Document:

Exhibit 4.2

 

Execution Version

	
 
    
	
 
    

AMENDED AND RESTATED CREDIT AGREEMENT

 

dated as of

 

October 5, 2015

 

by and among

 

EXTERRAN CORPORATION,
 as Parent,

 

EXTERRAN ENERGY SOLUTIONS, L.P.,
 as Borrower,

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,
 as Administrative Agent,

 

CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK,
 as Syndication Agent,

 

BANK OF AMERICA, N.A.,
 CITIBANK, N.A.
 and
 ROYAL BANK OF CANADA,
 as Co-Documentation Agents

 

and

 

WELLS FARGO SECURITIES, LLC,
 and
 CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK,
 as Joint Bookrunners

 

WELLS FARGO SECURITIES, LLC,
 CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK,
 MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,
 CITIGROUP GLOBAL MARKETS INC.
 and
 RBC CAPITAL MARKETS, LLC,
 as Joint Lead Arrangers

	
 
    
	
 
    

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I   DEFINITIONS AND ACCOUNTING MATTERS
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.01
    	
Certain Defined Terms
    	
1
    
	
Section 1.02
    	
Types of Loans and Borrowings
    	
34
    
	
Section 1.03
    	
Terms Generally; Rules of   Construction
    	
35
    
	
Section 1.04
    	
Accounting Terms and   Determinations; GAAP
    	
35
    
	
Section 1.05
    	
Currency Translation
    	
36
    
	
 
    	
 
    	
 
    
	
ARTICLE II   THE CREDITS
    	
36
    
	
 
    	
 
    	
 
    
	
Section 2.01
    	
Commitments
    	
36
    
	
Section 2.02
    	
Loans and Borrowings
    	
36
    
	
Section 2.03
    	
Requests for Borrowings
    	
38
    
	
Section 2.04
    	
Interest Elections
    	
38
    
	
Section 2.05
    	
Funding of Borrowings
    	
40
    
	
Section 2.06
    	
Termination, Reduction and   Increase of Commitments
    	
40
    
	
Section 2.07
    	
Letters of Credit
    	
43
    
	
Section 2.08
    	
Swingline Loans
    	
49
    
	
Section 2.09
    	
Amend and Extend Transactions
    	
50
    
	
 
    	
 
    	
 
    
	
ARTICLE III   PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES
    	
51
    
	
 
    	
 
    	
 
    
	
Section 3.01
    	
Repayment of Loans
    	
51
    
	
Section 3.02
    	
Interest
    	
51
    
	
Section 3.03
    	
Alternate Rate of Interest
    	
52
    
	
Section 3.04
    	
Prepayments
    	
53
    
	
Section 3.05
    	
Fees
    	
55
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS
    	
56
    
	
 
    	
 
    	
 
    
	
Section 4.01
    	
Payments Generally; Pro Rata   Treatment; Sharing of Set-offs
    	
56
    
	
Section 4.02
    	
Presumption of Payment by the   Borrower
    	
57
    
	
Section 4.03
    	
Certain Deductions by the   Administrative Agent; Defaulting Lenders
    	
58
    
	
 
    	
 
    	
 
    
	
ARTICLE V   INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY
    	
60
    
	
 
    	
 
    	
 
    
	
Section 5.01
    	
Increased Costs
    	
60
    
	
Section 5.02
    	
Break Funding Payments
    	
61
    
	
Section 5.03
    	
Taxes
    	
61
    
	
Section 5.04
    	
Mitigation Obligations;   Replacement of Lenders
    	
65
    
	
Section 5.05
    	
Illegality
    	
66
    
	
 
    	
 
    	
 
    
	
ARTICLE VI   CONDITIONS PRECEDENT
    	
66
    
	
 
    	
 
    	
 
    
	
Section 6.01
    	
Conditions Precedent to the   Effective Date
    	
66
    
	
Section 6.02
    	
Conditions Precedent to the   Initial Availability Date
    	
67
    

 

i

 

TABLE OF CONTENTS

(Continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 6.03
    	
Each Credit Event
    	
70
    
	
 
    	
 
    	
 
    
	
ARTICLE VII   REPRESENTATIONS AND WARRANTIES
    	
70
    
	
 
    	
 
    	
 
    
	
Section 7.01
    	
Legal Existence
    	
70
    
	
Section 7.02
    	
Financial Condition
    	
70
    
	
Section 7.03
    	
Litigation
    	
71
    
	
Section 7.04
    	
No Breach
    	
71
    
	
Section 7.05
    	
Authority
    	
71
    
	
Section 7.06
    	
Approvals
    	
71
    
	
Section 7.07
    	
Use of Loans and Letters of   Credit
    	
71
    
	
Section 7.08
    	
ERISA
    	
72
    
	
Section 7.09
    	
Taxes
    	
72
    
	
Section 7.10
    	
Title, Etc.
    	
72
    
	
Section 7.11
    	
No Material Misstatements
    	
73
    
	
Section 7.12
    	
Investment Company Act
    	
73
    
	
Section 7.13
    	
Subsidiaries
    	
73
    
	
Section 7.14
    	
Location of Offices
    	
73
    
	
Section 7.15
    	
Defaults
    	
73
    
	
Section 7.16
    	
Environmental Matters
    	
73
    
	
Section 7.17
    	
Compliance with Laws
    	
74
    
	
Section 7.18
    	
Insurance
    	
74
    
	
Section 7.19
    	
Hedging Agreements
    	
74
    
	
Section 7.20
    	
Restriction on Liens
    	
75
    
	
Section 7.21
    	
Anti-Terrorism Law; Sanctions
    	
75
    
	
Section 7.22
    	
Security Instruments
    	
75
    
	
Section 7.23
    	
Flood Insurance and Mortgage   Related Matters
    	
76
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII   AFFIRMATIVE COVENANTS
    	
77
    
	
 
    	
 
    	
 
    
	
Section 8.01
    	
Reporting Requirements
    	
77
    
	
Section 8.02
    	
Maintenance, Etc.
    	
78
    
	
Section 8.03
    	
Environmental Matters
    	
79
    
	
Section 8.04
    	
Further Assurances
    	
80
    
	
Section 8.05
    	
Performance of Obligations under   Loan Documents
    	
80
    
	
Section 8.06
    	
Collateral and Guarantees
    	
80
    
	
Section 8.07
    	
Post-Closing Matters
    	
83
    
	
 
    	
 
    	
 
    
	
ARTICLE IX   NEGATIVE COVENANTS
    	
84
    
	
 
    	
 
    	
 
    
	
Section 9.01
    	
Indebtedness
    	
84
    
	
Section 9.02
    	
Liens
    	
87
    
	
Section 9.03
    	
Investments
    	
88
    
	
Section 9.04
    	
Restricted Payments
    	
88
    
	
Section 9.05
    	
Nature of Business; Activities of   Parent
    	
89
    
	
Section 9.06
    	
Mergers, Etc.
    	
90
    
	
Section 9.07
    	
Proceeds of Loans; Letters of   Credit
    	
90
    
	
Section 9.08
    	
Sale or Discount of Receivables
    	
91
    
	
Section 9.09
    	
Fiscal Year Change
    	
91
    

 

ii

 

TABLE OF CONTENTS

(Continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 9.10
    	
Financial Covenants
    	
91
    
	
Section 9.11
    	
Disposition of Properties
    	
91
    
	
Section 9.12
    	
Environmental Matters
    	
92
    
	
Section 9.13
    	
Transactions with Affiliates
    	
92
    
	
Section 9.14
    	
Subsidiaries; Unrestricted   Subsidiaries
    	
93
    
	
Section 9.15
    	
Restrictive Agreements
    	
94
    
	
Section 9.16
    	
Prepayments
    	
95
    
	
Section 9.17
    	
Amendments to Permitted Term Loan   Refinancing Indebtedness Documents
    	
96
    
	
 
    	
 
    	
 
    
	
ARTICLE X   EVENTS OF DEFAULT; REMEDIES
    	
96
    
	
 
    	
 
    	
 
    
	
Section 10.01
    	
Events of Default
    	
96
    
	
Section 10.02
    	
Remedies
    	
98
    
	
 
    	
 
    	
 
    
	
ARTICLE XI   THE AGENTS
    	
99
    
	
 
    	
 
    	
 
    
	
Section 11.01
    	
Appointment; Powers
    	
99
    
	
Section 11.02
    	
Duties and Obligations of   Administrative Agent
    	
99
    
	
Section 11.03
    	
Action by Administrative Agent
    	
100
    
	
Section 11.04
    	
Reliance by Administrative Agent
    	
100
    
	
Section 11.05
    	
Subagents
    	
100
    
	
Section 11.06
    	
Resignation or Removal of   Administrative Agent
    	
101
    
	
Section 11.07
    	
Agents as Lenders
    	
101
    
	
Section 11.08
    	
No Reliance
    	
101
    
	
Section 11.09
    	
Administrative Agent   May File Proofs of Claim
    	
102
    
	
Section 11.10
    	
Authority of Administrative Agent   to Release Collateral and Liens
    	
102
    
	
Section 11.11
    	
The Joint Lead Arrangers, the   Joint Bookrunners, the Syndication Agent and the Co-Documentation Agents
    	
103
    
	
Section 11.12
    	
Authorization to Enter into   Intercreditor Agreement
    	
103
    
	
 
    	
 
    	
 
    
	
ARTICLE XII   MISCELLANEOUS
    	
103
    
	
 
    	
 
    	
 
    
	
Section 12.01
    	
Notices
    	
103
    
	
Section 12.02
    	
Waivers; Amendments
    	
104
    
	
Section 12.03
    	
Expenses, Indemnity; Damage   Waiver
    	
105
    
	
Section 12.04
    	
Successors and Assigns
    	
107
    
	
Section 12.05
    	
Survival; Revival; Reinstatement
    	
110
    
	
Section 12.06
    	
Counterparts; Integration;   Effectiveness
    	
111
    
	
Section 12.07
    	
Severability
    	
111
    
	
Section 12.08
    	
Right of Setoff
    	
111
    
	
Section 12.09
    	
Governing Law; Jurisdiction;   Consent to Service of Process
    	
112
    
	
Section 12.10
    	
Headings
    	
113
    
	
Section 12.11
    	
Confidentiality
    	
113
    
	
Section 12.12
    	
Interest Rate Limitation
    	
113
    
	
Section 12.13
    	
Exculpation Provisions
    	
114
    
	
Section 12.14
    	
Collateral Matters; Hedging   Agreements; Treasury Management Agreements
    	
115
    
	
Section 12.15
    	
No Third Party Beneficiaries
    	
115
    

 

iii

 

TABLE OF CONTENTS

(Continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 12.16
    	
USA PATRIOT Act Notice
    	
115
    
	
Section 12.17
    	
No Fiduciary Duty
    	
115
    
	
Section 12.18
    	
Conversion of Currencies
    	
116
    
	
Section 12.19
    	
Amendment and Restatement
    	
116
    

 

iv

 

TABLE OF CONTENTS

(Continued)

 

EXHIBITS AND SCHEDULES

 

	
Annex   I
    	
Commitments
    
	
 
    	
 
    
	
Exhibit A-1
    	
Form of   Revolving Note
    
	
Exhibit A-2
    	
Form of   Term Loan Note
    
	
Exhibit B
    	
Form of   Borrowing Request
    
	
Exhibit C
    	
Form of   Interest Election Request
    
	
Exhibit D
    	
Form of   Compliance Certificate
    
	
Exhibit E
    	
Form of   Assignment and Assumption
    
	
Exhibit F
    	
Security   Instruments
    
	
Exhibit G
    	
[Reserved]
    
	
Exhibit H-1
    	
Form of   Commitment Increase Certificate
    
	
Exhibit H-2
    	
Form of   Additional Lender Certificate
    
	
Exhibit I-1
    	
Form of   U.S. Tax Certificate (Foreign Lenders; not partnerships)
    
	
Exhibit I-2
    	
Form of   U.S. Tax Certificate (Foreign participants; not partnerships)
    
	
Exhibit I-3
    	
Form of   U.S. Tax Certificate (Foreign participants; partnerships)
    
	
Exhibit I-4
    	
Form of   U.S. Tax Certificate (Foreign Lenders; partnerships)
    
	
 
    	
 
    
	
Schedule   1.01(a)
    	
Separation   Documents
    
	
Schedule   1.01(b)
    	
Unrestricted   Subsidiaries
    
	
Schedule   1.02(a)
    	
Existing   Letters of Credit
    
	
Schedule   1.02(b)
    	
LC   Issuance Limit
    
	
Schedule   7.03
    	
Litigation
    
	
Schedule   7.09
    	
Taxes
    
	
Schedule   7.10
    	
Titles,   Etc.
    
	
Schedule   7.13
    	
Subsidiaries
    
	
Schedule   7.16
    	
Environmental   Matters
    
	
Schedule   7.19
    	
Hedging   Agreements
    
	
Schedule   7.20
    	
Restriction   on Liens
    
	
Schedule   7.22
    	
Jurisdictions   for Security Instrument Filings
    
	
Schedule   7.23
    	
Flood   Properties
    
	
Schedule   8.06
    	
Excluded   Collateral
    
	
Schedule   9.01
    	
Indebtedness
    
	
Schedule   9.02
    	
Liens
    
	
Schedule   9.03
    	
Investments,   Loans and Advances
    
	
Schedule   9.11(f)
    	
Permitted   Dispositions of Property
    
	
Schedule   9.13
    	
Transactions   with Affiliates
    

 

i

 

THIS AMENDED AND RESTATED CREDIT AGREEMENT dated as of October 5, 2015 is by and among EXTERRAN CORPORATION, a Delaware corporation (“Parent”), EXTERRAN ENERGY SOLUTIONS, L.P., a Delaware limited partnership (the “Borrower”), the Lenders from time to time party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Administrative Agent.

 

R E C I T A L S

 

A.                                    Parent, the Borrower, the Administrative Agent and the other agents and lenders party thereto are parties to that certain Credit Agreement dated as of July 10, 2015, pursuant to which such lenders agreed to provide certain loans to and extensions of credit on behalf of the Borrower, subject to certain conditions (the “Existing Credit Agreement”).

 

B.                                    The parties hereto desire to amend and restate the Existing Credit Agreement in its entirety in the form of this Agreement to (i) renew the agreement by the Lenders to provide certain loans to and extensions of credit on behalf of the Borrower and (ii) amend certain other terms of the Existing Credit Agreement in certain respects as provided in this Agreement.

 

C.                                    Subject to the occurrence of the Initial Availability Date and such other terms and conditions set forth in this Agreement, the Lenders have agreed to make loans to and extensions of credit on behalf of the Borrower.

 

D.                                    In consideration of the mutual covenants and agreements herein contained and of the loans, extensions of credit and commitments hereinafter referred to, the parties hereto agree that the Existing Credit Agreement is hereby amended, renewed, extended and restated in its entirety in the form of this Agreement on (and subject to) the terms and conditions set forth herein.  The parties hereto further agree as follows:

 

ARTICLE I
 Definitions and Accounting Matters

 

Section 1.01                             Certain Defined Terms.  As used in this Agreement, the following terms have the meanings specified below:

 

“ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Base Rate.

 

“ABS Facility” means any asset-backed securitization facility of an ABS Subsidiary to the extent such Subsidiary is permitted to enter into such facility pursuant to Section 9.01(m).

 

“ABS Subsidiary” means any Subsidiary involved in or created in connection with any ABS Facility, including any Subsidiary that is obligated on any Indebtedness in respect of any ABS Facility.

 

“Additional Revolving Lender” has the meaning assigned to such term in Section 2.06(c)(i).

 

“Additional Revolving Lender Certificate” has the meaning assigned to such term in Section 2.06(c)(ii)(G).

 

“Adjusted LIBO Rate” means with respect to any LIBOR Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to the product of (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

 

 

“Administrative Agent” means Wells Fargo Bank, National Association, in its capacity as administrative agent hereunder and under the other Loan Documents, and its successors in such capacity as provided in Section 11.06.

 

“Administrative Agent Fee Letter” means that certain amended and restated letter agreement among the Borrower, the Administrative Agent and Wells Fargo Securities, LLC dated October 5, 2015, and any other letter agreement among the Borrower and the Administrative Agent entered into from time to time, in each case, concerning, among other things, certain fees to be paid by the Borrower to the Administrative Agent in connection with this Agreement and as may be amended or replaced from time to time.

 

“Administrative Questionnaire” means an Administrative Questionnaire in a standard form supplied from time to time by the Administrative Agent.

 

“Affected Loans” has the meaning assigned to such term in Section 5.05.

 

“Affiliate” means with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

 

“Agents” means, collectively, the Administrative Agent, the Syndication Agent and the Co-Documentation Agents, and “Agent” means any of the Administrative Agent, the Syndication Agent or any Co-Documentation Agent, as the context requires.

 

“Aggregate Revolving Commitments” at any time shall equal the sum of the Revolving Commitments at such time.  As of the Effective Date, the amount of the Aggregate Revolving Commitments is $680,000,000.

 

“Agreement” means this Amended and Restated Credit Agreement, as the same may from time to time be amended, modified, supplemented or restated.

 

“Agreement Currency” has the meaning assigned to such term in Section 12.18(b).

 

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to any Loan Party or any of its Subsidiaries from time to time concerning or relating to bribery or corruption, including the United States Foreign Corrupt Practices Act of 1977.

 

“Anti-Terrorism Laws” has the meaning assigned to such term in Section 7.21(a).

 

“Applicable Creditor” has the meaning assigned to such term Section 12.18(b).

 

“Applicable Lending Office” means, for each Lender and for each Type of Loan, the lending office of such Lender designated for such Type of Loan on the signature pages hereof or such other offices of such Lender as such Lender may from time to time specify to the Administrative Agent and the Borrower as the office from which its Loans of such Type are to be made and maintained.

 

“Applicable Margin” means (a) with respect to Term Loans, (i) 4.75% for any ABR Term Loan and (ii) 5.75% for any LIBOR Term Loan and (b) for any day, with respect to any LIBOR Loan, EURIBOR Loan or ABR Loan that is a Revolving Loan, or with respect to Revolving Commitment Fees, the applicable rate per annum set forth in the table below under the caption “LIBOR Loans / EURIBOR Loans”, “ABR Loans” or “Revolving Commitment Fees”, as the case may be, determined by reference to the Total Leverage Ratio as of the most recent date of determination:

 

2

 

	
Level
    	
 
    	
Total Leverage Ratio
    	
 
    	
LIBOR Loans /
   EURIBOR
   Loans (bps)
    	
 
    	
ABR Loans
   (bps)
    	
 
    	
Revolving
   Commitment
   Fees (bps)
    	
 
    
	
I
    	
 
    	
Less than or equal to 1.5 to 1.0
    	
 
    	
150.0
    	
 
    	
50.0
    	
 
    	
25.0
    	
 
    
	
II
    	
 
    	
Less than or equal to 2.0 to 1.0 but greater than 1.5 to 1.0
    	
 
    	
175.0
    	
 
    	
75.0
    	
 
    	
25.0
    	
 
    
	
III
    	
 
    	
Less than or equal to 2.5 to 1.0 but greater than 2.0 to 1.0
    	
 
    	
200.0
    	
 
    	
100.0
    	
 
    	
30.0
    	
 
    
	
IV
    	
 
    	
Less than or equal to 3.0 to 1.0 but greater than 2.5 to 1.0
    	
 
    	
225.0
    	
 
    	
125.0
    	
 
    	
35.0
    	
 
    
	
V
    	
 
    	
Less than or equal to 3.5 to 1.0 but greater than 3.0 to 1.0
    	
 
    	
250.0
    	
 
    	
150.0
    	
 
    	
40.0
    	
 
    
	
VI
    	
 
    	
Greater than 3.5 to 1.0
    	
 
    	
275.0
    	
 
    	
175.0
    	
 
    	
50.0
    	
 
    

 

provided that, with respect to the rates set forth in the table above under the caption “LIBOR Loans / EURIBOR Loans”, (i) from and after the Initial Availability Date until and including the first anniversary of the Initial Availability Date, for so long as no Qualified Capital Raise has occurred, such rate as set forth in the table above shall be increased by 100.0 basis points and (ii) following the first anniversary of the Initial Availability Date, for so long as no Qualified Capital Raise has occurred, such rate as set forth in the table above shall be increased by 150.0 basis points.

 

For purposes of determining the Applicable Margin for the period commencing on the Initial Availability Date and ending upon the date of the first delivery after the Initial Availability Date of financial statements and compliance calculations pursuant to Sections 8.01(a) and 8.01(b), the Total Leverage Ratio will be deemed to be that which corresponds to Level II.  Each change in the Applicable Margin resulting from a change in the Total Leverage Ratio (which shall be calculated quarterly) shall take effect as of the fifth Business Day following the receipt of the Compliance Certificate delivered pursuant to Section 8.01(b); provided that the Total Leverage Ratio shall be deemed to be Level VI if the Borrower fails to deliver the annual or quarterly consolidated financial statements required to be delivered by it pursuant to Sections 8.01(a) and 8.01(b), respectively, during the period from the expiration of the time for delivery thereof until such consolidated financial statements are delivered.  In the event that any financial statement or Compliance Certificate delivered pursuant to Section 8.01(a) or (b) is shown to be inaccurate (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, and only in such case, then Parent and the Borrower shall promptly (i) deliver to the Administrative Agent a corrected Compliance Certificate for such Applicable Period, (ii) determine the Applicable Margin for such Applicable Period based upon the corrected Compliance Certificate, and (iii) pay to the Administrative Agent the accrued additional interest owing as a result of such increased Applicable Margin for such Applicable Period, which payment shall be promptly applied by the Administrative Agent in accordance with Section 4.01.  The preceding sentence is in addition to rights of the Administrative Agent and Lenders with respect to Sections 3.02(e), 10.01 and 10.02 and other of their respective rights under this Agreement.

 

3

 

“Applicable Percentage” means, with respect to any Lender at any time, the fraction expressed as a percentage obtained by dividing (a) the sum of (i) the principal amount of such Lender’s outstanding Term Loans (or, prior to the funding of the Term Loans on the Initial Availability Date, such Lender’s Term Loan Commitment) at such time plus (ii) the amount of such Lender’s Revolving Commitment at such time by (b) the sum of (i) the total outstanding principal amount of all Term Loans (or, prior to the funding of the Term Loans on the Initial Availability Date, the aggregate Term Loan Commitments of all of the Term Loan Lenders) at such time plus (ii) the amount of the Aggregate Revolving Commitments at such time.  If all of the Revolving Commitments have terminated or expired, the Applicable Percentages shall instead be determined by reference to each Lender’s Revolving Credit Exposure at such time in clause (a) (as opposed to such Lender’s Revolving Commitment) and the Total Revolving Credit Exposure at such time in clause (b) (as opposed to the Aggregate Revolving Commitments).

 

“Applicable Revolving Percentage” means, with respect to any Revolving Lender at any time, the percentage of the Aggregate Revolving Commitments represented by such Lender’s Revolving Commitment at such time.  If all of the Revolving Commitments have terminated or expired, the Applicable Revolving Percentages shall be determined based upon the percentage of the Total Revolving Credit Exposure at such time represented by each Lender’s Revolving Credit Exposure at such time.

 

“Applicable Term Loan Percentage” means, with respect to any Term Loan Lender at any time, the percentage of the total outstanding principal amount of all Term Loans represented by such Term Loan Lender’s outstanding Term Loans at such time (or, prior to the funding of the Term Loans on the Initial Availability Date, the percentage of the aggregate Term Loan Commitments of all the Term Loan Lenders represented by such Term Loan Lender’s Term Loan Commitment at such time).

 

“AROC Corp.” means AROC Corp., a Delaware corporation.

 

“Asset Swap” means any substantially contemporaneous (and in any event occurring within 180 days of each other) purchase and sale or exchange of any assets or properties used or useful in the lines of business permitted under Section 9.05 between the Borrower or any Restricted Subsidiaries and another Person, so long as the consideration received by the Borrower or any Restricted Subsidiary is substantially the same as or greater than the fair market value of the assets or properties Disposed of by the Borrower or such Restricted Subsidiary, as reasonably determined by the Borrower.

 

“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 12.04), and accepted by the Administrative Agent, in the form of Exhibit E or any other form reasonably approved by the Administrative Agent.

 

“Attributable Debt” in respect of a sale and leaseback transaction means, at the time of determination, the present value of the obligation of the lessee for net rental payments during the remaining term of the lease included in such sale and leaseback transaction including any period for which such lease has been extended or may, at the option of the lessor, be extended. Such present value shall be calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with GAAP.  As used in this definition, the phrase “net rental payments” under any lease for any such period shall mean the sum of rental and other payments required to be paid with respect to such period by the lessee thereunder, excluding any amounts required to be paid by such lessee on account of maintenance and repairs, insurance, taxes, assessments, water rates or similar charges. In the case of any lease that is terminable by the lessee upon payment of penalty, such net rental payment shall also include the amount of such penalty, but no rent shall be considered as required to be paid under such lease subsequent to the first date upon which it may be so terminated.

 

4

 

“Availability Period” means the period from and including the Initial Availability Date to but excluding the Termination Date.

 

“Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States Code, as amended, modified, succeeded or replaced from time to time.

 

“Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1% and (c) the LIBO Rate for a one month interest period on such day (or if such day is not a Business Day, the immediately preceding Business Day) for a deposit in dollars with a maturity of one month plus 1% per annum; provided that, for purposes of this definition, the LIBO Rate on any day shall be based on the rate per annum as set forth by Bloomberg Information Service or any successor thereto on the applicable page displaying interest rates for dollar deposits in the Relevant Interbank Market at approximately 11:00 a.m., London time, on such day for deposits in dollars with a maturity of one month.  Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or the LIBO Rate, respectively.

 

“Board” means the Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority.

 

“Borrower” has the meaning assigned to such term in the preamble hereto.

 

“Borrowing” means a Revolving Borrowing, a Term Loan Borrowing, or a Swingline Borrowing.

 

“Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section 2.03.

 

“Building” has the meaning assigned to such term in the applicable Flood Insurance Law.

 

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in Houston, Texas are authorized or required by law to remain closed; provided that (a) when used in connection with a LIBOR Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank market, and (b) when used in connection with a EURIBOR Loan, the term “Business Day” shall also exclude any day on which the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET2) payment system is not open for the settlement of payments in Euros.

 

“Capital Expenditures” means, without duplication, any expenditure or commitment to expend money for any purchase or other acquisition of any asset which would be classified as a fixed or capital asset on a consolidated balance sheet of Parent and its Restricted Subsidiaries prepared in accordance with GAAP.

 

“Capital Lease” means a lease of (or other arrangement conveying the right to use) real and/or personal Property, or a combination thereof, with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a Indebtedness in accordance with GAAP.

 

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“Capital Lease Obligations” means, as to any Person, all obligations of such Person as lessee under any Capital Lease, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

 

“Cash Equivalents” means:

 

(a)                                 securities issued or directly and fully guaranteed or insured by the government of the United States or any other country whose sovereign debt has a rating of at least A3 from Moody’s and at least A- from S&P or any agency or instrumentality thereof having maturities of not more than twelve (12) months from the date of acquisition;

 

(b)                                 certificates of deposit and eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers’ acceptances with maturities not exceeding one year and overnight bank deposits, in each case with any commercial bank organized under the laws of any country that is a member of the Organization for Economic Cooperation and Development having capital and surplus in excess of $500,000,000 (or the equivalent thereof in any other currency or currency unit) and has a short term deposit rating of no lower than A2 or P2, as such rating is set forth from time to time by S&P or Moody’s, respectively;

 

(c)                                  repurchase obligations with a term of not more than thirty (30) days for underlying securities of the types described in clauses (a) and (b) above entered into with any financial institution meeting the qualifications specified in clause (b) above;

 

(d)                                 commercial paper rated at least P2 or A2 from Moody’s or S&P, or carrying an equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of investments, and in each case maturing within one year after the date of acquisition;

 

(e)                                  solely with respect to deposits of Foreign Subsidiaries, deposits available for withdrawal on demand with any commercial bank not meeting the qualifications specified in clause (b) above; and

 

(f)                                   money market mutual funds substantially all of the assets of which are of the type described in the foregoing clauses (a) through (d).

 

“CFC” means any Subsidiary that is a “controlled foreign corporation” within the meaning of Section 957 of the Code.

 

“Change in Control” means (a) at any time prior to the Initial Availability Date, the occurrence of one or more of the following events: (i) the approval by the holders of Equity Interests in the Borrower of any plan or proposal for the liquidation or dissolution of the Borrower (whether or not otherwise in compliance with the provisions of this Agreement); (ii) any Person or “group” (within the meaning of Section 13(d) of the Exchange Act as in effect on the date hereof) shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act as in effect on the date hereof) of shares representing more than 50% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of EXH; or (iii) EXH ceases to own, directly or indirectly, 100% of the Equity Interests in Parent or the Borrower; or (b) at any time on or after the Initial Availability Date, the occurrence of one or more of the following events: (i) Parent ceases to own, directly or indirectly, 100% of the Equity Interests in the Borrower; (ii) the approval by the holders of Equity Interests in the Borrower of any plan or proposal for the liquidation or dissolution of the Borrower (whether or not otherwise in compliance with the provisions of this Agreement) or (iii) any Person or “group” (within the meaning of Section 13(d) of the Exchange Act as in effect on the date hereof) shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act as in effect on the date hereof), of shares representing more than 50% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of Parent; provided that the consummation of the Separation Transaction and any related transaction contemplated by the Separation Documents, in each case occurring substantially contemporaneously with the Initial Availability Date, shall be deemed not to be a Change in Control.

 

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“Change in Law” means the occurrence, after the Effective Date, of any of the following:  (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that, notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

 

“Class” means, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Term Loans or Swingline Loans.

 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute (except as otherwise provided herein).

 

“Co-Documentation Agents” means, collectively, Bank of America, N.A., Citibank, N.A. and Royal Bank of Canada.

 

“Collateral” means all Property of the Group Members that is subject to a Lien in favor of the Administrative Agent, for the benefit of the Secured Parties, under one or more of the Security Instruments.

 

“Commitment” means the Revolving Commitment and/or the Term Loan Commitment of a Lender, as the context requires, and “Commitments” means, collectively, the Revolving Commitments and the Term Loan Commitments of all of the Lenders.

 

“Compliance Certificate” has the meaning assigned to such term in Section 8.01(b).

 

“Confidential Information” has the meaning assigned to such term in Section 12.11.

 

“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

 

“Consolidated Net Income” means for any period, the aggregate of the net income (or loss) of Parent and its Consolidated Restricted Subsidiaries after allowances for taxes for such period, determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded from such net income (to the extent otherwise included therein) the following (without duplication):  (a) the net income (or loss) of any Person in which Parent or any of its Consolidated Restricted Subsidiaries has an interest (which interest does not cause the net income of such other Person to be consolidated with the net income of Parent and its Consolidated Restricted Subsidiaries in accordance with GAAP), except to the extent of the amount of cash dividends or distributions actually paid during such period by such other Person to Parent or to a Consolidated Restricted Subsidiary of Parent, as the case may be; (b) an amount equal to the portion of the net income (but not loss) of any Consolidated Restricted Subsidiary of Parent that is not at the time permitted (whether by operation of the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such Consolidated Restricted Subsidiary or otherwise) to be distributed, paid, repaid, loaned or otherwise transferred to Parent or any of Parent’s other Consolidated Restricted Subsidiaries; provided that upon the removal of such restriction, the aggregate net income of such Consolidated Restricted Subsidiary previously excluded within the immediately preceding four (4) fiscal quarters shall be added to the net income of Parent and its Consolidated Restricted Subsidiaries for the same quarters; (c) any extraordinary gains or losses; (d) gains or losses attributable to Property sales not in the ordinary course of business; (e) the cumulative effect of a change in accounting principles and any gains or losses attributable to writeups or write downs of assets; (f) gains, losses or other charges as a result of the early retirement of Indebtedness, including obligations under Hedging Agreements; (g) non-cash gains or losses as a result of foreign currency adjustments and (h) costs related to the issuance of long-term Indebtedness to the extent such costs are paid from the proceeds of such Indebtedness or are paid substantially concurrently with the issuance of such Indebtedness.

 

7

 

“Consolidated Net Tangible Assets” means, with respect to Parent as of any date, the aggregate amount of total assets included in the most recent annual or quarterly consolidated balance sheet of Parent and its Consolidated Restricted Subsidiaries, determined on a consolidated basis in accordance with GAAP and after deducting therefrom, to the extent otherwise included, unamortized debt discount and expenses and other unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights, licenses, organization or development expenses and other intangible items.

 

“Consolidated Restricted Subsidiary” means any Restricted Subsidiary that is a Consolidated Subsidiary of Parent.

 

“Consolidated Subsidiary” of a Person means each Subsidiary of such Person, the financial statements of which are (or should be) consolidated with the financial statements of such Person in accordance with GAAP.

 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.

 

“Customary Recourse Exceptions” means, with respect to any Non-Recourse Indebtedness of an Unrestricted Subsidiary, exclusions from the exculpation provisions with respect to such Non-Recourse Indebtedness for the voluntary bankruptcy of such Unrestricted Subsidiary, fraud, misapplication of cash, environmental claims, waste, willful destruction and other circumstances customarily excluded by lenders from exculpation provisions or included in separate indemnification agreements in non-recourse financings.

 

“Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

 

“Defaulting Lender” means, at any time, any Lender that has (a) failed to fund any portion of its Loans or participations in Letters of Credit or Swingline Loans within two (2) Business Days of the date required to be funded by it hereunder, unless, in the case of a failure by such Lender to fund any portion of its Loans, such Lender notifies the Administrative Agent in writing prior to the date on which such funding is required to be made by it hereunder that such failure is the result of such Lender’s good faith determination that a condition precedent to funding (specifically identified and including the particular default, if any) has not been satisfied, (b) notified any Loan Party, the Administrative Agent, any Issuing Bank, the Swingline Lender or any Lender in writing, or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Lender’s good faith determination that a condition precedent (specifically identified and including the particular default, if any) to funding a Loan under this Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit, (c) failed, within three (3) Business Days after request by the Borrower or the Administrative Agent, to confirm in writing that it will comply with the terms of this Agreement relating to its obligations to fund prospective Loans and participations in then outstanding Letters of Credit (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Borrower or the Administrative Agent in form and substance satisfactory to the Borrower or the Administrative Agent, as the case may be), (d) otherwise failed to pay over to the Administrative Agent, any Issuing Bank or any Lender any other amount required to be paid by it hereunder within two (2) Business Days of the date when due, unless the subject of a good faith dispute, or (e) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, administrator, trustee, custodian or similar Person appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment, or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, administrator, trustee, custodian or similar Person appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment; provided that a Lender shall not become a Defaulting Lender solely as the result of the acquisition or maintenance of an ownership interest in such Lender or its parent company, or the exercise of control over such Lender or its parent company, by a Governmental Authority, as long as such ownership interest or exercise of control does not result in or provide such Lender or its parent company with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender or its parent company (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any such Agreements made by such Lender or its parent company.

 

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“Disclosing Parties” has the meaning assigned to such term in Section 12.11.

 

“Dispose” means to sell, lease, assign, exchange, convey or otherwise transfer (excluding the granting of a Lien on) any Property.  “Disposition” has a meaning correlative thereto.  For the avoidance of doubt, payments made by the Borrower to AROC Corp. pursuant to Sections 9.7 and 9.8 of the Separation and Distribution Agreement shall not constitute a Disposition by Parent or any of its Subsidiaries.

 

“Disqualified Capital Stock” means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Indebtedness or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is one-hundred eighty (180) days after the Revolving Maturity Date.

 

“Disqualified Institution” means, on any date, any Person that is a bona fide direct competitor of Parent, the Borrower or any of its Subsidiaries whose active and primary business is in the same or a substantially similar industry which offers a substantially similar product or services as Parent or the Borrower or its Subsidiaries; provided that any bona fide debt fund or investment vehicle that is engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of business which is managed, sponsored or advised by any Person Controlling, Controlled by or under common Control with such Disqualified Institution or its Controlling owner and for which no personnel involved with the competitive activities of such competitor or Controlling owner (i) makes any investment decisions for such debt fund or (ii) has access to any confidential information (other than publicly available information) relating to Parent, the Borrower and its Subsidiaries shall be deemed not to be a Disqualified Institution.

 

9

 

“Dissolved Subsidiary” has the meaning assigned to such term in Section 8.06(c)(ii).

 

“dollars”, “Dollars”, “US Dollars” or “$” refers to lawful money of the United States of America.

 

“Domestic Subsidiary” means each Restricted Subsidiary that is not a Foreign Subsidiary.

 

“EBITDA” means, for any period, the sum of Consolidated Net Income for such period plus the following consolidated expenses or charges to the extent deducted from Consolidated Net Income for such period: (a) total interest expense (as reflected on the consolidated income statement for such period), (b) taxes, (c) depreciation, (d) amortization, (e) fees and expenses incurred or paid in connection with the consummation of acquisitions, (f) fees and expenses incurred in connection with the Separation Transaction to the extent such fees and expenses are incurred on or prior to the last day of the first full Fiscal Quarter commencing on or after the Initial Availability Date, (g) cash from distributions actually received by Parent or any Consolidated Restricted Subsidiary during such period from Unrestricted Subsidiaries; provided that the amount of such cash distributions included pursuant to this clause (g) shall not exceed 25% of the total EBITDA during such period (as calculated prior to including any such cash distributions) and (h) other non-cash charges, provided that any cash actually paid in any future period with respect to such non-cash charges shall be deducted from EBITDA for such future period when paid; provided further that if at any time during such period Parent or any Consolidated Restricted Subsidiary shall have made any individual acquisition or Disposition with a sale price in excess of $50,000,000, EBITDA for such period shall be calculated giving pro forma effect thereto as if such acquisition or Disposition had occurred on the first day of such period (such pro forma effect to include projected synergies) as determined by the Borrower in a manner reasonably acceptable to the Administrative Agent.

 

“Effective Date” means the date on which the conditions specified in Section 6.01 are satisfied (or waived in accordance with Section 12.02).

 

“Effective Date Versions” means the forms of the Separation Documents delivered by the Borrower pursuant to Section 6.01(c).

 

“Environmental Laws” means all Governmental Requirements pertaining to protection, conservation, preservation or reclamation of the environment; to the use, handling or Release of Hazardous Materials; to occupational safety and health requirements; or to the protection of natural resources, as in effect in any and all jurisdictions in which the Borrower or any Subsidiary is or has conducted business or is or has generated, sent or Released any Hazardous Material, or where any Property of the Borrower or any Subsidiary is or was located, including without limitation, the Oil Pollution Act of 1990 and the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980, including, without limitation, all state, national and international corollary laws, as each are amended from time to time.

 

“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interests.

 

10

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with any Loan Party, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.

 

“ERISA Event” means (a) any “reportable event”, as defined in Section 4043(c) of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) failure to satisfy the minimum funding standards under Section 412 of the Code or Section 302 of ERISA, whether or not waived; (c) the filing pursuant to Section 412(c) of the Code or Section 303(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by any Loan Party or any ERISA Affiliate of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by any Loan Party or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or to appoint a trustee to administer any Plan; (f) the incurrence by any Loan Party or any ERISA Affiliate of any liability with respect to the withdrawal from any Plan subject to Section 4063 of ERISA during a plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2) of ERISA; (g) the receipt by any Loan Party or any ERISA Affiliate of any notice imposing Withdrawal Liability or receipt by any Loan Party or any ERISA Affiliate of any notice that a Multiemployer Plan is insolvent or in endangered or critical status within the meaning of Title IV of ERISA; or (h) with regard to any Foreign Plan, (x) the failure to make or, if applicable, accrue in accordance with normal accounting practices, any employer or employee contributions required by applicable law or the terms of such Foreign Plan, (y) the failure to register or loss of good standing with the applicable regulatory authorities of any such Foreign Plan required to be registered, or (z) the failure of any Foreign Plan to comply with any material provisions of applicable law and regulations or with the material terms of such Foreign Plan.

 

“EURIBO Rate” means, with respect to any EURIBOR Borrowing for any Interest Period, the applicable Screen Rate as of the Specified Time on the Quotation Day (rounded upwards, if necessary, to the next 1/100 of 1%).

 

“EURIBOR”, when used in reference to any Loan or any Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the EURIBO Rate.

 

“Euro” or “€” means the single currency unit of the member States of the European Community that adopt or have adopted the Euro as their lawful currency in accordance with legislation of the European Community relating to Economic and Monetary Union.

 

“Event of Default” has the meaning assigned to such term in Section 10.01.

 

11

 

“Excepted Liens” means (a) Liens for Taxes, assessments, public or statutory obligations or other governmental charges or levies which (i) are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP or (ii) could not reasonably be expected to have a Material Adverse Effect individually or in the aggregate for all Excepted Liens contained in clauses (a), (b), (c), (d) and (e) of this definition; (b) Liens in connection with workmen’s compensation, unemployment insurance or other social security, old age pension or public liability obligations which (i) are not yet due or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP or (ii) could not reasonably be expected to have a Material Adverse Effect individually or in the aggregate for all Excepted Liens contained in clauses (a), (b), (c), (d) and (e) of this definition; (c) landlords’, operators’, vendors’, carriers’, warehousemen’s, repairmen’s, mechanics’, workmen’s, materialmen’s, construction or other like Liens arising by operation of law or otherwise in the ordinary course of business, each of which (i) is in respect of obligations that have not been overdue more than 90 days or (ii) is being contested in good faith by appropriate proceedings and for which adequate reserves have been maintained in accordance with GAAP or (iii) could not reasonably be expected to have a Material Adverse Effect individually or in the aggregate for all Excepted Liens contained in clauses (a), (b), (c), (d) and (e) of this definition; (d) any Liens reserved in leases for rent or royalties and for compliance with the terms of the leases in the case of leasehold estates, if such Lien (i) does not materially impair the use of the Property covered by such Lien for the purposes for which such Property is held by Parent or any Subsidiary, (ii) is being contested in good faith by appropriate proceedings and for which adequate reserves have been maintained in accordance with GAAP or (iii) such Lien could not reasonably be expected to have a Material Adverse Effect individually or in the aggregate for all Excepted Liens contained in clauses (a), (b), (c), (d) and (e) of this definition; (e) encumbrances (other than to secure the payment of borrowed money or the deferred purchase price of Property or services), easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any rights of way or other Property of Parent or any Subsidiary for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, oil, coal, minerals, timber, metals, steam or other natural resources or timber, and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, and defects, irregularities, zoning restrictions and deficiencies in title of any rights of way or other Property which in the aggregate do not materially impair the use of such rights of way or other Property for the purposes of which such rights of way and other Property are held by Parent or any Subsidiary or materially impair the value of such Property subject thereto or which could not reasonably be expected to have a Material Adverse Effect individually or in the aggregate for all Excepted Liens contained in clauses (a), (b), (c), (d) and (e) of this definition; (f) Liens on cash, securities or, for Foreign Subsidiaries only, other Property pledged to secure the performance of bids, trade contracts, leases, performance bonds, return-of-money or payment bonds, surety and appeal bonds, contracts or leases to which Parent or any of its Subsidiaries is a party, statutory obligations, regulatory obligations, and other obligations of a like nature incurred in the ordinary course of business; provided that, with respect to Liens on Property of Foreign Subsidiaries, such Property shall be the subject of, or used in connection with, the contracts, bonds or other obligations so secured; (g) Liens permitted by the Security Instruments; (h) judgment and attachment Liens not giving rise to an Event of Default; (i) Liens for Parent’s or any Subsidiary’s title to Property leased under Capital Leases; (j) Liens resulting from the deposit of funds or evidence of Indebtedness in trust for the purpose of defeasing Indebtedness of Parent or any of its Subsidiaries to the extent any such defeasance is permitted by this Agreement; (k) customary Liens on cash or cash equivalents held by a trustee for fees, costs and expenses of such trustee pursuant to an indenture; (l) Liens pursuant to merger agreements, stock purchase agreements, asset sale agreement and similar agreements on earnest money deposits, good faith deposits, purchase price adjustment escrows and similar deposits and escrow arrangements made or established thereunder; (m) Limited Recourse Equity Pledges; and (n) Liens arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or similar rights and remedies (including any such banker’s liens, rights of set-off or similar rights and remedies that are contractually agreed upon in deposit account agreements, securities account agreements or commodities account agreements entered into in the ordinary course of business) and burdening only deposit accounts or other funds maintained with a creditor depository institution, provided that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board (or other applicable Governmental Authority) and no such deposit account is intended by Parent or any other Loan Party to provide collateral to the depository institution; provided that, (i) in the case of each of clauses (a) through (m) above, no intention to subordinate the first priority Lien granted in favor of the Administrative Agent and the Lenders is to be hereby implied or expressed by the permitted existence of such Excepted Liens and (ii) in the case of each of clauses (a) through (f), (h), (k), (l) and (n), such Liens do not secure Indebtedness for borrowed money.

 

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“Excess Cash Flow” means, for any Fiscal Year, the excess, if any, of (a) the sum, without duplication, of (i) Consolidated Net Income for such Fiscal Year, (ii) the amount of all non-cash charges (including depreciation and amortization) deducted in determining such Consolidated Net Income, (iii) total interest expense for such Fiscal Year, to the extent deducted in determining Consolidated Net Income, (iv) tax expense for such Fiscal Year, to the extent deducted in determining Consolidated Net Income, (v) decreases in Working Capital for such Fiscal Year, and (vi) the aggregate net amount of non-cash loss on the disposition of property by the Parent and its Consolidated Restricted Subsidiaries during such Fiscal Year (other than sales of inventory in the ordinary course of business), to the extent deducted in arriving at such Consolidated Net Income, minus (b) the sum, without duplication, of (i) the amount of all non-cash credits included in arriving at such Consolidated Net Income, (ii) the aggregate amount actually paid by the Parent and its Consolidated Restricted Subsidiaries in cash during such Fiscal Year on account of Capital Expenditures (excluding the principal amount of Indebtedness incurred in connection with such expenditures and any such expenditures financed with the proceeds of asset dispositions that have not yet been used to pay down the Loans), (iii) the aggregate amount of all prepayments of Revolving Loans and Swingline Loans during such Fiscal Year to the extent accompanying permanent optional reductions of the Revolving Commitments and all optional prepayments of the Term Loans during such Fiscal Year, (iv) the aggregate amount of all regularly scheduled principal payments of long-term Indebtedness (determined in accordance with GAAP, including the Term Loans) of the Parent and its Consolidated Restricted Subsidiaries made during such Fiscal Year (other than in respect of any revolving credit facility to the extent there is not an equivalent permanent reduction in commitments thereunder), (v) total interest expense during such Fiscal Year to the extent paid by Parent and its Consolidated Restricted Subsidiaries in cash, (vi) the aggregate amount of taxes of Parent and its Consolidated Restricted Subsidiaries paid in cash during such Fiscal Year, (vii) increases in Working Capital for such Fiscal Year, and (viii) the aggregate net amount of non-cash gain on the disposition of property by Parent and its Consolidated Restricted Subsidiaries during such Fiscal Year (other than sales of inventory in the ordinary course of business), to the extent included in determining such Consolidated Net Income.

 

“Excess Indebtedness Amount” has the meaning assigned to such term in the definition of “Prepayment Event”.

 

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

 

“Exchange Rate” means, with respect to Euros or any Offshore Currency on a particular date, the rate at which Euros or such Offshore Currency may be exchanged into US Dollars, as set forth at 11:00 a.m., London time, on such date on the applicable currency page with respect to such Offshore Currency displayed by Bloomberg Information Service (or any successor thereto).  If such rate does not appear on the applicable Bloomberg Information Service currency page, the Exchange Rate with respect to such Offshore Currency shall be determined by reference to such other publicly available service for displaying exchange rates as may be agreed upon by the Administrative Agent and the Borrower or, in the absence of such agreement, such Exchange Rate shall instead be the spot rate of exchange of the Administrative Agent in the London Interbank market or other market where its foreign currency exchange operations in respect of Euros or such Offshore Currency are then being conducted, at or about 11:00 a.m., London time, at such date for the purchase of US Dollars with Euros or such Offshore Currency, for delivery two Business Days later.

 

13

 

“Excluded Hedging Obligation” means, with respect to any Loan Party. individually determined on a Loan Party by Loan Party basis, any obligation owing by any Loan Party to any Secured Hedging Provider under a Hedging Agreement if, and to the extent that, all or a portion of the guarantee of such Loan Party of, or the grant by such Loan Party of a security interest to secure, such obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Loan Party’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time such guarantee or grant of a security interest becomes effective with respect to such obligation.

 

“Excluded Subsidiary” means any Subsidiary (a) that is disregarded as an entity separate from its owner for U.S. federal income tax purposes, and (b) all the assets of which consist solely of Equity Interests in CFCs.

 

“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its Applicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 5.04(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 5.03, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 5.03(g), and (d) any U.S. federal withholding Taxes under FATCA.

 

“EXH” means Exterran Holdings, Inc., a Delaware corporation.

 

“EXH Credit Agreement” means that certain Senior Secured Credit Agreement dated as of July 8, 2011 by and among EXH, as borrower, the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent, as amended.

 

“Existing Credit Agreement” has the meaning assigned to such term in the recitals hereto.

 

“Existing Letters of Credit” means the letters of credit set forth on Schedule 1.02, together with any other Letters of Credit issued by an Issuing Bank pursuant to the EXH Credit Agreement on or before the Initial Availability Date, as approved by the Administrative Agent.

 

“Extended Expiry Letters of Credit” has the meaning assigned to such term in Section 2.07(a).

 

“Extended Term Loans” means any Term Loans the maturity of which shall have been extended pursuant to Section 2.09.

 

“Extension” has the meaning set forth in Section 2.09(a).

 

“Extension Offer” has the meaning set forth in Section 2.09(a).

 

“FASB” means the Financial Accounting Standards Board.

 

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“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version of such provisions that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Code.

 

“Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

 

“Fee Letters” means, collectively, the Administrative Agent Fee Letter and those other certain letter agreements from each of the Joint Lead Arrangers (other than Wells Fargo Securities, LLC) to the Borrower dated October 5, 2015, concerning certain fees to be paid by the Borrower to each such Joint Lead Arranger in connection with this Agreement, as any of the same may be amended or replaced from time to time.

 

“Financial Officer” means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person.  Unless otherwise specified, all references herein to a Financial Officer means a Financial Officer of the Borrower.

 

“Financial Statements” means the financial statements of Parent most recently delivered pursuant to Section 8.01(a)(i) and, prior to the initial delivery of such financial statements pursuant to Section 8.01(a)(i), the financial statements of Parent for the Fiscal Year ended December 31, 2014.

 

“Fiscal Quarter” means a fiscal quarter of Parent.

 

“Fiscal Year” means a fiscal year of Parent.

 

“Flood Insurance Laws”: collectively, (a) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (b) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statue thereto, (c) the National Flood Insurance Reform Act of 1994 as now or hereafter in effect or any successor statute thereto, (d) the Flood Insurance Reform Act of 2004 as now or hereafter in effect or any successor statute thereto, and (e) all regulations promulgated by applicable Governmental Authorities pursuant to any of the foregoing.

 

“Foreign Credit Facility” means any debt facility (including, without limitation, any credit agreement or ABS facility), commercial paper facilities or secured capital markets financings of a Foreign Subsidiary that derives substantially all of its income from jurisdictions other than the United States of America, in each case with banks or other institutional lenders or institutional investors providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or to special purpose entities formed to borrow from such lenders against such receivables), letters of credit or secured capital markets financings, in each case, as the same may be amended, restated, modified, renewed, refunded, replaced or refinanced (including refinancing with any capital markets transaction) in whole or in part from time to time.

 

“Foreign Lender” means any Lender that is not a U.S. Person.

 

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“Foreign Plan” means each employee pension benefit plan (within the meaning of Section 3(2) of ERISA, whether or not subject to ERISA) maintained primarily for employees residing outside of the United States of America, that is subject to any law in a non-U.S. jurisdiction and is maintained or contributed to by any Loan Party or any Subsidiary.

 

“Foreign Subsidiary” means each direct or indirect Restricted Subsidiary that is organized under the laws of any jurisdiction other than the United States of America, any State thereof, or the District of Columbia, and any Restricted Subsidiary of any Foreign Subsidiary, whether or not such Restricted Subsidiary is organized under the laws of the United States of America, any State thereof, or the District of Columbia.

 

“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time, subject to the terms and conditions set forth in Section 1.05.

 

“Governmental Authority” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

 

“Governmental Requirement” means any law, statute, code, ordinance, order, determination, rule, regulation, judgment, decree, injunction, franchise, permit, certificate, license, authorization or other binding directive or requirement of any Governmental Authority, whether now or hereinafter in effect, including Environmental Laws, energy regulations and occupational, safety and health standards or controls, of any Governmental Authority.

 

“Group Members” means, collectively, Parent and its Restricted Subsidiaries.

 

“Guarantors” means, collectively, (a) Parent, (b) each Significant Domestic Subsidiary that is a party to the Guaranty and Collateral Agreement on the Initial Availability Date, (c) each Significant Domestic Subsidiary that guarantees the Secured Obligations after the Initial Availability Date pursuant to Section 8.06 and (d) any other Person that voluntarily becomes a Guarantor, in each case other than those released from their obligations under the Guaranty and Collateral Agreement pursuant to Section 8.06(c) or otherwise in accordance with the terms hereof.

 

“Guaranty and Collateral Agreement” means the Guaranty and Collateral Agreement to be dated as of the Initial Availability Date and executed by the Loan Parties in favor of the Administrative Agent.

 

“Hazardous Materials” means any substances, wastes or materials (a) which are toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic hazardous or otherwise harmful to public health or the environment and are regulated by any Governmental Authority under any Environmental Law, (b) the presence of which require investigation or remediation under any Environmental Law, (c) the discharge, disposal, emission or Release of which requires a permit or license under any Environmental Law or other Governmental Approval, (d) which are deemed by a Governmental Authority pursuant to Environmental Laws to pose a health or safety hazard to Persons or properties or (e) which contain, without limitation, asbestos, polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum hydrocarbons, hydrogen sulfide, naturally occurring radioactive material, petroleum derived waste, crude oil, nuclear fuel, natural gas or synthetic gas.

 

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“Hedging Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement, whether exchange traded, “over-the-counter” or  otherwise, involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions (including any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act); provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of Parent or any of its Subsidiaries shall be a Hedging Agreement.

 

“Highest Lawful Rate” means, with respect to each Lender, the maximum nonusurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the Loans or on other Obligations under laws applicable to such Lender which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws allow as of the date hereof.

 

“Indebtedness” means, for any Person the sum of the following (without duplication):  (a) all obligations of such Person (whether created or assumed) for borrowed money or evidenced by bonds, debentures, notes or other similar instruments; (b) all obligations of such Person (whether contingent or otherwise) in respect of bankers’ acceptances, letters of credit, surety or other bonds and similar instruments; (c) all obligations of such Person to pay the deferred purchase price of Property or services (excluding trade and accounts payable incurred in the ordinary course of business that are not more than sixty (60) days past due or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP and accrued pension costs and other employee benefit and compensation obligations arising in the ordinary course of business); (d) all Capital Lease Obligations in respect of which such Person is liable (whether contingent or otherwise) and all Attributable Debt in respect of sale and leaseback transactions not involving a Capital Lease Obligation; (e) all Indebtedness (as described in the other clauses of this definition) of others secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person; provided that the amount of Indebtedness for purposes of this clause (e) shall be an amount equal to the lesser of the unpaid amount of such Indebtedness and the fair market value of the encumbered Property; (f) all obligations or undertakings of such Person to maintain or cause to be maintained the financial position of others or to purchase the Indebtedness of others; (g) all Indebtedness (as described in the other clauses of this definition) of others guaranteed by such Person or in respect of which such Person otherwise assures a creditor against loss; (h) Disqualified Capital Stock of such Person; (i) any Indebtedness (as described in the other clauses of this definition) of a partnership for which such Person is liable either by agreement or because of a Governmental Requirement but only to the extent of the maximum liability of such Person under such agreement or Governmental Requirement; and (j) all net mark to market obligations of such Person under Hedging Agreements; provided that any agreement by the Borrower or any Restricted Subsidiary to repurchase equipment in a Permitted Sale for Lease Transaction at a price not greater than its fair market value shall not constitute Indebtedness. Notwithstanding the foregoing and for the avoidance of doubt, the term “Indebtedness” does not include (i) endorsements of checks, bills of exchange and other instruments for deposit or collection in the ordinary course of business and such other obligations owed on a short-term basis to banks and other financial institutions incurred in connection with ordinary banking arrangements to manage cash balances of such Person; (ii) taxes, assessments or other similar governmental charges or claims; (iii) any obligation arising from any agreement providing for indemnities, purchase price adjustments, holdbacks, contingency payment obligations based on the performance of the acquired or Disposed of assets or similar obligations (other than (x) guarantees of Indebtedness and (y) any such obligations that will become non-contingent obligations solely as a result of the passage of time and are reflected as current liabilities on the balance sheet of such Person (the obligations described in this clause (y) being referred to as “Specified Contingent Obligations”)) incurred by the specified Person in connection with the acquisition or Disposition of assets and (iv) any obligation arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business; provided that such obligation is extinguished within five Business Days of its incurrence.

 

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The term “Indebtedness” also excludes any repayment or reimbursement obligation of such Person or any of its Restricted Subsidiaries with respect to Customary Recourse Exceptions, unless and until an event or circumstance occurs that triggers the Person’s or such Restricted Subsidiary’s direct repayment or reimbursement obligation (as opposed to contingent or performance obligations) to the lender or other Person to whom such obligation is actually owed, in which case the amount of such direct payment or reimbursement obligation shall constitute Indebtedness.

 

“Indemnified Parties” has the meaning assigned to such term in Section 12.03(a)(ii).

 

“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

 

“Index Indebtedness” means senior, unsecured, long-term indebtedness for borrowed money of Parent.

 

“Information Memorandum” means the Confidential Information Memorandum dated June 16, 2015 relating to the Borrower and the Transactions.

 

“Initial Availability Date” means the date on which the conditions specified in Section 6.02 are satisfied (or waived in accordance with Section 12.02).

 

“Interest Coverage Ratio” means, as of the last day of any Testing Period, the ratio of (a) EBITDA for such Testing Period to (b) Total Interest Expense for such Testing Period.

 

“Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.04.

 

“Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each March, June, September and December, (b) with respect to any LIBOR Loan or EURIBOR Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a LIBOR Borrowing or EURIBOR Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period and (c) with respect to a Swingline Loan, the day that such Loan is required to be repaid pursuant to Section 2.08(a).

 

“Interest Period” means with respect to any LIBOR Borrowing or EURIBOR Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months (or, with the consent of each Lender, twelve months) thereafter, as the Borrower may elect; provided that (a) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, (b) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period and (c) no Interest Period for any Revolving Loan may end after the Revolving Maturity Date and no Interest Period for any Term Loan may end after the Term Loan Maturity Date.  For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

 

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“Interpolated Screen Rate” means, with respect to any LIBOR Loan for any Interest Period or any EURIBOR Loan for any Interest Period, a rate per annum that results from interpolating on a linear basis between (a) the applicable Screen Rate for the longest maturity for which a Screen Rate is available that is shorter than such Interest Period and (b) the applicable Screen Rate for the shortest maturity for which a Screen Rate is available that is longer than such Interest Period, in each case as of the Specified Time on the Quotation Day.

 

“Investment” means, as applied to any Person, any direct or indirect (a) purchase or other acquisition by such Person of any Equity Interests, Indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of any other Person, (b) loan or advance made by such Person to any other Person, (c) guarantee, assumption or other incurrence of liability by such Person of or for any Indebtedness of any other Person, (d) capital contribution or other investment by such Person in any other Person or (e) purchase or other acquisition (in one transaction or a series of transactions) of any assets of any other Person constituting a business unit.  The amount of any Investment shall be the original cost of such Investment plus the cost of all additions thereto, without any adjustments for increases or decreases in value, or write-ups, write-downs or write-offs with respect to such Investment or interest earned on such Investment.  The term “Investment” shall exclude extensions of trade credit by Parent and its Subsidiaries on commercially reasonable terms in accordance with normal trade practices of Parent or the applicable Subsidiary, as the case may be.

 

“Investment Grade Rating” means, with respect to the Borrower’s Index Indebtedness, (a)(i) a rating of Baa3 or better by Moody’s or a rating of BBB- or better by S&P and (ii) a rating no lower than one notch below the minimum rating specified in clause (a)(i) of this definition from the other agency, and (b) a stable outlook or better from both Moody’s and S&P.

 

“IRS” means the United States Internal Revenue Service.

 

“Issuing Bank” means each of Wells Fargo Bank, National Association, Crédit Agricole Corporate and Investment Bank, Bank of America, N.A., Citibank, N.A., Royal Bank of Canada, The Bank of Nova Scotia and any other Revolving Lender that agrees to issue Letters of Credit hereunder (as designated by the Borrower and approved by the Administrative Agent in its reasonable discretion), in each case in its capacity as an issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.07(f), other than any such Person that ceases to be an Issuing Bank pursuant to Section 2.07(g).  Each Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.

 

“Joint Bookrunners” means, collectively, Wells Fargo Securities, LLC and Crédit Agricole Corporate and Investment Bank in their capacity as joint bookrunners hereunder.

 

“Joint Lead Arrangers” means, collectively, Wells Fargo Securities, LLC, Crédit Agricole Corporate and Investment Bank, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., and RBC Capital Markets, LLC in their capacity as joint lead arrangers hereunder.

 

“Joint Venture” means (a) a joint venture with a third party so long as such entity would not constitute a Subsidiary or (b) a Subsidiary formed with the intention of establishing a joint venture; provided that if such entity still constitutes a Subsidiary ninety (90) days after formation it shall no longer  constitute a Joint Venture; provided, that in the case of (a) or (b), all Investments by Parent, the Borrower or any Restricted Subsidiary are made pursuant to and are permitted by Section 9.03(g) or Section 9.03(i).

 

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“Joint Venture Obligations” means, with respect to any Joint Venture owned in part by any Loan Party or any Restricted Subsidiary, (a) obligations owed by such Loan Party or Restricted Subsidiary to the other holders of the Equity Interests in such Joint Venture (other than a holder that is an Affiliate of a Loan Party or any Restricted Subsidiary) and (b) Indebtedness of such Joint Venture that is non-recourse to any Loan Party or any Restricted Subsidiary or to any Property of any Loan Party or Restricted Subsidiary other than the Equity Interests in such Joint Venture.

