Document:

Exhibit 10.1

 

Execution Version

 

 

$750,000,000

 

CONSOLIDATED COMMUNICATIONS, INC.

 

6.500% Senior Secured Notes due 2028

 

Purchase Agreement

September 18, 2020    

 

J.P. Morgan Securities LLC

As Representative of the

several Initial Purchasers listed

in Schedule 1 hereto

c/o J.P. Morgan Securities LLC

383 Madison Avenue

New York, New York 10179

 

Ladies and Gentlemen:

 

Consolidated Communications, Inc. (the “Company”),
a Delaware corporation and wholly owned subsidiary of Consolidated Communications Holdings, Inc. (“Consolidated”),
proposes to issue and sell to the several initial purchasers listed in Schedule 1 hereto (the “Initial Purchasers”),
for whom you are acting as representative (the “Representative”), $750,000,000 principal amount of its 6.500%
Senior Secured Notes due 2028 (the “Securities”). The Securities will be issued pursuant to an Indenture to
be dated as of October 2, 2020 (the “Indenture”), among the Company, the guarantors listed in Schedule 2 hereto
(the “Guarantors”) and Wells Fargo Bank, National Association, a national banking association, as trustee (the
“Trustee”) and as collateral agent (the “Collateral Agent”), and will be guaranteed on a
senior secured basis by each of the Guarantors (the “Guarantees”).

The Company and the Guarantors hereby confirm their agreement with the several Initial
Purchasers concerning the purchase and resale of the Securities, as follows:

		1.	Offering Memorandum and Transaction Information.

The Securities will be sold to the Initial Purchasers without
being registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon an exemption
therefrom. The Company and the Guarantors have prepared a preliminary offering memorandum dated September 14, 2020 (the “Preliminary
Offering Memorandum”) and will prepare an offering memorandum dated the date hereof (the “Offering Memorandum”)
setting forth or incorporating by reference information concerning the Company, the Guarantors and the Securities. Copies of the
Preliminary Offering Memorandum have been, and copies of the Offering Memorandum will be, delivered by the Company to the Initial
Purchasers pursuant to the terms of this purchase agreement (the “Agreement”). The Company hereby confirms that
it has authorized the use of the Preliminary Offering Memorandum, the other Time of Sale Information (as defined below) and the
Offering Memorandum in connection with the offering and resale of the Securities by the Initial Purchasers in the manner contemplated
by this Agreement. References herein to the Preliminary Offering Memorandum, the Time of Sale Information and the Offering Memorandum
shall be deemed to refer to and include any document incorporated by reference therein and any reference to “amend,”
“amendment” or “supplement” with respect to the Preliminary Offering Memorandum or the Offering Memorandum
shall be deemed to refer to and include any documents filed after such date and incorporated by reference therein. Capitalized
terms used but not defined herein shall have the meanings given to such terms in the Preliminary Offering Memorandum.

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At or prior to the time when sales of the Securities were first
made (the “Time of Sale”), the Company had prepared the following information (collectively, the “Time
of Sale Information”): the Preliminary Offering Memorandum, as supplemented and amended by the written communications
listed on Annex A hereto.

On September 13, 2020, Consolidated entered into that certain
Investment Agreement (the “Investment Agreement”), by and among Consolidated and Searchlight III CVL, L.P. (“Searchlight”),
pursuant to which, subject to certain regulatory approvals specified in the Investment Agreement, Searchlight has committed to
invest up to $425 million (the “Investment”) in Consolidated, which is expected to ultimately take the form
of preferred equity and common stock, such that Searchlight would own and control, directly or indirectly, 35.0% of Consolidated’s
outstanding common stock.

In connection with the Investment, and substantially concurrently
with the offering of the Securities, the Company intends to enter into a Credit Agreement (the “Credit Agreement”),
to be dated as of the Closing Date, among the Company, the Guarantors, the lenders party thereto, the other parties party thereto
and Wells Fargo, National Association, as administrative agent and as collateral agent, and to obtain (x) a $1,250.0 million senior
secured term loan facility (the “Term Loan Facility”) and (y) a $250 million senior secured revolving credit
facility (the “Revolving Credit Facility” and, together with the Term Loan Facility, the “Senior Secured
Credit Facilities”).

The Company intends to use the proceeds of the offering of the
Securities, together with the proceeds of the Term Loan Facility and the Investment, to repay all obligations under, and terminate
or discharge, as applicable, (i) the Third Amended and Restated Credit Agreement, dated October 5, 2016, among the Company, Consolidated,
Wells Fargo Bank, National Association, as administrative agent, Issuing Bank and Swingline Lender, and the other parties thereto
(as amended, supplemented or otherwise modified from time to time, the “Existing Credit Facilities”) and (ii)
the certain indenture, dated as of September 18, 2014, among the Company, Consolidated and Wells Fargo Bank, National Association,
as trustee (as amended, supplemented or otherwise modified from time to time, together with the Existing Credit Facilities, the
“Existing Indebtedness”), and to pay the fees and expenses in connection with the Investment by Searchlight
(the “Transactions”).

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The Securities and the Guarantees will be secured by a first-priority
lien, subject to Permitted Liens (as defined below), on substantially all of the tangible and intangible assets of the Company
and the Guarantors, now owned or hereafter acquired by the Company and any Guarantor, subject to certain exceptions as described
in the Indenture and the Collateral Documents (as defined below) (the “Collateral”) that will secure borrowings
under the Senior Secured Credit Facilities (as defined below). The Collateral shall be described in: (a) with respect to real property
listed on Schedule 4 hereto, to be delivered in accordance with the terms set forth in the Indenture (including the time periods
set forth therein), the mortgages, deeds of trust or deeds to secure debt (collectively, the “Mortgages”), (b)
with respect to personal property that constitutes Collateral, the Security Agreement to be dated as of the Closing Date (as defined
below) and entered into by the Company and the Guarantors (the “Security Agreement”) and (c) with respect to
the grants of security interests in registrations and/or applications for trademarks (and exclusive licenses in any of the foregoing),
in either the Security Agreement or in the Trademark Security Agreement, each to be dated as of the Closing Date and entered into
by each of the Company and the Guarantors, as provided therein (the “Trademark Security Agreement”), each to
be delivered to the Trustee, granting a first-priority security interest in the Collateral, subject to Permitted Liens, for the
benefit of the Trustee and Collateral Agent and each holder of the Securities and the successors and assigns of the foregoing.
The term “Collateral Documents,” as used herein, shall mean the Mortgages, the Security Agreement and the Trademark
Security Agreement. The rights of the holders of the Securities with respect to the Collateral shall be further governed by the
Intercreditor Agreement to be dated as of the Closing Date (the “Intercreditor Agreement”), among the Company,
the Guarantors, the Collateral Agent and the agent for the lenders under the Credit Agreement.

2.       Purchase and Resale
of the Securities.

(a)       The Company agrees
to issue and sell the Securities to the several Initial Purchasers as provided in this Agreement, and each Initial Purchaser,
on the basis of the representations, warranties and agreements set forth herein and subject to the conditions set forth herein,
agrees, severally and not jointly, to purchase from the Company the respective principal amount of Securities set forth opposite
such Initial Purchaser’s name in Schedule 1 hereto at a price equal to [REDACTED]% of the principal amount thereof
plus accrued interest, if any, from October 2, 2020 to the Closing Date. The Company will not be obligated to deliver any of the
Securities except upon payment for all the Securities to be purchased as provided herein.

(b)       The Company understands
that the Initial Purchasers intend to offer the Securities for resale on the terms set forth in the Time of Sale Information. Each
Initial Purchaser, severally and not jointly, represents, warrants and agrees that:

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(i)       it is a qualified
institutional buyer within the meaning of Rule 144A under the Securities Act (a “QIB”) and an accredited investor
within the meaning of Rule 501(a) of Regulation D under the Securities Act (“Regulation D”);

(ii)       it has not
solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Securities by means of any form
of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public
offering within the meaning of Section 4(a)(2) of the Securities Act; and

(iii)       it has not
solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Securities as part of their initial
offering except:

(A)       to persons whom
it reasonably believes to be QIBs in transactions pursuant to Rule 144A under the Securities Act (“Rule 144A”)
and in connection with each such sale, it has taken or will take reasonable steps to ensure that the purchaser of the Securities
is aware that such sale is being made in reliance on Rule 144A; or

(B)       in accordance
with the restrictions set forth in Annex C hereto outside of the United States.

(c)       Each Initial Purchaser
acknowledges and agrees that the Company and, for purposes of the “no registration” opinions to be delivered to the
Initial Purchasers pursuant to Sections 6(f) and 6(i), counsel for the Company and counsel for the Initial Purchasers, respectively,
may rely upon the accuracy of the representations and warranties of the Initial Purchasers, and compliance by the Initial Purchasers
with their agreements, contained in paragraph (b) above (including Annex C hereto), and each Initial Purchaser hereby consents
to such reliance.

(d)       The Company acknowledges
and agrees that the Initial Purchasers may offer and sell Securities to or through any affiliate of an Initial Purchaser and that
any such affiliate may offer and sell Securities purchased by it to or through any Initial Purchaser; provided that such offers
and sales are not prohibited by the terms of this Agreement.

(e)       Payment
for and delivery of the Securities will be made at the offices of Cahill Gordon & Reindel LLP at
10:00 A.M., New York City time, on October 2, 2020, or at such other time or place on the same or such other date, not later than
the fifth business day thereafter, as the Representative and the Company may agree upon in writing. The time and date of such payment
and delivery is referred to herein as the “Closing Date.”

(f)       Payment for the Securities
shall be made by wire transfer in immediately available funds to the account(s) specified by the Company to the Representative
against delivery to the nominee of The Depository Trust Company (“DTC”), for the account of the Initial Purchasers,
of one or more global notes representing the Securities (collectively, the “Global Note”), with any transfer
taxes payable in connection with the sale of the Securities duly paid by the Company. The Global Note will be made available for
inspection by the Representative not later than 1:00 P.M., New York City time, on the business day prior to the Closing Date.

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(g)       The Company and the
Guarantors acknowledge and agree that each Initial Purchaser is acting solely in the capacity of an arm’s length contractual
counterparty to the Company and the Guarantors with respect to the offering of Securities contemplated hereby (including in connection
with determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Company, the
Guarantors or any other person. Additionally, neither the Representative nor any other Initial Purchaser is advising the Company,
the Guarantors or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction. The
Company and the Guarantors shall consult with their own advisors concerning such matters and shall be responsible for making their
own independent investigation and appraisal of the transactions contemplated hereby, and the Initial Purchasers shall have no responsibility
or liability to the Company or the Guarantors with respect thereto. Any review by the Representative or any Initial Purchaser of
the Company, the Guarantors, and the transactions contemplated hereby or other matters relating to such transactions will be performed
solely for the benefit of the Representative or such Initial Purchaser, as the case may be, and shall not be on behalf of the Company,
the Guarantors or any other person.

3.       Representations
and Warranties of the Company and the Guarantors. The Company and the Guarantors jointly and severally represent and warrant
to each Initial Purchaser that:

(a)          Preliminary
Offering Memorandum, Time of Sale Information and Offering Memorandum. The Preliminary Offering Memorandum, as of its date,
did not, the Time of Sale Information, at the Time of Sale, did not, and at the Closing Date, will not, and the Offering Memorandum,
in the form first used by the Initial Purchasers to confirm sales of the Securities and as of the Closing Date, will not, contain
any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading; provided that the Company and the Guarantors
make no representation or warranty with respect to any statements or omissions made in reliance upon and in conformity with information
relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representative expressly
for use in the Preliminary Offering Memorandum, the Time of Sale Information or the Offering Memorandum.

(b)          Additional
Written Communications. The Company and the Guarantors (including their agents and representatives, other than the Initial
Purchasers in their capacity as such) have not prepared, made, used, authorized, approved or referred to and will not prepare,
make, use, authorize, approve or refer to any written communication that constitutes an offer to sell or solicitation of an offer
to buy the Securities (each such communication by the Company and the Guarantors or their agents and representatives (other than
a communication referred to in clauses (i) and (ii) below) an “Issuer Written Communication”) other than (i)
the Preliminary Offering Memorandum, (ii) the Offering Memorandum, (iii) the documents listed on Annex A hereto, including a term
sheet substantially in the form of Annex B hereto, which constitute part of the Time of Sale Information and (iv) any electronic
road show or other written communications, in each case used in accordance with Section 4(c) hereof. Each such Issuer Written Communication,
when taken together with the Time of Sale Information at the Time of Sale, did not, and at the Closing Date will not, contain any
untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided that the Company and the Guarantors make
no representation or warranty with respect to any statements or omissions made in each such Issuer Written Communication in reliance
upon and in conformity with information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser
through the Representative expressly for use in any Issuer Written Communication.

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(c)          Incorporated
Documents. The documents incorporated by reference in each of the Time of Sale Information and the Offering Memorandum, when
they were filed with the Securities and Exchange Commission (the “Commission”), conformed or will conform, as
the case may be, in all material respects to the requirements of the Exchange Act, and the rules and regulations of the Commission
thereunder, and when filed did not and will not, as the case may be, contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

(d)          Financial
Statements. The financial statements and the related notes thereto included or incorporated by reference in each of the Time
of Sale Information and the Offering Memorandum present fairly in all material respects the consolidated financial position of
Consolidated and its subsidiaries as of the dates indicated and the results of their operations and the changes in their cash flows
for the periods specified; such financial statements have been prepared in all material respects in conformity with U.S. generally
accepted accounting principles (“GAAP”) applied on a consistent basis throughout the periods covered thereby;
and the other financial information included or incorporated by reference in each of the Time of Sale Information and the Offering
Memorandum with respect to the Company and its subsidiaries has been derived from the accounting records of Consolidated and its
subsidiaries and presents fairly the information shown thereby. The interactive data in eXtensible Business Reporting Language
included or incorporated by reference in each of the Preliminary Offering Memorandum, the Time of Sale Information and the Offering
Memorandum with respect to the Company and its subsidiaries fairly presents the information called for in all material respects
and is prepared in accordance with the Commission’s rules and guidelines applicable thereto.

(e)          No
Material Adverse Change. Since the date of the most recent financial statements of Consolidated included or incorporated by
reference in each of the Time of Sale Information and the Offering Memorandum (i) there has not been any change in the capital
stock or long-term debt of Consolidated or any of its subsidiaries, or any dividend or distribution of any kind declared, set aside
for payment, paid or made by Consolidated on any class of capital stock, or any material adverse change, or any development involving
a prospective material adverse change, in or affecting the business, properties, management, financial position or results of operations
of Consolidated and its subsidiaries taken as a whole; (ii) neither Consolidated nor any of its subsidiaries has entered into any
transaction or agreement that is material to Consolidated and its subsidiaries taken as a whole or incurred any liability or obligation,
direct or contingent, that is material to Consolidated and its subsidiaries taken as a whole; and (iii) neither Consolidated nor
any of its subsidiaries has sustained any material loss or interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any court
or arbitrator or governmental or regulatory authority, except in each case as otherwise disclosed in each of the Time of Sale Information
and the Offering Memorandum.

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(f)          
Organization and Good Standing. Consolidated and each of its subsidiaries have been duly organized and are validly existing
and in good standing (to the extent applicable in such jurisdiction) under the laws of their respective jurisdictions of organization,
are duly qualified to do business and are in good standing (to the extent applicable in such jurisdiction) in each jurisdiction
in which their respective ownership or lease of property or the conduct of their respective businesses as currently conducted requires
such qualification, and have all power and authority necessary to own or hold their respective properties and to conduct the businesses
in which they are engaged, except where the failure to be so qualified, in good standing or have such power or authority would
not, individually or in the aggregate, have a material adverse effect on the business, properties, management, financial position,
or results of operations of Consolidated and its subsidiaries taken as a whole or on the performance by the Company and the Guarantors
of their obligations under this Agreement, the Securities, the Guarantees and the Collateral Documents (a “Material Adverse
Effect”). Consolidated does not own or control, directly or indirectly, any corporation, association or other entity
other than the subsidiaries listed in Schedule 3 to this Agreement.

(g)          Capitalization.
Consolidated has the capitalization as set forth in each of the Time of Sale Information and the Offering Memorandum under the
heading “Capitalization”; and all the outstanding shares of capital stock or other equity interests of each subsidiary
of Consolidated have been duly and validly authorized and issued, are fully paid and non-assessable and are owned directly or indirectly
by Consolidated, free and clear of any lien, charge, encumbrance, security interest, restriction on voting or transfer or any other
claim of any third party (collectively, “Liens”), except (i) for Liens pursuant to the Existing Credit Facilities,
which will be fully repaid and terminated upon consummation of the Transactions on the Closing Date, as described in each of the
Time of Sale Information and the Offering Memorandum.

(h)          Due
Authorization. The Company and each of the Guarantors have full right, power and authority to execute and deliver this Agreement,
the Securities, the Indenture (including each Guarantee set forth therein), each of the Collateral Documents to the extent a party
thereto, the Intercreditor Agreement and the Credit Agreement (collectively, the “Transaction Documents”), including
granting the Liens and security interests to be granted by it pursuant to the Indenture and the Collateral Documents and to perform
their respective obligations hereunder and thereunder; and all action required to be taken by the Company and each of the Guarantors
for the due and proper authorization, execution and delivery of each of the Transaction Documents and the consummation of the transactions
contemplated thereby has been duly and validly taken.

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(i)           
The Indenture. The Indenture has been duly authorized by the Company and each of the Guarantors and on the Closing Date
will be duly executed and delivered by the Company and each of the Guarantors and, when duly authorized, executed and delivered
in accordance with its terms by each of the parties thereto, will constitute a valid and legally binding agreement of the Company
and each of the Guarantors enforceable against the Company and each of the Guarantors in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to enforceability (collectively, the “Enforceability Exceptions”);
and on the Closing Date the Indenture will conform in all material respects to the applicable requirements of the Trust Indenture
Act of 1939, as amended, and the rules and regulations of the Commission thereunder (collectively, the “Trust Indenture
Act”).

(j)           
The Securities and the Guarantees. The Securities have been duly authorized by the Company and, when duly executed, authenticated,
issued and delivered as provided in the Indenture and paid for as provided herein, will be duly and validly issued and outstanding
and will constitute valid and legally binding obligations of the Company enforceable against the Company in accordance with their
terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture; and the Guarantees have
been duly authorized by each of the Guarantors and, when the Securities have been duly executed, authenticated, issued and delivered
as provided in the Indenture and paid for as provided herein, will be valid and legally binding obligations of each of the Guarantors,
enforceable against each of the Guarantors in accordance with their terms, subject to the Enforceability Exceptions, and will be
entitled to the benefits of the Indenture.

(k)          Purchase
Agreement.  This Agreement has been duly authorized, executed and delivered by the Company and each of the Guarantors.

(l)           
Credit Agreement. On the Closing Date, the Credit Agreement will have been duly authorized, executed and delivered by the
Company and each of the Guarantors and will constitute a valid and legally binding agreement of the Company and each of the Guarantors,
enforceable against the Company and each of the Guarantors in accordance with its terms, subject to the Enforceability Exceptions.

(m)        Intercreditor
Agreement. The Intercreditor Agreement has been duly authorized by the Company and each of the Guarantors, to the extent a
party thereto, and on the Closing Date, the Intercreditor Agreement will be duly executed and delivered by the Company and each
of the Guarantors, to the extent a party thereto, and, when duly authorized, executed and delivered in accordance with its terms
by each of the parties thereto, will constitute a valid and legally binding agreement of the Company and each of the Guarantors,
to the extent a party thereto, enforceable against the Company and each of the Guarantors, to the extent a party thereto, in accordance
with its terms, subject to the Enforceability Exceptions.

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(n)          Collateral
Documents. Each of the Collateral Documents has been, or prior to its execution and delivery will be, duly authorized by the
Company and each of the Guarantors, to the extent a party thereto and, assuming the due authorization, execution and delivery thereof
by the other parties thereto, when executed and delivered by the Company and each of the Guarantors, to the extent a party thereto,
will constitute a valid and legally binding agreement of the Company and each of the Guarantors enforceable against the Company
and each of the Guarantors, to the extent a party thereto, in accordance with its terms, subject to the Enforceability Exceptions.

(o)          Descriptions
of the Transaction Documents; Collateral. Each Transaction Document conforms in all material respects to the description thereof
contained in each of the Time of Sale Information and the Offering Memorandum. The Collateral conforms in all material respects
to the description thereof contained in each of the Time of Sale Information and the Offering Memorandum.

(p)          Financing
Statements and Collateral. After giving effect to the repayment and termination of the Existing Credit Facilities:

		(i)	Upon execution and delivery, the Mortgages will be effective to grant a legal, valid and enforceable mortgage lien or security
title and security interest on all of the mortgagor’s right, title and interest in the real property listed on Schedule 4
hereto (each, a “Mortgaged Property” and, collectively, the “Mortgaged Properties”). When
the Mortgages are duly recorded in the proper recorders’ offices or appropriate public records and the mortgage recording
fees and taxes in respect thereof are paid and compliance is otherwise had with the formal requirements of state law, applicable
to the recording of real estate mortgages generally, each such Mortgage shall constitute a validly perfected and enforceable first-priority
lien or security title and security interest in the related Mortgaged Property constituting Collateral for the benefit of the Trustee
and the holders of the Securities, subject only to Permitted Liens (as defined below) or liens and encumbrances expressly set forth
as an exception to the policies of title insurance, if any, obtained to insure the lien of each Mortgage with respect to each of
the Mortgaged Properties (such encumbrances and exceptions, the “Permitted Exceptions”), and to the Enforceability
Exceptions;

		(ii)	Upon execution and delivery, the Security Agreement and the Trademark Security Agreement will together be effective to grant
a legal, valid and enforceable security interest in all of the grantor’s right, title and interest in the Collateral (other
than the Mortgaged Properties);

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		(iii)	Upon due and timely filing and/or recording of the financing statements and the Trademark Security Agreement, with respect
to the Collateral described in the Security Agreement and the Trademark Security Agreement (the “Personal Property Collateral”),
the security interests granted thereby will constitute valid, perfected first-priority liens and security interests in the Personal
Property Collateral, to the extent such security interests can be perfected by the filing and/or recording, as applicable, of financing
statements or filings with the United States Patent and Trademark Office for the benefit of the Trustee and the holders of the
Securities, and such security interests will be enforceable in accordance with the terms contained therein against all creditors
of any grantor and subject only to liens expressly permitted to be incurred or exist on the Collateral under the Indenture (“Permitted
Liens”); and

		(iv)	Consolidated and its subsidiaries collectively own, have rights in or have the power and authority to collaterally assign rights
in the Collateral, free and clear of any liens other than the Permitted Exceptions and the Permitted Liens.

(q)          No
Violation or Default. Neither Consolidated nor any of its subsidiaries is (i) in violation of its charter or by-laws or
similar organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which Consolidated or any of its subsidiaries is a
party or by which Consolidated or any of its subsidiaries is bound or to which any property or asset of Consolidated or any of
its subsidiaries is subject; or (iii) in violation of any law or statute or any judgment, order, rule or regulation of any court
or arbitrator or governmental or regulatory authority, except, in the case of clauses (ii) and (iii) above, for any such default
or violation that would not, individually or in the aggregate, have a Material Adverse Effect.

(r)          
No Conflicts. The execution, delivery and performance by the Company and each of the Guarantors of each of the Transaction
Documents to which each is a party (including, but not limited to, the filing of any applicable fixture filings relating to the
real property covered by the Mortgages, the filing of any applicable financing statements pursuant to the Security Agreement or
the filing of the Trademark Security Agreement), the issuance and sale of the Securities and the issuance of the Guarantees, the
grant and perfection of liens and security interests in the Collateral pursuant to the Mortgages, the Security Agreement and the
Trademark Security Agreement and compliance by the Company and each of the Guarantors with the terms thereof and the consummation
of the transactions contemplated by the Transaction Documents will not (i) conflict with or result in a breach or violation of
any of the terms or provisions of, or constitute a default under, result in the termination, modification or acceleration of, or
result in the creation or imposition of any lien, charge or encumbrance upon any property, right or asset of Consolidated or any
of its subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which
Consolidated or any of its subsidiaries is a party or by which Consolidated or any of its subsidiaries is bound or to which any
property, right or asset of Consolidated or any of its subsidiaries is subject (other than any lien, charge or encumbrance created
or imposed pursuant to the Collateral Documents or the collateral documents relating to the Credit Agreement), (ii) result in any
violation of the provisions of the charter or by-laws or similar organizational documents of Consolidated or any of its subsidiaries
or (iii) result in the violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or
governmental or regulatory authority, except, (A) in the case of clauses (i) and (iii) above, for any such conflict, breach, violation,
default, lien, charge or encumbrance that would not, individually or in the aggregate, have a Material Adverse Effect and (B) in
the case of clause (i) above after giving effect to the repayment and termination of the Existing Indebtedness.

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(s)          No
Consents Required. Assuming the accuracy of the representations and warranties of the Initial Purchasers contained herein and
each Initial Purchaser’s compliance with its respective agreements contained herein, no consent, approval, authorization,
order, registration or qualification of or with any court or arbitrator or governmental or regulatory authority is required for
the execution, delivery and performance by the Company and each of the Guarantors of each of the Transaction Documents to which
each is a party (including, but not limited to, the filing of any applicable fixture filings relating to the real property covered
by the Mortgages, the filing of any applicable financing statements pursuant to the Security Agreement or the filing of the Trademark
Security Agreement), the issuance and sale of the Securities and the issuance of the Guarantees, the grant and perfection of liens
and security interests in the Collateral pursuant to the Mortgages, the Security Agreement and the Trademark Security Agreement
and compliance by the Company and each of the Guarantors with the terms thereof and the consummation of the transactions contemplated
by the Transaction Documents, except for such consents, approvals, authorizations, orders and registrations or qualifications as
may be required (i) under applicable state securities laws in connection with the purchase and resale of the Securities by the
Initial Purchasers and (ii) to perfect the Trustee’s or the Collateral Agent’s security interests granted pursuant
to the Mortgages, the Security Agreement and the Trademark Security Agreement.

(t)          
Legal Proceedings. Except as described in each of the Time of Sale Information and the Offering Memorandum, there are no
legal, governmental or regulatory investigations, actions, demands, claims, suits, arbitrations, inquiries or proceedings (“Actions”)
pending to which Consolidated or any of its subsidiaries is a party or to which any property of Consolidated or any of its subsidiaries
is the subject that, individually or in the aggregate, if determined adversely to Consolidated or any of its subsidiaries, could
reasonably be expected to have a Material Adverse Effect; and, to the knowledge of the Company and each of the Guarantors, no such
Actions are threatened or contemplated by any governmental or regulatory authority or threatened by others.

(u)          Independent
Accountants. Ernst & Young LLP, who have certified certain financial statements of Consolidated and its subsidiaries are
independent public accountants with respect to Consolidated and its subsidiaries within the applicable rules and regulations adopted
by the Commission and the Public Company Accounting Oversight Board (United States) and as required by the Securities Act.

    	 	11	 

     

    

(v)          Title
to Real and Personal Property. Consolidated and its subsidiaries have good and marketable title in fee simple to, or have valid
rights to lease or otherwise use, all items of real and personal property that are described in or referred to in the Mortgages
and all other real and personal property that are material to the respective businesses of Consolidated and its subsidiaries, in
each case free and clear of all liens, charges, encumbrances, claims and defects and imperfections of title except for Permitted
Exceptions, in the case of Mortgaged Properties, and, in the case of all other real and personal property, those that (i) do not
materially interfere with the use made and proposed to be made of such property by Consolidated and its subsidiaries, (ii) could
not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect or (iii) that secure the Existing
Credit Facilities, which liens, charges, encumbrances and claims will be released substantially contemporaneously with the issuance
of the Securities on the Closing Date. None of Consolidated or its subsidiaries own or control, directly or indirectly any other
fee interest in real property with a fair market value in excess of $3 million, other than the real property listed on Schedule
4 to this Agreement.

(w)         Intellectual
Property. Except as would not, individually or in the aggregate, to have a Material Adverse Effect (i) Consolidated and its
subsidiaries own or have the right to use all patents, patent applications, trademarks, service marks, trade names, trademark registrations,
service mark registrations, domain names and other source indicators, copyrights and copyrightable works, know-how, trade secrets,
systems, procedures, proprietary or confidential information and all other worldwide intellectual property, industrial property
and proprietary rights (collectively, “Intellectual Property”) used in the current conduct of their respective
businesses; (ii) Consolidated and its subsidiaries’ conduct of their respective businesses as now conducted does not infringe,
misappropriate or otherwise violate any Intellectual Property of any person; (iii) Consolidated and its subsidiaries have not received
any written notice of any claim of infringement relating to Intellectual Property; and (iv) to the knowledge of the Company and
any Guarantor, the Intellectual Property of Consolidated and its subsidiaries is not being infringed, misappropriated or otherwise
violated by any person.

(x)          No
Undisclosed Relationships. No relationship, direct or indirect, exists between or among Consolidated or any of its subsidiaries,
on the one hand, and the directors, officers, stockholders, customers, suppliers or other affiliates of Consolidated or any of
its subsidiaries, on the other, that would be required by the Securities Act to be described in a registration statement on Form
S-1 to be filed with the Commission and that is not so described in each of the Time of Sale Information and the Offering Memorandum.

(y)          Investment
Company Act. Neither the Company nor any of the Guarantors is, and after giving effect to the offering and sale of the Securities
and the application of the proceeds thereof as described in each of the Time of Sale Information and the Offering Memorandum, none
of them will be, an “investment company” or an entity “controlled” by an “investment company”
within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder
(collectively, the “Investment Company Act”).

    	 	12	 

     

    

(z)          Taxes.
Consolidated and its subsidiaries have paid all federal, state, local and foreign taxes and filed all tax returns required to be
paid or filed through the date hereof or have requested extensions thereof (except where the failure to file or pay would not have
a Material Adverse Effect, or except as currently being contested in good faith and for which reserves required by GAAP have been
created in the financial statements of Consolidated); and except as otherwise disclosed in each of the Time of Sale Information
and the Offering Memorandum, there is no tax deficiency that has been, or could reasonably be expected to be, asserted against
Consolidated or any of its subsidiaries or any of their respective properties or assets.

(aa)       Licenses and Permits.
Consolidated and its subsidiaries possess all licenses, sub-licenses, certificates, permits and other authorizations issued by,
and have made all declarations and filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities
that are necessary for the ownership or lease of their respective properties or the conduct of their respective businesses as described
in each of the Time of Sale Information and the Offering Memorandum, except where the failure to possess or make the same would
not, individually or in the aggregate, have a Material Adverse Effect; and except as described in each of the Time of Sale Information
and the Offering Memorandum or as would not have a Material Adverse Effect, neither Consolidated nor any of its subsidiaries has
received notice of any revocation or modification of any such license, sub-license, certificate, permit or authorization or has
any reason to believe that any such license, sub-license, certificate, permit or authorization will not be renewed in the ordinary
course.

(bb)       No Labor Disputes.
No labor disturbance by or dispute with employees of Consolidated or any of its subsidiaries exists or, to the knowledge of the
Company and each of the Guarantors, is contemplated or threatened and neither the Company nor any Guarantor is aware of any existing
or imminent labor disturbance by, or dispute with, the employees of any of Consolidated’s or any of Consolidated’s
subsidiaries’ principal suppliers, contractors or customers, except as would not have a Material Adverse Effect. Neither
Consolidated nor any of its subsidiaries has received any written notice of cancellation or termination with respect to any collective
bargaining agreement to which it is a party.

(cc)       Communications Licenses.

		(i)	The business of Consolidated and its subsidiaries is being conducted in compliance with: (a) applicable requirements under
the Communications Act of 1934, as amended, and the rules and regulations of the Federal Communications Commission (“FCC”);
(b) applicable state communications laws and regulations of a state public service commission or similar state governmental authority
(“State PUC”); and (c) applicable local communications laws and regulations of a Local Franchising Authority
(“LFA”) (collectively, the “Communications Laws”). Consolidated and its subsidiaries possess
all material licenses and authorizations issued by the FCC, State PUCs, and LFAs necessary to conduct their respective businesses
as currently conducted (collectively, the “Licenses”) and such Licenses are in full force and effect in accordance
with their terms.

    	 	13	 

     

    
		(ii)	Except as set forth in the Investment Agreement, no consent, approval, authorization, order or waiver of or filing with the
FCC, State PUCs, or LFAs is required under the Communications Laws to be obtained or made by Consolidated or any of its subsidiaries
for the execution, delivery and performance of this Agreement or the transactions contemplated herein and therein.

		(iii)	Consolidated and its subsidiaries each have filed with the FCC, State PUCs, and LFAs all material reports, documents, instruments,
information or applications required to be filed pursuant to the Communications Laws, and have paid all fees required to be paid
pursuant to the Communications Laws.

		(iv)	Except as may be disclosed in the Time of Sale Information and the Offering Memorandum, no proceedings are pending or, to the
knowledge of Consolidated and its subsidiaries, are threatened before the FCC, State PUCs, or LFAs which may result in the revocation,
adverse modification, non-renewal or termination prior to the expiration of their respective terms of any of the Licenses, or the
imposition of any fines, forfeitures or other administrative actions by the FCC, State PUCs, or LFAs with respect to Consolidated
or its subsidiaries, other than proceedings affecting the communications industry in general.

(dd)       Certain Environmental
Matters. (i) Consolidated and its subsidiaries (x) are in compliance with all, and have not violated any, applicable federal,
state, local and foreign laws (including common law), rules, regulations, requirements, decisions, judgments, decrees, orders and
other legally enforceable requirements relating to pollution or the protection of human health or safety, the environment, natural
resources, hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”);
(y) have received and are in compliance with all, and have not violated any, permits, licenses, certificates or other authorizations
or approvals required of them under any Environmental Laws to conduct their respective businesses; and (z) have not received notice
of any actual or potential liability or obligation under or relating to, or any actual or potential violation of, any Environmental
Laws, including for the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants
or contaminants, and have no knowledge of any event or condition that would reasonably be expected to result in any such notice,
and (ii) there are no costs or liabilities associated with Environmental Laws of or relating to Consolidated or its subsidiaries,
except in the case of each of (i) and (ii) above, for any such matter as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect; and (iii) except as described in each of the Time of Sale Information and the Offering
Memorandum, (x) there is no proceeding that is pending, or that is known to be contemplated, against Consolidated or any of its
subsidiaries under any Environmental Laws in which a governmental entity is also a party, other than such proceeding regarding
which it is reasonably believed no monetary sanctions of $100,000 or more will be imposed, (y) Consolidated and its subsidiaries
are not aware of any facts or issues regarding compliance with Environmental Laws, or liabilities or other obligations under Environmental
Laws or concerning hazardous or toxic substances or wastes, pollutants or contaminants, that could reasonably be expected to have
a Material Adverse Effect, and (z) none of Consolidated or its subsidiaries reasonably anticipates material capital expenditures
relating to any Environmental Laws.

    	 	14	 

     

    

(ee)       Compliance with ERISA.
(i) Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), for which the Company or any member of its “Controlled Group” (defined as any entity,
whether or not incorporated, that is under common control with the Company within the meaning of Section 4001(a)(14) of ERISA or
any entity that would be regarded as a single employer with the Company under Section 414(b),(c),(m) or (o) of the Internal Revenue
Code of 1986, as amended (the “Code”)) would have any liability (each, a “Plan”) has been
maintained in compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including
but not limited to ERISA and the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975
of the Code, has occurred with respect to any Plan, excluding transactions effected pursuant to a statutory or administrative exemption;
(iii) for each Plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no Plan has failed
(whether or not waived), or is reasonably expected to fail, to satisfy the minimum funding standards (within the meaning of Section
302 of ERISA or Section 412 of the Code) applicable to such Plan; (iv) no Plan is, or is reasonably expected to be, in “at
risk status” (within the meaning of Section 303(i) of ERISA), and no Plan that is a “multiemployer plan” within
the meaning of Section 4001(a)(3) of ERISA is in “endangered status” or “critical status” (within the meaning
of Sections 304 and 305 of ERISA); (v) the fair market value of the assets of each Plan exceeds the present value of all benefits
accrued under such Plan (determined based on those assumptions used to fund such Plan); (vi) no “reportable event”
(within the meaning of Section 4043(c) of ERISA and the regulations promulgated thereunder) has occurred or is reasonably expected
to occur; (vii) each Plan that is intended to be qualified under Section 401(a) of the Code is so qualified, and nothing has occurred,
whether by action or by failure to act, which would cause the loss of such qualification; (viii) neither the Company nor any member
of the Controlled Group has incurred, nor reasonably expects to incur, any liability under Title IV of ERISA (other than contributions
to the Plan or premiums to the Pension Benefit Guaranty Corporation, in the ordinary course and without default) in respect of
a Plan (including a “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA); and (ix) none of the following
events has occurred or is reasonably likely to occur: (A) a material increase in the aggregate amount of contributions required
to be made to all Plans by the Company or its Controlled Group affiliates in the current fiscal year of the Company and its Controlled
Group affiliates compared to the amount of such contributions made in the Company’s and its Controlled Group affiliates’
most recently completed fiscal year; or (B) a material increase in Consolidated’s and its subsidiaries’ “accumulated
post-retirement benefit obligations” (within the meaning of Accounting Standards Codification Topic 715-60) compared to the
amount of such obligations in Consolidated’s and its subsidiaries’ most recently completed fiscal year, except in each
case with respect to the events or conditions set forth in (i) through (ix) hereof, as would not, individually or in the aggregate,
have a Material Adverse Effect.

