Document:

EXHIBIT 10.1

 

Execution Version

  

General Finance Corporation

$5,390,000

8.125% Senior Notes due 2021

Underwriting Agreement

April 18, 2017

D.A. Davidson & Co.

8 Third Street North

The Davidson Building

Great Falls, Montana  59401

Ladies and Gentlemen:

General Finance Corporation, a Delaware corporation (the "Company"), proposes, subject to the terms and conditions stated herein, to issue and sell $5,390,000 aggregate principal amount of its 8.125% Senior Notes due 2021 (the "Notes"), to you (the "Underwriter").  The Notes will be issued pursuant to the indenture, dated as of June 18, 2014 (the "Base Indenture") between the Company and Wells Fargo Bank, N.A., as trustee (the "Trustee"), as supplemented by a second supplemental indenture (the "Supplemental Indenture" and, together with the Base Indenture, the "Indenture"), to be dated as of April 24, 2017.

The Company has prepared and filed with the Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder (collectively, the "Securities Act"), a registration statement on Form S-3 (File No. 333-199514), including a base prospectus, relating to various debt and equity securities of the Company, including the Notes.  Such registration statement, as amended at the time it becomes effective, including the information, if any, deemed pursuant to Rule 430A, 430B or 430C under the Securities Act to be part of the registration statement at the time of its effectiveness ("Rule 430 Information"), is referred to herein as the "Registration Statement"; and as used herein, the term "Preliminary Prospectus" means the base prospectus together with any preliminary prospectus supplement relating to the offering of the Notes used prior to the filing of the Prospectus and deemed part of the Registration Statement that omits the Rule 430 Information; and the term "Prospectus" means the prospectus in the form first used (or made available upon request of purchasers pursuant to Rule 173 under the Securities Act) in connection with confirmation of sales of the Notes.  If the Company has filed an abbreviated registration statement pursuant to Rule 462(b) under the Securities Act (the "Rule 462 Registration Statement"), then any reference herein to the term "Registration Statement" shall be deemed to include such Rule 462 Registration Statement.  Any reference in this underwriting agreement (this "Agreement") to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act, as of the effective date of the Registration Statement or the date of such Preliminary Prospectus or the Prospectus, as the case may be (such date, the "Effective Date") and any reference to "amend", "amendment" or "supplement" with respect to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include any documents filed after such date under the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder (collectively, the "Exchange Act") that are deemed to be incorporated by reference therein.  Capitalized terms used but not defined herein shall have the meanings given to such terms in the Registration Statement and the Prospectus.

At or prior to the time when sales of the Notes were first made (the "Initial Time of Sale"), the Company had prepared the following information (collectively with the information referred to in the next succeeding sentence, the "Disclosure Package"): a Preliminary Prospectus dated April 18, 2017, and each "free-writing prospectus" (as defined pursuant to Rule 405 under the Securities Act) listed on Schedule I hereto as constituting part of the Disclosure Package.  As used in this paragraph and elsewhere in this Agreement, "Initial Time of Sale" means 6:30 p.m. (New York time) on the date of this Agreement or such other time as agreed to by the Company and the Underwriter.

The term "Free Writing Prospectus" as used herein shall have the meaning set forth in Rule 405 of the Securities Act.

The term "subsidiary" means each entity, at least a majority of the capital stock or other equity or voting securities of which are controlled or owned, directly or indirectly, by the Company.  The term "domestic subsidiary" means any subsidiary of the Company duly organized under the laws of any U.S. state.

For the purposes of this Agreement, all references to the Registration Statement, any Preliminary Prospectus, any Free Writing Prospectus or the Prospectus or any amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval system ("EDGAR").

As used herein, the term "business day" shall mean any day when the Commission's office in Washington, D.C. is open for business.

1. Representations and Warranties of the Company.  The Company represents and warrants to, and agrees with the Underwriter as of the date hereof and as of each "Delivery Date" (as defined below in Section 4) that:

(a) In connection with the transactions contemplated by this Agreement, the Registration Statement with respect to the Notes, and such amendments or post-effective amendments to such registration statement as may have been required to the date of this Agreement, have been prepared by the Company in conformity with the requirements of the Securities Act and have been filed with the Commission in the form heretofore delivered to the Underwriter.  Copies of the Registration Statement, including any amendments thereto, each Preliminary Prospectus contained therein, and the exhibits, financial statements and schedules thereto have heretofore been made available by the Company to the Underwriter.  A final Prospectus will be filed promptly by the Company with the Commission in accordance with Rule 424(b) of the Securities Act.  The Company (including its respective agents and representatives, other than the Underwriter in its 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" (as defined in Rule 405 under the Securities Act) that constitutes an offer to sell or solicitation of an offer to buy the Notes (each such communication (other than a communications referred to in clauses (i), (ii) and (iii) below) an "Issuer Free Writing Prospectus") other than (i) any document not constituting a prospectus pursuant to Section 2(a)(10)(a) of the Securities Act or Rule 134 under the Securities Act, (ii) the Preliminary Prospectus, (iii) the Prospectus, (iv) Disclosure Package and (v) any electronic road show or other written communications, in each case, approved in writing in advance by the Underwriter.  Each such Issuer Free Writing Prospectus complies in all material respects with the Securities Act, has been or will be (within the time period specified in Rule 433) filed in accordance with the Securities Act (to the extent required thereby); provided that the Company makes no representation or warranty with respect to any statements or omissions made in each such Issuer Free Writing Prospectus in reliance upon and in conformity with information relating to the Underwriter furnished to the Company in writing by the Underwriter expressly for use in any Issuer Free Writing Prospectus.

2

(b) The Registration Statement has been declared effective by the Commission.  Neither the Commission nor any state or other jurisdiction or other regulatory body has issued, and none is, to the knowledge of the Company, threatening in writing to issue, any stop order under the Securities Act or other order suspending the effectiveness of the Registration Statement (as amended or supplemented) or preventing or suspending the use of any Preliminary Prospectus or the Prospectus or suspending the qualification or registration of the Notes for offering or sale in any jurisdiction nor instituted or, to the knowledge of the Company, threatened in writing to institute proceedings for any such purpose or pursuant to Section 8A of the Securities Act against the Company or related to the offering.  The Company meets the requirements for the use of Form S-3, set forth in the General Instructions thereto; the offering and sale of the Notes as contemplated hereby meets the requirements for use of Form S-3, set forth in the General Instructions thereto; at the time the Registration Statement was initially filed and at the time it became effective, the Company was a "smaller reporting company," as such term is defined in Rule 12b-2 under the Exchange Act, and has received no objection from the Commission to its designation as such; and the Company has received no objection from the Commission as to its eligibility to use Form S-3.

(c) As of the applicable effective date of the Registration Statement and any amendment thereto, the Registration Statement complied and will comply in all material respects with the Securities Act and the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission thereunder (collectively, the "Trust Indenture Act").  The Disclosure Package as of the Initial Time of Sale, each Preliminary Prospectus, when filed with the Commission, and the Prospectus and any amendments or supplements thereto when they are filed with the Commission or become effective, as the case may be, in all material respects conformed or will conform, as the case may be, to the requirements of the Securities Act.  Neither the Registration Statement nor any amendment thereto, as of the applicable Effective Date, contains or will contain, as the case may be, any untrue statement of a material fact or omits or will omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading.  No Preliminary Prospectus, when filed with the Commission, contained or will contain, as the case may be, any untrue statement of a material fact or omits or will omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.  Neither the Prospectus nor any amendment or supplement thereto contains or will contain, as the case may be, any untrue statement of a material fact or omits or will omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.  Neither the Disclosure Package nor any amendment or supplement thereto, at the Initial Time of Sale, contained or will contain, as the case may be, any untrue statement of a material fact or omits or will omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.  Notwithstanding the foregoing, the Company makes no representation or warranty (i) that part of the Registration Statement that constitutes the Statement of Eligibility (Form T-1) of the Trustee under the Trust Indenture Act or (ii) as to information contained in or omitted from the Registration Statement, any Preliminary Prospectus, the Disclosure Package or the Prospectus, or any such amendment or supplement, in reliance upon, and in conformity with, written information furnished by the Underwriter to the Company relating to the Underwriter for use in the preparation.

3

(d) The documents incorporated by reference in the Registration Statement, the Prospectus and the Disclosure Package, when they became effective or were filed with the Commission, as the case may be, conformed in all material respects to the requirements of the Exchange Act and none of such documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and any further documents so filed and incorporated by reference in the Registration Statement, the Prospectus or the Disclosure Package, when such documents become effective or are filed with the Commission, as the case may be, will conform in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

(e) The Preliminary Prospectus, any Free Writing Prospectus and the Prospectus when filed, if filed by electronic transmission, pursuant to EDGAR (except as may be permitted by Regulation S-T under the Securities Act), were identical to the copies thereof delivered to the Underwriter for use in connection with the offer and sale of the Notes.

(f) The Company is not an "ineligible issuer" as defined in Rule 405 under the Securities Act in connection with the offering; each Free Writing Prospectus that the Company is required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder; and each Free Writing Prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act or that was prepared by or on behalf of or used or referred to by the Company complies or will comply in all material respects with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder.  Except for the Issuer Free Writing Prospectuses, if any, identified in Schedule I hereto, neither the Company nor any of its agents or representatives (other than the Underwriter in its capacity as such) has prepared, used or referred to, or will, without the prior consent of the Underwriter, prepare, use or refer to, any Free Writing Prospectus.