 

“Judgment Currency” has the meaning assigned to such term Section 12.18(b).

 

“LC Disbursement” means a payment made by any Issuing Bank pursuant to a Letter of Credit.

 

“LC Exposure” means, at any time, the sum of (a) the US Dollar Equivalent of the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the US Dollar Equivalent of the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Lender at any time shall be its Applicable Revolving Percentage of the total LC Exposure at such time.

 

“LC Issuance Limit” means, with respect to each Issuing Bank, the amount set forth on Schedule 1.02(b) opposite such Issuing Bank’s name.

 

“Lenders” means the Persons listed in Annex I hereto and any other Person that shall have become a party hereto pursuant to an Assignment and Assumption or as an Additional Revolving Lender pursuant to Section 2.06(c), other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.  The term “Lenders” shall include both the Term Loan Lenders and the Revolving Lenders, and, unless the context otherwise requires, the term “Lenders” includes the Swingline Lender.

 

“Letter of Credit” means each Existing Letter of Credit and any letter of credit issued pursuant to this Agreement, and shall include Offshore Currency Letters of Credit.

 

“Letter of Credit Agreements” means all letter of credit applications and other agreements submitted by the Borrower to, or entered into by the Borrower with, any Issuing Bank relating to any Letter of Credit.

 

“Letter of Credit Request” means a request by the Borrower for the issuance, amendment, renewal or extension, as the case may be, of a Letter of Credit by any Issuing Bank in accordance with Section 2.07(b), which shall be in any form approved by or acceptable to such Issuing Bank.

 

“LIBO Rate” means, with respect to any LIBOR Borrowing for any Interest Period, the applicable Screen Rate as of the Specified Time on the Quotation Day.

 

“LIBOR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate.

 

“Lien” means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to the  lien or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes.

 

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The term “Lien” shall include reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions, leases and other encumbrances affecting Property, and for the avoidance of doubt, the term “Lien” shall not include any interest of a third party owner of any Property being leased to a Loan Party pursuant to an operating lease for which a precautionary UCC financing statement has been filed and which filing only covers the Property subject of such lease.  For the purposes of this Agreement, Parent or any Subsidiary shall be deemed to be the owner of any Property which it has acquired or holds subject to a conditional sale agreement, or leases under a financing lease or other arrangement pursuant to which title to the Property has been retained by or vested in some other Person in a transaction intended to create a financing.

 

“Limited Recourse Equity Pledge” means the pledge of Equity Interests in any Unrestricted Subsidiary or Joint Venture to secure Non-Recourse Indebtedness of such Unrestricted Subsidiary or Joint Venture, as applicable, pursuant to an agreement that expressly states that the pledgee shall have no recourse to the pledgor or any of its assets or revenues under any circumstance other than recourse to the Equity Interests of the Unrestricted Subsidiary or Joint Venture, as applicable, that are described in such pledge.

 

“Loan Documents” means this Agreement, the Notes, the Letter of Credit Agreements, the Commitment Increase Certificates, the Additional Revolving Lender Certificates, the Letters of Credit, the Fee Letters, the Security Instruments, any Term Loan Refinancing Intercreditor Agreement and each consent, waiver, subordination agreement, intercreditor agreement, Compliance Certificate, Borrowing Request, Letter of Credit Request or Interest Election Request executed by the Borrower pursuant to this Agreement.

 

“Loan Parties” means the Borrower and the Guarantors.

 

“Loans” means the Revolving Loans, Term Loans and the Swingline Loans.

 

“Majority Lenders” means (a) at any time when no Loans are outstanding or LC Exposure is outstanding, Lenders having at least a majority of the sum of (i) the Aggregate Revolving Commitments and (ii) the total Term Loan Commitments, and (b) at any time when any Loans are outstanding or any LC Exposure is outstanding, Lenders having more than 50% of the sum of (i) the outstanding aggregate principal amount of the Loans and participation interests in Letters of Credit (without regard to any sale by a Lender of a participation in any Loan under Section 12.04(d)) and (ii) the unused Revolving Commitments; provided that the Commitment of, and the principal amount of Loans of, any Defaulting Lender shall be excluded from the determination of Majority Lenders to the extent set forth in Section 4.03(c)(ii).

 

“Majority Revolving Lenders” means (a) at any time when no Revolving Loans are outstanding or LC Exposure is outstanding, Revolving Lenders having at least a majority of the Aggregate Revolving Commitments, and (b) at any time when any Revolving Loans are outstanding or any LC Exposure is outstanding, Revolving Lenders having Revolving Credit Exposures representing more than 50% of the Total Revolving Credit Exposure; provided that the Revolving Commitment of, and the Revolving Credit Exposure of, any Defaulting Lender shall be excluded from the determination of Majority Revolving Lenders to the extent set forth in Section 4.03(c)(ii).

 

“Manufactured (Mobile) Home” has the meaning assigned to such term in the applicable Flood Insurance Law.

 

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“Material Adverse Effect” means any material and adverse effect on (a) the assets, liabilities, financial condition, business or operations of Parent and its Restricted Subsidiaries, taken as a whole, as reflected in the Financial Statements after eliminating the financial condition and results of the Unrestricted Subsidiaries, or (b) the ability of the Borrower and the other Loan Parties, taken as a whole, to perform their obligations under the Loan Documents in accordance with the terms thereof.

 

“Mirror Notes” means certain intercompany debt owing by the Borrower to Exterran General Holdings LLC and by Exterran General Holdings LLC to EXH.

 

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto that is a nationally recognized rating agency.

 

“Mortgage” means each mortgage, deed of trust or any other document creating and evidencing a Lien on real or immovable Property to secure the Secured Obligations, which shall be in a form reasonably satisfactory to the Administrative Agent.

 

“Multiemployer Plan” means a Plan which is a multiemployer plan as defined in Section 3(37) or 4001(a)(3) of ERISA.

 

“Net Proceeds” means, with respect to any Prepayment Event, (a) the cash proceeds received in respect of such Prepayment Event including (i) any cash received in respect of any non-cash proceeds (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise, but excluding any interest payments), but only as and when received, (ii) in the case of a casualty, insurance proceeds and (iii) in the case of a condemnation or similar event, condemnation awards and similar payments, net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third parties (other than Affiliates) in connection with such event (including, in the case of a Prepayment Event of the type described in clause (c) or (d) of the definition thereof, reasonable investment banking fees and reasonable underwriting discounts and commissions), (ii) in the case of a sale, transfer or other disposition of an asset (including pursuant to a sale and leaseback transaction or a casualty or a condemnation or similar proceeding), the amount of all payments required to be made as a result of such event to repay Indebtedness (other than Loans) secured by such asset or otherwise subject to mandatory prepayment as a result of such event and (iii) the amount of all taxes paid (or reasonably estimated to be payable) and the amount of any reserves established to fund contingent liabilities reasonably estimated to be payable, in each case during the year that such event occurred or the next succeeding year and that are directly attributable to such event (as determined reasonably and in good faith by a Financial Officer).

 

“Non-Defaulting Lender” means, at any time, each Revolving Lender that is not a Defaulting Lender at such time.

 

“Non-Mortgaged Real Property” has the meaning assigned to such term in Section 8.06(a).

 

“Non-Recourse Indebtedness” means Indebtedness of any Subsidiary or Joint Venture:

 

(a)                                 as to which neither Parent nor any Restricted Subsidiary (i) provides credit support of any kind (including any guaranty, undertaking, agreement or instrument that would constitute Indebtedness), other than a Limited Recourse Equity Pledge, (ii) is directly or indirectly liable as a guarantor or otherwise or (iii) is the lender; and

 

(b)                                 no default with respect to which (including any rights that the holders thereof may have to take an enforcement action against an Unrestricted Subsidiary) would permit upon notice, lapse of time or both any holder of Indebtedness of Parent or any Restricted Subsidiary to declare a default on such Indebtedness of Parent or any Restricted Subsidiary or cause the payment thereof to be accelerated or payable prior to its stated maturity.

 

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“Non-Recourse Foreign Indebtedness” means Indebtedness of any Foreign Subsidiary as to which neither Parent nor any Domestic Subsidiary (a) provides credit support of any kind (including any guaranty, undertaking, agreement or instrument that would constitute Indebtedness), other than a Limited Recourse Equity Pledge, (b) is directly or indirectly liable as a guarantor or otherwise or (c) is the lender.

 

“Notes” means the Revolving Notes and the Term Loan Notes, or any of them, as the context requires.

 

“Notifying Lender” means any Lender that notifies Administrative Agent and the Borrower in writing or made a public statement that its failure to fund all or any portion of its Loans is the result of such Lender’s determination that one or more conditions precedent to funding has not been satisfied in accordance with clauses (a) or (b) of the definition of “Defaulting Lender” contained in Section 1.01.

 

“Obligations” means, without duplication, any and all amounts owing by any Loan Party or any Restricted Subsidiary to the Administrative Agent, any Issuing Bank or any Lender under any Loan Document (including interest accruing at any post-default rate and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to any Loan Party or any Restricted Subsidiary, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding).

 

“OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.

 

“Offshore Currency” means any lawful currency (other than US Dollars and Euros) that the relevant Issuing Bank with respect to any Offshore Currency Letter of Credit, in its sole reasonable opinion, at any time determines to be (a) freely traded in the offshore interbank foreign exchange markets, (b) freely transferable and (c) freely convertible into US Dollars.

 

“Offshore Currency Letter of Credit” means any Letter of Credit denominated in an Offshore Currency.

 

“Organization Documents” means (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-US jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization and the operating agreement or limited liability company agreement (or equivalent or comparable constitutive documents with respect to any non-US jurisdiction); and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity (or equivalent or comparable constitutive documents with respect to any non-US jurisdiction).

 

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in  any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan, Commitment or Loan Document).

 

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“Other Taxes” means all present or future stamp or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 5.04(b)).

 

“Parent” has the meaning assigned to such term in the preamble hereto.

 

“Participant Register” has the meaning assigned to such term in Section 12.04(d).

 

“Payment in Full” means all of the Commitments have expired or been terminated and the principal of all Loans hereunder, all interest thereon and all other amounts payable by the Borrower hereunder and under the other Loan Documents (other than indemnities and other contingent obligations not then due and payable and as to which no claim has been made at the time of determination) have been paid in full and all Letters of Credit have expired or terminated (unless cash collateralized in accordance with Section 2.07(a) or unless other arrangements satisfactory to the applicable Issuing Banks have been made with respect thereto).

 

“PBGC” means the Pension Benefit Guaranty Corporation, or any successor thereto.

 

“Permitted Liens” has the meaning assigned to such term in Section 9.02.

 

“Permitted Refinancing Indebtedness” means Indebtedness (for purposes of this definition, “new Indebtedness”) incurred in exchange for, or proceeds of which are used to extend, refinance, renew, redeem, replace, defease, discharge, refund or otherwise retire for value, in whole or in part, any other Indebtedness (the “Refinanced Indebtedness”); provided that (a) such new Indebtedness is in an aggregate principal amount not in excess of the sum of (i) the aggregate principal amount then outstanding of the Refinanced Indebtedness (or, if the Refinanced Indebtedness is exchanged or acquired for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration thereof, such lesser amount) and (ii) an amount necessary to pay all accrued (including, for purposes of defeasance, future accrued) and unpaid interest on the Refinanced Indebtedness and any fees and expenses, including premiums, related to such exchange or refinancing; (b) such new Indebtedness has a stated maturity no earlier than the sooner to occur of (i) the date that is 91 days after the Revolving Maturity Date (as in effect on the date of incurrence of such new Indebtedness) and (ii) the stated maturity of the Refinanced Indebtedness; (c) such new Indebtedness has a Weighted Average Life to Maturity at the time such new Indebtedness is incurred no shorter than the shorter of (i) the period beginning on the date of incurrence of such new Indebtedness and ending on the date that is 91 days after the Revolving Maturity Date (as in effect on the date of incurrence of such new Indebtedness) and (ii) the Weighted Average Life to Maturity of the Refinanced Indebtedness at the time such new Indebtedness is incurred; and (d) if the Refinanced Indebtedness was subordinated in right of payment to the Secured Obligations or the guarantees under the Guaranty and Collateral Agreement, such new Indebtedness (and any guarantees thereof) is subordinated in right of payment to the Secured Obligations (or, if applicable, the guarantees under the Guaranty and Collateral Agreement) to at least the same extent as the Refinanced Indebtedness.

 

“Permitted Sale for Lease Transaction” means a transaction involving (a) a sale by Parent or a Restricted Subsidiary of equipment to a financial institution that in turn leases such assets to its customer and (b) an agreement by Parent or a Restricted Subsidiary to repurchase such equipment from such financial institution (or any of its successor and assigns) upon the occurrence of certain events.

 

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“Permitted Term Loan Refinancing Indebtedness” means secured Indebtedness (for purposes of this definition, “new Indebtedness”) incurred in exchange for, or proceeds of which are used to refinance, renew, redeem, replace, defease, discharge, refund or otherwise retire for value the Term Loans; provided that (a) such new Indebtedness is in an aggregate principal amount not in excess of the sum of (i) the aggregate principal amount of the Term Loans outstanding on the date such new Indebtedness is incurred and (ii) an amount necessary to pay all accrued (including, for purposes of defeasance, future accrued) and unpaid interest on the Term Loans and any fees and expenses, including premiums, owing or incurred in connection with such exchange or refinancing; (b) after giving effect to the incurrence of such Indebtedness and the use of proceeds thereof, the Term Loans will be repaid in full; (c) such new Indebtedness has a stated maturity no earlier than the date that is six months after the Revolving Maturity Date; (d) such new Indebtedness is secured solely by Liens on Collateral which Liens are junior to or pari passu with the Liens securing the Secured Obligations and which Liens are subject to the terms and conditions of the Term Loan Refinancing Intercreditor Agreement; (e)(1) such Indebtedness does not contain financial covenants that are additional to or are more restrictive than those contained herein and (2) in the reasonable judgment of a Financial Officer of the Borrower, such Indebtedness does not contain other covenants and events of default that are materially more restrictive, taken as a whole, than those contained herein and (f) the terms of such Indebtedness do not require any scheduled amortization of principal in excess of five percent (5.0%) of the original principal amount thereof per annum.

 

“Permitted Term Loan Refinancing Indebtedness Documents” means, collectively, any credit or term loan agreement governing Permitted Term Loan Refinancing Indebtedness, all guarantees of Permitted Term Loan Refinancing Indebtedness, and all other agreements, documents or instruments executed and delivered by Parent, the Borrower or any Restricted Subsidiary in connection with, or pursuant to, the incurrence of Permitted Term Loan Refinancing Indebtedness, as all of such documents are from time to time amended, supplemented or restated in compliance with the Loan Documents, including this Agreement and the Term Loan Refinancing Intercreditor Agreement.

 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

 

“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Sections 412 and 430 of the Code or Section 302 of ERISA, and in respect of which any Loan Party or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Pledge Agreement” means the Pledge Agreement to be dated as of the Initial Availability Date and executed by the pledgors from time to time party thereto in favor of the Administrative Agent.

 

“Pledgors” has the meaning assigned to such term in the Pledge Agreement, as the same may be amended, amended and restated, supplemented or otherwise modified from time to time.

 

“Post-Default Rate” means, in respect of any amount payable by the Borrower under this Agreement or any other Loan Document (other than principal of any Loan), a rate per annum equal to 2% per annum above the LIBO Rate for LIBOR Borrowings with an Interest Period of one month as in effect from time to time plus the Applicable Margin (if any) for Revolving Loans then in effect, but in no event to exceed the Highest Lawful Rate; provided, however, if any amount of principal of any Loan is not paid when due, the “Post-Default Rate” for such principal amount shall be 2% per annum above the interest rate for such Loan as provided in Section 3.02, but in no event to exceed the Highest Lawful Rate.

 

“Prepayment Event” means (a) any sale, transfer or other disposition (including pursuant to a sale and leaseback transaction) of any property or asset of any Group Member pursuant to Section 9.11(m) or that is not otherwise permitted by Section 9.11; (b) any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of any Group Member; (c) the issuance by Parent of any Equity Interests, or the receipt by Parent of any capital contribution; (d) the incurrence by any Group Member of (i) any Indebtedness pursuant to Section 9.01(f) or Section 9.01(m), (ii) any Indebtedness for borrowed money pursuant to Section 9.01(j) to the extent that the principal amount thereof, when aggregated with the principal amount of all other Indebtedness for borrowed money incurred in reliance on such Section 9.01(j) and outstanding at such time, exceeds $10,000,000 (such excess amount, the “Excess Indebtedness Amount”) or (iii) any Indebtedness that is not otherwise permitted by Section 9.01; provided that the foregoing shall not be deemed to permit any sale, transfer or other disposition or to the incurrence of any Indebtedness, in each case not otherwise permitted by this Agreement.  For the avoidance of doubt, payments made by the Borrower to AROC Corp. pursuant to Sections 9.7 and 9.8 of the Separation and Distribution Agreement shall not constitute a Prepayment Event.

 

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“Prime Rate” means the rate of interest per annum publicly announced from time to time by the Administrative Agent as its prime rate; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.  Such rate is set by the Administrative Agent as a general reference rate of interest, taking into account such factors as the Administrative Agent may deem appropriate; it being understood that many of the Administrative Agent’s commercial or other loans are priced in relation to such rate, that it is not necessarily the lowest or best rate actually charged to any customer and that the Administrative Agent may make various commercial or other loans at rates of interest having no relationship to such rate.

 

“Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including cash, securities, accounts and contract rights.

 

“Purchase Money Indebtedness” means Indebtedness, the proceeds of which are used to finance the acquisition, construction or improvement of inventory, equipment or other property.

 

“Qualified Capital Raise” means any one or more Qualified Unsecured Indebtedness Offerings and/or any one or more Qualified Equity Issuances resulting in aggregate gross cash proceeds (from all such Qualified Unsecured Indebtedness Offerings and Qualified Equity Issuances) equal to or exceeding $250,000,000, so long as upon the completion of all such Qualified Unsecured Indebtedness Offerings and Qualified Equity Issuances, after giving effect thereto and the use of proceeds thereof, no Term Loans shall remain outstanding.

 

“Qualified Equity Issuance” means one or more issuances by Parent, whether in a public or private transaction, of Equity Interests that do not constitute Disqualified Capital Stock.

 

“Qualified Unsecured Indebtedness Offering” means the incurrence or issuance by the Borrower, in one or more offerings, of unsecured Indebtedness pursuant to the terms of Section 9.01(f).

 

“Quotation Day” means, with respect to any Loan or Borrowing in any currency for any Interest Period, the day two Business Days prior to the first day of such Interest Period, in each case unless market practice differs for loans denominated in the same currency as the applicable Loans priced by reference to rates quoted in the Relevant Interbank Market, in which case the Quotation Day for such currency shall be determined by the Administrative Agent in accordance with market practice for such loans priced by reference to rates quoted in the Relevant Interbank Market (and if quotations would normally be given by leading banks for such loans priced by reference to rates quoted in the Relevant Interbank Market on more than one day, the Quotation Day shall be the last of those days).

 

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“Recipient” means (a) the Administrative Agent, (b) any Lender or (c) any Issuing Bank, as applicable.

 

“Refinanced Indebtedness” has the meaning assigned to such term in the definition of “Permitted Refinancing Indebtedness”.

 

“Register” has the meaning assigned to such term in Section 12.04(c).

 

“Regulation D” means Regulation D of the Board, as the same may be amended, supplemented or replaced from time to time.

 

“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, representatives, trustees, agents and advisors (including attorneys, accountants and experts) of such Person and such Person’s Affiliates.

 

“Release” means any spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, emitting, discharging, depositing, migrating, injecting, escaping, leaching, dumping or disposing or other release into the environment (including surface land, substrata, air, surface water, ground water and abandonment or disposal of any containers containing Hazardous Materials) or movement of any Hazardous Material through such environment, whether or not intentional or knowingly.

 

“Relevant Interbank Market” means (a) with respect to US Dollars, the London interbank market and (b) with respect to Euros, the European interbank market.

 

“Replacement Term Loan” means (a) Permitted Term Loan Refinancing Indebtedness or (b) any other Indebtedness for borrowed money obtained by any Group Member (other than a senior revolving credit facility that does not include a term loan tranche) that is secured by a Lien on any Property of any Group Member.

 

“Responsible Officer” means, as to any Person, the chief executive officer, the president, any Financial Officer or any vice president of such Person.  Unless otherwise specified, all references to a Responsible Officer herein means a Responsible Officer of the Borrower.

 

“Restricted Payment” has the meaning assigned to such term in Section 9.04.

 

“Restricted Person” has the meaning assigned to such term in Section 12.11.

 

“Restricted Subsidiaries” means the Borrower and all other Subsidiaries of Parent that are not Unrestricted Subsidiaries.

 

“Revolving Borrowing” means Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of LIBOR Loans or EURIBOR Loans, as to which a single Interest Period is in effect.

 

“Revolving Commitment” mean, with respect to each Revolving Lender, the amount set forth opposite such Lender’s name on Annex I hereto under the caption “Revolving Commitment”, or in the Assignment and Assumption or other documentation contemplated hereby pursuant to which such Lender shall have assumed its Revolving Commitment, as applicable, as the same may be (a) reduced or terminated from time to time in connection with a reduction or termination of the Aggregate Revolving Commitments pursuant to Section 2.06(b), (b) increased from time to time pursuant to Section 2.06(c) or (c) reduced or increased from time to time pursuant to any assignment permitted by Section 12.04.

 

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“Revolving Commitment Fee” has the meaning assigned to such term in Section 3.05(a).

 

“Revolving Commitment Increase Certificate” has the meaning assigned to such term in Section 2.06(c)(ii)(F).

 

“Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of (a) the Dollar Equivalent of the aggregate principal amount of such Lender’s Revolving Loans at such time, plus (b) such Lender’s LC Exposure at such time, plus (c) such Lender’s Swingline Exposure at such time.

 

“Revolving Lenders” means the Persons listed in Annex I hereto as having a Revolving Commitment and any other Person that shall have become a party hereto pursuant to an Assignment and Assumption or as an Additional Revolving Lender pursuant to Section 2.06(c), other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

 

“Revolving Loan” has the meaning assigned to such term in Section 2.01(a).  For the avoidance of doubt, the term “Revolving Loan” does not include Swingline Loans.

 

“Revolving Maturity Date” means the date that is five (5) calendar years following the Initial Availability Date.  The Administrative Agent shall set forth such date in the notice of the occurrence of the Initial Availability Date delivered by Administrative Agent to the Borrower and the Lenders in accordance with Section 6.02.

 

“Revolving Note” means a promissory note of the Borrower in favor of a Lender evidencing the Revolving Loans made by such Lender, substantially in the form of Exhibit A-1.

 

“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business, and any successor thereto that is a nationally recognized rating agency.

 

“Sanctioned Country” means, at any time, a country or territory that is itself, or whose government is, the subject or target of any Sanctions (including, at the time of this Agreement, Cuba, Iran, North Korea, Sudan, Syria and the territory of Crimea in Ukraine).

 

“Sanctioned Person” means (a) a Person named on the list of “Specially Designated Nationals and Blocked Persons” maintained by OFAC available at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx, or as otherwise published from time to time, (b) a Person named on the Sanctioned Entities List maintained by the U.S. Department of State available at http://www.state.gov, or as otherwise published from time to time, (c) a Person named on the lists maintained by the United Nations Security Council available at http://www.un.org/sc/committees/list_compend.shtml, or as otherwise published from time to time, (d) a Person named on the lists maintained by the European Union available at http://eeas.europa.eu/cfsp/sanctions/consol-list_en.htm, or as otherwise published from time to time, (e) a Person named on the lists maintained by Her Majesty’s Treasury available at http://www.hm-treasury.gov.uk/fin_sanctions_index.htm, or as otherwise published from time to time, (f) any Person operating, organized or resident in a Sanctioned Country or (g) any Person owned or controlled by any such Persons described in the foregoing clauses (a) through (f).

 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State, or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom.

 

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“Screen Rate” means (a) in respect of the LIBO Rate for any Interest Period, a rate per annum equal to the London interbank offered rate as administered by the ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for deposits in US Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period as set forth by Bloomberg Information Service or any successor thereto on the applicable page of such service, and (b) in respect of the EURIBO Rate for any Interest Period, the rate per annum determined by the Banking Federation of the European Union (or any other Person that takes over the administration of such rate) for deposits in Euros for such Interest Period as set forth by Bloomberg Information Service or any successor thereto on the applicable page of such service; provided that for the purposes of determining the Screen Rate for any Revolving Loan or Swingline Loan, if any Screen Rate shall be less than zero, such rate shall be deemed to be zero for all such purposes; provided further that for purposes of determining the applicable Screen Rate for any Term Loan, if the Screen Rate shall be less than one percent (1.0%), then the Screen Rate shall be deemed to be one percent (1.0%) for all such purposes.  If, as to any currency, no Screen Rate shall be available for a particular Interest Period but Screen Rates shall be available for maturities both longer and shorter than such Interest Period, than the Screen Rate for such Interest Period shall be the Interpolated Screen Rate.

 

“SEC” means the Securities and Exchange Commission or any successor Governmental Authority.

 

“Secured Hedging Provider” means any Person that is party to a Hedging Agreement with Parent or any Restricted Subsidiary (excluding any ABS Subsidiary) that entered into such Hedging Agreement while such Person was, or before such Person became, a Lender or an Affiliate of a Lender, as the case may be; provided that such Person shall not be a Secured Hedging Provider as to any amounts owing in respect of any additional transactions or confirmations under such Hedging Agreement entered into after such Secured Hedging Provider ceases to be a Lender or an Affiliate of a Lender.

 

“Secured LC Provider” means any Person that is party to a letter of credit facility permitted under Section 9.01(t) with Parent or any Restricted Subsidiary (excluding any ABS Subsidiary) that entered into such letter of credit facility while such Person was, or before such Person became, a Lender or Affiliate of a Lender, as the case may be; provided that if such Person at any time ceases to be a Lender or an Affiliate of a Lender, as the case may be, such Person shall remain a Secured LC Provider for 365 days after such time (and after 365 days after such time, such Person shall no longer be a Secured LC Provider).

 

“Secured Obligations” means, collectively, (a) the Obligations, (b) all existing or future payment and other obligations owing by Parent or any Restricted Subsidiary (excluding any ABS Subsidiary) to any Secured Hedging Provider under a Hedging Agreement; (c) all existing or future payment and other obligations owing by Parent or any Restricted Subsidiary (excluding any ABS Subsidiary) to any Secured Treasury Management Counterparty under a Treasury Management Agreement, and (d) all existing or future payment and other obligations owing by Parent or any Restricted Subsidiary (excluding any ABS Subsidiary) to any Secured LC Provider in respect of any letter of credit facility permitted under Section 9.01(t); provided, however, that the term “Secured Obligations” excludes any Excluded Hedging Obligations.

 

“Secured Parties” means, collectively, the Administrative Agent, each Issuing Bank, each Lender, each Secured Hedging Provider, each Secured Treasury Management Counterparty and each Secured LC Provider.

 

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“Secured Treasury Management Counterparty” means any Person that is party to a Treasury Management Agreement with Parent or any Restricted Subsidiary (excluding any ABS Subsidiary) that entered into such Treasury Management Agreement while such Person was, or before such Person became, a Lender or Affiliate of a Lender, as the case may be; provided that if such Person at any time ceases to be a Lender or an Affiliate of a Lender, as the case may be, such Person shall remain a Secured Treasury Management Counterparty for 180 days after such time (and after 180 days after such time, such Person shall no longer be a Secured Treasury Management Counterparty).

 

“Security Instruments” means the Guaranty and Collateral Agreement, the Pledge Agreement, the Mortgages and the other agreements, instruments or certificates described or referred to in Exhibit F, and any and all other agreements and instruments now or hereafter executed and delivered by the Borrower or any other Person (other than Hedging Agreements with the Lenders or any Affiliate of a Lender or participation or similar agreements between any Lender and any other lender or creditor with respect to any Secured Obligations pursuant to this Agreement or any Treasury Management Agreement) granting a Lien upon any Property as security for the payment or performance of the Secured Obligations.

 

“Senior Secured Indebtedness” means all Indebtedness included in the calculation of Total Indebtedness (including the Secured Obligations to the extent included in the calculation of Total Indebtedness) that is secured and that is not expressly subordinated by its terms to the Secured Obligations.

 

“Senior Secured Leverage Ratio” means, as of the last day of any Testing Period, the ratio of Senior Secured Indebtedness as of such date to EBITDA for such Testing Period.

 

“Separation and Distribution Agreement” means that certain Separation and Distribution Agreement described on Schedule 1.01(a) attached hereto, in the form delivered and certified to the Lenders pursuant to Section 6.01(c), as modified from time to time prior to the Initial Availability Date to the extent permitted under Section 6.02(a)(vii).

 

“Separation Documents” means, collectively, those agreements set forth on Schedule 1.01(a), in each case, in the forms delivered and certified to the Lenders pursuant to Section 6.01(c), as modified from time to time prior to the Initial Availability Date to the extent permitted under Section 6.02(a)(vii).

 

“Separation Transaction” means the publicly announced separation of EXH’s international contract operations, international aftermarket services and global fabrication businesses, to be effected pursuant to the Separation Documents by the distribution by EXH to its shareholders of 100% of the outstanding shares of Parent’s common stock. As a result of such distribution, Parent shall become a publicly traded company whose stock is traded on a recognized national stock exchange.

 

“Significant Domestic Subsidiary” means at any time, (a) each Wholly-Owned Domestic Subsidiary the value of whose Specified US Assets as of the last day of the most recently ended Fiscal Year for which financial statements are available exceeds $50,000,000 individually, (b) each Wholly-Owned Domestic Subsidiary (excluding any ABS Subsidiary) that guarantees any other third-party Indebtedness in a principal amount exceeding $50,000,000 and (c) each Wholly-Owned Domestic Subsidiary of Parent designated or required to be designated as a Significant Domestic Subsidiary pursuant to Section 8.06(b).

 

“Significant Foreign Subsidiary” means any Foreign Subsidiary the value of whose gross assets (excluding the value of the Equity Interests of the Subsidiaries of such Foreign Subsidiary and any intercompany Indebtedness owing to such Foreign Subsidiary) exceeds $50,000,000 as of the most recent Fiscal Year end for which financial statements are available.

 

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“Specified Contingent Obligations” has the meaning assigned to such term in the definition of “Indebtedness”.

 

“Specified Time” means (a) with respect to the LIBO Rate, 11:00 a.m., London time, and (b) with respect to the EURIBO Rate, 11:00 a.m., Frankfurt time.

 

“Specified US Assets” of any Person means such Person’s gross assets in the United States, excluding (a) the value of the Equity Interests of such Person’s Subsidiaries and (b) any intercompany debt owing to such Person.

 

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board of Governors to which the Administrative Agent is subject for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board of Governors).  Such reserve percentages shall include those imposed pursuant to such Regulation D.  LIBOR Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

“Subsidiary” of a Person means (a) any corporation, limited liability company, joint venture, partnership or other business entity of which at least a majority of the outstanding Equity Interests having by the terms thereof ordinary voting power to elect a majority of the board of directors, managers or other governing body of such Person (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries and (b) any partnership of which such Person or any of its Subsidiaries is a general partner.  Unless otherwise indicated herein, each reference to the term “Subsidiary” means a direct or indirect Subsidiary of Parent.

 

“Support Letter of Credit” shall mean an irrevocable standby letter of credit, satisfactory in form to the Administrative Agent, and issued by a bank or other financial institution having upon issuance a senior unsecured long-term debt rating of (a) A- or better from S&P or (b) A3 or better from Moody’s.

 

“Swingline Borrowing” means a borrowing of a Swingline Loan pursuant to Section 2.08.

 

“Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time.  The Swingline Exposure of any Revolving Lender at any time shall be its Applicable Revolving Percentage of the total Swingline Exposure at such time.

 

“Swingline Lender” means Wells Fargo Bank, National Association, in its capacity as a lender of Swingline Loans hereunder.

 

“Swingline Loan” has the meaning assigned to such term in Section 2.08(a).

 

“Syndication Agent” means Crédit Agricole Corporate and Investment Bank in its capacity as syndication agent.

 

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“Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax and penalties applicable thereto.

 

“Term Loan” has the meaning assigned to such term in Section 2.01(b).

 

“Term Loan Borrowing” means Term Loans of the same Type, made, converted or continued on the same date and, in the case of LIBOR Loans or EURIBOR Loans, as to which a single Interest Period is in effect.

 

“Term Loan Commitment” mean, with respect to each Term Loan Lender, the commitment of such Term Loan Lender to funds its Term Loan on the Initial Availability Date in the amount set forth opposite such Term Loan Lender’s name on Annex I hereto under the caption “Term Loan Commitment”.

 

“Term Loan Lenders” means the Persons listed in Annex I hereto as having a Term Loan Commitment (or, following the initial funding of the Term Loans on the Initial Availability Date, all of the Lenders that hold Term Loans) and any other Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

 

“Term Loan Maturity Date” means the date that is two (2) calendar years following the Initial Availability Date.  The Administrative Agent shall set forth such date in the notice of the occurrence of the Initial Availability Date delivered by Administrative Agent to the Borrower and the Lenders in accordance with Section 6.02.

 

“Term Loan Note” means a promissory note of the Borrower in favor of a Lender evidencing the Term Loans made by such Lender, substantially in the form of Exhibit A-2.

 

“Term Loan Refinancing Intercreditor Agreement” means any intercreditor and subordination agreement entered into among Parent, the Borrower, each other Loan Party, the Administrative Agent and the applicable lender or administrative agent with respect to the Permitted Term Loan Refinancing Indebtedness, dated as of the date such Indebtedness is incurred, which agreement shall be in form and substance satisfactory to Administrative Agent and the Majority Revolving Lenders in their sole discretion, as the same may be amended, modified, supplemented or restated from time to time.

 

“Termination Date” means the earlier of the Revolving Maturity Date and the date of termination of the Revolving Commitments.

 

“Testing Period” means any period of four consecutive Fiscal Quarters (whether or not such quarters are all within the same Fiscal Year).

 

“Ticking Fee” has the meaning assigned to such term in Section 3.05(d).

 

“Total Indebtedness” means, at any time, the sum (without duplication) of (a) 100% of the debt of Parent and its Consolidated Restricted Subsidiaries reflected as long-term debt on the consolidated balance sheet of Parent in accordance with GAAP, plus (b) the current portion of any debt of Parent and its Consolidated Restricted Subsidiaries that was reflected as long-term debt on the consolidated balance sheet of Parent in accordance with GAAP at the time such debt was first incurred, minus (c) all net mark to market obligations of Parent and its Consolidated Restricted Subsidiaries under Hedging Agreements to the extent included in the foregoing clauses (a) or (b).  Notwithstanding the foregoing, obligations of the Borrower described in Section 9.01(s) that are not past due shall not be included in any calculation of Total Indebtedness.

 

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“Total Interest Expense” means, for any period, the total consolidated interest expense net of cash interest income of Parent and its Consolidated Restricted Subsidiaries for such period (including the cash equivalent of the interest expense associated with Capital Lease Obligations, but excluding (a) Indebtedness or lease issuance costs, debt discounts or premiums and other financing fees required to be amortized, (b) lease payments on any office equipment or real property, (c) any principal components paid on all lease payments, (d) gains, losses or other charges as a result of the early retirement of Indebtedness and (e) any other non-cash interest expense).  Total Interest Expense will be adjusted on a pro forma basis (calculated as if such indebtedness was incurred or repaid on the first day of such Testing Period and determined by the Borrower in a manner reasonably acceptable to the Administrative Agent) for (i) interest expense associated with Indebtedness, the proceeds of which are to be used for any acquisition with a purchase price in excess of $50,000,000 and (ii) interest expense associated with Indebtedness that is repaid with the proceeds of any Disposition with a sale price in excess of $50,000,000 (in each case to the extent not otherwise reflected in the calculation of Total Interest Expense).

 

“Total Leverage Ratio” means, as of the last day of any Testing Period, the ratio of Total Indebtedness as of such date to EBITDA for such Testing Period.

 

“Total Revolving Credit Exposure” means, at any time, the sum of the Revolving Credit Exposures of all Lenders at such time.

 

“Trade Date” has the meaning assigned to such term in Section 12.04(i)(i).

 

“Transactions” means the execution, delivery and performance by the Loan Parties of the Loan Documents to which they are a party, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder, and the grant of Liens by the Loan Parties on Collateral pursuant to the Security Instruments.

 

“Transferred Subsidiary” has the meaning assigned to such term in Section 8.06(c)(ii).

 

“Treasury Management Agreement” means any agreement regarding bank services provided to Parent or any Restricted Subsidiary (excluding any ABS Subsidiary) for commercial credit cards, stored value cards or treasury management services, including deposit accounts, auto-borrow, zero balance or cash concentration accounts, returned check concentration, lockbox, controlled disbursements, automated clearinghouse transactions, return items, overdrafts, interstate depository network services and reporting and trade finance services provided by a Secured Treasury Management Counterparty; provided that in no event shall any agreement evidencing or creating Indebtedness (other than credit cards) be deemed to be a Treasury Management Agreement.

 

“Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Base Rate, the Adjusted LIBO Rate or the EURIBO Rate.

 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of Texas or any other state the laws of which are required to be applied in connection with the issue of perfection of security interests.

 

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“Unrestricted Subsidiary” means (a) the Subsidiaries set forth on Schedule 1.01(b) and (b) any Subsidiary designated as an Unrestricted Subsidiary in accordance with Section 9.14 and any of its Subsidiaries, other than any Subsidiary that is designated a Restricted Subsidiary in accordance with Section 9.14.  For the avoidance of doubt, the Borrower may not be designated as an Unrestricted Subsidiary.

 

“US Dollar Equivalent” means, on any date of determination, (a) with respect to any amount denominated in US Dollars, such amount, (b) with respect to any amount in Euros, the equivalent in US Dollars of such amount and (c) with respect to any amount denominated in an Offshore Currency, the equivalent in US Dollars of such amount, in each case with respect to the foregoing clauses (b) and (c) as determined by the Administrative Agent pursuant to Section 1.05 using the Exchange Rate on such date of determination.

 

“US Dollars” or “$” refers to lawful money of the United States of America.

 

“U.S. Person” means a United States person as defined in Section 7701(a)(30) of the Code.

 

“U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 5.03(g)(ii)(B)(3).

 

“USA PATRIOT Act” has the meaning assigned to such term in Section 12.16.

 

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing (a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment, by (b) the then outstanding principal amount of such Indebtedness.

 

“Wholly-Owned Domestic Subsidiary” means any Domestic Subsidiary (other than the Borrower) of which all of the outstanding Equity Interests (other than any directors’ qualifying shares mandated by applicable law), on a fully-diluted basis, are owned by Parent or one or more of the other Wholly-Owned Domestic Subsidiaries or are owned by Parent and one or more of the other Wholly-Owned Domestic Subsidiaries.

 

“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

 

“Withholding Agent” means the Borrower and the Administrative Agent.

 

“Working Capital” means, at any date, the excess of current assets of Parent and its Consolidated Restricted Subsidiaries (excluding the current portion of deferred income taxes) on such date over current liabilities of Parent and its Consolidated Restricted Subsidiaries (excluding current maturities of long-term Indebtedness) on such date, all determined on a consolidated basis in accordance with GAAP.

 

Section 1.02                             Types of Loans and Borrowings.  For purposes of this Agreement, Loans and Borrowings may be classified and referred to by Type (e.g., a “LIBOR Loan” or a “LIBOR Borrowing”) or by Class (e.g., a “Revolving Loan” or a “Revolving Borrowing”) or by Type and Class (e.g., a “Revolving LIBOR Loan” or a “Revolving LIBOR Borrowing”).

 

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Section 1.03                             Terms Generally; Rules of Construction.  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, supplemented, restated or otherwise modified (subject to any restrictions on such amendments, supplements, restatements or modifications set forth in the Loan Documents), (b) any reference herein to any law shall be construed as referring to such law as amended, modified, codified or reenacted, in whole or in part, and in effect from time to time, (c) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to the restrictions contained in the Loan Documents), (d) 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, (e) with respect to the determination of any time period, the word “from” means “from and including”, the word “to” means “to but excluding” and the word “through” means “through and including”, (f) any reference herein to Articles, Sections, Annexes, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement and (g) any reference herein to “knowledge of the Borrower” or to “the Borrower’s knowledge” shall be construed to mean the actual knowledge of a Responsible Officer of the Borrower.  No provision of this Agreement or any other Loan Document shall be interpreted or construed against any Person solely because such Person or its legal representative drafted such provision.

 

Section 1.04                             Accounting Terms and Determinations; GAAP.  Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all determinations with respect to accounting matters hereunder shall be made, and all financial statements and certificates and reports as to financial matters required to be furnished to the Administrative Agent or the Lenders hereunder shall be prepared, in accordance with GAAP, applied on a basis consistent with the audited financial statements of Parent and its Consolidated Restricted Subsidiaries referred to in Section 8.01(a) (except for changes concurred with by Parent and its Consolidated Restricted Subsidiaries’ independent public accountants); provided that, if Parent notifies the Administrative Agent that it requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof or the operation of such provision (or if the Administrative Agent notifies Parent that the Majority Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.  Notwithstanding anything to the contrary in this Agreement or any other Loan Document, for purposes of calculations made pursuant to the terms of this Agreement or any other Loan Document, GAAP will be deemed to treat leases that would have been classified as operating leases in accordance with generally accepted accounting principles in the United States as in effect on December 31, 2014 in a manner consistent with the treatment of such leases under generally accepted accounting principles in the United States as in effect on December 31, 2014, notwithstanding any modifications or interpretive changes thereto that may occur thereafter.  Notwithstanding anything to the contrary in this Agreement or any other Loan Document, for the purposes of calculating any of the ratios tested under Section 9.10, and the components of each of such ratios, all Unrestricted Subsidiaries (including their assets, liabilities, income, losses, cash flows, and the elements thereof) shall be excluded, except that cash distributions actually received by Parent or any Consolidated Restricted Subsidiary from Unrestricted Subsidiaries shall be included as income of Parent and such Consolidated Restricted Subsidiary when received as provided in the definition of “EBITDA” contained in Section 1.01.

 

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Section 1.05                             Currency Translation.  The Administrative Agent shall determine the US Dollar Equivalent of any Borrowing denominated in Euros two (2) Business Days prior to the initial Interest Period therefor and as of the date two (2) Business Days prior to the commencement of each subsequent Interest Period therefor, in each case using the Exchange Rate for Euros in relation to US Dollars in effect on the date of determination, and such amount shall, except as provided in the immediately succeeding sentence, be the US Dollar Equivalent of such Borrowing until the next required calculation thereof pursuant to this sentence.  The Administrative Agent may also determine the US Dollar Equivalent of any Borrowing denominated in Euros as of such other dates as the Administrative Agent shall select in its discretion, in each case using the Exchange Rate in effect on the date of determination, and such amount shall be the US Dollar Equivalent of such Borrowing until the next calculation thereof pursuant to this Section.  The Administrative Agent shall notify the Borrower and the Lenders of each determination of the US Dollar Equivalent of each Borrowing denominated in Euros.  Any determination by the Administrative Agent pursuant to this Section 1.05 shall be conclusive absent manifest error.

 

ARTICLE II
 The Credits

 

Section 2.01                             Commitments.

 

(a)                                 Subject to the terms and conditions set forth herein, each Revolving Lender agrees to make loans to the Borrower (each such loan, a “Revolving Loan”), denominated in US Dollars or Euros, from time to time during the Availability Period in an aggregate principal amount that will not result in (i) such Revolving Lender’s Revolving Credit Exposure exceeding such Revolving Lender’s Revolving Commitment and (ii) the Total Revolving Credit Exposure exceeding the Aggregate Revolving Commitments.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, repay and reborrow the Revolving Loans.

 

(b)                                 Subject to the terms and conditions set forth herein, each Term Loan Lender severally agrees to make a term loan to the Borrower (each such loan, a “Term Loan”), denominated in US Dollars, on the Initial Availability Date in an aggregate principal amount that will not result in (i) the amount of the Term Loan made by such Term Loan Lender hereunder exceeding such Term Loan Lender’s Term Loan Commitment or (ii) the aggregate amount of the Term Loans made by all Term Loan Lenders hereunder exceeding the total Term Loan Commitments. Once borrowed, the Borrower may not reborrow any portion of the Term Loans that has been repaid or prepaid, whether in whole or in part.  Upon any funding of any Term Loan hereunder by any Term Loan Lender, such Term Loan Lender’s Term Loan Commitment shall terminate immediately and without further action in an amount equal to, and on the date of, such funding of such Term Loan.

 

Section 2.02                             Loans and Borrowings.

 

(a)                                 Borrowings; Several Obligations.  Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective Commitments.  The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required.

 

(b)                                 Types of Loans.

 

(i)                                     Subject to Section 3.03, each Loan shall be made as part of a Borrowing consisting of Loans of the same Type, Class and currency made by the Lenders ratably in accordance with their respective Commitments as the Borrower may request in accordance herewith.

 

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(ii)                                  Subject to Section 3.03, (A) each Borrowing denominated in US Dollars shall be comprised entirely of ABR Loans or LIBOR Loans as the Borrower may request in accordance herewith, and (B) each Borrowing denominated in Euros shall be comprised entirely of EURIBOR Loans.  Each Lender at its option may make any Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

 

(c)                                  Minimum Amounts; Limitation on Number of Borrowings.  At the commencement of each Interest Period for any LIBOR Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less than $1,000,000.  At the time that any ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $250,000 and not less than $250,000; provided that an ABR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the Aggregate Revolving Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.07(d).  At the commencement of each Interest Period for any EURIBOR Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of €500,000 and not less than €1,000,000.  Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not be more than a total of twelve (12) LIBOR Borrowings and EURIBOR Borrowings outstanding at any time.  Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Revolving Borrowing if the Interest Period requested with respect thereto would end after the Revolving Maturity Date or any Term Loan Borrowing if the Interest Period requested with respect thereto would end after the Term Loan Maturity Date.

 

(d)                                 Notes.  Any Lender may request that the Term Loans and/or Revolving Loans, as applicable, made by such Lender be evidenced by a Term Loan Note or Revolving Note, as applicable, dated, in the case of (i) any Lender party hereto as of the Initial Availability Date, as of the Initial Availability Date, (ii) any Lender that becomes a party hereto pursuant to an Assignment and Assumption, as of the effective date of such Assignment and Assumption or (iii) any Lender that becomes a party hereto in connection with an increase in the Aggregate Revolving Commitments pursuant to Section 2.06(c), as of the effective date of such increase, payable to such Lender in a principal amount equal to its Term Loan Commitment (or, for any Term Loan Note issued following the Initial Availability Date, in an amount equal to the principal amount of the Term Loan held by such Term Loan Lender) or its Revolving Commitment as in effect on such date, as applicable and in each case denominated in US Dollars, and otherwise duly completed.  In the event that any Revolving Lender’s Revolving Commitment increases or decreases for any reason (whether pursuant to Section 2.06, Section 12.04(c) or otherwise), at the request of such Revolving Lender, the Borrower shall deliver or cause to be delivered on the effective date of such increase or decrease, a new Revolving Note payable to such Revolving Lender in a principal amount equal to its Revolving Commitment (denominated in US Dollars) after giving effect to such increase or decrease, and otherwise duly completed.  In the event any Term Loan Lender’s share of the outstanding Term Loans increases for any reason (whether pursuant to Section 12.04(c) or otherwise), the Borrower shall, upon request of such Term Loan Lender, deliver or cause to be delivered, on the effective date of such increase, a new Term Loan Note payable to such Term Loan Lender in a principal amount equal to its outstanding Term Loans as of such date.  The date, amount, Type, interest rate and, if applicable, Interest Period of each Term Loan and each Revolving Loan made by each Lender and all payments made on account of the principal thereof, shall be recorded by such Lender on its books for its Term Loan Note and Revolving Notes, as applicable, and, prior to any transfer, may be recorded by such Lender on a schedule attached to such Note or any continuation thereof or on any separate record maintained by such Lender.  Failure to make any such notation or to attach a schedule shall not affect any Lender’s or the Borrower’s rights or obligations in respect of such Loans or affect the validity of such transfer by any Lender of its Term Loan Note and/or Revolving Note.

 

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Section 2.03                             Requests for Borrowings.  To request a Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone, facsimile or e-mail (a) in the case of a LIBOR Borrowing, not later than 12:00 p.m., Eastern time, three (3) Business Days before the date of the proposed Borrowing; (b) in the case of a EURIBOR Borrowing, not later than 12:00 p.m., Eastern time, three (3) Business Days before the date of the proposed Borrowing or (c) in the case of an ABR Borrowing, not later than 12:00 p.m., Eastern time, on the date of the proposed Borrowing; provided that no such notice shall be required for any deemed request of an ABR Borrowing to finance the reimbursement of an LC Disbursement as provided in Section 2.07(d).  Each such Borrowing Request shall be irrevocable and, in the case of a telephonic Borrowing request, shall be confirmed promptly by hand delivery, facsimile or e-mail to the Administrative Agent of a written Borrowing Request in substantially the form of Exhibit B and signed by the Borrower.  Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02:

 

(i)                                     the currency (whether in US Dollars or Euros) and aggregate amount of the requested Borrowing (and, with respect to the Borrowing Request regarding Borrowings to be made on the Initial Availability Date, the amount of the requested Term Loan Borrowing and the amount of the requested Revolving Borrowing);

 

(ii)                                  the date of such Borrowing, which shall be a Business Day;

 

(iii)                               whether such Borrowing is to be an ABR Borrowing, a LIBOR Borrowing or a EURIBOR Borrowing;

 

(iv)                              in the case of a LIBOR Borrowing or a EURIBOR Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and

 

(v)                                 the location and number of the account to which funds are to be disbursed, which shall comply with the requirements of Section 2.05.

 

If no currency is specified with respect to any requested Borrowing, then the Borrower shall be deemed to have selected US Dollars.  If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be (A) in the case of a Borrowing denominated in US Dollars, an ABR Borrowing and (B) in the case of Borrowing denominated in Euros, a EURIBOR Borrowing.  If no Interest Period is specified with respect to any requested LIBOR Borrowing or EURIBOR Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.  Each request for a Borrowing shall constitute a representation that the amount of the requested Borrowing shall not cause (x) the Total Revolving Credit Exposure to exceed the Aggregate Revolving Commitments or (y) the total outstanding Term Loans to exceeds the total Term Loan Commitments.  Promptly following receipt of a Borrowing Request in accordance with this Section 2.03, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.

 

Section 2.04                             Interest Elections.

 

(a)                                 Conversion and Continuance.  Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a LIBOR Borrowing or EURIBOR Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.  Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a LIBOR Borrowing or EURIBOR Borrowing, may elect Interest Periods therefor, all as provided in this Section 2.04.  The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.  

 

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This Section 2.04 shall not apply to Swingline Borrowings, which may not be converted or continued.

 

(b)                                 Interest Election Requests.  To make an election pursuant to this Section 2.04, the Borrower shall notify the Administrative Agent of such election by telephone, facsimile or e-mail by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election.  Each such Interest Election Request shall be irrevocable and, in the case of a telephonic Interest Election Request, shall be confirmed promptly by hand delivery, facsimile or e-mail to the Administrative Agent of a written Interest Election Request in substantially the form of Exhibit C and signed by the Borrower. Notwithstanding any other provision of this Section 2.04, the Borrower shall not be permitted to (i) change the currency of any Borrowing or (ii) elect an Interest Period for a LIBOR Borrowing or a EURIBOR Borrowing that, in the case of this clause (b), does not comply with Section 2.02(c).

 

(c)                                  Information in Interest Election Requests.  Each telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.03:

 

(i)                                     the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to Section 2.04(c)(iii) and (iv) shall be specified for each resulting Borrowing);

 

(ii)                                  the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

 

(iii)                               whether the resulting Borrowing is to be an ABR Borrowing, a LIBOR Borrowing or a EURIBOR Borrowing; and

 

(iv)                              if the resulting Borrowing is a LIBOR Borrowing or a EURIBOR Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”.

 

If any such Interest Election Request requests a LIBOR Borrowing or a EURIBOR Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.

 

(d)                                 Notice to Lenders by the Administrative Agent.  Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Term Loan Lender and/or each Revolving Lender, as applicable, of the details thereof and of such Lender’s portion of each resulting Borrowing.

 

(e)                                  Effect of Failure to Deliver Timely Interest Election Request and Event of Default.  If the Borrower fails to deliver a timely Interest Election Request with respect to a LIBOR Borrowing or a EURIBOR Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period (i) in the case of a LIBOR Borrowing, such Borrowing shall be converted to an ABR Borrowing and (ii) in the case of a EURIBOR Borrowing, such Borrowing shall be continued as a EURIBOR Borrowing for an Interest Period of one month.  Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent so notifies the Borrower, then, so long as an Event of Default is continuing:  (i) no outstanding Borrowing denominated in US Dollars may be converted to or continued as a LIBOR Borrowing (and any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a LIBOR Borrowing shall be ineffective), (ii) unless repaid, each LIBOR Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto and (iii) unless repaid, each EURIBOR Borrowing shall be continued as a EURIBOR Borrowing with an Interest Period of one month’s duration.

 

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Section 2.05                             Funding of Borrowings.

 

(a)                                 Funding by Lenders.  Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 1:00 p.m., Eastern time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders; provided that Swingline Loans shall be made by the time specified in Section 2.08(b).  The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account designated by the Borrower in the applicable Borrowing Request; provided that ABR Loans that are Revolving Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.07(d) shall be remitted by the Administrative Agent to the applicable Issuing Bank.  Nothing herein shall be deemed to obligate any Lender to obtain the funds for its Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for its Loan in any particular place or manner.

 

(b)                                 Presumption of Funding by the Lenders.  Except with respect to Swingline Loans made pursuant to Section 2.08, unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.05(a) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to the Loans that are the same Class that such Lender failed to fund.  If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing.  Any payment made by the Borrower pursuant to this Section 2.05(b) shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

 

Section 2.06                             Termination, Reduction and Increase of Commitments.

 

(a)                                 Scheduled Termination of Commitments.  Notwithstanding anything to the contrary herein, the Term Loan Commitments that are funded on the Initial Availability Date shall be terminated upon such funding and, if the total Term Loan Commitments as of the Initial Availability Date are not drawn on the Initial Availability Date, any Term Loan Commitments in respect of the undrawn amount shall automatically be cancelled.  Unless previously terminated, the Aggregate Revolving Commitments shall terminate on the Revolving Maturity Date; provided that, if the Initial Availability Date does not occur on or prior to January 4, 2016, the Commitments shall terminate at 11:59 p.m., Eastern time, on January 4, 2016.

 

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(b)                                 Optional Termination and Reduction of Aggregate Revolving Commitments.

 

(i)                                     The Borrower may at any time terminate, or from time to time reduce, the Aggregate Revolving Commitments; provided that (A) each reduction of the Aggregate Revolving Commitments shall be in an amount that is an integral multiple of $500,000 and not less than $1,000,000 and (B) the Borrower shall not terminate or reduce the Aggregate Revolving Commitments if, after giving effect to any concurrent prepayment of the Revolving Loans in accordance with Section 3.04(c), the Total Revolving Credit Exposure would exceed the Aggregate Revolving Commitments.

 

(ii)                                  The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Aggregate Revolving Commitments under Section 2.06(b)(i) not later than 12:00 p.m., Eastern time, on the effective date of such termination or reduction, specifying such election and the effective date thereof.  Promptly following receipt of any notice, the Administrative Agent shall advise the Revolving Lenders of the contents thereof.  Each notice delivered by the Borrower pursuant to this Section 2.06(b)(ii) shall be irrevocable; provided that a notice of termination of the Aggregate Revolving Commitments may state that such notice is conditioned upon the occurrence of one or more events specified therein, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied, subject to the payment of any compensation required by Section 5.02.  Any termination or reduction of the Aggregate Revolving Commitments shall be permanent and may not be reinstated except pursuant to Section 2.06(c).  Each reduction of the Aggregate Revolving Commitments shall be made ratably among the Revolving Lenders in accordance with each Lender’s Applicable Revolving Percentage.

 

(c)                                  Optional Increase in Aggregate Revolving Commitments.

 

(i)                                     Subject to the conditions set forth in Section 2.06(c)(ii), the Borrower may at any time and from time to time increase the Aggregate Revolving Commitments then in effect by increasing the Revolving Commitment of one or more Revolving Lenders or by causing one or more Persons that at such time are not already Revolving Lenders to become Revolving Lenders (each, an “Additional Revolving Lender”).

 

(ii)                                  Any increase in the Aggregate Revolving Commitments shall be subject to the following additional conditions:

 

(A)                               the amount of such increase shall be an integral multiple of $5,000,000 (unless the Administrative Agent shall otherwise consent);

 

(B)                               after giving effect to such increase pursuant to this Section 2.06(c), the Aggregate Revolving Commitments shall not exceed $900,000,000;

 

(C)                               no Default shall have occurred and be continuing on the effective date of such increase;

 

(D)                               on the effective date of such increase, no LIBOR Borrowings or EURIBOR Borrowings shall be outstanding or if any LIBOR Borrowings or EURIBOR Borrowings are outstanding, then the effective date of such increase shall be the last day of the Interest Period in respect of such LIBOR Borrowings or EURIBOR Borrowings unless the Borrower pays any compensation required by Section 5.02;

 

(E)                                no Revolving Lender’s Revolving Commitment may be increased without the consent of such Revolving Lender;

 

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(F)                                 if such increase is effected in whole or in part by increasing the Revolving Commitment of a Revolving Lender, the Borrower and such Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of Exhibit H-1 (a “Revolving Commitment Increase Certificate”), and, if requested by such Revolving Lender, the Borrower shall deliver a new or replacement Revolving Note payable to such Revolving Lender in a principal amount equal to its Revolving Commitment after giving effect to such increase, and otherwise duly completed;

 

(G)                               if such increase is effected in whole or in part by causing an Additional Revolving Lender to become a party to this Agreement, (1) the Borrower and such Additional Revolving Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of Exhibit H-2 (an “Additional Revolving Lender Certificate”), together with an Administrative Questionnaire, and, if requested by such Additional Revolving Lender, the Borrower shall deliver a Revolving Note payable to such Additional Revolving Lender in a principal amount equal to its Revolving Commitment, and otherwise duly completed, and (2) such Additional Revolving Lender shall be subject to the approval of the Administrative Agent and each Issuing Bank (in each case not to be unreasonably withheld or delayed);

 

(H)                              the representations and warranties of the Borrower and the Guarantors set forth in this Agreement and in the other Loan Documents shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representation or warranty that is already qualified or modified by materiality in the text thereof) on and as of the effective date of such increase, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, on and as of the effective date of such increase, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date;

 

(I)                                   the receipt by the Administrative Agent and the Revolving Lenders participating in such increase of all fees and expenses payable by the Borrower in connection therewith pursuant to a written agreement among the Borrower and the Administrative Agent and/or the Revolving Lenders participating in such increase or under Section 12.04 (to the extent required to be paid on or before the date on which such increase becomes effective); and

 

(J)                                   the receipt by the Administrative Agent of the following documents which shall each be reasonably satisfactory to the Administrative Agent in form and substance:  (1) documents of the type required to be delivered pursuant to Sections 6.01(a)(ii), 6.01(a)(iii) and 6.02(a)(xi) (if requested by the Administrative Agent), in each case to the extent relating to any increases in the Aggregate Revolving Commitments, (2) if a Borrowing is requested to be made on the effective date of such increase, a Borrowing Request and (3) such other documents relating to the applicable increase in the Aggregate Revolving Commitments as the Administrative Agent or any Revolving Lender participating in such increase may reasonably request.

 

(iii)                               Subject to acceptance and recording thereof pursuant to Section 2.06(c)(iv), from and after the effective date specified in any Revolving Commitment Increase Certificate or Additional Revolving Lender Certificate (or if any LIBOR Borrowings or EURIBOR Borrowings are outstanding, then the last day of the Interest Period in respect of such LIBOR Borrowings or EURIBOR Borrowings, unless the Borrower pays any compensation required by Section 5.02), as the case may be:  (A) the amount of the Aggregate Revolving Commitments shall be increased as set forth therein, and (B) in the case of an Additional Revolving Lender Certificate, any Additional Revolving Lender party thereto shall be a party to this Agreement and have the rights and obligations of a Revolving Lender under this Agreement and the other Loan Documents.  

 

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In addition, in connection with an increase of the Aggregate Revolving Commitments, each Revolving Lender and Additional Revolving Lender participating in such increase shall purchase a pro rata portion of the outstanding Revolving Loans (and participation interests in Letters of Credit) of each of the other Revolving Lenders (and such Revolving Lenders hereby agree to sell and to take all such further action to effectuate such sale) such that each Revolving Lender (including any Additional Revolving Lender, if applicable) shall hold its Applicable Revolving Percentage of the outstanding Revolving Loans (and participation interests in Letters of Credit) after giving effect to the increase in the Aggregate Revolving Commitments.

 

(iv)                              Upon its receipt of (A) a duly completed Revolving Commitment Increase Certificate or an Additional Revolving Lender Certificate, as the case may be, executed by the Borrower and the Revolving Lender or the Borrower and the Additional Revolving Lender party thereto, as applicable, (B) the Administrative Questionnaire referred to in Section 2.06(c)(ii)(G), if applicable, (C) confirmation of the approval or consent of any applicable Person required pursuant to this Section 2.06(c) and (D) such documents required under Section 2.06(c)(ii)(J), the Administrative Agent shall accept such Revolving Commitment Increase Certificate or Additional Revolving Lender Certificate, as the case may be, and record the information contained therein in the Register required to be maintained by the Administrative Agent pursuant to Section 12.04(c).  No increase in the Aggregate Revolving Commitments shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this Section 2.06(c)(iv).

 

Section 2.07                             Letters of Credit.