    	 	15	 

     

    

(ff)          Disclosure
Controls. Consolidated and its subsidiaries maintain an effective system of “disclosure controls and procedures”
(as defined in Rule 13a-15(e) of the Exchange Act) that is designed to ensure that information required to be disclosed by Consolidated
in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods
specified in the Commission’s rules and forms, including controls and procedures designed to ensure that such information
is accumulated and communicated to Consolidated’s management as appropriate to allow timely decisions regarding required
disclosure. Consolidated and its subsidiaries have carried out evaluations of the effectiveness of their disclosure controls and
procedures as required by Rule 13a-15 of the Exchange Act.

(gg)       Accounting Controls.
Consolidated and its subsidiaries maintain systems of “internal control over financial reporting” (as defined
in Rule 13a-15(f) of the Exchange Act) that comply with the requirements of the Exchange Act and have been designed by, or under
the supervision of, its principal executive and principal financial officer, or persons performing similar functions, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with GAAP. Consolidated maintains internal accounting controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with management's general or specific authorizations; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with management’s general or specific authorization; (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect
to any differences; and (v) interactive data in eXtensible Business Reporting Language included or incorporated by reference in
each of the Preliminary Offering Memorandum, the Time of Sale Information and the Offering Memorandum is prepared in accordance
with the Commission's rules and guidelines applicable thereto. Except as disclosed in each of the Time of Sale Information and
the Offering Memorandum, there are no material weaknesses or significant deficiencies in Consolidated’s internal controls.

(hh)       Insurance. Consolidated
and its subsidiaries have insurance covering their respective properties, operations, personnel and businesses, including business
interruption insurance, which insurance is in amounts and insures against such losses and risks as are customary in the businesses
in which they are engaged to adequately protect Consolidated and its subsidiaries and their respective businesses; and neither
Consolidated nor any of its subsidiaries has (i) received notice from any insurer or agent of such insurer that capital improvements
or other expenditures are required or necessary to be made in order to continue such insurance or (ii) any reason to believe that
it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage at
reasonable cost from similar insurers as may be necessary to continue its business.

    	 	16	 

     

    

(ii)          No
Unlawful Payments. Neither Consolidated nor any of its subsidiaries, nor any director or officer of Consolidated or any of
its subsidiaries nor, to the knowledge of the Company and each of the Guarantors, any employee, agent, affiliate or other person
associated with or acting on behalf of Consolidated or any of its subsidiaries has (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made or taken an act in furtherance
of an offer, promise or authorization of any direct or indirect unlawful payment or benefit to any foreign or domestic government
official or employee, including of any government-owned or controlled entity or of a public international organization, or any
person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate
for political office; (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended,
or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions, or committed an offence under the Bribery Act 2010 of the United Kingdom, or any other applicable anti-bribery
or anti-corruption law; or (iv) made, offered, agreed, requested or taken an act in furtherance of any unlawful bribe or other
unlawful benefit, including, without limitation, any rebate, payoff, influence payment, kickback or other unlawful or improper
payment or benefit. Consolidated and its subsidiaries have instituted, maintain and enforce, and will continue to maintain and
enforce, policies and procedures designed to promote and ensure compliance with all applicable anti-bribery and anti-corruption
laws.

(jj)          Compliance
with Anti-Money Laundering Laws. The operations of Consolidated and its subsidiaries are and have been conducted at all times
in compliance in all material respects with applicable financial recordkeeping and reporting requirements, including those of the
Currency and Foreign Transactions Reporting Act of 1970, as amended, the applicable money laundering statutes of all jurisdictions
where Consolidated or any of its subsidiaries conducts business, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Anti-Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving Consolidated or any of its subsidiaries with respect to the Anti-Money Laundering Laws is pending or,
to the knowledge of the Company or any of the Guarantors, threatened.

    	 	17	 

     

    

(kk)       No Conflicts with
Sanctions Laws. Neither Consolidated nor any of its subsidiaries, directors or officers, nor, to the knowledge of the Company
or any of the Guarantors, any employees, agent, affiliate or other person associated with or acting on behalf of Consolidated or
any of its subsidiaries is currently the subject or the target of any sanctions administered or enforced by the U.S. government,
(including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”)
or the U.S. Department of State and including, without limitation, the designation as a “specially designated national”
or “blocked person”), the United Nations Security Council (“UNSC”), the European Union, Her Majesty’s
Treasury (“HMT”), or other relevant sanctions authority (collectively, “Sanctions”), nor
is Consolidated, any of its subsidiaries or any of the Guarantors located, organized or resident in a country or territory that
is the subject or target of Sanctions, including, without limitation, Crimea, Cuba, Iran, North Korea and Syria (each, a “Sanctioned
Country”); and Consolidated and its subsidiaries will not directly or indirectly use the proceeds of the offering of
the Securities hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner
or other person or entity (i) to fund or facilitate any activities of or business with any person that, at the time of such funding
or facilitation, is the subject or target of Sanctions, (ii) to fund or facilitate any activities of or business in any Sanctioned
Country or (iii) in any other manner that will result in a violation by any person (including any person participating in the transaction,
whether as initial purchaser, underwriter, advisor, investor or otherwise) of Sanctions. For the past five years, Consolidated
and its subsidiaries have not knowingly engaged in, are not now knowingly engaged in any dealings or transactions with any person
that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any Sanctioned Country.

(ll)          Solvency.
On and immediately after the Closing Date, the Company and each Guarantor (after giving effect to the issuance and sale of the
Securities, the issuance of the Guarantees and the other transactions related thereto as described in each of the Time of Sale
Information and the Offering Memorandum) will be Solvent. As used in this paragraph, the term “Solvent” means,
with respect to a particular date and entity, that on such date (i) the fair value (and present fair saleable value) of the assets
of such entity is not less than the total amount required to pay the probable liability of such entity on its total existing debts
and liabilities (including contingent liabilities) as they become absolute and matured; (ii) such entity is able to realize upon
its assets and pay its debts and other liabilities, contingent obligations and commitments as they mature and become due in the
normal course of business; (iii) assuming consummation of the issuance and sale of the Securities and the issuance of the Guarantees
as contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum, such entity does not have, intend
to incur or believe that it will incur debts or liabilities beyond its ability to pay as such debts and liabilities mature; (iv)
such entity is not engaged in any business or transaction, and does not propose to engage in any business or transaction, for which
its property would constitute unreasonably small capital; and (v) such entity is not a defendant in any civil action that would
result in a judgment that such entity is or would become unable to satisfy.

(mm)    Senior Indebtedness. The Securities
constitute “senior indebtedness” or a functionally equivalent term as any such term is defined in any indenture or
agreement governing any outstanding subordinated indebtedness of the Company.

    	 	18	 

     

    

(nn)       No Restrictions on
Subsidiaries. No subsidiary of Consolidated is currently prohibited, directly or indirectly, under any agreement or other instrument
to which it is a party or is subject, from paying any dividends to Consolidated, from making any other distribution on such subsidiary’s
capital stock or similar ownership interest, from repaying to Consolidated or the Company any loans or advances to such subsidiary
from Consolidated or the Company or from transferring any of such subsidiary’s properties or assets to Consolidated or any
other subsidiary of Consolidated, except for any such restrictions (a) contained in the Existing Indebtedness, which will be repaid
in full and terminated upon consummation of the Transactions on the Closing Date as described in each of the Time of Sale Information
and the Offering Memorandum, or (b) that will be permitted by the Indenture.

(oo)       No Broker’s
Fees. Neither Consolidated nor any of its subsidiaries is a party to any contract, agreement or understanding with any person
(other than this Agreement) that would give rise to a valid claim against any of them or any Initial Purchaser for a brokerage
commission, finder’s fee or like payment in connection with the offering and sale of the Securities.

(pp)       Rule 144A Eligibility.
On the Closing Date, the Securities will not be of the same class as securities listed on a national securities exchange registered
under Section 6 of the Exchange Act or quoted in an automated inter-dealer quotation system; and each of the Preliminary Offering
Memorandum and the Offering Memorandum, as of its respective date, contains or will contain all the information that, if requested
by a prospective purchaser of the Securities, would be required to be provided to such prospective purchaser pursuant to Rule 144A(d)(4)
under the Securities Act.

(qq)       No Integration.
Neither the Company nor any of its affiliates (as defined in Rule 501(b) of Regulation D) has, directly or through any agent, sold,
offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act),
that is or will be integrated with the sale of the Securities in a manner that would require registration of the Securities under
the Securities Act.

(rr)         No General
Solicitation or Directed Selling Efforts. None of the Company or any of its affiliates or any other person acting on its or
their behalf (other than the Initial Purchasers, as to which no representation is made) has (i) solicited offers for, or offered
or sold, the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of
Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act or (ii) engaged
in any directed selling efforts within the meaning of Regulation S under the Securities Act (“Regulation S”),
and all such persons have complied with the offering restrictions requirement of Regulation S.

(ss)       Securities Law Exemptions.
Assuming the accuracy of the representations and warranties of the Initial Purchasers contained in Section 2(b) (including Annex
C hereto) and their compliance with their agreements set forth therein, it is not necessary, in connection with the issuance and
sale of the Securities to the Initial Purchasers and the offer, resale and delivery of the Securities by the Initial Purchasers
in the manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum, to register the Securities
under the Securities Act or to qualify the Indenture under the Trust Indenture Act.

    	 	19	 

     

    

(tt)          
No Stabilization. Neither the Company nor any of the Guarantors has taken, directly or indirectly, any action designed
to or that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Securities.

(uu)       Margin Rules.
Neither the issuance, sale and delivery of the Securities nor the application of the proceeds thereof by the Company as described
in each of the Time of Sale Information and the Offering Memorandum will violate Regulation T, U or X of the Board of Governors
of the Federal Reserve System or any other regulation of such Board of Governors.

(vv)       Forward-Looking Statements.
No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) included
or incorporated by reference in any of the Time of Sale Information or the Offering Memorandum has been made or reaffirmed without
a reasonable basis or has been disclosed other than in good faith.

(ww)     Statistical and Market Data.
Nothing has come to the attention of the Company or any Guarantor that has caused the Company or such Guarantor to believe that
the statistical and market-related data included or incorporated by reference in each of the Time of Sale Information and the Offering
Memorandum is not based on or derived from sources that are reliable and accurate in all material respects.

(xx)       Cybersecurity; Data
Protection. Except as would not have a Material Adverse Effect, Consolidated and its subsidiaries’ information technology
assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (collectively, “IT
Systems”) are adequate for, and operate and perform as required in connection with the operation of the business of Consolidated
and its subsidiaries as currently conducted, free and clear of all bugs, errors, defects, Trojan horses, time bombs, malware and
other corruptants. Consolidated and its subsidiaries have implemented and maintained commercially reasonable controls, policies,
procedures, and safeguards to maintain and protect their confidential information and the integrity, continuous operation, redundancy
and security of all IT Systems and data (including all personal, personally identifiable, sensitive, confidential or regulated
data (“Personal Data”)) used in connection with their businesses, and there have been no breaches, violations,
outages or unauthorized uses of or accesses to same, except for those that have been remedied without cost or liability or the
duty to notify any other person, nor any incidents under internal review or investigations relating to the same. Consolidated and
its subsidiaries are presently in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations
of any court or arbitrator or governmental or regulatory authority, and all written internal policies and contractual obligations
relating to the privacy and security of IT Systems and Personal Data and to the protection of such IT Systems and Personal Data
from unauthorized use, access, misappropriation or modification.

    	 	20	 

     

    

(yy)       Sarbanes-Oxley Act.
There is and has been no failure on the part of Consolidated or its subsidiaries or any of their respective directors or officers,
in their capacities as such, to comply in all material respects with any provision of the Sarbanes-Oxley Act of 2002, as amended,
and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”), including Section
402 related to loans and Sections 302 and 906 related to certifications.

4.       Further Agreements of
the Company and the Guarantors. The Company and the Guarantors jointly and severally covenant and agree with each Initial Purchaser
that:

 

(a)          Delivery
of Copies. Until the earlier to occur of (i) the completion of the initial resale of the Securities by the Initial Purchasers,
and (ii) the one year anniversary of the Closing Date, the Issuers, the Company will deliver, without charge, to the Initial Purchasers
as many copies of the Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer Written Communication and
the Offering Memorandum (including all amendments and supplements thereto) as the Representative may reasonably request.

(b)          Offering
Memorandum, Amendments or Supplements. During the period beginning the date hereof and the ending upon the earlier to occur
of (i) the completion of the initial resale of the Securities by the Initial Purchasers and (ii) the one year anniversary of the
Closing Date, before finalizing the Offering Memorandum or making or distributing any amendment or supplement to any of the Time
of Sale Information or the Offering Memorandum or filing with the Commission any document that will be incorporated by reference
therein, the Company will furnish to the Representative and counsel for the Initial Purchasers a copy of the proposed Offering
Memorandum or such amendment or supplement or document to be incorporated by reference therein for review, and will not distribute
any such proposed Offering Memorandum, amendment or supplement or file any such document with the Commission to which the Representative
reasonably objects; provided, however, that the Representative shall not unreasonably object to any such filing if
such filing is required under the rules and regulations of the Securities Act or Exchange Act; provided, further,
that the Company and Consolidated shall have the right to file with the Commission any report required to be filed by Consolidated
under the Exchange Act no later than the time period required by the Exchange Act.

(c)          Additional
Written Communications. Before making, preparing, using, authorizing, approving or referring to any Issuer Written Communication,
the Company and the Guarantors will furnish to the Representative and counsel for the Initial Purchasers a copy of such written
communication for review and will not make, prepare, use, authorize, approve or refer to any such written communication to which
the Representative reasonably objects.

    	 	21	 

     

    

(d)          Notice
to the Representative. The Company will advise the Representative promptly, and confirm such advice in writing, (i) of the
issuance by any governmental or regulatory authority of any order preventing or suspending the use of any of the Time of Sale Information,
any Issuer Written Communication or the Offering Memorandum or the initiation or threatening of any proceeding for that purpose;
(ii) of the occurrence of any event at any time prior to the completion of the initial offering of the Securities as a result of
which any of the Time of Sale Information, any Issuer Written Communication or the Offering Memorandum as then amended or supplemented
would include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances existing when such Time of Sale Information, Issuer Written Communication or the Offering
Memorandum is delivered to a purchaser, not misleading; and (iii) of the receipt by the Company of any notice with respect to any
suspension of the qualification of the Securities for offer and sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose; and the Company will use its commercially reasonable efforts to prevent the issuance of any such order
preventing or suspending the use of any of the Time of Sale Information, any Issuer Written Communication or the Offering Memorandum
or suspending any such qualification of the Securities and, if any such order is issued, will use commercially reasonable efforts
to obtain as soon as possible the withdrawal thereof.

(e)          Time
of Sale Information. If at any time prior to the Closing Date (i) any event shall occur or condition shall exist as a result
of which any of the Time of Sale Information as then amended or supplemented would include any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading or (ii) it is necessary to amend or supplement the Time of Sale Information to comply with law,
the Company will promptly notify the Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above, furnish
to the Initial Purchasers such amendments or supplements to the Time of Sale Information (or any document to be filed with the
Commission and incorporated by reference therein) as may be necessary so that the statements in any of the Time of Sale Information
as so amended or supplemented (including such documents to be incorporated by reference therein) will not, in the light of the
circumstances under which they were made, be misleading or so that any of the Time of Sale Information will comply with law.

(f)          
Ongoing Compliance. If at any time prior to the completion of the initial offering of the Securities (i) any event shall
occur or condition shall exist as a result of which the Offering Memorandum as then amended or supplemented would include any untrue
statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light
of the circumstances existing when the Offering Memorandum is delivered to a purchaser, not misleading or (ii) it is necessary
to amend or supplement the Offering Memorandum to comply with law, the Company will promptly notify the Initial Purchasers thereof
and forthwith prepare and, subject to paragraph (b) above, furnish to the Initial Purchasers such amendments or supplements to
the Offering Memorandum (or any document to be filed with the Commission and incorporated by reference therein) as may be necessary
so that the statements in the Offering Memorandum as so amended or supplemented (including such document to be incorporated by
reference therein) will not, in the light of the circumstances existing when the Offering Memorandum is delivered to a purchaser,
be misleading or so that the Offering Memorandum will comply with law.

    	 	22	 

     

    

(g)          Blue
Sky Compliance. The Company will qualify the Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions
as the Representative shall reasonably request and will continue such qualifications in effect so long as required for the offering
and resale of the Securities by the Initial Purchasers; provided that neither the Company nor any of the Guarantors shall
be required to (i) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where
it would not otherwise be required to so qualify, (ii) file any general consent to service of process in any such jurisdiction
or (iii) subject itself to taxation in any such jurisdiction if it is not otherwise so subject.

(h)          Clear
Market. During the period from the date hereof through and including the date that is 60 days after the date hereof, the Company
and each of the Guarantors will not, without the prior written consent of the Representative, offer, sell, contract to sell or
otherwise dispose of any debt securities issued or guaranteed by the Company or any of the Guarantors and having a tenor of more
than one year.

(i)           
Use of Proceeds. The Company will apply the net proceeds from the sale of the Securities as described in each of the Time
of Sale Information and the Offering Memorandum under the heading “Use of proceeds.”

(j)           
Supplying Information. While the Securities remain outstanding and are “restricted securities” within the meaning
of Rule 144(a)(3) under the Securities Act, the Company and each of the Guarantors will, during any period in which the Company
is not subject to and in compliance with Section 13 or 15(d) of the Exchange Act, furnish to holders of the Securities and prospective
purchasers of the Securities designated by such holders, upon the request of such holders or such prospective purchasers, the information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

(k)          DTC.
The Company will use commercially reasonable efforts to assist the Initial Purchasers in arranging for the Securities to be eligible
for clearance and settlement through DTC.

(l)           
No Resales by the Company. The Company will not, and will not permit any of its affiliates (as defined in Rule 144
under the Securities Act) to, resell any of the Securities that have been acquired by any of them, except for Securities purchased
by the Company or any of its affiliates and resold in a transaction registered under the Securities Act.

(m)        No Integration.
Neither the Company nor any of its affiliates (as defined in Rule 501(b) of Regulation D) will, directly or through any agent,
sell, offer for sale, solicit offers to buy or otherwise negotiate in respect of, any security (as defined in the Securities Act),
that is or will be integrated with the sale of the Securities in a manner that would require registration of the Securities under
the Securities Act.

    	 	23	 

     

    

(n)          No
General Solicitation or Directed Selling Efforts. None of the Company or any of its affiliates or any other person acting on
its or their behalf (other than the Initial Purchasers and persons acting on their behalf, as to which no covenant is given) will
(i) solicit offers for, or offer or sell, the Securities by means of any form of general solicitation or general advertising within
the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of
the Securities Act or (ii) engage in any directed selling efforts within the meaning of Regulation S, and all such persons will
comply with the offering restrictions requirement of Regulation S.

(o)         
No Stabilization. Neither the Company nor any of the Guarantors will take, directly or indirectly, any action designed
to or that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Securities.

(p)          Perfection
of Security Interests. The Company and each Guarantor (i) shall complete on or prior to the Closing Date all filings and other
similar actions required in connection with the perfection of security interests in the Collateral as and to the extent contemplated
by the Indenture and the Collateral Documents and (ii) shall take all actions necessary to maintain such security interests and
to perfect security interests in any Collateral acquired after the Closing Date, in each case as and to the extent required by
the Indenture and the Collateral Documents; provided that the Company and the Guarantors may deliver, furnish and/or cause
to be furnished all of the obligations set forth on the post-closing schedule to the Indenture within the time periods set forth
therein.

5.      Certain Agreements of the Initial Purchasers.Each Initial Purchaser
hereby represents and agrees that it has not and will not use, authorize use of, refer to, or participate in the planning for use
of, any written communication that constitutes an offer to sell or the solicitation of an offer to buy the Securities other than
(i) the Preliminary Offering Memorandum and the Offering Memorandum, (ii) any written communication that contains either (a) no
“issuer information” (as defined in Rule 433(h)(2) under the Securities Act) or (b) “issuer information”
that was included (including through incorporation by reference) in the Time of Sale Information or the Offering Memorandum, (iii)
any written communication listed on Annex A or prepared pursuant to Section 4(c) (including any electronic road show) above, (iv)
any written communication prepared by such Initial Purchaser and approved by the Company and the Representative in advance in writing
or (v) any written communication relating to or that contains the terms of the Securities and/or other information that was included
(including through incorporation by reference) in the Time of Sale Information or the Offering Memorandum.

6.       Conditions of Initial
Purchasers’ Obligations. The obligation of each Initial Purchaser to purchase Securities on the Closing Date as provided
herein is subject to the performance by the Company and each of the Guarantors of their respective covenants and other obligations
hereunder and to the following additional conditions:

    	 	24	 

     

    

(a)          Representations
and Warranties. The representations and warranties of the Company and the Guarantors contained herein shall be true and correct
on the date hereof and on and as of the Closing Date; and the statements of the Company, the Guarantors and their respective officers
made in any certificates delivered pursuant to this Agreement shall be true and correct on and as of the Closing Date.

(b)          No
Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the execution and delivery of this Agreement, (i) no downgrading
shall have occurred in the rating accorded the Securities or any other debt securities or preferred stock issued or guaranteed
by Consolidated or any of its subsidiaries by any “nationally recognized statistical rating organization,” as such
term is defined under Section 3(a)(62) under the Exchange Act and (ii) no such organization shall have publicly announced that
it has under surveillance or review, or has changed its outlook with respect to, its rating of the Securities or of any other debt
securities or preferred stock issued or guaranteed by Consolidated or any of its subsidiaries (other than an announcement with
positive implications of a possible upgrading).

(c)          No
Material Adverse Change. No event or condition of a type described in Section 3(e) hereof shall have occurred or shall exist,
which event or condition is not described in each of the Time of Sale Information (excluding any amendment or supplement thereto)
and the Offering Memorandum (excluding any amendment or supplement thereto) the effect of which in the judgment of the Representative
makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities on the terms and in the
manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum.

(d)          Officer’s
Certificate. The Representative shall have received on and as of the Closing Date a certificate of an executive officer of
the Company and of each Guarantor who has specific knowledge of the Company’s or such Guarantor’s financial matters
and is satisfactory to the Representative (i) confirming that such officer has carefully reviewed the Time of Sale Information
and the Offering Memorandum and, to the knowledge of such officer, the representations set forth in Sections 3(a) and 3(b) hereof
are true and correct, (ii) confirming that the other representations and warranties of the Company and the Guarantors in this Agreement
are true and correct and that the Company and the Guarantors have complied with all agreements and satisfied all conditions on
their part to be performed or satisfied hereunder at or prior to the Closing Date and (iii) to the effect set forth in paragraphs
(b) and (c) above.

(e)          Comfort
Letters. On the date of this Agreement and on the Closing Date, Ernst & Young LLP shall have furnished to the Representative,
at the request of the Company, letters, dated the respective dates of delivery thereof and addressed to the Initial Purchasers,
in form and substance reasonably satisfactory to the Representative, containing statements and information of the type customarily
included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain
financial information contained or incorporated by reference in each of the Time of Sale Information and the Offering Memorandum;
provided that the letter delivered on the Closing Date shall use a “cut-off” date no more than three business
days prior to the Closing Date.

    	 	25	 

     

    

(f)          
Opinion and 10b-5 Statement of Counsel for the Company. Schiff Hardin LLP, New York, Illinois and Delaware counsel for the
Company and the Guarantors, shall have furnished to the Representative, at the request of the Company, their written opinion and
10b-5 statement, dated the Closing Date and addressed to the Initial Purchasers, in form and substance reasonably satisfactory
to the Representative.

(g)          Opinion
of Communications Regulatory Counsel for the Company. Morgan, Lewis & Bockius LLP, special communications regulatory counsel
for the Company and the Guarantors, shall have furnished to the Representative, at the request of the Company, their written opinion,
dated the Closing Date and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the Representative.

(h)          Opinions
of Local Counsel. (i) Stoel Rives LLP, California and Washington counsel for the Company and the Guarantors, shall have furnished
to the Representative, at the request of the Company, its written opinion, dated the Closing Date and addressed to the Initial
Purchasers, in form and substance reasonably satisfactory to the Representative, (ii) Connor & Winters, LLP, Oklahoma and Texas
counsel for the Company and the Guarantors, shall have furnished to the Representative, at the request of the Company, its written
opinion, dated the Closing Date and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the Representative,
(iii) Jones Walker LLP, Florida counsel for the Company and the Guarantors, shall have furnished to the Representative, at the
request of the Company, its written opinion, dated the Closing Date and addressed to the Initial Purchasers, in form and substance
reasonably satisfactory to the Representative and (iv) Stinson LLP, Kansas, Minnesota and Missouri counsel for the Company and
the Guarantors, shall have furnished to the Representative, at the request of the Company, its written opinion, dated the Closing
Date and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the Representative.

(i)           
Opinion and 10b-5 Statement of Counsel for the Initial Purchasers. The Representative shall have received on and as of the
Closing Date an opinion and 10b-5 statement, addressed to the Initial Purchasers, of Cahill Gordon & Reindel LLP,
counsel for the Initial Purchasers, with respect to such matters as the Representative may reasonably request, and such counsel
shall have received such documents and information as they may reasonably request to enable them to pass upon such matters.

(j)           
No Legal Impediment to Issuance. No action shall have been taken and no statute, rule, regulation or order shall have been
enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Closing
Date, prevent the issuance or sale of the Securities or the issuance of the Guarantees; and no injunction or order of any federal,
state or foreign court shall have been issued that would, as of the Closing Date, prevent the issuance or sale of the Securities
or the issuance of the Guarantees.

    	 	26	 

     

    

(k)          Good
Standing. The Representative shall have received on and as of the Closing Date satisfactory evidence of the good standing of
the Company and the Guarantors in their respective jurisdictions of organization and their good standing in such other jurisdictions
as the Representative may reasonably request, in each case in writing or any standard form of telecommunication from the appropriate
governmental authorities of such jurisdictions.

(l)           
DTC. The Securities shall be eligible for clearance and settlement through DTC.

(m)        Indenture and
Securities. The Indenture shall have been duly executed and delivered by a duly authorized officer of the Company, each of
the Guarantors, the Trustee and the Collateral Agent, and the Securities shall have been duly executed and delivered by a duly
authorized officer of the Company and duly authenticated by the Trustee.

(n)          Lien
Searches. The Representative shall have received the results of a recent lien search in each of the jurisdictions in which
filings should be made under the Uniform Commercial Code to evidence or perfect security interests in the assets of the Company
or any such Guarantor and such other searches as maybe reasonably requested by the Representative, and such search shall reveal
no liens on any of the assets of the Company and the Guarantors or their respective subsidiaries except for Permitted Exceptions,
Permitted Liens or liens with respect to the Existing Credit Facilities.

(o)          Collateral
Documents. The Initial Purchasers shall receive conformed counterparts of the Collateral Documents that will be executed and
delivered by duly authorized officers of each party thereto, in form and substance reasonably satisfactory to the Representative.

(p)          Intercreditor
Agreement. The Initial Purchasers shall have received conformed counterparts of the Intercreditor Agreement that shall have
been executed and delivered by duly authorized officers of each party thereto, in form and substance reasonably satisfactory to
the Representative.

(q)          Filings,
Registration and Recordings. Except as otherwise contemplated by the Trademark Security Agreement and the Security Agreement,
each document (including any Uniform Commercial Code financing statement) required by the Trademark Security Agreement and the
Security Agreement, or under law or reasonably requested by the Representative, in each case, to be filed, registered or recorded,
or delivered for filing on or prior to the Closing Date, including filings in the U.S. Patent and Trademark Office in order to
create in favor of the Trustee, for the benefit of the holders of the Securities, a perfected first-priority lien and security
interest in the Personal Property Collateral that can be perfected by the making of such filings, registrations or recordations
(subject to Permitted Liens), shall be executed and in proper form for filing, registration or recordation.

    	 	27	 

     

    

(r)          
Stock Certificates. Subject to the Intercreditor Agreement, pursuant to the terms of the Security Agreement, the Company
and Guarantors shall have caused to be delivered stock certificates and instruments, together with stock powers and other instruments
of transfer to the Collateral Agent, or the Credit Agreement Collateral Agent (as defined in the Intercreditor Agreement) on behalf
of the Collateral Agent;

(s)          Existing
Indebtedness. The Representative shall have received evidence reasonably satisfactory to it that, substantially simultaneously
with the purchase of the Securities by the Initial Purchasers, (i) the Existing Credit Facilities, and all accrued and unpaid interest,
fees and other amounts owing thereunder, shall have been paid in full, all commitments to extend credit under the Existing Credit
Facilities shall have terminated, and all liens securing obligations under the Existing Credit Facilities shall have been released
and (ii) the Company shall have issued a notice of redemption with respect to the Existing Notes.

(t)          
Credit Agreement and Investment. Concurrently with or prior to the Closing Date, (i) the Company and the Guarantors shall
have entered into the Credit Agreement and effected the initial borrowing thereunder consistent in all material respects with the
terms described in the Time of Sale Information and the Offering Memorandum, and the Representative shall have received conformed
counterparts thereof, and (ii) the Initial Closing of the Investment shall have occurred consistent in all material respects with
the terms described in the Time of Sale Information and the Offering Memorandum.

(u)          Transactions.
Concurrently with or prior to the Closing Date, each of the Transactions shall have been consummated in a manner consistent in
all material respects with the descriptions thereof in the Time of Sale Information and the Offering Memorandum.

(v)          Additional
Documents. On or prior to the Closing Date, the Company and the Guarantors shall have furnished to the Representative such
further certificates and documents as the Representative may reasonably request.

All opinions, letters, certificates and evidence mentioned above
or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form and substance
reasonably satisfactory to counsel for the Initial Purchasers.

7.       Indemnification
and Contribution.

(a)          Indemnification
of the Initial Purchasers. The Company and each of the Guarantors jointly and severally agree to indemnify and hold harmless
each Initial Purchaser, its affiliates, directors and officers and each person, if any, who controls such Initial Purchaser within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims,
damages and liabilities (including, without limitation, reasonable and documented legal fees and other reasonable expenses incurred
in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several,
that arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in the Preliminary
Offering Memorandum, any of the other Time of Sale Information, any Issuer Written Communication or the Offering Memorandum (or
any amendment or supplement thereto) or any omission or alleged omission to state therein a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case except
insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with any information relating to any Initial Purchaser furnished
to the Company in writing by such Initial Purchaser through the Representative expressly for use therein.

    	 	28	 

     

    

(b)          Indemnification
of the Company and the Guarantors. Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless
the Company, each of the Guarantors, each of their respective directors and officers and each person, if any, who controls the
Company or any of the Guarantors within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the
same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities
that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with any information relating to such Initial Purchaser furnished to the Company in writing by such Initial
Purchaser through the Representative expressly for use in the Preliminary Offering Memorandum, any of the other Time of Sale Information,
any Issuer Written Communication or the Offering Memorandum (or any amendment or supplement thereto), it being understood and agreed
that the only such information consists of the following paragraphs in the Preliminary Offering Memorandum and the Offering Memorandum:
the third and fourth sentences in the seventh paragraph and the ninth paragraph, under the caption “Plan of Distribution”
in the Preliminary Offering Memorandum and the Final Offering Memorandum.

(c)         
Notice and Procedures. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or
demand shall be brought or asserted against any person in respect of which indemnification may be sought pursuant to either paragraph
(a) or (b) above, such person (the “Indemnified Person”) shall promptly notify the person against whom such
indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify
the Indemnifying Person shall not relieve it from any liability that it may have under paragraph (a) or (b) above except to the
extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided,
further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to
an Indemnified Person otherwise than under paragraph (a) or (b) above. If any such proceeding shall be brought or asserted against
an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel to
the Indemnifying Person) to represent the Indemnified Person and any others entitled to indemnification pursuant to this Section
7 that the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such proceeding and shall
pay the fees and expenses of such counsel related to such 

    	 	29	 

     

    

proceeding, as incurred. In any such proceeding, any Indemnified Person
shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified
Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying
Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the
Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or
in addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between them. It is understood and agreed that the Indemnifying
Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and
expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees
and expenses shall be paid or reimbursed as they are incurred. Any such separate firm for any Initial Purchaser, its affiliates,
directors and officers and any control persons of such Initial Purchaser shall be designated in writing by J.P. Morgan Securities
LLC and any such separate firm for the Company, the Guarantors, their respective directors and officers and any control persons
of the Company and the Guarantors shall be designated in writing by the Company. The Indemnifying Person shall not be liable for
any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final
judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability
by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have
requested that an Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this
paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding effected without its written consent if
(i) such settlement is entered into more than 30 days after receipt by the Indemnifying Person of such request and (ii) the Indemnifying
Person shall not have reimbursed the Indemnified Person in accordance with such request prior to the date of such settlement. No
Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened
proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could have been sought
hereunder by such Indemnified Person, unless such settlement (x) includes an unconditional release of such Indemnified Person,
in form and substance reasonably satisfactory to such Indemnified Person, from all liability on claims that are the subject matter
of such proceeding and (y) does not include any statement as to or any admission of fault, culpability or a failure to act by or
on behalf of any Indemnified Person.

(d)          Contribution.
If the indemnification provided for in paragraph (a) or (b) above is unavailable to an Indemnified Person or insufficient in respect
of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu
of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as
a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the 

    	 	30	 

     

    

relative benefits
received by the Company and the Guarantors on the one hand and the Initial Purchasers on the other from the offering of the Securities
or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) but also the relative fault of the Company and the Guarantors on the one
hand and the Initial Purchasers on the other in connection with the statements or omissions that resulted in such losses, claims,
damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and
the Guarantors on the one hand and the Initial Purchasers on the other shall be deemed to be in the same respective proportions
as the net proceeds (before deducting expenses) received by the Company from the sale of the Securities and the total discounts
and commissions received by the Initial Purchasers in connection therewith, as provided in this Agreement, bear to the aggregate
offering price of the Securities. The relative fault of the Company and the Guarantors on the one hand and the Initial Purchasers
on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or any Guarantor
or by the Initial Purchasers and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission.

(e)          Limitation
on Liability. The Company, the Guarantors and the Initial Purchasers agree that it would not be just and equitable if contribution
pursuant to this Section 7 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity
for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in
paragraph (d) above. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities
referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth above, any reasonable and documented
legal or other reasonable expenses incurred by such Indemnified Person in connection with any such action or claim. Notwithstanding
the provisions of this Section 7, in no event shall an Initial Purchaser be required to contribute any amount in excess of the
amount by which the total discounts and commissions received by such Initial Purchaser with respect to the offering of the Securities
exceeds the amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
The Initial Purchasers’ obligations to contribute pursuant to this Section 7 are several in proportion to their respective
purchase obligations hereunder and not joint.

(f)          
Non-Exclusive Remedies. The remedies provided for in this Section 7 are not exclusive and shall not limit any rights or
remedies that may otherwise be available to any Indemnified Person at law or in equity.

8.       Effectiveness of Agreement.
This Agreement shall become effective as of the date first written above.

 

    	 	31	 

     

    

9.       Termination. This
Agreement may be terminated in the absolute discretion of the Representative, by notice to the Company, if after the execution
and delivery of this Agreement and on or prior to the Closing Date (i) trading generally shall have been suspended or materially
limited on the New York Stock Exchange or the Nasdaq Global Select Market; (ii) trading of any securities issued or guaranteed
by the Company or any of the Guarantors shall have been suspended on any exchange or in any over-the-counter market; (iii) a general
moratorium on commercial banking activities shall have been declared by federal or New York State authorities; or (iv) there shall
have occurred any outbreak or escalation of hostilities or any change in financial markets or any calamity or crisis, either within
or outside the United States, that, in the judgment of the Representative, is material and adverse and makes it impracticable or
inadvisable to proceed with the offering, sale or delivery of the Securities on the terms and in the manner contemplated by this
Agreement, the Time of Sale Information and the Offering Memorandum.

