Document:

Exhibit

Exhibit 10.55
Execution Copy

FIRST AMENDMENT 
FIRST AMENDMENT, dated as of December 12, 2017 (the “Amendment”), to the Credit Agreement, dated as of June 27, 2011, as amended and restated as of July 2, 2015, and as further amended and restated as of August 21, 2017 (as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among IRON MOUNTAIN INCORPORATED, a Delaware corporation (the “Parent”), IRON MOUNTAIN INFORMATION MANAGEMENT, LLC, a Delaware limited liability company (the “Company”), each of the other Borrowers party thereto, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement as Lenders (the “Lenders”), JPMORGAN CHASE BANK, TORONTO BRANCH, as Canadian Administrative Agent (in such capacity, the “Canadian Administrative Agent”) and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), and the other parties thereto.
W I T N E S S E T H:
WHEREAS, the Borrowers, the Lenders, the Canadian Administrative Agent and the Administrative Agent are parties to the Credit Agreement;
WHEREAS, the Company has requested certain amendments to the Credit Agreement; and
WHEREAS, the Lenders are willing to agree to such amendments, subject to the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the parties hereto hereby agree as follows:
1.Defined Terms.  Unless otherwise defined herein, all capitalized terms used herein shall have the meanings given to them in the Credit Agreement.
2.    Amendments to Credit Agreement.  
(a)    Section 1.01 of the Credit Agreement is amended by adding the following definitions in the appropriate alphabetical order:
“Bridge Credit Agreement” shall mean any credit agreement providing for unsecured interim term loans incurred to finance the IODC Acquisition (including the refinancing of any existing Indebtedness or the payment of fees and expenses in connection therewith), having terms and conditions substantially consistent in all material respects with the terms and conditions specified in Exhibit B to the First Amendment.

 

“First Amendment” shall mean that certain First Amendment, dated as of December 12, 2017, to this Agreement.

“IODC Acquisition” means the Acquisition of IO Data Centers, LLC.

(b)    Section 1.01 of the Credit Agreement is further amended by amending the definition of “Funded Indebtedness” to add the following words at the end thereof:
“or under the Bridge Credit Agreement.”
(c)    Section 1.01 of the Credit Agreement is further amended by replacing in their entirety the definitions of “Issuing Bank”, “Issuing Bank Sublimit” and “Letter of Credit Sublimit” with the following:
“Issuing Bank” shall mean (a) JPMorgan Chase Bank or any Affiliate thereof, (b) Bank of America, N.A. or any Affiliate thereof, (c) Barclays Bank PLC or any Affiliate thereof, or (d) any other Lender so designated with the consent of such other Lender, JPMorgan Chase Bank and the Company.

“Issuing Bank Sublimit” means (a) $66,666,667 in the case of JPMorgan Chase Bank and its Affiliates, (b) $66,666,667 in the case of Bank of America, N.A. and its Affiliates, (c) $66,666,666 in the case of Barclays Bank PLC and its Affiliates and (d) in the case of any other Issuing Bank, an amount agreed by such Issuing Bank and the Company.

“Letter of Credit Sublimit” means $200,000,000, as such amount may be decreased from time to time by the Company.

(d)    Section 9.08(iv) of the Credit Agreement is amended by adding the following parenthetical immediately after the words “so long as such Senior Unsecured Debt”:
“(other than Senior Unsecured Debt under the Bridge Credit Agreement)” 

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(e)    Clause (A) of Section 9.08(vi) of the Credit Agreement is amended by replacing the words “does not exceed $900,000,000” with the words “does not exceed $1,000,000,000”.
(f)    Clause (ii) of Section 9.17(iv) of the Credit Agreement is amended in full to read as follows:
“(ii) (A) such other purchase, redemption or retirement is in connection with a refinancing of such Subordinated Indebtedness or Senior Unsecured Debt with the proceeds of, or in connection with an exchange of such Subordinated Indebtedness or Senior Unsecured Debt for a new series of, Senior Subordinated Debt or Senior Unsecured Debt issued within 180 days of the substantial completion of such purchase, redemption or retirement, (B) after giving effect to such purchase, redemption or retirement and any related incurrence of Indebtedness, the Net Total Lease Adjusted Leverage Ratio, on a pro forma basis, after giving effect to such purchase, redemption or retirement and any Stock Repurchase and any Dividend Payment consummated on or prior to the date thereof, and to any borrowings to finance the same, is less than or equal to 6.5 to 1.0 and/or (C) such other purchase, redemption or retirement is of Indebtedness under the Bridge Credit Agreement.”

(g)    Section 12.05(a) of the Credit Agreement is amended by adding a new clause (w) to the last sentence of the first paragraph of Section 12.05(a), such that the last sentence of the first paragraph of Section 12.05(a) as amended hereby reads as follows:
“Notwithstanding anything in this Section 12.05 to the contrary, no amendment, waiver or consent shall be made (w) affecting the rights or duties of any Issuing Bank or Canadian Issuing Bank under this Agreement or any Letter of Credit Document, in each case relating to Letters of Credit issued or to be issued by it, without the consent of such Issuing Bank or Canadian Issuing Bank, as applicable, (x) with respect to Section 11 without the consent of the Administrative Agent, (y) with respect to Annex A hereto without the consent of the Canadian Borrowers or (z) with respect to Section 2.10 hereto without the consent of the Administrative Agent and the Issuing Bank.”  

3.    Representations and Warranties.  On and as of the date hereof, each of the Parent and the Company hereby confirms, reaffirms and restates the representations and warranties set forth in Section 8 of the Credit Agreement and the representations and warranties in the Basic Documents mutatis mutandis, except to the extent that such representations and warranties expressly relate to a specific earlier date in which case the Parent and the Company each hereby confirms, reaffirms and restates such representations and warranties as of such earlier date.  Each of the Parent and the Company represents and warrants that, after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

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4.    Effectiveness.  This Amendment shall be a valid and binding agreement upon satisfaction of the condition in Section 4(a) hereof, but the amendments to the Credit Agreement set forth in Section 2 hereof will only become effective as of the date set forth above (the “Effective Date”) upon the satisfaction of each of the following conditions precedent:
(a)    Amendment.  The Administrative Agent shall have received this Amendment executed and delivered by the Administrative Agent, the Canadian Administrative Agent, the Parent, the Company, the Issuing Banks and the Lenders party to the Credit Agreement constituting the “Majority Lenders” thereunder.
(b)    Security Documents. The Administrative Agent shall have received the Acknowledgment and Confirmation, substantially in the form of Exhibit A hereto, executed and delivered by an authorized officer of the Parent, the Company, each of the other Borrowers and each Subsidiary Guarantor.
5.    Valid and Binding.  This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.
6.    Payment of Expenses.  The Company agrees to pay or reimburse the Administrative Agent for all out-of-pocket costs and expenses incurred in connection with the Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel.
7.    Reference to and Effect on the Credit Agreement; Limited Effect.  On and after the Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended hereby.  This Amendment shall not constitute an amendment of any other provision of the Credit Agreement not expressly referred to herein and shall not be construed as a waiver or consent to any further or future action on the part of the Company that would require a waiver or consent of the Lenders, the Canadian Administrative Agent or the Administrative Agent.  Except as expressly amended hereby, the provisions of the Credit Agreement are and shall remain in full force and effect. 
8.    Severability.  Any provision of this Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
9.    Loan Document; Integration.  This Amendment shall constitute a Basic Document.  This Amendment and the other Basic Documents represent the 

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agreement of each Borrower, each Subsidiary Guarantor, the Canadian Administrative Agent, the Administrative Agent and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Canadian Administrative Agent, the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Basic Documents.
10.    GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
11.    Counterparts.  This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts (which may include counterparts delivered by facsimile transmission), each of which shall be deemed to be an original, and all of which taken together shall be deemed to constitute one and the same instrument.