 

(a)                                 General.  Subject to the terms and conditions hereof, each Issuing Bank agrees to issue, renew and extend Letters of Credit for the account of the Borrower in support of obligations of Parent, the Borrower or any Restricted Subsidiary in US Dollars and Euros; provided, however, that, after giving effect to the issuance, renewal or extension of any Letter of Credit, (x) the aggregate US Dollar Equivalent of the LC Exposure shall not exceed $500,000,000 and (y) the aggregate US Dollar Equivalent of Letters of Credit issued by any Issuing Bank shall not exceed such Issuing Bank’s LC Issuance Limit.  Letters of Credit may be issued, renewed or extended on any Business Day during the period from the Initial Availability Date to the 30th day prior to the Revolving Maturity Date.  The Revolving Lenders shall participate in such Letters of Credit according to their respective Applicable Revolving Percentages.  Each of the Letters of Credit shall (i) be issued by the applicable Issuing Bank on a sight basis only, (ii) contain such terms and provisions as are reasonably required by the applicable Issuing Bank, (iii) be for the account of the Borrower in support of obligations of Parent, the Borrower or any Restricted Subsidiary and (iv) subject to the immediately succeeding paragraph, expire not later than five (5) Business Days before the Revolving Maturity Date.  The Borrower may request that any Letter of Credit be issued in an Offshore Currency.  No Issuing Bank shall be obligated to issue an Offshore Currency Letter of Credit if such Issuing Bank has determined, in its sole discretion, that it is unable to fund obligations in the requested Offshore Currency; provided, however, the Administrative Agent shall use its commercially reasonable efforts to locate suitable issuers if no Issuing Bank is able to fund obligations in the requested Offshore Currency.  From and after the Initial Availability Date, the Existing Letters of Credit shall be deemed to be Letters of Credit issued pursuant to this Section 2.07.

 

Notwithstanding anything to the contrary contained in this Agreement, including this Section 2.07, the expiration date of one or more Letters of Credit may extend beyond the Revolving Maturity Date (“Extended Expiry Letters of Credit”); provided, however, it is hereby expressly agreed and understood that:

 

(i)                                     the US Dollar Equivalent of the aggregate face amount of all such Extended Expiry Letters of Credit shall not at any time exceed $150,000,000;

 

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(ii)                                  the expiration date of any Extended Expiry Letters of Credit shall not be later than three (3) years after the Revolving Maturity Date;

 

(iii)                               the Borrower shall, not later than five (5) Business Days prior to the Revolving Maturity Date, deposit cash in an account with the Administrative Agent, in the name of the Administrative Agent for the benefit of the Administrative Agent and each applicable Issuing Bank, and/or provide one or more Support Letters of Credit for the benefit of the Administrative Agent and each applicable Issuing Bank, so that the aggregate amount of cash and the aggregate face amount of such Support Letters of Credit is at least equal to the sum of (A) 105% of the aggregate amount available for drawing under all Extended Expiry Letters of Credit denominated in US Dollars as of such date and (B) 110% of the aggregate amount available for drawing under all Extended Expiry Letters of Credit denominated in Euros or any Offshore Currency as of such date;

 

(iv)                              if any Issuing Bank makes any disbursement in connection with a Letter of Credit after the Revolving Maturity Date, such disbursement shall be an advance on behalf of the Borrower under this Agreement and shall be reimbursed to such Issuing Bank (A) first, by the Administrative Agent applying amounts in the cash collateral account and/or proceeds of any drawing on any Support Letter of Credit referred to in clause (iii) of this paragraph until reimbursed in full, and (B) second, by the Borrower pursuant to Section 2.07(d) (except that the Borrower shall not have the right to request that the Lenders make, and the Lenders shall not have any obligation to make, a Loan under this Agreement after the Revolving Maturity Date to fund any such disbursement); and

 

(v)                                 all such disbursements referred to in clause (iv) of this paragraph shall be secured only by the cash collateral and Support Letters of Credit referred to in clause (iii) of this paragraph and the Borrower hereby grants to the Administrative Agent a first-priority security interest in all such cash collateral (whether now or hereafter deposited in the cash collateral account referred to in clause (iii) of this paragraph), without any further action on the part of any Issuing Bank, the Borrower, the Administrative Agent, any Lender or any other Person now or hereafter party hereto (other than any action the Administrative Agent reasonably deems necessary to perfect such security interest, which action the Borrower hereby authorizes the Administrative Agent to take), until such disbursements are reimbursed in full.

 

The obligations of the Borrower under this Agreement and the other Loan Documents regarding Letters of Credit, including obligations under this Section 2.07, shall survive after the Revolving Maturity Date and termination of the Revolving Commitments for so long as any LC Exposure exists.

 

(b)                                 Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions.  To request the issuance of a Letter of Credit by any Issuing Bank (or the amendment, renewal or extension of an outstanding Letter of Credit issued by any Issuing Bank), the Borrower shall hand deliver or transmit by facsimile or e-mail to such Issuing Bank and the Administrative Agent not later than 12:00 p.m., Eastern time, (i) three (3) Business Days before the proposed date such Letter of Credit is to be issued (or such shorter time as such Issuing Bank may agree) and (ii) one (1) Business Day before the proposed date of any amendment, renewal or extension of a Letter of Credit (or such shorter time as such Issuing Bank may agree), a Letter of Credit Request requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying:

 

(i)                                     which Issuing Bank is being requested to issue such Letter of Credit and the date of issuance, amendment, renewal or extension (which shall be a Business Day),

 

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(ii)                                  the date on which such Letter of Credit is to expire (which shall comply with paragraph (a) of this Section 2.07),

 

(iii)                               the amount of such Letter of Credit,

 

(iv)                              the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit, and

 

(v)                                 the current Total Revolving Credit Exposures (without regard to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit) and the pro forma Total Revolving Credit Exposures (giving effect to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit).

 

If requested by any Issuing Bank, the Borrower shall submit a letter of credit application on such Issuing Bank’s standard form in connection with any request for a Letter of Credit.  A Letter of Credit shall be issued, amended, renewed or extended by an Issuing Bank only if (and with respect to each notice provided by the Borrower above and any issuance, amendment, renewal or extension of each Letter of Credit, the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (A) the portion of the LC Exposure attributable to Letters of Credit issued by such Issuing Bank will not, unless such Issuing Bank shall so agree in its sole discretion, exceed the LC Issuance Limit of such Issuing Bank, (B) the LC Exposure will not exceed $500,000,000 and (C) the Total Revolving Credit Exposure will not exceed the Aggregate Revolving Commitments.  No letter of credit issued by any Issuing Bank (if such Issuing Bank is not the Administrative Agent) shall be deemed to be a “Letter of Credit” issued under this Agreement unless such Issuing Bank has requested and received written confirmation from the Administrative Agent that the representations by the Borrower contained in the foregoing clauses (B) and (C) are true and correct.

 

No Issuing Bank will be required to:  (A) issue any Letter of Credit if (1) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such Issuing Bank from issuing such Letter of Credit, or any law applicable to such Issuing Bank or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over such Issuing Bank shall prohibit, or request that such Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital requirement (for which such Issuing Bank is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon such Issuing Bank any unreimbursed loss, cost or expense that was not applicable on the Effective Date and that such Issuing Bank in good faith deems material to it, (2) the issuance of such Letter of Credit would violate one or more policies of such Issuing Bank applicable to letters of credit generally or (3) such Letter of Credit contains any provisions for automatic reinstatement of the stated amount after any drawing thereunder; or (B) amend or extend any Letter of Credit if such Issuing Bank would not be required at such time to issue the Letter of Credit in its amended form under the terms hereof or if the beneficiary of such Letter of Credit does not accept the proposed amendment thereto.

 

(c)                                  Participations.  In consideration and in furtherance of the foregoing, each Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the applicable Issuing Bank, such Revolving Lender’s Applicable Revolving Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed by the Borrower on the date due as provided in Section 2.07(d), or of any reimbursement payment required to be refunded to the Borrower for any reason.  Each Revolving Lender acknowledges and agrees that its obligation to acquire participations pursuant to this Section 2.07(c) in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit, the occurrence and continuance of a Default, or the reduction or termination of the Revolving Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

 

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(d)                                 Reimbursement and Prepayment.

 

(i)                                     In connection with any Letter of Credit, the Borrower may make funds available for disbursement by the applicable Issuing Bank in connection with such Letter of Credit.  In such cases, the Issuing Bank shall use such funds which the Borrower has made available to fund drawings under such Letter of Credit.  In addition, the Borrower may give written instructions to an Issuing Bank and the Administrative Agent to make a Revolving Loan under this Agreement to fund any Letters of Credit issued by such Issuing Bank which may be drawn.  In all such cases, the Borrower shall give the appropriate notices required under this Agreement for an ABR Loan or a LIBOR Loan.  If a disbursement by any Issuing Bank is made under any Letter of Credit, in cases in which the Borrower has not either provided its own funds to fund a draw on a Letter of Credit or given the Administrative Agent prior notice for a Revolving Loan under this Agreement, then the Borrower shall pay to the Administrative Agent within two (2) Business Days after notice of any such disbursement is received by the Borrower, the amount in the disbursed currency or, in the case of any Offshore Currency Letters of Credit, at the sole option of the Borrower, the US Dollar Equivalent determined on the date of such disbursement, of each such disbursement made by such Issuing Bank under such Letter of Credit (if such payment is not sooner effected as may be required under this Section 2.07(d) or under other provisions of the Letter of Credit), together with interest on the amount disbursed from and including the date of disbursement until payment in full of such disbursed amount at a varying rate per annum equal to (A) the then applicable interest rate for ABR Loans through the second Business Day after notice of such disbursement is received by the Borrower and (B) thereafter, the Post-Default Rate for ABR Loans (but in no event to exceed the Highest Lawful Rate) for the period from and including the third Business Day following the date of such disbursement to and including the date of repayment in full of such disbursed amount.  The obligations of the Borrower under this Agreement with respect to each Letter of Credit shall be absolute, unconditional and irrevocable and shall be paid or performed strictly in accordance with the terms of this Agreement under all circumstances whatsoever, including, without limitation, but only to the fullest extent permitted by applicable law, the following circumstances:  (U) any lack of validity or enforceability of this Agreement, any Letter of Credit or any of the Security Instruments; (V) any amendment or waiver of (including any default), or any consent to departure from this Agreement (except to the extent permitted by any amendment or waiver), any Letter of Credit or any of the Security Instruments; (W) the existence of any claim, set-off, defense or other rights which the Borrower may have at any time against the beneficiary of any Letter of Credit or any transferee of any Letter of Credit (or any Persons for whom any such beneficiary or any such transferee may be acting), any Issuing Bank, the Administrative Agent, any Lender or any other Person, whether in connection with this Agreement, any Letter of Credit, the Security Instruments, the Transactions or any unrelated transaction; (X) any statement, certificate, draft, notice or any other document presented under any Letter of Credit proves to have been forged, fraudulent, insufficient or invalid in any respect or any statement therein proves to have been untrue or inaccurate in any respect whatsoever; (Y) payment by any Issuing Bank under any Letter of Credit against presentation of a draft or certificate which appears on its face to comply, but does not comply, with the terms of such Letter of Credit; and (Z) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing.  Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the applicable Issuing Bank or, to the extent Revolving Lenders have funded Revolving Loans or made payments pursuant to Section 2.07(d)(iii) to reimburse such Issuing Bank for the applicable Letter of Credit disbursement, then to such Revolving Lenders and such Issuing Bank as their interests may appear.

 

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Notwithstanding anything in this Agreement to the contrary, the Borrower will not be liable for payment or performance with respect to any Letter of Credit that results from the gross negligence or willful misconduct of the applicable Issuing Bank or its officers, employees, agents or representatives except, to the extent the Borrower or any Restricted Subsidiary actually recovers the proceeds for itself or the Issuing Bank of any payment made by the Issuing Bank in connection with such gross negligence or willful misconduct, the Borrower will be liable for payment or performance of such recovered amount minus costs and expenses associated with such recovery.

 

(ii)                                  If no Event of Default has occurred and is continuing, and subject to availability under the Aggregate Revolving Commitments (after taking into account the LC Exposure), to the extent the Borrower has not reimbursed any Issuing Bank for any draw upon any Letter of Credit issued by such Issuing Bank within two (2) Business Day after notice of such disbursement has been received by the Borrower, the amount of such Letter of Credit reimbursement obligation shall automatically be funded by the Revolving Lenders as a Revolving Loan hereunder and used to pay such Letter of Credit reimbursement obligation in the percentages referenced in Section 2.07(d)(iii) below.  If an Event of Default has occurred and is continuing, or if the funding of such Letter of Credit reimbursement obligation as a Revolving Loan would cause the aggregate amount of all Revolving Loans to exceed the Aggregate Revolving Commitments (after taking into account the LC Exposure), such Letter of Credit reimbursement obligation shall not be funded as a Revolving Loan, but instead shall accrue interest as provided in Section 2.07(d)(i) and be subject to reimbursement under Section 2.07(d)(iii).

 

(iii)                               Each Revolving Lender severally and unconditionally agrees that it shall promptly reimburse each Issuing Bank in US Dollars an amount equal to such Revolving Lender’s participation in any Letter of Credit issued by such Issuing Bank as provided in Section 2.07(a) of any disbursement made by such Issuing Bank under such Letter of Credit that is not otherwise reimbursed (or funded as a Revolving Loan) in accordance with the other provisions of this Section 2.07 (other than with respect to disbursements described in the second paragraph of Section 2.07(d)(i)) and such obligation to reimburse is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Aggregate Revolving Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.  If the Borrower fails to reimburse any Letter of Credit disbursement when due (and a Revolving Loan cannot be made pursuant to Section 2.07(d)(ii) due to any of the circumstances described therein), then the Administrative Agent shall notify each Revolving Lender of the applicable disbursement, the payment then due from the Borrower in respect thereof and such Revolving Lender’s Applicable Revolving Percentage thereof.  Promptly following receipt of such notice, each Revolving Lender shall pay to the Administrative Agent its Applicable Revolving Percentage of the payment then due from the Borrower, in the same manner as provided in Section 2.05 with respect to Revolving Loans made by such Revolving Lender (and Section 2.05 shall apply, mutatis mutandis, to the payment obligations of the Revolving Lenders), and the Administrative Agent shall promptly pay to the applicable Issuing Bank the amounts so received by it from the Revolving Lenders.  Any payment made by a Revolving Lender pursuant to this paragraph to reimburse an Issuing Bank for any disbursement shall bear interest at the rate provided in Section 2.07(d)(i) and shall not relieve the Borrower of its obligation to reimburse such disbursement.

 

(e)                                  Cash Collateral.  If (i) any Event of Default shall occur and be continuing and the Borrower receives notice from the Administrative Agent or the Majority Revolving Lenders demanding the deposit of cash collateral pursuant to this Section 2.07(e), (ii) the Borrower is required to pay to the Administrative Agent the excess attributable to an LC Exposure in connection with any prepayment required by Section 3.04(c)(i)(B), (iii) the Borrower is required to deposit cash collateral pursuant to Section 2.07(a)(iii) or (iv) the Borrower is required to cash collateralize any Defaulting Lender’s LC Exposure and Swingline Exposure pursuant to Section 4.03(c)(iii)(B), then the Borrower shall deposit cash with the Administrative Agent for the benefit of the Issuing Banks and the Revolving Lenders (as applicable) in an amount equal to (A) in the case of clause (i) above, the LC Exposure (except for any outstanding Offshore Currency Letters of Credit, in which case the amount shall equal 110% of the aggregate face amount of all such Offshore Currency Letters of Credit), (B) in the case of clause (ii) above, the aggregate amount sufficient to eliminate such excess, (C) in the case of clause (iii) above, the amount required by Section 2.07(a)(iii) and (D) in the case of clause (iv) above, the amount of the applicable Defaulting Lender’s LC Exposure and Swingline Exposure.  

 

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Any deposits of cash required by this Section 2.07(e), by Section 3.04(c)(i)(B), Section 4.03(c)(iii)(B) or Section 2.07(a)(iii) shall be held by the Administrative Agent for the benefit of the Issuing Banks and the Revolving Lenders (as applicable) as cash collateral securing the LC Exposure in an account or accounts at its principal office; and the Borrower hereby grants to the Administrative Agent, by its deposit therewith, a security interest in such cash collateral.  In the event of any such payment by the Borrower of amounts contingently owing under outstanding Letters of Credit and in the event that thereafter drafts or other demands for payment complying with the terms of such Letters of Credit are not made prior to the respective expiration dates thereof, the Administrative Agent agrees, if no Event of Default has occurred and is continuing, to remit to the Borrower amounts on deposit as cash collateral for which the contingent obligations evidenced by such Letters of Credit have ceased.  If, after payment in full of all Obligations of the Borrower under the Loan Documents (including without limitation, reimbursement obligations with respect to Letters of Credit, but excluding any indemnities and other contingent obligations not then due and payable and as to which no claim has been made at the time of determination) and the expiration or cancellation of all outstanding Letters of Credit, there remains any amount on deposit as cash collateral, the Administrative Agent shall, within three (3) Business Days after all such Obligations are paid in full and all outstanding Letters of Credit have expired or been cancelled, return such amount to the Borrower.

 

(f)                                   Replacement of an Issuing Bank.  Any Issuing Bank may at any time be replaced by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank.  The Administrative Agent shall notify the Revolving Lenders of any such replacement of an Issuing Bank.  At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 3.05(a).  From and after the effective date of any replacement of an Issuing Bank, (i) the successor Issuing Bank shall have all the rights and obligations of the replaced Issuing Bank under this Agreement with respect to Letters of Credit to be issued by such successor Issuing Bank thereafter and (i) references herein to the term “Issuing Bank” shall be deemed to refer to any successor to any replaced Issuing Bank or to any previous Issuing Bank, or to any such successor Issuing Bank and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.  Schedule 1.02(b) shall be amended upon the written agreement of Parent, the Borrower, the Administrative Agent and any successor Issuing Bank to set forth such Issuing Bank’s LC Issuance Limit, and no successor Issuing Bank shall be an “Issuing Bank” hereunder until such amendment is effective.

 

(g)                                  Termination of an Issuing Bank.  Any Issuing Bank may be terminated at any time upon not less than ten (10) Business Days’ prior written notice by the Borrower to the Administrative Agent and such Issuing Bank.  The Administrative Agent shall notify the Revolving Lenders of any such termination of an Issuing Bank.  After the termination of an Issuing Bank hereunder, such Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such termination, but shall not be required to amend, renew or extend any such Letter of Credit or to issue additional Letters of Credit.

 

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(h)                                 Defaulting Lender.  Notwithstanding any provision of this Section 2.07 to the contrary, this Section 2.07 shall be subject to the requirements of Sections 4.03(c) and 4.03(d).

 

Section 2.08                             Swingline Loans.

 

(a)                                 Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make loans denominated in US Dollars to the Borrower (each such loan, a “Swingline Loan”) from time to time during the Availability Period in an aggregate principal amount at any time outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding $75,000,000, notwithstanding the fact that such Swingline Loans, when aggregated with the Revolving Credit Exposure of the Lender acting as the Swingline Lender, may exceed the amount of such Lender’s Revolving Commitment, or (ii) the Total Revolving Credit Exposure exceeding the Aggregate Revolving Commitments; provided that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan.  The Borrower shall pay to the Administrative Agent, for the account of the Swingline Lender or each Revolving Lender, as applicable, pursuant to Section 2.08(c), the outstanding aggregate principal and accrued and unpaid interest under each Swingline Loan no later than thirty (30) days following such Swingline Borrowing.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans.

 

(b)                                 To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such request by telephone, facsimile or e-mail not later than 2:00 p.m., Eastern time, on the date of the proposed Swingline Loan (and, in the case of telephonic notice, confirmed by hand delivery, facsimile or e-mail).  Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and amount of the requested Swingline Loan.  The Administrative Agent will promptly advise the Swingline Lender of any such notice received from the Borrower.  The Swingline Lender shall make each Swingline Loan available to the Borrower by means of a credit to the general deposit account of the Borrower with the Swingline Lender by 5:00 p.m., Eastern time, on the requested date of such Swingline Loan.  Each Swingline Borrowing shall be in an amount that is an integral multiple of $250,000 and not less than $250,000.

 

(c)                                  The Revolving Lenders shall participate in Swingline Loans according to their respective Applicable Revolving Percentages.  Upon any Swingline Borrowing, the Administrative Agent shall give notice thereof to each Revolving Lender, specifying in such notice such Revolving Lender’s Applicable Revolving Percentage of such Swingline Loan or Revolving Loans.  Each Revolving Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for the account of the Swingline Lender, such Revolving Lender’s Applicable Revolving Percentage of such Swingline Loan or Revolving Loans.  Each Revolving Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction or termination of the Aggregate Revolving Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.  Each Revolving Lender shall comply with its obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.05 with respect to Revolving Loans made by such Revolving Lender (and Section 2.05 shall apply, mutatis mutandis, to the payment obligations of the Revolving Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from the Revolving Lenders and shall distribute the payments received from the Borrower to the Swingline Lender and the other Revolving Lenders as their interests appear with respect to such Swingline Loans.  The Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph.  The purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any default in the payment thereof.  Notwithstanding the foregoing, a Revolving Lender shall not have any obligation to acquire a participation in a Swingline Loan pursuant to this paragraph if an Event of Default shall have occurred and be continuing at the time such Swingline Loan was made and such Revolving Lender shall have notified the Swingline Lender in writing, at least one (1) Business Day prior to the time such Swingline Loan was made, that such Event of Default has occurred and that such Revolving Lender will not acquire participations in Swingline Loans made while such Event of Default is continuing.

 

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(d)                                 Defaulting Lender.  Notwithstanding any provision of this Section 2.08 to the contrary, this Section 2.08 shall be subject to the requirements of Sections 4.03(c) and 4.03(d).

 

Section 2.09                             Amend and Extend Transactions.

 

(a)                                 The Borrower may, by written notice to the Administrative Agent from time to time, request an extension (each, an “Extension”) of the Term Loan Maturity Date to the extended maturity date specified in such notice. Such notice shall (i) set forth the amount of the Term Loans that will be subject to the Extension (which shall be in minimum increments of $5,000,000 and a minimum amount of $10,000,000) and (ii) set forth the date on which such Extension is requested to become effective (which shall be not less than ten (10) Business Days nor more than sixty (60) days after the date of such Extension notice (or such longer or shorter periods as the Administrative Agent shall agree in its sole discretion)).  Each Term Loan Lender shall be offered (an “Extension Offer”) an opportunity to participate in such Extension on a pro rata basis and on the same terms and conditions as each other Term Loan Lender pursuant to procedures established by, or reasonably acceptable to, the Administrative Agent and the Borrower. If the aggregate principal amount of Term Loans in respect of which Term Loan Lenders shall have accepted the relevant Extension Offer shall exceed the maximum aggregate principal amount of Term Loans subject to the Extension Offer as set forth in the Extension notice, then the Term Loans of the Term Loan Lenders shall be extended ratably up to such maximum amount based on the respective principal amounts with respect to which such Term Loan Lenders have accepted such Extension Offer.

 

(b)                                 The following shall be conditions precedent to the effectiveness of any Extension: (i) no Default or Event of Default shall have occurred and be continuing immediately prior to and immediately after giving effect to such Extension, (ii) the representations and warranties set forth in Article VII and in each other Loan Document shall be deemed to be made and shall be true and correct in all material respects on and as of the effective date of such Extension, and (iii) the terms of such Extended Term Loans shall comply with paragraph (c) of this Section.

 

(c)                                  The terms of each Extension shall be determined by the Borrower and the applicable extending Term Loan Lenders and set forth in an amendment to this Agreement effecting such Extension; provided that (i) the final maturity date of any Extended Term Loan shall be no earlier than the Term Loan Maturity Date, (ii) the Weighted Average Life to Maturity of the Extended Term Loans shall be no shorter than the Weighted Average Life to Maturity of the existing Term Loans, (iii) the Extended Term Loans will rank pari passu in right of payment and with respect to security with the existing Revolving Loans and the existing Term Loans and the borrower and guarantors of the Extended Term Loans, as applicable, shall be the same as the Borrower and Guarantors with respect to the existing Revolving Loans and Term Loans, (iv) the interest rate margin, rate floors, fees, original issue discount and premium applicable to any Extended Term Loans shall be determined by the Borrower and the applicable extending Term Loan Lenders, (v) the Extended Term Loans may participate on a pro rata or less than pro rata (but not greater than pro rata) basis in voluntary or mandatory prepayments with the other Term Loans and (vi) the terms of the Extended Term Loans, as applicable, shall be substantially identical to the terms set forth herein (except as set forth in clauses (i) through (v) above).

 

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(d)                                 In connection with any Extension, the Borrower, the Administrative Agent and each applicable extending Term Loan Lender shall execute and deliver to the Administrative Agent an amendment to this Agreement effecting such Extension and such other documentation as the Administrative Agent shall reasonably specify to evidence the Extension. The Administrative Agent shall promptly notify each Term Loan Lender as to the effectiveness of each Extension. Any amendment to this Agreement effecting such Extension may, without the consent of any other Term Loan Lender or any Revolving Lender, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to implement the terms of any such Extension, including any amendments necessary to establish Extended Term Loans as a new Class or tranche of Term Loans, as applicable, and such other technical amendments as may be necessary or appropriate in the reasonable opinion of the Administrative Agent and the Borrower in connection with the establishment of such new Class or tranche (including to preserve the pro rata treatment of the extended and non-extended Classes or tranches), in each case on terms consistent with this Section.

 

ARTICLE III
 Payments of Principal and Interest; Prepayments; Fees

 

Section 3.01                             Repayment of Loans.  The Borrower shall pay to the Administrative Agent, (a) for the account of each Term Loan Lender, the outstanding aggregate principal amount of and accrued and unpaid interest on the Term Loans in the applicable currency in which such Term Loan was funded, on the Term Loan Maturity Date and (b) for the account of each Revolving Lender, the outstanding aggregate principal amount of and accrued and unpaid interest on the Revolving Loans and Swingline Loans in the applicable currency in which such Revolving Loan or Swingline Loan was funded, as applicable, on the Revolving Maturity Date.

 

Section 3.02                             Interest.

 

(a)                                 ABR Loans.  The Loans comprising each ABR Borrowing shall bear interest at the Base Rate plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate.

 

(b)                                 LIBOR Loans.  The Loans comprising each LIBOR Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate.

 

(c)                                  EURIBOR Loans. The Loans comprising each EURIBOR Borrowing shall bear interest at the EURIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate.

 

(d)                                 Swingline Loans.  Swingline Loans shall bear interest at the Adjusted LIBO Rate for a one (1) month Interest Period that would be applicable to a Revolving Loan, as that rate may fluctuate in accordance with changes in the Adjusted LIBO Rate as determined on a day-to-day basis, plus the Applicable Margin that would be applicable to a LIBOR Loan, but in no event to exceed the Highest Lawful Rate.

 

(e)                                  Post-Default Rate.  Notwithstanding the foregoing, (i) if any amount of principal of any Loan is not paid when due (after giving effect to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at the Post-Default Rate, (ii) if any amount (other than principal of any Loan) payable by the Borrower under any Loan Document is not paid when due (after giving effect to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then upon the request of the Majority Lenders, such amount shall thereafter bear interest at the Post-Default Rate and (iii) after an Event of Default described in Section 10.01(f) or Section 10.01(g) has occurred and is continuing, all outstanding amounts (including principal, fees and other obligations) under the Loan Documents shall automatically bear interest at the Post-Default Rate.

 

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(f)                                   Interest Payment Dates.  Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan; provided that (i) interest accrued pursuant to Section 3.02(e) shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than an optional prepayment of an ABR Term Loan prior to the Term Loan Maturity Date or an optional prepayment of an ABR Revolving Loan prior to the Revolving Maturity Date), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any LIBOR Loan or EURIBOR Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.  Any accrued and unpaid interest on the Term Loans shall be paid on the Term Loan Maturity Date and any accrued and unpaid interest on the Revolving Loans shall be paid on the Revolving Maturity Date.

 

(g)                                  Interest Rate Computations.  All interest with respect to LIBOR Loans or EURIBOR Loans hereunder shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  All interest with respect to ABR Loans hereunder shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  The applicable Base Rate, LIBO Rate, Adjusted LIBO Rate and EURIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error, and be binding upon the parties hereto.

 

Section 3.03                             Alternate Rate of Interest.  If prior to the commencement of any Interest Period for a LIBOR Borrowing or a EURIBOR Borrowing:

 

(a)                                 the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the EURIBO Rate, as the case may be, for such Interest Period; or

 

(b)                                 the Administrative Agent is advised by the Majority Lenders that the Adjusted LIBO Rate or the EURIBO Rate, as applicable, for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period;

 

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or facsimile as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a LIBOR Borrowing or EURIBOR Borrowing, as the case may be, shall be ineffective; (ii) if any Borrowing Request requests a LIBOR Borrowing, such Borrowing shall be made as an ABR Borrowing and (iii) if any Borrowing Request requests a EURIBOR Borrowing, such request shall be ineffective (and no Lender shall be obligated to make a Loan on account thereof).

 

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Section 3.04                             Prepayments.

 

(a)                                 Optional Prepayments.  The Borrower shall have the right at any time and from time to time, subject to Section 3.04(d), to prepay any Borrowing in whole or in part, subject to prior notice in accordance with Section 3.04(b); provided that the Borrower shall not have the right to make any optional prepayment of Term Loans unless (i) such prepayment results in the payment in full of all Term Loans and is made in connection with an optional repayment in full of all of the Loans and the termination of all of the Commitments; (ii) such prepayment is made with the proceeds of any substantially contemporaneous (A) incurrence of any Permitted Term Loan Refinancing Indebtedness, (B) Qualified Unsecured Indebtedness Offering or (C) Qualified Equity Issuance; (iii) if such prepayment is made in whole or in part with the proceeds of any Revolving Borrowing, then after giving effect to such Revolving Borrowing, (A) the Aggregate Revolving Commitments exceeds the Total Revolving Credit Exposure by not less than $300,000,000 (and the conditions to borrowing set forth in Section 6.03 are satisfied at such time) and (B) the Borrower is in compliance on a pro forma basis with the financial covenants contained in Section 9.10 that are applicable at such time as of the last day of the most recently ended Testing Period for which financial statements are available after giving pro forma effect to such Revolving Borrowing; or (iv) if such prepayment is made with any source other than those described in the foregoing clauses (ii) and (iii), at the time of such prepayment, the Aggregate Revolving Commitments exceeds the Total Revolving Credit Exposure by not less than $300,000,000. Optional prepayments of the Term Loans made in accordance with clauses (ii), (iii) or (iv) of the proviso to the immediately preceding sentence may be either partial or full prepayments of the Term Loans.

 

(b)                                 Notice and Terms of Optional Prepayment.  The Borrower shall notify the Administrative Agent by telephone, facsimile or e-mail (and, in the case of telephonic notice, confirmed by hand delivery, facsimile or e-mail) of any prepayment hereunder not later than 12:00 p.m., Eastern time, on the date of prepayment.  Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid (which shall be (x) in the case of a prepayment of any ABR Borrowing or Swingline Borrowing, in an amount that is an integral multiple of $250,000 and not less than $250,000 or equal to the aggregate principal balance outstanding of such ABR Borrowing; (y) in the case of a prepayment of any LIBOR Borrowing, in an amount that is an integral multiple of $500,000 and not less than $1,000,000 or equal to the aggregate principal balance outstanding of such LIBOR Borrowing and (z) in the case of a prepayment of any EURIBOR Borrowing, in an amount that is an integral multiple of €500,000 and not less than €1,000,000 or equal to the aggregate principal balance outstanding of such EURIBOR Borrowing) and specify whether Revolving Loans or Term Loans are being repaid; provided that a notice of prepayment delivered by the Borrower may state that such notice is conditioned upon the occurrence of one or more events specified therein, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified prepayment date) if such condition is not satisfied, subject to the payment of any compensation required by Section 5.02.  Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the applicable Lenders of the contents thereof.  Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.  Prepayments shall be accompanied by accrued interest to the extent required by Section 3.02.

 

(c)                                  Mandatory Prepayments.

 

(i)                                     Until no Term Loans remain outstanding, and in the event and on each occasion that any Net Proceeds are received by or on behalf of Parent or any other Group Member in respect of any Prepayment Event, the Borrower shall, (x) within five Business Days after such Net Proceeds are received by Parent or any other Group Member that is a Domestic Subsidiary or (y) within 90 days after such Net Proceeds are received by any Group Member that is a Foreign Subsidiary, prepay the Term Loans as set forth in paragraph (v) below in an aggregate amount equal to (A) in the case of a Prepayment Event described in clause (c) of the definition of the term “Prepayment Event”, 50.0% of such Net Proceeds, (B) in the case of a Prepayment Event of the type described in clause (d)(ii) of the definition of the term “Prepayment Event”, 100% of such Net Proceeds attributable to the Excess Indebtedness Amount, and (C) in the case of all other Prepayment Events, 100% of such Net Proceeds; provided that, in the case of any event described in clause (a) or (b) of the definition of the term “Prepayment Event”, if the Borrower shall deliver to the Administrative Agent a certificate of a Financial Officer to the effect that Parent or any of its Restricted Subsidiaries intend to apply the Net Proceeds from such event (or a portion thereof specified in such certificate), within 180 days after receipt of such Net Proceeds, to acquire (or replace or rebuild) real property, equipment or other tangible assets (excluding inventory) to be used in the business of Parent or any of its Restricted Subsidiaries, then, so long as no Default has occurred and is continuing, no prepayment shall be required pursuant to this paragraph in respect of the Net Proceeds specified in such certificate; provided further that (1) to the extent any such Net Proceeds therefrom have not been so applied by the end of such 180-day period, a prepayment shall be required on the first Business Day after the expiration of such period in an amount equal to such Net Proceeds that have not been so applied and (2) to the extent the aggregate Net Proceeds resulting from Prepayment Events of the type described in clause (a) of the definition thereof received by the Group Members that have not been applied either to prepay the Term Loans or to acquire (or replace or rebuild) real property, equipment or other tangible assets (excluding inventory) in accordance with this Section 3.04(c)(i) exceeds $35,000,000 at any given time, the Borrower shall, (x) within five Business Days if such excess Net Proceeds are held by Parent or any other Group Member that is a Domestic Subsidiary or (y) within 90 days if such excess Net Proceeds are held by any Group Member that is a Foreign Subsidiary, prepay the Term Loans as set forth in paragraph (v) below in an aggregate amount equal to such excess.

 

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(ii)                                  Until no Term Loans remain outstanding, the Borrower shall prepay the Term Loans as set forth in paragraph (v) below on the date that is ten days after the earlier of (A) the date on which Parent’s annual audited financial statements for the immediately preceding Fiscal Year are delivered pursuant to Section 8.01(a) and (B) the date on which such annual audited financial statements were required to be delivered pursuant to Section 8.01(a), in an amount equal to (1) if the Total Leverage Ratio as of the last day of the Testing Period ending on the last day of such Fiscal Year is greater than 3.00 to 1.00, 50% of Excess Cash Flow for the immediately preceding Fiscal Year or (2) if the Total Leverage Ratio as of the last day of the Testing Period ending on the last day of such Fiscal Year is greater than 2.50 to 1.00 but less than or equal to 3.00 to 1.00, 25% of Excess Cash Flow for the immediately preceding Fiscal Year, in each case as set forth in paragraph (v) below.  Each Excess Cash Flow prepayment shall be accompanied by a certificate signed by a Financial Officer certifying the manner in which Excess Cash Flow and the resulting prepayment were calculated, which certificate shall be in form and substance satisfactory to Administrative Agent.  For the avoidance of doubt, if the Total Leverage Ratio as of the last day of the Testing Period ending on the last day of any Fiscal Year is less than or equal to 2.50 to 1.00, the Borrower shall have no obligation to prepay any outstanding Term Loans pursuant to this Section 3.04(c)(ii).

 

(iii)                               Until no Term Loans remain outstanding, the Borrower shall repay the Term Loans as set forth in paragraph (v) below on each anniversary of the Initial Availability Date in an amount equal to the lesser of (A) $12,250,000 and (B) the outstanding principal balance of the Term Loans.

 

(iv)                              If, after giving effect to any termination or reduction of the Aggregate Revolving Commitments pursuant to Section 2.06(b) or if for any other reason, the Total Revolving Credit Exposure exceeds the Aggregate Revolving Commitments, then the Borrower shall (A) prepay Borrowings on such date in an aggregate principal amount equal to such excess, and (B) if any excess remains after prepaying all of the Borrowings as a result of an LC Exposure, pay to the Administrative Agent on behalf of the Revolving Lenders an amount equal to such excess to be held as cash collateral as provided in Section 2.07(e).

 

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(v)                                 (A) Each prepayment of Term Loans pursuant to paragraphs (i) through (iii) above shall be applied, first, ratably to any ABR Borrowings then outstanding, and, second, to any LIBOR Borrowings then outstanding, and if more than one LIBOR Borrowing is then outstanding, to each such LIBOR Borrowing in such order as the Borrower shall elect and (B) each prepayment of Revolving Loans pursuant to paragraph (iv) above shall be applied, first, to any Swingline Loans then outstanding, second, ratably to any ABR Borrowings then outstanding, and, third, to any LIBOR Borrowings and EURIBOR Borrowings then outstanding, and if more than one LIBOR Borrowing or EURIBOR Borrowing is then outstanding, to each such LIBOR Borrowing or EURIBOR Borrowing in such order as the Borrower shall elect.

 

(vi)                              Prepayments pursuant to this Section 3.04(c) shall be accompanied by accrued interest to the extent required by Section 3.02 and any applicable prepayment premium required by Section 3.04(d).

 

(d)                                 Prepayment Premium.  Prepayments permitted or required under this Section 3.04 shall be without premium or penalty, except (a) as required under Section 5.02 and (b) that, in connection with any prepayment of any Term Loan prior to the first anniversary of the Initial Availability Date that is made contemporaneously with any Group Member’s borrowing or incurrence of a Replacement Term Loan, a prepayment premium equal to one percent (1.0%) of the aggregate principal amount of Term Loans being repaid shall be due and payable by the Borrower on the date of such repayment.

 

Section 3.05                             Fees.

 

(a)                                 Revolving Commitment Fees.  The Borrower agrees to pay to the Administrative Agent for the account of each Revolving Lender a commitment fee (the “Revolving Commitment Fee”), which shall accrue at the applicable rate set forth under the heading “Revolving Commitment Fees” in the table contained in the definition of “Applicable Margin” on the average daily amount (before deducting any outstanding Swingline Loans to the extent participations therein by the Revolving Lenders (other than the Swingline Lender) have not been funded by such Revolving Lenders) of the unused amount of the Revolving Commitment of such Revolving Lender during the Availability Period.  Accrued Revolving Commitment Fees shall be payable in arrears on the last day of March, June, September and December of each year and on the Revolving Maturity Date, commencing on the first such date to occur after the date hereof.  All Revolving Commitment Fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

(b)                                 Letter of Credit Fees.  The Borrower agrees to pay (i) to the Administrative Agent for the account of each Revolving Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Margin used to determine the interest rate applicable to Borrowings comprised of LIBOR Loans on the average daily amount of such Revolving Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Initial Availability Date to but excluding the later of the date on which such Revolving Lender’s Revolving Commitment terminates and the date on which such Revolving Lender ceases to have any LC Exposure, (ii) to each Issuing Bank a fronting fee, which shall accrue at the rate of 0.200% per annum on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) attributable to Letters of Credit issued by such Issuing Bank during the period from and including the Initial Availability Date to but excluding the later of the date of termination of the Aggregate Revolving Commitments and the date on which there ceases to be any LC Exposure attributable to Letters of Credit issued by such Issuing Bank and (iii) to each Issuing Bank, for its own account, its standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder.

 

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Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year shall be payable on the third Business Day following such last day, commencing on the first such date to occur after the Initial Availability Date; provided that all such fees shall be payable on the Revolving Maturity Date and any such fees accruing after the Revolving Maturity Date shall be payable on demand.  Any other fees payable to any Issuing Bank pursuant to this Section 3.05(a) shall be payable within ten (10) days after demand.  All participation fees and fronting fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case such fees shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

(c)                                  Administrative Agent Fees.  The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent, including the fees set forth in the Administrative Agent Fee Letter.

 

(d)                                 Ticking Fees.  The Borrower agrees to pay to the Administrative Agent for the account of each Lender a ticking fee (the “Ticking Fee”), which shall accrue at a rate of 30.0 basis points (0.30%) on the daily amount of the Revolving Commitment and Term Loan Commitment of such Lender during the period from and including December 1, 2015 to but excluding the earlier of (i) the Initial Availability Date and (ii) the date on which the Commitments terminate.  Accrued Ticking Fees shall be payable in arrears on the last day of March, June, September and December of each year and on the earlier of (i) the Initial Availability Date and (ii) the date on which the Commitments terminate, commencing on the first such date to occur after December 1, 2015.  All Ticking Fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  For the avoidance of doubt, if the Initial Availability Date occurs prior to December 1, 2015, no Ticking Fees shall be payable by the Borrower.

 

ARTICLE IV
 Payments; Pro Rata Treatment; Sharing of Set-offs

 

Section 4.01                             Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

 

(a)                                 Payments by the Borrower.  The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 5.01, Section 5.02, Section 5.03 or otherwise) prior to 12:00 p.m., Eastern time, on the date when due, in immediately available funds, without defense, deduction, recoupment, set-off or counterclaim.  Fees, once paid, shall be fully earned and shall not be refundable under any circumstances.  Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon.  All such payments shall be made to the Administrative Agent as specified in Section 12.01, except payments to be made directly to any Issuing Bank as expressly provided herein and except that payments pursuant to Section 5.01, Section 5.02, Section 5.03 and Section 12.03 shall be made directly to the Persons entitled thereto.  The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof.  If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.  All payments hereunder in respect of any Loan shall be made in the currency of such Loan; all other payments (including reimbursement of disbursements made under any Offshore Currency Letters of Credit) hereunder shall be made in US Dollars.

 

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(b)                                 Application of Insufficient Payments.  If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties.

 

(c)                                  Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements or Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Term Loans, Revolving Loans and/or participations in LC Disbursements or Swingline Loans of other Lenders, as applicable, to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Term Loans, Revolving Loans and/or participations in LC Disbursements or Swingline Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest and (ii) the provisions of this Section 4.01(c) shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements or Swingline Loans to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this Section 4.01(c) shall apply).  The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

 

Section 4.02                             Presumption of Payment by the Borrower.  Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or any Issuing Bank that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the applicable Lenders or such Issuing Bank, as the case may be, the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Lenders or such Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

 

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Section 4.03                             Certain Deductions by the Administrative Agent; Defaulting Lenders.

 

(a)                                 Certain Deductions by the Administrative Agent.  If any Lender shall fail to make any payment required to be made by it hereunder, including pursuant to Section 2.05(b), Section 2.07(c), Section 2.07(d), Section 4.02 or Section 12.03(b), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid.

 

(b)                                 Payments to Defaulting Lenders.  If a Defaulting Lender (or a Lender who would be a Defaulting Lender but for the expiration of the relevant grace period) as a result of the exercise of a set off shall have received a payment in respect of such Lender’s Revolving Credit Exposure and fails to purchase participations in the Loans and LC Disbursements pursuant to Section 4.01(c), which results in such Lender’s Revolving Credit Exposure being less than its Applicable Revolving Percentage of the Total Revolving Credit Exposure, then no payment will be made to such Defaulting Lender until all amounts due and owing to the Revolving Lenders have been equalized in accordance with each Revolving Lender’s Applicable Revolving Percentage of the Total Revolving Credit Exposure.  Further, if at any time prior to the acceleration or maturity of the Loans, the Administrative Agent shall receive any payment in respect of principal of a Loan or a reimbursement of an LC Disbursement while one or more Defaulting Lenders shall be party to this Agreement, the Administrative Agent shall apply such payment first to the Borrowing(s) for which such Defaulting Lender(s) shall have failed to fund its pro rata share until such time as such Borrowing(s) are paid in full or each Lender (including each Defaulting Lender) is owed its Applicable Term Loan Percentage of the Term Loans and Applicable Revolving Percentage of the Revolving Loans then outstanding, as applicable.  After acceleration or maturity of the Loans, subject to the first sentence of this Section 4.03(b), all principal will be paid ratably as provided in Section 10.02(c).

 

(c)                                  Defaulting Lenders.  Notwithstanding any provision of any Loan Document to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:

 

(i)                                     Revolving Commitment Fees otherwise payable pursuant to Section 3.05(a) shall cease to accrue on the unfunded portion of the Revolving Commitment of such Defaulting Lender.

 

(ii)                                  The Revolving Commitment and the Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whether all Lenders, the Majority Lenders, the Majority Revolving Lenders or each adversely affected Lender have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section 12.02), and no consent of such Defaulting Lender shall be required to take any action hereunder that requires the consent of all Lenders, the Majority Lenders, the Majority Revolving Lenders or each adversely affected Lender (including any consent to any amendment or waiver pursuant to Section 12.02), provided that any waiver, amendment or modification (A) that would increase the Commitment of such Defaulting Lender, (B) that would reduce the principal of any Loan owed to such Defaulting Lender or extend the final maturity thereof or (C) requiring the consent of all Lenders or each adversely affected Lender which affects such Defaulting Lender differently than all other Lenders or all other adversely affected Lenders, as the case may be, shall require the consent of such Defaulting Lender; provided further, that any amendment to the foregoing proviso shall require the consent of all Lenders, including any Defaulting Lenders.

 

(iii)                               If any LC Exposure or Swingline Exposure exists at the time a Revolving Lender becomes a Defaulting Lender, then:

 

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(A)                               all or any part of such LC Exposure or Swingline Exposure shall be reallocated (effective as of the date such Revolving Lender becomes a Defaulting Lender) among the Non-Defaulting Lenders in accordance with their respective Applicable Revolving Percentages (for the purposes of such reallocation, the Defaulting Lender’s Revolving Commitment shall be disregarded in determining the Non-Defaulting Lenders’ Applicable Revolving Percentages), but only to the extent that (x) the sum of all Non-Defaulting Lenders’ Revolving Credit Exposures plus such Defaulting Lender’s LC Exposure and Swingline Exposure does not exceed the total of all Non-Defaulting Lenders’ Revolving Commitments, (y) the sum of each Non-Defaulting Lender’s Revolving Credit Exposure plus its reallocated share of such Defaulting Lender’s LC Exposure and Swingline Exposure does not exceed such Non-Defaulting Lender’s Revolving Commitment and (z) no Event of Default has occurred and is continuing at such time;

 

(B)                               if the reallocation described in clause (A) above cannot, or can only partially, be effected, then the Borrower shall, within three (3) Business Days following written notice from the Administrative Agent, cash collateralize such Defaulting Lender’s LC Exposure and Swingline Exposure (after giving effect to any partial reallocation pursuant to clause (A) above) in accordance with the procedures set forth in Section 2.07(e) for so long as such LC Exposure or Swingline Exposure is outstanding and the relevant Defaulting Lender remains a Defaulting Lender;

 

(C)                               if the Borrower cash collateralizes any portion of such Defaulting Lender’s LC Exposure pursuant to this Section 4.03(c)(iii), then the Borrower shall not be required to pay any participation fees to such Defaulting Lender pursuant to Section 3.05(b) with respect to such Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;

 

(D)                               if all or any portion of the LC Exposure of such Defaulting Lender is reallocated pursuant to this Section 4.03(c)(iii), then the fees payable to the Revolving Lenders pursuant to Sections 3.05(a) and 3.05(b) shall be adjusted in accordance with such Non-Defaulting Lenders’ Applicable Revolving Percentages; and

 

(E)                                if any Defaulting Lender’s LC Exposure is neither cash collateralized nor reallocated pursuant to this Section 4.03(c)(iii), then, without prejudice to any rights or remedies of any Issuing Bank or any Revolving Lender hereunder, all participation fees payable under Section 3.05(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to the applicable Issuing Banks, ratably based on the portion of such LC Exposure attributable to Letters of Credit issued by each such Issuing Bank, until such LC Exposure is reallocated and/or cash collateralized pursuant to clause (A) or (B) above.

 

(d)                                 So long as any Revolving Lender is a Defaulting Lender, the Swingline Lender shall not be required to fund any Swingline Loan and no Issuing Bank shall be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be one hundred percent (100%) covered by the Revolving Commitments of the Non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with Section 4.03(c), and participating interests in any such newly issued or increased Letter of Credit or newly made Swingline Loan shall be allocated among Non-Defaulting Lenders in a manner consistent with Section 4.03(c)(iii) (and Defaulting Lenders shall not participate therein).

 

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(e)                                  In the event that the Administrative Agent, the Borrower, the Issuing Banks and the Swingline Lender agree that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the LC Exposures and Swingline Exposures of the Revolving Lenders shall be readjusted to reflect the inclusion of such Revolving Lender’s Revolving Commitment, and on such date, if necessary as a result of a Revolving Loan funding pursuant to Section 2.07(d), such Revolving Lender shall purchase at par such of the Revolving Loans of the other Revolving Lenders as the Administrative Agent shall determine may be necessary in order for such Revolving Lender to hold such Revolving Loans in accordance with its Applicable Revolving Percentage; provided that, except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Non-Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Revolving Lender’s having been a Defaulting Lender.

 

ARTICLE V
 Increased Costs; Break Funding Payments; Taxes; Illegality

 

Section 5.01                             Increased Costs.

 

(a)                                 Changes in Law.  If any Change in Law shall:

 

(i)                                     impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or any Issuing Bank;

 

(ii)                                  subject any Recipient to any Taxes (other than (A) Indemnified Taxes,  (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital contributions thereto; or

 

(iii)                               impose on any Lender or any Issuing Bank the London or European interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or LIBOR Loans or EURIBOR Loans, as the case may be, made by such Lender or any Letter of Credit or participation therein;

 

and the result of any of the foregoing shall be to increase the cost to such Lender of making, converting to, continuing or maintaining any LIBOR Loan or EURIBOR Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender or such Issuing Bank of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or such Issuing Bank hereunder (whether of principal, interest or otherwise) then, upon the request of such Lender or such Issuing Bank and subject to paragraphs (c) and (d) of this Section, the Borrower will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered.

 

(b)                                 Capital and Liquidity Requirements.  If any Lender or any Issuing Bank determines in good faith that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s or such Issuing Bank’s capital or on the capital of such Lender’s or such Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below that which such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or such Issuing Bank’s policies and the policies of such Lender’s or such Issuing Bank’s holding company with respect to capital adequacy and liquidity), then from time to time, subject to paragraphs (c) and (d) of this Section, the Borrower will pay to such Lender or such Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction suffered.

 

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(c)                                  Certificates.  A certificate of a Lender or any Issuing Bank setting forth in reasonable detail the amount or amounts necessary to compensate such Lender or such Issuing Bank or its holding company, as the case may be, as specified in Section 5.01(a) or (b), shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender or such Issuing Bank, as the case may be, the amount shown as due on any such certificate within thirty (30) days after receipt thereof.

 

(d)                                 Effect of Failure or Delay in Requesting Compensation.  Failure or delay on the part of any Lender or any Issuing Bank to demand compensation pursuant to this Section 5.01 shall not constitute a waiver of such Lender’s or such Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate such Lender or such Issuing Bank pursuant to this Section 5.01 for any increased costs or reductions incurred more than 270 days prior to the date that such Lender or such Issuing Bank, as the case may be, delivers written notice to the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or such Issuing Bank’s intention to claim compensation therefor; provided further that if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.

 

Section 5.02                             Break Funding Payments.  In the event of (a) the payment of any principal of any LIBOR Loan or EURIBOR Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any LIBOR Loan into an ABR Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any LIBOR Loan or EURIBOR Loan on the date specified in any notice delivered pursuant hereto, or (d) the assignment of any LIBOR Loan or EURIBOR Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 5.04(b), then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  Such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate or EURIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market.  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section 5.02 shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.

 

Section 5.03                             Taxes.

 

(a)                                 Defined Terms.  For purposes of this Section 5.03, the term “Lender” includes any Issuing Bank and the term “applicable law” includes FATCA.

 

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(b)                                 Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes except as required by applicable law.  If any applicable law (as determined in the good faith and discretion of an applicable Withholding Agent) requires the deduction or withholding of any Taxes from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, to the extent such Taxes are Indemnified Taxes, then the sum payable by the applicable Loan Party shall be increased as necessary so that after deduction or withholding for such Indemnified Taxes has been made (including such deductions and withholdings applicable to additional sums payable under this Section), the applicable Recipient receives an amount equal to the sum it would have received had no such deductions or withholdings for Indemnified Taxes been made.

 

(c)                                  Payment of Other Taxes by the Borrower.  The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

 

(d)                                 Indemnification by the Loan Parties.  The Loan Parties shall jointly and severally indemnify each Recipient, within thirty (30) days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

(e)                                  Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within twenty (20) days after demand therefor, for (i) any Indemnified Taxes or Other Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 12.04(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent or any Loan Party to the Lender from any other source against any amount due to the Administrative Agent or any Loan Party under this Section 5.03(e).

 

(f)                                   Evidence of Payments.  As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section 5.03, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

 

(g)                                  Status of Lenders.

 

(i)                                     Any Lender that is entitled to an exemption from, or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without or at a reduced rate of withholding.

 

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In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 5.03(g)(ii)(A), (ii)(B), and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

(ii)                                  Without limiting the generality of the foregoing,

 

(A)                               any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), two (2) duly completed and executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

 

(B)                               any Foreign Lender shall to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

 

(1)                                 in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, two (2) duly completed and executed copies of IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, two (2) duly completed and executed copies of IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

 

(2)                                 two (2) duly completed and executed copies of IRS Form W-8ECI;

 

(3)                                 in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit I-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) two (2) duly completed and executed copies of IRS Form W-8BEN-E; or

 

(4)                                 to the extent a Foreign Lender is not the beneficial owner, two (2) duly completed and executed copies of IRS Form W-8IMY, accompanied by a Form W-8ECI, W-8BEN, W-8BEN-E, U.S. Tax Compliance Certificate substantially in the form of Exhibit I-2 or Exhibit I-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit I-4 on behalf of each such direct and indirect partner;

 

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(C)                               any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of originals as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), duly completed and executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

 

(D)                               if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent, at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from any such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement regardless of whether they would otherwise be taken into account under the definition thereof in Section 1.02.

 

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

 

(h)                                 Treatment of Certain Refunds.  If any Recipient determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 5.03 (including by the payment of additional amounts pursuant to this Section 5.03), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (h), in no event will the indemnified party be required to pay any amount to the indemnifying party pursuant to this paragraph (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes which it deems confidential) to the indemnifying party or any other Person.

 

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(i)                                     Survival.  Each party’s obligations under this Section 5.03 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

 

Section 5.04                             Mitigation Obligations; Replacement of Lenders.

 

(a)                                 Designation of Different Lending Office.  If any Lender requests compensation under Section 5.01, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 5.03, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 5.01 or Section 5.03, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

(b)                                 Replacement of Lenders.  If (i) any Lender requests compensation under Section 5.01, (ii) the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 5.03, (iii) in connection with any consent to or approval of any proposed amendment, waiver, consent or release with respect to any Loan Document that requires the consent of each Lender or the consent of each Lender affected thereby, the consent of the Majority Lenders shall have been obtained but any Lender has not so consented to or approved such proposed amendment, waiver, consent or release or (iv) any Lender becomes a Defaulting Lender or a Notifying Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 12.04(c)), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (A) the Borrower shall have received the prior written consent of the Administrative Agent, which consent shall not unreasonably be withheld, delayed or conditioned, (B) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (C) in the case of any such assignment resulting from a claim for compensation under Section 5.01 or payments required to be made pursuant to Section 5.03, such assignment will result in a reduction in such compensation or payments.  A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.  Notwithstanding the foregoing, any Lender being replaced pursuant to clause (iii) above shall not be required to make any such assignment and delegation if such Lender is a Secured Hedging Provider with any outstanding Swap Agreements with any Loan Party (to the extent obligations under such Hedging Agreements constitute Secured Obligations), unless on or prior thereto, all such Hedging Agreements have been terminated or novated to another Person and such Lender (or its Affiliate) shall have received payment of all amounts, if any, payable to it in connection with such termination or novation.

 

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Section 5.05                             Illegality.  Notwithstanding any other provision of this Agreement, in the event that it becomes unlawful for any Lender or its Applicable Lending Office to honor its obligation to make or maintain LIBOR Loans or EURIBOR Loans either generally or having a particular Interest Period hereunder, then (a) such Lender shall promptly notify the Borrower and the Administrative Agent thereof and such Lender’s obligation to make such LIBOR Loans or EURIBOR Loans, as the case may be (the “Affected Loans”), shall be suspended until such time as such Lender may again make and maintain such LIBOR Loans or EURIBOR Loans and (b)(i) all LIBOR Loans which are Affected Loans that would otherwise be made by such Lender shall be made instead as ABR Loans (and, if such Lender so requests by notice to the Borrower and the Administrative Agent, all LIBOR Loans which are Affected Loans of such Lender then outstanding shall be automatically converted into ABR Loans on the date specified by such Lender in such notice) and, to the extent that Affected Loans are so made as (or converted into) ABR Loans, all payments of principal which would otherwise be applied to such Lender’s Affected Loans shall be applied instead to its ABR Loans and (ii) all EURIBOR Loans which are Affected Loans that would otherwise be made by such Lender shall not be required to be made or maintained (and no Lender shall be obligated to make a Loan on account thereof) and all payments of principal and interest with respect thereto shall be repaid on the last day of the then-current Interest Period applicable thereto.

 

ARTICLE VI
 Conditions Precedent

 

Section 6.01                             Conditions Precedent to the Effective Date.  The Effective Date shall occur on the date on which each of the following conditions are satisfied (or waived in accordance with Section 12.02):

 

(a)                                 the receipt by the Administrative Agent of the following documents, each of which shall be reasonably satisfactory to the Administrative Agent in form and substance:

 

(i)                                     counterparts of this Agreement signed on behalf of each party hereto (in such number as may be reasonably requested by the Administrative Agent);

 

(ii)                                  a certificate of the Secretary or an Assistant Secretary (or its equivalent) of each of the Borrower and Parent, setting forth (A) resolutions of its board of directors (or equivalent governing body) with respect to the authorization of such Loan Party to execute and deliver the Loan Documents to which it is a party and to enter into the Transactions contemplated in those documents, (B) the officers (or the equivalent thereof) of such Loan Party (I) who will be signing the Loan Documents to which such Loan Party is a party and (II) who will, until replaced by another officer or officers (or the equivalent thereof) duly authorized for that purpose, act as a representative of such Loan Party for the purposes of signing documents and giving notices and other communications in connection with this Agreement and the Transactions contemplated hereby, (C) specimen signatures of the authorized officers (or the equivalent thereof) referred to in clause (B)(I), and (D) the Organization Documents of such Loan Party, certified as being true and complete.  The Administrative Agent and the Lenders may conclusively rely on such certificate until the Administrative Agent receives notice in writing from such party to the contrary;

 

(iii)                               certificates with respect to the existence, qualification and good standing of the Borrower and Parent issued by the appropriate state agencies in the jurisdiction of organization of such Loan Party;

 

(iv)                              a pro forma consolidated balance sheet and related pro forma consolidated statement of income of Parent and its Consolidated Subsidiaries (A) for the Fiscal Year ended December 31, 2014 and (B) for each subsequent Fiscal Quarter ending at least forty-five (45) days before the Effective Date, in each case prepared after giving pro forma effect to the Separation Transaction as if the Separation Transaction had occurred on the last day of such period (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of income) and based on assumptions with respect to indebtedness and interest expense reasonably acceptable to the Administrative Agent; and

 

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(v)                                 projections of consolidated balance sheets, income statements and cash flow statements of Parent and its Consolidated Subsidiaries, which will be quarterly for the Fiscal Years ending December 31, 2015 and December 31, 2016, respectively, and annually thereafter through the Revolving Maturity Date;

 

(b)                                 each Lender shall have received at least five (5) Business Days prior to the Effective Date all documentation and other information required by regulatory authorities or as may be required by the internal policies of the Administrative Agent or such Lender with respect to the Loan Parties under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act;

 

(c)                                  each Lender shall have received copies, certified to by a Responsible Officer, of substantially final forms of the Separation Documents, each of which shall be reasonably satisfactory to the Administrative Agent in form and substance; and

 

(d)                                 the Administrative Agent, the Joint Lead Arrangers and the Lenders shall have received all fees due and payable to them on or prior to the Effective Date, including accrued ticking fees pursuant to Section 3.05(d) of the Existing Credit Agreement for the period from September 23, 2015 through and including the Effective Date.

 

Without limiting the generality of the provisions of Section 11.04, for purposes of determining compliance with the conditions specified in this Section 6.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required under this Section 6.01 to be consented to or approved by or acceptable or reasonably satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the date hereof specifying its objection thereto.  The Administrative Agent shall notify the Borrower and the Lenders of the occurrence of the Effective Date, and such notice shall be conclusive and binding.

