Document:

EX-10.1

 Exhibit 10.1 

 
  

THIRD AMENDED AND RESTATED 

AGREEMENT OF LIMITED PARTNERSHIP 

OF 
 INFRAREIT PARTNERS,
LP 
  
  

Dated as of March 10, 2015 
 THE LIMITED
PARTNERSHIP INTERESTS (THE “INTERESTS”) OF INFRAREIT PARTNERS, LP HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), THE SECURITIES LAWS OF ANY STATE OR ANY OTHER APPLICABLE U.S. OR
NON-U.S. SECURITIES LAWS, IN EACH CASE IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THE INTERESTS MAY BE ACQUIRED FOR INVESTMENT ONLY, AND NEITHER THE INTERESTS NOR ANY PART THEREOF MAY BE
OFFERED FOR SALE, PLEDGED, HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT IN COMPLIANCE WITH (I) THE SECURITIES ACT, ANY APPLICABLE STATE SECURITIES LAWS AND ANY OTHER APPLICABLE SECURITIES LAWS AND (II) THE TERMS AND CONDITIONS
OF THIS THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP. THE INTERESTS WILL NOT BE TRANSFERRED OF RECORD EXCEPT IN COMPLIANCE WITH SUCH LAWS AND THIS THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP. THEREFORE, PURCHASERS OF
THE INTERESTS WILL BE REQUIRED TO BEAR THE RISK OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	ARTICLE I DEFINED TERMS	  	 	2	  
		
	ARTICLE II ORGANIZATIONAL MATTERS	  	 	21	  
			
	 Section 2.1
	 	 Organization
	  	 	21	  
			
	 Section 2.2
	 	 Name
	  	 	21	  
			
	 Section 2.3
	 	 Registered Office and Agent; Principal Office
	  	 	22	  
			
	 Section 2.4
	 	 Power of Attorney
	  	 	22	  
			
	 Section 2.5
	 	 Term
	  	 	23	  
		
	ARTICLE III PURPOSE	  	 	23	  
			
	 Section 3.1
	 	 Purpose and Business
	  	 	23	  
			
	 Section 3.2
	 	 Powers
	  	 	24	  
			
	 Section 3.3
	 	 Partnership Only for Purposes Specified
	  	 	24	  
			
	 Section 3.4
	 	 Representations and Warranties by the Parties
	  	 	25	  
		
	ARTICLE IV CAPITAL CONTRIBUTIONS AND ISSUANCES OF PARTNERSHIP INTERESTS	  	 	27	  
			
	 Section 4.1
	 	 Capital Contributions of the Partners
	  	 	27	  
			
	 Section 4.2
	 	 Issuances of Partnership Interests
	  	 	27	  
			
	 Section 4.3
	 	 Additional Funds and Capital Contributions
	  	 	29	  
			
	 Section 4.4
	 	 Equity Incentive Plan
	  	 	30	  
			
	 Section 4.5
	 	 Dividend Reinvestment Plan or Cash Option Purchase Plan
	  	 	36	  
			
	 Section 4.6
	 	 Other Contribution Provisions
	  	 	37	  
			
	 Section 4.7
	 	 No Interest on Capital
	  	 	37	  
			
	 Section 4.8
	 	 Separate Agreements
	  	 	37	  
		
	ARTICLE V DISTRIBUTIONS	  	 	37	  
			
	 Section 5.1
	 	 Requirement and Characterization of Distributions
	  	 	37	  
			
	 Section 5.2
	 	 Distributions in-Kind
	  	 	38	  
			
	 Section 5.3
	 	 Amounts Withheld
	  	 	38	  
			
	 Section 5.4
	 	 Distributions Upon Liquidation
	  	 	38	  
			
	 Section 5.5
	 	 Revisions to Reflect Issuance of Partnership Interests
	  	 	38	  
			
	 Section 5.6
	 	 Restricted Distributions
	  	 	38	  

  
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	ARTICLE VI ALLOCATIONS		 	39	  
			
	 Section 6.1
		 Allocations For Capital Account Purposes
		 	39	  
			
	 Section 6.2
		 Capital Accounts of the Partners
		 	41	  
			
	 Section 6.3
		 No Withdrawal
		 	43	  
			
	 Section 6.4
		 Revisions to Allocations to Reflect Issuance of Partnership Interests
		 	43	  
			
