Document:

Exhibit

Execution Version

INCREMENTAL FACILITY AMENDMENT TO CREDIT AGREEMENT, dated as of July 19, 2018 (this “Amendment”), is made and entered into by and among Clean Harbors, Inc., a Massachusetts corporation (the “Borrower”), each of the entities listed as an Incremental Lender on the signature pages hereto (each, an “Incremental Lender” and, collectively, the “Incremental Lenders”), Goldman Sachs Lending Partners LLC, as administrative agent and collateral agent (in such capacity, the “Agent”) and the other Loan Parties as of the date hereof.
RECITALS: 
WHEREAS, reference is made to the Credit Agreement dated as of June 30, 2017 (as amended by the First Amendment, dated as of April 17, 2018 and as further amended, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), by and among the Borrower, the other Loan Parties, the lenders from time to time party thereto and the Agent;  
WHEREAS, it is intended that the Borrower will (a) obtain the Incremental Term Loans (as defined below) in the form of New Term Loans (as defined in the Credit Agreement) pursuant to Section 2.19 of the Credit Agreement and (b) use the proceeds of the borrowings under the Incremental Term Loans, together with proceeds from drawings under the ABL Facility and/or cash on hand, to (i) repurchase and/or redeem (the “Incremental Amendment Refinancing”) all of the $400,000,000 currently outstanding aggregate principal amount of the Borrower’s 5.25% Senior Notes due 2020 (the “2020 Senior Notes”) and (ii) pay fees and expenses incurred in connection with the foregoing (the transactions described in this paragraph, collectively, the “Transactions”);
WHEREAS, subject to the terms and conditions of the Credit Agreement, and pursuant to Section 2.19 of the Credit Agreement, the Borrower has requested that (a) the Incremental Lenders provide additional Initial Term Loans (each an “Incremental Term Loan”) in an aggregate principal amount of $350,000,000 and (b) the Credit Agreement be amended in the manner provided for herein; and
WHEREAS, the Incremental Lenders are willing to provide the Incremental Term Loans to the Borrower on the Incremental Amendment Effective Date (as defined below), and the parties hereto wish to amend the Credit Agreement on the terms and subject to the conditions set forth herein and in the Credit Agreement.
NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows:
SECTION 1.Defined Terms; Interpretation; Etc.  Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Credit Agreement.  This Amendment constitutes an amendment to the Credit Agreement pursuant to Section 2.19(f) and a “Loan Document”, as defined in the Credit Agreement. 
SECTION 2.Incremental Loans.  (a)  Each Incremental Lender hereby agrees, severally and not jointly, to make an Incremental Term Loan to the Borrower on the Incremental Amendment Effective Date in Dollars in an aggregate principal amount equal to the amount set forth opposite such Incremental Lender’s name on Schedule I attached hereto (each, an “Incremental Term Commitment” and, collectively, the “Incremental Term Commitments”), on the terms set forth herein and in the Credit Agreement (as amended hereby), and subject to the conditions set forth herein.  The Incremental Term Loans shall be deemed to be “Initial Term Loans” and “Term Loans” as defined in the Credit Agreement (as amended hereby) for all 

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purposes of the Loan Documents having terms and provisions identical to those applicable to the Initial Term Loans outstanding immediately prior to the Incremental Amendment Effective Date (the “Existing Term Loans”).
(b)  The Incremental Term Loans shall be made as a single borrowing, with an initial Interest Period that commences on the Incremental Amendment Effective Date and ends on the last day of the Interest Period applicable to the Existing Term Loans on the Incremental Amendment Effective Date. During such initial Interest Period, the Eurocurrency Rate applicable to the Incremental Term Loans shall be the same Eurocurrency Rate applicable for the Existing Term Loans as of the Incremental Amendment Effective Date.  Notwithstanding anything to the contrary contained herein or in the Credit Agreement, from and after the Incremental Amendment Effective Date, the Existing Term Loans and the Incremental Term Loans shall constitute a single Class and a single borrowing of Initial Term Loans for all purposes under the Credit Agreement (as amended hereby).
(c)  Unless previously terminated, the commitments of the Incremental Lenders pursuant to Section 2(a) shall terminate upon the making of the Incremental Term Loans on the Incremental Amendment Effective Date.
(d)  Each Incremental Lender (i) confirms that a copy of the Credit Agreement and the other applicable Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Amendment and make an Incremental Term Loan, have been made available to such Incremental Lender; (ii) agrees that it will, independently and without reliance upon the Agent, Goldman Sachs Lending Partners LLC (“Goldman Sachs”), Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”), JPMorgan Chase Bank, N.A. (“JPMorgan”; provided JPMorgan may perform its responsibilities in such capacity through its affiliate J.P. Morgan Securities LLC), SunTrust Robinson Humphrey, Inc. (“STRH”, together with Goldman Sachs, MLPFS and JPMorgan, each in its capacity as a joint lead arranger and bookrunner with respect to this Amendment, the “Incremental Amendment Lead Arrangers”), Citizens Bank, N.A. (“Citizens”), Stifel, Nicolaus & Company, Incorporated (“Stifel”), KeyBanc Capital Markets Inc. (“KeyBanc”), Macquarie Capital (USA) Inc. (“Macquarie”), Needham & Company, LLC (“Needham”), Oppenheimer & Co. Inc. (“Oppenheimer”), Raymond James & Associates (“Raymond James”) and Robert W. Baird & Co. Incorporated (“Baird” and collectively with Citizens, Stifel, KeyBanc, Macquarie, Needham, Oppenheimer and Raymond James, each in its capacity as a co-manager with respect to this Amendment the “Incremental Amendment Co-Managers”; the Incremental Amendment Co-Managers, together with the Incremental Amendment Lead Arrangers, the “Incremental Amendment Arrangers”), or any other Lender or agent 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 Credit Agreement or the other applicable Loan Documents, including this Amendment; (iii) appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Agent by the terms thereof, together with such powers as are reasonably incidental thereto; and (iv) acknowledges and agrees that upon the Incremental Amendment Effective Date such Incremental Lender shall be a “Lender”, “Initial Term Lender” and an “New Term Loan Lender” under, and for all purposes of, the Credit Agreement and the other Loan Documents, and shall be subject to and bound by the terms thereof, and shall perform all the obligations of and shall have all rights of a Lender and an Incremental Term Lender thereunder.  
SECTION 3.Amortization of Term Loans.     The Borrower hereby agrees that effective as of the Incremental Amendment Effective Date, the Initial Term Loans (including the Existing Term Loans and the Incremental Term Loans) shall amortize as set forth on Schedule II hereto, and the amount of each 

        
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payment of principal in respect of Initial Term Loans pursuant to Section 2.06 of the Credit Agreement shall, in lieu of the applicable amount set forth therein, be in the applicable amount set forth on Schedule II hereto (as adjusted from time to time in accordance with the terms of Section 2.06 of the Credit Agreement (as amended hereby)).
SECTION 4.Amendments to Credit Agreement.
(a)Section 1.01 of the Credit Agreement is hereby amended by adding the following definitions in proper alphabetical sequence:
“Incremental Facility Amendment” means, that certain Incremental Facility Amendment to Credit Agreement dated as of July 19, 2018 among the Borrower, the other Loan Parties thereto, the Agent and the Lenders party thereto.
“Incremental Amendment Effective Date” means, the date on which the conditions precedent set forth in Section 5 of the Incremental Facility Amendment were satisfied or waived in accordance therewith.
“Incremental Term Commitments” means the New Term Commitments made on the Incremental Amendment Effective Date pursuant to the Incremental Facility Amendment.
“Incremental Term Loans” means the New Term Loans made on the Incremental Amendment Effective Date pursuant to the Incremental Facility Amendment.
(b)    The following defined terms in Section 1.01 of the Credit Agreement are hereby amended and restated in their entirety to read as follows:
“Initial Term Commitment” means with respect to each Initial Term Lender, the commitment of such Initial Term Lender to make Initial Term Loans in the aggregate principal amount set forth opposite such Initial Term Lender’s name on the Commitments Schedule under the heading “Initial Term Commitments” or on Schedule I to the Incremental Facility Amendment, as applicable.  
“Initial Term Loan” has the meaning assigned to such term in Section 2.01; provided that, on and after the Incremental Amendment Effective Date, Initial Term Loans shall include the Incremental Term Loans incurred under the Incremental Facility Amendment.  The aggregate principal amount of Initial Term Loans after giving effect to the transactions contemplated by the Incremental Facility Amendment and the Incremental Term Loans incurred and funded on the Incremental Amendment Effective Date is $746,000,000. 
“(c)    The following defined terms in Section 1.01 of the Credit Agreement are hereby amended as follows:
(i)The defined term “Class” is hereby amended to add the following sentence after the last sentence thereof:
“For the avoidance of doubt, the Incremental Term Loans incurred under the Incremental Facility Amendment shall constitute the same Class with the Initial Term Loans, and the Incremental Term Commitments under the Incremental Facility Amendment shall constitute an “Initial Term Commitment”.”