 

Section 6.02                             Conditions Precedent to the Initial Availability Date.  The obligations of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions are satisfied (or waived in accordance with Section 12.02):

 

(a)                                 the receipt by the Administrative Agent of the following documents, each of which shall be reasonably satisfactory to the Administrative Agent in form and substance:

 

(i)                                     Notes duly completed and executed for each Lender that has requested a Revolving Note and/or Term Loan Note at least one Business Day prior to the Initial Availability Date;

 

(ii)                                  the Security Instruments described on Exhibit F, duly completed and executed in sufficient number of counterparts for recording, if applicable;

 

(iii)                               each document (including any UCC financing statement) required by the Security Instruments or reasonably requested by the Administrative Agent to be filed, registered or recorded in order to perfect the security interests of the Administrative Agent, on behalf of the Secured Parties, in the Collateral;

 

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(iv)                              all original stock certificates or other certificates evidencing any certificated Equity Interests pledged pursuant to the Security Instruments, together with an undated stock power for each such certificate duly executed in blank by the registered owner thereof;

 

(v)                                 (A) a summary of insurance coverage of Parent and its Restricted Subsidiaries evidencing that they are carrying insurance in accordance with Section 7.18, (B) certificates with respect to the insurance carried by Parent and its Restricted Subsidiaries evidencing that the Administrative Agent has been named as an additional insured pursuant to Section 8.02(b) and (C) a Federal Emergency Management Agency Standard Flood Hazard Determination with respect to any real property Collateral subject to a Mortgage on which a Building or Manufactured (Mobile) Home is located;

 

(vi)                              results of UCC lien searches made against each Loan Party and each Pledgor in the jurisdiction of organization of such Loan Party or such Pledgor, as applicable, reflecting no prior Liens encumbering the Properties of such Loan Party or such Pledgor, as applicable, other than those being released on or prior to the Initial Availability Date and Permitted Liens;

 

(vii)                           a certificate of a Responsible Officer of the Borrower, certifying that (A) as of the Initial Availability Date, no Default or Event of Default has occurred and is continuing, (B) as of the Initial Availability Date, the representations and warranties contained herein are accurate in all material respects (except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects), (C) after giving effect to the Transactions and the Separation Transaction, the Borrower is in compliance on a pro forma basis with the financial covenants contained in Section 9.10 that are applicable at such time (calculated in a manner reasonably acceptable to the Administrative Agent as if the Transactions and the Separation Transaction were consummated on the last day of the most recently ended Testing Period for which financial statements are available (in the case of balance sheet matters) or the first day of such Testing Period (in the case of income statement matters)) and (D) attached thereto are full and complete copies of the executed Separation Documents (together with all of the schedules and exhibits thereto), which shall not have been modified from the Effective Date Versions in any manner that is adverse in any material respect to the Lenders                             (it being understood that, without limitation, any modification of the Separation Documents from what is set forth in the Effective Date Versions that would result in (1) assets with a material value that pursuant to the terms of the Effective Date Versions were to be owned by Parent and its Subsidiaries upon consummation of the Separation Transaction instead being allocated to EXH and its Subsidiaries upon consummation of the Separation Transaction or (2) liabilities in a material amount that pursuant to the terms of the Effective Date Versions were to be allocated to and assumed solely by EXH and its Subsidiaries upon consummation of the Separation Transaction instead being allocated to and assumed by Parent and its Subsidiaries upon consummation of the Separation Transaction, shall be deemed to be materially adverse to the Lenders, unless approved by the Majority Lenders);

 

(viii)                        evidence that (A) EXH’s board of directors has authorized the consummation of the Separation Transaction in accordance with the Separation Documents, at which time Parent shall become a publicly-traded company whose common stock is traded on a recognized national stock exchange, and (B) the declaration of the date on which the common stock of Parent will be distributed to the stockholders of EXH (which shall be either the Initial Availability Date or the Business Day immediately following the Initial Availability Date) has been publicly announced;

 

(ix)                              a certificate of a Responsible Officer of EXH, certifying that (i) no further actions are required to be taken to consummate the Separation Transaction other than the passage of time (not to exceed one (1) Business Day from the date of such certificate) and (ii) there is no pending or, to the knowledge of such Responsible Officer, threatened litigation which could reasonably be expected to impede the consummation of the Separation Transaction within one (1) Business Day from the date of such certificate;

 

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(x)                                 a Borrowing Request in the form of Exhibit B with respect to any Borrowing to be made on the Initial Availability Date, duly completed and executed by the Borrower;

 

(xi)                              a favorable opinion of Sidley Austin LLP, counsel to the Loan Parties and the Pledgors;

 

(xii)                           a certificate of the Secretary or an Assistant Secretary (or its equivalent) of each Loan Party (other than Parent and the Borrower) and each Pledgor, setting forth (A) resolutions of its board of directors (or equivalent governing body) with respect to the authorization of such Loan Party or such Pledgor, as applicable, to execute and deliver the Loan Documents to which it is a party and to enter into the Transactions contemplated in those documents, (B) the officers (or the equivalent thereof) of such Loan Party or such Pledgor, as applicable, (I) who will be signing the Loan Documents to which such Loan Party or such Pledgor, as applicable, is a party and (II) who will, until replaced by another officer or officers (or the equivalent thereof) duly authorized for that purpose, act as a representative of such Loan Party or such Pledgor, as applicable, for the purposes of signing documents and giving notices and other communications in connection with this Agreement and the Transactions contemplated hereby, (C) specimen signatures of the authorized officers (or the equivalent thereof) referred to in clause (B)(I), and (D) the Organization Documents of such Loan Party or such Pledgor, as applicable, certified as being true and complete.  The Administrative Agent and the Lenders may conclusively rely on such certificate until the Administrative Agent receives notice in writing from such party to the contrary; and

 

(xiii)                        certificates with respect to the existence, qualification and good standing of the Borrower, each other Loan Party and each Pledgor issued by the appropriate state agencies in (A) the jurisdiction of organization of such Loan Party or such Pledgor, as applicable, and (B) each other jurisdiction in which such Loan Party owns a material manufacturing facility as of the Initial Availability Date.

 

(b)                                 After giving effect to any Revolving Borrowing made on the Initial Availability Date, the Aggregate Revolving Commitments shall exceed the Total Revolving Credit Exposure by not less than $200,000,000.

 

(c)                                  The Administrative Agent shall have received evidence reasonably satisfactory to it that the principal of and interest on all loans and other obligations accrued or owing under the EXH Credit Agreement (whether or not then due) shall have been paid in full, all commitments thereunder shall have been terminated and all liens securing such obligations shall have been released (which payment, termination and release may be contemporaneous with the satisfaction of the conditions under this Section 6.02 and the application of proceeds of any Borrowings to occur on the Initial Availability Date); provided that the foregoing shall not be construed to require the termination of any of the Existing Letters of Credit.

 

(d)                                 The Administrative Agent, the Joint Lead Arrangers and the Lenders shall have received all fees and other amounts due and payable to them on or prior to the Initial Availability Date, including, to the extent invoiced at least one Business Day prior to the Initial Availability Date, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder or under any other Loan Document (including the reasonable fees, disbursements and other charges of counsel to the Administrative Agent).

 

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The Administrative Agent shall notify the Borrower and the Lenders of the satisfaction of the foregoing conditions and the occurrence of the Initial Availability Date, and such notice shall be conclusive and binding.  Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 12.02) at or prior to 11:59 p.m., Eastern time, on January 4, 2016 (and, in the event such conditions are not so satisfied or waived, the Commitments and this Agreement shall terminate).

 

Section 6.03                             Each Credit Event.  The obligation of each Lender to make a Loan on the occasion of any Borrowing (including the initial funding), and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:

 

(a)                                 At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default or Event of Default shall have occurred and be continuing.

 

(b)                                 The representations and warranties of the Loan Parties set forth in this Agreement and in the other Loan Documents shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representation or warranty that is already qualified or modified by materiality in the text thereof) on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date.

 

(c)                                  The receipt by the Administrative Agent of a Borrowing Request in accordance with Section 2.03 or a Letter of Credit Request in accordance with Section 2.07, as applicable.

 

On the date of any Borrowing or any issuance, amendment, renewal or extension of any Letter of Credit, the Borrower shall be deemed to have made a representation and warranty that the conditions specified in Sections 6.03(a) and 6.03(b) have been satisfied.

 

ARTICLE VII
 Representations and Warranties

 

Each of Parent and the Borrower represents and warrants to the Administrative Agent, the Issuing Banks and the Lenders at each time on or after the Effective Date that such representations and warranties are required to be made pursuant to the terms of this Agreement as follows:

 

Section 7.01                             Legal Existence.  Each of Parent, the Borrower and each Significant Domestic Subsidiary:  (a) is a legal entity duly organized, legally existing and in good standing (if applicable) under the laws of the jurisdiction of its organization, except as permitted by Section 9.06 or Section 9.11; (b) has all requisite power, and has all material governmental licenses, authorizations, consents and approvals necessary to own its assets and carry on its business as now being or as proposed to be conducted; and (c) is qualified to do business in all jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure so to qualify would reasonably be expected to result in a Material Adverse Effect.

 

Section 7.02                             Financial Condition.  Since December 31, 2014, no change, event, development or circumstance has occurred or shall then exist that has had a Material Adverse Effect; provided that for purposes hereof, the consummation of the Separation Transaction shall be deemed not to have a Material Adverse Effect.

 

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Section 7.03                             Litigation.  Except as set forth in Schedule 7.03, as of the Effective Date and as of the Initial Availability Date, there is no litigation, legal, administrative or arbitral proceeding, investigation or other action of any nature pending against or, to the knowledge of Parent or the Borrower, threatened against or affecting Parent, the Borrower or any of their respective Subsidiaries as to which there is a reasonable likelihood of any judgment or liability against Parent, the Borrower or any of their respective Subsidiaries which would reasonably be expected to have a Material Adverse Effect.  No litigation is pending or, to the knowledge of Parent, threatened which enjoins, prohibits or restrains or, with respect to any threatened litigation, seeks to enjoin, prohibit or restrain, the making or repayment of any Loan, the issuance, amendment, renewal or extension of any Letter of Credit or the reimbursement of disbursements under any Letter of Credit or the consummation of the Transactions contemplated by this Agreement or any other Loan Document.

 

Section 7.04                             No Breach.  Each of the Transactions and, as of the Initial Availability Date, the Separation Transaction will not (a) contravene or result in a breach of the Organization Documents of any Group Member, (b) violate any Governmental Requirement applicable to or binding upon any Group Member or any of its Properties, except to the extent that any such violation, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect, (c) violate or result in a default under any indenture, agreement or instrument governing other Indebtedness aggregating $50,000,000 or more to which such Group Member is a party or by which it is bound or to which it or its Properties are subject, (d) violate or result in a default under any agreement or instrument to which such Group Member is a party or by which it is bound or to which it or its Properties are subject, except to the extent, in the case of this clause (d), that any such violation or default, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect, or (e) result in the creation or imposition of any Lien upon any of the Properties of any Group Member, other than the Liens created by the Loan Documents.

 

Section 7.05                             Authority.  Each Group Member has all necessary power and authority to execute, deliver and perform its obligations under the Loan Documents to which it is a party; and the execution, delivery and performance by each Group Member of the Loan Documents to which it is a party have been duly authorized by all necessary action on its part; and the Loan Documents to which each Group Member is a party constitute the legal, valid and binding obligations of such Group Member, enforceable against such Group Member in accordance with their terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).

 

Section 7.06                             Approvals.  No authorizations, approvals or consents of, and no filings or registrations with, any Governmental Authority are necessary for the execution, delivery or performance by any Group Member of the Loan Documents to which it is a party, for the borrowing of any Loan or the issuance, amendment, renewal or extension of any Letter of Credit hereunder, or for the validity or enforceability against any Group Member of any of the Loan Documents to which it is a party, except for (a) those that have been obtained or made and are in effect and (b) the recording and filing of financing statements and the Security Instruments as required by this Agreement.

 

Section 7.07                             Use of Loans and Letters of Credit.  The Borrower will use the proceeds of the Loans and Letters of Credit (a) for working capital, to reimburse drawings under Letters of Credit and for other general corporate purposes (including Capital Expenditures, acquisitions permitted hereunder, the funding of payments required under the Separation Documents, share repurchases, prepayment or refinancing of debt, dividends and payments in connection with the termination of Hedging Agreements); (b) to repay amounts owing under the Mirror Notes owing by the Borrower or any Restricted Subsidiary on the Initial Availability Date; and (c) to pay fees and expenses in connection with the Transactions and the Separation Transaction.

 

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The Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board) in violation of applicable law, including Regulation T, U or X of the Board, and no part of the proceeds of any Loan or Letter of Credit hereunder will be used for any purposes which violates the provisions of Regulation T, U or X of the Board.

 

Section 7.08                             ERISA.  Except as would not reasonably be expected to result in a Material Adverse Effect, each Loan Party and ERISA Affiliate is in compliance with applicable provisions of ERISA and the Code and the regulations and published interpretations thereunder with respect to each Plan.  No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect.  The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of FASB Accounting Standards Codification No. 715) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $100,000 the fair market value of the assets of such Plan, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of FASB Accounting Standard Codification 715) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than $100,000 the fair market value of the assets of all such underfunded Plans, except in each case as could not reasonably be expected to result in a Material Adverse Effect.  With respect to any Foreign Plan, the accrued benefit obligations (based on those assumptions used to fund such Foreign Plan) with respect to all current and former participants do not exceed the assets of such Foreign Plan, and each Foreign Plan is in compliance with all provisions of applicable law and all applicable regulations and published interpretations thereunder with respect to such Foreign Plan and with the terms of such Foreign Plan, except in each case as would not reasonably be expected to result in a Material Adverse Effect.

 

Section 7.09                             Taxes.  Except as set forth in Schedule 7.09, each of Parent, the Borrower and each Domestic Subsidiary has filed all United States Federal income tax returns and all other tax returns which, to the knowledge of Parent and the Borrower, are required to have been filed by them and have paid all Taxes due pursuant to such returns, except (i) for such Taxes as are being contested in good faith by appropriate proceedings and for which Parent, the Borrower or such Domestic Subsidiary has set aside on its books adequate reserves in accordance with GAAP or (ii) where failure to file such tax returns and pay such Taxes would not reasonably be expected to result in a Material Adverse Effect.  The charges, accruals and reserves on the books of Parent, the Borrower and its Subsidiaries in respect of Taxes and other governmental charges are, in the opinion of Parent and the Borrower, adequate.  No material Tax lien has been filed and, to the knowledge of Parent and the Borrower, no claim for the collection or assessment of Taxes is being asserted which, if determined adversely to Parent, the Borrower or any Domestic Subsidiary, would reasonably be expected to result in a Material Adverse Effect.

 

Section 7.10                             Title, Etc.

 

(a)                                 Except as set forth in Schedule 7.10, each Group Member has good title to, or valid leasehold interests in, its material Properties, (i) except in cases where the failure to have such title or leasehold interests would not reasonably be expected to result in a Material Adverse Effect and (ii) free and clear of all Liens, except Permitted Liens.

 

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(b)                                 Except for matters that would not reasonably be expected to have a Material Adverse Effect, (i) all leases and agreements necessary for the conduct of the business of each Group Member are valid and subsisting and in full force and effect and (ii) there exists no default or event or circumstance which with the giving of notice or the passage of time or both would give rise to a default under any such lease or agreement.

 

Section 7.11                             No Material Misstatements.  No written information, statement, exhibit, certificate, document or report (other than projections) furnished to the Administrative Agent and the Lenders (or any of them) by any Group Member in connection with the negotiation of this Agreement, including the Information Memorandum, or delivered hereunder (as modified or supplemented by other information so furnished), when taken as a whole with all other written information, statements, exhibits, certificates, documents and reports so furnished or delivered, contains any material misstatement of fact or omits to state a material fact necessary to make the statements contained therein not materially misleading in the light of the circumstances in which made.  The financial projections concerning Parent and its Restricted Subsidiaries that have been made available to the Administrative Agent and the Lenders (or any of them) by any Group Member pursuant hereto or any other Loan Document have been prepared in good faith based upon assumptions believed by Parent and the Borrower to be reasonable at the time made, it being understood that such projections are subject to significant uncertainties, many of which are beyond the control of Parent, the Borrower and their respective Subsidiaries, and actual results may vary materially from the projections.

 

Section 7.12                             Investment Company Act.  Neither Parent nor any of its Subsidiaries is an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940.

 

Section 7.13                             Subsidiaries.  As of the Effective Date, all Subsidiaries listed on Schedule 7.13 are either Restricted Subsidiaries or Unrestricted Subsidiaries as set forth therein.  Parent has no Excluded Subsidiaries except as set forth on Schedule 7.13.

 

Section 7.14                             Location of Offices.  The Borrower’s principal place of business and chief executive office are located at the addresses stated on its signature page to this Agreement (or as set forth in a notice delivered to the Administrative Agent in writing pursuant to Section 12.01).

 

Section 7.15                             Defaults.  No Group Member is in material default under, nor has any event or circumstance occurred which, but for the expiration of any applicable grace period or the giving of notice, or both, would constitute a material default under, any material agreement or instrument to which such Group Member is a party or by which such Group Member is bound, which default would reasonably be expected to result in a Material Adverse Effect.  No Default hereunder has occurred and is continuing.

 

Section 7.16                             Environmental Matters.  Except (a) as set forth in Schedule 7.16 or (b) as would not reasonably be expected to have a Material Adverse Effect:

 

(i)                                     All Properties and operations of Parent and its Subsidiaries are and have been during the applicable statute of limitations period in compliance with all applicable Environmental Laws and the Responsible Officers of Parent and the Borrower do not know of any facts that would prevent Parent or any Subsidiary from maintaining compliance with such requirements during the term of this Agreement;

 

(ii)                                  Neither Parent nor any of its Subsidiaries are subject to any pending or, to Parent’s or the Subsidiaries’ knowledge, threatened action, suit or proceeding by or before any court or Governmental Authority or any order or judgment that has not been completed, concerning compliance with Environmental Laws or alleging liability or remedial obligations under Environmental Laws and the Responsible Officers of Parent and the Borrower do not know of any facts that would make an action, suit, or proceeding or remedial obligation reasonably likely;

 

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(iii)                               All notices, permits, licenses or similar authorizations, if any, required by Environmental Laws to be obtained or filed by Parent or any of its Subsidiaries in connection with its operations or Properties (including past operations and Properties during the applicable statute of limitations) have been duly obtained or filed by Parent or its Subsidiaries and Parent and its Subsidiaries are in compliance with the terms and conditions of all such notices, permits and licenses (and have been in the past during the applicable statute of limitations);

 

(iv)                              To the best of Parent’s and the Borrower’s knowledge, all Hazardous Materials, if any, generated at any Property of Parent or any of its Subsidiaries have been transported, treated and disposed of in accordance with applicable Environmental Laws, and are not the subject of any pending or, to Parent’s or the Borrower’s knowledge, threatened action by any Governmental Authority pursuant to Environmental Laws; and

 

(v)                                 To the best of Parent’s and the Borrower’s knowledge, no Hazardous Materials have been Released on, at, under, to or from any current or past Property of Parent and its Subsidiaries in a manner or condition that would reasonably be expected to result in any material liability to, or obligation to undertake remediation on the part of, Parent or its Subsidiaries.

 

Section 7.17                             Compliance with Laws.  No Group Member has violated any Governmental Requirement or failed to obtain any license, permit, franchise or other governmental authorization necessary for the ownership of any of its Properties or the conduct of its business, which violation or failure would (in the event such violation or failure were asserted by any Person through appropriate action) reasonably be expected to result in a Material Adverse Effect.

 

Section 7.18                             Insurance.  Parent has, and has caused all of its Significant Domestic Subsidiaries to have, insurance policies sufficient for compliance by each of them with all applicable requirements of law and of all agreements to which Parent or such Significant Domestic Subsidiary is a party, except where non-compliance therewith would not reasonably be expected to result in a Material Adverse Effect; such policies are valid, outstanding and enforceable policies and provide insurance coverage in at least such amounts and against at least such risks (but including in any event public liability) as are usually insured against by companies engaged in the same or similar businesses operating in the same or similar locations.  The Administrative Agent has been named as an additional insured in respect of such liability insurance policies, and the Administrative Agent has been named as lender loss payee with respect to such property loss insurance policies.  For the avoidance of doubt, unless an Event of Default has occurred and is continuing, any property loss insurance proceeds received by the Administrative Agent in its capacity as “lender loss payee” under the property loss insurance policies of any Group Member shall be remitted to the Borrower or the other applicable Group Member.

 

Section 7.19                             Hedging Agreements.  Schedule 7.19 sets forth, as of the Effective Date, a true and complete list of all Hedging Agreements (including commodity price swap agreements, forward agreements or contracts of sale which provide for prepayment for deferred shipment or delivery of oil, gas or other commodities) of each Group Member, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark-to-market value thereof as of the last day of the immediately preceding calendar month, all credit support agreements relating thereto (including any margin required or supplied), and the counterparty to each such agreement. The Borrower is an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder.

 

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Section 7.20                             Restriction on Liens.  Except as set forth in Schedule 7.20 or as permitted under Section 9.15, no Group Member is a party to any agreement or arrangement (other than this Agreement and the Security Instruments), or subject to any order, judgment, writ or decree, which restricts or purports to restrict its ability to grant Liens pursuant to this Agreement and the Security Instruments to the Administrative Agent, for the benefit of the Secured Parties, on or in respect of its material Properties.

 

Section 7.21                             Anti-Terrorism Law; Sanctions.

 

(a)                                 No Loan Party nor any of its Subsidiaries, officers or directors or, to the knowledge of the Borrower, any of their respective Affiliates,

 

(i)                                     is in violation in any material respect with any laws or regulations of the U.S., the UK, the European Union and, to the extent the laws of which are substantially similar to U.S. law, any other Governmental Authority, in each case relating to money laundering or terrorist financing, including, without limitation, (A) the Bank Secrecy Act, 31 U.S.C. sections 5301 et seq.; (B) the USA PATRIOT Act; (C) Laundering of Monetary Instruments, 18 U.S.C. section 1956; (D) Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity, 18 U.S.C. section 1957; (E) the Financial Recordkeeping and Reporting of Currency and Foreign Transactions Regulations, 31 C.F.R. Part 103; and (F) any similar laws or regulations of such Governmental Authorities currently in force or hereafter enacted (collectively, the “Anti-Terrorism Laws”) or

 

(ii)                                  (A) is a Sanctioned Person or (B) engages in any dealings or transactions, or is otherwise associated, with any Sanctioned Person that would result in any violation of Sanctions.

 

(b)                                 Each Loan Party has implemented and maintains in effect such policies and procedures, if any, as it reasonably deems appropriate, in light of its business and international activities, to ensure compliance by such Loan Party and its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and each Loan Party and its Subsidiaries and their respective officers and directors and, to the knowledge of such Loan Party, their respective Affiliates, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  No Borrowing or Letter of Credit, use of proceeds or other transaction contemplated by this Agreement would cause any party hereto to be in violation of any Anti-Corruption Law or applicable Sanctions.

 

(c)                                  To the knowledge of Parent or any of its Subsidiaries, neither Parent nor any of its Subsidiaries is the subject of any investigation, inquiry or enforcement proceedings by any governmental, administrative or regulatory body regarding any offense or alleged offense under any anti-corruption, anti-terrorism, or anti-money laundering laws or Sanctions in which there is a reasonable possibility of an adverse decision which could reasonably be expected to have a Material Adverse Effect or affect the legality, validity or enforceability of the Loan Documents, and no such investigation, inquiry or proceeding is pending or, to the knowledge of Parent or any of its Subsidiaries, has been threatened.

 

Section 7.22                             Security Instruments.

 

(a)                                 Guaranty and Collateral Agreement.  Upon the execution and delivery of the Guaranty and Collateral Agreement, the provisions of the Guaranty and Collateral Agreement shall be effective to create, in favor of the Administrative Agent, for the benefit of the Secured Parties, a legal, valid and enforceable Lien on, and security interest in, all of the Collateral described therein, and (i) when financing statements and other filings in appropriate form are filed in the offices specified in the Guaranty and Collateral Agreement and (ii) upon the taking of possession or control by the Administrative Agent of the Collateral described therein with respect to which a security interest may be perfected only by possession or control (which possession or control shall be given to the Administrative Agent to the extent possession or control by the Administrative Agent is required by the Guaranty and Collateral Agreement), the Liens created by the Guaranty and Collateral Agreement shall constitute fully perfected first priority Liens on, and security interests in, all right, title and interest of the Loan Parties in such Collateral (other than such Collateral in which a Lien or a security interest cannot be perfected by filing, possession or control under the Uniform Commercial Code as in effect at the relevant time in the relevant jurisdiction), in each case free of all Liens other than Permitted Liens, and prior and superior to all other Liens other than Permitted Liens; provided that, with respect to any Collateral consisting of Equity Interests in Foreign Subsidiaries, the representations in this paragraph (a) shall be limited to Parent and the Borrower’s knowledge.

 

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(b)                                 Mortgages.  Upon the execution and delivery of the Mortgages, each Mortgage shall be effective to create, in favor of the Administrative Agent (or such other trustee as may be required or desired under local law) for the benefit of the Secured Parties, legal, valid and enforceable Liens on, and security interests in, all of the Collateral described therein, subject only to Permitted Liens, and when the Mortgages are filed in the offices specified on Schedule 7.22 (or, in the case of any Mortgage executed and delivered after the date hereof in accordance with the provisions of Section 8.01(i) or 8.06, as applicable, when such Mortgage is filed in the appropriate offices), the Mortgages shall constitute fully perfected first priority Liens on, and security interests in, all right, title and interest of the Loan Parties party thereto in that portion of the Collateral described in such Mortgages constituting real property and fixtures affixed or attached to such real property, in each case prior and superior in right to any other person, other than Permitted Liens.

 

(c)                                  Valid Liens.  Each Security Instrument delivered pursuant to Section 8.04 or Section 8.06, upon execution and delivery thereof, is effective to create in favor of the Administrative Agent, for the benefit of the Secured Parties, legal, valid and enforceable Liens on, and security interests in, all of the Collateral described therein, and (i) when financing statements and other filings in appropriate form are filed or recorded in the appropriate offices as are required by such Security Instrument, and (ii) upon the taking of possession or control by the Administrative Agent of the Collateral described therein with respect to which a security interest may be perfected only by possession or control, the Liens created by such Security Instrument will constitute fully perfected first priority Liens on, and security interests in, all right, title and interest of the Loan Parties that are parties to such Security Instrument in such Collateral (other than such Collateral in which a Lien or security interest cannot be perfected by filing, possession or control under the Uniform Commercial Code as in effect at the relevant time in the relevant jurisdiction), in each case free of all Liens other than Permitted Liens; provided that, with respect to any Collateral consisting of Equity Interests in Foreign Subsidiaries, the representations in this paragraph (a) shall be limited to Parent and the Borrower’s knowledge.

 

Section 7.23                             Flood Insurance and Mortgage Related Matters.  Except for the real property set forth on Schedule 7.23 as it may be supplemented from time to time by delivery of a written notice to the Administrative Agent, no Mortgage encumbers improved real property that contains Buildings or Manufactured (Mobile) Homes.  For each such real property location, Schedule 7.23 sets forth the address of such location (where applicable) and the owner of record of such location, as such schedule may be supplemented from time to time by delivery of a written notice to the Administrative Agent.  For each such real property location set forth on Schedule 7.23, the Loan Parties have either (a) obtained flood insurance in accordance with Section 8.02(b), with respect to each such parcel that is located in a “special flood hazard area” as defined in the Flood Insurance Laws or (b) obtained and delivered to the Administrative Agent a Federal Emergency Management Agency Standard Flood Hazard Determination demonstrating that such parcel is not located in such a “special flood hazard area”.

 

It is understood and agreed that the representations and warranties set forth in Section 7.22 and Section 7.23 shall not be made at any time prior to the Initial Availability Date.

 

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ARTICLE VIII
 Affirmative Covenants

 

From and after the Initial Availability Date, each of Parent and the Borrower covenants and agrees that, until Payment in Full:

 

Section 8.01                             Reporting Requirements.  Parent shall deliver, or shall cause to be delivered, to the Administrative Agent:

 

(a)                                 Financial Statements.  (i) Within thirty (30) days after the same is required to be filed with the SEC or any successor agency (but in any event within 90 days of the end of each Fiscal Year), a copy of each annual report and any amendment to any annual report filed by Parent with the SEC or any successor agency pursuant to Section 13 or 15(d) of the Exchange Act (currently Form 10-K), (ii) within thirty (30) days after the same is required to be filed by Parent with the SEC or any successor agency (but in any event within sixty (60) days after the end of each of the first three Fiscal Quarters of each Fiscal Year), a copy of each quarterly report and any amendment to any quarterly report filed by Parent with the SEC or any successor agency pursuant to Section 13 or 15(d) of the Exchange Act (currently Form 10-Q), as the same may be amended from time to time, and (iii) promptly after the same become publicly available, but in any event within fifteen (15) days following the date the same are required to be filed with the SEC, all other reports, notices, proxy statements or other documents that are distributed by Parent to its shareholders generally and all regular and periodic final reports (including reports on Form 8-K) filed by Parent with the SEC, which are publicly available; provided, however, that Parent shall be deemed to have furnished the information required by this Section 8.01(a) if Parent shall have timely made the same available on “EDGAR” (or any successor thereto) and/or on its home page on the worldwide web (at the date of this Agreement located at http://exterran.com); provided further, however, that if the Administrative Agent is unable to access EDGAR (or any successor thereto) or Parent’s home page on the worldwide web, Parent agrees to provide the Administrative Agent with paper copies of the information required to be furnished pursuant to this Section 8.01(a) promptly following notice from the Administrative Agent.

 

(b)                                 Compliance Certificate.  Within ten (10) Business Days of any delivery or deemed delivery of any annual report or quarterly report pursuant to paragraph (a) above, (i) a certificate substantially in the form of Exhibit D executed by a Responsible Officer of the Borrower (a “Compliance Certificate”) (A) certifying as to the matters set forth therein and stating that no Default has occurred and is continuing as of the date thereof (or, if any Default has occurred and is continuing as of the date thereof, describing the same in reasonable detail) and (B) setting forth in reasonable detail the computations necessary to determine whether Parent is in compliance with Sections 9.10(a), 9.10(b) and 9.10(c) as of the end of the most recently ended Fiscal Quarter or Fiscal Year, as applicable; (ii) a report, in form and substance satisfactory to the Administrative Agent, setting forth as of the date of such certificate a true and complete list of all Hedging Agreements (including commodity price swap agreements, forward agreements or contracts of sale which provide for prepayment for deferred shipment or delivery of oil, gas or other commodities) to which any Group Member is a party, the material terms thereof (including the type, term, effective date, termination date and notional amounts or volumes), the net mark to market value therefor, any new credit support agreements relating thereto not listed in Schedule 7.19, any margin required or supplied under any credit support document, and the counterparty to each such agreement; and (iii) a report, in form and substance satisfactory to the Administrative Agent, setting forth as of the date of such certificate a true and complete list of all letters of credit permitted under Section 9.01(t), including the name of the Secured LC Provider providing each such letter of credit facility and the face amount thereof.

 

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(c)                                  Consolidating Financials.  If, for any Testing Period, the percentage of EBITDA attributable to cash distributions received by Parent and its Consolidated Restricted Subsidiaries from Unrestricted Subsidiaries would represent greater than 5% of the EBITDA of Parent and its Consolidated Restricted Subsidiaries for such Testing Period, then Parent shall deliver, within 90 days after the end of each Fiscal Year and within 60 days after the end of each of the first three Fiscal Quarters of each Fiscal Year, a consolidating balance sheet as of the last day of the most recently ended Fiscal Quarter and a consolidating income statement for the most recently ended Fiscal Quarter with respect to its Unrestricted Subsidiaries.

 

(d)                                 Budget. Within ninety (90) days following the end of each Fiscal Year, a copy of the operating budget and capital budget of Parent and its Consolidated Restricted Subsidiaries for the succeeding Fiscal Year.

 

(e)                                  Notice of Default, Etc. Promptly after a Responsible Officer of Parent or the Borrower obtains actual knowledge that any Default or event that has had a Material Adverse Effect has occurred, a notice of such Default or event, describing the same in reasonable detail and the action the Borrower proposes to take with respect thereto.

 

(f)                                   Management Letters.  Promptly after the receipt thereof by Parent, a copy of any “management letter” addressed to the board of directors of Parent from Parent’s certified public accountants.

 

(g)                                  Labor Disputes.  Promptly upon becoming aware of any labor dispute which would result in a Material Adverse Effect, a notice of such dispute describing such dispute in detail and the action the Borrower proposes to take with respect thereto.

 

(h)                                 Litigation.  Prompt written notice of any litigation or governmental investigation or proceeding pending against Parent or any of its Subsidiaries which would result in a Material Adverse Effect.

 

(i)                                     ERISA Events.  Prompt written notice of the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability to any Loan Party in an aggregate amount exceeding $50,000,000.

 

(j)                                    Other Matters.  From time to time such other information regarding the business, affairs or financial condition of Parent, the Borrower or any Significant Domestic Subsidiary (including any Plan or Multiemployer Plan and any reports or other information required to be filed under ERISA) as the Administrative Agent may reasonably request.

 

Section 8.02                             Maintenance, Etc.

 

(a)                                 Generally.  Except as otherwise permitted by Section 9.06 or Section 9.11, each of Parent and the Borrower shall, and shall cause each of the Significant Domestic Subsidiaries to:  (i) preserve and maintain its legal entity existence and, with respect to Parent and the Borrower, maintain its legal entity existence in a jurisdiction of organization located in the United States or any State thereof; (ii) preserve and maintain all of its material rights, privileges, franchises, patents, trademarks, copyrights and licenses unless the failure to do so could not reasonably be expected to result in a Material Adverse Effect; (iii) comply with all Governmental Requirements to the extent the failure to comply with such requirements would have a Material Adverse Effect; (iv) pay and discharge all Taxes, assessments and governmental charges or levies imposed on it or on its income or profits or on any of its Property prior to the date on which penalties attach thereto, except for (A) any such Tax, assessment, charge or levy the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained in accordance with GAAP and (B) any such Tax, assessment, charge or levy, the nonpayment of which could not reasonably be expected to result in a Material Adverse Effect; (v) maintain in effect and enforce such policies and procedures, if any, as it deems appropriate using reasonable judgment in light of its business and operation (including its international operations), to ensure compliance by Parent, the Borrower, its Subsidiaries and their respective directors, officers employees and agents with Anti-Corruption Laws, Anti-Terrorism Laws and applicable Sanctions; and (vi) upon reasonable notice and to the extent reasonably requested by the Administrative Agent, permit representatives of the Administrative Agent, during normal business hours, to examine, copy and make extracts from its books and records, to inspect its Properties, and to discuss its business and affairs with its officers.  Parent shall keep its books of record and account and the books of record and account of its Consolidated Subsidiaries in accordance with GAAP.

 

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(b)                                 Insurance.  Each of Parent and the Borrower shall, and shall cause each of the Significant Domestic Subsidiaries to, maintain, with financially sound and reputable insurance companies, insurance policies which (i) are sufficient for compliance with all applicable requirements of law and of all agreements to which it is a party, except where non-compliance therewith would not reasonably be expected to result in a Material Adverse Effect; (ii) are valid, outstanding and enforceable policies; and (iii) provide insurance coverage in at least such amounts and against at least such risks (but including in any event public liability) as are usually insured against by companies engaged in the same or similar businesses operating in the same or similar locations.  Within 90 days of the end of each Fiscal Year, Parent will furnish or cause to be furnished to the Administrative Agent a certificate of insurance coverage from the applicable insurers in form and substance reasonably satisfactory to the Administrative Agent and, if requested, will furnish the Administrative Agent copies of the applicable policies.  Any insurance policy or policies insuring any of the Collateral shall be endorsed in favor of and made payable to the Administrative Agent (including by naming the Administrative Agent as “additional insured” and “lender loss payee”, as applicable) and shall provide that the insurer will endeavor to give at least 30 days’ prior notice of any cancellation to the Administrative Agent.  With respect to each portion of real property Collateral located in the United States that is subject to a Mortgage on which a Building or Manufactured (Mobile) Home is located, Parent will, and will cause each Restricted Subsidiary to, obtain flood insurance in such total amount as the Administrative Agent or the Majority Lenders may from time to time reasonably require, if at any time the area in which any such Building or Manufactured (Mobile) Home is located is designated a “special flood hazard area” as defined in the Flood Insurance Laws.

 

(c)                                  Operation of Properties.  Each of Parent and the Borrower will, and will cause each of Parent’s Restricted Subsidiaries to, operate its Properties or cause such Properties to be operated in a careful and efficient manner (i) in compliance with the practices of the industry, (ii) in compliance with all applicable contracts and agreements and (iii) in compliance in all material respects with all Governmental Requirements, except in each case where noncompliance therewith would not reasonably be expected to result in a Material Adverse Effect.

 

Section 8.03                             Environmental Matters.

 

(a)                                 Compliance.  Each of Parent and the Borrower will, and will cause each of its Restricted Subsidiaries to, conduct their respective operations and maintain their respective Properties in compliance with applicable Environmental Laws, except in each case where noncompliance would not reasonably be expected to result in a Material Adverse Effect.

 

(b)                                 Notice of Action.  The Borrower will promptly notify the Administrative Agent in writing of any threatened action, investigation or inquiry by any Governmental Authority of which any of its Responsible Officers has knowledge in connection with any Environmental Laws if such action, investigation or inquiry would reasonably be expected to result in a Material Adverse Effect.

 

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Section 8.04                             Further Assurances.  Upon the reasonable request of the Administrative Agent, each of Parent and the Borrower will, and will cause each of its Restricted Subsidiaries to, cure promptly any defects in the creation and issuance of the Notes and the execution and delivery of the Security Instruments and this Agreement.  Upon the reasonable request of the Administrative Agent, each of Parent and the Borrower, at its expense, will, and will cause each of its Restricted Subsidiaries to, promptly execute and deliver to the Administrative Agent all such other documents, agreements and instruments to comply with or accomplish the covenants and agreements of any of the Loan Parties in the Security Instruments and this Agreement, or to further evidence and more fully describe the collateral intended as security for the Secured Obligations, or to correct any omissions in the Security Instruments, or to perfect, protect or preserve any Liens created pursuant to any of the Security Instruments, or to make any recordings, to file any notices or obtain any consents, all as may be reasonably necessary or appropriate in connection therewith.

 

Section 8.05                             Performance of Obligations under Loan Documents.  The Borrower will pay the Loans and the Notes according to the reading, tenor and effect thereof; and Parent will, and will cause each of its Subsidiaries to, do and perform every act and discharge all of the obligations to be performed and discharged by them under the Security Instruments and this Agreement, at the time or times and in the manner specified.

 

Section 8.06                             Collateral and Guarantees.

 

(a)                                 Collateral.

 

(i)                                     Subject to the proviso below, each of Parent and the Borrower shall, and shall cause each other Loan Party to, grant a Lien pursuant to the Security Instruments on substantially all of its Property located in the United States now owned or at any time hereafter acquired by it or any other Loan Party, including (A) all Equipment, Accounts, Chattel Paper, Documents, General Intangibles, Instruments and Inventory (as each such term is defined in the UCC), (B) all real property and (C) the Equity Interests in each Domestic Subsidiary and Foreign Subsidiary; and

 

(ii)                                  subject to the proviso below, upon the formation or acquisition of any Significant Domestic Subsidiary or upon any Subsidiary becoming a Significant Domestic Subsidiary after the Initial Availability Date, the Borrower shall promptly:

 

(A)                               cause such Significant Domestic Subsidiary to grant a Lien pursuant to the Security Instruments on substantially all of its Property located in the United States now owned or at any time hereafter acquired by it, including, without limitation, all Equipment, Accounts, Chattel Paper, Documents, General Intangibles, Instruments, and Inventory (as each such term is defined in the UCC);

 

(B)                               pledge, or cause the appropriate Person to pledge, pursuant to the Guaranty and Collateral Agreement or the Pledge Agreement, as applicable, all of the Equity Interests in such Significant Domestic Subsidiary (and, to the extent certificated, deliver original stock certificates or other certificates evidencing the capital stock of such entity, together with an appropriate undated stock power for each certificate, duly executed in blank by the registered owner thereof);

 

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(C)                               cause such Significant Domestic Subsidiary to grant a Mortgage on any real property owned by such Significant Domestic Subsidiary; and

 

(D)                               execute and deliver, or cause such Significant Domestic Subsidiary to execute and deliver, such other additional documents and certificates as shall reasonably be requested by the Administrative Agent; and

 

(iii)                               subject to the proviso below, upon the formation or acquisition of any Foreign Subsidiary or any Domestic Subsidiary that is not a Significant Domestic Subsidiary after the Initial Availability Date, Parent and the Borrower shall promptly:

 

(A)                               pledge, or cause the appropriate Person to pledge, pursuant to the Pledge Agreement, (1) 65% of the voting capital stock and 100% of the non-voting capital stock of each first-tier Foreign Subsidiary that is a CFC (and, to the extent certificated and to the extent that delivery of such certificates is not prohibited due to a Governmental Requirement, deliver original stock certificates or other certificates evidencing 65% of the voting capital stock and 100% of the non-voting capital stock of such entity, together with an appropriate undated stock power for each certificate duly executed in blank by the registered owner thereof) and (2) 100% of the capital stock of each Domestic Subsidiary that is not a Significant Domestic Subsidiary and each Foreign Subsidiary that is not a CFC or a Subsidiary of a CFC (and, to the extent certificated, deliver original stock certificates or other certificates evidencing the capital stock of such entity, together with an appropriate undated stock power for each certificate duly executed in blank by the registered owner thereof); and

 

(B)                               execute and deliver, or cause such Foreign Subsidiary or Domestic Subsidiary, as applicable, to execute and deliver, such other additional documents and certificates as shall reasonably be requested by the Administrative Agent;

 

provided that the foregoing clauses (i), (ii) and (iii) shall not require the creation or perfection of pledges of, security interests in or Mortgages on, (A) the Equity Interests in, and any Property of, any ABS Subsidiary, (B) any real property, whether leasehold interests or owned real property, located in any jurisdiction other than the United States, (C) any leasehold interests or any owned real property that has a book value of less than $5,000,000 on an individual basis (provided, however, if in the aggregate, the book value of all real property owned by any Loan Party or Restricted Subsidiary and not subject to a Mortgage (“Non-Mortgaged Real Property”) exceeds $15,000,000 as of the last day of any Fiscal Quarter, then the Borrower shall, within thirty (30) days after delivery of the financial statements required to be delivered for such Fiscal Quarter pursuant to Section 8.01(a), deliver Mortgages with respect to as much of such real property as is necessary to ensure that the aggregate book value of all Non-Mortgaged Real Property as of the last day of such Fiscal Quarter does not exceed $15,000,000), (D) any Property identified on Schedule 8.06, (E) the Equity Interests owned by any Loan Party or a Restricted Subsidiary in a Joint Venture to the extent (but only to the extent) (i) the Organization Documents of such Joint Venture or any other agreement relating to such Joint Venture prohibit the granting of a Lien on such Equity Interests or (ii) such Equity Interests in such Joint Venture are otherwise pledged as collateral as permitted by Section 9.02(g), provided however, if any of the foregoing conditions cease to be in effect for any reason, then the Equity Interests in such Joint Venture shall automatically be subject to the lien and security interest pursuant to the Guaranty and Collateral Agreement, (F) any Property that in the reasonable judgment of the Administrative Agent, the cost of creating or perfecting such pledges, security interests or Mortgages on such Property would be excessive in view of the benefits to be obtained by the Lenders therefrom, (G) any assets directly or indirectly legally owned by any CFC or more than 65% of the capital stock of any CFC, (H) more than 65% of the voting Equity Interests of any Excluded Subsidiary, (I) any Property subject to a Lien permitted by Section 9.02(b), (d) or (e), (K) Equity Interests in Hanover Cayman Limited, Production Operators Cayman Inc. or Exterran (Thailand) Ltd. or (L) Equity Interests of a direct or indirect Subsidiary of any CFC; provided further that the Borrower and any Guarantor will have ninety (90) days to perfect Liens on Property acquired in an acquisition.

 

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The Borrower will also (1) deliver a Federal Emergency Management Agency Standard Flood Hazard Determination with respect to each parcel of real property that becomes Collateral subject to a Mortgage pursuant to this Section 8.06(a) on which a Building or Manufactured (Mobile) Home is located and a policy of flood insurance that covers any such parcel that is located in a “special flood hazard area” as defined in the Flood Insurance Laws and (2) if reasonably requested by the Administrative Agent with respect to each parcel of real property that becomes Collateral subject to a Mortgage pursuant to this Section 8.06(a), provide the Lenders with (x) title and extended coverage insurance covering such interest in real property in an amount equal to the estimated fair market value of such interest in real property (or such other amount as shall be reasonably acceptable by the Administrative Agent) as well as a current ALTA survey thereof, together with a surveyor’s certificate and (y) any consents or estoppels reasonably deemed necessary or advisable by the Administrative Agent in connection with such Mortgage.

 

(b)                                 Guarantees; Designation of Significant Domestic Subsidiaries.  Parent and all Significant Domestic Subsidiaries as of the Initial Availability Date shall guarantee the Secured Obligations pursuant to the Guaranty and Collateral Agreement.  Upon the formation or acquisition of any Significant Domestic Subsidiary after the Initial Availability Date or upon any Subsidiary becoming a Significant Domestic Subsidiary after the Initial Availability Date, such Significant Domestic Subsidiary shall (i) within ninety (90) days from its creation or acquisition, with respect to any newly created or acquired Significant Domestic Subsidiary or (ii) within thirty (30) days after the delivery of the most recent Fiscal Year end financial statements (or by such later date as may be agreed to by the Administrative Agent in its sole discretion), with respect to any Subsidiary becoming a Significant Domestic Subsidiary, execute and deliver a supplement to the Guaranty and Collateral Agreement pursuant to which it will guarantee the Secured Obligations.  If, in the aggregate, the value of the Specified US Assets of the Wholly-Owned Domestic Subsidiaries that are not Guarantors exceeds $75,000,000 as of the last day of any Fiscal Quarter, then the Borrower shall designate as many of such Wholly-Owned Domestic Subsidiaries as Guarantors as is necessary to ensure that the value of the Specified US Assets of the Wholly-Owned Domestic Subsidiaries that are not Guarantors as of the last day of such Fiscal Quarter does not exceed $75,000,000, and Parent shall cause such Wholly-Owned Domestic Subsidiaries so designated to execute and deliver a supplement to the Guaranty and Collateral Agreement pursuant to which it will guarantee the Secured Obligations and to deliver customary documentation in connection therewith satisfactory to the Administrative Agent, in each case not later than thirty (30) days after delivery of the financial statements for such Fiscal Quarter required to be delivered pursuant to Section 8.01(a) (or by such later date as may be agreed to by the Administrative Agent in its sole discretion).

 

(c)                                  Release of Collateral.

 

(i)                                     The Borrower and the Guarantors are hereby authorized by the Administrative Agent and the Lenders to release any Liens granted by any of the Loan Parties on any Collateral that is Disposed of in compliance with Section 9.06, Section 9.08 or Section 9.11; provided that the Lien in favor of the Administrative Agent continues in the proceeds of such Disposition of such Collateral, or to the extent such Collateral is Disposed of to the Borrower or any Guarantor, such Lien continues in such Collateral.

 

(ii)                                  Upon (A) a sale, transfer or other Disposition permitted under this Agreement (whether in a single transaction or a series of related transactions and whether by merger, consolidation or otherwise) of all the Equity Interests or Property of any Subsidiary (each such Subsidiary a “Transferred Subsidiary”) to any Person that is not, at the time of such sale, transfer or other Disposition, the Borrower or a Subsidiary of the Borrower or (B) the dissolution of any Subsidiary as permitted under this Agreement (each such Subsidiary, a “Dissolved Subsidiary”), then such Transferred Subsidiary or Dissolved Subsidiary, as the case may be, shall, upon the consummation of such sale, transfer, other Disposition or dissolution, be automatically released without further action from its obligations under the applicable Guaranty and Collateral Agreement and its obligations to pledge and grant any Collateral owned by it pursuant to any Security Instrument, and no Secured Party have any claim against such Transferred Subsidiary or Dissolved Subsidiary, as the case may be, under any Loan Document, and, in the case of a sale of all of the Equity Interests of the Transferred Subsidiary, the pledge of such Equity Interests to the Administrative Agent pursuant to the Security Instruments shall be automatically released without further action.

 

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(iii)                               Upon a Significant Domestic Subsidiary no longer being a Significant Domestic Subsidiary, then such Subsidiary shall (upon the consummation of such change from being a Significant Domestic Subsidiary, notice to the Administrative Agent of such change from being a Significant Domestic Subsidiary and request of the Administrative Agent to release the Significant Domestic Subsidiary) be released by the Administrative Agent from its obligations under the applicable Guaranty and Collateral Agreement and its obligations to pledge and grant any Collateral owned by it pursuant to any Security Instrument, and no Secured Party shall have any claim against such Subsidiary under such Security Instruments.  For the avoidance of doubt and subject to Sections 8.06(c)(i), (ii), (iv) and (v), should such Subsidiary become a Significant Domestic Subsidiary again at any time, such Subsidiary shall at such time comply with the provisions of Section 8.06(a)(ii).

 

(iv)                              All Collateral shall be automatically released without further action from the Liens of the Administrative Agent and the Secured Parties upon Parent’s receipt of an Investment Grade Rating with respect to its Index Indebtedness.

 

(v)                                 The Administrative Agent shall execute and deliver to the Borrower all documents and instruments reasonably requested by the Borrower to further evidence any release, discharge and termination pursuant to this Section 8.06(c) of the liens, security interests and other rights in favor of the Administrative Agent in and to the assets of the Loan Parties under the Loan Documents.

 

Section 8.07                             Post-Closing Matters.  Within sixty (60) days after the Initial Availability Date (or such later date as may be agreed to by the Administrative Agent in its sole discretion), the Borrower the Borrower shall ensure that the following conditions are met:

 

(a)                                 If requested by the Administrative Agent and required to induce the Title Insurance Company to issue the Title Insurance Policies in the form required by clause (b) below, the Administrative Agent shall have received, and the title insurance company issuing the policy referred to in clause (b) below (the “Title Insurance Company”) shall have received, maps or plats of an as-built survey of the sites of real property that is Collateral subject to a Mortgage certified to the Administrative Agent and the Title Insurance Company in a manner reasonably satisfactory to them, with such certificate dated a date reasonably satisfactory to the Administrative Agent and the Title Insurance Company by an independent professional licensed land surveyor satisfactory to the Administrative Agent and the Title Insurance Company.

 

(b)                                 If requested by the Administrative Agent, the Administrative Agent shall have received in respect of each tract or parcel of real property subject to a Mortgage a mortgagee’s title insurance policy (or policies) or marked up unconditional binders for such insurance, or endorsements to existing title insurance policies (as applicable), in each case, in such amounts, and in form and substance, and with such endorsements, reasonably satisfactory to the Administrative Agent, insuring the Lien of each such Mortgage as a valid first priority mortgage or deed of trust Lien on such applicable real property subject only to Excepted Liens and to the standard exceptions customary in such policies (collectively, the “Title Insurance Policies”).

 

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(c)                                  The Administrative Agent shall have received evidence reasonably acceptable to the Administrative Agent of payment by the Borrower of all premiums and other charges in connection with the issuance of the Title Insurance Policies, including without limitation all search and examination charges, escrow charges and related charges of the Title Insurance Company.

 

(d)                                 The Borrower and/or any applicable Group Member shall have executed and delivered such affidavits, certificates, information (including financial data) and instruments of indemnification (including a so-called “gap” indemnification) as shall be reasonably required to induce the Title Insurance Company to issue the Title Insurance Policies.

 

(e)                                  The Administrative Agent shall have received a copy of all recorded documents referred to, or listed as exceptions to title in, the Title Insurance Policies referred to in clause (b) above and to the extent in Borrower’s possession or control, a copy of all other material documents affecting the real property subject to a Mortgage requested by the Administrative Agent.

 

ARTICLE IX
 Negative Covenants

 

From and after the Initial Availability Date, each of Parent and the Borrower covenants and agrees that, until Payment in Full:

 

Section 9.01                             Indebtedness.  Each of Parent and the Borrower will not, and will not permit any of its Restricted Subsidiaries to, incur, create, assume or permit to exist any Indebtedness, except:

 

(a)                                 the Loans and any other Obligations and any guaranty of or suretyship arrangement for the Loans or any other Obligations;

 

(b)                                 Indebtedness (including unfunded commitments) existing on the Effective Date that is reflected in the financial statements of Parent for the Fiscal Year ended December 31, 2014 or disclosed in Schedule 9.01 and any Permitted Refinancing Indebtedness in respect of any of the foregoing described in this clause (b);

 

(c)                                  Permitted Term Loan Refinancing Indebtedness, so long as such Indebtedness is subject to the Term Loan Refinancing Intercreditor Agreement;

 

(d)                                 accounts payable (for the deferred purchase price of Property or services) from time to time incurred in the ordinary course of business which, if greater than sixty (60) days past due, (i) are being contested in good faith by appropriate proceedings if reserves adequate under GAAP shall have been established therefor or (ii) do not exceed $25,000,000 in the aggregate outstanding at any time;

 

(e)                                  Indebtedness under Hedging Agreements which are for bona fide business purposes and are not speculative;

 

(f)                                   other unsecured Indebtedness of the Borrower and any Guarantor (other than any ABS Subsidiary); provided that (i) no Default or Event of Default exists and is continuing immediately before and immediately after giving pro forma effect to the incurrence of such Indebtedness, (ii) the maturity of such Indebtedness is at least six (6) months after the Revolving Maturity Date, (iii) the Weighted Average Life to Maturity of such Indebtedness is greater than the number of years (calculated to the nearest one-twelfth) from the date of incurrence of such Indebtedness to the Revolving Maturity Date, (iv) such Indebtedness either (A) has terms substantially similar to those customary in high-yield debt offerings or (B) (1) does not contain financial covenants that are additional to or are more restrictive than those contained herein and (2) in the reasonable judgment of a Financial Officer of the Borrower, does not contain other covenants and events of default that are materially more restrictive, taken as a whole, than those contained herein and (v) Parent is in compliance with the financial covenants set forth in Section 9.10 that are applicable at such time as of the last day of the most recently ended Testing Period for which financial statements are available after giving pro forma effect to the incurrence of such Indebtedness (calculated as if such Indebtedness was incurred on the last day of such Testing Period);

 

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(g)                                  Indebtedness (other than Indebtedness of any ABS Subsidiary) evidenced by Capital Lease Obligations and Purchase Money Indebtedness; provided that, except for intercompany Capital Leases, in no event shall the aggregate principal amount of Capital Lease Obligations and Purchase Money Indebtedness permitted by this clause (g) exceed (i) prior to the occurrence of a Qualified Capital Raise, $25,000,000 and (ii) following the occurrence of a Qualified Capital Raise, the greater of $50,000,000 and an amount equal to 2.5% of Consolidated Net Tangible Assets at any time outstanding;

 

(h)                                 Indebtedness with respect to surety bonds, appeal bonds, advance payment bonds or customs bonds or associated with deposits, bank guarantees, customs, bids, performance, refund and surety bonds, standby letters of credit or surety and similar obligations of Parent or any Restricted Subsidiary required in the ordinary course of business or in connection with the enforcement of rights or claims of Parent or any of its Restricted Subsidiaries or in connection with judgments that do not result in a Default or an Event of Default;

 

(i)                                     Indebtedness assumed by Parent or one of its Restricted Subsidiaries (other than an ABS Subsidiary), and Indebtedness of a Restricted Subsidiary (other than an ABS Subsidiary) acquired, pursuant to an acquisition or merger permitted pursuant to the terms of this Agreement (and extensions, renewals, refundings and refinancings thereof that do not increase the principal thereof except for costs incurring in connection with such extensions, renewals, refundings and refinancings) (provided that upon the incurrence of such Indebtedness, Parent is in pro forma compliance with the financial covenants described in Section 9.10 that are applicable at such time as of the last day of the most recently ended Testing Period for which financial statements are available after giving pro forma effect to the incurrence of such Indebtedness (calculated as if such Indebtedness was incurred on the last day of such Testing Period)) and any Permitted Refinancing Indebtedness in respect of any of the foregoing described in this clause (i);

 

(j)                                    other Indebtedness, so long as, immediately after giving effect to the incurrence of any such Indebtedness, the aggregate principal amount of all Indebtedness incurred under this Section 9.01(j) and then outstanding does not exceed the greater of $50,000,000 and an amount equal to 2.5% of Consolidated Net Tangible Assets;

 

(k)                                 Indebtedness of Parent or any of its Restricted Subsidiaries (other than an ABS Subsidiary) owed to Parent or any of its Restricted Subsidiaries (other than an ABS Subsidiary);

 

(l)                                     Indebtedness of any Foreign Subsidiary used for such Foreign Subsidiary’s and/or its Foreign Subsidiaries’ working capital and general business purposes, so long as, immediately after giving effect to the incurrence of any such Indebtedness, (i) the aggregate principal amount of all Indebtedness incurred under this Section 9.01(l) and then outstanding does not exceed the greater of $200,000,000 and an amount equal to 7.5% of Consolidated Net Tangible Assets and (ii) the aggregate principal amount of all Indebtedness incurred under this Section 9.01(l) which is other than Non-Recourse Foreign Indebtedness and is then outstanding does not exceed the greater of $100,000,000 and an amount equal to 3.5% of Consolidated Net Tangible Assets;

 

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(m)                             Indebtedness with respect to ABS Facilities (not including any Indebtedness permitted by Section 9.01(n)) subject to an intercreditor agreement satisfactory to the Administrative Agent, in an aggregate principal amount not to exceed $100,000,000 at any time outstanding; provided that neither the Borrower nor any Domestic Subsidiary other than the ABS Subsidiaries is liable for such Indebtedness;

 

(n)                                 Indebtedness of any ABS Subsidiary owing to Parent or any of its Restricted Subsidiaries (other than an ABS Subsidiary) not to exceed the amount in Section 9.03(e);

 

(o)                                 Indebtedness of any ABS Subsidiary owing to any other ABS Subsidiary;

 

(p)                                 guarantees by a Loan Party of Indebtedness of any other Loan Party; provided that the Indebtedness so guaranteed is permitted under any of Sections 9.01(a) through (o);

 

(q)                                 Indebtedness consisting of Specified Contingent Obligations (provided that upon the incurrence of such Indebtedness, Parent is in pro forma compliance with the financial covenants described in Section 9.10 that are applicable at such time as of the last day of the most recently ended Testing Period for which financial statements are available after giving pro forma effect to the incurrence of such Indebtedness (calculated as if such Indebtedness was incurred on the last day of such Testing Period));

 

(r)                                    Indebtedness incurred to finance insurance premiums in the ordinary course of business in an aggregate principal amount not to exceed the amount of such insurance premiums;

 

(s)                                   to the extent constituting Indebtedness, obligations of the Borrower owing to AROC Corp. pursuant to Sections 9.7 and 9.8 of the Separation and Distribution Agreement not to exceed $175,000,000 in the aggregate at any given time; and

 

(t)                                    following the occurrence of a Qualified Capital Raise, Indebtedness in the form of letters of credit incurred or issued under any stand alone letter of credit facility so long as (i) such facility is provided by a Person that entered into such letter of credit facility while such Person was, or before such Person became, a Lender or Affiliate of a Lender, as the case may be, (ii) the stated amount of such Indebtedness does not exceed $50,000,000 in the aggregate at any given time, provided, however, that with respect to any such letter of credit that, by its terms or the terms of any agreement or document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such letter of credit shall be deemed to be the maximum stated amount of such letter of credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time, (iii) such facility (A) does not contain financial covenants that are additional to or are more restrictive than those contained herein and (B) in the reasonable judgment of a Financial Officer of the Borrower, does not contain other covenants and events of default that are materially more restrictive, taken as a whole, than those contained herein and (iv) the Borrower shall provide the Administrative Agent the information required under Section 8.01(b) with respect to such letter of credit facilities, and upon the reasonable request of the Administrative Agent from time to time, provide any other information with respect to such letter of credit facilities or copies of such letters of credit and any agreements or documents related thereto.

 

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Section 9.02                             Liens.  Each of Parent and the Borrower will not, and will not permit any of its Restricted Subsidiaries to, create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except for the following (herein referred to as “Permitted Liens”):

 

(a)                                 Liens arising under the Loan Documents;

 

(b)                                 Liens disclosed in Schedule 9.02;

 

(c)                                  Excepted Liens;

 

(d)                                 Liens securing Indebtedness permitted under Sections 9.01(i) or (j) and Liens securing obligations that are not Indebtedness, so long as, immediately after giving effect to the incurrence of any such Liens, the aggregate principal amount of Indebtedness and the aggregate amount of other obligations then outstanding and secured by any Liens incurred under this Section 9.02(d) does not exceed (i) prior to the occurrence of a Qualified Capital Raise, $25,000,000 and (ii) following the occurrence of a Qualified Capital Raise, the greater of $125,000,000 and an amount equal to 5.0% of Consolidated Net Tangible Assets; provided that (A) such Liens securing Indebtedness permitted under Section 9.01(i) do not extend to or cover any Property other than the Property that secured such Indebtedness prior to the time it was acquired or assumed (and any repairs, renewals, replacements, additions, accessions, betterments, improvements, modifications or proceeds thereof or of the foregoing and any receivables, contract rights or intangibles related thereto) and (B) such Liens do not extend to or cover any Property that is Collateral;

 

(e)                                  Liens securing Capital Lease Obligations and Purchase Money Indebtedness described in Section 9.01(g); provided that such Liens may only encumber the Property under lease or acquired, constructed or improved (and any repairs, renewals, replacements, additions, accessions, betterments, improvements, modifications or proceeds thereof or of the foregoing and any receivables, contract rights or intangibles related thereto);

 

(f)                                   Liens on assets of Foreign Subsidiaries under Foreign Credit Facilities;

 

(g)                                  Liens (i) on Equity Interests in a Joint Venture owned by any Loan Party or a Restricted Subsidiary to secure Joint Venture Obligations or (ii) arising under joint venture agreements, partnership agreements and other agreements arising in the ordinary course of business of Parent and its Restricted Subsidiaries that are customary in any of the lines of business permitted under Section 9.05;

 

(h)                                 Liens on Property held or pledged in connection with any ABS Facility, provided that such Liens do not extend to or cover any Property of Parent or any of its Restricted Subsidiaries other than Property of the ABS Subsidiaries;

 

(i)                                     Liens on Property of any Subsidiary in favor of Parent, the Borrower or any Domestic Subsidiary securing obligations or Indebtedness owing from such Subsidiary to Parent, the Borrower or any Domestic Subsidiary;

 

(j)                                    Liens securing Indebtedness permitted under Section 9.01(r), provided that no such Lien may extend to or cover any assets or property other than the insurance being acquired with such financing, the proceeds thereof and any unearned or refunded insurance premiums related thereto; and

 

(k)                                 Liens securing Permitted Term Loan Refinancing Indebtedness, so long as such Indebtedness and such Liens are subject to a Term Loan Refinancing Intercreditor Agreement.

