Document:

EX-4.4

 Exhibit 4.4 

EXECUTION VERSION 
  

 
 INTERCREDITOR AGREEMENT 

dated as of 
 April 16, 2014

 among 
 MCDERMOTT
INTERNATIONAL, INC., 
 as the Parent and a Company, 

MCDERMOTT FINANCE L.L.C. 
 as a
Company, 
 certain Subsidiaries of Parent party hereto, 

CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, 

as First Priority Agent 
 and 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Second Priority Agent 
  

 
 THIS IS THE INTERCREDITOR AGREEMENT REFERRED TO
IN (A) THE INDENTURE DATED AS OF APRIL 16, 2014, AS AMENDED, SUPPLEMENTED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME, AMONG MCDERMOTT INTERNATIONAL, INC., CERTAIN OF ITS SUBSIDIARIES FROM TIME TO TIME PARTY THERETO AND WELLS FARGO BANK,
NATIONAL ASSOCIATION, AS TRUSTEE AND COLLATERAL AGENT, (B) THE CREDIT AGREEMENT DATED AS OF APRIL 16, 2014, AS AMENDED, SUPPLEMENTED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME, AMONG MCDERMOTT INTERNATIONAL, INC., MCDERMOTT FINANCE
L.L.C., THE LENDERS AND ISSUERS FROM TIME TO TIME PARTY THERETO AND CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, AS ADMINISTRATIVE AGENT AND COLLATERAL AGENT, (C) THE OTHER LOAN DOCUMENTS REFERRED TO IN SUCH CREDIT AGREEMENT AND
(D) THE OTHER COLLATERAL AGREEMENTS REFERRED TO IN SUCH INDENTURE. 
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE I. Definitions
	  	 	2	  
			
	 Section 1.1.
	  	Certain Defined Terms	  	 	2	  
	 Section 1.2.
	  	Other Defined Terms	  	 	2	  
	 Section 1.3.
	  	Terms Generally	  	 	8	  
		
	 ARTICLE II. Lien Priorities
	  	 	9	  
			
	 Section 2.1.
	  	Relative Priorities	  	 	9	  
	 Section 2.2.
	  	Prohibition on Contesting Liens	  	 	9	  
	 Section 2.3.
	  	No New Liens	  	 	9	  
	 Section 2.4.
	  	Similar Collateral	  	 	10	  
		
	 ARTICLE III. Enforcement of Rights; Matters Relating to Collateral
	  	 	10	  
			
	 Section 3.1.
	  	Exercise of Rights and Remedies; Option to Purchase	  	 	10	  
	 Section 3.2.
	  	No Interference	  	 	12	  
	 Section 3.3.
	  	Rights as Unsecured Creditors	  	 	15	  
	 Section 3.4.
	  	Automatic Release of Second Priority Liens	  	 	15	  
	 Section 3.5.
	  	Release of First Priority Liens	  	 	16	  
	 Section 3.6.
	  	Insurance and Condemnation Awards	  	 	16	  
	 Section 3.7.
	  	Notification of Release of Collateral	  	 	17	  
		
	 ARTICLE IV. Payments
	  	 	17	  
			
	 Section 4.1.
	  	Application of Proceeds	  	 	17	  
	 Section 4.2.
	  	Payment Over	  	 	17	  
	 Section 4.3.
	  	Certain Agreements with Respect to Unenforceable Liens	  	 	18	  
		
	 ARTICLE V. Bailment for Perfection of Certain Security Interests
	  	 	18	  
		
	 ARTICLE VI. Insolvency or Liquidation Proceedings
	  	 	19	  
			
	 Section 6.1.
	  	Finance and Sale Matters	  	 	19	  
	 Section 6.2.
	  	Relief from the Automatic Stay	  	 	22	  
	 Section 6.3.
	  	Reorganization Securities	  	 	22	  
	 Section 6.4.
	  	Post-Petition Interest	  	 	22	  
	 Section 6.5.
	  	Certain Waivers by the Second Priority Secured Parties	  	 	23	  
	 Section 6.6.
	  	Certain Voting Matters	  	 	23	  
		
	 ARTICLE VII. Other Agreements
	  	 	23	  
			
	 Section 7.1.
	  	Matters Relating to Debt Documents	  	 	23	  

  
 i 

							
	 Section 7.2.
	  	Effect of Refinancing of Indebtedness under First Priority Debt Documents	  	 	24	  
	 Section 7.3.
	  	No Waiver by First Priority Secured Parties	  	 	24	  
	 Section 7.4.
	  	Reinstatement	  	 	24	  
	 Section 7.5.
	  	Authorization of Collateral Agents	  	 	25	  
	 Section 7.6.
	  	Automatic Amendments to Second Priority Security Documents	  	 	25	  
	 Section 7.7.
	  	Further Assurances	  	 	25	  
		
	 ARTICLE VIII. Representations and Warranties
	  	 	26	  
			
	 Section 8.1.
	  	Representations and Warranties of Each Party	  	 	26	  
	 Section 8.2.
	  	Representations and Warranties of Each Collateral Agent	  	 	26	  
		
	 ARTICLE IX. No Reliance; No Liability; Obligations Absolute
	  	 	26	  
			
	 Section 9.1.
	  	No Reliance; Information	  	 	26	  
	 Section 9.2.
	  	No Warranties or Liability	  	 	27	  
	 Section 9.3.
	  	Obligations Absolute	  	 	28	  
	 Section 9.4.
	  	No Impairment of Security Interests	  	 	28	  
		
	 ARTICLE X. Miscellaneous
	  	 	28	  
			
	 Section 10.1.
	  	Notices	  	 	28	  
	 Section 10.2.
	  	Conflicts	  	 	29	  
	 Section 10.3.
	  	Effectiveness; Survival; Termination	  	 	29	  
	 Section 10.4.
	  	Severability	  	 	30	  
	 Section 10.5.
	  	Amendments; Waivers	  	 	30	  
	 Section 10.6.
	  	Postponement of Subrogation	  	 	30	  
	 Section 10.7.
	  	Applicable Law; Jurisdiction; Consent to Service of Process	  	 	31	  
	 Section 10.8.
	  	Waiver of Jury Trial	  	 	31	  
	 Section 10.9.
	  	Parties in Interest	  	 	31	  
	 Section 10.10.
	  	Specific Performance	  	 	32	  
	 Section 10.11.
	  	Headings	  	 	32	  
	 Section 10.12.
	  	Counterparts	  	 	32	  
	 Section 10.13.
	  	Provisions Solely to Define Relative Rights	  	 	32	  

  
 ii 

 INTERCREDITOR AGREEMENT dated as of April 16, 2014 (this
“Agreement”), among MCDERMOTT INTERNATIONAL, INC., a Panamanian corporation (the “Parent”), MCDERMOTT FINANCE L.L.C., a Delaware limited liability company (the “Term Borrower”
and together with the Parent, collectively, the “Companies” and each, a “Company”), the Subsidiaries of the Parent party hereto, CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as collateral
agent for the First Priority Secured Parties (as defined below) (in such capacity and together with any successor or assigns, the “First Priority Agent”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as collateral agent for
the Second Priority Secured Parties (as defined below) (in such capacity and together with any successor or assigns, the “Second Priority Agent”). 

PRELIMINARY STATEMENT 

Reference is made to (a) the Credit Agreement dated as of April 16, 2014 (as amended, supplemented, restated or otherwise modified
from time to time in accordance with the terms hereof, the “First Priority Debt Agreement”), among the Companies, the lenders and issuers from time to time party thereto (the “First Priority
Creditors”), Crédit Agricole Corporate and Investment Bank, as administrative agent and the First Priority Agent, (b) the Indenture dated as of April 16, 2014 (as amended, supplemented, restated or otherwise modified
from time to time in accordance with the terms hereof, the “Second Priority Debt Agreement” and, together with the First Priority Debt Agreement, the “Debt Agreements”) among the Parent, certain of the
Parent’s subsidiaries, Wells Fargo Bank, National Association, as Trustee (in such capacity, the “Second Priority Trustee”) and the Second Priority Agent, (c) the First Lien Pledge and Security Agreement dated as of
April 16, 2014 (as amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof, the “First Priority Security Agreement”) among the Companies, certain of the Parent’s
subsidiaries and the First Priority Agent, (d) the Second Lien Pledge and Security Agreement dated as of April 16, 2014 (as amended, supplemented, restated or otherwise modified from time to time in accordance with the terms hereof, the
“Second Priority Security Agreement”) among the Parent, certain of the Parent’s subsidiaries and the Second Priority Agent, (e) the other Loan Documents as defined, and referred to, in the First Priority Debt
Agreement and (f) the other Collateral Agreements as defined, and referred to, in the Second Priority Debt Agreement. 
 RECITALS

 A. The First Priority Creditors have agreed to make loans and other extensions of credit to the Companies pursuant to the First
Priority Debt Agreement on the condition, among others, that the First Priority Claims (such term and each other capitalized term used but not defined in the preliminary statement or these recitals having the meaning given to it in Article I) shall
be secured by first priority Liens on, and security interests in, the Collateral. 
 B. The Second Priority Creditors have agreed to purchase
and/or hold the notes issued by the Parent from time to time pursuant to the Second Priority Debt Agreement on the condition, among others, that the Second Priority Claims shall be secured by second priority Liens on, and security interests in, the
Collateral. 

 C. The Debt Agreements require, among other things, that the parties thereto set forth in this
Agreement, among other things, their respective rights, obligations and remedies with respect to the Collateral. 
 Accordingly, the parties
hereto agree as follows: 
 ARTICLE I. 

DEFINITIONS 

Section 1.1. Certain Defined Terms. Capitalized terms used in this Agreement and not otherwise defined herein shall, except
to the extent the context otherwise requires, have the meanings set forth in the First Priority Debt Agreement (as in effect on the date hereof) or the First Priority Security Agreement (as in effect on the date hereof), as applicable. 

Section 1.2. Other Defined Terms. As used in the Agreement, the following terms shall have the meanings specified below:

 “Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy,” as now and
hereinafter in effect, or any successor statute. 
 “Bankruptcy Law” shall mean the Bankruptcy Code and any other
Federal, state or foreign bankruptcy, insolvency, receivership or similar law. 
 “Capital Stock” shall mean: 

(1) in the case of a corporation, corporate stock; 

(2) in the case of an association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock; 
 (3) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited); and 
 (4) any other interest or participation that confers
on a person or entity the right to receive a share of the profits and losses of, or distributions of assets of, another person or entity that has issued such interest or participation. 

“Collateral” shall mean, collectively, all “Collateral”, as defined in each of the First Priority Debt
Agreement or any other First Priority Debt Document and the Second Priority Debt Agreement or any other Second Priority Debt Document. 

“Collateral Agents” shall mean the First Priority Agent and the Second Priority Agent. 

“Companies” and “Company” shall have the meaning assigned to such term in the preliminary
statement to this Agreement. 

  
 2 

 “Debt Agreements” shall have the meaning assigned to such term in the
preliminary statement of this Agreement. 
 “Debt Documents” shall mean the First Priority Debt Documents and the
Second Priority Debt Documents. 
 “DIP Financing” shall have the meaning assigned to such term in
Section 6.1(a). 
 “DIP Financing Liens” shall have the meaning assigned to such term in Section 6.1(a).

 “Discharge of First Priority Claims” shall mean, subject to Sections 7.2 and 7.4, the occurrence of all of the
following: 
 (a) termination or expiration of all commitments to extend credit that would constitute First Priority Claims; 

(b) payment in full in cash of the principal of and interest and premium (if any) on all First Priority Claims (other than any undrawn Letters
of Credit but including interest accruing during the pendency of any Insolvency or Liquidation Proceeding, regardless of whether allowed or allowable in such Insolvency or Liquidation Proceeding); 

(c) discharge or cash collateralization (at the lower of (i) 105% of the aggregate undrawn amount and (ii) the percentage as may be
agreed to by applicable issuer of such Letters of Credit) of all outstanding Letters of Credit constituting First Priority Claims on terms satisfactory to the applicable issuer of such Letters of Credit; 

(d) payment of Hedging Obligations constituting First Priority Claims (and, with respect to any particular Hedge Agreement, termination of such
position and agreements evidencing such position and payment in full in cash of all obligations thereunder or such other arrangements as have been made by the counterparty thereto and communicated to the First Priority Agent); and 

(e) payment in full in cash of all other First Priority Claims (other than inchoate contingent indemnification or expense reimbursement
obligations) that are outstanding and unpaid. 
 “Discharge of Second Priority Claims” shall mean, subject to
Section 7.4, (a) payment in full in cash of the principal of and interest (including interest accruing during the pendency of any Insolvency or Liquidation Proceeding, regardless of whether allowed or allowable in such Insolvency or
Liquidation Proceeding) and premium, if any, on all Indebtedness outstanding under the Second Priority Debt Documents to the extent constituting Second Priority Claims and (b) payment in full of all First Priority Claims acquired by the Second
Priority Agent and/or any of the Second Priority Secured Parties as contemplated by Section 10.6 hereof. 

“Disposition” shall mean any sale, lease, exchange, transfer or other disposition. “Dispose”
shall have a correlative meaning. 

  
 3 

 “First Priority Agent” shall have the meaning assigned to such term in
the preamble to this Agreement. 
 “First Priority Claims” shall mean (1) all Indebtedness under the First
Priority Debt Documents and all other Obligations (other than principal) related to such Indebtedness and owing under the First Priority Debt Documents (including all reimbursement obligations (if any) and interest thereon with respect to any
Letters of Credit or similar instruments issued pursuant to the First Priority Debt Documents), including any guarantees of the foregoing, to the extent the foregoing is incurred (and permitted to be incurred) pursuant to clause (1) of the
definition of “Permitted Indebtedness” of the Second Priority Debt Agreement and to the extent purportedly secured by the Collateral, (2) all Hedging Obligations to the extent such obligations are secured under the First Priority Debt
Documents and (3) all Treasury Management Obligations to the extent such obligations are secured under the First Priority Debt Documents, in each case whether accrued or incurred before or after the commencement of an Insolvency or Liquidation
Proceeding, and whether or not allowed or allowable in such proceeding. 
 “First Priority Collateral” shall mean
all “Collateral”, as defined in the First Priority Debt Agreement or any other First Priority Debt Document, and any other assets of any Grantor now or at any time hereafter subject to Liens which secure, but only to the extent securing,
any First Priority Claim. 
 “First Priority Creditors” shall have the meaning assigned to such term in the
preliminary statement of this Agreement. 
 “First Priority Debt Agreement” shall have the meaning assigned to such
term in the preliminary statement of this Agreement. 
 “First Priority Debt Documents” shall mean the “Loan
Documents”, as defined in the First Priority Debt Agreement. 
 “First Priority Liens” shall mean all Liens on
the First Priority Collateral to the extent such Liens secure the First Priority Claims, whether created under the First Priority Security Documents or acquired by possession, statute (including any judgment lien), operation of law, subrogation or
otherwise. 
 “First Priority Mortgages” shall mean, collectively, each mortgage, deed of trust, leasehold mortgage,
assignment of leases and rents, modifications and any other agreement, document or instrument pursuant to which a Lien on real property is granted by any Grantor to secure any First Priority Claims or under which rights or remedies with respect to
any such Lien are governed. 
 “First Priority Secured Parties” shall mean, at any time, (a) the First Priority
Creditors, (b) the First Priority Agent, (c) each other Person to whom any of the First Priority Claims is owed (including any Affiliate of a First Priority Creditor to whom any First Priority Claims of the type described in clause
(2) or clause (3) of the definition thereof is owed) and (d) the successors and assigns of each of the foregoing. 