4

(g) Since the respective dates as of which information is given in the Registration Statement, the Disclosure Package and the Prospectus, and except as otherwise set forth or expressly contemplated therein, (i) there has not been any change in the capital stock or long-term debt of the Company or its subsidiaries (except for newly-issued shares issued pursuant to the Company's or any subsidiary's employee benefit plans, stock-based incentive plans, incentive compensation plans, or other similar plans in the ordinary course of business and borrowings and repayments under the Company's or subsidiary's credit facilities in the ordinary course of business) or any material adverse change, or any development involving a prospective material adverse change, in or affecting the management, condition (financial or otherwise), business, properties, stockholders' equity or results of operations of the Company or its subsidiaries taken as a whole; (ii) there have been no transactions entered into by the Company or its subsidiaries, other than transactions entered into in the ordinary course of business, that are material with respect to the Company or its subsidiaries taken as a whole; (iii) there has been no dividend or distribution of any kind declared, paid or made by the Company or its subsidiaries on any class of its respective capital stock or membership interests (iv) there has not been any material addition, or development involving a prospective material addition, to the liability of any subsidiary for future policy benefits, policyholder account balances and other claims, other than in the ordinary course of business, (v) no member of the Company's or any subsidiary's management or board of directors has resigned from any position with the Company or any subsidiary.

(h) The Company and its subsidiaries have good and marketable title to all real property and good and marketable title to all personal property owned by them, in each case free and clear of all liens, encumbrances and defects except such as are described in the Disclosure Package and Prospectus or such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company or its subsidiaries, and any real property and buildings held under lease by the Company or its subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company or its subsidiaries.

(i) The Company and its subsidiaries have been duly incorporated or organized and are validly existing as corporations or limited liability companies, in good standing under the laws of their respective jurisdictions of incorporation, with power and authority (corporate and other) to own or lease their respective properties and conduct their respective businesses as described in the Disclosure Package and Prospectus; and each has been duly qualified as a foreign corporation for the transaction of business and is in good standing under the laws of each other jurisdiction in which it owns or leases properties, or conducts any business, so as to require such qualification; except where the failure to so qualify would not result in a material adverse effect on the condition (financial or otherwise), prospects, earnings, business or properties of the Company and its subsidiaries taken as a whole ("Material Adverse Effect"); and each of the Company and its subsidiaries holds all material licenses, certificates, authorizations and permits from governmental authorities necessary for the conduct of its business as described in the Disclosure Package and Prospectus.

5

(j)  The Company has an authorized and outstanding capitalization as set forth in the Disclosure Package and the Prospectus; all of the issued shares of capital stock of the Company have been duly and validly authorized and issued, are fully paid and nonassessable, and conform to the description of the capital stock of the Company contained in the Disclosure Package and the Prospectus; there are no preemptive or other rights to subscribe for or to purchase any securities of the Company under the Amended and Restated Certificate of Incorporation of the Company, Delaware law or any agreement or arrangement to which the Company is a party; except as described in the Disclosure Package and the Prospectus, there are no warrants, options or other rights to purchase any securities of the Company which have been granted by the Company; and neither the filing of the Registration Statement nor the offering or sale of the Notes as contemplated by this Agreement gives rise to any rights for or relating to the registration of any securities of the Company.

(k) The Indenture has been duly qualified under the Trust Indenture Act and has been duly authorized, executed and delivered by the Company and constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles and an implied covenant of good faith and fair dealing.

(l) The Notes have been duly authorized for issuance and sale pursuant to this Agreement and the Indenture and, at the relevant Delivery Date, will have been duly executed by the Company and, when authenticated in the manner provided for in the Indenture and delivered against payment of the purchase price therefor, will constitute valid and binding obligations of the Company, enforceable in accordance with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies of creditors or by general equitable principles and an implied covenant of good faith and fair dealing, and will be entitled to the benefits of the Indenture.

(m) The Notes and the Indenture conform in all material respects to the descriptions thereof contained in the Disclosure Package and the Prospectus.

(n) The statements in each of the Disclosure Package and the Prospectus under the captions "Description of the Notes" and "Material U.S. Federal Income Tax Considerations" in each case insofar as such statements constitute a summary of the legal matters, documents or proceedings referred to therein, fairly present and summarize, in all material respects, the matters referred to therein.

6

(o) The execution, delivery and performance by the Company of this Agreement and the Indenture, the issuance and sale of the Notes and compliance by the Company with the terms thereof and the consummation of the transactions contemplated thereby will not conflict with or result in a breach or violation of any of the terms or provisions of or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or its subsidiaries pursuant to any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or its subsidiaries is a party or by which the Company or its subsidiaries is bound or to which any of the property or assets of the Company or its subsidiaries is subject, except as would not, individually or in the aggregate, result in a Material Adverse Effect, nor will such action result in any violation of the provisions of the certificate of incorporation, bylaws, articles of organization or operating agreement, as the case may be, of the Company or its subsidiaries or any statute or any order, rule or regulation of any court or governmental agency or body or any regulatory authority having jurisdiction over the Company or its subsidiaries or any of their respective properties; and no consent, approval, authorization, order, registration or qualification of or with any such court or governmental agency or body or any regulatory authority is required for the execution, delivery and performance by the Company of this Agreement, the issuance and sale of the Notes and compliance by the Company with the terms thereof and the consummation of the transactions contemplated by this Agreement, except such consents, approvals, authorizations, orders, registrations or qualifications as may be required under the Securities Act, under state securities or Blue Sky laws, any necessary listing application with The Nasdaq Global Market ("NASDAQ") and under the rules of the Financial Industry Regulatory Authority ("FINRA") in connection with the purchase and distribution of the Notes by the Underwriter.

(p) There are no claims, actions, suits, proceedings, arbitrations, investigations or inquiries before any governmental or regulatory agency, court or tribunal, foreign or domestic, or before any private arbitration tribunal, pending or threatened against the Company or any of its subsidiaries or involving the Company's or any of its subsidiaries properties or business, other than litigation incident to the kind of business conducted by the Company and its subsidiaries which, individually and in the aggregate, is not material.  Neither the Company nor any of its subsidiaries is subject or is party to, or has received any notice or advice that any of them may become subject or party to any investigation with respect to, any corrective, suspension or cease-and-desist order, agreement, memorandum of understanding, consent agreement or other regulatory enforcement action, proceeding or order that would reasonably be expected to result in a Material Adverse Effect.

(q) Crowe Horwath LLP, the independent registered accounting firm that certified the financial statements of the Company and its subsidiaries that are included or incorporated by reference in the Registration Statement, the Disclosure Package and the Prospectus, is an independent registered accounting firm as required by the Securities Act and the rules and regulations of the Commission thereunder and by the rules of the Public Company Accounting Oversight Board, and its accountants have advised the Company that they are not in violation of the auditor independence requirements of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act") and the related rules and regulations of the Commission.

7

(r) All employee benefit plans established, maintained or contributed to by the Company and its subsidiaries comply in all material respects with all applicable requirements of Employee Retirement Income Security act of 1974 ("ERISA") (or any comparable Australian, New Zealand and Canadian laws) and, except as set forth in the Registration Statement, the Disclosure Package and the Prospectus, no such plan has incurred or assumed an "accumulated funding deficiency" within the meaning of Section 302 of ERISA or has incurred or assumed any material liability to the Pension Benefit Guaranty Corporation.

(s) The consolidated financial statements of the Company, together with related notes, as set forth in the Registration Statement, the Disclosure Package and the Prospectus, present fairly in all material respects the consolidated financial position and the results of operations of the Company at the indicated dates and for the indicated periods, all in accordance with generally accepted accounting principles in the United States of America ("GAAP"), consistently applied throughout the periods presented except as noted in such financial statements and the notes thereon, and all adjustments necessary for a fair presentation in all material respects of results for such periods have been made; and the selected financial information included or incorporated by reference in the Prospectus presents fairly in all material respects the information shown therein and has been compiled on a basis consistent with the financial statements presented therein.  All disclosures contained or incorporated by reference in the Registration Statement, the Disclosure Package and the Prospectus, if any, regarding "non-GAAP financial measures" (as such term is defined by the rules and regulations of the Commission) comply with Regulation G of the Exchange Act and Item 10(e) of Regulation S-K under the Securities Act, as applicable.  The Company does not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations or any "variable interest entities" within the meaning of Financial Accounting Standards Board Interpretation No. 46), not disclosed in the Registration Statement, the Disclosure Package or the Prospectus.  There are no financial statements (historical or pro forma) that are required to be included or incorporated by reference in the Registration Statement, the Disclosure Package or the Prospectus that are not included or incorporated by reference as required.

(t) Neither the Company nor any of its subsidiaries is, or after giving effect to the offering and sale of the Notes as herein contemplated will be, an "investment company" or an entity "controlled" by an "investment company," as such terms are defined in the Investment Company Act of 1940, as amended.

(u) The Company and its subsidiaries (i) are in compliance with any and all applicable federal, state, foreign, provincial and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants in the United States, Australia, New Zealand, Canada and any other geographic regions where the Company and its subsidiaries operate ("Environmental Laws"); (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or approval, except where such noncompliance with Environmental Laws, failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals would not, singly or in the aggregate, have a Material Adverse Effect.

8

(v) The Company keeps books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company, maintains a system of disclosure controls and procedures designed to ensure that information required to be disclosed by the Company in the 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, and maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management's general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.  Except as disclosed in the Registration Statement, the Disclosure Package and the Prospectus, neither the Company nor any of its subsidiaries is aware of (x) any material weakness in its internal control over financial reporting or (y) change in internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

(w) To the extent that the Sarbanes-Oxley Act and the rules and regulations promulgated by the Commission and NASDAQ thereunder have been applicable to the Company, there is, and has been, no failure on the part of the Company to comply in all material respects with any provision of the Sarbanes-Oxley Act or such rules and regulations.  The Company has taken all necessary actions to ensure that it is in compliance with all provisions of the Sarbanes-Oxley Act and such rules and regulations that are in effect and with which the Company is required to comply.