 

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Section 9.03                             Investments.  Each of Parent and the Borrower will not, and will not permit any of its Restricted Subsidiaries to, make any Investments in any Person, except that the foregoing restriction shall not apply to:

 

(a)                                 Cash Equivalents;

 

(b)                                 Investments in connection with any acquisition of assets, business units or companies; provided, however, that (i) such acquisition shall not be a hostile takeover of a company and (ii) both immediately before and immediately after giving pro forma effect to such acquisition and any Indebtedness incurred to make such acquisition, no Default or Event of Default shall exist and be continuing;

 

(c)                                  Investments reflected in the audited financial statements of Parent as of and for the Fiscal Year ending December 31, 2014 or which are disclosed in Schedule 9.03;

 

(d)                                 accounts receivable and notes receivable arising in the ordinary course of business, and investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary or advisable in order to prevent or limit loss;

 

(e)                                  Investments by Parent or by any of its Restricted Subsidiaries in any Restricted Subsidiary or in Parent; provided that the aggregate amount of Investments (including the loans permitted under Section 9.01(n)) in the ABS Subsidiaries by Parent and the other Restricted Subsidiaries shall not exceed at any time an amount equal to the value of the Property Disposed of to the ABS Subsidiaries pursuant to Section 9.11(c) (measured as of the date of the applicable Disposition);

 

(f)                                   Investments otherwise permitted by Section 9.01;

 

(g)                                  other Investments, so long as, immediately after giving effect to the making of any such Investments, the aggregate amount of Investments made pursuant to this Section 9.03(g) and then outstanding does not exceed the greater of $50,000,000 and an amount equal to 2.5% of Consolidated Net Tangible Assets;

 

(h)                                 payroll advances and employee loans up to $10,000,000 in the aggregate outstanding at any time;

 

(i)                                     following the occurrence of a Qualified Capital Raise, Investments in Unrestricted Subsidiaries, Joint Ventures, minority interests in Persons or similar arrangements so long as after giving pro forma effect to any such Investment, (A) no Default or Event of Default has occurred and is continuing at the time of and immediately after giving effect to any such Investment and (B) the Senior Secured Leverage Ratio is less than 2.50 to 1.00 as of the last day of the most recently ended Testing Period for which financial statements are available.  For purposes of this Section 9.03(i), the Senior Secured Leverage Ratio shall be calculated on a pro forma basis to include any Senior Secured Indebtedness incurred to make such Investment (as if such Indebtedness was incurred on the last day of the applicable Testing Period); and

 

(j)                                    Investments in securities acquired in settlements of claims and disputes.

 

Section 9.04                             Restricted Payments.  Parent will not pay any dividend on its Equity Interests, purchase, redeem or otherwise acquire for value any of its Equity Interests now or hereafter outstanding, return any capital to any holders of its Equity Interests or make any distribution of assets to any holders of its Equity Interests (each of the foregoing, a “Restricted Payment”), except that:

 

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(a)                                 Parent may pay dividends on its Equity Interests payable solely in additional Equity Interests (other than Disqualified Capital Stock);

 

(b)                                 Parent may make Restricted Payments with the proceeds received from any substantially concurrent issuance of additional Equity Interests in Parent (other than Disqualified Capital Stock);

 

(c)                                  Parent may make payments in lieu of issuing fractional shares in connection with the exercise of warrants, options or other securities convertible into or exchangeable for Equity Interests in Parent;

 

(d)                                 Parent may purchase, redeem or otherwise acquire for value any of its Equity Interests held by any current or former officers, directors or employees of Parent or any of its Restricted Subsidiaries or any former officers, directors or employees of EXH or any of its Subsidiaries in connection with the exercise or vesting of any equity compensation (including stock options, restricted stock and phantom stock) (i) if such Equity Interests represent a portion of the exercise or exchange price thereof, (ii) in order to satisfy any tax withholding obligation with respect to such exercise or vesting or (iii) in order to satisfy any obligations of Parent or its Restricted Subsidiaries under the Separation Documents;

 

(e)                                  so long as no Default has occurred and is continuing, Parent may purchase, redeem or otherwise acquire or retire for value any Equity Interests issued by Parent or any Restricted Subsidiary pursuant to any director or employee equity subscription agreement or stock option agreement or other employee benefit plan or to satisfy obligations under any Equity Interests appreciation rights or option plan or similar arrangement; provided that the aggregate amount of payments under this clause (e) during any Fiscal Year shall not exceed $10,000,000, with any portion of such $10,000,000 that is unused in any Fiscal Year to be carried forward to successive Fiscal Years and added to such amount; and

 

(f)                                   so long no Default or Event of Default exists immediately before and immediately after giving effect thereto, Parent may make any Restricted Payment if (i) prior to the occurrence of a Qualified Capital Raise, the Total Leverage Ratio, calculated on a pro forma basis to include any Indebtedness incurred to make such Restricted Payment (as if such Restricted Payments were made on the last day of the applicable Testing Period), is less than 2.00 to 1.00 or (ii) following the occurrence of a Qualified Capital Raise, the Senior Secured Leverage Ratio, calculated on a pro forma basis to include any Senior Secured Indebtedness incurred to make such Restricted Payment (as if such Restricted Payments were made on the last day of the applicable Testing Period), is less than 2.50 to 1.00, in each case as of the last day of the most recently ended Testing Period for which financial statements are available.

 

Section 9.05                             Nature of Business; Activities of Parent.

 

(a)                                 Parent will not, and will not permit any of its Restricted Subsidiaries to, allow any material change to be made in the character of the business of Parent and its Restricted Subsidiaries, taken as a whole, other than (i) businesses reasonably related or ancillary thereto and (ii) businesses that constitute reasonable extensions thereof, including natural gas or other hydrocarbon gathering, processing, treating, transportation and production.

 

(b)                                 Notwithstanding the foregoing or anything else in this Agreement to the contrary, Parent will not own any real property, immovable property or any other material assets or engage in any operations or business, other than (i) its direct or indirect ownership of its Subsidiaries, (ii) ownership of immaterial leases of real property, (iii) providing employees and related services to its Subsidiaries and other activities ancillary to owning its Subsidiaries, (iv) Investments permitted under Section 9.03, and (v) other miscellaneous activities ancillary to maintaining its existence as a holding company that owns the Borrower.

 

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Section 9.06                             Mergers, Etc.  Each of Parent and the Borrower will not, and will not permit any of its Restricted Subsidiaries to, merge into or with or consolidate with any other Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of the Property of Parent and its Restricted Subsidiaries, taken as a whole, to any other Person, except that:

 

(a)                                 subject to Section 9.05(b), any Restricted Subsidiary (other than the Borrower) may be merged into or consolidated with, or Dispose of all or substantially all of its Property, to (i) the Borrower or Parent, so long as the Borrower or Parent, as applicable, is the surviving business entity, or (ii) another Restricted Subsidiary;

 

(b)                                 any Restricted Subsidiary (other than the Borrower) may merge into or consolidate with any Person other than another Group Member if (i) such Restricted Subsidiary is the surviving entity, (ii) such other Person is the surviving entity and becomes a Restricted Subsidiary contemporaneously with such merger or consolidation and complies with Section 8.06 (to the extent applicable) or (iii) such other Person is the surviving entity and the merger or consolidation constitutes a Disposition permitted by Section 9.11;

 

(c)                                  subject to Section 9.05(b), Parent or the Borrower may merge into or consolidate with any Person so long as (i) immediately after giving effect thereto, no Default or Event of Default shall have occurred and be continuing and (ii) Parent or the Borrower, as applicable, is the surviving business entity (or, so long as no Change in Control shall have occurred, the surviving entity is a Person organized under the laws of the United States or any state thereof that assumes all of the obligations and liabilities applicable to Parent or the Borrower, as applicable, under this Agreement and the other Loan Documents); and

 

(d)                                 any Restricted Subsidiary (other than any Loan Party) may liquidate or dissolve so long as Parent determines in good faith that such liquidation or dissolution is in the best interest of such Person.

 

Section 9.07                             Proceeds of Loans; Letters of Credit.

 

(a)                                 The Borrower will not permit the proceeds of the Loans or Letters of Credit to be used for any purpose other than those permitted by Section 7.07.  Neither the Borrower nor any Person acting on behalf of the Borrower has taken or will take any action which might cause any of the Loan Documents to violate Regulation T, U or X or any other regulation of the Board or to violate Section 7 of the Exchange Act or any rule or regulation thereunder, in each case as now in effect or as the same may hereinafter be in effect.

 

(b)                                 The Borrower will not request any Borrowing or Letter of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Borrowing or Letter of Credit (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.

 

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Section 9.08                             Sale or Discount of Receivables.  Each of Parent and Borrower will not, and will not permit any of its Restricted Subsidiaries to, discount or sell (with or without recourse) any of its notes receivable or accounts receivable, except (i) in the ordinary course of business or (ii) in connection with any ABS Facility, so long as such Disposition is permitted pursuant to Section 9.11.

 

Section 9.09                             Fiscal Year Change.  Parent will not permit any change in its Fiscal Year.

 

Section 9.10                             Financial Covenants.

 

(a)                                 Interest Coverage Ratio.  Parent will not permit the Interest Coverage Ratio as of the last day of any Testing Period, beginning with the Testing Period ending on the last day of the Fiscal Quarter during which the Initial Availability Date occurs, to be less than 2.25 to 1.00.

 

(b)                                 Total Leverage Ratio.  Parent will not permit the Total Leverage Ratio as of the last day of any Testing Period, beginning with the Testing Period ending on the last day of the Fiscal Quarter during which the Initial Availability Date occurs, to be greater than (i) prior to the occurrence of a Qualified Capital Raise, 3.75 to 1.00 and (ii) following the occurrence of a Qualified Capital Raise, 4.50 to 1.00.

 

(c)                                  Senior Secured Leverage Ratio.  Parent will not permit the Senior Secured Leverage Ratio as of the last day of any Testing Period, beginning with the Testing Period ending on the last day of the Fiscal Quarter during which a Qualified Capital Raise occurs, to be greater than 2.75 to 1.00.

 

Section 9.11                             Disposition of Properties.  Each of Parent and the Borrower will not, and will not permit any of its Restricted Subsidiaries to, Dispose of any Property to any Person other than to Parent, the Borrower or to any of its Restricted Subsidiaries (other than an ABS Subsidiary), except that:

 

(a)                                 any Group Member may Dispose of any Property which, in the reasonable judgment of such Person, is obsolete, worn out or otherwise no longer useful in the conduct of such Person’s business;

 

(b)                                 any Group Member may Dispose of inventory or equipment in the ordinary course of business or may Dispose of accounts receivable and notes receivable arising in the ordinary course of business, and investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary or advisable in order to prevent or limit loss;

 

(c)                                  any Group Member may Dispose of any of its Property to an ABS Subsidiary to serve as collateral for Indebtedness of such ABS Subsidiary permitted by Section 9.01(m) so long as, immediately after giving effect to any such Disposition, the aggregate fair market value of all collateral securing Indebtedness of the ABS Subsidiaries payable to a Person other than a Group Member does not exceed 155% of the aggregate outstanding principal amount of all Indebtedness of the ABS Subsidiaries payable to a Person other than a Group Member at such time;

 

(d)                                 any ABS Subsidiary may Dispose of Property to any Group Member;

 

(e)                                  any Group Member may Dispose of Property as otherwise permitted by Section 9.03(g) or 9.03(i);

 

(f)                                   any Group Member (other than any ABS Subsidiary) may Dispose of the property listed on Schedule 9.11(f);

 

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(g)                                  any Disposition of assets resulting from an expropriation, involuntary taking or similar action by a foreign government or the claims related thereto (including any receipt of proceeds related thereto or the subsequent sale or other Disposition of any non-cash consideration received therefrom) shall be permitted;

 

(h)                                 any Group Member may Dispose of any of its Property in accordance with the Separation Documents as in effect on the Initial Availability Date as certified to by a Responsible Officer of the Borrower in accordance with Section 6.02(a)(vii) and as may be amended, supplemented or otherwise modified from time to time thereafter (without giving effect to any amendment, supplement or modification that provides for a material increase in the value of the Property required or permitted to be transferred by any Group Member to non-Group Members after the Initial Availability Date);

 

(i)                                     any Group Member may grant in the ordinary course of business of any non-exclusive license of patents, trademarks, registrations therefor and other similar intellectual property;

 

(j)                                    any Group Member may enter into Asset Swaps; provided that (i) with respect to any Asset Swap for which the relevant purchase and sale or exchange, as applicable, are completed within thirty (30) days of each other, Parent shall be in pro forma compliance with the financial covenants set forth in Section 9.10 that are applicable at such time after giving effect to such purchase and sale or exchange and (ii) the aggregate value of the assets or properties Disposed of in connection with Asset Swaps for which the relevant purchase and sale or exchange, as applicable, are completed more than thirty (30) days apart shall not exceed $15,000,000 in any given Fiscal Year;

 

(k)                                 any Group Member may Dispose of Investments in Joint Ventures to the extent required by, or made pursuant to customary buy/sell arrangements between the Joint Venture parties set forth in, Joint Venture agreements or any similar binding arrangements;

 

(l)                                     any Group Member may Dispose of, in a single transaction (or series of related transactions),  any of its Property which has an individual fair market value not in excess of $2,500,000;

 

(m)                             in addition to Dispositions permitted by clauses (a) through (l) above, the Group Members may Dispose of any other Properties; provided that the net book value of the Properties Disposed of pursuant to this Section 9.11(m) during any Fiscal Year shall not exceed an amount equal to 5.0% of Consolidated Net Tangible Assets as of the last day of the immediately preceding Fiscal Year.

 

provided that all Dispositions made pursuant to paragraphs (c) and (d) above (other than leases entered into pursuant to paragraph (c) above) shall be made for fair market value.

 

Section 9.12                             Environmental Matters.  Each of Parent and the Borrower will not, and will not permit any of its Restricted Subsidiaries to, cause or permit any of its Property to be in violation of, or do anything or permit anything to be done which will subject any such Property to any remedial obligations under any Environmental Laws, assuming disclosure to the applicable Governmental Authority of all relevant facts, conditions and circumstances, if any, pertaining to such Property, in each case to the extent such violations or remedial obligations would reasonably be expected to have a Material Adverse Effect.

 

Section 9.13                             Transactions with Affiliates.  Each of Parent and the Borrower will not, and will not permit any of its Restricted Subsidiaries to, enter into any transaction, including any purchase, sale, lease or exchange of Property or the rendering of any service, with any Affiliate unless such transaction is not prohibited by the terms of this Agreement and is upon fair and reasonable terms that Parent, the Borrower or such Restricted Subsidiary, as applicable, reasonably believes to be comparable to those available in an arm’s length transaction with a Person not an Affiliate; provided that this Section 9.13 shall not apply to:

 

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(a)                                 transactions between or among Parent, the Borrower and any of the other Restricted Subsidiaries not involving any other Person;

 

(b)                                 transactions described on Schedule 9.13;

 

(c)                                  any Investments in any Unrestricted Subsidiaries to the extent permitted under Section 9.03.

 

(d)                                 transactions pursuant to the Separation Documents; and

 

(e)                                  with respect to any Person serving as an officer, director, employee or consultant of any Group Member, (i) the payment of reasonable compensation, benefits or indemnification liabilities in connection with his or her services in such capacity, (ii) the making of advances for travel or other business expenses in the ordinary course of business or (iii) such Person’s participation in any benefit or compensation plan.

 

Section 9.14                             Subsidiaries; Unrestricted Subsidiaries.

 

(a)                                 Each of Parent and the Borrower will not, and will not permit any Restricted Subsidiary to, create or acquire any additional Restricted Subsidiary or redesignate an Unrestricted Subsidiary as a Restricted Subsidiary unless Parent, the Borrower or such Restricted Subsidiary complies with Section 8.06, and in the case of a redesignation, Section 9.14(c).

 

(b)                                 Parent shall not designate any Subsidiary as an Unrestricted Subsidiary unless:

 

(i)                                     neither such Subsidiary nor any of its Subsidiaries has any Indebtedness except Non-Recourse Indebtedness;

 

(ii)                                  neither such Subsidiary nor any of its Subsidiaries is a party to any agreement, arrangement, understanding or other transaction with Parent or any Restricted Subsidiary, except those agreements and other transactions entered into in writing upon fair and reasonable terms that Parent or such Restricted Subsidiary reasonably believes to be comparable to those available in an arm’s length transaction with a Person not an Affiliate;

 

(iii)                               neither such Subsidiary nor any of its Subsidiaries is a Guarantor or has any outstanding Letters of Credit issued for its account;

 

(iv)                              at the time of such designation and immediately after giving effect thereto, no Default shall have occurred and be continuing;

 

(v)                                 Parent would have been in compliance with the financial covenants described in Section 9.10 that are applicable at such time as of the last day of the most recently ended Testing Period for which financial statements are available had such Subsidiary been an Unrestricted Subsidiary on such day;

 

(vi)                              neither such Subsidiary nor any of its Subsidiaries owns any Indebtedness (excluding any accounts payable in the ordinary course of business) or Equity Interest of, or is the beneficiary of any Lien on any property of, Parent or any Restricted Subsidiary;

 

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(vii)                           such designation is deemed to be an Investment in an Unrestricted Subsidiary in an amount equal to the fair market value as of the date of such designation of Parent’s or any Restricted Subsidiary’s direct and indirect Equity Interests in such Subsidiary and such Investment would be permitted to be made at the time of such designation under Section 9.03; and

 

(viii)                        at or immediately prior to such designation, Parent delivers a certificate to the Administrative Agent certifying (i) the names of such Subsidiary and all of its Subsidiaries and (ii) that all requirements of this Section 9.14(b) have been met for such designation.

 

For the avoidance of doubt, the Borrower shall always be a Restricted Subsidiary of Parent and may not be designated as an Unrestricted Subsidiary.

 

(c)                                  Parent shall not designate any Unrestricted Subsidiary as a Restricted Subsidiary unless:

 

(i)                                     the representations and warranties of Parent, the Borrower and the other Loan Parties set forth in this Agreement and in the other Loan Documents shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representation or warranty that is already qualified or modified by materiality in the text thereof) on and as of the date of such designation, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, on and as of the date of such designation, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date;

 

(ii)                                  at the time of such designation and immediately after giving effect thereto, no Default shall have occurred and be continuing; and

 

(iii)                               at or immediately prior to such designation, Parent delivers a certificate to the Administrative Agent certifying (i) the names of such Subsidiary and all of its Subsidiaries and (ii) that all requirements of Section 9.14(a) and (c) have been met for such designation.

 

(d)                                 Parent and the Borrower will not permit any Guarantor (other than Parent) to cease to remain a Wholly-Owned Domestic Subsidiary.

 

Section 9.15                             Restrictive Agreements.  Except as permitted by this Agreement, each of Parent and the Borrower will not, and will not permit any of its Restricted Subsidiaries to, create, incur, assume or permit to exist any contract or agreement (other than this Agreement and the Security Instruments or, with respect to an ABS Subsidiary and the Properties pledged pursuant to an ABS Facility only, the documents evidencing or governing such ABS Facility) which in any way prohibits or restricts the granting, conveying, creation or imposition of any Lien on any of its property in favor of the Administrative Agent and the Secured Parties as may be required in connection with this Agreement or restricts any of its Restricted Subsidiaries from paying dividends to the Borrower, or which requires the consent of other Persons in connection therewith, except for:

 

(a)                                 any such contract or agreement existing as of the Effective Date and any extensions, renewals or replacements of any contracts or agreements permitted hereunder; provided that such prohibitive terms of such contract or agreement are no more restrictive than the terms reflected in such contract or agreement existing as of the Effective Date;

 

(b)                                 restrictions contained in any agreement or instrument relating to property existing at the time of the acquisition thereof in a transaction not prohibited by this Agreement, so long as such restrictions relate only to the property so acquired and were not added in contemplation of such acquisition;

 

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(c)                                  restrictions contained in any agreement to which any Restricted Subsidiary is a party at the time such Restricted Subsidiary is merged or consolidated with or into, or acquired by, Parent or a Restricted Subsidiary or becomes a Restricted Subsidiary, so long as such restrictions relate only to the property of such Restricted Subsidiary and are not created in contemplation thereof;

 

(d)                                 restrictions contained in any agreement effecting a renewal, extension, refinancing or replacement of Indebtedness incurred or issued under an agreement referred to in clauses (b) and (c) above, so long as the applicable restrictions contained in any such renewal, extension, refinancing or replacement agreement are not more restrictive than those set forth in the agreement being renewed, extended, refinanced or replaced;

 

(e)                                  customary provisions restricting subletting or assignment of any leases of Parent or any Restricted Subsidiary or provisions in agreements entered into in the ordinary course of business that restrict the assignment of such agreement;

 

(f)                                   temporary restrictions with respect to any Restricted Subsidiary or any of its property under an agreement that has been entered into for the Disposition of all or substantially all of the outstanding Equity Interests of or assets of such Restricted Subsidiary or for the Disposition of such property, provided that such Disposition is otherwise permitted hereunder;

 

(g)                                  restrictions contained in any agreement governing Indebtedness of any Foreign Subsidiary, which restrictions are not applicable to any Person, or the properties or assets of any Person other than such Foreign Subsidiary and its Subsidiaries;

 

(h)                                 encumbrances or restrictions contained in the Organization Documents of Joint Ventures permitted by Section 9.03 restricting the Disposition or distribution of assets or Property of such Joint Venture, if such encumbrances or restrictions are not applicable to the Property or assets of any other Person;

 

(i)                                     restrictions imposed by any Governmental Authority or under any Governmental Requirement; and

 

(j)                                    restrictions imposed by any agreement relating to secured Indebtedness permitted by Sections 9.01 and 9.02 if such restrictions apply only to the property or assets securing such Indebtedness.

 

Section 9.16                             Prepayments.  Each of Parent and the Borrower will not, and will not permit any of its Restricted Subsidiaries to, voluntarily prepay, redeem or purchase prior to the stated maturity thereof (a) any Indebtedness incurred pursuant to Section 9.01(f) or any Indebtedness that is subordinated in right of payment to the Secured Obligations (other than in connection with a permitted refinancing of such Indebtedness in accordance with this Agreement or with the proceeds from the issuance of additional common Equity Interests of Parent on a substantially contemporaneous basis with such issuance) unless there is no Default or Event of Default at the time thereof and, after giving pro forma effect to such prepayment, redemption or purchase (as if such prepayment, redemption or purchase occurred on the last day of the applicable Testing Period), the Senior Secured Leverage Ratio is less than 2.50 to 1.00 or (b) any Permitted Term Loan Refinancing Indebtedness (other than with the proceeds of any Qualified Unsecured Indebtedness Offerings or Qualified Equity Issuances); provided, that the Borrower may voluntarily prepay, redeem or purchase Permitted Term Loan Refinancing Indebtedness if after giving effect to such voluntary prepayment, redemption or purchase, (A) the Aggregate Revolving Commitments exceeds the Total Revolving Credit Exposure by not less than $300,000,000 (and the conditions to borrowing set forth in Section 6.03 are satisfied at such time), and (B) the Borrower is in compliance on a pro forma basis with the financial covenants contained in Section 9.10 that are applicable at such time as of the last day of the most recently ended Testing Period for which financial statements are available after giving pro forma effect to any such voluntary prepayment, redemption or purchase.

 

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Section 9.17                             Amendments to Permitted Term Loan Refinancing Indebtedness Documents.  To the extent any Permitted Term Loan Refinancing Indebtedness is outstanding, each of Parent and the Borrower will not, and will not permit any of its Restricted Subsidiaries to, amend, modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other change to any of the terms of the Permitted Term Loan Refinancing Indebtedness Documents other than amendments or other modifications that are permitted under the Term Loan Refinancing Intercreditor Agreement.

 

ARTICLE X
 Events of Default; Remedies

 

Section 10.01                      Events of Default.  The occurrence of any one or more of the following events which continue beyond any applicable cure period shall constitute an “Event of Default”:

 

(a)                                 the Borrower shall default in the payment or prepayment when due of any principal of or interest on any Loan, or any reimbursement obligation for a disbursement made under any Letter of Credit, or any fees or other amount payable by it hereunder or under any other Loan Document and such default, other than a default of a payment or prepayment of principal (which shall have no cure period), shall continue unremedied for a period of five (5) Business Days;

 

(b)                                 Parent or any Restricted Subsidiary shall default in the payment when due of any principal of or interest on any of its other Indebtedness aggregating $50,000,000 or more and such default extends beyond any applicable grace period with respect thereto, or any event or condition occurs that results in such Indebtedness becoming due prior to its scheduled maturity or that requires such Indebtedness to be prepaid, repurchased or redeemed prior to its scheduled maturity, or that enables or permits the holder or holders of such Indebtedness or any trustee or agent on its or their behalf to cause such Indebtedness to become due prior to its scheduled maturity;

 

(c)                                  any representation, warranty or certification made or deemed made herein or in any Security Instrument by Parent or any Subsidiary, or any certificate furnished by or on behalf of Parent or any Subsidiary to any Lender or the Administrative Agent pursuant to the provisions hereof or any Security Instrument, shall prove to have been false or misleading in any material respect as of the time made or furnished, and such false or misleading representation, warranty or certification shall continue unremedied for a period of thirty (30) days after a Responsible Officer of the Borrower has actual knowledge that such representation, warranty or certification was false or misleading when made;

 

(d)                                 (i) any Loan Party shall default in the performance of any of its obligations contained in Section 8.01(e) or ARTICLE IX (other than Section 9.14); (ii) any Loan Party shall default in the performance of any of its obligations contained in Section 8.06(b) or Section 9.14 and such default shall continue unremedied for a period of five (5) Business Days after the earlier to occur of (A) notice thereof to the Borrower by the Administrative Agent or any Lender (through the Administrative Agent), and (B) a Responsible Officer of the Borrower otherwise becoming aware of such default; or (iii) any Loan Party shall default in the performance of any of its obligations under this Agreement (other than those specified in clauses (a), (d)(i) and d(ii) of this Section 10.01) or any Security Instrument and such default shall continue unremedied for a period of thirty (30) days after the earlier to occur of (A) notice thereof to the Borrower by the Administrative Agent or any Lender (through the Administrative Agent), and (B) a Responsible Officer of the Borrower otherwise becoming aware of such default;

 

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(e)                                  Parent, the Borrower, any Significant Domestic Subsidiary or any Significant Foreign Subsidiary shall admit in writing its inability to, or be generally unable to, pay its debts as such debts become due;

 

(f)                                   Parent, the Borrower, any Significant Domestic Subsidiary or any Significant Foreign Subsidiary shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its Property, (ii) make a general assignment for the benefit of its creditors, (iii) commence a voluntary case under the Bankruptcy Code, (iv) file a petition seeking to take advantage of any other law relating to bankruptcy, insolvency, reorganization, winding-up, liquidation or composition or readjustment of debts, (v) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed against it in an involuntary case under the Bankruptcy Code or (vi) take any corporate action for the purpose of effecting any of the foregoing;

 

(g)                                  a proceeding or case shall be commenced, without the application or consent of Parent, the Borrower, any Significant Domestic Subsidiary or any Significant Foreign Subsidiary, in any court of competent jurisdiction, seeking (i) its liquidation, reorganization, dissolution or winding-up, or the composition or readjustment of its debts, (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of Parent, the Borrower, any Significant Domestic Subsidiary or any Significant Foreign Subsidiary or all or any substantial part of its assets, or (iii) similar relief in respect of Parent, the Borrower, any Significant Domestic Subsidiary or any Significant Foreign Subsidiary under any law relating to bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of debts, and such proceeding or case shall continue undismissed, or an order, judgment or decree approving or ordering any of the foregoing shall be entered and continue unstayed and in effect, for a period of 60 days; or (iv) an order for relief against Parent, the Borrower, any Significant Domestic Subsidiary or any Significant Foreign Subsidiary shall be entered in an involuntary case under the Bankruptcy Code;

 

(h)                                 a judgment or judgments for the payment of money (net of insurance coverage) aggregating $50,000,000 or more at any one time outstanding shall be rendered by a court of competent jurisdiction against Parent or any Restricted Subsidiary and the same shall not be discharged (or provision shall not be made for such discharge), or a stay of execution thereof shall not be procured, within sixty (60) days from the date of entry thereof and Parent or such Restricted Subsidiary shall not, within said period of 60 days, or such longer period during which execution of the same shall have been stayed, appeal therefrom and cause the execution thereof to be stayed during such appeal;

 

(i)                                     the Loan Documents after delivery thereof shall for any reason, except to the extent permitted by the terms hereof or thereof, cease to be in full force and effect and valid, binding and enforceable in accordance with their terms, or Parent or any Restricted Subsidiary shall so state in writing or, with respect to the Term Loan Refinancing Intercreditor Agreement, any Person (other than the Administrative Agent) that is a party thereto shall so state in writing;

 

(j)                                    any of the Security Instruments shall cease to create a valid and perfected Lien of the priority required thereby on any of the Collateral purported to be covered thereby, except to the extent permitted by the terms hereof or thereof, or Parent or any Restricted Subsidiary shall so state in writing;

 

(k)                                 a Change in Control shall occur; or

 

(l)                                     an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in liability of any Loan Party in an aggregate amount exceeding $50,000,000 for all periods.

 

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Section 10.02                      Remedies.

 

(a)                                 In the case of an Event of Default other than one referred to in clause (f) or (g) of Section 10.01, the Administrative Agent, at the request of the Majority Lenders, shall, by notice to the Borrower, cancel the Commitments and/or declare the principal amount then outstanding of, and the accrued interest on, the Loans and all other amounts payable by the Borrower hereunder and under the Notes (including without limitation the payment of cash collateral to secure the LC Exposure as provided in Section 2.07(e)) to be forthwith due and payable, whereupon such amounts shall be immediately due and payable without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other formalities of any kind, all of which are hereby expressly waived by the Borrower.

 

(b)                                 In the case of the occurrence of an Event of Default referred to in clause (f) or (g) of Section 10.01, the Commitments shall be automatically canceled and the principal amount then outstanding of, and the accrued interest on, the Loans and all other amounts payable by the Borrower hereunder and under the Notes (including without limitation, the payment of cash collateral to secure the LC Exposure as provided in Section 2.07(e)) shall become automatically immediately due and payable without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other formalities of any kind, all of which are hereby expressly waived by the Borrower.

 

(c)                                  All proceeds realized from the liquidation or other Disposition of Collateral or otherwise received after maturity of the Loans, whether by acceleration or otherwise, shall be applied:

 

(i)                                     first, pro rata to payment or reimbursement of that portion of the Secured Obligations constituting fees, expenses and indemnities and other amounts payable to the Administrative Agent in its capacity as such and each Issuing Bank it its capacity as such;

 

(ii)                                  second, pro rata to payment or reimbursement of that portion of the Secured Obligations constituting fees, expenses and indemnities and other amounts (other than principal, interest and fees) payable to the Lenders provided for in this Agreement and the other Loan Documents;

 

(iii)                               third, pro rata to payment of accrued interest on the Loans;

 

(iv)                              fourth, pro rata to payment of that portion of the Secured Obligations constituting (A) principal outstanding on the Loans, (B) unreimbursed LC Disbursements, (C) unpaid obligations owing to each Secured Hedging Provider under any Hedging Agreement, (D) unpaid obligations owing to a Secured Treasury Management Counterparty under any Treasury Management Agreement and (E) unpaid obligations owing to a Secured LC Provider under any letter of credit facility permitted under Section 9.01(t);

 

(v)                                 fifth, to serve as cash collateral to be held by the Administrative Agent to secure the LC Exposure;

 

(vi)                              sixth, pro rata to any other Secured Obligations; and

 

(vii)                           seventh, any excess shall be paid to the Borrower or as otherwise required by any Governmental Requirement. Notwithstanding the foregoing, amounts received from any Loan Party that is not an “eligible contract participant” at the relevant time under the Commodity Exchange Act or any regulations promulgated thereunder (and any proceeds received in respect of such Loan Party’s Collateral) shall not be applied to Excluded Hedging Obligations with respect to any Loan Party, provided, however that the Administrative Agent shall make such adjustments as it determines are appropriate with respect to payments received from the other Loan Parties (or proceeds received in respect of such other Loan Parties’ Collateral) to preserve, as nearly as possible, the allocation to Indebtedness otherwise set forth above in this Section 10.02.

 

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(d)                                 Acceleration and termination of all Hedging Agreements and Treasury Management Agreements involving the Administrative Agent or Lenders or the Lender Affiliates shall be governed by the terms of such Hedging Agreements and Treasury Management Agreements.

 

ARTICLE XI
 The Agents

 

Section 11.01                      Appointment; Powers.  Each of the Lenders and the Issuing Banks hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof and the other Loan Documents, together with such actions and powers as are reasonably incidental thereto.

 

Section 11.02                      Duties and Obligations of Administrative Agent.  The Administrative Agent shall not have any duties or obligations except those expressly set forth in the Loan Documents.  Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing (the use of the term “agent” herein and in the other Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law; rather, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties), (b) the Administrative Agent shall have no duty to take any discretionary action or exercise any discretionary powers, except as provided in Section 11.03, and (c) except as expressly set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to Parent or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Borrower or a Lender, and shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or under any other Loan Document or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or in any other Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, (v) the satisfaction of any condition set forth in ARTICLE VI or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent or as to those conditions precedent expressly required to be to the Administrative Agent’s satisfaction, (vi) the existence, value, perfection or priority of any collateral security or the financial or other condition of Parent and its Subsidiaries or any other obligor or guarantor, or (vii) any failure by Parent, the Borrower or any other Person (other than itself) to perform any of its obligations hereunder or under any other Loan Document or the performance or observance of any covenants, agreements or other terms or conditions set forth herein or therein.  For purposes of determining compliance with the conditions specified in ARTICLE VI, each Lender shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received written notice from such Lender prior to the proposed closing date specifying its objection thereto.  The Administrative Agent shall not be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Institutions.  Without limiting the generality of the foregoing, the Administrative Agent shall not (x) be obligated to ascertain, monitor or inquire as to whether any Lender or participant or prospective Lender or participant is a Disqualified Institution or (y) have any liability with respect to or arising out of any assignment or participation of Loans, or disclosure of confidential information, to any Disqualified Institution.

 

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Section 11.03                      Action by Administrative Agent.  The Administrative Agent shall have no duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise in writing as directed by the Majority Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 12.02) and in all cases the Administrative Agent shall be fully justified in failing or refusing to act hereunder or under any other Loan Documents unless it shall (a) receive written instructions from the Majority Lenders or the Lenders, as applicable, (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 12.02) specifying the action to be taken and (b) be indemnified to its satisfaction by the Lenders against any and all liability and expenses which may be incurred by it by reason of taking or continuing to take any such action.  The instructions as aforesaid and any action taken or failure to act pursuant thereto by the Administrative Agent shall be binding on all of the Lenders.  If a Default has occurred and is continuing, then the Administrative Agent shall take such action with respect to such Default as shall be directed by the requisite Lenders in the written instructions (with indemnities) described in this Section 11.03, provided that, unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default as it shall deem advisable in the best interests of the Lenders.  In no event, however, shall the Administrative Agent be required to take any action which exposes the Administrative Agent to personal liability or which is contrary to this Agreement, the Loan Documents or applicable law.  If a Default has occurred and is continuing, the Co-Syndication Agents shall have any obligation to perform any act in respect thereof.  The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Majority Lenders or the Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 12.02), and otherwise the Administrative Agent shall not be liable for any action taken or not taken by it hereunder or under any other Loan Document or under any other document or instrument referred to or provided for herein or therein or in connection herewith or therewith INCLUDING ITS OWN ORDINARY NEGLIGENCE, except for its own gross negligence or willful misconduct.

 

Section 11.04                      Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon and each of Parent, the Borrower, the Lenders and the Issuing Banks hereby waives the right to dispute the Administrative Agent’s record of such statement, except in the case of gross negligence or willful misconduct by the Administrative Agent.  The Administrative Agent may consult with legal counsel (who may be counsel for Parent or the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.  The Administrative Agent may deem and treat the payee of any Note as the holder thereof for all purposes hereof unless and until a written notice of the assignment or transfer thereof permitted hereunder shall have been filed with the Administrative Agent.

 

Section 11.05                      Subagents.  The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties.

 

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The exculpatory provisions of the preceding Sections of this ARTICLE XI shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

 

Section 11.06                      Resignation or Removal of Administrative Agent.

 

(a)                                 Subject to the appointment and acceptance of a successor Administrative Agent as provided in this Section 11.06, the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Banks and the Borrower.  Upon any such resignation, the Majority Lenders shall have the right (with, so long as no Event of Default has occurred and is continuing, the consent of the Borrower (such consent not to be unreasonably withheld, delayed or conditioned)) to appoint a successor.  If no successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor Administrative Agent.

 

(b)                                 Subject to the appointment and acceptance of a successor Administrative Agent as provided in this Section 11.06, if the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, (i) the Borrower may, by notice in writing to such Person and the Lenders and (ii) the Majority Lenders may, to the extent permitted by applicable law, by notice in writing to the Borrower and such Person, remove such Person as Administrative Agent.  In connection with any such removal, the Majority Lenders shall have the right (with, so long as no Event of Default has occurred and is continuing, the consent of the Borrower (such consent not to be unreasonably withheld, delayed or conditioned)) to appoint a successor.

 

(c)                                  Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Administrative Agent, and the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder.  The fees payable by Parent and the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between Parent or the Borrower and such successor.  After the Administrative Agent’s resignation or removal hereunder, the provisions of this ARTICLE XI and Section 12.03 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent.

 

Section 11.07                      Agents as Lenders.  Each bank serving as an Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with Parent or any Subsidiary or other Affiliate thereof as if it were not an Agent hereunder.

 

Section 11.08                      No Reliance.  Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent, any other Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and each other Loan Document to which it is a party.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent, any other Agent or any other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document, any related agreement or any document furnished hereunder or thereunder.

 

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The Agents shall not be required to keep themselves informed as to the performance or observance by Parent or any of its Subsidiaries of this Agreement, the Loan Documents or any other document referred to or provided for herein or to inspect the Properties or books of Parent or its Subsidiaries.  Except for notices, reports and other documents and information expressly required to be furnished to the Lenders by the Administrative Agent hereunder, neither any Agent nor the Joint Lead Arrangers shall have any duty or responsibility to provide any Lender with any credit or other information concerning the affairs, financial condition or business of Parent or the Borrower (or any of their Affiliates) which may come into the possession of such Agent or any of its Affiliates.  In this regard, each Lender acknowledges that Vinson & Elkins L.L.P. is acting in this transaction as special counsel to the Administrative Agent only, except to the extent otherwise expressly stated in any legal opinion or any Loan Document.  Each other party hereto will consult with its own legal counsel to the extent that it deems necessary in connection with the Loan Documents and the matters contemplated therein.

 

Section 11.09                      Administrative Agent May File Proofs of Claim.  In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to Parent or any of its Subsidiaries, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

 

(a)                                 to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Section 12.03) allowed in such judicial proceeding; and

 

(b)                                 to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Section 12.03.

 

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

 

Section 11.10                      Authority of Administrative Agent to Release Collateral and Liens.  Each Lender and each Issuing Bank hereby authorizes the Administrative Agent to release any collateral that is permitted to be sold or otherwise Disposed of or released pursuant to the terms of the Loan Documents.  Each Lender and each Issuing Bank hereby authorizes the Administrative Agent to execute and deliver to the Borrower, at the Borrower’s sole cost and expense, any and all releases of Liens, termination statements, assignments or other documents reasonably requested by the Borrower in connection with (a) any sale or other Disposition of Property to the extent such sale or other Disposition is permitted by the terms of Section 9.11 or is otherwise not prohibited by the terms of the Loan Documents and (b) the release of the Lien granted under the Guaranty and Collateral Agreement on Equity Interests owned by any Loan Party or a Restricted Subsidiary in a Joint Venture if and to the extent such Equity Interests are otherwise pledged to another Person as permitted by Section 9.02(g).

 

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Each Lender and each Issuing Bank hereby further authorizes the Administrative Agent to execute and deliver to the Borrower, at the Borrower’s sole cost and expense, any and all releases of Liens, termination statements, assignments or other documents reasonably requested by the Borrower upon the expiration or termination of the Commitments and the payment in full of all Loans hereunder, all interest thereon and all other amounts payable by the Borrower hereunder (other than indemnities and other contingent obligations not then due and payable and as to which no claim has been made at the time of determination) and the expiration or termination of all Letters of Credit (unless cash collateralized in accordance with Section 2.07(a)).

 

Section 11.11                      The Joint Lead Arrangers, the Joint Bookrunners, the Syndication Agent and the Co-Documentation Agents.  The Joint Lead Arrangers, the Joint Bookrunners, the Syndication Agent and the Co-Documentation Agents shall have no duties, responsibilities or liabilities under this Agreement and the other Loan Documents other than their duties, responsibilities and liabilities in their capacity as Lenders hereunder.

 

Section 11.12                      Authorization to Enter into Intercreditor Agreement.  The Administrative Agent is hereby authorized on behalf of the Lenders (for the Lenders and any of their Affiliates that are Secured Hedging Providers or holding other Secured Obligations) to enter into and perform the Term Loan Refinancing Intercreditor Agreement.  Each Lender acknowledges and agrees to the terms of the Term Loan Refinancing Intercreditor Agreement and agrees that the terms thereof shall be binding on such Lender, together with its successors and assigns, as if it were a party thereto.

 

ARTICLE XII
 Miscellaneous

 

Section 12.01                      Notices.

 

(a)                                 Except in the case of notices and other communications expressly permitted to be given by telephone or by electronic communication (and subject to paragraph (b) below), all notices and other communications provided for herein and in the other Loan Documents shall be in writing and shall be delivered by fax, courier, U.S. Mail or hand delivery to the intended recipient at (i) with respect to Parent, the Borrower and the Administrative Agent, the “Address for Notices” specified below its name on the signature pages hereof or in the other Loan Documents, except that for notices and other communications to the Administrative Agent other than payment of money, the Borrower need only send such notices and communications to the Administrative Agent care of the Houston address of the Administrative Agent and (ii) with respect to any other Lender, to it at its address (or facsimile number) set forth in its Administrative Questionnaire (or, in the case of notices to any such Lender by a Loan Party, to any address (or facsimile number) that such Lender has provided to Parent or the Borrower); or, as to any party, at such other address as shall be designated by such party in a notice to each other party.  Except as otherwise provided in this Agreement or in the other Loan Documents, all such communications shall be deemed to have been duly given when transmitted, if transmitted before 1:00 p.m. local time on a Business Day (otherwise on the next succeeding Business Day) by overnight courier, telex or facsimile and evidence or confirmation of receipt is obtained, or personally delivered or, in the case of a mailed notice, three (3) Business Days after the date deposited in the mails, postage prepaid, in each case given or addressed as aforesaid.

 

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(b)                                 Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent.  The Administrative Agent or any Loan Party may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

 

Section 12.02                      Waivers; Amendments.

 

(a)                                 No failure on the part of the Administrative Agent, any other Agent, any Issuing Bank or any Lender to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or privilege, or any abandonment or discontinuance of steps to enforce such right, power or privilege, under any of the Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege under any of the Loan Documents preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies of the Administrative Agent, any other Agent, any Issuing Bank and the Lenders hereunder and under the other Loan Documents 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 any other Loan Document or consent to any departure by Parent or the Borrower therefrom shall in any event be effective unless the same shall be permitted by Section 12.02(b), and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any other Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default at the time.

 

(b)                                 Neither this Agreement nor any provision hereof nor any provision of any Security Instrument may be amended, modified or waived except pursuant to an agreement or agreements in writing entered into by Parent, the Borrower and the Majority Lenders or by Parent, the Borrower and the Administrative Agent with the consent of the Majority Lenders; provided that (i) no amendment, modification or waiver that (A) forgives or reduces the principal amount of any Obligations or Letter of Credit reimbursement obligation outstanding under this Agreement shall be effective without the consent of each Lender adversely affected thereby, (B) releases all or substantially all of the Collateral (excluding Dispositions of Properties permitted hereunder) or the Guarantors shall be effective without the consent of each Lender (other than any Defaulting Lender) or (C) except as provided in Section 2.09, changes Section 4.01(b) or (c) or Section 10.02(c) in a manner that would alter the manner in which payments are shared or any other provision in this Agreement in a manner that would alter the pro rata sharing of payments among Lenders, changes Section 12.02, permits an Interest Period with a duration in excess of six (6) months or modifies the definitions of “Majority Lenders”, “Majority Revolving Lenders”, “Applicable Percentage”, “Applicable Revolving Percentage”, “Applicable Term Loan Percentage” or any other definition or provision hereof specifying the number or percentage of Lenders required to waive, amend, or modify any rights hereunder or under or under any other Loan Document shall be effective without consent of all Lenders; (ii) no amendment, modification or waiver which extends any scheduled payment date, the Term Loan Maturity Date or the Revolving Maturity Date, reduces the interest rate applicable to the Loans or the fees payable to the Lenders or extends the time for payment of such interest or fees shall be effective without the consent of each Lender adversely affected thereby (in lieu of the consent of the Majority Lenders); (iii) no amendment, modification or waiver which increases or extends the Commitment of any Lender shall be effective without the consent of such Lender; (iv) no amendment, modification or waiver which changes the terms of clause (b) of the definition of “Secured Obligations”, the definition of “Secured Hedging Provider”, the definition of “Secured Parties”, or any of the provisions of this Section 12.02(b) without the consent of each Lender that is, or is an Affiliate of, any such adversely affected Secured Hedging Provider and (v) no amendment, modification or waiver which modifies the rights, duties or obligations of the Administrative Agent, any Issuing Bank or the Swingline Lender hereunder or under any other Loan Document shall be effective without the consent of the Administrative Agent, such Issuing Bank or the Swingline Lender, as the case may be.

 

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Notwithstanding the foregoing, Schedule 1.02(b) may be amended to add an Issuing Bank, remove an Issuing Bank or modify the LC Issuance Limit of any Issuing Bank with the consent solely of Parent, the Borrower, the Administrative Agent and such Issuing Bank (and the consent of the Majority Lenders shall not be required).

 

Section 12.03                      Expenses, Indemnity; Damage Waiver.

 

(a)                                 The Borrower agrees:

 

(i)                                     whether or not the Transactions hereby contemplated are consummated, to pay all reasonable and documented expenses of the Administrative Agent in the administration (both before and after the execution hereof and including advice of counsel as to the rights and duties of the Administrative Agent and the Lenders with respect thereto) of, and in connection with the negotiation, syndication, investigation, preparation, execution and delivery of, recording or filing of, preservation of rights under, enforcement of, and refinancing, renegotiation or restructuring of, the Loan Documents and any amendment, waiver or consent, whether or not effective, relating thereto (including, without limitation, travel, photocopy, mailing, courier, telephone and other similar expenses of the Administrative Agent, ongoing Collateral monitoring and protection, Collateral releases and workout matters, the cost of environmental audits, surveys and appraisals, the reasonable and documented fees and disbursements of counsel and other outside consultants for the Administrative Agent and, in the case of enforcement, the reasonable fees and disbursements of counsel for the Administrative Agent and any of the Lenders (including the Swingline Lender)); and to promptly reimburse the Administrative Agent for all amounts expended, advanced or incurred by the Administrative Agent to satisfy any obligation of the Borrower under this Agreement or any Security Instrument, including without limitation, all costs and expenses of foreclosure;

 

(ii)                                  TO INDEMNIFY THE ADMINISTRATIVE AGENT, EACH ISSUING BANK AND EACH LENDER AND EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS (COLLECTIVELY, THE “INDEMNIFIED PARTIES”) AGAINST AND HOLD EACH OF THEM HARMLESS FROM ANY AND ALL LOSSES, CLAIMS, LIABILITIES, DAMAGES AND REASONABLE COSTS AND EXPENSES WHICH MAY BE INCURRED BY OR ASSERTED AGAINST ANY INDEMNIFIED PARTY (WHETHER OR NOT SUCH INDEMNIFIED PARTY IS DESIGNATED A PARTY THERETO AND WHETHER BROUGHT BY A THIRD PARTY OR A LOAN PARTY OR A RELATED PARTY THEREOF) AS A RESULT OF, ARISING OUT OF OR IN ANY WAY RELATED TO (A) ANY ACTUAL OR PROPOSED USE BY PARENT, THE BORROWER OF THE PROCEEDS OF ANY OF THE LOANS OR LETTERS OF CREDIT, (B) THE EXECUTION, DELIVERY AND PERFORMANCE OF THE LOAN DOCUMENTS, (C) THE OPERATIONS OF THE BUSINESS OF PARENT, THE BORROWER AND ITS SUBSIDIARIES, (D) THE FAILURE OF PARENT, THE BORROWER OR ANY SUBSIDIARY TO COMPLY WITH THE TERMS OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR WITH ANY GOVERNMENTAL REQUIREMENT, (E) ANY INACCURACY OF ANY REPRESENTATION OR ANY BREACH OF ANY WARRANTY OF PARENT, THE BORROWER OR ANY OTHER LOAN PARTY SET FORTH IN ANY OF THE LOAN DOCUMENTS, (F) THE ISSUANCE, EXECUTION AND DELIVERY OR TRANSFER OF ANY LETTER OF CREDIT, (G) ANY REFUSAL BY ANY ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF SUCH LETTER OF CREDIT, (H) THE PAYMENT OF A DRAWING UNDER ANY LETTER OF CREDIT NOTWITHSTANDING THE NON-COMPLIANCE, NON-DELIVERY OR OTHER IMPROPER PRESENTATION OF THE MANUALLY EXECUTED DRAFT(S) AND CERTIFICATION(S), (I) ANY ASSERTION THAT THE LENDERS WERE NOT ENTITLED TO RECEIVE THE PROCEEDS OF COLLATERAL RECEIVED PURSUANT TO THE SECURITY INSTRUMENTS AND OTHER LOAN DOCUMENTS OR (J) ANY OTHER ASPECT OF THE LOAN DOCUMENTS, INCLUDING, WITHOUT LIMITATION, THE REASONABLE FEES AND DISBURSEMENTS OF COUNSEL AND ALL OTHER EXPENSES INCURRED IN CONNECTION WITH INVESTIGATING, DEFENDING OR PREPARING TO DEFEND ANY ACTION, SUIT, PROCEEDING (INCLUDING ANY INVESTIGATIONS, LITIGATION OR INQUIRIES) OR CLAIM RELATING TO ANY OF THE FOREGOING, AND INCLUDING ANY SUCH LOSSES, CLAIMS, LIABILITIES, DAMAGES AND REASONABLE COSTS AND EXPENSES ARISING BY REASON OF THE ORDINARY NEGLIGENCE OF ANY INDEMNIFIED PARTY; PROVIDED THAT THE FOREGOING INDEMNITY SHALL NOT, AS TO ANY INDEMNIFIED PARTY, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, LIABILITIES, DAMAGES AND REASONABLE COSTS AND EXPENSES (X) ARISE SOLELY BY REASON OF CLAIMS BETWEEN THE LENDERS NOT INVOLVING (1) A NEGLIGENT OR WRONGFUL ACT OR OMISSION OR A BREACH OF THE LOAN DOCUMENTS BY PARENT, THE BORROWER OR ANY OF THEIR RELATED PARTIES OR (2) A CLAIM AGAINST THE ADMINISTRATIVE AGENT, SWINGLINE LENDER OR ANY ISSUING BANK IN SUCH CAPACITY OR (Y) BY REASON OF THE GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR BAD FAITH ON THE PART OF SUCH INDEMNIFIED PARTY OR THE MATERIAL BREACH OF SUCH INDEMNIFIED PARTY’S OBLIGATIONS UNDER THE LOAN DOCUMENTS, IN EACH CASE, AS DETERMINED IN A FINAL NONAPPEALABLE DECISION OF A COURT OF COMPETENT JURISDICTION; AND

 

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(iii)                               TO INDEMNIFY AND HOLD HARMLESS FROM TIME TO TIME THE INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL LOSSES, CLAIMS, LIABILITIES, DAMAGES AND REASONABLE COSTS AND EXPENSES TO WHICH ANY SUCH PERSON MAY BECOME SUBJECT (A) UNDER ANY ENVIRONMENTAL LAW APPLICABLE TO PARENT, THE BORROWER OR ANY SUBSIDIARY OR ANY OF THEIR PROPERTIES, INCLUDING WITHOUT LIMITATION, THE TREATMENT OR DISPOSAL OF HAZARDOUS MATERIALS ON ANY OF THEIR PROPERTIES, (B) AS A RESULT OF THE BREACH OR NON-COMPLIANCE BY PARENT, THE BORROWER OR ANY SUBSIDIARY WITH ANY ENVIRONMENTAL LAW APPLICABLE TO PARENT, THE BORROWER OR ANY SUBSIDIARY, (C) DUE TO PAST OWNERSHIP BY PARENT, THE BORROWER OR ANY SUBSIDIARY OF ANY OF THEIR PROPERTIES OR PAST ACTIVITY ON ANY OF THEIR PROPERTIES WHICH, THOUGH LAWFUL AND FULLY PERMISSIBLE AT THE TIME, COULD RESULT IN PRESENT LIABILITY, (D) THE PRESENCE, USE, RELEASE, STORAGE, TREATMENT OR DISPOSAL OF HAZARDOUS MATERIALS ON OR AT ANY OF THE PROPERTIES OWNED OR OPERATED BY PARENT, THE BORROWER OR ANY SUBSIDIARY, OR (E) ANY OTHER ENVIRONMENTAL, HEALTH OR SAFETY CONDITION IN CONNECTION WITH THE LOAN DOCUMENTS; PROVIDED, HOWEVER, NO INDEMNITY SHALL BE AFFORDED UNDER THIS SECTION 12.03(A)(III) IN RESPECT OF ANY PROPERTY FOR ANY OCCURRENCE ARISING FROM THE ACTS OR OMISSIONS OF ANY INDEMNIFIED PARTY AFTER THE DATE ON WHICH PARENT, THE BORROWER OR ANY SUBSIDIARY IS DIVESTED OF OWNERSHIP OF SUCH PROPERTY (WHETHER BY FORECLOSURE OR DEED IN LIEU OF FORECLOSURE, AS MORTGAGEE-IN-POSSESSION OR OTHERWISE) OR, TO THE EXTENT SUCH LOSSES, CLAIMS, LIABILITIES, DAMAGES AND REASONABLE COSTS AND EXPENSES ARISE BY REASON OF THE GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR BAD FAITH ON THE PART OF SUCH INDEMNIFIED PARTY OR THE MATERIAL BREACH OF SUCH INDEMNIFIED PARTY’S OBLIGATIONS UNDER THE LOAN DOCUMENTS, IN EACH CASE, AS DETERMINED IN A FINAL NONAPPEALABLE DECISION OF A COURT OF COMPETENT JURISDICTION.

 

(b)                                 To the extent that the Borrower fails to pay any amount required to be paid by it to any Agent, the Joint Lead Arrangers, any Issuing Bank or the Swingline Lender under Section 12.03(a), but without affecting such payment obligations of the Borrower, each Lender severally agrees to pay to such Agent or the Joint Lead Arrangers and each Lender severally agrees to pay such Issuing Bank or the Swingline Lender, as the case may be, such Lender’s pro rata portion or such Lender’s Applicable Percentage, as the case may be, (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against such Agent, the Joint Lead Arrangers, such Issuing Bank or the Swingline Lender in its capacity as such.

 

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(c)                                  No Indemnified Party may settle any claim to be indemnified without the consent of the indemnitor, such consent not to be unreasonably withheld; provided, that the indemnitor may not reasonably withhold consent to any settlement that an Indemnified Party proposes, if the indemnitor does not have the financial ability to pay all its obligations outstanding and asserted against the indemnitor at that time, including the maximum potential claims against the Indemnified Party to be indemnified pursuant to this Section 12.03.

 

(d)                                 In the case of any indemnification hereunder, the Administrative Agent or Lender, as appropriate shall give notice to the Borrower of any such claim or demand being made against the Indemnified Party and the Borrower shall have the non-exclusive right to join in the defense against any such claim or demand provided that if the Borrower provides a defense, the Indemnified Party shall bear its own cost of defense unless there is a conflict between the Borrower and such Indemnified Party.

 

(e)                                  SUBJECT TO THE LIMITATIONS DESCRIBED HEREIN, THE FOREGOING INDEMNITIES SHALL EXTEND TO THE INDEMNIFIED PARTIES NOTWITHSTANDING THE SOLE OR CONCURRENT NEGLIGENCE OF EVERY KIND OR CHARACTER WHATSOEVER, WHETHER ACTIVE OR PASSIVE, WHETHER AN AFFIRMATIVE ACT OR AN OMISSION, INCLUDING WITHOUT LIMITATION, ALL TYPES OF NEGLIGENT CONDUCT IDENTIFIED IN THE RESTATEMENT (SECOND) OF TORTS OF ONE OR MORE OF THE INDEMNIFIED PARTIES OR BY REASON OF STRICT LIABILITY IMPOSED WITHOUT FAULT ON ANY ONE OR MORE OF THE INDEMNIFIED PARTIES.  To the extent that an Indemnified Party is found by a final nonappealable judgment of a court of competent jurisdiction to have committed an act of gross negligence, willful misconduct or bad faith or to have materially breached such Indemnified Party’s obligations under the Loan Documents, the contractual obligation of indemnification set forth in this Section 12.03 shall continue but shall only extend to the portion of the claim that is deemed to have occurred by reason of events other than the gross negligence, willful misconduct or bad faith of the Indemnified Party or the material breach of such Indemnified Party’s obligations under the Loan Documents.  This Section 12.03 shall not apply to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

(f)                                   The Borrower’s obligations under this Section 12.03 shall survive any termination of this Agreement and the payment of the Notes and shall continue thereafter in full force and effect.

 

(g)                                  The Borrower shall pay any amounts due under this Section 12.03 within thirty (30) days of the receipt by the Borrower of notice of the amount due.

 

Section 12.04                      Successors and Assigns.

 

(a)                                 This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

(b)                                 Neither Parent nor the Borrower may assign its rights or obligations hereunder or under the Notes or any Letters of Credit without the prior consent of all of the Lenders and the Administrative Agent (other than an assignment by the Borrower of any of its obligations hereunder in respect of Loans made to it as consideration for Property Disposed of pursuant to Section 9.11(c), so long as such obligations are repaid immediately after giving effect to such assignment).

 

(c)                                  Any Lender may assign to one or more assignees, all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitments or Loans) pursuant to an Assignment and Assumption substantially in the form of Exhibit E upon the written consent (which consent shall not be unreasonably withheld or delayed) of (A) the Administrative Agent and the Issuing Bank, provided that no such consent shall be required for an assignment to an assignee that is an Affiliate of such Lender or a Lender immediately prior to giving effect to such assignment and (B) the Borrower, provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within ten (10) Business Days after having received notice thereof, and provided further that no such consent shall be required for an assignment to an assignee that is an Affiliate of such Lender or a Lender immediately prior to giving effect to such assignment, or if an Event of Default has occurred and is continuing, any other assignee; provided, however, that (i) any such assignment shall be in the amount of at least $5,000,000 (or the remaining portion of the assigning Lender’s rights and obligations under this Agreement or the remaining portion of such Lender’s Revolving Commitment or Term Loans, as applicable) or such lesser amount to which the Borrower and the Administrative Agent has consented; (ii) the assignee or assignor shall pay to the Administrative Agent a processing and recordation fee of $3,500 for each assignment that is not to an Affiliate of such assignor; (iii) any assignee shall not be a Disqualified Institution; (iv) any assignee shall not be a natural Person; and (v) no such assignment shall be to Parent, the Borrower or either of their respective Subsidiaries or Affiliates.  

 

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Any such assignment will become effective upon the execution and delivery to the Administrative Agent of the applicable Assignment and Assumption and the consents required above.  Promptly after receipt of an executed Assignment and Assumption, the Administrative Agent shall send to the Borrower a copy of such executed Assignment and Assumption.  Upon receipt of such executed Assignment and Assumption, if requested by the applicable assignor and/or assignee, the Borrower, will, at its own expense, execute and deliver new Notes to each assignor and/or assignee, as appropriate, in accordance with their respective interests as they appear after giving effect to such Assignment and Assumption.  Upon the effectiveness of any assignment pursuant to this Section 12.04(c), the assignee will become a “Lender,” if not already a “Lender,” for all purposes of this Agreement and the Security Instruments.  The assignor shall be relieved of its obligations hereunder to the extent of such assignment (and if the assigning Lender no longer holds any rights or obligations under this Agreement, such assigning Lender shall cease to be a “Lender” hereunder except that its rights under Sections 5.01, 5.02, 5.03 and this Section 12.04 shall not be affected).  The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Class and principal amount (and stated interest) of the Loans and LC Exposure owing to each Lender pursuant to the terms hereof from time to time (the “Register”).  Upon its receipt of an Assignment and Assumption in compliance with the requirements of this Section together with any other documents or certificates required to be delivered hereunder or reasonably requested by the Administrative Agent, and including any fees payable with respect to such assignment, the Administrative Agent shall accept such Assignment and Assumption and record it in the Register.  The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent, the Issuing Bank and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register.

 

(d)                                 Each Lender may transfer, grant or assign participations in all or any part of such Lender’s interests hereunder pursuant to this Section 12.04(d) to any Person that satisfies the requirements of Section 12.04(c)(iii), provided that:  (A) such Lender shall remain a “Lender” for all purposes of this Agreement and the transferee of such participation shall not constitute a “Lender” hereunder; (B) such Lender’s obligations under this Agreement shall remain unchanged, (C) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (D) the Borrower, the Administrative Agent, the Issuing Banks and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and (E) no participant under any such participation shall have rights to approve any amendment to or waiver of any of the Loan Documents; provided that such participation agreement may provide that such Lender will not, without the consent of such participant, agree to any amendment, modification or waiver described in clauses (i), (ii) or (iii) of the proviso to Section 12.02(b) that affects such participant, and all amounts payable by the Borrower hereunder shall be determined as if such Lender had not sold such participation.

 

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In addition, each agreement creating any participation must include an agreement by the participant to be bound by the provisions of Section 12.11.  Subject to Section 12.04(e), each participant shall be entitled to receive additional amounts under Sections 5.01, 5.02 and 5.03 on the same basis as if it were a Lender that had acquired its interest by assignment pursuant to Section 12.04(c) and be indemnified under Section 12.03 as if it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person except to the extent that such disclosure is necessary to establish that such Loans or other obligations under the Loan Documents are in registered form for United States federal income tax purposes.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

(e)                                  No participant under any participation agreement shall be entitled to receive any greater payment under Section 5.01 or Section 5.03 than the applicable Lender would have been entitled to receive with respect to the participation sold to such participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent or such entitlement to receive a greater payment results from a Change in Law that occurs after the participant acquired the applicable participation.  A participant shall not be entitled to the benefits of Section 5.03 unless the Borrower is notified of the participation sold to such participant and such participant agrees, for the benefit of the Borrower, to comply with Section 5.03 (it being understood that the documentation required under Section 5.03(g) shall be delivered to a participating Lender) and be subject to Section 5.04 as though it were a Lender.

 

(f)                                   The Lenders may furnish any information concerning the Borrower in the possession of the Lenders from time to time to assignees and participants (including prospective assignees and participants); provided that, such Persons agree to be bound by the provisions of Section 12.11.

 

(g)                                  Notwithstanding anything in this Section 12.04 to the contrary, any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including, without limitation, any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

(h)                                 Notwithstanding any other provisions of this Section 12.04, no transfer or assignment of the interests or obligations of any Lender or any grant of participations therein shall be permitted if such transfer, assignment or grant would require the Borrower to file a registration statement with the SEC or to qualify the Loans under the “Blue Sky” laws of any state.