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.
IRON MOUNTAIN INCORPORATED
IRON MOUNTAIN INFORMATION MANAGEMENT, LLC 
IRON MOUNTAIN FULFILLMENT SERVICES, INC. 
IRON MOUNTAIN INTELLECTUAL PROPERTY MANAGEMENT, INC.
IRON MOUNTAIN GLOBAL LLC
IRON MOUNTAIN US HOLDINGS, INC.
IRON MOUNTAIN SECURE SHREDDING, INC.
IRON MOUNTAIN INFORMATION MANAGEMENT SERVICES, INC.
IRON MOUNTAIN CANADA OPERATIONS ULC
IRON MOUNTAIN INFORMATION MANAGEMENT SERVICES CANADA, INC.
IRON MOUNTAIN SECURE SHREDDING CANADA, INC.

By: /s/Christopher LaRochelle     
Name: Christopher LaRochelle
Title: Vice President and Treasurer

[Signature Page to First Amendment]

 

 
JPMORGAN CHASE BANK, N.A., as 
Administrative Agent and as a Lender

By: /s/Mohammad Hasan     
Name:   Mohammad Hasan
Title:     Executive Director

[Signature Page to First Amendment]

 

JPMORGAN CHASE BANK, TORONTO BRANCH, as Canadian Administrative Agent and as a Canadian Lender

By: /s/Mohammad Hassan     
Name:  Mohammad Hasan
Title:    Executive Director

[Signature Page to First Amendment]

 

BARCLAYS BANK PLC, as Issuing Bank and as a Lender

By: /s/Robert Chen     
Name:  Robert Chen
Title:    Managing Director

[Signature Page to First Amendment]

 

Bank of America, N.A.

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

[Signature Page to First Amendment]

 

MORGAN STANLEY BANK, N.A.

By /s/Emanuel Ma     
Name:  Emanuel Ma
Title:    Authorized Signatory

[Signature Page to First Amendment]

 

MORGAN STANLEY SENIOR FUNDING, INC.

By: /s/Emanuel Ma     
Name:  Emanuel Ma
Title:   Vice President

[Signature Page to First Amendment]

 

Wells Fargo Bank, National Association, as a Lender

By:/s/Daniel Kurtz     
Name:  Daniel Kurtz
Title:   Vice President

[Signature Page to First Amendment]

 

GOLDMAN SACHS BANK USA

By: /s/Chris Lam     
Name:  Chris Lam
Title:    Authorized Signatory

[Signature Page to First Amendment]

 

Credit Agricole Corporate & Investment Bank 
 
 
 
By:    /s/Brad Matthews                 
Name:  Brad Matthews 
Title:   Director
By:    /s/Thibault Rosset\                 
Name:  Thibault Rosset 
Title:   Managing Director

[Signature Page to First Amendment]

 

HSBC Bank USA, National Association
By: /s/Patrick D. Mueller             
Name:  Patrick D. Mueller 
Title:   Director

[Signature Page to First Amendment]

 

THE BANK OF NOVA SCOTIA 
 
 
 
By: /s/Mauricio Saishio                 
Name:  Mauricio Saishio 
Title:   Director

[Signature Page to First Amendment]

 

SCOTIABANK EUROPE PLC 
 
 
 
By: /s/Nikki Petherbridge             
Name:  Nikki Petherbridge 
Title:   Managing Director

 
 
By: /s/Martin Doyle                 
Name:  Martin Doyle 
Title:   Director

[Signature Page to First Amendment]

 

People’s United Bank, National Association 
 
 
 
By: :/s/Kathryn Williams             
Name:  Kathryn Williams 
Title:   Vice President

[Signature Page to First Amendment]

 

The Bank of Tokyo-Mitsubishi UFJ, Ltd. 
 
 
 
By: /s/George Stoecklein             
Name:  George Stoecklein 
Title:   Managing Director

[Signature Page to First Amendment]

 

TD BANK, N.A. 
 
 
 
By: /s/Alan Garson                 
Name:  Alan Garson 
Title:   Senior Vice President

[Signature Page to First Amendment]

 

Citizens Bank, N.A. 
 
 
 
By: /s/Peter van der Horst             
Name:  Peter van der Horst 
Title:   Senior Vice President

[Signature Page to First Amendment]

 

SUNTRUST BANK, as a Lender 
 
 
 
By: /s/Jason Crowley                 
Name:  Jason Crowley 
Title:   Vice President

[Signature Page to First Amendment]

 

ROYAL BANK OF CANADA 
 
 
 
By: /s/Sheena Lee                 
Name:  Sheena Lee 
Title:   Authorized Signatory

[Signature Page to First Amendment]

 

HSBC Bank plc 
 
 
 
By: /s/Steven P. Sherratt             
Name:  Steven P. Sherratt 
Title:   Regional Director

[Signature Page to First Amendment]

EXHIBIT A
ACKNOWLEDGMENT AND CONFIRMATION
ACKNOWLEDGMENT AND CONFIRMATION, dated as of December 12, 2017 (this “Acknowledgment”), to:
		
	1.
	the AMENDED AND RESTATED PARENT GUARANTY, dated as of July 2, 2015 (as amended, supplemented or otherwise modified from time to time, including this Acknowledgment, the “Parent Guaranty”), made among IRON MOUNTAIN INCORPORATED, a Delaware corporation (the “Parent”), JPMORGAN CHASE BANK, N.A., as agent for the lenders or other financial institutions or entities party, as lenders, to the Credit Agreement referred to below (in such capacity, together with its successors in such capacity, the “Administrative Agent”); and JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as agent for the Canadian lenders or other Canadian financial institutions or entities party, as lenders, to the Credit Agreement referred to below (in such capacity, together with its successors in such capacity, the “Canadian Administrative Agent”);

		
	2.
	the AMENDED AND RESTATED COMPANY GUARANTY, dated as of July 2, 2015 (as amended, supplemented or otherwise modified from time to time, including this Acknowledgment, the “Company Guaranty”), made among IRON MOUNTAIN INFORMATION MANAGEMENT, LLC, a Delaware limited liability company (the “Company”), the Administrative Agent and the Canadian Administrative Agent;