  
 4 

 “First Priority Security Agreement” shall have the meaning assigned to
such term in the preliminary statement of this Agreement. 
 “First Priority Security Documents” shall mean the
First Priority Debt Agreement, the First Priority Mortgages, the First Priority Security Agreement and any other agreement, document or instrument pursuant to which a Lien is granted by any Grantor to secure any First Priority Claims or under which
rights or remedies with respect to any such Lien are governed. 
 “Grantors” shall mean the Parent and each
Subsidiary that shall have created or purported to create any First Priority Lien or Second Priority Lien on all or any part of its assets to secure any First Priority Claims or any Second Priority Claims. 

“Guarantors” shall mean, collectively, each Subsidiary that shall have guaranteed any First Priority Claims or any
Second Priority Claims, whether by executing and delivering the applicable Debt Agreement, or a separate guaranty thereof, or a supplement thereto, or otherwise. 

“Hedging Obligations” of any Person shall mean the obligations of such Person under option, swap, cap, collar, forward
purchase or similar agreements or arrangements intended to manage exposure to interest rates or currency exchange rates or commodity prices, either generally or under specific contingencies. 

“Indebtedness” shall mean and includes all obligations that constitute “Indebtedness”, as defined in the
First Priority Debt Agreement or the Second Priority Debt Agreement, as applicable. 
 “Insolvency or Liquidation
Proceeding” shall mean (a) any voluntary or involuntary proceeding under the Bankruptcy Code or any other Bankruptcy Law with respect to any Grantor, (b) any voluntary or involuntary appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for any Grantor or for a substantial part of the property or assets of any Grantor, (c) any voluntary or involuntary winding-up or liquidation of any Grantor, or (d) a general
assignment for the benefit of creditors by any Grantor. 
 “Issue Date” shall mean the date on which the notes under
the Second Priority Debt Documents are originally issued. 
 “Letter of Credit” shall have the meaning assigned to
such term in the First Priority Debt Agreement. 
 “Lien” shall mean, with respect to any asset, any mortgage, deed
of trust, lien (statutory or other), pledge, lease, easement, restriction, covenant, charge, security interest or other encumbrance of any kind or nature in respect of such asset, whether or not filed, recorded or otherwise perfected under
applicable law, including any conditional sale or other title retention agreement; provided, however, that for the avoidance of doubt, the interest of a Person as owner or lessor under charters or leases of property shall not
constitute “Liens” on or in respect of such property. 

  
 5 

 “Liquidation Sale” shall mean a so-called bulk sale, liquidation sale or
“going out of business sale” conducted either by any Secured Party or a Grantor in respect to all or a substantial portion of such Grantor’s Collateral following the occurrence and during the continuance of an Event of Default under,
and as defined in, either the First Priority Debt Documents or Second Priority Debt Documents. 
 “New First Priority
Agent” shall have the meaning assigned to such term in Section 7.2. 
 “New First Priority Claims”
shall have the meaning assigned to such term in Section 7.2. 
 “New First Priority Debt Documents” shall have
the meaning assigned to such term in Section 7.2. 
 “Obligations” means any principal, interest, penalties,
fees, indemnification, reimbursements, costs, expenses, damages and other liabilities payable under the documentation governing any Indebtedness. 

“Parent” shall have the meaning assigned to such term in the preliminary statement to this Agreement. 

“Person” means any individual, corporation, partnership, limited liability company, joint venture, incorporated or
unincorporated association, joint-stock company, trust, mutual fund trust or government or other agency or political subdivision thereof or other legal entity of any kind. 

“Pledged or Controlled Collateral” shall have the meaning assigned to such term in Article V. 

“Refinance” shall mean, in respect of any Indebtedness, to refinance, extend, renew, restructure (including by the
amendment and restatement of any instrument or agreement evidencing such Indebtedness) or replace or to issue other Indebtedness in exchange or replacement for, such Indebtedness, in whole or in part. “Refinanced” and
“Refinancing” shall have correlative meanings. 
 “Refinancing Notice” shall have the
meaning assigned to such term in Section 7.2. 
 “Release” shall have the meaning assigned to such term in
Section 3.4. 
 “Second Priority Agent” shall have the meaning assigned to such term in the preamble to this
Agreement. 
 “Second Priority Claims” shall mean all Obligations of the Parent and the Guarantors arising under the
Second Priority Debt Documents plus interest and all fees, costs, charges and expenses, including legal fees and expenses payable by the Parent or any of the Guarantors thereunder, in each case whether accrued or incurred before or after the
commencement of an Insolvency or Liquidation Proceeding, and whether or not allowed or allowable in such proceeding; provided that the term “Second Priority Claims” shall only include Obligations relating to any additional notes
under the Second Priority Debt Documents that are actually issued to the extent the issuance of such additional notes was permitted under the Second Priority Debt Agreement. 

  
 6 

 “Second Priority Collateral” shall mean all “Collateral”, as
defined in any Second Priority Debt Document, and any other assets of any Grantor now or at any time hereafter subject to Liens which secure, but only to the extent securing, any Second Priority Claims. 

“Second Priority Creditors” shall mean the “Holders”, as defined in the Second Priority Debt Agreement. 

“Second Priority Debt Agreement” shall have the meaning assigned to such term in the preliminary statement of this
Agreement. 
 “Second Priority Debt Documents” shall mean the “Indenture Documents”, as defined in the
Second Priority Debt Agreement. 
 “Second Priority Liens” shall mean all Liens on the Second Priority Collateral
securing the Second Priority Claims, whether created under the Second Priority Security Documents or acquired by possession, statute (including any judgment lien), operation of law, subrogation or otherwise. 

“Second Priority Mortgages” shall mean, collectively, each mortgage, deed of trust, leasehold mortgage, assignment of
leases and rents, modifications and any other agreement, document or instrument pursuant to which any Lien on real property is granted by any Grantor to secure any Second Priority Claims or under which rights or remedies with respect to any such
Lien are governed. 
 “Second Priority Permitted Actions” shall have the meaning assigned to such term in
Section 3.1(a). 
 “Second Priority Secured Parties” shall mean, at any time, (a) the Second Priority
Creditors, (b) the Second Priority Trustee, (c) the Second Priority Agent, (d) each other Person to whom any of the Second Priority Claims is owed and has agreed to the appointment of the Second Priority Agent under the terms of the
Second Priority Debt Agreement, and (e) the successors and assigns of each of the foregoing. 
 “Second Priority Security
Agreement” shall have the meaning assigned to such term in the preliminary statement of this Agreement. 
 “Second
Priority Security Documents” shall mean the “Collateral Agreements”, as defined in the Second Priority Debt Agreement, including the Second Priority Mortgages and the Second Priority Security Agreement, and any other
agreement, document or instrument pursuant to which a Lien is granted by any Grantor to secure any Second Priority Claims or under which rights or remedies with respect to any such Lien are governed. 

“Secured Parties” shall mean, as the context may require, the First Priority Secured Parties and/or the Second
Priority Secured Parties. 

  
 7 

 “Security Documents” shall mean the First Priority Security Documents and
the Second Priority Security Documents. 
 “Standstill Period” shall have the meaning assigned to such term in
Section 3.2(a). 
 “Subsidiary” shall mean, with respect to any Person, (1) any corporation, limited
liability company, association, trust or other business entity of which more than 50.0% of the total voting power of the Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of the board of directors
thereof (or the functional equivalent of the board of directors thereof) is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person (or a combination thereof) and (2) any
partnership (a) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general partners of which are such Person or of one or more Subsidiaries of such Person (or any
combination thereof). 
 “Term Borrower” shall have the meaning assigned to such term in the preliminary statement
to this Agreement. 
 “Treasury Management Arrangement” means any arrangement for credit card, cash management,
clearing house, wire transfer, depository, treasury or investment services in connection with any transfer or disbursement of funds through an automated clearinghouse or on a same day or immediate or accelerated availability basis (including all
monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise of the Parent or any of its Subsidiaries arising out of any cash management, clearing house, wire transfer,
depository, treasury or investment services) provided to the Parent or any of its Subsidiaries. The designation of any such arrangement as a Treasury Management Arrangement shall not create in favor of the counterparty that is a party thereto any
rights in connection with the management, enforcement or release of any Collateral. 
 “Treasury Management
Obligations” shall mean all Obligations in respect of Treasury Management Arrangements. 
 “Uniform Commercial
Code” or “UCC” shall mean the Uniform Commercial Code (or any similar or equivalent legislation) as in effect from time to time in any applicable jurisdiction. 

Section 1.3. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the
phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified, (b) any reference herein (i) to any Person
shall be construed to include such Person’s successors and assigns and (ii) to any Company or any other Grantor shall be construed to include such Company or such Grantor as debtor and debtor-in-possession and any receiver or trustee for
such Company or any other Grantor, as the case may be, in any Insolvency or 

  
 8 

 
Liquidation Proceeding or Liquidation Sale, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles or Sections shall be construed to refer to Articles or Sections of this Agreement and (e) the words “asset” and
“property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 

ARTICLE II. 
 LIEN
PRIORITIES 
 Section 2.1. Relative Priorities. Notwithstanding the date, manner or order of grant, attachment or
perfection of any Second Priority Lien or any First Priority Lien, and notwithstanding any provision of the UCC or any other applicable law or the provisions of any Security Document or any other Debt Document or any other circumstance whatsoever,
each Collateral Agent, for itself and on behalf of the Secured Parties on whose behalf it acts in such capacity therefor, hereby agrees that, so long as the Discharge of First Priority Claims has not occurred, (i) any First Priority Lien on any
Collateral now or hereafter held by or for the benefit of any First Priority Secured Party shall be senior in right, priority, operation, effect and all other respects to any and all Second Priority Liens on any Collateral, and (ii) any Second
Priority Lien on any Collateral now or hereafter held by or for the benefit of any Second Priority Secured Party shall be junior and subordinate in right, priority, operation, effect and all other respects to any and all First Priority Liens on any
Collateral, and the First Priority Liens on any Collateral shall be and remain senior in right, priority, operation, effect and all other respects to any Second Priority Liens on any Collateral for all purposes, whether or not any First Priority
Lien is subordinated in any respect to any other Lien securing any other Obligation of any Company, any other Grantor or any other Person. 

Section 2.2. Prohibition on Contesting Liens. Each Collateral Agent, for itself and on behalf of the other Secured Parties
on whose behalf it acts in such capacity therefor, agrees that it will not, and hereby waives any right to, contest or support any other Person in contesting, in any proceeding (including any Insolvency or Liquidation Proceeding), the priority,
validity or enforceability of any Second Priority Lien or any First Priority Lien, as the case may be; provided that nothing in this Agreement shall be construed to prevent or impair the rights of any Collateral Agent or any other Secured
Party to enforce this Agreement to the extent provided hereby. 
 Section 2.3. No New Liens. The parties hereto agree
that, so long as the Discharge of First Priority Claims has not occurred, none of the Grantors shall, nor shall any Grantor permit any of its Subsidiaries to, (i) grant or permit any additional Liens on any asset of a Grantor to secure any
Second Priority Claim unless it has granted, or concurrently therewith grants, a Lien on such asset of such Grantor to secure the First Priority Claims or (ii) grant or permit any additional Liens on any asset of a Grantor to secure any First
Priority Claims unless, to the extent permitted by applicable law, it has granted, or within 10 Business Days thereafter grants, a Lien on such asset of a Grantor to secure the Second Priority Claims, with each such Lien to be subject to the
provisions of this Agreement. To the extent that the provisions of the immediately 

  
 9 

 
preceding sentence are not complied with for any reason, without limiting any other right or remedy available to the First Priority Agent or the other First Priority Secured Parties, the Second
Priority Agent agrees, for itself and on behalf of the other Second Priority Secured Parties, that any amounts received by or distributed to any Second Priority Secured Party pursuant to or as a result of any Lien granted in contravention of this
Section 2.3 shall be subject to Section 4.2. Notwithstanding anything to the contrary contained in this Agreement, cash and cash equivalents may be pledged to secure reimbursement obligations in respect of Letters of Credit issued under
the First Priority Debt Documents (up to an aggregate amount of 105% of the aggregate undrawn amount of such Letters of Credit) without granting a Lien thereon to secure any Second Priority Claim. 

Section 2.4. Similar Collateral. The parties hereto acknowledge and agree that it is their intention that the First
Priority Collateral and the Second Priority Collateral be identical. In furtherance of the foregoing, (i) the Second Priority Agent, on behalf of itself and the other Second Priority Secured Parties hereby agrees that Second Priority Security
Documents shall be in substantially the same form as the First Priority Security Documents (other than with respect to the priority of the respective Liens on the Collateral, the control of Collateral that is perfected by control (to the extent that
such control cannot be granted to the Second Priority Agent after using commercially reasonably efforts) and the delivery of possessory Collateral, and except that such Second Priority Security Documents may omit certain representations and
covenants not customarily included in security documents for second Lien bond financings), and (ii) the parties hereto agree to cooperate in good faith in order to determine, upon any reasonable request by the First Priority Agent or the Second
Priority Agent, the specific assets included in the First Priority Collateral and the Second Priority Collateral, the steps taken to perfect the First Priority Liens and the Second Priority Liens thereon and the identity of the respective parties
obligated under the First Priority Debt Documents and the Second Priority Debt Documents in respect of the First Priority Claims and the Second Priority Claims, respectively. 

ARTICLE III. 

ENFORCEMENT OF RIGHTS; MATTERS RELATING TO COLLATERAL 

Section 3.1. Exercise of Rights and Remedies; Option to Purchase. (a) The First Priority Agent and the other First
Priority Secured Parties shall, at all times prior to the Discharge of First Priority Claims (whether or not any Insolvency or Liquidation Proceeding or Liquidation Sale has been commenced), have the exclusive right to enforce rights and exercise
remedies (including any right of setoff) with respect to the Collateral (including making determinations regarding the release, Disposition or restrictions with respect to the Collateral), or to commence or seek to commence any action or proceeding
with respect to such rights or remedies (including commencing or seeking to commence any foreclosure action or proceeding or commencing or seeking to commence any Insolvency or Liquidation Proceeding or Liquidation Sale), in each case, without any
consultation with or the consent of the Second Priority Agent or any other Second Priority Secured Party; provided that, notwithstanding the foregoing, (i) in any Insolvency or Liquidation Proceeding, Second Priority Secured Party may
file a proof of claim or statement of interest with respect to the Second Priority Claims; (ii) any Second Priority Secured Party may take any action to preserve or protect the validity and enforceability of the Second Priority Liens,
provided that no such action is (A) adverse to the 

  
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First Priority Liens or the rights of the First Priority Agent or any other First Priority Secured Party to exercise remedies in respect thereof or (B) inconsistent with the terms of this
Agreement, including the automatic release of Second Priority Liens provided in Section 3.4; (iii) the Second Priority Secured Parties may file any responsive or defensive pleadings in opposition to any motion, claim, adversary proceeding
or other pleading made by any Person objecting to or otherwise seeking the disallowance of the claims of the Second Priority Secured Parties, including any claims secured by the Collateral or otherwise make any agreements or file any motions
pertaining to the Second Priority Claims, in each case, to the extent not inconsistent with the terms of this Agreement; (iv) the Second Priority Secured Parties may exercise rights and remedies as unsecured creditors, as provided in
Section 3.3; (v) subject to Section 6.6, the Second Priority Secured Parties may vote on any plan of reorganization in any Insolvency or Liquidation Proceeding; and (vi) subject to Section 3.2, the Second Priority Agent and
the other Second Priority Secured Parties may enforce any of their rights and exercise any of their remedies with respect to the Collateral after the termination of the Standstill Period (the actions described in this proviso being referred to
herein as the “Second Priority Permitted Actions”). Except for the Second Priority Permitted Actions, unless and until the Discharge of First Priority Claims has occurred, the sole right of the Second Priority Agent and the
other Second Priority Secured Parties with respect to the Collateral shall be the right to receive the proceeds of the Collateral, if any, remaining after the Discharge of First Priority Claims has occurred and in accordance with the Second Priority
Debt Documents and applicable law. 
 (b) In exercising rights and remedies with respect to the Collateral, the First Priority Agent and the
other First Priority Secured Parties may enforce the provisions of the First Priority Debt Documents and exercise remedies thereunder, all in such order and in such manner as they may determine in their sole discretion. Such exercise and enforcement
shall include the rights of an agent appointed by them to Dispose of Collateral upon foreclosure, to incur expenses in connection with any such Disposition and to exercise all the rights and remedies of a secured creditor under applicable law. 