(x) There are no contracts or documents which are required to be described in the Registration Statement, the Disclosure Package and the Prospectus or the documents incorporated by reference therein or to be filed as exhibits thereto which have not been so described and filed as required.

(y) The Company and each of its subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged; since January 1, 2011, neither the Company nor any of its subsidiaries have been refused any material insurance coverage sought or applied for and neither the Company nor any of its subsidiaries have any reason to believe that they will not be able to renew their existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue the Company's and each of its subsidiaries' business at a cost that would not have a Material Adverse Effect.

(z) The Company and its subsidiaries have filed all federal, state, local and foreign income and franchise tax returns that have been required to be filed (or have received extensions with respect thereto) other than those filings being contested in good faith, and have paid, or made adequate reserves for, all taxes indicated by said returns and all assessments received by them to the extent that such taxes have become due and are not being contested in good faith.

9

(aa) No relationship, direct or indirect, exists between or among the Company and its subsidiaries, on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company and its subsidiaries, on the other hand, that is required by the Securities Act or by the rules and regulations thereunder to be described in the Registration Statement, the Disclosure Package and the Prospectus which is not so described.

(bb) Neither the Company nor any of its subsidiaries nor any director, officer, or employee of the Company or any of its subsidiaries nor, to the knowledge of the Company, any agent, affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries has (i) used any 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 or regulatory 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 laws; 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.  The Company 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.

(cc) The operations of the Company and its subsidiaries are and have been conducted at all times in compliance 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 the Company 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 or regulatory agency (collectively, the "Anti-Money Laundering Laws") and no action, suit or proceeding by or before any court or governmental or regulatory agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

(dd) Neither the Company nor any of its subsidiaries, directors, officers or employees, nor, to the knowledge of the Company, any agent, or affiliate or other person associated with or acting on behalf of the Company 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 the Company, any of its subsidiaries located, organized or resident in a country or territory that is the subject or the target of Sanctions, including, without limitation, Cuba, Iran, North Korea, Sudan and Syria (each, a "Sanctioned Country"); and the Company will not directly or indirectly use the proceeds of the offering of the Notes 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 the target of Sanctions or  (ii) to fund or facilitate any activities of or business in any Sanctioned Country.

10

(ee) The Company and its subsidiaries have not taken and will not take, directly or indirectly, any action which is designed to or which has constituted or which might reasonably be expected to cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Notes in contravention of applicable law, provided that no representation is made as to the activities of the Underwriter.

(ff) This Agreement has been duly authorized, executed and delivered by the Company and is a valid and binding agreement of the Company in accordance with its terms (subject, as to enforcement of remedies, to applicable bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or other similar laws affecting the rights of creditors now or hereafter in effect, and to equitable principles that may limit the right to specific enforcement of remedies, and except insofar as the enforceability of the indemnity and contribution provisions contained in this Agreement may be limited by federal and state securities laws).

(gg) Each "forward-looking statement" (within the meaning of Section 27A of the Securities Act or Section 21E of the Exchange Act) contained or incorporated by reference in the Registration Statement, the Disclosure Package and the Prospectus was, at the time issued and at the time of any express, written reaffirmation thereof, made with a reasonable basis and in good faith.

(hh) All statistical, industry and market-related data included or incorporated by reference in the Registration Statement, the Disclosure Package and the Prospectus are based on or derived from sources that the Company reasonably believes to be reliable and accurate, and the Company has obtained the written consent for the use of such data from such sources to the extent required.

(ii) Royal Wolf Holdings Limited ("RWHL") is in compliance in all material respects with all rules and regulations adopted by the Australian Securities and Investment Commission applicable to RWHL and all rules, regulations and other listing requirements the Australian Stock Exchange (the "ASX") applicable to RWHL.  RWHL's ordinary shares are listed for trading on the ASX and, since May 31, 2011, RWHL has not received any notice from the ASX regarding the delisting of its ordinary shares from the ASX.

(jj) Each of the Company and its subsidiaries owns or possesses all inventions, patent applications, patents, trademarks (both registered and unregistered), tradenames, service names, copyrights, trade secrets and other proprietary information described in the Registration Statement, the Preliminary Prospectus, the Prospectus or the Disclosure Package, as being owned or licensed by it or which is necessary for the conduct of, or material to, its businesses (collectively, the "Intellectual Property"), except where the failure to own or possess such Intellectual Property would not, individually or in the aggregate, have a Material Adverse Effect, and the Company is unaware of any claim to the contrary or any challenge by any other person to the rights of the Company or any of its subsidiaries with respect to the Intellectual Property that, if resolved adversely to the Company, would, individually or in the aggregate, have a Material Adverse Effect; neither the Company nor any of its subsidiaries has infringed or is infringing the intellectual property of a third party, and neither the Company nor any of its subsidiaries has received notice of a claim by a third party to the contrary that, if resolved adversely to the Company, would, individually or in the aggregate, have a Material Adverse Effect.

11

(kk) Neither the Company nor any of its subsidiaries is engaged in any unfair labor practice; except for matters which would not, individually or in the aggregate, have a Material Adverse Effect, (i) there is (A) no unfair labor practice complaint pending or, to the Company's knowledge, threatened against the Company or any of its subsidiaries before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of, or under collective bargaining agreements, is pending or, to the Company's knowledge, threatened, (B) no strike, labor dispute, slowdown or stoppage pending or, to the Company's knowledge, threatened against the Company or any of its subsidiaries and (C) no union representation dispute currently existing concerning the employees of the Company or any of its subsidiaries, (ii) to the Company's knowledge, no union organizing activities are currently taking place concerning the employees of the Company or any of its subsidiaries and (iii) there has been no violation of any federal, state, local or foreign law relating to discrimination in the hiring, promotion or pay of employees, any applicable wage or hour laws or any provision of the ERISA or the rules and regulations promulgated thereunder concerning the employees of the Company or any of its subsidiaries.

(ll) The Company and its subsidiaries are not in violation of any statute, law, rule, regulation, judgment, order or decree of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company, its subsidiaries or any of their respective properties, which violation would, if continued, have a Material Adverse Effect, or materially impair the ability of the Company to perform its obligations under this Agreement.

(mm) The Company and its subsidiaries have implemented disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) and believe they are effective.

(nn) Neither the issuance, sale and delivery of the Notes nor the application of the proceeds thereof by the Company as described in the Registration Statement, the Disclosure Package and the Prospectus 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.

(oo) Neither the Company nor any of its subsidiaries has not taken and will not take, directly or indirectly, any action designed to or that would be reasonably expected to cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Notes.

12

Any certificate signed by or other representation made by an officer of the Company delivered or otherwise provided to the Underwriter or Underwriter's counsel shall be deemed to be a representation.

2. Purchase of the Notes by the Underwriter.

(a) The Company agrees to issue and sell the Notes to the Underwriter as provided in this Agreement, and the Underwriter, on the basis of the representations, warranties and agreements set forth herein and subject to the conditions set forth herein, agrees to purchase from the Company all of the Notes at a price equal to $24.07675 per Note, plus accrued interest from April 30, 2017, if settlement occurs after that date.  The Company will not be obligated to deliver any of the Notes except upon payment for all the Notes to be purchased as provided herein.

3. Offering by the Underwriter.  The Company understands that the Underwriter intends to make a public offering of the Notes as soon after the effectiveness of this Agreement as in the judgment of the Underwriter is advisable, and initially to offer the Notes on the terms set forth in the Prospectus.  The Company acknowledges and agrees that the Underwriter may offer and sell Notes to or through any affiliate of the Underwriter and that any such affiliate may offer and sell Notes purchased by it to or through the Underwriter.

4. Delivery and Payment.

(a) Payment for and delivery of the Notes will be made at the offices of Mayer Brown LLP at 10:00 A.M., New York City time, on April 24, 2017, or at such other time or place on the same or such other date, not later than the fifth business day thereafter, as the Underwriter and the Company may agree upon in writing.  The time and date of such payment and delivery is referred to herein as the "Delivery Date."

(b) Payment for the Notes shall be made by wire transfer in immediately available funds to the account(s) specified by the Company to the Underwriter against delivery to Cede & Co., the nominee of The Depository Trust Company, for the account of the Underwriter, of one or more global notes representing the Notes (collectively, the "Global Note"), with any transfer taxes payable in connection with the sale of the Notes duly paid by the Company.  The Global Note will be made available for inspection by the Underwriter not later than 1:00 P.M., New York City time, on the business day prior to the Delivery Date.

5. Agreements of the Company.  The Company agrees with the Underwriter:

 (a) To prepare the Prospectus in a form reasonably approved by the Underwriter and to file the Prospectus pursuant to Rule 424(b) under the Securities Act within the time period prescribed; to file any Issuer Free Writing Prospectus (including the term sheet substantially in the form of Schedule II hereto) to the extent required by Rule 433 under the Securities Act within the time period prescribed; to make no amendment or supplement to the Registration Statement, any Preliminary Prospectus or the Prospectus which shall be reasonably objected to by the Underwriter promptly after reasonable notice thereof; to advise the Underwriter, promptly after it receives notice thereof, of the time when any amendment to the Registration Statement has been filed or becomes effective or any supplement to the Prospectus or any amended prospectus has been filed and to furnish the Underwriter with copies thereof; to file promptly all reports and any definitive proxy or information statements required to be filed by the Company with the Commission subsequent to the date of the Prospectus and for so long as the delivery of a prospectus is required in connection with the offering or sale of the Notes; to furnish copies of the Prospectus and each Issuer Free Writing Prospectus (to the extent not previously delivered) to the Underwriter in New York City prior to 10:00 A.M., New York City time, on the second business day succeeding the date of this Agreement in such quantities as the Underwriter may reasonably request; to advise the Underwriter, promptly after it receives notice thereof, of the issuance by the Commission of any stop order or of any order preventing or suspending the use of any Preliminary Prospectus or the Prospectus, of the suspension of the qualification of the Notes for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose or pursuant to Section 8A of the Securities Act, or of any request by the Commission for the amendment or supplement of the Registration Statement, any Preliminary Prospectus or the Prospectus or for additional information; and, in the event of the issuance of any stop order or of any order preventing or suspending the use of any Preliminary Prospectus or the Prospectus or suspending any such qualification, to use promptly its best efforts to obtain the withdrawal of such order.