	 Section 6.5
		 Special Allocation Rules
		 	43	  
			
	 Section 6.6
		 Allocations for Tax Purposes
		 	47	  
		
	 ARTICLE VII MANAGEMENT AND OPERATIONS OF BUSINESS
		 	48	  
			
	 Section 7.1
		 Management
		 	48	  
			
	 Section 7.2
		 Certificate of Limited Partnership
		 	53	  
			
	 Section 7.3
		 Title to Partnership Assets
		 	54	  
			
	 Section 7.4
		 Reimbursement of the General Partner
		 	54	  
			
	 Section 7.5
		 Outside Activities of the General Partner
		 	55	  
			
	 Section 7.6
		 Transactions With Partners and Affiliates
		 	56	  
			
	 Section 7.7
		 Limitation on Liability and Indemnification
		 	56	  
			
	 Section 7.8
		 Liability of the General Partner
		 	59	  
			
	 Section 7.9
		 Other Matters Concerning the General Partner
		 	59	  
			
	 Section 7.10
		 Reliance By Third Parties
		 	61	  
			
	 Section 7.11
		 Restrictions On General Partner’s Authority
		 	62	  
		
	 ARTICLE VIII RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS
		 	62	  
			
	 Section 8.1
		 Limitation Of Liability
		 	62	  
			
	 Section 8.2
		 Management Of Business
		 	62	  
			
	 Section 8.3
		 Outside Activities of Limited Partners
		 	62	  
			
	 Section 8.4
		 Return Of Capital
		 	63	  
			
	 Section 8.5
		 Rights Of Limited Partners Relating to the Partnership
		 	63	  
			
	 Section 8.6
		 Redemption Right
		 	64	  
		
	 ARTICLE IX BOOKS, RECORDS, ACCOUNTING AND REPORTS
		 	67	  
			
	 Section 9.1
		 Records and Accounting
		 	67	  
			
	 Section 9.2
		 Reports
		 	68	  
		
	 ARTICLE X TAX MATTERS
		 	68	  
			
	 Section 10.1
		 Preparation of Tax Returns
		 	68	  
			
	 Section 10.2
		 Tax Elections
		 	68	  
			
	 Section 10.3
		 Tax Matters Partner
		 	69	  
			
	 Section 10.4
		 [Reserved]
		 	70	  

  
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	 Section 10.5
		 Withholding
		 	70	  
			
	 Section 10.6
		 Code Section 83 Safe Harbor Election
		 	71	  
			
	 Section 10.7
		 Limitation to Preserve REIT Status
		 	71	  
		
	 ARTICLE XI TRANSFERS AND WITHDRAWALS
		 	72	  
			
	 Section 11.1
		 Transfer
		 	72	  
			
	 Section 11.2
		 Transfers of Partnership Interests of General Partner
		 	72	  
			
	 Section 11.3
		 Limited Partners’ Rights to Transfer
		 	74	  
			
	 Section 11.4
		 Substituted Limited Partners
		 	75	  
			
	 Section 11.5
		 Assignees
		 	76	  
			
	 Section 11.6
		 General Provisions
		 	76	  
		
	 ARTICLE XII ADMISSION OF PARTNERS
		 	79	  
			
	 Section 12.1
		 Admission of a Successor General Partner
		 	79	  
			
	 Section 12.2
		 Admission of Additional Limited Partners
		 	79	  
			
	 Section 12.3
		 Amendment of Agreement and Certificate of Limited Partnership
		 	80	  
			
	 Section 12.4
		 Limit on Number of Partners
		 	80	  
		
	 ARTICLE XIII DISSOLUTION AND LIQUIDATION
		 	80	  
			
	 Section 13.1
		 Dissolution
		 	80	  
			
	 Section 13.2
		 Winding Up
		 	81	  
			
	 Section 13.3
		 Compliance With Timing Requirements of Regulations; Restoration of Deficit Capital Accounts
		 	82	  
			
	 Section 13.4
		 Rights of Limited Partners
		 	83	  
			
	 Section 13.5
		 Notice of Dissolution
		 	83	  
			
	 Section 13.6
		 Cancellation of Certificate of Limited Partnership
		 	83	  
			
	 Section 13.7
		 Reasonable Time For Winding Up
		 	84	  
			
	 Section 13.8
		 Waiver of Partition
		 	84	  
			
	 Section 13.9
		 Liability of Liquidator
		 	84	  
		
	 ARTICLE XIV AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS
		 	84	  
			
	 Section 14.1
		 Amendments
		 	84	  
			
	 Section 14.2
		 Meetings of the Partners
		 	86	  
		
	 ARTICLE XV GENERAL PROVISIONS
		 	87	  
			
	 Section 15.1
		 Addresses and Notice
		 	87	  
			
	 Section 15.2
		 Further Action
		 	88	  
			
	 Section 15.3
		 Binding Effect
		 	88	  

  
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	 Section 15.4
		 Creditors
		 	88	  
			
