the “Intercompany Notes”) to evidence any such intercompany
Indebtedness owing at any time by such Borrower to such other Borrowers, which
Intercompany Notes shall be in form and substance reasonably
satisfactory to Agent and shall be pledged and delivered to Agent pursuant
to the Guaranty and Security Agreement as additional collateral security for
the Obligations; (B) each Borrower shall record all intercompany
transactions on its books and records in a manner reasonably satisfactory to
Agent; (C) the obligations of each Borrower under any such Intercompany
Notes shall be subordinated to the Obligations of such Borrower hereunder in
a manner reasonably satisfactory to Agent; (D) at the time any such
intercompany loan or advance is made by any Borrower to any other Borrower
and after giving effect thereto, each such Borrower shall be Solvent; (E) no
Default or Event of Default would occur and be continuing after giving
effect to any such proposed intercompany loan; and (F) in the case of any
intercompany Indebtedness, the Borrower advancing such funds shall have
Borrowing Availability under its separate Borrowing Base of not less than
$1.00 after giving effect to such intercompany loan;
	 
	 	(ix)	 	Indebtedness owing to Affiliates and holders of Stock of such
Credit Party that constitutes Subordinated Debt, is unsecured, interest on
which is not payable in cash until after the Termination Date and as to which
no principal is payable until after the Termination Date;
	 
	 	(x)	 	Omitted;
	 
	 	(xi)	 	Indebtedness under Hedging Agreements to the extent permitted
under Section 6.17;
	 
	 	(xii)	 	unsecured Indebtedness not otherwise referred to in this
Section 6.3 not exceeding $1,000,000 in aggregate principal amount outstanding
at any time for all Credit Parties; and
	 
	 	(xiii)	 	hedging obligations under swaps, caps and collar arrangements arranged by GE
Capital or provided by any Lender entered into for the sole purpose of hedging
in the normal course of business and consistent with industry practices.

	 	(b)	 	No Credit Party shall, directly or indirectly, voluntarily purchase, redeem,
defease or prepay any principal of, premium, if any, interest or other amount payable
in respect of any Indebtedness of a Credit Party, other than (i) the Obligations, (ii)
Indebtedness secured by a Permitted Encumbrance if the asset securing such
Indebtedness has been sold or otherwise disposed of in accordance with Sections 6.8(b)
or (c), and (iii)

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	 	 	 	Indebtedness permitted by Section 6.3(a)(v) upon any refinancing
thereof in accordance with Section 6.3(a)(v),

	6.4	 	Employee Loans and Affiliate Transactions

	 	(a)	 	No Credit Party shall enter into or be a party to any transaction with any
Affiliate of any Credit Party (other than another Credit Party) thereof except as set
forth in Disclosure
Schedules (6.4(a)) or (6.4(b)), or except in the ordinary course of
such Credit Party’s business and upon fair and reasonable terms that are no less
favorable to such Credit Party than would be obtained in a comparable arm’s length
transaction with a Person not an Affiliate of such Credit Party; provided, that
other than a transaction described in Disclosure Schedules (6.4(a)) or
(6.4(b)), no Credit Party shall in any event enter into any such
transaction or series of related transactions (i) involving payments in excess of
$100,000 without disclosing to Agent in advance the terms of such transactions and
(ii) involving payments in excess of $500,000 in the aggregate. This clause (a)
shall not apply to transactions entered into in the ordinary course of business in
connection with (i) employee relocations; (ii) compensation or employment,
separation and severance of current and former officers, directors and employees of
the Credit Parties; (iii) the performance of any Credit Party’s obligations under
any collective bargaining agreement, employee benefit plan, related trust agreement
or any similar arrangement and (iv) the maintenance of benefit programs or
arrangements for employees, officers and directors of the Credit Parties, including
without limitation, deferred compensation plans.
	 
	 	(b)	 	All employee loans (except loans from a Qualified Plan) existing as of the
Closing Date are described in Disclosure Schedule (6.4(b)). No Credit Party
shall enter into any lending or borrowing transaction with any employees of any Credit
Party, except (i) loans to its respective employees in the ordinary course of
business, (ii) loans to executive officers of up to $500,000 to any executive officer
and up to a maximum of $1,000,000 in the aggregate at any time outstanding, and (iii)
relocation costs and similar purposes up to a maximum of $100,000 to any employee and
up to a maximum of $500,000 in the aggregate at any one time outstanding. No Credit
Party shall repurchase any Stock of any employee of such Credit Party, except as
permitted in the Credit Party’s equity incentive plans for income tax withholding
purposes and upon termination of such employee consistent with past practices for such
repurchase up to a maximum amount of $2,000,000 in the aggregate for all employees of
all Credit Parties in any one Fiscal Year; provided, that at the time of any such
repurchase and after giving effect thereto the aggregate Borrowing Availability for
all Borrowers is in excess of $40,000,000.

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	6.5	 	Capital Structure and Business

No Credit Party shall (a) make any changes in any of its business objectives, purposes or
operations that could in any way adversely affect the repayment of the Loans or any of the
other Obligations or could reasonably be expected to have or result in a Material Adverse
Effect, (b) except as contemplated under Sections 1.3(b)(iii) and 6.1, make any change in
its capital structure as described in Disclosure Schedule (3.8), including the
issuance or sale of any shares of Stock, warrants or other securities convertible into Stock
or any revision of the terms of its outstanding Stock, provided, that any Borrower may issue
or sell shares of its Stock for cash so long as (i) the proceeds thereof are applied in
prepayment of the Obligations as required by Section 1.3(b)(iii),
and (ii) no Change of Control occurs after giving effect thereto, and (iii) other than with
respect to H&E Delaware, such shares are pledged to the Agent for the benefit of the Lenders
pursuant to the Guaranty and Security Agreement, or (c) amend its charter, bylaws,
certificate of formation or operating agreement, each as applicable, in a manner that would
adversely affect Agent or Lenders or Credit Party’s duty or ability to repay the
Obligations. No Credit Party shall engage in any business other than the businesses
currently engaged in by it or reasonably related thereto or a logical extension thereof.

	6.6	 	Guaranteed Indebtedness

No Credit Party shall create, incur, assume or permit to exist any Guaranteed Indebtedness
except:

	 	(a)	 	for Guaranteed Indebtedness in existence on the Closing Date described in
Disclosure Schedule (6.6);
	 
	 	(b)	 	for Guaranteed Indebtedness incurred for the benefit of the purchasers of
Equipment Inventory to support sales by any Borrower or any Guarantor of such
Equipment Inventory in the ordinary course of business to such purchasers, not to
exceed $2,000,000 at any one time outstanding for all Credit Parties;
	 
	 	(c)	 	by endorsement of instruments or items of payment for deposit to the general
account of any Credit Party; and
	 
	 	(d)	 	for Guaranteed Indebtedness incurred for the benefit of any other Credit
Party if the primary obligation is expressly permitted by this Agreement other than
Indebtedness, if any, of a Target existing at the time such Target is acquired.

	6.7	 	Liens

No Credit Party shall create, incur, assume or permit to exist any Lien on or with respect
to its Accounts or any of its other properties or assets (whether now owned or hereafter
acquired) except for (each of the following, “Permitted Encumbrances”):

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	 	(a)	 	Permitted Liens;
	 
	 	(b)	 	Liens in existence on the Closing Date and summarized in Disclosure
Schedule (6.7) securing the Indebtedness described in Disclosure Schedule
(6.3) (other than under the heading “Vendor Financings” it being understood that
Liens reflected under such heading shall be permitted only if in compliance with
Section 6.7(c) or Section 6.7(d)) and permitted refinancings, extensions and renewals
thereof, including extensions or renewals of any such Liens, provided, that the
principal amount of the Indebtedness so secured is not increased and the Lien does not
attach to any other property;
	 
	 	(c)	 	Liens created by conditional sale or other title retention agreements
(including Capital Leases) or in connection with purchase money Indebtedness, in each
case, with respect to P&E and Fixtures acquired by a Credit Party in the ordinary
course of its business, involving the incurrence of an aggregate principal amount
under this clause (c) for all Credit Parties of not more than $50,000,000 outstanding
at any one time for all such Liens (provided, that (i) such Liens attach only to the
assets subject to such purchase money debt and proceeds thereof and, (ii) such
Indebtedness is incurred within ninety (90) days following such purchase);
	 
	 	(d)	 	(x) Liens created by conditional sale or other title retention agreements
(including Capital Leases) or in connection with any Floor Plan Financing or purchase
money Indebtedness provided by the seller of such Equipment Inventory or an Affiliate
of such seller or a third party financing source not affiliated with such seller or as
Refinancing Liens, in each case, with respect to Equipment Inventory purchased by a
Credit Party in the ordinary course of its business, involving the incurrence of an
aggregate principal amount under this clause (x) for all Credit Parties of not more
than $175,000,000 outstanding at any one time for all such Liens and (y) Liens on
rental proceeds of Equipment Inventory leased by any Borrower securing true lease
obligations of such Borrower of such Equipment Inventory; provided, that in the case
of (x) and (y) (i) such Liens attach only to (1) the Equipment Inventory subject to
such conditioned sale or title retention agreements (including Capital Leases),
purchased with the proceeds of such purchase money Indebtedness or subject to the Open
Account Refinancing and or (2) such rental proceeds, in each case, except as otherwise
permitted by any agreement referred to in subparagraph (iii) below, (ii) such
Indebtedness is incurred at the time of such purchase of such Equipment Inventory by
such Credit Party or, in the case of Open Account Refinancing, within twelve (12)
months following original purchase by such Credit Party on Open Account of such
Equipment Inventory, and (iii) a Vendor Inter-Creditor Agreement between the holder of
such Lien and Agent (in the form of Exhibit 6.7(d)(iii)(A) in the case of
Floor Plan Equipment Inventory, and in the form of Exhibit 6.7(d)(iii)(B) in
the case of Off Balance Sheet Equipment Inventory, in each case with such changes
thereto as may be reasonably acceptable to Agent or such other form of intercreditor
agreement as Agent may approve) has been delivered to Agent, provided,

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	 	 	 	however, that
notwithstanding the foregoing, the Credit Parties may have outstanding true lease
obligations secured by a Lien described in clause (y) of in this paragraph (d) without
a Vendor Inter-Creditor Agreement so long as the aggregate amount of such true lease
obligations does not exceed $10,000,000 in the aggregate for all Credit Parties,
excluding, purchase option amounts payable under any such true leases, it being
understood that the Agent may establish Reserves in respect of any such true lease
obligations for which no Vendor Inter-Creditor Agreement has been delivered. In
addition, no Credit Party shall become a party to any agreement, note, indenture or
instrument, or take any other action, that would prohibit the creation of a Lien on
any of its properties or other assets in favor of Agent, on behalf of itself and
Lenders, as
additional collateral for the Obligations, except true leases, Capital Leases or
Licenses which prohibit Liens upon the assets that are subject thereto; and
	 
	 	(e)	 	Liens on Parts and Tools Inventory for all Credit Parties of not more than
$3,000,000 outstanding at any one time for such Liens.

	6.8	 	Disposition of Stock and Assets

No Credit Party shall sell, lease, license, transfer, convey, assign or otherwise dispose of
any of its properties or other assets (other than cash), including the Stock of any of its
Subsidiaries (whether in a public or a private offering or otherwise) or any of their
Accounts, other than:

	 	(a)	 	the sale or lease by a Borrower of Equipment Inventory in the ordinary course
of its business;
	 
	 	(b)	 	the sale, transfer, conveyance or other disposition by a Credit Party of P&E,
Equipment Inventory, Fixtures or Real Estate that are obsolete or no longer used or
useful in such Credit Party’s business and having a Net Book Value not exceeding
$5,000,000 for all Credit Parties in the aggregate;
	 
	 	(c)	 	the sale, transfer, conveyance or other disposition by a Credit Party of
Equipment Inventory that is part of a discontinued line;
	 
	 	(d)	 	the sale, transfer, conveyance or other disposition by a Credit Party of
other P&E and Fixtures having a value not exceeding $1,000,000 in any single
transaction or $3,000,000 in the aggregate for all Credit Parties in any Fiscal Year;
	 
	 	(e)	 	the non-exclusive licensing, termination, abandonment, sales, transfers or
other dispositions of Intellectual Property by any Credit Party in the ordinary course
of its business or that are no longer used or useful in such Credit Party’s business;
	 
	 	(f)	 	the sale, transfer, conveyance or other disposition of assets from a Borrower
to another Borrower; and

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	 	(g)	 	a trade-in or trade-up of assets (pursuant to which such Credit Party
acquires a substantially similar asset to the one disposed of within forty-five (45)
days following such disposition and the value of the asset disposed of is credited
against the purchase price of the asset so acquired) by a Credit Party in the
ordinary course of its business.

	 	 	With respect to any disposition of assets or other properties permitted pursuant to the
foregoing clauses (b), (c), (d) and (e) (except as such clause (e) relates to non-exclusive
licensing of Intellectual Property), subject to Section 1.3(b), in accordance with the
provisions of Section 9.11, Agent agrees on reasonable prior written notice to release its
Lien on such assets or properties in order to permit the applicable Credit Party to effect
such disposition and shall execute and deliver to such Credit Party, at such Credit Party’s
expense, appropriate UCC-3 termination statements and other releases as reasonably requested
by such Credit Party.
	 
	6.9	 	ERISA
	 
	 	 	No Credit Party shall, nor shall it cause or permit any ERISA Affiliate to, cause or permit
to occur an event that could result in the imposition of a Lien under Section 412(n) of the
IRC or Section 302(f) or 4068 of ERISA or cause or permit to occur an ERISA Event to the
extent such Lien or such ERISA Event could reasonably be expected to have a Material Adverse
Effect.
	 
	6.10	 	Financial Covenants
	 
	 	 	No Borrower shall breach or fail to comply with any of the Financial Covenants.
	 
	6.11	 	Hazardous Materials
	 
	 	 	No Credit Party shall cause or permit a Release of any Hazardous Material on, at, in, under,
above, to, from or about any of the Real Estate where such Release would (a) violate in any
respect, or form the basis for any Environmental Liabilities under, any Environmental Laws
or Environmental Permits or (b) otherwise adversely impact the value or marketability of any
of the Real Estate or any of the Collateral, other than such violations or impacts that
could not reasonably be expected to have a Material Adverse Effect.
	 
	6.12	 	Omitted
	 
	6.13	 	Cancellation of Indebtedness
	 
	 	 	Except as permitted by Section 6.3(b), no Credit Party shall cancel any claim or debt owing
to it having a face value exceeding $100,000 except for reasonable consideration negotiated
on an arm’s-length basis and in the ordinary course of its business consistent with past
practices.
	 
	6.14	 	Restricted Payments
	 
	 	 	No Credit Party shall make any Restricted Payment, except:

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	 	(a)	 	intercompany loans and advances between Borrowers and payments of principal
and interest on Intercompany Notes, in each case to the extent permitted by Section
6.3;

	 	(b)	 	dividends and distributions by Subsidiaries of any Borrower paid to such
Borrower;

	 	(c)	 	employee loans permitted under Section 6.4(b) above;

	 	(d)	 	scheduled payments of interest as and when due and payable with respect to
the Subordinated Debt, subject to the subordination terms thereof;

	 	(e)	 	repurchases of Stock of any employee of such Credit Party upon termination of
such employee, subject to Section 6.4(b), provided, that in the case of this clause
(e) no Default or Event of Default shall have occurred and be continuing or would
result after giving effect to any Restricted Payment pursuant this clause (e); and

	 	(f)	 	distributions of Stock of such Credit Party in connection with the cashless
exercise of options by the holders of options for Stock of such Credit Party.

	6.15	 	Change of Name or Location; Change of Fiscal Year
	 
	 	 	No Credit Party shall (a) change its name as it appears in official filings in the state of
its incorporation or organization, or (b) change its offices or warehouses or locations at
which Collateral is held or stored, or the location of its records concerning the Collateral
(other than to any location set forth in Disclosure Schedule (3.2) or to any
location identified to the Agent within ten (10) days after such change), (c) change the
type of entity that it is, (d) change its organization identification number, if any, issued
by its state of incorporation or organization, or (e) change its state of incorporation or
organization, in the case of clauses (a), (c), (d) and (e), without at least thirty (30)
days prior written notice to Agent and after Agent’s written acknowledgment that any
reasonable action requested by Agent in connection therewith, including to continue the
perfection of any Liens in favor of Agent, on behalf of Lenders, in any Collateral, has been
completed or taken; provided that any such new location shall be in the continental United
States. Without limiting the foregoing, no Credit Party shall change its name, identity or
limited liability company (or corporate, as the case may be) structure in any manner that
might make any financing or continuation statement filed in connection herewith seriously
misleading within the meaning of Section 9 506 or 9 507 of the Code or any other then
applicable provision of the Code except upon prior written notice to Agent and Lenders and
after Agent’s written acknowledgment that any reasonable action requested by Agent in
connection therewith, including to continue the perfection of any Liens in favor of Agent,
on behalf of Lenders, in any Collateral, has been completed or taken. No Credit Party shall
change its Fiscal Year without the prior consent of Agent.

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	6.16	 	No Impairment of Intercompany Transfers
	 
	 	 	No Credit Party shall directly or indirectly enter into or become bound by any agreement,
instrument, indenture or other obligation (other than this Agreement and the other Loan
Documents) that could directly or indirectly restrict, prohibit or require the consent of
any Person with respect to the payment of dividends or distributions or the making or
repayment of intercompany loans by a Subsidiary of a Borrower to such Borrower or between
Borrowers.
	 
	6.17	 	No Speculative Transactions
	 
	 	 	No Credit Party shall engage in any transaction involving commodity options, futures
contracts or similar transactions, except solely to hedge against fluctuations in the prices
of commodities owned or purchased by it and the values of foreign currencies receivable or
payable by it and interest swaps, caps or collars under a Hedging Agreement; provided that
(i) any such Hedging Agreement must have a Lender as the sole counterparty or be arranged by
GE Capital, (ii) at any time, the aggregate amount payable upon termination, liquidation or
cancellation of such Hedging Agreements for all Credit Parties, calculated in accordance
with GAAP, shall not exceed $10,000,000 and (iii) at any time, Agent may maintain Reserves
in the amount of such aggregate amount.
	 
	6.18	 	Changes Relating to Senior Unsecured Notes; Subordinated Debt Designation of Credit Facility

	 	(a)	 	No Credit Party shall change or amend the terms of the Senior Unsecured Note
Indenture or Senior Unsecured Notes or any Subordinated Debt without the prior written
consent of the Requisite Lenders.

	 	(b)	 	No Credit Party shall designate any credit agreement, credit facility,
documents, agreement or indebtedness as a “Credit Facility” under and as such term is
defined in the Senior Unsecured Note Indenture, as originally in effect, other than,
in each case, this Agreement. Borrowers hereby designate this Agreement and the
credit facilities now or hereafter created hereunder as a “Credit Facility” under and
as such term is defined in the Senior Unsecured Note Indenture.

	 	(c)	 	No Credit Party shall incur any Indebtedness pursuant to clause (1) or clause
(16) of Section 4.09(b) of the Senior Unsecured Note Indenture other than Indebtedness
incurred under this Agreement.

	6.19	 	Changes in Depreciation Schedules
	 
	 	 	No Credit Party shall change or amend in any material respect the schedules or methodology
used to calculate depreciation on its assets (except as required by applicable law or by a
change in GAAP).

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	6.20	 	Credit Parties Other than Borrowers
	 
	 	 	None of H&E Finance or GNE Investments shall engage in any trade or business, or own any
assets (other than Stock of its Subsidiaries) or incur any Indebtedness or Guaranteed
Indebtedness (other than the Obligations); provided that (i) H&E Finance may consummate the
transactions
contemplated by the Senior Unsecured Note Indenture and (ii) GNE Investments may provide the
guaranty of the Senior Unsecured Notes as provided for in the Senior Unsecured Note
Indenture.
	 
	6.21	 	Lock Box Remittances; Vendor Payments
	 
	 	 	No Credit Party shall make, direct or permit any remittance to be made into any lock box
maintained for the benefit of Agent that is subject to any Lien or claim or other interest
of any Person, other than Liens in favor of Agent, on behalf of itself and Lenders, and
Liens in favor of the applicable depository bank permitted by the applicable lock box or
pledged account agreement with such depository bank; provided, that the Credit Parties shall
not be in default under this Section 6.21 if the amount on deposit in the deposit accounts
associated with all such lock boxes and subject to any Lien or claim of any Person (other
than the Agent, on behalf of itself and Lenders and the depositary bank) does not exceed
$200,000 in the aggregate at any time. No Credit Party shall send an invoice or otherwise
bill any purchaser with respect to the sale by such Credit Party of any Floor Plan Equipment
Inventory or any Off Balance Sheet Equipment Inventory (that has been purchased by a Credit
Party) more than ten (10) days prior to the payment by such Credit Party of the purchase
price of such Floor Plan Equipment Inventory or such Off Balance Sheet Equipment Inventory
into such a lock box; provided, that Agent may, at any time in good faith and its reasonable
credit judgment, establish Reserves in the amount of the purchase price for any such Floor
Plan Equipment Inventory or Off Balance Sheet Equipment Inventory prior to the payment by
such Credit Party of such purchase price into such lock box; provided, further, that for the
avoidance of doubt, no Floor Plan Equipment Inventory or Off Balance Sheet Equipment
Inventory shall constitute Eligible Equipment Inventory prior to the payment in full of the
purchase price therefor and the release of the Lien of the seller or third party financing
source (as applicable) on such Floor Plan Equipment Inventory or Off Balance Sheet Equipment
Inventory (as applicable). Each Credit Party shall comply in all material respects with all
requirements of each Vendor Inter-Creditor Agreement and shall give all notices and take all
other actions under each Vendor Inter-Creditor Agreement to insure compliance with the
requirements of this Section 6.21.
	 
	7	 	 TERM
	 
	7.1	 	Termination
	 
	 	 	The financing arrangements contemplated hereby shall be in effect until the Commitment
Termination Date, and the Loans and all other Obligations shall be automatically due and
payable in full on such date.

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	7.2	 	Survival of Obligations Upon Termination of Financing Arrangements
	 
	 	 	Except as otherwise expressly provided for in the Loan Documents, no termination or
cancellation (regardless of cause or procedure) of any financing arrangement under this
Agreement shall in any way affect or impair the obligations, duties and liabilities of
Credit Parties or the rights of Agent and Lenders relating to any unpaid portion of the
Loans or any other
Obligations, due or not due, liquidated, contingent or unliquidated, or any transaction or
event occurring prior to such termination, or any transaction or event, the performance of
which is required after the Commitment Termination Date. Except as otherwise expressly
provided herein or in any other Loan Document, all undertakings, agreements, covenants,
warranties and representations of or binding upon any Credit Party, and all rights of Agent
and each Lender, all as contained in the Loan Documents, shall not terminate or expire, but
rather shall survive any such termination or cancellation and shall continue in full force
and effect until the Termination Date, whereupon it shall terminate; provided, that the
provisions of Section 11, the payment obligations under Sections 1.15 and 1.16, and the
indemnities contained in the Loan Documents shall survive the Termination Date and provided
further that the indemnities contained in the Loan Documents in favor of a Lender shall
survive the assignment by such Lender of the Commitments and Loans of such Lender.
	 
	8	 	EVENTS OF DEFAULT: RIGHTS AND REMEDIES
	 
	8.1	 	Events of Default
	 
	 	 	The occurrence of any one or more of the following events (regardless of the reason
therefor) shall constitute an “Event of Default” hereunder:

	 	(a)	 	Any Borrower (i) fails to make any payment of principal of the Loans or any
of the other Obligations when due and payable, or fails to provide cash collateral as
and when required, (ii) fails to make any payment of interest on, or Fees owing in
respect of, the Loans or any of the other Obligations within three (3) Business Days
after such interest or Fees becomes due and payable, or (iii) fails to pay or
reimburse Agent or Lenders for any expense reimbursable hereunder or under any other
Loan Document within ten (10) days following Agent’s demand for such reimbursement or
payment of expenses.

	 	(b)	 	Any Credit Party fails or neglects to perform, keep or observe any of the
provisions of Sections 1.4, 1.8, 5.4(a) or 6 applicable to it, or any of the
provisions set forth in Annexes C, E or G, respectively,
applicable to it, and with respect to clause (a) of Annex E, such default
shall remain unremedied for two (2) Business Days (as such period of time may be
extended by up to twenty (20) days by Agent), and with respect to Section 1.8, Section
5.4(a) (other than with respect to the Credit Parties’ obligation to maintain the
insurance described therein), and clauses (c), (e), (j) or (k) of Annex E,
such default shall remain unremedied for five (5) days (as such period of time may be
extended by up to twenty (20) days by Agent).

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	 	(c)	 	Any Credit Party fails or neglects to perform, keep or observe any of the
provisions of Section 4.1(b) or any provisions set forth in Annex F applicable
to it and with respect to clause (a)(i) of Annex F, such default shall remain
unremedied for two (2) Business Days (as such period of time may
be extended by up to twenty (20) days
by Agent), and with respect to all other provisions of Section 4(b) and Annex
F, such default shall remain unremedied for five (5) days or
more (as such period of time may
be extended by up to twenty (20) days by Agent).

	 	(d)	 	Any Credit Party fails or neglects to perform, keep or observe any other
provision of this Agreement or of any of the other Loan Documents applicable to it,
(other than any provision embodied in or covered by any other clause of this Section
8.1) and the same shall remain unremedied for thirty (30) days or more.

	 	(e)	 	A default or breach occurs under any other agreement, document or instrument
to which any Credit Party is a party that is not cured within any applicable grace
period therefor, and such default or breach (i) involves the failure to make any
payment when due in respect of any Indebtedness or Guaranteed Indebtedness (other than
the Obligations) of any Credit Party, including Indenture Debt, in excess of
$2,000,000 in the aggregate (including (x) undrawn committed or available amounts and
(y) amounts owing to all creditors under any combined or syndicated credit
arrangements), or in respect of any true lease under which any Credit Party is lessee
under which the aggregate cost of the leased property exceeds $2,000,000, or (ii)
causes, or permits any holder of such Indebtedness or Guaranteed Indebtedness or a
trustee to cause, Indebtedness or Guaranteed Indebtedness or a portion thereof,
including Indenture Debt, in excess of $2,000,000 in the aggregate, or rent in excess
of $2,000,000 in the aggregate, to become due prior to its stated maturity or prior to
its regularly scheduled dates of payment, or cash collateralized in respect thereof to
be demanded, in each case, regardless of whether such right is exercised, by such
holder or trustee.

	 	(f)	 	Any information contained in any Borrowing Base Certificate is untrue or
incorrect in any respect (other than inadvertent, immaterial errors not exceeding
$5,000,000 in the aggregate in any Borrowing Base Certificate), or any representation
or warranty herein or in any Loan Document or in any written statement, report,
financial statement or certificate (other than a Borrowing Base Certificate) made or
delivered to Agent or any Lender by any Credit Party is untrue or incorrect in any
material respect as of the date when made or deemed made.

	 	(g)	 	Assets with a value in excess of $2,000,000 of any Credit Party are attached,
seized, levied upon or subjected to a writ or distress warrant, or come within the
possession of any receiver, trustee, custodian or assignee for the benefit of
creditors of any Credit Party and such condition continues for sixty (60) days or
more.

	 	(h)	 	A case or proceeding is commenced against any Credit Party seeking a decree
or order in respect of such Credit Party (i) under the Bankruptcy Code, or any other
applicable

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	 	 	 	federal, state or foreign bankruptcy or other similar law, (ii) appointing
a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar
official) for such Credit Party or for any substantial part of any such Credit Party’s
assets, or (iii) ordering the winding-up or liquidation of the affairs of such Credit
Party, and such case or proceeding shall remain undismissed or unstayed for sixty (60)
days or more or a decree or order granting the relief sought in such case or
proceeding shall be entered by a court of competent jurisdiction.

	 	(i)	 	Any Credit Party (i) files a petition seeking relief under the Bankruptcy
Code, or any other applicable federal, state or foreign bankruptcy or other similar
law, (ii) consents to or fails to contest in a timely and appropriate manner the
institution of proceedings thereunder or the filing of any such petition or the
appointment of or taking possession by a custodian, receiver, liquidator, assignee,
trustee or sequestrator (or similar official) for such Credit Party or for any
substantial part of any such Credit Party’s assets, (iii) makes an assignment for the
benefit of creditors, (iv) takes any action in furtherance of any of the foregoing or
(v) admits in writing its inability to, or is generally unable to, pay its debts as
such debts become due.

	 	(j)	 	A final judgment or judgments for the payment of money in excess of
$2,000,000 in the aggregate at any time are outstanding against one or more of the
Credit Parties and the same are not, within thirty (30) days after the entry thereof,
discharged or execution thereof stayed or bonded pending appeal, or such judgments are
not discharged prior to the expiration of any such stay.

	 	(k)	 	Any material provision of any Loan Document for any reason ceases to be
valid, binding and enforceable in accordance with its terms (or any Credit Party shall
challenge the enforceability of any Loan Document or shall assert in writing, or
engage in any action or inaction based on any such assertion, that any provision of
any of the Loan Documents has ceased to be or otherwise is not valid, binding and
enforceable in accordance with its terms), or any Lien created under any Loan Document
on assets with a value in excess of $5,000,000 in the aggregate ceases to be a valid
and perfected first priority Lien (except as otherwise permitted herein or therein) in
any of the Collateral purported to be covered thereby.

	 	(l)	 	Any Change of Control occurs.

	8.2	 	Remedies

	 	(a)	 	If any Default or Event of Default has occurred and is continuing, Agent may
(and at the written request of the Requisite Lenders shall), without notice, suspend
this facility with respect to additional Advances and/or the incurrence of additional
Letter of Credit Obligations, whereupon any additional Advances and additional Letter
of Credit Obligations shall be made or incurred in Agent’s sole discretion (or in the
sole discretion of the Requisite Lenders, if such suspension occurred at their
direction) so

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	 	 	 	long as such Default or Event of Default is continuing. If any Default
or Event of Default has occurred and is continuing, Agent may (and at the written
request of Requisite Lenders shall), without notice except as otherwise expressly
provided herein, increase the rate of interest applicable to the Loans and the Letter
of Credit Fees to the Default Rate.

	 	(b)	 	If any Event of Default has occurred and is continuing, Agent may (and at the
written request of the Requisite Lenders shall), without notice, (i) terminate this
facility with
respect to further Advances or the incurrence of further Letter of Credit
Obligations, (ii) declare all or any portion of the Obligations, including all or
any portion of any Loan to be forthwith due and payable, and require that the
Letter of Credit Obligations be cash collateralized as provided in Annex B,
all without presentment, demand, protest or further notice of any kind, all of
which are expressly waived by each Credit Party, or (iii) exercise any rights and
remedies provided to Agent under the Loan Documents or at law or equity, including
all remedies provided under the Code; provided, that upon the occurrence of an
Event of Default specified in Section 8.1(h) or Section 8.1(i), all of the
Obligations, including the Revolving Loan, shall become immediately due and payable
without declaration, notice or demand by any Person.

	8.3	 	Waivers by Credit Parties

	 	 	Except as otherwise provided for in this Agreement or by applicable law, each Credit Party
waives (including for purposes of the Guaranty and Security Agreement): (a) presentment,
demand and protest and notice of presentment, dishonor, notice of intent to accelerate,
notice of acceleration, protest, default, nonpayment, maturity, release, compromise,
settlement, extension or renewal of any or all commercial paper, accounts, contract rights,
documents, instruments, chattel paper and guaranties at any time held by Agent on which any
Credit Party may in any way be liable, and hereby ratifies and confirms whatever Agent may
do in this regard, (b) all rights to notice and a hearing prior to Agent’s taking possession
or control of, or to Agent’s replevy, attachment or levy upon, the Collateral or any bond or
security that might be required by any court prior to allowing Agent to exercise any of its
remedies, and (c) the benefit of all valuation, appraisal, marshalling and exemption laws.

9 ASSIGNMENT AND PARTICIPATIONS; APPOINTMENT OF AGENT

	9.1	 	Assignments and Participations; Binding Effect

	 	(a)	 	Binding Effect

	 	 	 	This Agreement shall become effective when it shall have been executed by
Borrowers, the other Credit Parties signatory hereto and Agent and when Agent shall
have been notified by each Lender that such Lender has executed it. Thereafter, it
shall be binding upon and inure to the benefit of, but only to the benefit of,
Borrowers, the other Credit Parties hereto (in each case except for the Sections
9.2, 9.3, 9.4, 9.5, 9.6, 9.8 and 9.9),

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	 	 	 	Agent, each Lender and each L/C Issuer
receiving the benefits of the Loan Documents and, in each case, their respective
successors and permitted assigns. Except as expressly provided in any Loan
Document (including in Section 9.7), none of any Borrower, any other Credit Party,
any L/C Issuer or Agent shall have the right to assign any rights or obligations
hereunder or any interest herein.