13

(b) To furnish to the Underwriter a copy of each proposed Free Writing Prospectus to be prepared by or on behalf of, used by, or referred to by the Company and not to use or refer to any proposed Free Writing Prospectus to which the Underwriter reasonably objects.

(c) Unless otherwise consented to by the Underwriter in writing, not to take any action that would result in the Underwriter or the Company being required to file with the Commission pursuant to Rule 433(d) under the Securities Act a Free Writing Prospectus prepared by or on behalf of the Underwriter that the Underwriter otherwise would not have been required to file thereunder.

(d) If the Disclosure Package is being used to solicit offers to buy the Notes at a time when the Prospectus is not yet available to prospective purchasers and any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Disclosure Package in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if any event shall occur or condition exist as a result of which the Disclosure Package conflicts with the information contained in the Registration Statement then on file, or if, in the reasonable opinion of counsel for the Underwriter, it is necessary to amend or supplement the Disclosure Package to comply with applicable law, forthwith to prepare, file with the Commission and furnish, at its own expense, to the Underwriter and to any dealer upon request (whose name and address is supplied to the Company), either amendments or supplements to the Disclosure Package so that the statements in the Disclosure Package as so amended or supplemented will not, in the light of the circumstances when delivered to a prospective purchaser, be misleading or so that the Disclosure Package, as amended or supplemented, will no longer conflict with the Registration Statement, or so that the Disclosure Package, as amended or supplemented, will comply with applicable law.

14

(e) If, during such period after the first date of the public offering of the Notes as, in the reasonable opinion of counsel for the Underwriter, the Prospectus (or in lieu thereof the notice referred to in Rule 173(a) under the Securities Act) is required by law to be delivered in connection with sales by the Underwriter or dealer, any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Prospectus in order to make the statements therein, in the light of the circumstances when the Prospectus (or in lieu thereof the notice referred to in Rule 173(a) under the Securities Act) is delivered to a purchaser, not misleading, or if, in the reasonable opinion of counsel for the Underwriter, it is necessary to amend or supplement the Prospectus to comply with applicable law, forthwith to prepare, file with the Commission and furnish, at its own expense, to the Underwriter and to the dealers (whose names and addresses the Underwriter will furnish to the Company) to which Notes may have been sold by the Underwriter and to any other dealers upon request (whose names and addresses are supplied to the Company), either amendments or supplements to the Prospectus so that the statements in the Prospectus as so amended or supplemented will not, in the light of the circumstances when the Prospectus (or in lieu thereof the notice referred to in Rule 173(a) under the Securities Act) is delivered to a purchaser, be misleading or so that the Prospectus, as amended or supplemented, will comply with law.

(f) Promptly from time to time to take such actions as the Underwriter may reasonably request to qualify the Notes for offering and sale under the securities laws of such jurisdictions as the Underwriter has requested and to comply with such laws so as to permit the continuance of sales and dealings therein in such jurisdictions for as long as may be necessary to complete the distribution of the Notes, provided that in connection therewith the Company shall not be required to qualify as a foreign corporation or to take any action that would subject it to general service of process or general taxation in any jurisdiction.

(g) As soon as practicable, but not later than the Availability Date (as defined below), to make generally available to its security holders and deliver to the Underwriter an earnings statement of the Company covering a period of at least twelve months beginning after the effective date of the Registration Statement which will satisfy the provisions of Section 11(a) of the Securities Act (it being agreed that for the purpose of this subsection 5(g) only, "Availability Date" means the 45th day after the end of the fourth fiscal quarter following the fiscal quarter that includes the effective date of the Registration Statement, except that, if such fourth fiscal quarter is the last quarter of the Company's fiscal year, "Availability Date" means the 90th day after the end of such fourth fiscal quarter).

(h) Furnish to the Underwriter copies of all reports or other communications (financial or other) furnished to stockholders, and deliver to the Underwriter (i) for a period of five years from the effective date of the Registration Statement, copies of any reports and financial statements furnished to or filed with the Commission or any national securities exchange on which any class of securities of the Company are listed, as soon as they are available, and (ii) for a period of one year from the effective date of the Registration Statement, such additional information concerning the business and financial condition of the Company as the Underwriter may from time to time reasonably request, provided, however, that the Company shall not be required to furnish any such report to the extent such information is publicly available through the Commission's website or disseminated through a national news service.

(i) If the Company elects to rely on Rule 462(b), the Company shall file a Rule 462(b) Registration Statement with the Commission in compliance with Rule 462(b) by 10:00 p.m., Eastern time on the date of this Agreement, and the Company shall at the time of filing either pay to the Commission the filing fee for the Rule 462(b) Registration Statement or give irrevocable instructions for the payment of such fee pursuant to Rule 111(b) under the Securities Act.

15

(j) During the period from the date hereof through and including the 30th calendar day following the date hereof, the Company will not, without the prior written consent of the Underwriter, offer, sell, contract to sell or otherwise dispose of any debt securities issued or guaranteed by the Company and having a tenor of more than one year.

(k) The Company will apply the net proceeds from the sale of the Securities in the manner set forth in the Prospectus.

(l) The Company will not 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 Notes.

(m) The Company will, pursuant to reasonable procedures developed in good faith, retain copies of each Issuer Free Writing Prospectus that is not filed with the Commission in accordance with Rule 433 under the Securities Act.

(n) The Company will use its best efforts to effect the listing of the Notes, within 30 days after the Delivery Date, on the NASDAQ Global Market.

(o) The Company will prepare a final term sheet containing only a description of the Notes, and will file such term sheet pursuant to Rule 433(d) under the Securities Act within the time required by such rule (such term sheet, the "Final Term Sheet").  Any such Final Term Sheet is an Issuer Free Writing Prospectus for purposes of this Agreement.  A form of the Final Term Sheet for the Notes is attached hereto as Schedule II.

6. Certain Agreements of the Underwriter.  The Underwriter hereby represents and agrees that:

(a) It has not and will not use, authorize use of, refer to, or participate in the planning for use of, any "free writing prospectus", as defined in Rule 405 under the Securities Act (which term includes use of any written information furnished to the Commission by the Company and not incorporated by reference into the Registration Statement and any press release issued by the Company) other than (i) a free writing prospectus that, solely as a result of use by the Underwriter, would not trigger an obligation to file such free writing prospectus with the Commission pursuant to Rule 433, (ii) any Issuer Free Writing Prospectus listed on Schedule I or prepared pursuant to paragraph (c), (e) and (f) of Section 5 above (including any electronic road show), or (iii) any free writing prospectus prepared by the Underwriter and approved by the Company in advance in writing.  Notwithstanding the foregoing, the Underwriter may use a term sheet substantially in the form of Schedule II hereto without the consent of the Company.

16

(b) It is not subject to any pending proceeding under Section 8A of the Securities Act with respect to the offering of the Notes (and will notify the Company if any such proceeding against it is initiated).

7. Expenses.  The Company agrees with the Underwriter that it will pay or cause to be paid the following, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated: (i) the fees, disbursements and expenses of their counsel and accountants in connection with the registration of the Notes under the Securities Act and all other expenses in connection with the preparation, printing and filing of the Registration Statement, any Preliminary Prospectus, the Disclosure Package, the Prospectus and any Free Writing Prospectus and amendments and supplements thereto, and the mailing and delivering of copies thereof to the Underwriter and dealers; (ii) the cost of printing or reproducing documents in connection with the offering, purchase, sale and delivery of the Notes; (iii) all expenses in connection with the qualification of the Notes for offering and sale under state securities laws as provided in Section 5(f) hereof, including the reasonable and documented fees and disbursements of counsel for the Underwriter in connection with such qualification; (iv) the filing fees incident to securing any required review by FINRA of the terms of the sale of the Notes; (v) the fees and expenses of the Trustee, including the reasonable and documented fees and disbursements of counsel for the Trustee in connection with the Indenture and the Notes; (vi) the costs and expenses of the Company relating to investor presentations on any "road show" undertaken in connection with the marketing of the offering of the Notes, including, without limitation, expenses associated with the preparation or dissemination of any electronic road show, expenses associated with the production of road show slides and graphics and officers of the Company; (vii) all fees, relating to the inclusion of the Notes for listing and quotation on the NASDAQ Stock Market; and (viii) all other costs and expenses incident to the performance of its obligations hereunder which are not otherwise specifically provided for in this Section 6.  The Company agrees to reimburse the Underwriter for up to $60,000 of its fees and expenses in connection with the offering, including the fees and expenses of its counsel.  It is understood, however, that except as provided in this Section 6, and in Section 9 and Section 12 hereof, the Underwriter will pay all of its own costs and expenses, including the fees of its counsel, stock transfer taxes on resale of any of the Notes by it, and any advertising expenses connected with any offers it may make.