 

10.       Defaulting Initial
Purchaser.

(a)         
If, on the Closing Date, any Initial Purchaser defaults on its obligation to purchase the
Securities that it has agreed to purchase hereunder, the non-defaulting Initial Purchasers may in their discretion arrange for
the purchase of such Securities by other persons satisfactory to the Company on the terms contained in this Agreement. If, within
36 hours after any such default by any Initial Purchaser, the non-defaulting Initial Purchasers do not arrange for the purchase
of such Securities, then the Company shall be entitled to a further period of 36 hours within which to procure other persons satisfactory
to the non-defaulting Initial Purchasers to purchase such Securities on such terms. If other persons become obligated or agree
to purchase the Securities of a defaulting Initial Purchaser, either the non-defaulting Initial Purchasers or the Company may postpone
the Closing Date for up to five full business days in order to effect any changes that in the opinion of counsel for the Company
or counsel for the Initial Purchasers may be necessary in the Time of Sale Information, the Offering Memorandum or in any other
document or arrangement, and the Company agrees to promptly prepare any amendment or supplement to the Time of Sale Information
or the Offering Memorandum that effects any such changes. As used in this Agreement, the term “Initial Purchaser”
includes, for all purposes of this Agreement unless the context otherwise requires, any person not listed in Schedule 1 hereto
that, pursuant to this Section 10, purchases Securities that a defaulting Initial Purchaser agreed but failed to purchase.

(b)          If,
after giving effect to any arrangements for the purchase of the Securities of a defaulting Initial Purchaser or Initial Purchasers
by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of
such Securities that remains unpurchased does not exceed one-eleventh of the aggregate principal amount of all the Securities,
then the Company shall have the right to require each non-defaulting Initial Purchaser to purchase the principal amount of Securities
that such Initial Purchaser agreed to purchase hereunder plus such Initial Purchaser’s pro rata share (based on the
principal amount of Securities that such Initial Purchaser agreed to purchase hereunder) of the Securities of such defaulting Initial
Purchaser or Initial Purchasers for which such arrangements have not been made.

    	 	32	 

     

    

(c)          If,
after giving effect to any arrangements for the purchase of the Securities of a defaulting Initial Purchaser or Initial Purchasers
by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of
such Securities that remains unpurchased exceeds one-eleventh of the aggregate principal amount of all the Securities, or if the
Company shall not exercise the right described in paragraph (b) above, then this Agreement shall terminate without liability on
the part of the non-defaulting Initial Purchasers. Any termination of this Agreement pursuant to this Section 10 shall be without
liability on the part of the Company or the Guarantors, except that the Company and each of the Guarantors will continue to be
liable for the payment of expenses as set forth in Section 11 hereof and except that the provisions of Section 7 hereof shall
not terminate and shall remain in effect.

(d)          Nothing
contained herein shall relieve a defaulting Initial Purchaser of any liability it may have to the Company, the Guarantors or any
non-defaulting Initial Purchaser for damages caused by its default.

11.       Payment of Expenses.

(a)          Whether
or not the transactions contemplated by this Agreement are consummated or this Agreement is terminated, the Company and each of
the Guarantors jointly and severally agree to pay or cause to be paid all costs and expenses incident to the performance of their
respective obligations hereunder, including without limitation, (i) the costs incident to the authorization, issuance, sale,
preparation and delivery of the Securities and any taxes payable in that connection; (ii) the costs incident to the preparation
and printing of the Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer Written Communication and the
Offering Memorandum (including any amendment or supplement thereto) and the distribution thereof; (iii) the costs of reproducing
and distributing each of the Transaction Documents; (iv) the fees and expenses of the Company’s and the Guarantors’
counsel and independent accountants; (v) the fees and expenses incurred in connection with the registration or qualification and
determination of eligibility for investment of the Securities under the laws of such jurisdictions as the Representative may designate
and the preparation, printing and distribution of a Blue Sky Memorandum (including the related fees and expenses of counsel for
the Initial Purchasers); (vi) any fees charged by rating agencies for rating the Securities; (vii) the fees and expenses
of the Trustee, the Collateral Agent and any paying agent (including related fees and expenses of any counsel to such parties);
(viii) all expenses and application fees incurred in connection with the approval of the Securities for book-entry transfer by
DTC; (ix) the fees and expenses incurred with respect to creating, documenting and perfecting the security interests in the Collateral
as contemplated by the Collateral Documents (including the related fees and expenses of counsel to the Initial Purchasers for all
periods prior to and after the Closing Date); and (x) all expenses incurred by the Company in connection with any “road show”
presentation to potential investors.

    	 	33	 

     

    

(b)          If (i)
this Agreement is terminated pursuant to Section 9, (ii) the Company for any reason fails to tender the Securities for delivery
to the Initial Purchasers or (iii) the Initial Purchasers decline to purchase the Securities for any reason permitted under this
Agreement, the Company and each of the Guarantors jointly and severally agree to reimburse the Initial Purchasers for all out-of-pocket
costs and expenses (including the reasonable documented fees and expenses of their counsel) reasonably incurred by the Initial
Purchasers in connection with this Agreement and the offering contemplated hereby.

12.       Persons Entitled
to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective
successors and the officers and directors and any controlling persons referred to herein, and the affiliates of each Initial Purchaser
referred to in Section 7 hereof. Nothing in this Agreement is intended or shall be construed to give any other person any legal
or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein. No purchaser of Securities
from any Initial Purchaser shall be deemed to be a successor merely by reason of such purchase.

13.       Survival.
The respective indemnities, rights of contribution, representations, warranties and agreements of the Company, the Guarantors and
the Initial Purchasers contained in this Agreement or made by or on behalf of the Company, the Guarantors or the Initial Purchasers
pursuant to this Agreement or any certificate delivered pursuant hereto shall survive the delivery of and payment for the Securities
and shall remain in full force and effect, regardless of any termination of this Agreement or any investigation made by or on behalf
of the Company, the Guarantors or the Initial Purchasers.

14.       Certain Defined
Terms. For purposes of this Agreement, (a) except where otherwise expressly provided, the term “affiliate”
has the meaning set forth in Rule 405 under the Securities Act; (b) the term “business day” means any day other
than a day on which banks are permitted or required to be closed in New York City; (c) the term “subsidiary”
has the meaning set forth in Rule 405 under the Securities Act; (d) the term “Exchange Act” collectively means
the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder; and (e) the term “written
communication” has the meaning set forth in Rule 405 under the Securities Act.

15.       Compliance with
USA PATRIOT Act. In accordance with the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October
26, 2001)), the Initial Purchasers are required to obtain, verify and record information that identifies their respective clients,
including the Company, which information may include the name and address of their respective clients, as well as other information
that will allow the Initial Purchasers to properly identify their respective clients.

16.       Miscellaneous.

(a)          Authority
of the Representative. Any action by the Initial Purchasers hereunder may be taken by J.P. Morgan Securities LLC on behalf
of the Initial Purchasers, and any such action taken by J.P. Morgan Securities LLC shall be binding upon the Initial Purchasers.

    	 	34	 

     

    

(b)          Notices.
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted
and confirmed by any standard form of telecommunication. Notices to the Initial Purchasers shall be given to the Representative
c/o J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179 (fax: 212-270-1063); Attention: Richard Gabriel. Notices
to the Company and the Guarantors shall be given to them at Consolidated Communications, Inc., 121 South 17th Street, Mattoon,
Illinois 61938, Attention: Steven L. Childers, with a copy to Schiff Hardin LLP, 233 South Wacker Drive, Suite 7100, Chicago, Illinois
60606, Attention: Alexander Young (fax: 312-258-5600).

(c)          Governing
Law. This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

(d)          Submission
to Jurisdiction. The Company and each of the Guarantors hereby submit to the exclusive jurisdiction of the U.S. federal and
New York state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or relating
to this Agreement or the transactions contemplated hereby. The Company and each of the Guarantors waive any objection which it
may now or hereafter have to the laying of venue of any such suit or proceeding in such courts. Each of the Company and each of
the Guarantors agrees that final judgment in any such suit, action or proceeding brought in such court shall be conclusive and
binding upon the Company and each Guarantor, as applicable, and may be enforced in any court to the jurisdiction of which Company
and each Guarantor, as applicable, is subject by a suit upon such judgment.

(e)          Waiver
of Jury Trial. Each of the parties hereto hereby waives any right to trial by jury in any suit or proceeding arising out of
or relating to this Agreement.

(f)          
Recognition of the U.S. Special Resolution Regimes.

(i) In the event that any Initial Purchaser that is a Covered
Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Initial Purchaser of this
Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would
be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by
the laws of the United States or a state of the United States.

(ii) In the event that any Initial Purchaser that is a Covered
Entity or a BHC Act Affiliate of such Initial Purchaser becomes subject to a proceeding under a U.S. Special Resolution Regime,
Default Rights under this Agreement that may be exercised against such Initial Purchaser are permitted to be exercised to no greater
extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by
the laws of the United States or a state of the United States.

    	 	35	 

     

    

As used in this Section 16(f):

“BHC Act Affiliate” has the meaning assigned
to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

“Covered Entity” means any of the following:

(i) a “covered entity” as that term is
defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

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

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

“Default Right” has the meaning assigned
to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

“U.S. Special Resolution Regime” means each of (i) the Federal
Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer
Protection Act and the regulations promulgated thereunder.

(g)          Counterparts.
This Agreement may be signed in counterparts (which may include counterparts delivered by any standard form of telecommunication),
each of which shall be an original and all of which together shall constitute one and the same instrument. Any signature to this
Agreement may be delivered by facsimile, electronic mail (including pdf) or any electronic signature complying with the U.S. federal
ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method and any counterpart so delivered
shall be deemed to have been duly and validly delivered and be valid and effective for all purposes to the fullest extent permitted
by applicable law. Each of the parties hereto represents and warrants to the other parties that it has the corporate or other
capacity and authority to execute this Agreement through electronic means and there are no restrictions for doing so in that party’s
constitutive documents.

(h)          Amendments
or Waivers. No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom,
shall in any event be effective unless the same shall be in writing and signed by the parties hereto.

    	 	36	 

     

    

(i)           
Headings. The headings herein are included for convenience of reference only and are not intended to be part of, or to affect
the meaning or interpretation of, this Agreement.

 

 

 

 

 

 

    	 	37	 

     

    

If the foregoing is in accordance with your understanding, please indicate
your acceptance of this Agreement by signing in the space provided below.

 

		Very truly yours,
	 	 
	 	CONSOLIDATED COMMUNICATIONS, INC.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CONSOLIDATED COMMUNICATIONS HOLDINGS, INC.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CONSOLIDATED COMMUNICATIONS ENTERPRISE SERVICES, INC.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CONSOLIDATED COMMUNICATIONS FINANCE III CO.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CONSOLIDATED COMMUNICATIONS OF NEW YORK COMPANY, LLC
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CONSOLIDATED COMMUNICATIONS OF WASHINGTON COMPANY, LLC
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO

 

    	 	38	 

     

    

	 	FAIRPOINT BUSINESS SERVICES LLC
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	TACONIC TELCOM CORP.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	TACONIC TECHNOLOGY CORP.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CHAUTAUQUA & ERIE COMMUNICATIONS, INC.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	C&E COMMUNICATIONS, LTD.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	BERKSHIRE CABLE CORP.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	BERKSHIRE CELLULAR, INC.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO

 

    	 	39	 

     

    

	 	BERKSHIRE NEW YORK ACCESS, INC.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CONSOLIDATED COMMUNICATIONS OF CALIFORNIA COMPANY
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	ST. JOE COMMUNICATIONS, INC.
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CONSOLIDATED COMMUNICATIONS OF KANSAS COMPANY
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CONSOLIDATED COMMUNICATIONS OF MINNESOTA COMPANY
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CONSOLIDATED COMMUNICATIONS OF MISSOURI COMPANY
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CONSOLIDATED COMMUNICATIONS OF OKLAHOMA COMPANY
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO

 

    	 	40	 

     

    

	 	CONSOLIDATED COMMUNICATIONS OF TEXAS COMPANY
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO
	 	 
	 	CONSOLIDATED COMMUNICATIONS OF COMERCO COMPANY 
	 	 
	 	By  /s/ Steven L. Childers
	 	     Name: Steven L. Childers
	 	     Title: CFO

 

 

 

 

 

 

    	 	41	 

     

    

Accepted: As of the date first written above

 

J.P. MORGAN SECURITIES LLC

 

For itself and on behalf of the

several Initial Purchasers listed

in Schedule 1 hereto.

 

 

 

	By	/s/ Jamie Elder	 
	 	Authorized Signatory
	 	 	 

 

 

 

    	 	42	 

     

    

Schedule 1

	Initial Purchaser	
        Principal Amount 

	J.P. Morgan Securities LLC	$151,875,000
	Morgan Stanley & Co. LLC 	$151,875,000
	Wells Fargo Securities, LLC	$151,875,000
	Goldman Sachs & Co. LLC	$118,125,000
	TD Securities (USA) LLC	$88,125,000
	Deutsche Bank Securities Inc.	$50,625,000
	Mizuho Securities USA LLC	$37,500,000
	 	 
	Total	$750,000,000

 

 

 

    	 	43	 

     

    

Schedule 2

Guarantors

	 	Entity	Jurisdiction of Organization
	1.     	Consolidated Communications Holdings, Inc.	Delaware
	2.     	Consolidated Communications Enterprise Services, Inc. 	Delaware
	3.     	Consolidated Communications Finance III Co.	Delaware
	4.     	Consolidated Communications of New York Company, LLC	Delaware
	5.     	Consolidated Communications of Washington Company, LLC	Delaware
	6.     	FairPoint Business Services LLC	Delaware
	7.     	Taconic TelCom Corp.	New York
	8.     	Taconic Technology Corp.	New York
	9.     	Chautauqua & Erie Communications, Inc.	New York
	10.  	C&E Communications, Ltd.	New York
	11.  	Berkshire Cable Corp.	New York
	12.  	Berkshire Cellular, Inc.	New York
	13.  	Berkshire New York Access, Inc.	New York
	14.  	Consolidated Communications of California Company	California
	15.  	St. Joe Communications, Inc.	Florida
	16.  	Consolidated Communications of Kansas Company	Kansas
	17.  	Consolidated Communications of Minnesota Company	Minnesota
	18.  	Consolidated Communications of Missouri Company	Missouri
	19.  	Consolidated Communications of Oklahoma Company	Oklahoma
	20.  	Consolidated Communications of Texas Company	Texas
	21.  	Consolidated Communications of Comerco Company	Washington

 

    	 	44	 

     

    

Schedule 3

Subsidiaries

	 	Entity	Jurisdiction of Organization
	1.     	Consolidated Communications of California Company	California
	2.     	Consolidated Communications Holdings, Inc.	Delaware
	3.     	Consolidated Communications Enterprise Services, Inc. 	Delaware
	4.     	Consolidated Communications Finance III Co.	Delaware
	5.     	Consolidated Communications of New York Company, LLC	Delaware
	6.     	Consolidated Communications of Washington Company, LLC	Delaware
	7.     	FairPoint Business Services LLC	Delaware
	8.     	GTE Mobilnet of Texas RSA #17 Limited Partnership	Delaware
	9.     	GTE Mobilnet of South Texas Limited Partnership	Delaware
	10.   	Consolidated Communications of Pennsylvania Company, LLC	Delaware
	11.   	Pennsylvania RSA No. 6 (I) Limited Partnership	Delaware
	12.   	Pennsylvania RSA No. 6 (II) Limited Partnership	Delaware
	13.   	Pittsburg SMSA Limited Partnership	Delaware
	14.   	Consolidated Communications of Colorado Company	Delaware
	15.   	Consolidated Communications of Northland Company	Delaware
	16.   	Consolidated Communications of Ohio Company, LLC	Delaware
	17.   	Consolidated Communications of Northern New England Company, LLC	Delaware
	18.   	Consolidated Communications of Vermont Company, LLC	Delaware
	19.   	St. Joe Communications, Inc.	Florida
	20.   	Consolidated Communications of Florida Company	Florida
	21.   	Consolidated Communications of Illinois Company	Illinois
	22.   	Consolidated Communications of Central Illinois Company	Illinois
	23.   	Consolidated Communications of Kansas Company	Kansas
	24.   	Consolidated Communications of Maine Company	Maine
	25.   	Consolidated Communications of Minnesota Company	Minnesota
	26.   	Consolidated Communications of Missouri Company	Missouri
	27.   	Taconic TelCom Corp.	New York
	28.   	Taconic Technology Corp.	New York
	29.   	Chautauqua & Erie Communications, Inc.	New York
	30.   	C&E Communications, Ltd.	New York
	31.   	Berkshire Cable Corp.	New York
	32.   	Berkshire Cellular, Inc.	New York
	33.   	Berkshire New York Access, Inc.	New York
	34.   	Wireless Access, LLC	New York
	35.   	New York Access Billing, LLC	New York
	36.   	Taconic Telephone Corp.	New York

 

    	 	45	 

     

    

	37.   	Chautauqua and Erie Telephone Corporation	New York
	38.   	Berkshire Telephone Corporation	New York
	39.   	New York Access Billing, LLC	New York
	40.   	Consolidated Communications of Oklahoma Company	Oklahoma
	41.   	Chouteau Cellular Telephone Company, a Limited Partnership	Oklahoma
	42.   	Consolidated Communications of Texas Company	Texas
	43.   	East Texas Fiber Line Incorporated	Texas
	44.   	The Texas Lone Star Network LLC	Texas
	45.   	Consolidated Communications of Comerco Company	Washington

 

 

    	 	46	 

     

    

Schedule 4

Real Property

	 	State	City	Address
	1.     	CA	Roseville	114 Vernon St
	2.     	CA	Roseville	200 Vernon St
	3.     	CA	Sacramento	3008 U St
	4.     	FL	Port St Joe	502 Cecil G. Costin Sr Blvd
	5.     	IL	Mattoon	1501 Charleston Ave
	6.     	ME	Augusta	139 STATE ST
	7.     	ME	Bangor	59 PARK ST
	8.     	ME	Bath	766 HIGH ST
	9.     	ME	Biddeford	10 JEFFERSON ST
	10.  	ME	Lewiston	66 ASH ST
	11.  	ME	Portland	45 FOREST AVE
	12.  	ME	Presque Isle	30 2ND ST
	13.  	ME	Rockland	39-41 LIMEROCK ST
	14.  	ME	Waterville	10 APPLETON ST
	15.  	MN	Mankato	221 East Hickory Street
	16.  	MN	Mankato	2730 3rd Avenue
	17.  	NH	Concord	12 SOUTH ST
	18.  	NH	Derry	52 E BROADWAY
	19.  	NH	Dover	57 THOMAS ST
	20.  	NH	Hanover	4 SCHOOL ST
	21.  	NH	Keene	64 WASHINGTON ST
	22.  	NH	Laconia	762 N MAIN ST
	23.  	NH	Manchester	25 CONCORD ST
	24.  	NH	Manchester	770 ELM ST
	25.  	NH	Nashua	W PEARL ST & CEDAR ST
	26.  	NH	Portsmouth	56 ISLINGTON ST
	27.  	PA	Gibsonia	4008 Gibsonia Road Complex
	28.  	TX	Conroe	350 South Loop 336 West
	29.  	VT	Brattleboro	213 MAIN ST
	30.  	VT	Burlington	266 MAIN ST
	31.  	VT	Essex Junction	9 LINCOLN ST
	32.  	VT	Rutland	55 WEST ST
	33.  	VT	Saint Johnsbury	1094 MAIN ST
	34.  	VT	White River	119 GATES ST

    	 	47	 

     

    

ANNEX A

Additional Time of Sale Information

1.       Term sheet containing the terms of the
Securities, substantially in the form of Annex B.

 

 

 

 

 

 

    	 	48	 

     

    

ANNEX B

Pricing Term Sheet

 

[See attached]

 

 

 

 

 

 

 

 

    	 	49	 

     

    

Pricing Term Sheet, dated September 18, 2020

to Preliminary Offering Memorandum dated September 14, 2020

Strictly Confidential

 

 

Consolidated Communications, Inc.

 

6.500% Senior Secured Notes due 2028

 

 

This pricing term sheet is qualified in its entirety by reference to the Preliminary Offering
Memorandum dated, September 14, 2020 (the “Preliminary Offering Memorandum”). The information in this pricing term
sheet supplements the Preliminary Offering Memorandum and updates and supersedes the information in the Preliminary Offering Memorandum
to the extent it is inconsistent with the information in the Preliminary Offering Memorandum. Other information (including financial
information) presented in the Preliminary Offering Memorandum is deemed to have changed to the extent affected by the changes described
herein. Terms used and not defined herein have the meanings assigned in the Preliminary Offering Memorandum.

 

The notes (as defined below) have not been and will not be registered under the Securities
Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. The notes are being
offered or sold only to (1) persons reasonably believed to be “qualified institutional buyers,” as defined in Rule
144A under the Securities Act and (2) outside the United States to non-U.S. persons in compliance with Regulation S under the Securities
Act.

The aggregate offering size of $750,000,000 represents a decrease of $250,000,000 from the
amount offered under the Preliminary Offering Memorandum. As a result of the change in the aggregate offering size, it is expected
that the size of the Proposed Term Loans under the Proposed Senior Secured Credit Facilities will be increased by $250,000,000
from $1,000,000,000 to $1,250,000,000 (and corresponding changes will be made where applicable throughout the Preliminary Offering
Memorandum).

 

    	 	50	 

     

    

	Issuer:	Consolidated Communications, Inc.
	Security description:	6.500% Senior Secured Notes due 2028 (the “notes”)
	Distribution:	144A / Reg S without Registration Rights
	Size:	$750,000,000 
	Gross proceeds:	$750,000,000
	Maturity:	October 1, 2028
	Coupon:	6.500%
	Issue price:	100.000% 
	Yield to maturity:	6.500%
	Spread to Benchmark Treasury:	+597 bps
	Benchmark Treasury:	UST 2.875% due August 15, 2028
	Interest Payment Dates:	April 1 and October 1, commencing April 1, 2021
	Record Dates	March 15 and September 15
	Equity clawback:	Up to 40% at 106.500% prior to October 1, 2023
	Optional redemption:	Make-whole call @ Treasury +50 bps prior to October 1, 2023, then:
	 	On or after October 1, 2023:	Price:
	 	2023	104.875%
	 	2024	103.250%
	 	2025	101.625%
	 	2026 and thereafter	100.000%
	Change of control:	Putable at 101% of principal plus accrued and unpaid interest
	Trade date:	September 18, 2020
	Settlement:	
        T+10; October 2, 2020

        It is expected that delivery of the notes will be made against payment on the notes
        on or about October 2, 2020, which is the tenth business day following the date hereof (such settlement cycle being referred to
        as “T+10”). Under Rule 15c6-1 under the Exchange Act, trades in the secondary market generally are required to settle
        in two business days unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade
        the notes on the date of pricing or the next seven business days will be required to specify an alternative settlement cycle at
        the time of any such trade to prevent a failed settlement. Purchasers of the notes who wish to make such trades should consult
        their own advisors.

	CUSIP:	144A: 20903XAF0	Reg S: U2089PAD3
	ISIN:	144A: US20903XAF06	Reg S: USU2089PAD34
	Denominations/Multiple:	2,000 x 1,000
	Ratings*:	B2 (Moody’s) / B+ (S&P)
	Bookrunners:	J.P. Morgan Securities LLC
	 	Morgan Stanley & Co. LLC
	 	Wells Fargo Securities, LLC
	 	Goldman Sachs & Co. LLC
	 	TD Securities (USA) LLC
	 	Deutsche Bank Securities Inc.
	 	
        Mizuho Securities USA LLC

	Changes to Preliminary Offering Memorandum: 	
         

         

	

    	 	51	 

     

    

	 

The section titled “Description of Notes” is hereby revised to:

		i.	under “Certain Covenants—Restricted Payments”, clarify that the amount under clause (A)(3)(a) builds from
October 1, 2020 (as opposed to the Issue Date) and amounts available under clauses (A)(3)(b) and (B)(3) will not be increased by
proceeds from the Second Purchase Price Payment (as defined in the Investment Agreement);

		ii.	clarify that Indebtedness Incurred pursuant to any Investment Transaction under clause (24) of the second paragraph of “Certain
Covenants—Indebtedness” may be refinanced;

		iii.	restrict (i) material intellectual property from being contributed to an Unrestricted Subsidiary under the definition of “Asset
Sale”, (ii) any Investment in an Unrestricted Subsidiary in the form of material intellectual property under the definition
of “Permitted Investments” and (iii) a Subsidiary from being designated as unrestricted if it holds any material intellectual
property under “Certain Covenants—Designation of Restricted and Unrestricted Subsidiaries”; and

		iv.	change references to “Subsidiaries” to “Restricted Subsidiaries” in the definitions of “Capital
Expenditures”, “Consolidated Indebtedness”, “Consolidated Interest Expense”, “Consolidated
Net Income” and “Qualified Cash and Cash Equivalents” for internal consistency.

__________________

This material is confidential and is for your information only and is not intended
to be used by anyone other than you. This information does not purport to be a complete description of these notes or the offering.
Please refer to the Preliminary Offering Memorandum for a complete description. 

    	 	52	 

     

    

This communication is being distributed solely to persons reasonably believed to
be “qualified institutional buyers,” as defined in Rule 144A under the Securities Act, and outside the United States
solely to Non-U.S. persons in compliance with Regulation S under the Securities Act.

This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such
jurisdiction.

*A securities rating is not a recommendation to buy, sell or hold securities and may
be subject to revision or withdrawal at any time.

Any disclaimer or other notice that may appear below is not applicable to this communication
and should be disregarded. Such disclaimer or notice was automatically generated as a result of this communication being sent by
Bloomberg or another email system.

 

 

 

 

    	 	53	 

     

    

ANNEX C

 

Restrictions on Offers and Sales Outside the United States

In connection with offers and sales of Securities outside the
United States:

(a)       Each Initial Purchaser
acknowledges that the Securities have not been registered under the Securities Act and may not be offered or sold within the United
States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in transactions not subject
to, the registration requirements of the Securities Act.

(b)       Each Initial Purchaser,
severally and not jointly, represents, warrants and agrees that:

(i)       Such Initial
Purchaser has offered and sold the Securities, and will offer and sell the Securities, (A) as part of their distribution at any
time and (B) otherwise until 40 days after the later of the commencement of the offering of the Securities and the Closing Date,
only in accordance with Regulation S under the Securities Act (“Regulation S”) or Rule 144A or any other available
exemption from registration under the Securities Act.

(ii)       None of such
Initial Purchaser or any of its affiliates or any other person acting on its or their behalf has engaged or will engage in any
directed selling efforts with respect to the Securities, and all such persons have complied and will comply with the offering restrictions
requirement of Regulation S.

(iii)       At or prior
to the confirmation of sale of any Securities sold in reliance on Regulation S, such Initial Purchaser will have sent to each distributor,
dealer or other person receiving a selling concession, fee or other remuneration that purchases Securities from it during the distribution
compliance period a confirmation or notice to substantially the following effect:

The Securities covered hereby have not been registered under
the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the
United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise
until 40 days after the later of the commencement of the offering of the Securities and the date of original issuance of the Securities,
except in accordance with Regulation S or Rule 144A or any other available exemption from registration under the Securities Act.
Terms used above have the meanings given to them by Regulation S.

(iv)       Such Initial
Purchaser has not and will not enter into any contractual arrangement with any distributor with respect to the distribution of
the Securities, except with its affiliates or with the prior written consent of the Company.

    	 	54	 

     

    

Terms used in paragraph (a) and this paragraph (b) and not otherwise defined in this
Agreement have the meanings given to them by Regulation S.

(c)       Each Initial Purchaser
acknowledges that no action has been or will be taken by the Company that would permit a public offering of the Securities, or
possession or distribution of any of the Time of Sale Information, the Offering Memorandum, any Issuer Written Communication or
any other offering or publicity material relating to the Securities, in any country or jurisdiction where action for that purpose
is required.

 

 

 

 

55Document

Exhibit 10.6

			
	Execution Version

AZZ Inc.
$150,000,000

$70,000,000 2.77% Senior Notes, Series 2020A,
due January 19, 2028
$80,000,000 3.17% Senior Notes, Series 2020B,
due December 17, 2032

________________
Note Purchase Agreement
________________
Dated as of October 9, 2020
			
	

Table of Contents
Section    Heading    Page
						
	Section 1.    Authorization of Notes
	1

	Section 1.1.    Description of Series 2020 Notes
	1

	Section 1.2.    Interest Rate
	1

	Section 2.    Sale and Purchase of Notes
	2

	Section 2.1.    Series 2020 Notes
	2

	Section 2.2.    Additional Series of Notes
	2

	Section 2.3.    Subsidiary Guaranty
	3

	Section 3.    Closing
	4

	Section 4.    Conditions to Closing
	4

	Section 4.1.    Representations and Warranties
	4

	Section 4.2.    Performance; No Default
	4

	Section 4.3.    Compliance Certificates
	5

	Section 4.4.    Opinions of Counsel
	5

	Section 4.5.    Purchase Permitted By Applicable Law, Etc
	5

	Section 4.6.    Sale of Other Notes
	6

	Section 4.7.    Payment of Special Counsel Fees
	6

	Section 4.8.    Private Placement Number
	6

	Section 4.9.    Changes in Corporate Structure
	6

	Section 4.10.    Subsidiary Guaranty
	6

	Section 4.11.    Funding Instructions
	6

	Section 4.12.    Proceedings and Documents
	6

	Section 5.    Representations and Warranties of the Company
	7

	Section 5.1.    Organization; Power and Authority
	7

	Section 5.2.    Authorization, Etc
	7

	Section 5.3.    Disclosure
	7

	Section 5.4.    Organization and Ownership of Shares of Subsidiaries; Affiliates
	8

	Section 5.5.    Financial Statements; Material Liabilities
	8

	Section 5.6.    Compliance with Laws, Other Instruments, Etc
	8

	Section 5.7.    Governmental Authorizations, Etc
	9

	Section 5.8.    Litigation; Observance of Agreements, Statutes and Orders
	9

	Section 5.9.    Taxes
	9

	Section 5.10.    Title to Property; Leases
	9

	Section 5.11.    Licenses, Permits, Etc
	10

	Section 5.12.    Compliance with Employee Benefit Plans
	10

	Section 5.13.    Private Offering by the Company
	11

	Section 5.14.    Use of Proceeds; Margin Regulations
	11

	Section 5.15.    Existing Debt; Future Liens
	12

	Section 5.16.    Foreign Assets Control Regulations, Etc
	12

    - 1 -

						
	Section 5.17.    Status under Certain Statutes
	13

	Section 5.18.    Environmental Matters
	13

	Section 5.19.    Notes Rank Pari Passu
	14

	Section 6.    Representations of the Purchaser
	14

	Section 6.1.    Purchase for Investment
	14

	Section 6.2.    Source of Funds
	14

	Section 6.3.    Accredited Investor
	16

	Section 7.    Information as to Company
	16

	Section 7.1.    Financial and Business Information
	16

	Section 7.2.    Officer’s Certificate
	19

	Section 7.3.    Visitation
	19

	Section 7.4.    Electronic Delivery
	20

	Section 8.    Payment of the Notes
	21

	Section 8.1.    Maturity of Series 2020 Notes
	21

	Section 8.2.    Optional Prepayments with Make-Whole Amount
	21

	Section 8.3.    Allocation of Partial Prepayments
	21

	Section 8.4.    Maturity; Surrender, Etc
	21

	Section 8.5.    Purchase of Notes
	22

	Section 8.6.    MakeWhole Amount for the Series 2020 Notes
	22

	Section 8.7.    Change in Control
	23

	Section 8.8.    Payments Due on Non-Business Days
	26

	Section 9.    Affirmative Covenants
	26

	Section 9.1.    Compliance with Laws
	26

	Section 9.2.    Insurance
	26

	Section 9.3.    Maintenance of Properties
	26

	Section 9.4.    Payment of Taxes and Claims
	27

	Section 9.5.    Corporate Existence, Etc
	27

	Section 9.6.    Notes to Rank Pari Passu
	27

	Section 9.7.    Additional Subsidiary Guarantors
	27

	Section 9.8.    Books and Records
	28

	Section 10.    Negative Covenants
	29

	Section 10.1.    Leverage Ratio
	29

	Section 10.2.    Interest Coverage Ratio
	29

	Section 10.3.    [Reserved]
	29

	Section 10.4.    Priority Indebtedness
	29

	Section 10.5.    Limitation on Liens
	29

	Section 10.6.    Dispositions
	31

	Section 10.7.    Merger; Consolidation, Etc
	32

	Section 10.8.    Line of Business
	33

	Section 10.9.    Transactions with Affiliates
	33

	Section 10.10.    Economic Sanctions, Etc
	33

    - 2 -

						
	Section 11.    Events of Default
	34

	Section 12.    Remedies on Default, Etc
	36

	Section 12.1.    Acceleration
	36

	Section 12.2.    Other Remedies
	37

	Section 12.3.    Rescission
	37

	Section 12.4.    No Waivers or Election of Remedies, Expenses, Etc
	37

	Section 13.    Registration; Exchange; Substitution of Notes
	38

	Section 13.1.    Registration of Notes
	38

	Section 13.2.    Transfer and Exchange of Notes
	38

	Section 13.3.    Replacement of Notes
	39

	Section 14.    Payments on Notes
	39

	Section 14.1.    Place of Payment
	39

	Section 14.2.    Home Office Payment
	39

	Section 14.3.    FATCA Information
	40

	Section 15.    Expenses, Etc
	40

	Section 15.1.    Transaction Expenses
	40

	Section 15.2.    Certain Taxes
	41

	Section 15.3.    Survival
	41

	Section 16.    Survival of Representations and Warranties; Entire Agreement
	41

	Section 17.    Amendment and Waiver
	41

	Section 17.1.    Requirements
	41

	Section 17.2.    Solicitation of Holders of Notes
	42

	Section 17.3.    Binding Effect, Etc
	43

	Section 17.4.    Notes Held by Company, Etc
	43

	Section 18.    Notices
	43

	Section 18.1.    Notices Generally
	43

	Section 19.    Reproduction of Documents
	44

	Section 20.    Confidential Information
	44

	Section 21.    Substitution of Purchaser
	45

	Section 22.    Miscellaneous
	46

	Section 22.1.    Successors and Assigns
	46

	Section 22.2.    Accounting Terms
	46

	Section 22.3.    Severability
	47

	Section 22.4.    Construction, Etc
	47

	Section 22.5.    Counterparts
	47

	Section 22.6.    Governing Law
	48

	Section 22.7.    Jurisdiction and Process; Waiver of Jury Trial
	48

Schedule A    —    Information Relating to Purchasers
    - 3 -

Schedule B    —    Defined Terms

Schedule 4.9    —    Changes in Corporate Structure

Schedule 5.4    —    Subsidiaries of the Company, Ownership of Subsidiary Stock, Affiliates

Schedule 5.5    —    Financial Statements

Schedule 5.15    —    Existing Indebtedness

Schedule 10.5    —    Existing Liens

Exhibit 1A    —    Form of 2.77% Senior Notes, Series 2020A, due January 19, 2028

Exhibit 1B    —    Form of 3.17% Senior Notes, Series 2020B, due December 17, 2032

Exhibit 2.3    —    Form of Subsidiary Guaranty

Exhibit 4.4(a)    —    Form of Opinion of Special Counsel to the Company

Exhibit 4.4(b)    —    Form of Opinion of Special Counsel to the Purchasers

Exhibit S    —    Form of Supplement to Note Purchase Agreement

    - 4 -

AZZ Inc.
One Museum Place
3100 West 7th Street, Suite 500
Fort Worth, Texas 76107
$70,000,000 2.77% Senior Notes, Series 2020A, due January 19, 2028
$80,000,000 3.17% Senior Notes, Series 2020B, due December 17, 2032
Dated as of
October 9, 2020
To the Purchasers listed in
the attached Schedule A:
Ladies and Gentlemen:
AZZ Inc., a Texas corporation (the “Company”), agrees with each of the Purchasers as follows:
Section 1.    Authorization of Notes.
    Section 1.1.    Description of Series 2020 Notes.  The Company will authorize the issue and sale of the following Senior Notes: (i) $70,000,000 aggregate principal amount of its 2.77% Senior Notes, Series 2020A, due January 19, 2028 (the “Series 2020A Notes”) and (ii) $80,000,000 aggregate principal amount of its 3.17% Senior Notes, Series 2020B, due December 17, 2032 (the “Series 2020B Notes”, together with the Series 2020A Notes, the “Series 2020 Notes”) together with each Series of Additional Notes which may from time to time be issued pursuant to the provisions of Section 2.2 are collectively referred to as the “Notes” (such term shall also include any such notes issued in substitution therefor pursuant to Section 13 of this Agreement).  The Series 2020 Notes shall be substantially in the form set out in Exhibit 1A and Exhibit 1B, respectively, with such changes therefrom, if any, as may be approved by the Purchasers and the Company.  Certain capitalized terms used in this Agreement are defined in Schedule B; references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.
    Section 1.2.    Interest Rate.  The Series 2020 Notes shall bear interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid principal thereof from the date of issuance at their stated rate of interest payable semi-annually in arrears on the 19th day of January and July in each year and at maturity commencing on July 17, 2021, until such principal sum shall have become due and payable (whether at maturity, upon notice of prepayment or otherwise) and interest (so computed) on any overdue principal, interest or Make-Whole Amount from the due date thereof (whether by acceleration or otherwise) and, during the continuance of an Event of Default, on the unpaid balance hereof, at the Default Rate until paid.