        
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(ii)The defined term “Initial Term Lender” is hereby amended to add the following sentence after the last sentence thereof:
“For the avoidance of doubt, each Lender making an Incremental Term Loan pursuant to the Incremental Facility Amendment shall constitute an “Initial Term Lender” hereunder.” 
(iii)    The defined term “Lender” is hereby amended to add the following sentence after the last sentence thereof:
“For the avoidance of doubt, each Lender making an Incremental Term Loan pursuant to the Incremental Facility Amendment shall constitute a “Lender” hereunder and, after the Incremental Amendment Effective Date, the Agent shall update and/or modify the Register to give effect to the Incremental Amendment Effective Date and the transactions contemplated by the Incremental Facility Amendment.” 
(d)    Section 2.08(c) of the Credit Agreement is hereby amended by deleting the words “First Amendment Effective Date” and replacing them with the words “Incremental Amendment Effective Date”.
(e)    Section 2.19(d) of the Credit Agreement is hereby amended by deleting the words “Closing Date” and replacing them with the words “Incremental Amendment Effective Date”.
SECTION 5.Conditions Precedent to Incremental Loans.  This Amendment, and each Incremental Lender’s obligation to provide the Incremental Term Loans pursuant to this Amendment, shall become effective as of the date on which the following conditions precedent are satisfied (such date, the “Incremental Amendment Effective Date”):
(a)The Agent shall have received from the Borrower, each other Loan Party and each Incremental Lender either (i) a counterpart of this Amendment duly executed and delivered on behalf of such party or (ii) written evidence satisfactory to the Agent (which may include facsimile or other electronic transmission of a signed counterpart of this Amendment) that such party has duly executed and delivered a counterpart of this Amendment.
(b)The Agent shall have received a favorable written opinion (in each case, addressed to the Agent and the Lenders (including, without limitation, the Incremental Lenders) and dated the Incremental Amendment Effective Date) of (i) Davis, Malm & D’Agostine, P.C., counsel for the Loan Parties, (ii) Herrick Feinstein LLP, New York counsel for the Loan Parties and (iii) Terschan, Steinle, Hodan & Ganzer LTD, Wisconsin counsel for the Loan Parties.  
(c)The Agent shall have received a customary certificate from the chief financial officer of the Borrower certifying that the Borrower and its Subsidiaries, on a consolidated basis on the Incremental Amendment Effective Date after giving effect to the Incremental Facility Amendment and the incurrence of the Incremental Term Loans (and the use of proceeds therefrom), are solvent (within the meaning of Section 3.15(a) of the Credit Agreement).
(d)The Agent shall have received (i) a certificate of each Loan Party, dated the Incremental Amendment Effective Date and executed by its Secretary, Assistant Secretary or director, which shall (A) certify the resolutions of its Board of Directors, members or other body authorizing the execution, delivery and performance of this Amendment (and any agreements relating thereto) to which it is a party, (B) identify by name and title and bear the signatures of the other officers of such Loan Party authorized to sign the Amendment (and any agreements relating thereto) to which 

        
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it is a party, (C) either (1) contain appropriate attachments, including the certificate or articles of incorporation or organization of each such Loan Party (and in the case of any such Loan Party, certified by the relevant authority of the jurisdiction of organization of such Loan Party), and a true and correct copy of its by-laws, memorandum and articles of incorporation or operating, management, partnership or equivalent agreement to the extent applicable, in each case, certified as of a recent date or (2) include a written certification by such Loan Party’s secretary, assistant secretary or other Responsible Officer that such Loan Party’s certificate or articles of incorporation or organization or other applicable constitutive documents most recently certified and delivered to the Agent prior to the Incremental Amendment Effective Date pursuant to the Loan Documents remain in full force and effect on the Incremental Amendment Effective Date without modification or amendment since such original delivery and (D) either (1) attach copies of all consents, licenses and approvals required in connection with the consummation by such Loan Party of the Incremental Facility Amendment and certify that such consents, licenses and approvals are in full force and effect, or (2) state that no such consents, licenses or approvals are so required and (ii) a good standing certificate for each Loan Party from the applicable governmental authority of its jurisdiction of incorporation.
(e)The Agent shall have received for each Incremental Lender that shall have requested a promissory note, a duly completed and executed promissory note for such Incremental Lender.
(f)All reasonable and documented or invoiced out-of-pocket costs and expenses (including the reasonable fees, charges and disbursements of Cahill Gordon & Reindel LLP, as counsel to the Agent and the Incremental Lenders) of the Agent and the Incremental Amendment Arrangers incurred in connection with the transactions contemplated hereby for which invoices have been presented at least one (1) Business Day prior to the Incremental Amendment Effective Date shall have been paid.
(g)The fees previously agreed to be paid by the Borrower on the Incremental Amendment Effective Date to the Incremental Amendment Arrangers shall have been paid.
(h)The Agent, the Incremental Amendment Arrangers and Incremental Lenders shall have received all documentation and other information reasonably requested by them at least three (3) Business Days prior to the Incremental Amendment Effective Date that is required to be obtained or maintained by them by regulatory authorities under applicable “know your customer” and anti-money laundering or terrorist financing rules and regulations, including the USA PATRIOT Act.
(i)The Agent shall have received a Borrowing Request with respect to the Incremental Term Loans in accordance with the requirements of Section 2.02 of the Credit Agreement.
(j)Upon the effectiveness of this Amendment and both immediately before and immediately after giving effect to this Amendment, and the making of the Incremental Term Loans on the Incremental Amendment Effective Date and the application of the proceeds thereof as contemplated by this Amendment, no Default or Event of Default shall have occurred and be continuing.
(k)Upon the effectiveness of this Amendment and both immediately before and immediately after giving effect to this Amendment, and the making of the Incremental Term 

        
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Loans on the Incremental Amendment Effective Date and the application of the proceeds thereof as contemplated by this Amendment, the representations and warranties set forth in Article III of the Credit Agreement and in the other Loan Documents and Section 7 of this Amendment shall be true and correct in all material respects with the same effect as though made on and as of the Incremental Amendment Effective Date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date; provided that any representation or warranty that is qualified as to materiality or “Material Adverse Effect” shall be true and correct in all respects after giving effect to any such qualification as to materiality or “Material Adverse Effect”.
(l)The Agent shall have received the results of recent lien and judgment searches in each of the jurisdictions reasonably requested by it.  
(m)At least five days prior to the Incremental Amendment Effective Date, to the extent the Borrower qualifies as a “legal entity customer” under 31 C.F.R. § 1010.230 (the “Beneficial Ownership Regulation”) shall deliver a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation (the “Beneficial Ownership Certification”) in relation to the Borrower.
(n)The Agent and the Incremental Lenders shall have received a certificate from a Responsible Officer of the Borrower dated the Incremental Amendment Effective Date certifying that the conditions set forth in clauses (j) and (k) of this Section 5 have been satisfied.
(o)The Agent shall be reasonably satisfied with the arrangements to consummate the Incremental Amendment Refinancing, including, without limitation, (i) the repurchase through a tender offer on the Incremental Amendment Effective Date of up to all of the currently outstanding 2020 Senior Notes and (ii) the delivery on the Incremental Amendment Effective Date to the trustee under the indenture for the 2020 Senior Notes of an irrevocable notice of redemption in respect of any remaining 2020 Senior Notes.
(p)Each Incremental Lender shall have received an upfront fee equal to 0.50% of the aggregate principal amount of Incremental Term Loans funded by such Incremental Lender on the Incremental Amendment Effective Date. The Administrative Agent may net such upfront fees against the proceeds of the Incremental Term Loans to the Borrower.
(q)The Agent shall have received a “Life-of-Loan” flood hazard determination for each real property encumbered by a Mortgage and, for any Mortgaged Property on which improvements are located in a special flood hazard area, (i) a notice about special flood hazard area status and flood disaster assistance duly executed by the Borrower and (ii) evidence of insurance required by Section 5.10(b) of the Credit Agreement.
The Agent shall notify the Borrower and the Lenders of the Incremental Amendment Effective Date, and such notice shall be conclusive and binding. 
SECTION 6.Post-Closing Requirements.   Within ninety (90) days after the Incremental Amendment Effective Date, unless waived or extended by the Agent in its sole discretion, with respect to each real property encumbered by a Mortgage, the Agent shall have received the following, in each case in form and substance reasonably acceptable to the Agent:

        
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(a)Written confirmation (which may be in the form of email correspondence) provided to the Agent from local counsel in the jurisdiction in which the real property encumbered by a Mortgage is located substantially to the effect that:
(i)the recording of the existing Mortgage is the only filing or recording necessary to give constructive notice to third parties of the lien created by such Mortgage as security for the Secured Obligations, including the Secured Obligations evidenced by this Amendment, and the other documents executed in connection therewith, for the benefit of the Secured Parties; and
(ii)no other documents, instruments, filings, recordings, re-recordings, re-filings or other actions, including, without limitation, the payment of any mortgage recording taxes or similar taxes, are necessary or appropriate under applicable law in order to maintain the continued enforceability, validity or priority of the Lien created by such Mortgage as security for the Secured Obligations, including the Secured Obligations evidenced by this Amendment, and the other documents executed in connection therewith, for the benefit of the Secured Parties; or
(b)such other documentation as shall confirm the enforceability, validity, perfection and priority of the lien of the Mortgage in favor of the Secured Parties, including, if reasonably determined to be necessary or advisable by the Agent:
(i)an amendment to the existing Mortgage (the “Mortgage Amendment”) to reflect the matters set forth in this Amendment, duly executed and acknowledged by the applicable Loan Party, and in form for recording in the recording office where such Mortgage was recorded, together with such certificates, affidavits, questionnaires or returns as shall be required in connection with the recording or filing thereof under applicable law; 
(ii)a favorable opinion or opinions, addressed to the Agent and the Secured Parties covering, among other things, the enforceability, due authorization, execution and delivery of the applicable Mortgage, as amended by the Mortgage Amendment; 
(iii)a date down endorsement to the existing title policy (or other title product where a date down endorsement is not available in the applicable jurisdiction), which shall reasonably assure the Agent as of the date of such endorsement (or as of the date of such other title product) that the real property subject to the lien of such Mortgage, as amended by the Mortgage Amendment, is free and clear of all title defects and encumbrances except for Permitted Liens; 
(iv)evidence of payment by the Borrower of all search and examination charges, escrow charges and related charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of the Mortgage Amendment referred to above; and
(v)such affidavits, certificates, information and instruments of indemnification as shall be required, and evidence of payment of all title insurance premiums and other charges, to induce the title insurance company to issue the endorsement to the title policy (or other title product) contemplated in this Section 6(b).
SECTION 7.Representations and Warranties.  In order to induce the Incremental Lenders and the Agent to enter into this Amendment and to induce the Incremental Lenders to make the 

        
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Incremental Term Loans hereunder, the Borrower hereby represents and warrants to the Incremental Lenders and the Agent on and as of the Incremental Amendment Effective Date that:
(a)This Amendment has been duly authorized, executed and delivered by each Loan Party hereto and constitutes the legal, valid and binding obligations of each such Loan Party enforceable against it in accordance with its terms, except that the enforceability hereof may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally and subject to general principles of equity.
(b)The execution, delivery and performance by each Loan Party of this Amendment is within such Loan Party’s corporate powers, has been duly authorized by all necessary corporate and, if necessary, stockholder action of such Loan Party, and does not and will not (a) conflict with or contravene the terms of any Loan Party’s organization documents, (b) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (i) such as have been obtained or made and are in full force and effect and (ii) for filings and registrations necessary to perfect Liens created pursuant to the Loan Documents, (c) will not violate any Requirement of Law applicable to any Loan Party or any of the Restricted Subsidiaries, (d) will not violate or result in a default under any indenture, agreement or other instrument binding upon any Loan Party or any of the Restricted Subsidiaries or their respective assets, or give rise to a right thereunder to require any payment to be made by any Loan Party or any of the Restricted Subsidiaries, and (e) will not result in the creation or imposition of any Lien on any asset of any Loan Party or any of the Restricted Subsidiaries, except Liens created pursuant to the Loan Documents; except, in the case of each of clauses (b) through (e) above, to the extent that any such violation, default or right, or any failure to obtain such consent or approval or to take any such action, would not reasonably be expected to result in a Material Adverse Effect.
(c)The representations and warranties of the Borrower and each other Loan Party contained in Article III of the Credit Agreement or any other Loan Document are true and correct in all material respects on and as of the date hereof provided that, to the extent that such representations and warranties expressly relate to an earlier date, they are true and correct in all material respects as of such earlier date (excluding the representation set forth in Section 3.15(a) of the Credit Agreement which are true and correct in all material respects as of the Incremental Amendment Effective Date after giving effect to this Amendment); provided further that any representation and warranty that is qualified as to materiality or “Material Adverse Effect” is true and correct in all respects on the Incremental Amendment Effective Date or on such earlier date, as the case may be after giving effect to any such qualification as to materiality or “Material Adverse Effect”.
(d)No Default or Event of Default exists on the date hereof before or after giving effect to this Amendment and the incurrence of the Incremental Term Loans and the use of proceeds therefrom.
(e)As of the Incremental Amendment Effective Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.
SECTION 8.Consent and Affirmation of the Loan Guarantors. Each of the Loan Guarantors, in its capacity as a guarantor under Article X of the Credit Agreement and a Grantor under the Security Agreement and as a party to each other Loan Document to which it is a party, hereby (i) consents to the execution, delivery and performance of this Amendment and agrees that each of the Loan Documents to 

        
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which it is a party is, and shall continue to be, in full force and effect and is hereby in all respects ratified and confirmed on the Incremental Amendment Effective Date, except that, on and after the Incremental Amendment Effective Date, each reference to the “Credit Agreement,” “thereunder,” “thereof,” “therein” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended and otherwise modified by this Amendment and (ii) affirms and confirms its guarantee of the Obligations (including the Incremental Term Loans) and the prior pledge and/or prior grant of a security interest in the Collateral to secure the Obligations (including the Incremental Term Loans) and, after giving effect to this Amendment, all of the Collateral described in the Loan Documents does, and shall continue to, secure the payment and performance in full of all of the Obligations (including the Incremental Term Loans), including the Initial Term Loans and the Incremental Term Loans and the obligations related thereto and no new filings are required to be made or other action required to be taken to perfect or to maintain the perfection and priority of such Liens.
SECTION 9.Affirmation of the Borrower. The Borrower hereby (i) agrees that each of the Loan Documents to which it is a party is, and shall continue to be, in full force and effect and is hereby in all respects ratified and confirmed on the Incremental Amendment Effective Date, except that, on and after the Incremental Amendment Effective Date, each reference to the “Credit Agreement,” “thereunder,” “thereof,” “therein” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended and otherwise modified by this Amendment and (ii) affirms and confirms its prior pledge and/or prior grant of a security interest in the Collateral to secure the Obligations (including the Incremental Term Loans) and, after giving effect to this Amendment, all of the Collateral described in the Loan Documents does, and shall continue to, secure the payment and performance in full of all of the Obligations (including the Incremental Term Loans), including the Initial Term Loans and the Incremental Term Loans and the obligations related thereto and no new filings are required to be made or other action required to be taken to perfect or to maintain the perfection and priority of such Liens.
SECTION 10.Effect of Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of, the Lenders or the Agent under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. The parties hereto acknowledge and agree that the amendment of the Credit Agreement pursuant to this Amendment and all other Loan Documents amended and/or executed and delivered in connection herewith shall not constitute a novation of the Credit Agreement and the other Loan Documents as in effect prior to the date hereof. Nothing herein shall be deemed to establish a precedent for purposes of interpreting the provisions of the Credit Agreement or entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances. This Amendment shall apply to and be effective only with respect to the provisions of the Credit Agreement and the other Loan Documents specifically referred to herein.  
SECTION 11.Severability.  Any term or provision of this Amendment which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Amendment or affecting the validity or enforceability of any of the terms or provisions of this Amendment in any other jurisdiction.  If any provision of this Amendment is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as would be enforceable.