If the sale of the Notes provided for herein is not consummated because any condition to the obligations of the Underwriter set forth in Section 8 hereof is not satisfied or because of any refusal, inability or failure on the part of the Company to perform any agreement herein or comply with any provision hereof other than by reason of a default by the Underwriter, the Company will reimburse the Underwriter upon demand for all out-of-pocket accountable expenses (including reasonable fees and disbursements of counsel) that shall have been actually incurred by them in connection with the proposed purchase and sale of the Notes.

8.  Conditions to the Obligations of the Underwriter.  The obligations of the Underwriter hereunder, as to the Notes to be delivered at the Delivery Date, shall be subject, in its discretion, to the condition that all representations and warranties and other statements of the Company herein are, at and as of the date hereof and the Delivery Date, true and correct and the condition that the Company shall have performed all of its obligations hereunder theretofore to be performed, and the following additional conditions, unless any such condition is waived in writing by the Underwriter:

17

(a) The Prospectus shall have been filed with the Commission in the manner and within the time period required by Rule 424(b); each Issuer Free Writing Prospectus shall have been filed with the Commission if, in the manner and within the time period required by Rule 433; no stop order suspending the use of the Prospectus or any Issuer Free Writing Prospectus shall have been issued and no proceeding for that purpose or pursuant to Section 8A of the Securities Act shall have been initiated or, to the knowledge of the Company, threatened by the Commission; and all requests for additional information on the part of the Commission shall have been complied with to the reasonable satisfaction of the Underwriter.

(b) On the Delivery Date, Mayer Brown LLP, counsel for the Underwriter, shall have furnished to the Underwriter an opinion or opinions, dated such dates, with respect to the issuance and sale of the Notes on each the Delivery Date, the Registration Statement, the Disclosure Package, the Prospectus, and other related matters as the Underwriter may reasonably request, and such counsel shall have received such papers and information as they may reasonably request to enable them to pass upon such matters.

(c) On the Delivery Date, Morrison & Foerester LLP ("Morrison & Foerester"), counsel for the Company, and Christopher A. Wilson, General Counsel to the Company shall have furnished to the Underwriter written opinions, dated such dates, in form and substance satisfactory to the Underwriter, to the effect of the matters set forth on Exhibits A and B hereto, respectively.

In rendering such opinions, Morrison & Foerester may rely as to matters of fact, to the extent deemed proper, on certificates of responsible officers of the Company and its subsidiaries, and public officials.

(d) On the date of this Agreement and also at the Delivery Date, Crowe Horwath LLP and Swenson Advisors, LLP, shall have furnished to the Underwriter a letter or letters, dated the respective dates of delivery thereof, in form and substance satisfactory to the Underwriter, containing statements and information of the type ordinarily included in accountants' "comfort letters" to underwriters with respect to the financial statements and certain financial information of the Company or Lone Star, as the case may be, contained or incorporated by reference in the Registration Statement, the Disclosure Package and the Prospectus.

(e)(i) The Company and its subsidiaries shall not have sustained since the date of the latest audited financial statements included or incorporated by reference in the Prospectus, any loss or interference with their respective businesses from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth or expressly contemplated in the Disclosure Package and the Prospectus, and (ii) since the respective dates as of which information is given in the Prospectus there shall not have been any change in the capital stock or long-term debt of the Company or its subsidiaries (except for newly-issued shares issued pursuant to the Company's employee benefit plans, stock-based incentive plans, incentive compensation plans, or other similar plans in the ordinary course of business and borrowings and repayments under the Company's revolving credit facility in the ordinary course of business) or any change, or any development involving a prospective change, in or affecting the general affairs, management, financial position, stockholders' equity or results of operations of the Company or its subsidiaries, otherwise than as set forth or contemplated in the Disclosure Package and the Prospectus, the effect of which, in any such case described in clause (i) or (ii), is in the reasonable judgment of the Underwriter so material and adverse as to make it impracticable or inadvisable to proceed with the public offering or the delivery of the Notes being delivered at such Delivery Date on the terms and in the manner contemplated by the Prospectus.

18

(f) The Company shall have furnished or caused to be furnished to the Underwriter on such Delivery Date certificates of officers of the Company satisfactory to the Underwriter as to the accuracy of the representations and warranties of the Company herein at and as of the date hereof and the Delivery Date, as to the performance by the Company of all of its obligations hereunder to be performed at or prior to such Delivery Date, as to the matters set forth in subsections (a) and (e) of this Section 8 and as to such other matters as the Underwriter may reasonably and timely request in writing.

(g) FINRA shall not have raised any objection with respect to the fairness or reasonableness of the underwriting, or other arrangements of the transactions contemplated hereby.

(h) 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 Notes or any other debt securities or preferred stock of or guaranteed by the Company or any of its subsidiaries by any "nationally recognized statistical rating organization", as such term is defined for purposes of Section 3(a)(62) of 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 Notes or of any other debt securities or preferred stock of or guaranteed by the Company or any of its subsidiaries (other than an announcement with positive implications of a possible upgrading).

(i) On or before such Delivery Date, the Underwriter and counsel for the Underwriter shall have received such information, documents and opinions as they may reasonably require for the purposes of enabling them to pass upon the issuance and sale of the Notes as contemplated herein, or in order to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained.

If any of the conditions specified in this Section 8 shall not have been fulfilled in all material respects when and as provided in this Agreement, or if any of the opinions and certificates mentioned above or elsewhere in this Agreement shall not be in all material respects reasonably satisfactory in form and substance to the Underwriter and its counsel, this Agreement and all obligations of the Underwriter hereunder may be canceled at, or at any time prior to, the Delivery Date by the Underwriter.  Notice of such cancellation shall be given to the Company in writing, or by telephone or facsimile (with written confirmation of receipt).

19

9. Indemnification and Contribution.

(a) The Company will indemnify and hold harmless the Underwriter, and each person, if any, who controls the Underwriter within the meaning of the Securities Act and the Exchange Act, against any losses, claims, damages or liabilities, joint or several, to which the Underwriter may become subject, under the Securities Act or otherwise, insofar as such losses, claims damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), including any information deemed to be a part thereof, or in the Preliminary Prospectus, any Issuer Free Writing Prospectus, the Disclosure Package or the Prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Underwriter for any legal or other expenses reasonably incurred by the Underwriter in connection with investigating, preparing to defend or defending, or appearing as a third party witness in connection with, any such action or claims as such expenses are incurred, provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based solely upon an untrue statement or omission made in the Registration Statement (or any amendment thereto), including any information deemed to be a part thereof, or the Preliminary Prospectus, any Issuer Free Writing Prospectus, the Disclosure Package or the Prospectus or any amendment or supplement thereto in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Underwriter expressly for use therein.

(b) The Underwriter agrees to indemnify and hold harmless the Company against any losses, claims, damages or liabilities to which the Company  may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based solely upon any untrue statement of a material fact contained in the Registration Statement (or any amendment thereto), including any information deemed to be a part thereof, the Preliminary Prospectus, any Issuer Free Writing Prospectus, the Disclosure Package or the Prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or omission was made in the Preliminary Prospectus, any Issuer Free Writing Prospectus, the Disclosure Package or Prospectus or any such amendment or supplement thereto in reliance upon and in conformity with written information furnished to the Company by the Underwriter expressly for use therein; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating, preparing to defend or defending, or appearing as a third party witness in connection with, any such action or claim as such expenses are incurred.

20

(c) Promptly after receipt by an indemnified party under subsections (a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party, unless and to the extent that such indemnifying party did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses.  In case any such action shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel selected by the indemnifying party and reasonably satisfactory to such indemnified party; provided, however, that if the defendants in any such action include both the indemnified party and the indemnifying party, and the indemnified party shall have (i) been advised by counsel that representation of such indemnified party and the indemnifying party would present an actual or potential conflict of interest or (ii) reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties.  Upon receipt of notice from the indemnifying party to such indemnified party of its election so to appoint counsel to defend such action and the above-described approval by the indemnified party of such counsel, the indemnifying party will not be liable for any settlement entered into without its consent and will not be liable to such indemnified party under this Section 9 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation unless (i) the indemnified party shall have employed separate counsel in accordance with the provision to the next preceding sentence, (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action, or (iii) the indemnifying party has authorized in writing the employment of counsel for the indemnified party at the expense of the indemnifying party; and except that, if clause (i) or (iii) is applicable, such liability shall be only in respect of the counsel referred to in such clause (i) or (iii).  Notwithstanding the immediately preceding sentence and the third preceding sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse an indemnified party for fees and expenses of counsel, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its consent if (i) such settlement is entered into more than thirty (30) days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement.  No indemnifying party shall, without the prior written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder by such indemnified party (whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim, (ii) does not include any statement as to, or an admission of, fault, culpability or a failure to act, by or on behalf of any indemnified party and (iii) does not include any injunction, equitable relief, consent or other restriction against or obligation upon the indemnified party.

21

(d) If the indemnification provided for in this Section 9 is unavailable to or insufficient to hold harmless an indemnified party under subsections (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall, severally, contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriter on the other from the offering of the Notes to which such loss, claim, damage or liability (or action in respect thereof) relates.  If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law, then the indemnifying party shall contribute to such amount paid or payable by the indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company and the Underwriter of the Notes on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions or proceedings in respect thereof), as well as any other relevant equitable considerations.  The relative benefits received by the Company on the one hand and the Underwriter on the other shall be deemed to be in the same proportion, in the case of the Company, as the total price paid to the Company for the Notes by the Underwriter (net of underwriting discount but before deducting expenses), and, in the case of the Underwriter, as the underwriting discount received by the Underwriter bears to the total of such amounts paid to the Company and received by the Underwriter as underwriting discount in each case as contemplated by the Prospectus.  The relative fault of the Company and the Underwriter 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 on the one hand or by the Underwriter on the other and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The Company and the Underwriter agree that it would not be just and equitable if contributions pursuant to this subsection (d) were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to above in this subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim.  Notwithstanding the provisions of this subsection (d), the Underwriter shall not be required to contribute any amount in excess of the underwriting discount or commission applicable to the Notes purchased by the Underwriter minus the amount of any damages which the Underwriter 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.