	 Section 15.5
		 Waiver
		 	88	  
			
	 Section 15.6
		 Counterparts
		 	88	  
			
	 Section 15.7
		 Applicable Law
		 	89	  
			
	 Section 15.8
		 Waiver of Jury Trial
		 	89	  
			
	 Section 15.9
		 Forum Selection and Consent to Jurisdiction
		 	89	  
			
	 Section 15.10
		 Invalidity of Provisions
		 	89	  
			
	 Section 15.11
		 Determinations
		 	90	  
			
	 Section 15.12
		 Entire Agreement
		 	90	  
			
	 Section 15.13
		 No Rights as Stockholders
		 	90	  
			
	 Section 15.14
		 No Presumption Against Drafter
		 	90	  
			
	 Section 15.15
		 Rules of Construction
		 	90	  

  

			
	EXHIBIT A		PARTNER REGISTRY
	EXHIBIT B		NOTICE OF REDEMPTION

  
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 THIRD AMENDED AND RESTATED 

AGREEMENT OF LIMITED PARTNERSHIP 

OF 
 INFRAREIT PARTNERS,
LP 
 THIS THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP, effective as of March 10, 2015, is entered into by
and among InfraREIT, Inc., a Maryland corporation, as the General Partner, Hunt-InfraREIT, L.L.C., a Delaware limited liability company, as the Initial Limited Partner, and the other Persons whose names are set forth on the Partner Registry (as
hereinafter defined) as Limited Partners, together with any other Persons who become Partners in the Partnership as provided herein. Capitalized terms used in this Agreement have the meaning assigned to them in Article I. 

WHEREAS, Energy Trans Alliance Trust, a Maryland real estate investment trust (“ETAT”), as general partner, and the
Initial Limited Partner formed the Partnership as “Energy Trans Alliance, L.P.” under the LP Act pursuant to the Certificate and an Agreement of Limited Partnership of the Partnership, dated December 16, 2009 (the “Original
Agreement”); 
 WHEREAS, ETAT, with the consent of the Initial Limited Partner, filed an amendment to the Certificate on
October 5, 2010, whereby the name of the Partnership was changed to “Electricity Trans Alliance, L.P.”; 
 WHEREAS,
InfraREIT, L.L.C., a Delaware limited liability company (the “Predecessor General Partner”), which was at that time known as Electric Infrastructure Alliance of America, L.L.C., acquired all of the right, title and interest of ETAT
in and to the general partner interest in the Partnership and succeeded to all of the rights, powers, authority, duties and obligations of ETAT as general partner of the Partnership as a result of the merger of ETAT into the Predecessor General
Partner on November 9, 2010, with the Predecessor General Partner as the surviving Entity; 
 WHEREAS, the Predecessor General
Partner, with the consent of the Initial Limited Partner, filed another amendment to the Certificate on November 10, 2010, whereby the name of the Partnership was changed to “Electric Infrastructure Alliance of America, L.P.”; 

WHEREAS, the Predecessor General Partner and the Initial Limited Partner amended and restated the Original Agreement on
November 23, 2010 (as amended, the “Amended and Restated Agreement”); 
 WHEREAS, the Predecessor General
Partner filed another amendment to the Certificate on July 15, 2014, whereby the name of the Partnership was changed to “InfraREIT Partners, LP”; 

WHEREAS, the Predecessor General Partner and the Initial Limited Partner entered into Amendment No. 1 to the Amended and Restated
Agreement, dated as of January 29, 2015, in order to effect a 1 for 0.938550 reverse split; 
 WHEREAS, in connection with the REIT
IPO, the merger of the Predecessor General Partner into the General Partner and other reorganization transactions that occurred on or around the date thereof, InfraREIT Inc., the Predecessor General Partner, the Initial Limited Partner and the other
limited partners of the Partnership entered into the Second Amended and Restated Agreement effective as of February 4, 2015 (the “Second Amended and Restated Agreement”); 

 WHEREAS, on March 9, 2015, all of the Partnership Units designated as Class A Common
Units, Class B Common Units and Class C Common Units (the “Classified Units”) outstanding prior to the date hereof were cancelled and no Classified Units are currently issued and outstanding; and 

WHEREAS, in connection with the foregoing, the parties hereto desire to amend and restate the Second Amended and Restated Agreement on
the terms and conditions set forth herein effective as of March 10, 2015. 
 NOW, THEREFORE, in consideration of the mutual covenants
set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

ARTICLE I 
 DEFINED
TERMS 
 Capitalized terms used in this Agreement (including exhibits, schedules and amendments) shall have the meanings set forth below
or in the Section of this Agreement referred to below, except as otherwise expressly indicated or limited by the context in which they appear in this Agreement. 