(c) The Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, hereby acknowledges and agrees that no
covenant, agreement or restriction contained in any Second Priority Security Document or any other Second Priority Debt Document (other than, in each case, this Agreement) shall be deemed to restrict in any way the rights and remedies of the First
Priority Agent or the other First Priority Secured Parties with respect to the Collateral as set forth in this Agreement and the other First Priority Debt Documents. 

(d) Notwithstanding anything in this Agreement to the contrary, following the acceleration of the Indebtedness then outstanding under the First
Priority Debt Agreement, the Second Priority Creditors may (but shall not be obligated to), at their sole expense and effort, upon notice to the Parent and the First Priority Agent, require the First Priority Secured Parties to transfer and assign
to the Second Priority Creditors, without warranty or representation or recourse, all (but not less than all) of the First Priority Claims; provided that (x) such assignment shall not conflict with any law, rule or regulation or order of
any court or other Governmental Authority having jurisdiction, and (y) the Second Priority Creditors shall have paid to the First Priority Agent, for the account of the First Priority Secured Parties, in immediately available funds, an amount
equal to 100% of the principal of such Indebtedness plus all accrued and 

  
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unpaid interest thereon (including default interest) plus all accrued and unpaid fees (including legal fees and expenses) (plus all the other First Priority Claims then outstanding
(which shall include, with respect to (i) the aggregate face amount of the Letters of Credit outstanding under the First Priority Debt Documents, posting cash collateral in an amount equal to 105% thereof on terms and documentation reasonably
satisfactory to the applicable issuer of such Letter of Credit, and (ii) each hedging, cap, collar, swap or other similar agreement that has been terminated and which evidences any Hedging Obligations included in such First Priority Claims,
100% of the aggregate amount of such First Priority Claims, after giving effect to any netting arrangements, that the applicable Grantor is required to pay using the market quotation method) and (z) with respect to each hedging, cap, collar,
swap or other similar agreements that have not been terminated, the Second Priority Secured Parties shall have caused such agreements to be assigned or novated on terms and subject to documentation satisfactory to the applicable First Priority
Secured Party that is the counterparty thereto. In order to effectuate the foregoing, the First Priority Agent shall calculate, upon the written request of the Second Priority Agent from time to time, the amount in cash that would be necessary so to
purchase the First Priority Claims. If the right set forth in this Section 3.1(d) is exercised, the parties shall endeavor to close promptly thereafter but in any event within ten (10) Business Days of the request set forth in the first
sentence of this Section 3.1(d) at which time the right to purchase will expire. If the Second Priority Secured Parties exercise the right set forth in this Section 3.1(d), it shall be exercised pursuant to documentation mutually
acceptable to each of the First Priority Agent and the Second Priority Agent (acting upon the direction of the purchasing Second Priority Creditors). 

(e) In exercising rights and remedies with respect to the Collateral, the Second Priority Agent may enforce the provisions of the Second
Priority Debt Documents and exercise remedies thereunder, all in such order and in such manner as it may determine in its sole discretion, in each case, to the extent that such enforcement or exercise is not otherwise prohibited under this
Agreement. Such exercise and enforcement shall, in each case, to the extent that such enforcement or exercise is not otherwise prohibited under this Agreement, include (i) the rights of an agent appointed by it to Dispose of Collateral upon
foreclosure, to incur expenses in connection with any such Disposition and (ii) the right to exercise all the rights and remedies of a secured creditor under the Uniform Commercial Code, the Bankruptcy Code or any other Bankruptcy Law. The
Second Priority Agent agrees to provide at least ten (10) Business Days’ prior written notice to the First Priority Agent of its intention to foreclose upon or Dispose of any Collateral. 

Section 3.2. No Interference. The Second Priority Agent, for itself and on behalf of the other Second Priority Secured
Parties, agrees that, whether or not any Insolvency or Liquidation Proceeding or Liquidation Sale has been commenced, the Second Priority Secured Parties: 

(a) except for Second Priority Permitted Actions, will not, so long as the Discharge of First Priority Claims has not occurred,
(A) enforce or exercise, or seek to enforce or exercise, any rights or remedies (including any right of setoff) with respect to any Collateral (including the enforcement of any right under any account control agreement, landlord waiver or
bailee’s letter or any similar agreement or arrangement to which the Second Priority Agent or any other Second Priority Secured Party is a party) or (B) commence or join with any Person (other than the First Priority Agent) in commencing,
or petition for or vote in favor of any 

  
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resolution for, any action or proceeding with respect to such rights or remedies (including any foreclosure action); provided, however, that the Second Priority Agent may enforce or
exercise any or all such rights and remedies, or commence, join with any Person in commencing, or petition for or vote in favor of any resolution for, any such action or proceeding, after a period of 180 days has elapsed (which period shall be
tolled during any period in which the First Priority Agent shall not be entitled to enforce or exercise any rights or remedies with respect to any Collateral as a result of (x) any injunction issued by a court of competent jurisdiction or
(y) the automatic stay or any other stay in any Insolvency or Liquidation Proceeding) since the date on which the Second Priority Agent has delivered to the First Priority Agent written notice of the acceleration of the Indebtedness then
outstanding under the Second Priority Debt Agreement (the “Standstill Period”); provided further, however, that (1) notwithstanding the expiration of the Standstill Period or anything herein to the contrary, in no
event shall the Second Priority Agent or any other Second Priority Secured Party enforce or exercise any rights or remedies with respect to any Collateral, or commence, join with any Person at any time in commencing, or petition for or vote in favor
of any resolution for, any such action or proceeding, if the First Priority Agent or any other First Priority Secured Party shall have commenced, and shall be diligently pursuing (or shall have sought or requested relief from or modification of the
automatic stay or any other stay in any Insolvency or Liquidation Proceeding to enable the commencement and pursuit thereof), the enforcement or exercise of any rights or remedies with respect to any material portion of the Collateral or any such
action or proceeding (prompt written notice thereof to be given to the Second Priority Agent by the First Priority Agent) and (2) after the expiration of the Standstill Period, so long as neither the First Priority Agent nor any of the First
Priority Secured Parties have commenced any action to enforce their Lien on any material portion of the Collateral, in the event that and for so long as the Second Priority Secured Parties (or the Second Priority Agent on their behalf) have
commenced any actions to enforce their Liens with respect to any material portion of the Collateral to the extent permitted hereunder (prompt written notice thereof to be given to the First Priority Agent by the Second Priority Agent) and are
diligently pursuing such actions, neither the First Priority Secured Parties nor the First Priority Agent shall take any action of a similar nature with respect to such Collateral; provided that all other provisions of this Agreement
(including the turnover provisions of Article IV) are complied with; 
 (b) will not contest, protest or object to any foreclosure action or
proceeding brought by the First Priority Agent or any other First Priority Secured Party, or any other enforcement or exercise by any First Priority Secured Party of any rights or remedies relating to the Collateral under the First Priority Debt
Documents or an Insolvency or Liquidation Proceeding or in connection with a Liquidation Sale or otherwise, so long as Second Priority Liens attach to the proceeds thereof subject to the relative priorities set forth in Section 2.1; 

(c) will not object to the forbearance by the First Priority Agent or any other First Priority Secured Party from commencing or pursuing any
foreclosure action or proceeding or any other enforcement or exercise of any rights or remedies with respect to the Collateral; 
 (d) will
not, so long as the Discharge of First Priority Claims has not occurred and except for Second Priority Permitted Actions, take or receive any Collateral, or any proceeds thereof or payment with respect thereto, in connection with the exercise of any
right or enforcement of any remedy (including any right of setoff) with respect to any Collateral or in connection with any insurance policy award under a policy of insurance relating to any Collateral or any condemnation award (or deed in lieu of
condemnation) relating to any Collateral; 

  
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 (e) will not take, or cause to be taken any action that would, or could reasonably be expected
to, restrain, hinder, limit, delay or otherwise interfere with, in any manner and whether by judicial proceedings or otherwise, any exercise of remedies under the First Priority Debt Documents, including any Disposition of any Collateral, whether by
foreclosure or otherwise; 
 (f) will not object to the manner in which the First Priority Agent or any other First Priority Secured Party
may seek to enforce or collect the First Priority Claims or the First Priority Liens, regardless of whether any action or failure to act by or on behalf of the First Priority Agent or any other First Priority Secured Party is, or could be, adverse
to the interests of the Second Priority Secured Parties, and will not assert, and hereby waive, to the fullest extent permitted by law, any right to demand, request, plead or otherwise assert or claim the benefit of any marshalling, appraisal,
valuation or other similar right that may be available under applicable law with respect to the Collateral or any similar rights a junior secured creditor may have under applicable law; 

(g) will not attempt, directly or indirectly, whether by judicial proceeding or otherwise, to challenge or question the validity or
enforceability of any First Priority Claim or any First Priority Security Document, including this Agreement, or the validity or enforceability of the priorities, rights or obligations established by this Agreement; 

(h) will not take or cause to be taken any action the purpose or effect of which is, or could be, to make any Lien securing the Second Priority
Claims pari passu with, or to give such Second Priority Secured Party any preference or priority relative to, any First Priority Claim with respect to the Collateral or any part thereof; 

(i) will not challenge or question in any proceeding the validity or enforceability of any First Priority Claim or First Priority Debt
Document, or the validity, attachment, perfection or priority of any First Priority Lien, or the validity or enforceability of the priorities, rights or duties established by the provisions of this Agreement; 

(j) will have no right to (A) direct the First Priority Agent or any other First Priority Secured Party to exercise any right, remedy or
power with respect to any Collateral (except with respect to Collateral that is in the possession or under the control of the First Priority Agent or other First Priority Secured Party in connection with any permitted enforcement or exercise of
rights or remedies by the Second Priority Agent or any other Second Priority Secured Party against the Collateral after the end of the Standstill Period (including any tolling thereof) or (B) consent to the exercise by the First Priority Agent
or any other First Priority Secured Party of any right, remedy or power with respect to any Collateral; and 
 (k) will not institute any
suit or assert in any suit or Insolvency or Liquidation Proceeding any claim against the First Priority Agent or any other First Priority Secured Party seeking damages from or other relief by way of specific performance, instructions or otherwise
with respect to, and neither the First Priority Agent nor any other First Priority Secured Party shall be liable for, any action taken or omitted to be taken by the First Priority Agent or other First Priority Secured Party with respect to any
Collateral in a manner consistent with this Agreement. 

  
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 Section 3.3. Rights as Unsecured Creditors. The Second Priority Agent and the
other Second Priority Secured Parties may, in accordance with the terms of the Second Priority Debt Documents and applicable law, enforce rights and exercise remedies against any Grantor as unsecured creditors; provided that (i) no such
action is otherwise inconsistent with the terms of this Agreement or (ii) the Second Priority Agent and any other Second Priority Secured Parties would not otherwise be restricted or prohibited from taking such action in their respective
capacities as Second Priority Secured Parties under this Agreement. Without limiting the generality of the foregoing sentence, the Second Priority Secured Parties shall be entitled to prosecute litigation against any Grantor or any other Person
liable in respect of the Second Priority Claims, notwithstanding whether any Standstill Period is then in effect, but shall be prohibited from taking any action to enforce any judgment against the Collateral until the lapse of any applicable
Standstill Period (including any tolling thereof). Nothing in this Agreement shall prohibit the receipt by the Second Priority Agent or any other Second Priority Secured Party of the required payments of principal, premium, interest, fees and other
amounts due under the Second Priority Debt Documents so long as such receipt is not the direct or indirect result of the enforcement or exercise by the Second Priority Agent or any other Second Priority Secured Party of rights or remedies in
contravention of this Agreement (including any right of setoff) against Collateral or enforcement in contravention of this Agreement of any Second Priority Lien against Collateral (including any judgment lien resulting from the exercise of remedies
available to an unsecured creditor). 
 Section 3.4. Automatic Release of Second Priority Liens. 

(a) If, the First Priority Agent, for itself and on behalf of the other First Priority Secured Parties, (x) releases any of the First
Priority Liens or (y) releases any Guarantor from its obligations under its guarantee of the First Priority Claims (in each case, a “Release”), in each case in connection with (i) any Disposition of any Collateral
permitted under the terms of the First Priority Debt Documents, (ii) any Disposition of the Capital Stock in any Guarantor in a transaction permitted under the First Priority Debt Documents, or any transaction permitted under the terms of the
First Priority Debt Documents that otherwise results in a Guarantor ceasing to guarantee all of the First Priority Claims, other than as a result of payment thereunder and provided that no Default has occurred and is continuing under the
Second Priority Debt Agreement, or (iii) the enforcement or exercise of any rights or remedies with respect to the Collateral, including any Disposition of Collateral, other than, in each case of the foregoing clauses (i)-(iii), any such
Release granted in connection with the occurrence of the Discharge of First Priority Claims, then the Second Priority Liens on such Collateral, and the obligations of such Guarantor under its guarantee of the Second Priority Claims, shall be
automatically, unconditionally and simultaneously released, and the Second Priority Agent shall, for itself and on behalf of the other Second Priority Secured Parties, promptly execute and deliver to the First Priority Agent, the Companies or such
Guarantor, as the case may be, such termination statements, releases and other documents as the First Priority Agent, the Companies or such Guarantor, as the case may be, may reasonably request to effectively confirm such Release. 