(e) The obligations of the Company under this Section 9 shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each officer, director, employee and agent of the Underwriter and each person, if any, who controls the Underwriter within the meaning of the Securities Act; and the obligations of the Underwriter under this Section 9 shall be in addition to any liability which the Underwriter may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company and to each person, if any, who controls the Company within the meaning of the Securities Act.

22

10. Survival.  The respective indemnities, rights of contribution, representations, warranties and agreements of the Company and the Underwriter contained in this Agreement or made by or on behalf of the Company or the Underwriter pursuant to this Agreement or any certificate delivered pursuant hereto shall survive the delivery of and payment for the Notes 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 or the Underwriter.

11. [Intentionally Left Blank]

12. Termination.

(a) This Agreement shall be subject to termination in the absolute discretion of the Underwriter, by notice given to the Company at any time on or prior to the delivery of any payment for the Notes, if prior to such time there shall have occurred any of the following: (i) a suspension or material limitation in trading in securities generally on the New York Stock Exchange, NASDAQ Stock Market, NYSE MKT, the Chicago Board of Options, the Chicago Mercantile Exchange, or the Chicago Board of Trade; (ii) a suspension or material limitation in trading in the Company's securities on the NASDAQ Stock Market, (iii) a general moratorium on commercial banking activities declared by either Federal, Australian, New York, Delaware or California authorities or a material disruption in commercial banking or securities settlement or clearance services in the United States or Australia; or (iv) (A) the outbreak or escalation of hostilities involving the United States or Australia or the declaration by the United States or Australia of a national emergency or war, or (B) the occurrence of any other calamity or crisis or any change in financial, political or economic conditions in the United States, Australia or elsewhere, including, without limitation, as a result of terrorist activities occurring after the date hereof, if the effect of any such event specified in clause (iv), in the judgment of the Underwriter, makes it impracticable or inadvisable to proceed with the public offering or the delivery of the Notes on the terms and in the manner contemplated in the Disclosure Package or Prospectus.

(b) If this Agreement shall be terminated pursuant to this Section 12, the Company shall not then be under any liability to the Underwriter except as provided in Section 6 and Section 9 hereof; but if for any other reason the sale of the Notes provided for herein is not consummated because any condition to the obligations of the Underwriter set forth in Section 8 hereof is not satisfied, because of any termination pursuant to this Section 12 or because of any refusal, inability or failure on the part of the Company to perform any agreements herein or comply with the provisions hereof other than by reason of a default by the Underwriter, the Company will be responsible, jointly and severally, for and will reimburse the Underwriter upon demand, for all reasonable and documented out-of-pocket expenses, including reasonable fees and disbursements of counsel, actually incurred by the Underwriter in connection with the proposed purchase, sale and delivery of the Notes.

23

13. Information Furnished by the Underwriter.  The identity of the Underwriter set forth on the cover page of the Prospectus and in the first paragraph under the heading "Underwriting," the concession and reallowance figures appearing under the heading "Underwriting" and the representations with respect to stabilization activities and short positions under the heading "Underwriting" constitute the only written information furnished by reference or on behalf of the Underwriter referred to in Sections 1(b) and (c) and 9(a) and (b) hereof.

14. Notices.  In all dealings hereunder, the Underwriter shall act on behalf of the Underwriter, and the parties hereto shall be entitled to act and rely upon any statement, request, notice or agreement on behalf of the Underwriter made or given by the Underwriter.  All statements, requests, notices and agreements hereunder shall be in writing, and if to the Underwriter shall be sufficient in all respects if delivered, or sent by mail or facsimile (with written confirmation of receipt) to D.A. Davidson & Co., 8 Third Street North, The Davidson Building , Great Falls, Montana  59401, Attention: Syndicate Department and if to the Company shall be sufficient in all respects if delivered or sent by mail or facsimile (with written confirmation of receipt) to the address of the Company set forth in the Prospectus, Attention: General Counsel.  Any such statements, requests, notices or agreements shall take effect upon receipt thereof.

15. Successors.  This Agreement shall be binding upon, and inure solely to the benefit of, the Underwriter, the Company, to the extent provided in Sections 9 and 10 hereof, the officers and directors of the Company, the officers and directors, employees and agents of the Underwriter and each person who controls the Company or the Underwriter and their respective heirs, executors, administrators, successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement.  No purchaser of any of the Notes from the Underwriter shall be deemed a successor or assign by reason merely of such purchase.

16. Time of the Essence.  Time shall be of the essence in this Agreement.

17. No Fiduciary Obligations.  The Company acknowledges and agrees that (i) the purchase and sale of the Notes pursuant to this Agreement, including the determination of the public offering price of the Notes and any related discounts and commissions, is an arm's-length commercial transaction between the Company, on the one hand, and the Underwriter, on the other hand, (ii) in connection with the offering contemplated hereby and the process leading to such transaction the Underwriter is and has been acting solely as principal and is not the agent or fiduciary of the Company, or the Company's stockholders, creditors, employees or any other third party, (iii) the Underwriter has not assumed or will not assume an advisory or fiduciary responsibility in favor of the Company with respect to the offering contemplated hereby or the process leading thereto (irrespective of whether the Underwriter has advised or is currently advising the Company on other matters) and the Underwriter does not have any obligation to the Company with respect to the offering contemplated hereby except the obligations expressly set forth in this Agreement, (iv) the Underwriter and its affiliates may be engaged in a broad range of separate transactions with other clients that involve interests that differ from those of the Company; and (v) the Underwriter has not provided any legal, accounting, regulatory or tax advice with respect to the offering contemplated hereby and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent they deemed appropriate.

24

18. Effectiveness of Agreement.  This Agreement shall become effective upon the execution and delivery hereof by the parties hereto.

19. Applicable Law; Agent for Service and Jurisdiction.  This Agreement shall be construed in accordance with the internal laws of the State of New York applicable to agreements made and to be performed in such state.  No legal proceeding may be commenced, prosecuted or continued in any court other than the courts of the State of New York located in the City and County of New York or in the United States District Court for the Southern District of New York, which courts shall have jurisdiction over the adjudication of such matters.  The Company and the Underwriter each hereby waive all right to trial by jury in any legal proceeding (whether based upon contract, tort or otherwise) in any way arising out of or relating to this Agreement.  The Company agrees that a final judgment in any such legal proceeding brought in any such court shall be conclusive and binding upon the Company and the Underwriter and may be enforced in any other courts in the jurisdiction of which the Company is or may be subject, by suit upon such judgment.

20. Captions.  The captions included in this Agreement are included solely for convenience of reference and shall not be deemed to be a part of this Agreement.

21. Partial Unenforceability.  The invalidity or unenforceability of any Section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other Section, paragraph or provision hereof.  If any Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

22. Counterparts.  This Agreement may be executed by any one or more of the parties in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.

23. Amendment 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.

24. Entire Agreement.  This Agreement, together with any other contemporaneous and prior written agreements, constitutes the entire agreement among the parties with respect to the proposed offering.

[Signatures appear on following page]

25

If the foregoing is in accordance with your understanding of our agreement, please sign and return to us two counterparts hereof, whereupon this instrument shall constitute a binding agreement between the Underwriter and the Company.

	 	
Very truly yours,

 

GENERAL FINANCE CORPORATION

 

 

By:         /s/ Christopher A. Wilson

Name:   Christopher A. Wilson

Title:     General Counsel & Vice President

	
Accepted as of the date hereof

 

D.A. DAVIDSON & CO.

 

 

By:          /s/ James Keckler

Name:    James Keckler

Title:      Director

	 

[Signature Page to Underwriting Agreement]

 

SCHEDULE I

Issuer Free Writing Prospectuses

Final Term Sheet dated April 18, 2017

Sch. I-1

SCHEDULE II

Supplementing the Preliminary Prospectus

dated April 18, 2017

 

$5,390,000

General Finance Corporation

 RE-OPENING OF 8.125% Senior Notes due 2021

Final Term Sheet

April 18, 2017

	
Issuer:

	
General Finance Corporation

	 
	
Principal Amount:

	
$5,390,000 (Reopening of 8.125% Senior Notes due 2021, of which $72,000,000 was previously issued in June 2014), for a total principal amount outstanding of $77,390,000)

	 
	
Trade Date:

	
April 19, 2017

	 
	
Settlement Date (T+3):

	
April 24, 2017

	 
	
Maturity Date:

	
July 31, 2021

	 
	
Interest Rate:

	8.125%	 	
 

	
 

	
Price to Public:

	
$24.95 per Note ($25 face amount)

	 
	
Underwriter's Discount:

	$188,272.70 	
 

	
 

	 
	
Net Proceeds to issuer (before expenses):

	$5,190,947.30 	
 

	
 

	 
	
Interest Payment Dates:

	
January 31, April 30, July 31 and October 31, beginning July 31, 2017

Purchasers of the reopened Notes in this offering will not receive an interest payment for the interest payment date of April 30, 2017.

	 
	
Record Dates:

	
January 15, April 15, July 15 and October 15

	 
	
Redemption Provisions:

	
Make-whole call at t+50 until July 31, 2017.

On and after July 31, 2017, at the prices set forth below for the twelve-month period beginning on July 31 of the years indicated below, plus accrued and unpaid interest:

 

Year Percentage

2017 106.094%

2018 104.063%

2019 102.031%

2020 and thereafter                                      100.000%

	 
	
Equity Clawback:

	
Up to 35% at 108.125% prior to July 31, 2017

	 
	
Change of Control:

	
Upon the occurrence of a change of control (as defined), the Issuer must offer to repurchase the Notes at 101% of the principal amount of the Notes, plus accrued and unpaid interest to the date of repurchase.