AZZ Inc.        Note Purchase Agreement

Section 2.    Sale and Purchase of Notes.
    Section 2.1.    Series 2020 Notes.  Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from the Company, at the applicable Closing provided for in Section 3, the Series 2020 Notes in the principal amount and Series specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount thereof.  The obligations of each Purchaser (and each Additional Purchaser) hereunder are several and not joint obligations and no Purchaser (and no Additional Purchaser) shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser (or Additional Purchaser) hereunder.
    Section 2.2.    Additional Series of Notes.  The Company may, from time to time, in its sole discretion but subject to the terms hereof, issue and sell one or more additional Series of its unsecured promissory notes under the provisions of this Agreement pursuant to a supplement (a “Supplement”) substantially in the form of Exhibit S, provided that the aggregate principal amount of Notes of all Series outstanding pursuant to all Supplements in accordance with the terms of this Section 2.2 shall not exceed $750,000,000.  Each additional Series of Notes (the “Additional Notes”) issued pursuant to a Supplement shall be subject to the following terms and conditions:
    (i)    each Series of Additional Notes, when so issued, shall be differentiated from all previous Series by sequential numeric and alphabetical designation inscribed thereon;
    (ii)    Additional Notes of the same Series may consist of more than one different and separate tranches and may differ with respect to outstanding principal amounts, maturity dates, interest rates and premiums, if any, and price and terms of redemption or payment prior to maturity, but all such different and separate tranches of the same Series shall vote as a single class and constitute one Series;
    (iii)    each Series of Additional Notes shall be dated the date of issue, bear interest at such rate or rates, mature on such date or dates, be subject to such mandatory and optional prepayment on the dates and at the premiums, if any, have such additional or different conditions precedent to closing, such representations and warranties and such additional covenants as shall be specified in the Supplement under which such Additional Notes are issued and upon execution of any such Supplement, this Agreement shall be amended (a) to reflect such additional covenants without further action on the part of the holders of the Notes outstanding under this Agreement, provided, that any such additional covenants shall inure to the benefit of all holders of Notes so long as any Additional Notes issued pursuant to such Supplement remain outstanding, and (b) to reflect such representations and warranties as are contained in such Supplement for the benefit of the holders of such Additional Notes in accordance with the provisions of Section 16 (for the avoidance of doubt, references to “additional” covenants in this Section includes any covenants which are more favorable to the purchaser of such Additional Notes);
    -2-

AZZ Inc.        Note Purchase Agreement

    (iv)    each Series of Additional Notes issued under this Agreement shall be in substantially the form of Exhibit 1 to Exhibit S hereto with such variations, omissions and insertions as are necessary or permitted hereunder;
    (v)    the minimum principal amount of any Note issued under a Supplement shall be $100,000, except as may be necessary to evidence the outstanding amount of any Note originally issued in a denomination of $100,000 or more;
    (vi)    all Additional Notes shall constitute Senior Indebtedness of the Company and shall rank pari passu with all other outstanding Notes; and
    (vii)    no Additional Notes shall be issued hereunder if at the time of issuance thereof and after giving effect to the application of the proceeds thereof, any Default or Event of Default shall have occurred and be continuing.
The obligations of the Additional Purchasers to purchase any Additional Notes shall be subject to the following conditions precedent, in addition to the conditions specified in the Supplement pursuant to which such Additional Notes may be issued:
    (a)    Compliance Certificate.  A duly authorized Senior Financial Officer shall execute and deliver to each Additional Purchaser and each holder of Notes an Officer’s Certificate dated the date of issue of such Series of Additional Notes stating that such officer has reviewed the provisions of this Agreement (including any Supplements hereto) and setting forth the information and computations (in sufficient detail) required in order to establish whether after giving effect to the issuance of the Additional Notes and after giving effect to the application of the proceeds thereof, the Company is in compliance with the requirements of Section 10.1 on such date (based upon the financial statements for the most recent fiscal quarter ended prior to the date of such certificate).
    (b)    Execution and Delivery of Supplement.  The Company and each such Additional Purchaser shall execute and deliver a Supplement substantially in the form of Exhibit S hereto.
    (c)    Representations of Additional Purchasers.  Each Additional Purchaser shall have confirmed in the Supplement that the representations set forth in Section 6 therein are true with respect to such Additional Purchaser on and as of the date of issue of the Additional Notes.
    (d)    Execution and Delivery of Guaranty Ratification.  Each Subsidiary Guarantor shall execute and deliver a guaranty ratification in the form attached to the Subsidiary Guaranty.
    Section 2.3.    Subsidiary Guaranty.  The payment by the Company of all amounts due with respect to the Notes and the performance by the Company of its obligations under this Agreement will be absolutely and unconditionally guaranteed by the Subsidiary Guarantors pursuant to the Subsidiary Guaranty Agreement dated as of even date herewith, which shall be 
    -3-

AZZ Inc.        Note Purchase Agreement

substantially in the form of Exhibit 2.3 attached hereto, and otherwise in accordance with the provisions of Section 9.7 hereof (the “Subsidiary Guaranty”).
Section 3.    Closing.
The execution and delivery of the Note Purchase Agreement shall occur on October 9, 2020.  The sale and purchase of the Series 2020 Notes to be purchased by each Purchaser shall occur at two closings at the offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago, Illinois 60603 at 8:00 a.m. Central time, at a closing (each a “Closing”) as follows: (a) the sale and purchase of the Series 2020B Notes shall occur on December 17, 2020 or on such other Business Day thereafter on or prior to December 21, 2020 as may be agreed upon by the Company and the Purchasers (the “First Closing”) and (b) the sale and purchase of the Series 2020A Notes shall occur on January 19, 2021 or on such other Business Day thereafter on or prior to January 22, 2021 as may be agreed upon by the Company and the Purchasers (the “Second Closing”).  On each Closing Date, the Company will deliver to each Purchaser the applicable Series 2020 Notes to be purchased by such Purchaser in the form of a single Series 2020 Note in the appropriate Series (or such greater number of Series 2020 Notes in denominations of at least $100,000 as such Purchaser may request) dated the date of the applicable Closing and registered in such Purchaser’s name (or in the name of such Purchaser’s nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to Account Number 002605100154, at Bank of America, Dallas, Texas, ABA Number 026009593, in the Account Name of AZZ Group LLC.  If, on the date of any Closing, the Company shall fail to tender such Series 2020 Notes to any Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure by the Company to tender such Series 2020 Notes or any of the conditions specified in Section 4 not having been fulfilled to such Purchaser’s satisfaction.
Section 4.    Conditions to Closing.
Each Purchaser’s obligation to purchase and pay for the Series 2020 Notes to be sold to such Purchaser at each Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at each Closing, of the following conditions applicable to such Closing:
    Section 4.1.    Representations and Warranties.
    (a)    Representations and Warranties of the Company.  The representations and warranties of the Company in this Agreement shall be correct when made and at the time of such Closing.
    (b)    Representations and Warranties of the Subsidiary Guarantors.  The representations and warranties of the Subsidiary Guarantors in the Subsidiary Guaranty shall be correct when made and at the time of such Closing.
    -4-

AZZ Inc.        Note Purchase Agreement

    Section 4.2.    Performance; No Default.  The Company and each Subsidiary Guarantor shall have performed and complied with all agreements and conditions contained in this Agreement and the Subsidiary Guaranty required to be performed or complied with by the Company and each such Subsidiary Guarantor prior to or at such Closing, and after giving effect to the issue and sale of the Series 2020 Notes (and the application of the proceeds thereof as contemplated by Section 5.14), no Default or Event of Default shall have occurred and be continuing.  Neither the Company nor any Subsidiary shall have entered into any transaction since the date of the Memorandum that would have been prohibited by Section 10 hereof had such Section applied since such date.
    Section 4.3.    Compliance Certificates.
    (a)    Officer’s Certificate of the Company.  The Company shall have delivered to such Purchaser an Officer’s Certificate, dated the date of such Closing, certifying that the conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled.
    (b)    Secretary’s Certificate of the Company.  The Company shall have delivered to such Purchaser a certificate of its Secretary or Assistant Secretary, dated the date of such Closing, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Series 2020 Notes and this Agreement.
    (c)    Officer’s Certificate of the Subsidiary Guarantors.  Each Subsidiary Guarantor shall have delivered to such Purchaser an Officer’s Certificate, dated the date of such Closing, certifying that the conditions specified in Sections 4.1(b), 4.2 and 4.9 have been fulfilled.
    (d)    Secretary’s Certificate of the Subsidiary Guarantors.  Each Subsidiary Guarantor shall have delivered to such Purchaser a certificate of its Secretary or Assistant Secretary, dated the date of such Closing, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Subsidiary Guaranty.
    Section 4.4.    Opinions of Counsel.  Such Purchaser shall have received opinions in form and substance satisfactory to such Purchaser, dated the date of such Closing (a) from Baker & McKenzie LLP, special counsel for the Company, covering the matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to the Purchasers), and (b) from Chapman and Cutler LLP, the Purchasers’ special counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(b) and covering such other matters incident to such transactions as such Purchaser may reasonably request.
    Section 4.5.    Purchase Permitted By Applicable Law, Etc.  On the date of such Closing such Purchaser’s purchase of Series 2020 Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including, without limitation, 
    -5-

AZZ Inc.        Note Purchase Agreement

Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof.  If requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.
    Section 4.6.    Sale of Other Notes.  Contemporaneously with such Closing the Company shall sell to each other Purchaser and each other Purchaser shall purchase the Series 2020 Notes to be purchased by it at such Closing as specified in Schedule A.
    Section 4.7.    Payment of Special Counsel Fees.  Without limiting the provisions of Section 15.1, the Company shall have paid on or before the date of this Agreement and the date of such Closing, the reasonable fees, reasonable charges and reasonable disbursements of the Purchasers’ special counsel referred to in Section 4.4 to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the date of this Agreement and the date of such Closing.
    Section 4.8.    Private Placement Number.  A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for each series of the Series 2020 Notes.
    Section 4.9.    Changes in Corporate Structure.  Neither the Company nor any Subsidiary Guarantor shall have changed its jurisdiction of organization or, except as reflected in Schedule 4.9, been a party to any merger or consolidation, or shall have succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5.
    Section 4.10.    Subsidiary Guaranty.  The Subsidiary Guaranty shall have been duly authorized, executed and delivered by each Subsidiary Guarantor, shall constitute the legal, valid and binding contract and agreement of each Subsidiary Guarantor and such Purchaser shall have received a true, correct and complete copy thereof.
    Section 4.11.    Funding Instructions.  At least five (5) Business Days prior to the date of such Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3 including (i) the name and address of the transferee bank, (ii) such transferee bank’s ABA number and (iii) the account name and number into which the purchase price for the Series 2020 Notes is to be deposited.  Each Purchaser has the right, but not the obligation, upon written notice (which may be by email) to the Company, to elect to deliver a micro deposit (less than $50.00) to the account identified in the written instructions no later than two (2) Business Days prior to Closing.  If a Purchaser delivers a micro deposit, a Responsible Officer must verbally verify the receipt and amount of the micro deposit to such Purchaser on a telephone call initiated by such Purchaser prior to Closing.  The Company shall not be obligated to return the amount of the micro deposit, nor will the amount of the micro deposit be netted against the Purchaser’s purchase price of the Notes.
    -6-

AZZ Inc.        Note Purchase Agreement

    Section 4.12.    Proceedings and Documents.  All corporate and other organizational proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be reasonably satisfactory to such Purchaser and its special counsel, and such Purchaser and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request.
Section 5.    Representations and Warranties of the Company.
The Company represents and warrants to each Purchaser that:
    Section 5.1.    Organization; Power and Authority.  The Company is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The Company has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the Series 2020 Notes and to perform the provisions hereof and thereof.
    Section 5.2.    Authorization, Etc.  This Agreement and the Series 2020 Notes have been duly authorized by all necessary corporate action on the part of the Company, and this Agreement constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
    Section 5.3.    Disclosure.  The Company, through its agent, US Bancorp Investments, Inc., has delivered to each Purchaser a copy of a Private Placement Memorandum, dated September 2020 (the “Memorandum”) and a copy of the AZZ Inc. Investor Presentation dated September 3, 2020 (the “Presentation”), each relating to the transactions contemplated hereby.  The Memorandum, the Presentation and the documents filed by the Company with the Securities and Exchange Commission (the “Public Filings”) fairly describe, in all material respects, the general nature of the business and principal properties of the Company and its Subsidiaries.  This Agreement, the Memorandum, the Presentation, the Public Filings, the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated hereby and the financial statements referred to in Section 5.5, in each case, delivered (or deemed to be delivered by reference to the Public Filings) to the Purchasers prior to September 16, 2020 (being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made.  Except as disclosed in the Disclosure Documents, 
    -7-

AZZ Inc.        Note Purchase Agreement

since February 29, 2020, there has been no change in the financial condition, operations, business, properties or prospects of the Company or any Subsidiary except changes that individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect.  There is no fact known to the Company that would reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents.
    Section 5.4.    Organization and Ownership of Shares of Subsidiaries; Affiliates.  (a) Schedule 5.4 contains (except as noted therein) complete and correct lists of (i) the Company’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary and whether such Subsidiary is a Subsidiary Guarantor, (ii) the Company’s Affiliates, other than Subsidiaries, and (iii) the Company’s directors and senior officers.
    (b)    All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.4).
    (c)    Each Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact.
    (d)    No Subsidiary is a party to, or otherwise subject to any legal, regulatory, contractual or other restriction (other than this Agreement, the agreements listed on Schedule 5.4 and customary limitations imposed by corporate law or similar statutes) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary.
    Section 5.5.    Financial Statements; Material Liabilities.  The Company has delivered to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on Schedule 5.5.  All of such financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial position of the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments).  The Company and its Subsidiaries do not have any Material liabilities 
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AZZ Inc.        Note Purchase Agreement

that are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.
    Section 5.6.    Compliance with Laws, Other Instruments, Etc.  The execution, delivery and performance by the Company of this Agreement and the Series 2020 Notes will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter, regulations or by-laws, shareholders agreement or any other agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary, or (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary.
    Section 5.7.    Governmental Authorizations, Etc.  No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement or the Series 2020 Notes.
    Section 5.8.    Litigation; Observance of Agreements, Statutes and Orders.  (a) There are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
    (b)    Neither the Company nor any Subsidiary is (i) in default under any agreement or instrument to which it is a party or by which it is bound, (ii) in violation of any order, judgment, decree or ruling of any court, any arbitrator of any kind or any Governmental Authority or (iii) in violation of any applicable law, ordinance, rule or regulation of any Governmental Authority (including Environmental Laws, the USA PATRIOT Act or any of the other laws and regulations that are referred to in Section 5.16), which default or violation could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
    Section 5.9.    Taxes.  The Company and its Subsidiaries have filed all tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which is not individually or in the aggregate Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP.  The Company knows of no basis for any other tax or assessment that could, individually or in the aggregate, reasonably be expected to have a 
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AZZ Inc.        Note Purchase Agreement

Material Adverse Effect.  The charges, accruals and reserves on the books of the Company and its Subsidiaries in respect of Federal, state or other taxes for all fiscal periods are adequate in all material respects.  The Federal income tax liabilities of the Company and its Subsidiaries have been finally determined (whether by reason of completed audits or the statute of limitations having run) for all fiscal years up to and including the fiscal year ended February 29, 2016.
    Section 5.10.    Title to Property; Leases.  The Company and its Subsidiaries have good and sufficient title to their respective properties that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after such date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement.  All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all material respects.
    Section 5.11.    Licenses, Permits, Etc.  (a) The Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known conflict with the rights of others.
    (b)    To the best knowledge of the Company, no product or service of the Company or any of its Subsidiaries infringes in any material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by any other Person.
    (c)    To the best knowledge of the Company, there is no Material violation by any Person of any right of the Company or any of its Subsidiaries with respect to any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by the Company or any of its Subsidiaries.
    Section 5.12.    Compliance with Employee Benefit Plans.  (a) The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that could, individually or in the aggregate, reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to section 430(k) of the Code or to any such penalty or excise tax provisions under the Code or federal law or section 4068 of ERISA or by the granting of a security interest in connection with the amendment of a Plan, other than such liabilities or Liens as would not be individually or in the aggregate Material.
    (b)    The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end of such Plan’s most recently ended plan 
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AZZ Inc.        Note Purchase Agreement

year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities.  The present value of the accrued benefit liabilities (whether or not vested) under each NonU.S. Plan that is funded, determined as of the end of the Company’s most recently ended fiscal year on the basis of reasonable actuarial assumptions, did not exceed the current value of the assets of such NonU.S. Plan allocable to such benefit liabilities by more than $150,000.  The term “benefit liabilities” has the meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified in section 3 of ERISA.
    (c)    The Company and its ERISA Affiliates have not incurred (i) withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate would reasonably be expected to result in a Material Adverse Effect or (ii) any obligation in connection with the termination of or withdrawal from any NonU.S. Plan that individually or in the aggregate would reasonably be expected to result in a Material Adverse Effect.
    (d)    The expected postretirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 71560, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Company and its Subsidiaries is not Material.
    (e)    The execution and delivery of this Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)(D) of the Code.  The representation by the Company to each Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of such Purchaser’s representation in Section 6.2 as to the sources of the funds to be used to pay the purchase price of the Notes to be purchased by such Purchaser.
    (f)    All NonU.S. Plans have been established, operated, administered and maintained in compliance with all laws, regulations and orders applicable thereto, except where failure so to comply could not be reasonably expected to have a Material Adverse Effect.  All premiums, contributions and any other amounts required by applicable NonU.S. Plan documents or applicable laws to be paid or accrued by the Company and its Subsidiaries have been paid or accrued as required, except where failure so to pay or accrue could not be reasonably expected to have a Material Adverse Effect.
    Section 5.13.    Private Offering by the Company.  Neither the Company nor anyone acting on the Company’s behalf has offered the Series 2020 Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other not more than 25 Institutional Investors (including the Purchasers), each of which has been offered the Series 2020 Notes in connection with a private sale for investment.  Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Series 2020 Notes to the registration 
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AZZ Inc.        Note Purchase Agreement

requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.
    Section 5.14.    Use of Proceeds; Margin Regulations.  The Company will apply the proceeds of the sale of the Series 2020 Notes repay outstanding Indebtedness and for general corporate purposes of the Company.  No part of the proceeds from the sale of the Series 2020 Notes hereunder will be used, directly or indirectly, (a) for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or (b) for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224), or (c) to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).  Margin stock does not constitute more than 5% of the value of the consolidated assets of the Company and its Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 5% of the value of such assets.  As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.
    Section 5.15.    Existing Indebtedness; Future Liens.  (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Indebtedness of the Company and its Subsidiaries as of August 31, 2020 (including a description of the obligors and obligees, principal amount outstanding and collateral therefor, if any, and Guarantee thereof, if any), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company or its Subsidiaries.  Neither the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary, and no event or condition exists with respect to any Indebtedness of the Company or any Subsidiary, that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.
    (b)    Except as disclosed in Schedule 5.15, neither the Company nor any Subsidiary has agreed or consented to cause or permit any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness or to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by Section 10.5.
    (c)    Neither the Company nor any Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company or such Subsidiary, any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as specifically indicated in Schedule 5.15.
    Section 5.16.    Foreign Assets Control Regulations, Etc.  (a) Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may 
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AZZ Inc.        Note Purchase Agreement

in the future appear on a State Sanctions List or (iii) is a target of sanctions that have been imposed by the United Nations or the European Union.
    (b)    Neither the Company nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic Sanctions Laws, AntiMoney Laundering Laws or AntiCorruption Laws or (ii) to the Company’s knowledge, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws, AntiMoney Laundering Laws or AntiCorruption Laws.
    (c)    No part of the proceeds from the sale of the Notes hereunder:
    (i)    constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (B) for any purpose that would cause any Purchaser to be in violation of any U.S. Economic Sanctions Laws or (C) otherwise in violation of any U.S. Economic Sanctions Laws;
    (ii)    will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable AntiMoney Laundering Laws; or
    (iii)    will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable AntiCorruption Laws.
    (d)    The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable U.S. Economic Sanctions Laws, AntiMoney Laundering Laws and AntiCorruption Laws.
    Section 5.17.    Status under Certain Statutes.  Neither the Company nor any Subsidiary is subject to regulation under the Investment Company Act of 1940, the Public Utility Holding Company Act of 2005, the ICC Termination Act of 1995, or the Federal Power Act.
    Section 5.18.    Environmental Matters.  (a) Neither the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim, and no proceeding has been instituted asserting any claim against the Company or any of its Subsidiaries or any of their respective real properties or other assets now or formerly owned, leased or operated by any of them, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as would not reasonably be expected to result in a Material Adverse Effect.
    (b)    Neither the Company nor any Subsidiary has knowledge of any facts which would give rise to any claim, public or private, of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or 
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AZZ Inc.        Note Purchase Agreement

formerly owned, leased or operated by any of them or to other assets or their use, except, in each case, such as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
    (c)    Neither the Company nor any Subsidiary has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them in a manner which is contrary to any Environmental Law that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
    (d)    Neither the Company nor any Subsidiary has disposed of any Hazardous Materials in a manner which is contrary to any Environmental Law that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
    (e)    All buildings on all real properties now owned, leased or operated by the Company or any Subsidiary are in compliance with applicable Environmental Laws, except where failure to comply could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
    Section 5.19.    Notes Rank Pari Passu.  The obligations of the Company under this Agreement and the Notes rank pari passu in right of payment with all other senior unsecured Indebtedness (actual or contingent) of the Company, including, without limitation, all senior unsecured Indebtedness of the Company described in Schedule 5.15 hereto.
Section 6.    Representations of the Purchaser.
    Section 6.1.    Purchase for Investment.  Each Purchaser severally represents that it is purchasing the Series 2020 Notes for its own account or for one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s or their property shall at all times be within such Purchaser’s or their control.  Each Purchaser understands that the Series 2020 Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Series 2020 Notes.
    Section 6.2.    Source of Funds.  Each Purchaser severally represents that at least one of the following statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Series 2020 Notes to be purchased by such Purchaser hereunder:
    (a)    the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 9560) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the NAIC (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee 
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AZZ Inc.        Note Purchase Agreement

benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 9560) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or
    (b)    the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or
    (c)    the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 901 or (ii) a bank collective investment fund, within the meaning of the PTE 9138 and, except as disclosed by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or
    (d)    the Source constitutes assets of an “investment fund” (within the meaning of Part VI of PTE 8414 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part VI of the QPAM Exemption), no employee benefit plan’s assets that are managed by the QPAM in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, represent more than 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM maintains an ownership interest in the Company that would cause the QPAM and the Company to be “related” within the meaning of Part VI(h) of the QPAM Exemption and (i) the identity of such QPAM and (ii) the names of any employee benefit plans whose assets in the investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization, represent 10% or more of the assets of such investment fund, have been disclosed to the Company in writing pursuant to this clause (d); or
    (e)    the Source constitutes assets of a “plan(s)” (within the meaning of Part IV(h) of PTE 96-23 (the “INHAM Exemption”)) managed by an “inhouse asset manager” or “INHAM” (within the meaning of Part IV(a) of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of 
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AZZ Inc.        Note Purchase Agreement