  
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 (b) Until the Discharge of First Priority Claims occurs, the Second Priority Agent, for itself
and on behalf of each other Second Priority Secured Party, hereby appoints the First Priority Agent, and any officer or agent of the First Priority Agent, with full power of substitution, as the attorney-in-fact of each Second Priority Secured Party
for the purpose of carrying out the provisions of this Section 3.4 and taking any action and executing any instrument that the First Priority Agent may deem necessary or advisable to accomplish the purposes of this Section 3.4 (including
any endorsements or other instruments of transfer or release), which appointment is irrevocable and coupled with an interest but may only be exercised if the First Priority Agent requests that the Second Priority Agent (or applicable Second Priority
Secured Party) execute such instrument and such request is declined. 
 Section 3.5. Release of First Priority Liens. If,
in connection with the enforcement or exercise of any rights or remedies with respect to the Collateral after the expiration of the Standstill Period that is permitted in accordance with clause (2) of the second proviso to Section 3.2(a),
including any Disposition of Collateral, the Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, intends to (x) release any of the Second Priority Liens, or (y) release any Guarantor from its
obligations under its guarantee of the Second Priority Claims (in each case, a “Second Priority Release”), then, upon written notice to the First Priority Agent from the Second Priority Agent (acting at the direction of the
Second Priority Creditors) and subject to the provisos set forth below, the First Priority Agent shall, for itself and on behalf of the other First Priority Secured Parties, promptly release the First Priority Liens on such Collateral, and the
obligations of such Guarantor under its guarantee of the First Priority Claims, and the First Priority Agent shall, for itself and on behalf of the other First Priority Secured Parties, promptly execute and deliver to the Second Priority Agent, the
Companies, or such Guarantor such termination statements, releases and other documents as the Second Priority Agent, the Companies or such Guarantor may reasonably request to effectively confirm such release; provided that (i) no First
Priority Liens on such Collateral or the obligations of such Guarantor shall be released unless concurrently therewith, the applicable Second Priority Release is effectuated, and (ii) so long as the Discharge of First Priority Claims has not
occurred, the proceeds of, or payments with respect to, any Second Priority Release that are received by the Second Priority Agent or any other Second Priority Secured Party, shall be segregated and held in trust and forthwith transferred or paid
over to the First Priority Agent for the benefit of the First Priority Secured Parties in accordance with Section 4.2. 
 Section 3.6.
Insurance and Condemnation Awards. So long as the Discharge of First Priority Claims has not occurred, the First Priority Agent and the other First Priority Secured Parties shall have the exclusive right, subject to the rights of the
Grantors under the First Priority Debt Documents, to settle and adjust claims in respect of Collateral under policies of insurance covering Collateral and to approve any award granted in any condemnation or similar proceeding, or any deed in lieu of
condemnation, in respect of the Collateral. All proceeds of any such policy and any such award, or any payments with respect to a deed in lieu of condemnation, shall (a) first, prior to the Discharge of First Priority Claims and subject to the
rights of the Grantors under the First Priority Debt Documents, be paid to the First Priority Agent for the benefit of First Priority Secured Parties pursuant to the terms of the First Priority Debt Documents, (b) second, after the Discharge of
First Priority Claims and subject to the rights of the Grantors under the Second Priority Debt Documents, be paid to the Second Priority Agent for the benefit of the Second Priority Secured Parties pursuant to the terms of the Second Priority

  
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Debt Documents, and (c) third, be paid to the owner of the subject property or as a court of competent jurisdiction may otherwise direct. Until the Discharge of First Priority Claims has
occurred, if the Second Priority Agent or any other Second Priority Secured Party shall, at any time, receive any proceeds of any such insurance policy or any such award or payment, it shall transfer and pay over such proceeds to the First Priority
Agent in accordance with Section 4.2. 
 Section 3.7. Notification of Release of Collateral. Each of the First
Priority Agent and the Second Priority Agent shall give the other prompt written notice of the Disposition or Release by it of the Lien on any Collateral. Such notice shall describe in reasonable detail the subject Collateral, the parties involved
in such Disposition or Release, the place, time manner and method thereof, and the consideration, if any, received therefor; provided, however, that the failure to give any such notice shall not in and of itself in any way impair the
effectiveness of any such Disposition or Release. 
 ARTICLE IV. 

PAYMENTS 

Section 4.1. Application of Proceeds. Any Collateral or proceeds thereof received by any Secured Party in connection with
any Disposition of, or collection on, such Collateral upon the enforcement or exercise of any right or remedy (including any right of setoff or the release of liens in respect of any Disposition of Collateral) will be applied as follows: 

first, to the payment of costs and expenses of the First Priority Agent, Second Priority Agent, and other Secured
Parties in connection with such enforcement or exercise to the extent such enforcement or exercise is not prohibited under this Agreement, 

second, after all such costs and expenses have been paid in full in cash, to the payment of and other provision
(including cash collateralization) for the First Priority Claims in accordance with the First Priority Debt Documents; and 

third, after all such costs and expenses and First Priority Claims have been paid in full in cash and the Discharge of
First Priority Claims has occurred, to the payment of the Second Priority Claims in accordance with the Second Priority Debt Documents. 

After all such costs and expenses and First Priority Claims and Second Priority Claims have been paid in full in cash, any surplus Collateral
or proceeds then remaining will be returned to the applicable Company, the applicable Guarantor or to whosoever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct. 

Section 4.2. Payment Over. So long as the Discharge of First Priority Claims has not occurred, any Collateral or any
proceeds thereof (and any assets or proceeds subject to Liens referred to in the penultimate sentence of Section 2.3) received by the Second Priority Agent or any other Second Priority Secured Party, including in connection with any Disposition
of, or collection on, such Collateral upon the enforcement or the exercise of any right or remedy (including any right of setoff) with respect to the Collateral, or in connection with any insurance 

  
 17 

 
policy claim or any condemnation award (or deed in lieu of condemnation) with respect to the Collateral, shall be segregated and held in trust and forthwith transferred or paid over to the First
Priority Agent for the benefit of the First Priority Secured Parties in the same form as received, together with any necessary endorsements, or as a court of competent jurisdiction may otherwise direct. Until the Discharge of First Priority Claims
occurs, the Second Priority Agent, for itself and on behalf of each other Second Priority Secured Party, hereby appoints the First Priority Agent, and any officer or agent of the First Priority Agent, with full power of substitution, the
attorney-in-fact of each Second Priority Secured Party for the purpose of carrying out the provisions of this Section 4.2 and taking any action and executing any instrument that the First Priority Agent may deem necessary or advisable to
accomplish the purposes of this Section 4.2, which appointment is irrevocable and coupled with an interest. 
 Section 4.3.
Certain Agreements with Respect to Unenforceable Liens. Notwithstanding anything to the contrary contained herein, if in any Insolvency or Liquidation Proceeding a determination is made that any Lien encumbering any Collateral is not
enforceable for any reason, then the Second Priority Agent for itself and on behalf of each other Second Priority Secured Party agrees that, any distribution or recovery they may receive with respect to, or allocable to, the value of the assets
constituting Collateral subject to an enforceable Lien in favor of the Second Priority Secured Parties or any proceeds thereof shall (for so long as the Discharge of First Priority Claims has not occurred) be segregated and held in trust and
forthwith paid over to the First Priority Agent for the benefit of the First Priority Secured Parties in the same form as received but with any necessary endorsements or as a court of competent jurisdiction may otherwise direct. Until the Discharge
of First Priority Claims occurs, the Second Priority Agent, for itself and on behalf of each other Second Priority Secured Party, hereby appoints the First Priority Agent, and any officer or agent of the First Priority Agent, with full power of
substitution, the attorney-in-fact of each Second Priority Secured Party for the limited purpose of carrying out the provisions of this Section 4.3 and taking any action and executing any instrument that the First Priority Agent may deem
necessary or advisable to accomplish the purposes of this Section 4.3, which appointment is irrevocable and coupled with an interest. 

ARTICLE V. 
 BAILMENT
FOR PERFECTION OF CERTAIN SECURITY INTERESTS 
 (a) The parties agree that if the First Priority Agent shall at any time hold a First
Priority Lien on any Collateral that can be perfected or the priority of which can be enhanced by the possession or control of such Collateral or of any account in which such Collateral is held, and if such Collateral or any such account is in fact
in the possession or under the control of the First Priority Agent, or of agents or bailees of the First Priority Agent (such Collateral being referred to herein as the “Pledged or Controlled Collateral”), the First Priority
Agent shall, solely for the purpose of perfecting the Second Priority Liens granted under the Second Priority Debt Documents and subject to the terms and conditions of this Article V, also (i) hold and/or maintain control of such Pledged or
Controlled Collateral as gratuitous bailee for and representative (as defined in Section 1-201(35) of the Uniform Commercial Code as in effect in the State of New York) of, or as agent for, the Second Priority Agent, (ii) with respect to
any securities accounts included in the Collateral, have “control” (within the meaning of Section 8-106(d)(3) of the UCC) of such securities accounts on behalf of the Second Priority Agent and (iii) with respect to any deposit
accounts included in the Collateral, act as agent for the Second Priority Agent. 

  
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 (b) So long as the Discharge of First Priority Claims has not occurred, the First Priority Agent
shall be entitled to deal with the Pledged or Controlled Collateral in accordance with the terms of this Agreement and the other First Priority Debt Documents as if the Second Priority Liens did not exist. The obligations and responsibilities of the
First Priority Agent to the Second Priority Agent and the other Second Priority Secured Parties under this Article V shall be limited solely to holding or controlling the Pledged or Controlled Collateral as gratuitous bailee and representative (as
defined in Section 1-201(35) of the Uniform Commercial Code as in effect in the State of New York) in accordance with this Article V. Without limiting the foregoing, the First Priority Agent shall have no obligation or responsibility to ensure
that any Pledged or Controlled Collateral is genuine or owned by any of the Grantors. The First Priority Agent acting pursuant to this Article V shall not, by reason of this Agreement, any other Security Document or any other document, have a
fiduciary relationship in respect of any other First Priority Secured Party, the Second Priority Agent or any other Second Priority Secured Party. 

(c) Upon the Discharge of First Priority Claims, the First Priority Agent shall transfer the possession and control of the Pledged or
Controlled Collateral, together with any necessary endorsements but without recourse or warranty, to the Second Priority Agent, and if no Second Priority Claims are outstanding at such time, to the applicable Grantor, in each case so as to allow
such Person to obtain possession and control of such Pledged or Controlled Collateral. In connection with any transfer under the immediately preceding sentence, the First Priority Agent agrees, at the expense of the Grantors, to take all actions in
its power as shall be reasonably requested by the Second Priority Agent to permit the Second Priority Agent to obtain, for the benefit of the Second Priority Secured Parties, a first priority security interest in the Pledged or Controlled
Collateral. 
 (d) After the Discharge of First Priority Claims and upon the Discharge of Second Priority Claims, the Second Priority Agent
shall transfer the possession and control of the Pledged or Controlled Collateral, together with any necessary endorsements but without recourse or warranty, to the applicable Grantor, in each case so as to allow such Person to obtain possession and
control of such Pledged or Controlled Collateral. 
 ARTICLE VI. 

INSOLVENCY OR LIQUIDATION PROCEEDINGS 

Section 6.1. Finance and Sale Matters. (a) Until the Discharge of First Priority Claims has occurred, the Second
Priority Agent, for itself and on behalf of the other Second Priority Secured Parties agrees that, in the event of any Insolvency or Liquidation Proceeding, the Second Priority Secured Parties: 

(i) will not oppose or object to the use of any Collateral constituting cash collateral under Section 363 of the Bankruptcy Code, or any
comparable provision of any other Bankruptcy Law, unless the First Priority Secured Parties, or a representative authorized by the First Priority Secured Parties, shall oppose or object to such use of cash collateral; 

  
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 (ii) will not oppose or object to any post-petition financing, whether provided by the First
Priority Secured Parties or any other Person, under Section 364 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law (a “DIP Financing”), or the Liens securing any DIP Financing
(“DIP Financing Liens”), unless the First Priority Secured Parties, or a representative authorized by the First Priority Secured Parties, shall then oppose or object to such DIP Financing or such DIP Financing Liens, and, to
the extent that such DIP Financing Liens are senior to, or rank pari passu with, the First Priority Liens, the Second Priority Agent will, for itself and on behalf of the other Second Priority Secured Parties, subordinate the Second Priority
Liens to the First Priority Liens, if applicable, and the DIP Financing Liens on the terms of this Agreement; provided that, this clause (ii) will only be binding on the Second Priority Secured Parties with respect to any DIP Financing
to the extent the principal amount of such DIP Financing, when taken together with the aggregate principal amount of the First Priority Claims (other than Hedging Obligations and Treasury Management Obligations), does not exceed the sum of $100
million plus the aggregate amount of Indebtedness permitted to be outstanding pursuant to clause (1) of the definition of “Permitted Indebtedness” of the Second Priority Debt Agreement (as in effect on the Issue Date), without giving
effect to the proviso at the end thereof; 
 (iii) except to the extent permitted by paragraph (b) of this Section 6.1, in
connection with the use of cash collateral as described in clause (i) above or a DIP Financing, will not request adequate protection with respect to any Collateral or any other relief in connection with such use of cash collateral, DIP
Financing or DIP Financing Liens; 
 (iv) will not oppose or object to any Disposition of any Collateral free and clear of the Second
Priority Liens or other claims under Section 363 of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law, if the First Priority Secured Parties, or a representative authorized by the First Priority Secured Parties, shall
consent to, or not oppose or object to, such Disposition free and clear of First Priority Liens, so long as the proceeds are applied in accordance with this Agreement; and 

(v) without the prior written consent of the First Priority Agent, no Second Priority Secured Party will (nor will any of Second Priority
Secured Party join with or support any third party in opposing, objecting to or contesting, as the case may be), in any Insolvency or Liquidation Proceeding involving any of the Companies or any Subsidiary, (i) oppose, object to or contest the
determination of the extent of any Liens held by any First Priority Secured Party or the value of any claims of any such holder under Section 506(a) of the Bankruptcy Code or (ii) oppose, object to or contest the payment to the First
Priority Secured Party of interest, fees or expenses under Section 506(b) of the Bankruptcy Code. 

  
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 (b) The Second Priority Agent, for itself and on behalf of the other Second Priority Secured
Parties, agrees that no Second Priority Secured Party shall contest, or support any other Person in contesting, (i) any request by the First Priority Agent or any other First Priority Secured Party for adequate protection in respect of any
First Priority Claims or (ii) any objection, based on a claim of a lack of adequate protection with respect of any First Priority Claims, by the First Priority Agent or any other First Priority Secured Party to any motion, relief, action or
proceeding. Notwithstanding the immediately preceding sentence, if, in connection with any DIP Financing or use of cash collateral, (A) any First Priority Secured Party seeks or requests adequate protection in the form of a Lien on additional
collateral, the Second Priority Agent may, for itself and on behalf of the other Second Priority Secured Parties, seek or request adequate protection in the form of a Lien on such additional collateral, which Lien will be subordinated to the First
Priority Liens and DIP Financing Liens on the same basis as the other Second Priority Liens are subordinated to the First Priority Liens under this Agreement or (B) any Second Priority Secured Party is granted adequate protection in the form of
a Lien on additional collateral, the First Priority Agent shall, for itself and on behalf of the other First Priority Secured Parties, be granted adequate protection in the form of a Lien on such additional collateral that is senior to such Second
Priority Lien as security for the First Priority Claims. 
 (c) Notwithstanding anything to the contrary in this Agreement but subject to
clause (d) below, the holders of the Second Priority Debt Documents retain their rights under the Bankruptcy Code to make post-petition financing proposals, and such proposals shall not be deemed to be an objection to any other DIP Financing
proposals, so long as (x) any court order approving such post-petition financing proposed by any such Second Priority Secured Party requires that the Discharge of First Priority Claims shall have occurred as a condition to any payment being due
with respect to such post-petition financing, and (y) the Discharge of First Priority Claims occurs prior to the date of any payment being due with respect to such post-petition financing. 