	 	(b)	 	Right to Assign
Each Lender may sell, transfer, negotiate or assign (a “Sale”) all or a portion of
its rights and obligations hereunder (including all or a portion of its Commitments
and its rights and obligations with respect to Loans and Letters of Credit) to (i)
any existing Lender (other than a Non-Funding Lender or Impacted Lender), (ii) any
Affiliate or Approved Fund of any existing Lender (other than a Non-Funding Lender
or Impacted Lender) or (iii) any other Person (other than a Credit Party or an
Affiliate thereof) acceptable (which acceptance shall not be unreasonably withheld
or delayed) to Agent and, as long as no Event of Default is continuing, Borrower
Representative and, with respect to Sales of Revolving Loan Commitments, each L/C
Issuer that is a Lender (which acceptances of L/C Issuer and Borrower
Representative shall be deemed to have been given unless an objection is delivered
to Agent within five (5) Business Days after notice of a proposed Sale is delivered
to Borrower Representative); provided, however, that (w) such assignment shall be
conditioned on such assignee Lender representing to the assigning Lender and Agent
that it is purchasing the applicable Loans to be assigned to it for its own
account, for investment purposes and not with a view to the distribution thereof,
(x) for each Loan, the aggregate outstanding principal amount (determined as of the
effective date of the applicable Assignment Agreement) of the Loans, Commitments
and Letter of Credit Obligations subject to any such Sale shall be in a minimum
amount of $1,000,000, unless such Sale is made to an existing Lender or an
Affiliate or Approved Fund of any existing Lender, is of the assignor’s (together
with its Affiliates and Approved Funds) entire interest in such facility or is made
with the prior consent of Borrower Representative (to the extent Borrower
Representative’s consent is otherwise required) and Agent, (y) interest accrued
prior to and through the date of any such Sale may not be assigned, and (z) such
Sales by Lenders who are Non-Funding Lenders due to clause (a) of the definition of
Non-Funding Lenders shall be subject to Agent’s prior written consent in all
instances, unless in connection with such sale, such Non-Funding Lender cures, or
causes the cure of, its Non-Funding Lender status as contemplated in Section
9.10(d)(v). Agent’s refusal to accept a Sale to a holder of Subordinated Debt or
an Affiliate of such a holder, or to a Person that would be a Non-Funding or an
Impacted Lender, or the imposition of conditions or limitations (including
limitations on voting) upon Sales to such Persons, shall not be deemed to be
unreasonable.

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	 	(c)	 	Procedure

	 	 	 	The parties to each Sale made in reliance on clause (b) above (other than those
described in clause (e) or (f) below) shall execute and deliver to Agent an
Assignment Agreement via an electronic settlement system designated by Agent (or,
if previously agreed with Agent, via a manual execution and delivery of the
Assignment Agreement) evidencing such Sale, together with any existing Note subject
to such Sale (or any affidavit of loss therefor acceptable to Agent), any tax forms
required to be delivered pursuant to Section 1.15 and payment of an assignment fee
in the amount of $3,500 to Agent, unless waived or reduced by Agent; provided that
(i) if a Sale by a Lender is made to an Affiliate or an Approved Fund of such
assigning Lender, then no assignment
fee shall be due in connection with such Sale, and (ii) if a Sale by a Lender is
made to an assignee that is not an Affiliate or Approved Fund of such assignor
Lender, and concurrently to one or more Affiliates or Approved Funds of such
Assignee, then only one assignment fee of $3,500 shall be due in connection with
such Sale (unless waived or reduced by Agent). Upon receipt of all the foregoing,
and conditioned upon such receipt and, if such Assignment Agreement is made in
accordance with clause (iii) of Section 9.1(b), upon Agent (and Borrower
Representative, if applicable) consenting to such Assignment Agreement, from and
after the effective date specified in such Assignment Agreement, Agent shall record
or cause to be recorded in the Register the information contained in such
Assignment Agreement.

	 	(d)	 	Effectiveness

	 	 	 	Subject to the recording of an Assignment Agreement by Agent in the Register,
(i) the assignee thereunder shall become a party hereto and, to the extent that
rights and obligations under the Loan Documents have been assigned to such assignee
pursuant to such Assignment Agreement, shall have the rights and obligations of a
Lender, (ii) any applicable Note shall be transferred to such assignee through such
entry and (iii) the assignor thereunder shall, to the extent that rights and
obligations under this Agreement have been assigned by it pursuant to such
Assignment Agreement, relinquish its rights (except for those surviving the
termination of the Commitments and the payment in full of the Obligations) and be
released from its obligations under the Loan Documents, other than those relating
to events or circumstances occurring prior to such assignment (and, in the case of
an Assignment Agreement covering all or the remaining portion of an assigning
Lender’s rights and obligations under the Loan Documents, such Lender shall cease
to be a party hereto).

	 	(e)	 	Grant of Security Interests

	 	 	 	In addition to the other rights provided in this Section 9.1, each Lender may grant
a security interest in, or otherwise assign as collateral, any of its rights under
this Agreement, whether now owned or hereafter acquired (including rights to
payments of principal or interest on the Loans), to (A) any federal reserve bank
(pursuant to Regulation A of the Federal Reserve Board), without notice to Agent or
(B) any holder

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	 	 	 	of, or trustee for the benefit of the holders of, such Lender’s
Indebtedness or equity securities, by notice to Agent; provided, however, that no
such holder or trustee, whether because of such grant or assignment or any
foreclosure thereon (unless such foreclosure is made through an assignment in
accordance with clause (b) above), shall be entitled to any rights of such Lender
hereunder and no such Lender shall be relieved of any of its obligations hereunder.

	 	(f)	 	Participants and SPVs

	 	 	 	In addition to the other rights provided in this Section 9.1, each Lender may, (x)
with notice to Agent, grant to an SPV the option to make all or any part of any
Loan that such Lender would otherwise be required to make hereunder (and the
exercise of such option by such SPV and the making of Loans pursuant thereto shall
satisfy the obligation of such Lender to make such Loans hereunder) and such SPV
may assign to such Lender the right to receive payment with respect to any
Obligation and (y) without notice to or consent from Agent or any Borrower, sell
participations to one or more Persons in or to all or a portion of its rights and
obligations under the Loan Documents (including all its rights and obligations with
respect to Revolving Loans and Letters of Credit); provided, however, that, whether
as a result of any term of any Loan Document or of such grant or participation, (i)
no such SPV or participant shall have a commitment, or be deemed to have made an
offer to commit, to make Loans hereunder, and, except as provided in the applicable
option agreement, none shall be liable for any obligation of such Lender hereunder,
(ii) such Lender’s rights and obligations, and the rights and obligations of the
Credit Parties towards such Lender, under any Loan Document shall remain unchanged
and each other party hereto shall continue to deal solely with such Lender, which
shall remain the holder of the Obligations in the Register, except that (A) each
such participant and SPV shall be entitled to the benefit of Sections 1.15 and
1.16, but, with respect to Section 1.15, only to the extent such participant or SPV
delivers the tax forms such Lender is required to collect pursuant to Section
1.15(c) and then only to the extent of any amount to which such Lender would be
entitled in the absence of any such grant or participation and (B) each such SPV
may receive other payments that would otherwise be made to such Lender with respect
to Loans funded by such SPV to the extent provided in the applicable option
agreement and set forth in a notice provided to Agent by such SPV and such Lender,
provided, however, that in no case (including pursuant to clause (A) or (B) above)
shall an SPV or participant have the right to enforce any of the terms of any Loan
Document, and (iii) the consent of such SPV or participant shall not be required
(either directly, as a restraint on such Lender’s ability to consent hereunder or
otherwise) for any amendments, waivers or consents with respect to any Loan
Document or to exercise or refrain from exercising any powers or rights such Lender
may have under or in respect of the Loan Documents (including the right to enforce
or direct enforcement of the Obligations), except for those described in clauses
(i) through (iv) of Section 11.2(c)

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	 	 	 	with respect to amounts, or dates fixed for payment of amounts, to which such
participant or SPV would otherwise be entitled and, in the case of participants,
except for those described in clauses (v) and (vi) of Section 11.2(c). No party
hereto shall institute (and Borrowers shall cause each other Credit Party not to
institute) against any SPV grantee of an option pursuant to this clause (f) any
bankruptcy, reorganization, insolvency, liquidation or similar proceeding, prior to
the date that is one year and one day after the payment in full of all outstanding
commercial paper of such SPV; provided, however, that each Lender having designated
an SPV as such agrees to indemnify each Indemnified Person against any Liability
that may be incurred by, or asserted against, such Indemnified Person as a result
of failing to institute such proceeding (including a failure to get reimbursed by
such SPV for any such Liability). The agreement in the preceding sentence shall
survive the termination of the Commitments and the payment in full of the
Obligations.

	9.2	 	Appointment of Agent
	 
	 	 	GE Capital is hereby appointed to act on behalf of all Lenders as Agent under this Agreement
and the other Loan Documents. The provisions of this Section 9.2 are solely for the benefit
of Agent and Lenders and no Credit Party nor any other Person shall have any rights as a
third party beneficiary of any of the provisions hereof. In performing its functions and
duties under this Agreement and the other Loan Documents, Agent shall act solely as an agent
of Lenders and does not assume and shall not be deemed to have assumed any obligation toward
or relationship of agency or trust with or for any Credit Party or any other Person. Agent
shall have no duties or responsibilities except for those expressly set forth in this
Agreement and the other Loan Documents. The duties of Agent shall be mechanical and
administrative in nature and Agent shall not have, or be deemed to have, by reason of this
Agreement, any other Loan Document or otherwise a fiduciary relationship in respect of any
Lender. Except as expressly set forth in this Agreement and the other Loan Documents, Agent
shall not have any duty to disclose, and shall not be liable for failure to disclose, any
information relating to any Credit Party or any of their respective Subsidiaries or any
Account Debtor that is communicated to or obtained by GE Capital or any of its Affiliates in
any capacity. Neither Agent nor any of its Affiliates nor any of their respective officers,
directors, employees, agents or representatives shall be liable to any Lender for any action
taken or omitted to be taken by it hereunder or under any other Loan Document, or in
connection herewith or therewith, except for damages solely caused by its or their own gross
negligence or willful misconduct as finally determined by a court of competent jurisdiction.
Each Lender that is a party to a Hedging Agreement hereby appoints GE Capital as collateral
agent under the Collateral Documents.
	 
	 	 	If Agent shall request instructions from Requisite Lenders, or all affected Lenders with
respect to any act or action (including failure to act) in connection with this Agreement or
any other Loan Document, then Agent shall be entitled to refrain from such act or taking
such action unless and
until Agent shall have received instructions from Requisite Lenders or all affected Lenders,
as the

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	 	 	case may be, and Agent shall not incur liability to any Person by reason of so
refraining. Agent shall be fully justified in failing or refusing to take any action
hereunder or under any other Loan Document (a) if such action would, in the opinion of
Agent, be contrary to law or the terms of this Agreement or any other Loan Document, (b) if
such action would, in the opinion of Agent, expose Agent to Environmental Liabilities or (c)
if Agent shall not first be indemnified to its satisfaction against any and all liability
and expense which may be incurred by it by reason of taking or continuing to take any such
action. Without limiting the foregoing, no Lender shall have any right of action whatsoever
against Agent as a result of Agent acting or refraining from acting hereunder or under any
other Loan Document in accordance with the instructions of Requisite Lenders, or all
affected Lenders, as applicable.
	 
	9.3	 	Agent’s Reliance, Etc.
	 
	 	 	Neither Agent nor any of its Affiliates nor any of their respective directors, officers,
agents or employees shall be liable for any action taken or omitted to be taken by it or
them under or in connection with this Agreement or the other Loan Documents, except for
damages solely caused by its or their own gross negligence or willful misconduct as finally
determined by a court of competent jurisdiction. Without limiting the generality of the
foregoing, Agent: (a) may treat the payee of any Note as the holder thereof until Agent
receives written notice of the assignment or transfer thereof signed by such payee and in
form reasonably satisfactory to Agent; (b) may consult with legal counsel, independent
public accountants and other experts selected by it and shall not be liable for any action
taken or omitted to be taken by it in good faith in accordance with the advice of such
counsel, accountants or experts; (c) makes no warranty or representation to any Lender and
shall not be responsible to any Lender for any statements, warranties or representations
made in or in connection with this Agreement or the other Loan Documents; (d) shall not have
any duty to ascertain or to inquire as to the performance or observance of any of the terms,
covenants or conditions of this Agreement or the other Loan Documents on the part of any
Credit Party or to inspect the Collateral (including the books and records) of any Credit
Party; (e) shall not be responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or the other Loan
Documents or any other instrument or document furnished pursuant hereto or thereto; and (f)
shall incur no liability under or in respect of this Agreement or the other Loan Documents
by acting upon any notice, consent, certificate or other instrument or writing (which may be
by telecopy, telegram, cable or telex) believed by it to be genuine and signed or sent by
the proper party or parties.
	 
	9.4	 	GE Capital and Affiliates
	 
	 	 	With respect to its Commitments hereunder, GE Capital shall have the same rights and powers
under this Agreement and the other Loan Documents as any other Lender and may exercise the
same as though it were not Agent; and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated, include GE Capital in its individual capacity. GE Capital and its
Affiliates may lend money to, invest in, and generally engage in any kind of business with,
any Credit Party, any of its Affiliates and any Person who may do business with or own securities of
any

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	 	 	Credit Party or any such Affiliate, all as if GE Capital were not Agent and without any
duty to account therefor to Lenders. GE Capital and its Affiliates may accept fees and
other consideration from any Credit Party for services in connection with this Agreement or
otherwise without having to account for the same to Lenders.
	 
	9.5	 	Lender Credit Decision
	 
	 	 	Each Lender acknowledges that it has, independently and without reliance upon Agent or any
other Lender and based on the Financial Statements referred to in Section 3.4(a) and such
other documents and information as it has deemed appropriate, made its own credit and
financial analysis of the Credit Parties and its own decision to enter into this Agreement.
Each Lender also acknowledges that it will, independently and without reliance upon Agent or
any other Lender and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking action under
this Agreement. Each Lender acknowledges the potential conflict of interest of each other
Lender as a result of Lenders holding disproportionate interests in the Loans, and expressly
consents to, and waives any claim based upon, such conflict of interest.
	 
	9.6	 	Indemnification

	 	(a)	 	Each Lender agrees to reimburse Agent and each of its Related Persons (to the
extent not reimbursed by any Credit Party) promptly upon demand, severally and ratably
based on their Pro Rata Shares, for any costs and expenses (including fees, charges
and disbursements of financial, legal and other advisors and Other Taxes paid in the
name of, or on behalf of, any Credit Party) that may be incurred by Agent or any of
its Related Persons in connection with the preparation, syndication, execution,
delivery, administration, modification, consent, waiver or enforcement (whether
through negotiations, through any work-out, bankruptcy, restructuring or other legal
or other proceeding or otherwise) of, or legal advice in respect of its rights or
responsibilities under, any Loan Document.
	 
	 	(b)	 	Each Lender further agrees to indemnify Agent and each of its Related Persons
(to the extent not reimbursed by any Credit Party), severally and ratably, from and
against Indemnified Liabilities (including taxes, interests and penalties imposed for
not properly withholding or backup withholding on payments made to or for the account
of any Lender) that may be imposed on, incurred by or asserted against Agent or any of
its Related Persons in any matter relating to or arising out of, in connection with or
as a result of any Loan Document or any other act, event or transaction related,
contemplated in or attendant to any such document, or, in each case, any action taken
or omitted to be taken by Agent or any of its Related Persons under or with respect to
any of the foregoing; provided, however, that no Lender shall be liable to Agent or
any of its Related Persons to the extent such liability has resulted primarily from
the gross negligence or willful misconduct of Agent or, as the case may be, such Related
Person,

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	 	 	 	as determined by a court of competent jurisdiction in a final
non-appealable judgment or order.
	 
	 	(c)	 	To the extent required by any applicable law, Agent may withhold from any
payment to any Lender under a Loan Document an amount equal to any applicable
withholding tax. If the Internal Revenue Service or any other Governmental Authority
asserts a claim that Agent did not properly withhold tax from amounts paid to or for
the account of any Lender (because the appropriate certification form was not
delivered, was not properly executed, or fails to establish an exemption from, or
reduction of, withholding tax with respect to a particular type of payment, or because
such Lender failed to notify Agent or any other Person of a change in circumstances
which rendered the exemption from, or reduction of, withholding tax ineffective, or
for any other reason), or Agent reasonably determines that it was required to withhold
taxes from a prior payment but failed to do so, such Lender shall promptly indemnify
Agent fully for all amounts paid, directly or indirectly, by Agent as tax or
otherwise, including penalties and interest, and together with all expenses incurred
by Agent, including legal expenses, allocated internal costs and out-of-pocket
expenses. Agent may offset against any payment to any Lender under a Loan Document,
any applicable withholding tax that was required to be withheld from any prior payment
to such Lender but which was not so withheld, as well as any other amounts for which
Agent is entitled to indemnification from such Lender under this Section 9.6(c).

	9.7	 	Successor Agent
	 
	 	 	Agent may resign at any time by giving not less than thirty (30) days’ prior written notice
thereof to Lenders and Borrower Representative. Upon any such resignation, the Requisite
Lenders shall have the right to appoint a successor Agent. If no successor Agent shall have
been so appointed by the Requisite Lenders and shall have accepted such appointment within
thirty (30) days after the resigning Agent’s giving notice of resignation, then the
resigning Agent may, on behalf of Lenders, appoint a successor Agent, which shall be a
Lender, if a Lender is willing to accept such appointment, or otherwise shall be a
commercial bank or financial institution or a subsidiary of a commercial bank or financial
institution if such commercial bank or financial institution is organized under the laws of
the United States of America or of any State thereof and has a combined capital and surplus
of at least $300,000,000. If no successor Agent has been appointed pursuant to the
foregoing, within thirty (30) days after the date such notice of resignation was given by
the resigning Agent, such resignation shall become effective and the Requisite Lenders shall
thereafter perform all the duties of Agent hereunder until such time, if any, as the
Requisite Lenders appoint a successor Agent as provided above. Any successor Agent
appointed by Requisite Lenders hereunder shall be subject to the approval of Borrower
Representative, such approval not to be unreasonably withheld or delayed; provided, that
such approval shall not be required if a Default or an Event of Default has occurred and is
continuing. Upon the acceptance
of any appointment as Agent hereunder by a successor Agent, such successor Agent shall
succeed

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	 	 	to and become vested with all the rights, powers, privileges and duties of the
resigning Agent. Upon the earlier of the acceptance of any appointment as Agent hereunder
by a successor Agent or the effective date of the resigning Agent’s resignation, the
resigning Agent shall be discharged from its duties and obligations under this Agreement and
the other Loan Documents, except that any indemnity rights or other rights in favor of such
resigning Agent shall continue. After any resigning Agent’s resignation hereunder, the
provisions of this Section 9 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was acting as Agent under this Agreement and the other Loan
Documents. Agent may be removed at the written direction of the holders (other than Agent)
of two-thirds or more of the Commitments (excluding Agent’s Commitment); provided, that in
so doing, such Lenders shall be deemed to have waived and released any and all claims they
may have against Agent.
	 
	9.8	 	Co Agents
	 
	 	 	None of the Lenders identified on the facing page or signature pages of this Agreement or
any related document as “documentation agent”, “syndication agent”, “joint bookrunner”,
“arranger” or “joint lead arranger” shall have any right, power, obligation, liability,
responsibility or duty under this Agreement other than those applicable to all Lenders as
such or as specifically provided herein as to the Arrangers. Without limiting the
foregoing, none of the Lenders so identified as “documentation agent”, “syndication agent” ,
“joint bookrunner”, “arranger” or “joint lead arranger” shall have or be deemed to have any
fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied,
and will not rely, on any of the Lenders so identified in deciding to enter into this
Agreement or in taking or not taking action hereunder.
	 
	9.9	 	Setoff and Sharing of Payments

	 	(a)	 	Right of Setoff
	 
	 	 	 	Each of Agent, each Lender and each L/C Issuer of any of them is hereby authorized,
without notice or demand (each of which is hereby waived by each Credit Party), at
any time and from time to time during the continuance of any Event of Default and
to the fullest extent permitted by applicable requirements of law, to set off and
apply any and all deposits (whether general or special, time or demand, provisional
or final) at any time held for the account of any Credit Party and other
Indebtedness, claims or other obligations at any time owing by Agent, such Lender
or such L/C Issuer to or for the credit or the account of any Borrower or any other
Credit Party against any Obligation of any Credit Party now or hereafter existing
that is not paid when due, whether or not any demand was made under any Loan
Document with respect to such Obligation. No Lender or L/C Issuer shall exercise
any such right of setoff without the prior consent of Agent or Requisite Lenders.
Each of Agent, each Lender and each L/C Issuer agrees promptly to notify the
Borrower Representative and Agent after any such setoff and application made by
such Lender; provided, however, that the failure to give such notice
shall not affect the validity of such setoff and application. The rights under
this Section

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	 	9.9	 	are in addition to any other rights and remedies (including other
rights of setoff) that Agent, the Lenders and the L/C Issuer may have.

	 
	 	(b)	 	Sharing of Payments, Etc.
	 
	 	 	 	If any Lender, directly or through an Affiliate or branch office thereof, obtains
any payment of any Obligation of any Credit Party (whether voluntary, involuntary
or through the exercise of any right of setoff or the receipt of any Collateral or
“proceeds” (as defined under the applicable Code) of Collateral) other than
pursuant to Sections 1.13, 1.15, 1.16 or 9.1 and such payment exceeds the amount
such Lender would have been entitled to receive if all payments had gone to, and
been distributed by, Agent in accordance with the provisions of the Loan Documents,
such Lender shall purchase for cash from other Lenders such participations in their
Obligations as necessary for such Lender to share such excess payment with such
Lenders to ensure such payment is applied as though it had been received by Agent
and applied in accordance with this Agreement (or, if such application would then
be at the discretion of the Borrowers, applied to repay the Obligations in
accordance herewith); provided, however, that (a) if such payment is rescinded or
otherwise recovered from such Lender or L/C Issuer in whole or in part, such
purchase shall be rescinded and the purchase price therefor shall be returned to
such Lender or L/C Issuer without interest and (b) such Lender shall, to the
fullest extent permitted by applicable requirements of law, be able to exercise all
its rights of payment (including the right of setoff) with respect to such
participation as fully as if such Lender were the direct creditor of the applicable
Credit Party in the amount of such participation. If a Non-Funding Lender receives
any such payment as described in the previous sentence, such Lender shall turn over
such payments to Agent in an amount that would satisfy the cash collateral
requirements set forth in Section 9.10(d).

	9.10	 	Advances; Payments; Non Funding Lenders; Information; Actions in Concert

	 	(a)	 	Advances; Payments

	 	(i)	 	Revolving Lenders shall refund or participate in the Swing Line
Loan in accordance with clauses (iii) and (iv) of Section 1.1(b). If the Swing
Line Lender declines to make a Swing Line Loan or if Swing Line Availability is
zero, Agent shall notify Revolving Lenders, promptly after receipt of a Notice
of Revolving Credit Advance and in any event prior to noon (New York time) on
the date such Notice of Revolving Credit Advance is received, by telecopy,
telephone or other similar form of transmission. Each Revolving Lender shall
make the amount of such Lender’s Pro Rata Share of each Revolving Credit
Advance available to Agent in same day funds by wire transfer to Agent’s
account as set forth in Annex H not later than 3:00 p.m. (New York
time)

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	 	 	 	on the requested funding date, in the case of an Index Rate Loan, and not later than 3:00 p.m. (New York
time) on the requested funding date in the case of a LIBOR Loan. After
receipt of such wire transfers (or, in the Agent’s sole discretion, before
receipt of such wire transfers), subject to the terms hereof, Agent shall
make the requested Revolving Credit Advance to the Borrower designated by
Borrower Representative in the Notice of Revolving Credit Advance. All
payments by each Revolving Lender shall be made without setoff, counterclaim
or deduction of any kind.
	 
	 	(ii)	 	On the 2nd Business Day of each calendar week or more
frequently at Agent’s election (each, a “Settlement Date”), Agent shall advise
each Lender by telephone or telecopy of the amount of such Lender’s Pro Rata
Share of principal, interest and Fees paid for the benefit of Lenders with
respect to each applicable Loan. Provided that each Lender has funded all
payments or Advances required to be made by it and purchased all participations
required to be purchased by it under this Agreement and the other Loan
Documents as of such Settlement Date, Agent shall pay to each Lender such
Lender’s Pro Rata Share of principal, interest and Fees paid by Borrowers since
the previous Settlement Date for the benefit of such Lender on the Loans held
by it.

	 	(b)	 	Availability of Lender’s Pro Rata Share
	 
	 	 	 	Agent may assume that each Revolving Lender will make its Pro Rata Share of each
Revolving Credit Advance available to Agent on each funding date. If such Pro Rata
Share is not, in fact, paid to Agent by such Revolving Lender when due, Agent will
be entitled to recover such amount on demand from such Revolving Lender without
setoff, counterclaim or deduction of any kind. If any Revolving Lender fails to pay
the amount of its Pro Rata Share forthwith upon Agent’s demand, Agent shall promptly
notify Borrower Representative and the applicable Borrower shall immediately repay
such amount to Agent. Nothing in this Section 9.10(b) or elsewhere in this
Agreement or the other Loan Documents shall be deemed to require Agent to advance
funds on behalf of any Revolving Lender or to relieve any Revolving Lender from its
obligation to fulfill its Commitments hereunder or to prejudice any rights that any
Borrower may have against any Revolving Lender as a result of any default by such
Revolving Lender hereunder. To the extent that Agent advances funds to any Borrower
on behalf of any Revolving Lender and is not reimbursed therefor on the same
Business Day as such Advance is made, Agent shall be entitled to retain for its
account all interest accrued on such Advance until reimbursed by the applicable
Revolving Lender.
	 
	 	(c)	 	Return of Payments

	 	(i)	 	If Agent pays an amount to a Lender under this Agreement in the
belief or expectation that a related payment has been or will be received by
Agent from Borrowers and such related payment is not received by Agent, then
Agent will be

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	 	 	 	entitled to recover such amount from such Lender on demand without setoff,
counterclaim or deduction of any kind.
	 
	 	(ii)	 	If Agent determines at any time that any amount received by
Agent under this Agreement must be returned to any Borrower or paid to any
other Person pursuant to any insolvency law or otherwise, then, notwithstanding
any other term or condition of this Agreement or any other Loan Document, Agent
will not be required to distribute any portion thereof to any Lender. In
addition, each Lender will repay to Agent on demand any portion of such amount
that Agent has distributed to such Lender, together with interest at such rate,
if any, as Agent is required to pay to any Borrower or such other Person,
without setoff, counterclaim or deduction of any kind.

	 	(d)	 	Non-Funding Lenders

	 	(i)	 	Responsibility
	 
	 	 	 	The failure of any Non-Funding Lender to make any Revolving Loan, to fund
any purchase of any participation to be made or funded by it, or to make any
payment required by it hereunder on the date specified therefor shall not
relieve any other Lender of its obligations to make such loan, fund the
purchase of any such participation, or make any other payment required
hereunder on such date, and neither Agent nor, other than as expressly set
forth herein, any other Lender shall be responsible for the failure of any
Non-Funding Lender to make a loan, fund the purchase of a participation or
make any other payment required hereunder.
	 
	 	(ii)	 	Reallocation
	 
	 	 	 	If any Revolving Lender is a Non-Funding Lender, all or a portion of such
Non-Funding Lender’s Letter of Credit Obligations (unless such Lender is the
L/C Issuer that issued such Letter of Credit) and reimbursement obligations
with respect to Swing Line Loans shall, at Agent’s election at any time or
upon any L/C Issuer’s or Swing Line Lender’s, as applicable, written request
delivered to Agent (whether before or after the occurrence of any Default or
Event of Default), be reallocated to and assumed by the Revolving Lenders
that are not Non-Funding Lenders or Impacted Lenders pro rata in accordance
with their Pro Rata Shares (calculated as if the Non-Funding Lender’s Pro
Rata Share was reduced to zero and each other Revolving Lender’s Pro Rata
Share had been increased proportionately), provided that no Revolving Lender
shall be reallocated any such amounts or be required to fund any amounts
that would cause the sum of its outstanding Revolving Loans, outstanding
Letter of Credit Obligations, amounts of its participations in Swing Line
Loans and its pro rata

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	 	 	 	share of unparticipated amounts in Swing Line Loans to exceed its Revolving
Loan Commitment.
	 
	 	(iii)	 	Voting Rights
	 
	 	 	 	Notwithstanding anything set forth herein to the contrary, including Section
11.2, a Non-Funding Lender shall not have any voting or consent rights under
or with respect to any Loan Document or constitute a “Lender” or a
“Revolving Lender” (or be, or have its Loans and Commitments, included in
the determination of “Requisite Lenders” or “Lenders directly affected”
pursuant to Section 11.2) for any voting or consent rights under or with
respect to any Loan Document, provided that without such Non-Funding
Lender’s consent (A) the Commitment of a Non-Funding Lender may not be
increased, extended or reinstated, (B) the principal of a Non-Funding
Lender’s Loans may not be reduced or forgiven, and (C) the interest rate
applicable to Obligations owing to a Non-Funding Lender may not be reduced.
Moreover, for the purposes of determining Requisite Lenders, the Loans,
Letter of Credit Obligations, and Commitments held by Non-Funding Lenders
shall be excluded from the total Loans and Commitments outstanding.
	 
	 	(iv)	 	Borrower Payments to a Non-Funding Lender
	 
	 	 	 	Agent shall be entitled to hold, in a non-interest bearing account, all
portions of any payments received by Agent for the benefit of any
Non-Funding Lender pursuant to this Agreement as cash collateral. Agent is
hereby authorized to use such cash collateral to pay in full the Aggregate
Excess Funding Amount to the appropriate Lenders, L/C Issuers, Swing Lender
or Agent, and then, to hold as cash collateral the amount of such
Non-Funding Lender’s pro rata share, without giving effect to any
reallocation pursuant to Section 9.10(d)(ii), of all Letter of Credit
Obligations until the Obligations are paid in full in cash, all Letter of
Credit Obligations have been discharged or cash collateralized and all
Commitments have been terminated. Upon any such unfunded obligations owing
by a Non-Funding Lender becoming due and payable, Agent shall be authorized
to use such cash collateral to make such payment on behalf of such
Non-Funding Lender. With respect to such Non-Funding Lender’s failure to
fund Revolving Loans or purchase participations in Letters of Credit or
Letter of Credit Obligations, any amounts applied by Agent to satisfy such
funding shortfalls shall be deemed to constitute a Revolving Loan or amount
of the participation required to be funded and, if necessary to effectuate
the foregoing, the other Revolving Lenders shall be deemed to have sold, and
such Non-Funding Lender shall be deemed to have purchased, Revolving Loans
or Letter of Credit participation interests from the other Revolving Lenders
until such time as the aggregate amount of the Revolving Loans and
participations in Letters of Credit

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	 	 	 	and Letter of Credit Obligations are held by the Revolving Lenders in
accordance with their Pro Rata Shares. Any amounts owing by a Non-Funding
Lender to Agent, which are not paid when due, shall accrue interest at the
interest rate applicable during such period to Revolving Loans that are Base
Rate Loans. In the event that Agent is holding cash collateral of a
Non-Funding Lender that cures pursuant to clause (v) below or ceases to be a
Non-Funding Lender pursuant to definition of Non-Funding Lender, Agent shall
return the unused portion of such cash collateral to such Lender. The
“Aggregate Excess Funding Amount” of a Non-Funding Lender shall be the
aggregate amount of (A) all unpaid obligations owing by such Lender to the
Agent, L/C Issuers, Swing Line Lender, and other Lenders under the Loan
Documents, including such Lender’s pro rata share of all Revolving Loans,
Letter of Credit Obligations, Swing Line Loans, plus, without duplication,
(B) all amounts of such Non-Funding Lender reallocated to other Lenders
pursuant to Section 9.10(d)(ii).
	 