“control” in Part IV(d)(3) of the INHAM Exemption) owns a 10% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or
    (f)    the Source is a governmental plan; or
    (g)    the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this clause (g); or
    (h)    the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA.
As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA.
    Section 6.3.    Accredited Investor.  Each Purchaser represents that it is an “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) acting for its own account (and not for the account of others) or as a fiduciary or agent for others (which others are also “accredited investors”).  Each Purchaser further represents that such Purchaser has had the opportunity to ask questions of the Company and received answers concerning the terms and conditions of the sale of the Notes to such Purchaser.
Section 7.    Information as to Company.
    Section 7.1.    Financial and Business Information.  The Company shall deliver to each Purchaser and holder of a Note that is an Institutional Investor:
    (a)    Quarterly Statements — within 60 days (or such shorter period as is 15 days greater than the period applicable to the filing of the Company’s Quarterly Report on Form 10Q (the “Form 10-Q”) with the SEC regardless of whether the Company is subject to the filing requirements thereof) after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), copies of,
    (i)    a consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and
    (ii)    consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter,
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setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the consolidated financial position of the Company and its Subsidiaries being reported on and their consolidated results of operations and cash flows, subject to changes resulting from year-end adjustments;
    (b)    Annual Statements — within 105 days (or such shorter period as is 15 days greater than the period applicable to the filing of the Company’s Annual Report on Form 10K (the “Form 10K”) with the SEC regardless of whether the Company is subject to the filing requirements thereof) after the end of each fiscal year of the Company, copies of
    (i)    a consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, and
    (ii)    consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries for such year,
setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon (without a “going concern” or similar qualification or exception and without any qualification or exception as to the scope of the audit on which such opinion is based) of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the consolidated financial position of the Company and its Subsidiaries being reported upon and their consolidated results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances;
    (c)    SEC and Other Reports — promptly upon their becoming available, one copy of (i) each financial statement, report, notice or proxy statement or similar document sent by the Company or any Subsidiary to its principal lending banks as a whole (excluding information sent to such banks in the ordinary course of administration of a bank facility, such as information relating to pricing and borrowing availability) or to its public securities holders generally, and (ii) each regular or periodic report, each registration statement (without exhibits except as expressly requested by such Purchaser or holder), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the SEC and of all press releases and other statements made available generally by the Company or any Subsidiary to the public concerning developments that are Material;
    (d)    Notice of Default or Event of Default — promptly, and in any event within five days after a Responsible Officer becoming aware of the existence of any Default or 
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Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 11(f), a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto;
    (e)    ERISA Matters — promptly, and in any event within five days after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto:
    (i)    with respect to any Plan, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof; 
    (ii)    the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multi-employer Plan that such action has been taken by the PBGC with respect to such Multi-employer Plan;
    (iii)    any event, transaction or condition that would reasonably be expected to result in the incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, would reasonably be expected to have a Material Adverse Effect; or
    (iv)    receipt of notice of the imposition of a Material financial penalty (which for this purpose shall mean any tax, penalty or other liability, whether by way of indemnity or otherwise) with respect to one or more NonU.S. Plans;
    (f)    Notices from Governmental Authority — promptly, and in any event within 30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from any Federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect;
    (g)    Supplements — promptly and in any event within 10 Business Days after the execution and delivery of any Supplement, a copy thereof; and
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    (h)    Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries (including, but without limitation, actual copies of the Company’s Form 10Q and Form 10K) or relating to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by any such Purchaser or holder of a Note.
    Section 7.2.    Officer’s Certificate.  Each set of financial statements delivered to a Purchaser or holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) hereof shall be accompanied by a certificate of a Senior Financial Officer:
    (a)    Covenant Compliance — setting forth the information (including detailed calculations where applicable) required in order to establish whether the Company was in compliance with the requirements of Section 10.1 through Section 10.7, inclusive, during the quarterly or annual period covered by the financial statements then being furnished (including with respect to each such provision that involves mathematical calculations, the information from such financial statements that is required to perform such calculations) and detailed calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Section, and the calculation of the amount, ratio or percentage then in existence.  In the event that the Company or any Subsidiary has made an election to measure any financial liability using fair value (which election is being disregarded for purposes of determining compliance with this Agreement pursuant to Section 22.2) as to the period covered by any such financial statement, such Senior Financial Officer’s certificate as to such period shall include a reconciliation from GAAP with respect to such election;
    (b)    Event of Default — certifying that such Senior Financial Officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including, without limitation, any such event or condition resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto; and
    (c)    Subsidiary Guarantors – setting forth a list of all Subsidiaries that are Subsidiary Guarantors and certifying that each Subsidiary that is required to be a Subsidiary Guarantor pursuant to Section 9.7 is a Subsidiary Guarantor, in each case, as of the date of such certificate of Senior Financial Officer.
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    Section 7.3.    Visitation.  The Company shall permit the representatives of each Purchaser and holder of a Note that is an Institutional Investor:
    (a)    No Default — if no Default or Event of Default then exists, at the expense of such Purchaser or holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers, and (with the consent of the Company, which consent will not be unreasonably withheld) its independent public accountants, and (with the consent of the Company, which consent will not be unreasonably withheld) to visit the other offices and properties of the Company and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and
    (b)    Default — if a Default or Event of Default then exists, at the expense of the Company, to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be requested.
    Section 7.4.    Electronic Delivery.  Financial statements, opinions of independent certified public accountants, other information and Officer’s Certificates that are required to be delivered by the Company pursuant to Section 7.1(a), (b), or (c) and Section 7.2 shall be deemed to have been delivered if the Company satisfies any of the following requirements with respect thereto:
    (a)    such financial statements satisfying the requirements of Section 7.1(a) or (b) and related Officer’s Certificate satisfying the requirements of Section 7.2 and any other information required under Section 7.1(c) are delivered to each Purchaser or holder of a Note by e-mail at the e-mail address set forth in Schedule A for such Purchaser or holder or as communicated from time to time in a separate writing delivered to the Company;
    (b)    the Company shall have timely filed such Form 10Q or Form 10K, satisfying the requirements of Section 7.1(a) or Section 7.1(b), as the case may be, with the SEC on EDGAR and shall have made such form and the related Officer’s Certificate satisfying the requirements of Section 7.2 available on its home page on the internet, which is located at http://www.azz.com as of the date of this Agreement;
    (c)    such financial statements satisfying the requirements of Section 7.1(a) or Section 7.1(b) and related Officer’s Certificate(s) satisfying the requirements of Section 7.2 and any other information required under Section 7.1(c) are timely posted by or on behalf of the Company on IntraLinks or on any other similar website to which each Purchaser or holder of Notes has free access; or
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    (d)    the Company shall have timely filed any of the items referred to in Section 7.1(a), (b) or (c) with the SEC on EDGAR and shall have made such items available on its home page on the internet or on IntraLinks or on any other similar website to which each Purchaser or holder of Notes has free access;
provided however, that in no case shall access to such financial statements, other information and Officer’s Certificates be conditioned upon any waiver or other agreement or consent (other than confidentiality provisions consistent with Section 20 of this Agreement); provided further, that in the case of any of clauses (b), (c) or (d), the Company shall have given each Purchaser and holder of a Note prior written notice, which may be by email or in accordance with Section 18, of such posting or filing in connection with each delivery, provided further, that upon request of any holder or Purchaser to receive paper copies of such forms, financial statements, other information and Officer’s Certificates or to receive them by email, the Company will promptly email them or deliver such paper copies, as the case may be, to such Purchaser or holder.
Section 8.    Payment of the Notes.
    Section 8.1.    Maturity of Series 2020 Notes.  The entire unpaid principal amount of the Series 2020A Notes and the Series 2020B Notes shall become due and payable on the Maturity Date thereof. 
    Section 8.2.    Optional Prepayments with Make-Whole Amount.  The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less than 10% of the aggregate principal amount of the Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, together with interest accrued thereon to the date of such prepayment, plus the MakeWhole Amount determined for the prepayment date with respect to such principal amount.  The Company will give each holder of Notes written notice of each optional prepayment under this Section 8.2 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment.  Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.3), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation.  Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date.
    Section 8.3.    Allocation of Partial Prepayments.  In the case of each partial prepayment of the Notes, other than any offer of prepayment of the Notes pursuant to Sections 8.7, that has been rejected or deemed rejected by any holder or holders of Notes, the principal amount of the Notes shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for 
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prepayment.  All regularly scheduled partial prepayments made with respect to any Series of Additional Notes pursuant to any Supplement shall be allocated as provided therein.
    Section 8.4.    Maturity; Surrender, Etc.  In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable MakeWhole Amount.  From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and MakeWhole Amount as aforesaid, interest on such principal amount shall cease to accrue.  Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note.
    Section 8.5.    Purchase of Notes.  The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes.  The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment or prepayment of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes.
    Section 8.6.    MakeWhole Amount for the Series 2020 Notes.  The term “MakeWhole Amount” means with respect to any Note an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note, over the amount of such Called Principal, provided that the MakeWhole Amount may in no event be less than zero.  For the purposes of determining the MakeWhole Amount, the following terms have the following meanings:
“Called Principal” means, with respect to any Note, the principal of such Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.
“Discounted Value” means, with respect to the Called Principal of any Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.
“Reinvestment Yield” means, with respect to the Called Principal of any Note, the sum of (a) 0.50% plus (b) the yield to maturity implied by the “Ask Yield(s)” reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded ontherun U.S. Treasury securities (“Reported”) having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there are no such U.S. Treasury securities 
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Reported having a maturity equal to such Remaining Average Life, then such implied yield to maturity will be determined by (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between the “Ask Yields” Reported for the applicable most recently issued actively traded ontherun U.S. Treasury securities with the maturities (1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.
If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then “Reinvestment Yield” means, with respect to the Called Principal of any Note, the sum of (x) 0.50% plus (y) the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.
“Remaining Average Life” means, with respect to any Called Principal, the number of years obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years, computed on the basis of a 360day year comprised of twelve 30day months and calculated to two decimal places, that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.
“Remaining Scheduled Payments” means, with respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or Section 12.1.
“Settlement Date” means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has 
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become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.
    Section 8.7.    Change in Control.
    (a)    Notice of Change in Control or Control Event.  The Company will, within 15 Business Days after any Responsible Officer has knowledge of the occurrence of any Change in Control or Control Event, give written notice of such Change in Control or Control Event to each holder of Notes unless notice in respect of such Change in Control (or the Change in Control contemplated by such Control Event) shall have been given pursuant to subparagraph (b) of this Section 8.7.  If a Change in Control has occurred, such notice shall contain and constitute an offer to prepay Notes as described in subparagraph (c) of this Section 8.7 and shall be accompanied by the certificate described in subparagraph (g) of this Section 8.7.
    (b)    Condition to Company Action.  The Company will not take any action that consummates or finalizes a Change in Control unless (i) at least 15 Business Days prior to such action it shall have given to each holder of Notes written notice containing and constituting an offer to prepay Notes as described in subparagraph (c) of this Section 8.7, accompanied by the certificate described in subparagraph (g) of this Section 8.7, and (ii) contemporaneously with such action, it prepays all Notes required to be prepaid in accordance with this Section 8.7.
    (c)    Offer to Prepay Notes.  The offer to prepay Notes contemplated by subparagraphs (a) and (b) of this Section 8.7 shall be an offer to prepay, in accordance with and subject to this Section 8.7, all, but not less than all, the Notes held by each holder (in this case only, “holder” in respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”).  If such Proposed Prepayment Date is in connection with an offer contemplated by subparagraph (a) of this Section 8.7, such date shall be not less than 20 days and not more than 30 days after the date of such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment Date shall be the 20th day after the date of such offer).
    (d)    Acceptance; Rejection.  A holder of Notes may accept the offer to prepay made pursuant to this Section 8.7 by causing a notice of such acceptance or rejection to be delivered to the Company at least 5 Business Days prior to the Proposed Prepayment Date.  A failure by a holder of Notes to respond to an offer to prepay made pursuant to this Section 8.7 shall be deemed to constitute a rejection of such offer by such holder.
    (e)    Prepayment.  Prepayment of the Notes to be prepaid pursuant to this Section 8.7 shall be at 100% of the principal amount of such Notes, together with interest on such Notes accrued to the date of prepayment.  The prepayment shall be made on the Proposed Prepayment Date except as provided in subparagraph (f) of this Section 8.7.
    (f)    Deferral Pending Change in Control.  The obligation of the Company to prepay Notes pursuant to the offers required by subparagraph (b) and accepted in accordance with subparagraph (d) of this Section 8.7 is subject to the occurrence of the Change in Control in 
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respect of which such offers and acceptances shall have been made.  In the event that such Change in Control does not occur on the Proposed Prepayment Date in respect thereof, the prepayment shall be deferred until and shall be made on the date on which such Change in Control occurs.  The Company shall keep each holder of Notes reasonably and timely informed of (i) any such deferral of the date of prepayment, (ii) the date on which such Change in Control and the prepayment are expected to occur, and (iii) any determination by the Company that efforts to effect such Change in Control have ceased or been abandoned (in which case the offers and acceptances made pursuant to this Section 8.7 in respect of such Change in Control shall be deemed rescinded).
    (g)    Officer’s Certificate.  Each offer to prepay the Notes pursuant to this Section 8.7 shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated the date of such offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is made pursuant to this Section 8.7; (iii) the principal amount of each Note offered to be prepaid; (iv) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed Prepayment Date; (v) that the conditions of this Section 8.7 have been fulfilled; and (vi) in reasonable detail, the nature and date or proposed date of the Change in Control.
    (h)    “Change in Control” Defined.  “Change in Control” means, with respect to any Person, an event or series of events by which:
    (i)    any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire (such right, an “option right”), whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of 35% or more of the equity securities of such Person entitled to vote for members of the board of directors or equivalent governing body of such Person on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right); or
    (ii)    during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of such Person cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body.
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    (i)    “Control Event” Defined.  “Control Event” means:
    (i)    the execution by the Company or any of its Subsidiaries or Affiliates of any agreement or letter of intent with respect to any proposed transaction or event or series of transactions or events which, individually or in the aggregate, may reasonably be expected to result in a Change in Control,
    (ii)    the execution of any written agreement which, when fully performed by the parties thereto, would result in a Change in Control, or
    (iii)    the making of any written offer by any person (as such term is used in section 13(d) and section 14(d)(2) of the Exchange Act as in effect on the date of the First Closing) or related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange Act as in effect on the date of the First Closing) to the holders of the common stock of the Company, which offer, if accepted by the requisite number of holders, would result in a Change in Control.
    Section 8.8.    Payments Due on Non-Business Days.  Anything in this Agreement or the Notes to the contrary notwithstanding, (x) except as set forth in clause (y), any payment of interest on any Note that is due on a date that is not a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; and (y) any payment of principal of or Make-Whole Amount on any Note (including principal due on the Maturity Date of such Note) that is due on a date that is not a Business Day shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.
Section 9.    Affirmative Covenants.
From the date of this Agreement until the First Closing and thereafter, so long as any of the Notes are outstanding, the Company covenants that:
    Section 9.1.    Compliance with Laws.  Without limiting Section 10.10, the Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject (including ERISA, Environmental Laws, the USA PATRIOT Act and the other laws and regulations that are referred to in Section 5.16) and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case except to the extent that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
    Section 9.2.    Insurance.  The Company will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective 
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properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.
    Section 9.3.    Maintenance of Properties.  The Company will, and will cause each of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section shall not prevent the Company or any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Company has concluded that such discontinuance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
    Section 9.4.    Payment of Taxes and Claims.  The Company will, and will cause each of its Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of the Company or any Subsidiary, provided that neither the Company nor any Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges, levies and claims, individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect.
    Section 9.5.    Corporate Existence, Etc.  Subject to Section 10.6, the Company will at all times preserve and keep in full force and effect its corporate existence.  Subject to Sections 10.6 and 10.7, the Company will at all times preserve and keep in full force and effect the corporate existence of each of its Subsidiaries (unless merged into the Company or a Wholly-Owned Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
    Section 9.6.    Notes to Rank Pari Passu.  The Notes and all other obligations under this Agreement of the Company are and at all times shall remain direct and unsecured obligations of the Company ranking pari passu with all Indebtedness outstanding under the Bank Credit Agreement and all other present and future unsecured Indebtedness (actual or contingent) of the Company which is not expressed to be subordinate or junior in rank to any other unsecured Indebtedness of the Company.
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    Section 9.7.    Additional Subsidiary Guarantors.  (a) The Company will cause each of its Subsidiaries that guarantees or otherwise becomes liable at any time, whether as a borrower or an additional or coborrower or otherwise, for or in respect of any Indebtedness under any Material Credit Facility to concurrently therewith:
    (i)    enter into a joinder to the Subsidiary Guaranty in form and substance satisfactory to the Required Holders (a “Joinder Agreement”) providing for the guaranty by such Subsidiary, on a joint and several basis with all other such Subsidiaries, of (x) the prompt payment in full when due of all amounts payable by the Company pursuant to the Notes (whether for principal, interest, MakeWhole Amount or otherwise) and this Agreement, including all indemnities, fees and expenses payable by the Company thereunder and (y) the prompt, full and faithful performance, observance and discharge by the Company of each and every covenant, agreement, undertaking and provision required pursuant to the Notes or this Agreement to be performed, observed or discharged by it; and
    (ii)    deliver the following to each Purchaser and holder of a Note:
    (A)    an executed counterpart of such Joinder Agreement;
    (B)    a certificate signed by an authorized responsible officer of such Subsidiary containing representations and warranties on behalf of such Subsidiary to the same effect, mutatis mutandis, as those contained in Section 5 of this Agreement (but with respect to such Subsidiary and such Joinder Agreement rather than the Company);
    (C)    all documents as may be reasonably requested by the Required Holders to evidence the due organization, continuing existence and, where applicable, good standing of such Subsidiary and the due authorization by all requisite action on the part of such Subsidiary of the execution and delivery of such Joinder Agreement and the performance by such Subsidiary of its obligations thereunder; and
    (D)    an opinion of counsel reasonably satisfactory to the Required Holders covering such matters relating to such Subsidiary and such Joinder Agreement as the Required Holders may reasonably request.
    (b)    At the election of the Company and by written notice to each holder of Notes, any Subsidiary Guarantor may be discharged from all of its obligations and liabilities under the Subsidiary Guaranty and shall be automatically released from its obligations thereunder without the need for the execution or delivery of any other document by the holders, provided that (i) if such Subsidiary Guarantor is a guarantor or is otherwise liable for or in respect of any Material Credit Facility, then such Subsidiary Guarantor has been released and discharged (or will be released and discharged concurrently with the release of such Subsidiary Guarantor under its Subsidiary Guaranty) under such Material Credit Facility, (ii) at the time of, and after giving effect 
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to, such release and discharge, no Default or Event of Default shall be existing, (iii) no amount is then due and payable under such Subsidiary Guaranty, (iv) if in connection with such Subsidiary Guarantor being released and discharged under any Material Credit Facility, any fee or other form of consideration is given to any holder of Indebtedness under such Material Credit Facility for such release, the holders of the Notes shall receive equivalent consideration substantially concurrently therewith and (v) each holder shall have received a certificate of a Responsible Officer certifying as to the matters set forth in clauses (i) through (iv).  In the event of any such release, for purposes of Section 10.1, 10.2 and 10.4, all Indebtedness of such Subsidiary shall be deemed to have been incurred concurrently with such release.
    Section 9.8.    Books and Records.  The Company will, and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case may be.  The Company will, and will cause each of its Subsidiaries to, keep books, records and accounts which, in reasonable detail, accurately reflect all transactions and dispositions of assets.  The Company and its Subsidiaries have devised a system of internal accounting controls sufficient to provide reasonable assurances that their respective books, records, and accounts accurately reflect all transactions and dispositions of assets and the Company will, and will cause each of its Subsidiaries to, continue to maintain such system.
If the Company fails to comply with any provision of Section 9 on or after the date of this Agreement and prior to any Closing, if such a failure occurs, then any of the Purchasers may elect not to purchase the Notes on the date of Closing that is specified in Section 3.
Section 10.    Negative Covenants.
From the date of this Agreement until the First Closing and thereafter, so long as any of the Notes are outstanding, the Company covenants that:
    Section 10.1.    Leverage Ratio.  The Company will not at any time permit on a consolidated basis the Leverage Ratio to exceed 3.25:1.00; provided that one (1) time during the term of this Agreement, the Leverage Ratio may exceed 3.25:1.00 so long as it does not exceed 3.75:1.00, beginning with the fiscal quarter in which any Significant Acquisition occurs and continuing for three (3) full consecutive fiscal quarters thereafter.  This ratio will be calculated at the end of each reporting period for which this Agreement requires the Company to deliver financial statements for the Rolling Period then ended.
    Section 10.2.    Interest Coverage Ratio.  The Company will not permit on a consolidated basis the Interest Coverage Ratio to fall below 3.00:1.00.  This ratio will be calculated at the end of each reporting period for which this Agreement requires Company to deliver financial statements for the Rolling Period then ended.
    Section 10.3.    [Reserved].
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    Section 10.4.    Priority Indebtedness.  The Company will not at any time permit the aggregate amount of all Priority Indebtedness to exceed 20% of Consolidated Net Worth (Consolidated Net Worth to be determined as of the end of the then most recently ended fiscal quarter of the Company).
    Section 10.5.    Limitation on Liens.  The Company will not, and will not permit any of its Subsidiaries to, directly or indirectly create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than the following:
    (a)    Liens that may be created or exist pursuant to any Note Document (provided that all Notes are secured equally and ratably with each other Note);
    (b)    Liens existing on the date hereof and listed on Schedule 10.5 and any renewals or extensions thereof, provided that (i) the property covered thereby is not changed, (ii) the amount secured or benefited thereby is not increased (except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder), (iii) the direct or any contingent obligor with respect thereto is not changed, and (iv) the terms relating to principal amount, amortization, maturity, collateral (if any) and subordination (if any), and other material terms taken as a whole, of any such refinancing, refunding, renewing or extending Indebtedness, and of any agreement entered into and of any instrument issued in connection therewith, are no less favorable in any material respect to the Company or any Subsidiary Guarantor, as the case may be, or Purchasers than the terms of any agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended and the interest rate applicable to any such refinancing, refunding, renewing or extending Indebtedness does not exceed the then applicable market interest rate;
    (c)    Liens for taxes not yet due or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;
    (d)    carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than thirty (30) days or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person;
    (e)    pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA;
    (f)    Liens to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety and appeal bonds, performance bonds 
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and other obligations of like nature incurred in the ordinary course of business, to the extent that such Liens are required by the counterparties thereto;
    (g)    easements, rights‐of‐way, restrictions and other similar encumbrances affecting real property which, in the aggregate, are not substantial in amount, and which do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person;
    (h)    Liens securing judgments for the payment of money not constituting an Event of Default under Section 11(j);
    (i)    Liens securing Indebtedness incurred or assumed after the date of this Agreement in respect of Capital Leases, Synthetic Lease Obligations and purchase money obligations for fixed or capital assets; provided that (i) such Liens do not at any time encumber any property other than the property financed by such Indebtedness and (ii) the Indebtedness secured thereby does not exceed the cost or fair market value, whichever is lower, of the property being acquired on the date of acquisition;
    (j)    Liens existing on property or assets acquired in an Acquisition, so long as such Liens are not created in contemplation of such Acquisition; and
    (k)    other Liens securing Indebtedness of the Company or any Subsidiary not otherwise permitted by clauses (a) through (j), provided that Priority Indebtedness shall not at any time exceed 20% of Consolidated Net Worth (Consolidated Net Worth to be determined as of the end of the then most recently ended fiscal quarter of the Company), provided, further, that notwithstanding the foregoing, the Company shall not, and shall not permit any of its Subsidiaries to, secure pursuant to this Section 10.5(k) any Indebtedness outstanding under or pursuant to any Material Credit Facility unless and until the Notes (and any guaranty delivered in connection therewith) shall concurrently be secured equally and ratably with such Indebtedness pursuant to documentation reasonably acceptable to the Required Holders in substance and in form, including an intercreditor agreement and opinions of counsel to the Company and/or any such Subsidiary, as the case may be, from counsel that is reasonably acceptable to the Required Holders.
    Section 10.6.    Dispositions.  The Company will not, and will not permit any Subsidiary to, make any Disposition or enter into any agreement to make any Disposition, except:
    (a)    Dispositions of obsolete, worn out or immaterial property, whether now owned or hereafter acquired, in the ordinary course of business;
    (b)    Dispositions of inventory in the ordinary course of business;
    (c)    Dispositions of delinquent accounts receivable in the ordinary course of business for purposes of collection;
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    (d)    Dispositions of equipment or real property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds of such Disposition are reasonably promptly applied to the purchase price of such replacement property;
    (e)    Dispositions of property by any Subsidiary to the Company or to a whollyowned Subsidiary; provided that if the transferor of such property is a Subsidiary Guarantor, the transferee thereof must either be the Company or a Subsidiary Guarantor;
    (f)    Dispositions permitted by Section 10.7; and
    (g)    if no Default then exists or would result therefrom, other Dispositions that, when added to the book value of all other Dispositions during the period of 12 consecutive months ending on the date of such Disposition, do not exceed 15% of the book value of Consolidated Total Assets, determined as of the end of the fiscal quarter immediately preceding such Disposition; provided that there shall be excluded from any determination of the book value of Dispositions during such 12 consecutive month period any Dispositions pursuant to clauses (a)-(f) of this Section 10.6;
provided, however, that any Dispositions pursuant to subsections (a) through (g) of this Section 10.6 shall be for fair market value.
    Section 10.7.    Merger; Consolidation, Etc.  The Company will not, and will not permit any Subsidiary Guarantor to, consolidate with or merge with any other Person or convey, transfer or lease substantially all of its assets in a single transaction or series of transactions to any Person unless:
    (a)    in the case of any such transaction involving the Company, the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease all or substantially all of the assets of the Company as an entirety, as the case may be, shall be a solvent corporation or limited liability company organized and existing under the laws of the United States or any state thereof (including the District of Columbia), and, if the Company is not such corporation or limited liability company, (i) such corporation or limited liability company shall have executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes and (ii) such corporation or limited liability company shall have caused to be delivered to each holder of any Notes an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof;
    (b)    in the case of any such transaction involving a Subsidiary Guarantor, the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease all or substantially all of the assets of such 
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Subsidiary Guarantor as an entirety, as the case may be, shall be (1) the Company, such Subsidiary Guarantor or another Subsidiary Guarantor; (2) a solvent corporation or limited liability company (other than the Company or another Subsidiary Guarantor) that is organized and existing under the laws of the United States or any state thereof (including the District of Columbia) and, if such Subsidiary Guarantor is not such corporation or limited liability company, (A) such corporation or limited liability company shall have executed and delivered to each holder of Notes its assumption of the due and punctual performance and observance of each covenant and condition of the Subsidiary Guaranty of such Subsidiary Guarantor and (B) the Company shall have caused to be delivered to each holder of Notes an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof; or (3) any other Person so long as the transaction is treated as a disposition of all of the assets of such Subsidiary Guarantor for purposes of Section 10.6 and, based on such characterization, would be permitted pursuant to Section 10.6;
    (c)    each Subsidiary Guarantor under any Subsidiary Guaranty that is outstanding at the time such transaction or each transaction in such a series of transactions occurs reaffirms its obligations under such Subsidiary Guaranty in writing at such time pursuant to documentation that is reasonably acceptable to the Required Holders; and
    (d)    immediately before and immediately after giving effect to such transaction or each transaction in any such series of transactions, no Default or Event of Default shall have occurred and be continuing.
No such conveyance, transfer or lease of substantially all of the assets of the Company or any Subsidiary Guarantor shall have the effect of releasing the Company or such Subsidiary Guarantor, as the case may be, or any successor corporation or limited liability company that shall theretofore have become such in the manner prescribed in this Section 10.2, from its liability under (x) this Agreement or the Notes (in the case of the Company) or (y) the Subsidiary Guaranty (in the case of any Subsidiary Guarantor), unless, in the case of the conveyance, transfer or lease of substantially all of the assets of a Subsidiary Guarantor, such Subsidiary Guarantor is released from its Subsidiary Guaranty in accordance with Section 9.7(b) in connection with or immediately following such conveyance, transfer or lease.
    Section 10.8.    Line of Business.  The Company will not and will not permit any Subsidiary to engage in any business if, as a result, the general nature of the business in which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its Subsidiaries, taken as a whole, are engaged on the date of this Agreement as described in the Memorandum and other Public Filings.
    Section 10.9.    Transactions with Affiliates.  The Company will not, and will not permit any Subsidiary to, enter into directly or indirectly any Material transaction or Material group of 
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related transactions (including the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except pursuant to the reasonable requirements of the Company’s or such Subsidiary’s business and upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate.
    Section 10.10.    Economic Sanctions, Etc.  The Company will not, and will not permit any Controlled Entity to (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder or any affiliate of such holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws.
If the Company fails to comply with any provision of Section 10 on or after the date of this Agreement and prior to any Closing, if such a failure occurs, then any of the Purchasers may elect not to purchase the Notes on the date of Closing that is specified in Section 3.
Section 11.    Events of Default.
An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing:
    (a)    the Company defaults in the payment of any principal or Make-Whole Amount, if any, on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or
    (b)    the Company defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and payable; or
    (c)    the Company defaults in the performance of or compliance with any term contained in Section 7.1(d) or Section 10, or any additional covenant contained in a Supplement that is made subject to this paragraph (c), or any Subsidiary Guarantor defaults in the performance of or compliance with any term of the Subsidiary Guaranty beyond any period of grace or cure period provided with respect thereto; or
    (d)    the Company or any Subsidiary Guarantor defaults in the performance of or compliance with any term contained herein or in any Supplement (other than those referred to in paragraphs (a), (b) and (c) of this Section 11) or in any Subsidiary Guaranty and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default or (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this paragraph (d) of Section 11); or
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    (e)    (i) any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in this Agreement or any writing furnished in connection with the transactions contemplated hereby proves to have been false or incorrect in any material respect on the date as of which made, or (ii) any representation or warranty made in writing by or on behalf of any Subsidiary Guarantor or by any officer of such Subsidiary Guarantor in any Subsidiary Guaranty or any writing furnished in connection with such Subsidiary Guaranty proves to have been false or incorrect in any material respect on the date as of which made; or
    (f)    (i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness that is outstanding in an aggregate principal amount of at least $25,000,000 (or its equivalent in the relevant currency of payment) beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance with any term of any evidence of any Indebtedness in an aggregate outstanding principal amount of at least $25,000,000 (or its equivalent in the relevant currency of payment) or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been declared (or one or more Persons are entitled to declare such Indebtedness to be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Indebtedness to convert such Indebtedness into equity interests), (x) the Company or any Subsidiary has become obligated to purchase or repay Indebtedness before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $25,000,000 (or its equivalent in the relevant currency of payment), or (y) one or more Persons have the right to require the Company or any Subsidiary so to purchase or repay such Indebtedness; or
    (g)    the Company or any Subsidiary (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or
    (h)    a court or other Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company or any of its Subsidiaries, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for 
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liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company, any of its Subsidiaries, or any such petition shall be filed against the Company, any of its Subsidiaries and such petition shall not be dismissed within 60 days; or
    (i)    any event occurs with respect to the Company or any Subsidiary which under the laws of any jurisdiction is analogous to any of the events described in Section 11(g) or Section 11(h), provided that the applicable grace period, if any, which shall apply shall be the one applicable to the relevant proceeding which most closely corresponds to the proceeding described in Section 11(g) or Section 11(h); or
    (j)    one or more final judgments or orders for the payment of money aggregating in excess of $25,000,000 (or its equivalent in the relevant currency of payment), including any such final order enforcing a binding arbitration decision, are rendered against one or more of the Company and its Subsidiaries and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; or
    (k)    if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) there is any “amount of unfunded benefit liabilities” (within the meaning of section 4001(a)(18) of ERISA) under one or more Plans, determined in accordance with Title IV of ERISA, (iv) the aggregate present value of accrued benefit liabilities under all funded NonU.S. Plans exceeds the aggregate current value of the assets of such NonU.S. Plans allocable to such liabilities, (v) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (vi) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, (vii) the Company or any Subsidiary establishes or amends any employee welfare benefit plan that provides postemployment welfare benefits in a manner that would increase the liability of the Company or any Subsidiary thereunder, (viii) the Company or any Subsidiary fails to administer or maintain a NonU.S. Plan in compliance with the requirements of any and all applicable laws, statutes, rules, regulations or court orders or any NonU.S. Plan is involuntarily terminated or wound up, or (ix) the Company or any Subsidiary becomes subject to the imposition of a financial penalty (which for this purpose shall mean any tax, penalty or other liability, whether by way of indemnity or otherwise) with respect to one or more NonU.S. Plans; and any such event or events described in clauses (i) through (ix) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse Effect.  As used in this Section 11(k), the terms 
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“employee benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such terms in Section 3 of ERISA; or
    (l)    any Subsidiary Guaranty shall cease to be in full force and effect, any Subsidiary Guarantor or any Person acting on behalf of any Subsidiary Guarantor shall contest in any manner the validity, binding nature or enforceability of any Subsidiary Guaranty, or the obligations of any Subsidiary Guarantor under any Subsidiary Guaranty are not or cease to be legal, valid, binding and enforceable in accordance with the terms of such Subsidiary Guaranty.
Section 12.    Remedies on Default, Etc.
    Section 12.1.    Acceleration.  (a) If an Event of Default with respect to the Company described in Section 11(g), (h) or (i) (other than an Event of Default described in clause (i) of Section 11(g) or described in clause (vi) of Section 11(g) by virtue of the fact that such clause encompasses clause (i) of Section 11(g)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable.
    (b)    If any other Event of Default has occurred and is continuing, the Required Holders may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable.
    (c)    If any Event of Default described in Section 11(a) or (b) has occurred and is continuing, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable.
Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including interest accrued thereon at the Default Rate) and (y) the MakeWhole Amount determined in respect of such principal amount, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.  The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a MakeWhole Amount by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances.
    Section 12.2.    Other Remedies.  If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, a Purchaser or the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such Purchaser or holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note or Subsidiary Guaranty, or for an injunction 
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against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.
    Section 12.3.    Rescission.  At any time after any Notes have been declared due and payable pursuant to Section 12.1(b) or (c), the holders of not less than 51% in aggregate principal amount of the Notes then outstanding, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of and Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 17, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes.  No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon.
    Section 12.4.    No Waivers or Election of Remedies, Expenses, Etc.  No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies.  No right, power or remedy conferred by this Agreement, any Subsidiary Guaranty or any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise.  Without limiting the obligations of the Company under Section 15, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 12, including reasonable attorneys’ fees, expenses and disbursements.
Section 13.    Registration; Exchange; Substitution of Notes.
    Section 13.1.    Registration of Notes.  The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes.  The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register.  If any holder of one or more Notes is a nominee, then (a) the name and address of the beneficial owner of such Note or Notes shall also be registered in such register as an owner and holder thereof and (b) at any such beneficial owner’s option, either such beneficial owner or its nominee may execute any amendment, waiver or consent pursuant to this Agreement.  Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary.  The Company shall give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.
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    Section 13.2.    Transfer and Exchange of Notes.  Upon surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 18(iv)), for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of each transferee of such Note or part thereof), within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) of the same Series (and of the same tranche if such Series has separate tranches) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note.  Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of the Note of such Series originally issued hereunder or pursuant to any Supplement.  Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon.  The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes.  Notes shall not be transferred in denominations of less than $100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes of a Series, one Note of a Series may be in a denomination of less than $100,000.  Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representation set forth in Section 6.2, provided, that in lieu thereof such holder may (in reliance upon information provided by the Company, which shall not be unreasonably withheld) make a representation to the effect that the purchase by any holder of any Note will not constitute a non-exempt prohibited transaction under section 406(a) of ERISA.
    Section 13.3.    Replacement of Notes.  Upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 18(iv)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and
    (a)    in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $100,000,000 or a Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or
    (b)    in the case of mutilation, upon surrender and cancellation thereof,
the Company at its own expense shall execute and deliver not more than five Business Days following satisfaction of such conditions, in lieu thereof, a new Note of the same Series (and of the same tranche if such Series has separate tranches), dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.
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Section 14.    Payments on Notes.
    Section 14.1.    Place of Payment.  Subject to Section 14.2, payments of principal, MakeWhole Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, New York at the principal office of U.S. Bank, N.A. in such jurisdiction.  The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction.
    Section 14.2.    Home Office Payment.  So long as any Purchaser or Additional Purchaser or such Purchaser’s nominee or such Additional Purchaser’s nominee shall be the holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount and interest by the method and at the address specified for such purpose for such Purchaser on Schedule A hereto or, in the case of any Additional Purchaser, Schedule A attached to any Supplement pursuant to which such Additional Purchaser is a party, or by such other method or at such other address as such Purchaser or Additional Purchaser shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser or Additional Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1.  Prior to any sale or other disposition of any Note held by any Purchaser or Additional Purchaser or such Person’s nominee, such Person will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2.  The Company will afford the benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any Note.
    Section 14.3.    FATCA Information.  By acceptance of any Note, the holder of such Note agrees that such holder will with reasonable promptness duly complete and deliver to the Company, or to such other Person as may be reasonably requested by the Company, from time to time (a) in the case of any such holder that is a United States Person, such holder’s United States tax identification number or other Forms reasonably requested by the Company necessary to establish such holder’s status as a United States Person under FATCA and as may otherwise be necessary for the Company to comply with its obligations under FATCA and (b) in the case of any such holder that is not a United States Person, such documentation prescribed by applicable law (including as prescribed by section 1471(b)(3)(C)(i) of the Code) and such additional documentation as may be necessary for the Company to comply with its obligations under FATCA and to determine that such holder has complied with such holder’s obligations under FATCA or to determine the amount (if any) to deduct and withhold from any such payment made to such holder.  Nothing in this Section 14.3 shall require any holder to provide information that is confidential or proprietary to such holder unless the Company is required to obtain such information under FATCA and, in such event, the Company shall treat any such information it receives as confidential.
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AZZ Inc.        Note Purchase Agreement

Section 15.    Expenses, Etc.
    Section 15.1.    Transaction Expenses.  Whether or not the transactions contemplated hereby are consummated, the Company will pay all costs and expenses (including reasonable attorneys’ fees of a special counsel for the Purchasers or any Additional Purchasers and, if reasonably required by the Required Holders, local or other counsel) incurred by each Purchaser and each Additional Purchaser and each other holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement (including any Supplement or any Subsidiary Guaranty) or the Notes (whether or not such amendment, waiver or consent becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement (including any Supplement or any Subsidiary Guaranty) or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement (including any Supplement or any Subsidiary Guaranty) or the Notes, or by reason of being a holder of any Note, (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes and any Subsidiary Guaranty, and (c) the costs and expenses incurred in connection with the filing of this Agreement (or any Supplement) for any Series of Notes and all related documents and financial information with the SVO provided, that such costs and expenses under this clause (c) shall not exceed $3,500 for any Series of Notes.  The Company will pay, and will save each Purchaser, each Additional Purchaser and each other holder of a Note harmless from, all claims in respect of (i) any fees, costs or expenses if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder) incurred in connection with its purchase of the Notes, (ii) any and all wire transfer fees that any bank or other financial institution deducts from any payment under such Note to such holder or otherwise charges to a holder of a Note with respect to a payment under such Note and (iii) any judgment, liability, claim, order, decree, fine, penalty, cost, fee, expense (including reasonable attorneys’ fees and expenses) or obligation resulting from the consummation of the transactions contemplated hereby, including the use of the proceeds of the Notes by the Company.
    Section 15.2.    Certain Taxes.  The Company agrees to pay all stamp, documentary or similar taxes or fees which may be payable in respect of the execution and delivery or the enforcement of this Agreement or any Subsidiary Guaranty or the execution and delivery (but not the transfer) or the enforcement of any of the Notes in the United States or any other jurisdiction where the Company or any Subsidiary Guarantor has assets or of any amendment of, or waiver or consent under or with respect to, this Agreement or any Subsidiary Guaranty or of any of the Notes, and to pay any value added tax due and payable in respect of reimbursement of costs and expenses by the Company pursuant to this Section 15, and will save each holder of a Note to the extent permitted by applicable law harmless against any loss or liability resulting from nonpayment or delay in payment of any such tax or fee required to be paid by the Company hereunder.
    Section 15.3.    Survival.  The obligations of the Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any 
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provision of this Agreement, any Supplement, any Subsidiary Guaranty or the Notes, and the termination of this Agreement or any Supplement.
Section 16.    Survival of Representations and Warranties; Entire Agreement.
All representations and warranties contained herein or in any Supplement shall survive the execution and delivery of this Agreement, such Supplement and the Notes, the purchase or transfer by any Purchaser or any Additional Purchaser of any such Note or portion thereof or interest therein and the payment of any Note and may be relied upon by any subsequent holder of any such Note, regardless of any investigation made at any time by or on behalf of any Purchaser or any Additional Purchaser or any other holder of any such Note.  All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement or any Supplement shall be deemed representations and warranties of the Company under this Agreement; provided, that the representations and warranties contained in any Supplement shall only be made for the benefit of the Additional Purchasers which are party to such Supplement and the holders of the Notes issued pursuant to such Supplement, including subsequent holders of any Note issued pursuant to such Supplement, and shall not require the consent of the holders of existing Notes.  Subject to the preceding sentence, this Agreement (including every Supplement) and the Notes embody the entire agreement and understanding between the Purchasers and the Additional Purchasers and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.
Section 17.    Amendment and Waiver.
    Section 17.1.    Requirements.  (a) This Agreement (including any Supplement) and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (i) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof or the corresponding provision of any Supplement, or any defined term (as it is used in any such Section or such corresponding provision of any Supplement), will be effective as to any holder of Notes unless consented to by such holder of Notes in writing, and (ii) no such amendment or waiver may, without the written consent of all of the holders of Notes at the time outstanding affected thereby, (A) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest (if such change results in a decrease in the interest rate) or of the Make-Whole Amount on, the Notes, (B) change the percentage of the principal amount of the Notes the holders of which are required to consent to any such amendment or waiver, or (C) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20.
    (b)    Supplements.  Notwithstanding anything to the contrary contained herein, the Company may enter into any Supplement providing for the issuance of one or more Series of Additional Notes consistent with Sections 2.2 hereof without obtaining the consent of any holder of any other Series of Notes.
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AZZ Inc.        Note Purchase Agreement

    Section 17.2.    Solicitation of Holders of Notes.
    (a)    Solicitation.  The Company will provide each holder of the Notes (irrespective of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof, any Supplement or of the Notes or any Subsidiary Guaranty.  The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 17 or any Subsidiary Guaranty to each holder of outstanding Notes promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.
    (b)    Payment.  The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of Notes as consideration for or as an inducement to the entering into by any holder of Notes of any waiver or amendment of any of the terms and provisions hereof or of any Subsidiary Guaranty or any Note unless such remuneration is concurrently paid, or security is concurrently granted or other credit support is concurrently provided, on the same terms, ratably to each holder of Notes then outstanding even if such holder did not consent to such waiver or amendment.
    (c)    Consent in Contemplation of Transfer.  Any consent given pursuant to this Section 17 or any Subsidiary Guaranty by a holder of a Note that has transferred or has agreed to transfer its Note to (i) the Company, (ii) any Subsidiary or any other Affiliate or (iii) any other Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the Company and/or any of its Affiliates (either pursuant to a waiver under Section 17.1(c) or subsequent to Section 8.5 having been amended pursuant to Section 17.1(c)), in each case in connection with such consent, shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder.
    Section 17.3.    Binding Effect, Etc.  Any amendment or waiver consented to as provided in this Section 17 or any Subsidiary Guaranty applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver.  No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.  No course of dealing between the Company and the holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note.  As used herein, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented.
    Section 17.4.    Notes Held by Company, Etc.  Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then 
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AZZ Inc.        Note Purchase Agreement

outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement, any Subsidiary Guaranty or the Notes, or have directed the taking of any action provided herein or in any Subsidiary Guaranty or the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.
Section 18.    Notices.
    Section 18.1.    Notices Generally.  All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with charges prepaid).  Any such notice must be sent:
    (i)    if to a Purchaser or such Purchaser’s nominee, to such Purchaser or such Purchaser’s nominee at the address specified for such communications in Schedule A to this Agreement, or at such other address as such Purchaser or such Purchaser’s nominee shall have specified to the Company in writing pursuant to this Section 18;
    (ii)    if to an Additional Purchaser or such Additional Purchaser’s nominee, to such Additional Purchaser or such Additional Purchaser’s nominee at the address specified for such communications in Schedule A to any Supplement, or at such other address as such Additional Purchaser or such Additional Purchaser’s nominee shall have specified to the Company in writing; and
    (iii)    if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing pursuant to this Section 18, or
    (iv)    if to the Company, to the Company at its address set forth at the beginning hereof to the attention of Chief Financial Officer, or at such other address as the Company shall have specified to the holder of each Note in writing.
Notices under this Section 18.1 will be deemed given only when actually received.
Section 19.    Reproduction of Documents.
This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at each Closing or by any Additional Purchaser (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser or any Additional Purchaser, may be reproduced by such Purchaser or such Additional Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser or such Additional Purchaser may destroy any original document so reproduced.  The Company agrees and stipulates that, to the extent permitted by applicable law, 
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AZZ Inc.        Note Purchase Agreement

any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser or such Additional Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.  This Section 19 shall not prohibit the Company or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.
Section 20.    Confidential Information.
For the purposes of this Section 20, “Confidential Information” means information delivered to any Purchaser or any Additional Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified (or that would reasonably be understood to be confidential or proprietary) when received by such Purchaser as being confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser or such Additional Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or such Additional Purchaser or any Person acting on such Purchaser’s or such Additional Purchaser’s behalf, (c) otherwise becomes known to such Purchaser or such Additional Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser or such Additional Purchaser under Section 7.1 that are otherwise publicly available.  Each Purchaser and each Additional Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser or such Additional Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser or such Additional Purchaser, provided that such Purchaser or such Additional Purchaser may deliver or disclose Confidential Information to (i) such Purchaser’s or such Additional Purchaser’s directors, trustees, officers, employees, agents, attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by such Purchaser’s or such Additional Purchaser’s Notes), (ii) its auditors such Purchaser’s or such Additional Purchaser’s financial advisors and other professional advisors who agree to hold confidential the Confidential Information in accordance with the terms of this Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor to which such Purchaser or such Additional Purchaser sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing for the benefit of the Company prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (v) any Person from which such Purchaser or such Additional Purchaser offers to purchase any security of the Company (if such Person has agreed in writing for the benefit of the Company prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser or such Additional Purchaser, (vii) the NAIC or the SVO or, in each case or any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s or such Additional Purchaser’s investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, 
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AZZ Inc.        Note Purchase Agreement

rule, regulation or order applicable to such Purchaser or such Additional Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser or such Additional Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser or such Additional Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s or such Additional Purchaser’s Notes, the Subsidiary Guaranty and this Agreement.  Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 20 as though it were a party to this Agreement.  On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying the provisions of this Section 20.
In the event that as a condition to receiving access to information relating to the Company or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through IntraLinks, another secure website, a secure virtual workspace or otherwise) which is different from this Section 20, this Section 20 shall not be amended thereby and, as between such Purchaser or such holder and the Company, this Section 20 shall supersede any such other confidentiality undertaking.
Section 21.    Substitution of Purchaser.
Each Purchaser and each Additional Purchaser shall have the right to substitute any one of its Affiliates as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser or such Additional Purchaser and such Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 6.  Upon receipt of such notice, any reference to such Purchaser or such Additional Purchaser in this Agreement (other than in this Section 21), shall be deemed to refer to such Affiliate in lieu of such original Purchaser or such original Additional Purchaser.  In the event that such Affiliate is so substituted as a Purchaser or an Additional Purchaser hereunder and such Affiliate thereafter transfers to such original Purchaser or such original Additional Purchaser all of the Notes then held by such Affiliate, upon receipt by the Company of notice of such transfer, any reference to such Affiliate as a “Purchaser” or an “Additional Purchaser” in this Agreement (other than in this Section 21), shall no longer be deemed to refer to such Affiliate, but shall refer to such original Purchaser or such original Additional Purchaser, and such original Purchaser or such original Additional Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.
Section 22.    Miscellaneous.
    Section 22.1.    Successors and Assigns.  All covenants and other agreements contained in this Agreement (including all covenants and other agreements contained in any Supplement) by or on behalf of any of the parties hereto bind and inure to the benefit of their respective 
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AZZ Inc.        Note Purchase Agreement

successors and assigns (including any subsequent holder of a Note) whether so expressed or not, except that, subject to Section 10.2, the Company may not assign or otherwise transfer any of its rights or obligations hereunder or under the Notes without the prior written consent of each holder.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto and their respective successors and assigns permitted hereby) any legal or equitable right, remedy or claim under or by reason of this Agreement.
    Section 22.2.    Accounting Terms.  All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP.  Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP.  For purposes of determining compliance with the covenants set out in this Agreement, any election by the Company to measure an item of Indebtedness using fair value (as permitted by Financial Accounting Standards Board Accounting Standards Codification Topic No. 825-10-25 – Fair Value Option, International Accounting Standard 39 – Financial Instruments: Recognition and Measurement or any similar accounting standard) shall be disregarded and such determination shall be made by valuing indebtedness at 100% of the outstanding principal thereof.  Notwithstanding the foregoing, if the Company notifies the holders of Notes that, in the Company’s reasonable opinion, or if the Required Holders notify the Company that, in the Required Holders’ reasonable opinion, as a result of changes in GAAP from time to time (“Subsequent Changes”), any of the covenants contained in Section 10 or any of the defined terms used therein, no longer apply as intended such that such covenants are materially more or less restrictive to the Company than are such covenants immediately prior to giving effect to such Subsequent Changes, the Company and the holders of Notes shall negotiate in good faith to reset or amend such covenants or defined terms so as to negate such Subsequent Changes, or to establish alternative covenants or defined terms.  Until the Company and the Required Holders so agree to reset, amend or establish alternative covenants or defined terms, the covenants contained in Section 10, together with the relevant defined terms, shall continue to apply and compliance therewith shall be determined assuming that the Subsequent Changes shall not have occurred (“Static GAAP”).  During any period that compliance with any covenants shall be determined pursuant to Static GAAP, the Company shall include relevant reconciliations in reasonable detail between GAAP and Static GAAP with respect to the applicable covenant compliance calculations contained in each certificate of a Senior Financial Officer delivered pursuant to Section 7.2 during such period.
    Section 22.3.    Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.
    Section 22.4.    Construction, Etc.  Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.  Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, 
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AZZ Inc.        Note Purchase Agreement

such provision shall be applicable whether such action is taken directly or indirectly by such Person.
Defined terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein) and, for purposes of the Notes, shall also include any such notes issued in substitution therefor pursuant to Section 13, (b) subject to Section 22.1, any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections and Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement, and (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time.
    Section 22.5.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument.  Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.  The parties agree to electronic contracting and signatures with respect to this Agreement, the Subsidiary Guaranty and the other documents delivered in connection therewith (excluding the Notes, collectively referred to herein as the “Note Documents”).  Delivery of an electronic signature to, or a signed copy of, the Note Documents by facsimile, email or other electronic transmission shall be fully binding on the parties to the same extent as the delivery of the signed originals and shall be admissible into evidence for all purposes.  The words “execution,” “execute,” “signed,” “signature,” and words of like import in or related to any document to be signed in connection with the Note Documents shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Company, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paperbased recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.  Notwithstanding the foregoing, if any Purchaser shall request manually signed counterpart signatures to any Note Document, the Company hereby agrees to use its reasonable endeavors to provide such manually signed signature pages as soon as reasonably practicable.
    Section 22.6.    Governing Law.  This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of 
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AZZ Inc.        Note Purchase Agreement

New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.
    Section 22.7.    Jurisdiction and Process; Waiver of Jury Trial.  (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes.  To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.
    (b)    The Company agrees, to the fullest extent permitted by applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in Section 22.7(a) brought in any such court shall be conclusive and binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by a suit upon such judgment.
    (c)    The Company consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the nature referred to in Section 22.7(a) by mailing a copy thereof by registered, certified, priority or express mail (or any substantially similar form of mail), postage prepaid, return receipt or delivery confirmation requested, to it at its address specified in Section 18 or at such other address of which such holder shall then have been notified pursuant to said Section.  The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it.  Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.
    (d)    Nothing in this Section 22.7 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.
    (e)    The parties hereto hereby waive trial by jury in any action brought on or with respect to this Agreement, the Notes or any other document executed in connection herewith or therewith.
*   *   *   *   *
The execution hereof by the Company and Purchasers shall constitute a contract among the 
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AZZ Inc.        Note Purchase Agreement

Company and the Purchasers for the uses and purposes hereinabove set forth.  This Agreement may be executed in any number of counterparts, each executed counterpart constituting an original but all together only one agreement.
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AZZ Inc.        Note Purchase Agreement

Very truly yours,

AZZ Inc.