		
	3.
	the AMENDED AND RESTATED SUBSIDIARY GUARANTY, dated as of July 2, 2015 (as amended, supplemented or otherwise modified from time to time, including this Acknowledgment, the “Subsidiary Guaranty”, and, together with the Parent Guaranty and the Company Guaranty, the “Guaranties”, and each a “Guaranty”), among each of the corporations and limited liability companies from time to time party thereto as subsidiary guarantors, of whom the applicable parties are identified under the caption “SUBSIDIARY GUARANTORS” on the signature pages hereto (each such identified party, a “Subsidiary Guarantor” and, collectively, the “Subsidiary Guarantors” and, collectively with the Parent and the Company, the “Guarantors”), the Administrative Agent and the Canadian Administrative Agent;

		
	4.
	the AMENDED AND RESTATED PARENT PLEDGE AGREEMENT, dated as of July 2, 2015 (as amended, supplemented or otherwise modified from time to time, including this Acknowledgment, the “Parent Pledge Agreement”), between the Parent and the Administrative Agent;

		
	5.
	the AMENDED AND RESTATED COMPANY PLEDGE AGREEMENT, dated as of July 2, 2015 (as amended, supplemented or otherwise modified from time to time, including this Acknowledgment, the “Company Pledge Agreement”), between the Company and the Administrative Agent;

		
	6.
	the AMENDED AND RESTATED SUBSIDIARY PLEDGE AGREEMENT, dated as of July 2, 2015 (as amended, supplemented or otherwise modified from time to time, including this Acknowledgment, the “Subsidiary Pledge Agreement”), among the Subsidiary Guarantors and the Administrative Agent; and

		
	7.
	the AMENDED AND RESTATED CANADIAN BORROWER PLEDGE AGREEMENT, dated as of July 2, 2015 (as amended, supplemented or otherwise modified from time to time, including this Acknowledgment, the “Canadian Borrower Pledge Agreement”, and together with the Parent Pledge Agreement, the Company Pledge Agreement and the Subsidiary Pledge Agreement, the “Security Documents” and each a “Security Document”), among each of the companies identified under the caption “CANADIAN BORROWERS” on the signature pages hereto (each individually, a “Canadian Borrower” and, collectively, the “Canadian Borrowers” and collectively with the Parent, the Company and the Subsidiary Guarantors, the “Relevant Obligors”) and the Canadian Administrative Agent.

W I T N E S E T H:
WHEREAS, reference is made to the Credit Agreement, dated as of June 27, 2011, as amended and restated as of July 2, 2015 and as further amended and restated as of August 21, 2017 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Existing Credit Agreement”), among the Parent, the Company, certain subsidiaries of the Parent from time to time party thereto, the Administrative Agent, the Canadian Administrative Agent and the other parties thereto;
WHEREAS, the Parent, the Company, and certain subsidiaries of the Parent, the Administrative Agent, the Canadian Administrative Agent and the other parties to the Existing Credit Agreement have agreed to amend the Existing Credit Agreement pursuant to a First Amendment, dated as of December 12, 2017 (the “Amendment”; the Existing Credit Agreement, as amended by the Amendment, the “Credit Agreement”);  
WHEREAS, it is a condition precedent to the effectiveness of the Amendment that the Relevant Obligors shall have executed and delivered this Acknowledgment to the Administrative Agent and the Canadian Administrative Agent. 
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, each of the Relevant Obligors hereby agrees with the Administrative Agent and the Canadian Administrative Agent as follows:
(a)    Unless otherwise defined herein, all capitalized terms used herein shall have the respective meanings assigned to them in the Credit Agreement. 
(b)    Each Relevant Obligor hereby agrees, with respect to each Guaranty or Security Document to which it is a party, that:
		
	(A)
	all of its obligations, liabilities and indebtedness under such Guaranty or Security Document remain in full force and effect on a continuous basis after giving effect to the Amendment; 

		
	(B)
	it ratifies the Guaranties and the Security Documents to which it is a party;

		
	(C)
	all of the Liens and security interests created and arising under such Security Document remain in full force and effect on a continuous basis, unimpaired, uninterrupted and undischarged, and having the same perfected status and priority, after giving effect to the Amendment, as collateral security for the Secured Obligations (as such term is defined in such Security Document); and

		
	(D)
	it agrees that each of the representations and warranties made by such Relevant Obligor in or pursuant to the Guaranty or Security Document to which it is a party is true and correct in all material respects (or if qualified by materiality, is true and correct in all respects as so qualified) on and as of the date hereof as if made on and as of the date hereof, except to the extent expressly made as of an earlier date, in which case such representations and warranties were so true and correct as of such earlier date.

(c)    Each Relevant Obligor agrees that it shall take any action reasonably requested by the Administrative Agent or Canadian Administrative Agent in order to confirm or effect the intent of this Acknowledgment.
(d)    This Acknowledgement is a Basic Document and shall (unless expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof.
(e)    Neither this Acknowledgement nor the execution, delivery or effectiveness of Amendment shall extinguish the obligations outstanding under the Guaranties, the Security Documents or the other Basic Documents or discharge or release the lien or priority of the Security Documents.  Nothing herein contained shall be construed as a substitution or novation of the obligations outstanding under the Guaranties, the Security Documents or the other Basic Documents or instruments securing the same, which shall remain in full force and effect, except to any extent modified hereby or by instruments executed concurrently herewith.  Nothing implied in this Acknowledgement,  the Credit Agreement, the Guaranties, the Security Documents, the other Basic Documents or in any other document contemplated hereby or thereby shall be construed as a release or other discharge of the Borrower or any other Relevant Obligor from any of its obligations and liabilities as a “Borrower,” “Guarantor,” “Obligor” or “Grantor” under the Credit Agreement , the Guaranties, the Security Documents or any other Basic Document.  Each of the Credit Agreement, the Guaranties and the Security Documents shall remain in full force and effect, until (as applicable) and except to any extent modified hereby or in connection herewith.
(f)    This Acknowledgment shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York.
(g)    This Acknowledgment may be executed by one or more of the parties hereto on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 
[THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

IN WITNESS WHEREOF, the parties hereto have caused this Acknowledgement to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.
PARENT:

IRON MOUNTAIN INCORPORATED

By: /s/Christopher LaRochelle            
Name: Christopher LaRochelle
Title: Vice President and Treasurer

COMPANY:

IRON MOUNTAIN INFORMATION MANAGEMENT, LLC

By:/s/Christopher LaRochelle            
Name: Christopher LaRochelle
Title: Vice President and Treasurer

SUBSIDIARY GUARANTORS:

IRON MOUNTAIN FULFILLMENT SERVICES, INC. 
IRON MOUNTAIN INTELLECTUAL PROPERTY MANAGEMENT, INC.
IRON MOUNTAIN GLOBAL LLC
IRON MOUNTAIN US HOLDINGS, INC.
IRON MOUNTAIN SECURE SHREDDING, INC. 
IRON MOUNTAIN INFORMATION MANAGEMENT SERVICES, INC.
IRON MOUNTAIN GLOBAL HOLDINGS, INC.
NETTLEBED ACQUISITION CORP.
IRON MOUNTAIN DATA CENTER, LLC

By:/s/Christopher LaRochelle            
Name: Christopher LaRochelle
Title: Vice President and Treasurer

CANADIAN BORROWERS:

IRON MOUNTAIN CANADA OPERATIONS ULC 
IRON MOUNTAIN INFORMATION MANAGEMENT SERVICES CANADA, INC.
IRON MOUNTAIN SECURE SHREDDING CANADA, INC.