        
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SECTION 12.Execution in Counterparts.  This Amendment may be executed in counterparts (including by facsimile or other electronic transmission), each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.
SECTION 13.Amendment, Modification and Waiver.  This Amendment may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto.  This Amendment, the Credit Agreement and the other Loan Documents constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.
SECTION 14.GOVERNING LAW.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
SECTION 15.WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 15.
SECTION 16.Certain Tax Matters. The parties shall treat the Incremental Term Loans as being fungible with the Existing Term Loans for U.S. federal income tax purposes.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.
	
		
	CLEAN HARBORS, INC.,
as Borrower

	By:
	/s/ Michael Battles                   _

	 
	Name: Michael Battles

	 
	Title: Executive Vice President and Chief Financial Officer

	 
	 

	OTHER loan parties:

	 

	ALTAIR DISPOSAL SERVICES, LLC

	BATON ROUGE DISPOSAL, LLC

	BRIDGEPORT DISPOSAL, LLC

	CH INTERNATIONAL HOLDINGS, LLC

	CLEAN HARBORS ANDOVER, LLC

	CLEAN HARBORS ARAGONITE, LLC

	CLEAN HARBORS ARIZONA, LLC

	CLEAN HARBORS BATON ROUGE, LLC

	CLEAN HARBORS BDT, LLC

	CLEAN HARBORS BUTTONWILLOW, LLC

	CLEAN HARBORS CHATTANOOGA, LLC

	CLEAN HARBORS CLIVE, LLC

	CLEAN HARBORS COFFEYVILLE, LLC

	CLEAN HARBORS COLFAX, LLC

	CLEAN HARBORS DEER PARK, LLC

	CLEAN HARBORS DEER TRAIL, LLC

	CLEAN HARBORS DEVELOPMENT, LLC

	CLEAN HARBORS DISPOSAL SERVICES, INC.

	CLEAN HARBORS EL DORADO, LLC

	CLEAN HARBORS ENVIRONMENTAL SERVICES, INC.

	CLEAN HARBORS ES INDUSTRIAL SERVICES, INC.
CLEAN HARBORS EXPLORATION SERVICES, INC.

	CLEAN HARBORS FLORIDA, LLC

	CLEAN HARBORS GRASSY MOUNTAIN, LLC

	CLEAN HARBORS INDUSTRIAL SERVICES, INC.

	CLEAN HARBORS KANSAS, LLC

	CLEAN HARBORS KINGSTON FACILITY CORPORATION

	CLEAN HARBORS LAPORTE, LLC

	CLEAN HARBORS LAUREL, LLC

	CLEAN HARBORS LONE MOUNTAIN, LLC

	CLEAN HARBORS OF BALTIMORE, INC.

	CLEAN HARBORS OF BRAINTREE, INC.

	CLEAN HARBORS OF CONNECTICUT, INC.

	CLEAN HARBORS PECATONICA, LLC

	CLEAN HARBORS RECYCLING SERVICES OF CHICAGO, LLC

	CLEAN HARBORS RECYCLING SERVICES OF OHIO, LLC

	CLEAN HARBORS REIDSVILLE, LLC

[Signature Page to Incremental Facility Amendment]
869844.1 

	
		
	CLEAN HARBORS SAN JOSE, LLC

	CLEAN HARBORS SAN LEON, INC.

	CLEAN HARBORS SERVICES, INC.

	CLEAN HARBORS SURFACE RENTALS USA, INC.

	CLEAN HARBORS TENNESSEE, LLC

	CLEAN HARBORS WESTMORLAND, LLC

	CLEAN HARBORS WHITE CASTLE, LLC

	CLEAN HARBORS WICHITA, LLC

	CLEAN HARBORS WILMINGTON, LLC

	CROWLEY DISPOSAL, LLC

	DISPOSAL PROPERTIES, LLC

	EMERALD SERVICES, INC.

	GSX DISPOSAL, LLC

	HILLIARD DISPOSAL, LLC

	INDUSTRIAL SERVICE OIL COMPANY, INC.

	MURPHY’S WASTE OIL SERVICE INC.

	ROEBUCK DISPOSAL, LLC

	ROSEMEAD OIL PRODUCTS, INC.

	SAFETY-KLEEN ENVIROSYSTEMS COMPANY 

	SAFETY-KLEEN ENVIROSYSTEMS COMPANY OF PUERTO RICO, INC. 

	SAFETY-KLEEN, INC.

	SAFETY-KLEEN INTERNATIONAL, INC.

	SAFETY-KLEEN SYSTEMS, INC.

	SAFETY-KLEEN OF CALIFORNIA, INC.

	SAWYER DISPOSAL SERVICES, LLC

	SERVICE CHEMICAL, LLC

	SPRING GROVE RESOURCE RECOVERY, INC.

	THERMO FLUIDS INC.

	THE SOLVENTS RECOVERY SERVICE OF NEW JERSEY, INC.

	TULSA DISPOSAL, LLC

	VERSANT ENERGY SERVICES, INC.

	 

	By:/s/ Michael Battles                   _
Name: Michael Battles
Title: Executive Vice President

	 

	PLAQUEMINE REMEDIATION SERVICES, LLC

	 

	By:/s/ Michael McDonald________
Name: Michael McDonald
Title: President

	 

	GOLDMAN SACHS LENDING PARTNERS LLC, as Agent
By:/s/ Thomas M. Manning__________
Name: Thomas M. Manning
Title: Authorized Signatory

[Signature Page to Incremental Facility Amendment]
869844.1 

	
		
	GOLDMAN SACHS LENDING PARTNERS LLC, as an Incremental Lender

	By:
	/s/ Thomas M. Manning__________

	 
	Name: Thomas M. Manning

	 
	Title: Authorized Signatory

[Signature Page to Incremental Facility Amendment]
869844.1 

Schedule I 

As of the Incremental Amendment Effective Date:

	
		
	Incremental Lender
	Incremental Term Commitment

	Goldman Sachs Lending Partners LLC
	$350,000,000

	Total:
	$350,000,000

        
869844.1 

Schedule II

	
		
	Date
	Amount

	September 30, 2018
	$1,883,838.38

	December 31, 2018
	$1,883,838.38

	March 31, 2019
	$1,883,838.38

	June 30, 2019
	$1,883,838.38

	September 30, 2019
	$1,883,838.38

	December 31, 2019
	$1,883,838.38

	March 31, 2020
	$1,883,838.38

	June 30, 2020
	$1,883,838.38

	September 30, 2020
	$1,883,838.38

	December 31, 2020
	$1,883,838.38

	March 31, 2021
	$1,883,838.38

	June 30, 2021
	$1,883,838.38

	September 30, 2021
	$1,883,838.38

	December 31, 2021
	$1,883,838.38

	March 31, 2022
	$1,883,838.38

	June 30, 2022
	$1,883,838.38

	September 30, 2022
	$1,883,838.38

	December 31, 20212
	$1,883,838.38

	March 31, 2023
	$1,883,838.38

	June 30, 2023
	$1,883,838.38

	September 30, 2023
	$1,883,838.38

	December 31, 2023
	$1,883,838.38

	March 31, 2024
	$1,883,838.38

        
869844.1Exhibit_10.1

		

			Exhibit 10.1

		

		
			 RLI CORP.
		

		
			NONEMPLOYEE DIRECTORS
		

		
			DEFERRED COMPENSATION PLAN
		

		
			(Restated as of January 1, 2009)
		

		
			(Amended May 3, 2018)
		

		
			
		

		
			

		 

 

		

		
			RLI CORP.
		

		
			NONEMPLOYEE DIRECTORS
		

		
			DEFERRED COMPENSATION PLAN
		

		
			 
		

		
			 
		

		
			ARTICLE 1
		

		
			 
		

		
			INTRODUCTION
		

		
			 
		

		
			1.1.Establishment.  RLI established the RLI Corp. Nonemployee Directors Deferred Compensation Plan (“Plan”) effective January 1, 2005.  Prior to that date, RLI provided similar deferred compensation opportunities to its Directors under certain Prior Agreements.  All obligations under the Prior Agreements (including any predecessor arrangements) will be satisfied under the Prior Agreements, rather than under this Plan.  RLI restated the Plan, effective January 1, 2009, to comply with the requirements of the final regulations issued under Section 409A of the Code (“Section 409A”) (“Restatement”).  RLI amended the Plan, effective May 3, 2018, to clarify provisions with respect to the deferral of restricted stock units and to make clear how partial (or fractional) shares are paid in a single or final payment.
		