	 	(v)	 	Cure
	 
	 	 	 	A Lender may cure its status as a Non-Funding Lender under clause (a) of the
definition of Non-Funding Lender if such Lender fully pays to Agent, on
behalf of the applicable Lenders, L/C Issuers, Swing Lender or Agent, the
Aggregate Excess Funding Amount, plus all interest due thereon. Any such
cure shall not relieve any Lender from liability for breaching its
contractual obligations hereunder.
	 
	 	(vi)	 	Fees
	 
	 	 	 	A Lender that is a Non-Funding Lender pursuant to clause (a) of the
definition of Non-Funding Lender shall not earn and shall not be entitled to
receive, and Borrowers shall not be required to pay, such Lender’s portion
of the unused line fee contemplated by Section 1.9(c) during the time such
Lender is a Non-Funding Lender pursuant to clause (a) thereof. In the event
that any reallocation of Letter of Credit Obligations occurs pursuant to
Section 9.10(d)(ii), during the period of time that such reallocation
remains in effect, the Letter of Credit Fee payable with respect to such
reallocated portion shall be payable to (A) all Revolving Lenders based on
their pro rata share of such reallocation or (B) to the L/C Issuer for any
remaining portion not reallocated to any other Revolving Lenders.
	 
	 	(vii)	 	Replacement of Non-Funding Lenders
	 
	 	 	 	With respect to a Lender that is a Non-Funding Lender or an Impacted Lender,
Agent may, but shall not be obligated to, obtain a replacement Lender and
execute an Assignment Agreement on behalf of such Non-Funding Lender or

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	 	 	 	Impacted Lender at any time with three (3) Business’ Days prior notice to
such Lender or an Impacted Lender (unless notice is not practicable under
the circumstances) and cause such Lender’s Loans and Commitments to be sold
and assigned, in whole or in part, at par.

	 	(e)	 	Dissemination of Information
	 
	 	 	 	Agent shall use reasonable efforts to provide Lenders with (i) any notice of
Default or Event of Default received by Agent from, or delivered by Agent to, any
Borrower, with notice of any Event of Default of which Agent has actually become
aware and with notice of any action taken by Agent following any Event of Default;
provided, that Agent shall not be liable to any Lender for any failure to do so,
except to the extent that such failure is attributable solely to Agent’s gross
negligence or willful misconduct as finally determined by a court of competent
jurisdiction and (ii) any Equipment Inventory Appraisals, P&E Appraisals and
Collateral audits received by Agent. Lenders acknowledge that Borrowers are
required to provide Financial Statements and Collateral Reports to Lenders in
accordance with Annexes E and F hereto and agree that Agent shall
have no duty to provide the same to Lenders.
	 
	 	(f)	 	Actions in Concert
	 
	 	 	 	Anything in this Agreement to the contrary notwithstanding, each Lender hereby
agrees with each other Lender that no Lender shall take any action to protect or
enforce its rights arising out of this Agreement or the Notes (including exercising
any rights of setoff) without first obtaining the prior written consent of Agent and
Requisite Lenders, it being the intent of Lenders that any such action to protect or
enforce rights under this Agreement and the Notes shall be taken in concert and at
the direction or with the consent of Agent or Requisite Lenders.

	9.11	 	Release of Collateral or Guarantors
	 
	 	 	Each Lender and L/C Issuer hereby consents to the release and hereby directs the Agent to
release the following:

	 	(a)	 	any Subsidiary of a Borrower from its guaranty of any Obligation of any
Credit Party if all of the Stock of such Subsidiary owned by any Borrower is sold in a
sale permitted under the Loan Documents (including pursuant to a waiver or consent),
to the extent that, after giving effect to such sale, such Subsidiary would not be
required to guaranty any Obligations pursuant to Section 5.11(b); and
	 
	 	(b)	 	any Lien held by the Agent for the benefit of the Lenders and L/C Issuers
against (i) any Collateral that is sold by a Credit Party in a sale permitted by the
Loan Documents (including pursuant to a valid waiver or consent), to the extent all
Liens required to be granted in such Collateral pursuant to Section 5.11(b) after
giving effect to such sale

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	 	 	 	have been granted and (ii) all of the Collateral and all Credit Parties, upon (A)
termination of the Commitments, (B) payment and satisfaction in full of all Loans,
all reimbursement Obligations in respect of Letters of Credit and all other
Obligations that the Agent has been notified in writing are then due and payable by
the holder of such Obligation, (C) deposit of cash collateral with respect to all
contingent Obligations (or, in the case of any Letter of Credit Obligation, a
back-up letter of credit has been issued), in amounts and on terms and conditions
and with parties satisfactory to the Agent and each Indemnified Person that is owed
such Obligations and (D) to the extent requested by the Agent, receipt by Agent,
Lenders, and L/C Issuers of liability releases from the Credit Parties each in form
and substance reasonably acceptable to the Agent.

	 	 	Each Lender and L/C Issuer hereby directs Agent, and Agent hereby agrees, upon receipt of
reasonable advance notice from the Borrower Representative, to execute and deliver or file
such documents and to perform other actions reasonably necessary to release the guaranties
and Liens when and as directed in this Section 9.11.
	 
	10	 	SUCCESSORS AND ASSIGNS
	 
	10.1	 	Successors and Assigns
	 
	 	 	The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns; provided that any assignment by
any Lender shall be subject to the provisions of Section 9.1, and provided further that no
Borrower may assign or transfer any of its rights or obligations under this Agreement
without the prior written consent of Agent and each Lender.
	 
	11	 	MISCELLANEOUS
	 
	11.1	 	Complete Agreement; Modification of Agreement
	 
	 	 	The Loan Documents constitute the complete agreement between the parties with respect to the
subject matter thereof and may not be modified, altered or amended except as set forth in
Section 11.2. Any letter of interest, commitment letter or fee letter (other than the GE
Capital Fee Letter) or confidentiality agreement, if any, between any Credit Party and Agent
or any Lender or any of their respective Affiliates, predating this Agreement and relating
to a financing of substantially similar form, purpose or effect shall be superseded by this
Agreement.
	 
	11.2	 	Amendments and Waivers

	 	(a)	 	Except for actions expressly permitted to be taken by Agent, no amendment,
modification, termination or waiver of any provision of this Agreement or any other
Loan Document, or any consent to any departure by any Credit Party therefrom, shall in
any event be effective unless the same shall be in writing and signed by Agent and
Borrowers, and by Requisite Lenders or all affected Lenders, as applicable. Except as

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	 	 	 	set forth in clauses (b) and (c) below, all such amendments, modifications,
terminations or waivers requiring the consent of any Lenders shall require the
written consent of Requisite Lenders. Notwithstanding the foregoing, (i) any
amendment entered into in conformity with Section 1.18 shall require only the
signatures of Agent, each Credit Party and each Additional Revolving Lender and
(ii) any amendment entered into as a consequence of any Accounting Changes shall
require only the signatures of the Borrower Representative, Agent and Requisite
Lenders.
	 
	 	(b)	 	No amendment, modification, termination or waiver of or consent with respect
to any provision of this Agreement that (x) increases the percentage advance rates set
forth in the definitions of the Great Northern Borrowing Base, the H&E Borrowing Base
or the H&E California Borrowing Base, in each case, above the Original Advance Rates
or (y) increases the amount of Overadvances that can be outstanding under Section
1.1(a)(iv), shall be effective unless the same shall be in writing and signed by
Agent, Lenders and Borrowers. No amendment, modification, termination or waiver of or
consent with respect to any provision of this Agreement that waives compliance with
the conditions precedent set forth in Section 2.2 to the making of any Loan or the
incurrence of any Letter of Credit Obligations, shall be effective unless the same
shall be in writing and signed by Agent, Requisite Lenders and Borrowers.
	 
	 	(c)	 	No amendment, modification, termination or waiver shall, unless in writing
and signed by Agent and each Lender directly affected thereby:

	 	(i)	 	increase the principal amount of any Lender’s Commitment or add
any new Revolving Loan Commitment (which action shall be deemed to directly
affect all Lenders);
	 
	 	(ii)	 	reduce the principal of, rate of interest on or Fees payable
with respect to any Loan or Letter of Credit Obligations of any affected
Lender;
	 
	 	(iii)	 	extend any scheduled payment date (other than payment dates of
mandatory prepayments under Sections 1.3(b)(ii) and (iii)) or final maturity
date of the principal amount of any Loan of any affected Lender;
	 
	 	(iv)	 	waive, forgive, defer, extend or postpone any payment of
interest or Fees payable to any affected Lender;
	 
	 	(v)	 	release any Guaranty;
	 
	 	(vi)	 	except as otherwise permitted herein or in the other Loan
Documents, permit any Credit Party to dispose of all or substantially all
assets (which action shall be deemed to directly affect all Lenders);

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	 	(vii)	 	change the percentage of the Commitments or of the aggregate
unpaid principal amount of the Loans that shall be required for Lenders or any
of them to take any action hereunder;
	 
	 	(viii)	 	amend the definition of Prohibited Swing Line Advance;
	 
	 	(ix)	 	change Section 1.1(b)(i) in any manner that increases the
obligations of the Lenders with respect to any Swing Line Advance;
	 
	 	(x)	 	amend Section 1.11(a) or Section 9.11; or
	 
	 	(xi)	 	amend or waive this Section 11.2 or the definition of the term
“Requisite Lenders”. Furthermore, no amendment, modification, termination or
waiver affecting the rights or duties of Agent or L/C Issuer under this
Agreement or any other Loan Document shall be effective unless in writing and
signed by Agent or L/C Issuer, as the case may be, in addition to Lenders
required hereinabove to take such action.

	 	 	Each amendment, modification, termination or waiver shall be effective only in the specific
instance and for the specific purpose for which it was given. Furthermore, no amendment,
modification, termination or waiver affecting the rights or duties of Agent or L/C Issuer,
or of GE Capital in respect of any Swap Related Reimbursement Obligations, under this
Agreement or any other Loan Document, including any release of any Guaranty or Collateral
requiring a writing signed by all Lenders, shall be effective unless in writing and signed
by Agent or L/C Issuer or GE Capital, as the case may be, in addition to Lenders required
hereinabove to take such action. No amendment, modification, termination or waiver shall
be required for Agent to take additional Collateral pursuant to any Loan Document. No
amendment, modification, termination or waiver of any provision of any Note shall be
effective without the written concurrence of the holder of that Note. No notice to or
demand on any Credit Party in any case shall entitle such Credit Party or any other Credit
Party to any other or further notice or demand in similar or other circumstances. Any
amendment, modification, termination, waiver or consent effected in accordance with this
Section 11.2 shall be binding upon each Lender. Notwithstanding the foregoing, any
amendment entered into in conformity with Section 1.18 shall require only the signatures of
Agent, each Credit Party and each Additional Revolving Lender.

	 	(d)	 	If, in connection with any proposed amendment, modification, waiver or
termination (a “Proposed Change”) requiring the consent of all affected Lenders, the
consent of Requisite Lenders is obtained, but the consent of other Lenders whose
consent is required is not obtained (any such Lender whose consent is not obtained as
described in this clause (d) being referred to as a “Non-Consenting Lender”), then, so
long as Agent is not a Non-Consenting Lender, at Borrower Representative’s request,
Agent, or a Person reasonably acceptable to Agent, shall have the right with Agent’s
consent and in Agent’s sole discretion (but shall have no obligation) to purchase from
such Non

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	 	 	 	Consenting Lenders, and such Non-Consenting Lenders agree that they shall, upon
Agent’s request, sell and assign to Agent or such Person (who shall assume such
Commitments), all of the Commitments of such Non-Consenting Lenders for an amount
equal to the principal balance of all Loans held by the Non-Consenting Lenders and
all accrued interest and Fees with respect thereto through the date of sale, such
purchase and sale to be consummated pursuant to an executed Assignment Agreement.
	 
	 	(e)	 	Upon payment in full in cash and performance of all of the Obligations (other
than Unasserted Contingent Obligations), termination of the Commitments and all
Letters of Credit (or the cash collateralization or backing with standby letters of
credit of all Letters of Credit in accordance with Annex B) and a release of
all claims against Agent and Lenders, and so long as no suits, actions, proceedings or
claims are pending or threatened against any Indemnified Person asserting any damages,
losses or liabilities that are Indemnified Liabilities, Agent shall deliver to the
Credit Parties payoff letters, termination statements, mortgage releases and other
documents necessary or appropriate or reasonably requested by the Credit Parties to
evidence the termination of the Liens securing payment of the Obligations.

	11.3	 	Fees and Expenses
	 
	 	 	Borrowers shall reimburse (i) Agent and Arrangers for all fees, costs and expenses
(including the reasonable fees and expenses of all of its external counsel, advisors,
consultants and auditors) and (ii) Agent and Arrangers (and, with respect to clauses (c),
(d) and (e) below, all Lenders) for all fees, costs and expenses, including the reasonable
fees, costs and expenses of external counsel or other advisors (including environmental and
management consultants and appraisers), incurred in connection with the negotiation and
preparation of the Loan Documents as well as those incurred in connection with:

	 	(a)	 	the forwarding to any Borrower or any other Person on behalf of any Borrower
by Agent of the proceeds of any Loan;
	 
	 	(b)	 	any amendment, modification or waiver of, consent with respect to, or
termination of, any of the Loan Documents or in connection with the syndication and
administration of the Loans made pursuant hereto or its rights hereunder or
thereunder;
	 
	 	(c)	 	any litigation, contest, dispute, suit, proceeding or action (whether
instituted by Agent, any Lender, any Borrower or any other Person and whether as a
party, witness or otherwise) in any way relating to the Collateral, any of the Loan
Documents or any other agreement to be executed or delivered in connection herewith or
therewith, including any litigation, contest, dispute, suit, case, proceeding or
action, and any appeal or review thereof, in connection with a case commenced by or
against any or all of the Borrowers or any other Person that may be obligated to Agent
by virtue of the Loan Documents; including any such litigation, contest, dispute,
suit, proceeding or action arising in connection with any work out or restructuring of
the Loans during the

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	 	 	 	pendency of one or more Events of Default; provided, that in the case of
reimbursement of counsel for Lenders other than Agent, such reimbursement shall be
limited to one counsel for all such Lenders; provided further, that no Person shall
be entitled to reimbursement under this clause (c) in respect of any litigation,
contest, dispute, suit, proceeding or action to the extent any of the foregoing
results from such Person’s gross negligence or willful misconduct;
	 
	 	(d)	 	any attempt to enforce any remedies of Agent or any Lender against any or all
of the Credit Parties or any other Person that may be obligated to Agent or any Lender
by virtue of any of the Loan Documents, including any such attempt to enforce any such
remedies in the course of any work out or restructuring of the Loans during the
pendency of one or more Events of Default; provided, that in the case of reimbursement
of counsel for Lenders other than Agent, such reimbursement shall be limited to one
counsel for all such Lenders;
	 
	 	(e)	 	any workout or restructuring of the Loans during the pendency of one or more
Events of Default; provided, that in the case of reimbursement of counsel for Lenders
other than Agent, such reimbursement shall be limited to one counsel for all such
Lenders; and
	 
	 	(f)	 	except as otherwise provided in this Agreement, efforts to (i) monitor the
Loans or any of the other Obligations, (ii) evaluate, observe or assess any Credit
Party or its affairs, and (iii) verify, protect, evaluate, assess, appraise, collect,
sell, liquidate or otherwise dispose of any of the Collateral in accordance with the
terms of the Loan Documents;
	 
	 	 	 	including, as to each of clauses (a) through (f) above, all reasonable attorneys’
(other than the allocated cost of internal counsel) and other professional and
service providers’ fees arising from such services and other advice, assistance or
other representation, including those in connection with any appellate proceedings,
and all expenses, costs, charges and other fees incurred by such counsel and others
in connection with or relating to any of the events or actions described in this
Section 11.3, all of which shall be payable, on demand, by Borrowers to Agent.
Without limiting the generality of the foregoing, such expenses, costs, charges and
fees may include: fees, costs and expenses of accountants, environmental advisors,
appraisers, investment bankers, management and other consultants and paralegals;
court costs and expenses; photocopying and duplication expenses; court reporter
fees, costs and expenses; long distance telephone charges; air express charges;
telegram or telecopy charges; secretarial overtime charges; and expenses for travel,
lodging and food paid or incurred in connection with the performance of such legal
or other advisory services.

	11.4	 	No Waiver
	 
	 	 	Agent’s or any Lender’s failure, at any time or times, to require strict performance by any
Credit Party of any provision of this Agreement or any other Loan Document shall not waive,
affect or diminish any right of Agent or such Lender thereafter to demand strict compliance
and

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	 	 	performance herewith or therewith. Any suspension or waiver of an Event of Default shall
not suspend, waive or affect any other Event of Default whether the same is prior or
subsequent thereto and whether the same or of a different type. Subject to the provisions
of Section 11.2, none of the undertakings, agreements, warranties, covenants and
representations of any Credit Party contained in this Agreement or any of the other Loan
Documents and no Default or Event of Default by any Credit Party shall be deemed to have
been suspended or waived by Agent or any Lender, unless such waiver or suspension is by an
instrument in writing signed by an officer of or other authorized employee of Agent and the
applicable required Lenders and directed to Borrower Representative specifying such
suspension or waiver.
	 
	11.5	 	Remedies
	 
	 	 	Agent’s and Lenders’ rights and remedies under this Agreement shall be cumulative and
nonexclusive of any other rights and remedies that Agent or any Lender may have under any
other agreement, including the other Loan Documents, by operation of law or otherwise.
Recourse to the Collateral shall not be required.
	 
	11.6	 	Severability
	 
	 	 	Wherever possible, each provision of this Agreement and the other Loan Documents shall be
interpreted in such a 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 only to the extent of such
prohibition or invalidity without invalidating the remainder of such provision or the
remaining provisions of this Agreement or such other Loan Document.
	 
	11.7	 	Conflict of Terms
	 
	 	 	Except as otherwise provided in this Agreement or any of the other Loan Documents by
specific reference to the applicable provisions of this Agreement, if any provision
contained in this Agreement conflicts with any provision in any of the other Loan Documents,
the provision contained in this Agreement shall govern and control.
	 
	11.8	 	Non-Public Information; Confidentiality.

	 	(a)	 	Non-Public Information
	 
	 	 	 	Agent, each Lender and each L/C Issuer acknowledges and agrees that it may receive
material non-public information (“MNPI”) hereunder concerning the Credit Parties
and their Affiliates and agrees to use such information in compliance with all
relevant policies, procedures and applicable requirements of law (including United
States federal and state securities laws and regulations).

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	 	(b)	 	Confidential Information
	 
	 	 	 	Each Lender, each L/C Issuer and Agent agrees to use all reasonable efforts to
maintain, in accordance with its customary practices, the confidentiality of
information obtained by it pursuant to any Loan Document and designated in writing
by any Credit Party as confidential, except that such information may be disclosed
(i) with Borrower Representative’s consent, (ii) to Related Persons of such Lender,
L/C Issuer or Agent, as the case may be, or to any Person that any L/C Issuer
causes to issue Letters of Credit hereunder, that are advised of the confidential
nature of such information and are instructed to keep such information confidential
in accordance with the terms hereof, (iii) to the extent such information presently
is or hereafter becomes (A) publicly available other than as a result of a breach
of this Section 11.8 or (B) available to such Lender, L/C Issuer or Agent or any of
their Related Persons, as the case may be, from a source (other than any Credit
Party) not known by them to be subject to disclosure restrictions, (iv) to the
extent disclosure is required by applicable requirements of law or other legal
process or requested or demanded by any Governmental Authority, provided that,
other than with respect to any information requested or demanded of a Lender by a
bank regulator, to the extent practicable and permitted by applicable law, the
party requested to disclose such information will provide prompt written request to
the Borrower Representative and will allow the Borrower Representative a reasonable
opportunity to seek protective measures prior to disclosure, (v) to the extent
necessary or customary for inclusion in league table measurements, (vi) (A) to the
National Association of Insurance Commissioners or any similar organization, any
examiner or any nationally recognized rating agency or (B) otherwise to the extent
consisting of general portfolio information that does not identify Credit Parties,
(vii) to current or prospective assignees, SPVs (including the investors or
prospective investors therein) or participants and to their respective Related
Persons, in each case to the extent such assignees, investors, participants,
counterparties or Related Persons agree to be bound by provisions substantially
similar to the provisions of this Section 11.8 (and such Person may disclose
information to their respective Related Persons in accordance with clause (ii)
above), (viii) to any other party hereto, and (ix) in connection with the exercise
or enforcement of any right or remedy under any Loan Document, in connection with
any litigation or other proceeding to which such Lender, L/C Issuer or Agent or any
of their Related Persons is a party or bound, or to the extent necessary to respond
to public statements or disclosures by Credit Parties or their Related Persons
referring to a Lender, L/C Issuer or Agent or any of their Related Persons. In the
event of any conflict between the terms of this Section 11.8 and those of any other
contractual obligation entered into with any Credit Party (whether or not a Loan
Document), the terms of this Section 11.8 shall govern.
	 
	 	(c)	 	Tombstones
	 
	 	 	 	Each Credit Party consents to the publication by Agent or any Lender of advertising
material relating to the financing transactions contemplated by this Agreement
using

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	 	 	 	any Borrower’s or any other Credit Party’s name, product photographs, logo or
trademark. Agent or such Lender shall provide a draft of any advertising material
to Borrower Representative for review and comment within a reasonable time prior to
the publication thereof.
	 
	 	(d)	 	Press Release and Related Matters
	 
	 	 	 	No Credit Party shall, and no Credit Party shall permit any of its Affiliates to,
issue any press release or other public disclosure (other than any document filed
with any Governmental Authority relating to a public offering of securities of any
Credit Party or in any filings with the SEC under the Exchange Act) using the name,
logo or otherwise referring to GE Capital or of any of its Affiliates, the Loan
Documents or any transaction contemplated therein to which Agent is party without
the prior consent of GE Capital except to the extent required to do so under
applicable requirements of law and then, only after consulting with GE Capital.
	 
	 	(e)	 	Distribution of Materials to Lenders and L/C Issuers
	 
	 	 	 	The Credit Parties acknowledge and agree that the Loan Documents and all reports,
notices, communications and other information or materials provided or delivered
by, or on behalf of, the Credit Parties hereunder (collectively, the “Borrower
Materials”) may be disseminated by, or on behalf of, Agent, and made available, to
the Lenders and the L/C Issuers by posting such Borrower Materials on an E-System.
The Credit Parties authorize Agent to download copies of their logos from its
website and post copies thereof on an E-System.
	 
	 	(f)	 	Material Non-Public Information
	 
	 	 	 	The Credit Parties agree that by publicly filing any Borrower Materials with the
SEC, then Agent, the Lenders and the L/C Issuers shall be entitled to treat such
Borrower Materials as not containing any MNPI for purposes of United States federal
and state securities laws.

	11.9	 	GOVERNING LAW

	 	(a)	 	Governing Law
	 
	 	 	 	The laws of the State of New York shall govern all matters arising out of, in
connection with or relating to this Agreement, including, without limitation, its
validity, interpretation, construction, performance and enforcement.

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	 	(b)	 	Submission to Jurisdiction
	 
	 	 	 	Any legal action or proceeding with respect to any Loan Document shall be brought
exclusively in the courts of the State of New York located in the City of New York,
Borough of Manhattan, or of the United States of America for the Southern District
of New York and, by execution and delivery of this Agreement, each Borrower and
each other Credit Party executing this Agreement hereby accepts for itself and in
respect of its property, generally and unconditionally, the jurisdiction of the
aforesaid courts; provided that nothing in this Agreement shall limit the right of
Agent to commence any proceeding in the federal or state courts of any other
jurisdiction to the extent Agent determines that such action is necessary or
appropriate to exercise its rights or remedies under the Loan Documents. The
parties hereto (and, to the extent set forth in any other Loan Document, each other
Credit Party) hereby irrevocably waive any objection, including any objection to
the laying of venue or based on the grounds of forum non conveniens, that any of
them may now or hereafter have to the bringing of any such action or proceeding in
such jurisdiction.
	 
	 	(c)	 	Service of Process
	 
	 	 	 	Each Credit Party hereby irrevocably waives personal service of any and all legal
process, summons, notices and other documents and other service of process of any
kind and consents to such service in any suit, action or proceeding brought in the
United States of America with respect to or otherwise arising out of or in
connection with any Loan Document by any means permitted by applicable requirements
of law, including by the mailing thereof (by registered or certified mail, postage
prepaid) to the address of the Borrower Representative specified herein (and shall
be effective when such mailing shall be effective, as provided therein). Each
Credit Party 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.
	 
	 	(d)	 	Non-Exclusive Jurisdiction
	 
	 	 	 	Nothing contained in this Section 11.9 shall affect the right of Agent or any
Lender to serve process in any other manner permitted by applicable requirements of
law or commence legal proceedings or otherwise proceed against any Credit Party in
any other jurisdiction.

	11.10	 	Notices

	 	(a)	 	Addresses
	 
	 	 	 	All notices and other communications required or expressly authorized to be made by
this Agreement shall be given in writing, unless otherwise expressly specified
herein, and (i) addressed to the address set forth on the applicable signature page
hereto, (ii) posted to Intralinks® (to the extent such system is available and set
up by or at the

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	 	 	 	direction of Agent prior to posting) in an appropriate location by uploading such
notice, demand, request, direction or other communication to
www.intralinks.com,
faxing it to 866-545-6600 with an appropriate bar-code fax coversheet or using such
other means of posting to Intralinks® as may be available and reasonably acceptable
to Agent prior to such posting, (iii) posted to any other E-System approved by or
set up by or at the direction of Agent or (iv) addressed to such other address as
shall be notified in writing (A) in the case of any Borrower, Agent and the Swing
Line Lender, to the other parties hereto and (B) in the case of all other parties,
to the Borrower Representative and Agent. Transmissions made by electronic mail or
E-Fax to Agent shall be effective only (x) for notices where such transmission is
specifically authorized by this Agreement, (y) if such transmission is delivered in
compliance with procedures of Agent applicable at the time and previously
communicated to Borrower Representative, and (z) if receipt of such transmission is
acknowledged by Agent.
	 
	 	(b)	 	Effectiveness
	 
	 	(i)	 	All communications described in Section 11.10(a) and all other notices,
demands, requests and other communications made in connection with this Agreement
shall be effective and be deemed to have been received (i) if delivered by hand,
upon personal delivery, (ii) if delivered by overnight courier service, one (1)
Business Day after delivery to such courier service, (iii) if delivered by mail,
three (3) Business Days after deposit in the mail, (iv) if delivered by facsimile
(other than to post to an E-System pursuant to clause (a)(ii) or (a)(iii) above),
upon sender’s receipt of confirmation of proper transmission, and (v) if delivered
by posting to any E-System, on the later of the Business Day of such posting and
the Business Day access to such posting is given to the recipient thereof in
accordance with the standard procedures applicable to such E-System; provided,
however, that no communications to Agent pursuant to Article I shall be effective
until received by Agent.
	 
	 	(ii)	 	The posting, completion and/or submission by any Credit Party of any
communication pursuant to an E-System shall constitute a representation and
warranty by the Credit Parties that any representation, warranty, certification or
other similar statement required by the Loan Documents to be provided, given or
made by a Credit Party in connection with any such communication is true, correct
and complete except as expressly noted in such communication or E-System.
	 
	 	(c)	 	Each Lender shall notify Agent in writing of any changes in the address to
which notices to such Lender should be directed, of addresses of its applicable
lending office, of payment instructions in respect of all payments to be made to it
hereunder and of such other administrative information as Agent shall reasonably
request.

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	11.11	 	Electronic Transmissions»

	 	(a)	 	Authorization
	 
	 	 	 	Subject to the provisions of Section 11.10(a), each of Agent, Lenders, each Credit
Party and each of their Related Persons, is authorized (but not required) to
transmit, post or otherwise make or communicate, in its sole discretion, Electronic
Transmissions in connection with any Loan Document and the transactions
contemplated therein. Each Credit Party and each Lender, L/C Issuer and Agent
acknowledges and agrees that the use of Electronic Transmissions is not necessarily
secure and that there are risks associated with such use, including risks of
interception, disclosure and abuse and each indicates it assumes and accepts such
risks by hereby authorizing the transmission of Electronic Transmissions.
	 
	 	(b)	 	Signatures
	 
	 	 	 	Subject to the provisions of Section 11.10(a), (i)(A) no posting to any E-System
shall be denied legal effect merely because it is made electronically, (B) each
E-Signature on any such posting shall be deemed sufficient to satisfy any
requirement for a “signature” and (C) each such posting shall be deemed sufficient
to satisfy any requirement for a “writing”, in each case including pursuant to any
Loan Document, any applicable provision of any UCC, the federal Uniform Electronic
Transactions Act, the Electronic Signatures in Global and National Commerce Act and
any substantive or procedural requirement of law governing such subject matter,
(ii) each such posting that is not readily capable of bearing either a signature or
a reproduction of a signature may be signed, and shall be deemed signed, by
attaching to, or logically associating with such posting, an E-Signature, upon
which Agent, each Lender, each L/C Issuer and each Credit Party may rely and assume
the authenticity thereof, (iii) each such posting containing a signature, a
reproduction of a signature or an E-Signature shall, for all intents and purposes,
have the same effect and weight as a signed paper original and (iv) each party
hereto or beneficiary hereto agrees not to contest the validity or enforceability
of any posting on any E-System or E-Signature on any such posting under the
provisions of any applicable requirement of law requiring certain documents to be
in writing or signed; provided, however, that nothing herein shall
limit such party’s or beneficiary’s right to contest whether any posting to any
E-System or E-Signature has been altered after transmission.
	 
	 	(c)	 	Separate Agreements
	 
	 	 	 	All uses of an E-System shall be governed by and subject to, in addition to Section
11.10 and this Section 11.11, the separate terms, conditions and privacy policy
posted or referenced in such E-System (or such terms, conditions and privacy policy
as may be updated from time to time, including on such E-System) and related
contractual
obligations executed by Agent and Credit Parties in connection with the use of such
E-System.

101

 

	 	(d)	 	LIMITATION OF LIABILITY
	 
	 	 	 	ALL E-SYSTEMS AND ELECTRONIC TRANSMISSIONS SHALL BE PROVIDED “AS IS” AND “AS
AVAILABLE”. NONE OF AGENT, ANY LENDER OR ANY OF THEIR RELATED PERSONS WARRANTS THE
ACCURACY, ADEQUACY OR COMPLETENESS OF ANY E-SYSTEMS OR ELECTRONIC TRANSMISSION AND
DISCLAIMS ALL LIABILITY FOR ERRORS OR OMISSIONS THEREIN. NO WARRANTY OF ANY KIND
IS MADE BY AGENT, ANY LENDER OR ANY OF THEIR RELATED PERSONS IN CONNECTION WITH ANY
E-SYSTEMS OR ELECTRONIC COMMUNICATION, INCLUDING ANY WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD-PARTY RIGHTS OR FREEDOM
FROM VIRUSES OR OTHER CODE DEFECTS. Each of each Borrower, each other Credit Party
executing this Agreement and each Lender and L/C Issuer agrees that Agent has no
responsibility for maintaining or providing any equipment, software, services or
any testing required in connection with any Electronic Transmission or otherwise
required for any E-System.

	11.12	 	Section Titles
	 
	 	 	The Section titles and Table of Contents contained in this Agreement are and shall be
without substantive meaning or content of any kind whatsoever and are not a part of the
agreement between the parties hereto.
	 
	11.13	 	Counterparts
	 
	 	 	This Agreement may be executed in any number of separate counterparts, each of which shall
collectively and separately constitute one agreement.
	 
	11.14	 	WAIVER OF JURY TRIAL
	 
	 	 	THE PARTIES HERETO, TO THE EXTENT PERMITTED BY LAW, WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS AND ANY OTHER TRANSACTION CONTEMPLATED HEREBY AND
THEREBY. THIS WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE.
	 
	11.15	 	Omitted
	 
	11.16	 	Reinstatement
	 
	 	 	This Agreement shall remain in full force and effect and continue to be effective should any
petition be filed by or against any Credit Party for liquidation or reorganization, should
any Credit

102

 

	 	 	 	Party become insolvent or make an assignment for the benefit of any creditor or
creditors or should a receiver or trustee be appointed for all or any significant part of
any Credit Party’s assets, and shall continue to be effective or to be reinstated, as the
case may be, if at any time payment and performance of the Obligations, or any part thereof,
is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by any obligee of the Obligations, whether as a “voidable preference,”
“fraudulent conveyance,” or otherwise, all as though such payment or performance had not
been made. In the event that any payment, or any part thereof, is rescinded, reduced,
restored or returned, the Obligations shall be reinstated and deemed reduced only by such
amount paid and not so rescinded, reduced, restored or returned.
	 