By:/s/Christopher LaRochelle            
Name: Christopher LaRochelle
Title: Vice President and Treasurer 

ACKNOWLEDGED:
IM CLOSE GMBH

By:/s/Christopher LaRochelle            
Name: Christopher LaRochelle
Title: Managing Director 
 

IRON MOUNTAIN EUROPE PLC
IRON MOUNTAIN HOLDINGS (EUROPE) LIMITED

By /s/Patrick Keddy     
Name: Patrick Keddy
Title: Director

IRON MOUNTAIN SOUTH AMERICA S.À.R.L.

By:/s/Christopher LaRochelle            
Name: Christopher LaRochelle
Title: Manager 

IRON MOUNTAIN INTERNATIONAL (HOLDINGS) LIMITED

By /s/Patrick Keddy     
Name: Patrick Keddy
Title: Director

IRON MOUNTAIN (UK) PLC

By /s/Patrick Keddy     
Name: Patrick Keddy
Title: Director

IRON MOUNTAIN AUSTRIA ARCHIVIERUNG GMBH

By: /s/Robert Nedeljkovic     
Name: Robert Nedeljkovic
Title: Managing Director

IRON MOUNTAIN INTERNATIONAL HOLDINGS BV

By: /s/Jeroen Strik     
Name: Jeroen Strik
Title: Director B

IRON MOUNTAIN LUXEMBOURG SERVICES  
S.À R.L., LUXEMBOURG, SCHAFFHAUSEN BRANCH

By:/s/Christopher LaRochelle            
Name: Christopher LaRochelle
Title: Manager 

 

EXHIBIT B

IRON MOUNTAIN INCORPORATED
UNSECURED BRIDGE FACILITY

Summary of Terms and Conditions
_______________________
	
		
	I.   PARTIES

	Borrower:
	The Parent (the “Borrower”)   

	Guarantors:
	Each of the entities that (i) is a guarantor (a “Notes Guarantor”) as of the date hereof under the Senior Indenture, dated as of September 18, 2017, among the Parent, as issuer and Wells Fargo Bank, National Association, as trustee and each of the Notes Guarantors party thereto, with respect to the 4.875% Senior Notes Due 2027 (the “Senior Unsecured Indenture”), (ii) to the extent not a Notes Guarantor under the Senior Unsecured Indenture as of the date hereof, any direct or indirect domestic subsidiary of the Parent that, after the date hereof, is required to become a Notes Guarantor under the Senior Unsecured Indenture as in effect on the date hereof and (iii) is (or is required to become) a guarantor of senior notes issued by the Parent after the Closing Date (the entities in clauses (i) through (iii), the “Guarantors”).

	Joint Lead Arrangers and Joint Bookrunners:
	Barclays Bank PLC (“Barclays”) and JPMorgan Chase Bank, N.A. (“JPMorgan”),  as joint lead arrangers and joint bookrunners (in such capacity, the “Lead Arrangers”)

	Administrative Agent:
	Barclays (in such capacity, the “Administrative Agent”).

	Lenders:
	The Initial Lenders and a syndicate of banks, financial institutions and other entities, arranged by the Lead Arrangers in consultation with the Parent (collectively, the “Lenders”).

	II.   BRIDGE FACILITY

	Type and Amount:
	A term facility in the amount of up to $1,100,000,000 (the “Bridge Facility”; the loans thereunder, the “Bridge Loans”). 

	Availability:
	One drawing in U.S. dollars  may be made under the Bridge Facility on the Closing Date (as defined below).

	Maturity:
	The Bridge Loans shall mature and, to the extent then outstanding, be payable in full on the date that is 364 days after the Closing Date (the “Initial Bridge Loan Maturity Date” and as may be extended as provided below, the “Maturity Date”); provided that, upon the Parent’s request, the Initial Bridge Loan Maturity Date may be extended by one year subject to the following: (i) such extension request must be made no earlier than 60 days before the Initial Bridge Loan Maturity Date and no later than 30 days before the Initial Bridge Loan Maturity Date, (ii) no default or event of default is in existence at the time of, or would be in existence after giving effect to, such extension, (iii) the representations and warranties in the Bridge Facility Documentation shall be accurate both before and after giving effect to such extension, and (iv) payment by the Parent of an extension fee to each Lender in an amount equal to 1.00% of the Bridge Loans of such Lender outstanding on the Initial Bridge Loan Maturity Date.  

	Purpose:
	The proceeds of the Bridge Loans shall be used to fund, in part, the Acquisition (including the refinancing of certain existing indebtedness of IO Data Centers, LLC (the “Target”) or its subsidiaries and to pay all or a portion of the costs incurred by the Parent or any of its subsidiaries in connection with the Transactions.  

	III.   CERTAIN PAYMENT PROVISIONS

	Fees and Interest Rates:
	As set forth on Schedule I.

	Repayment of Loans:
	All Bridge Loans outstanding will be payable in full on the Maturity Date.

	Optional Prepayments and Commitment Reductions:
	The Bridge Loans may be prepaid, and Bridge Commitments may be reduced, in whole or in part at any time without penalty or premium.  Optional prepayments of the Bridge Loans may not be reborrowed.

	Mandatory Prepayments and Commitment Reductions:
	After the Closing Date, the aggregate Bridge Loans shall be prepaid (including any accrued and unpaid interest thereon), in each case, on a dollar-for-dollar basis, by the following amounts, within one business day of receipt of such amount:

	 
	1.   Incurrence of Indebtedness:  100.0% of the net cash proceeds actually received by the Parent or any of its subsidiaries from the incurrence of indebtedness for borrowed money (including hybrid securities and debt securities convertible to equity) by the Parent or any of its subsidiaries, but excluding: (x) intercompany debt of the Parent or any of its subsidiaries and (y) borrowings permitted pursuant to Sections 9.08(i) (other than increases to the Revolving Commitments (as defined in the Credit Agreement) pursuant to Section 2.01(b) of the Credit Agreement or the borrowing of Incremental Term Loans (as defined in the Credit Agreement) pursuant to Section 2.01(c) of the Credit Agreement), (ii), (v) (other than items (g) and (k) of such Section 9.08(v)), (vi) (so long as, after giving effect to such incurrence, the outstanding principal amount of all such indebtedness incurred after the Acceptance Date does not exceed $200,000,000) and (vii) (in respect of any Accounts Receivable Financings (as defined in the Credit Agreement as in effect on the date hereof)) of the Credit Agreement.