		
			 
		

		
			The Restatement applies to amounts deferred under the Plan on or after January 1, 2009 (the “Restatement Date”), and to the payment of all amounts deferred under the Plan (whether such amounts were deferred before, on, or after the Restatement Date) that have not yet been distributed as of the Restatement Date.  Except as set forth in Article 6, no amount deferred under the Plan is intended to be “grandfathered” under Section 409A.
		

		
			 
		

		
			The obligation of RLI to make payments under the Plan constitutes an unsecured (but legally enforceable) promise of RLI to make such payments and no person, including any Participant or Beneficiary, shall have any lien, prior claim or other security interest in any property of RLI as a result of the Plan.
		

		
			 
		

		
			1.2.Purpose.  The purpose of the Plan is to attract and retain qualified Directors and to provide them with an opportunity to save on a pre-tax basis and accumulate tax-deferred income to achieve their financial goals.
		

		
			 
		

		
			1.3.Definitions.  When the following terms are used herein with initial capital letters, they shall have the following meanings:
		

		
			 
		

		
			1.3.1.Account - the separate recordkeeping account (unfunded and unsecured) maintained for each Participant in connection with the Participant’s participation in the Plan.
		

		
			 
		

		
			1.3.2.Affiliate - a business entity which is under a “common control” with RLI or which is a member of an “affiliated service group” that includes RLI, as those terms are defined in Code § 414(b), (c) and (m).
		

		
			 
		

		
			1.3.3.Beneficiary - the person or persons designated as such under Sec. 5.2.
		

		
			 
		

		
			1.3.4.Board - the Board of Directors of RLI.
		

		
			 
		

		
			1.3.5.Code - the Internal Revenue Code of 1986, as the same may be amended from time to time.
		

		
			 
		

		
			1.3.6.Direct Compensation - the total amounts, as determined by RLI, payable to a Director for services as a Director, whether payable in cash or in RLI Stock (including restricted stock unit awards), but excluding amounts determined by RLI to be expense reimbursements.
		

		
			 
		

		
			1.3.7.Director - an individual who is a member of the Board but who is not an Employee of RLI or an Affiliate.
		

		
			 
		

		
			1.3.8.Employee - a common-law employee of RLI or an Affiliate (while it is an Affiliate).
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

		
			1.3.9.ERISA - the Employee Retirement Income Security Act of 1974, as the same may be amended from time to time.
		

		
			 
		

		
			1.3.10.Participant - a Director who enrolls as a Participant in the Plan under Sec. 2.2.
		

		
			 
		

		
			1.3.11.Plan - the unfunded deferred compensation plan that is set forth in this document, as the same may be amended from time to time.  The name of the Plan is the “RLI Corp. Nonemployee Directors Deferred Compensation Plan.”
		

		
			 
		

		
			1.3.12.Prior Agreement - an individual agreement entered into by a Director and RLI to provide deferred compensation opportunities to the Director.  In certain cases, such Prior Agreement was a successor to an earlier arrangement known as the Director Non-Qualified Deferred Compensation Plan.
		

		
			 
		

		
			1.3.13.RLI - RLI Corp. and any Successor Corporation.
		

		
			 
		

		
			1.3.14.RLI Stock - the common stock of RLI.
		

		
			 
		

		
			1.3.15.Successor Corporation - any entity that succeeds to the business of RLI through merger, consolidation, acquisition of all or substantially all of its assets, or any other means and which elects before or within a reasonable time after such succession, by appropriate action evidenced in writing, to continue the Plan.
		

		
			 
		

		
			1.3.16.Termination of Service - the Participant’s departure from the Board, unless the Director then becomes an Employee.  Notwithstanding the foregoing, a “Termination of Service” will be deemed not to have occurred if such departure would not be considered a “separation from service” under Code § 409A (a) (2) (A) (i) or any regulations or other guidance issued by the Treasury Department under Code § 409A.  In such case, a Termination of Service will be deemed to have occurred at the earliest time allowed under Code § 409A.
		

		
			 
		

		
			1.3.17.Vested - nonforfeitable.
		

		
			 
		

		
			1.3.18.Year - the calendar year.
		

		
			 
		

		
			1.4.Nonqualified Deferred Compensation.  The Plan is a nonqualified deferred compensation plan subject to Code § 409A.  To the extent any provision of the Plan does not satisfy the requirements contained in Code § 409A or in any regulations or other guidance issued by the Treasury Department under Code § 409A, such provision will be applied in a manner consistent with such requirements, regulations or guidance, notwithstanding any contrary provision of the Plan or any inconsistent election made by a Participant.
		

		
			  
		

		
			ARTICLE 2
		

		
			 
		

		
			PARTICIPATION
		

		
			 
		

		
			2.1.Eligibility.  All Directors will be eligible to participate in the Plan.  A Director may continue to participate in the Plan for so long as the Plan remains in effect and remains a Director.
		

		
			 
		

		
			2.2.Enrollment.  A Director will be allowed to enroll in the Plan during the thirty (30) day period coinciding with and following the date the individual becomes a Director.  Such an enrollment will be effective as of the date it is made.  Thereafter, a Director may elect to enroll for a Year during the enrollment period established by RLI for such Year, which enrollment period will be a period of not less than thirty (30) days that ends not later than the last day of the prior Year.  Enrollment must be made in such manner and in accordance with such rules as may be prescribed for this purpose by RLI (including by means of a voice response or other electronic system under circumstances authorized by RLI).
		

		
			 
		

		
			2.3.Direct Compensation Deferrals.
		

		
			 
		

		
			2.3.1.Elections.  A Director may elect to reduce any annual retainers, committee fees, and, if applicable, committee chair fees earned in the applicable Year (“Direct Compensation”) by any whole percent, but not more than 

		 

		

			 

		

		

			 

		

 

one-hundred percent (100%).  A separate reduction percentage may apply to the portion of Direct Compensation that is payable in cash and to the portion that is payable in RLI Stock.  A Director may separately elect to defer the receipt of RLI Stock otherwise issuable upon the vesting of any restricted stock unit awards that are granted to such Director in the applicable Year, and such election shall apply to all Years over which such restricted stock award vests.    An election must be made in such manner and in accordance with such rules as may be prescribed for this purpose by RLI (including by means of a voice response or other electronic system under circumstances authorized by RLI).  An election must be made as part of the enrollment described in Sec. 2.2.
		

		
			 
		

		
			2.3.2.Elections Relate to Services Performed After the Election and Are Irrevocable.   An election will apply to all Direct Compensation attributable to services performed in a given Year, regardless of when such Direct Compensation would otherwise be provided to the Participant.  For example, an election to defer an annual retainer attributable to services performed in a given Year but payable in the next Year, must be made as part of the enrollment election made prior to the Year in which the services are performed.  However, an election will only be effective to defer Direct Compensation earned after the election is made, and not before.  For example, an election made in connection with a mid-year enrollment under Sec. 2.2 will only be effective for Direct Compensation attributable to services performed on and after the effective date of the enrollment as provided in Sec. 2.2.   An election to defer the shares of RLI Stock otherwise issuable upon the vesting of a restricted stock unit award will apply only to restricted stock unit awards granted in the applicable Year. An election will apply solely with respect to the given Year - that is, an election will not automatically be carried over and applied to the next Year.
		

		
			 
		

		
			In general, an election shall become irrevocable as of the last day of the enrollment period applicable to it.  However, if a Participant incurs an “unforeseeable emergency,” as defined in Section 4.7(h), or becomes entitled to receive a hardship distribution pursuant to Treas. Reg. Sec. 1.401(k) - 1(d)(3) after the election otherwise becomes irrevocable, the election shall be cancelled as of the date on which the Participant is determined to have incurred the unforeseeable emergency or becomes eligible to receive the hardship distribution and no further deferrals will be made under it. 
		

		
			 
		

		
			ARTICLE 3
		

		
			 
		

		
			ACCOUNTS
		

		
			 
		

		
			3.1.Accounts.   RLI shall establish and maintain a separate Account for each Participant.  The Account shall be for recordkeeping purposes only and shall not represent a trust fund or other segregation of assets for the benefit of the Participant.  The balance of each Participant’s Account will be maintained in full and fractional shares of RLI Stock.
		

		
			 
		

		
			3.2.Credits to Accounts.  Each Participant’s Account shall be credited from time to time as provided in this section.
		