“704(c) Value” of (i) any Contributed Property means the fair market value of such property at the time of contribution
as determined by the General Partner using such reasonable method of valuation as it may adopt; provided, however, subject to Article VI, the General Partner shall, in its sole and absolute discretion, use such method as it deems
reasonable and appropriate to allocate the aggregate of the 704(c) Value of Contributed Properties in a single or integrated transaction among each separate property on a basis proportional to its fair market value and (ii) any Adjusted
Property means the fair market value of such property on the date the Carrying Value of such property is adjusted pursuant to Section 6.2.D. 

“Additional Funds” has the meaning set forth in Section 4.3.A. 

“Additional Limited Partner” means a Person admitted to the Partnership as a Limited Partner pursuant to
Section 12.2 and who is shown as such in the Partner Registry. 
 “Adjusted Capital Account” means the Capital
Account maintained for each Partner as of the end of each Fiscal Year or other relevant period (i) increased by any amounts which such Partner is obligated to restore pursuant to any provision of this Agreement or is deemed to be obligated to
restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5) and (ii) decreased by the items described in Regulations Sections 1.704-l(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and
1.704-1(b)(2)(ii)(d)(6). The foregoing definition of Adjusted Capital Account is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 

  
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 “Adjusted Capital Account Deficit” means, with respect to any Partner, the
deficit balance, if any, in such Partner’s Adjusted Capital Account as of the end of the relevant Fiscal Year or other relevant period. 

“Adjusted Property” means any property the Carrying Value of which has been adjusted pursuant to Section 6.2.D.

 “Adjustment Event” has the meaning set forth in Section 4.4.C(i). 

“Advisers Act” means the Investment Advisers Act of 1940, as it may be amended from time to time, and any successor to such
statute. 
 “Affiliate” means, with regard to a Person, a Person that controls, is controlled by, or is under common
control with such original Person. For purposes of this definition, “control,” when used with respect to any Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise, and the terms “affiliated,” “controlling” and “controlled” have meanings correlative to the foregoing. 

“Agreed Value” means (i) in the case of any Contributed Property, the 704(c) Value of such property as of the time of
its contribution to the Partnership, reduced by any liabilities either assumed by the Partnership upon such contribution or to which such property is subject when contributed, as the same is reflected in the books and records of the Partnership; and
(ii) in the case of any property distributed to a Partner by the Partnership, the Partnership’s Carrying Value of such property at the time such property is distributed, reduced by any indebtedness either assumed by such Partner upon such
distribution or to which such property is subject at the time of distribution as determined under Section 752 of the Code and the regulations thereunder. The Agreed Value of any Contributed Property shall be set forth in the Partner Registry.

 “Agreement” means this Third Amended and Restated Agreement of Limited Partnership of the Partnership, effective as of
March 10, 2015, as it may be amended, supplemented, restated or otherwise modified from time to time. 
 “Applicable Laws”
means all laws, ordinances, statutes, orders and regulations of any federal, state or local government, regulatory or administrative authority, agency or commission thereof, or any court or tribunal relating to the Investments or operations of the
Partnership or any of its Subsidiaries, including, all requirements of the FERC, Public Utility Commission of Texas, Southwest Power Pool and Electric Reliability Council of Texas. 

“Assignee” means a Person to whom one or more Partnership Units have been transferred in a manner permitted under this
Agreement, but who has not become a Substituted Limited Partner, and who has the rights set forth in Section 11.5. 

“Award Agreement” has the meaning set forth in Section 4.4.D(ii). 

“Benefit Plan Investor” means any Partner that is a “benefit plan investor” as defined in Section 3(42)
of ERISA and any regulations promulgated thereunder. 

  
 -3- 

 “Book-Tax Disparities” means, with respect to any item of Contributed Property
or Adjusted Property, as of the date of any determination, the difference between the Carrying Value of such Contributed Property or Adjusted Property and the adjusted basis thereof for U.S. federal income tax purposes as of such date. A
Partner’s share of the Partnership’s Book-Tax Disparities in all of its Contributed Property and Adjusted Property will be reflected by the difference between such Partner’s Capital Account balance as maintained pursuant to Article
VI and the hypothetical balance of such Partner’s Capital Account computed as if it had been maintained strictly in accordance with U.S. federal income tax accounting principles. 

“Book-Up Target” has the meaning set forth in Section 6.5.J(i). 

“Business Day” means any day other than a Saturday, Sunday or other day in which commercial banks in New York, New York are
authorized or required by Applicable Law or executive order to be closed. 
 “Bylaws” means the Bylaws of the General
Partner, as amended, restated or supplemented from time to time. 
 “Capital Account” means the Capital Account maintained
for a Partner pursuant to Article VI. 
 “Capital Account Limitation” has the meaning set forth in
Section 4.4.E(ii). 
 “Capital Contribution” means, with respect to any Partner, the amount of any cash or the
Agreed Value of Contributed Property that such Partner contributes or is deemed to contribute to the Partnership in respect of such Partner’s Partnership Units. 