(d) Without the prior written consent of the First Priority Agent, the Second Priority Agent, for itself and on behalf of the other Second
Priority Secured Parties, agrees not to propose, support or enter into any DIP Financing, if the effect of such DIP Financing would be that the Second Priority Claims would no longer be subordinated to the First Priority Claims in the manner set
forth in this Agreement, or the Second Priority Secured Parties would recover any payments they are not otherwise entitled to under this Agreement, including by way of adequate protection. 

(e) The Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, waives any claim that may be had against
the First Priority Agent or any other First Priority Secured Party arising out of any DIP Financing Liens (granted in a manner that is not inconsistent with this Agreement) or administrative expense claim under Section 364 of the Bankruptcy
Code. 
 (f) Notwithstanding anything to the contrary contained in any Debt Document, if in any Insolvency or Liquidation Proceeding a
determination is made that any Lien encumbering any Collateral is not enforceable for any reason, then the Second Priority Agent for itself and on behalf of each other Second Priority Secured Party, agrees that, any distribution or recovery they may
receive with respect to, or allocable to, the value of the assets constituting 

  
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Collateral subject to an enforceable Lien in favor of the Second Priority Secured Parties or any proceeds thereof shall (for so long as the Discharge of First Priority Claims has not occurred) be
segregated and held in trust and forthwith paid over to the First Priority Agent for the benefit of the First Priority Secured Parties in the same form as received but with any necessary endorsements or as a court of competent jurisdiction may
otherwise direct. Until the Discharge of First Priority Claims occurs, the Second Priority Agent, for itself and on behalf of each other Second Priority Secured Party, hereby appoints the First Priority Agent, and any officer or agent of the First
Priority Agent, with full power of substitution, the attorney-in-fact of each Second Priority Secured Party for the limited purpose of carrying out the provisions of this clause (f) and taking any action and executing any instrument that the
First Priority Agent may deem necessary or advisable to accomplish the purposes of this clause (f), which appointment is irrevocable and coupled with an interest. 

Section 6.2. Relief from the Automatic Stay. The Second Priority Agent, for itself and on behalf of the other Second
Priority Secured Parties, agrees that, so long as the Discharge of First Priority Claims has not occurred, no Second Priority Secured Party shall, without the prior written consent of the First Priority Agent, seek or request relief from or
modification of the automatic stay or any other stay in any Insolvency or Liquidation Proceeding in respect of any part of the Collateral, any proceeds thereof or any Second Priority Lien. 

Section 6.3. Reorganization Securities. If, in any Insolvency or Liquidation Proceeding, debt obligations of the
reorganized debtor secured by Liens upon any property of the reorganized debtor are distributed, pursuant to a plan of reorganization or similar dispositive restructuring plan, on account of the First Priority Claims and the Second Priority Claims,
then, to the extent the debt obligations distributed on account of the First Priority Claims and on account of the Second Priority Claims, the provisions of this Agreement will survive the distribution of such debt obligations pursuant to such plan
and will apply with like effect to the Liens securing such debt obligations. 
 Section 6.4. Post-Petition Interest.
(a) The Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, agrees that no Second Priority Secured Party shall oppose or seek to challenge any claim by the First Priority Agent or any other First
Priority Secured Party for allowance in any Insolvency or Liquidation Proceeding of First Priority Claims consisting of post-petition interest, fees or expenses to the extent of the value of the First Priority Liens (it being understood and agreed
that such value shall be determined without regard to the existence of the Second Priority Liens on the Collateral). 
 (b) The First
Priority Agent, for itself and on behalf of the other First Priority Secured Parties, agrees that the Second Priority Agent or any other Second Priority Secured Party may make a claim for allowance in any Insolvency or Liquidation Proceeding of
Second Priority Claims consisting of post-petition interest, fees or expenses to the extent of the value of the Second Priority Liens; provided, however, that if the First Priority Secured Parties shall have made any such claim, such
claim (A) shall have also have been approved or (B) will be approved contemporaneous with the approval of any such claim by any Second Priority Secured Party. 

  
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 Section 6.5. Certain Waivers by the Second Priority Secured Parties. The
Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, waives any claim any Second Priority Secured Party may have against any First Priority Secured Party arising out of (a) the election by any First
Priority Secured Party of the application of Section 1111(b)(2) of the Bankruptcy Code, or any comparable provision of any other Bankruptcy Law, or (b) any use of cash collateral or financing arrangement, or any grant of a security
interest in the Collateral, in any Insolvency or Liquidation Proceeding. 
 Section 6.6. Certain Voting Matters. Each of
the First Priority Agent, on behalf of the First Priority Secured Parties and the Second Priority Agent on behalf of the Second Priority Secured Parties, agrees that, without the prior written consent of the other, it will not seek to vote with the
other as a single class in connection with any plan of reorganization in any Insolvency or Liquidation Proceeding. The Second Priority Agent, for itself and on behalf of each other Second Priority Secured Party, agrees that neither the Second
Priority Agent nor any Second Priority Secured Party shall support or vote for any plan of reorganization or disclosure statement of any Company or any other Grantor unless (i) such plan is accepted by the class of First Priority Secured
Parties in accordance with Section 1126(c) of the Bankruptcy Code or otherwise provides for the Discharge of First Priority Claims (including the payment of all post-petition interest, fees and expenses, whether or not allowed or available
under the Bankruptcy Code) on the effective date of such plan of reorganization, or (ii) such plan provides on account of the First Priority Secured Parties for the retention by the First Priority Agent, for the benefit of the First Priority
Secured Parties, of the Liens on the Collateral securing the First Priority Claims, and on all proceeds thereof, and such plan also provides that any Liens retained by, or granted to, the Second Priority Agent are only on property securing the
Second Priority Claims and shall have the same relative priority with respect to the Collateral or other property, respectively, as provided in this Agreement with respect to the Collateral, and to the extent such plan provides for deferred cash
payments, or for the distribution of any other property of any kind or nature, on account of the First Priority Claims or the Second Priority Claims, such plan provides that any such deferred cash payments or other distributions in respect of the
Second Priority Claims shall be delivered to the First Priority Agent and distributed in accordance with the priorities provided in this Agreement. Except as provided in this Agreement, the Second Priority Secured Parties shall remain entitled to
vote their Second Priority Claims in any such Insolvency or Liquidation Proceeding. 
 ARTICLE VII. 

OTHER AGREEMENTS 

Section 7.1. Matters Relating to Debt Documents. The Parent and the Second Priority Agent agrees that the Second Priority
Debt Agreement and each Second Priority Security Document shall contain the applicable provisions set forth on Annex I hereto, or similar provisions approved by the First Priority Agent, which approval shall not be unreasonably withheld or delayed.
Each of the Parent and the Second Priority Agent further agrees that each Second Priority Mortgage covering any Collateral shall contain such other language as the First Priority Agent may reasonably request to reflect the subordination of such
Second Priority Mortgage to the First Priority Security Document covering such Collateral pursuant to this Agreement. 

  
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 Section 7.2. Effect of Refinancing of Indebtedness under First Priority Debt
Documents. If, substantially contemporaneously with the Discharge of First Priority Claims, the Grantors Refinance Indebtedness outstanding under the First Priority Debt Documents and provided that (a) such Refinancing is
permitted hereby and (b) either Company gives to the Second Priority Agent written notice (the “Refinancing Notice”) electing the application of the provisions of this Section 7.2 to such Refinancing Indebtedness,
then (i) such Discharge of First Priority Claims shall automatically be deemed not to have occurred for all purposes of this Agreement, (ii) such Refinancing Indebtedness and all other obligations under the documents evidencing such
Indebtedness (the “New First Priority Claims”) shall automatically be treated as First Priority Claims for all purposes of this Agreement, including for purposes of the Lien priorities and rights in respect of Collateral set
forth herein, (iii) the Debt Agreement and the other documents evidencing such Refinancing Indebtedness (the “New First Priority Debt Documents”) shall automatically be treated as the First Priority Debt Agreement and
the First Priority Debt Documents and, in the case of New First Priority Debt Documents that are security documents pursuant to which any Grantor has granted a Lien to secure any New First Priority Claim, as the First Priority Security Documents for
all purposes of this Agreement, (iv) the collateral agent under the New First Priority Debt Documents (the “New First Priority Agent”) shall be deemed to be the First Priority Agent for all purposes of this Agreement and
(v) the lenders under the New First Priority Debt Documents shall be deemed to be the First Priority Creditors for all purposes of this Agreement. Upon receipt of a Refinancing Notice, which notice shall include the identity of the New First
Priority Agent, the Second Priority Agent shall promptly enter into such documents and agreements (including amendments or supplements to this Agreement) as any Company or such New First Priority Agent may reasonably request in order to provide to
the New First Priority Agent the rights and powers contemplated hereby, in each case consistent in all material respects with the terms of this Agreement. Either Company shall cause the agreement, document or instrument pursuant to which the New
First Priority Agent is appointed to provide that the New First Priority Agent agrees to be bound by the terms of this Agreement. In furtherance of Section 2.3, if the New First Priority Claims are secured by assets of the Grantors that do not
also secure the Second Priority Claims, the applicable Grantors shall promptly grant a Second Priority Lien on such assets to secure the Second Priority Claims. 

Section 7.3. No Waiver by First Priority Secured Parties. Other than with respect to the Second Priority Permitted Actions,
nothing contained herein shall prohibit or in any way limit the First Priority Agent or any other First Priority Secured Party from opposing, challenging or objecting to, in any Insolvency or Liquidation Proceeding or otherwise, any action taken, or
any claim made, by the Second Priority Agent or any other Second Priority Secured Party, including any request by the Second Priority Agent or any other Second Priority Secured Party for adequate protection or any exercise by the Second Priority
Agent or any other Second Priority Secured Party of any of its rights and remedies under the Second Priority Debt Documents or otherwise. 

Section 7.4. Reinstatement. If, in any Insolvency or Liquidation Proceeding or otherwise, all or part of any payment with
respect to the First Priority Claims previously made shall be rescinded or otherwise required to be paid over to any Company or any Subsidiary for any reason whatsoever, then the First Priority Claims shall be reinstated to the extent of the amount
so rescinded or paid and the Discharge of First Priority Claims is deemed not to have occurred for all purposes under this Agreement and, if theretofore terminated, this Agreement 

  
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shall be reinstated in full force and effect and such prior termination shall not diminish, release, discharge, impair or otherwise affect the Lien priorities and the relative rights and
obligations of the First Priority Secured Parties and the Second Priority Secured Parties provided for herein. The Second Priority Agent, for itself and on behalf of each other Second Priority Secured Parties, agrees that if, at any time, it
receives notice of any such rescission or payment, the Second Priority Agent or such other Second Priority Secured Party shall promptly pay over to the First Priority Agent any payment in respect of the Collateral or any Collateral received by it
and then in its possession or under its control, and the provisions set forth in this Agreement shall be reinstated as if such payment had not been made, until the Discharge of First Priority Claims. 

Section 7.5. Authorization of Collateral Agents. By accepting the benefits of this Agreement and the other First Priority
Security Documents, each First Priority Secured Party hereby authorizes the First Priority Agent to enter into this Agreement and to act on its behalf as collateral agent hereunder and in connection herewith. By accepting the benefits of this
Agreement and the other Second Priority Security Documents, each Second Priority Secured Party hereby authorizes the Second Priority Agent to enter into this Agreement and to act on its behalf as collateral agent hereunder and in connection
herewith. 
 Section 7.6. Automatic Amendments to Second Priority Security Documents. In the event the First Priority
Agent or the other First Priority Secured Parties and the relevant Grantors enter into any amendment, waiver or consent in respect of any of the First Priority Security Documents for the purpose of adding to, or deleting from, or waiving or
consenting to any departures from any provision thereof, such amendment, waiver or consent shall apply automatically to any comparable provision of the comparable Second Priority Security Documents without any action by or consent of the Second
Priority Agent or the other Second Priority Secured Parties, provided, that, (A) any such amendment, waiver or consent that effects the release of Liens on Collateral shall not apply to the Second Priority Security Documents unless such
release is required by this Agreement, (B) any such amendment, waiver or consent that materially and adversely affects the rights of the Second Priority Secured Parties and does not affect the First Priority Secured Parties in a like or similar
manner (including permitting Liens on the Collateral (other than DIP Financing Liens) that are not permitted under the Second Lien Debt Documents) shall not apply to the Second Priority Security Documents, and (C) any such amendment, waiver or
consent that affects the rights or duties of the Second Priority Agent shall not apply to the Second Priority Security Documents without the Second Priority Agent’s written consent, and (D) notice of such amendment, waiver or consent shall
be given to the Second Priority Agent no later than 10 Business Days after its effectiveness; provided that the failure to give such notice shall not affect the effectiveness and validity thereof. 

Section 7.7. Further Assurances. Each of the First Priority Agent, for itself and on behalf of the other First Priority
Secured Parties, and the Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, and each Grantor party hereto, for itself and on behalf of its Subsidiaries, agrees that it will execute, or will cause to be
executed, any and all further documents, agreements and instruments, and take all such further actions, as may be required under any applicable law, or which the First Priority Agent or the Second Priority Agent may reasonably request, to effectuate
the terms of this Agreement, including the relative Lien priorities provided for herein. 

  
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 ARTICLE VIII. 

REPRESENTATIONS AND WARRANTIES 

Section 8.1. Representations and Warranties of Each Party. Each party hereto represents and warrants to the other parties
hereto as follows: 
 (a) Such party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization and has all requisite power and authority to execute and deliver this Agreement and perform its obligations hereunder. 
 (b)
This Agreement has been duly executed and delivered by such party and constitutes a legal, valid and binding obligation of such party, enforceable in accordance with its terms. 

(c) The execution, delivery and performance by such party of this Agreement (i) do not require any consent or approval of, registration
or filing with or any other action by any governmental authority (except as contemplated hereby) and (ii) will not violate any provision of law, statute, rule or regulation, or of the certificate or articles of incorporation or other
constitutive documents or by-laws of such party or any order of any governmental authority or any provision of any indenture, agreement or other instrument applicable to or binding upon such party. 

Section 8.2. Representations and Warranties of Each Collateral Agent. Each Collateral Agent represents and warrants to the
other parties hereto that it has been authorized by the Secured Parties under and as defined in the First Priority Debt Agreement or the Second Priority Debt Agreement, as applicable, to enter into this Agreement. In accordance with the terms of the
Second Priority Debt Agreement, the holders of a majority of the principal amount of outstanding Second Priority Claims have the right to direct the Second Priority Agent on behalf of the Second Priority Secured Parties in accordance with the terms
hereof and of the Second Priority Debt Documents (i) with respect to the exercise of rights and remedies and (ii) to take other actions with respect to the Collateral, and the other Second Priority Secured Parties have no rights to take
any action with respect to the Collateral under this Agreement (other than at the direction or with the consent of the Second Priority Agent). 

ARTICLE IX. 
 NO
RELIANCE; NO LIABILITY; OBLIGATIONS ABSOLUTE 
 Section 9.1. No Reliance; Information. The First Priority Secured
Parties and the Second Priority Secured Parties shall have no duty to disclose to any Second Priority Secured Party or to any First Priority Secured Party, respectively, any information relating to any Company or any of the Grantors, or any other
circumstance bearing upon the risk of nonpayment of any of the First Priority Claims or the Second Priority Claims, as the case may be, that is known or becomes known to any of them or any of their Affiliates. In the event any First Priority Secured
Party or any Second Priority 

  
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Secured Party, in its sole discretion, undertakes at any time or from time to time to provide any such information to, respectively, any Second Priority Secured Party or any First Priority
Secured Party, it shall be under no obligation (i) to make, and shall not make or be deemed to have made, any express or implied representation or warranty, including with respect to the accuracy, completeness, truthfulness or validity of the
information so provided, (ii) to provide any additional information or to provide any such information on any subsequent occasion or (iii) to undertake any investigation. 