By: /s/ Thomas E. Ferguson    
    Name:    Thomas E. Ferguson
    Title:    President and Chief Executive Officer

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AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

Massachusetts Mutual Life Insurance Company
By: Barings LLC as Investment Adviser

By: /s/ James Moore    
    Name: James Moore
    Title:  Managing Director

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AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

Pacific Life Insurance Company

By: /s/ Matthew A. Levene    
    Name: Matthew A. Levene
    Title:  Assistant Vice President 

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AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

The Prudential Insurance Company of America

By: /s/ Jason Hartman     
     Name: Jason Hartman
    Title:  Second Vice President

BCBSM, Inc. dba Blue Cross and Blue Shield of Minnesota

By: PGIM Private Placement Investors, L.P. (as Investment Advisor)

By: PGIM Private Placement Investors, Inc. (as its General Partner)

    By: /s/ Jason Hartman                
    Name: Jason Hartman
    Title:  Vice President

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AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

The Guardian Life Insurance Company of America
The Guardian Insurance & Annuity Company, Inc.

By:/s/ Gwendolyn S. Foster    
    Name: Gwendolyn S. Foster
    Title: Managing Director

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AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

American Republic Insurance Company
Blue Cross and Blue Shield of Florida, Inc.
Catholic United Financial
Minnesota Life Insurance Company
New Era Life Insurance Company
Optum Bank, Inc.
Polish National Alliance of the U.S. of N.A.
Securian Life Insurance Company
Trustmark Insurance Company
UnitedHealthcare Insurance Company
Unity Financial Life Insurance Company
Western Fraternal Life Association

By: Securian Asset Management, Inc.

By: /s/ Robin J. Lenarz    
    Name: Robin J. Lenarz
    Title: Vice President 

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AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

Thrivent Financial for Lutherans

By: /s/ William J. Hochmuth    
    Name: William J. Hochmuth
    Title:   Senior Managing Director

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AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

American General Life Insurance Company
American Home Assurance Company

By: AIG Asset Management (U.S.), LLC, as Investment Adviser

By: /s/ Craig Moody    
    Name: Craig Moody
    Title:  Sr. Vice President

American International Group UK Limited, acting by its investment adviser, AIG Asset Management (Europe) Limited, acting by its agent, AIG Asset Management (U.S.), LLC

By: /s/ Craig Moody    
    Name: Craig Moody
    Title:  Sr. Vice President

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AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

Connecticut General Life Insurance Company
By: Cigna Investments, Inc. (authorized agent)

By: /s/ Jason Smith    
    Name: Jason Smith
    Title:  Managing Director 

Cigna Health and Life Insurance Company
By: Cigna Investments, Inc. (authorized agent)

By: /s/ Jason Smith    
    Name: Jason Smith
    Title:  Managing Director

HealthSpring Life & Health Insurance Company, Inc.
By: Cigna Investments, Inc. (authorized agent)

By: /s/ Jason Smith    
    Name: Jason Smith
    Title:  Managing Director

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AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

United of Omaha Life Insurance Company

By: /s/ Justin P. Kavan    
    Name: Justin P. Kavan
    Title: Senior Vice President

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AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

Ameritas Life Insurance Corp.
Ameritas Life Insurance Corp. of New York
By: Ameritas Investment Partners Inc., as Agent

By: /s/ Tina Udell    
    Name: Tina Udell
    Title:  Vice President & Managing Director

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AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

The Lincoln National Life Insurance Company
By: Macquarie Investment Management Advisers, a series of Macquarie Investment Management Business Trust, Attorney in Fact

By: /s/ Frank LaTorraca    
    Name: Frank LaTorraca
    Title: Managing Director

    -62-

AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

USAA Master Trust (Pension and RSP)
By: Macquarie Investment Management Advisers, a series of Macquarie Investment Management Business Trust, Attorney in Fact

By: /s/ Jamie Chiarieri    
    Name: Jamie Chiarieri
    Title:  VP, Senior Private Placements Analyst

    -63-

AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

State of Wisconsin Investment Board

By: /s/ Christopher P. Prestigiacomo    
    Name: Christopher P. Prestigiacomo
    Title: Portfolio Manager

    -64-

AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

Southern Farm Bureau Life Insurance Company

By: /s/ David Divine    
    Name: David Divine
    Title: Director – Securities Management

    -65-

AZZ Inc.        Note Purchase Agreement

Accepted as of the date first written above.

Life Insurance Company of the Southwest

By: /s/ Paul Koenig    
    Name: Paul Koenig
    Title:  Head of Portfolio Management
    Sentinel Asset Management, Inc.

    -66-

Information Relating to Purchasers
(Intentionally redacted) 

						
	Name of and Address
of Purchaser

	Principal Amount of Notes
to be Purchased

		

Schedule A
(to Note Purchase Agreement)

Defined Terms
As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:
“Acquisition” means any transaction or series of related transactions for the purpose of, or resulting in, directly or indirectly, (a) the acquisition by the Company or any of its Subsidiaries of all or substantially all of the assets of a Person or of any business or division of a Person, (b) the acquisition by the Company or any of its Subsidiaries of more than fifty percent (50%) of any class of voting Equity Interests of any Person (provided that, formation or organization of any entity shall not constitute an “acquisition” to the extent that the loan constitutes an investment of the Company in any wholly‐owned Subsidiary or investments of any wholly‐owned Subsidiary in the Company or in another wholly‐owned Subsidiary); or (c) a merger, consolidation, amalgamation, or other combination by the Company or any of its Subsidiaries with another Person.
“Additional Notes” is defined in Section 2.2.
“Additional Purchasers” means purchasers of Additional Notes.
“Affiliate” means, at any time, and with respect to any Person, (a) any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and (b) any Person beneficially owning or holding, directly or indirectly, 10% or more of any class of voting or equity interests of the Company or any Subsidiary or any Person of which the Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of any class of voting or equity interests.  Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company.  
“Agreement” means this Note Purchase Agreement, including all Schedules and Exhibits attached to this Agreement, and as supplemented by any Supplement.
“Anti-Corruption Laws” means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010.
“Anti-Money Laundering Laws” means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act.
“Bank Credit Agreement” means the Amended and Restated Credit Agreement dated as of March 21, 2017 by and among the Company, certain Subsidiaries of the Company named therein, Bank of America, N.A., as administrative agent, and the other financial institutions party thereto, as amended, restated, joined, supplemented, increased or otherwise modified from time 
Schedule B
(to Note Purchase Agreement)

to time, and any renewals, extensions, increases or replacements thereof, which constitute the primary bank credit facility of the Company and its Subsidiaries.
“Blocked Person” means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b).
“Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed.
“Capital Lease” means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.
“Closing” is defined in Section 3 and shall refer to the First or Second Closing, as applicable.
“Closing Date” means the date of any Closing, as applicable.
“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time.
“Company” is defined in the first paragraph of this Agreement.
“Confidential Information” is defined in Section 20.
“Consolidated Indebtedness” means, all Indebtedness of the Company and its Subsidiaries determined on a consolidated basis in accordance with GAAP.
“Consolidated Net Worth” shall mean the consolidated stockholder’s equity of the Company and its Subsidiaries, as defined according to GAAP.
“Consolidated Total Assets” means, as of any date of determination, the total amount of all assets of the Company and its Subsidiaries, determined on a consolidated basis in accordance with GAAP.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms “Controlled” and “Controlling” shall have meanings correlative to the foregoing.
    B-2

“Controlled Entity” means (a) any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled Affiliates and (b) if the Company has a parent company, such parent company and its Controlled Affiliates.
“Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.
“Default Rate” means with respect to the Notes of any Series that rate of interest per annum that is the greater of (i) 2% per annum above the rate of interest stated in clause (a) of the first paragraph of such Notes or (ii) 2% over the rate of interest publicly announced by U.S. Bank, N.A. as its “base” or “prime” rate.
“Disclosure Documents” is defined in Section 5.3.
“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.
“EDGAR” means the SEC’s Electronic Data Gathering, Analysis and Retrieval System or any successor SEC electronic filing system for such purpose.
“EBITDA” means, for any Rolling Period, the sum of (a) Net Income for such Rolling Period, plus (b) the sum of all amounts deducted therefrom in respect of such Rolling Period, in conformity with GAAP, for interest, taxes, depreciation and amortization.
“Environmental Laws” means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to Hazardous Materials.
“Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.
“ERISA” means the Employee Retirement Income Security Act of 1974, and the rules and regulations promulgated thereunder from time to time in effect.
    B-3

“ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code.
“Event of Default” is defined in Section 11.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“FATCA” means (a) sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), together with any current or future regulations or official interpretations thereof, (b) any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the United States of America and any other jurisdiction, which (in either case) facilitates the implementation of the foregoing clause (a), and (c) any agreements entered into pursuant to section 1471(b)(1) of the Code.
“Form 10-K” is defined in Section 7.1(b).
“Form 10-Q” is defined in Section 7.1(a).
“Funded Debt” means, with respect to the Company and its Subsidiaries on a consolidated basis, at any time and without duplication, the sum of (a) the principal amount of all Indebtedness for borrowed money, including, without limitation, all letters of credit issued on behalf of the Company or any of its Subsidiaries, (b) the net total amount capitalized on a balance sheet with respect to Capital Leases, plus (c) all other Indebtedness.
“GAAP” means those generally accepted accounting principles as in effect from time to time in the United States of America.
“Governmental Authority” means
    (a)    the government of
    (i)    the United States of America or any state or other political subdivision thereof, or
    (ii)    any other jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or
    (b)    any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.
“Governmental Official” means any governmental official or employee, employee of any government-owned or government-controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.
    B-4

“Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).  The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a corresponding meaning. 
“Hazardous Material” means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any Environmental Laws including, but not limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.
“holder” means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company pursuant to Section 13.1, provided, however, that if such Person is a nominee, then for the purposes of Sections 7, 12, 17.2 and 18 and any related definitions in this Schedule A, “holder” shall mean the beneficial owner of such Note whose name and address appears in such register.
“Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:
    (a)    all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;
    (b)    all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances and bank guaranties;
    B-5

    (c)    net obligations of such Person under any Swap Contract;
    (d)    all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business and, in each case, not past due for more than sixty (60) days after the date on which such trade account payable was created);
    (e)    indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;
    (f)    Capital Leases, Synthetic Lease Obligations, and other obligations that are considered borrowed money obligations for tax purposes but operating leases in accordance with GAAP;
    (g)    all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interest in such Person or any other Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and
    (h)    all Guarantees of such Person in respect of any of the foregoing.
For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non‐recourse to such Person.  The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date.  The amount of any Capital Lease or Synthetic Lease Obligation as of any date shall be deemed to be the amount of attributable Indebtedness in respect thereof as of such date. 
“INHAM Exemption” is defined in Section 6.2(e).
“Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note holding (together with one or more of its affiliates) more than $1,000,000 of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any Note.
“Interest Coverage Ratio” means for any Rolling Period, the ratio of (a) EBITDA to (b) Interest Expense, in each case for such Rolling Period.
“Interest Expense” means, for any period of calculation thereof for the Company and its Subsidiaries on a consolidated basis, the aggregate amount of all interest (including commitment fees) on all Indebtedness of the Company and its Subsidiaries, whether paid in cash or accrued as 
    B-6

a liability and payable in cash during such period (including, without limitation, imputed interest on Capital Lease obligations; the amortization of any original issue discount on any Indebtedness; the interest portion of any deferred payment obligation; all commissions, discounts, and other fees and charges owed with respect to letters of credit or bankers’ acceptance financing; net costs associated with Swap Contracts; the interest component of any Indebtedness that is guaranteed or secured by such Person), and all cash premiums or penalties for the repayment, redemption, or repurchase of Indebtedness.
“Leverage Ratio” means, with respect to the Company and its Subsidiaries on a consolidated basis, at any date of determination thereof with respect to the most recently ended Rolling Period, the ratio of (a) Funded Debt outstanding on such date less unrestricted domestic cash up to the lesser of (i) $50,000,000 or (ii) that certain portion of unrestricted domestic cash as set forth in the definition of “Leverage Ratio” (or such similar term) in the Bank Credit Agreement or such successor senior credit facility of the Company; provided that notwithstanding the terms of the Bank Credit Agreement or such successor senior credit facility of the Company, the unrestricted domestic cash permitted to be subtracted from Funded Debt pursuant to this Agreement shall not be less than $25,000,000 to (b) EBITDA for such Rolling Period.  For purposes of calculating the Leverage Ratio at any date of determination thereof, the Net Income and EBITDA of the Company and its Subsidiaries for the most recently ended Rolling Period shall (i) include, without duplication, the Net Income and EBITDA of any Subsidiary or business acquired during such Rolling Period in an Acquisition as if it was acquired on the first day of such Rolling Period, provided that such Net Income and EBITDA are supported by audited or other financial statements acceptable to the Required Holders and (ii) exclude the Net Income and EBITDA of any Subsidiary, or associated with any business of the Company or any Subsidiary, Disposed of during such Rolling Period as if such Disposition had occurred on the first day of such Rolling Period.
“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement (other than an operating lease) or Capital Lease, upon or with respect to any property or asset of such Person (including, in the case of stock, shareholder agreements, voting trust agreements and all similar arrangements).
“Make-Whole Amount” shall have the meaning (i) set forth in Section 8.6 with respect to any Series 2020 Note and (ii) set forth in the applicable Supplement with respect to any other Series of Notes.
“Material” means material in relation to the business, operations, affairs, financial condition, assets, properties, or prospects of the Company and its Subsidiaries taken as a whole.
“Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, or (b) the ability of the Company to perform its obligations under this Agreement (including any Supplement) and the Notes, (c) the ability of any Subsidiary Guarantor to perform its obligations under the Subsidiary Guaranty or (d) the validity or 
    B-7

enforceability of this Agreement (including any Supplement), the Notes or the Subsidiary Guaranty.
“Material Credit Facility” means, as to the Company and its Subsidiaries,
    (a)    the Bank Credit Agreement, including any renewals, extensions, amendments, supplements, restatements, replacements or refinancing thereof; and
    (b)    any other agreement(s) creating or evidencing indebtedness for borrowed money entered into on or after the date of Closing by the Company or any Subsidiary, or in respect of which the Company or any Subsidiary is an obligor or otherwise provides a guarantee or other credit support (“Credit Facility”), in a principal amount outstanding or available for borrowing equal to or greater than $50,000,000 (or the equivalent of such amount in the relevant currency of payment, determined as of the date of the closing of such facility based on the exchange rate of such other currency); and if no Credit Facility or Credit Facilities equal or exceed such amounts, then the largest Credit Facility shall be deemed to be a Material Credit Facility.
“Maturity Date” is defined in the first paragraph of each Note.
“Memorandum” is defined in Section 5.3.
“Moody’s” shall mean Moody Investors Service, Inc.
“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in Section 4001(a)(3) of ERISA).
“NAIC” means the National Association of Insurance Commissioners.
“Net Income” means, for any Rolling Period, as applied to the Company and its Subsidiaries (including any Subsidiaries acquired during such Rolling Period pursuant to any Acquisition and such net income (or net loss) is supported by an audit or is otherwise acceptable to the Required Holders), the consolidated net income (or net loss) of the Company and its Subsidiaries after giving effect to deduction of or provision for all operating expenses, all taxes and reserves (including, without limitation, reserves for deferred taxes); provided, however, that such sum shall exclude:
    (a)    any net gains or losses on the sale or the other disposition, not in the ordinary course of business, of investments and other capital assets, provided that there shall also be excluded any related charges for taxes thereon;
    (b)    any net gain arising from the collection of the proceeds of any insurance policy (other than any business interruption insurance policy);
    (c)    any write up or write down of any asset; 
    B-8

    (d)    any other extraordinary item, as defined by GAAP; and 
    (e)    any net income or loss in connection with a joint venture except to the extent such net income is paid in cash to the Company or any of its Subsidiaries by dividend or other distribution.
“Non-U.S. Plan” means any plan, fund or other similar program that (a) is established or maintained outside the United States of America by the Company or any Subsidiary primarily for the benefit of employees of the Company or one or more Subsidiaries residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and (b) is not subject to ERISA or the Code.
“Note Documents” means this Agreement, the Note, any Supplement and the Subsidiary Guaranty (including any joinders thereto).
“Notes” is defined in Section 1.
“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.
“OFAC Sanctions Program” means any economic or trade sanction that OFAC is responsible for administering and enforcing.  A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.
“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate.
“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.
“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a government or agency or political subdivision thereof.
“Plan” means an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability.
“Presentation” is defined in Section 5.3.
“Priority Indebtedness” means (without duplication), as of the date of any determination thereof, the sum of (i) all unsecured Indebtedness of Subsidiaries (including all Guarantees of Indebtedness of the Company but excluding (x) Indebtedness owing to the Company or any other 
    B-9

Subsidiary, (y) Indebtedness outstanding at the time such Person became a Subsidiary, provided that such Indebtedness shall have not been incurred in contemplation of such person becoming a Subsidiary, and (z) all Subsidiary Guaranties and all Guarantees of Indebtedness of the Company by any Subsidiary which has also guaranteed the Notes) and (ii) all Indebtedness of the Company and its Subsidiaries secured by Liens other than Indebtedness secured by Liens permitted by subparagraphs (a) through (j), inclusive, of Section 10.5.
“property” or “properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.
“Public Filings” is defined in Section 5.3.
“Purchaser” or “Purchasers” means each of the purchasers that has executed and delivered this Agreement to the Company and such Purchaser’s successors and assigns (so long as any such assignment complies with Section 13.2), provided, however, that any Purchaser of a Note that ceases to be the registered holder or a beneficial owner (through a nominee) of such Note as the result of a transfer thereof pursuant to Section 13.2 shall cease to be included within the meaning of “Purchaser” of such Note for the purposes of this Agreement upon such transfer.
“Purchase Price” means, with respect to any Acquisition, all direct, indirect, and deferred cash and non‐cash payments made to or for the benefit of the Person being acquired (or whose assets are being acquired), its shareholders, officers, directors, employees, or Affiliates in connection with such Acquisition, including, without limitation, the amount of any Indebtedness being assumed in connection with such Acquisition (which shall be otherwise permitted under this Agreement), seller financing, payments under non‐competition or consulting agreements entered into in connection with such Acquisition and similar agreements, all non‐cash consideration and the value of any stock, options, or warrants or other Rights to acquire stock issued as part of the consideration in such transaction; provided that, for the purposes hereof, non‐competition agreements and consulting agreements shall be valued at their present value discounted over the term of such agreement at the Base Rate (as defined in the Bank Credit Agreement) in effect at the time of the Acquisition in accordance with the Bank Credit Agreement. 
“QPAM Exemption” means Prohibited Transaction Class Exemption 8414 issued by the United States Department of Labor.
“Qualified Institutional Buyer” means any Person who is a qualified institutional buyer within the meaning of such term as set forth in Rule 144(a)(1) under the Securities Act.
“Related Fund” means, with respect to any holder of any Note, any fund or entity that (i) invests in Securities or bank loans, and (ii) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor.
“Required Holders” means, (i) at any time prior to or on the First Closing, the Purchasers, (ii) at any time after the First Closing and prior to or on the Second Closing, the Purchasers of the Series 2020A Notes and the holders of more than 50% in principal amount of 
    B-10

the Series 2020B Notes and (iii) at any time after the Second Closing, the holders of more than 50% in principal amount of Notes of all Series at the time outstanding (in each case of the above, exclusive of Notes then owned by the Company or any of its Affiliates and any Notes held by parties who are contractually required to abstain from voting with respect to matters affecting the holders of the Notes).
“Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement.
“Rolling Period” means, on any date of determination, the most recent four fiscal quarters of the Company and its Subsidiaries ended on May 31, August 31, November 30 or February 28 or 29 (as the case may be).
“S&P” means Standard & Poor’s Ratings Group, a division of The McGrawHill Companies, Inc.
“SEC” means the Securities and Exchange Commission of the United States of America.
“Securities” or “Security” shall have the meaning specified in section 2(1) of the Securities Act.
“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.
“Senior Indebtedness” means, as of the date of any determination thereof, all Consolidated Indebtedness, other than Subordinated Indebtedness.
“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the Company.
“Series” means any series of Notes issued pursuant to this Agreement or any Supplement hereto.
“Series 2020 Notes” is defined in Section 1 of this Agreement.
“Series 2020A Notes” is defined in Section 1 of this Agreement.
“Series 2020B Notes” is defined in Section 1 of this Agreement.
“Significant Acquisition” means any Acquisition by the Company or any of its Subsidiaries of any business which is engaged in a business substantially similar to that of the Company and its Subsidiaries and the Purchase Price for such Acquisition is in excess of $150,000,000.
“State Sanctions List” means a list that is adopted by any state Governmental Authority within the United States of America pertaining to Persons that engage in investment or other 
    B-11

commercial activities in Iran or any other country that is a target of economic sanctions imposed under U.S. Economic Sanctions Laws.
“Static GAAP” is defined in Section 22.2.
“Subordinated Indebtedness” means all unsecured Indebtedness of the Company that shall contain or have applicable thereto subordination provisions providing for the subordination thereof to other Indebtedness of the Company (including, without limitation, the obligations of the Company under this Agreement or the Notes).
“Subsequent Changes” is defined in Section 22.2.
“Subsidiary” means, as to any Person, any corporation, association or other business entity in which such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such entity, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries).  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company.
“Subsidiary Guarantor” means each Subsidiary which is party to the Subsidiary Guaranty.
“Subsidiary Guaranty” is defined in Section 2.3 of this Agreement and shall include any Joinder Agreements executed by Subsidiaries pursuant to Section 9.7.
“Supplement” is defined in Section 2.2 of this Agreement.
“SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.
“Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross‐currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange 
    B-12

Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.
“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark‐to‐market value(s) for such Swap Contracts, as determined based upon one or more mid‐market or other readily available quotations provided by any recognized dealer in such Swap Contracts
“Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so-called synthetic, off‐balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).
“tranche” means all Notes of a Series having the same maturity, interest rate and schedule for mandatory prepayments.
“Treasury Stock” means capital stock of the Company that is owned by the Company and held in treasury.
“USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.
“U.S. Economic Sanctions Laws” means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program.
“Wholly-Owned Subsidiary” means, at any time, any Subsidiary one hundred percent of all of the equity interests (except directors’ qualifying shares) and voting interests of which are owned by any one or more of the Company and the Company’s other Wholly-Owned Subsidiaries at such time.

    B-13

Changes in Corporate Structure

None.

Schedule 4.9 
(to Note Purchase Agreement)

Subsidiaries of the Company, Ownership of Subsidiary Stock, Affiliates

(i)    List of the Company’s Subsidiaries—Name, Jurisdiction, Ownership Percentages

									
	Name of Subsidiary	Jurisdiction of Formation	Ownership Percentage
	AAA Galvanizing – Chelsea, LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AAA Galvanizing – Dixon, Inc.	Delaware	100% of shares owned by Arbor-Crowley, LLC
	AAA Galvanizing – Hamilton, LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AAA Galvanizing – Joliet, Inc.	Delaware	100% of shares owned by Arbor-Crowley, LLC
	AAA Galvanizing – Peoria, Inc.	Delaware	100% of shares owned by Arbor-Crowley, LLC
	AAA Galvanizing – Winsted, Inc.	Delaware	100% of shares owned by Arbor-Crowley, LLC
	Arbor-Crowley, LLC	Delaware	100% of interests owned by the Company
	Arizona Galvanizing, Inc.	Arizona	100% of shares owned by Arbor-Crowley, LLC
	ArkGalv, LLC	Arkansas	100% of interests owned by the Company
	Atkinson Industries, Inc.	Kansas	100% of shares owned by the Company
	Automatic Processing Incorporated	Mississippi	100% of shares owned by Aztec Industries, Inc.
	Aztec Industries, Inc.	Mississippi	100% of shares owned by the Company
	Aztec Manufacturing – Waskom LLC	Texas	100% of interests owned by Arbor-Crowley, LLC
	Aztec Manufacturing LLC	Texas	100% of interests owned by Arbor-Crowley, LLC
	AZZ – Texas Welded Wire, LLC	Delaware	100% of interests owned by AZZ Acquisition Sub LLC
	AZZ Acquisition Sub, LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ Bus System Services LLC	Delaware	100% of interests owned by AZZ Specialty Repair and Overhaul
	AZZ Canada Limited	Canada	100% of shares owned by Arbor-Crowley, LLC
	AZZ Electrical Holding B.V.	Netherlands	100% of interests owned by AZZ Holding Cooperatieve U.A.
	AZZ Enclosure Systems – Chattanooga LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ Enclosure Systems LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ Galvanizing – Big Spring, LLC	Delaware	100% of interests owned by AZZ Acquisition Sub LLC
	AZZ Galvanizing - Bristol LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ Galvanizing – Chattanooga LLC	Tennessee	100% of interests owned by Arbor-Crowley, LLC
	AZZ Galvanizing – Hurst, LLC	Delaware	100% of interests owned by AZZ Acquisition Sub LLC
	AZZ Galvanizing – Kennedale, LLC	Delaware	100% of interests owned by AZZ Acquisition Sub LLC
	AZZ Galvanizing – Louisiana LLC	Delaware	100% of interests owned by AZZ Galvanizing – Bristol LLC
	AZZ Galvanizing – Morgan City, LLC	Delaware	100% of interests owned by AZZ Acquisition Sub LLC
	AZZ Galvanizing – Nashville	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ Galvanizing – Nebraska, LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ Galvanizing – Reno, LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ Galvanizing – Rockford LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ Galvanizing – San Antonio, LLC	Delaware	100% of interests owned by AZZ Acquisition Sub LLC
	AZZ Galvanizing Canada Limited	Canada	100% of shares owned by AZZ Canada Limited
	AZZ Group LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ Holding Cooperative U.A.	Netherlands	99% of interests owned by AZZ Netherlands II, C.V. and 1% of interests owned by AZZ Netherlands, LLC

Schedule 5.4 
(to Note Purchase Agreement)

									
	AZZ Holdings LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ International Holdings LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ International I, LLC	Delaware	100% of interests owned by AZZ International Holdings, LLC
	AZZ International II, LLC	Delaware	100% of interests owned by AZZ International Holdings, LLC
	AZZ Netherlands I, C.V.	Netherlands	99% of interests owned by AZZ International Holdings, LLC and 1% of interests owned by AZZ International I, LLC
	AZZ Netherlands II, C.V.	Netherlands	99% of interests owned by AZZ Netherlands I, C.V. and 1% of interests owned by AZZ International II, LLC
	AZZ Netherlands, LLC	Delaware	100% of interests owned by AZZ Netherlands II, C.V.
	AZZ SMS LLC	Florida	100% of interests owned by AZZ Specialty Repair and Overhaul, LLC
	AZZ Specialty Repair and Overhaul LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ Specialty Welding Services (Shanghai) Co. Ltd	China	100% of shares owned by AZZ WSI Holding B.V.
	AZZ Surface Technologies LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	AZZ Surface Technologies – Crowley LLC	Delaware	100% interests owned by AZZ Surface Technologies LLC
	AZZ Surface Technologies – Gainesville LLC	Delaware	100% interests owned by AZZ Surface Technologies LLC
	AZZ Surface Technologies – Garland North LLC	Delaware	100% interests owned by AZZ Surface Technologies LLC
	AZZ Surface Technologies – Garland South LLC	Delaware	100% interests owned by AZZ Surface Technologies LLC
	AZZ Surface Technologies – Rowlett LLC	Delaware	100% interests owned by AZZ Surface Technologies LLC
	AZZ Surface Technologies – Tampa LLC	Florida	100% interests owned by AZZ Surface Technologies LLC
	AZZ Surface Technologies – Terrell LLC	Delaware	100% interests owned by AZZ Surface Technologies LLC
	AZZ Trading (Shanghai) Co., Ltd	China	100% of shares owned by Arbor-Crowley, LLC
	AZZ WSI B.V.	Netherlands	100% of interests owned by AZZ WSI Holding B.V.
	AZZ WSI Canada, ULC	Canada	100% of interests owned by AZZ WSI Holding B.V.
	AZZ WSI do Brasil Ltda.	Brazil	99.9% of partnership interests owned by AZZ WSI Holding B.V. and .01% partnership interests owned by Duncan Thomas.01% quatos
	AZZ WSI Holding B.V.	Netherlands	100% of interests owned by AZZ Holding Cooperatieve U.A.
	AZZ WSI Holding Cooperatieve U.A.	Netherlands	99% of interests owned by AZZ Netherlands II, C.V. and 1% of interests owned by AZZ Netherlands, LLC
	AZZ WSI LLC	Delaware	100% of interests owned by AZZ Specialty Repair and Overhaul, LLC
	AZZ WSI Poland, SP. z.o.o.	Poland	100% of interests owned by AZZ WSI B.V.
	Carter and Crawley LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	Central Electric Company	Missouri	100% of shares owned by Arbor-Crowley, LLC
	Central Electric Manufacturing Company	Missouri	100% of shares owned by Central Electric Company
	CGIT (Jiangsu) High Voltage Power Co., Ltd	China	100% of shares owned by AZZ Electrical Holding B.V.
	CGIT Systems, Inc.	Delaware	100% of shares owned by Arbor-Crowley, LLC
	Electrical Power Systems, LLC	Missouri	100% of shares owned by North American Galvanizing & Coatings, Inc.
	Gulf Coast Galvanizing, LLC	Alabama	100% of interests owned by the Company
	Hobson Galvanizing, LLC	Louisiana	100% of interests owned by Arbor-Crowley, LLC
	International Galvanizers LLC	Texas	100% of interests owned by Arbor-Crowley, LLC
	NAGALV-Ohio, Inc.	Delaware	100% of shares owned by North American Galvanizing Company, LLC
	NAGALV-WV, Inc.	Delaware	100% of shares owned by North American Galvanizing Company, LLC
	North American Galvanizing & Coatings, Inc.	Delaware	100% of shares owned by Arbor-Crowley, LLC
	North American Galvanizing Company, LLC	Delaware	100% of interests owned by North American Galvanizing & Coatings, Inc.
	Powergrid Solutions LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	Reinforcing Services, LLC	Oklahoma	100% of interests owned by North American Galvanizing Company LLC

    5.4-2

									
	Rig-A-Lite LLC	Texas	100% of interests owned by Arbor-Crowley, LLC
	Rogers Galvanizing Company – Kansas City	Oklahoma	100% of shares owned by North American Galvanizing Company LLC
	The Calvert Company, Inc.	Mississippi	100% of shares owned by the Company
	Westside Galvanizing Services, LLC	Delaware	100% of interests owned by Arbow-Crowley, LLC
	Witt Galvanizing – Cincinnati, LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	Witt Galvanizing – Muncie, LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	Witt Galvanizing – Plymouth, LLC	Delaware	100% of interests owned by Arbor-Crowley, LLC
	Zalk Steel & Supply Co.	Delaware	100% of shares owned by Arbor-Crowley, LLC

(ii)    List of the Company’s Affiliates (other than Subsidiaries)

None.

(iii)    List of the Company’s Directors and Senior Officers
    5.4-3

Directors:    Daniel E. Berce, Paul Eisman, Daniel R. Feehan, Thomas E. Ferguson, Kevern R. Joyce, Venita McCellon-Allen, Ed McGough and Steven R. Purvis.

Senior
Officers:    Thomas E. Ferguson (President and Chief Executive Officer), Philip Schlom (Interim Chief Financial Officer and Chief Accounting Officer), Tara D. Mackey (Chief Legal Officer and Secretary), Matt Emery (Chief Information and Human Resource Officer), Chris Bacius (Vice President, Corporate Development), Gary Hill (President and General Manager - Industrial Platform), Ken Lavelle (President and General Manager - Electrical Platform), Bryan Stovall (Chief Operating Officer - Metal Coatings).

    5.4-4

Financial Statements

1.    AZZ Inc. Annual Report on Form 10-K, including audited financial statements, for the period ending February 29, 2020.
2.    AZZ Inc. Form 10-Q for the period ending May 31, 2020.

Schedule 5.5
(to Note Purchase Agreement)

Existing Indebtedness; Future Liens
1.Indebtedness arising under the Bank Credit Agreement.  As of August 31, 2020, the principal amount of Indebtedness under the Bank Credit Agreement was $47 million.  The Indebtedness under the Bank Credit Agreement is unsecured and is guaranteed by the Company’s Subsidiaries.  Section 7.03 of the Bank Credit Agreement contains restrictions on the ability of the Company and its Subsidiaries to incur Indebtedness.
2.Indebtedness arising under that certain Note Purchase Agreement, dated as of January 20, 2011, among the Company and the purchasers party thereto (the “Prior Agreement”).  As of August 31, 2020, the principal amount of outstanding Indebtedness under the Prior Agreement was $125 million. The Indebtedness under the Prior Agreement is unsecured and is guaranteed by the Company’s Subsidiaries.  Sections 10.1, 10.2 and 10.4 of the Prior Agreement contain restrictions on the ability of the Company and its Subsidiaries to incur Indebtedness.
3.Bank of America Standby Outstandings under Letter of Credit in the principal amount of $10.0 million. 
4.HSBC Standby Outstandings under Letter of Credit in the principal amount of CNY 88.9 million.
5.Bank of America Shanghai Standby Outstandings under Letter of Credit in the principal amount of CNY 5.72 million.
6.ITAU Bank Guarantee in the principal amount of BRL 0.58 million.
7.ABN AMRO Bank Guarantee in the principal amount of EUR 3.75 million (the “ABN AMRO Agreement”). 

Schedule 5.15
(to Note Purchase Agreement)

Existing Liens

1.UCC Financing Statement No. 14-0027645302 dated August 28, 2014 and filed with the Texas Secretary of State by NMHG Financial Services, Inc. against the Company covering all of the equipment now or hereafter leased by lessor to lessee; and all accessions, additions, replacements, and substitutions thereto and therefore; and all proceeds including insurance proceeds thereof.
2.UCC Financing Statement No. 15-0025999616 dated August 13, 2015 and filed with the Texas Secretary of State by Orbian Financial Services II, LLC against the Company, covering all right, title and interest of Debtor in and to the trade account receivables (i) which are owing to Debtor by Siemens Corp and any one or more of Siemens Corp’s permitted affiliates (“Account Debtor”), whether now existing or hereafter created arising out of Debtor’s sale and delivery of goods and/or services to the Account Debtor, and (ii) which have already been purchased from the Debtor by the Secured Party in exchange for non-recourse cash.
3.UCC Financing Statement No. 18-0011204562 dated April 2, 2019 and filed with the Texas Secretary of State by Atex Distributing, Inc. against the Company covering all right, title and interest of the Company in and to all inventory and equipment provided by Atex Distributing, Inc. or any of its subsidiaries. 
4.UCC Financing Statement No. 19-0021980585 dated June 12, 2019 and filed with the Texas Secretary of State by Mazak Corporation against the Company covering all rights, title and interest with respect to the Mazak Machine SN 300119. 
5.UCC Financing Statement No. 19-0031817373 dated August 20, 2019 and filed with the Texas Secretary of State by CSC, as representative, against the Company covering all present and future Goods including, but not limited to, various compute equipment, personal computers, laptops, peripherals and software wherever located, leased by Lessor to the Company pursuant to Rental Agreement No. 1. between Lessor and the Company. 
6.All assets, including inventory, equipment and accounts receivable of AZZ WSI B.V. are pledged to ABN AMRO Bank N.V. in respect of the obligations under the ABN AMRO Agreement.