		
			 
		

		
			3.2.1.Direct Compensation Deferrals.  The amount of each Direct Compensation cash payment or RLI Stock grant (including restricted stock units) which the Participant has elected to defer under the Plan shall be credited to the Participant’s Account on, or as soon as administratively practicable after, the date it would otherwise be payable to the Participant.  Any cash amount shall be converted to RLI Stock credits, equal to the number of full and fractional shares that could be purchased with such amount on, or as soon as administratively feasible after, the date such amount is credited to the Participant’s Account.
		

		
			 
		

		
			3.2.2.Dividends and Other Adjustments.  The Participant’s Account shall be credited with additional RLI Stock credits, equal to the number of full and fractional shares of RLI Stock that could be purchased with any cash dividends which would be payable on the RLI Stock credited to the Participant’s Account.  For this purposes, the share price on, or as soon as administratively practicable after, the date the dividend is paid will be used.  The Account also will be adjusted for any stock split, redemption or similar event, in a manner determined to be reasonable by RLI.
		

		
			 
		

		
			3.3.Charges to Accounts.  As of the date any Plan benefit measured by the Account is paid to the Participant or the Participant’s Beneficiary, the Account shall be charged with the amount of such benefit payment.
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

		
			ARTICLE 4
		

		
			 
		

		
			BENEFITS
		

		
			 
		

		
			4.1.Vesting.   The Participant’s Account shall be fully (100%) Vested.
		

		
			 
		

		
			4.2.Payment of Plan Benefits on Termination of Service - General Rule.   If the Participant has an Account balance at Termination of Service, RLI shall pay that balance to the Participant in five (5) annual installments, as follows:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			Time.  The first installment shall be paid on or about the January 1 following the Year in which the Participant’s Termination of Service occurs.  The remaining installments shall be paid on or about each subsequent January 1.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			Amount.  The amount of each installment shall be determined using a “fractional” method - by multiplying the Participant’s Account balance immediately before the installment payment date by a fraction, the numerator of which is one and the denominator of which is the number of installments remaining (including the installment in question).  The result shall be rounded down to the next lower full share of RLI Stock, except for the final installment, which shall distribute the final shares and pay cash in lieu of any partial share.

		
			 
		

		
			4.3.Changing Payment Elections.
		

		
			 
		

		
			4.3.1.General Rule.  A Participant may elect to change the number of annual installments the Participant receives under the Plan to ten (10) or fifteen (15) installments, subject to the rules below.  Any such election must be made in such manner and in accordance with such rules as may be prescribed for this purpose by RLI (including by means of a voice response or other electronic system under circumstances authorized by RLI).  The installments shall commence on the date specified in Sec. 4.2(a), unless otherwise postponed by this Article 4, and the amount of each installment shall be determined under the fractional method described in Sec. 4.2(b).
		

		
			 
		

		
			4.3.2.Election upon Initial Plan Enrollment.  An election to extend the number of installments may be made as part of the Participant’s initial enrollment in the Plan, as described in Sec. 2.3. 
		

		
			 
		

		
			4.3.3.Subsequent Election.  If a Participant did not elect to extend the number of installments upon initial enrollment, or if the Participant wants to further change the number of installments after becoming a Participant, such Participant may elect to change the number of installments in accordance with the following rules:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			The election must be received by RLI in writing and in proper form and must not take effect for at least 12 months from the date on which it is submitted to RLI;

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The election must be submitted to RLI at least 12 months prior to the specified date of distribution; and

		
			 
		

			
	
			
				 (c)
			

			
	
			
			The commencement of installments must be delayed at least five (5) years from the date payments would otherwise commence without this subsequent election.

		
			 
		

		
			4.4.Special Rules.
		

		
			 
		

		
			4.4.1.Specified Employee Exception.  If a Participant becomes an Employee and subsequently has a “separation of service” (within the meaning of Code § 409A (a) (2) (A) (i)), the initial installment (or lump-sum payment, if applicable) shall be delayed to the extent necessary to comply with Code § 409A (a) (2) (B) (i) or any regulations or other guidance issued by the Treasury Department thereunder.
		

		
			 
		

		
			4.4.2.Cash-Out of Small Amounts.  Any contrary provision or election notwithstanding, if the Participant’s Account balance is less than one hundred thousand dollars ($100,000) as of the date installments are to commence, the Account shall be paid to the Participant in a single lump-sum, as full settlement of all benefits due 

		 

		

			 

		

		

			 

		

 

under the Plan; provided that, for purposes of applying the one hundred thousand dollar ($100,000) cash-out limit, all nonqualified deferred compensation amounts payable to the Participant by RLI and its Affiliates shall be aggregated if and to the extent required under Code § 409A or any regulations or other guidance issued by the Treasury Department thereunder.
		

		
			 
		

		
			4.5.Medium of Payments.   All payments to a Participant shall be made in shares of RLI Stock.  Unless the shares have been registered under the Securities Act of 1933 (the “Act”), are otherwise exempt from the registration requirements of the Act, are the subject of a favorable no action letter issued by the Securities and Exchange Commission, or are the subject of an opinion of counsel acceptable to RLI to the effect that such shares are exempt from the registration requirements of the Act, the transfer of such shares shall be subject to the provisions of Rule 144 of the Act, as the same may be amended from time to time.
		

		
			 
		

		
			4.6.Delay in Distributions.  A payment under the Plan may be delayed by RLI under any of the following circumstances so long as all payments to similarly situated Participants are treated on a reasonably consistent basis:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			RLI reasonably anticipates that if such payment were made as scheduled, RLI’s deduction with respect to such payment would not be permitted under Section 162(m) of the Code, provided that the payment is made either during the first calendar year in which RLI reasonably anticipates, or should reasonably anticipate, that if the payment is made during such year, the deduction of such payment will not be barred by application of Section 162(m) or during the period beginning with the date of the Participant’s Termination of Employment and ending on the later of the last day of RLI’s fiscal year in which the Participant has a Termination of Employment or the 15th day of the third month following the Termination of Employment.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			RLI reasonably anticipates that the making of the payment will violate Federal securities laws or other applicable law, provided that the payment is made at the earliest date at which RLI reasonably anticipates that the making of the payment will not cause such violation.  

		
			 
		

			
	
			
				 (c)
			

			
	
			
			Upon such other events as determined by RLI and according to such terms as are consistent with Section 409A or are prescribed by the Commissioner of Internal Revenue.

		
			 
		

		
			4.7Acceleration of Distributions.  RLI may, in its discretion, distribute all or a portion of a participant’s Accounts at an earlier time and in a different form than specified as otherwise provided in this Article 4, under the circumstances described below:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			As may be necessary to fulfill a Domestic Relations Order.  Distributions pursuant to a Domestic Relations Order shall be made according to administrative procedures established by RLI.

		
			 
		

			
	
			
				 (b)
			

			
	
			
			To the extent reasonably necessary to avoid the violation of ethics laws or conflict of interest laws pursuant to Section 1.409A-3(j) (ii) of the Treasury regulations.

		
			 
		

			
	
			
				 (c)
			

			
	
			
			To pay FICA on amounts deferred under the Plan and the income tax resulting from such payment.

		
			 
		

			
	
			
				 (d)
			

			
	
			
			To pay the amount required to be included in income as a result of the Plan’s failure to comply with Section 409A.

		
			 
		

			
	
			
				 (e)
			

			
	
			
			If RLI determines, in its discretion, that it is advisable to liquidate the Plan in connection with a termination of the Plan subject to the requirements of Section 409A.

		
			 
		

			
	
			
				 (f)
			

			
	
			
			As satisfaction of a debt of the Participant to an Affiliate, where such debt is incurred in the ordinary course of the service relationship between the Affiliate and the Participant, the entire amount of the reduction in any Year does not exceed $5,000, and the reduction is made at the same time and in the same amount as the debt otherwise would have been due and collected from the Participant.

		
			 
		

			
	
			
				 (g)
			

			
	
			
			To pay state, local or foreign tax obligations that may arise with respect to amounts deferred under the Plan and the income tax resulting from such payment.