	 
	
Denominations:

	
$25 minimum denominations and $25 integral multiples in excess thereof.

	 
	
Exchange:

	
The Issuer intends to apply to list the Notes on the NASDAQ Global Market under the symbol "GFNSL". If the application is approved, the Issuer expects trading in the Notes on the NASDAQ Global Market to begin within 30 days after the settlement date.

	 
	
CUSIP:

	369822 705 	 	
 

	 
	
Sole Bookrunning Manager:

	
D.A. Davidson & Co.

	 

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

The Issuer has filed a registration statement (including a prospectus supplement) on Form S-3 (File No. 333-199514) with the Securities and Exchange Commission (the "SEC") for the offering to which this communication relates.  Before you invest, you should read the prospectus in the registration statement and the other documents the Issuer has filed with the SEC for more complete information about the Issuer and this offering.  You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.  Alternatively, you can request a copy of the prospectus from D.A. Davidson & Co. by calling toll-free (800) 332-5915.

Sch. II-1

EXHIBIT A

MORRISON & FOERESTER OPINION

[Provided separately]

Ex. A-1

EXHIBIT B

GENERAL COUNSEL OPINION

(i) Each of Southern Frac, LLC, Pac-Van, Inc. and PV Acquisition Corp. have been duly incorporated or organized and are validly existing as a corporation or limited liability company, as applicable, in good standing under the laws of their respective jurisdictions of incorporation or organization, with corporate power and authority to own or lease their respective properties and conduct their respective businesses as described in the Registration Statement and the Prospectus, and each of the Company and its domestic subsidiaries is duly qualified to do business and is in good standing in each jurisdiction in which it owns or leases property or conducts business so as to require such qualification except where the failure to so qualify would not result in a Material Adverse Effect; other than the subsidiaries listed in Exhibit 21 (the "Subsidiaries") to the Company's Annual Report on Form 10-K for the year ended June 30, 2016 (the "Form 10-K"), the Company has no direct or indirect subsidiaries or equity interests in any other entity; and the Company owns, directly or indirectly, 100% of the equity interests of each subsidiary, except to the extent set forth in Exhibit 21 to the Form 10-K.

(ii) The Company has an outstanding capitalization as set forth under the caption "Capitalization" in the Prospectus, and all of the issued shares of capital stock of the Company have been duly authorized and validly issued, are fully paid and non-assessable and conform to the description contained in the Prospectus;

(iii) There are no claims, actions, suits, proceedings, arbitrations, investigations or inquiries before any governmental or regulatory agency, court or tribunal, foreign or domestic, or before any private arbitration tribunal, pending or threatened against the Company or any of its subsidiaries or involving the Company's or any of its subsidiaries properties or business, other than litigation incident to the kind of business conducted by the Company and its subsidiaries which, individually and in the aggregate, is not material;

(iv) The execution, delivery and performance by the Company of this Agreement and the Indenture, the issuance and sale of the Notes and compliance by the Company with the terms thereof and the consummation of the transactions contemplated thereby will not result in a breach or violation of any of the terms or provisions of or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or its subsidiaries pursuant to, any material indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or its subsidiaries is a party or by which the Company or its subsidiaries are bound or to which any of the property or assets of the Company or its subsidiaries is subject or of any statute or any order, rule, regulation, writ, judgment or decree of any court or governmental agency or body or any regulatory authority having jurisdiction over the Company or its subsidiaries or any of their respective properties, except as would not, individually or in the aggregate, result in a Material Adverse Effect; and

Ex. B-1

(v) No consent, approval, authorization, order, registration or qualification of or with any such court or governmental agency or body or any regulatory authority is required for the execution, delivery and performance by the Company of this Agreement, the issuance and sale of the Notes and compliance by the Company with the terms thereof and the consummation of the transactions contemplated by this Agreement, except such consents, approvals, authorizations, orders, registrations or qualifications as may be required under the Securities Act, under state securities or Blue Sky laws, any necessary listing application with the NASDAQ and under the rules of FINRA in connection with the purchase and distribution of the Notes by the Underwriter.

(vi) To our knowledge, after due inquiry, there are no material contracts or other documents that are required to be described in the Registration statement or Prospectus pursuant to Regulation S-K or to be filed as exhibits to the Registration statement pursuant to item 601(b) of Regulation S-K which are not described and filed as required.

(vii) The documents incorporated by reference into the Registration Statement, the Disclosure Package and the Prospectus, when filed with the Commission, complied as to form in all material respects with the requirements of the Exchange Act and the rules and regulations thereunder.

Negative Assurances

During the course of the preparation of the Registration Statement, the Prospectus and the Disclosure Package, I participated in conferences with other representatives of the Company, including certain of its executive, financial, and accounting officers, representatives of its independent public accountants, and representatives of the Underwriter, including the Underwriter's counsel, at which conferences the contents of the Registration Statement, the Prospectus and the Disclosure Package and related matters were discussed.

I advise you that in and on the basis of my review of the Registration Statement, the Prospectus and the Disclosure Package and my participation in their preparation, nothing has come to my attention that causes me to believe that (i) the Registration Statement, at the time the Registration Statement became effective, contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) the Prospectus or any amendment or supplement thereto, at the date of the Prospectus or such amendment and as of the date hereof, included or includes an untrue statement of a material fact or omitted or omits 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 or (iii) the Disclosure Package, as of the Initial Time of Sale, contained an untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.

Ex. B-2Exhibit
10.1

 

ProPhase
Labs, Inc.

621
N. Shady Retreat Road

Doylestown,
Pa 18901

  

April
17, 2017

 

Robert
V. Cuddihy, Jr.

 

Re:
Employment Agreement Termination and Release Agreement

 

Dear
Robert:

 

This
Letter Agreement (“Agreement”) sets forth the terms and conditions of the termination of your amended and restated
employment agreement with ProPhase Labs, Inc. (the “Company”), dated May 29, 2015 (the “Employment Agreement”).

 

The
Company has proposed, and you have agreed, to terminate the Employment Agreement in consideration for your being offered severance
and an ongoing employment arrangement pursuant to this Agreement. Accordingly, you and the Company agree that the Employment Agreement
shall be terminated, and that you waive any right under the Employment Agreement to receive the benefits provided therein, effective
as of the date you sign this Agreement (“Signing Date”).

 

AGREEMENT

 

In
consideration of the mutual covenants and promises made in this Agreement, you and the Company agree as follows:

 

Termination
Date. The termination of your Employment Agreement is effective as of 5:00 p.m. on the Signing Date.

 

Termination
Payment. You will be paid six hundred seventy-five thousand dollars ($675,000.00) (such amount, the “Termination Payment”),
which Termination Payment will be payable in a one-time lump sum payment. You acknowledge that seventy five thousand dollars ($75,000)
of the Termination Payment is your bonus payment for the year ended December 31, 2016. All applicable tax withholding and other
lawful deductions will be taken from the aforementioned payments.

 

    	 

    	 

    

 

Employment.
You shall remain an employee of the Company on an at-will basis, meaning that you may resign at any time for any or no reason,
and the Company similarly may end the employment relationship at any time for any or no reason, subject to the terms herein. You
will be paid salary at the rate of Three Hundred Fifty Thousand Dollars ($350,000.00) per year, provided that your salary will
be decreased to Two Hundred Fifty Thousand Dollars ($250,000.00) per year effective as of July 1, 2017, which shall be subject
to all required withholdings and deductions, and is payable in accordance with the Company’s normal payroll practices. In
addition to your salary, you will be eligible to participate in the Company’s equity incentive compensation plans, subject
to the terms and conditions therein and as may be amended from time to time. You will continue to (i) be eligible to participate
in Company employee benefit plans in accordance with the terms of those plans, (ii) receive a $1,250 per month auto allowance,
(iii) receive four weeks paid vacation per year and (iv) be eligible for annual bonus and participate in bonus plans in effect
during the term of your employment.

 

Your
title will be Chief Financial Officer, Chief Accounting Officer & Chief Operating Officer – Contract Manufacturing Division.

 

In
the event that your employment is terminated by the Company without Cause (as defined below), you shall be entitled to the following:

 

	 	1.	a
    single cash sum, in an amount equal to three (3) months of base salary then in effect.
	 	 	 
	 	2.	the
    Accrued Obligations payable within two (2) business days of your employment termination date.

 

;
provided that in lieu of the severance payment equal to three (3) months of base salary, the Company may provide you a minimum
of three (3) months of prior notice of termination, in its sole discretion.

 

In
the event that your subsequent employment hereunder is terminated by the Company for Cause, the term of your at-will employment
shall expire as of such date and you shall be entitled to all earned but unpaid base salary, vacation and employee benefits through
the termination date and the Accrued Obligations. Additionally, the Company will not actively seek to contest your application
for unemployment benefits following your termination.

 

Your
entitlement to the payments described in this paragraph (other than the Accrued Obligations) is expressly contingent upon you
first providing the Company with a signed general release of claims (the “Release”) in favor of the Company in accordance
with the reasonable deadlines and reasonable conditions set forth therein.