	 
	2.   Equity Offerings:  100.0% of the net cash proceeds actually received from the issuance of any equity securities by the Parent or any of its subsidiaries (other than issuances pursuant to employee stock plans or other benefit or employee incentive arrangements).

	 
	3.   Asset Sales:  Subject to the prior application of such net cash proceeds in accordance with Section 3.02 of the Credit Agreement, 100.0% of the net cash proceeds actually received from asset dispositions, subject to certain exceptions and reinvestment rights (substantially identical to the Credit Agreement).

	 
	All mandatory prepayments and commitment reductions will be applied without penalty or premium (except for breakage costs and accrued interest, if any, and as otherwise provided herein).  Mandatory prepayments of the Bridge Loans may not be reborrowed.

	 
	For the avoidance of doubt, the Bridge Commitments shall be permanently reduced upon the making of the Bridge Loans on the Closing Date.

	IV.   COLLATERAL
	The obligations under the Bridge Facility will be unsecured.

	V.   CERTAIN CONDITIONS

	Conditions to Funding:
	The making of the Bridge Loans will be conditioned upon satisfaction of customary closing conditions, including consummation of the acquisition of the Target substantially concurrent with the funding of the Bridge Loans (the date upon which all such conditions shall be satisfied and the Bridge Loans are funded, the “Closing Date”) on or before the Expiration Date.

	VI. CERTAIN DOCUMENTATION MATTERS
	 

	Bridge Facility Documentation:
	Subject to customary limited conditionality provisions with respect to the acquisition of the Target, and changes to reflect that the Bridge Facility is unsecured, the terms of the Bridge Facility Documentation will be substantially similar to the Credit Agreement and to the existing documentation related thereto (with such additional changes as may be agreed upon by the Borrower and the Administrative Agent).

	 
	 

	 
	 

SCHEDULE I
Interest and Certain Fees

	
		
	Interest Rate Options:
	The Borrower may elect that the Bridge Loans bear interest at a rate per annum equal to (x) the ABR plus the Applicable Margin or (y) the Eurocurrency Rate plus the Applicable Margin;
As used herein:
“ABR” means the highest of (i) the Prime Rate (as defined below), (ii) the federal funds effective rate from time to time plus 0.5% (provided that the federal funds effective rate shall never be less than zero) and (iii) the one-month Eurocurrency Rate plus 1.00%.
“Applicable Margin” means initially, 2.00% in the case of ABR Loans and 3.00% in the case of Eurocurrency Loans; provided that the Applicable Margin shall increase by 0.50% on the date that is 90 days following the Closing Date and by an additional 0.50% at the end of each 90 day period thereafter: 
“Eurocurrency Rate” means the rate (adjusted for statutory reserve requirements for eurocurrency liabilities) as administered by the ICE Benchmark Administration, for deposits in the relevant currency for a period equal to one, two, three, six or (if acceptable to each Lender), twelve months (as selected by the Borrower) appearing on the Reuters Screen LIBOR01 Page or LIBOR02 Page (or an interpolated rate if such screen rates are not available); provided that the Eurocurrency Rate shall never be less than zero.
“Prime Rate” means the rate last quoted by The Wall Street Journal as the “Prime Rate” in the United States or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as reasonably determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as reasonably determined by the Administrative Agent).

	Interest Payment Dates:
	In the case of Loans bearing interest based upon the ABR (“ABR Loans”), quarterly in arrears.
In the case of Loans bearing interest based upon the Eurocurrency Rate (“Eurocurrency Loans”), on the last day of each relevant interest period and, in the case of any interest period longer than three months, on each successive date three months after the first day of such interest period.

	Duration Fee:
	The Parent will pay to each Lender, calculated based on the outstanding amount of such Lender’s Bridge Loans, duration fees as follows: (a) 0.25% of the aggregate principal amount of the Bridge Loans held by such Lender on the date that is 90 days after the Closing Date, (b) 0.25% of the aggregate principal amount of the Bridge Loans held by such Lender on the date that is 180 days after the Closing Date and (c) 0.50% of the aggregate principal amount of the Bridge Loans held by such Lender on the date that is 270 days after the Closing Date (the “Duration Fee”).

	Default Rate:
	At any time when the Borrower is in default in the payment of any amount due under the Bridge Facility, the Bridge Loans shall bear interest at 2% above the rate otherwise applicable thereto.  Overdue interest, fees and other amounts shall bear interest at 2% above the rate applicable to ABR Loans.

	Rate and Fee Basis:

	All per annum rates shall be calculated on the basis of a year of 360 days (or 365/366 days, in the case of ABR Loans the interest rate payable on which is then based on the Prime Rate) for actual days elapsed.

	Unavailability of 
Eurocurrency or Other Rates:
	Substantially the same as the Credit Agreement, with such modifications as may be agreed based on the most recent provisions customarily utilized by the Administrative Agent (which may include provisions for establishing alternate rates of interest in addition to, or instead of, those of the Credit Agreement). 

3pch-ex10e_10.htm

Exhibit (10)(e)

 

 

 

 

 

 

 

 

POTLATCH CORPORATION

DEFERRED COMPENSATION PLAN FOR DIRECTORS II

 

 

Effective January 1, 2005

Amended and Restated Effective May 8, 2014

Further Amended and Restated Effective September 8, 2016

 

 

 

 

 

POTLATCH CORPORATION

DEFERRED COMPENSATION PLAN FOR DIRECTORS II

Effective January 1, 2005

As Amended and Restated Effective May 8, 2014

As Further Amended and Restated Effective September 8, 2016

	
1.
	
Establishment and Purpose.

(a)The Potlatch Corporation Deferred Compensation Plan for Directors II was adopted effective January 1, 2005, by the Board of Directors of Potlatch Corporation, and most recently amended and restated effective May 8, 2014 to provide Directors an opportunity to defer payment of their Director’s Fees and to credit their Deferred Equity-Based Awards.  The Plan is also intended to assist the Company in attracting and retaining persons of outstanding achievement and ability as members of the Board.

(b)The Plan is the successor plan to the Potlatch Corporation Deferred Compensation Plan for Directors (the “Prior Plan”).  Effective December 31, 2004, the Prior Plan was frozen and no new contributions will be made to it; provided, however, that any deferrals of Director’s Fees made under the Prior Plan before January 1, 2005 continue to be governed by the terms and conditions of the Prior Plan as in effect on December 31, 2004 or on the date of any later amendment, provided that such amendment is not a material modification of the Prior Plan under Section 409A.  Deferred Equity-Based Awards are subject to the terms and conditions of this Plan.    