		
			

		 

		

			 

		

		

			 

		

 

		

		
			 
		

			
	
			
				 (h)
			

			
	
			
			If the Participant has an unforeseeable emergency.  For these purposes an “unforeseeable emergency” is a severe financial hardship to the Participant, resulting from an illness or accident of the Participant, the Participant’s spouse, the Beneficiary, or the Participant’s dependent (as defined in Section 152, without regard to Section 152(b)(1), (b)(2), and (d)(1)(B) of the Code); loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  For example, the imminent foreclosure of or eviction from the Participant’s primary residence may constitute an unforeseeable emergency.  In addition, the need to pay for medical expenses, including non-refundable deductibles, as well as for the cost of prescription drug medication, may constitute an unforeseeable emergency.  Finally, the need to pay for funeral expenses of a spouse, Beneficiary, or a dependent (as defined in Section 152, without regard to 152(b)(1), (b)(2),  and (d)(1)(B) of the Code) may also constitute an unforeseeable emergency.  Except as otherwise provided in this paragraph (h), the purchase of a home and the payment of college tuition are not unforeseeable emergencies.  Whether a Participant is faced with an unforeseeable emergency permitting a distribution under this paragraph (h) is to be determined based on the relevant facts and circumstances of each case, but, in any case a distribution on account of an unforeseeable emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of Elective Deferrals.

		
			 
		

		
			Distributions because of an unforeseeable emergency must be limited to the amount reasonably necessary to satisfy the emergency need (which may include amounts necessary to pay any Federal, state, local, or foreign income taxes or penalties reasonably anticipated to result from the distribution).  A determination of the amounts reasonably necessary to satisfy the emergency need must take into account any additional compensation that is available due to cancellation of the Participant’s election as a result of this paragraph (h).
		

		
			 
		

		
			Notwithstanding anything in this Section 4.7 to the contrary, except for a Participant’s election to request a distribution due to an unforeseeable emergency under paragraph (h), above (which the Participant, in the Participant’s discretion, may elect to make or not make), RLI shall not provide the Participant with discretion or a direct or indirect election regarding whether a payment is accelerated pursuant to this Section 4.7.
		

		
			 
		

		
			4.8When a Payment is Deemed to be Made.  Any payment that is due to be distributed as of a particular date pursuant to the provisions of the Plan, will be deemed to be distributed as of that date if it is distributed on such date or a later date within the same calendar year, or, if later, by the 15th day of the third calendar month following the date, and the Participant is not permitted, directly or indirectly, to designate the calendar year of payment.  Further, a payment will be treated as made on a date if it is made no earlier than 30 days before the date, and the Participant is not permitted, directly or indirectly, to designate the calendar year of payment.  For purposes of the foregoing, if the payment is required to be made during a period of time, the specified date is treated as the first day of the period of time.
		

		
			 
		

		
			ARTICLE 5
		

		
			 
		

		
			DEATH BENEFITS
		

		
			 
		

		
			5.1.Death Benefits.
		

		
			 
		

		
			5.1.1.Benefits When Participant Dies Before Commencement of Payments.  If the Participant dies before installments commence, the Participant’s Account balance shall be paid to the Participant’s Beneficiary as follows:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			If the Participant has made a valid election under Sec. 4.3, payments shall be made in ten (10) or fifteen (15) annual installments, as elected by the Participant.

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

			
	
			
				 (b)
			

			
	
			
			Otherwise, payments shall be made in five (5) annual installments.

		
			 
		

		
			The first installment shall be paid on the January 1 following the Year in which the Participant’s death occurs.  The remaining installments shall be paid on each subsequent January 1.  The amount of each installment shall be determined using the “fractional” method described in Sec. 4.2(b).
		

		
			 
		

		
			5.1.2.Benefits When Participant Dies After Commencement of Payments.  If the Participant dies after installments commence and the Participant has an Account balance at death, the remaining Account balance shall be paid to the Participant’s Beneficiary in the same manner as if the Participant were still living.
		

		
			 
		

		
			5.1.3.Medium of Payments.  All payments to a Beneficiary shall be made in shares of RLI Stock.
		

		
			 
		

		
			5.1.4.Cash-Out of Small Amounts.  Any contrary provision or election notwithstanding, if the amount payable to the Beneficiary is less than one hundred thousand dollars ($100,000) as of the date installments are to commence, the benefit shall be paid to the Beneficiary in a single lump-sum, as full settlement of all benefits due under the Plan, subject, however, to any limitation on such cash-out under Code § 409A or any regulations or other guidance issued by the Treasury Department thereunder.
		

		
			 
		

		
			5.2.Designation of Beneficiary.
		

		
			 
		

		
			5.2.1.Persons Eligible to Designate.  Any Participant may designate a Beneficiary to receive any amount payable under the Plan as a result of the Participant’s death, provided that the Beneficiary survives the Participant.  The Beneficiary may be one or more persons, natural or otherwise.  By way of illustration, but not by way of limitation, the Beneficiary may be an individual, trustee, executor, or administrator.  A Participant may also change or revoke a designation previously made, without the consent of any Beneficiary named therein.
		

		
			 
		

		
			5.2.2.Form and Method of Designation.  Any designation or a revocation of a prior designation of Beneficiary shall be in writing on a form acceptable to RLI and shall be filed with RLI.  RLI and all other parties involved in making payment to a Beneficiary may rely on the latest Beneficiary designation on file with RLI at the time of payment or may make payment pursuant to Sec. 5.2.3 if an effective designation is not on file, shall be fully protected in doing so, and shall have no liability whatsoever to any person making claim for such payment under a subsequently filed designation of Beneficiary or for any other reason.
		

		
			 
		

		
			5.2.3.No Effective Designation.  If there is not on file with RLI an effective designation of Beneficiary by a deceased Participant, the Beneficiary shall be the person or persons surviving the Participant in the first of the following classes in which there is a survivor, share and share alike:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			The Participant’s spouse.  (A “spouse” is a person of the opposite sex to whom the     Participant is legally married, including a common-law spouse if the marriage was entered into in a state that recognizes common-law marriages and RLI has received acceptable proof and/or certification of common-law married status.)

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The Participant’s then living descendants, per stirpes.

		
			 
		

			
	
			
				 (c)
			

			
	
			
			The individuals entitled to inherit the Participant’s property under the law of the state in which the Participant resides immediately before the Participant’s death, in the proportions determined under such law.

		
			Determination of the identity of the Beneficiary in each case shall be made by RLI.
		

		
			 
		

		
			5.2.4.Successor Beneficiary.  If a Beneficiary who survives the Participant subsequently dies before receiving the complete payment to which the Beneficiary was entitled, the successor Beneficiary, determined in accordance with the provisions of this section, shall be entitled to the payments remaining.  The successor Beneficiary 

		 

		

			 

		

		

			 

		

 

shall be the person or persons surviving the Beneficiary in the first of the following classes in which there is a survivor, share and share alike:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			The Beneficiary’s spouse. (A “spouse” is a person of the opposite sex to whom the Beneficiary is legally married, including a common-law spouse if the marriage was entered into in a state that recognizes common-law marriages and RLI has received acceptable proof and/or certification of common-law married status.)

		
			 
		

			
	
			
				 (b)
			

			
	
			
			The Beneficiary’s then living descendants, per stirpes.

		
			 
		

			
	
			
				 (c)
			

			
	
			
			The individuals entitled to inherit the Beneficiary’s property under the law of the state in which the Beneficiary resides immediately before the Beneficiary’s death, in the proportions determined under such law.

		
			 
		

		
			ARTICLE 6
		

		
			 
		

		
			PAYMENT PROCEDURES
		

		
			 
		

		
			6.1.Application for Benefits.  Benefits shall be paid to Participants automatically (without a written request) at the time and in the manner specified in the Plan.  Benefits shall be paid to a Beneficiary upon RLI’s receipt of a written request for the benefits, including appropriate proof of the Participant’s death and the Beneficiary’s identity and right to payment.
		

		
			 
		

		
			6.2.Deferral of Payment.   If there is a dispute regarding a Plan benefit, RLI, in its sole discretion, may defer payment of the benefit until the dispute has been resolved.
		

		
			 
		

		
			ARTICLE 7
		

		
			 
		

		
			ADMINISTRATION
		

		
			 
		

		
			7.1.Administrator.  RLI shall be the administrator of the Plan.  RLI shall control and manage the administration and operation of the Plan and shall make all decisions and determinations incident thereto.  Except with respect to the ordinary day-to-day administration of the Plan, action on behalf of RLI must be taken by one of the following:
		

		
			 
		

		
			(a)          The Board; or
		

		
			 
		

		
			(b)          The Nominating/Corporate Governance Committee of the Board.
		

		
			 
		

		
			7.1.1.Delegation.  The ordinary day-to-day administration of the Plan may be delegated by the chief executive officer of RLI to an individual or a committee.  Such individual or committee shall have the authority to delegate or redelegate to one or more persons, jointly or severally, such functions assigned to such individual or committee as such individual or committee may from time to time deem advisable.
		