 

(i)                                     Disqualified Institutions.

 

(i)                                     No assignment or participation shall be made to any Person that was a Disqualified Institution as of the date (the “Trade Date”) on which the assigning Lender entered into a binding agreement to sell and assign all or a portion of its rights and obligations under this Agreement to such Person (unless the Borrower has consented to such assignment in writing in its sole and absolute discretion, in which case such Person will not be considered a Disqualified Institution for the purpose of such assignment or participation).

 

109

 

For the avoidance of doubt, with respect to any assignee that becomes a Disqualified Institution after the applicable Trade Date (including as a result of the delivery of a notice pursuant to, and/or the expiration of the notice period referred to in, the definition of “Disqualified Institution”), (x) such assignee shall not retroactively be disqualified from becoming a Lender and (y) the execution by the Borrower of an Assignment and Assumption with respect to such assignee will not by itself result in such assignee no longer being considered a Disqualified Institution. Any assignment in violation of this Section 12.04(i)(i) shall not be void, but the other provisions of this Section 12.04(i) shall apply.

 

(ii)                                  If any assignment or participation is made to any Disqualified Institution without the Borrower’s prior written consent in violation of clause (i) above, or if any Person becomes a Disqualified Institution after the applicable Trade Date, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Institution and the Administrative Agent, (A) terminate any Commitment of such Disqualified Institution and repay all obligations of the Borrower owing to such Disqualified Institution hereunder, and/or (B) require such Disqualified Institution to assign, without recourse (in accordance with and subject to the restrictions contained in this Section 12.04), all of its interest, rights and obligations under this Agreement to one or more assignees otherwise meeting the criteria set forth in Section 12.04(c) at the lesser of (x) the principal amount thereof and (y) the amount that such Disqualified Institution paid to acquire such interests, rights and obligations, in each case plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to it hereunder.

 

(iii)                               Notwithstanding anything to the contrary contained in this Agreement, Disqualified Institutions (A) will not (x) have the right to receive information, reports or other materials provided to Lenders by the Borrower, the Administrative Agent or any other Lender, (y) attend or participate in meetings attended by the Lenders and the Administrative Agent, or (z) access any electronic site established for the Lenders or confidential communications from counsel to or financial advisors of the Administrative Agent or the Lenders and (B) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) under this Agreement or any other Loan Document, each Disqualified Institution will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Institutions consented to such matter.

 

Section 12.05                      Survival; Revival; Reinstatement.

 

(a)                                 All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, any other Agent, any Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding (except to the extent described in Section 2.07(a)) and so long as the Commitments have not expired or terminated.  The provisions of Sections 3.02 (including the agreements with respect to the definition of “Applicable Margin”), 5.01, 5.02 and 5.03, ARTICLE XI and Section 12.03 shall survive and remain in full force and effect regardless of the consummation of the Transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement, any other Loan Document or any provision hereof or thereof.

 

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(b)                                 To the extent that any payments on the Obligations or proceeds of any Collateral are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver or other Person under any bankruptcy law, common law or equitable cause, then to such extent, the Obligations so satisfied shall be revived and continue as if such payment or proceeds had not been received and the Administrative Agent’s and the Lenders’ Liens, security interests, rights, powers and remedies under this Agreement and each Loan Document shall continue in full force and effect.  In such event, each Loan Document shall be automatically reinstated and Parent and the Borrower shall take such action as may be reasonably requested by the Administrative Agent and the Lenders to effect such reinstatement.

 

Section 12.06                      Counterparts; Integration; Effectiveness.

 

(a)                                 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 one and the same instrument.

 

(b)                                 This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

(c)                                  Except as provided in Section 6.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement.

 

Section 12.07                      Severability.  Any provision of this Agreement or any other Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

Section 12.08                      Right of Setoff.  The Borrower agrees that, in addition to (and without limitation of) any right of set-off, bankers’ lien or counterclaim a Lender may otherwise have, each Lender shall have the right and be entitled (after consultation with the Administrative Agent), at its option, to offset balances held by it or by any of its Affiliates for account of the Borrower at any of its offices, in US Dollars or in any other currency, against any principal of or interest on any of such Lender’s Loans, or any other amount payable to such Lender hereunder, which is not paid when due (including applicable grace periods) (regardless of whether such balances are then due to the Borrower), in which case it shall promptly notify the Borrower and the Administrative Agent thereof, provided that such Lender’s failure to give such notice shall not affect the validity thereof.  

 

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Notwithstanding anything to the contrary contained in this Agreement, the Lenders hereby agree that they shall not set off any funds in any lock boxes whatsoever in connection with this Agreement, except for such lock boxes which may be established in connection with this Agreement.

 

Section 12.09                      Governing Law; Jurisdiction; Consent to Service of Process.

 

(A)                               THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS EXCEPT TO THE EXTENT THAT UNITED STATES FEDERAL LAW PERMITS ANY LENDER TO CHARGE INTEREST AT THE RATE ALLOWED BY THE LAWS OF THE STATE WHERE SUCH LENDER IS LOCATED.  CH. 346 OF THE TEXAS FINANCE CODE (WHICH REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRI-PARTY ACCOUNTS) SHALL NOT APPLY TO THIS AGREEMENT OR THE NOTES.

 

(B)                               ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THE LOAN DOCUMENTS SHALL BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS SITTING IN HARRIS COUNTY OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF TEXAS, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HERETO HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS.  THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE ANY PARTY HERETO FROM OBTAINING JURISDICTION ANY OTHER PARTY HERETO IN ANY COURT OTHERWISE HAVING JURISDICTION.

 

(C)                               EACH PARTY HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY AT ITS ADDRESS LOCATED ON THE SIGNATURE PAGE HERETO OR AS UPDATED FROM TIME TO TIME, SUCH SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING.

 

(D)                               NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY HERETO OR ANY HOLDER OF A NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY OTHER PARTY HERETO IN ANY OTHER JURISDICTION.

 

(E)                                EACH PARTY HERETO HEREBY (I) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN; (II) IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; (III) CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OF THE ADMINISTRATIVE AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS, AND (IV) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION 12.09.

 

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Section 12.10                      Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

 

Section 12.11                      Confidentiality.  For the purposes of this Section 12.11, “Confidential Information” means information about Parent, the Borrower or any of its Subsidiaries furnished by Parent, the Borrower or its Affiliates (collectively, the “Disclosing Parties”) to the Administrative Agent or any of the Lenders, including, but not limited to, any actual or pending agreement, business plans, budgets, projections, ecological data and accounting records, financial statements, or other financial data of any kind, any title documents, reports or other information relating to matters of title, any projects or plans, whether actual or prospective, and any other documents or items embodying any such Confidential Information; provided that such term does not include information that (a) was publicly known or otherwise known prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by the Administrative Agent or the Lenders or any Person acting on behalf thereof, (c) otherwise becomes known to the Administrative Agent or Lenders other than through disclosure by the Disclosing Parties or a party known to be subject to a confidentiality agreement or (d) constitutes financial statements delivered to the Administrative Agent and the Lenders under Section 8.01(a) that are otherwise publicly available.  The Administrative Agent and the Lenders will maintain the confidentiality of such Confidential Information delivered to such Person, provided that each such Person (a “Restricted Person”) may deliver or disclose Confidential Information to (i) such Restricted Person’s directors, officers, employees, accountants, attorneys, other professional advisors, trustees and Affiliates, who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 12.11, (ii) any other party to any Loan Document, (iii) any pledgee referred to in Section 12.04, any potential assignee or any assignee to which such Restricted Person sells or offers to sell its Note or any part thereof or any participation or potential participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by confidentiality provisions at least as restrictive as the provisions of this Section 12.11), (iv) any Governmental Authority having jurisdiction or any self-regulatory body claiming to have authority over such Restricted Person, (v) on a confidential basis to the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to this Agreement and the Loans hereunder, or (vi) any other Person to which such delivery or disclosure may be necessary or appropriate (A) to effect compliance with any Governmental Requirement applicable to such Restricted Person or to the extent required by applicable laws or regulations, (B) in response to any subpoena or other legal process; provided that, with respect to clause (vi) of this Section 12.11, such Restricted Person (I) promptly notifies such Disclosing Party prior to any such disclosure to the extent practicable and permitted by law, (II) reasonably cooperates with such Disclosing Party in any attempts such Disclosing Party makes to obtain a protective order or other appropriate assurance that confidential treatment will be afforded to the Confidential Information, and (III) if no such protective order is obtained and disclosure is required, furnish only that portion of the Confidential Information that, in the opinion of such Restricted Person’s counsel, such Restricted Person is legally compelled to disclose, or (C) if an Event of Default has occurred and is continuing, to the extent such Restricted Person may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of its rights and remedies under the Notes and this Agreement.

 

Section 12.12                      Interest Rate Limitation.  It is the intention of the parties hereto that each Lender shall conform strictly to usury laws applicable to it.  Accordingly, if the Transactions contemplated hereby would be usurious as to any Lender under laws applicable to it (including the laws of the United States of America and the State of Texas or any other jurisdiction whose laws may be mandatorily applicable to such Lender notwithstanding the other provisions of this Agreement), then, in that event, notwithstanding anything to the contrary in any of the Loan Documents or any agreement entered into in connection with or as security for the Loans, it is agreed as follows:  (i) the aggregate of all consideration which constitutes interest under law applicable to any Lender that is contracted for, taken, reserved, charged or received by such Lender under any of the Loan Documents or agreements or otherwise in connection with the Loans shall under no circumstances exceed the maximum amount allowed by such applicable law, and any excess shall be canceled automatically and if theretofore paid shall be credited by such Lender on the principal amount of the Obligations (or, to the extent that the principal amount of the Obligations shall have been or would thereby be paid in full, refunded by such Lender to the Borrower); and (ii) in the event that the maturity of the Loans is accelerated by reason of an election of the holder thereof resulting from any Event of Default under this Agreement or otherwise, or in the event of any required or permitted prepayment, then such consideration that constitutes interest under law applicable to any Lender may never include more than the maximum amount allowed by such applicable law, and excess interest, if any, provided for in this Agreement or otherwise shall be canceled automatically by such Lender as of the date of such acceleration or prepayment and, if theretofore paid, shall be credited by such Lender on the principal amount of the Obligations (or, to the extent that the principal amount of the Obligations shall have been or would thereby be paid in full, refunded by such Lender to the Borrower).

 

113

 

All sums paid or agreed to be paid to any Lender for the use, forbearance or detention of sums due hereunder shall, to the extent permitted by law applicable to such Lender, be amortized, prorated, allocated and spread throughout the stated term of the Loans until payment in full so that the rate or amount of interest on account of any Loans hereunder does not exceed the maximum amount allowed by such applicable law.  If at any time and from time to time (i) the amount of interest payable to any Lender on any date shall be computed at the Highest Lawful Rate applicable to such Lender pursuant to this Section 12.12 and (ii) in respect of any subsequent interest computation period the amount of interest otherwise payable to such Lender would be less than the amount of interest payable to such Lender computed at the Highest Lawful Rate applicable to such Lender, then the amount of interest payable to such Lender in respect of such subsequent interest computation period shall continue to be computed at the Highest Lawful Rate applicable to such Lender until the total amount of interest payable to such Lender shall equal the total amount of interest which would have been payable to such Lender if the total amount of interest had been computed without giving effect to this Section 12.12.  To the extent that Chapter 303 of the Texas Finance Code is relevant for the purpose of determining the Highest Lawful Rate applicable to a Lender, such Lender elects to determine the applicable rate ceiling under such Chapter by the weekly ceiling from time to time in effect.  Chapter 346 of the Texas Finance Code does not apply to the Borrower’s obligations hereunder.  The Loans are not primarily for personal, family or household use.

 

Section 12.13                      Exculpation Provisions.  EACH OF THE PARTIES HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; THAT IT HAS IN FACT READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY.  EACH PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS”.

 

114

 

Section 12.14                      Collateral Matters; Hedging Agreements; Treasury Management Agreements.  Except as provided in Section 12.02(b)(iv), no Lender or any Affiliate of a Lender shall have any voting rights under any Loan Document as a result of the existence of obligations owed to it under any Hedging Agreement or Treasury Management Agreement.  The benefit of the Security Instruments and of the provisions of this Agreement relating to any Collateral securing the Secured Obligations shall also extend to and be available to Secured Hedging Providers, the Secured Treasury Management Counterparties and the Secured LC Providers on a pro rata basis (subject to the priorities set out in Section 10.02(c)) in respect of any obligations of Parent or any Restricted Subsidiary which arises under any Hedging Agreement, Treasury Management Agreement or letter of credit facility permitted under Section 9.01(t).  Each Lender, on behalf of itself and its Affiliates who are Secured Hedging Providers, and each Secured Hedging Provider, by accepting the benefits of the Collateral, hereby agrees that the Loan Parties may grant security interests, covering all rights of the Loan Parties in Hedging Agreements with any Lender or Secured Hedging Provider, to the Administrative Agent under the Security Instruments to secure the Secured Obligations, notwithstanding any restriction on such security interests under any Hedging Agreement.

 

Section 12.15                      No Third Party Beneficiaries.  This Agreement, the other Loan Documents, and the agreement of the Lenders to make Loans and the Issuing Banks to issue, amend, renew or extend Letters of Credit hereunder are solely for the benefit of Parent, the Borrower, and no other Person (including, without limitation, any Subsidiary of the Borrower, any obligor, contractor, subcontractor, supplier or materialman) shall have any rights, claims, remedies or privileges hereunder or under any other Loan Document against the Administrative Agent, any other Agent, any Issuing Bank or any Lender for any reason whatsoever.  There are no third party beneficiaries.

 

Section 12.16                      USA PATRIOT Act Notice.  Each Lender hereby notifies Parent and the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “USA PATRIOT Act”), it is required to obtain, verify and record information that identifies Parent and its Subsidiaries, which information includes the name and address of Parent and such Subsidiaries and other information that will allow such Lender to identify Parent and such Subsidiaries in accordance with the USA PATRIOT Act.  Parent and the Borrower agrees to promptly provide such information upon request.

 

Section 12.17                      No Fiduciary Duty.  Each Lender and its respective Affiliates (collectively, solely for purposes of this Section 12.17, the “Lenders”) may have economic interests that conflict with those of the Loan Parties.  Each Loan Party agrees that nothing in any Loan Document, any Hedging Agreement with any Secured Hedging Provider or any Treasury Management Agreement will be deemed to create an advisory, fiduciary or agency relationship between the Lenders and the Loan Parties, their partners or their Affiliates.  Each Loan Party acknowledges and agrees that (a) the transactions with the Lenders contemplated by the Loan Documents, the Hedging Agreements with Secured Hedging Providers and the Treasury Management Agreements are arm’s-length commercial transactions between the Lenders, on the one hand, and the applicable Loan Parties, on the other, (b) in connection therewith and with the process leading to such transactions each Lender is acting solely as a principal and not the agent or fiduciary of any Loan Party, or of any Loan Party’s management, partners, creditors or other Affiliates, (c) no Lender has assumed a fiduciary responsibility in favor of any Loan Party with respect to the transactions with Lenders contemplated by the Loan Documents, any Hedging Agreement or any Treasury Management Agreements or the process leading thereto (irrespective of whether any Lender or any of its Affiliates has advised or is currently advising any Loan Party on other matters) and (d) such Person has consulted its own legal and financial advisors to the extent it deemed appropriate.

 

115

 

Each Loan Party further acknowledges and agrees that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto.  Each Loan Party agrees that it will not claim that any Lender owes a fiduciary duty to such Person in connection with the Loan Documents, any Hedging Agreement or any Treasury Management Agreement or the process leading thereto.

 

Section 12.18                      Conversion of Currencies.

 

(a)                                 If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum owing hereunder in one currency into another currency, each party hereto agrees, to the fullest extent that it may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures in the relevant jurisdiction the first currency could be purchased with such other currency on the Business Day immediately preceding the day on which final judgment is given.

 

(b)                                 The obligations of the Borrower in respect of any sum due to any party hereto or any holder of the obligations owing hereunder (the “Applicable Creditor”) shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than the currency in which such sum is stated to be due hereunder (the “Agreement Currency”), be discharged only to the extent that, on the Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in accordance with normal banking procedures in the relevant jurisdiction purchase the Agreement Currency with the Judgment Currency; if the amount of the Agreement Currency so purchased is less than the sum originally due to the Applicable Creditor in the Agreement Currency, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Applicable Creditor against such loss.

 

Section 12.19                      Amendment and Restatement.  It is the intention of the parties hereto that this Agreement amends, restates, supersedes and replaces the Existing Credit Agreement in its entirety; provided, that, such amendment and restatement shall operate to renew, amend, modify, and extend all of the rights, duties, liabilities and obligations of the Borrower under the Existing Credit Agreement and under the Existing Loan Documents, which rights, duties, liabilities and obligations are hereby renewed, amended, modified and extended, and shall not act as a novation thereof.  The parties hereto ratify and confirm each of the Existing Loan Documents entered into prior to the Effective Date (but excluding the Existing Credit Agreement) and agree that such Existing Loan Documents continue to be legal, valid, binding and enforceable in accordance with their terms (except to the extent amended, restated and/or superseded in connection with the transactions contemplated hereby), however, for all matters arising prior to the Effective Date (including the accrual and payment of interest and fees, and matters relating to indemnification and compliance with financial covenants), the terms of the Existing Credit Agreement (as unmodified by this Agreement) shall control and are hereby ratified and confirmed.  Parent and the Borrower each represent and warrant that, as of the Effective Date, there are no claims or offsets against, or defenses or counterclaims to, its obligations (or the obligations of any Guarantor) under the Existing Credit Agreement or any of the other Existing Loan Documents.

 

[Signature Pages Follow]

 

116

 

The parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

	
BORROWER:
    	
EXTERRAN   ENERGY SOLUTIONS, L.P., a
    
	
 
    	
Delaware   limited partnership
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jon C.   Biro
    
	
 
    	
Name:
    	
Jon C. Biro
    
	
 
    	
Title:
    	
Senior Vice   President and
    
	
 
    	
 
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address for   Notices:
    
	
 
    	
 
    
	
 
    	
4444   Brittmoore Road
    
	
 
    	
Houston,   Texas 77041
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Facsimile   No: (281) 836-7953
    
	
 
    	
Telephone   No.: (281) 836-7000
    
	
 
    	
e-mail:   kelly.battle@exterran.com
    
	
 
    	
Attention:   Deputy General Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Copy to:
    
	
 
    	
 
    
	
 
    	
Michael Bent
    
	
 
    	
Vice   Present, Finance and Treasury
    
	
 
    	
Facsimile   No: (281) 836-7953
    
	
 
    	
e-mail:   michael.bent@exterran.com
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Copy to:
    
	
 
    	
 
    
	
 
    	
Herschel   Hamner
    
	
 
    	
Sidley   Austin LLP
    
	
 
    	
1000   Louisiana Street
    
	
 
    	
Suite 6000
    
	
 
    	
Houston,   Texas 77002
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
PARENT:
    	
EXTERRAN   CORPORATION, a Delaware   corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jon C.   Biro
    
	
 
    	
Name:
    	
Jon C. Biro
    
	
 
    	
Title:
    	
Senior Vice   President and
    
	
 
    	
 
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address for   Notices:
    
	
 
    	
 
    
	
 
    	
4444   Brittmoore Road
    
	
 
    	
Houston,   Texas 77041
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Facsimile   No: (281) 836-7953
    
	
 
    	
Telephone   No.: (281) 836-7000
    
	
 
    	
e-mail:   kelly.battle@exterran.com
    
	
 
    	
Attention:   Deputy General Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Copy to:
    
	
 
    	
 
    
	
 
    	
Michael Bent
    
	
 
    	
Vice   Present, Finance and Treasury
    
	
 
    	
Facsimile   No: (281) 836-7953
    
	
 
    	
e-mail:   michael.bent@exterran.com
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Copy to:
    
	
 
    	
 
    
	
 
    	
Herschel   Hamner
    
	
 
    	
Sidley   Austin LLP
    
	
 
    	
1000   Louisiana Street
    
	
 
    	
Suite 6000
    
	
 
    	
Houston,   Texas 77002
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
ADMINISTRATIVE   AGENT, ISSUING BANK, SWINGLINE LENDER AND LENDER:
    	
 
    	
WELLS   FARGO BANK, NATIONAL
    
	
ASSOCIATION, Individually and as
    
	
Administrative   Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ C. David   Allman
    
	
 
    	
 
    	
Name:
    	
C. David   Allman
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Lending   Office for ABR Loans and
    
	
 
    	
 
    	
LIBOR Loans:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WLS Agency   Services
    
	
 
    	
 
    	
1525 W Wt   Harris Blvd.
    
	
 
    	
 
    	
23rd Floor NC 0680
    
	
 
    	
 
    	
Charlotte,   North Carolina 28262
    
	
 
    	
 
    	
Facsimile   No.: (704) 715-0017
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address for   Notices:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Wells Fargo   Bank, National Association
    
	
 
    	
 
    	
1000   Louisiana, 9th Floor
    
	
 
    	
 
    	
Houston,   Texas 77002
    
	
 
    	
 
    	
Attention:   C. David Allman
    
	
 
    	
 
    	
Facsimile   No.: (713) 739-1087
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Erec R.   Winandy
    
	
 
    	
 
    	
Vinson &   Elkins L.L.P.
    
	
 
    	
 
    	
2001 Ross   Avenue
    
	
 
    	
 
    	
Suite 3700
    
	
 
    	
 
    	
Dallas,   Texas 75201
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
LENDERS:
    	
CRÉDIT   AGRICOLE CORPORATE AND
    
	
 
    	
INVESTMENT   BANK, as a Lender and   Issuing Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David   Gurghigian
    
	
 
    	
Name:
    	
David   Gurghigian
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael   D. Willis
    
	
 
    	
Name:
    	
Michael D.   Willis
    
	
 
    	
Title:
    	
Managing   Director
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
 
    	
BANK OF   AMERICA, N.A., as a Lender and   Issuing Bank
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Julie   Castano
    
	
 
    	
Name:
    	
Julie   Castano
    
	
 
    	
Title:
    	
SVP
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
 
    	
ROYAL BANK   OF CANADA, as a Lender and   Issuing Bank
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Evans   Swann, Jr.
    
	
 
    	
Name:
    	
Evans   Swann, Jr.
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
 
    	
CITIBANK,   N.A., as a Lender and   Issuing Bank
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ivan   Davey
    
	
 
    	
Name:
    	
Ivan Davey
    
	
 
    	
Title:
    	
Vice   President
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

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

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
 
    	
SUMITOMO   MITSUI BANKING CORPORATION, as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Katsuyuki Kubo
    
	
 
    	
Name:
    	
Katsuyuki   Kubo
    
	
 
    	
Title:
    	
Managing   Director
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
 
    	
GOLDMAN   SACHS BANK USA, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Rebecca   Kratz
    
	
 
    	
Name:
    	
Rebecca   Kratz
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
 
    	
HSBC BANK   USA, NA, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael   Bustios
    
	
 
    	
Name:
    	
Michael   Bustios
    
	
 
    	
Title:
    	
Vice   President 20556
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
 
    	
SANTANDER   BANK, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David   O’Driscoll
    
	
 
    	
Name:
    	
David   O’Driscoll
    
	
 
    	
Title:
    	
Senior Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Puiki   Lok
    
	
 
    	
Name:
    	
Puiki Lok
    
	
 
    	
Title:
    	
Vice   President
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
 
    	
TRUSTMARK   NATIONAL BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeff   Deutsch
    
	
 
    	
Name:
    	
Jeff Deutsch
    
	
 
    	
Title:
    	
Senior Vice   President
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
 
    	
BRANCH   BANKING AND TRUST COMPANY, as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ DeVon J.   Lang
    
	
 
    	
Name:
    	
DeVon J.   Lang
    
	
 
    	
Title:
    	
Senior Vice   President
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

	
 
    	
CATERPILLAR   FINANCIAL SERVICES CORPORATION, as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert   Coon
    
	
 
    	
Name:
    	
Robert Coon
    
	
 
    	
Title:
    	
Managing   Director
    
	
 
    	
 
    	
CAT Power   Finance Americas
    

 

SIGNATURE PAGE

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

ANNEX I
  COMMITMENTS

 

	
Name of Lender
    	
 
    	
Revolving Commitment
    	
 
    	
Term Loan Commitment
    	
 
    
	
Wells Fargo Bank, National   Association
    	
 
    	
$
    	
90,000,000.00
    	
 
    	
$
    	
25,000,000.00
    	
 
    
	
Credit Agricole Corporate and   Investment Bank
    	
 
    	
$
    	
90,000,000.00
    	
 
    	
$
    	
25,000,000.00
    	
 
    
	
Bank of America, N.A.
    	
 
    	
$
    	
79,000,000.00
    	
 
    	
$
    	
21,000,000.00
    	
 
    
	
Citibank, N.A.
    	
 
    	
$
    	
79,000,000.00
    	
 
    	
$
    	
21,000,000.00
    	
 
    
	
Royal Bank of Canada
    	
 
    	
$
    	
79,000,000.00
    	
 
    	
$
    	
21,000,000.00
    	
 
    
	
The Bank of Nova Scotia
    	
 
    	
$
    	
58,750,000.00
    	
 
    	
$
    	
16,250,000.00
    	
 
    
	
Sumitomo Mitsui Banking   Corporation
    	
 
    	
$
    	
58,750,000.00
    	
 
    	
$
    	
16,250,000.00
    	
 
    
	
Goldman Sachs Bank USA
    	
 
    	
$
    	
40,000,000.00
    	
 
    	
$
    	
20,000,000.00
    	
 
    
	
HSBC Bank USA, NA
    	
 
    	
$
    	
39,000,000.00
    	
 
    	
$
    	
11,000,000.00
    	
 
    
	
Santander Bank, N.A.
    	
 
    	
$
    	
39,000,000.00
    	
 
    	
$
    	
11,000,000.00
    	
 
    
	
Trustmark National Bank
    	
 
    	
$
    	
15,750,000.00
    	
 
    	
$
    	
4,250,000.00
    	
 
    
	
Branch Banking and Trust Company
    	
 
    	
$
    	
11,750,000.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
Caterpillar Financial Services   Corporation
    	
 
    	
N/A
    	
 
    	
$
    	
50,000,000.00
    	
 
    
	
TOTAL
    	
 
    	
$
    	
680,000,000.00
    	
 
    	
$
    	
245,000,000
    	
 
    

 

ANNEX I

AMENDED AND RESTATED CREDIT AGREEMENT – EXTERRAN ENERGY SOLUTIONS, L.P.

 

 

EXHIBIT A-1
  FORM OF REVOLVING NOTE

 

	
$                   
    	
 
    	
             ,   201[·]
    

 

FOR VALUE RECEIVED, EXTERRAN ENERGY SOLUTIONS, L.P., a Delaware limited partnership (the “Borrower”), hereby promises to pay to                                (the “Lender”) or registered assigns, at the office of WELLS FARGO BANK, NATIONAL ASSOCIATION, as the Administrative Agent (the “Administrative Agent”), at [           ], the principal sum of                               US Dollars ($            ) (or such lesser amount as shall equal the aggregate unpaid principal amount of the Revolving Loans made by the Lender to the Borrower under the Credit Agreement, as hereinafter defined), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount of each such Revolving Loan, at such office, in like money and funds, for the period commencing on the date of such Revolving Loan until such Revolving Loan shall be paid in full, at the rates per annum and on the dates provided in the Credit Agreement.

 

The date, amount, Type, interest rate, Interest Period and maturity of each Revolving Loan made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books.

 

This Revolving Note is one of the Revolving Notes referred to in the Amended and Restated Credit Agreement dated as of October [  ], 2015, among Exterran Corporation, as Parent, the Borrower, the Administrative Agent and the other Agents and Lenders from time to time party thereto (including the Lender) (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), and evidences the Revolving Loans made by the Lender thereunder.  Capitalized terms used in this Revolving Note and not defined herein have the respective meanings assigned to them in the Credit Agreement.

 

This Revolving Note is issued pursuant to the Credit Agreement and is entitled to the benefits provided for in the Credit Agreement and the Security Instruments.  The Credit Agreement provides for the acceleration of the maturity of this Revolving Note upon the occurrence of certain events and for prepayments of Revolving Loans upon the terms and conditions specified therein and other provisions relevant to this Revolving Note.

 

[Signature Page Follows]

 

Exhibit A-1 - 1

 

THIS REVOLVING NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

 

 

	
 
    	
EXTERRAN   ENERGY SOLUTIONS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Exhibit A-1 - 2

 

EXHIBIT A-2
  FORM OF TERM LOAN NOTE

 

	
$                   
    	
 
    	
             ,   201[·]
    

 

FOR VALUE RECEIVED, EXTERRAN ENERGY SOLUTIONS, L.P., a Delaware limited partnership (the “Borrower”), hereby promises to pay to                                (the “Lender”) or registered assigns, at the office of WELLS FARGO BANK, NATIONAL ASSOCIATION, as the Administrative Agent (the “Administrative Agent”), at [           ], the principal sum of                               US Dollars ($            ) (or such lesser amount as shall equal the aggregate unpaid principal amount of the Term Loans made by the Lender to the Borrower under the Credit Agreement, as hereinafter defined), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount of each such Term Loan, at such office, in like money and funds, for the period commencing on the date of such Term Loan until such Term Loan shall be paid in full, at the rates per annum and on the dates provided in the Credit Agreement.

 

The date, amount, Type, interest rate, Interest Period and maturity of each Term Loan made by the Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Lender on its books.

 

This Term Loan Note is one of the Term Loan Notes referred to in the Amended and Restated Credit Agreement dated as of October [  ], 2015, among Exterran Corporation, as Parent, the Borrower, the Administrative Agent and the other Agents and Lenders from time to time party thereto (including the Lender) (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), and evidences the Term Loans made by the Lender thereunder.  Capitalized terms used in this Term Loan Note and not defined herein have the respective meanings assigned to them in the Credit Agreement.

 

This Term Loan Note is issued pursuant to the Credit Agreement and is entitled to the benefits provided for in the Credit Agreement and the Security Instruments.  The Credit Agreement provides for the acceleration of the maturity of this Term Loan Note upon the occurrence of certain events and for prepayments of Term Loans upon the terms and conditions specified therein and other provisions relevant to this Term Loan Note.

 

[Signature Page Follows]

 

Exhibit A-2 - 1

 

THIS TERM LOAN NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

 

 

	
 
    	
EXTERRAN   ENERGY SOLUTIONS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Exhibit A-2 - 2

 

EXHIBIT B
  FORM OF BORROWING REQUEST

 

[          ], 201[    ]

 

EXTERRAN ENERGY SOLUTIONS, L.P., a Delaware limited partnership (the “Borrower”), pursuant to the Amended and Restated Credit Agreement dated as of October [  ], 2015, among Exterran Corporation, as Parent, the Borrower, the Administrative Agent and the other Agents and Lenders from time to time party thereto (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), hereby makes the requests indicated below (unless otherwise defined herein, each capitalized term used herein is defined in the Credit Agreement):

 

1.                                      [Revolving] [Term Loan] Borrowing:

 

(a)                                 [The currency of such Revolving Borrowing shall be [US Dollars] [Euros] and the aggregate amount of such Revolving Borrowing is [$] [€]          ;[and](1)

 

[The aggregate amount of such Term Loan Borrowing is [$]                  ;](2)

 

 

(b)                                 The requested funding date for such [Revolving/Term Loan] Borrowing is             ,      ;(3)

 

For a [Revolving/Term Loan] Borrowing in US Dollars:

 

[(c)                              $                      of such [Revolving/Term Loan] Borrowing is to be an ABR Borrowing;

 

(d)                                 $                      of such [Revolving/Term Loan] Borrowing is to be a LIBOR Borrowing;

 

(i)                                     The length of the initial Interest Period for such LIBOR Borrowing is:                          ;

 

(e)                                  $                      of such Revolving Borrowing is to be a EURIBOR Borrowing; and

 

(i)                                     The length of the initial Interest Period for such EURIBOR Borrowing is:                                  .]

 

[For a Revolving Borrowing in Euros:

 

 

(1)  Only applicable to Revolving Borrowings.

 

(2)  Only applicable to Term Loan Borrowings made on the Initial Availability Date.

 

(3)  Must be a Business Day.

 

Exhibit B - 1

 

(e)                                  €                      of such Revolving Borrowing is to be a EURIBOR Borrowing;

 

(i)                                     The length of the initial Interest Period for such EURIBOR Borrowing is:                                          .](4)

 

(f)                                   The location and number of the account to which funds are to be disbursed is:

 

                                                                                                                .

 

2.                                      The undersigned hereby represents and warrants, in his/her official capacity and not in his/her individual capacity, on behalf of the Borrower that, the [Revolving/Term Loan] Borrowing requested herein shall not cause the Total Revolving Credit Exposure to exceed the Aggregate Revolving Commitments or the total outstanding Term Loans to exceed the total Term Loan Commitments.

 

[Signature page follows.]

 

(4)  Only applicable to Revolving Borrowings.

 

Exhibit B - 2

 

The undersigned certifies that he/she is the                       of the Borrower and that he/she is authorized to execute this Borrowing Request on behalf of the Borrower.  The undersigned further certifies, represents and warrants on behalf of the Borrower that the Borrower is entitled to receive the proceeds of the requested Borrowing under the terms and conditions of the Credit Agreement.

 

	
 
    	
EXTERRAN   ENERGY SOLUTIONS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Exhibit B - 3

 

EXHIBIT C
  FORM OF INTEREST ELECTION REQUEST

 

[          ], 201[    ]

 

EXTERRAN ENERGY SOLUTIONS, L.P., a Delaware limited partnership (the “Borrower”), pursuant to Section 2.04 of the Amended and Restated Credit Agreement dated as of October [  ], 2015, among Exterran Corporation, as Parent, the Borrower, the Administrative Agent and the other Agents and Lenders from time to time party thereto (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used but not defined herein shall have the meaning assigned to such terms in the Credit Agreement), hereby gives you notice that it elects to [continue the Borrowing listed below, or a portion thereof as described below] [convert the Borrowing listed below, or a portion thereof as described below, to a different Type], and in that connection sets forth below the terms on which such [conversion] [continuation] is to be made.

 

	
(a)
    	
The amount of the Borrowing to which
    	
 
    
	
 
    	
this Interest Election Request applies(1):
    	
 
    
	
 
    	
 
    	
 
    
	
(b)
    	
The effective date of the election
    	
 
    
	
 
    	
(which is a Business Day):
    	
 
    
	
 
    	
 
    	
 
    
	
(c)
    	
Type of Borrowing following
    	
 
    
	
 
    	
[conversion] [continuation]:
    	
[ABR] [LIBOR] [EURIBOR]
    
	
 
    	
 
    	
 
    
	
(d)
    	
Interest Period and the last day thereof(2):
    	
 
    

 

[Signature page follows.]

 

(1)         If different options are being elected with respect to different portions of such Borrowing, specify the portions thereof to be allocated to each resulting Borrowing and specify the information requested in clauses (c) and (d) for each resulting Borrowing.

 

(2)         For LIBOR Borrowing and EURIBOR Borrowing only.  Shall be subject to the definition of “Interest Period” in the Credit Agreement.

 

Exhibit C - 1

 

The undersigned certifies that he/she is the                       of the Borrower and that he/she is authorized to execute this certificate on behalf of the Borrower.  The undersigned further certifies, represents and warrants on behalf of the Borrower that the Borrower is entitled to make the requested continuation or conversion under the terms and conditions of the Credit Agreement.

 

	
 
    	
EXTERRAN   ENERGY SOLUTIONS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Exhibit C - 2

 

EXHIBIT D
  FORM OF COMPLIANCE CERTIFICATE(1)

 

[          ], 201[    ]

 

The undersigned hereby certifies that he/she is the                  of                   and he/she is authorized to execute this Compliance Certificate on behalf of Exterran Energy Solutions, L.P., a Delaware limited partnership (the “Borrower”).

 

With reference to the Amended and Restated Credit Agreement dated as of October [  ], 2015, among Exterran Corporation, as Parent, the Borrower, the Administrative Agent and the other Agents and Lenders from time to time party thereto (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), the undersigned represents and warrants, in his/her official capacity and not in his/her individual capacity, on behalf of the Borrower as follows (each capitalized term used herein having the same meaning given to it in the Credit Agreement unless otherwise specified):

 

(a)                                 As of the date hereof, no Default has occurred and is continuing under the Credit Agreement [except as described below] (2).

 

[                                                         ]

 

(b)                                 Attached hereto are the computations in reasonable detail necessary to determine whether Parent is in compliance with Sections 9.10(a), 9.10(b) and 9.10(c) of the Credit Agreement as of the end of the most recently ended [Fiscal Quarter][Fiscal Year] ending [          ].(3)

 

[Signature page follows.]

 

(1)    Compliance Certificate to be accompanied by (i) a report, to be dated as of the date of the Compliance Certificate, setting forth a true and complete list of all Hedging Agreements pursuant to Section 8.01(b) of the Credit Agreement and (ii) if applicable, a report, to be dated as of the date of the Compliance Certificate, setting forth a true and complete list of all letters of credit permitted under Section 9.01(t), including the name of the Secured LC Provider providing each such letter of credit facility and the face amount thereof.

 

(2)    If any Default has occurred and is continuing as of the date hereof, describe the same in reasonable detail in the space provided below part (a).

 

(3)    Pursuant to Section 8.06, if the book value of Non-Mortgaged Real Property exceeds $15M as of the last day of any Fiscal Quarter, the Borrower shall deliver, within 30 days after delivery of the Financial Statements, Mortgages with respect to such real property as is necessary to ensure that the aggregate book value of all Non-Mortgaged Real Property does not exceed $15M.  Further, if in the aggregate, the value of Specified US Assets of the Wholly-Owned Domestic Subsidiaries that are not Guarantors exceeds $75M as of the last day of any Fiscal Quarter, then the Borrower shall designate as many of such Wholly-Owned Domestic Subsidiaries as is necessary to ensure that the value of the Specified US Assets of the Wholly-Owned Domestic Subsidiaries that are not Guarantors as of the last day of such Fiscal Quarter does not exceed $75M and shall deliver a supplement to the Guaranty and Collateral Agreement and customary documentation not later than 30 days after delivery of the financial statements for such Fiscal Quarter.

 

Exhibit D - 1

 

IN WITNESS WHEREOF, the undersigned has duly executed this Compliance Certificate as of the date first set forth above.

 

 

	
 
    	
EXTERRAN   ENERGY SOLUTIONS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Exhibit D - 2

 

EXHIBIT E
  FORM OF ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

 

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent below (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit and guarantees included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

 

	
1.
    	
Assignor:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
2.
    	
Assignee:
    	
 
    	
 
    
	
 
    	
 
    	
[and is an Affiliate of [identify   Lender](1)]
    
	
 
    	
 
    	
 
    
	
3.
    	
Borrower:
    	
Exterran Energy Solutions, L.P., a Delaware limited   partnership
    
	
 
    	
 
    	
 
    
	
4.
    	
Administrative Agent:
    	
Wells Fargo Bank, National Association, as the   administrative agent under the Credit Agreement
    
	
 
    	
 
    	
 
    
	
5.
    	
Credit Agreement:
    	
The Amended and Restated Credit Agreement dated as   of October [ ], 2015, among Exterran Corporation, as Parent, the   Borrower,
    

 

(1)  Select as applicable.

 

Exhibit E - 1

 

	
 
    	
 
    	
the Administrative Agent   and the other Agents and Lenders from time to time party thereto (as the same   may be amended, restated, amended and restated, supplemented or otherwise   modified from time to time)
    

 

6.                                      Assigned Interest:

 

	
Commitment/Loans
   Assigned(2)
    	
 
    	
Aggregate Amount of
   Commitment/Loans
   for all Lenders
    	
 
    	
Amount of
   Commitment/Loans
   Assigned
    	
 
    	
Percentage Assigned
   of
   Commitment/Loans(3)
    	
 
    
	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
 
    	
 
    	
$
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    

 

Effective Date:                    , 201   [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

The terms set forth in this Assignment and Assumption are hereby agreed to:

 

	
 
    	
ASSIGNOR
    
	
 
    	
 
    
	
 
    	
[NAME OF ASSIGNOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ASSIGNEE
    
	
 
    	
 
    
	
 
    	
[NAME OF ASSIGNEE]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

(2)         Fill in the appropriate terminology for the types of Commitments and/or Loans under the Credit Agreement that are being assigned under this Assignment and Assumption (e.g. “Revolving Commitment,” etc.)

 

(3)         Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

Exhibit E - 2

 

[Consented to by:](4)

 

	
WELLS   FARGO, NATIONAL ASSOCIATION, as
    	
 
    
	
Administrative Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    
	
 
    	
 
    
	
[NAME OF ISSUING BANK],   as Issuing Bank
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
[Consented to by:](5)
    	
 
    
	
 
    	
 
    
	
EXTERRAN   ENERGY SOLUTIONS, L.P., as Borrower
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By
    	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    

 

(4)         To be added only if the consent of the Administrative Agent and the Issuing Bank is required by the terms of the Credit Agreement.

 

(5)         To be added only if the consent of the Borrower is required by the terms of the Credit Agreement.

 

Exhibit E - 3

 

ANNEX 1

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.  Representations and Warranties.

 

1.1  Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of Parent, the Borrower, any of Parent’s Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, Parent or any of Parent’s Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

 

1.2.  Assignee.  The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

2.  Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.

 

ANNEX 1 to 

Exhibit E

 

3.  General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the laws of the State of Texas.

 

ANNEX 1 to 

Exhibit E

 

EXHIBIT F
  SECURITY INSTRUMENTS

 

1.                                      Guaranty and Collateral Agreement (as amended, restated, amended and restated supplemented or otherwise modified from time to time, the “Guaranty and Collateral Agreement”), to be dated as of the Initial Availability Date, made by Exterran Corporation, as Parent, Exterran Energy Solutions, L.P., as Borrower, and the other Guarantors party thereto in favor of Wells Fargo Bank, National Association, as Administrative Agent.

 

2.                                      UCC-1 Financing Statements naming as debtor each of Exterran Energy Solutions, L.P., Exterran Corporation and the other Guarantors party to the Guaranty and Collateral Agreement.

 

3.                                      Pledge Agreement (as amended, restated, amended and restated supplemented or otherwise modified from time to time, the “Pledge Agreement”), to be dated as of the Initial Availability Date, made by the pledgors party thereto in favor of Wells Fargo Bank, National Association, as Administrative Agent.

 

4.                                      Deed of Trust (for Texas), Mortgage (for Oklahoma), Assignment of Leases and Rents, Security Agreement, Fixture Filing and Financing Statement , to be dated as of the Initial Availability Date, by and among Exterran Energy Solutions, L.P., as grantor, an individual to be named later, as trustee, and Wells Fargo Bank, National Association, as beneficiary.

 

Exhibit F - 1

 

EXHIBIT G

 

[Reserved]

 

Exhibit G

 

EXHIBIT H-1
  FORM OF REVOLVING COMMITMENT INCREASE CERTIFICATE

 

[          ], 201[    ]

 

To:                             Wells Fargo Bank, National Association,

as Administrative Agent

 

Exterran Energy Solutions, L.P., a Delaware limited partnership (the “Borrower”), Exterran Corporation, as Parent, the Administrative Agent, the other Agents and certain Lenders have heretofore entered into the Amended and Restated Credit Agreement dated as of October [  ], 2015 (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).  Capitalized terms not otherwise defined herein shall have the meaning given to such terms in the Credit Agreement.

 

This Revolving Commitment Increase Certificate is being delivered pursuant to Section 2.06(c)(ii)(F) of the Credit Agreement.  Please be advised that:

 

(a)                                 the amount of the requested increase in the Aggregate Revolving Commitments is $[     ];

 

(b)                                 each of the undersigned Revolving Lenders has agreed (i) to increase its Revolving Commitment under the Credit Agreement effective [          ], 201[    ] so that, after giving effect hereto, its Revolving Commitment will be equal to the amount set forth opposite its name in Annex I attached hereto and (ii) that it shall continue to be a party in all respects to the Credit Agreement and the other Loan Documents;

 

(c)                                  attached hereto is a new Annex I that replaces the outstanding Annex I to the Credit Agreement, reflecting the new Aggregate Revolving Commitments after giving effect to the increase in the Revolving Commitments contemplated hereby.

 

Delivery of an executed counterpart of this Revolving Commitment Increase Certificate by facsimile or other electronic transmission shall be effective as delivery of an original executed counterpart of this Revolving Commitment Increase Certificate.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
EXTERRAN   ENERGY SOLUTIONS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Exhibit H-1 - 1

 

Accepted and Agreed:

 

 

	
Wells   Fargo Bank, National Association,
    	
 
    
	
as Administrative Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Accepted   and Agreed:
    	
 
    
	
 
    	
 
    
	
[NAME   OF REVOLVING LENDER], as Revolving Lender
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
				

 

Exhibit H-1 - 2

 

EXHIBIT H-2
  FORM OF ADDITIONAL REVOLVING LENDER CERTIFICATE

 

[          ], 201[    ]

 

To:                             Wells Fargo Bank, National Association,

as Administrative Agent

 

Exterran Energy Solutions, L.P., a Delaware limited partnership (the “Borrower”), Exterran Corporation, as Parent, the Administrative Agent, the other Agents and certain Lenders have heretofore entered into the Amended and Restated Credit Agreement dated as of October [  ], 2015 (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).  Capitalized terms not otherwise defined herein shall have the meaning given to such terms in the Credit Agreement.

 

This Additional Revolving Lender Certificate is being delivered pursuant to Section 2.06(c)(ii)(G) of the Credit Agreement.

 

Please be advised that the undersigned has agreed (a) to become a Revolving Lender under the Credit Agreement effective [          ], 201[    ] with a Revolving Commitment of $[          ] and (b) that it shall be a party in all respects to the Credit Agreement and the other Loan Documents.

 

This Additional Revolving Lender Certificate is being delivered to the Administrative Agent together with, (i) if the Additional Revolving Lender is a Foreign Lender, any documentation required to be delivered by such Additional Revolving Lender pursuant to Section 5.03(g) of the Credit Agreement, duly completed and executed by the Additional Revolving Lender, and (ii) an Administrative Questionnaire in the form supplied by the Administrative Agent, duly completed by the Additional Revolving Lender.

 

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
EXTERRAN   ENERGY SOLUTIONS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Exhibit H-2 - 1

 

Accepted and Agreed:

 

	
Wells   Fargo Bank, National Association,
    	
 
    
	
as Administrative Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Accepted   and Agreed:
    	
 
    
	
 
    	
 
    
	
[NAME   OF ADDITIONAL REVOLVING LENDER], 
    	
 
    
	
as Additional Revolving Lender
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

Exhibit H-2 - 2

 

EXHIBIT I-1

FORM OF U.S. TAX CERTIFICATE

 

(For Foreign Lenders That For U.S. Federal Tax Purposes Are Not (i) Partnerships or (ii) Disregarded Entities Whose Tax Owner is a Partnership)

 

Reference is made to that certain Amended and Restated Credit Agreement, dated as of [        ], 2015 (together with all amendments, restatements, amendments and restatements, supplements or other modifications, if any, from time to time made thereto, the “Credit Agreement”), among Exterran Energy Solutions, L.P., a limited partnership formed under the laws of the state of Delaware (“Borrower”); Exterran Corporation, a corporation formed under the laws of the state of Delaware as Parent; Wells Fargo Bank, National Association as Administrative Agent; Credit Agricole Corporate and Investment Bank as Syndication Agent; Bank of America, N.A., Citibank, N.A. and Royal Bank of Canada as Co-Documentation Agents; the Lenders from time to time party thereto; Wells Fargo Securities, LLC and Credit Agricole Corporate and Investment Bank as Joint Bookrunners; and the Joint Lead Arrangers party thereto.

 

Pursuant to the provisions of Section 5.03(g) of the Credit Agreement, the undersigned (or if the Lender is a disregarded entity for U.S. federal tax purposes, the Lender’s tax owner (“Tax Owner”)) hereby certifies that (i)  the Lender is the sole record owner of the Loan(s) (as well as any note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) the Lender (or its Tax Owner) is the sole beneficial owner of such Loan(s) (as well as any note(s) evidencing such Loan(s)), and (iii) the Lender (and, if the Lender is a disregarded entity for U.S. federal tax purposes, its Tax Owner) is not a (A) bank within the meaning of Section 881(c)(3)(A) of the Code, (B) ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, or (C) controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned (or its Tax Owner) has furnished the Administrative Agent and the Borrower with two (2) duly completed and executed copies of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

Exhibit I-1

 

	
[NAME OF LENDER] (the “Lender”)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title: [Tax Owner, if the Lender is a   disregarded entity]
    	
 
    
	
 
    	
 
    
	
Date:              , 201[  ]
    	
 
    

 

Exhibit I-1

 

EXHIBIT I-2

FORM OF U.S. TAX CERTIFICATE

 

(For Foreign Participants That For U.S. Federal Income Tax Purposes Are Not (i) Partnerships or (ii) Disregarded Entities Whose Tax Owner is a Partnership)

 

Reference is made to that certain Amended and Restated Credit Agreement, dated as of [        ], 2015 (together with all amendments, restatements, amendments and restatements, supplements or other modifications, if any, from time to time made thereto, the “Credit Agreement”), among Exterran Energy Solutions, L.P., a limited partnership formed under the laws of the state of Delaware (“Borrower”); Exterran Corporation, a corporation formed under the laws of the state of Delaware as Parent; Wells Fargo Bank, National Association as Administrative Agent; Credit Agricole Corporate and Investment Bank as Syndication Agent; Bank of America, N.A., Citibank, N.A. and Royal Bank of Canada as Co-Documentation Agents; the Lenders from time to time party thereto; Wells Fargo Securities, LLC and Credit Agricole Corporate and Investment Bank as Joint Bookrunners; and the Joint Lead Arrangers party thereto.

 

Pursuant to the provisions of Section 5.03(g) of the Credit Agreement, the undersigned (or if the Participant is a disregarded entity for U.S. federal tax purposes, the Participant’s tax owner (“Tax Owner”)) hereby certifies that (i) the Participant is the sole record owner of the participation in respect of which it is providing this certificate, (ii) the Participant (or, if the Participant is a disregarded entity for U.S. federal tax purposes, its Tax Owner) is the sole beneficial owner of such participation, and (iii) the Participant (and, if the Participant is a disregarded entity for U.S. federal tax purposes, its Tax Owner) is not a (A) bank within the meaning of Section 881(c)(3)(A) of the Code, (B) ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, or (C) controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned (or its Tax Owner) has furnished its participating Lender with two (2) duly completed and executed copies of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

Exhibit I-2

 

	
[NAME OF PARTICIPANT] (the “Participant”)
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title: [Tax Owner, if the Participant is a   disregarded entity]
    	
 
    
	
 
    	
 
    
	
Date:              , 201[  ]
    	
 
    

 

Exhibit I-2

 

EXHIBIT I-3

FORM OF U.S. TAX CERTIFICATE

 

(For Foreign Participants That For U.S. Federal Tax Purposes Are (i) Partnerships or (ii) Disregarded Entities Whose Tax Owner is a Partnership )

 

Reference is made to that certain Amended and Restated Credit Agreement, dated as of [        ], 2015 (together with all amendments, restatements, amendments and restatements, supplements or other modifications, if any, from time to time made thereto, the “Credit Agreement”), among Exterran Energy Solutions, L.P., a limited partnership formed under the laws of the state of Delaware (“Borrower”); Exterran Corporation, a corporation formed under the laws of the state of Delaware as Parent; Wells Fargo Bank, National Association as Administrative Agent; Credit Agricole Corporate and Investment Bank as Syndication Agent; Bank of America, N.A., Citibank, N.A. and Royal Bank of Canada as Co-Documentation Agents; the Lenders from time to time party thereto; Wells Fargo Securities, LLC and Credit Agricole Corporate and Investment Bank as Joint Bookrunners; and the Joint Lead Arrangers party thereto.

 

Pursuant to the provisions of Section 5.03(g) of the Credit Agreement, the undersigned (or if the Participant is a disregarded entity for U.S. federal tax purposes, the Participant’s tax owner (“Tax Owner”)) hereby certifies that (i) the Participant is the sole record owner of the participation in respect of which it is providing this certificate, (ii) the Participant’s (or its Tax Owner’s) direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect to such participation, neither the undersigned, its Tax Owner (if the Participant is a disregarded entity for U.S. federal tax purposes) nor any of its (or its Tax Owner’s) direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of the Participant’s direct or indirect partners/members (and, if the Participant is a disregarded entity for U.S. federal tax purposes, none of its Tax Owner’s direct or indirect partners/members) is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (v) none of the Participant’s direct or indirect partners/members (and, if the Participant is a disregarded entity for U.S. federal tax purposes, none of its Tax Owner’s direct or indirect partners/members) is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned (or its Tax Owner) has furnished its participating Lender with two (2) duly completed and executed copies of its non-U.S. Person status on IRS Form W-8IMY accompanied by one of the following forms from each of its (or its Tax Owner’s) partners/members claiming the portfolio interest exemption: (i) an IRS Form W-8BEN, (ii) an IRS Form W-8BEN-E, or (iii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or an IRS Form W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Exhibit I-3

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

	
[NAME OF PARTICIPANT] (the “Participant”)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title: [Tax Owner, if the Participant is a   disregarded entity]
    	
 
    
	
 
    	
 
    
	
Date:              , 201[  ]
    	
 
    

 

Exhibit I-3

 

EXHIBIT I-4

FORM OF U.S. TAX CERTIFICATE

 

(For Foreign Lenders That For U.S. Federal Tax Purposes Are (i) Partnerships, or (ii) Disregarded Entities Whose Tax Owner is a Partnership)

 

Reference is made to that certain Amended and Restated Credit Agreement, dated as of [                        ], 2015 (together with all amendments, restatements, amendments and restatements, supplements or other modifications, if any, from time to time made thereto, the “Credit Agreement”), among Exterran Energy Solutions, L.P., a limited partnership formed under the laws of the state of Delaware (“Borrower”); Exterran Corporation, a corporation formed under the laws of the state of Delaware as Parent; Wells Fargo Bank, National Association as Administrative Agent; Credit Agricole Corporate and Investment Bank as Syndication Agent; Bank of America, N.A., Citibank, N.A. and Royal Bank of Canada as Co-Documentation Agents; the Lenders from time to time party thereto; Wells Fargo Securities, LLC and Credit Agricole Corporate and Investment Bank as Joint Bookrunners; and the Joint Lead Arrangers party thereto.

 

Pursuant to the provisions of Section 5.03(g) of the Credit Agreement, the undersigned (or if the Lender is a disregarded entity for U.S. federal tax purposes, the Lender’s tax owner (“Tax Owner”)) hereby certifies that (i) the Lender is the sole record owner of the Loan(s) (as well as any note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) the Lender’s (or its Tax Owner’s) direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to the Credit Agreement or any other Loan Document, neither the Lender, its Tax Owner (if the Lender is a disregarded entity for U.S. federal tax purposes) nor any of the Lender’s (or its Tax Owner’s) direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of the Lender’s direct or indirect partners/members (and, if the Lender is a disregarded entity for U.S. federal tax purposes, none of its Tax Owner’s direct or indirect partners/members) is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (v) none of the Lender’s direct or indirect partners/members (and, if the Lender is a disregarded entity for U.S. federal tax purposes, none of its Tax Owner’s direct or indirect partners/members) is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned (or its Tax Owner) has furnished the Administrative Agent and the Borrower with two (2) duly completed and executed copies of its non-U.S. Person status on IRS Form W-8IMY accompanied by one of the following forms from each of its (or its Tax Owner’s) partners/members claiming the portfolio interest exemption: (i) an IRS Form W-8BEN, (ii) an IRS Form W-8BEN-E, or (iii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or an IRS Form W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and

 

Exhibit I-4

 

currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Exhibit I-4

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

	
[NAME OF LENDER] (the “Lender”)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title: [Tax Owner, if the Lender is a   disregarded entity]
    	
 
    
	
 
    	
 
    	
 
    
	
Date:                                           ,201[ ]
    	
 
    

 

Exhibit I-4

 

Schedule 1.01(a)

 

SEPARATION DOCUMENTS

 

1.              Separation and Distribution Agreement, in the form delivered and certified to the Lenders pursuant to Section 6.01(c) of the Credit Agreement, as modified from time to time prior to the Initial Availability Date to the extent permitted under Section 6.02(a)(vii) of the Credit Agreement, by and among Exterran Corporation, Exterran General Holdings LLC, Exterran Energy Solutions, L.P., EESLP LP LLC, Exterran Holdings, Inc. (to be renamed Archrock, Inc.), AROC Corp., AROC Services GP LLC, AROC Services LP LLC and Archrock Services, L.P.

 

2.              Transition Services Agreement, in the form delivered and certified to the Lenders pursuant to Section 6.01(c) of the Credit Agreement, as modified from time to time prior to the Initial Availability Date to the extent permitted under Section 6.02(a)(vii) of the Credit Agreement, by and between Exterran Corporation and Exterran Holdings, Inc. (to be renamed Archrock, Inc.).

 

3.              Employee Matters Agreement, in the form delivered and certified to the Lenders pursuant to Section 6.01(c) of the Credit Agreement, as modified from time to time prior to the Initial Availability Date to the extent permitted under Section 6.02(a)(vii) of the Credit Agreement, by and between Exterran Corporation and Exterran Holdings, Inc. (to be renamed Archrock, Inc.).

 

4.              Tax Matters Agreement, in the form delivered and certified to the Lenders pursuant to Section 6.01(c) of the Credit Agreement, as modified from time to time prior to the Initial Availability Date to the extent permitted under Section 6.02(a)(vii) of the Credit Agreement, by and between Exterran Corporation and Exterran Holdings, Inc. (to be renamed Archrock, Inc.).

 

 

Schedule 1.01(b)

 

UNRESTRICTED SUBSIDIARIES

 

None.

 

 

Schedule 1.02(a)

 

EXISTING LETTERS OF CREDIT

 

[To be provided upon request]

 

 

Schedule 1.02(b)

 

LC ISSUANCE LIMIT

 

	
Issuing Bank
    	
 
    	
LC Issuance Limit
    	
 
    
	
Wells Fargo Bank,   National Association
    	
 
    	
$
    	
80,000,000
    	
 
    
	
Crédit Agricole   Corporate and Investment Bank
    	
 
    	
$
    	
79,000,000
    	
 
    
	
Bank of America,   N.A.
    	
 
    	
$
    	
79,000,000
    	
 
    
	
Citibank, N.A.
    	
 
    	
$
    	
79,000,000
    	
 
    
	
Royal Bank of   Canada
    	
 
    	
$
    	
79,000,000
    	
 
    
	
Bank of Nova   Scotia
    	
 
    	
$
    	
5,000,000
    	
 
    

 

 

Schedule 7.03

 

LITIGATION

 

None.

 

 

Schedule 7.09

 

TAXES

 

None.

 

11

 

Schedule 7.10

 

TITLES, ETC.

 

None.

 

 

Schedule 7.13

 

SUBSIDIARIES

 

	
Company
    	
 
    	
Ownership
    	
 
    	
Jurisdiction of
   Incorporation
    	
 
    	
Legal entity
    	
 
    	
Restricted
   Subsidiary or
   Unrestricted
   Subsidiary
    	
 
    	
Excluded
   Subsidiary
    	
 
    	
Domestic
   Subsidiary or
   Foreign
   Subsidiary *
    	
 
    	
U.S. EIN
    
	
Belleli   Energy B.V.
    	
 
    	
Wholly   owned
    	
 
    	
Netherlands
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign   
    	
 
    	
 
    
	
Belleli   Energy Critical Process Equipment S.r.l.
    	
 
    	
Wholly   owned
    	
 
    	
Italy
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign   *
    	
 
    	
98-0614453
    
	
Belleli   Energy F.Z.E.
    	
 
    	
Wholly   owned
    	
 
    	
UAE   Sharjah
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Belleli   Energy S.r.l.
    	
 
    	
Wholly   owned
    	
 
    	
Italy
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign   *
    	
 
    	
98-0614456
    
	
EES   Finance Corp.
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Domestic
    	
 
    	
47-4473176
    
	
EESLP   LP LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Domestic
    	
 
    	
47-3405915
    
	
Enterra   B.V.
    	
 
    	
Wholly   owned
    	
 
    	
Netherlands
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-1242388
    
	
Enterra   Compression Investment LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
Excluded
    	
 
    	
Domestic
    	
 
    	
88-0349384
    
	
Enterra   Global Holdings LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
Excluded
    	
 
    	
Domestic
    	
 
    	
26-2580671
    
	
Excel   Energy Services Limited
    	
 
    	
Wholly   owned
    	
 
    	
Nigeria
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
EXH   Cayman Ltd.
    	
 
    	
Wholly   owned
    	
 
    	
Cayman   Islands
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   (Beijing) Energy Equipment Company Ltd.
    	
 
    	
Wholly   owned
    	
 
    	
China
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   (Colombia) Ltd.
    	
 
    	
Wholly   owned
    	
 
    	
Colombia
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   (Singapore) Pte. Ltd.
    	
 
    	
Wholly   owned
    	
 
    	
Singapore
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   (Thailand) Ltd.
    	
 
    	
Wholly   owned
    	
 
    	
Thailand
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran Argentina S.r.l.
    	
 
    	
Wholly   owned
    	
 
    	
Argentina
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign   *
    	
 
    	
98-0683932
    
	
Exterran   Bahrain S.P.C.
    	
 
    	
Wholly   owned
    	
 
    	
Bahrain
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-1036669
    
	
Exterran Bolivia S.r.l.
    	
 
    	
Wholly   owned
    	
 
    	
Bolivia
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-1149664
    
	
Exterran   Cayman GP Holdings LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
Excluded
    	
 
    	
Domestic
    	
 
    	
 
    
	
Exterran   Cayman, L.P.
    	
 
    	
Wholly   owned
    	
 
    	
Cayman   Islands
    	
 
    	
Limited   partnership
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   Colombia Leasing LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Domestic
    	
 
    	
 
    
	
Exterran   Corporation
    	
 
    	
Parent
    	
 
    	
Delaware
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Domestic
    	
 
    	
47-3282259
    

 

*Significant Foreign Subsidiary or Significant Domestic Subsidiary, as applicable.

 

 

	
Exterran   Eastern Hemisphere F.Z.E.
    	