(c)Any deferrals made under the Prior Plan after December 31, 2004 and Deferred Equity-Based Awards made during and after December 2004 are deemed to have been made under the Plan, and all such deferrals are governed by the terms and conditions of the Plan as it may be amended from time to time.

(d)The Plan is intended to comply with the requirements of Section 409A.

 

2

	
2.
	
Definitions.

(a)“Affiliate” means any other entity which would be treated as a single employer with the Company under Section 414(b) or (c) of the Code.

(b)“Beneficiary” means the person or persons designated by the Director to receive payment of the Director’s Deferred Compensation Account and Stock Units in the event of the death of the Director.

(c)“Board” and “Board of Directors” means the board of directors of the Company.

(d)“Code” means the Internal Revenue Code of 1986, as amended.

(e)“Committee” means the Nominating and Corporate Governance Committee of the Board or any other committee of Directors appointed by the Board to administer the Plan.

(f)“Company” means Potlatch Corporation, a Delaware corporation.

(g)“Deferred Compensation Account” means the bookkeeping account established pursuant to section 6 on behalf of each Director who elects to participate in the Plan.

(h)“Deferred Equity-Based Award” means an award made to Directors during and after December 2004 payable on a deferred basis in the form of Stock Units under the Plan and without regard to a Director’s election to participate and defer Director’s Fees under the Plan.

(i)“Director” means a member of the Board who is not an employee of the Company or any subsidiary thereof.

(j)“Director’s Fees” means the amount of compensation paid by the Company to a Director for his or her services as a Director, including an annual retainer and any amount payable for attendance at a Board meeting or any Board committee meeting.  “Director’s Fees” shall not include Deferred Equity-Based Awards, or any reimbursement by the Company of expenses incurred by a Director incidental to attendance at a Board meeting or a Board committee meeting or of any other expense incurred on behalf of the Company.

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(k)A Director shall be considered “Disabled” if the Director is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve months. 

(l)“Distribution” means the distribution by the Company to its stockholders of all of the outstanding shares of the common stock of Clearwater Paper Corporation then owned by the Company, pursuant to the Separation and Distribution Agreement between the Company and Clearwater Paper Corporation. 

(m)“Dividend Equivalent” means an amount equal to the cash dividend paid on an outstanding share of the Company’s common stock.  Dividend Equivalents shall be credited to Stock Units as if each Stock Unit were an outstanding share of the Company’s common stock, except that Dividend Equivalents shall also be credited to fractional Stock Units.

(n)“Plan” means the Potlatch Corporation Deferred Compensation Plan for Directors II.

(o)“Prior Plan” means the Potlatch Corporation Deferred Compensation Plan for Directors.

(p)“Section 409A” means Section 409A of the Code, including regulations and guidance promulgated thereunder

(q)“Separation from Service” means termination of a Director’s service as a non-employee member of the Board consistent with the requirements of Section 409A.  The Plan is intended to be a Plan provided to Directors, and in accordance with applicable regulations, a Director shall be treated as having Separation from Service for purposes of this Plan on the later of the date that the Director ceases to serve on the Board of Directors of the Company or an Affiliate and the Director is not an independent contractor to the Company or an Affiliate.  Continued service as an employee of the Company or an Affiliate shall not affect whether a Director has incurred a Separation from Service under the Plan.

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(r)“Stock Units” means, unless the context clearly indicates otherwise, the deferred portion of Director’s Fees converted into units denominated in shares of the Company’s common stock, and Deferred Equity-Based Awards credited as units denominated in shares of the Company’s common stock.

(s)“Value” means the closing price of the Company’s common stock as reported in the New York Stock Exchange, Inc., composite transactions reports for the Valuation Date.

(t)“Valuation Date” means, for the purpose of Section 6 or 7, the date on which Director’s Fees or Dividend Equivalents are converted into Stock Units pursuant to Section 6 or 7 and, for purposes of Section 8, the last trading day of the month preceding the month in which Stock Units are paid under Section 8.

(u)“Year” shall mean the calendar year.

	
3.
	
Eligibility.

Each Director who receives Director’s Fees for service on the Board shall be eligible to participate in the Plan.  A Director who receives a Deferred Equity-Based Award credited under the Plan shall participate in the Plan.

	
4.
	
Participation FOR DIRECTOR’S FEES.

In order to participate in the Plan with respect to Director’s Fees for a particular Year, a Director must file a deferral election with the Secretary of the Company prior to January 1 of such Year; provided, however, that in the case of a newly elected or appointed Director an election to participate shall be effective for the Year in which the Director is first elected or appointed if it is filed no later than thirty (30) days following the date of the Director’s election or appointment to the Board.  Any initial election filed by a newly elected or appointed Director shall apply only to Director’s Fees earned after the effective date of the election.  A new Director who does not elect to make deferrals of Director’s Fees during the initial thirty (30)-day election period may not later elect to make deferrals of Director’s Fees for the calendar year of his or her initial eligibility.  If a payment of Director’s Fees (such as annual retainer fees or fees for serving as Chairman of a Committee) are due for services performed over a period of time which 

5

includes the period both before and the period after the date of the election, the election will apply to an amount equal to the total amount of the Director’s Fee paid for such performance period multiplied by the ratio of the number of days remaining in the performance period after the election over the total number of days in the performance period.  

	
5.
	
Deferral Election.

A Director who elects to participate in the deferral of Director’s Fees under the Plan shall file a deferral election on a form, which shall indicate:

(a)The amount or percentage of Director’s Fees that such Director elects to defer pursuant to the terms of the Plan.  This election shall apply to amounts deferred under the Plan until modified by the Director.  The Director shall notify the Secretary of the Company in writing of any such modification, which shall apply solely to amounts deferred with respect to Years following the Year in which the modification is made;

(b)The Year in which payment of the Director’s Deferred Compensation Account and/or Stock Units attributable to the deferral of Director’s Fees shall commence; provided however, that payments shall commence no later than the Year following the Year in which the Director attains age seventy-two (72) and, in the case of Stock Unit payments, to the extent that Committee reasonably determines that earlier payment would result in a violation of Federal securities laws, payment shall be made no earlier than six (6) months after the last date on which Director’s Fees have been converted into Stock Units on behalf of the Director (except in the case of payments made following the Director’s death, Disability or Separation from Service);

(c)Whether the payment of such Director’s Deferred Compensation Account and/or Stock Units attributable to the deferral of Director’s Fees is to be made in a single lump sum or in a series of approximately equal installments over a period of years specified by the Director (but in no event more than fifteen (15) years).  For purposes of the Plan, installment payments shall be treated as a single distribution under Section 409A;

(d)Whether the percentage deferral election shall be effective only with respect to Director’s Fees paid for the Year in which the Director’s participation in the Plan is to commence as determined pursuant to Section 4 above or shall apply with respect to Director’s 