“Carrying Value” means (i) with respect to a Contributed Property or Adjusted Property, the 704(c) Value of such
property reduced (but not below zero) by all Depreciation with respect to such Contributed Property or Adjusted Property, as the case may be, charged to the Partners’ Capital Accounts, and (ii) with respect to any other Partnership
property, the adjusted basis of such property for U.S. federal income tax purposes, all as of the time of determination. The Carrying Value of any property shall be adjusted from time to time in accordance with Article VI, and to reflect
changes, additions (including capital improvements thereto) or other adjustments to the Carrying Value for dispositions and acquisitions of Partnership properties, as deemed appropriate by the General Partner. 

“Cash Amount” means an amount of cash equal to the Value on the Valuation Date of the Shares Amount. 

“Cash From Operations” means, with respect to any period for which such calculation is being made: 

(a) all cash revenues and funds received by the Partnership from whatever source (excluding the proceeds of any Capital Contribution but
including, to the extent deemed appropriate by the General Partner, any net proceeds remaining from a Debt issuance or a refinancing) plus the amount of any reduction (including a reduction resulting because the General Partner determines such
amounts are no longer necessary) in reserves of the Partnership, which reserves are referred to in clause (b)(iv) below; 

  
 -4- 

 less 

(b) the sum of the following (except to the extent made with the proceeds of any Capital Contribution): 

(i) all interest, principal and other debt payments made during such period by the Partnership, 

(ii) all cash expenditures (including operating expenses, taxes if any, redemption of Partnership Interests, and capital expenditures) made
by the Partnership during such period, 
 (iii) investments in any Entity (including loans made thereto) to the extent that such
investments are permitted under this Agreement and are not otherwise described in clauses (b)(i) or (ii), and 
 (iv) the amount of any
increase in reserves established during such period which the General Partner determines is necessary or appropriate in its sole and absolute discretion. 

Cash From Operations shall include cash proceeds from the sale or other disposition of assets, provided that, Cash From Operations shall not
include any cash received or reductions in reserves, or take into account any disbursements made or reserves established, after commencement of the dissolution and liquidation of the Partnership. 

“Certificate” means the Certificate of Limited Partnership of the Partnership, which was executed on behalf of the General
Partner and filed in the office of the Secretary of State on December 16, 2009, as amended on October 5, 2010, November 10, 2010, and July 15, 2014, and as it may be further amended or restated from time to time in
accordance with the terms hereof and the LP Act. 
 “Charter” means the Articles of Incorporation of the General Partner,
as amended, restated or supplemented from time to time. 
 “Classified Units” has the meaning set forth in the recitals to
this Agreement. 
 “Closing Date” means, with respect to a Partner, the date such Partner was initially admitted to the
Partnership and made its initial capital contribution to the Partnership. 
 “Code” means the Internal Revenue Code of
1986, as amended and in effect from time to time, as interpreted by the applicable regulations thereunder. Any reference herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding provision of
future law. 

  
 -5- 

 “Commission” means the Securities and Exchange Commission or any other federal
agency at the time administering the Securities Act. 
 “Common Unit” means a Partnership Unit designated as a Common Unit
by the General Partner, with the preferences, conversion or other rights, voting powers or rights, restrictions, limitations as to distribution, qualifications or other terms or conditions set forth in this Agreement. 

“Common Unit Economic Balance” has the meaning set forth in Section 6.5.I(ii). 

“Consent” means the consent or approval of a proposed action by a Partner given in accordance with Section 14.2.

 “Contributed Property” means each property or other asset contributed to the Partnership, in such form as may be
permitted by the LP Act, but excluding cash contributed or deemed contributed to the Partnership. Once the Carrying Value of a Contributed Property is adjusted pursuant to Section 6.2.D, such property shall no longer constitute a
Contributed Property for purposes of Article VI, but shall be deemed an Adjusted Property for such purposes. 

“Conversion Date” has the meaning set forth in Section 4.4.E(ii). 