Section 9.2. No Warranties or Liability. (a) The First Priority Agent, for itself and on behalf of the other First
Priority Secured Parties, acknowledges and agrees that, except for the representations and warranties set forth in Article VIII, neither the Second Priority Agent nor any other Second Priority Secured Party has made any express or implied
representation or warranty, including with respect to the execution, validity, legality, completeness, collectibility or enforceability of any of the Second Priority Debt Documents, the ownership of any Collateral or the perfection or priority of
any Liens thereon. The Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, acknowledges and agrees that, except for the representations and warranties set forth in Article VIII, neither the First Priority
Agent nor any other First Priority Secured Party has made any express or implied representation or warranty, including with respect to the execution, validity, legality, completeness, collectibility or enforceability of any of the First Priority
Debt Documents, the ownership of any Collateral or the perfection or priority of any Liens thereon. 
 (b) The Second Priority Agent and the
other Second Priority Secured Parties shall have no express or implied duty to the First Priority Agent or any other First Priority Secured Party, and the First Priority Agent and the other First Priority Secured Parties shall have no express or
implied duty to the Second Priority Agent or any other Second Priority Secured Party, to act or refrain from acting in a manner which allows, or results in, the occurrence or continuance of a default or an event of default under any First Priority
Debt Document and any Second Priority Debt Document (other than, in each case, this Agreement), regardless of any knowledge thereof which they may have or be charged with. 

(c) The Second Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, agrees no First Priority Secured Party
shall have any liability to the Second Priority Agent or any other Second Priority Secured Party, and hereby waives any claim against any First Priority Secured Party, arising out of any and all actions which the First Priority Agent or the other
First Priority Secured Parties may take or permit or omit to take with respect to (i) the First Priority Debt Documents (other than this Agreement), (ii) the collection of the First Priority Claims or (iii) the maintenance of, the
preservation of, the foreclosure upon or the Disposition of any Collateral. 
 (d) The Second Priority Agent shall not at any time be deemed
or imputed to have any knowledge of or receipt of any notices, information, correspondence or materials in the possession of or given to the First Priority Agent, in its capacity as First Priority Agent or as a lender under the First Priority Debt
Agreement. First Priority Agent shall not at any time be deemed or imputed to have any knowledge of or receipt of any notices, information, correspondence or materials in the possession of or given to the Second Priority Agent, in its capacity as
Second Priority Agent or as any other Second Priority Secured Party. 

  
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 Section 9.3. Obligations Absolute. The Lien priorities provided for herein and
the respective rights, interests, agreements and obligations hereunder of the First Priority Agent and the other First Priority Secured Parties and the Second Priority Agent and the other Second Priority Secured Parties shall remain in full force
and effect irrespective of: 
 (a) any lack of validity or enforceability of any Debt Document; 

(b) any change in the time, place or manner of payment of, or in any other term of (including, subject to the limitations set forth in
Section 7.2, the Refinancing of), all or any portion of the First Priority Claims, it being specifically acknowledged that a portion of the First Priority Claims consists or may consist of Indebtedness that is revolving in nature, and the
amount thereof that may be outstanding at any time or from time to time may be increased or reduced and subsequently reborrowed; 
 (c) any
change in the time, place or manner of payment of, or, subject to the limitations set forth in Section 7.2, in any other term of, all or any portion of the First Priority Claims; 

(d) any amendment, waiver or other modification, whether by course of conduct or otherwise, of any Debt Document; 

(e) the securing of any First Priority Claims or Second Priority Claims with any additional collateral or guarantees, or any exchange, release,
voiding, avoidance or non-perfection of any security interest in any Collateral or any other collateral or any release of any guarantee securing any First Priority Claims or Second Priority Claims; 

(f) the commencement of any Insolvency or Liquidation Proceeding or Liquidation Sale in respect of any Company or any other Grantor; or 

(g) any other circumstances that otherwise might constitute a defense available to, or a discharge of, any Company or any other Grantor in
respect of the First Priority Claims or this Agreement, or any of the Second Priority Secured Parties in respect of this Agreement. 

Section 9.4. No Impairment of Security Interests. Each Company and each Grantor will not, and will not permit its
Subsidiaries to, take any action, or knowingly omit to take any action, which action or omission would have the result of materially impairing the validity, perfection or priority of the security interest in the Collateral created by the First
Priority Security Documents or the Second Priority Security Documents, except as permitted by the Debt Documents. 
 ARTICLE X. 

MISCELLANEOUS 

Section 10.1. Notices. Notices and other communications provided for herein shall be in writing and shall be delivered by
hand or overnight courier service, mailed by certified or registered mail or sent by fax, as follows: 

  
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 (a) if to any Company or any other Grantor, to it, at McDermott International, Inc., 757 North
Eldridge Parkway, Houston, Texas 77079, Attention: Treasurer (Fax No. (281) 870-5125) with a copy to: McDermott International, Inc., 757 North Eldridge Parkway, Houston, Texas 77079, Attention: General Counsel (Fax No. (281) 870-5755);

 (b) if to the First Priority Agent, to Crédit Agricole Corporate and Investment Bank, as First Priority Agent, 1301 Avenue of the
Americas, New York, NY 10019, Attention: Agnes Castillo (Fax No. 917-849-5463 or 917-849-5456); and 
 (c) if to the Second Priority
Agent, to Wells Fargo Bank, National Association, as Second Priority Agent, 750 N. Saint Paul Place, Suite 1750, Dallas, Texas 75201, Attention: Patrick Giordano (Fax No. 214-756-7401). 

All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have
been given on the date of receipt if delivered by hand or overnight courier service or sent by fax or on the date five Business Days after dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed (properly
addressed) to such party as provided in this Section 10.1 or in accordance with the latest unrevoked direction from such party given in accordance with this Section 10.1. As agreed to between any Company and any Collateral Agent from time
to time, notices and other communications may also be delivered by e-mail to the e-mail address of a representative of the applicable Person provided from time to time by such Person. 

The First Priority Agent and the Second Priority Agent agree to use diligent efforts to provide each other with copies of any notices of
default or acceleration or similar notices which they give to any Company under the First Priority Debt Documents and Second Priority Debt Documents respectively; provided, however, that in the event that either of such parties fails
to provide the other with such notice, such failure shall not affect their respective obligations hereunder or the effectiveness of any such notice. 

Section 10.2. Conflicts. IN THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THIS AGREEMENT AND
THE PROVISIONS OF THE OTHER DEBT DOCUMENTS, THE PROVISIONS OF THIS AGREEMENT SHALL CONTROL. 
 Section 10.3. Effectiveness;
Survival; Termination. This Agreement shall become effective when executed and delivered by the parties hereto. All covenants, agreements, representations and warranties made by any party in this Agreement shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement. The terms of this Agreement shall survive, and shall continue in full force and effect, in any Insolvency or Liquidation Proceeding. The Second
Priority Agent, for itself and on behalf of the other Second Priority Secured Parties, hereby waives any and all rights the Second Priority Secured Parties may now or hereafter have under applicable law to revoke this Agreement or any of the
provisions of this Agreement. This Agreement shall terminate and be of no further force and effect, (i) subject to compliance with its obligations to take certain actions upon Discharge of the Second Priority Claims pursuant to Article V and
Section 3.1(d), with respect to the Second Priority Agent, the Second Priority Secured Parties and the Second Priority Claims, upon the 

  
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later of (1) the date upon which the obligations under the Second Priority Debt Agreement terminate if there are no other Second Priority Claims outstanding on such date and (2) if
there are other Second Priority Claims outstanding on such date, the date upon which such Second Priority Claims terminate and (ii) subject to Section 7.2 and compliance with its obligations to take certain actions upon Discharge of the
First Priority Claims pursuant to Article V, with respect to the First Priority Agent, the First Priority Secured Parties and the First Priority Claims, the date of Discharge of First Priority Claims, subject to the rights of the First Priority
Secured Parties under Section 7.4. 
 Section 10.4. Severability. In the event any one or more of the provisions
contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby (it being
understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

Section 10.5. Amendments; Waivers. (a) No failure or delay on the part of any party hereto in exercising any power or
right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or
the exercise of any other right or power. The rights and remedies of the parties hereto are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any
departure by any party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section 10.5, and then such waiver or consent shall be effective only in the specific instance and for the purpose
for which given. 
 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into by the First Priority Agent and the Second Priority Agent; provided that no such agreement shall amend, modify or otherwise affect the rights or obligations of any Grantor without such Person’s prior
written consent. 
 Section 10.6. Postponement of Subrogation. The Second Priority Agent, for itself and on behalf of
each other Second Priority Secured Parties, agrees that no payment or distribution to any First Priority Secured Party pursuant to the provisions of this Agreement shall entitle any Second Priority Secured Party to exercise any rights of subrogation
in respect thereof until the Discharge of First Priority Claims shall have occurred. Following the Discharge of First Priority Claims, each First Priority Secured Party agrees to execute such documents, agreements, and instruments as any Second
Priority Secured Party may reasonably request to evidence the transfer by subrogation to any such Person of an interest in the First Priority Claims resulting from payments or distributions to such First Priority Secured Party by such Person, so
long as all costs and expenses (including all reasonable legal fees and disbursements) incurred in connection therewith by such First Priority Secured Party are paid by such Person upon request for payment thereof. 

  
 30 

 Section 10.7. Applicable Law; Jurisdiction; Consent to Service of Process.
(a) THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION 

(b) Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any Supreme
Court for New York County, New York or in The United States District Court for the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition
or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined only in such New York court or, to the extent
permitted by law, in such Federal court. Each party hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 (c) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so,
(i) any right to any other jurisdiction to which it may be entitled on account of domicile, residence or otherwise and (ii) any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement in any New York court or in any such Federal court. Each party hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court. 
 (d) Each party to this Agreement irrevocably consents to service of process in the manner provided for
notices in Section 10.1. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 

Section 10.8. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT,
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.8. 
 Section 10.9. Parties in Interest.
The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, as well as the other First Priority Secured Parties and Second Priority Secured Parties, all of whom
are intended to be bound by, and to be third party beneficiaries of, this Agreement. No other Person shall have or be entitled to assert rights or benefits hereunder. 

  
 31 

 Section 10.10. Specific Performance. Each Collateral Agent may demand specific
performance of this Agreement and, on behalf of itself and the respective other Secured Parties, hereby irrevocably waives any defense based on the adequacy of a remedy at law and any other defense that might be asserted to bar the remedy of
specific performance in any action which may be brought by the respective Secured Parties. 
 Section 10.11. Headings.
Article and Section headings used herein and the Table of Contents hereto are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this
Agreement. 
 Section 10.12. Counterparts. This Agreement may be executed in counterparts (and by different parties
hereto on different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract, and shall become effective as provided in Section 10.3. Delivery of an executed signature
page to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Agreement. 

Section 10.13. Provisions Solely to Define Relative Rights. The provisions of this Agreement are and are intended solely
for the purpose of defining the relative rights of the First Priority Secured Parties, on the one hand, and the Second Priority Secured Parties, on the other hand. None of any Company, any other Grantor, any Guarantor or any other creditor thereof
shall have any rights or obligations hereunder, except as expressly provided in this Agreement, and none of any Company, any other Grantor or any Guarantor may rely on the terms hereof except as expressly provided in this Agreement. Nothing in this
Agreement is intended to or shall impair the obligations of any Company or any other Grantor or any Guarantor, which are absolute and unconditional, to pay the First Priority Claims and the Second Priority Claims as and when the same shall become
due and payable in accordance with their terms. 
 (Signatures appear on following pages) 

  
 32 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized officers or other representatives as of the day and year first above written. 
  

			
	COMPANIES:
	
	 McDERMOTT INTERNATIONAL, INC.

a Panamanian corporation

		
	By:	 	 /s/ STEVEN D. OLDHAM

	Name:	 	Steven D. Oldham
	Title:	 	 Vice President, Treasurer and Investor

Relations

	
	 McDERMOTT FINANCE L.L.C.

a Delaware limited liability company

		
	By:	 	 /s/ STEVEN D. OLDHAM

	Name:	 	Steven D. Oldham
	Title:	 	Treasurer

 Signature Page to Intercreditor Agreement – McDermott International, Inc. 

 GUARANTORS: 
  

			
	Chartering Company (Singapore) Pte. Ltd.	  	McDermott Australia Pty. Ltd.
	DeepSea (Americas) LLC	  	McDermott Caspian Contractors, Inc.
	Deepsea (Europe) Limited	  	McDermott Cayman Ltd.
	Deepsea Group Limited	  	McDermott Eastern Hemisphere, Ltd.
	Deepsea (UK) Limited	  	McDermott Engineering, LLC
	Deepsea (US) Incorporated	  	McDermott Far East Inc.
	Eastern Marine Services, Inc.	  	McDermott Finance L.L.C.
	Global Energy—McDermott Limited	  	McDermott Gulf Operating Company, Inc.
	Hydro Marine Services, Inc.	  	McDermott International Investments Co., Inc.
	International Vessels Ltd	  	McDermott International Trading Co., Inc.
	J. Ray Holdings, Inc.	  	McDermott International Vessels, Inc.
	J. Ray McDermott (Aust.) Holding Pty. Limited	  	McDermott Marine Construction Limited
	J. Ray McDermott (Caspian), Inc.	  	
	J. Ray McDermott Canada Holding, Ltd.	  	McDermott Middle East, Inc.
	J. Ray McDermott Canada, Ltd.	  	McDermott Offshore Services Company, Inc.
	J. Ray McDermott Contractors, Inc.	  	McDermott Old JV Office, Inc.
		  	McDermott Overseas, Inc.
	J. Ray McDermott Engineering Services Private Limited	  	McDermott Subsea Engineering, Inc.
	J. Ray McDermott Far East, Inc.	  	
	J. Ray McDermott International, Inc.	  	McDermott Trade Corporation
	J. Ray McDermott International Vessels, Ltd.	  	North Atlantic Vessel, Inc.
	J. Ray McDermott Kazakhstan Limited Liability Partnership	  	Offshore Pipelines International, Ltd.
	J. Ray McDermott Logistic Services Private Limited	  	OPI Vessels, Inc.
	J. Ray McDermott (Norway), AS	  	OPMI, Ltd.
	J. Ray McDermott (Qingdao) Pte. Ltd.	  	Sabine River Realty, Inc.
	J. Ray McDermott Solutions, Inc.	  	
	J. Ray McDermott Technology, Inc.	  	
	J. Ray McDermott Underwater Services, Inc.	  	SparTEC, Inc.
	J. Ray McDermott West Africa Holdings, Inc.	  	
	J. Ray McDermott West Africa, Inc.	  	
	Malmac Sdn. Bhd.	  	
	McDermott Asia Pacific Pte. Ltd.	  	

  

			
	By:	 	 /s/ STEVEN D. OLDHAM

	Name:	 	Steven D. Oldham
	Title:	 	Treasurer

 Signature Page to Intercreditor Agreement – McDermott International, Inc. 