 
    	
Wholly   owned
    	
 
    	
UAE   Dubai
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-0533505
    
	
Exterran   Eastern Hemisphere Holdings LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
Excluded
    	
 
    	
Foreign
    	
 
    	
45-3691140
    
	
Exterran   Egypt LLC
    	
 
    	
Wholly   owned
    	
 
    	
Egypt
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   Egypt Oil & Gas Services LLC
    	
 
    	
Wholly   owned
    	
 
    	
Egypt
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran Energy de Mexico, S. de R.L. de C.V.
    	
 
    	
Wholly   owned
    	
 
    	
Mexico
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign   *
    	
 
    	
 
    
	
Exterran   Energy Middle-East LLC
    	
 
    	
Wholly   owned
    	
 
    	
Oman
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   Energy Solutions Compania Limitada

(DBA   Exterran Chile Ltda.)
    	
 
    	
Wholly   owned
    	
 
    	
Chile
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   Energy Solutions India Private Limited
    	
 
    	
Wholly   owned
    	
 
    	
India
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   Energy Solutions, L.P.
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   partnership
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Domestic   *
    	
 
    	
75-2344249
    
	
Exterran   General Holdings LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Domestic
    	
 
    	
36-4410752
    
	
Exterran   Holding Company NL B.V.
    	
 
    	
Wholly   owned
    	
 
    	
Netherlands
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-1036147
    
	
Exterran   International Holdings LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
Excluded
    	
 
    	
Foreign
    	
 
    	
27-1416800
    
	
Exterran   International Holdings C.V.
    	
 
    	
Wholly   owned
    	
 
    	
Netherlands
    	
 
    	
Limited   partnership
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   International Holdings GP LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
Excluded
    	
 
    	
Domestic   
    	
 
    	
 
    
	
Exterran   International SA
    	
 
    	
Wholly   owned
    	
 
    	
Switzerland
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-0335443
    
	
Exterran   Kazakhstan LLP
    	
 
    	
Wholly   owned
    	
 
    	
Kazakhstan
    	
 
    	
Limited   liability partnership
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   Middle East LLC
    	
 
    	
70%   owned
    	
 
    	
Oman
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   Nigeria Limited
    	
 
    	
Wholly   owned
    	
 
    	
Nigeria
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   Offshore Pte. Ltd.
    	
 
    	
Wholly   owned
    	
 
    	
Singapore
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran   Pakistan (Private) Limited
    	
 
    	
Wholly   owned
    	
 
    	
Pakistan
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran Peru S.R.L.
    	
 
    	
Wholly   owned
    	
 
    	
Peru
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Exterran Peru Selva S.r.l.
    	
 
    	
Wholly   owned
    	
 
    	
Peru
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-1187297
    
	
Exterran   Services (UK) Ltd.
    	
 
    	
Wholly   owned
    	
 
    	
United   Kingdom
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-0469827
    
	
Exterran   Services B.V.
    	
 
    	
Wholly   owned
    	
 
    	
Netherlands
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-0512765
    

 

14

 

	
Exterran Servicos de Oleo e Gas Ltda.
    	
 
    	
Wholly   owned
    	
 
    	
Brazil
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign   *
    	
 
    	
98-0586824
    
	
Exterran   Trinidad LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Domestic
    	
 
    	
45-5426735
    
	
Exterran Venezuela, S.R.L.
    	
 
    	
Wholly   owned
    	
 
    	
Venezuela
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-1063810
    
	
Exterran   Water Solutions ULC
    	
 
    	
Wholly   owned
    	
 
    	
Alberta,   Canada
    	
 
    	
Unlimited   liability corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-0693464
    
	
ExterranEnergy Solutions Ecuador Cia. Ltda.
    	
 
    	
Wholly   owned
    	
 
    	
Ecuador
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-0701361
    
	
Gas Conditioning of Mexico, S. de R.L. de   C.V.
    	
 
    	
Wholly   owned
    	
 
    	
Mexico
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
H.C.C. Compressor de Venezuela, C.A.  
    	
 
    	
Wholly   owned
    	
 
    	
Venezuela
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Hanover   Asia LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Domestic
    	
 
    	
76-0642996
    
	
Hanover   Cayman Limited
    	
 
    	
Wholly   owned
    	
 
    	
Cayman   Islands
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
LLC   Exterran Vostok
    	
 
    	
Wholly   owned
    	
 
    	
Russia
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-1039595
    
	
Production   Operators Cayman Inc.
    	
 
    	
Wholly   owned
    	
 
    	
Cayman   Islands
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
PT.   Exterran Indonesia
    	
 
    	
Wholly   owned
    	
 
    	
Indonesia
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Quimex   Sarl
    	
 
    	
Wholly   owned
    	
 
    	
Switzerland
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-1085245
    
	
Quimex   Tunisia Sarl
    	
 
    	
Wholly   owned
    	
 
    	
Tunisia
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
UCI   GP LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Domestic
    	
 
    	
 
    
	
UCO   Compression Holding, L.L.C.
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
Excluded
    	
 
    	
Foreign
    	
 
    	
76-0593928
    
	
Universal   Compression Cayman Ltd.
    	
 
    	
Wholly   owned
    	
 
    	
Cayman   Islands
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Universal   Compression International Holdings, S.L.U.
    	
 
    	
Wholly   owned
    	
 
    	
Spain
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-0683928
    
	
Universal   Compression International Ltd.
    	
 
    	
Wholly   owned
    	
 
    	
Cayman   Islands
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Universal   Compression International, L.P.
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   partnership
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Domestic
    	
 
    	
76-0580285
    
	
Universal   Compression Mauritius
    	
 
    	
Wholly   owned
    	
 
    	
Mauritius
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
Universal   Compression of Colombia Ltd.
    	
 
    	
Wholly   owned
    	
 
    	
Cayman   Islands
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    

 

15

 

	
Universal   Compression Services, LLC
    	
 
    	
Wholly   owned
    	
 
    	
Delaware
    	
 
    	
Limited   liability company
    	
 
    	
Restricted
    	
 
    	
Excluded
    	
 
    	
Domestic
    	
 
    	
76-0593931
    
	
Uniwhale   Ltd.
    	
 
    	
75%   owned
    	
 
    	
Cayman   Islands
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
 
    
	
WilPro   Energy Services (El Furrial) Limited
    	
 
    	
33.33%   owned
    	
 
    	
Cayman   Islands
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
98-0173905
    
	
WilPro   Energy Services (PIGAP II) Limited
    	
 
    	
30%   owned
    	
 
    	
Cayman   Islands
    	
 
    	
Corporation
    	
 
    	
Restricted
    	
 
    	
 
    	
 
    	
Foreign
    	
 
    	
52-2120356
    

 

16

 

Schedule 7.16

 

ENVIRONMENTAL MATTERS

 

None.

 

 

Schedule 7.19

 

HEDGING AGREEMENTS

 

None.

 

 

Schedule 7.20

 

RESTRICTIONS ON LIENS

 

None.

 

 

Schedule 7.22

 

JURISDICTIONS FOR MORTGAGE FILINGS

 

	
Real Property Address
    	
 
    	
Owner as of
   the Initial Availability Date
    	
 
    	
Jurisdiction
    
	
20602 E 81st Street S.
   Broken Arrow, Oklahoma 74014
    	
 
    	
Exterran Energy Solutions, L.P.
    	
 
    	
Wagoner County, Oklahoma
    
	
12001 N Houston Rosslyn Road
   Houston, Texas 77086
    	
 
    	
Exterran Energy Solutions, L.P.
    	
 
    	
Harris County, Texas
    
	
4444 Brittmoore Road
   Houston, Texas 77041
    	
 
    	
Exterran Energy Solutions, L.P.
    	
 
    	
Harris County, Texas
    
	
4506 Brittmoore Road
   Houston, Texas 77041
    	
 
    	
Exterran Energy Solutions, L.P.
    	
 
    	
Harris County, Texas
    
	
4510 Brittmoore Road
   Houston, Texas 77041
    	
 
    	
Exterran Energy Solutions, L.P.
    	
 
    	
Harris County, Texas
    

 

 

Schedule 7.23

 

FLOOD PROPERTIES

 

The following addresses are real property locations that contain Buildings or Manufactured (Mobile) Homes:

 

	
Real Property Address
    	
 
    	
Owner as of
   the Initial Availability Date
    
	
20602 E 81st Street S.
   Broken Arrow, Oklahoma 74014
    	
 
    	
Exterran Energy Solutions, L.P.
    
	
12001 N Houston Rosslyn Road
   Houston, Texas 77086
    	
 
    	
Exterran Energy Solutions, L.P.
    
	
4444 Brittmoore Road
   Houston, Texas 77041
    	
 
    	
Exterran Energy Solutions, L.P.
    
	
4506 Brittmoore Road
   Houston, Texas 77041
    	
 
    	
Exterran Energy Solutions, L.P.
    
	
4510 Brittmoore Road
   Houston, Texas 77041
    	
 
    	
Exterran Energy Solutions, L.P.
    

 

 

Schedule 8.06

 

EXCLUDED COLLATERAL

 

Each reference to Collateral or to any relevant type or item of Property constituting Collateral shall be deemed to exclude (i) tangible Property that is not located in the continental United States (including its possessions), (ii) motor vehicles, forklifts, trailers, photocopiers or any property which may be covered by a certificate of title, (iii) any lease, license, contract, property rights or agreement to which the Borrower or any Subsidiary is a party or any of its rights or interests thereunder if and for so long as the grant of such security interest shall constitute or result in (A) the abandonment, invalidation or unenforceability of any right, title or interest of such Person therein or (B) in a breach or termination pursuant to the terms of, or a default under, any such lease, license, contract property rights or agreement (other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code); provided, however, that such security interest shall, unless otherwise not excluded from the Collateral under the Loan Documents, attach immediately at such time as the condition causing such abandonment, invalidation or unenforceability  shall be remedied and to the extent severable, shall attach immediately to any portion of such lease, license, contract, property rights or agreement that does not result in any of the consequences specified in (A) or (B) above.

 

 

Schedule 9.01

 

INDEBTEDNESS

 

The miscellaneous equipment leases and other equipment financings set forth on Schedule 9.02 are incorporated herein by reference.

 

 

(a)           Schedule 9.02

 

LIENS

 

The following UCC filings securing obligations under equipment leases and other equipment financings under Exterran Energy Solutions, L.P. (as Listed Debtor) recorded in the State of Delaware:

 

(b)

 

	
Original Instrument No.
    	
 
    	
Collateral Description
    	
 
    	
Secured Creditor
    
	
2010 01089493
    	
 
    	
All of the equipment now   or hereafter leased by Lessor to Lessee; and all accessions, additions,   replacements, and substitutions thereto and therefore; and all proceeds   including insurance proceeds thereof
    	
 
    	
NMHG Financial Services Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2012 21112392
    	
 
    	
All parts, items and   products as set forth on Exhibit A to the UCC Financing Statement.  The foregoing parts, items and products, as   well as any and all after acquired parts, items and products that Exterran   Energy Solutions, L.P. may consign from Hagemeyer North America, Inc.   going forward and that may be located at 12001 N. Houston Rosslyn, Houston TX   77086, or at any other Exterran Energy Solutions, L.P. location, shall be   deemed collateral.

*Collateral consists of   equipment: abrasives, saw blades, welding equipment, safety equipment, tapes,   lubricants, paint brushes, drill bits, etc. 
    	
 
    	
Hagemeyer North America, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2012 21204520
    	
 
    	
Title to the Goods stored   at the Facility shall remain vested in Bailor until Bailee uses such Goods,   at which time title to such used Goods will transfer to Bailee.  Bailee hereby authorizes Bailor to file   financing statements in the number and form reasonably required by Bailor to   provide notice of the transaction contemplated by this Agreement.  Bailee will from time to time do and   perform any other act and will 
    	
 
    	
Summers Group, Inc. DBA Rexel
    

 

24

 

	
 
    	
 
    	
execute any and all   additional documents or papers as required by Bailor for the purpose of   protecting  Bailor’s title to such   Goods.  Bailee shall designate the   Goods (described on attached Exhibit A to the UCC Financing Statement)   stored at the Facility as the property of Bailor and shall keep such Goods   physically segregated from Bailee’s other inventory.

*Collateral consists of   various pieces of equipment and tools
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2012 24433639
    	
 
    	
All of the equipment now   or hereafter leased by Lessor to Lessee; and all accessions, additions,   replacements, and substitutions thereto and therefore; and all proceeds   including insurance proceeds thereof
    	
 
    	
NMHG Financial Services, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2013 32982164
    	
 
    	
Consignment of tubing
    	
 
    	
Marmon/Keystone LLC
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2014 42504785 
    	
 
    	
All of the equipment now or hereafter leased by Lessor to Lessee; and   all accessions, additions, replacements, and substitutions thereto and   therefore; and all proceeds including insurance proceeds thereof
    	
 
    	
NMHG Financial Services, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2014 44295697
    	
 
    	
RANPAK STANDARD PAD PAK JR SN 11306800
    	
 
    	
Carlson Systems LLC
    

 

25

 

Schedule 9.03

 

INVESTMENTS, LOANS AND ADVANCES

 

(c)

 

None.

 

26

 

Schedule 9.11(f)

 

PERMITTED DISPOSITIONS OF PROPERTY

 

[To be provided upon request]

 

 

Schedule 9.13

 

TRANSACTIONS WITH AFFILIATES

 

(d)

 

None.Exhibit

EXHIBIT 10.1

STERICYCLE, INC.

$150,000,000 2.89% Senior Notes, Series A,
due October 1, 2021
$150,000,000 3.18% Senior Notes, Series B,
due October 1, 2023

________________
NOTE PURCHASE AGREEMENT
________________
DATED AS OF OCTOBER 1, 2015

TABLE OF CONTENTS

SECTION            HEADING                            PAGE

SECTION 1.    AUTHORIZATION OF NOTES                        1
Section 1.1.    Description of Notes                            1
Section 1.2.    Interest Rate                                1

SECTION 2.    SALE AND PURCHASE OF NOTES                    2
Section 2.1.    Notes                                    2
Section 2.2.    Subsidiary Guaranty                            2

SECTION 3.    CLOSING                                    2

SECTION 4.    CONDITIONS TO CLOSING                        3
Section 4.1.    Representations and Warranties                    3
Section 4.2.    Performance; No Default                        3
Section 4.3.    Compliance Certificates                        3
Section 4.4.    Opinions of Counsel                            4
Section 4.5.    Purchase Permitted By Applicable Law, Etc                4
Section 4.6.    Sale of Other Notes                            4
Section 4.7.    Payment of Special Counsel Fees                    5
Section 4.8.    Private Placement Number                        5
Section 4.9.    Changes in Corporate Structure                    5
Section 4.10.    Subsidiary Guaranty                            5
Section 4.11.    Consents and Approvals                        5
Section 4.12.    Funding Instructions                            5
Section 4.13.    Equity Issuance                            5
Section 4.14.    Proceedings and Documents                        5

SECTION 5.    REPRESENTATIONS AND WARRANTIES OF THE COMPANY        6
Section 5.1.    Organization; Power and Authority                    6
Section 5.2.    Authorization, Etc                            6
Section 5.3.    Disclosure                                6
Section 5.4.    Organization and Ownership of Shares of Subsidiaries; Affiliates    7
Section 5.5.    Financial Statements; Material Liabilities                8
Section 5.6.    Compliance with Laws, Other Instruments, Etc            8
Section 5.7.    Governmental Authorizations, Etc                    8
Section 5.8.    Litigation; Observance of Agreements, Statutes and Orders        8
Section 5.9.    Taxes                                    9
Section 5.10.    Title to Property; Leases                        9
Section 5.11.    Licenses, Permits, Etc                            9
Section 5.12.    Compliance with ERISA                        10
Section 5.13.    Private Offering by the Company                    11
Section 5.14.    Use of Proceeds; Margin Regulations                    11

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Section 5.15.    Existing Debt; Future Liens                        11
Section 5.16.    Foreign Assets Control Regulations, Etc                12
Section 5.17.    Status under Certain Statutes                        14
Section 5.18.    Environmental Matters                        14
Section 5.19.    Notes Rank Pari Passu                        14

SECTION 6.    REPRESENTATIONS OF THE PURCHASERS                14
Section 6.1.    Purchase for Investment                        14
Section 6.2.    Accredited Investor                            15
Section 6.3.    Source of Funds                            15

SECTION 7.    INFORMATION AS TO COMPANY                    17
Section 7.1.    Financial and Business Information                    17
Section 7.2.    Officer’s Certificate                            20
Section 7.3.    Visitation                                20

SECTION 8.    PAYMENT OF THE NOTES                            21
Section 8.1.    Required Prepayments                        21
Section 8.2.    Optional Prepayments with Make-Whole Amount            21
Section 8.3.    Allocation of Partial Prepayments                    21
Section 8.4.    Maturity; Surrender, Etc.                        22
Section 8.5.    Purchase of Notes                            22
Section 8.6.    Make‐Whole Amount                            22
Section 8.7.    Change in Control                            24

SECTION 9.    AFFIRMATIVE COVENANTS                        26
Section 9.1.    Compliance with Law                            26
Section 9.2.    Insurance                                26
Section 9.3.    Maintenance of Properties                        27
Section 9.4.    Payment of Taxes and Claims                        27
Section 9.5.    Existence, Etc                                27
Section 9.6.    Notes to Rank Pari Passu                        27
Section 9.7.    Additional Subsidiary Guarantors                    28
Section 9.8.    Books and Records                            29
Section 9.9.    Increased Interest Rate                        29
Section 9.10.    Note Rating                                29

SECTION 10.    NEGATIVE COVENANTS                            29
Section 10.1.    Consolidated Leverage Ratio; Priority Deb                29
Section 10.2.    Interest Coverage Ratio                        30
Section 10.3.    Limitation on Liens                            30
Section 10.4.    Sales of Asset                                32
Section 10.5.    Merger and Consolidation                        33
Section 10.6.    Line of Business                            34
Section 10.7.    Transactions with Affiliates                        34

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Section 10.8.    Terrorism Sanctions Regulations                    34

SECTION 11.    EVENTS OF DEFAULT                            35

SECTION 12.    REMEDIES ON DEFAULT, ETC                        37
Section 12.1.    Acceleration                                37
Section 12.2.    Other Remedies                            38
Section 12.3.    Rescission                                38
Section 12.4.    No Waivers or Election of Remedies, Expenses, Etc            39

SECTION 13.    REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES        39
Section 13.1.    Registration of Notes                            39
Section 13.2.    Transfer and Exchange of Notes                    39
Section 13.3.    Replacement of Notes                            40

SECTION 14.    PAYMENTS ON NOTES                            41
Section 14.1.    Place of Payment                            41
Section 14.2.    Home Office Payment                            41

SECTION 15.    EXPENSES, ETC                                41
Section 15.1.    Transaction Expenses                            42
Section 15.2.    Survival                                42

SECTION 16.    SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT                                        42

SECTION 17.    AMENDMENT AND WAIVER                        42
Section 17.1.    Requirements                                42
Section 17.2.    Solicitation of Holders of Notes                    43
Section 17.3.    Binding Effect, Etc                            43
Section 17.4.    Notes Held by Company, Etc                        44

SECTION 18.    NOTICES                                    44

SECTION 19.    REPRODUCTION OF DOCUMENTS                    44

SECTION 20.    CONFIDENTIAL INFORMATION                        45

SECTION 21.    SUBSTITUTION OF PURCHASER                        46

SECTION 22.    MISCELLANEOUS                                47
Section 22.1.    Successors and Assigns                        47
Section 22.2.    Payments Due on Non-Business Days                47
Section 22.3.    Accounting Terms                            47
Section 22.4.    Severability                                47

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Section 22.5.    Construction                                48
Section 22.6.    Counterparts                                48
Section 22.7.    Governing Law                            48
Section 22.8.    Jurisdiction and Process; Waiver of Jury Trial            48

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SCHEDULE A    —    Information Relating to Purchasers

SCHEDULE B    —    Defined Terms

SCHEDULE 4.9    —    Changes in Corporate Structure

		
	SCHEDULE 5.4
	—    Subsidiaries of the Company, Ownership of Subsidiary Stock, Investments, Affiliates, Directors and Officers

SCHEDULE 5.5    —    Financial Statements

SCHEDULE 5.11    —    Licenses, Permits, Etc.

SCHEDULE 5.15    —    Existing Debt

SCHEDULE 10.3    —    Existing Liens

		
	EXHIBIT 1(a)
	—    Form of 2.89% Senior Notes, Series A, due October 1, 2021

		
	EXHIBIT 1(b)
	—    Form of 3.18% Senior Notes, Series B, due October 1, 2023

EXHIBIT 2.2    —    Form of Subsidiary Guaranty

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

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

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STERICYCLE, INC.
28161 NORTH KEITH DRIVE
LAKE FOREST, ILLINOIS  60045
$150,000,000 2.89% SENIOR NOTES, 
SERIES A, DUE OCTOBER 1, 2021
$150,000,000 3.18% SENIOR NOTES, 
SERIES B, DUE OCTOBER 1, 2023
Dated as of 
October 1, 2015
TO THE PURCHASERS LISTED IN
THE ATTACHED SCHEDULE A:
Ladies and Gentlemen:
STERICYCLE, INC., a Delaware corporation (the “Company”), agrees with the Purchasers listed in the attached Schedule A (the “Purchasers”) to this Note Purchase Agreement (this “Agreement”) as follows:
		
	SECTION 1.
	AUTHORIZATION OF NOTES.

Section 1.1.    Description of Notes. The Company will authorize the issue and sale of (a) $150,000,000 aggregate principal amount of its 2.89% Senior Notes, Series A, due October 1, 2021 (the “Series A Notes”) and (b) $150,000,000 aggregate principal amount of its 3.18% Senior Notes, Series B, due October 1, 2023 (the “Series B Notes” and together with the Series A Notes, individually a “Note” and collectively, the “Notes”).  The term “Notes” shall also include any such notes issued in substitution therefor pursuant to Section 13 of this Agreement.  The Notes shall be substantially in the forms set out in Exhibit 1(a) and Exhibit 1(b), respectively, with such changes therefrom, if any, as may be approved by each Purchaser and the Company.  Certain capitalized terms used in this Agreement are defined in Schedule B; references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.
Section 1.2.    Interest Rate.  The Notes shall bear interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid principal thereof from the date of issuance at their respective stated rates of interest payable semiannually in arrears on the first (1st) day of April and October in each year and at maturity commencing on April 1, 2016, until such principal sum shall 

Stericycle, Inc.        Note Purchase Agreement

have become due and payable (whether at maturity, upon notice of prepayment or otherwise) and interest (so computed) on any overdue principal, interest or Make-Whole Amount from the due date thereof (whether by acceleration or otherwise) and, during the continuance of an Event of Default, on the unpaid balance hereof, at the applicable Default Rate until paid.
		
	SECTION 2.
	SALE AND PURCHASE OF NOTES.

Section 2.1.    Notes.  Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from the Company, at the Closing provided for in Section 3, the Notes of the respective Series and in the principal amount specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount thereof.  The obligations of each Purchaser hereunder are several and not joint obligations, and each Purchaser shall have no obligation and no liability to any Person for the performance or nonperformance by any other Purchaser hereunder.
Section 2.2.    Subsidiary Guaranty.  (a) The payment by the Company of all amounts due with respect to the Notes and the performance by the Company of its obligations under this Agreement will be absolutely and unconditionally guaranteed by the Subsidiary Guarantors pursuant to the Subsidiary Guaranty Agreement dated as of October 1, 2015, which shall be substantially in the form of Exhibit 2.2 attached hereto, and otherwise in accordance with the provisions of Section 9.7 hereof (the “Subsidiary Guaranty”).
(b)    If the Company sells, leases or otherwise disposes of all or substantially all of the assets or capital stock of any Subsidiary Guarantor to any Person (other than an Affiliate), the holders of the Notes agree to discharge and release such Subsidiary Guarantor from the Subsidiary Guaranty upon the written request of the Company, provided that at the time of such release and discharge, the Company shall deliver a certificate of a Responsible Officer to the holders of the Notes stating that no Default or Event of Default exists or will exist upon such release and discharge.
		
	SECTION 3.
	CLOSING.

The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago, Illinois 60603 at 10:00 a.m. Central time, at a closing (the “Closing”) on October 1, 2015 or on such other Business Day thereafter as may be agreed upon by the Company and the Purchasers.   On the date of the Closing, the Company will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form of a single Note for each Series (or such greater number of Notes in denominations of at least $100,000 as such Purchaser may request) dated the date of the Closing and registered in such Purchaser’s name (or in the name of such Purchaser’s nominee), against delivery by such Purchaser 

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Stericycle, Inc.        Note Purchase Agreement

to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to Account Number 8765802766, at Bank of America, N.A., Chicago, Illinois, ABA Number 026009593, in the Account Name of “Stericycle, Inc.”  If, on the date of the Closing, the Company shall fail to tender such Notes to any Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to any Purchaser’s satisfaction, such Purchaser shall, at such Purchaser’s election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure or such nonfulfillment.
		
	SECTION 4.
	CONDITIONS TO CLOSING.

Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing, of the following conditions:
Section 4.1.    Representations and Warranties.
(a)    Representations and Warranties of the Company.  The representations and warranties of the Company in this Agreement shall be correct when made and at the time of the Closing.
(b)    Representations and Warranties of the Subsidiary Guarantors. The representations and warranties of the Subsidiary Guarantors in the Subsidiary Guaranty shall be correct when made and at the time of the Closing.
Section 4.2.    Performance; No Default.  The Company and the Subsidiary Guarantors shall have performed and complied with all agreements and conditions contained in this Agreement and the Subsidiary Guaranty required to be performed or complied with by the Company and the Subsidiary Guarantors prior to or at the Closing, and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Section 5.14), no Default or Event of Default shall have occurred and be continuing.  Neither the Company nor any Subsidiary shall have entered into any transaction since the date of the Memorandum that would have been prohibited by Section 10 hereof had such Section applied since such date.
Section 4.3.    Compliance Certificates.
(a)    Officer’s Certificate of the Company.  The Company shall have delivered to such Purchaser an Officer’s Certificate, dated the date of the Closing, certifying that the conditions specified in Sections 4.1(a), 4.2 and 4.9 have been fulfilled.

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Stericycle, Inc.        Note Purchase Agreement

(b)    Secretary’s Certificate of the Company.  The Company shall have delivered to such Purchaser a certificate, dated the date of the Closing, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement.
(c)    Officer’s Certificate of the Subsidiary Guarantors.  The Subsidiary Guarantors shall have delivered to such Purchaser an Officer’s Certificate, dated the date of the Closing, certifying that the conditions specified in Sections 4.1(b), 4.2 and 4.9 have been fulfilled.
(d)    Secretary’s Certificate of the Subsidiary Guarantors.  The Subsidiary Guarantors shall have delivered to such Purchaser a certificate, dated the date of the Closing, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Subsidiary Guaranty.
Section 4.4.    Opinions of Counsel.  Such Purchaser shall have received opinions in form and substance satisfactory to such Purchaser, dated the date of the Closing (a) from Johnson and Colmar, special counsel for the Company and the Subsidiary Guarantors, covering the matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company and the Subsidiary Guarantors hereby instruct counsel to deliver such opinion to the Purchasers), and (b) from Chapman and Cutler LLP, the Purchasers’ special counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(b) and covering such other matters incident to such transactions as such Purchaser may reasonably request.
Section 4.5.    Purchase Permitted By Applicable Law, Etc.  On the date of the Closing such Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof.  If requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.
Section 4.6.    Sale of Other Notes.  Contemporaneously with the Closing the Company shall sell to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased by it at the Closing as specified in Schedule A.

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Stericycle, Inc.        Note Purchase Agreement

Section 4.7.    Payment of Special Counsel Fees.  Without limiting the provisions of Section 15.1, the Company shall have paid on or before the date of the Closing, the reasonable fees, reasonable charges and reasonable disbursements of the Purchasers’ special counsel referred to in Section 4.4 to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the date of the Closing.
Section 4.8.    Private Placement Number.  A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the Securities Valuation Office of the National Association of Insurance Commissioners) shall have been obtained for each Series of the Notes.
Section 4.9.    Changes in Corporate Structure.  Neither the Company nor any Subsidiary Guarantor shall have changed its jurisdiction of organization or, except as reflected in Schedule 4.9, been a party to any merger or consolidation, or shall have succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5.
Section 4.10.    Subsidiary Guaranty.  The Subsidiary Guaranty shall have been duly authorized, executed and delivered by the Subsidiary Guarantors, shall constitute the legal, valid and binding and enforceable contract and agreement of the Subsidiary Guarantors and such Purchaser shall have received a true, correct and complete copy thereof.
Section 4.11.    Consents and Approvals.  The Company shall have obtained any consents or approvals required to be obtained from any holder or holders of any outstanding security of the Company and any amendments of agreements pursuant to which any security may have been issued which shall be necessary to permit the consummation of the transactions contemplated by this Agreement.
Section 4.12.    Funding Instructions.  At least three Business Days prior to the date of the Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3 including (i) the name and address of the transferee bank, (ii) such transferee bank’s ABA number, (iii) the account name and number into which the purchase price for the Notes is to be deposited and (iv) the name and telephone number of the account representative responsible for verifying receipt of such funds.
Section 4.13.    Equity Issuance    .  The Company shall provide evidence reasonably satisfactory to such Purchaser that the Company has received at least $400,000,000 in net cash proceeds from an Equity Issuance after August 31, 2015 and prior to the date of Closing. 
Section 4.14.    Proceedings and Documents.  All corporate and other organizational proceedings in connection with the transactions contemplated by this Agreement and all documents 

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Stericycle, Inc.        Note Purchase Agreement

and instruments incident to such transactions shall be satisfactory to such Purchaser and its special counsel, and such Purchaser and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request.
SECTION 5.    REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
The Company represents and warrants to each Purchaser that:
Section 5.1.    Organization; Power and Authority.  The Company is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The Company has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to perform the provisions hereof and thereof.
Section 5.2.    Authorization, Etc.  This Agreement and the Notes have been duly authorized by all necessary corporate action on the part of the Company, and this Agreement constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
Section 5.3.    Disclosure.  The Company, through its agent, Merrill Lynch, Pierce, Fenner & Smith Incorporated, has delivered to each Purchaser a copy of a Private Placement Memorandum, dated September 2015 (the “Memorandum”), relating to the transactions contemplated hereby.  The Memorandum fairly describes, in all material respects, the general nature of the business and principal properties of the Company and its Subsidiaries.  This Agreement, the Memorandum, the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated hereby and the financial statements listed in Schedule 5.5 (this Agreement, the Memorandum and such documents, certificates or other writings and such financial statements being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which 

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Stericycle, Inc.        Note Purchase Agreement

they were made; provided that with respect to forward‐looking information including projected financial information, the Company represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.  Except as disclosed in the Disclosure Documents, since December 31, 2014, there has been no change in the financial condition, operations, business or properties of the Company or any of its Subsidiaries except changes that individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect.  There is no fact known to the Company that would reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents.
Section 5.4.    Organization and Ownership of Shares of Subsidiaries; Affiliates.  (a) Schedule 5.4 contains (except as noted therein) complete and correct lists (i) of the Company’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary, and all other Investments of the Company and its Subsidiaries, (ii) of the Company’s Affiliates, other than Subsidiaries, and (iii) of the Company’s directors and senior officers.
(b)    All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.4).
(c)    Each Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact.
(d)    No Subsidiary is a party to, or otherwise subject to, any legal, regulatory, contractual or other restriction (other than this Agreement, the agreements listed on Schedule 5.4 and customary limitations imposed by corporate law or similar statutes) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary.

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Stericycle, Inc.        Note Purchase Agreement

Section 5.5.    Financial Statements; Material Liabilities.  The Company has delivered to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on Schedule 5.5.  All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial position of the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments).  The Company and its Subsidiaries do not have any Material liabilities that are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.
Section 5.6.    Compliance with Laws, Other Instruments, Etc.  The execution, delivery and performance by the Company of this Agreement and the Notes will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary, or (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary.  
Section 5.7.    Governmental Authorizations, Etc.  No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement or the Notes, other than a customary 8‐K filing of this Agreement after its execution.  
Section 5.8.    Litigation; Observance of Agreements, Statutes and Orders.  (a) There are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.
(b)    Neither the Company nor any Subsidiary is in default under any term of any agreement or instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including without limitation Environmental Laws, the USA PATRIOT Act or 

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Stericycle, Inc.        Note Purchase Agreement

any of the other laws and regulations that are referred to in Section 5.16), which default or violation, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.
Section 5.9.    Taxes.  The Company and its Subsidiaries have filed all tax returns that are required to have been filed by them in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (a) the amount of which is not individually or in the aggregate Material or (b) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP.  The Company knows of no basis for any other tax or assessment applicable to it or its Subsidiaries that would reasonably be expected to have a Material Adverse Effect.  The charges, accruals and reserves on the books of the Company and its Subsidiaries in respect of federal, state or other taxes for all fiscal periods are adequate.  The federal income tax liabilities of the Company and its Subsidiaries have been finally determined (whether by reason of completed audits or the statute of limitations having run) for all fiscal years up to and including the fiscal year ended December 31, 2010.
Section 5.10.    Title to Property; Leases.  The Company and its Subsidiaries have good and sufficient title to their respective properties which the Company and its Subsidiaries own or purport to own that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement.  All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all material respects.
Section 5.11.    Licenses, Permits, Etc.  Except as disclosed in Schedule 5.11,
(a)    the Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known conflict with the rights of others;
(b)    to the best knowledge of the Company, no product of the Company or any of its Subsidiaries infringes in any Material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by any other Person; and

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Stericycle, Inc.        Note Purchase Agreement

(c)    to the best knowledge of the Company, there is no Material violation by any Person of any right of the Company or any of its Subsidiaries with respect to any patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by the Company or any of its Subsidiaries.
Section 5.12.    Compliance with ERISA.  (a) The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and would not reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that would reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to section 430(k) of the Code or to any such penalty or excise tax provisions under the Code or federal law or section 4068 of ERISA or by the granting of a security interest in connection with the amendment of a Plan, other than such liabilities or Liens as would not be individually or in the aggregate Material.
(b)    Neither the Company nor any ERISA Affiliate maintains or has maintained a Plan that is or was subject to the “minimum funding standards” under section 302 of ERISA or that is or was subject to Title IV of ERISA.
(c)    The Company and its ERISA Affiliates have not incurred any withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material.
(d)    The expected post-retirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 715‐60, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Company and its Subsidiaries is not Material.
(e)    The execution and delivery of this Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of Section 406 of ERISA or in connection with which a tax would be imposed pursuant to Section 4975(c)(1)(A)‐(D) of the Code.  The representation by the Company in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of each Purchaser’s representation in Section 6.3 as to 

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the sources of the funds to be used to pay the purchase price of the Notes to be purchased by such Purchaser.
Section 5.13.    Private Offering by the Company.  Neither the Company nor anyone acting on the Company’s behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Purchasers and not more than forty-five (45) other Institutional Investors, each of which has been offered the Notes in connection with a private sale for investment.  Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.
Section 5.14.    Use of Proceeds; Margin Regulations.  The Company will apply the proceeds of the sale of the Notes to refinance existing Debt and for general corporate purposes of the Company.  No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).  Margin stock does not constitute more than 5% of the value of the consolidated assets of the Company and its Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 5% of the value of such assets.  As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.
Section 5.15.    Existing Debt; Future Liens.  (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Debt of the Company and its Subsidiaries as of June 30, 2015 (including a description of the obligors and obligees, principal amount outstanding and collateral therefor, if any, and Guaranty thereof, if any), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Debt of the Company or its Subsidiaries.  Neither the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Debt of the Company or such Subsidiary, and no event or condition exists with respect to any Debt of the Company or any Subsidiary, that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Debt to become due and payable before its stated maturity or before its regularly scheduled dates of payment.
(b)    Except as disclosed in Schedule 5.15, neither the Company nor any Subsidiary has agreed or consented to cause or permit in the future (upon the happening of a contingency or 

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otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by Section 10.3.
(c)    Neither the Company nor any Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Debt of the Company or such Subsidiary, any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Debt of the Company, except as specifically indicated in Schedule 5.15.
Section 5.16.    Foreign Assets Control Regulations, Etc.  (a) Neither the Company nor any Controlled Entity is (i) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by the Office of Foreign Assets Control, United States Department of the Treasury (“OFAC”) (an “OFAC Listed Person”), (ii) an agent, department, or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, (x) any OFAC Listed Person or (y) any Person, entity, organization, foreign country or regime that is subject to any OFAC Sanctions Program or (iii) otherwise blocked, subject to sanctions under or engaged in any activity in violation of other United States economic sanctions, including but not limited to, the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Comprehensive Iran Sanctions, Accountability and Divestment Act (“CISADA”) or any similar law or regulation with respect to Iran or any other country, the Sudan Accountability and Divestment Act, any OFAC Sanctions Program, or any economic sanctions regulations administered and enforced by the United States or any enabling legislation or executive order relating to any of the foregoing (collectively, “U.S. Economic Sanctions”) (each OFAC Listed Person and each other Person, entity, organization and government of a country described in clause (i), clause (ii) or clause (iii), a “Blocked Person”).  Neither the Company nor any Controlled Entity has been notified that its name appears or may in the future appear on a state list of Persons that engage in investment or other commercial activities in Iran or any other country that is subject to U.S. Economic Sanctions.
(b)    No part of the proceeds from the sale of the Notes hereunder constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (i) in connection with any investment in, or any transactions or dealings with, any Blocked Person, or (ii) otherwise in violation of U.S. Economic Sanctions.
(c)    Neither the Company nor any Controlled Entity (i) has been found in violation of, charged with, or convicted of, money laundering, drug trafficking, terrorist‐related activities or other money laundering predicate crimes under the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act), the USA PATRIOT Act or any other United States law or regulation governing such activities (collectively, “Anti‐Money Laundering Laws”) 

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or any U.S. Economic Sanctions violations, (ii) to the Company’s actual knowledge after making due inquiry, is under investigation by any Governmental Authority for possible violation of Anti‐Money Laundering Laws or any U.S. Economic Sanctions violations, (iii) has been assessed civil penalties under any Anti‐Money Laundering Laws or any U.S. Economic Sanctions, or (iv) has had any of its funds seized or forfeited in an action under any Anti‐Money Laundering Laws. The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable current and future Anti‐Money Laundering Laws and U.S. Economic Sanctions..
(d)    (1) Neither the Company nor any Controlled Entity (i) has been charged with, or convicted of bribery or any other anti‐corruption related activity under any applicable law or regulation in a U.S. or any non‐U.S. country or jurisdiction, including but not limited to, the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010 (collectively, “Anti‐Corruption Laws”), (ii) to the Company’s actual knowledge after making due inquiry, is under investigation by any U.S. or non‐U.S. Governmental Authority for possible violation of Anti‐Corruption Laws, (iii) has been assessed civil or criminal penalties under any Anti‐Corruption Laws or (iv) has been or is the target of sanctions imposed by the United Nations or the European Union;
(2)    To the Company’s actual knowledge after making due inquiry, neither the Company nor any Controlled Entity has, within the last five years, directly or indirectly offered, promised, given, paid or authorized the offer, promise, giving or payment of anything of value to a Governmental Official or a commercial counterparty for the purposes of: (i) influencing any act, decision or failure to act by such Governmental Official in his or her official capacity or such commercial counterparty, (ii) inducing a Governmental Official to do or omit to do any act in violation of the Governmental Official’s lawful duty, or (iii) inducing a Governmental Official or a commercial counterparty to use his or her influence with a government or instrumentality to affect any act or decision of such government or entity; in each case in order to obtain, retain or direct business or to otherwise secure an improper advantage in violation of any applicable law or regulation or which would cause any holder to be in violation of any law or regulation applicable to such holder; and
(3)    No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage.  The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable current and future Anti‐Corruption Laws.

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Section 5.17.    Status under Certain Statutes.  Neither the Company nor any Subsidiary is subject to regulation under the Investment Company Act of 1940, as amended, the Public Utility Holding Company Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or the Federal Power Act, as amended.
Section 5.18.    Environmental Matters.  (a) Neither the Company nor any Subsidiary has knowledge of any liability or has received any notice of any liability, and no proceeding has been instituted raising any liability against the Company or any of its Subsidiaries or any of their respective real properties now or formerly owned, leased or operated by any of them, or other assets, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as would not reasonably be expected to result in a Material Adverse Effect.
(b)    Neither the Company nor any Subsidiary has knowledge of any facts which would give rise to any liability, public or private, of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets or their use, except, in each case, such as would not reasonably be expected to result in a Material Adverse Effect.
(c)    Neither the Company nor any of its Subsidiaries has (i) stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them or (ii) disposed of any Hazardous Materials in a manner contrary to any Environmental Laws in each instance in either case in any manner that would reasonably be expected to result in a Material Adverse Effect.
(d)    Neither the Company nor any Subsidiary has disposed of any Hazardous Materials in a manner which is contrary to any Environmental Law that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  
(e)    All buildings on all real properties now owned, leased or operated by the Company or any of its Subsidiaries are in compliance with applicable Environmental Laws, except where failure to comply would not reasonably be expected to result in a Material Adverse Effect.
Section 5.19.    Notes Rank Pari Passu.  The obligations of the Company under this Agreement and the Notes rank pari passu in right of payment with all other senior unsecured Debt (actual or contingent) of the Company, including, without limitation, all senior unsecured Debt of the Company described in Schedule 5.15 hereto.
		
	SECTION 6.
	REPRESENTATIONS OF THE PURCHASERS    .

Section 6.1.    Purchase for Investment.  Each Purchaser severally represents that it is purchasing the Notes for its own account or for one or more separate accounts maintained by it or 

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for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s or such pension or trust funds’ property shall at all times be within such Purchaser’s or such pension or trust funds’ control.  Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes. 
Section 6.2.    Accredited Investor.  Each Purchaser represents that it is an “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act acting for its own account (and not for the account of others) or as a fiduciary or agent for others (which others are also “accredited investors”).   Each Purchaser further represents that such Purchaser has had the opportunity to ask questions of the Company and received answers concerning the terms and conditions of the sale of the Notes.  
Section 6.3.    Source of Funds    .  Each Purchaser severally represents that at least one of the following statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser hereunder:
(a)    the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the NAIC (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or
(b)    the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or

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(c)    the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or
(d)    the Source constitutes assets of an “investment fund” (within the meaning of Part VI of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part VI of the QPAM Exemption), no employee benefit plan’s assets that are managed by the QPAM in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, represent more than 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM maintains an ownership interest in the Company that would cause the QPAM and the Company to be “related” within the meaning of Part VI(h) of the QPAM Exemption and (i) the identity of such QPAM and (ii) the names of any employee benefit plans whose assets in the investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization, represent 10% or more of the assets of such investment fund have been disclosed to the Company in writing pursuant to this clause (d); or
(e)    the Source constitutes assets of a “plan(s)” (within the meaning of Part IV(h) of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV(a) of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in Part IV(d)(3) of the INHAM Exemption) owns a 10% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or
(f)    the Source is a governmental plan; or

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(g)    the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this clause (g); or
(h)    the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA.
As used in this Section 6.3, the terms “employee benefit plan,” “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA.
		
	SECTION 7.
	INFORMATION AS TO COMPANY.

Section 7.1.    Financial and Business Information.  The Company shall deliver to each holder of Notes that is an Institutional Investor:
(a)    Quarterly Statements — within 45 days after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), 
(i)    a consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and
(ii)    consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, 
setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments, provided that filing with the Securities and Exchange Commission within the time period specified above the Company’s Quarterly Report on Form 10‐Q prepared in compliance with the requirements therefor shall be deemed to satisfy the requirements of this Section 7.1(a);
(b)    Annual Statements — within 105 days after the end of each fiscal year of the Company, 

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(i)    a consolidated balance sheet of the Company and its Subsidiaries, as at the end of such year, and
(ii)    consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such year,
setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon of independent certified public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, provided that filing with the Securities and Exchange Commission within the time period specified above of the Company’s Annual Report on Form 10‐K for such fiscal year (together with the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a‐3 under the Exchange Act) prepared in accordance with the requirements therefor shall be deemed to satisfy the requirements of this Section 7.1(b);
(c)    SEC and Other Reports — except for filings referred to in Section 7.1(a) and (b) above, promptly upon their becoming available and, to the extent applicable, one copy of (i) each financial statement, report, notice or proxy statement sent by the Company or any Subsidiary to public securities holders generally, and (ii) each regular or periodic report, each registration statement (without exhibits except as expressly requested by such holder), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the Securities and Exchange Commission, if any and (iii) all press releases and other statements made available generally by the Company or any Subsidiary to the public concerning developments that are Material;
(d)    Notice of Default or Event of Default — promptly, and in any event within five Business Days after a Responsible Officer becomes aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 11(f), a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto;

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(e)    ERISA Matters — promptly, and in any event within five Business Days after a Responsible Officer becomes aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto:
(i)    with respect to any Plan, any reportable event, as defined in Section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date thereof; or
(ii)    the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; or
(iii)    any event, transaction or condition that would result in the incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the imposition of a penalty or excise tax under the provisions of the Code relating to employee benefit plans, or the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, would reasonably be expected to have a Material Adverse Effect;
(f)    Notices from Governmental Authority — promptly, and in any event within 30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from any federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that would reasonably be expected to have a Material Adverse Effect; and
(g)    Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries or relating to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by any such holder of Notes or such information regarding the Company required to satisfy the requirements of 17 C.F.R. §230.144A, as amended from time to time, in connection with any contemplated transfer of the Notes.

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Section 7.2.    Officer’s Certificate.  Each set of financial statements delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) hereof shall be accompanied by a certificate of a Senior Financial Officer setting forth:
(a)    Covenant Compliance — the information required in order to establish whether the Company was in compliance with the requirements of Section 10.1 through Section 10.3 hereof, inclusive, and Section 10.4 during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence).  In the event that the Company or any Subsidiary has made an election to measure any financial liability using fair value (which election is being disregarded for purposes of determining compliance with this Agreement pursuant to Section 22.3) as to the period covered by any such financial statement, such Senior Financial Officer’s certificate as to such period shall include a reconciliation from GAAP with respect to such election; and
(b)    Event of Default — a statement that such officer has reviewed the relevant terms hereof and that such review shall not have disclosed the existence during the quarterly or annual period covered by the statements then being furnished of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.
Section 7.3.    Visitation.  The Company shall permit the representatives of each holder of Notes that is an Institutional Investor:
(a)    No Default — if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers, and (with the consent of the Company, which consent will not be unreasonably withheld) its independent public accountants, and (with the consent of the Company, which consent will not be unreasonably withheld) to visit the other offices and properties of the Company and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and
(b)    Default — if a Default or Event of Default then exists, at the expense of the Company, to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other 

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papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be requested.
		
	SECTION 8.
	PAYMENT OF THE NOTES    .

Section 8.1.    Required Prepayments.  (a) The entire unpaid principal amount of the Series A Notes shall become due and payable on October 1, 2021.
(b)    The entire unpaid principal amount of the Series B Notes shall become due and payable on October 1, 2023.
Section 8.2.    Optional Prepayments with Make-Whole Amount.  The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less than 10% of the original aggregate principal amount of the Notes to be prepaid in the case of a partial prepayment, at 100% of the principal amount so prepaid, together with interest accrued thereon to the date of such prepayment, plus the Make‐Whole Amount, if any, determined for the prepayment date with respect to such principal amount of each Note then outstanding to be prepaid.  The Company will give each holder of Notes written notice of each optional prepayment under this Section 8.2 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment.  Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.3), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation.  Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes to be prepaid a certificate of a Senior Financial Officer specifying the calculation of each such Make‐Whole Amount as of the specified prepayment date.
Section 8.3.    Allocation of Partial Prepayments.  In the case of each partial prepayment of the Notes pursuant to the provisions of Section 8.2, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof.  

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Section 8.4.    Maturity; Surrender, Etc.  In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make‐Whole Amount, if any.  From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make‐Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue.  Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note.
Section 8.5.    Purchase of Notes.  The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except (a) upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes or (b) pursuant to a written offer to purchase any outstanding Notes made by the Company or an Affiliate pro rata to the holders of the Notes upon the same terms and conditions.  The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes.
Section 8.6.    Make‐Whole Amount.  The term “Make‐Whole Amount” means with respect to a Note of any Series an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note, minus the amount of such Called Principal, provided that the Make‐Whole Amount may in no event be less than zero.  For the purposes of determining the Make‐Whole Amount, the following terms have the following meanings with respect to the Called Principal of a Note of any Series:
“Called Principal” means, the principal of any Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.
“Discounted Value” means, the amount obtained by discounting all Remaining Scheduled Payments from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Note of such Series is payable) equal to the Reinvestment Yield.
“Reinvestment Yield” means, .50% over the yield to maturity implied by the yield(s) reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page 

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PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on‐the‐run U.S. Treasury securities (“Reported”) having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there are no such U.S. Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to maturity will be determined by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between the yields Reported for the applicable most recently issued actively traded on‐the‐run U.S. Treasury securities with the maturities (1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.  
If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then “Reinvestment Yield” means, with respect to the Called Principal of any Note, .50% over the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.
“Remaining Average Life” means, the number of years obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment by (b) the number of years, computed on the basis of a 360 day year composed of twelve 30 day months (calculated to two decimal places) that will elapse between the Settlement Date and the scheduled due date of such Remaining Scheduled Payment.
“Remaining Scheduled Payments” means, all payments of such Called Principal and interest thereon that would be due after the Settlement Date if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date 

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is not a date on which interest payments are due to be made under the terms of the Notes of such Series, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or Section 12.1.
“Settlement Date” means, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.
Section 8.7.    Change in Control.   (a) Notice of Change in Control or Control Event.  The Company will, within 15 Business Days after any Responsible Officer has knowledge of the occurrence of any Change in Control or Control Event, give written notice of such Change in Control or Control Event to each holder of the Notes unless notice in respect of such Change in Control (or the Change in Control contemplated by such Control Event) shall have been given pursuant to subparagraph (b) of this Section 8.7.  If a Change in Control has occurred, such notice shall contain and constitute an offer to prepay the Notes as described in subparagraph (c) of this Section 8.7 and shall be accompanied by the certificate described in subparagraph (g) of this Section 8.7.
(b)    Condition to Company Action.  The Company will not take any action that consummates or finalizes a Change in Control unless (i) at least 15 Business Days prior to such action it shall have given to each holder of Notes written notice containing and constituting an offer to prepay Notes as described in subparagraph (c) of this Section 8.7, accompanied by the certificate described in subparagraph (g) of this Section 8.7, and (ii) contemporaneously with such action, it prepays all Notes required to be prepaid in accordance with this Section 8.7.
(c)    Offer to Prepay Notes.  The offer to prepay Notes contemplated by subparagraphs (a) and (b) of this Section 8.7 shall be an offer to prepay, in accordance with and subject to this Section 8.7, all, but not less than all, the Notes of a Series held by each holder (in this case only, “holder” in respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”).  If such Proposed Prepayment Date is in connection with an offer contemplated by subparagraph (a) of this Section 8.7, such date shall be not less than 20 days and not more than 30 days after the date of such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment Date shall be the 20th day after the date of such offer).  For the avoidance of doubt, a holder of Notes may accept a prepayment offer contemplated by this Section 8.7 with respect to one Series of Notes and reject such prepayment offer with respect to the other Series of Notes.

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(d)    Acceptance; Rejection.  A holder of the Notes may accept the offer to prepay made pursuant to this Section 8.7 by causing a notice of such acceptance to be delivered to the Company at least 5 Business Days prior to the Proposed Prepayment Date.  A failure by a holder of the Notes to respond to an offer to prepay made pursuant to this Section 8.7 shall be deemed to constitute a rejection of such offer by such holder.
(e)    Prepayment.  Prepayment of the Notes to be prepaid pursuant to this Section 8.7 shall be at 100% of the principal amount of such Notes, together with interest on such Notes accrued to the date of prepayment.  The prepayment shall be made on the Proposed Prepayment Date except as provided in subparagraph (f) of this Section 8.7.
(f)    Deferral Pending Change in Control.  The obligation of the Company to prepay Notes pursuant to the offers required by subparagraph (b) and accepted in accordance with subparagraph (d) of this Section 8.7 is subject to the occurrence of the Change in Control in respect of which such offers and acceptances shall have been made.  In the event that such Change in Control does not occur on the Proposed Prepayment Date in respect thereof, the prepayment shall be deferred until and shall be made on the date on which such Change in Control occurs.  The Company shall keep each holder of Notes reasonably and timely informed of (i) any such deferral of the date of prepayment, (ii) the date on which such Change in Control and the prepayment are expected to occur, and (iii) any determination by the Company that efforts to effect such Change in Control have ceased or been abandoned (in which case the offers and acceptances made pursuant to this Section 8.7 in respect of such Change in Control shall be deemed rescinded).
(g)    Officer’s Certificate.  Each offer to prepay the Notes pursuant to this Section 8.7 shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated the date of such offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is made pursuant to this Section 8.7; (iii) the principal amount of each Note offered to be prepaid; (iv) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed Prepayment Date; (v) that the conditions of this Section 8.7 have been fulfilled; and (vi) in reasonable detail, the nature and date or proposed date of the Change in Control.
(h)    “Change in Control” Defined.  “Change in Control” means any of the following events or circumstances:
if any Person or Persons acting in concert, together with Affiliates thereof, shall in the aggregate, directly or indirectly, control or own (beneficially or otherwise) more than 50% (by number of shares) of the issued and outstanding voting stock of the Company.

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(i)    “Control Event” Defined.  “Control Event” means:
(i)    the execution by the Company or any of its Subsidiaries or Affiliates of any agreement or letter of intent with respect to any proposed transaction or event or series of transactions or events which, individually or in the aggregate, may reasonably be expected to result in a Change in Control,
(ii)    the execution of any written agreement which, when fully performed by the parties thereto, would result in a Change in Control, or
(iii)    the making of any written offer by any person (as such term is used in section 13(d) and section 14(d)(2) of the Exchange Act as in effect on the date of the Closing) or related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange Act as in effect on the date of the Closing) to the holders of the common stock of the Company, which offer, if accepted by the requisite number of holders, would result in a Change in Control.
		
	SECTION 9.
	AFFIRMATIVE COVENANTS.

The Company covenants that so long as any of the Notes are outstanding:
Section 9.1.    Compliance with Law.  Without limiting Section 10.7, the Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, ERISA, Environmental Laws, the USA PATRIOT Act and the other laws and regulations that are referred to in Section 5.16, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
Section 9.2.    Insurance.  The Company will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations 

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engaged in the same or a similar business and similarly situated except for any non-maintenance that would not reasonably be expected to have a Material Adverse Effect.  
Section 9.3.    Maintenance of Properties.  The Company will, and will cause each of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section shall not prevent the Company or any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Company has concluded that such discontinuance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
Section 9.4.    Payment of Taxes and Claims.  The Company will, and will cause each of its Subsidiaries to, file all tax returns required to be filed by any of them in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of the Company or any Subsidiary not permitted by Section 10.3, provided that neither the Company nor any Subsidiary need pay any such tax or assessment or claims if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the non-filing or nonpayment, as the case may be, of all such taxes and assessments in the aggregate would not reasonably be expected to have a Material Adverse Effect.
Section 9.5.    Existence, Etc.  Subject to Sections 10.4 and 10.5, the Company will at all times preserve and keep in full force and effect its existence, and will at all times preserve and keep in full force and effect the existence of each of its Subsidiaries (unless merged into the Company or a Wholly‐Owned Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such existence, right or franchise would not, individually or in the aggregate, to have a Material Adverse Effect.
Section 9.6.    Notes to Rank Pari Passu. The Notes and all other obligations under this Agreement of the Company are and at all times shall remain direct and (subject to Section 10.3) unsecured obligations of the Company ranking pari passu as against the assets of the Company with all other Notes from time to time issued and outstanding hereunder without any preference 

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among themselves and pari passu with all Debt outstanding under the Bank Credit Agreement and all other present and future unsecured Debt (actual or contingent) of the Company which is not expressed to be subordinate or junior in rank to any other unsecured Debt of the Company.
Section 9.7.    Additional Subsidiary Guarantors.  (a) The Company will cause (i) each Material Subsidiary and (ii) any other Subsidiary which is required by the terms of the Bank Credit Agreement to become a party to, or otherwise guarantee, Debt in respect of the Bank Credit Agreement (other than, in each case of clauses (i) and (ii), any Excluded Subsidiary; provided, that no Subsidiary (other than those Subsidiaries described in clauses (a), (b) or (c) of the definition of “Excluded Subsidiary”) shall issue, Guarantee or incur any debt under the Bank Credit Agreement or any SIT Acquisition Debt unless such Subsidiary is also a Subsidiary Guarantor), to enter into the Subsidiary Guaranty and deliver to each of the holders of the Notes the following items (concurrently with the incurrence of any such obligation pursuant to the Bank Credit Agreement):
(1)    a joinder agreement in respect of the Subsidiary Guaranty;
(2)    a certificate signed by an authorized Responsible Officer of the Company making representations and warranties to the effect of those contained in Sections 5.4, 5.6 and 5.7, with respect to such Subsidiary and the Subsidiary Guaranty, as applicable; and
(3)    an opinion of counsel (who may be in-house counsel for the Company) addressed to each of the holders of the Notes satisfactory to the Required Holders, to the effect that the Subsidiary Guaranty by such Person has been duly authorized, executed and delivered and that the Subsidiary Guaranty constitutes the legal, valid and binding contract and agreement of such Person enforceable in accordance with its terms, except as an enforcement of such terms may be limited by bankruptcy, insolvency, fraudulent conveyance and similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles.
(b)    If at any time a Subsidiary Guarantor is or becomes an Excluded Subsidiary, the holders of the Notes agree to discharge and release such Subsidiary Guarantor from the Subsidiary Guaranty upon the written request of the Company, provided, that at the time of such release and discharge, the Company shall deliver a certificate of a Responsible Officer to the holders of the Notes stating that no Default or Event of Default exists or will exist upon such release and discharge, and the release shall be effective automatically and each holder of Notes shall promptly execute and deliver, at the sole cost and expense of the Company, such documents as the Company may reasonably request to evidence such release.

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Section 9.8.    Books and Records. The Company will, and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case may be.
Section 9.9.    Increased Interest Rate.  (a) If at any time during the Initial Period the Consolidated Leverage Ratio exceeds 3.75 to 1.00 but is at or below 4.00 to 1.00 (a “Primary Event Leverage Increase”), the per annum interest rate (including any Default Rate, if applicable) otherwise applicable to each series of the Notes as specified in the first paragraph thereof shall be increased by 25 basis points (.25%) (the “Primary Increased Interest Rate”) from the date of such Primary Event Leverage Increase to but not including the date that the Consolidated Leverage Ratio is 3.75 to 1.00 or less.  The Company shall promptly, and in any event within 10 Business Days, following a Primary Event Leverage Increase notify the holders of the Notes in writing that a Primary Event Leverage Increase has commenced and the date of such commencement.
(b)    If a Primary Event Leverage Increase shall have occurred, the Company shall notify the holders of the Notes in writing if on any date thereafter the Consolidated Leverage Ratio has been less than 3.75 to 1.00 and such notice shall be accompanied by a certificate of a Senior Financial Officer setting forth the information used in making such determination.
Section 9.10.    Note Rating.  The Company will, at any time during which (a) the Company’s rating is A- or better by S&P or the equivalent rating by any other Rating Agency, (b) the Notes do not then have a private letter rating from a Rating Agency and (c) the Securities Valuation Office of the National Association of Insurance Commissioners does not currently rate the Notes “1”, at the request of the Required Holders, obtain a private letter rating with respect to the Notes from one Rating Agency requested by the Required Holders.
		
	SECTION 10.
	NEGATIVE COVENANTS.

The Company covenants that so long as any of the Notes are outstanding:
Section 10.1.    Consolidated Leverage Ratio; Priority Debt.  (a) The Company will not permit the Consolidated Leverage Ratio to exceed (i) at any time from October 1, 2015 until the earlier to occur of (A) the SIT Acquisition Termination Date and (B) the last day of the first fiscal quarter of the Company ending on or after the first anniversary date of the consummation of the SIT Acquisition (the “Initial Period”), 4.00 to 1.00, and (ii) at any time thereafter, 3.75 to 1.00.
(b)    The Company will not at any time permit Priority Debt to exceed 20% of Consolidated Total Assets.