“Conversion Factor” means 1.0; 

provided that the Conversion Factor will be adjusted as set forth below: 

(a) if the General Partner (i) declares or pays a dividend on its outstanding Shares in Shares or makes a distribution to all holders of
its outstanding Shares in Shares, (ii) splits or subdivides its outstanding Shares or (iii) effects a reverse stock split or otherwise combines its outstanding Shares into a smaller number of Shares, the Conversion Factor shall be adjusted
by multiplying the Conversion Factor previously in effect by a fraction, the numerator of which shall be the number of Shares issued and outstanding on the record date for such dividend, distribution, split, subdivision, reverse split or combination
(assuming for such purposes that such dividend, distribution, split, subdivision, reverse split or combination has occurred as of such time) and the denominator of which shall be the actual number of Shares (determined without the above assumption)
issued and outstanding on the record date for such dividend, distribution, split, subdivision, reverse split or combination; 
 (b) if the
General Partner distributes any rights, options or warrants to all holders of its Shares to subscribe for or to purchase or to otherwise acquire Shares (or other securities or rights convertible into, exchangeable for or exercisable for Shares) at a
price per share less than the Value of a Share on the record date for such distribution (other than Shares issuable pursuant to a Qualified DRIP/COPP or as compensation to employees or other service providers) (each a “Distributed
Right”), then, as of the distribution date of such Distributed Rights or, if later, the time such Distributed Rights first become exercisable, the Conversion Factor shall be adjusted by multiplying the Conversion Factor previously in effect
by a fraction (a) the numerator of which shall be the number of Shares issued and outstanding on the record date (or, if later, the date such Distributed Rights first become exercisable) plus the maximum number of Shares purchasable under such
Distributed Rights and (b) the denominator of which shall be the number of Shares 

  
 -6- 

 
issued and outstanding on the record date (or, if later, the date such Distributed Rights first become exercisable) plus a fraction (1) the numerator of which is the maximum number of Shares
purchasable under such Distributed Rights times the minimum purchase price per Share under such Distributed Rights and (2) the denominator of which is the Value of a Share as of the record date (or, if later, the date such Distributed Rights
first become exercisable); provided, however, that if any such Distributed Rights expire or become no longer exercisable, then the Conversion Factor shall be adjusted, effective retroactive to the date of distribution of the
Distributed Rights, to reflect a reduced maximum number of Shares or any change in the minimum purchase price for the purposes of the above fraction; 

(c) if the General Partner shall, by dividend or otherwise, distribute to all holders of its Shares evidences of its indebtedness or assets
(including securities, but excluding any dividend or distribution referred to in subsection (i) above), which evidences of indebtedness or assets relate to assets not received by the General Partner or its Subsidiaries pursuant to a pro rata
distribution by the Partnership, then the Conversion Factor shall be adjusted to equal the amount determined by multiplying the Conversion Factor in effect immediately prior to the close of business on the date fixed for determination of
Stockholders entitled to receive such distribution by a fraction (i) the numerator of which shall be such Value of a Share on the date fixed for such determination and (ii) the denominator of which shall be the Value of a Share on the
dates fixed for such determination less the then fair market value (as determined by the General Partner, whose determination shall be conclusive) of the portion of the evidences of indebtedness or assets so distributed applicable to one Share; and

 (d) if an entity other than an Affiliate of the General Partner shall become General Partner pursuant to any merger, consolidation or
combination of the General Partner with or into another entity (the “Successor Entity”), the Conversion Factor shall be adjusted by multiplying the Conversion Factor by the number of shares of the Successor Entity into which one
Share is converted pursuant to such merger, consolidation or combination, determined as of the date of such merger, consolidation or combination. 

Notwithstanding the foregoing, no adjustments to the Conversion Factor will be made for any class or series of Partnership Interests to the extent that the
Partnership makes or effects any correlative distribution or payment to all of the Partners holding Partnership Interests of such class or series, or effects any correlative split or reverse split in respect of the Partnership Interests of such
class or series. Any adjustment to the Conversion Factor shall become effective immediately after the effective date of the event retroactive to the record date, if any, for the event giving rise thereto, it being intended that (x) adjustments
to the Conversion Factor are to be made to avoid unintended dilution or anti-dilution as a result of transactions in which Shares are issued, redeemed or exchanged without a corresponding issuance, redemption or exchange of Partnership Units and
(y) if a Specified Redemption Date shall fall between the record date and the effective date of any event of the type described above, the Conversion Factor applicable to such redemption shall be adjusted to take into account such event. 

“Conversion Notice” has the meaning set forth in Section 4.4.E(ii). 

“Conversion Right” has the meaning set forth in Section 4.4.E(i). 