6

Fees paid for that Year and all subsequent Years until revoked or modified by the Director, it being intended that a Director shall have only one (1) election in effect with respect to the Year  during which payment is to commence and the form of the payment for all amounts deferred under the Plan.  Notwithstanding the preceding intention that a Director have only one (1) election in effect with respect to the time and form of payment, (i) any elections in effect as of January 1, 2008, shall remain in effect unless changed in accordance with the terms of Sections 5(f) or (g) of the Plan and (ii) a Director whose existing election provides for benefits to commence in the next Year or who has already begun receiving payments, may elect a new time and form of payment for amounts to be deferred in subsequent Years.  Changes to the Year of commencement and form of payment may be made only in accordance with the rules of Sections 5(f) or (g), below.  The Director shall notify the Secretary of the Company in writing of any such revocation or modification of a deferral election or permitted new election with respect to the time or form of payment, which elections shall apply solely to amounts deferred with respect to Years following the Year in which the revocation, modification or new payment election is made; and

(e)The percentage of the Director’s Fees deferred pursuant to the election, which is to be converted into Stock Units.  This election shall apply to the Year in which the Director’s participation in the Plan commences and to all subsequent Years until modified by the Director.  The Director shall notify the Secretary of the Company in writing of any such modification, which shall apply solely to amounts deferred with respect to years following the Year in which the modification is made.

(f)Notwithstanding any provision herein to the contrary, a Director or former Director may revoke a previous election and make a new election as to the time and form of distribution under the Plan.  Such new election shall take effect twelve (12) months after it is filed with the Secretary of the Company and shall apply only to that portion of the Director’s or former Director’s Deferred Compensation Account and/or Stock Units scheduled to be paid more than twelve (12) months after the date the election is filed with the Secretary of the Company; provided, however, that the newly scheduled distribution date must be at least five (5) years later than the originally scheduled distribution date.

7

(g)Directors may make a special distribution election to change the time and form of the distribution of their Deferred Compensation Accounts and/or Stock Units attributable to deferred Director’s Fees, provided that the distribution election is made at least twelve (12) months in advance of the newly elected distribution date and the previously scheduled distribution date and the election is made no later than December 31, 2008. No election under this Section 5(g) shall (i) change the payment date of any distribution otherwise scheduled to be paid in 2008 or cause a payment to be paid in 2008, or (ii) be permitted after December 31, 2008.

	
6.
	
Treatment of Deferred Accounts.

(a)Upon receipt of a duly filed deferral election, the Company shall establish a Deferred Compensation Account to which shall be credited an amount equal to that portion of the Director’s Fees which would have been payable currently to the participating Director but for the terms of the deferral election and which is not converted into Stock Units.  If the deferral election includes an election to convert a percentage of the Director’s Fees deferred pursuant to the election into Stock Units, the number of full and fractional Stock Units shall be determined by dividing the amount subject to such an election by the Value of the Company’s common stock on the Valuation Date.  For the avoidance of doubt, a Director may not elect a transfer of credits between the Director’s Deferred Compensation Account and Stock Units.

Director’s Fees shall be credited to Director’s Deferred Compensation Account or converted into Stock Units on a quarterly basis as follows:

(i)The deferred portion of one-fourth of the annual retainer fee (other than the portion to be credited to Stock Units) shall be credited to a Director’s Deferred Compensation Account as of the first day of each calendar quarter; 

(ii)The deferred portion of the fee for any meeting of the Board or any committee thereof (other than the portion to be credited to Stock Units) shall be credited to a Director’s Deferred Compensation Account as of the first day of the month following the date of such meeting; 

8

(iii)The deferred portion of one-fourth of the annual retainer fee which is to be credited as Stock Units shall be credited as Stock Units as of the first trading day of the calendar quarter; and

(iv)The deferred portion of the fees for any meetings of the Board or any committee thereof which are to be credited as Stock Units shall be accumulated in the Participant’s Deferred Compensation Account and credited as Stock Units on the first trading day of the next calendar quarter.

(b)Upon receipt of a Deferred Equity-Based Award by a Director, the Company shall credit the Director with a number of full and fractional Stock Units as of the date of grant of the award or such other date as provided under the terms of the award.

(c)The Company shall maintain separate recordkeeping accounts for Stock Units attributable to the deferral of Director’s Fees and for Stock Units attributable to Deferred Equity-Based Awards.

	
7.
	
Treatment of Deferred Compensation Account and Stock Units During Deferral Period.

(a)Deferred Compensation Account.  Interest shall be credited on the balance of each participating Director’s Deferred Compensation Account commencing with the date as of which any amount is credited to the Deferred Compensation Account and continuing up to the last day of the quarter preceding the month in which payment of the amounts deferred pursuant to the Plan is made.  Such interest shall become a part of the Deferred Compensation Account and shall be paid at the same time or times as the balance of the Deferred Compensation Account.  For periods prior to July 1, 2008, such interest for each calendar quarter during the deferral period shall be computed at seventy percent (70%) of the higher of the following averages:  (i) the prime rate charged by the major commercial banks as of the first business day of each calendar month (as reported in an official publication of the Federal Reserve System), or (ii) the average monthly long-term rate of A rated corporate bonds (as published in Moody’s Bond Record).  For periods on and after July 1, 2008, interest shall be credited at one-hundred twenty percent 

9

(120%) of the long-term applicable federal rate, with quarterly compounding, as published under Section 1274(d) of the Code for the first month of the calendar quarter.  

(b)Stock Units.  Dividend Equivalents shall be credited with respect to each Stock Unit credited to a Director on each dividend record date.  Such Dividend Equivalents shall themselves be converted into Stock Units as of the dividend payment by dividing the amount of the Dividend Equivalents by the Value of the Company’s common stock as of the dividend payment date.  Dividend Equivalents shall be credited on Stock Units attributable to a deferral of Director’s Fees and, except as otherwise provided by the terms of a Deferred Equity-Based Award, Stock Units attributable to Deferred Equity-Based Awards.

(c)Effect of Certain Transactions.  In the event that there occurs a dividend or other distribution of shares of the Company’s common stock, a dividend in the form of cash or other property that materially affects the fair market value of such shares, a stock split, a reverse stock split, a split-up, a split-off, a spin-off, a combination or subdivision of such shares or other securities of the Company, an exchange of such shares for other securities of the Company, or a similar transaction or event that materially affects the fair market value of such shares, the Committee, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, shall make appropriate adjustments in the number of each Director’s Stock Units determined as of the date of such occurrence.

	
8.
	
Form and Time of Payment of Deferred Compensation Account.