Schedule 10.5
(to Note Purchase Agreement)

[Form of Series 2020A Note]

AZZ Inc.

2.77% Senior Note, Series 2020A, due January 19, 2028

No. RA-[_______]    [Date]
$[__________]                                                                                               PPN 002474 B*4
For Value Received, the undersigned, AZZ Inc. (herein called the “Company”), a corporation organized and existing under the laws of the State of Texas, hereby promises to pay to [_____________________] or registered assigns, the principal sum of [______________] Dollars (or so much thereof as shall not have been prepaid) on January 19, 2028 with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance hereof at the rate of 2.77% per annum from the date hereof, payable semi-annually, on the 19th day of January and July in each year and at maturity, commencing with the January 19 or July 19 next succeeding the date hereof, commencing with July 19, 2021, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment of interest and, during the continuance of an Event of Default, on such unpaid balance and on any overdue payment of any Make-Whole Amount, at a rate per annum from time to time equal to the greater of (i) 4.77% or (ii) 2% over the rate of interest publicly announced by U.S. Bank, N.A. from time to time in New York, New York as its “base” or “prime” rate, payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).
Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at the principal office of U.S. Bank, N.A. in New York, New York or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.
This Note is one of a series of Senior Notes, Series 2020A, (herein called the “Notes”) issued pursuant to the Note Purchase Agreement, dated as of October 9, 2020 (as from time to time amended, supplemented or modified, the “Note Purchase Agreement”), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof.  Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made the representations set forth in Section 6.2 of the Note Purchase Agreement, provided, that in lieu thereof such holder may (in reliance upon information provided by the Company, which shall not be unreasonably withheld) make a representation to the effect that the purchase by any holder of any Note will not constitute a non-exempt prohibited transaction under section 406(a) of ERISA.  Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.
This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney 
Exhibit 1A
(to Note Purchase Agreement)

duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.
This Note is not subject to regularly scheduled payments of principal.  This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.
Pursuant to the Subsidiary Guaranty Agreement dated as of October 9, 2020 (as amended, restated or otherwise modified from time to time, the “Subsidiary Guaranty”), certain Subsidiaries of the Company have absolutely and unconditionally guaranteed payment in full of the principal and Make-Whole Amount, if any, of and interest on this Note and the performance by the Company of its obligations contained in the Note Purchase Agreement all as more fully set forth in said Subsidiary Guaranty.
If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.
This Note shall be construed and enforced in accordance with, and the rights of the issuer and holder hereof shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State.

AZZ Inc.

By     
    Name:     
    Title:     

E-1-2

[Form of Series 2020B Note]

AZZ Inc.

3.17% Senior Note, Series 2020B, due December 17, 2032

No. RB-[_______]    [Date]
$[__________]                                                                                              PPN 002474 B@2
For Value Received, the undersigned, AZZ Inc. (herein called the “Company”), a corporation organized and existing under the laws of the State of Texas, hereby promises to pay to [_____________________] or registered assigns, the principal sum of [______________] Dollars (or so much thereof as shall not have been prepaid) on December 17, 2032 with interest (computed on the basis of a 360day year of twelve 30-day months) (a) on the unpaid balance hereof at the rate of 3.17% per annum from the date hereof, payable semi-annually, on the 19th day of January and July in each year and at maturity, commencing with the January 19 or July 19 next succeeding the date hereof, commencing with July 19, 2021, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment of interest and, during the continuance of an Event of Default, on such unpaid balance and on any overdue payment of any Make-Whole Amount, at a rate per annum from time to time equal to the greater of (i) 5.17%, or (ii) 2% over the rate of interest publicly announced by U.S. Bank, N.A. from time to time in New York, New York as its “base” or “prime” rate, payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).
Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at the principal office of U.S. Bank, N.A. in New York, New York or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.
This Note is one of a series of Senior Notes, Series 2020B, (herein called the “Notes”) issued pursuant to the Note Purchase Agreement, dated as of October 9, 2020 (as from time to time amended, supplemented or modified, the “Note Purchase Agreement”), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof.  Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made the representations set forth in Section 6.2 of the Note Purchase Agreement, provided, that in lieu thereof such holder may (in reliance upon information provided by the Company, which shall not be unreasonably withheld) make a representation to the effect that the purchase by any holder of any Note will not constitute a non-exempt prohibited transaction under section 406(a) of ERISA.  Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.
This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney 
Exhibit 1B
(to Note Purchase Agreement)

duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.
This Note is not subject to regularly scheduled payments of principal.  This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.
Pursuant to the Subsidiary Guaranty Agreement dated as of October 9, 2020 (as amended, restated or otherwise modified from time to time, the “Subsidiary Guaranty”), certain Subsidiaries of the Company have absolutely and unconditionally guaranteed payment in full of the principal and Make-Whole Amount, if any, of and interest on this Note and the performance by the Company of its obligations contained in the Note Purchase Agreement all as more fully set forth in said Subsidiary Guaranty.
If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.
This Note shall be construed and enforced in accordance with, and the rights of the issuer and holder hereof shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State.

AZZ Inc.

By     
    Name:     
    Title:     

1B-2

Form of Subsidiary Guaranty
[See attached].

Subsidiary Guaranty Agreement
Dated as of October 9, 2020
from
The Subsidiary Guarantors Named Herein
for the benefit of
The Holders of the Notes
Re: $70,000,000 2.77% Senior Notes, Series 2020A, due January 19, 2028 $80,000,000 3.17% Senior Notes, Series 2020B, due December 17, 2032
of 
AZZ Inc.

Exhibit 2.3
(to Note Purchase Agreement)

Table of Contents
Section                                                        Heading                                                            Page

Section 1.                  Guaranty................................................................................................... 2
Section 2.                  Representations and Warranties............................................................... 4
Section 3.                  Subsidiary Guarantor’s Obligations Unconditional................................. 6
Section 4.                  Full Recourse Obligations; Pari Passu Ranking..................................... 11
Section 5.                  Waiver..................................................................................................... 11
Section 6.                  Waiver of Subrogation............................................................................ 12
Section 7.                  Subordination.......................................................................................... 13
Section 8.                  Effect of Bankruptcy Proceedings, Etc.................................................. 13
Section 9.                  Term of Guaranty.....................................................................................14
Section 10.                Contribution.............................................................................................14
Section 11.                Limitation of Liability..............................................................................14
Section 12.                Negative Pledge..................................................................................... .15
Section 13.                Supplemental Agreement.........................................................................15
Section 14.                Definitions and Terms Generally............................................................ 15
Section 15.                Notices.................................................................................................... 16
Section 16.                Amendments, Etc.................................................................................... 17
Section 17.                Consent to Jurisdiction; Service of Process........................................... 17
Section 18.                Waiver of Jury Trial................................................................................ 18
Section 19.                Survival................................................................................................  18
Section 20.                Severability............................................................................................ 18
Section 21.                Successors and Assigns.......................................................................... 18
    E-2.3-2

Section 22.                Table of Contents; Headings.................................................................. 19
Section 23.                Counterparts........................................................................................... 19
Section 24.                Governing Law...................................................................................... 19
Section 25.                Release................................................................................................... 19
Section 26.                Covenant Compliance............................................................................ 19

    E-2.3-3

This Subsidiary Guaranty Agreement, dated as of October 9, 2020 (the “Guaranty”), from each of:
1.AAA Galvanizing – Chelsea, LLC
2.AAA Galvanizing – Dixon, Inc.
3.AAA Galvanizing – Hamilton, LLC
4.AAA Galvanizing – Joliet, Inc.
5.AAA Galvanizing – Peoria, Inc.
6.AAA Galvanizing – Winsted, Inc.
7.Arbor-Crowley, LLC
8.Arizona Galvanizing, Inc.
9.ArkGalv, LLC
10.Atkinson Industries, Inc.
11.Automatic Processing Incorporated
12.Aztec Industries, Inc.
13.Aztec Manufacturing – Waskom LLC
14.Aztec Manufacturing LLC
15.AZZ – Texas Welded Wire, LLC
16.AZZ Acquisition Sub, LLC
17.AZZ Bus System Services LLC
18.AZZ Enclosure Systems – Chattanooga LLC
19.AZZ Enclosure Systems LLC
20.AZZ Galvanizing – Big Spring, LLC
21.AZZ Galvanizing - Bristol LLC
22.AZZ Galvanizing – Chattanooga LLC
23.AZZ Galvanizing – Hurst, LLC
24.AZZ Galvanizing – Kennedale, LLC
25.AZZ Galvanizing – Louisiana LLC
26.AZZ Galvanizing – Morgan City, LLC
27.AZZ Galvanizing – Nashville LLC
28.AZZ Galvanizing – Nebraska, LLC
29.AZZ Galvanizing – Reno, LLC
30.AZZ Galvanizing – Rockford LLC
31.AZZ Galvanizing – San Antonio, LLC
32.AZZ Group LLC
33.AZZ Holdings LLC
34.AZZ International Holdings LLC
35.AZZ International I, LLC
36.AZZ International II, LLC
37.AZZ Netherlands, LLC
38.AZZ SMS LLC
39.AZZ Specialty Repair and Overhaul LLC
40.AZZ Surface Technologies LLC
41.AZZ Surface Technologies – Crowley LLC
42.AZZ Surface Technologies – Gainesville LLC
43.AZZ Surface Technologies – Garland North LLC
44.AZZ Surface Technologies – Garland South LLC
45.AZZ Surface Technologies – Rowlett LLC
    E-2.3-4

46.AZZ Surface Technologies – Tampa LLC
47.AZZ Surface Technologies – Terrell LLC
48.AZZ WSI LLC
49.Carter and Crawley LLC
50.Central Electric Company
51.Central Electric Manufacturing Company
52.CGIT Systems, Inc.
53.Electrical Power Systems, LLC
54.Gulf Coast Galvanizing, LLC
55.Hobson Galvanizing, LLC
56.International Galvanizers LLC
57.NAGALV-Ohio, Inc.
58.NAGALV-WV, Inc.
59.North American Galvanizing & Coatings, Inc.
60.North American Galvanizing Company, LLC
61.Powergrid Solutions LLC
62.Reinforcing Services, LLC
63.Rig-A-Lite LLC
64.Rogers Galvanizing Company – Kansas City
65.The Calvert Company, Inc.
66.Westside Galvanizing Services, LLC
67.Witt Galvanizing – Cincinnati, LLC
68.Witt Galvanizing – Muncie, LLC
69.Witt Galvanizing – Plymouth, LLC
70.Zalk Steel & Supply Co..; and
71.such Subsidiaries as shall become parties hereto in accordance with Section 13 hereof (each a “Subsidiary Guarantor” and collectively the “Subsidiary Guarantors”),

for the benefit of the holders from time to time of the Notes (as defined below) (the “Holders”).  Capitalized terms used herein are defined in Section 14 hereof or the Note Purchase Agreement referred to below.

Whereas, AZZ Inc., a Texas corporation (the “Company”) will authorize the issue and sale of (i) $70,000,000 aggregate principal amount of its 2.77% Senior Notes, Series 2020A, due January 19, 2028 (the “Series 2020A Notes”) and (ii) $80,000,000 aggregate principal amount of its 3.17% Senior Notes, Series 2020B, due December 17, 2032 (the “Series 2020B Notes”, together with the Series 2020A Notes, the “Series 2020 Notes”) pursuant to a Note Purchase Agreement, dated as of the date hereof (as amended, modified or supplemented from time to time, the “Note Purchase Agreement”) among the Company and the purchasers named therein.  

Whereas, the Company is authorized to issue Additional Notes (as such term is defined in the Note Purchase Agreement) of one or more separate series from time to time in an aggregate principal amount not to exceed $750,000,000 outstanding pursuant to Section 2.2 of the Note Purchase Agreement.
    E-2.3-5

Whereas, the Additional Notes together with the Series 2020 Notes are collectively referred to as the “Notes”.

Whereas, each of the Subsidiary Guarantors is a Subsidiary of the Company.

Whereas, the Company has agreed that its Subsidiaries will guarantee the Company’s obligations under the Notes and the Note Purchase Agreement.

Whereas, the Subsidiary Guarantors each acknowledge that they will derive substantial benefits from the issuance of the Notes.

Now, Therefore, in consideration of the premises and to induce the Holders to purchase the Notes, each of the Subsidiary Guarantors, intending to be legally bound, hereby agrees for the benefit of the Holders, as follows:

Section 1.          GUARANTY. 

Each Subsidiary Guarantor with all other Subsidiary Guarantors, hereby absolutely, unconditionally and irrevocably guarantees, jointly and severally, as a primary obligor and not merely as a surety, to each Holder and its successors and assigns, the full and punctual payment and performance when due, whether at stated maturity, by acceleration or otherwise, of the principal of and Make-Whole Amount and interest on (including, without limitation, interest, whether or not an allowable claim, accruing after the date of filing of any petition in bankruptcy, or the commencement of any bankruptcy, insolvency or similar proceeding relating to the Company) the Notes and all other amounts under the Note Purchase Agreement and all other obligations, agreements and covenants of the Company now or hereafter existing under the Note Purchase Agreement whether for principal, Make-Whole Amount, interest (including interest accruing both prior to and subsequent to the commencement of any proceeding against or with respect to the Company under any chapter of the Bankruptcy Code), indemnification payments, expenses (including reasonable attorneys’ fees and expenses) or otherwise, and all reasonable costs and expenses, if any, incurred by any Holder in connection with enforcing any rights under this Guaranty (all such obligations being the “Guaranteed Obligations”), and agrees to pay any and all reasonable expenses incurred by each Holder in enforcing this Guaranty; provided that, notwithstanding anything contained herein or in the Note Purchase Agreement to the contrary, the maximum liability of each Subsidiary Guarantor hereunder and under the Note Purchase Agreement shall in no event exceed such Guarantor’s Maximum Guaranteed Amount, and provided further, each Subsidiary Guarantor shall be unconditionally required to pay all amounts demanded of it hereunder prior to any determination of such Maximum Guaranteed Amount and the recipient of such payment, if so required by a final non-appealable order of a court of competent jurisdiction, shall then be liable for the refund of any excess amounts.  If any such rebate or refund is ever required, all other Subsidiary Guarantors (and the Company) shall be fully liable for the repayment thereof to the maximum extent allowed by applicable law.  This Guaranty is an absolute, unconditional, present and continuing guaranty of payment and not of collectibility and is in no way conditioned upon any attempt to collect from the Company or any other action, occurrence or circumstance whatsoever.  Subject to the foregoing, each Subsidiary 
    E-2.3-6

Guarantor agrees that the Guaranteed Obligations may at any time and from to time exceed the Maximum Guaranteed Amount of such Subsidiary Guarantor without impairing this Guaranty or affecting the rights and remedies of the Holders hereunder.

Notwithstanding any stay, injunction or other prohibition preventing such action against the Company, if for any reason whatsoever the Company shall fail or be unable duly, punctually and fully to perform and (in the case of the payment of Guaranteed Obligations) pay such amounts as and when the same shall become due and (in the case of the payment of Guaranteed Obligations) payable or to perform or comply with any other Guaranteed Obligation, whether or not such failure or inability shall constitute an “Event of Default” under the Note Purchase Agreement or the Notes, each Subsidiary Guarantor will forthwith (in the case of the payment of Guaranteed Obligations) pay or cause to be paid such amounts to the Holders, in lawful money of the United States of America, at the place specified in the Note Purchase Agreement, or perform or comply with such Guaranteed Obligations or cause such Guaranteed Obligations to be performed or complied with, (in the case of the payment of Guaranteed Obligations) together with interest (in the amounts and to the extent required under such Notes) on any amount due and owing. 
Section 2.          Representations and Warranties. 

Each Subsidiary Guarantor hereby represents and warrants to the Holders as follows:
           
(a)     All representations and warranties contained in the Note Purchase Agreement that relate to such Subsidiary Guarantor are true and correct in all respects and are incorporated by reference with the same force and effect as though set forth herein in full.
         
  (b)     Such Subsidiary Guarantor acknowledges that any default in the due observance or performance by such Subsidiary Guarantor of any covenant, condition or agreement contained herein (if, after the running of any applicable notice and opportunity to cure periods provided in the Note Purchase Agreement, such default or event of default remains uncured) shall constitute an Event of Default.
         
  (c)     There are no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or expressly waived.
           (d)     Such Subsidiary Guarantor has, independently and without reliance upon the Holders and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Guaranty.  Such Subsidiary Guarantor has investigated fully the benefits and advantages which will be derived by it from execution of this Guaranty, and the Board of Directors (or other equivalent authority) of such Subsidiary Guarantor has decided that a direct and/or an indirect benefit will accrue to such Subsidiary Guarantor by reason of the execution of this Guaranty.
          
 (e)     (i) This Guaranty is not given with actual intent to hinder, delay or defraud any Person to which such Subsidiary Guarantor is or will become, on or after the date hereof, indebted; (ii) such Subsidiary Guarantor has received at least a reasonably equivalent value in exchange for the giving of this Guaranty; (iii) such Subsidiary Guarantor is not insolvent on the 
    E-2.3-7

date hereof and will not become insolvent as a result of the giving of this Guaranty; (iv) such Subsidiary Guarantor is not engaged in a business or transaction, nor is about to engage in a business or transaction, for which any property remaining with such Subsidiary Guarantor constitutes an unreasonably small amount of capital; and (v) such Subsidiary Guarantor does not intend to incur debts that will be beyond such Subsidiary Guarantor’s ability to pay as such debts mature.
            (f)     Such Subsidiary Guarantor is a corporation or other legal entity duly organized and validly existing under the laws of its state or province of organization, and has the requisite power, authority and legal right under the laws of its state or province of organization to conduct its business as presently conducted and to execute, deliver and perform its obligations under this Guaranty.
           (g)     The execution, delivery and performance of this Guaranty have been duly authorized by all necessary corporate action on the part of such Subsidiary Guarantor, and does not require any consent or approval of, or the giving of notice to, or the taking of any other action in respect of, any stockholder or trustee or holder of any indebtedness or obligations of such Subsidiary Guarantor.  This Guaranty constitutes a legal, valid and binding obligation of such Subsidiary Guarantor, enforceable against such Subsidiary Guarantor in accordance with its terms, except that such enforceability is subject to any limitations arising from bankruptcy, insolvency, liquidation, moratorium, reorganization and other similar laws of general application relating to or affecting the rights of creditors or pledgees and to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
         
  (h)     The execution, delivery and performance of this Guaranty does not and will not conflict with or result in any violation of or default under any provision of the Articles of Incorporation, by-laws, limited liability company agreement or partnership agreement, as the case may be, of such Subsidiary Guarantor, or any indenture, mortgage, deed of trust, instrument, law, rule or regulation binding on such Subsidiary Guarantor or to which such Subsidiary Guarantor is a party.
            
(i)     The execution, delivery and performance of this Guaranty does not and will not result in violation of any judgment or order applicable to such Subsidiary Guarantor or result in the creation or imposition of any Lien on any of the properties or revenues of such Subsidiary Guarantor pursuant to any requirement of law or any indenture, mortgage, deed of trust or other instrument to which such Subsidiary Guarantor is a party.
            
(j)     The execution, delivery and performance of this Guaranty does not and will not conflict with and does not and will not require any consent, approval or authorization of, or registration or filing with, any governmental authority or agency of the state or province of organization of such Subsidiary Guarantor or of the United States or any State.
           
(k)     There are no pending or, to the knowledge of such Subsidiary Guarantor, threatened actions or proceedings against or affecting such Subsidiary Guarantor or any of its properties by or before any court or administrative agency or arbiter that would adversely affect the ability of such Subsidiary Guarantor to perform its obligations hereunder or call into question the validity or enforceability of this Guaranty.
    E-2.3-8

            
(l)     Such Subsidiary Guarantor’s obligations under this Guaranty are at least pari passu in right of payment with all other unsecured claims against the general creditors of such Subsidiary Guarantor.
         
(m)      No Subsidiary Guarantor is in breach of or default under or with respect to any instrument, document or agreement binding upon such Subsidiary Guarantor which breach or default is reasonably probable to have a Material Adverse Effect or result in the creation of a Lien on any property of such Subsidiary Guarantor other than Liens permitted under Section 10.5 of the Note Purchase Agreement.  Such Subsidiary Guarantor is in compliance with all applicable requirements of law except such non‐compliance as would not have a Material Adverse Effect.
           
(n)      The execution, delivery and performance by each Subsidiary Guarantor of this Guaranty will not render such Subsidiary Guarantor insolvent, nor is it being made in contemplation of such Subsidiary Guarantor’s insolvency, and such Subsidiary Guarantor does not have an unreasonably small capital.

Section 3.         SUBSIDIARY GUARANTOR'S OBLIGATIONS UNCONDITIONAL  
           
(a)     This Guaranty shall constitute a guarantee of payment, performance and compliance and not of collection, and each Subsidiary Guarantor specifically agrees that it shall not be necessary, and that such Subsidiary Guarantor shall not be entitled to require, before or as a condition of enforcing the liability of such Subsidiary Guarantor under this Guaranty or requiring payment or performance of the Guaranteed Obligations by any Subsidiary Guarantor hereunder, or at any time thereafter, that any Holder:  (a) file suit or proceed to obtain or assert a claim for personal judgment against the Company or any other Person that may be liable for or with respect to any Guaranteed Obligation; (b) make any other effort to obtain payment or performance of any Guaranteed Obligation from the Company or any other Person that may be liable for or with respect to such Guaranteed Obligation, except for the making of the demands, when appropriate, described in Section 1; (c) foreclose against, or seek to realize upon security now or hereafter existing for such Guaranteed Obligations; (d) except to the extent set forth in Section 1, exercise or assert any other right or remedy to which such Holder is or may be entitled in connection with any Guaranteed Obligation or any security or other guaranty therefor; or (e) assert or file any claim against the assets of the Company or any other Person liable for any Guaranteed Obligation.  Each Subsidiary Guarantor agrees that this Guaranty shall be continuing, and that the Guaranteed Obligations will be paid and performed in accordance with their terms and the terms of this Guaranty, and are the primary, absolute and unconditional obligations of such Subsidiary Guarantor, irrespective of the value, genuineness, validity, legality, regularity or enforceability or lack thereof of any part of the Guaranteed Obligations or any agreement or instrument relating to the Guaranteed Obligations or this Guaranty, or the existence of any indemnities with respect to the existence of any other guarantee of or security for any of the Guaranteed Obligations, or any substitution, release or exchange of any other guarantee of or security for any of the Guaranteed Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever that might 
    E-2.3-9

otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this Section 3 that the obligations of each Subsidiary Guarantor hereunder shall be irrevocable, primary, absolute and unconditional under any and all circumstances.
          
 (b)     Each Subsidiary Guarantor hereby expressly waives notice of acceptance of and reliance upon this Guaranty, diligence, presentment, demand of payment or performance, protest and all other notices (except as otherwise provided for in Section 1) whatsoever, any requirement that the Holders exhaust any right, power or remedy or proceed against the Company or against any other Person under any other guarantee of, or security for, or any other agreement, regarding any of the Guaranteed Obligations.  Each Subsidiary Guarantor further agrees that, subject solely to the requirement of making demands under Section 1, the occurrence of any event or other circumstance that might otherwise vary the risk of the Company or such Subsidiary Guarantor or constitute a defense (legal or equitable) available to, or a discharge of, or a counterclaim or right of set‐off by, the Company or such Subsidiary Guarantor (other than the full and indefeasible due payment and performance of the Guaranteed Obligations), shall not affect the liability of such Subsidiary Guarantor hereunder.
          
 (c)     The obligations of each Subsidiary Guarantor under this Guaranty are not subject to any counterclaim, set-off, deduction, diminution, abatement, recoupment, suspension, deferment or defense based upon any claim such Subsidiary Guarantor or any other Person may have against the Company, any Holder or any other Person, and shall remain in full force and effect without regard to, and shall not be released, discharged or in any way affected by, any circumstances or condition whatsoever (whether or not such Subsidiary Guarantor or the Company shall have any knowledge or notice thereof), including:
              
 (i)      any renewal, extension, modification, increase, decrease, alteration or rearrangement of all or any part of the Guaranteed Obligations or any instrument executed in connection therewith, or any contract or understanding with the Company, the Holders, or any of them, or any other Person, pertaining to the Guaranteed Obligations;
              
(ii)      any adjustment, indulgence, forbearance or compromise that might be granted or given by any Holder to the Company or any other Person liable on the Guaranteed Obligations, or the failure of any Holder to assert any claim or demand or to exercise any right or remedy against the Company or any other Person under the provisions of the Note Purchase Agreement, the Notes or otherwise; or any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, the Note Purchase Agreement, the Notes, any guarantee or any other agreement;
            
 (iii)      the insolvency, bankruptcy arrangement, adjustment, composition, liquidation, disability, dissolution or lack of power of the Company or any other Person at any time liable for the payment of all or part of the Guaranteed Obligations; or any dissolution of the Company or any other such Person, or any change, restructuring or termination of the existence of the Company or any other such Person, or any sale, lease or transfer of any or all of the assets of the Company or any other such Person, or any 
    E-2.3-10

change in the shareholders, partners, or members of the Company or any other such Person; or any default, failure or delay, willful or otherwise, in the performance of the Guaranteed Obligations;
            
 (iv)      the invalidity, illegality or unenforceability of all or any part of the Guaranteed Obligations, or any document or agreement executed in connection with the Guaranteed Obligations, for any reason whatsoever, including the fact that the Guaranteed Obligations, or any part thereof, exceed the amount permitted by law, the act of creating the Guaranteed Obligations or any part is ultra vires, the officers or representatives executing the documents or otherwise creating the Guaranteed Obligations acted in excess of their authority, the Guaranteed Obligations violate applicable usury laws, the Company or any other Person has valid defenses, claims or offsets (whether at law, in equity or by agreement) which render the Guaranteed Obligations wholly or partially uncollectible from the Company or any other Person, the creation, performance or repayment of the Guaranteed Obligations (or the execution, delivery and performance of any document or instrument representing part of the Guaranteed Obligations or executed in connection with the Guaranteed Obligations or given to secure the repayment of the Guaranteed Obligations) is illegal, uncollectible, legally impossible or unenforceable, or the documents or instruments pertaining to the Guaranteed Obligations have been forged or otherwise are irregular or not genuine or authentic;
              
(v)      any full or partial release of the liability of the Company on the Guaranteed Obligations or any part thereof, of any co-guarantors, or of any other Person now or hereafter liable, whether directly or indirectly, jointly, severally, or jointly and severally, to pay, perform, guarantee or assure the payment of the Guaranteed Obligations or any part thereof, it being recognized, acknowledged and agreed by each Subsidiary Guarantor that such Subsidiary Guarantor may be required to pay the Guaranteed Obligations in full without assistance or support of any other Person, and such Subsidiary Guarantor has not been induced to enter into this Guaranty on the basis of a contemplation, belief, understanding or agreement that any parties other than the Company will be liable to perform the Guaranteed Obligations, or that the Holders will look to other parties to perform the Guaranteed Obligations;
            
 (vi)      the taking or accepting of any other security, collateral or guaranty, or other assurance of payment, for all or any part of the Guaranteed Obligations;
           
 (vii)      any release, surrender, exchange, subordination, deterioration, waste, loss or impairment (including negligent, unreasonable or unjustifiable impairment) of any collateral, property or security, at any time existing in connection with, or assuring or securing payment of, all or any part of the Guaranteed Obligations;
           
(viii)      the failure of any Holder or any other Person to exercise diligence or reasonable care in the preservation, protection, enforcement, sale or other handling or treatment of all or any part of such collateral, property or security;
    E-2.3-11

            
 (ix)      the fact that any collateral, security, security interest or lien contemplated or intended to be given, created or granted as security for the repayment of the Guaranteed Obligations shall not be properly perfected or created, or shall prove to be unenforceable or subordinate to any other security interest or lien, it being recognized and agreed by each Subsidiary Guarantor that such Subsidiary Guarantor is not entering into this Guaranty in reliance on, or in contemplation of the benefits of, the validity, enforceability, collectibility or value of any of the collateral;
           
   (x)      any payment by the Company to any Holder being held to constitute a preference under any Fraudulent Conveyance Law, or for any reason any Holder being required to refund such payment or pay such amount to the Company or someone else;
           
  (xi)      any other action taken or omitted to be taken with respect to the Guaranteed Obligations, or the security and collateral therefor, whether or not such action or omission prejudices such Subsidiary Guarantor or increases the likelihood that such Subsidiary Guarantor will be required to pay the Guaranteed Obligations pursuant to the terms hereof, it being the unambiguous and unequivocal intention of such Subsidiary Guarantor that it shall be obligated to pay the Guaranteed Obligations when due, notwithstanding any occurrence, circumstance, event, action or omission whatsoever, whether or not contemplated, and whether or not otherwise or particularly described herein, except for the full and final payment and satisfaction of the Guaranteed Obligations in cash;
            
(xii)      the fact that all or any of the Guaranteed Obligations cease to exist by operation of law, including by way of a discharge, limitation or tolling thereof under applicable bankruptcy laws;
           
(xiii)      any other circumstance (including any statute of limitations) that might in any manner or to any extent otherwise constitute a defense available to, vary the risk of, or operate as a discharge of, the Company or any Person as a matter of law or equity;
         
  (xiv)      any merger or consolidation of the Company or any Subsidiary Guarantor into or with any other Person or any sale, lease or transfer of any of the assets of the Company to any other Person;
            
(xv)      any change in the ownership of any shares of capital stock of the Company, or any change in the relationship between the Company and such Subsidiary Guarantor or any termination of any such relationship; 
           
(xvi)      any default, failure or delay, willful or otherwise, in the performance by the Company, any Subsidiary Guarantor or any other Person of any obligations of any kind or character whatsoever under the Note Purchase Agreement or any other agreement; 
        
    E-2.3-12

  (xvii)      any change in the ownership of any shares or partnership interests of the Company, any Subsidiary Guarantor or any other Person; 
      
   (xviii)      in respect of the Company, any Subsidiary Guarantor or any other Person, any change of circumstances, whether or not foreseen or foreseeable, whether or not imputable to the Company, any Subsidiary Guarantor or any other Person, or other impossibility of performance through fire, explosion, accident, labor disturbance, floods, droughts, embargoes, wars (whether or not declared), civil commotion, acts of God or the public enemy, delays or failure of suppliers or carriers, inability to obtain materials, action of any Federal or state regulatory body or agency, change of law or any other causes affecting performance, or any other force majeure, whether or not beyond the control of the Company, any Subsidiary Guarantor or any other Person and whether or not of the kind hereinbefore specified; or
           
(xix)      any other occurrence, circumstance, or event whatsoever, whether similar or dissimilar to the foregoing, whether foreseen or unforeseen, and any other circumstance which might otherwise constitute a legal or equitable defense or discharge of the liabilities of a guarantor or surety or which might otherwise limit recourse against such Subsidiary Guarantor;

provided that the specific enumeration of the above-mentioned acts, failures or omissions shall not be deemed to exclude any other acts, failures or omissions, though not specifically mentioned above, it being the purpose and intent of this Guaranty and the parties hereto that the obligations of each Subsidiary Guarantor shall be absolute and unconditional and shall not be discharged, impaired or varied except by the payment and performance of all obligations of the Company under the Note Purchase Agreement and the Notes in accordance with their respective terms as each may be amended or modified from time to time.  Without limiting the foregoing, it is understood that repeated and successive demands may be made and recoveries may be had hereunder as and when, from time to time, the Company or any Subsidiary Guarantor shall default under or in respect of the terms of the Note Purchase Agreement and that notwithstanding recovery hereunder for or in respect of any given default or defaults by the Company or any Subsidiary Guarantor under the Note Purchase Agreement, this Guaranty shall remain in full force and effect and shall apply to each and every subsequent default.  All waivers herein contained shall be without prejudice to the Holders at their respective options to proceed against the Company, any Subsidiary Guarantor or other Person, whether by separate action or by joinder.
           
(d)     Each Subsidiary Guarantor hereby consents and agrees that any Holder or Holders from time to time, with or without any further notice to or assent from any other Subsidiary Guarantor may, without in any manner affecting the liability of any Subsidiary Guarantor under this Guaranty, and upon such terms and conditions as any such Holder or Holders may deem advisable:
               
(i)      extend in whole or in part (by renewal or otherwise), modify, change, compromise, release or extend the duration of the time for the performance or payment of 
    E-2.3-13

any debt, liability or obligation of the Company or any Subsidiary Guarantor or of any other Person secondarily or otherwise liable for any debt, liability or obligations of the Company on the Note Purchase Agreement or the Notes, or waive any Default or Event of Default with respect thereto, or waive, modify, amend or change any provision of any other agreement or waive this Guaranty; or
             
 (ii)      sell, release, surrender, modify, impair, exchange or substitute any and all property, of any nature and from whomsoever received, held by, or for the benefit of, any such Holder as direct or indirect security for the payment or performance of any debt, liability or obligation of the Company, any Subsidiary Guarantor or of any other Person secondarily or otherwise liable for any debt, liability or obligation of the Company on the Note Purchase Agreement or the Notes; or
             
(iii)      settle, adjust or compromise any claim of the Company or any Subsidiary Guarantor against any other Person secondarily or otherwise liable for any debt, liability or obligation of the Company on the Note Purchase Agreement or the Notes; or
            
 (iv)      purchase Additional Notes from time to time from the Company pursuant to the terms and provisions of the Note Purchase Agreement.

Each Subsidiary Guarantor hereby ratifies and confirms any such extension, renewal, change, sale, release, waiver, surrender, exchange, modification, amendment, impairment, substitution, settlement, adjustment, compromise or purchase Additional Notes and that the same shall be binding upon it, and hereby waives, to the fullest extent permitted by law, any and all defenses, counterclaims or offsets which it might or could have by reason thereof, it being understood that such Subsidiary Guarantor shall at all times be bound by this Guaranty and remain liable hereunder.
          
 (e)     All rights of any Holder may be transferred or assigned at any time in accordance with the Note Purchase Agreement and shall be considered to be transferred or assigned at any time or from time to time upon the transfer of such Note in accordance with the Note Purchase Agreement without the consent of or notice to the Subsidiary Guarantors under this Guaranty.
           
 (f)     No Holder shall be under any obligation:  (i) to marshal any assets in favor of the Subsidiary Guarantors or in payment of any or all of the liabilities of the Company or any Subsidiary Guarantor under or in respect of the Notes or the obligations of the Company and the Subsidiary Guarantors under the Note Purchase Agreement or (ii) to pursue any other remedy that the Subsidiary Guarantors may or may not be able to pursue themselves and that may lighten the Subsidiary Guarantors’ burden, any right to which each Subsidiary Guarantor hereby expressly waives.

    E-2.3-14

Section 4.          FULL RECORSE OBLIGATIONS; PARI PASSU RANKING

Subject to the Maximum Guaranteed Amount specified above, the obligations of each Subsidiary Guarantor set forth herein constitute the full recourse obligations of such Subsidiary Guarantor enforceable against it to the full extent of all its assets and properties.

The respective obligations under this Guaranty of the Subsidiary Guarantors are and at all times shall remain direct and unsecured obligations of the Subsidiary Guarantors ranking pari passu as against the assets of the Subsidiary Guarantors without any preference among themselves and pari passu with all other present and future unsecured Debt (actual or contingent) of the Subsidiary Guarantors which is not expressed to be subordinate or junior in rank to any other unsecured Debt of the Subsidiary Guarantors.

Section 5.         WAIVER.

Each Subsidiary Guarantor unconditionally waives, to the extent permitted by applicable law:
             (a)      notice of any of the matters referred to in Section 3;
              
(b)      notice to such Subsidiary Guarantor of the incurrence of any of the Guaranteed Obligations, notice to such Subsidiary Guarantor of any breach or default by the Company or such Subsidiary Guarantor with respect to any of the Guaranteed Obligations or any other notice that may be required, by statute, rule of law or otherwise, to preserve any rights of any Holder against such Subsidiary Guarantor;
             
 (c)      presentment to the Company or such Subsidiary Guarantor or of payment from the Company or such Subsidiary Guarantor with respect to any Note or other Guaranteed Obligation or protest for nonpayment or dishonor;
             
(d)      any right to the enforcement, assertion, exercise or exhaustion by any Holder of any right, power, privilege or remedy conferred in any Note, the Note Purchase Agreement or otherwise;
             
(e)      any requirement of diligence on the part of any Holder;
              
(f)      any requirement to mitigate the damages resulting from any default under the Notes or the Note Purchase Agreement;
              
(g)      any notice of any sale, transfer or other disposition of any right, title to or interest in any Note or other Guaranteed Obligation by any Holder, assignee or participant thereof, or in the Note Purchase Agreement;
              
(h)      any release of any Subsidiary Guarantor from its obligations hereunder resulting from any loss by it of its rights of subrogation hereunder; and
               
    E-2.3-15

(i)      any other circumstance whatsoever which might otherwise constitute a legal or equitable discharge, release or defense of a guarantor or surety or which might otherwise limit recourse against such Subsidiary Guarantor.