		
			 
		

		
			7.1.2.Automatic Removal.  If any individual or committee member to whom responsibility under the Plan is allocated is a director, officer or employee of RLI or an Affiliate when responsibility is so allocated, then such individual shall be automatically removed as a member of a committee at the earliest time such individual ceases to be a director, officer or employee of RLI or an Affiliate.  This removal shall occur automatically and without any requirement for action by RLI or any notice to the individual so removed.
		

		
			 
		

		
			7.1.3.Conflict of Interest.  If any individual or committee member to whom responsibility under the Plan is allocated is also a Participant or Beneficiary, such individual shall have no authority as such member with respect to any matter specifically affecting such Participant or Beneficiary’s individual interest hereunder (as distinguished from the interests of all Participants and Beneficiaries or a broad class of Participants and Beneficiaries), all such 

		 

		

			 

		

		

			 

		

 

authority being reserved exclusively to the other members to the exclusion of such Participant or Beneficiary, and such Participant or Beneficiary shall act only in an individual capacity in connection with any such matter.
		

		
			 
		

		
			7.1.4.Binding Effect.   The determination of the Board or the Nominating/Corporate Governance Committee of the Board in any matter within its authority shall be binding and conclusive upon RLI and all persons having any right or benefit under the Plan.
		

		
			 
		

		
			7.1.5.Third-Party Service Providers.  RLI may from time to time appoint or contract with an administrator, recordkeeper or other third-party service provider for the Plan.  Any such administrator, recordkeeper or other third-party service provider will serve in a nondiscretionary capacity and will act in accordance with directions given and procedures established by RLI.
		

		
			 
		

		
			7.2.Benefits Not Transferable.  No Participant or Beneficiary shall have the power to transmit, alienate, dispose of, pledge or encumber any benefit payable under the Plan before its actual payment to the Participant or Beneficiary.  Any such effort by a Participant or Beneficiary to convey any interest in the Plan shall not be given effect under the Plan.  No benefit payable under the Plan shall be subject to attachment, garnishment, execution following judgment or other legal process before its actual payment to the Participant or Beneficiary.
		

		
			 
		

		
			7.3.Benefits Not Secured.  The rights of each Participant and Beneficiary shall be solely those of an unsecured, general creditor of RLI.  No Participant or Beneficiary shall have any lien, prior claim or other security interest in any property of RLI.
		

		
			 
		

		
			7.4.RLI’s Obligations.  RLI shall provide the benefits under the Plan.  RLI’s obligation may be satisfied by distributions from a trust fund created and maintained by RLI, in its sole discretion, for such purpose.  However, the assets of any such trust fund shall be subject to claims by the general creditors of RLI in the event RLI is (i) unable to pay its debts as they become due, or (ii) is subject to a pending proceeding as a debtor under the United States Bankruptcy Code.
		

		
			 
		

		
			7.5.Withholding Taxes.  RLI shall have the right to withhold (and transmit to the proper taxing authority) such federal, state or local taxes as it may be required to withhold by applicable laws.  Such taxes may be withheld from any benefits due under the Plan or from any other compensation to which the Participant is entitled from RLI and its Affiliates.
		

		
			 
		

		
			7.6.Service of Process.  The chief executive officer of RLI is designated as the appropriate and exclusive agent for the receipt of service of process directed to the Plan in any legal proceeding, including arbitration, involving the Plan.
		

		
			 
		

		
			7.7.Limitation on Liability.  Neither RLI’s officers nor any member of its Board nor any individual or committee to whom RLI delegates responsibility under the Plan in any way secures or guarantees the payment of any benefit or amount which may become due and payable hereunder to or with respect to any Participant.  Each Participant and other person entitled at any time to payments hereunder shall look solely to the assets of RLI for such payments as an unsecured, general creditor.  After benefits have been paid to or with respect to a Participant and such payment purports to cover in full the benefit hereunder, such former Participant or other person(s), as the case may be, shall have no further right or interest in the other assets of RLI in connection with the Plan.  Neither RLI nor any of its officers nor any member of its Board nor any individual or committee to whom RLI delegates responsibility under the Plan shall be under any liability or responsibility for failure to effect any of the objectives or purposes of the Plan by reason of the insolvency of RLI.
		

		
			 
		

		
			ARTICLE 8
		

		
			 
		

		
			AMENDMENT AND TERMINATION
		

		
			 
		

		
			8.1.Amendment.  RLI reserves the power to amend the Plan either prospectively or retroactively or both, in any respect, by action of its Board; provided that, no amendment shall be effective to reduce or divest benefits payable with respect to the Account of any Participant or Beneficiary without consent.  No amendment of the Plan shall be 

		 

		

			 

		

		

			 

		

 

effective unless it is in writing and signed on behalf of RLI by a person authorized to execute such writing.  No oral representation concerning the interpretation or effect of the Plan shall be effective to amend the Plan.
		

		
			 
		

		
			8.2.Termination.  RLI reserves the right to terminate the Plan at any time by action of its Board; provided that, the termination of the Plan shall not reduce or divest benefits payable with respect to the Account of any Participant or Beneficiary or negate the Participant’s or Beneficiary’s rights with respect to such benefits.  Any such termination will be done in accordance with the requirements of Section 409A.
		

		
			 
		

		
			ARTICLE 9
		

		
			 
		

		
			MISCELLANEOUS
		

		
			 
		

		
			9.1.Effect on Other Plans.  This Plan shall not alter, enlarge or diminish any person’s rights or obligations under any other benefit plan maintained by RLI or any Affiliate.
		

		
			 
		

		
			9.2.Effect on Service.  Neither the terms of this Plan nor the benefits hereunder nor the continuance thereof shall be a term of the service of any Director.  RLI shall not be obliged to continue the Plan.  The terms of this Plan shall not give any Director the right to continue serving as a member of the Board, nor shall it create any obligation on the part of the Board to nominate any Director for reelection by RLI’s stockholders.
		

		
			 
		

		
			9.3.Disqualification.  Notwithstanding any other provision of the Plan or any designation made under the Plan, any individual who feloniously and intentionally kills a Participant shall be deemed for all purposes of the Plan and all elections and designations made under the Plan to have died before such Participant.  A final judgment of conviction of felonious and intentional killing is conclusive for this purpose.  In the absence of a conviction of felonious and intentional killing, RLI shall determine whether the killing was felonious and intentional for this purpose.
		

		
			 
		

		
			9.4.Rules of Document Construction.   Whenever appropriate, words used herein in the singular may be read in the plural, or words used herein in the plural may be read in the singular; and the words “hereof,” “herein” or “hereunder” or other similar compounds of the word “here” shall mean and refer to the entire Plan and not to any particular article, section or paragraph of the Plan unless the context clearly indicates to the contrary.  The titles given to the various articles and sections of the Plan are inserted for convenience of reference only and are not part of the Plan, and they shall not be considered in determining the purpose, meaning or intent of any provision hereof.  Written notification under the Plan shall include such other methods (for example, facsimile or e-mail) as RLI, in its sole discretion, may authorize from time to time.
		

		
			 
		

		
			9.5.References to Laws.  Any reference in the Plan to a statute shall be considered also to mean and refer to the applicable regulations for that statute. Any reference in the Plan to a statute or regulation shall be considered also to mean and refer to any subsequent amendment or replacement of that statute or regulation.
		

		
			 
		

		
			9.6.Choice of Law.   The Plan has been executed in the State of Illinois and has been drawn in conformity to the laws of that state and shall, except to the extent that federal law is controlling, be construed and enforced in accordance with the laws of the State of Illinois (without regard to its conflict of law principles).
		

		
			 
		

		
			9.7.Binding Effect.   The Plan shall be binding upon and inure to the benefit of the successors and assigns of RLI, and the Beneficiaries, personal representatives and heirs of the Participant.
		

		
			  
		

		
			IN WITNESS WHEREOF, RLI has cause the Plan to be executed by its duly authorized officers as of the 
		

		
			3rd day of May, 2018.
		

		
			 
		

		
			

		 

		

			 

		

		

			 

		

 

		

		
			    
		

			
					
						 

				
	
					
						RLI Corp.

				
	
					
						 

				
	
					
						By: Jonathan E. Michael

				
	
					
						 

				
	
					
						Its: Chairman & CEO

				
	
					
						 

				
	
					
						And

				
	
					
						 

				
	
					
						By: Jean M. Stephenson

				
	
					
						 

				
	
					
						Its: Vice President, Corporate Secretary

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