	 	11.17	 	Advice of Counsel
	 
	 	 	 	Each of the parties represents to each other party hereto that it has discussed this
Agreement and, specifically, the provisions of Sections 11.9 and 11.14, with its counsel.
	 
	 	11.18	 	No Strict Construction
	 
	 	 	 	The parties hereto have participated jointly in the negotiation and drafting of this
Agreement. In the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties hereto and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement.
	 
	 	11.19	 	Patriot Act
	 
	 	 	 	Each Lender that is subject to the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, P.L. 107-56, as
amended (the “Patriot Act”) hereby notifies the Credit Parties that pursuant to the
requirements of the Patriot Act, it 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.

103

 

     IN WITNESS WHEREOF, this Credit Agreement has been duly executed as of the date first
written above.

	 	 	 	 	 
	 	H&E EQUIPMENT SERVICES, INC.,

as a Borrower

 	 
	 	By:  	/s/
Leslie Magee	 
	 	 	Name:  	 Leslie Magee	 
	 	 	Title:  	CFO	 
	 
	 	H&E EQUIPMENT SERVICES (CALIFORNIA), LLC,

as a Borrower

 	 
	 	By:  	/s/
 Leslie Magee	 
	 	 	Name:  	Leslie Magee	 
	 	 	Title:  	CFO	 
	 
	 	GREAT NORTHERN EQUIPMENT, INC.,

as a Borrower

 	 
	 	By:  	/s/
Leslie Magee	 
	 	 	Name:  	Leslie Magee	 
	 	 	Title:  	CFO	 
	 

H&E Equipment Services, Inc. Credit Agreement

 

 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL CORPORATION,

as Agent and a Lender

 	 
	 	By:  	/s/
Jeffrey S. Kurtzweil
	 
	 	 	Name:  	Jeffrey S. Kurtzweil	 
	 	 	Title:  	Vice President	 
	 

H&E Equipment Services, Inc. Credit Agreement

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as a Lender

 	 
	 	By:  	/s/
Edmundo Kahn	 
	 	 	Name:  	Edmundo Kahn	 
	 	 	Title:  	Vice President	 
	 

H&E Equipment Services, Inc. Credit Agreement

 

 

	 	 	 	 	 
	 	WELLS FARGO CAPITAL FINANCE, LLC,

as a Lender

 	 
	 	By:  	/s/
David P. Hill	 
	 	 	Name:  	David  Hill	 
	 	 	Title:  	Vice President	 
	 

H&E Equipment Services, Inc. Credit Agreement

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as a Lender

 	 
	 	By:  	/s/
Mario Quintanilla	 
	 	 	Name:  	Mario Quintanilla	 
	 	 	Title:  	Vice President	 
	 

H&E Equipment Services, Inc. Credit Agreement

 

 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/
Jeffrey W. Swartz	 
	 	 	Name:  	Jeffrey W. Swartz	 
	 	 	Title:  	Vice President	 
	 

H&E Equipment Services, Inc. Credit Agreement

 

 

	 	 	 	 	 
	 	REGIONS BANK,

as a Lender

 	 
	 	By:  	/s/
George Lewis McKinley	 
	 	 	Name:  	George Lewis McKinley	 
	 	 	Title:  	Attorney in Fact	 
	 

H&E Equipment Services, Inc. Credit Agreement

 

 

	 	 	 	 	 
	 	CAPITAL ONE LEVERAGE FINANCE
CORP.,

as a Lender

 	 
	 	By:  	/s/
John F. Oldham	 
	 	 	Name:  	John F. Oldham	 
	 	 	Title:  	Senior Vice President	 
	 

H&E Equipment Services, Inc. Credit Agreement

 

 

     The following Persons are signatories to this Credit Agreement in their capacity as Credit
Parties and not as Borrower:

	 	 	 	 	 
	 	GNE INVESTMENTS, INC.,

as a Credit Party

 	 
	 	By:  	/s/ Leslie Magee	 
	 	 	Name:  	Leslie Magee	 
	 	 	Title:  	CFO	 
	 
	 	H&E FINANCE CORP.,

as a Credit Party

 	 
	 	By:  	/s/ Leslie Magee	 
	 	 	Name:  	Leslie Magee	 
	 	 	Title:  	CFO	 
	 
	 	H&E CALIFORNIA HOLDING, INC.,

as a Credit Party

 	 
	 	By  	/s/ Leslie Magee	 
	 	 	Name:  	Leslie Magee	 
	 	 	Title:  	CFO	 
	 
	 	H&E EQUIPMENT SERVICES (MID-ATLANTIC),
INC.,

as a Credit Party

 	 
	 	By:  	/s/ Leslie Magee	 
	 	 	Name:  	Leslie Magee	 
	 	 	Title:  	CFO	 
	 

H&E Equipment Services, Inc. Credit Agreement

 

 

ANNEX A (Recitals)

to

CREDIT AGREEMENT

DEFINITIONS

Capitalized terms used in the Loan Documents shall have (unless otherwise provided elsewhere in the
Loan Documents) the following respective meanings, and all references to Sections, Exhibits,
Schedules or Annexes in the following definitions shall refer to Sections, Exhibits, Schedules or
Annexes of or to the Agreement:

“A Rated Bank” has the meaning assigned to it in Section 6.2.

“Account Debtor” means any Person who may become obligated to a Credit Party under, with
respect to, or on account of, an Account, Rentals, Chattel Paper or General Intangibles
(including a payment intangible).

“Accounting Changes” has the meaning assigned to it in the last sentence of this Annex A.

“Accounts” means all “accounts,” as such term is defined in the Code, now owned or hereafter
acquired by any Credit Party including (a) all accounts receivable, other receivables, book
debts and other forms of obligations (other than forms of obligations evidenced by Chattel
Paper, or Instruments), (including any such obligations that may be characterized as an
account or contract right under the Code), (b) all of each Credit Party’s rights in, to and
under all purchase orders or receipts for goods or services, (c) all of each Credit Party’s
rights to any goods represented by any of the foregoing (including unpaid sellers’ rights of
rescission, replevin, reclamation and stoppage in transit and rights to returned, reclaimed
or repossessed goods), (d) all rights to payment due to any Credit Party for property sold,
leased, licensed, assigned or otherwise disposed of, for a policy of insurance issued or to
be issued, for a secondary obligation incurred or to be incurred, for energy provided or to
be provided, for the use or hire of a vessel under a charter or other contract, arising out
of the use of a credit card or charge card, or for services rendered or to be rendered by
such Credit Party or in connection with any other transaction (whether or not yet earned by
performance on the part of such Credit Party), (e) all health care insurance receivables and
(f) all collateral security of any kind, given by any Account Debtor or any other Person
with respect to any of the foregoing.

“Additional Revolving Lender” has the meaning provided in Section 1.18.

“Advance” means any Revolving Credit Advance or Swing Line Advance, as the context may
require.

“Affiliate” means, with respect to any Person, (a) each Person that, directly or indirectly,
owns or controls, whether beneficially, or as a trustee, guardian or other fiduciary, ten
percent (10%) or

A-1

 

more of the Stock having ordinary voting power in the election of directors of such Person,
(b) each Person that controls, is controlled by or is under common control with such Person,
(c) each of such Person’s officers, directors, joint venturers and partners and (d) in the
case of any Credit Party, the immediate family members, spouses and lineal descendants of
individuals who are Affiliates of such Credit Party. For the purposes of this definition,
“control” of a Person means the possession, directly or indirectly, of the power to direct
or cause the direction of its management or policies, whether through the ownership of
voting securities, by contract or otherwise; provided, that the term “Affiliate” shall
specifically include Don Wheeler and John Engquist and exclude Agent and each Lender.

“Agent” means GE Capital in its capacity as Administrative Agent for Lenders or its
successor appointed pursuant to Section 9.7.

“Aggregate Borrowing Base” means, as of any date of determination, an amount equal to the
sum of the Great Northern Borrowing Base, the H&E Borrowing Base and the H&E California
Borrowing Base.

“Agreement” has the meaning assigned to it in the recitals to the Agreement.

“Appendices” has the meaning assigned to it in the recitals to the Agreement.

“Applicable L/C Margin” means the per annum fee, from time to time in effect, payable with
respect to outstanding Letter of Credit Obligations as determined by reference to
Section 1.5(a).

“Applicable Margins” means, collectively, the Applicable L/C Margin, the Applicable Unused
Line Fee Margin, the Applicable Revolver Index Margin and the Applicable Revolver LIBOR
Margin all as set forth in Section 1.5(a).

“Applicable Revolver Index Margin” means the per annum interest rate margin from time to
time in effect and payable in addition to the Index Rate applicable to the Revolving Credit
Advances, the Swingline Advances, unreimbursed Letter of Credit Obligations and other
Obligations (excluding LIBOR Loans) as determined by reference to Section 1.5(a).

“Applicable Revolver LIBOR Margin” means the per annum interest rate from time to time in
effect and payable in addition to the LIBOR Rate applicable to LIBOR Loans, as determined by
reference to Section 1.5(a).

“Applicable Revolver Margins” means, collectively, the Applicable Revolver Index Margin and
the Applicable Revolver LIBOR Margin.

“Applicable Unused Line Fee Margin” means the per annum fee, from time to time in effect,
payable in respect of Borrowers’ non-use of committed funds pursuant to Section 1.9(c),
which fee is determined by reference to Section 1.5(a).

A-2

 

“Approved Fund” means, with respect to any Lender, any Person (other than a natural Person)
that (a) (i) is or will be engaged in making, purchasing, holding or otherwise investing in
commercial loans and similar extensions of credit in the ordinary course of business or (ii)
temporarily warehouses loans for any Lender or any Person described in clause (i) above, (b)
is advised or managed by (i) such Lender, (ii) any Affiliate of such Lender or (iii) any
Person (other than an individual) or any Affiliate of any Person (other than an individual)
that administers or manages such Lender and (c) has represented to such Lender in the
applicable Assignment Agreement that such Person is not acting in the capacity of a vulture
fund or a distressed debt purchaser.

“Arrangers” means, collectively, GE Capital Markets, Inc. and Bank of America, N.A., as
joint lead arrangers and joint bookrunners.

“Assignment Agreement” means an assignment agreement entered into by a Lender, as assignor,
and any Person, as assignee, pursuant to the terms and provisions of Section 9.1 (with the
consent of any party whose consent is required by Section 9.1), accepted by Agent,
substantially in the form of Exhibit 9.1(a) or any other form approved by Agent.

“Attorney Costs” means and includes all reasonable fees and disbursements of any law firm or
other external counsel.

“Audit and Appraisal Liquidity Event” means the determination by the Agent that Excess
Availability on any day is less than $75,000,000. The occurrence of an Audit and Appraisal
Liquidity Event shall be deemed continuing notwithstanding that Excess Availability may
thereafter exceed $75,000,000 unless and until Excess Availability exceeds $75,000,000 for
sixty (60) consecutive days, in which event an Audit and Appraisal Liquidity Event shall no
longer be deemed to be continuing; provided that an Audit and Appraisal Liquidity Event may
not be cured as contemplated by this sentence more than two times in any four Fiscal Quarter
period.

“Authorized Officer” means any of the following officers of each Credit Party: the chief
executive officer, the chief operating officer, the chief financial officer, executive vice
president, the secretary and the treasurer.

“Bankruptcy Code” means the provisions of Title 11 of the United States Code, 11 U.S.C.
§§ 101 et seq.

“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule13d-5 under
the Exchange Act, except that in calculating the beneficial ownership of any particular
“person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will
be deemed to have beneficial ownership of all securities that such “person” has the right to
acquire by conversion or exercise of other securities, whether such right is currently
exercisable or is exercisable only after the passage of time. The terms “Beneficially Owns”
and “Beneficially Owned” have a corresponding meaning.

A-3

 

“Blocked Account Agreement” has the meaning assigned to it in Annex C.

“Blocked Accounts” has the meaning assigned to it in Annex C.

“Borrower” has the meaning assigned to it in the preamble to the Agreement.

“Borrower Representative” means H&E Delaware in its capacity as Borrower Representative
pursuant to the provisions of Section 1.1(c).

“Borrowing Availability” means as of any date of determination (a) as to all Borrowers, the
lesser of (i) the Maximum Amount and (ii) the Aggregate Borrowing Base, in each case,
less the sum of the aggregate Revolving Loan and Swing Line Loan then outstanding,
or (b) as to an individual Borrower, the lesser of (i) the Maximum Amount less the
sum of the Revolving Loan and Swing Line Loan outstanding to all other Borrowers and
(ii) that Borrower’s separate Borrowing Base, less the sum of the Revolving Loan and
Swing Line Loan outstanding to that Borrower.

“Borrowing Base” means, as the context may require, the H&E Borrowing Base, the H&E
California Borrowing Base, the Great Northern Borrowing Base or the Aggregate Borrowing
Base.

“Borrowing Base Certificate” means a certificate to be executed and delivered from time to
time by Borrower Representative on behalf of any Borrower in the form attached to the
Agreement as Exhibit 4.1(b).

“Business Day” means any day that is not a Saturday, a Sunday or a day on which banks are
required or permitted to be closed in the State of New York and, when determined in
connection with notices and determinations in respect of any LIBOR Rate or LIBOR Loan or any
funding, conversion, continuation, LIBOR Period or payment of any LIBOR Loan, that is also a
day on which dealings in Dollar deposits are carried on in the London interbank market.

“Capital Lease” means, with respect to any Person, any lease of any property (whether real,
personal or mixed) by such Person as lessee that, in accordance with GAAP, would be required
to be classified and accounted for as a capital lease on a balance sheet of such Person.

“Capital Lease Obligation” means as of any date of determination, with respect to any
Capital Lease of any Person, the amount of the obligation of the lessee thereunder that, in
accordance with GAAP, would appear on a balance sheet of such lessee in respect of such
Capital Lease as of the date of determination.

“Cash Collateral Account” has the meaning assigned to it Annex B.

“Cash Dominion Event” means the determination by Agent that Excess Availability on any day
is less than (x) $65,000,000 or (y) at any time when the aggregate Revolving Loan
Commitments exceed $320,000,000 due to the application of Section 1.18, the greater of
$65,000,000 and 20%

A-4

 

of the aggregate Commitments of all Lenders then in effect (the amounts in (x) or (y), as
applicable, each a “Cash Dominion Threshold Amount”). The occurrence of a Cash Dominion
Event shall be deemed continuing notwithstanding that Excess Availability may thereafter
exceed the Cash Dominion Threshold Amount unless and until Excess Availability exceeds the
Cash Dominion Threshold Amount for sixty (60) consecutive days, in which event a Cash
Dominion Event shall no longer be deemed to be continuing; provided that a Cash Dominion
Event may not be cured as contemplated by this sentence more than two times in any four
Fiscal Quarter period.

“Cash Equivalents” has the meaning assigned to it in Annex B.

“Cash Management Systems” has the meaning assigned to it in Section 1.8.

“Certificate of Exemption” has the meaning assigned to it in Section 1.15(c).

“Change of Control” means the occurrence of any of (a) any event, transaction or occurrence
as a result of which (i) H&E Delaware shall cease to own and control, directly or
indirectly, all of the economic and voting rights associated with ownership of at least one
hundred percent (100%) of the outstanding capital Stock of H&E Finance, GNE Investments, H&E
California Holding and H&E Mid-Atlantic, each on a fully diluted basis, (ii) H&E Delaware
together with H&E California Holding shall cease to own and control, directly or indirectly,
all of the economic and voting rights associated with ownership of at least one hundred
percent (100%) of the outstanding membership interests of H&E California, (iii) GNE
Investments shall cease to own and control all of the economic and voting rights associated
with ownership of at least one hundred percent (100%) of the outstanding capital Stock of
Great Northern on a fully diluted basis, in each case except pursuant to a merger as
provided in Section 6.1(b) or (iv) a “Change of Control” as such term is or any similar
defined in the Senior Unsecured Note Indenture or any agreement governing Subordinated Debt
having an original principal amount in excess of $2,000,000; (b) the direct or indirect
sale, lease, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or substantially all of
the properties or assets of any Borrower and its Subsidiaries taken as a whole to any
“person” (as that term is used in Section 13(d) of the Exchange Act) other than a Principal
or a Related Party of a Principal; (c) the adoption of a plan relating to the liquidation or
dissolution of any Borrower; or (d) the consummation of any transaction (including, without
limitation, any merger or consolidation), the result of which is that any “person” (as
defined above), other than the Principals and their Related Parties, becomes the Beneficial
Owner, directly or indirectly, of more than 50% of the voting Stock of any Borrower,
measured by voting power rather than number of shares. Notwithstanding the foregoing, (i)
any dividend or other distribution of any voting Stock of any Borrower by any Principal to
the direct or indirect equity holders and other investors of such Principal (or further
dividend or other distribution by such equity holders and other investors to their
respective direct or indirect equity holders and other investors), in accordance with the
terms of the documents (of such Principal or such direct or indirect equity holders and
other investors of such Principal) governing such equity or other investments or as
otherwise agreed by such equity holders and other investors, will not constitute

A-5

 

a Change of Control, and (ii) the existence from time to time of any “group” (as that term
is used in Section 13(d) of the Exchange Act) comprised of any such equity holders and other
investors will not constitute a Change of Control.

“Charges” means all federal, state, county, city, municipal, local, foreign or other
governmental taxes (including taxes owed to the PBGC at the time due and payable), levies,
assessments, charges, liens, claims or encumbrances upon or relating to (a) the Collateral,
(b) the Obligations, (c) the employees, payroll, income or gross receipts of any Credit
Party, (d) any Credit Party’s ownership or use of any properties or other assets, or (e) any
other aspect of any Credit Party’s business.

“Chattel Paper” means any “chattel paper,” as such term is defined in the Code, including
electronic chattel paper, now owned or hereafter acquired by any Credit Party.

“Closing Checklist” means the schedule, including all appendices, exhibits or schedules
thereto, listing certain documents and information to be delivered in connection with the
Agreement, the other Loan Documents and the transactions contemplated thereunder,
substantially in the form attached hereto as Annex D.

“Closing Date” means the date and time that the conditions set forth in Section 2.1 hereof
are satisfied or waived, and this Amendment and Restatement becomes effective.

“Code” means the Uniform Commercial Code as the same may, from time to time, be enacted and
in effect in the State of New York; provided, that to the extent that the Code is used to
define any term herein or in any Loan Document and such term is defined differently in
different Articles of the Code, the definition of such term contained in Article 9 of the
Code shall govern; provided, further, that in the event that, by reason of mandatory
provisions of law, any or all of the attachment, perfection or priority of, or remedies with
respect to, Agent’s or any Lender’s Lien on any Collateral is governed by the Uniform
Commercial Code as enacted and in effect in a jurisdiction other than the State of New York,
the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such
other jurisdiction solely for purposes of the provisions thereof relating to such
attachment, perfection, priority or remedies and for purposes of definitions related to such
provisions.

“Collateral” means the property covered by the Guaranty and Security Agreement and the other
Collateral Documents and any other property, real or personal, tangible or intangible, now
existing or hereafter acquired, that may at any time be or become subject to a security
interest or Lien in favor of Agent, on behalf of itself and Lenders, to secure the
Obligations.

“Collateral Documents” means the Guaranty and Security Agreement, the Blocked Account
Agreements, the Control Letters, Lock Box agreements, the Patent Security Agreements, the
Trademark Security Agreements, the Copyright Security Agreements and all similar agreements
entered into guaranteeing payment of, or granting a Lien upon property as security for
payment of, the Obligations.

A-6

 

“Collateral Reports” means the reports with respect to the Collateral referred to in
Annex F.

“Collection Account” means that certain account of Agent, account number 50 279 513 in the
name of Agent at Deutsche Bank Trust Company, in New York, New York ABA No. 021 001 033,
Account Name: GECC CFS CIF Collection Account, Reference: CFK 1400-H&E Equipment Services,
Inc., or such other account as may be specified in writing by Agent as the “Collection
Account”.

“Commitment
Termination Date” means the earliest of (a) July 29, 2015, (b) the date of
termination of Lenders’ obligations to make Advances and to incur Letter of Credit
Obligations or permit existing Loans to remain outstanding pursuant to Section 8.2(b), and
(c) the date of indefeasible prepayment in full in cash by Borrowers of the Loans and the
cancellation and return (or stand-by guarantee) of all Letters of Credit or the cash
collateralization of all Letter of Credit Obligations pursuant to Annex B, and the
permanent reduction of all Commitments to zero dollars ($0) or the termination of all
Commitments (or the cash collateralization or backing with standby letters of credit of all
Letters of Credit in accordance with Annex B), in accordance with the provisions of
Section 1.3(a).

“Commitments” means (a) as to any Lender, such Lender’s Revolving Loan Commitment (including
without duplication the Swing Line Lender’s Swing Line Commitment as a subset of its
Revolving Loan Commitment) as set forth on the signature page to the Agreement or in the
most recent Assignment Agreement executed by such Lender and (b) as to all Lenders, the
aggregate of all Lenders’ Revolving Loan Commitments (including without duplication the
Swing Line Lender’s Swing Line Commitment as a subset of its Revolving Loan Commitment),
which aggregate commitment shall be Three Hundred Twenty Million Dollars ($320,000,000) on
the Closing Date, as such amount may be reduced, amortized or adjusted from time to time in
accordance with the Agreement.

“Compliance Certificate” has the meaning assigned to it in Annex E.

“Concentration Account” has the meaning assigned to it in Annex C.

“Contracts” means all contracts, undertakings, or agreements (other than rights evidenced by
Chattel Paper, Documents or Instruments) now owned or hereafter entered into or acquired by
any Credit Party in or under which any Credit Party may now or hereafter have any right,
title or interest, including any agreement relating to the terms of payment or the terms of
performance of any Account.

“Control Letter” means a letter agreement between Agent and (i) the issuer of uncertificated
securities with respect to uncertificated securities in the name of any Credit Party, (ii) a
securities intermediary with respect to securities, whether certificated or uncertificated,
securities entitlements and other financial assets held in a securities account in the name
of any Credit Party, (iii) a futures commission merchant or clearing house, as applicable,
with respect to commodity accounts and commodity contracts held by any Credit Party,
whereby, among other

A-7

 

things, the issuer, securities intermediary or futures commission merchant disclaims any
security interest in the applicable financial assets, acknowledges the Lien of Agent, on
behalf of itself and Lenders, on such financial assets, and agrees to follow the
instructions or entitlement orders of Agent without further consent by the affected Credit
Party.

“Copyright License” means any and all rights now owned or hereafter acquired by any Credit
Party under any written agreement granting any right to use any Copyright or Copyright
registration.

“Copyright Security Agreements” means the Copyright Security Agreements made in favor of
Agent, on behalf of itself and Lenders, by each applicable Credit Party.

“Copyrights” means all of the following now owned or hereafter acquired by any Credit Party:
(a) all copyrights and General Intangibles of like nature (whether registered or
unregistered), all registrations and recordings thereof, and all applications in connection
therewith, including all registrations, recordings and applications in the United States
Copyright Office or in any similar office or agency of the United States, any state or
territory thereof, or any other country or any political subdivision thereof, and (b) all
reissues, extensions or renewals thereof.

“Covenant Liquidity Event” means the determination by the Agent that Excess Availability on
any day is less than (x) $40,000,000 or (y) at any time when the aggregate Revolving Loan
Commitments exceed $320,000,000 due to the application of Section 1.18, the greater of
$40,000,000 and 12.5% of the aggregate Commitments of all Lenders then in effect (the
amounts in (x) and (y), as applicable, each a “Covenant Liquidity Event Threshold Amount”).
The occurrence of a Covenant Liquidity Event shall be deemed continuing notwithstanding
that Excess Availability may thereafter exceed the Covenant Liquidity Event Threshold Amount
unless and until Excess Availability exceeds the Covenant Liquidity Event Threshold Amount
for sixty (60) consecutive days, in which event a Covenant Liquidity Event shall no longer
be deemed to be continuing; provided that a Covenant Liquidity Event may not be cured as
contemplated by this sentence more than two times in any four Fiscal Quarter period.

“Credit Parties” means each Borrower and each Guarantor.

“Default” means any event that, with the passage of time or notice or both, would, unless
cured or waived, become an Event of Default.

“Default Rate” has the meaning assigned to it in Section 1.5(d).

“Deposit Accounts” means all “deposit accounts” as such term is defined in the Code, now or
hereafter held in the name of any Credit Party.

“Disbursement Accounts” has the meaning assigned to it on Annex C.

A-8

 

“Disclosure Schedules” means the Schedules prepared by Borrowers and denominated as
Disclosure Schedules 3.1 through 6.7 in the Index to the Agreement.

“Documents” means all “documents,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, wherever located.

“Dollars” or “$” means lawful currency of the United States of America.

“Domestic Guarantor” means a Guarantor that is organized under the laws of a state of the
United States of America or the District of Columbia.

“Domestic Subsidiary” means, with respect to any Person, a Subsidiary of such Person that is
organized under the laws of a state of the United States of America or the District of
Columbia.

“Eagle Acquisition Agreement” means that certain Acquisition Agreement dated as of January
4, 2006, by and among H&E Delaware (as successor by merger to H&E Equipment Services,
L.L.C.), Eagle Merger Corp., a Delaware corporation, H&E California, H&E California Holding,
SBN Eagle LLC, a Delaware limited liability company, SummitBridge National Investments LLC,
a Delaware limited liability company and the shareholders of Eagle S-Corp.

“EBITDA” means, with respect to any Person for any fiscal period, without duplication an
amount equal to (a) consolidated net income of such Person for such period determined in
accordance with GAAP, minus (b) the sum of (i) any benefit for income taxes,
(ii) interest income, (iii) gain from extraordinary items for such period, and (iv) any
other gains (excluding gains arising from the sale, exchange or other disposition of
Equipment Inventory) that have been added in determining consolidated net income, in each
case to the extent included in the calculation of consolidated net income of such Person for
such period in accordance with GAAP, but without duplication, plus (c) the sum of
(i) any provision for income taxes, (ii) Interest Expense, (iii) loss from extraordinary
items for such period, (iv) the amount of non-cash charges (including depreciation and
amortization) for such period and (v) the amount of any deduction to consolidated net
income as the result of any grant to any members of the management of such Person of any
Stock, in each case to the extent included in the calculation of consolidated net income of
such Person for such period in accordance with GAAP, but without duplication. For purposes
of this definition, the following items shall be excluded in determining consolidated net
income of a Person: (1) the income (or deficit) of any other Person accrued prior to the
date it became a Subsidiary of, or was merged or consolidated into, such Person or any of
such Person’s Subsidiaries; (2) the income (or deficit) of any other Person (other than a
Subsidiary) in which such Person has an ownership interest, except to the extent any such
income has actually been received by such Person in the form of cash dividends or
distributions; (3) the undistributed earnings of any Subsidiary of such Person to the extent
that the declaration or payment of dividends or similar distributions by such Subsidiary is
not at the time permitted by the terms of any contractual obligation or requirement of law
applicable to such Subsidiary; (4) any restoration to income of any contingency reserve,
except to the extent that provision for such

A-9

 

reserve was made out of income accrued during
such period; (5) any write-up or write-down of
any asset (excluding any write-down related to any Accounts and Parts and Tools Inventory
and Equipment Inventory); (6) any net gain from the collection of the proceeds of life
insurance policies; (7) any net gain or net loss arising from the acquisition or disposition
of any securities, or the extinguishment, under GAAP, of any Indebtedness, of such Person,
(8) in the case of a successor to such Person by consolidation or merger or as a transferee
of its assets, any earnings of such successor prior to such consolidation, merger or
transfer of assets, and (9) any deferred credit representing the excess of equity in any
Subsidiary of such Person at the date of acquisition of such Subsidiary over the cost to
such Person of the investment in such Subsidiary.

“Electronic Transmission” means each document, instruction, authorization, file, information
and any other communication transmitted, posted or otherwise made or communicated by e-mail
or E-Fax, or otherwise to or from an E-System or other equivalent service.

“Eligible Accounts” has the meaning assigned to it in Section 1.6.

“Eligible Equipment Inventory” has the meaning assigned to it in Section 1.7A and excludes
Eligible Parts and Tools Inventory and Eligible Rolling Stock.

“Eligible Parts and Tools Inventory” has the meaning assigned to it in Section 1.7 and
excludes Eligible Equipment Inventory and Eligible Rolling Stock.

“Eligible Rentals” has the meaning assigned to it in Section 1.6B.

“Eligible Rolling Stock” has the meaning assigned to it in Section 1.6A and excludes
Eligible Parts and Tools Inventory and Eligible Equipment Inventory.

“Environmental Laws” means all applicable federal, state, local and foreign laws, statutes,
ordinances, codes, rules, standards and regulations, now or hereafter in effect, and any
applicable judicial or administrative interpretation thereof, including any applicable
judicial or administrative order, consent decree, order or judgment, imposing liability or
standards of conduct for or relating to the regulation and protection of human health or
safety, the environment and natural resources (including ambient air, surface water,
groundwater, wetlands, land surface or subsurface strata, wildlife, aquatic species and
vegetation). Environmental Laws include the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. §§ 9601 et seq.) (“CERCLA”); the
Hazardous Materials Transportation Authorization Act of 1994 (49 U.S.C. §§ 5101 et seq.);
the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. §§ 136 et seq.); the Solid
Waste Disposal Act (42 U.S.C. §§ 6901 et seq.); the Toxic Substance Control Act (15 U.S.C.
§§ 2601 et seq.); the Clean Air Act (42 U.S.C. §§ 7401 et seq.); the Federal Water Pollution
Control Act (33 U.S.C. §§ 1251 et seq.); the Occupational Safety and Health Act (29 U.S.C.
§§ 651 et seq.); and the Safe Drinking Water Act (42 U.S.C. §§ 300(f) et seq.), and any and
all regulations promulgated thereunder, and all analogous state, local and foreign
counterparts or equivalents and any transfer of ownership notification or approval statutes.

A-10

 

“Environmental Liabilities” means all Liabilities (including costs of Remedial Actions,
natural resource damages and costs and expenses of investigation and feasibility studies,
including the cost of environmental consultants and Attorneys’ Costs) incurred by any Credit
Party or any Subsidiary of any Credit Party as a result of, or related to, any claim, suit,
action, investigation, proceeding or demand by any Person, whether based in contract, tort,
implied or express warranty, strict liability, criminal or civil statute or common law or
otherwise, arising under any Environmental Law or in connection with any Release and
resulting from the ownership, lease, sublease or other operation or occupation of property
by any Credit Party or any Subsidiary of any Credit Party, whether on, prior or after the
date hereof.

“Environmental Permits” means all permits, licenses, authorizations, certificates,
approvals, registrations or other written documents required by any Governmental Authority
under any Environmental Laws.

“Equipment Inventory” means Inventory of any Borrower consisting of vehicles held for sale
or lease to third parties and Inventory of any Borrower consisting of vehicles while on
lease to third parties.

“Equipment Inventory Appraisal” means each periodic appraisal of any Borrower’s Equipment
Inventory and Parts and Tools Inventory conducted at such Borrower’s cost and expense by
appraisers reasonably satisfactory to Agent and using a methodology reasonably satisfactory
to Agent, provided, that unless an Event of Default has occurred and is continuing, (x) if
no Audit and Appraisal Liquidity Event has occurred and is continuing, Borrowers shall be
responsible for the cost and expense of not more than two (2) such appraisals for each
Borrower per year and (y) if an Audit and Appraisal Liquidity Event has occurred and is
continuing, Borrowers shall be responsible for the cost and expense of not more than three
(3) such appraisals for each Borrower per year, it being agreed that so long as such limits
are in effect, each item of Equipment Inventory shall be appraised pursuant to a visit to
sites of any one or more Credit Parties on one occasion during each year and the balance of
such appraisals of such item in such year shall be done as a “desk appraisal.” An appraisal
of Equipment Inventory and of Parts and Tools Inventory shall, for the purposes of the
preceding sentence, constitute one appraisal.

“ERISA” means the Employee Retirement Income Security Act of 1974, and any regulations
promulgated thereunder.

“ERISA Affiliate” means, with respect to any Credit Party, any trade or business (whether or
not incorporated) that, together with such Credit Party, is treated as a single employer
within the meaning of Sections 414(b), (c), (m) or (o) of the IRC.