Section 6.         WAIVER OF SUBROGATION

Notwithstanding any payment or payments made by any Subsidiary Guarantor hereunder, or any application by any Holder of any security or of any credits or claims, no Subsidiary Guarantor will assert or exercise any rights of any Holder or of such Subsidiary Guarantor against the Company to recover the amount of any payment made by such Subsidiary Guarantor to any Holder hereunder by way of any claim, remedy or subrogation, reimbursement, exoneration, contribution, indemnity, participation or otherwise arising by contract, by statute, under common law or otherwise, and such Subsidiary Guarantor shall not have any right of recourse to or any claim against assets or property of the Company, in each case unless and until the Guaranteed Obligations have been paid in full.  Until such time (but not thereafter), each Subsidiary Guarantor hereby expressly waives any right to exercise any claim, right or remedy which such Subsidiary Guarantor may now have or hereafter acquire against the Company or any other Subsidiary Guarantor that arises under the Notes, the Note Purchase Agreement or from the performance by any Subsidiary Guarantor of the guaranty hereunder including any claim, remedy or right of subrogation, reimbursement, exoneration, contribution, indemnification or participation in any claim, right or remedy of any Holder against the Company or any Subsidiary Guarantor, or any security that any Holder now has or hereafter acquires, whether or not such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise.  If any amount shall be paid to a Subsidiary Guarantor by the Company or another Subsidiary Guarantor after payment in full of the Guaranteed Obligations, and all or any portion of the Guaranteed Obligations shall thereafter be reinstated in whole or in part and any Holder is required to repay any sums received by any of them in payment of the Guaranteed Obligations, this Guaranty shall be automatically reinstated and such amount shall be held in trust for the benefit of the Holders and shall forthwith be paid to the Holders to be credited and applied to the Guaranteed Obligations, whether matured or unmatured.  The provisions of this paragraph shall survive the termination of this Guaranty, and any satisfaction and discharge of the Company by virtue of any payment, court order or any Federal or state law.

Section 7.          SUBORDINATION

If any Subsidiary Guarantor is or becomes the holder of any indebtedness payable by the Company or another Subsidiary Guarantor, each Subsidiary Guarantor hereby subordinates all such indebtedness owing to it from the Company or such other Subsidiary Guarantor to all indebtedness of the Company to the Holders, and agrees that, during the continuance of any Event of Default, it shall not accept any payment on the same until payment in full of the Guaranteed Obligations and shall in no circumstance whatsoever attempt to set‐off or reduce any obligations hereunder because of such indebtedness.  If any amount shall nevertheless be paid in violation of the foregoing to a Subsidiary Guarantor by the Company or another Subsidiary Guarantor prior to payment in full of the Guaranteed Obligations, such amount shall be held in 
    E-2.3-16

trust for the benefit of the Holders and shall forthwith be paid to the Holders to be credited and applied to the Guaranteed Obligations, whether matured or unmatured.

Section 8.          EFFECT OF BANKRUPTCY PROCEEDINGS, ETC.
          
(a)     If after receipt of any payment of, or proceeds of any security applied (or intended to be applied) to the payment of all or any part of, the Guaranteed Obligations, any Holder is for any reason compelled to surrender or voluntarily surrenders (under circumstances in which it believes it could reasonably be expected to be so compelled if it did not voluntarily surrender), such payment or proceeds to any Person (i) because such payment or application of proceeds is or may be avoided, invalidated, declared fraudulent, set aside, determined to be void or voidable as a preference, fraudulent conveyance, fraudulent transfer, impermissible set‐off or a diversion of trust funds or (ii) for any other similar reason, including, without limitation, (x) any judgment, decree or order of any court or administrative body having jurisdiction over any Holder or any of their respective properties or (y) any settlement or compromise of any such claim effected by any Holder with any such claimant (including the Company), then the Guaranteed Obligations or part thereof intended to be satisfied shall be reinstated and continue, and this Guaranty shall continue in full force as if such payment or proceeds had not been received, notwithstanding any revocation thereof or the cancellation of any Note or any other instrument evidencing any Guaranteed Obligations or otherwise, and the Subsidiary Guarantors, jointly and severally, shall be liable to pay the Holders, and hereby do indemnify the Holders and hold them harmless for, the amount of such payment or proceeds so surrendered and all expenses (including reasonable attorneys’ fees, court costs and expenses attributable thereto) incurred by any Holder in defense of any claim made against any of them that any payment or proceeds received by any Holder in respect of all or part of the Guaranteed Obligations must be surrendered.  The provisions of this paragraph shall survive the termination of this Guaranty, and any satisfaction and discharge of the Company by virtue of any payment, court order or any Federal or state law.
           
(b)     If an event permitting the acceleration of the maturity of any of the Guaranteed Obligations shall at any time have occurred and be continuing, and such acceleration shall at such time be prevented by reason of the pendency against the Company or any other Person of any case or proceeding contemplated by Section 8(a) hereof, then, for the purpose of defining the obligation of any Subsidiary Guarantor under this Guaranty, the maturity of the principal amount of the Guaranteed Obligations shall be deemed to have been accelerated with the same effect as if an acceleration had occurred in accordance with the terms of such Guaranteed Obligations, and such Subsidiary Guarantor shall forthwith pay such principal amount, all accrued and unpaid interest thereon, and all other Guaranteed Obligations, due or that would have become due but for such case or proceeding, without further notice or demand.

Section 9.          TERM OF GUARANTY 

This Guaranty and all guarantees, covenants and agreements of each Subsidiary Guarantor contained herein shall continue in full force and effect and shall not be discharged until such time as all of the principal of and interest on the Notes, the other Guaranteed Obligations and other independent payment obligations of such Subsidiary Guarantor under this 
    E-2.3-17

Guaranty shall be paid in cash and performed in full, and all of the agreements of each of the other Subsidiary Guarantors hereunder shall be duly paid in cash and performed in full.

Section 10.        CONTRIBUTION

In order to provide for just and equitable contribution among the Subsidiary Guarantors, each Subsidiary Guarantor agrees that, to the extent any Subsidiary Guarantor makes any payment hereunder on any date which, when added to all preceding payments made by such Subsidiary Guarantor hereunder, would result in the aggregate payments by such Subsidiary Guarantor hereunder exceeding its Percentage (as defined below) of all payments then or theretofore made by all Subsidiary Guarantors hereunder, such Subsidiary Guarantor shall have a right of contribution against each other Subsidiary Guarantor whose aggregate payments then or theretofore made hereunder are less than its Percentage of all payments by all Subsidiary Guarantors then or theretofore made hereunder, in an amount such that, after giving effect to any such contribution rights, each Subsidiary Guarantor will have paid only its Percentage of all payments by all Subsidiary Guarantors then or theretofore made hereunder.  A Subsidiary Guarantor’s “Percentage” on any date shall mean the percentage obtained by dividing (a) the Adjusted Net Assets of such Subsidiary Guarantor on such date by (b) the sum of the Adjusted Net Assets of all Subsidiary Guarantors on such date.  “Adjusted Net Assets” means, for each Subsidiary Guarantor on any date, the lesser of (i) the amount by which the fair value of the property of such Subsidiary Guarantor exceeds the total amount of liabilities, including contingent liabilities, but excluding liabilities under this Guaranty, of such Subsidiary Guarantor on such date and (ii) the amount by which the present fair salable value of the assets of such Subsidiary Guarantor on such date exceeds the amount that will be required to pay the probable liability of such Subsidiary Guarantor on its debts, excluding debt in respect of this Guaranty, as they become absolute and matured.

Section 11.        LIMITATION OF LIABILITY   

Each Subsidiary Guarantor hereby confirms that it is the intention of such Subsidiary Guarantor that the guarantee by such Subsidiary Guarantor pursuant to this Guaranty not constitute a fraudulent transfer or conveyance for purposes of Title 11 of the United States Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar applicable Federal or state law (all such statutes and laws are collectively referred to as “Fraudulent Conveyance Laws”).  To effectuate the foregoing intention, each Subsidiary Guarantor hereby irrevocably agrees that the obligations of such Subsidiary Guarantor under this Guaranty shall be limited to the amount as will, after giving effect to all rights to receive any collections from or payments by or on behalf of any other Subsidiary Guarantor in respect of the obligations of such other Subsidiary Guarantor pursuant to Section 10 hereof, result in the obligations of such Subsidiary Guarantor under this Guaranty not constituting such a fraudulent transfer or conveyance.  In the event that the liability of any Subsidiary Guarantor hereunder is limited pursuant to this Section 11 to an amount that is less than the total amount of the Guaranteed Obligations, then it is understood and agreed that the portion of the Guaranteed Obligations for which such Subsidiary Guarantor is liable hereunder shall be the last portion of the Guaranteed Obligations to be repaid.
    E-2.3-18

Section 12.        NEGATIVE PLEDGE  

Except as permitted under Section 10.5 of the Note Purchase Agreement, no Subsidiary Guarantor will create any Lien on its assets to any other Person during the pendency of this Guaranty except for Liens permitted by Section 10.5 of the Note Purchase Agreement.

Section 13.        SUPPLEMENTAL AGREEMENT  

Upon execution and delivery by a Subsidiary of a Supplemental Agreement substantially in the form of Exhibit A hereto, such Subsidiary shall become a Subsidiary Guarantor hereunder with the same force and effect as if originally named as a Subsidiary Guarantor herein.  The execution and delivery of any such instrument shall not require the consent of any other Subsidiary Guarantor hereunder.  The rights and obligations of each Subsidiary Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Subsidiary Guarantor as a party to this Guaranty.

Section 14.        DEFINITIONS AND TERMS GENERALLY   
           
(a)     Unless otherwise defined herein, capitalized terms defined in the Note Purchase Agreement are used herein as defined therein.  In addition, the following terms shall have the following meanings.

“Adjusted Net Assets” has the meaning specified in Section 10 hereof.

“Fraudulent Conveyance Laws” has the meaning specified in Section 11 hereof.

“Guaranteed Obligations” has the meaning specified in Section 1 hereof.

“Guaranty” has the meaning specified in the introduction hereto.

“Holders” has the meaning specified in the introduction hereto.

“Material Adverse Effect” means a material adverse effect (a) on the business, financial condition, operations or Properties of a Subsidiary Guarantor taken as a whole or (b) on its ability to perform its obligations hereunder.

“Maximum Guaranteed Amount” shall mean, for each Subsidiary Guarantor, the maximum amount which any Subsidiary Guarantor could pay under this Guaranty without having such payment set aside as a fraudulent transfer or conveyance or similar action under Fraudulent Conveyance Law.

“Note Purchase Agreement” has the meanings specified in the Recitals hereto.

“Notes” has the meaning specified in the Recitals hereto.

    E-2.3-19

“Percentage” has the meaning specified in Section 10 hereof.

“Required Holders” is has the meaning specified in the Note Purchase Agreement. 

“Subsidiary Guarantor” has the meaning specified in the introduction hereto.
          
(b)     Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  All references herein to Articles, Sections, Exhibits and Schedules shall be deemed references to Articles and Sections of, and Exhibits and Schedules to, this Guaranty unless the context shall otherwise require.

Section 15.        NOTICES  

All notices under the terms and provisions hereof shall be in writing (with charges prepaid), and shall be delivered or sent by hand, by telecopy, by express courier service or by registered or certified mail, return receipt requested, postage prepaid, addressed,
              
(a)      if to any Holder, at the address set forth in the Note Purchase Agreement, or at such other address as any such Holder shall from time to time designate to the Company,
              
(b)      if to a Subsidiary Guarantor, at the address of the Company as set forth in the Note Purchase Agreement or at such other address as such Subsidiary Guarantor shall from time to time designate in writing to each Holder.

A notice or communication shall be deemed to have been duly given and effective: 
              
(a)      when delivered (whether or not accepted), if personally delivered; 
              
(b)      five business days after being deposited in the mail, postage prepaid, if delivered by first‐class mail (whether or not accepted); 
              
(c)      when sent, if sent via facsimile; 
             
(d)      when delivered if sent by registered or certified mail (whether or not accepted); and 
              
(e)      on the next Business Day if timely delivered by an overnight air courier, with charges prepaid (whether or not accepted).

    E-2.3-20

Section 16.        AMENDMENTS, ETC.  

No amendment, alteration, modification or waiver of any term or provision of this Guaranty, nor consent to any departure by any Subsidiary Guarantor therefrom, shall in any event be effective unless the same shall be in writing and consented to by the Required Holders provided, however, that any amendment, alteration, modification or waiver of the terms and conditions contained in Section 1 hereof shall require consent from all Holders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

Section 17.        CONSENT TO JURISDICTION; SERVICE OF PROCESS    
           
(a)     Each Subsidiary Guarantor irrevocably submits to the nonexclusive in personam jurisdiction of any New York State or federal court sitting in New York City, over any suit, action or proceeding arising out of or relating to this Guaranty or the Notes.  To the fullest extent it may effectively do so under applicable law, each Subsidiary Guarantor irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the in personam jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.
           
(b)     Each Subsidiary Guarantor agrees, to the fullest extent it may effectively do so under applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in paragraph (a) of this Section 17 brought in any such court shall be conclusive and binding upon such party, subject to rights of appeal and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which such party is or may be subject) by a suit upon such judgment. 
           
(c)     Each Subsidiary Guarantor consents to process being served in any suit, action or proceeding of the nature referred to in paragraph (a) of this Section 17 by mailing a copy thereof by registered or certified mail, postage prepaid, return receipt requested, to the address of each Subsidiary Guarantor specified in Section 15 or at such other address of which the Holders shall then have been notified pursuant to said Section or to any agent for service of process appointed pursuant to the provisions of Section 27.  Each Subsidiary Guarantor agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the full extent permitted by law, be taken and held to be valid personal service upon and personal delivery to such party.  Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.
           
(d)     Nothing in this Section 17 shall affect the right of any holder of Notes to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against any Subsidiary Guarantor in the courts of any appropriate 
    E-2.3-21

jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

Section 18.        WAIVER OF JURY TRIAL  

Each Subsidiary Guarantor and by its acceptance hereof each holder, to the fullest extent permitted by applicable law, irrevocably and unconditionally waives the right to trial by jury in any legal or equitable action, suit or proceeding arising out of or relating to this Guaranty or the Note Purchase Agreement or any transaction contemplated hereby or thereby or the subject matter of any of the foregoing.

Section 19.        SURVIVAL  

All warranties, representations and covenants made by each Subsidiary Guarantor herein or in any written certificate or other instrument required to be delivered by it or on its behalf hereunder or under the Note Purchase Agreement shall be considered to have been relied upon by the Holders and shall survive the execution and delivery of this Guaranty, regardless of any investigation made by any Holder or on such Holder’s behalf.  All statements in any such certificate or other instrument shall constitute warranties and representations by such Subsidiary Guarantor hereunder.

Section 20.        SEVERABILITY
  
Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the extent permitted by applicable law, each Subsidiary Guarantor hereby waives any provision of law that renders any provisions hereof prohibited or unenforceable in any respect.

Section 21.        SUCCESSORS AND ASSIGNS
  
The terms of this Guaranty shall be binding upon each Subsidiary Guarantor and its successors and assigns and shall inure to the benefit of the Holders and their respective successors and assigns.

Section 22.        TABLE OF CONTENTS; HEADINGS  

The section and paragraph headings in this Guaranty and the table of contents are for convenience of reference only and shall not modify, define, expand or limit any of the terms or provisions hereof, and all references herein to numbered sections, unless otherwise indicated, are to sections in this Guaranty.

    E-2.3-22

Section 23.        COUNTERPARTS  

This Guaranty may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

Section 24.        GOVERNING LAW  

This Guaranty shall in all respects be governed by, and construed and interpreted in accordance with, the laws of the State of New York, without regard to the conflicts of laws principles of such state.

Section 25.        RELEASE  

Notwithstanding any other provision hereof to the contrary, including without limitation Section 3(c)(v), 3(c)(xiv) and 3(c)(xv), a Subsidiary Guarantor may be released from its guaranty hereunder pursuant to Section 2.2(b) of the Note Purchase Agreement.

Section 26.        COVENANT COMPLIANCE  

Each Subsidiary Guarantor agrees to comply with each of the covenants contained herein and in the Note Purchase Agreement that imposes or purports to impose, by reference to such Subsidiary Guarantor, express or otherwise, through agreements with the Company, restrictions or obligations on such Subsidiary Guarantor.

In Witness Whereof, each party hereto has caused this Guaranty to be duly executed as of the date first above written.

GUARANTORS:

AAA GALVANIZING – CHELSEA, LLC
AAA GALVANIZING – DIXON, INC.
AAA GALVANIZING – HAMILTON, LLC
AAA GALVANIZING – JOLIET, INC.
AAA GALVANIZING – PEORIA, INC.
AAA GALVANIZING – WINSTED, INC.
ARBOR-CROWLEY, LLC
ARIZONA GALVANIZING, INC.
ARKGALV, LLC
ATKINSON INDUSTRIES, INC.
AUTOMATIC PROCESSING INCORPORATED
AZTEC INDUSTRIES, INC.
AZTEC MANUFACTURING – WASKOM LLC
AZTEC MANUFACTURING LLC
AZZ – TEXAS WELDED WIRE, LLC
AZZ ACQUISITION SUB, LLC
    E-2.3-23

AZZ BUS SYSTEM SERVICES LLC
AZZ ENCLOSURE SYSTEMS – CHATTANOOGA LLC
AZZ ENCLOSURE SYSTEMS LLC
AZZ GALVANIZING – BIG SPRING, LLC
AZZ GALVANIZING - BRISTOL LLC
AZZ GALVANIZING – CHATTANOOGA LLC
AZZ GALVANIZING – HURST, LLC
AZZ GALVANIZING – KENNEDALE, LLC
AZZ GALVANIZING – LOUISIANA LLC
AZZ GALVANIZING – MORGAN CITY, LLC
AZZ GALVANIZING – NASHVILLE LLC
AZZ GALVANIZING – NEBRASKA, LLC
AZZ GALVANIZING – RENO, LLC
AZZ GALVANIZING – ROCKFORD LLC
AZZ GALVANIZING – SAN ANTONIO, LLC
AZZ GROUP LLC
AZZ HOLDINGS LLC
AZZ INTERNATIONAL HOLDINGS LLC
AZZ INTERNATIONAL I, LLC
AZZ INTERNATIONAL II, LLC
AZZ NETHERLANDS, LLC
AZZ SMS LLC
AZZ SPECIALTY REPAIR AND OVERHAUL LLC
AZZ SURFACE TECHNOLOGIES LLC
AZZ SURFACE TECHNOLOGIES – CROWLEY LLC
AZZ SURFACE TECHNOLOGIES – GAINESVILLE LLC
AZZ SURFACE TECHNOLOGIES – GARLAND NORTH LLC
AZZ SURFACE TECHNOLOGIES – GARLAND SOUTH LLC
AZZ SURFACE TECHNOLOGIES – ROWLETT LLC
AZZ SURFACE TECHNOLOGIES – TAMPA LLC
AZZ SURFACE TECHNOLOGIES – TERRELL LLC
AZZ WSI LLC
CARTER AND CRAWLEY LLC
CENTRAL ELECTRIC COMPANY
CENTRAL ELECTRIC MANUFACTURING COMPANY
CGIT SYSTEMS, INC.
ELECTRICAL POWER SYSTEMS, LLC
GULF COAST GALVANIZING, LLC
HOBSON GALVANIZING, LLC
INTERNATIONAL GALVANIZERS LLC
NAGALV-OHIO, INC.
NAGALV-WV, INC.
NORTH AMERICAN GALVANIZING & COATINGS, INC.
NORTH AMERICAN GALVANIZING COMPANY, LLC
POWERGRID SOLUTIONS LLC
    E-2.3-24

REINFORCING SERVICES, LLC
RIG-A-LITE LLC
ROGERS GALVANIZING COMPANY – KANSAS CITY
THE CALVERT COMPANY, INC.
WESTSIDE GALVANIZING SERVICES, LLC
WITT GALVANIZING – CINCINNATI, LLC
WITT GALVANIZING – MUNCIE, LLC
WITT GALVANIZING – PLYMOUTH, LLC
ZALK STEEL & SUPPLY CO.

By:      ___________________________________ Thomas E. Ferguson, President of each of the foregoing entities

    E-2.3-25

Exhibit A
Form of Supplemental Agreement

Supplemental Agreement dated as of ____________, ____ from ______________, a _______ [corporation] (the “New Subsidiary”), for the benefit of the Holders (as defined in the Guaranty referred to below).  Capitalized terms used herein without definition shall have the respective meanings ascribed thereto in the Subsidiary Guaranty Agreement, dated as of October 9, 2020 (the “Guaranty”), from each of: the Subsidiaries (as defined below) signatory thereto and such other Subsidiaries as shall become parties thereto in accordance therewith, for the benefit of the Holders (as such term is defined in such Guaranty).

Whereas, AZZ Inc., a Texas corporation (the “Company”), has issued and sold (i) $70,000,000 aggregate principal amount of its 2.77% Senior Notes, Series 2020A, due January 19, 2028 (the “Series 2020A Notes”) and (ii) $80,000,000 aggregate principal amount of its 3.17% Senior Notes, Series 2020B, due December 17, 2032 (the “Series 2020B Notes”, together with the Series 2020A Notes, the “Series 2020 Notes”), pursuant to the Note Purchase Agreement, dated as of October 9, 2020 (as amended, modified or supplemented from time to time, the “Note Purchase Agreement”) among the Company and the purchasers named therein.[1]  
Whereas, the Company is authorized to issue Additional Notes (as such term is defined in the Note Purchase Agreement) of one or more separate series from time to time in an aggregate principal amount not to exceed $750,000,000 outstanding pursuant to Section 2.2 of the Note Purchase Agreement.

Whereas, the Additional Notes together with the Series 2020 Notes are collectively referred to as the “Notes”.

Whereas, the New Subsidiary is a Subsidiary of the Company.

Whereas, certain of the existing Subsidiaries of the Company have entered into the Guaranty.

Whereas, the Note Purchase Agreement requires that certain Subsidiaries become party to the Guaranty (as a Subsidiary Guarantor).

Whereas, the New Subsidiary acknowledges that it will derive substantial benefits from the issuance of the Notes.

Whereas, the Guaranty specifies that additional Subsidiaries may become Subsidiary Guarantors under such Guaranty by execution and delivery of an instrument in the form of this Agreement.  The undersigned Subsidiary is executing this Agreement in accordance with the requirements of the Note Purchase Agreement in order to become a Subsidiary Guarantor under the Guaranty as consideration for the Notes previously purchased.

    E-2.3-26

Now, Therefore, the New Subsidiary Guarantor agrees as follows:
             
Section 1.     Guaranty.  In accordance with Section 13 of the Guaranty, the New Subsidiary by its signature hereto shall become a Subsidiary Guarantor under such Guaranty with the same force and effect as if originally named therein as a Subsidiary Guarantor and the New Subsidiary hereby (a) agrees to all the terms and provisions of such Guaranty applicable to it as a Subsidiary Guarantor thereunder, (b) represents and warrants to the Holders that the representations and warranties made by it as a Subsidiary Guarantor are true and correct on and as of the date hereof with the same effect as though made on and as of the date hereof, (c) acknowledges receipt of a copy of and agrees to be obligated and bound by the terms of such Guaranty, and (d) agrees that each reference to a “Subsidiary Guarantor” in such Guaranty shall be deemed to include the New Subsidiary.

             Section 2.     Enforceability.  The New Subsidiary hereby represents and warrants to the Holders that this Agreement has been duly authorized, executed and delivered by the New Subsidiary and constitutes a legal, valid and binding obligation of the New Subsidiary enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the applicability of creditors’ rights generally and by equitable principles of general applicability (regardless of whether such enforceability is considered in a proceeding in equity or at law).

             Section 3.     Effect on Guaranty.  Except as expressly supplemented hereby, the Guaranty shall continue in full force and effect.

             Section 4.     Governing Law.  This Agreement shall in all respects be governed by, and construed and interpreted in accordance with, the laws of the State of New York, without regard to the conflicts of laws principles of such state.

             Section 5.     Savings Clause.  To the fullest extent permitted under applicable law, in the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect with respect to the New Subsidiary, no party hereto shall be required to comply with such provision for so long as such provision is held to be invalid, illegal or unenforceable, and the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired.  The parties shall endeavor in good-faith negotiations to replace any invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

             Section 6.     Notices.  All communications to the New Subsidiary shall be given to it at the address or telecopy number set forth under its signature hereto.

    E-2.3-27

In Witness Whereof, the New Subsidiary has duly executed this Agreement as of the day and year first above written.

[New Subsidiary]

By: ___________________________________ 
__ Name:
__ Title:
__ Address:

__ Telecopy:

[1] To insert any Additional Notes issued. 
    E-2.3-28

Form of Opinion of Special Counsel
to the Company

(Intentionally Redacted) 

Exhibit 4.4(a)
(to Note Purchase Agreement)

Form of Opinion of Special Counsel
to the Purchasers

(Intentionally Redacted)
Exhibit 4.4(b)
(to Note Purchase Agreement)

			
	

AZZ Inc.

[Number] Supplement to Note Purchase Agreement

Dated as of ______________________

Re:    $____________ _____% Series _______ Senior Notes
Due _____________________

			
	

Exhibit S
(to Note Purchase Agreement)

AZZ Inc.
One Museum Place
3100 West 7th Street, Suite 500
Fort Worth, Texas 76107

Dated as of
____________________, 20__

To the Purchaser(s) named in
Schedule A hereto

Ladies and Gentlemen:
This [Number] Supplement to Note Purchase Agreement (the “Supplement”) is between AZZ Inc., a Texas corporation (the “Company”), and the institutional investors named on Schedule A attached hereto (the “Purchasers”).
Reference is hereby made to that certain Note Purchase Agreement dated as of October 9, 2020 (the “Note Purchase Agreement”) between the Company and the purchasers listed on Schedule A thereto.  All capitalized terms not otherwise defined herein shall have the same meaning as specified in the Note Purchase Agreement.  Reference is further made to Section 2.2 of the Note Purchase Agreement which requires that, prior to the delivery of any Additional Notes, the Company and each Additional Purchaser shall execute and deliver a Supplement.
The Company hereby agrees with the Purchaser(s) as follows:
1.    The Company has authorized the issue and sale of $__________ aggregate principal amount of its _____% Series ______ Senior Notes due _________, ____ (the “Series ______ Notes”).  The Series ____ Notes, together with the Series 2020A Notes, the Series 2020B Notes [and the Series ____ Notes] initially issued pursuant to the Note Purchase Agreement [and the _________ Supplement] and each series of Additional Notes which may from time to time hereafter be issued pursuant to the provisions of Section 2.2 of the Note Purchase Agreement, are collectively referred to as the “Notes” (such term shall also include any such notes issued in substitution therefor pursuant to Section 13 of the Note Purchase Agreement).  The Series _____ Notes shall be substantially in the form set out in Exhibit 1 hereto with such changes therefrom, if any, as may be approved by the Purchaser(s) and the Company.
2.    Subject to the terms and conditions hereof and as set forth in the Note Purchase Agreement and on the basis of the representations and warranties hereinafter set forth, the Company agrees to issue and sell to each Purchaser, and each Purchaser agrees to purchase from the Company, Series _____ Notes in the principal amount set forth opposite such Purchaser’s 

name on Schedule A hereto at a price of 100% of the principal amount thereof on the closing date hereinafter mentioned.
3.    The sale and purchase of the Series ______ Notes to be purchased by each Purchaser shall occur at the offices of [______________________] at 10:00 a.m. Chicago time, at a closing (the “Closing”) on ______, ____ or on such other Business Day thereafter on or prior to _______, ____ as may be agreed upon by the Company and the Purchasers.  At the Closing, the Company will deliver to each Purchaser the Series ______ Notes to be purchased by such Purchaser in the form of a single Series ______ Note (or such greater number of Series ______ Notes in denominations of at least $100,000 as such Purchaser may request) dated the date of the Closing and registered in such Purchaser’s name (or in the name of such Purchaser’s nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to account number [__________________________] at ____________ Bank, [Insert Bank address, ABA number for wire transfers, and any other relevant wire transfer information].  If, at the Closing, the Company shall fail to tender such Series ______ Notes to any Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to any Purchaser’s satisfaction, such Purchaser shall, at such Purchaser’s election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure or such nonfulfillment.
4.    The obligation of each Purchaser to purchase and pay for the Series ______ Notes to be sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to the Closing, of the conditions set forth in Section 4 of the Note Purchase Agreement with respect to the Series ______ Notes to be purchased at the Closing, and to the following additional conditions:
    (a)    Except as supplemented, amended or superseded by the representations and warranties set forth in Exhibit A hereto, each of the representations and warranties of the Company set forth in Section 5 of the Note Purchase Agreement shall be correct as of the date of Closing and the Company shall have delivered to each Purchaser an Officer’s Certificate, dated the date of the Closing certifying that such condition has been fulfilled.
    (b)    Contemporaneously with the Closing, the Company shall sell to each Purchaser, and each Purchaser shall purchase, the Series ______ Notes to be purchased by such Purchaser at the Closing as specified in Schedule A.
5.    [Here insert special provisions for Series ______ Notes including prepayment provisions applicable to Series ______ Notes (including Make-Whole Amount) and closing conditions applicable to Series ______ Notes].
6.    Each Purchaser represents and warrants that the representations and warranties set forth in Section 6 of the Note Purchase Agreement are true and correct on the date hereof with respect to the purchase of the Series ______ Notes by such Purchaser.
    -2-

7.    The Company and each Purchaser agree to be bound by and comply with the terms and provisions of the Note Purchase Agreement as fully and completely as if such Purchaser were an original signatory to the Note Purchase Agreement.
The execution hereof shall constitute a contract between the Company and the Purchaser(s) for the uses and purposes hereinabove set forth, and this agreement may be executed in any number of counterparts, each executed counterpart constituting an original but all together only one agreement.

    AZZ Inc.

    By    
        Name:    
        Title:    
    
Accepted as of __________, _____

    [Variation]

    By    
        Name:    
        Title:    

    -3-

Information Relating to Purchasers

									
	Name and Address of Purchaser		Principal 
Amount of Series ______ Notes to Be Purchased

	[Name of Purchaser]
		$
	(1)    All payments by wire transfer of immediately available funds to:

with sufficient information to identify the source and application of such funds.		
	(2)    All notices of payments and written confirmations of such wire transfers:		
	(3)    All other communications:		

Schedule A
(to Supplement)

Supplemental Representations
The Company represents and warrants to each Purchaser that except as hereinafter set forth in this Exhibit A, each of the representations and warranties set forth in Section 5 of the Note Purchase Agreement is true and correct in all material respects as of the date hereof with respect to the Series ______ Notes with the same force and effect as if each reference to “Series 2020 Notes” set forth therein was modified to refer the “Series ______ Notes” and each reference to “this Agreement” therein was modified to refer to the Note Purchase Agreement as supplemented by the _______ Supplement.  The Section references hereinafter set forth correspond to the similar sections of the Note Purchase Agreement which are supplemented hereby:
    Section 5.3.    Disclosure.  The Company, through its agent, US Bancorp Investments, Inc. has delivered to each Purchaser a copy of a Private Placement Memorandum, dated ____________ (the “Memorandum”), relating to the transactions contemplated by the ______ Supplement.  The Memorandum fairly describes, in all material respects, the general nature of the business and principal properties of the Company and its Subsidiaries.  The Note Purchase Agreement, the Memorandum, the documents, certificates or other writings delivered to each Purchaser by or on behalf of the Company in connection with the transactions contemplated by the Note Purchase Agreement and the _______ Supplement and the financial statements listed in Schedule 5.5 to the _____ Supplement, taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made.  Since ____________, there has been no change in the financial condition, operations, business, properties or prospects of the Company or any Subsidiary except changes that individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect.  There is no fact known to the Company that would reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Memorandum or in the other documents, certificates and other writings delivered to each Purchaser by or on behalf of the Company specifically for use in connection with the transactions contemplated hereby.
    Section 5.4.    Organization and Ownership of Shares of Subsidiaries.  (a) Schedule 5.4 to the ______ Supplement contains (except as noted therein) complete and correct lists of (i) the Company’s Subsidiaries, and showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary, (ii) the Company’s Affiliates, other than Subsidiaries, and (iii) the Company’s directors and senior officers.
    Section 5.13.    Private Offering by the Company.  Neither the Company nor anyone acting on its behalf has offered the Series __ Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Purchasers and not more than [______] other Institutional Investors, each of which has been offered the Series ______ Notes at a private sale for investment.  Neither the Company nor anyone acting on its behalf has taken, or will take, any 
Exhibit A
(to Supplement)

action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act.
    Section 5.14.    Use of Proceeds; Margin Regulations.  The Company will apply the proceeds of the sale of the Series ______ Notes to ______________________________ and for general corporate purposes.  No part of the proceeds from the sale of the Series ______ Notes pursuant to the _____ Supplement will be used, directly or indirectly, (a) for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), unless (y) the Company shall acquire its own capital stock and immediately retire and cancel such capital stock (and shall not retain such capital stock as Treasury Stock) or (z) the Company shall acquire at least 90% of all of the issued and outstanding margin stock of a Person to effectuate a short form merger with such Person and shall immediately de-list and de-register all such margin stock immediately following the acquisition thereof, or (b) for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224), or (c) to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).  Margin stock does not constitute more than 5% of the value of the consolidated assets of the Company and its Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 5% of the value of such assets.  As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.
    Section 5.15.    Existing Indebtedness; Future Liens.  (a) Schedule 5.15 to the _________ Supplement sets forth a complete and correct list of all outstanding Indebtedness of the Company and its Subsidiaries as of _____________, since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company or its Subsidiaries.  Neither the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary and no event or condition exists with respect to any Indebtedness of the Company or any Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.
[Add any additional Sections as appropriate at the time the Series ______ Notes are issued]

    -2-

[Form of Series ______ Note]
AZZ Inc.
___% Series ______ Senior Note due ______________
No. [_________]    [Date]
$[____________]    PPN [____________]
For Value Received, the undersigned, AZZ Inc. (herein called the “Company”), a corporation organized and existing under the laws of the State of Texas, hereby promises to pay to [________________], or registered assigns, the principal sum of [________________] Dollars (or so much thereof as shall not have been prepaid) on _______________, with interest (computed on the basis of a 360-day year of twelve 30day months) (a) on the unpaid balance hereof at the rate of ____% per annum from the date hereof, payable semiannually, on the _____ day of ______ and ______ in each year, commencing on the first of such dates after the date hereof, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, at a rate per annum from time to time equal to [2% above the stated rate], on any overdue payment of interest and, during the continuance of an Event of Default, on the unpaid balance hereof and on any overdue payment of any Make-Whole Amount, payable [semiannually] as aforesaid (or, at the option of the registered holder hereof, on demand).
Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at ______________________, in ______________________, or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.
This Note is one of a series of Senior Notes (the “Notes”) issued pursuant to a Supplement to the Note Purchase Agreement dated as of October 9, 2020 (as from time to time amended, supplemented or modified, the “Note Purchase Agreement”), between the Company, the Purchasers named therein and Additional Purchasers of Notes from time to time issued pursuant to any Supplement to the Note Purchase Agreement.  This Note and the holder hereof are entitled equally and ratably with the holders of all other Notes of all series from time to time outstanding under the Note Purchase Agreement to all the benefits provided for thereby or referred to therein.  Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made the representations set forth in Section 6.2 of the Note Purchase Agreement, provided that such holder may (in reliance upon information provided by the Company, which shall not be unreasonably withheld) make a representation to the effect that the purchase by such holder of any Note will not constitute a non-exempt prohibited transaction under Section 406(a) of ERISA.  Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.
Exhibit 1
(to Supplement)

This Note is registered with the Company and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note of the same series for a like principal amount will be issued to, and registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.
[The Company will make required prepayments of principal on the dates and in the amounts specified in the Note Purchase Agreement.]  [This Note is not subject to regularly scheduled prepayments of principal.] This Note is [also] subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.
Pursuant to the Subsidiary Guaranty Agreement dated as of October 9, 2020 (as amended or modified from time to time, the “Subsidiary Guaranty”), certain Subsidiaries of the Company have absolutely and unconditionally guaranteed payment in full of the principal of, Make-Whole Amount, if any, and interest on this Note and the performance by the Company of its obligations contained in the Note Purchase Agreement all as more fully set forth in said Subsidiary Guaranty.
If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.
This Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the [State of New York] excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State.

AZZ Inc.

By        
      Name:    
      Title:    
 
E-1-2

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