 
			
	J. Ray McDermott Holdings, LLC
	J. Ray McDermott, S.A.
	McDermott, Inc.
	McDermott Investments, LLC
	McDermott International Management, S. de RL.
		
	By:	 	 /s/ STEVEN D. OLDHAM

	Name:	 	Steven D. Oldham
	Title:	 	Vice President and Treasurer
	
	DeepSea (Holland) B.V.
	J. Ray McDermott (Luxembourg) S.ar.l.
	J. Ray McDermott (Nigeria) Limited
	J. Ray McDermott Investments B.V.
	McDermott Overseas Investment Co. N.V.
	McDermott Holdings (U.K.) Limited
	McDermott International B.V.
	Mc Dermott International Marine Investments N.V.
	McDermott Serviços Offshore do Brasil Ltda.
	PT. Baja Wahana Indonesia
	Singapore Huangdao Pte. Ltd.
	Varsy International N.V.
		
	By:	 	 /s/ STEVEN D. OLDHAM

	Name:	 	Steven D. Oldham
	Title:	 	Authorized Person

 Signature Page to Intercreditor Agreement – McDermott International, Inc. 

 
			
	J. Ray McDermott de Mexico, S.A. de C.V.
	McDermott Marine Mexico, S.A. de C.V.
	Servicios de Fabricacion de Altamira, S.A. de C.V.
	Servicios Profesionales de Altamira, S.A. de C.V.
		
	By:	 	 /s/ ANA L. MENDEZ BURKART

	Name:	 	Ana L. Mendez Burkart
	Title:	 	Attorney-in-fact

 Signature Page to Intercreditor Agreement – McDermott International, Inc. 

 
			
	FIRST PRIORITY AGENT:
	
	Crédit Agricole Corporate and Investment Bank,
	as First Priority Agent
		
	By:	 	 /s/ MICHAEL WILLIS

	Name:	 	Michael Willis
	Title:	 	Managing Director
		
	By:	 	 /s/ PAGE DILLEHUNT

	Name:	 	Page Dillehunt
	Title:	 	Managing Director

 Signature Page to Intercreditor Agreement – McDermott International, Inc. 

 
			
	SECOND PRIORITY AGENT:
	
	 Wells Fargo Bank, N.A.

as Second Priority Agent

		
	By:	 	 /s/ PATRICK T. GIORDANO

	Name:	 	Patrick T. Giordano
	Title:	 	Vice President

 Signature Page to Intercreditor Agreement – McDermott International, Inc. 

 Annex I 

Provision for the Second Priority Debt Agreement 

“THIS INDENTURE AND THE COLLATERAL AGREEMENTS ARE SUBJECT TO THE TERMS, LIMITATIONS AND CONDITIONS SET FORTH IN THE INTERCREDITOR AGREEMENT. THE TRUSTEE
AND EACH HOLDER OF A NOTE, BY ITS ACCEPTANCE THEREOF, IS DEEMED TO HAVE AUTHORIZED AND INSTRUCTED THE COLLATERAL AGENT TO ENTER INTO THE INTERCREDITOR AGREEMENT ON ITS BEHALF.” 

Provision for the Second Priority Security Documents 

“REFERENCE IS MADE TO THE INTERCREDITOR AGREEMENT DATED AS OF APRIL 16, 2014 (AS AMENDED, SUPPLEMENTED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO
TIME, THE “INTERCREDITOR AGREEMENT”), AMONG MCDERMOTT INTERNATIONAL, INC. (THE “PARENT”), MCDERMOTT FINANCE L.L.C., THE SUBSIDIARIES OF THE PARENT FROM TIME TO TIME PARTY THERETO, CRÉDIT AGRICOLE CORPORATE
AND INVESTMENT BANK, AS FIRST PRIORITY AGENT (AS DEFINED THEREIN), AND WELLS FARGO BANK, NATIONAL ASSOCIATION, AS SECOND PRIORITY AGENT (AS DEFINED THEREIN). NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO
THE COLLATERAL AGENT, FOR THE BENEFIT OF THE SECURED PARTIES, PURSUANT TO THIS AGREEMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT AND THE OTHER SECURED PARTIES HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR
AGREEMENT. IN THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THE PROVISIONS OF THIS AGREEMENT OR THE OTHER INDENTURE DOCUMENTS, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL CONTROL.”

 Signature Page to Intercreditor Agreement – McDermott International, Inc.EX-10.2

 Exhibit 10.2 

EXECUTION COPY 
 AMENDED
AND RESTATED EMPLOYMENT AGREEMENT 
 This Amended and Restated Employment Agreement (the “Agreement”), is entered into as of March 11,
2014 (the “Effective Date”) between Vyrix Pharmaceuticals, Inc., a Delaware corporation (hereinafter referred to as the “Company”), and Jarrett Disbrow (“Employee”). 

RECITALS 
 WHEREAS,
the Company is a duly organized Delaware corporation, a subsidiary of, and wholly owned by, Ampio Pharmaceuticals, Inc., a Delaware corporation (“Ampio”), and is in the business of developing and marketing sexual dysfunction
pharmaceutical products; and 
 WHEREAS, the Company desires assurance of the continued association and services of the Employee in
order to continue to retain the Employee’s experience, skills, abilities, background and knowledge, and is willing to continue to engage the Employee’s services on the terms and conditions set forth in this Agreement; and 

WHEREAS, Employee desires to be in the continued employ of the Company, and is willing to accept such continued employment on the terms
and conditions set forth in this Agreement. 
 NOW, THEREFORE, the parties hereto agree to the terms and conditions of this Agreement as follows:

 1. Employment for Term. The Company hereby agrees to employ Employee and Employee hereby accepts such employment with the Company for the period of
36 months beginning on the Effective Date. The term of this Agreement (the “Term”) shall continue until the termination of Employee’s employment in accordance with the provisions of this Agreement. The termination of Employee’s
employment under this Agreement shall end the Term but shall not terminate Employee’s or the Company’s other obligations that are intended to survive the termination of this Agreement (including without limitation, the payments under
Section 7 and 8 and Employee’s obligations under Section 9). 
 2. Position and Duties. During the Term, Employee shall serve as
President and Chief Executive Officer of the Company and perform such duties as are consistent with this position. The Employee shall report to the board of directors of the Company or, to the extent that the Company remains wholly-owned by Ampio,
to the board of directors of Ampio, as applicable (such applicable board of directors, hereinafter the “Board”). During the Term, Employee shall also hold such additional positions and titles as the Chief Executive Officer or the Board may
determine from time to time. During the Term, Employee shall devote his full business time to satisfactorily perform his duties as President and Chief Executive Officer of the Company. Employee may engage in any civic and not-for-profit activities
so long as such activities do not materially interfere with the performance of his duties hereunder or present a conflict of interest with the Company or Ampio or any of their respective subsidiaries or affiliates. During the Term of this Agreement,
Employee agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by the Employee to be adverse or antagonistic to the Company or Ampio or any of their respective subsidiaries or affiliates,
their respective business or prospects, their financial position, or otherwise or in any company, person or entity that is, directly or indirectly, in competition with the business of the Company or 

 
Ampio or any of their respective subsidiaries or affiliates. This provision shall encompass any advisory boards of which Employee is or becomes a member of during the term hereof. Employee shall
provide written disclosure to the Compensation Committee of the Board as to any advisory boards on which Employee sits, and will provide the Company or Ampio, as applicable, with a written request for authority to sit on any additional advisory
boards. On termination of Employee’s employment, regardless of the reason for such termination, Employee shall immediately (and with contemporaneous effect) resign any directorships, offices or other positions that Employee may hold in the
Company or Ampio or any of their respective subsidiaries or affiliates, unless otherwise agreed in writing by the parties. 
 3. Compensation. 

(a) Base Salary. The Company shall pay Employee a base salary of $210,000 per annum, commencing on October 15, 2013 for the
Employee’s pre-incorporation efforts, payable at least monthly on the Company’s regular pay cycle for professional employees (the “Base Salary”). Except as specifically otherwise provided herein, the Base Salary may be increased
only by recommendation of the Compensation Committee of the Board and ratified by the Compensation Committee or a majority of the independent members of the Board. 

(b) Initial operating facility. The Company shall initially be operated at a facility located in North Carolina in reasonable proximity
to the residence of Employee. 
 (c) Annual Review. The Base Salary shall be reviewed at the end of each calendar year (the first
such review to occur at the end of calendar year 2014). 
 (d) Equity Compensation. In connection with the execution of this
Agreement and subject to the approval of the Board of Directors of the Company, the Company hereby agrees to grant initial equity compensation to Employee in the form of options to purchase an aggregate amount of 500,000 shares of the Company’s
Common Stock. These options shall vest in accordance with the terms and schedule set forth in Exhibit A hereto. Such vesting schedule may be accelerated under certain circumstances to the extent provided in Section 8 of this agreement.

 (e) Other and Additional Compensation. Subsections (a) and (d) above establish Employee’s compensation during the
Term which shall not preclude the Board from awarding Employee a higher salary or any bonuses or stock options, restricted stock or other forms of additional equity awards in the discretion of the Board during the Term at any time. The Employee
shall be eligible for an annual discretionary bonus (hereinafter referred to as the “Bonus”) with a target amount of fifty percent (50%) of the Base Salary, subject to standard deductions and withholdings, based on the
Compensation Committee’s determination, in good faith, and based upon the Employee’s individual achievement and Company performance objectives as set by the Board or the Compensation Committee, of whether the Employee has met such
performance milestones as are established for the Employee by Chief Executive Officer of the Company, the Board or the Compensation Committee, in good faith, in consultation with the Employee (hereinafter referred to as the “Performance
Milestones”). The Performance Milestones will be based on certain factors including, but not limited to, the Employee’s performance and the Company’s financial performance. The Employee’s Bonus target will be reviewed annually
and may be adjusted by the Board or the Compensation Committee in its discretion, provided however, that the Bonus target may only be reduced upon Employee’s written consent. The Employee must be employed on the date the Bonus is awarded to be
eligible for the Bonus, subject to the termination provisions hereof. Bonuses shall 

 
be paid during the calendar quarter following the calendar quarter for which such Bonus was earned when Performance Milestones are met during a calendar quarter. Fourth quarter Bonuses and
Bonuses calculated on the basis of partial Performance Milestone satisfaction shall be paid within 120 days of fiscal year-end. 
 4. Employee
Benefits. During the Term, Employee shall be entitled to participate at the same level as other senior executive officers of Ampio or the Company in any group insurance, hospitalization, medical, health and accident, disability, fringe benefit
and tax-qualified retirement plans or programs of Ampio or the Company now existing or hereafter established to the extent that he is eligible under the general provisions thereof. For the term of this Agreement, Employee shall be entitled to paid
vacation at the rate of (4) weeks per annum. In accordance with Ampio and Company policy, unused vacation may not be carried over from year to year. 

5. Expenses. The Company shall reimburse Employee for actual, reasonable out-of-pocket expenses incurred by him in the performance of his services for
the Company upon the receipt of appropriate documentation of such expenses which shall be submitted in such form, and with such supporting documentation, as called for or required by Company policy. 

6. Termination. 
 (a) General. The
Term shall end immediately upon Employee’s death. Employee’s employment may also be terminated by the Company with or without Cause or as a result of Employee’s Disability, as defined in Section 7 or by Employee with or without
Good Reason (as such terms are defined below). 
 (b) Notice of Termination. Either party shall give written notice of termination to
the other party. 
 (c) Notification of New Employer. In the event that Employee leaves the employ of the Company, Employee grants
consent to notification by the Company to Employee’s new employer about his rights and obligations under this Agreement and the PIA (hereinafter defined). 

7. Severance Benefits. 
 (a) Cause
Defined. “Cause” means (i) willful malfeasance or willful misconduct by Employee in connection with his employment; (ii) Employee’s gross negligence in performing any of his duties under this Agreement;
(iii) Employee’s conviction of, or entry of a plea of guilty to, or entry of a plea of nolo contendre with respect to, any crime other than a traffic violation or infraction which is a misdemeanor; (iv) Employee’s willful
and deliberate violation of any Ampio policy or Company policy, (v) Employee’s unintended but material breach of any written policy applicable to all employees adopted by Ampio or the Company which is not cured to the reasonable
satisfaction of the Board within thirty (30) business days after notice thereof; (vi) the Employee’s unauthorized use or disclosure of any proprietary information or trade secrets of Ampio or the Company or any of their respective
subsidiaries or affiliates or any other party as to which the Employee owes an obligation of nondisclosure as a result of the Employee’s relationship with Ampio or the Company, (vii) the Employee’s willful and deliberate breach of his
obligations under this Agreement, or (viii) any other material breach by Employee of any of his obligations in this Agreement which is not cured to the reasonable satisfaction of the Board within thirty (30) business days after notice
thereof. 

 (b) Disability Defined. “Disability” shall mean (i) Employee’s
incapacity due to a physical or mental condition and, if reasonable accommodation is required by law, after any reasonable accommodation, that results in Employee being substantially unable to perform his duties hereunder for six consecutive months
(or for six months out of any nine month period) or (ii) a qualified independent physician mutually acceptable to the Company and Employee determines that Employee is incapacitated due to a physical or mental condition and, if reasonable
accommodation is required by law, after any reasonable accommodation so as to be unable to regularly perform the duties of his position and such condition is expected to be of a permanent or near-permanent duration. Until such time as Employee is
terminated for Disability under this paragraph (b), Employee shall continue to receive his Base Salary hereunder, provided that if the Company provides Employee with disability insurance coverage, payments of Employee’s Base Salary shall be
reduced by the amount of any disability insurance payments received by Employee due to such coverage. The Company shall give Employee written notice of termination due to Disability which shall take effect sixty (60) days after the date it is
sent to Employee unless Employee shall have returned to the performance of his duties hereunder during such sixty (60) day period (whereupon such notice shall become void). In the event that the Company terminates Employee’s employment as
a result of his Disability, Employee shall be entitled to the same benefits as if his employment had been terminated by the Company without Cause. 

(c) Good Reason Defined. For purposes of this Agreement, “Good Reason” shall mean, without Employee’s written consent:
(i) there is a material reduction of the level of Employee’s compensation (excluding any bonuses) (except where there is a general reduction applicable to the management team generally, provided, however, that in no case may the Base
Salary be reduced below the amount stated in Section 3(a)), (ii) there is a material reduction in Employee’s overall responsibilities or authority, or scope of duties (it being understood that the occurrence of a Change in Control
shall not, by itself, necessarily constitute a reduction in Employee’s responsibilities or authority); or (iii) there is a material change in the principal geographic location at which Employee must perform his services (it being
understood that the relocation of Employee to a facility or a location within forty (40) miles of Employee’s current residence in the State of North Carolina as of the Effective Date or within forty (40) miles of the State Capitol
Building in Denver, Colorado shall not be deemed material for purposes of this Agreement). No event shall be deemed to be “Good Reason” if the Company has cured the event (if susceptible to cure) within 30 days of receipt of written notice
from Employee specifying the event or events which, absent cure, would constitute “Good Cause.” 
 (d) Accrued Compensation
Defined. Accrued Compensation shall mean an amount which shall include all amounts earned or accrued by Employee through the date of termination of this Agreement but not paid as of such date, including (i) Base Salary,
(ii) reimbursement for business expenses incurred by the Employee on behalf of the Company, pursuant to the Company’s expense reimbursement policy in effect at such time, (iii) any expense allowance pursuant to Company policy,
(iv) accrued but unused vacation pay per Company policy, and (v) bonuses and incentive compensation earned and awarded prior to the date of termination. Accrued Compensation shall be paid on the first regular pay date after the date of
termination (or earlier, if required by applicable law). 
 (e) Termination. 