  
 -7- 

 “Covered Person” means (i) the General Partner or an officer or director of
the General Partner, (ii) an officer of the Partnership, or (iii) any Person serving at the request of the Partnership or the General Partner as an officer, director, trustee, employee or agent of any Entity in which the Partnership or the
General Partner holds an Investment (excluding, for the avoidance of doubt, SU and its Subsidiaries). 
 “Debt” means, as
to any Person, as of any date of determination, (i) all indebtedness of such Person for borrowed money or for the deferred purchase price of property or services, (ii) all amounts owed by such Person to banks or other Persons in respect of
reimbursement obligations under letters of credit, surety bonds and other similar instruments guaranteeing payment or other performance of obligations by such Person, (iii) all indebtedness for borrowed money or for the deferred purchase price
of property or services secured by any lien on any property owned by such Person, to the extent attributable to such Person’s interest in such property, even though such Person has not assumed or become liable for the payment thereof, and
(iv) lease obligations of such Person that, in accordance with GAAP, should be capitalized. 
 “Depreciation” means,
for each Fiscal Year or other relevant period, an amount equal to the U.S. federal income tax depreciation, amortization, or other cost recovery deduction allowable with respect to an asset for such year or period, except that if the Carrying Value
of an asset differs from its adjusted basis for U.S. federal income tax purposes at the beginning of such year or other period, Depreciation shall be an amount which bears the same ratio to such beginning Carrying Value as the U.S. federal income
tax depreciation, amortization, or other cost recovery deduction for such year or period bears to such beginning adjusted tax basis; provided, however, that if the U.S. federal income tax depreciation, amortization, or other cost
recovery deduction for such year or period is zero, Depreciation shall be determined with reference to such beginning Carrying Value using any reasonable method selected by the General Partner. 

“Development Agreement” means that certain Development Agreement, dated as of January 29, 2015, between Hunt, SU, the General
Partner and the Partnership. 
 “Disregarded Entity” means, with respect to any Person, (i) any “qualified REIT
subsidiary” (within the meaning of Section 856(i)(2) of the Code) of such Person, (ii) any entity treated as a disregarded entity for U.S. federal income tax purposes with respect to such Person, or (iii) any grantor trust if the
sole owner of the assets of such trust for U.S. federal income tax purposes is such Person. 
 “Distributed Right” has the
meaning set forth in the definition of “Conversion Factor” herein. 
 “Economic Capital Account Balance” has the
meaning set forth in Section 6.5.I(iii). 
 “Electric Systems Project” means a business, project or assets
relating primarily to (i) the transmission or distribution of electricity or (ii) a vertically integrated electric utility. 

“Entity” means any partnership, limited partnership, proprietorship, corporation, joint venture, joint stock company, limited
liability company, limited liability partnership, business trust, estate, governmental entity, cooperative, association or other foreign or domestic enterprise, including accounts or funds managed by an investor or any of its Subsidiaries. 

  
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 “Equity Incentive Plan” has the meaning set forth in Section 4.4.A.

 “Equity Interests” means any shares of capital stock, membership interests, partnership interests or other equity
interests and options or warrants to acquire, or securities convertible into, capital stock, membership interests, partnership interests or other equity securities of an Entity. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as it may be amended from time to time, and any successor
statute. 
 “ETAT” has the meaning set forth in the recitals to this Agreement. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at the time of reference. 
 “FBO” has the
meaning set forth in Section 14.4.A. 
 “FERC” means the Federal Energy Regulatory Commission, or any successor
Governmental Authority. 
 “Fiscal Year” means, with respect to any Entity, the calendar year, unless the governing body or
governing documents of such Entity provide otherwise. 
 “Forced Conversion” has the meaning set forth in
Section 4.4.E(iii). 
 “Forced Conversion Notice” has the meaning set forth in Section 4.4.E(iii).

 “Funding Debt” means the incurrence of any Debt for the purpose of providing funds to the Partnership by or on behalf of
the General Partner or any of its Subsidiaries. 
 “GAAP” means generally accepted accounting principles in the United
States, as consistently applied by the General Partner and the Partnership. 
 “General Partner” means InfraREIT, Inc., or
its successor, in its capacity as the general partner of the Partnership. 
 “General Partner Loan” has the meaning set
forth in Section 4.3.E. 
 “General Partner Payment” has the meaning set forth in Section 10.7
hereof. 
 “General Partnership Interest” means a Partnership interest held by the General Partner that is a general
partnership interest. A General Partnership Interest may be expressed as a number of Partnership Units. 

  
 -9- 

 “Governmental Authority” means the government of any nation, state, province or
other political subdivision thereof or any other Person exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including the Securities Valuation Office of the National Association of
Insurance Commissioners or any similar or successor authority. 
 “Holder” means a holder of Partnership Units. 

“Hunt” means Hunt Transmission Services, L.L.C., a Delaware limited liability company, or its successors. 

“Hunt Employee Investor” means a Partner that is an employee of the Hunt Group. 