Payment of a participating Director’s Deferred Compensation Account shall be made or commence to be made in cash prior to January 31 in each year in which a payment is to be made in accordance with the Director’s deferral election.  Payment of a Director’s Stock Units attributable to a deferral of Director’s Fees shall also be made at such time except that, if the applicable January 31 occurs within the six (6)-month period beginning on the last date on which Director’s Fees have been converted into Stock Units on behalf of the Director and to the extent the Committee reasonably determines that earlier payment would result in a violation of Federal securities laws, then payment of the Director’s Stock Units shall be made on the last day of the month in which such six (6)-month period expires.  Notwithstanding the previous sentence, Stock Unit payments shall be made following the Director’s death, Disability or the date the 

10

Director Separates from Service, without regard to whether such six (6)-month period has expired.  A Director shall continue to be credited with Dividend Equivalents during any such delay in payment.  For the purpose of payment, Stock Units shall be paid in whole shares of the Company’s common stock corresponding to the Value on the applicable Valuation Date, with any fractional shares payable in cash; provided, however, that any payment based on a Separation from Service prior to May 8, 2014 is subject to the terms of the Plan then in effect.

In the case of a Director who has both a Deferred Compensation Account and Stock Units, if a partial distribution of a deferred portion of Director’s Fees is to be made and if the Director’s Stock Units are immediately payable in accordance with the previous paragraph, payment shall be made partially from the Director’s Deferred Compensation Account and partially from Stock Units, in proportion to the relative size of the Deferred Compensation Account and the Stock Units.  If the Director’s Stock Units are not immediately payable in accordance with the previous paragraph, the partial payment shall be made entirely from the Director’s Deferred Compensation Account.

Except as otherwise provided by the terms of a Deferred Equity-Based Award, payment of a Director’s Stock Units attributable to Deferred Equity-Based Awards shall be made in a single lump sum not later than the last day of the month beginning after the date of the Director’s Separation from Service and Stock Units attributable to Deferred Equity-Based Awards shall be paid in whole shares of the Company’s common stock as determined on the applicable Valuation Date, with any fractional shares payable in cash; provided, however, that any payment based on a Separation from Service prior to May 8, 2014 is subject to the terms of the Plan then in effect.

Notwithstanding any other provision of the Plan to the contrary:

(a)No distribution shall be made from the Plan that would constitute an impermissible acceleration of payment as defined in Section 409A(a)(3) and regulations promulgated thereunder; and

(b)To the extent Section 409A(a)(2)(B), which applies to certain “specified employees,” is applicable to distributions to Directors under the Plan, no payment shall be made by reason of a Separation from Service before the date which, is six (6) months and one day 

11

following the Director’s Separation from Service or the Director’s death, if earlier.  Any payments which would otherwise have been payable to a Director during the period of delay shall be made in a lump sum following the end of such delay.  A Director’s Accounts shall continue to be credited with interest and Dividend Equivalents during the period of such delay. 

	
9.
	
Effect of Death of Participant.

Upon the death of a participating Director, all amounts, if any, remaining in his or her Deferred Compensation Account and all Stock Units shall be distributed to the Beneficiary designated by the Director.  Such distribution with respect to deferred Director’s Fees shall be made at the time or times specified in the Director’s deferral election.  If the designated Beneficiary does not survive the Director or dies before receiving payment in full of the Director’s Deferred Compensation Account and Stock Units, payment shall be made to the estate of the last to die of the Director or the designated Beneficiary.

	
10.
	
Participant’s Rights Unsecured.

The interest under the Plan of any participating Director and such Director’s right to receive a distribution of his or her Deferred Compensation Account and Stock Units shall be an unsecured claim against the general assets of the Company.  The Deferred Compensation Account and Stock Units shall be bookkeeping entries only and no Director shall have an interest in or claim against any specific asset of the Company pursuant to the Plan.

	
11.
	
Statement of Deferred Compensation Account and Stock Units.

The Secretary of the Corporation shall provide an annual statement of each participating Director’s Deferred Compensation Account and Stock Units as soon as practicable after the end of each calendar year.

	
12.
	
NonassignabilitY of Interests.

The interest and property rights of any participating Director under the Plan shall not be subject to option nor be assignable either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any act in violation of this Section 12 shall be void.

12

	
13.
	
Administration of the Plan.

The Plan shall be administered by the Committee.  In addition to the powers and duties otherwise set forth in the Plan, the Committee shall have full power and authority to administer and interpret the Plan, to establish procedures for administering the Plan and to take any and all necessary action in connection therewith.  The Committee’s interpretation and construction of the Plan shall be conclusive and binding on all persons.

	
14.
	
Amendment or Termination of the Plan.

(a)The Board may amend, suspend or terminate the Plan at any time.  The foregoing notwithstanding, the Plan may not be amended (including any amendment to this Section 14) or terminated by the Board if such amendment or termination would alter the provisions of this Section 14 or adversely affect or impair the Director’s rights to receive payment with respect to the Director’s Deferred Compensation Account or Stock Units.

(b)Except as provided in Section 14(c) or as otherwise permitted under Section 409A, in the event of termination of the Plan, the Directors’ Deferred Compensation Accounts and Stock Units may, in the Board’s discretion, be distributed within the period beginning twelve (12) months after the date the Plan was terminated and ending twenty-four (24) months after the date the Plan was terminated, or pursuant to Section 8, if earlier.  If the Plan is terminated and Deferred Compensation Accounts and Stock Units are distributed, the Board shall terminate all account balance non-qualified deferred compensation plans with respect to all Directors and shall not adopt a new account balance non-qualified deferred compensation plan for at least three (3) years after the date the Plan was terminated.  A termination and liquidation of the Plan under this Section 14(b) shall be made only in compliance with Treasury Regulation Section 1.409A-3(j)(4)(ix)(c).

(c)The Board may terminate the Plan upon a corporate dissolution of the Company that is taxed under Section 331 of the Code or with the approval of a bankruptcy court pursuant to 11 U.S.C. Section 503(b)(1)(A), provided that the Directors’ Deferred Compensation Accounts and Stock Units are distributed and included in the gross income of the Directors by 

13

the latest of (i) the Year in which the Plan terminates or (ii) the first Year in which payment of the Deferred Compensation Accounts and Stock Units is administratively practicable.

	
15.
	
governmental regulation.

The Company's obligation to deliver shares of the Company’s common stock with respect to the Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance, or sale of such shares.  The Company shall not be required to issue shares of the Company’s common stock with respect to the Plan and the issuance and delivery of such shares with respect to the Plan shall comply with all the applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which such shares may then be listed.

	
16.
	
SUCCESSORS AND ASSIGNS.

The Plan shall be binding upon the Company, its successors and assigns, and any parent corporation of the Company’s successors or assigns.  Notwithstanding that the Plan may be binding upon a successor or assign by operation of law, the Company shall require any successor or assign to expressly assume and agree to be bound by the Plan in the same manner and to the same extent that the Company would be if no succession or assignment had taken place.

	
17.
	
CHOICE OF LAW AND VENUE.

The Plan and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed by the laws of the United States, shall be governed by the laws of the State of Washington without giving effect to principles of conflicts of law.  Participating Directors irrevocably consent to the nonexclusive jurisdiction and venue of the state and federal courts located in the State of Washington.

14

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