“ERISA Event” means, with respect to any Credit Party or any ERISA Affiliate, (a) any event
described in Section 4043(c) of ERISA with respect to a Title IV Plan (other than an event
with respect to which the reporting requirement has been waived); (b) the withdrawal of such
Credit Party or ERISA Affiliate from a Title IV Plan subject to Section 4063 of ERISA during
a plan

A-11

 

year in which it was a substantial employer, as defined in Section 4001(a)(2) of
ERISA; (c) the
complete or partial withdrawal of such Credit Party or any ERISA Affiliate from any
Multiemployer Plan; (d) the filing of a notice of intent to terminate a Title IV Plan or the
treatment of a plan amendment as a termination under Section 4041 of ERISA; (e) the
institution of proceedings to terminate a Title IV Plan or Multiemployer Plan by the PBGC;
(f) the failure by such Credit Party or ERISA Affiliate to make when due required
contributions to a Multiemployer Plan or Title IV Plan unless such failure is cured within
thirty (30) days; (g) any other event or condition that might reasonably be expected to
constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any Title IV Plan or Multiemployer Plan or for the imposition of
liability under Section 4069 or 4212(c) of ERISA; or (h) the termination of a Multiemployer
Plan under Section 4041A of ERISA or the reorganization or insolvency of a Multiemployer
Plan under Section 4241 or 4245 of ERISA or (i) the loss of a Qualified Plan’s qualification
or tax exempt status; or (j) the termination of a Title IV Plan described in Section 4064 of
ERISA.

“Event of Default” has the meaning assigned to it in Section 8.1.

“Excess Availability” means, at any time, an amount equal to the Aggregate Borrowing Base
(as reflected in the Borrowing Base Certificate delivered pursuant to Section 4.1(b) and
paragraph (a) of Annex F, at or most recently prior to such time) minus the
aggregate Revolving Loan and Swing Line Loan at such time.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute or statutes thereto.

“Excluded Taxes” means (a) Taxes imposed on or measured by the net income of Agent or a
Lender by the jurisdictions under the law of which Agent and Lenders are organized or
conduct business or any political subdivision thereof and (b) in the case of a Foreign
Lender (other than an assignee pursuant to a request by Borrower Representative under
Section 1.16(d)), any withholding tax (i) that is in effect and would apply to amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party to this
Agreement, except to the extent of any additional amounts to which such Foreign Lender’s
assignor, if any was entitled, at the time of assignment, to receive from any Borrower with
respect to any withholding tax pursuant to Section 1.15, or (ii) that would not have been
imposed but for such Foreign Lender’s failure (other than as a result of a change in law,
rule, regulation or treaty or in the administration, interpretation or application thereof
by any Governmental Authority, disregarding for this purpose any such change relating to the
implementation of FATCA) to comply with Section 1.15(c).

“E-Fax” means any system used to receive or transmit faxes electronically.

“E-Signature” means the process of attaching to or logically associating with an Electronic
Transmission an electronic symbol, encryption, digital signature or process (including the
name or an abbreviation of the name of the party transmitting the Electronic Transmission)
with the intent to sign, authenticate or accept such Electronic Transmission.

A-12

 

“E-System” means any electronic system approved by Agent, including Intralinks® and
ClearPar® and any other Internet or extranet-based site, whether such electronic system is
owned, operated or hosted by Agent, any of its Related Persons or any other Person,
providing for access to data protected by passcodes or other security system.

“Fair Labor Standards Act” means the Fair Labor Standards Act, 29 U.S.C. §201 et
seq.

“FATCA” means IRC Sections 1471 through 1474, and any Treasury Regulations promulgated
thereunder and published administrative guidance interpreting such Sections.

“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for
each day during such period to the weighted average of the rates on overnight federal funds
transactions with members of the Federal Reserve System arranged by federal funds brokers,
as determined by Agent in its sole discretion

“Federal Reserve Board” means the Board of Governors of the Federal Reserve System.

“Fees” means any and all fees payable to Agent or any Lender pursuant to the Agreement or
any of the other Loan Documents.

“Financial Covenants” means the financial covenants set forth in Annex G.

“Financial Statements” means the consolidated income statements, statements of cash flows
and balance sheets of H&E Delaware and its Subsidiaries referred to in Section 3.4 or
delivered in accordance with Annex E.

“FIRREA” means the Financial Institutions Reform, Recovery and Enforcement Act of 1989.

“First Restatement Date” means August 4, 2006.

“Fiscal Month” means any of the monthly accounting periods of H&E Delaware and its
Subsidiaries.

“Fiscal Quarter” means any of the quarterly accounting periods of H&E Delaware and its
Subsidiaries, ending on March 31, June 30, September 30, and December 31 of each year.

“Fiscal Year” means any of the annual accounting periods of H&E Delaware and its
Subsidiaries ending on December 31 of each year.

“Fixed Charges” means, for H&E Delaware and its Subsidiaries for any specified period
determined on a consolidated basis in accordance with GAAP, the sum of (a) interest expense
(whether cash or non-cash) deducted in the determination of consolidated net income for such
period, including interest expense with respect to any Funded Debt and interest expense that
has been capitalized, but excluding amortization of any original discount attributable to
any Funded Debt or warrants and interest paid in kind, in each case to the extent otherwise
included as interest

A-13

 

expense, and (b) scheduled payments of principal made or required to be made during such
period with respect to all Indebtedness.

“Fixed Charge Coverage Ratio” means, for any specified period, the ratio of (a) EBITDA of
H&E Delaware and its Subsidiaries for such period less any provision for income
taxes (whether paid or payable in cash) and P&E Capital Expenditures (other than the portion
thereof funded by third party financing) made by H&E Delaware and its Subsidiaries during
such period, in each case determined on a consolidated basis in accordance with GAAP, to (b)
Fixed Charges.

“Fixtures” means all “fixtures” as such term is defined in the Code, now owned or hereafter
acquired by any Credit Party.

“Floor Plan Equipment Inventory” means Equipment Inventory purchased by any Credit Party for
sale or lease in the ordinary course of business and subject to a purchase money Lien in
favor of the seller thereof or a third party financing source and includes Equipment
Inventory subject to an Open Account Refinancing and subject to a Refinancing Lien.

“Floor Plan Financing” means any floor plan financing or other indebtedness incurred by any
Credit Party with respect to the purchase of Equipment Inventory and provided by the seller
of such Equipment Inventory or any third party financing source.

“Foreign Lender” has the meaning assigned to it in Section 1.15(c).

“Funded Debt” means, with respect to any Person, without duplication, all Indebtedness for
borrowed money evidenced by notes, bonds, debentures, or similar evidences of Indebtedness
that by its terms matures more than one year from, or is directly or indirectly renewable or
extendible at such Person’s option under a revolving credit or similar agreement obligating
the lender or lenders to extend credit over a period of more than one year from the date of
creation thereof, and specifically including Capital Lease Obligations, current maturities
of long-term debt, revolving credit and short-term debt extendible beyond one year at the
option of the debtor, and including without limitation, in the case of Borrowers, the
Obligations (other than Letter of Credit Obligations in respect of undrawn Letters of
Credit) (calculated with reference to the average outstanding balance of such Obligations
during the six month period ending immediately prior to the relevant date of determination
(or such shorter period that begins on the Original Closing Date and ends immediately prior
to such relevant date of determination)), Indenture Debt and Subordinated Debt. For the
avoidance of doubt, Funded Debt shall be deemed not to include any Floor Plan Financing.

“GAAP” means generally accepted accounting principles in the United States of America
consistently applied as such term is further defined in Annex G to the Agreement.

“GE Capital” means General Electric Capital Corporation, a Delaware corporation.

“GE Capital Fee Letter” has the meaning assigned to it in Section 1.9(a).

A-14

 

“General Intangibles” means all “general intangibles,” as such term is defined in the Code,
now owned or hereafter acquired by any Credit Party, including all right, title and interest
that such Credit Party may now or hereafter have in or under any Contract, all payment
intangibles, customer lists, Licenses, Copyrights, Trademarks, Patents, and all applications
therefor and reissues, extensions or renewals thereof, rights in Intellectual Property,
interests in partnerships, joint ventures and other business associations, licenses,
permits, copyrights, trade secrets, proprietary or confidential information, inventions
(whether or not patented or patentable), technical information, procedures, designs,
knowledge, know-how, software, data bases, data, skill, expertise, experience, processes,
models, drawings, materials and records, goodwill (including the goodwill associated with
any Trademark or Trademark License), all rights and claims in or under insurance policies
(including insurance for fire, damage, loss and casualty, whether covering personal
property, real property, tangible rights or intangible rights, all liability, life, key man
and business interruption insurance, and all unearned premiums), uncertificated securities,
choses in action, deposit, checking and other bank accounts, rights to receive tax refunds
and other payments, rights to receive dividends, distributions, cash, Instruments and other
property in respect of or in exchange for pledged Stock and Investment Property, rights of
indemnification, all books and records, correspondence, credit files, invoices and other
papers, including without limitation all tapes, cards, computer runs and other papers and
documents in the possession or under the control of such Credit Party or any computer bureau
or service company from time to time acting for such Credit Party.

“GNE Investments” means GNE Investments, Inc., a Washington corporation.

“Goods” means all “goods” as defined in the Code, now owned or hereafter acquired by any
Credit Party, wherever located, including embedded software to the extent included in
“goods” as defined in the Code, manufactured homes, standing timber that is cut and removed
for sale and unborn young of animals.

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

“Great Northern” has the meaning assigned to it in the preamble to this Agreement.

“Great Northern Borrowing Base” means, as of any date of determination by Agent, from time
to time, an amount equal to the sum at such time of:

	(a)	 	up to eighty-five percent (85%) of Great Northern’s Eligible Accounts plus
eighty-five percent (85%) of Great Northern’s Eligible Rentals, in each case, less any
Reserves (without duplication) established by Agent in good faith using reasonable
credit judgment as of such time, plus
	 
	(b)	 	up to one hundred percent (100%) of the Net Book Value of Great Northern’s
new Eligible Equipment Inventory held for sale, less any Reserves (without

A-15

 

	 	 	 	duplication) established by Agent in good faith using reasonable credit judgment as
of such time; plus

	 	(c)	 	up to fifty percent (50%) of the Net Book Value of Great Northern’s used
Eligible Equipment Inventory held for sale, less any Reserves (without
duplication) established by Agent in good faith using reasonable credit judgment as of
such time; plus
	 
	 	(d)	 	up to fifty percent (50%) of the Net Book Value of Great Northern’s Eligible
Parts and Tools Inventory, less any Reserves (without duplication) established by
Agent in good faith using reasonable credit judgment as of such time; plus
	 
	 	(e)	 	up to fifty percent (50%) of the Net Book Value of Great Northern’s Eligible
Rolling Stock, less any Reserves (without duplication) established by Agent in good
faith using reasonable credit judgment as of such time; plus
	 
	 	(f)	 	the lesser of (i) one hundred percent (100%) of the Net Book Value of Great
Northern’s Eligible Equipment Inventory held for lease to third parties or being
leased to third parties and (ii) up to eighty-five percent (85%) of the Orderly
Liquidation Value of Great Northern’s Eligible Equipment Inventory held for lease to
third parties or being leased to third parties, in each case, less any Reserves
(without duplication) established by Agent in good faith using reasonable credit
judgment as of such time.

“Guaranteed Indebtedness” means, as to any Person, any obligation of such Person
guaranteeing, providing comfort or otherwise supporting any Indebtedness, lease, dividend,
or other obligation (“primary obligations”) of any other Person (the “primary obligor”) in
any manner, including any obligation or arrangement of such Person to (a) purchase or
repurchase any such primary obligation, (b) advance or supply funds (i) for the purchase or
payment of any such primary obligation or (ii) to maintain working capital or equity capital
of the primary obligor or otherwise to maintain the net worth or solvency or any balance
sheet condition of the primary obligor, (c) purchase property, securities or services
primarily for the purpose of assuring the owner of any such primary obligation of the
ability of the primary obligor to make payment of such primary obligation, (d) protect the
beneficiary of such arrangement from loss (other than product warranties given in the
ordinary course of business) or (e) indemnify the owner of such primary obligation against
loss in respect thereof. The amount of any Guaranteed Indebtedness at any time shall be
deemed to be an amount equal to the lesser at such time of (x) the stated or determinable
amount of the primary obligation in respect of which such Guaranteed Indebtedness is
incurred and (y) the maximum amount for which such Person may be liable pursuant to the
terms of the instrument embodying such Guaranteed Indebtedness, or, if not stated or
determinable, the maximum reasonably anticipated liability (assuming full performance) in
respect thereof.

“Guaranties” means, collectively, each Subsidiary Guaranty and any other guaranty executed
by any Guarantor in favor of Agent and Lenders in respect of the Obligations.

A-16

 

“Guarantors” means each Subsidiary of any Borrower and each other Person, if any, that
executes a guaranty or other similar agreement in favor of Agent, for itself and the ratable
benefit of Lenders, in connection with the transactions contemplated by the Agreement and
the other Loan Documents.

“Guaranty and Security Agreement” means the Guaranty and Security Agreement, dated as of the
Closing Date, among the Credit Parties and the Agent, substantially in the form attached
hereto as Exhibit D.

“H&E Borrowing Base” means, as of any date of determination by Agent, from time to time, an
amount equal to the sum at such time of:

	 	(a)	 	up to eighty-five percent (85%) of H&E Delaware’s Eligible Accounts
plus eighty-five percent (85%) of H&E Delaware’s Eligible Rentals, in each case,
less any Reserves (without duplication) established by Agent in good faith using
reasonable credit judgment as of such time, plus
	 
	 	(b)	 	up to one hundred percent (100%) of the Net Book Value of H&E
Delaware’s new Eligible Equipment Inventory held for sale, less any Reserves
(without duplication) established by Agent in good faith using reasonable credit
judgment as of such time; plus
	 
	 	(c)	 	up to fifty percent (50%) of the Net Book Value of H&E Delaware’s
used Eligible Equipment Inventory held for sale, less any Reserves (without
duplication) established by Agent in good faith using reasonable credit judgment
as of such time; plus
	 
	 	(d)	 	up to fifty percent (50%) of the Net Book Value of H&E Delaware’s
Eligible Parts and Tools Inventory, less any Reserves (without duplication)
established by Agent in good faith using reasonable credit judgment as of such
time; plus
	 
	 	(e)	 	up to fifty percent (50%) of the Net Book Value of H&E Delaware’s
Eligible Rolling Stock, less any Reserves (without duplication) established by
Agent in good faith using reasonable credit judgment as of such time; plus
	 
	 	(f)	 	the lesser of (i) one hundred percent (100%) of the Net Book Value of
H&E Delaware’s Eligible Equipment Inventory held for lease to third parties or
being leased to third parties and (ii) up to eighty-five percent (85%) of the
Orderly Liquidation Value of H&E Delaware’s Eligible Equipment Inventory held for
lease to third parties or being leased to third parties, in each case, less any
Reserves (without duplication) established by Agent in good faith using reasonable
credit judgment as of such time.

Eligible Accounts, Eligible Rentals, Eligible Equipment Inventory, Eligible Parts and Tools
Inventory, and Eligible Rolling Stock of H&E Mid-Atlantic shall, for the purposes of this
definition of “H&E Borrowing Base” be deemed to be Eligible Accounts, Eligible Rentals,

A-17

 

Eligible Equipment Inventory, Eligible Parts and Tools Inventory, and Eligible Rolling Stock
of H&E Delaware.

“H&E California Borrowing Base” means, as of any date of determination by Agent, from time
to time, an amount equal to the sum at such time of:

	 	(a)	 	up to eighty-five percent (85%) of H&E California’s Eligible
Accounts plus eighty-five percent (85%) of H&E California’s Eligible Rentals, in
each case, less any Reserves (without duplication) established by Agent in good
faith using reasonable credit judgment as of such time, plus
	 
	 	(b)	 	up to one hundred percent (100%) of the Net Book Value of H&E
California’s new Eligible Equipment Inventory held for sale, less any Reserves
(without duplication) established by Agent in good faith using reasonable credit
judgment as of such time; plus
	 
	 	(c)	 	up to fifty percent (50%) of the Net Book Value of H&E
California’s used Eligible Equipment Inventory held for sale, less any Reserves
(without duplication) established by Agent in good faith using reasonable credit
judgment as of such time; plus
	 
	 	(d)	 	up to fifty percent (50%) of the Net Book Value of H&E
California’s Eligible Parts and Tools Inventory, less any Reserves (without
duplication) established by Agent in good faith using reasonable credit judgment
as of such time; plus
	 
	 	(e)	 	up to fifty percent (50%) of the Net Book Value of H&E
California’s Eligible Rolling Stock, less any Reserves (without
duplication) established by Agent in good faith using reasonable credit judgment
as of such time; plus
	 
	 	(f)	 	the lesser of (i) one hundred percent (100%) of the H&E
California’s Net Book Value of Eligible Equipment Inventory held for lease to
third parties or being leased to third parties and (ii) up to eighty-five
percent (85%) of the Orderly Liquidation Value of H&E California’s Eligible
Equipment Inventory held for lease to third parties or being leased to third
parties, in each case, less any Reserves (without duplication) established by
Agent in good faith using reasonable credit judgment as of such time.

“H&E California Holding” means H&E California Holding, Inc., a California corporation
(formerly known as Eagle High Reach Equipment, Inc.).

“H&E California” has the meaning assigned to it in the preamble to this Agreement.

“H&E Finance” means H&E Finance Corp., a Delaware corporation.

A-18

 

“H&E Mid-Atlantic” means H&E Equipment Services (Mid-Atlantic), Inc., a Virginia corporation
(formerly known as J.W. Burress, Incorporated).

“Hazardous Materials” means any substance, material or waste that is regulated or otherwise
gives rise to liability under any Environmental Law, including but not limited to any
“Hazardous Waste” as defined by the Resource Conservation and Recovery Act (RCRA) (42 U.S.C.
§ 6901 et seq. (1976)), any “Hazardous Substance” as defined under the Comprehensive
Environmental Response, Compensation, and Liability Act (CERCLA) (42 U.S.C. §9601 et seq.
(1980)), any contaminant, pollutant, petroleum or any fraction thereof, asbestos, asbestos
containing material, polychlorinated biphenyls and radioactive substances.

“Hedging Agreement” means any interest rate protection agreement, foreign currency exchange
agreement, commodity price protection agreement, treasury management products or other
interest or currency exchange rate or commodity price hedging arrangement (i) arranged by GE
Capital and to which one or more Credit Parties are parties, or (ii) to which a Lender or an
Affiliate of a Lender is a party and to which one or more Credit Parties are parties.

“Impacted Lender” means any Lender that fails to provide Agent, within three (3) Business
Days following Agent’s written request, satisfactory assurance that such Lender will not
become a Non-Funding Lender, or any Lender that has a Person that directly or indirectly
controls such Lender and such Person (a) becomes subject to a voluntary or involuntary case
under the Bankruptcy Code or any similar bankruptcy laws, (b) has appointed a custodian,
conservator, receiver or similar official for such Person or any substantial part of such
Person’s assets, or (c) makes a general assignment for the benefit of creditors, is
liquidated, or is otherwise adjudicated as, or determined by any Governmental Authority
having regulatory authority over such Person or its assets to be, insolvent or bankrupt, and
for each of clauses (a) through (c), Agent has determined that such Lender is reasonably
likely to become a Non-Funding Lender. For purposes of this definition, control of a Person
shall have the same meaning as in the second sentence of the definition of Affiliate.

“Incremental Revolving Loan Commitments” has the meaning provided in Section 1.18.

“Indebtedness” of any Person means, without duplication, (a) all indebtedness of such Person
for borrowed money or for the deferred purchase price of property (including purchases on
Open Account) payment for which is deferred twelve (12) months or more, but excluding
obligations to trade creditors incurred in the ordinary course of business that are
unsecured and not overdue by more than twelve (12) months unless being contested in good
faith, (b) all reimbursement and other obligations with respect to letters of credit,
bankers’ acceptances and surety bonds, whether or not matured, (c) all obligations evidenced
by notes, bonds, debentures or similar instruments, (d) all indebtedness created or arising
under any conditional sale or other title retention agreement with respect to property
acquired by such Person (even though the rights and remedies of the seller or lender under
such agreement in the event of default are limited to repossession or sale of such
property), (e) all Capital Lease Obligations and the present value (discounted at the Index

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Rate as in effect on the Closing Date) of future rental payments under all synthetic leases,
(f) all obligations of such Person under commodity purchase or option agreements or other
commodity price hedging arrangements, in each case whether contingent or matured, (g) all
obligations of such Person under any foreign exchange contract, currency swap agreement,
interest rate swap, cap or collar agreement or other similar agreement or arrangement
designed to alter the risks of that Person arising from fluctuations in currency values or
interest rates, in each case whether contingent or matured, (h) all Indebtedness referred to
above secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien upon or in property or other assets
(including accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such Indebtedness, and (i) the Obligations.
For the avoidance of doubt and notwithstanding the foregoing, Indebtedness shall be deemed
not to include any Floor Plan Financing.

“Indemnified Liabilities” has the meaning assigned to it in Section 1.13.

“Indemnified Person” has the meaning assigned to it in Section 1.13.

“Indenture Debt” means Indebtedness under the Senior Unsecured Notes or Senior Unsecured
Note Indenture.

“Index Rate” means, for any day, a rate per annum equal to the highest of (a) the rate last
quoted by The Wall Street Journal as the “Prime Rate” in the United States or, if The Wall
Street Journal ceases to quote such rate, the highest per annum interest rate published by
the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected
Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein,
any similar rate quoted therein (as determined by Agent) or any similar release by the
Federal Reserve Board (as determined by Agent), (b) the sum of the Federal Funds Rate plus
fifty (50) basis points per annum and (c) the sum of (x) the LIBOR Rate calculated for each
such day based on a LIBOR Period of one (1) month determined two (2) Business Days prior to
such day, plus (y) the excess of the Applicable Revolver LIBOR Margin over the Applicable
Revolver Index Margin, in each instance, as of such day. Any change in the Index Rate due
to a change in any of the foregoing shall be effective on the effective date of such change
in the rates referred to in (a), (b) or (c).

“Index Rate Loan” means a Loan or portion thereof bearing interest by reference to the Index
Rate.

“Inspections” has the meaning assigned to it in Section 1.14.

“Instruments” means any “instrument,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, wherever located, and, in any event, including all
certificated securities, all certificates of deposit, and all promissory notes and other
evidences of indebtedness, other than instruments that constitute, or are a part of a group
of writings that constitute, Chattel Paper.

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“Intellectual Property” means any and all Licenses, Patents, Copyrights,
Trademarks, and the goodwill associated with such Trademarks.

“Interest Expense” means, with respect to any Person for any fiscal period, interest expense
paid in cash of such Person determined in accordance with GAAP for the relevant period ended
on such date, including expense with respect to any Funded Debt of such Person and interest
expense for the relevant period that has been capitalized on the balance sheet of such
Person.

“Interest Payment Date” means (a) as to any Index Rate Loan, the first Business Day of each
month to occur while such Loan is outstanding and (b) as to any LIBOR Loan, the last day of
the applicable LIBOR Period; provided, that in the case of any LIBOR Period greater than
three months in duration, interest shall be payable at three month intervals and on the last
day of such LIBOR Period; and provided, further, that, in addition to the foregoing, each of
(x) the date upon which all of the Commitments have been terminated and the Loans have been
paid in full and (y) the Commitment Termination Date shall be deemed to be an “Interest
Payment Date” with respect to any interest that has then accrued under the Agreement.

“Inventory” means all “inventory,” as such term is defined in the Code, now owned or
hereafter acquired by any Credit Party, wherever located, and in any event including
inventory, merchandise, goods and other personal property that are held by or on behalf of
any Credit Party for sale or lease or are furnished or are to be furnished under a contract
of service, or that constitute raw materials, work in process, finished goods, returned
goods, or materials or supplies of any kind, nature or description used or consumed or to be
used or consumed in such Credit Party’s business or in the processing, production,
packaging, promotion, delivery or shipping of the same, including all supplies and embedded
software.

“Investment Property” means all “investment property” as such term is defined in the Code
now owned or hereafter acquired by any Credit Party, wherever located, including (i) all
securities, whether certificated or uncertificated, including stocks, bonds, interests in
limited liability companies, partnership interests, treasuries, certificates of deposit, and
mutual fund shares; (ii) all securities entitlements of any Credit Party, including the
rights of any Credit Party to any securities account and the financial assets held by a
securities intermediary in such securities account and any free credit balance or other
money owing by any securities intermediary with respect to that account; (iii) all
securities accounts of any Credit Party; (iv) all commodity contracts of any Credit Party;
and (v) all commodity accounts of any Credit Party.

“IRC” means the Internal Revenue Code of 1986 and all regulations promulgated thereunder.

“IRS” means the Internal Revenue Service.

“L/C Issuer” means GE Capital or a Subsidiary thereof, Bank of America, N.A., or any other
bank or other legally authorized Person selected by or acceptable to Agent in its sole
discretion, in such Person’s capacity as an issuer of Letters of Credit hereunder.

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“L/C Sublimit” has the meaning assigned to such term in Annex B.

“Lenders” means GE Capital, the other initial Lenders named on the signature pages of the
Agreement, and, if any such Lender shall decide to assign all or any portion of the
Obligations, such term shall include any registered assignee of such Lender.

“Letter of Credit Fee” has the meaning assigned to it in Annex B.

“Letter of Credit Obligations” means all outstanding obligations incurred by Agent and
Lenders at the request of any Borrower, whether direct or indirect, contingent or otherwise,
due or not due, in connection with the issuance of Letters of Credit by Agent or any other
L/C Issuer or the purchase of a participation as set forth in Annex B with respect
to any Letter of Credit. The amount of such Letter of Credit Obligations shall equal the
maximum amount that may be payable at such time or at any time thereafter by Agent or
Lenders thereupon or pursuant thereto.

“Letters of Credit” means documentary or standby letters of credit issued for the account of
any Borrower by any L/C Issuer, and bankers’ acceptances issued by any Borrower, for which
Agent and Lenders have incurred Letter of Credit Obligations. The term does not include a
Swap Related L/C.

“Letter-of-Credit Rights” means “letter-of-credit rights” as such term is defined in the
Code, now owned or hereafter acquired by any Credit Party, including rights to payment or
performance under a letter of credit, whether or not such Credit Party, as beneficiary, has
demanded or is entitled to demand payment or performance.

“Leverage Ratio” means, with respect to H&E Delaware and its Subsidiaries, on a consolidated
basis, the ratio of (i) Funded Debt of H&E Delaware and its Subsidiaries as of any date of
determination, to (ii) EBITDA of H&E Delaware and its Subsidiaries for the twelve-month
period ending on that date of determination.

“LIBOR Loan” means a Loan or any portion thereof bearing interest by reference to the LIBOR
Rate.

“LIBOR Period” means, with respect to any LIBOR Loan, the period commencing on the date such
LIBOR Loan is made or converted to a LIBOR Loan or, if such loan is continued, on the last
day of the immediately preceding LIBOR Period therefor and, in each case, ending 1, 2, 3 or
6 months thereafter, as selected by Borrower Representative pursuant hereto;
provided, however, that (a) if any LIBOR Period would otherwise end on a day
that is not a Business Day, such LIBOR Period shall be extended to the next succeeding
Business Day, unless the result of such extension would be to extend such LIBOR Period into
another such Business Day falls in the next calendar month, in which case such LIBOR Period
shall end on the immediately preceding Business Day, (b) any LIBOR Period 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 LIBOR Period) shall end on the
last Business Day of a calendar month, (c) Borrower

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Representative may not select any LIBOR Period ending after the Commitment Termination Date,
(d) Borrower Representative may not select any LIBOR Period in respect of Loans having an
aggregate principal amount of less than $5,000,000 and (e) there shall be outstanding at any
one time no more than seven (7) separate LIBOR Periods.

“LIBOR Rate” means, for each LIBOR Period, the offered rate per annum for deposits of
Dollars for the applicable LIBOR Period that appears on Reuters Screen LIBOR 01 Page as of
11:00 A.M. (London, England time) two (2) Business Days prior to the first day in such LIBOR
Period. If no such offered rate exists, such rate will be the rate of interest per annum,
as determined by Agent at which deposits of Dollars in immediately available funds are
offered at 11:00 A.M. (London, England time) two (2) Business Days prior to the first day in
such LIBOR Period by major financial institutions reasonably satisfactory to Agent in the
London interbank market for such LIBOR Period for the applicable principal amount on such
date of determination.

“License” means any Copyright License, Patent License, Trademark License or other license of
rights or interests now held or hereafter acquired by any Credit Party.

“Lien” means any mortgage or deed of trust, pledge, hypothecation, assignment, deposit
arrangement, lien, charge, claim, security interest, easement or encumbrance, or preference,
priority or other security agreement or preferential arrangement of any kind or nature
whatsoever (including any lease or title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, and the filing of, or
agreement to give, any financing statement perfecting a security interest under the Code or
comparable law of any jurisdiction).

“Litigation” has the meaning assigned to it in Section 3.13.

“Loan Documents” means the Agreement, the Notes, the GE Capital Fee Letter and the
Collateral Documents and all other agreements, instruments, documents and certificates
identified in the Closing Checklist executed and delivered to, or in favor of, Agent or any
Lenders and including all other pledges, powers of attorney, consents, assignments,
contracts, notices, and all other written matter whether heretofore, now or hereafter
executed by or on behalf of any Credit Party, and delivered to Agent or any Lender in
connection with the Agreement or the transactions contemplated thereby. Any reference in
the Agreement or any other Loan Document to a Loan Document shall include all appendices,
exhibits or schedules thereto, and all amendments, restatements, supplements or other
modifications thereto, and shall refer to the Agreement or such Loan Document as the same
may be in effect at any and all times such reference becomes operative.

“Loans” means the Revolving Loan and the Swing Line Loan.

“Lock Boxes” has the meaning assigned to it in Annex C.

“Margin Stock” has the meaning assigned to in Section 3.10.

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“Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, prospects or financial or other condition of Credit Parties considered as a
whole, (b) the ability of the Borrowers considered as a whole to pay any of the Loans or any
of the other Obligations in accordance with the terms of the Agreement, (c) the Collateral
or Agent’s Liens, on behalf of itself and Lenders, on the Collateral or the priority of such
Liens, or (d) Agent’s or any Lender’s rights and remedies under the Agreement and the other
Loan Documents.

“Maximum Amount” means, as of any date of determination, an amount equal to the Revolving
Loan Commitment of all Lenders as of that date.

“Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA
to which any Credit Party or an ERISA Affiliate is making or is obligated to make
contributions on behalf of participants who are or were employed by any of them.

“Net Book Value” means book value as determined in accordance with GAAP, lower of cost and
market, and after taking into account depreciation and excluding all “freight-in” costs and
preparatory costs.

“Net Proceeds” has the meaning assigned to it in Section 1.3(b)(ii).

“Non-Excluded Taxes” means Taxes other than Excluded Taxes.

“Non-Funding Lender” means any Lender that has (a) failed to fund any payments required to
be made by it under the Loan Documents within two (2) Business Days after any such payment
is due (excluding expense and similar reimbursements that are subject to good faith
disputes), (b) given written notice (and Agent has not received a revocation in writing), to
Borrower Representative, Agent, any Lender, or the L/C Issuer or has otherwise publicly
announced (and Agent has not received notice of a public retraction) that such Lender
believes it will fail to fund payments or purchases of participations required to be funded
by it under the Loan Documents or one or more other syndicated credit facilities, (c) failed
to fund, and not cured, loans, participations, advances, or reimbursement obligations under
one or more other syndicated credit facilities, unless subject to a good faith dispute, or
(d) any Lender that has (i) become subject to a voluntary or involuntary case under the
Bankruptcy Code or any similar bankruptcy laws, (ii) a custodian, conservator, receiver or
similar official appointed for it or any substantial part of such Person’s assets, or (iii)
made a general assignment for the benefit of creditors, been liquidated, or otherwise been
adjudicated as, or determined by any Governmental Authority having regulatory authority over
such Person or its assets to be, insolvent or bankrupt, and for clause (d), and Agent has
determined that such Lender is reasonably likely to fail to fund any payments required to be
made by it under the Loan Documents. For purposes of this definition, control of a Person
shall have the same meaning as in the second sentence of the definition of Affiliate.

“Notes” means, collectively, the Revolving Notes and the Swing Line Notes.