(i) Cause; Without Good Reason; Death. If the Company ends the Term for Cause, if Employee resigns as an employee of the
Company for reasons other than an event of Good Reason, or the Employee dies, then the Company shall pay to Employee 

 
the Accrued Compensation but shall have no obligation to pay Employee any amount, whether for salary, benefits, bonuses, or other compensation or expense reimbursements of any kind, accruing
after the end of the Term, and such rights shall, except as otherwise required by law or pursuant to the applicable award agreement or plan, be forfeited immediately upon the end of the Term. For the sake of clarity, any stock options, restricted
stock or other equity compensation shall, to the extent vested on the date of resignation without Good Reason, the date the Company ends the Term for Cause, or the date of Employee’s death, remain outstanding and exercisable to the extent
provided in the applicable award agreement or plan, by the Employee or his personal representative or executor. 
 (ii)
Without Cause; Good Reason. In the event that the Company terminates Employee’s employment hereunder without Cause, Employee terminates his employment with Good Reason, he shall be entitled to the Accrued Compensation and, subject to
Section 21 and 22 below, 
 (A) A lump sum payment equal to one time his Base Salary in effect at the date of termination, less
applicable withholding. 
 (B) Continued participation (via state or federal insurance continuation laws such as COBRA, to the extent
available) in the health and welfare plans (or comparable plans, if continued participation in Ampio’s or the Company’s plans is not available) provided by Ampio or the Company to Employee at the time of termination for a period of two
years from the date of termination or, if earlier, until he is eligible for comparable coverage with a subsequent employer. The Company agrees to reimburse the payments Employee makes for such coverage, whether via continuation or separate
comparable policy. Premium reimbursements shall be made by the Company to Employee consistent with the Company’s normal expense reimbursement policy, provided that Employee submits documentation to the Company substantiating his payments for
insurance coverage. Employee shall give the Company prompt notice of his eligibility for comparable coverage. 
 (C) All vested stock
options shall remain exercisable from the date of termination until the expiration date of the applicable award. So long as the Section 8 below does not apply, then all options which are unvested at the date of termination Without Cause or
for Good Reason shall be accelerated as of the date of termination such that the number of unvested option shares equal to 1/36th the number of option shares multiplied by the number of full
months of Employee’s employment hereunder shall be deemed vested and immediately exercisable by the Employee. Any unvested options over and above the foregoing shall be cancelled and of no further force or effect, and shall not be exercisable
by the Employee. 
 (D) Any severance payments and/or other separation benefits contemplated by this Agreement are conditional on Employee:
(i) continuing to comply with the terms of this Agreement and the PIA (as defined herein); (ii) delivering prior to or contemporaneously with any such severance payments, and not revoking, (x) a customary general release of claims
relating to Employee’s employment and/or this Agreement against Ampio, the Company or any of their respective successors, subsidiaries and affiliates and their respective directors, officers and stockholders and (y) a customary affirmation
of Employee’s continuing obligations hereunder and under the PIA. 

 Unless otherwise required by law, no severance payments and/or benefits under this Agreement will be paid and/or
provided until after the expiration of any relevant revocation period. 
 8. Change in Control Payments. The provisions of this paragraph 8 set forth
the terms of an agreement reached between Employee and the Company regarding Employee’s rights and obligations upon the occurrence of a “Change in Control” (as hereinafter defined) of the Company during the Term. These provisions are
intended to assure and encourage in advance Employee’s continued attention and dedication to his assigned duties and his objectivity during the pendency and after the occurrence of any such Change in Control. The following provisions shall
apply in the event of a Change in Control, in addition to any payment or benefit that may be required pursuant to Section 7. 
 (a)
Equity. Upon the occurrence of a Change in Control, all stock options, restricted stock and other stock-based grants to Employee by the Company or that may be granted in the future shall, irrespective of any provisions of his award agreements,
immediately and irrevocably vest and become exercisable at a change of control. 
 (b) Definitions. For purposes of this paragraph 8,
the following terms shall have the following meanings: 
 “Change in Control” shall mean any of the following: 

(1) the acquisition by any individual, entity, or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (the
“Acquiring Person”), other than Ampio or the Company, or any of their respective subsidiaries or affiliates, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of the combined
voting power or economic interests of the then outstanding voting securities of the Company entitled to vote generally in the election of directors. 

(2) the acquisition of the Company by another entity by means of any transaction or series of related transactions to which the Company is
party (including, without limitation, any stock acquisition, reorganization, merger or consolidation but excluding any issuance of securities by the Company in a transaction or series of transactions made principally for bona fide equity financing
purposes, other than a transaction or series of related transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction or series of related transactions retain, immediately after such
transaction or series of related transactions, as a result of shares in the Company held by such holders prior to such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting
securities of the Company or such other surviving or resulting entity (or if the Company or such other surviving or resulting entity is a wholly-owned subsidiary immediately following such acquisition, its parent); or 

(3) the sale or other disposition of all or substantially all of the assets of the Company in one transaction or series of related
transactions. 

 9. Proprietary Information and Inventions Agreement. As a condition of Employee’s employment with the
Company, Employee agrees to sign the Company’s standard form of Proprietary Information and Inventions Agreement (“PIA”). 
 10.
Successors and Assigns. 
 (a) Employee. This Agreement is a personal contract, and the rights and interests that the Agreement
accords to Employee may not be sold, transferred, assigned, pledged, encumbered, or hypothecated by him. All rights and benefits of Employee shall be for the sole personal benefit of Employee, and no other person shall acquire any right, title or
interest under this Agreement by reason of any sale, assignment, transfer, claim or judgment or bankruptcy proceedings against Employee. Except as so provided, this Agreement shall inure to the benefit of and be binding upon Employee and his
personal representatives, distributees and legatees. 
 (b) The Company. This Agreement shall be binding upon the Company and inure
to the benefit of the Company and of its successors and assigns, including (but not limited to) any Company that may acquire all or substantially all of the Company’s assets or business or into or with which the Company may be consolidated or
merged. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at
any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company. 

11. Entire Agreement. This Agreement (together with the equity award agreements referred to herein) represents the entire agreement between the parties
concerning Employee’s employment with the Company and supersedes all prior negotiations, discussions, understanding and agreements, whether written or oral, between Employee and the Company relating to the subject matter of this Agreement. 

12. Amendment or Modification, Waiver. No provision of this Agreement may be amended or waived unless such amendment or waiver is agreed to in writing
signed by Employee and by a duly authorized officer of the Company. No waiver by any party to this Agreement or any breach by another party of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver
of a similar or dissimilar condition or provision at the same time, any prior time or any subsequent time. 
 13. Notices. Any notice to be given
under this Agreement shall be in writing and delivered personally or sent by overnight courier or registered or certified mail, postage prepaid, return receipt requested, addressed to the party concerned at the address indicated below, or to such
other address of which such party subsequently may give notice in writing: 
  

					
	If to Employee:	 	3516 Rock Creek Drive	 	
		 	Raleigh, NC 27609	 	

 To the address specified in the payroll records of the Company. 

 

					
	If to the Company:	 	Vyrix Pharmaceuticals, Inc.	 	
		 	c/o Ampio Pharmaceuticals, Inc.	 	
		 	5445 DTC Parkway	 	
		 	Suite 925	 	
		 	Greenwood Village, Colorado 80111	 	

 Any notice delivered personally or by overnight courier shall be deemed given on the date delivered and any
notice sent by registered or certified mail, postage prepaid, return receipt requested, shall be deemed given on the date mailed. 
 14.
Severability. If any provision of this Agreement or the application of any such provision to any party or circumstances shall be determined by any court of competent jurisdiction or arbitrator acting pursuant to Section 19 below to be
invalid and unenforceable to any extent, the remainder of this Agreement or the application of such provision to such person or circumstances other than those to which it is so determined to be invalid and unenforceable shall not be affected, and
each provision of this Agreement shall be validated and shall be enforced to the fullest extent permitted by law. If for any reason any provision of this Agreement containing restrictions is held to cover an area or to be for a length of time that
is unreasonable or in any other way is construed to be too broad or to any extent invalid, such provision shall not be determined to be entirely null, void and of no effect; instead, it is the intention and desire of both the Company and Employee
that, to the extent that the provision is or would be valid or enforceable under applicable law, any court of competent jurisdiction or arbitrator acting pursuant to Section 19 below shall construe and interpret or reform this Agreement to
provide for a restriction having the maximum enforceable area, time period and such other constraints or conditions (although not greater than those contained currently contained in this Agreement) as shall be valid and enforceable under the
applicable law. 
 15. Survivorship. The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement
to the extent necessary to the intended preservation of such rights and obligations. 
 16. Headings. All descriptive headings of sections and
paragraphs in this Agreement are intended solely for convenience of reference, and no provision of this Agreement is to be construed by reference to the heading of any section or paragraph. 

17. Withholding Taxes. All salary, benefits, reimbursements and any other payments to Employee under this Agreement shall be subject to all applicable
payroll and withholding taxes and deductions required by any law, rule or regulation of and federal, state or local authority. 
 18. Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together constitute one and same instrument. The parties agree that facsimile signatures shall have the same force and
effect as original signatures. 
 19. Applicable Law; Arbitration. The validity, interpretation and enforcement of this Agreement and any amendments
or modifications hereto shall be governed by the laws of the State of Colorado, as applied to a contract executed within and to be performed in such State. The parties agree that any disputes shall be definitively resolved by binding arbitration
before the American Arbitration Association in Denver, Colorado in accordance with its rules of arbitration procedure then in effect. The parties consent to the jurisdiction to the federal courts of the District of Colorado or, if there shall be no
jurisdiction, to the state courts located in Arapahoe County, Colorado, to enforce any arbitration award rendered with respect thereto. Each party shall choose one arbitrator and the two arbitrators shall choose a third arbitrator. All costs and
fees related to such arbitration (and judicial enforcement proceedings, if any) shall be borne by the Company unless Employee’s claim is deemed to be frivolous by the arbitrator(s) or judge. 

	20.	Legal Fees. The Company shall pay the reasonable expenses of Employee’s counsel in negotiating this Agreement. 

21. Section 409A. Notwithstanding anything to the contrary in this Agreement, if Employee is a “specified employee” within the meaning
of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the final regulations and any guidance promulgated thereunder (“Section 409A”) at the time of Employee’s termination (other than due to
death), and the severance payable to Employee, if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits which may be considered deferred compensation under Section 409A (together, the
“Deferred Compensation Separation Benefits”) will not and could not under any circumstances, regardless of when such termination occurs, be paid in full by March 15 of the year following Employee’s termination, then only that
portion of the Deferred Compensation Separation Benefits which do not exceed the Section 409A Limit (as defined below) may be made within the first six (6) months following Employee’s termination of employment in accordance with the
payment schedule applicable to each payment or benefit. For these purposes, each severance payment is hereby designated as a separate payment and will not collectively be treated as a single payment. Any portion of the Deferred Compensation
Separation Benefits in excess of the Section 409A Limit shall accrue and, to the extent such portion of the Deferred Compensation Separation Benefits would otherwise have been payable within the first six (6) months following
Employee’s termination of employment, will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Employee’s termination. All subsequent Deferred
Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Employee dies following his termination but prior to the six
(6) month anniversary of his termination, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Employee’s death and all other Deferred
Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit. The foregoing provision is intended to comply with the requirements of Section 409A so that none of the severance
payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and Employee agree to work together in good faith to
consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Employee under Section 409A. For
purposes of this Agreement, “Section 409A Limit” will mean the lesser of two (2) times: (A) Employee’s annualized compensation based upon the annual rate of pay paid to Employee during the Company’s taxable year
preceding the Company’s taxable year of Employee’s termination of employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (B) the maximum
amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Employee’s employment is terminated. 

22. Application of Internal Revenue Code Section 280G. If any payment or benefit Employee would receive pursuant to a Change in Control from the
Company or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999
of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject
to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable 

 
federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Employee’s receipt, on an after-tax basis, of
the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the
Reduced Amount, reduction shall occur in the manner that results in the greatest economic benefit for Employee. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata. 

In the event it is subsequently determined by the Internal Revenue Service that some portion of the Reduced Amount as determined pursuant to clause
(x) in the preceding paragraph is subject to the Excise Tax, Employee agrees to promptly return to the Company a sufficient amount of the Payment so that no portion of the Reduced Amount is subject to the Excise Tax. For the avoidance of doubt,
if the Reduced Amount is determined pursuant to clause (y) in the preceding paragraph, Employee will have no obligation to return any portion of the Payment pursuant to the preceding sentence. 

Unless Employee and the Company agree on an alternative accounting firm, the accounting firm engaged by the Company for general tax compliance purposes as of
the day prior to the effective date of the Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change in
Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder.

 The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to provide its
calculations, together with detailed supporting documentation, to the Employee and the Company within fifteen (15) calendar days after the date on which Employee’s right to a Payment is triggered (if requested at that time by the Employee
or the Company) or such other time as requested by Employee or the Company. 
 23. Indemnification. As a condition to the effectiveness of this
Agreement, the Company and Employee shall enter into a mutually acceptable indemnification agreement. 
 IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first written above. 
  

									
	VYRIX PHARMACEUTICALS, INC.	 		 		 	EMPLOYEE
					
	By:	 	/s/ Michael Macaluso	 		 		 	/s/ Jarrett Disbrow
		 	MICHAEL MACALUSO	 		 		 	JARRETT DISBROW
		 	 Chairman of the Board of Directors
 of Vyrix
Pharmaceuticals, Inc.
	 		 		 	

 EXHIBIT A 

Terms of Compensation 

Management equity grant: 
  

	 	•	 	500,000 total options to purchase shares of the common stock of the Company. The strike price for all options will be equal to the fair market value of the Company’s common stock determined by the board of
directors of the Company, based upon an independent third-party valuation conducted as soon as possible following the date hereof 

  

	 	•	 	All options fully vest upon Change in Control, death, Disability, termination without Cause, termination for Good Reason 

  

	 	•	 	125,000 options are fully vested on the Effective Date 

  

	 	•	 	125,000 options vest 365 days after the Effective Date 

  

	 	•	 	125,000 options vest 730 days after the Effective Date 

  

	 	•	 	125,000 options vest 1095 days after the Effective Date 

 Management milestones that affect cash bonuses

  

	 	1)	Successful administration of any ZertaneTM clinical trials financed by the Company. “Successful” shall mean that the trial was performed on time and on
budget and with a demonstration of efficacy that is statistically significant and the drug is cleared for commercialization by the regulatory authorities in all countries in which commercialization is planned. 

 

	 	2)	Obtain, on terms favorable to the Company, one or more license agreements, partnerships or other collaborations for the commercialization of the Company’s drug portfolio. 

 

	 	3)	Obtain insurance reimbursement codes for each drug that receives regulatory clearance to commercialize. 

  

	 	4)	Within 6 months of the Effective Date, obtain $15 million in equity financing for the Company from outside third party accredited investors (other than Ampio and its affiliates) at a share price in excess of
$5/share.

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