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Section 10.2.    Interest Coverage Ratio    .  The Company will not permit the ratio of Consolidated EBITDA to Consolidated Interest Charges for each period of four consecutive fiscal quarters (calculated as at the end of each fiscal quarter for the four consecutive fiscal quarters then ended) to be less than 3.00 to 1.00.
Section 10.3.    Limitation on Liens.     The Company will not, and will not permit any of its Subsidiaries to, directly or indirectly create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any property or asset (including, without limitation, any document or instrument in respect of goods or accounts receivable) of the Company or any such Subsidiary, whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive income or profits (unless it makes, or causes to be made, effective provision whereby the Notes will be equally and ratably secured with any and all other obligations thereby secured, such security to be pursuant to an agreement reasonably satisfactory to the Required Holders and, in any such case, the Notes shall have the benefit, to the fullest extent that, and with such priority as, the holders of the Notes may be entitled under applicable law, of an equitable Lien on such property), except:
(a)    (i) Liens for taxes, assessments or other governmental charges that are not yet due and payable or the payment of which is not at the time required by Section 9.4 and (ii) any Lien effected or arising in the ordinary course of business, the principal effect of which is to allow the setting off or netting of obligations under any non‐speculative hedging arrangements or interest rate swap arrangements or which otherwise arise from time to time in connection with the relevant party’s participation in any clearing system and/or the netting of debit and credit balances in the ordinary course of banking arrangements;
(b)    any attachment or judgment Lien, unless the judgment it secures shall not, within 60 days after the entry thereof, have been discharged or execution thereof stayed pending appeal, or shall not have been discharged within 60 days after the expiration of any such stay;
(c)    Liens incidental to the conduct of business or the ownership of properties and assets (including landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s and other similar Liens for sums not yet due and payable) and Liens to secure the performance of bids, tenders, leases, or trade contracts, or to secure statutory obligations (including obligations under workers compensation, unemployment insurance and other social security legislation), surety or appeal bonds or other Liens incurred in the ordinary course of business and not in connection with the borrowing of money;

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(d)    leases or subleases granted to others, easements, rights-of-way, restrictions and other similar charges or encumbrances, in each case incidental to the ownership of property or assets or the ordinary conduct of the business of the Company or any of its Subsidiaries, or Liens incidental to minor survey exceptions and the like, provided that such Liens do not, in the aggregate, materially detract from the value of such property;
(e)    Liens securing Debt of a Subsidiary to the Company or to a Wholly Owned Subsidiary;
(f)    Liens existing as of the date of the Closing and reflected in Schedule 10.3;
(g)    Liens incurred after the date of the Closing given to secure the payment of the purchase price incurred in connection with the acquisition, construction or improvement of property (other than accounts receivable or inventory) useful and intended to be used in carrying on the business of the Company or a Subsidiary, including Liens existing on such property at the time of acquisition or construction thereof or Liens incurred within 365 days of such acquisition or completion of such construction or improvement, provided that (i) the Lien shall attach solely to the property acquired, purchased, constructed or improved; (ii) at the time of acquisition, construction or improvement of such property (or, in the case of any Lien incurred within 365 days of such acquisition or completion of such construction or improvement, at the time of the incurrence of the Debt secured by such Lien), the aggregate amount remaining unpaid on all Debt secured by Liens on such property, whether or not assumed by the Company or a Subsidiary, shall not exceed the lesser of (y) the cost of such acquisition, construction or improvement or (z) the Fair Market Value of such property (as determined in good faith by one or more officers of the Company to whom authority to enter into the transaction has been delegated by the board of directors of the Company); and (iii) at the time of such incurrence and after giving effect thereto, no Default or Event of Default would exist;
(h)    any Lien existing on property of a Person immediately prior to its being consolidated with or merged into the Company or a Subsidiary or its becoming a Subsidiary, or any Lien existing on any property acquired by the Company or any Subsidiary at the time such property is so acquired (whether or not the Debt secured thereby shall have been assumed), provided that (i) no such Lien shall have been created or assumed in contemplation of such consolidation or merger or such Person’s becoming a Subsidiary or such acquisition of property, (ii) each such Lien shall extend solely to the item or items of property so acquired and, if required by the terms of the instrument originally creating such Lien, other property which is an improvement to or is acquired for specific use in connection with such acquired 

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property, and (iii) at the time of such incurrence and after giving effect thereto, no Default or Event of Default would exist; 
(i)    any extensions, renewals or replacements of any Lien permitted by the preceding subparagraphs (f), (g) and (h) of this Section 10.3, provided that (i) no additional property shall be encumbered by such Liens, (ii) the unpaid principal amount of the Debt or other obligations secured thereby shall not be increased on or after the date of any extension, renewal or replacement, and (iii) at such time and immediately after giving effect thereto, no Default or Event of Default shall have occurred and be continuing; and
(j)    Liens securing Debt of the Company or any Subsidiary, excluding Debt otherwise described in clauses (a) - (i) of this Section 10.3, not to exceed the greater of $50,000,000 or 10% of Consolidated Net Worth, determined as of the end of the then most recently ended fiscal quarter of the Company, provided that no Lien pursuant to this Section 10.3(j) shall secure the Bank Credit Agreement or related Guaranties unless the Notes are also secured equally and ratably pursuant to an agreement reasonably satisfactory to the Required Holders.
Section 10.4.    Sales of Assets. The Company will not, and will not permit any Subsidiary to, sell, lease or otherwise dispose of any substantial part (as defined below) of the assets of the Company and its Subsidiaries; provided, however, that the Company or any Subsidiary may sell, lease or otherwise dispose of assets constituting a substantial part of the assets of the Company and its Subsidiaries if such assets are sold in an arms length transaction and, at such time and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing and an amount equal to the net proceeds received from such sale, lease or other disposition (but only with respect to that portion of such assets that exceeds the definition of “substantial part” set forth below) shall be used within 365 days of such sale, lease or disposition, in any combination:
(1)    to acquire productive assets used or useful in carrying on the business of the Company and its Subsidiaries and having a value at least equal to the value of such assets sold, leased or otherwise disposed of; and/or
(2)    to prepay or retire Senior Debt of the Company and/or its Subsidiaries, provided that, to the extent any such proceeds are used to prepay the outstanding principal amount of the Notes, such prepayment shall be made in accordance with the terms of Section 8.2;  
provided further, that neither clause (1) nor clause (2) of this Section 10.4 shall be used to permit the transfer of assets from the Company to any Subsidiary.

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As used in this Section 10.4, a sale, lease or other disposition of assets shall be deemed to be a “substantial part” of the assets of the Company and its Subsidiaries if the book value of such assets, when added to the book value of all other assets sold, leased or otherwise disposed of by the Company and its Subsidiaries during the period of 12 consecutive months ending on the date of such sale, lease or other disposition, exceeds 10% of the book value of Consolidated Total Assets, determined as of the end of the fiscal quarter immediately preceding such sale, lease or other disposition; provided that there shall be excluded from any determination of a “substantial part” any (i) sale or disposition of assets in the ordinary course of business of the Company and its Subsidiaries, (ii) any transfer of assets from (x) the Company to any Subsidiary Guarantor or (y) any Subsidiary to the Company or a Wholly Owned Subsidiary of the Company; provided that any transfer of assets from any Subsidiary Guarantor must be to the Company or another Subsidiary Guarantor and (iii) any sale or transfer of property acquired by the Company or any Subsidiary after the date of this Agreement to any Person within 365 days following the acquisition or construction of such property by the Company or any Subsidiary if the Company or a Subsidiary shall concurrently with such sale or transfer, lease such property, as lessee.
Section 10.5.    Merger and Consolidation.  The Company will not, and will not permit any of its Subsidiaries to, consolidate with or merge with any other Person or convey, transfer or lease substantially all of its assets in a single transaction or series of transactions to any Person; provided that: 
(1)    any Subsidiary of the Company may (x) consolidate with or merge with, or convey, transfer or lease substantially all of its assets in a single transaction or series of transactions to, (i) the Company or a Subsidiary so long as in any merger or consolidation involving the Company, the Company shall be the surviving or continuing corporation or (ii) any other Person so long as the survivor is the Subsidiary, or (y) convey, transfer or lease all of its assets in compliance with the provisions of Section 10.4; and 
(2)    the foregoing restriction does not apply to the consolidation or merger of the Company with, or the conveyance, transfer or lease of substantially all of the assets of the Company in a single transaction or series of transactions to, any Person so long as:
(a)    the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease substantially all of the assets of the Company as an entirety, as the case may be (the “Successor Corporation”), shall be a solvent entity organized and existing under the laws of the United States of America, any State thereof or the District of Columbia;

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(b)    if the Company is not the Successor Corporation, such Successor Corporation shall have executed and delivered to each holder of Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes (pursuant to such agreements and instruments as shall be reasonably satisfactory to the Required Holders), and the Successor Corporation shall have caused to be delivered to each holder of Notes (A) an opinion of nationally recognized independent counsel, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and (B) an acknowledgment from each Subsidiary Guarantor that the Subsidiary Guaranty continues in full force and effect; and
(c)    immediately after giving effect to such transaction no Default or Event of Default would exist (or would have existed on the last day of the fiscal quarter immediately preceding such consolidation or merger and after giving effect thereto). 
Section 10.6.    Line of Business    .  The Company will not and will not permit any Subsidiary to engage in any business if, as a result, the general nature of the business in which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its Subsidiaries, taken as a whole, are engaged on the date of this Agreement as described in the Memorandum.
Section 10.7.    Transactions with Affiliates.  The Company will not and will not permit any Subsidiary to enter into directly or indirectly any Material transaction or Material group of related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except in the ordinary course and upon fair and reasonable terms that are not materially less favorable to the Company or such Subsidiary, taken as a whole, than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate.
Section 10.8.    Terrorism Sanctions Regulations.  The Company will not and will not permit any Controlled Entity (a) to become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or any Person that is the target  of sanctions imposed by the United Nations or by the European Union, or (b) directly or indirectly to have any investment in or engage in any dealing or transaction (including, without limitation, any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder to be in violation of any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions, or (c)  to engage, nor shall any Affiliate of either engage, in any activity that could subject such Person or 

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any holder to sanctions under CISADA or any similar law or regulation with respect to Iran or any other country that is subject to U.S. Economic Sanctions.
		
	SECTION 11.
	EVENTS OF DEFAULT.

An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing:
(a)    the Company defaults in the payment of any principal or Make-Whole Amount, if any, on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or
(b)    the Company defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and payable; or
(c)    the Company defaults in the performance of or compliance with any term contained in Section 10 or any Subsidiary Guarantor defaults in the performance of or compliance with any term of the Subsidiary Guaranty beyond any period of grace or cure period provided with respect thereto; or 
(d)    the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in paragraphs (a), (b) and (c) of this Section 11) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default or (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this paragraph (d) of Section 11); or
(e)    the Subsidiary Guaranty ceases to be a legally valid, binding and enforceable obligation or contract of the Subsidiary Guarantors (other than upon a release of any Subsidiary Guarantor from the Subsidiary Guaranty in accordance with the terms of Section 2.2(b) hereof), or any Subsidiary Guarantor or any party by, through or on account of any such Person, challenges the validity, binding nature or enforceability of the Subsidiary Guaranty; or
(f)    any representation or warranty made in writing by or on behalf of the Company or the Subsidiary Guarantors in this Agreement or the Subsidiary Guaranty or by any officer of the Company or any Subsidiary Guarantor in any writing furnished in connection with the transactions contemplated hereby or by the Subsidiary Guaranty proves to have been false or incorrect in any material respect on the date as of which made; or

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(g)    (i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest (in the payment amount of at least $100,000) on any Debt other than the Notes that is outstanding in an aggregate principal amount of at least $75,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance with any term of any instrument, mortgage, indenture or other agreement relating to any Debt other than the Notes in an aggregate principal amount of at least $75,000,000 or any other condition exists, and as a consequence of such default or condition such Debt has become, or has been declared, due and payable or one or more Persons has the right to declare such Debt to be due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Debt to convert such Debt into equity interests), (x) the Company or any Subsidiary has become obligated to purchase or repay Debt other than the Notes before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $75,000,000 or (y) one or more Persons have the right to require the Company or any Subsidiary to purchase or repay such Debt; or 
(h)    the Company, any Material Subsidiary or any Subsidiary Guarantor (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or 
(i)    a court or governmental authority of competent jurisdiction enters an order appointing, without consent by the Company, any of its Material Subsidiaries or any Subsidiary Guarantor, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company, any of its Material Subsidiaries or any Subsidiary Guarantor, or any such petition shall be filed against the Company, any of its Material Subsidiaries or any Subsidiary Guarantor and such petition shall not be dismissed within 60 days; or

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(j)    a final judgment or judgments at any one time outstanding for the payment of money aggregating in excess of $75,000,000 are rendered against one or more of the Company, its Subsidiaries or any Subsidiary Guarantor and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; or
(k)    if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under Section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under Section 4042 of ERISA to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the aggregate “amount of unfunded benefit liabilities” (within the meaning of Section 4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA, shall exceed $25,000,000, (iv) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any Subsidiary establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that could increase the liability of the Company or any Subsidiary thereunder; and any such event or events described in clauses (i) through (vi) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse Effect.
As used in Section 11(k), the terms “employee benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such terms in Section 3 of ERISA.
		
	SECTION 12.
	REMEDIES ON DEFAULT, ETC    .

Section 12.1.    Acceleration.  (a) If an Event of Default with respect to the Company described in paragraph (h) or (i) of Section 11 (other than an Event of Default described in clause (i) of paragraph (h) or described in clause (vi) of paragraph (h) by virtue of the fact that such clause encompasses clause (i) of paragraph (h)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable.
(b)    If any other Event of Default has occurred and is continuing, any holder or holders of more than 50% in aggregate principal amount of the Notes at the time outstanding may at any time 

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at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable.
(c)    If any Event of Default described in paragraph (a) or (b) of Section 11 has occurred and is continuing with respect to any Notes, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by such holder or holders to be immediately due and payable.
Upon any Note’s becoming due and payable under this Section 12.1 or whether automatically or by declaration, such Note will forthwith mature and the entire unpaid principal amount of such Note, plus (i) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (ii) the Make-Whole Amount, if any, determined in respect of such principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.  The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount, if any, by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances.
Section 12.2.    Other Remedies.  If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.
Section 12.3.    Rescission.  At any time after the Notes have been declared due and payable pursuant to clause (b) or (c) of Section 12.1, the holders of not less than 51% in aggregate principal amount of the Notes then outstanding, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of and Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason 

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of such declaration, have been cured or have been waived pursuant to Section 17, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to any Notes.  No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon.
Section 12.4.    No Waivers or Election of Remedies, Expenses, Etc.  No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies.  No right, power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise.  Without limiting the obligations of the Company under Section 15, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 12, including, without limitation, reasonable attorneys’ fees, expenses and disbursements.
		
	SECTION 13.
	REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES    .

Section 13.1.    Registration of Notes.  The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes.  The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register.  If any holder of one or more Notes is a nominee, then (a) the name and address of the beneficial owner of such Note or Notes shall also be registered in such register as an owner and holder thereof and (b) at any such beneficial owner’s option, either such beneficial owner or its nominee may execute any amendment, waiver or consent pursuant to this Agreement.  Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary.  The Company shall give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.
Section 13.2.    Transfer and Exchange of Notes.  Upon surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)), for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of each transferee of such Note or part thereof), within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as 

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provided below), one or more new Notes (as requested by the holder thereof) of the same Series in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note.  Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of the Note of such Series originally issued hereunder.  Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon.  The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes.  Notes shall not be transferred in denominations of less than $100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes of a Series, one Note of such Series may be in a denomination of less than $100,000.  Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representation set forth in Section 6.3, provided, that in lieu thereof such holder may (in reliance upon information provided by the Company, which shall not be unreasonably withheld) make a representation to the effect that the purchase by any holder of any Note will not constitute a non-exempt prohibited transaction under section 406(a) of ERISA.
The Notes have not been registered under the Securities Act or under the securities laws of any state and may not be transferred or resold unless registered under the Securities Act and all applicable state securities laws or unless an exemption from the requirement for such registration is available.  
Section 13.3.    Replacement of Notes.  Upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and
(a)    in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $50,000,000 or a Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or
(b)    in the case of mutilation, upon surrender and cancellation thereof,
the Company at its own expense shall execute and deliver not more than five Business Days following satisfaction of such conditions, in lieu thereof, a new Note of the same Series, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or 

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mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.
		
	SECTION 14.
	PAYMENTS ON NOTES.

Section 14.1.    Place of Payment.  Subject to Section 14.2, payments of principal, Make‐Whole Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, New York at the principal office of Banc of America, N.A. in such jurisdiction.  The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction.
Section 14.2.    Home Office Payment.  So long as any Purchaser or such Purchaser’s nominee shall be the holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount, if any, and interest by the method and at the address specified for such purpose for such Purchaser on Schedule A hereto or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1.  Prior to any sale or other disposition of any Note held by any Purchaser or such Person’s nominee, such Person will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes of the same Series pursuant to Section 13.2.  The Company will afford the benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any Note.
		
	SECTION 15.
	EXPENSES, ETC.

Section 15.1.    Transaction Expenses.  Whether or not the transactions contemplated hereby are consummated, the Company will pay all costs and expenses (including reasonable attorneys’ fees of a special counsel for the Purchasers and, if reasonably required by the Required Holders, local or other counsel) incurred by each Purchaser and each other holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not such amendment, waiver or consent becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement 

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or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or the Notes, or by reason of being a holder of any Note; and (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes.  The Company will pay, and will save each Purchaser and each other holder of a Note harmless from, all claims in respect of any fees, costs or expenses if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes).
Section 15.2.    Survival.  The obligations of the Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement.
		
	SECTION 16.
	SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.  

All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or transfer by any Purchaser of any such Note or portion thereof or interest therein and the payment of any Note may be relied upon by any subsequent holder of any such Note, regardless of any investigation made at any time by or on behalf of any Purchaser or any other holder of any such Note.  All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement.  Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between the Purchasers and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.
		
	SECTION 17.
	AMENDMENT AND WAIVER.

Section 17.1.    Requirements.  (a) This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (i) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used in any such Section), will be effective as to any holder of Notes unless consented to by such holder of Notes in writing, and (ii) no such amendment or waiver may, without the written consent of all of the holders of Notes at the time outstanding affected thereby, (A) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest (if such change results in a decrease in the interest rate) or of the 

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Make-Whole Amount on, the Notes, (B) change the percentage of the principal amount of the Notes the holders of which are required to consent to any such amendment or waiver, or (C) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20.  
Section 17.2.    Solicitation of Holders of Notes    .
(a)    Solicitation.  The Company will provide each holder of the Notes (irrespective of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes.  The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 17 to each holder of outstanding Notes promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.
(b)    Payment.  The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of Notes as consideration for or as an inducement to the entering into by any holder of Notes of any waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted or other credit support is concurrently provided, on the same terms, ratably to each holder of Notes then outstanding even if such holder did not consent to such waiver or amendment.
(c)    Consent in Contemplation of Transfer.  Any consent made pursuant to this Section 17 by a holder of Notes that has transferred or has agreed to transfer its Notes to the Company, any Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder.
Section 17.3.    Binding Effect, Etc.  Any amendment or waiver consented to as provided in this Section 17 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver.  No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.  No course of dealing between the Company and 

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the holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note.  As used herein, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented.
Section 17.4.    Notes Held by Company, Etc.  Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.
		
	SECTION 18.
	NOTICES.

All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), (b) by a recognized overnight delivery service (charges prepaid) or (c) by posting to IntraLinks®, or a similar service reasonably acceptable to the Required Holders, if the sender on the same day sends or causes to be sent notice of such posting by electronic mail.  Any such notice must be sent:
(i)    if to any Purchaser or its nominee, to such Purchaser or its nominee at the address or, in the case of clause (c) above, the e‐mail address specified for such communications in Schedule A to this Agreement, or at such other address or e‐mail address as such Purchaser or nominee shall have specified to the Company in writing pursuant to this Section 18;
(ii)    if to any other holder of any Note, to such holder at such address or, in the case of clause (c) above, such e‐mail address as such other holder shall have specified to the Company in writing pursuant to this Section 18; or
(iii)    if to the Company, to the Company at its address set forth at the beginning hereof to the attention of Chief Financial Officer, with a copy to the General Counsel, or at such other address as the Company shall have specified to the holder of each Note in writing.
Notices under this Section 18 will be deemed given only when actually received.
		
	SECTION 19.
	REPRODUCTION OF DOCUMENTS.

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This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced.  The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.  This Section 19 shall not prohibit the Company or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.
		
	SECTION 20.
	CONFIDENTIAL INFORMATION.

For the purposes of this Section 20, “Confidential Information” means information delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being either confidential information or material non-public information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available.  Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) such Purchaser’s directors, trustees, officers, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by such Purchaser’s Notes), (ii) such Purchaser’s financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor to which such Purchaser sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (v) any Person from which such Purchaser offers to purchase 

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any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes, the Subsidiary Guaranty and this Agreement.  Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 20 as though it were a party to this Agreement.  On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying the provisions of this Section 20.
In the event that as a condition to receiving access to information relating to the Company or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through IntraLinks, another secure website, a secure virtual workspace or otherwise) which is different from this Section 20, this Section 20 shall not be amended thereby and, as between such Purchaser or such holder and the Company, this Section 20 shall supersede any such other confidentiality undertaking.
		
	SECTION 21.
	SUBSTITUTION OF PURCHASER.

Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 6.  Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall be deemed to refer to such Affiliate in lieu of such original Purchaser.  In the event that such Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to such original Purchaser all of the Notes then held by such Affiliate, upon receipt by the Company of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this Agreement (other than in this Section 21), shall no longer be deemed to refer to such Affiliate, but shall refer to such original Purchaser, and 

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such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.
		
	SECTION 22.
	MISCELLANEOUS.

Section 22.1.    Successors and Assigns.  All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or not.
Section 22.2.    Payments Due on Non-Business Days.  Anything in this Agreement or the Notes to the contrary notwithstanding (but without limiting the requirement in Section 8.4 that the notice of any optional prepayment specify a Business Day as the date fixed for such prepayment), any payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of any Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.
Section 22.3.    Accounting Terms.  All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP.  Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP.  For purposes of determining compliance with this Agreement (including, without limitation, Section 9, Section 10 and the definition of “Indebtedness”), any election by the Company to measure any financial liability using fair value (as permitted by Financial Accounting Standards Board Accounting Standards Codification Topic No. 825‐10‐25 – Fair Value Option, International Accounting Standard 39 – Financial Instruments: Recognition and Measurement or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made.
Section 22.4.    Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

-47- 

Stericycle, Inc.        Note Purchase Agreement

Section 22.5.    Construction.  Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.  Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.
For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be deemed to be a part hereof.
Section 22.6.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument.  Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.
Section 22.7.    Governing Law.  This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.
Section 22.8.    Jurisdiction and Process; Waiver of Jury Trial    .  (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes.  To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.
(b)    The Company consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address specified in Section 18 or at such other address of which such holder shall then have been notified pursuant to said Section.  The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it.  Notices hereunder 

-48- 

Stericycle, Inc.        Note Purchase Agreement

shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.
(c)    Nothing in this Section 22.8 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.
(d)    THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.
*   *   *   *   *

-49- 

Stericycle, Inc.        Note Purchase Agreement

The execution hereof by the Purchasers shall constitute a contract among the Company and the Purchasers for the uses and purposes hereinabove set forth.  This Agreement may be executed in any number of counterparts, each executed counterpart constituting an original but all together only one agreement.

Very truly yours,

STERICYCLE, INC.

By /s/ Daniel V. Ginnetti                
Name:     Daniel V. Ginnetti
Title:     Executive Vice President and Chief 
Financial Officer

-50- 

Stericycle, Inc.        Note Purchase Agreement

Accepted as of the date first written above.  

METROPOLITAN LIFE INSURANCE COMPANY

GENERAL AMERICAN LIFE INSURANCE COMPANY
		
	by
	Metropolitan Life Insurance Company, its Investment Manager

METLIFE INSURANCE COMPANY USA
		
	by
	Metropolitan Life Insurance Company, its Investment Manager

By /s/ John Wills    
Name: John Wills
Title:   Managing Director

ERIE FAMILY LIFE INSURANCE COMPANY
		
	by 
	MetLife Investment Advisors, LLC, Its Investment Manager

By /s/ John Wills    
Name: John Wills
Title:   Managing Director

Stericycle, Inc.        Note Purchase Agreement

THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

By Northwestern Mutual Investment Management Company, LLC, its investment adviser

By /s/ Howard Stern    
Name: Howard Stern
Title:   Managing Director

THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY FOR ITS GROUP ANNUITY SEPARATE ACCOUNT

By /s/ Howard Stern    
Name: Howard Stern
Title:   Its Authorized Representative

NEW YORK LIFE INSURANCE COMPANY

By /s/ A. Post Howland    
Name: A. Post Howland
Title:   Vice President

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

		
	By:
	NYL Investors LLC, its Investment Manager 

By /s/ A. Post Howland    
Name:  A. Post Howland
Title:    Vice President

Stericycle, Inc.        Note Purchase Agreement

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 3)

		
	By:
	NYL Investors LLC, its Investment Manager 

By /s/ A. Post Howland    
Name:  A. Post Howland
Title:    Manging Director

Stericycle, Inc.        Note Purchase Agreement

THE BANK OF NEW YORK MELLON, A BANKING CORPORATION ORGANIZED UNDER THE LAWS OF NEW YORK, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS TRUSTEE UNDER THAT CERTAIN TRUST AGREEMENT DATED AS OF JULY 1ST, 2015 BETWEEN NEW YORK LIFE INSURANCE COMPANY, AS GRANTOR, JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.), AS BENEFICIARY, JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK, AS BENEFICIARY, AND THE BANK OF NEW YORK MELLON, AS TRUSTEE

		
	By:
	New York Life Insurance Company, its attorney-in-fact

By /s/ A. Post Howland    
Name: A. Post Howland
Title:   Managing Director

STATE FARM LIFE INSURANCE COMPANY

By /s/ Julie Hoyer    
Name: Julie Hoyer
Title:   Senior Investment Officer 
– Fixed Income

By /s/ Jeffrey Attwood    
       Name: Jeffrey Attwood
       Title:   Investment Officer

Stericycle, Inc.        Note Purchase Agreement

Stericycle, Inc.        Note Purchase Agreement

STATE FARM LIFE AND ACCIDENT ASSURANCE COMPANY

By /s/ Julie Hoyer    
Name: Julie Hoyer
Title:   Senior Investment Officer
– Fixed Income

By /s/ Jeffrey Attwood    
Name:  Jeffrey Attwood
Title:    Investment Officer

NATIONWIDE LIFE INSURANCE COMPANY

By /s/ Thomas A. Gleason    
Name:  Thomas A. Gleason
Title:    Authorized Signatory

THRIVENT FINANCIAL FOR LUTHERANS

By /s/ Martin Rosacker    
Name:  Martin Rosacker
Title:    Managing Director

PRINCIPAL LIFE INSURANCE COMPANY

		
	By:
	Principal Global Investors, LLC

a Delaware limited liability company,
its authorized signatory

Stericycle, Inc.        Note Purchase Agreement

By /s/ James C. Fifield    
Name:  James C. Fifield
Title:    Assistant General Counsel

By /s/ Karen A. Pearston    
Name:  Karen A. Pearston
Title:    Vice President & 
                Associate General Counsel

STATE OF WISCONSIN INVESTMENT BOARD

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

AUTO-OWNERS INSURANCE COMPANY 

By /s/ Gregg Williams    
Name:  Gregg Williams
Title:    Vice President

By /s/ Brendan White    
Name:  Brendan White
Title:    Managing Director

AUTO-OWNERS LIFE INSURANCE COMPANY 

By /s/ Gregg Williams    
Name:  Gregg Williams
Title:    Vice President 

Stericycle, Inc.        Note Purchase Agreement

By /s/ Brendan White    
Name:  Brendan White
Title:    Managing Director

AMERICAN UNITED LIFE INSURANCE COMPANY

By /s/ David M. Weisenburger    
Name:  David M. Weisenburger
Title:    VP, Fixed Income Securities

THE STATE LIFE INSURANCE COMPANY
By: American United Life Insurance Company
Its:  Agent

		
	By
	 /s/ David M. Weisenburger    

Name:  David M. Weisenburger
Title:    VP, Fixed Income Securities

AMERITAS LIFE INSURANCE CORP.
AMERITAS LIFE INSURANCE CORP. OF NEW YORK
By: Ameritas Investment Partners Inc., as Agent

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

Stericycle, Inc.        Note Purchase Agreement

 

PHL VARIABLE INSURANCE COMPANY

By /s/ Nelson Correa    
  Name:  Nelson Correa
  Title:    Its Duly Authorized Officer

WOODMEN OF THE WORLD LIFE INSURANCE SOCIETY

By /s/ Shawn Bengston    
Name:  Shawn Bengston
Title:    Vice President Investment

By /s/ Dean Holdsworth    
Name:  Dean Holdsworth
Title:    Director Mortgage Loan/RE

HORIZON BLUE CROSS BLUE SHIELD OF NEW JERSEY

		
	By:
	Alliance Capital Management, its Investment Advisor

By /s/ Amy Judd                    
Name:  Amy Judd
Title:    Senior Vice President

Stericycle, Inc.        Note Purchase Agreement

SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

By /s/ David Divine    
Name:  David Divine
Title:    Senior Portfolio Manager

STERICYCLE, INC.
28161 NORTH KEITH DRIVE
LAKE FOREST, ILLINOIS  60045

INFORMATION RELATING TO PURCHASERS

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

	 
	Series A
	Series B

	METROPOLITAN LIFE INSURANCE COMPANY
1095 Avenue of the Americas
New York, New York  10036
	$6,100,000
	$1,900,000

[balance omitted]

SCHEDULE A 
(to Note Purchase Agreement)

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

	 
	Series A
	Series B

	METROPOLITAN LIFE INSURANCE COMPANY
1095 Avenue of the Americas
New York, New York  10036
	$0
	$3,400,000

[balance omitted]

A-2

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

	 
	Series A
	Series B

	METROPOLITAN LIFE INSURANCE COMPANY1095 Avenue of the Americas
New York, New York  10036
	$0
	$700,000

[balance omitted]

A-3

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

	 
	Series A
	Series B

	GENERAL AMERICAN LIFE INSURANCE COMPANY
c/o Metropolitan Life Insurance Company
1095 Avenue of the Americas
New York, New York  10036
	$0
	$3,600,000

[balance omitted]

A-4

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

	 
	Series A
	Series B

	METLIFE INSURANCE COMPANY USA
c/o Metropolitan Life Insurance Company
1095 Avenue of the Americas
New York, New York  10036
	$30,400,000
	$5,400,000

[balance omitted]

A-5

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

	 
	Series A
	Series B

	ERIE FAMILY LIFE INSURANCE COMPANY
100 Erie Insurance Place
Erie, PA  165330
	$3,500,000
	$0

[balance omitted]

A-6

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

	 
	Series A
	Series B

	THE NORTHWESTERN MUTUAL LIFE INSURANCE 
 COMPANY
720 East Wisconsin Avenue
Milwaukee, Wisconsin  53202
Attention:  Securities Department
Email:  privateinvest@northwesternmutual.com
	$15,000,000
	$38,900,000

[balance omitted]

A-7

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

	 
	Series A
	Series B

	THE NORTHWESTERN MUTUAL LIFE INSURANCE 
 COMPANY FOR ITS GROUP ANNUITY SEPARATE 
 ACCOUNT
720 East Wisconsin Avenue
Milwaukee, Wisconsin  53202
Attention:  Securities Department
Email:  privateinvest@northwesternmutual.com
	$0
	$1,100,000

[balance omitted]

A-8

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

	 
	Series A
	Series B

	NEW YORK LIFE INSURANCE COMPANY
c/o NYL Investors LLC
51 Madison Avenue
2nd Floor, Room 208
New York, New York  10010-1603
Attention:   Private Capital Investors, 2nd Floor
Fax Number:  (908) 840-3385
	$6,800,000
	$4,100,000

[balance omitted]

A-9

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

	 
	Series A
	Series B

	NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION
c/o NYL Investors LLC
51 Madison Avenue
2nd Floor, Room 208
New York, New York  10010-1603
Attention:   Private Capital Investors, 2nd Floor
Fax Number:  (908) 840-3385
	$27,400,000
	$9,400,000

[balance omitted]

A-10

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

	 
	Series A
	Series B

	NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 3)
c/o NYL Investors LLC
51 Madison Avenue
2nd Floor, Room 208
New York, New York  10010-1603
Attention:   Private Capital Investors, 2nd Floor
Fax Number:  (908) 840-3385
	$800,000
	$0

[balance omitted]

A-11

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

	 
	Series A
	Series B

	THE BANK OF NEW YORK MELLON, A BANKING CORPORATION ORGANIZED UNDER THE LAWS OF NEW YORK, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS TRUSTEE UNDER THAT CERTAIN TRUST AGREEMENT DATED AS OF JULY 1ST, 2015 BETWEEN NEW YORK LIFE INSURANCE COMPANY, AS GRANTOR, JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.), AS BENEFICIARY, JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK, AS BENEFICIARY, AND THE BANK OF NEW YORK MELLON, AS TRUSTEE
c/o NYL Investors LLC
51 Madison Avenue
2nd Floor, Room 208
New York, New York  10010-1603
Attention:   Private Capital Investors, 2nd Floor
Fax Number:  (908) 840-3385
	$5,000,000
	$1,500,000

[balance omitted]

A-12

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

	 
	Series A
	Series B

	STATE FARM LIFE INSURANCE COMPANY
One State Farm Plaza
Bloomington, Illinois  61710
Attention:  Investment Department E-8
E-Mail:  privateplacements@statefarm.com
	$0
	$28,000,000

[balance omitted]

A-13

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

	 
	Series A
	Series B

	STATE FARM LIFE AND ACCIDENT ASSURANCE COMPANY
One State Farm Plaza
Bloomington, Illinois  61710
Attention:  Investment Department E-8
E-Mail:  privateplacements@statefarm.com
	$0
	$2,000,000

[balance omitted]

A-14

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

	 
	Series A
	Series B

	NATIONWIDE LIFE INSURANCE COMPANY
Nationwide Investments – Private Placements
One Nationwide Plaza (1-05-801)
Columbus, OH 43215-2220
E-mail: ooinwpp@nationwide.com
	$25,000,000
	$0

[balance omitted]

A-15

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

	 
	Series A
	Series B

	THRIVENT FINANCIAL FOR LUTHERANS
625 Fourth Avenue South
Minneapolis, Minnesota  55415
Attn:  Investment Division-Private Placements
Fax Number:  (612) 844-4027
Email:  privateinvestments@thrivent.com
	$0
	$5,000,000 
$5,000,000 
$5,000,000 
$5,000,000 
$5,000,000

[balance omitted]

A-16

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

	 
	Series A
	Series B

	PRINCIPAL LIFE INSURANCE COMPANY
c/o Principal Global Investors, LLC 
ATTN:  Fixed Income Private Placements 
711 High Street, G-26
Des Moines, IA 50392-0800
Email: privateplacements2@exchange.principal.com
	$10,000,000
	$0

[balance omitted]

A-17

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

	 
	Series A
	Series B

	STATE OF WISCONSIN INVESTMENT BOARD
121 East Wilson Street
Madison, Wisconsin 53703
Attention:  Portfolio Manager, Private Markets Group – Wisconsin Private Debt Portfolio
	$7,000,000
	$3,000,000

[balance omitted]

A-18

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

	 
	Series A
	Series B

	AUTO‐OWNERS INSURANCE COMPANY
c/o Fort Washington Investment Advisors
Suite 1200-Private Placements
303 Broadway
Cincinnati, OH  45202
privateplacements@fortwashington.com
	$7,000,000
	$0

[balance omitted]

A-19

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

	 
	Series A
	Series B

	AUTO‐OWNERS LIFE INSURANCE COMPANY
c/o Fort Washington Investment Advisors
Suite 1200-Private Placements
303 Broadway
Cincinnati, OH  45202
privateplacements@fortwashington.com
	$0
	$2,000,000

[balance omitted]

A-20

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

	 
	Series A
	Series B

	AMERICAN UNITED LIFE INSURANCE COMPANY
Attn:  Mike Bullock, Securities Department
One American Square, Suite 305W
Post Office Box 368
Indianapolis, IN 46206
	$5,000,000
	$0

[balance omitted]

A-21

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

	 
	Series A
	Series B

	THE STATE LIFE INSURANCE COMPANY
c/o American United Life Insurance Company
Attn:  Mike Bullock, Securities Department
One American Square, Suite 305W
Post Office Box 368
Indianapolis, IN 46206
	$0
	$3,000,000

[balance omitted]

A-22

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

	 
	Series A
	Series B

	AMERITAS LIFE INSURANCE CORP.
390 North Cotner Blvd.
Lincoln, NE 68505
	$0
	$3,000,000

[balance omitted]

A-23

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

	 
	Series A
	Series B

	AMERITAS LIFE INSURANCE CORP. OF NEW YORK
Ameritas Investment Partners, Inc.
390 North Cotner Blvd.
Lincoln, NE 68505
	$0
	$2,000,000

[balance omitted]

A-24

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

	 
	Series A
	Series B

	PHL VARIABLE INSURANCE COMPANY
c/o Phoenix Life Insurance Company
Private Placement Department, H-2W
One American Row
Hartford, CT  06102
	$0
	$5,000,000

[balance omitted]

A-25

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

	 
	Series A
	Series B

	WOODMEN OF THE WORLD LIFE INSURANCE SOCIETY
Attn:  Kim Parrott
1700 Farnam Street
Omaha, Nebraska  68102
kparrott@woodmen.org
	$1,000,000
	$2,000,000

[balance omitted]

A-26

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

	 
	Series A
	Series B

	HORIZON BLUE CROSS BLUE SHIELD OF NEW JERSEY
c/o Alliance Capital Management
1345 Avenue of the Americas
New York, NY 10105
Attention:   Angel Salazar/Cosmo Valente 
   Insurance Operations
Telephone Numbers:
212-969-2491 or 212-969-6384
	$0
	$3,000,000

[balance omitted]

A-27

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

	 
	Series A
	Series B

	SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY
1401 Livingston Lane
Jackson, Mississippi  39213
Attention:  Investment Department
	$0
	$2,000,000

[balance omitted]

A-28

DEFINED TERMS
As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:
“Acquisition” means the acquisition, by purchase or otherwise, of all or substantially all of the assets (or any part of the assets constituting all or substantially all of a business or line of business) of any Person, whether such acquisition is direct or indirect, including through the acquisition of the business of, or more than 50% of the outstanding voting stock of, such Person, and whether such acquisition is effected in a single transaction or in a series of related transactions, and the acquisition, by purchase or otherwise, of additional shares of the outstanding voting stock of any Subsidiary of the Company which is not then a Wholly Owned Subsidiary of the Company.
“Affiliate” means, at any time, and with respect to any Person, (a) any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and (b) any Person beneficially owning or holding, directly or indirectly, 10% or more of any class of voting or equity interests of the Company or any Subsidiary or any Person of which the Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of any class of voting or equity interests.  As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.  Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company.
“Anti‐Corruption Laws” is defined in Section 5.16(d)(1).
“Anti‐Money Laundering Laws” is defined in Section 5.16(c).
“Bank Credit Agreement” means the Second Amended and Restated Credit Agreement dated as of June 3, 2014 by and among the Company, certain Subsidiaries of the Company named therein, Bank of America, N.A., as administrative agent, and the other financial institutions party thereto, as amended, restated, joined, supplemented or otherwise modified from time to time, and any renewals, extensions or replacements thereof, which constitute the primary bank credit facility of the Company and its Subsidiaries.
“Bank Lenders” means the banks and financial institutions party to the Bank Credit Agreement.
“Blocked Person” is defined in Section 5.16(a).

SCHEDULE B 
(to Note Purchase Agreement)

“Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed.
“Capital Lease” means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.
“Capital Lease Obligation” means, with respect to any Person and a Capital Lease, the amount of the obligation of such Person as the lessee under such Capital Lease which would, in accordance with GAAP, appear as a liability on a balance sheet of such Person.
“Cash Equivalent Investment” means Investments held by the Company or any Subsidiary in the form of cash equivalents or short-term marketable debt securities.
“CISADA” means the Comprehensive Iran Sanctions, Accountability and Divestment Act.
“Closing” is defined in Section 3.
“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time.
“Company” means Stericycle, Inc., a Delaware corporation.
“Confidential Information” is defined in Section 20.
“Consolidated Debt” means as of any date of determination the total amount of all Debt of the Company and its Subsidiaries determined on a consolidated basis in accordance with GAAP.
“Consolidated EBITDA” means, for any period, for the Company and its Subsidiaries on a Consolidated basis, an amount equal to Consolidated Net Income for such period, plus, (a) to the extent deducted in calculating such Consolidated Net Income and without duplication, (i) Consolidated Interest Charges for such period, (ii) the provision for federal, state, local and foreign income taxes payable by the Company and its Subsidiaries for such period, (iii) depreciation and amortization expense, (iv) other non-recurring expenses of the Company and its Subsidiaries reducing such Consolidated Net Income which do not represent a cash item in such period or any future period, (v) non-cash stock compensation expenses of the Company and its Subsidiaries incurred in such period and (vi) up to $45,000,000 in the aggregate of cash charges associated with the settlement of the TCPA Action and minus (b) the following to the extent included in calculating such Consolidated Net Income (i) federal, state, local and foreign income tax credits of the Company and its Subsidiaries for such period, and (ii) all non-cash items increasing Consolidated Net Income 

B-2

for such period, provided that Consolidated EBITDA shall be increased by the amount of Transaction Costs incurred during such period to the extent such amount was deducted in determining Consolidated Net Income for such period.  For purposes of calculating Consolidated EBITDA for any period of four consecutive quarters, if during such period the Company or any Subsidiary shall have made any Acquisition or disposed of any Person or of all or substantially all of the operating assets of any Person, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such transaction occurred on the first day of such period.
“Consolidated Interest Charges” means, for any period, for the Company and its Subsidiaries on a consolidated basis, the sum of (a) all interest, premium payments, debt discount, fees, charges and related expenses of the Company and its Subsidiaries in connection with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP, and (b) the portion of rent expense of the Company and its Subsidiaries with respect to such period under capital leases and Synthetic Lease Obligations that is treated as interest in accordance with GAAP.
“Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a)(i) Consolidated Debt as of such date minus (ii) Unrestricted Cash as of such date to (b) Consolidated EBITDA for the period of the four consecutive fiscal quarters most recently ended provided that to the extent the Company or any of its Subsidiaries incurs any SIT Acquisition Debt on or after August 13, 2015 but on or prior to the consummation of the SIT Acquisition, such SIT Acquisition Debt (so long as such debt is unfunded and undrawn) shall be excluded for purposes of calculating the Consolidated Leverage Ratio at any time prior to the earlier to occur of (x) the consummation of the SIT Acquisition and (y) the SIT Acquisition Termination Date.
“Consolidated Net Income” means, for any period, for the Company and its Subsidiaries on a consolidated basis, the net income of the Company and its Subsidiaries (including extraordinary losses, but excluding, except to the extent of extraordinary losses during such period, extraordinary gains) for that period.
“Consolidated Net Worth” means the consolidated stockholder’s equity of the Company and its Subsidiaries, as defined according to GAAP (but excluding minority interests). 
“Consolidated Total Assets” means, as of any date of determination, the total amount of all assets of the Company and its Subsidiaries, determined on a consolidated basis in accordance with GAAP.
“Controlled Entity” means (i) any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled Affiliates and (ii) if the Company has a parent company, such 

B-3

parent company and its Controlled Affiliates. As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.
“Debt” means, with respect to any Person, without duplication,
(a)    its liabilities for borrowed money;
(b)    its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable and other accrued liabilities arising in the ordinary course of business but including, without limitation, all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property);
(c)    its Capital Lease Obligations; 
(d)    its liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for such liabilities); and
(e)    Guaranties by such Person with respect to liabilities of a type described in any of clauses (a) through (d) hereof.
Debt of any Person shall include all obligations of such Person of the character described in clauses (a) through (e) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP.  
“Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.
“Default Rate” means with respect to the Notes of any Series, that rate of interest that is the greater of (i) 2% per annum above the rate of interest stated in clause (a) of the first paragraph of the Notes of such Series or (ii) 2% over the rate of interest publicly announced by Bank of America, N.A. in New York, New York as its “base” or “prime” rate.
“Disclosure Documents” is defined in Section 5.3.
“Disqualified Equity Interests” means any Equity Interests that, by their terms (or by the terms of any security or other Equity Interest into which they are convertible or for which they are exchangeable) or upon the happening of any event or condition, (a) mature or are mandatorily 

B-4

redeemable (other than solely for Qualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Notes and all other obligations that are accrued and payable under the Note Purchase Agreement and the Notes), (b) are redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests) (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Notes and all other obligations that are accrued and payable under the Note Purchase Agreement and the Notes), in whole or in part, (c) provide for the scheduled payment of dividends in cash (unless any such dividend may be made in Qualified Equity Interests at the election of the Company) or (d) are or become convertible into or exchangeable for Debt or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is 91 days after the maturity date of the Series B Notes; provided that if such Equity Interests are issued pursuant to a plan for the benefit of the Company or its Subsidiaries or by any such plan to employees of the Company or its Subsidiaries, such Equity Interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by the Company or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations.
“Environmental Laws” means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including but not limited to those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.
“Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.
“Equity Issuance” means any issuance by the Company after August 13, 2015 of (a) shares of its common Equity Interests or (b) Mandatorily Convertible Shares, in each case, to any Person that is not a Note Party or an Affiliate of a Note Party.

B-5

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.
“ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code.
“Event of Default” is defined in Section 11.
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder from time to time in effect.
“Excluded Subsidiary” means (a) any Foreign Subsidiary, (b) any domestic Subsidiary substantially all of the assets of which consist of the Equity Interests in one or more Foreign Subsidiaries, (c) any domestic Subsidiary that is a direct or indirect Subsidiary of a Foreign Subsidiary described in clauses (a) or (b), (d) any Subsidiary that is prohibited or restricted by applicable law from providing a Guaranty for so long as such prohibition or restriction exists, or if such Guaranty would require governmental (including regulatory) consent, approval, license or authorization unless such consent, approval, license or authorization has been received, (e) any Subsidiary to the extent and for so long as such Subsidiary providing a Guaranty would result in a material adverse tax consequence to the Company and its Subsidiaries (including as a result of the operation of Section 956 of the Code or any similar law or regulation in any applicable jurisdiction) as reasonably determined by the Company, (f) any other Subsidiary with respect to which, in the reasonable judgment of the Required Holders (confirmed in writing by notice to the Company), the cost or other consequences (including any adverse tax consequences) of providing the Guaranty shall be excessive in view of the benefits to be obtained by the holders of the Notes therefrom, and (g) any Subsidiary that is not a Material Subsidiary.
“Fair Market Value” means, at any time and with respect to any property, the sale value of such property that would be realized in an arm’s-length sale at such time between an informed and willing buyer and an informed and willing seller (neither being under a compulsion to buy or sell), as reasonably determined in the good faith opinion of the Company’s board of directors.
“Fitch” means Fitch, Inc.
“Foreign Subsidiary” means a Subsidiary that is organized under the laws of a jurisdiction other than the United States or any state thereof.
“GAAP” means those generally accepted accounting principles as in effect from time to time in the United States of America; provided that, if the Company notifies the Required Holders that the Company wishes to amend any negative covenants (or any definition hereof) to eliminate 

B-6

the effect of any change in generally accepted accounting principles on the operation of such covenant or definition, then the Company’s compliance with such covenant or the meaning of such definition shall be determined on the basis of generally accepted accounting principles in effect immediately before the relevant change in generally accepted accounting principles became effective, until either such notice is withdrawn or such covenant is amended  in a manner satisfactory to the Company and the Required Holders; provided, further that for purposes of determining compliance with the financial covenants contained in this Agreement any election by the Company to measure Debt using fair value accounting (as permitted by Statement of Financial Accounting Standards No. 159 or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made and such Debt shall be valued at not less than 100% of the principal amount thereof.
“Governmental Authority” means
(a)    the government of
(i)    the United States of America or any state or other political subdivision thereof, or
(ii)    any other jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or
(b)    any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.
“Governmental Official” means any governmental official or employee, employee of any government‐owned or government‐controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.
“Guaranty” means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any Debt, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including (without limitation) obligations incurred through an agreement, contingent or otherwise, by such Person:
(a)    to purchase such Debt or obligation or any property constituting security therefor primarily for the purpose of assuring the owner of such Debt or obligation of the ability of any other Person to make payment of the Debt or obligation;

B-7

(b)    to advance or supply funds (i) for the purchase or payment of such Debt or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such Debt or obligation;
(c)    to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such Debt or obligation of the ability of any other Person to make payment of the Debt or obligation; or
(d)    otherwise to assure the owner of such Debt or obligation against loss in respect thereof.
In any computation of the Debt or other liabilities of the obligor under any Guaranty, the Debt or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.  
“Hazardous Material” means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law including, but not limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.
“holder” means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company pursuant to Section 13.1, provided, however, that if such Person is a nominee, then for the purposes of Sections 7, 12, 17.2 and 18 and any related definitions in this Schedule B, “holder” shall mean the beneficial owner of such Note whose name and address appears in such register.
“Increased Interest Rate” means the occurrence of a Primary Increased Interest Rate.
“INHAM Exemption” is defined in Section 6.3(e).
“Initial Period” is defined in Section 10.1(a).
“Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note holding (together with one or more of its affiliates) more than $2,000,000 of the aggregate principal amount of the Notes then outstanding, and (c) any bank, trust company, savings and loan association or 

B-8

other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form.
“Investments” means all investments, in cash or by delivery of property made, directly or indirectly in any Person, whether by acquisition of shares of capital stock, Debt or other obligations or securities or by loan, advance, capital contribution or otherwise.
“Lease Rentals” means, for any period, the aggregate amount of fixed rental or operating lease expense payable by the Company and its Subsidiaries with respect to leases of real and personal property (excluding Capital Lease Obligations) determined in accordance with GAAP.
“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement (other than an operating lease) or Capital Lease, upon or with respect to any property or asset of such Person (including, in the case of stock, shareholder agreements, voting trust agreements and all similar arrangements).  
“Make-Whole Amount” is defined in Section 8.6.
“Mandatorily Convertible Shares” means any shares of preferred Equity Interests in the Company (other than Disqualified Equity Interests) that are mandatorily convertible into shares of its common Equity Interests.
“Material” means material in relation to the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole.
“Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, or (b) the ability of the Company to perform its obligations under this Agreement and the Notes, (c) the ability of any Subsidiary Guarantor to perform its obligations under the Subsidiary Guaranty or (d) the validity or enforceability of this Agreement, the Notes or the Subsidiary Guaranty.
“Material Subsidiary” means, at any time, any Subsidiary of the Company (i) which, as of the end of the then most recently ended fiscal quarter of the Company for the period of four consecutive fiscal quarters then ended, contributes greater than 5% of Consolidated EBITDA (adjusted to eliminate the effect of intercompany transactions) for such period, (ii) the consolidated total assets reflected on the balance sheet of such Subsidiary as of the end of such fiscal quarter were greater than 5% of Consolidated Total Assets (adjusted to eliminate intercompany transactions) 

B-9

as of such date or the intellectual property rights of which are material to the operation of the business of the Company and its Subsidiaries taken as a whole or (iii) which, as of the end of such fiscal quarter for the period of four consecutive fiscal quarters then ended, contributes greater than 5% of consolidated revenue (adjusted to eliminate the effect of intercompany transactions) for such period.
“Memorandum” is defined in Section 5.3.
“Moody’s” means Moody’s Investors Service, Inc.
“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in Section 4001(a)(3) of ERISA).
“NAIC” means the National Association of Insurance Commissioners or any successor thereto.
“Note Party” means collectively, the Company and such Subsidiary Guarantor.
“Notes” is defined in Section 1.1.
“OFAC” is defined in Section 5.16(a).
“OFAC Listed Person” is defined in Section 5.16(a).
“OFAC Sanctions Program” means any economic or trade sanction that OFAC is responsible for administering and enforcing.  A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource‐center/sanctions/Programs/Pages/Programs.aspx.
“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate.
“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.
“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a government or agency or political subdivision thereof.
“Plan” means an “employee benefit plan” (as defined in Section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be 

B-10

made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability.
“Primary Event Leverage Increase” is defined in Section 9.9(a).
“Primary Increased Interest Rate” is defined in Section 9.9(a).
“Priority Debt” means (without duplication), as of the date of any determination thereof, the sum of (a) all unsecured Debt of Subsidiaries, including all Guaranties of Debt of the Company, but excluding (i) Debt owing to the Company or any Subsidiary, (ii) Debt outstanding at the time such entity became a Subsidiary, provided that such Debt shall not have been incurred in contemplation of such entity becoming a Subsidiary, (iii) Unsecured Acquisition Debt, and (iv) unsecured Debt (including Guaranties of Debt of the Company or any Subsidiary) of the Subsidiary Guarantors so long as the Subsidiary Guaranty provided by the Subsidiary Guarantors is in effect, (b) all Debt of the Company and its Subsidiaries secured by Liens other than Debt secured by Liens permitted by clauses (a) through (i), inclusive, of Section 10.3.
“property” or “properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.
“PTE” is defined in Section 6.3(a).
“Purchasers” means the purchasers of the Notes named in Schedule A hereto.
“QPAM Exemption” is defined in Section 6.3(d).
“Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity Interests.
“Qualified Institutional Buyer” means any Person who is a qualified institutional buyer within the meaning of such term as set forth in Rule 144(a)(1) under the Securities Act.
“Rating Agency” means any of S&P, Moody’s or Fitch.
“Required Holders” means, at any time, the holders of not less than 51% in principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its Affiliates and any Notes held by parties who are contractually required to abstain from voting with respect to matters affecting the holders of the Notes).

B-11

“Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement.
“S&P” means Standard and Poor’s Rating Services.
“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.
“Senior Debt” means, as of the date of any determination thereof, all Consolidated Debt, other than Subordinated Debt.
“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the Company.
“Series” means any Series of Notes issued pursuant to this Agreement.
“Series A Notes” is defined in Section 1.1 of this Agreement.
“Series B Notes” is defined in Section 1.1 of this Agreement.
“SIT Acquisition” means the Acquisition by the Company and certain of its Subsidiaries of the Target Group, as more specifically described in the Company’s Form 8-K filed with the SEC on July 21, 2015.
“SIT Acquisition Agreement” means that certain Securities Purchase Agreement dated as of July 15, 2015 between the Company and the Vendors (as defined therein), including all schedules and exhibits thereto (as amended, supplemented or otherwise modified).
“SIT Acquisition Debt” means all Debt incurred by the Company or any Subsidiary on or before the date the SIT Acquisition is consummated the proceeds of which are contemplated to be used by the Company to consummate the SIT Acquisition (as certified by a Responsible Officer of the Company in a certificate delivered to the holders of the Notes on or prior to the date of incurrence thereof (or such later date as may be permitted by the Required Holders)); provided that the aggregate principal amount of all such Debt shall not exceed an amount equal to $2,400,000,000 less the amount, if any, of Debt under the Bank Credit Agreement the proceeds of which are used to consummate the SIT Acquisition.  
“SIT Acquisition Termination Date” means the earlier to occur of (a) the date that the pursuit of the SIT Acquisition is abandoned by the Company and (b) if the SIT Acquisition has not been 

B-12

consummated prior to such time, November 15, 2015 (or such later date to which the outside date of the closing of the SIT Acquisition is extended, but in any event no later than January 15, 2016).
“Source” is defined in Section 6.3.
“Subordinated Debt” means all unsecured Debt of the Company which shall contain or have applicable thereto subordination provisions providing for the subordination thereof to other Debt of the Company (including, without limitation, the obligations of the Company under this Agreement or the Notes).
“Subsidiary” means, as to any Person, any corporation, association or other business entity in which such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such entity, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries).  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company.
“Subsidiary Guarantors” means each Subsidiary which is party to the Subsidiary Guaranty.
“Subsidiary Guaranty” is defined in Section 2.2 of this Agreement.
“SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.
“Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so‐called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).
“Target Group” means, collectively Shred-it International ULC, an Alberta unlimited liability corporation, Shred-it JV LP, an Ontario limited partnership, Boost GP Corp., an Ontario corporation, and Boost Holdings LP, an Ontario limited partnership, and each of their respective Subsidiaries (if any).  
“TCPA Action” means the claims made against the Company and certain of its Subsidiaries in Sawyer v. Stericycle, et al., Case No. 2015 CH 07190 in the Circuit Court of Cook County, 

B-13

Illinois, and any related prior proceedings alleging violations of the Telephone Consumer Protection Act of 1991, as amended by the Junk Fax Prevention Act of 2005, as more specifically described in the Company’s Form 8-K filed with the SEC on May 21, 2015.
“Transaction Costs” means extraordinary and non-recurring costs incurred by the Company or any Subsidiary (including fees of any consultant engaged by the Company or such Subsidiary to assist with due diligence matters) in effecting any Acquisition.
“Unrestricted Cash” means, at any time, cash and Cash Equivalent Investments of the Company and its Subsidiaries to the extent such cash and Cash Equivalent Investments are not subject to any Lien (other than a banker’s Lien or right of setoff pursuant to customary deposit arrangements) or any restriction as to its use and is included in “cash and cash equivalents” and not “restricted cash” on the consolidated balance sheet of the Company.
“Unsecured Acquisition Debt” means unsecured Debt of a Subsidiary (a) incurred in connection with the acquisition of a business by a Subsidiary, (b) payable to the owner of such business, (c) in an aggregate principal amount which does not exceed the lesser of (i) the cost of acquiring such business, or (ii) the Fair Market Value of such business (as determined in good faith by one or more officers of the Company to whom authority to enter into the transaction has been delegated by the board of directors of the Company), and (d) at the time of incurrence of such Debt and after giving effect thereto, no Default or Event of Default would exist.
“USA PATRIOT Act” means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.
“U.S. Economic Sanctions” is defined in Section 5.16(a).
“Wholly‐Owned Subsidiary” means, at any time, any Subsidiary all of the equity interests (except directors’ qualifying shares) and voting interests of which are owned by any one or more of the Company and the Company’s other Wholly‐Owned Subsidiaries at such time.

B-14

CHANGES IN CORPORATE STRUCTURE

[omitted]

SCHEDULE 4.9
(to Note Purchase Agreement)

 SUBSIDIARIES OF THE COMPANY, OWNERSHIP OF SUBSIDIARY STOCK,
INVESTMENTS, AFFILIATES, DIRECTORS AND OFFICERS

[omitted]

SCHEDULE 5.5
(to Note Purchase Agreement)

FINANCIAL STATEMENTS

[omitted]

5.15–2

 LICENSES, PERMITS, ETC.

[omitted]

SCHEDULE 5.11
(to Note Purchase Agreement)

EXISTING DEBT

[omitted]

SCHEDULE 5.15
(to Note Purchase Agreement)

LIENS EXISTING AS OF THE CLOSING DATE

[omitted]

SCHEDULE 10.3 
(to Note Purchase Agreement)

FORM OF SERIES A NOTE
 
STERICYCLE, INC. 
 
2.89% SENIOR NOTE, SERIES A, DUE OCTOBER 1, 2021

No.  [_______]    October 1, 2015 
$[__________]    PPN __________
FOR VALUE RECEIVED, the undersigned, STERICYCLE, INC. (herein called the “Company”), a corporation organized and existing under the laws of the State of Delaware, hereby promises to pay to [_____________________] or registered assigns, the principal sum of [______________] DOLLARS (or so much thereof as shall not have been prepaid) on October 1, 2021 with interest (computed on the basis of a 360‐day year of twelve 30-day months) (a) on the unpaid balance hereof at the rate of 2.89% per annum from the date hereof, payable semiannually, on the first (1st) day of April and October in each year and at maturity, commencing on April 1, 2016, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, at a rate per annum from time to time equal to the Default Rate, on any overdue payment of interest and, during the continuance of an Event of Default, on the unpaid balance hereof and on any overdue payment of any Make-Whole Amount, payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).
Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at the principal office of Bank of America, N.A. in New York, New York or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.
This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to the Note Purchase Agreement, dated as of October 1, 2015 (as from time to time amended, supplemented or modified, the “Note Purchase Agreement”), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof.  Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made the representations set forth in Section 6.3 of the Note Purchase Agreement, provided, that in lieu thereof such holder may (in reliance upon information provided by the Company, which shall not be unreasonably withheld) make a representation to the effect that the purchase by any holder of any Note will not constitute a non-exempt prohibited transaction under section 406(a) of ERISA.  Unless otherwise indicated, 

EXHIBIT 1(a) 
(to Note Purchase Agreement)

capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.
This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.
Pursuant to the Subsidiary Guaranty Agreement dated as of October 1, 2015 (as amended, restated or otherwise modified from time to time, the “Subsidiary Guaranty”), one or more Subsidiaries of the Company have absolutely and unconditionally guaranteed payment in full of the principal of, Make-Whole Amount, if any, and interest on this Note and the performance by the Company of its obligations contained in the Note Purchase Agreement all as more fully set forth in said Subsidiary Guaranty.
If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.
This Note is subject to an Increased Interest Rate on the terms set forth in the Note Purchase Agreement.
This Note shall be construed and enforced in accordance with, and the rights of the issuer and holder hereof shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State.

STERICYCLE, INC.

By     
Name:     
Title:     

E-1(a)-2

FORM OF SERIES B NOTE
 
STERICYCLE, INC. 
 
3.18% SENIOR NOTE, SERIES B, DUE OCTOBER 1, 2023

No.  [_______]    October 1, 2015 
$[__________]    PPN __________
FOR VALUE RECEIVED, the undersigned, STERICYCLE, INC. (herein called the “Company”), a corporation organized and existing under the laws of the State of Delaware, hereby promises to pay to [_____________________] or registered assigns, the principal sum of [______________] DOLLARS (or so much thereof as shall not have been prepaid) on October 1, 2023 with interest (computed on the basis of a 360‐day year of twelve 30-day months) (a) on the unpaid balance hereof at the rate of 3.18% per annum from the date hereof, payable semiannually, on the first (1st) day of April and October in each year and at maturity, commencing on April 1, 2016, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, at a rate per annum from time to time equal to the Default Rate, on any overdue payment of interest and, during the continuance of an Event of Default, on the unpaid balance hereof and on any overdue payment of any Make-Whole Amount, payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).
Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at the principal office of Bank of America, N.A. in New York, New York or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.
This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to the Note Purchase Agreement, dated as of October 1, 2015 (as from time to time amended, supplemented or modified, the “Note Purchase Agreement”), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof.  Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made the representations set forth in Section 6.3 of the Note Purchase Agreement, provided, that in lieu thereof such holder may (in reliance upon information provided by the Company, which shall not be unreasonably withheld) make a representation to the effect that the purchase by any holder of any Note will not constitute a non-exempt prohibited transaction under section 406(a) of ERISA.  Unless otherwise indicated, 

EXHIBIT 1(b) 
(to Note Purchase Agreement)

capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.
This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.
Pursuant to the Subsidiary Guaranty Agreement dated as of October 1, 2015 (as amended, restated or otherwise modified from time to time, the “Subsidiary Guaranty”), one or more Subsidiaries of the Company have absolutely and unconditionally guaranteed payment in full of the principal of, Make-Whole Amount, if any, and interest on this Note and the performance by the Company of its obligations contained in the Note Purchase Agreement all as more fully set forth in said Subsidiary Guaranty.
If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.
This Note is subject to an Increased Interest Rate on the terms set forth in the Note Purchase Agreement.
This Note shall be construed and enforced in accordance with, and the rights of the issuer and holder hereof shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State.

STERICYCLE, INC.

By     
Name:     
Title:     

E-1(b)-2

FORM OF SUBSIDIARY GUARANTY

[omitted]

FORM OF OFFICER’S CERTIFICATE

[omitted]

FORM OF OPINION OF SPECIAL COUNSEL
TO THE COMPANY

[omitted]

EXHIBIT 4.4(a)
(to Note Purchase Agreement)

FORM OF OPINION OF SPECIAL COUNSEL
TO THE PURCHASERS

[omitted]

EXHIBIT 4.4(b)
(to Note Purchase Agreement)

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