“Notice of Conversion/Continuation” has the meaning assigned to it in Section 1.5(e).

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“Notice of Revolving Credit Advance” has the meaning assigned to it in Section 1.1(a).

“Obligations” means all loans, advances, debts, liabilities and obligations, for the
performance of covenants, tasks or duties or for payment of monetary amounts (whether or not
such performance is then required or contingent, or such amounts are liquidated or
determinable) owing by any Credit Party to Agent or any Lender, and all covenants and duties
regarding such amounts, of any kind or nature, present or future, whether or not evidenced
by any note, agreement, letter of credit agreement or other instrument, arising under the
Agreement or any of the other Loan Documents. This term includes all principal, interest
(including all interest that accrues after the commencement of any case or proceeding by or
against any Credit Party in bankruptcy, whether or not allowed in such case or proceeding),
Fees, Swap Related Reimbursement Obligations, hedging obligations under swaps, caps and
collar arrangements provided by any Lender in accordance with the terms of the Agreement,
expenses, attorneys’ fees and any other sum chargeable to any Credit Party under the
Agreement or any of the other Loan Documents.

“Off Balance Sheet Equipment Inventory” means Equipment Inventory that has been leased by
any Credit Party as lessee under an operating lease, and held for sublease by such Credit
Party to third parties in the ordinary course of business.

“Open Account” means, in connection with the terms of purchase by a Credit Party of
Equipment Inventory from a dealer, that such purchase is made on credit terms, on an
unsecured basis, with payment by such Credit Party expected to be made within twelve (12)
months of the date of purchase. The deferral of the purchase price of Equipment Inventory
purchased on Open Account does not constitute Indebtedness unless and until such deferral
extends twelve (12) months or more following the date of purchase of such Equipment
Inventory.

“Open Account Refinancing” means the incurrence by a Credit Party of Indebtedness, which,
subject to Section 6.7(d), may be on a secured basis, the proceeds of which are applied to
pay in full the deferral of the purchase price and related charges of Equipment Inventory
purchased on Open Account.

“Operating Lease Payoff Value” means, with respect to any operating lease of Equipment
Inventory to which any Borrower or Guarantor is a lessee, at any time, the sum of the then
remaining lease payments under such operating lease, discounted to present value at the
notional interest rate for such operating lease.

“Orderly Liquidation Value” shall mean with respect to Eligible Equipment Inventory, the
appraised orderly liquidation value (as a percentage of the Net Book Value thereof), which
as of any date shall be determined by the Equipment Inventory Appraisal most recently
completed prior to such date, and which shall remain in effect until the date on which the
next Equipment Inventory Appraisal is completed.

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“Original Advance Rate” means, with respect to any percentage advance rate contained in the
Great Northern Borrowing Base, the H&E Borrowing Base or the H&E California Borrowing Base,
such advance rate as in effect on the Closing Date.

“Original Closing Date” means June 17, 2002.

“Original Lenders” has the meaning assigned to it in the recitals to this Agreement.

“Original Letters of Credit” means letters of credit issued by one or more L/C Issuers
pursuant to the Original Credit Agreement (and listed on Schedule I hereto) that
remain outstanding on the Closing Date.

“Original Letter of Credit Obligations” means Letter of Credit Obligations under (and as
defined in) the Original Credit Agreement that remain outstanding immediately prior to the
Closing Date.

“Original Revolving Credit Advances” means the aggregate principal amount of Revolving
Credit Advances under (and as defined in) the Original Credit Agreement that remain unpaid
immediately prior to the Closing Date.

“Original Revolving Note” means a “Revolving Note” issued (and as defined in) the Original
Credit Agreement.

“Original Swing Line Advances” means the aggregate principal balance of Swing Line Advances
under (and as defined in) the Original Credit Agreement that remain unpaid immediately prior
to the Closing Date.

“Other Taxes” means any and all present or future recording, stamp, documentary, excise,
transfer, sales, property or similar taxes, charges or levies arising from any payment made
under any Loan Document or from the execution, delivery or enforcement of, or otherwise with
respect to, any Loan Document.

“Overadvance” has the meaning provided in Section 1.1(a)(iv).

“P&E” means all “equipment,” as such term is defined in the Code, now owned or hereafter
acquired by any Credit Party, wherever located and, in any event, including all such Credit
Party’s machinery and equipment, including processing equipment, conveyors, machine tools,
data processing and computer equipment, including embedded software and peripheral equipment
and all engineering, processing and manufacturing equipment, office machinery, furniture,
materials handling equipment, tools, attachments, accessories, automotive equipment,
trailers, trucks, forklifts, molds, dies, stamps, motor vehicles, rolling stock and other
equipment of every kind and nature, trade fixtures and fixtures not forming a part of real
property, together with all additions and accessions thereto, replacements therefor, all
parts therefor, all substitutes for any of the foregoing, fuel therefor, and all manuals,
drawings, instructions, warranties and rights with

A-26

 

respect thereto and all products and proceeds thereof and condemnation awards and insurance
proceeds with respect thereto. P&E excludes Equipment Inventory, Parts and Tools Inventory,
and Fixtures.

“P&E Appraisal” means each periodic appraisal of each Borrower’s rolling stock conducted at
such Borrower’s cost and expense by appraisers reasonably satisfactory to Agent and using a
methodology reasonably satisfactory to Agent, provided, that unless an Event of Default has
occurred and is continuing, (x) if no Audit and Appraisal Liquidity Event has occurred and
is continuing, Borrowers shall be responsible for the cost and expense of not more than two
(2) such appraisals for each Borrower per year and (y) if an Audit and Appraisal Liquidity
Event has occurred and is continuing, Borrowers shall be responsible for the cost and
expense of not more than three (3) such appraisals for each Borrower per year, it being
agreed that so long as such limits are in effect, each item of Equipment Inventory shall be
appraised pursuant to a visit to sites of any one or more Credit Parties on one occasion
during each year and the balance of such appraisals of such item in such year shall be done
as a “desk appraisal.”

“P&E Capital Expenditures” means, with respect to any Person, all expenditures (by the
expenditure of cash or the incurrence of Indebtedness) by such Person during any measuring
period for any P&E or improvements or for replacements, substitutions or additions thereto,
that have a useful life of more than one year and that are required to be capitalized under
GAAP (excluding any such expenditures related to Permitted Acquisitions).

“Parts and Tools Inventory” means Inventory of any Borrower consisting of parts, tools and
supplies.

“Patent License” means rights under any written agreement now owned or hereafter acquired by
any Credit Party granting any right with respect to any invention on which a Patent is in
existence.

“Patent Security Agreements” means the Patent Security Agreements made in favor of Agent, on
behalf of itself and Lenders, by each applicable Credit Party.

“Patents” means all of the following in which any Credit Party now holds or hereafter
acquires any interest: (a) all letters patent of the United States or of any other country,
all registrations and recordings thereof, and all applications for letters patent of the
United States or of any other country, including registrations, recordings and applications
in the United States Patent and Trademark Office or in any similar office or agency of the
United States, any State or any other country, and (b) all reissues, continuations,
continuations-in-part or extensions thereof.

“PBGC” means the Pension Benefit Guaranty Corporation.

“Pension Plan” means a Plan described in Section 3(2) of ERISA.

“Permitted Acquisition” has the meaning assigned to it in Section 6.1.

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“Permitted Encumbrance” has the meaning assigned to it in Section 6.7.

“Permitted Liens” means the following encumbrances: (a) Liens for taxes or assessments or
other governmental Charges not yet due and payable, or which are being contested in
accordance with Section 5.2(b); (b) pledges or deposits of money securing statutory
obligations under workmen’s compensation, unemployment insurance, social security or public
liability laws or similar legislation (excluding Liens under ERISA); (c) pledges or deposits
of money securing bids, tenders, contracts (other than contracts for the payment of money)
or leases to which any Borrower is a party as lessee made in the ordinary course of
business; (d) deposits of money securing statutory obligations of any Borrower; (e) inchoate
and unperfected workers’, mechanics’ or similar liens arising in the ordinary course of
business, so long as such Liens attach only to P&E, Fixtures and/or Real Estate; (f)
carriers’, warehousemen’s, suppliers’ or other similar possessory liens arising in the
ordinary course of business and securing liabilities, so long as such Liens attach only to
Equipment Inventory; (g) deposits securing, or in lieu of, surety, appeal or customs bonds
in proceedings to which any Borrower is a party; (h) any attachment or judgment lien not
constituting an Event of Default under Section 8.1(j); (i) zoning restrictions, easements,
licenses, or other restrictions on the use of any Real Estate or other minor irregularities
in title (including leasehold title) thereto, so long as the same do not materially impair
the use, value, or marketability of such Real Estate; (j) the Pacific Western Trust and the
BP Deed of Trust (as such terms are defined in the Disclosure Schedules to the Eagle
Acquisition Agreement), provided, that such Liens encumber only H&E California’s leasehold
interest in its lease with Tillotson Corporation with respect to the Eagle Plaza Property
(as such term is defined in the Disclosure Schedules to the Eagle Acquisition Agreement) and
no other property of any Credit Party and, provided further, that such Liens do not secure
Indebtedness of any Credit Party; (k) Liens of landlords or mortgages arising by operation
of law or pursuant to the terms of real property leases, provided, that the mortgage or
rental payments secured thereby are not yet overdue, and the applicable mortgage or lease is
not otherwise in default in a manner which could permit the applicable mortgagee or lessee
to take enforcement action with respect to such Liens; and (l) Liens consisting of rights of
set-off of a customary nature or banker’s liens on amounts on deposit incurred in the
ordinary course of business.

“Person” means any individual, sole proprietorship, partnership, joint venture, trust,
unincorporated organization, association, corporation, limited liability company,
institution, public benefit corporation, other entity or government (whether federal, state,
county, city, municipal, local, foreign, or otherwise, including any instrumentality,
division, agency, body or department thereof).

“Plan” means, at any time, an “employee benefit plan”, as defined in Section 3(3) of ERISA,
that any Credit Party maintains, contributes to or has an obligation to contribute to or has
any liability under.

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“Principals” means (i) Bruckmann, Rosser, Sherrill & Co., L.P. and Bruckmann, Rosser,
Sherrill & Co. II, L.P., each a Delaware limited partnership, (ii) Bruckmann, Rosser,
Sherrill & Co., Inc., a Delaware corporation and (iii) Mr. John M. Engquist.

“Proceeds” means “proceeds,” as such term is defined in the Code, including (a) any and all
proceeds of any insurance, indemnity, warranty or guaranty payable to any Credit Party from
time to time with respect to any of the Collateral, (b) any and all payments (in any form
whatsoever) made or due and payable to any Credit Party from time to time in connection with
any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any Governmental Authority (or any Person acting under color of governmental
authority), (c) any claim of any Credit Party against third parties (i) for past, present or
future infringement of any Patent or Patent License, or (ii) for past, present or future
infringement or dilution of any Copyright, Copyright License, Trademark or Trademark
License, or for injury to the goodwill associated with any Trademark or Trademark License,
(d) any recoveries by any Credit Party against third parties with respect to any litigation
or dispute concerning any of the Collateral, including claims arising out of the loss or
nonconformity of, interference with the use of, defects in, or infringement of rights in, or
damage to, Collateral, (e) all amounts collected on, or distributed on account of, other
Collateral, including dividends, interest, distributions and Instruments with respect to
Investment Property and pledged Stock, and (f) any and all other amounts, rights to payment
or other property acquired upon the sale, lease, license, exchange or other disposition of
Collateral and all rights arising out of Collateral.

“Prohibited Swing Line Advance” means a Swing Line Advance (i) that was made without
satisfaction of the condition contained in Section 2.2(e) by virtue of such Swing Line
Advance exceeding Swing Line Availability due to the limitation imposed by Section
1.1(b)(i)(A) or 1.1(b)(i)(B)(x) (but not 1.1(b)(i)(B)(y)), or (ii) (x) that was made without
satisfaction of the condition contained in Section 2.2(e) by virtue of such Swing Line
Advance exceeding Swing Line Availability due to the limitation imposed by Section
1.1(b)(i)(B)(y) based on the Borrowing Base as reflected in the most recent Borrowing Base
Certificate delivered to the Agent prior to the making of such Swing Line Advance and (y)
that (A) exceeds $4,000,000, or (B) when added to any Swing Line Advances (described in
clause (ii)(x) of this definition) made (1) during the period of ten (10) Business Days
ending on (and including) the date of making of such Swing Line Advance, exceeds $4,000,000
or (2) during the period from and after the Closing Date, exceeds $15,000,000.

“Projections” means H&E Delaware and its Subsidiaries’ forecasted consolidated and
consolidating (a) balance sheets; (b) profit and loss statements; (c) cash flow statements;
and (d) capitalization statements, all prepared on a Subsidiary by Subsidiary or
division-by-division basis, if applicable, and otherwise consistent with the historical
Financial Statements of H&E and its Subsidiaries, together with appropriate supporting
details and a statement of underlying assumptions.

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“Pro Rata Share” means with respect to all matters relating to any Lender and with respect
to the Revolving Loan, the percentage obtained by dividing (i) the Revolving Loan Commitment
of that Lender by (ii) the aggregate Revolving Loan Commitments of all Lenders.

“Qualified Assignee” means (a) any Lender, any Affiliate of any Lender and, with respect to
any Lender that is an investment fund that invests in commercial loans, any other investment
fund that invests in commercial loans and that is managed or advised by the same investment
advisor as such Lender or by an Affiliate of such investment advisor, and (b) any commercial
bank, savings and loan association or savings bank or any other entity which is an
“accredited investor” (as defined in Regulation D under the Securities Act of 1933) which
extends credit or buys loans as one of its businesses, including insurance companies, mutual
funds, lease financing companies and commercial finance companies, in each case, which has a
rating of BBB or higher from S&P and a rating of Baa2 or higher from Moody’s at the date
that it becomes a Lender and which, through its applicable lending office, is capable of
lending to Borrowers without the imposition of any withholding or similar taxes; provided,
that no Person or Affiliate of such Person (other than a Person that is already a Lender)
holding Subordinated Debt or Stock issued by any Credit Party shall be a Qualified Assignee.

“Qualified Plan” means a Pension Plan that is intended to be tax-qualified under Section
401(a) of the IRC.

“Real Estate” has the meaning assigned to it in Section 3.6.

“Refinancing Lien” means a Lien granted by a Credit Party on an item of Equipment Inventory
to secure Indebtedness incurred in connection with an Open Account Refinancing of the
deferred purchase price of such item of Equipment Inventory so long as such Lien attaches
only to such item of Equipment Inventory and such Lien attaches within six (6) months
following the date of purchase by such Credit Party of such item of Equipment Inventory.

“Refunded Swing Line Loan” has the meaning assigned to it in Section 1.1(b)(iii).

“Register” has the meaning assigned to it in Section 1.12.

“Related Party” means: (i) any controlling stockholder, partner or member; any stockholder,
partner or member of any Principal identified in clauses (i) or (ii) of the definition of
“Principals”; a majority owned Subsidiary, or immediate family member (in the case of an
individual) of any Principal or any Related Party; or (ii) any trust, corporation,
partnership, limited liability company or other entity, the beneficiaries, stockholders,
partners, members, owners or Persons beneficially holding a majority interest of which
consist of any one or more Principals and/or such other Persons referred to in the
immediately preceding clause (i).

“Related Person” means, as to any Person, such Person’s Affiliates, officers, employees,
agents, directors or other Persons acting for or in concert with such Person.

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“Releases” means any release, threatened release, spill, emission, leaking, pumping,
pouring, emitting, emptying, escape, injection, deposit, disposal, discharge, dispersal,
dumping, leaching or migration of Hazardous Material into or through the environment.

“Remedial Action” means all actions required to (a) clean up, remove, treat or in any other
way address any Hazardous Material in the indoor or outdoor environment, (b) prevent or
minimize any Release so that a Hazardous Material does not migrate or endanger or threaten
to endanger public health or welfare or the indoor or outdoor environment or (c) perform pre
remedial studies and investigations and post-remedial monitoring and care with respect to
any Hazardous Material.

“Rentals” means rental payments due to any Borrower from the rental of (i) Equipment
Inventory owned by such Borrower or (ii) inventory leased by such Borrower.

“Requisite Lenders” means, (i) at any time when there are more than two Lenders, the Lenders
(which must be more than two Lenders) (a) having more than 50% of the Commitments of all
Lenders, or (b) if the Commitments have been terminated, having more than 50% of the
aggregate outstanding amount of the Loans (without giving effect to the Swing Line Loan) and
Letter of Credit Obligations; or (ii) at any time when there are only two Lenders, both
Lenders.

“Reserves” means, with respect to the Borrowing Base of any Borrower (a) reserves
established by Agent from time to time against Eligible Parts and Tools Inventory or
Eligible Equipment Inventory pursuant to Section 5.9, and (b) such other reserves against
Eligible Accounts, Eligible Rentals, Eligible Parts and Tools Inventory, Eligible Rolling
Stock, Eligible Equipment Inventory or Borrowing Availability of such Borrower that Agent
may, in good faith and in its reasonable credit judgment, establish from time to time.
Without limiting the generality of the foregoing, Reserves established to ensure the payment
of accrued Interest Expenses shall be deemed to be a reasonable exercise of Agent’s credit
judgment.

“Restricted Payment” means, with respect to any Credit Party, (a) the declaration or payment
of any dividend or the incurrence of any liability to make any other payment or distribution
of cash or other property or assets in respect of such Credit Party’s Stock; (b) any payment
on account of the purchase, redemption, defeasance, sinking fund or other retirement of such
Credit Party’s Stock or any other payment or distribution made in respect thereof, either
directly or indirectly; (c) any payment or prepayment of principal of, premium, if any, or
interest, fees or other charges on or with respect to, and any redemption, purchase,
retirement, defeasance, sinking fund or similar payment and any claim for rescission with
respect to, any Subordinated Debt; (d) any payment made to redeem, purchase, repurchase or
retire, or to obtain the surrender of, any outstanding warrants, options or other rights to
acquire Stock of such Credit Party now or hereafter outstanding; (e) any payment of a claim
for the rescission of the purchase or sale of, or for material damages arising from the
purchase or sale of, any shares of such Credit Party’s Stock or of a claim for
reimbursement, indemnification or contribution arising out of or related to any such claim
for damages or rescission; (f) any payment, loan, contribution, or other transfer of funds
or other property to any Stockholder of such Credit Party other than payment of

A-31

 

compensation and directors’ fees in the ordinary course of business to Stockholders who are
employees of such Person; (g) any payment of management fees (or other fees of a similar
nature) by such Credit Party to any Stockholder of such Credit Party or its Affiliates and
(h) any optional payment or prepayment of principal of the Senior Unsecured Notes, any
prepayment of premium, if any, or interest, fees, or other charges on or with respect to the
Senior Unsecured Notes, and any redemption, purchase, retirement, defeasance, subleasing
fund or similar optional payment with respect to the Senior Unsecured Notes.

“Retiree Welfare Plan” means, at any time, a Welfare Plan that provides for continuing
coverage or benefits for any participant or any beneficiary of a participant after such
participant’s termination of employment, other than continuation coverage provided pursuant
to Section 4980B of the IRC and at the sole expense of the participant or the beneficiary of
the participant.

“Revolving Credit Advance” has the meaning assigned to it in Section 1.1(a)(i).

“Revolving Lenders” means, as of any date of determination, Lenders having a Revolving Loan
Commitment.

“Revolving Loan” means, at any time, the sum of (i) the aggregate amount of Revolving Credit
Advances outstanding, as the context may require, to any Borrower or to all Borrowers
plus (ii) the aggregate Letter of Credit Obligations incurred on behalf of any
Borrower or all Borrowers. Unless the context otherwise requires, references to the
outstanding principal balance of the Revolving Loan shall include the outstanding balance of
Letter of Credit Obligations. A Letter of Credit issued for the account of a Borrower shall
be included in calculating the Letter of Credit Obligations of, and consequently the
outstanding principal balance of the Revolving Loan made to, such Borrower.

“Revolving Loan Commitment” means (a) as to any Revolving Lender, the aggregate commitment
of such Revolving Lender to make Revolving Credit Advances or incur Letter of Credit
Obligations as set forth on Annex J or in the most recent Assignment Agreement
executed by such Revolving Lender and (b) as to all Revolving Lenders, the aggregate
commitment of all Revolving Lenders to make Revolving Credit Advances or incur Letter of
Credit Obligations, which aggregate commitment shall be Three Hundred Twenty Million Dollars
($320,000,000), as such amount may be adjusted, if at all, from time to time in accordance
with the Agreement.

“Revolving Note” has the meaning assigned to it in Section 1.1(a)(ii).

“Sale” has the meaning assigned to it in Section 9.1(b).

“SEC” means the Securities and Exchange Commission.

“Second Restatement Date” means September 1, 2007.

A-32

 

“Senior Debt” of any Person, means all Indebtedness and Capital Lease Obligations of such
Person, other than Subordinated Debt of such Person.

“Senior Unsecured Note Indenture” means the Indenture, dated August 4, 2006, between the H&E
Delaware and The Bank of New York as trustee, as such Indenture may be amended, modified or
supplemented from time to time in accordance with its terms and the terms hereof.

“Senior Unsecured Notes” means up to $250,000,000 8 3/8% senior notes due 2016 issued by H&E
Delaware pursuant to the Senior Unsecured Note Indenture, together with any amendments,
modifications, supplements, replacements or substitutions thereof made or issued in
accordance with the terms of the Senior Unsecured Note Indenture and this Agreement.

“Settlement Date” has the meaning assigned to it in Section 9.10(a)(ii).

“Software” means all “software” as such term is defined in the Code, now owned or hereafter
acquired by any Credit Party, other than software embedded in any category of Goods,
including all computer programs and all supporting information provided in connection with a
transaction related to any program.

“Solvent” means, with respect to any Person on a particular date, 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 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 as such debts and liabilities mature; and (d) such Person is
not engaged in a business or transaction, and is not about to engage in a business or
transaction, for which such Person’s property would constitute an unreasonably small
capital. The amount of contingent liabilities (such as litigation, guaranties and Pension
Plan liabilities) at any time shall be computed as the amount that, in light of all the
facts and circumstances existing at the time, represents the amount that can be reasonably
be expected to become an actual or matured liability.

“SPV” means any special purpose funding vehicle identified as such in a writing by any
Lender to Agent.

“Stock” means all shares, options, warrants, general or limited partnership interests,
membership interests or other equivalents (regardless of how designated) of or in a
corporation, partnership, limited liability company or equivalent entity whether voting or
nonvoting, including common stock, preferred stock or any other “equity security” (as such
term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the
Securities and Exchange Commission under the Securities Exchange Act of 1934).

“Stockholder” means, with respect to any Person, each holder of Stock of such Person.

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“Subordinated Debt” means Indebtedness of any Borrower upon terms, and subordinated to the
Obligations as to right and time of payment and as to any other rights and remedies
thereunder, in a manner and form satisfactory to Agent and Lenders in their sole discretion.
For the avoidance of doubt, “Subordinated Debt” shall not include the Senior Unsecured
Notes.

“Subsidiary” means, with respect to any Person, (a) any corporation of which an aggregate of
more than 50% of the outstanding Stock having ordinary voting power to elect a majority of
the board of directors of such corporation (irrespective of whether, at the time, Stock of
any other class or classes of such corporation shall have or might have voting power by
reason of the happening of any contingency) is at the time, directly or indirectly, owned
legally or beneficially by such Person or one or more Subsidiaries of such Person, or with
respect to which any such Person has the right to vote or designate the vote of 50% or more
of such Stock whether by proxy, agreement, operation of law or otherwise, and (b) any
partnership or limited liability company in which such Person and/or one or more
Subsidiaries of such Person shall have an interest (whether in the form of voting or
participation in profits or capital contribution) of more than fifty percent (50%) or of
which any such Person is a general partner or may exercise the powers of a general partner.
Unless the context otherwise requires, each reference to a Subsidiary shall be a reference
to a Subsidiary of H&E Delaware.

“Subsidiary Guaranties” means each Subsidiary Guaranty executed by each Subsidiary (other
than any Borrower) on or after the Original Closing Date, of the Borrowers in favor of
Agent, on behalf of itself and Lenders.

“Supporting Obligations” means all “supporting obligations” as such term is defined in the
Code, including letters of credit and guaranties issued in support of Accounts, Chattel
Paper, Documents, General Intangibles, Instruments or Investment Property.

“Swap Related L/C” means a letter of credit or other credit enhancement provided by GE
Capital to the extent supporting the payment obligations by any Borrower under an interest
rate protection or hedging agreement or transaction (including, but not limited to, interest
rate swaps, caps, collars, floors and similar transactions) designed to protect or manage
exposure to the fluctuations in the interest rates applicable to any of the Loans, and which
agreement or transaction such Borrower entered into as the result of a specific referral
pursuant to which GE Capital, GE Corporate Financial Services, Inc. or any other Affiliate
of GE Capital had arranged for such Borrower to enter into such agreement or transaction.
The term includes a Swap Related L/C as it may be increased from time to time fully to
support Borrower’s payment obligations under any and all such interest rate protection or
hedging agreements or transactions.

“Swap Related Reimbursement Obligation” has the meaning ascribed to it in Section
1.2A.

“Swing Line Advance” has the meaning assigned to it in Section 1.1(b)(i).

“Swing Line Availability” has the meaning assigned to it in Section 1.1(b)(i).

A-34

 

“Swing Line Commitment” means, as to the Swing Line Lender, the commitment of the Swing Line
Lender to make Swing Line Loans as set forth on Annex J which commitment constitutes
a subfacility of the Revolving Loan Commitment of the Swing Line Lender.

“Swing Line Lender” means GE Capital.

“Swing Line Loan” means at any time, as the context may require, the aggregate amount of
Swing Line Advances outstanding to Borrowers.

“Swing Line Note” has the meaning assigned to it in Section 1.1(b)(ii).

“Tangible Assets” means, with respect to any Person, all tangible assets of such Person as
of any date of determination calculated in accordance with GAAP.

“Target” has the meaning assigned to it in Section 6.1.

“Taxes” means taxes, levies, imposts, deductions, Charges or withholdings, and all
liabilities with respect thereto.

“Termination Date” means the date on which (a) the Loans have been indefeasibly repaid in
full in cash, (b) all other Obligations (other than contingent obligations for which no
claim has been asserted), under the Agreement and the other Loan Documents have been
completely discharged, (c) all Letter of Credit Obligations have been cash collateralized,
canceled or backed by standby letters of credit in accordance with Annex B, and (d)
none of the Borrowers shall have any further right to borrow any monies under the Agreement.

“Title IV Plan” means an “employee pension benefit plan” as defined in Section 3(2) of ERISA
(other than a Multiemployer Plan), that is covered by Title IV of ERISA, and that any Credit
Party or ERISA Affiliate maintains, contributes to or has an obligation to contribute to or
has any liability with respect to on behalf of participants who are or were employed by any
of them.

“Titled Vehicles” means vehicles for which a certificate of title has been issued any
jurisdiction pursuant to a statute described in section 9-311(a)(2) or 9-311(a)(3) of the
Code.

“Trademark Security Agreements” means the Trademark Security Agreements made in favor of
Agent, on behalf of Lenders, by each applicable Credit Party.

“Trademark License” means rights under any written agreement now owned or hereafter acquired
by any Credit Party granting any right to use any Trademark.

“Trademarks” means all of the following now owned or hereafter existing, adopted or acquired
by any Credit Party: (a) all trademarks, trade names, limited liability company names,
corporate names, business names, trade styles, service marks, logos, other source or
business identifiers, prints and labels on which any of the foregoing have appeared or
appear, designs and general intangibles of like nature (whether registered or unregistered),
all registrations and recordings

A-35

 

thereof, and all applications in connection therewith, including registrations, recordings
and applications in the United States Patent and Trademark Office or in any similar office
or agency of the United States, any state or territory thereof, or any other country or any
political subdivision thereof; (b) all reissues, extensions or renewals thereof; and (c) all
goodwill associated with or symbolized by any of the foregoing.

“Unasserted Contingent Obligations” means, at any time, Obligations for taxes, costs,
indemnifications, reimbursements, damages and other liabilities (except for (i) the
principal of and interest and premium (if any) on, and fees relating to, any Indebtedness
and (ii) contingent reimbursement obligations in respect of amounts that may be drawn under
Letters of Credit) in respect of which no claim or demand for payment has been made (or, in
the case of Obligations for indemnification, no notice for indemnification has been issued
by the indemnitee) at such time.

“Unfunded Pension Liability” means, at any time, the aggregate amount, if any, of the sum of
the amount by which the present value of all accrued benefits under each Title IV Plan
exceeds the fair market value of all assets of such Title IV Plan, all determined as of the
most recent valuation date for each such Title IV Plan using the actuarial assumptions for
funding purposes in effect under such Title IV Plan.

“Vendor Inter-Creditor Agreement” means an agreement in the form of Exhibit
6.7(d)(iii)(A) or Exhibit 6.7(d)(iii)(B), in each case, with such changes
thereto as may be approved by the Agent, between the Agent and the holder of a purchase
money Lien in Equipment Inventory or such other form of intercreditor agreement as the Agent
may approve.

“Welfare Plan” means a Plan described in Section 3(1) of ERISA.

All accounting determinations required to be made pursuant hereto shall, unless expressly otherwise
provided herein, be made in accordance with GAAP. If any “Accounting Changes” (as defined below)
occur and such changes result in a change for purposes of measuring compliance with any provision
of Article VI (including any change in the Financial Covenants referred to therein), then Borrower
Representative, Agent and Lenders agree to enter into negotiations in order to amend such
provisions of this Agreement so as to equitably reflect such Accounting Changes with the desired
result that the criteria for evaluating compliance with such provisions shall be the same after
such Accounting Changes as if such Accounting Changes had not been made; provided, however, that
the agreement of Requisite Lenders to any required amendments of such provisions shall be
sufficient to bind all Lenders. Any amendments to the Financial Covenants or the definitions used
therein pursuant to the foregoing or otherwise shall not be deemed to result in a reduction in the
rate of interest for purposes of Section 11.2(c)(ii). “Accounting Changes” means (i) changes in
accounting principles required by the promulgation of any rule, regulation, pronouncement or
opinion by the Financial Accounting Standards Board of the American Institute of Certified Public
Accountants (or successor thereto or any agency with similar functions) and (ii) any elective
changes in accounting principles by any Credit Party. If Agent, Borrower Representative and
Requisite Lenders agree upon the required amendments, then after

A-36

 

appropriate amendments have been executed and the underlying Accounting Change with respect thereto
has been implemented, any reference to GAAP contained in this Agreement or in any other Loan
Document shall, only to the extent of such Accounting Change, refer to GAAP, consistently applied
after giving effect to the implementation of such Accounting Change. If Agent, Borrower
Representative and Requisite Lenders cannot agree upon the required amendments within 45 days
following the date of implementation of any Accounting Change, all Financial Statements, Compliance
Certificates and similar documents provided hereunder shall, at Agent’s request, be provided
together with a reconciliation between the calculations and amounts set forth therein before and
after giving effect to such underlying Accounting Change. Notwithstanding any other provision
contained herein, all terms of an accounting or financial nature used herein shall be construed,
and all computations of amounts and ratios referred to in Article VI shall be made, without giving
effect to any election under Accounting Standards Codification 825-10 (or any other Financial
Accounting Standard having a similar result or effect) to value any Indebtedness or other
liabilities of any Credit Party or any Subsidiary of any Credit Party at “fair value.” A breach of
a financial covenant contained in Article VI shall be deemed to have occurred as of any date of
determination by Agent or as of the last day of any specified measurement period, regardless of
when the financial statements reflecting such breach are delivered to Agent.

All other undefined terms contained in any of the Loan Documents shall, unless the context
indicates otherwise, have the meanings provided for by the Code to the extent the same are used or
defined therein; in the event that any term is defined differently in different Articles of the
Code, the definition contained in Article 9 shall control. Unless otherwise specified, references
in the Agreement or any of the Appendices to a Section, subsection or clause refer to such Section,
subsection or clause as contained in the Agreement. The words “herein,” “hereof” and “hereunder”
and other words of similar import refer to the Agreement as a whole, including all Annexes,
Exhibits and Schedules, as the same may from time to time be amended, restated, modified or
supplemented, and not to any particular section, subsection or clause contained in the Agreement or
any such Annex, Exhibit or Schedule. References in the definitions to any agreement, indenture,
note or other contract shall mean and refer to such agreement, indenture, note or other contract as
amended, modified, supplemented, restated, renewed, extended, replaced, or substituted, in each
case in accordance with the terms of such agreement, indenture, note or other contract and the
terms of the Loan Documents.