 

    	- 2 -

    	 

    

 

As
used herein: (x) “Accrued Obligations” means (i) your earned but unpaid base salary and accrued vacation through the
termination date; and (ii) any unpaid expense or other reimbursements properly incurred by you in connection with your employment
hereunder; and (y) “Cause” means (i) deliberate failure to devote substantially all of your business time and reasonable
best efforts to his duties, and failure to cure such violation within fifteen (15) business days of receipt of written notice
thereof from the Company if such default is curable in the reasonable discretion of the Company; (ii) you are convicted of, or
pleads guilty or nolo contendere to, (a) a felony which otherwise materially impairs your ability to effectively carry out your
duties or (b) a crime involving moral turpitude; (iii) in carrying out your duties, you engage in conduct that constitutes gross
misconduct, or gross neglect and that, in either case, results in economic or reputational harm to the Company or its future business
prospects, or which otherwise materially impairs your ability to effectively carry out your duties hereunder; (iv) your material
violation of this Agreement or any material Company policy and failure to cure such violation within fifteen (15) business days
of receipt of written notice thereof from the Company if such default is curable in the reasonable discretion of the Company;
or (v) your refusal to perform or repeated failure to undertake good faith efforts to perform, the duties or responsibilities
reasonably assigned to you, in either case after failure to cure such violation within fifteen (15) business days of receipt of
written notice thereof from the Company if such default is curable in the reasonable discretion of the Company.

 

Consideration.
You acknowledge: (i) the sufficiency of the consideration for this Agreement generally and specifically for the release of your
claims; and (ii) that such payment is being made to you because of your agreement to fulfill the promises and to provide the releases
that are stated herein.

 

No
Other Claims. Except for the payments expressly set forth herein, no other payment or other benefits shall be made or provided
by the Company to you. You acknowledge that you have no ownership of or entitlement to, nor any right to, make any claim for any
additional payments, benefits, stock options (whether granted, vested or nonvested) or any other form of equity compensation or
terms with respect to equity compensation, or compensation of any kind or nature whatsoever by the Company; provided that all
restricted stock and option grants previously issued to you by the Company shall continue in full force and effect in accordance
with their terms.

 

Release.
In consideration for the promises made herein, you hereby irrevocably and unconditionally release and forever discharge, for yourself
and for your heirs, executors, administrators, successors and assigns, the Company, its affiliates and each of their respective
(i) subsidiaries, predecessors and successors, and (ii) past and present directors, officers, management committees, members,
agents, employees, representatives, consultants, attorneys, shareholders, benefit plan fiduciaries and administrators, and assigns,
and all persons acting by, through, under, or in concert with any of them (collectively, “the Company Releasees”),
from any and all rights, claims, charges, causes of action, liabilities, costs and damages, known or unknown, suspected or not,
fixed or contingent, and in law or in equity, which you now have, or may ever have had, concerning, relating to, or arising out
of, directly or indirectly, the Employment Agreement that arose at any time regarding any matter up to and including the date
of this Agreement.

 

    	- 3 -

    	 

    

 

This
Release expressly includes, but is not limited to, all claims and any obligations or causes of action arising from such claims,
under common law including wrongful or retaliatory discharge, breach of contract or public policy and any action arising in tort
including libel, slander, defamation or intentional infliction of emotional distress, any claims of discrimination under federal
or state or municipal or foreign law, and any claims arising under the Civil Rights Acts of 1866 and 1867, Title VII of the Civil
Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, the Older Worker Benefit Protection
Act, the Employee Retirement Income Security Act, the Fair Labor Standards Act, the Family and Medical Leave Act, the Americans
with Disabilities Act, the National Labor Relations Act, Workers’ Compensation law, the Rehabilitation Act, the Equal Pay
Act, the Pennsylvania Statutes, the Pennsylvania Code, Pennsylvania Labor Law, the Pennsylvania Human Relations Act, the Pennsylvania
Whistleblower Law, the Pennsylvania Wage Payment & Collection Act, the Pennsylvania Minimum Wage Act, the Pennsylvania Equal
Pay Act and/or any and all similar federal, state, municipal, local or foreign laws that are in any way related to employment
and/or the termination thereof.

 

This
Release applies to federal, state or local laws, civil rights laws, wage-hour, wage-payment, pension or labor laws, rules and/or
regulations, constitutions, ordinances, public policy, contract or tort laws, or any claim arising under common law, or any other
action based upon any conduct occurring up to and including the date you sign the Agreement.

 

You
further acknowledge that you fully understand that you are waiving any right you may have to sue the Company Releasees for any
of the claims you have released, or to receive any compensation, damages or settlement arising as a result of any action, claim,
lawsuit, charge or complaint commenced by anyone else against the Company Releasees.

 

The
provisions of any laws providing in substance that releases shall not extend to claims which are unknown or unsuspected at the
time to the person executing such waiver or release are hereby expressly waived by you.

 

Indemnification.
The Company shall indemnify, defend and hold you harmless from and against all claims, losses, damages, expense or liabilities,
including expenses of defense and settlement, and advancement of defense costs as such costs are incurred, (collectively, “Indemnified
Losses”) to the fullest extent allowable by law and as provided in any of the Company by-laws, charter, any indemnification
agreement with you, or as otherwise agreed between the parties and under any applicable laws, where such claims or Indemnified
Losses are based upon or in any way arise from or are connected with your employment or your service as an officer or director
of the Company or any affiliate. To the fullest extent permitted by law, the Company shall timely advance to or on behalf of you
all expenses incurred in connection with the defense of any indemnified action or claim pursuant to this paragraph. The Company
shall investigate in good faith the availability and cost of directors’ and officers’ insurance and shall include
you as an insured in any directors’ and officers’ insurance policy it maintains. The provisions of this paragraph
shall survive any termination or expiration of this Agreement.

 

Legal
Representation. You acknowledge and represent that you have had ample opportunity to receive the advice of independent legal
counsel prior to the execution of this Agreement, and the Company advises you to do so. You further acknowledge and represent
that you are entering into this Agreement completely freely and voluntarily.

 

    	- 4 -

    	 

    

 

Non-Disparagement.
As a material inducement to the Company to enter into this Agreement, the Company and you mutually agree that each of you will
not make any (i) false, negative, critical, harmful, defamatory or disparaging comments about the one another, the Company or
any of the Company Releasees or (ii) comments that could cause harm to the business of one another, the Company or any of its
affiliates. This paragraph applies to comments made verbally, in writing, electronically or by any other means, including, but
not limited to blogs, postings, message boards, texts, video or audio files and all other forms of communication.

 

Other
Agreements. This Agreement supersedes your Employment Agreement, understandings, representations, negotiations, or discussions,
either oral or in writing, or express or implied, between you and the Company and/or its employees, agents or representatives.
This Agreement constitutes the full, complete, and exclusive agreement between you and the Company with respect to the subject
matter discussed herein. For the avoidance of doubt, the parties agree that the indemnity agreement between you and the Company
remains in full force and effect and is not terminated, modified or released by this Agreement. This Agreement cannot be changed
unless in writing signed by both parties. Email correspondence does not constitute a writing for the purposes of this provision.

 

Waiver.
No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether
or not similar. No waiver shall constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party
charged with the waiver.

 

Severability.
In the event any provision of this Agreement shall be determined to be unlawful, such provision shall be deemed to be severed
from this Agreement and every other provision of this Agreement shall remain in full force and effect. However, in the event a
court of competent jurisdiction finds the release and covenants provided for in this Agreement to be illegal, void or unenforceable,
you agree, at the Company’s option, to execute a release, waiver and/or covenant that is legal and enforceable to effectuate
the terms of this Agreement.

 

Governing
Law. This Agreement is made and entered into in the State of Pennsylvania, and shall in all respects be interpreted, enforced,
and governed by and continued and enforced in accordance with the internal substantive laws (and not the laws of choice of laws)
of the State of Pennsylvania applicable to contracts entered into and to be performed in Pennsylvania. The parties agree that
any dispute arising under this Agreement shall be determined by binding arbitration before the American Arbitration Association
(“AAA”) under the AAA’s commercial arbitration rules. Such arbitration shall be conducted in New York, New York,
before a single, impartial arbitrator selected by the AAA; provided, however, the parties may mutually agree after the commencement
of a proceeding to hold the arbitration in another jurisdiction. In any such arbitration, the Company shall bear and shall be
solely responsible for the costs and fees imposed by the AAA and the arbitrator. The parties agree to abide by all decisions and
awards rendered in such proceedings. All decisions and awards rendered by the arbitrator shall be final, binding and conclusive.
Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof, and the parties consent
to the non-exclusive jurisdiction of the federal and state courts in New York and Pennsylvania for this purpose. If at the time
any dispute or controversy arises with respect to this Agreement the AAA is no longer providing arbitration services, then JAMS
shall be substituted for the AAA for purposes of this paragraph, and the arbitration will be conducted in accordance with the
then-existing and applicable rules and procedures of JAMS.

 

    	- 5 -

    	 

    

 

In
accordance with the Older Worker Benefit Protection Act, you may revoke your consent to this Agreement for a period of seven (7)
days following your signing of this Agreement. The parties agree the revocation shall be effective only if an originally executed
written notice of revocation is delivered to the headquarters of the Company on or before 5 p.m. on the seventh day after the
date you execute this Agreement. This Agreement does not become effective or enforceable until this seven-day revocation period
has expired.

 

The
Company’s offer regarding the Separation Payment will expire as follows: the Company will not pay to you the Termination
Payment or provide you with any other benefit based upon this Agreement which is not signed by you and physically delivered to
the Company, or postmarked, by twenty-one (21) days from the date of this letter.

 

Kindly
indicate your acceptance of this Agreement by signing a copy of this letter and returning it to me.

 

	 	Sincerely,
	 	 
	 	/s/
    Ted Karkus 
	 	Ted
    Karkus

 

ACKNOWLEDGED
AND AGREED:

 

	/s/
    Robert V. Cuddihy, Jr.	 
	Robert
    V. Cuddihy, Jr.	 

 

Dated:
April 17, 2017

 

    	- 6 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00269-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00269-of-00352.parquet"}]]