Wherever from the context it appears appropriate, each term stated in either the singular or plural
shall include the singular and the plural, and pronouns stated in the masculine, feminine or neuter
gender shall include the masculine, feminine and neuter genders. The words “including”, “includes”
and “include” shall be deemed to be followed by the words “without limitation”; the word “or” is
not exclusive; references to Persons include their respective successors and assigns (to the extent
and only to the extent permitted by the Loan Documents) or, in the case of governmental Persons,
Persons succeeding to the relevant functions of such Persons; and all references to statutes and
related regulations shall include any amendments of the same and any successor statutes and
regulations. Whenever any provision in any Loan Document refers to the knowledge (or an analogous
phrase) of any Credit Party, such words are intended to signify that such Credit Party has actual
knowledge or awareness of a particular fact or circumstance or that such Credit Party, if it had
exercised reasonable diligence, would have known or

A-37

 

been aware of such fact or circumstance. The phrase “the date hereof” or “of even date herewith”
shall mean July 29, 2010.

A-38

 

ANNEX B (Section 1.2)

to

CREDIT AGREEMENT

LETTERS OF CREDIT

(a) Issuance

Subject to the terms and conditions of the Agreement, Agent and Revolving Lenders agree to
incur, from time to time prior to the Commitment Termination Date, upon the request of
Borrower Representative on behalf of the applicable Borrower and for such Borrower’s
account, Letter of Credit Obligations by causing Letters of Credit to be issued by an L/C
Issuer for Borrower’s account and guaranteed by Agent; provided, that if the L/C Issuer is a
Revolving Lender, then such Letters of Credit shall not be guaranteed by Agent but rather
each Revolving Lender shall, subject to the terms and conditions hereinafter set forth,
purchase (or be deemed to have purchased) risk participations in all such Letters of Credit
issued with the written consent of Agent, as more fully described in paragraph (b)(ii)
below. The aggregate amount of all such Letter of Credit Obligations shall not at any time
exceed the least of (i) Thirty Million Dollars ($30,000,000) (the “L/C Sublimit”), and (ii)
the Maximum Amount less the aggregate outstanding principal balance of the Revolving Credit
Advances and the Swing Line Loan, and (iii) the Aggregate Borrowing Base less the
aggregate outstanding principal balance of the Revolving Credit Advances and the Swing Line
Loan. Furthermore, the aggregate amount of any Letter of Credit Obligations incurred on
behalf of any Borrower shall not at any time exceed such Borrower’s separate Borrowing Base
less the aggregate principal balance of the Revolving Credit Advances and the Swing
Line Loan to such Borrower. No such Letter of Credit shall have an expiry date that is more
than one year following the date of issuance thereof, unless otherwise determined by Agent
in its sole discretion, and neither Agent nor Revolving Lenders shall be under any
obligation to incur Letter of Credit Obligations in respect of, or purchase risk
participations in, any Letter of Credit having an expiry date that is later than the date
that is referred to in clause (a) of the definition of Commitment Termination Date. Each
issuance of a Letter of Credit shall be made on notice by Borrower Representative on behalf
of the applicable Borrower to the representative of Agent identified in Schedule 1.1
at the address specified therein. Any such notice must be given no later noon (New York
time) on the date which is three (3) Business Days prior to the proposed issuance of such
Letter of Credit. Each such notice (a “Notice of Issuance of Letter of Credit”) must be
given in writing (by telecopy or overnight courier) substantially in the form of Exhibit
B-1(a), shall be accompanied by the proposed form of Letter of Credit (which must be
acceptable to the L/C Issuer) and shall include the information required in such Exhibit and
such other administrative information as may be reasonably required by Agent.
Notwithstanding anything contained herein to the contrary, Letter of Credit applications by
Borrowers and approvals by Agent and the L/C Issuer may be made and

B-1

 

transmitted pursuant to electronic codes and security measures mutually agreed upon and
established by and among Borrowers, Agent and the L/C Issuer.

(b) Advances Automatic; Participations

	 	(i)	 	In the event that Agent or any Revolving Lender shall make any payment on or
pursuant to any Letter of Credit Obligation, such payment shall then be deemed
automatically to constitute a Revolving Credit Advance to the applicable Borrower under
Section 1.1(a) of the Agreement regardless of whether a Default or Event of Default has
occurred and is continuing and notwithstanding any Borrower’s failure to satisfy the
conditions precedent set forth in Section 2, and each Revolving Lender shall be
obligated to pay its Pro Rata Share thereof in accordance with the Agreement. The
failure of any Revolving Lender to make available to Agent for Agent’s own account its
Pro Rata Share of any such Revolving Credit Advance or payment by Agent under or in
respect of a Letter of Credit shall not relieve any other Revolving Lender of its
obligation hereunder to make available to Agent its Pro Rata Share thereof, but no
Revolving Lender shall be responsible for the failure of any other Revolving Lender to
make available such other Revolving Lender’s Pro Rata Share of any such payment.
	 
	 	(ii)	 	If it shall be illegal or unlawful for any Borrower to incur Revolving Credit
Advances as contemplated by paragraph (b)(i) above because of an Event of Default
described in Section 8.1(h) or Section 8.1(i) or otherwise or if it shall be illegal or
unlawful for any Revolving Lender to be deemed to have assumed a ratable share of the
reimbursement obligations owed to an L/C Issuer, or if the L/C Issuer is a Revolving
Lender, then (A) immediately and without further action whatsoever, each Revolving
Lender shall be deemed to have irrevocably and unconditionally purchased from Agent (or
such L/C Issuer, as the case may be) an undivided interest and participation equal to
such Revolving Lender’s Pro Rata Share (based on the Revolving Loan Commitments) of the
Letter of Credit Obligations in respect of all Letters of Credit then outstanding and
(B) thereafter, immediately upon issuance of any Letter of Credit, each Revolving
Lender shall be deemed to have irrevocably and unconditionally purchased from Agent (or
such L/C Issuer, as the case may be) an undivided interest and participation in such
Revolving Lender’s Pro Rata Share (based on the Revolving Loan Commitments) of the
Letter of Credit Obligations with respect to such Letter of Credit on the date of such
issuance. Each Revolving Lender shall fund its participation in all payments or
disbursements made under the Letters of Credit in the same manner as provided in the
Agreement with respect to Revolving Credit Advances.

(c) Cash Collateral

	 	(i)	 	If Borrowers are required to provide cash collateral for any Letter of Credit
Obligations pursuant to the Agreement prior to the Commitment Termination Date, each
Borrower will pay to Agent for the ratable benefit of itself and Revolving Lenders cash
or cash

B-2

 

	 	 	 	equivalents acceptable to Agent (“Cash Equivalents”) in an amount equal to 105% of
the maximum amount then available to be drawn under each applicable Letter of Credit
outstanding for the benefit of such Borrower. Such funds or Cash Equivalents shall
be held by Agent in a cash collateral account (the “Cash Collateral Account”)
maintained at a bank or financial institution acceptable to Agent. The Cash
Collateral Account shall be in the name of the applicable Borrower and shall be
pledged to, and subject to the control of, Agent, for the benefit of Agent and
Lenders, in a manner reasonably satisfactory to Agent. Each Borrower hereby pledges
and grants to Agent, on behalf of itself and Lenders, a security interest in all
such funds and Cash Equivalents held in the Cash Collateral Account from time to
time and all proceeds thereof, as security for the payment of all amounts due in
respect of the Letter of Credit Obligations and other Obligations, whether or not
then due. The Agreement, including this Annex B, shall constitute a
security agreement under applicable law.
	 
	 	(ii)	 	If any Letter of Credit Obligations, whether or not then due and payable, shall
for any reason be outstanding on the Commitment Termination Date, each applicable
Borrower shall either (A) provide cash collateral therefor in the manner described
above, or (B) cause all such Letters of Credit and guaranties thereof, if any, to be
canceled and returned, or (C) with the consent of Agent, deliver a stand-by letter (or
letters) of credit in guaranty of such Letter of Credit Obligations, which stand-by
letter (or letters) of credit shall be of like tenor and duration as, and in an amount
equal to 105% of the aggregate maximum amount then available to be drawn under, the
Letters of Credit to which such outstanding Letter of Credit Obligations relate and
shall be issued by a Person, and shall be subject to such terms and conditions, as are
be satisfactory to Agent in its sole discretion.
	 
	 	(iii)	 	From time to time after funds are deposited in the Cash Collateral Account by
Borrower, whether before or after the Commitment Termination Date, Agent may apply such
funds or Cash Equivalents then held in the Cash Collateral Account to the payment of
any amounts, and in such order as Agent may elect, as shall be or shall become due and
payable by such Borrower to Agent and Lenders with respect to such Letter of Credit
Obligations of such Borrower and, upon the satisfaction in full of all Letter of Credit
Obligations, to any other Obligations of such Borrower then due and payable.
	 
	 	(iv)	 	No Borrower nor any Person claiming on behalf of or through any Borrower shall
have any right to withdraw any of the funds or Cash Equivalents held in the Cash
Collateral Account, except that upon the termination of all Letter of Credit
Obligations and the payment of all amounts payable by Borrowers to Agent and Lenders in
respect thereof, any funds remaining in the Cash Collateral Account shall be applied to
other Obligations then due and owing and upon payment in full of such other
Obligations, any remaining amount shall be paid to Borrowers or as otherwise required
by law. Interest earned on deposits in the Cash Collateral Account shall be for the
account of Agent.

B-3

 

(d) Fees and Expenses

Each Borrower agrees to pay to Agent for the benefit of Revolving Lenders, as compensation
to such Lenders for Letter of Credit Obligations incurred by such Borrower hereunder, (i)
all costs and expenses incurred by Agent or any Lender on account of such Letter of Credit
Obligations, and (ii) for each month during which any such Letter of Credit Obligation shall
remain outstanding, a fee (the “Letter of Credit Fee”) in an amount equal to the Applicable
L/C Margin from time to time in effect multiplied by the maximum amount available from time
to time to be drawn under the applicable Letter of Credit. Such fee shall be paid to Agent
for the benefit of the Revolving Lenders in arrears, on the first Business Day of each month
and on the Commitment Termination Date. In addition, and in addition to the fronting fees
contemplated by Section 1.9(d), each Borrower shall pay to any L/C Issuer, on demand, such
fees (including all per annum fees), charges and expenses of such L/C Issuer in respect of
the issuance, negotiation, acceptance, amendment, transfer and payment of such Letter of
Credit or otherwise payable pursuant to the application and related documentation under
which such Letter of Credit is issued.

(e) Omitted

(f) Obligation Absolute

The obligation of Borrowers to reimburse Agent and Revolving Lenders for payments made with
respect to any Letter of Credit Obligation shall be absolute, unconditional and irrevocable,
without necessity of presentment, demand, protest or other formalities, and the obligations
of each Revolving Lender to make payments to Agent with respect to Letters of Credit shall
be unconditional and irrevocable. Such obligations of Borrowers and Revolving Lenders shall
be paid strictly in accordance with the terms hereof under all circumstances including the
following:

	 	(i)	 	any lack of validity or enforceability of any Letter of Credit or the Agreement
or the other Loan Documents or any other agreement;
	 
	 	(ii)	 	the existence of any claim, setoff, defense or other right that any Borrower or
any of its Affiliates or any Lender may at any time have against a beneficiary or any
transferee of any Letter of Credit (or any Persons or entities for whom any such
transferee may be acting), Agent, any Lender, or any other Person, whether in
connection with the Agreement, the Letter of Credit, the transactions contemplated
herein or therein or any unrelated transaction (including any underlying transaction
between any Borrower or any of its Affiliates and the beneficiary for which the Letter
of Credit was procured);
	 
	 	(iii)	 	any draft, demand, certificate or any other document presented under any
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any
respect or any statement therein being untrue or inaccurate in any respect;
	 
	 	(iv)	 	payment by Agent (except as otherwise expressly provided in paragraph
(g)(ii)(C) below) or any L/C Issuer under any Letter of Credit or guaranty

B-4

 

	 	 	 	thereof against presentation of a demand, draft or certificate or other document that does not comply with the terms
of such Letter of Credit or such guaranty;
	 
	 	(v)	 	any other circumstance or event whatsoever, that is similar to any of the
foregoing; or
	 
	 	(vi)	 	the fact that a Default or an Event of Default has occurred and is continuing.

(g) Indemnification; Nature of Lenders’ Duties

	 	(i)	 	In addition to amounts payable as elsewhere provided in the Agreement,
Borrowers hereby agree to pay and to protect, indemnify, and save harmless Agent and
each Lender from and against any and all claims, demands, liabilities, damages, losses,
costs, charges and expenses (including reasonable attorneys’ fees and allocated costs
of internal counsel) that Agent or any Lender may incur or be subject to as a
consequence, direct or indirect, of (A) the issuance of any Letter of Credit or
guaranty thereof, or (B) the failure of Agent or any Lender seeking indemnification or
of any L/C Issuer to honor a demand for payment under any Letter of Credit or guaranty
thereof as a result of any act or omission, whether rightful or wrongful, of any
present or future de jure or de facto government or Governmental Authority, in each
case other than to the extent solely as a result of the gross negligence or willful
misconduct of Agent or such Lender (as finally determined by a court of competent
jurisdiction).
	 
	 	(ii)	 	As between Agent and any Lender and Borrowers, Borrowers assume all risks of
the acts and omissions of, or misuse of any Letter of Credit by beneficiaries of any
Letter of Credit. In furtherance and not in limitation of the foregoing, to the
fullest extent permitted by law neither Agent nor any Lender shall be responsible for:
(A) the form, validity, sufficiency, accuracy, genuineness or legal effect of any
document issued by any party in connection with the application for and issuance of any
Letter of Credit, even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged; (B) the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign any Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part,
that may prove to be invalid or ineffective for any reason; (C) failure of the
beneficiary of any Letter of Credit substantially to comply with conditions required in
order to demand payment under such Letter of Credit; provided that, in the case of any
payment by Agent under any Letter of Credit or guaranty thereof, Agent shall be liable
to the extent such payment was made solely as a result of its gross negligence or
willful misconduct (as finally determined by a court of competent jurisdiction) in
determining that the demand for payment under such Letter of Credit or guaranty thereof
complies on its face with any applicable requirements for a demand for payment under
such Letter of Credit or guaranty thereof; (D) errors, omissions, interruptions or
delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or
otherwise, whether or not they may be in cipher; (E) errors in interpretation of
technical terms; (F) any loss or delay in the transmission or otherwise of

B-5

 

	 	 	 	any document required in order to make a payment under any Letter of Credit or
guaranty thereof or of the proceeds thereof; (G) the credit of the proceeds of any
drawing under any Letter of Credit or guaranty thereof; and (H) any consequences
arising from causes beyond the control of Agent or any Lender. None of the above
shall affect, impair, or prevent the vesting of any of Agent’s or any Lender’s
rights or powers hereunder or under the Agreement.
	 
	 	(iii)	 	Nothing contained herein shall be deemed to limit or to expand any waivers,
covenants or indemnities made by Borrowers in favor of any L/C Issuer in any letter of
credit application, reimbursement agreement or similar document, instrument or
agreement between or among Borrowers and such L/C Issuer.

(h)  Reimbursement

Borrowers shall be irrevocably and unconditionally obligated forthwith without presentment,
demand, protest or other formalities of any kind (including for purposes of the Guaranty and
Security Agreement), to reimburse any L/C Issuer on demand in immediately available funds
for any amounts paid by such L/C Issuer with respect to a Letter of Credit, including all
reimbursement payments, fees, Charges, costs and expenses paid by such L/C Issuer.
Borrowers hereby authorize and direct Agent, at Agent’s option, to debit Borrowers’ account
(by increasing the outstanding principal balance of the Revolving Credit Advances) in the
amount of any payment made by an L/C Issuer with respect to any Letter of Credit.

B-6

 

ANNEX C (Section 1.8)

to

CREDIT AGREEMENT

CASH MANAGEMENT SYSTEMS

Borrowers shall and shall cause each other Credit Party to establish and maintain the Cash
Management Systems described below:

	(a)	 	On or before the Closing Date, and until the Termination Date, each Borrower shall (i)
establish lock boxes (“Lock Boxes”) or at Agent’s discretion, blocked accounts (“Blocked
Accounts”) at one or more of the banks set forth in Disclosure Schedule (3.19), and
shall request in writing and otherwise take such reasonable steps to ensure that all Account
Debtors (except as set forth below) forward payment directly to such Lock Boxes, and (ii)
deposit and cause its Subsidiaries to deposit or cause to be deposited promptly, and in any
event no later than the first Business Day after the date of receipt thereof, all cash,
checks, drafts or other similar items of payment relating to or constituting payments made in
respect of any and all Collateral (whether or not otherwise delivered to a Lock Box) into one
or more Blocked Accounts in such Borrower’s name or any such Subsidiary’s name and at a bank
identified in Disclosure Schedule (3.19)(each, a “Relationship Bank”). At the
request of Agent, each Borrower shall have established a concentration account in its name
(each a “Concentration Account” and collectively, the “Concentration Accounts”) at the bank
which shall be designated as the Concentration Account bank for such Borrower in
Disclosure Schedule (3.19) (the “Concentration Account Bank” and, collectively, the
“Concentration Account Banks”) which bank shall be reasonably satisfactory to Agent and such
Borrower. No Credit Party shall maintain a deposit account that is not subject to a Blocked
Account Agreement, except with the consent of the Agent.

	(b)	 	Each Borrower may maintain, in its name, an account (each a “Disbursement Account” and
collectively, the “Disbursement Accounts”) at a bank reasonably acceptable to Agent into which
Agent shall, from time to time, deposit proceeds of Revolving Credit Advances and Swing Line
Advances made to such Borrower pursuant to Section 1.1 for use by such Borrower solely in
accordance with the provisions of Section 1.4. No Credit Party shall maintain any deposit
account other than a deposit account that is subject to a Blocked Account Agreement, except
with the consent of the Agent.

	(c)	 	On or before the Closing Date (or such later date as Agent shall consent to in writing), each
Concentration Account Bank, each bank where a Disbursement Account is maintained and all other
Relationship Banks, shall have entered into tri-party blocked account agreements with Agent,
for the benefit of itself and Lenders, and the applicable Credit Party and Subsidiaries
thereof, as applicable, in form and substance reasonably acceptable to Agent, which shall
become operative on or prior to the Closing Date (a “Blocked Account Agreement”). Each such
blocked account agreement shall provide, among other things, that (i) all items of payment
deposited in

C-1

 

	 	 	such account and proceeds thereof deposited in the applicable Concentration Account are held
by such bank as agent or bailee-in-possession for Agent, on behalf of itself and Lenders,
(ii) the bank executing such agreement has no rights of setoff or recoupment or any other
claim against such account, as the case may be, other than for payment of its service fees
and other charges directly related to the administration of such account and for returned
checks or other items of payment, and (iii) from and after the Closing Date (A) with respect
to banks at which a Blocked Account is maintained, such bank agrees, from and after the
receipt of a notice (an “Activation Notice”) from Agent (which Activation Notice may be
given by Agent at any time at which (1) a Default or Event of Default has occurred and is
continuing or (2) a Cash Dominion Event has occurred and is continuing (any of the foregoing
being referred to herein as an “Activation Event”)), to forward immediately all amounts in
each Blocked Account to such Borrower’s Concentration Account Bank and to commence the
process of daily sweeps from such Blocked Account into the applicable Concentration Account
and (B) with respect to each Concentration Account Bank, such bank agrees from and after the
receipt of an Activation Notice from Agent upon the occurrence of an Activation Event, to
immediately forward all amounts received in the applicable Concentration Account to the
Collection Account through daily sweeps from such Concentration Account into the Collection
Account. From and after the date Agent has delivered an Activation Notice to any bank with
respect to any Blocked Account(s), no Credit Party shall, or shall cause or permit any
Subsidiary thereof to, accumulate or maintain cash in Disbursement Accounts or payroll
accounts as of any date of determination in excess of checks outstanding against such
accounts as of that date and amounts necessary to meet minimum balance requirements.

	(d)	 	So long as no Default or Event of Default or Cash Dominion Event has occurred and is
continuing, Credit Parties may amend Disclosure Schedule (3.19) to add or replace a
Relationship Bank, Lock Box or Blocked Account or to replace any Concentration Account or any
Disbursement Account; provided, that (i) Agent shall have consented in writing in advance to
the opening of such account or Lock Box with the relevant bank and (ii) prior to the time of
the opening of such account or Lock Box, the applicable Credit Party or its Subsidiaries, as
applicable, and such bank shall have executed and delivered to Agent a tri-party blocked or
Lock Box account agreement, in form and substance reasonably satisfactory to Agent. Each
Credit Party shall close any of its accounts (and establish replacement accounts in accordance
with the foregoing sentence) promptly and in any event within thirty (30) days following
notice from Agent that the creditworthiness of any bank holding an account is no longer
acceptable in Agent’s reasonable judgment, or as promptly as practicable and in any event
within sixty (60) days following notice from Agent that the operating performance, funds
transfer or availability procedures or performance with respect to accounts or Lock Boxes of
the bank holding such accounts or Agent’s liability under any tri-party blocked or Lock Box
blocked account agreement with such bank is no longer acceptable in Agent’s reasonable
judgment.

	(e)	 	The Lock Boxes, Blocked Accounts, Disbursement Accounts and the Concentration Accounts shall
be cash collateral accounts, with all cash, checks and other similar items of payment in such
accounts securing payment of the Loans and all other Obligations, and in which the applicable

C-2

 

	 	 	Credit Party and each Subsidiary thereof shall have granted a Lien to Agent, on behalf of
itself and Lenders, pursuant to the Guaranty and Security Agreement.

	(f)	 	All amounts deposited in the Collection Account shall be deemed received by Agent in
accordance with Section 1.6 and shall be applied (and allocated) by Agent in accordance with
Section 1.7. In no event shall any amount be so applied unless and until such amount shall
have been credited in immediately available funds to the Collection Account.

	(g)	 	Each Credit Party shall and shall cause its Related Persons to (i) hold in trust for Agent,
for the benefit of itself and Lenders, all checks, cash and other items or payment
constituting proceeds of Collateral received by such Credit Party or any such Related Person,
and (ii) within one (1) Business Day after receipt by such Credit Party or any such Related
Person of any checks, cash or other items or payment, deposit the same into a Blocked Account
of such Credit Party. Each Credit Party and each Related Person thereof acknowledges and
agrees that all cash, checks or other items of payment constituting proceeds of Collateral are
part of the Collateral. All proceeds of the sale or other disposition of any Collateral,
shall be deposited directly into the applicable Blocked Accounts.

C-3

 

ANNEX D (Section 2.2(a))

to

CREDIT AGREEMENT

CLOSING CHECKLIST

In addition to, and not in limitation of, the conditions described in Section 2.1 of the Agreement,
pursuant to Section 2.1(a), the following items must be received by Agent in form and substance
satisfactory to Agent on or prior to the Closing Date (each capitalized term used but not otherwise
defined herein has the meaning ascribed thereto in Annex A to the Agreement):

	(A)	 	Appendices

	 	 	All Appendices to the Agreement, in form and substance satisfactory to Agent.

	(B)	 	Revolving Notes and Swing Line Note

	 	 	Duly executed originals of the Revolving Notes and Swing Line Notes for each applicable
Lender, dated the Closing Date, if requested by the respective Lenders.

	(C)	 	Insurance

	 	 	Satisfactory evidence that the insurance policies required by Section 5.4 are in full force
and effect, together with appropriate evidence showing loss payable and/or additional
insured clauses or endorsements, as requested by Agent, in favor of Agent, on behalf of
Lenders.

	(D)	 	Security Documents

	 	 	A Guaranty and Security Agreement, substantially in the form attached hereto as Exhibit
D, amending and restating the Security Agreements, Pledge Agreements and Guaranties (as
each of such terms is defined in the Original Credit Agreement), together with such
additional amendments, confirmations and assumptions of or relating to the Collateral
Documents and such additional security, pledge and similar documents as Agent may reasonably
request.

	(E)	 	Perfection Certificates

	 	 	Perfection certificates as to each Credit Party, in form and substance satisfactory to
Agent, executed by each Credit Party.

	(F)	 	Omitted

	(G)	 	Security Interests and Code Filings

	 	(a)	 	Evidence satisfactory to Agent that Agent (for the benefit of itself and
Lenders) has a valid and perfected first priority security interest in the Collateral,
including (i) such

D-1

 

	 	 	 	documents duly executed by each Credit Party (including financing statements under
the Code and other applicable documents under the laws of any jurisdiction with
respect to the perfection of Liens) as Agent may request in order to perfect its
security interests in the Collateral and (ii) copies of Code search reports listing
all effective financing statements that name any Credit Party as debtor, together
with copies of such financing statements, none of which shall cover the Collateral,
except for Permitted Encumbrances.

	 	(b)	 	Evidence satisfactory to Agent, including copies, of all UCC-1 and other
financing statements filed in favor of any Credit Party with respect to each location,
if any, at which Parts and Tools Inventory or Equipment Inventory may be consigned.

	 	(c)	 	Control Letters from (i) all issuers of uncertificated securities and financial
assets held by any Borrower, (ii) all securities intermediaries with respect to all
securities accounts and securities entitlements of any Borrower other than any
securities accounts which are solely and directly linked to a deposit account that is
subject to a Blocked Account Agreement, and (iii) all futures commission agents and
clearing houses with respect to all commodities contracts and commodities accounts held
by any Borrower.

	 	(d)	 	Evidence that Agent has been named as lien-holder or secured party on all
certificates of title for all Title Vehicles owned by Credit Parties, other than Titled
Vehicles constituting Equipment Inventory (except that Agent must be named as
lien-holder on Titled Vehicles constituting Equipment Inventory of the type listed on
Disclosure Schedule (3.24)).

	(H)	 	Borrowing Base Certificate

	 	 	Duly executed originals of a Borrowing Base Certificate from each Borrower, dated
June 30, 2010, reflecting information concerning Eligible Accounts, Eligible Rentals,
Eligible Parts and Tools Inventory, Eligible Rolling Stock and Eligible Equipment Inventory
of Borrowers.

	(I)	 	Omitted

	(J)	 	Omitted

	(K)	 	Cash Management System; Blocked Account Agreements

	 	 	Evidence satisfactory to Agent that, as of the Closing Date, Cash Management Systems
complying with Annex C to the Agreement have been established and are currently
being maintained in the manner set forth in such Annex C, together with copies of
duly executed tri-party blocked account and lock box agreements, reasonably satisfactory to
Agent, with the banks as required by Annex C.

	(L)	 	Certificate of Formation and Good Standing

	 	 	For each Credit Party, (a) its articles or certificate of incorporation or certificate of
formation, as applicable, and all amendments thereto, (b) good standing certificates
(including verification of

D-2

 

	 	 	tax status) in its state of incorporation or formation, as applicable, and (c) good standing
certificates (including verification of tax status) and certificates of qualification to
conduct business in each jurisdiction where its ownership or lease of property or the
conduct of its business requires such qualification, each dated a recent date prior to the
Closing Date and certified by the applicable Secretary of State or other authorized
Governmental Authority.

	(M)	 	By-laws and Resolutions

	 	 	For each Credit Party, (a) its by-laws or operating agreement, as applicable, together with
all amendments thereto and (b) resolutions of such Person’s Board of Directors or Board of
Members, as applicable, approving and authorizing the execution, delivery and performance of
the Loan Documents to which it is a party and the transactions to be consummated in
connection therewith, each certified as of the Closing Date by such Person’s secretary or an
assistant secretary as being in full force and effect without any modification or amendment.

	(N)	 	Incumbency Certificates

	 	 	For each Credit Party, signature and incumbency certificates of the officers of such Person
executing any of the Loan Documents, certified as of the Closing Date by such Person’s
secretary or an assistant secretary as being true, accurate, correct and complete.

	(O)	 	Opinions of Counsel

	 	 	Duly executed originals of opinions of Dechert LLP, New York, Delaware and California
counsel for the Credit Parties, together with opinions of Washington, Montana and Virginia
counsel, each in form and substance reasonably satisfactory to Agent and its counsel, dated
the Closing Date, and each accompanied by a letter addressed to such counsel from the Credit
Parties, authorizing and directing such counsel to address its opinion to Agent, on behalf
of Lenders, and to include in such opinion an express statement to the effect that Agent and
Lenders are authorized to rely on such opinion.

	(P)	 	GE Capital Fee Letter

	 	 	Duly executed originals of the GE Capital Fee Letter in form and substance satisfactory to
GE Capital.

	(Q)	 	Officer’s Certificate

	 	 	Duly executed originals of a certificate of an Authorized Officer of each Credit Party,
dated the Closing Date, stating that, (i) since December 31, 2009 (a) no event or condition
has occurred or is existing which could reasonably be expected to have a Material Adverse
Effect; (b) no Litigation has been commenced against such Credit Party which, if successful,
would have a Material Adverse Effect or could challenge any of the transactions contemplated
by the Agreement and the other Loan Documents; and (c) there has been no material increase
in liabilities, liquidated or contingent, and no material decrease in assets of any Borrower
or any of

D-3

 

	 	 	its Subsidiaries and (ii) no default or event of default has occurred under any material
contract to which any Borrower is a party which could reasonably be expected to have a
Material Adverse Effect.

	(R)	 	Waivers

	 	 	Landlord waivers and consents, bailee letters and mortgagee agreements in form and substance
reasonably satisfactory to Agent, in each case as required pursuant to Section 5.9, provided
that Agent may waive this condition as to any one or more locations as contemplated by
Section 5.9 and the various borrowing base definitions.

	(S)	 	Omitted

	(T)	 	Omitted

	(U)	 	Audited Financials; Financial Condition

	 	 	The Financial Statements, Projections and other materials set forth in Section 3.4,
certified by an Authorized Officer of Borrower Representative, in each case in form and
substance reasonably satisfactory to Agent, and Agent shall be satisfied, in its sole
discretion, with all of the foregoing. Agent shall have further received a certificate of
an Authorized Officer of each Borrower, based on such Financial Statements and Projections,
to the effect that (a) the Credit Parties, taken as a whole, will be Solvent upon the
consummation of the transactions contemplated herein; (b) the Projections are based upon
estimates and assumptions stated therein, all of which such Borrower believes to be
reasonable and fair in light of current conditions and current facts known to such Borrower
and, as of the Closing Date, reflect such Borrower’s good faith and reasonable estimates of
its future financial performance and of the other information projected therein for the
period set forth therein; and (c) containing such other statements with respect to the
solvency of such Borrower and matters related thereto as Agent shall request.

	(V)	 	Other Documents

	 	 	Such other certificates, documents and agreements respecting any Credit Party as Agent may,
in its sole discretion, request.

D-4

 

ANNEX E (Section 4.1(a))

to

CREDIT AGREEMENT

FINANCIAL STATEMENTS AND PROJECTIONS — REPORTING

Each Borrower shall deliver or cause to be delivered to Agent or to Agent and Lenders, as
indicated, the following:

	 	(a)	 	Monthly Financials

	 	 	 	To Agent, within thirty (30) days after the end of each Fiscal Month, financial
information regarding H&E Delaware and its Subsidiaries, certified by an Authorized
Officer of Borrower Representative, consisting of consolidated and consolidating, if
applicable (i) unaudited balance sheets as of the close of such Fiscal Month
(including a summary of the outstanding balance of all Intercompany Notes as of the
last day of such Fiscal Month) and the related statements of income and cash flow
and shareholders’ equity for that portion of the Fiscal Year ending as of the close
of such Fiscal Month and (ii) unaudited statements of income, cash flows and
shareholders’ equity for such Fiscal Month, setting forth in comparative form the
figures for the corresponding period in the prior year and the figures contained in
the Projections for such Fiscal Year, all prepared in accordance with GAAP (subject
to normal year-end adjustments). Such financial information shall be accompanied by
(A) a statement in reasonable detail (each, a “Compliance Certificate”) showing the
calculations used in determining compliance with each Financial Covenant which is
tested on a monthly basis as of the end of such Fiscal Quarter, and (B) the
certification of an Authorized Officer of Borrower Representative that (i) such
financial information presents fairly in accordance with GAAP (subject to normal
year-end adjustments) the financial position and results of operations of H&E
Delaware and its Subsidiaries, on a consolidated and consolidating basis, if
applicable, in each case as at the end of such Fiscal Month and for that portion of
the Fiscal Year then ended and (ii) any other information presented is true, correct
and complete in all material respects and that there was no Default or Event of
Default in existence as of such time or, if a Default or Event of Default has
occurred and is continuing, describing the nature thereof and all efforts undertaken
to cure such Default or Event of Default.

	 	(b)	 	Quarterly Financials

	 	 	 	To Agent, within forty-five (45) days after the end of each Fiscal Quarter,
consolidated and consolidating, if applicable, financial information regarding H&E
Delaware and its Subsidiaries, certified by an Authorized Officer of Borrower
Representative, including (i) unaudited balance sheets as of the close of such
Fiscal Quarter and the related

E-1

 

	 	 	 	statements of income and cash flow for that portion of the Fiscal Year ending as of
the close of such Fiscal Quarter and (ii) unaudited statements of income and cash
flows for such Fiscal Quarter, in each case setting forth in comparative form, the
figures for the corresponding period in the prior year and the figures contained in
the Projections for such Fiscal Year, all prepared in accordance with GAAP (subject
to normal year-end adjustments). Such financial information shall be accompanied by
(A) a Compliance Certificate in respect of each of the Financial Covenants that are
tested on a quarterly basis as at the end of such Fiscal Quarter and (B) the
certification of an Authorized Officer of Borrower Representative that (i) such
financial information presents fairly in accordance with GAAP (subject to normal
year-end adjustments) the financial position, results of operations and statements
of cash flows of H&E Delaware and its Subsidiaries, on both a consolidated and
consolidating basis, if applicable, as at the end of such Fiscal Quarter and for
that portion of the Fiscal Year then ended, (ii) any other information presented is
true, correct and complete in all material respects and that there was no Default or
Event of Default in existence as of such time or, if a Default or Event of Default
has occurred and is continuing, describing the nature thereof and all efforts
undertaken to cure such Default or Event of Default. In addition, Borrowers shall
deliver to Agent and Lenders, within forty-five (45) days after the end of each
Fiscal Quarter, a management discussion and analysis that includes a comparison to
budget for that Fiscal Quarter and a comparison of performance for that Fiscal
Quarter to the corresponding period in the prior year.

	 	(c)	 	Operating Plan

	 	 	 	To Agent, as soon as available, but not later than forty-five (45) days after the
end of each Fiscal Year, an annual operating plan for H&E Delaware and its
Subsidiaries, on a consolidated and consolidating basis, approved by the Board of
Directors of H&E Delaware, (a) for the first Fiscal Year following the Closing Date,
which (i) includes a statement of all of the material assumptions on which such plan
is based and (ii) includes monthly balance sheets, a monthly budget, income
statements and statements of cash flow for the following year and (b) for the four
Fiscal Years thereafter, which (i) includes a statement of all of the material
assumptions on which such plan is based and (ii) includes monthly balance sheets, a
monthly budget, income statements and statements of cash flow for the following
year, and in each such case, integrates sales, gross profits, operating expenses,
operating profit, cash flow projections and Borrowing Availability projections, all
prepared on the same basis and in similar detail as that on which operating results
are reported (and in the case of cash flow projections, representing management’s
good faith estimates of future financial performance based on historical
performance), and including plans for personnel, P&E Capital Expenditures and
facilities.

E-2

 

	 	(d)	 	Annual Audited Financials

	 	 	 	To Agent, within ninety (90) days after the end of each Fiscal Year, audited
Financial Statements for H&E Delaware and its Subsidiaries on a consolidated and
(unaudited) consolidating basis, if applicable, consisting of balance sheets and
statements of income and retained earnings and cash flows, setting forth in
comparative form in each case the figures for the previous Fiscal Year which
Financial Statements shall be prepared in accordance with GAAP and certified without
qualification, by an independent certified public accounting firm of national
standing or otherwise acceptable to Agent. Such Financial Statements shall be
accompanied by (i) a statement prepared in reasonable detail showing the
calculations used in determining compliance with each of the Financial Covenants as
of the end of such Fiscal Year and (ii) the certification of an Authorized Officer
of Borrower Representative that all such Financial Statements present fairly in all
material respects in accordance with GAAP the financial position, results of
operations and statements of cash flows of H&E Delaware and its Subsidiaries on a
consolidated and consolidating basis, if applicable, as at the end of such Fiscal
Year and for the period then ended, and that there was no Default or Event of
Default in existence as of such time or, if a Default or Event of Default has
occurred and is continuing, describing the nature thereof and all efforts undertaken
to cure such Default or Event of Default.

	 	(e)	 	Management Letters

	 	 	 	To Agent, within ten (10) Business Days after receipt thereof by any Credit Party,
copies of all management letters, exception reports or similar letters or reports
received by such Credit Party from its independent certified public accountants.

	 	(f)	 	Default Notices

	 	 	 	To Agent and Lenders, as soon as practicable, and in any event within five
(5) Business Days after an executive officer of any Credit Party has actual
knowledge of the existence of any Default, Event of Default or other event that has
had a Material Adverse Effect, telephonic or telecopied notice specifying the nature
of such Default or Event of Default or other event, including the anticipated effect
thereof, which notice, if given telephonically, shall be promptly confirmed in
writing on the next Business Day.

	 	(g)	 	Omitted

	 	(h)	 	Subordinated Debt, Senior Unsecured Notes and Equity Notices

	 	 	 	To Agent, as soon as practicable, copies of all material written notices given or
received by any Credit Party with respect to any Subordinated Debt with an original
principal amount in excess of $2,000,000, the Senior Unsecured Notes or Stock of
such Credit Party, and, within two (2) Business Days after such Credit Party obtains
knowledge of

E-3

 

	 	 	 	any matured or unmatured event of default with respect to any Subordinated Debt with
an original principal amount in excess of $2,000,000 or the Senior Unsecured Notes
notice of such event of default.

	 	(i)	 	Supplemental Schedules

	 	 	 	To Agent, supplemental disclosures, if any, required by Section 5.6.

	 	(j)	 	Litigation

	 	 	 	To Agent in writing, promptly upon learning thereof, written notice of any
Litigation commenced or threatened against any Credit Party that would reasonably be
expected to have a Material Adverse Effect.

	 	(k)	 	Insurance Notices

	 	 	 	To Agent, disclosure of losses or casualties required by Section 5.4.

	 	(l)	 	Default and Other Notices

	 	 	 	To Agent, within five (5) Business Days after receipt thereof, copies of (i) any and
all default notices received under or with respect to any leased location or public
warehouse where Collateral is located, and (ii) such other notices or documents as
Agent may reasonably request.

	 	(m)	 	Lease Amendments

	 	 	 	To Agent, promptly upon request therefor, copies of all material amendments to any
of the five (5) largest real estate leases (by the value of annual payments of the
real estate so leased) or to any real estate lease to which John Engquist is a
lessor.

	 	(n)	 	Other Documents

	 	 	 	To Agent, such other financial and other information respecting any Credit Party’s
business or financial condition as Agent or any Lender shall, from time to time,
reasonably request.

Promptly after receipt thereof, Agent will distribute the items set forth in the foregoing clauses
(a) through (f) to the Lenders (which distribution may be made via posting to Intralinks® or any
other E-System approved by or set up by or at the direction of Agent).
Promptly after request therefor by any lender, Agent will distribute
any of the other items received pursuant to this
Annex E to such lender (which distribution may be made via posting to
Intralinks® or any other E-system approved
by or set up by or at the direction of Agent).

E-4

 

ANNEX F (Section 4.1(b))

to

CREDIT AGREEMENT

COLLATERAL REPORTS

Each Borrower shall deliver or cause to be delivered the following:

	(a)	 	To Agent, upon its request, and in the case of clauses (i) through (iii), in no event less
frequently than ten (10) Business Days after the end of each Fiscal Month (together with a
copy of all or any part of the following reports requested by any Lender in writing after the
Closing Date), each of the following reports, each of which shall be prepared by such Borrower
as of the last day of the immediately preceding Fiscal Month or the date two (2) days prior to
the date of any such request:

     (i) a Borrowing Base Certificate with respect to each Borrower, in each case
accompanied by such supporting detail and documentation as shall be requested by Agent in
its reasonable discretion;

     (ii) with respect to such Borrower, a summary of Parts and Tools Inventory and
Equipment Inventory by branch location and type with a supporting perpetual Parts and Tools
Inventory and Equipment Inventory report, in each case accompanied by such supporting detail
and documentation as shall be requested by Agent in its reasonable discretion;

     (iii) with respect to such Borrower, a monthly trial balance showing Accounts and
Rentals outstanding aged from invoice due date as follows: 1 to 30 days, 31 to 60 days, 61
to 90 days and 91 days or more, accompanied by such supporting detail and documentation as
shall be requested by Agent in its reasonable discretion; and

     (iv) a report describing outstanding Equipment Inventory rentals for such period and
the Equipment Inventory subject thereto.

	(b)	 	To Agent, on a monthly basis or at such more frequent intervals as Agent may request from
time to time (together with a copy of all or any part of such delivery requested by any Lender
in writing after the Closing Date), collateral reports with respect to such Borrower,
including all additions and reductions (cash and non-cash) with respect to Accounts and
Rentals of such Borrower, in each case accompanied by such supporting detail and documentation
as shall be requested by Agent in its reasonable discretion each of which shall be prepared by
such Borrower as of the last day of the immediately preceding week or the date two (2) days
prior to the date of any such request;

F-1

 

	(c)	 	To Agent, (x) in the case of clauses (i), (iii) and (iv), at the time of delivery of each of
the monthly Financial Statements delivered pursuant to Annex E and (y) in the case of
clause (ii), promptly upon request:

     (i) a reconciliation of the Accounts trial balance of such Borrower to such Borrower’s
most recent Borrowing Base Certificate, general ledger and monthly Financial Statements
delivered pursuant to Annex E, in each case accompanied by such supporting detail
and documentation as shall be requested by Agent in its reasonable discretion;

     (ii) a reconciliation of the perpetual inventory by branch location of such Borrower to
such Borrower’s most recent Borrowing Base Certificate, general ledger and monthly Financial
Statements delivered pursuant to Annex E, in each case accompanied by such
supporting detail and documentation as shall be requested by Agent in its reasonable
discretion;

     (iii) an aging of accounts payable and a reconciliation of that accounts payable aging
to such Borrower’s general ledger and monthly Financial Statements delivered pursuant to
Annex E, in each case accompanied by such supporting detail and documentation as
shall be requested by Agent in its reasonable discretion; and

     (iv) a reconciliation of the outstanding Loans as set forth in the monthly loan
statement provided by Agent to such Borrower’s general ledger and monthly Financial
Statements delivered pursuant to Annex E, in each case accompanied by such
supporting detail and documentation as shall be requested by Agent in its reasonable
discretion;

	(d)	 	To Agent, promptly upon Agent’s request, (i) a listing of government contracts of such
Borrower subject to the Federal Assignment of Claims Act of 1940; and (ii) a list of any
applications for the registration of any Patent, Trademark or Copyright filed by any Credit
Party with the United States Patent and Trademark Office, the United States Copyright Office
or any similar office or agency in the prior Fiscal Quarter;

	(e)	 	At its own expense and promptly upon Agent’s request, to Agent the results of each physical
verification, if any, that such Borrower or any of its Subsidiaries may in their discretion
have made, or caused any other Person to have made on their behalf, of all or any portion of
their Parts and Tools Inventory or Equipment Inventory (and, if an Event of Default has
occurred and is continuing, such Borrower shall, upon the request of Agent, conduct, and
deliver the results of, such physical verifications as Agent may require);

	(f)	 	At its own expense, to Agent monthly, a fleet utilization report for such Borrower, prepared
on a “units rented” basis, or on such other basis or format as is reasonably acceptable to the
Agent;

	(g)	 	At its own expense, to Agent the Equipment Inventory Appraisal for such Borrower, the P&E
Appraisal and such other appraisals of its assets as Agent may request at any time after the
occurrence and during the continuance of a Default or an Event of Default, such appraisals to
be conducted by an appraiser, and in form and substance, reasonably satisfactory to Agent; and

F-2

 

	(h)	 	To agent, on a weekly basis at any time when Excess Availability is less than $40,000,000, the schedule set forth as
Exhibit F, updated from the most recent Borrowing Base Certificate
delivered to Agent, but updated only for the following items:
(i) accounts receivable per  aging, (ii) 100% of net book value of rental fleet, (iii) new inventory per perpetual,
(iv) used inventory per perpetual, (v) parts and tools inventory per
perpetual and (vi) gross rolling stock.
	 
	(i)	 	Such other reports, statements and reconciliations with respect to the Borrowing Base,
Collateral or Obligations of such Borrower or any other Credit Party as Agent shall from time
to time request in its reasonable discretion.

Promptly after receipt thereof, Agent will distribute the items set
forth in the foregoing clauses
(a), (c), (g) and (h) to the Lenders (which distribution may be made via posting to
Intralinks® or any
other E-System approved by or set up by or at the direction of
Agent). Promptly after request therefor by any lender, Agent will
distribute any of the other items received pursuant to this Annex F to
such Lender (which distribution may be made via posting to
Intralinks® or any other E–System approved by or set up by at
the direction of Agent).

F-3

 

ANNEX G (Section 6.10)

to

CREDIT AGREEMENT

FINANCIAL COVENANTS

Neither H&E Delaware nor any Subsidiary thereof shall breach or fail to comply with any of the
following financial covenants, each of which shall be calculated in accordance with GAAP
consistently applied:

	(a)	 	Minimum Fixed Charge Coverage Ratio

	 	 	So long as a Covenant Liquidity Event is continuing, H&E Delaware and its Subsidiaries shall
have on a consolidated basis at the end of each period of twelve (12) consecutive Fiscal
Months, a Fixed Charge Coverage Ratio for each such period (beginning with as to any
Covenant Liquidity Event, the period of twelve consecutive Fiscal Months ending with the
Fiscal Month for which financial statements have been delivered pursuant to Annex E
most recently prior to the occurrence or continuance of such Covenant Liquidity Event) of
not less than 1.10 to 1.00.

	(b)	 	Maximum Leverage Ratio

	 	 	So long as a Covenant Liquidity Event is continuing, H&E Delaware and its Subsidiaries shall
have on a consolidated basis at the end of each period of twelve (12) consecutive Fiscal
Months, a Leverage Ratio for each such period (beginning with as to any Covenant Liquidity
Event, the period of twelve consecutive Fiscal Months ending with the Fiscal Month for which
financial statements have been delivered pursuant to Annex E most recently prior to
the occurrence or continuance of such Covenant Liquidity Event) of not greater than 5.00 to
1.00.

G-1Exhibit 10.1

Exhibit 10.1

PERFORMANCE SHARE AGREEMENT

UNDER THE

PINNACLE WEST CAPITAL CORPORATION

2007 LONG-TERM INCENTIVE PLAN

THIS AWARD AGREEMENT is made and entered into as of
                    , 2010 (the “Date of
Grant”), by and between Pinnacle West Capital Corporation (the “Company”), and
                     (“Employee”).

BACKGROUND

	A.	 	The Board of Directors of the Company has adopted, and the Company’s shareholders have
approved, the Pinnacle West Capital Corporation 2007 Long-Term Incentive Plan (the “Plan”),
pursuant to which Performance Share Awards and Dividend Equivalent Awards may be granted to
employees of the Company and its Subsidiaries and certain other individuals.

	B.	 	The Company desires to grant to Employee a Performance Share Award and the related Dividend
Equivalent Award under the terms of the Plan.

	C.	 	Pursuant to the Plan, the Company and Employee agree as follows:

AGREEMENT

	 	1.	 	Grant of Award. Pursuant to action of the Committee, which was taken
on the Date of Grant, the Company grants to Employee                     (          )
Performance
Shares and Dividend Equivalents. The Performance Shares granted under this Section 1
are referred to in this Award Agreement as the “Base Grant.”

	 	2.	 	Award Subject to Plan. This Performance Share Award and the related
Dividend Equivalent Award are granted under and are expressly subject to all of the
terms and provisions of the Plan, which terms are incorporated herein by reference, and
this Award Agreement.

	 	3.	 	Performance Period. The Performance Period for this Award begins
January 1, 2010 and ends December 31, 2012.

	 	4.	 	Payment.

	 	(a)	 	Performance Shares Payable In Stock. As soon as
practicable in the fiscal year immediately following the end of the Performance
Period, the Company will determine (i) the Company’s Total Shareholder Return
(as defined herein) as compared to the Total Shareholder Return of the
companies in the S&P 1500 Super Composite Electric Utility Index (the
“Growth Index”) over the Performance Period and (ii) the Company’s
Average Performance with respect to the Performance Metrics (as defined
herein). The Company will then deliver to Employee one (1) share of the
Company’s Stock for each then-outstanding Performance Share under this Award
Agreement, subject to adjustment pursuant to Section 5 below. The
Company anticipates that the Stock payout, if any, related to the Company’s
Total Shareholder Return will be made on or about January 25, 2013. The
Company anticipates that the Stock payout, if any, related to the Performance
Metrics will be made on or about November 30, 2013. In no event will the Stock
payouts described in this Subsection 5(a) be made later than December
31, 2013.

 

 

 

	 	(b)	 	Retirement. In the case of Employee’s Retirement (as
defined herein) during the Performance Period, Employee shall be deemed to have
been employed by the
Company through the end of the Performance Period and Employee will receive
the Stock and Dividend Equivalents, if any, to which Employee is entitled at
the time specified in this Section. For purposes of this Award Agreement,
“Retirement” means a termination of employment which constitutes an
“Early Retirement” or a “Normal Retirement” under the
Pinnacle West Capital Corporation Retirement Plan.

	 	(c)	 	Dividend Equivalents. In satisfaction of the Dividend
Equivalents Award made pursuant to Section 1, at the time of the
Company’s delivery of Stock to Employee pursuant to Subsection 4(a)
above, the Company also will deliver to Employee fully transferrable shares of
stock equal in value to the amount of dividends, if any, that Employee would
have received if Employee had directly owned the Stock to which the Performance
Shares relate from the Date of Grant to the date of the Stock payout, plus
interest on such amount at the rate of 5 percent compounded quarterly, as
determined pursuant to the Plan. The number of shares of Stock distributed to
Employee will be determined by dividing the amount due by the Fair Market Value
of one share of Stock as of the date of the Stock payout.

	 	5.	 	Performance Criteria and Adjustments. Fifty percent (50%) of the
Performance Shares awarded under this Award Agreement will be determined pursuant to
Section 5(a) and fifty percent (50%) of the Performance Shares awarded under this Award
Agreement will be determined pursuant to Section 5(b). In no event will Employee be
entitled to receive a number of Performance Shares pursuant to this Award Agreement
greater than 2.0 times the Base Grant.

	 	(a)	 	Adjustment of Base Grant for Total Shareholder Return.
Fifty percent (50%) of the Base Grant will increase or decrease based upon the
Company’s “Total Shareholder Return” as compared to the Total Shareholder
Return of the companies in the Growth Index during the Performance Period, as
follows:

	 	 	 
	If the Company’s Total Shareholder Return Over The	 	 
	Performance Period As Compared to the Total	 	The Number of
	Shareholder Return of the Companies in the Growth	 	Performance Shares will
	Index is:	 	be:
	90th Percentile or greater
	 	1.0 X Base Grant
	75th Percentile
	 	.75 X Base Grant
	50th Percentile
	 	0.5 X Base Grant
	25th Percentile
	 	0.25 X Base Grant
	Less than 25th Percentile
	 	None

If intermediate percentiles are achieved, the number of Performance
Shares awarded will be prorated (partial shares will be rounded down to the
nearest whole share when applicable). For example, if the Company’s Total
Shareholder Return during the Performance Period places the Company’s
performance in the 60th percentile, then the number of Performance Shares
would be increased to 0.60 (0.5 X 60/50) multiplied by the Base Grant. In no
event will Employee be entitled to receive a number of Performance Shares
pursuant to this Subsection 5(a) greater than 1.0 times the Base
Grant.

 

2

 

	 	(b)	 	Adjustment of Base Grant for Performance Metrics.
Fifty percent (50%) of the Base Grant will increase or decrease based upon the
Company’s “Average Performance” with respect to the “Performance Metrics,” as
follows:

	 	 	 
	 	 	The Number of
	 	 	Performance Shares will
	If the Company’s Average Performance is:	 	be:
	90th Percentile or greater
	 	1.0 X Base Grant
	75th Percentile
	 	.75 X Base Grant
	50th Percentile
	 	0.5 X Base Grant
	25th Percentile
	 	0.25 X Base Grant
	Less than 25th Percentile
	 	None

If intermediate percentiles are achieved, the number of Performance
Shares awarded pursuant to this Subsection 5(b) will be prorated
(partial shares will be rounded down to the nearest whole share when
applicable). For example, if the Company’s Average Performance during the
Performance Period places the Company’s performance in the 60th percentile,
then the number of Performance Shares would be increased to .60 (0.5 X 60/50)
multiplied by the Base Grant. In no event will Employee be entitled to
receive a number of Performance Shares pursuant to this Subsection
(b) greater than 1.0 times the Base Grant.

	 	6.	 	Definitions.

	 	(a)	 	Performance Metrics. The “Performance Metrics”
for the Performance Period are (i) the JD Power Residential Survey for
investor-owned utilities in the Western Region; (ii) the System Average
Interruption Frequency Index (Major Events Excluded) (“SAIFI”); (iii)
Arizona Public Service Company’s customer to employee improvement ratio; (iv)
the OSHA rate (All Incident Injury Rate); (v) nuclear capacity factor; and (vi)
coal capacity factor.

	 	(1)	 	With respect to the Performance Metric described
in clause (i) of this Subsection 6(a), the JD Power
Residential Survey will provide data on an annual basis reflecting the
Company’s percentile ranking, relative to other participating companies.

	 	(2)	 	With respect to the Performance Metric described
in clause (ii) of this Subsection 6(a), the Edison
Electric Institute (“EEI”) will provide on an annual basis the
quartile rankings (or percentile rankings, if available) associated with
the SAIFI result of the participating companies; the Company will
determine its SAIFI result for the year in question and determine its
quartile ranking (or percentile ranking, if percentile rankings are
available) based on the information provided by EEI.

	 	(3)	 	With respect to the Performance Metric described
in clause (iii) of this Subsection 6(a), SNL, an
independent third party data system, will provide data on an annual
basis regarding the customer and employee counts; the Company will use
its customer and employee counts for the year in question and determine
its percentile ranking based on the information provided by SNL. Only
those companies whose customers and employees were included in the data
provided by SNL in each of the years of the Performance Period will be
considered.

	 	(4)	 	With respect to the Performance Metric described
in clause (iv) of this Subsection 6(a), EEI will provide
data on an annual basis regarding the OSHA rate of the participating
companies; the Company will calculate its OSHA rate for the year in
question and determine its percentile ranking based on the information
provided by EEI.

 

3

 

	 	(5)	 	With respect to the Performance Metric described
in clause (v) of this Subsection 6(a), SNL will provide
data on an annual basis regarding the nuclear capacity factors of the
participating nuclear plants; the Company will calculate its nuclear
capacity factor for the year in question and determine its percentile
ranking based on the information provided by SNL. Only those plants
that were included in the data provided by SNL in each of the years of
the Performance Period will be considered.

	 	(6)	 	With respect to the Performance Metric described
in clause (vi) of this Subsection 6(a), SNL will provide
data on an annual basis regarding the coal capacity factors of the
participating coal plants; the Company will calculate its coal capacity
factor for the year in question and determine its percentile ranking
based on the information provided by SNL. Only those plants that were
included in the data provided by SNL in each of the years of the
Performance Period will be considered.

	 	(7)	 	The Company’s percentile ranking during the
Performance Period for each Performance Metric will be the average of
the Company’s percentile ranking for each Performance Metric during each
of the three years of the Performance Period (each, an “Average
Performance Metric”); provided, however, that if a Performance
Metric for 2012 is not calculable by December 15, 2013, the Performance
Metric shall consist of the three most recent years for which such
Performance Metric is calculable. The Company’s “Average
Performance,” for purposes of determining any Base Grant adjustments
pursuant to Subsection 5(b) above will be the average of the
Average Performance Metrics. If only quartile, rather than percentile,
rankings are available for a particular Performance Metric, the Average
Performance Metric for any such Performance Metric shall be expressed as
a percentile. For example, if the Performance Metric was in the top
quartile for two Performance Periods and in the lowest quartile in the
other Performance Period, the average of these quartiles would be 3 (the
average of 4, 4, and 1) and the Average Performance Metric would be the
75th percentile (3 /4). The calculations in this
Subsection 6(a)(7) will be verified by the Company’s internal
auditors.

	 	(8)	 	If either EEI or SNL discontinues providing the
data specified above, the Committee shall select a data source that, in
the Committee’s judgment, will provide data most comparable to the data
provided by EEI or SNL, as the case may be. If the JD Power Residential
Survey for investor-owned utilities in the Western Region (or a
successor JD Power survey) is not available during each of the years of
the Performance Period, the Performance Metric associated with the JD
Power Residential Survey (Subsection 6(b)(1)) will be
disregarded and not included in the Company’s Average Performance for
purposes of determining any Base Grant adjustments pursuant to
Subsection 5(b).

	 	(b)	 	Total Shareholder Return. “Total Shareholder
Return” for the Performance Period is the measure of a company’s stock
price appreciation plus any dividends paid during the Performance Period. Only
those companies that were included in the Growth Index in each of the years of
the Performance Period will be considered. Total Shareholder Return for the
Company and the companies in the Growth Index will be determined using the
Daily Comparative Return as calculated by Bloomberg [or other independent third
party data system]. If the Growth Index is discontinued, the Committee shall
select the most comparable index then in use for the sector comparison. In
addition, if the sector comparison is no longer representative of the Company’s
industry or business, the Committee shall replace the Growth 

 

4

 

	 	 	 	Index with the
most representative index then in use. Once the Total Shareholder Returns of the Company and all relevant companies in the Growth
Index have been determined, the member companies will be ranked from greatest
to least. Percentiles will be calculated based on a company’s relative
ranking. For example, company 1 out of 26 companies is given a percentile of
96.2% (1.0 — 1/26). Percentiles will be carried out to one (1) decimal
place. If the Company is not in the Growth Index, then its percentile will
be interpolated between the companies listed in the relative ranking. These
calculations will be verified by the Company’s internal auditors.

	 	7.	 	Termination of Award. This Award Agreement will terminate and be of no
further force or effect on the date that Employee is no longer actively employed by the
Company or any of its Subsidiaries, whether due to voluntary or involuntary
termination, death, retirement, disability, or otherwise, except as specifically set
forth in Section 4. Employee will, however, be entitled to receive any Stock
and Dividend Equivalents payable under Section 4 of this Award Agreement if
Employee’s employment terminates after the end of the Performance Period but before
Employee’s receipt of such Stock and Dividend Equivalents.

	 	8.	 	Section 409A Compliance.

	 	(a)	 	Purpose of this Provision. Section 409A of the Code
imposes a number of requirements on “non-qualified deferred compensation” plans
and arrangements. Based on regulations issued by the Internal Revenue Service,
the Company has concluded that this Performance Share Award is subject to
Section 409A. As a result, unless the Plan and this Award Agreement are
administered to comply with the new rules, Employee will be required to pay an
additional 20% tax (in addition to regular income taxes) on the compensation
provided by this Award Agreement. In addition, under Section 409A additional
interest will be payable.

	 	(b)	 	Compliance with Section 409A. The Company intends to
comply with Section 409A by assuring that all amounts to which Employee becomes
entitled hereunder are payable at a specified time or pursuant to a fixed
schedule within the meaning of Treas. Reg. § 1.409A-3(a)(4). As a result, any
payment or transfer to Employee shall be made at the time specified in
Section 4. The provisions of this Subsection 8(b) apply to all amounts due
pursuant to this Award Agreement.

	 	(c)	 	Miscellaneous Payment Provisions. If a payment is not
made due to a dispute in payments, payments can be delayed in accordance with
Treas. Reg. § 1.409A-3(g).

	 	(d)	 	Ban on Acceleration or Deferral. Under no
circumstances may the time or schedule of any payment made or benefit provided
pursuant to this Award Agreement be accelerated or subject to a further
deferral except as otherwise permitted or required pursuant to regulations and
other guidance issued pursuant to Section 409A of the Code.

	 	(e)	 	No Elections. Employee does not have any right to make
any election regarding the time or form of any payment due under this Award
Agreement.

	 	(f)	 	Compliant Operation and Interpretation. The Plan and
this Award Agreement shall be administered in compliance with Section 409A and
each provision of the Award Agreement and the Plan shall be interpreted, to the
extent possible, to comply with Section 409A.

 

5

 

	 	9.	 	Tax Withholding. Any and all payments made pursuant to this Award
Agreement shall be subject to applicable tax withholding requirements and employment
taxes. Employee must pay, or make arrangements acceptable to the Company for the
payment of any and all
required federal, state, and local income and payroll tax withholding. Employee may
satisfy any such tax withholding obligation by paying the amount by check. In the
alternative, Employee may elect to have the Company withhold shares of Stock having
a Fair Market Value on the date of the Stock payout sufficient to cover the
withholding obligation. Within 
 _____ 

days after the Date of Grant, Employee must
elect, on the provided election form, to satisfy any tax withholding obligation by
paying the amount by check or by having the Company withhold shares of Stock having
a Fair Market Value on the date of the Stock payout sufficient to cover the
withholding obligation. In the absence of a timely election by Employee, Employee’s
withholding obligation will be satisfied through the Company’s withholding shares of
Stock as set forth above.

	 	10.	 	Continued Employment. Nothing in the Plan or this Award Agreement
shall be interpreted to interfere with or limit in any way the right of the Company to
terminate Employee’s employment or services at any time. In addition, nothing in the
Plan or this Award Agreement shall be interpreted to confer upon Employee the right to
continue in the employ or service of the Company.

	 	11.	 	Voting Rights. Employee is not entitled to voting rights with respect
to shares of Stock by virtue of this Award. Upon issuance of Stock in settlement of
Employee’s Performance Share Awards, Employee will have voting rights with respect to
such shares of Stock.

	 	12.	 	Non-Transferability. Neither this Award nor any rights under this
Award Agreement may be assigned, transferred, or in any manner encumbered except by
will or the laws of descent and distribution, and any attempted assignment, transfer,
mortgage, pledge or encumbrance except as herein authorized, will be void and of no
effect.

	 	13.	 	Definitions: Copy of Plan and Plan Prospectus. To the extent not
specifically defined in this Award Agreement, all capitalized terms used in this Award
Agreement will have the same meanings ascribed to them in the Plan. Employee will
receive a copy of the Plan and the related Plan Prospectus. In the event of any
conflict between the terms and conditions of this Award Agreement and the Plan, the
provisions of the Plan shall control.

	 	14.	 	Amendment. Except as otherwise provided in the Plan, this Award
Agreement may be amended only by a written agreement executed by the Company and
Employee.

	 	15.	 	Choice of Law. This Award Agreement will be governed by the laws of
the State of Arizona, excluding any conflicts or choice of law rule or principle that
might otherwise refer construction or interpretation of this Award Agreement to another
jurisdiction.

An authorized representative of the Company has signed this Award Agreement as of the Date of
Grant.

	 	 	 	 	 	 	 
	 

	 	PINNACLE WEST CAPITAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

 

6

 

Pinnacle West Capital Corporation

PERFORMANCE SHARE AWARD

ELECTION FORM

INFORMATION ABOUT YOU

	 	 	 	 	 	 	 
	Last
	 	First
	 	Middle Initial
	 	Employee ID#

TAX WITHHOLDING ELECTION

I hereby elect to satisfy any tax withholding obligation associated with my receipt of
Stock pursuant to my Performance Share Agreement in the following form (place an “X” in
the “Check” column or in the “Stock” column):

	 	 	 
	Check
	 	Stock
	(I will write a check for my taxes that are due and deliver it to the Company 

within one (1) day of the release of the Stock)
	 	(The Company should withhold shares

of my stock to cover my taxes)
	o
	 	o

	 	 	 	 	 	 	 
	To the extent permitted by law, I hereby elect
Federal tax withholding of            percent (minimum may
not be less than 25% and maximum may not exceed 35%)	 	 
	 
	 	 	 	 	 	 
	 

	 	 

PARTICIPANT NAME (PLEASE PRINT)
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	PARTICIPANT SIGNATURE
	 	 	 	DATE

			
	IMPORTANT NOTE:	 	Please complete and return this Election Form to Jennifer Pertner at Mail Station
9996 by __________, 2010.

 

7

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