“Hunt Family Members” means (i) Ray L. Hunt; (ii) the spouse of Ray L. Hunt and each of his children and siblings;
(iii) the spouse and lineal descendants of any Person identified in the foregoing clause (ii); (iv) any trust or account primarily for the benefit of any Person or Persons identified in the foregoing clauses (i), (ii) or (iii);
(v) any corporation, partnership or other Entity in which any of the Persons identified in the foregoing clauses (i), (ii), (iii) or (iv) are the beneficial owners of substantially all of the Equity Interests; and (vi) the
personal representative or guardian of any of the Persons identified in the foregoing clauses (i), (ii) and (iii) upon such Person’s death for purposes of the administration of such Person’s estate or upon such Person’s
disability or incompetency for purposes of the protection and management of the assets of such Person. 
 “Hunt Group”
means (a) Ray L. Hunt and Hunter L. Hunt; (b) any lineal descendent of the foregoing (including by adoption); (c) any spouse of the foregoing; (d) any trust established primarily for the benefit of any one or more of the
foregoing; and (e) any Entity controlled, individually or collectively, by any of the foregoing Persons identified in the preceding clauses (a) and (d) (including Hunt and the Initial Limited Partner). 

“Hunt Group Member” means any member of the Hunt Group. 

“Immediate Family” means, with respect to any Partner who is a natural person, such Partner’s spouse, parents and
descendants (whether natural or adopted) and any trust for the benefit of such Partner and/or such Partner’s spouse, parents, descendants, nephews, nieces, brothers, and sisters, any of such Partner’s executors, administrators,
testamentary trustee, legatees or beneficiaries upon such Partner’s death or any Entity that is, directly or indirectly, wholly owned by such Partner and/or any of the foregoing Persons. 

“Incapacity” or “Incapacitated” means, (i) as to any individual who is a Partner, death, total physical
disability or entry by a court of competent jurisdiction adjudicating such Partner incompetent to manage his or her Person or estate; (ii) as to any corporation which is a Partner, the filing of a certificate of dissolution, or its equivalent,
for the corporation or the revocation of its charter; (iii) as to any partnership or limited liability company which is a Partner, the dissolution and commencement of winding up of the partnership or limited liability company; (iv) as to
any estate which is a Partner, the distribution by the fiduciary of the estate’s 

  
 -10- 

 
entire interest in the Partnership, as applicable; (v) as to any trust which is a Partner, the termination of the trust (but not the substitution of a new trustee) or (vi) as to any
Partner, the bankruptcy of such Partner. For purposes of this definition, bankruptcy of a Partner shall be deemed to have occurred when (a) the Partner commences a voluntary proceeding seeking liquidation, reorganization or other relief under
any bankruptcy, insolvency or other similar law now or hereafter in effect, (b) the Partner is adjudged by a court of competent jurisdiction as bankrupt or insolvent, or a final and nonappealable order for relief under any bankruptcy,
insolvency or similar law now or hereafter in effect has been entered against the Partner, (c) the Partner executes and delivers a general assignment for the benefit of the Partner’s creditors, (d) the Partner files an answer or other
pleading admitting or failing to contest the material allegations of a petition filed against the Partner in any proceeding of the nature described in clause (b) above, (e) the Partner seeks, consents to or acquiesces in the appointment of
a trustee, receiver or liquidator for the Partner or for all or any substantial part of the Partner’s properties, (f) any proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or other similar law
now or hereafter in effect has not been dismissed within one hundred twenty (120) days after the commencement thereof, (g) the appointment without the Partner’s consent or acquiescence of a trustee, receiver or liquidator for the
Partner or for all or any substantial part of the Partner’s properties has not been vacated or stayed within ninety (90) days of such appointment or (h) an appointment referred to in clause (g) is not vacated within ninety
(90) days after the expiration of any such stay. 
 “Initial Limited Partner” means Hunt-InfraREIT, L.L.C., a Delaware
limited liability company. 
 “Investment” means a Qualified Energy Project in which the Partnership owns an interest,
either directly or indirectly through another Entity. 
 “Investment Company Act” means the Investment Company Act of 1940,
as it may be amended from time to time, and any successor to such statute. 
 “IRS” means the Internal Revenue Service,
which administers the internal revenue laws of the United States. 
 “Limited Partner” means the Initial Limited Partner or
any other Person named as a Limited Partner in the Partner Registry in such Person’s capacity as a Limited Partner in the Partnership. 

“Limited Partnership Interest” means a Partnership Interest of a Limited Partner in the Partnership representing a fractional
part of the Partnership Interests of all Limited Partners and includes any and all benefits to which the holder of such a Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such Person to comply with
the terms and provisions of this Agreement. A Limited Partnership Interest may be expressed as a number of Partnership Units. For the avoidance of doubt, the General Partner may hold Limited Partnership Interests in addition to General Partnership
Interests. 
 “Liquidating Gains” has the meaning set forth in Section 6.5.I(iv). 

“Liquidating Events” has the meaning set forth in Section 13.1. 

  
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 “Liquidating Losses” has the meaning set forth in Section 6.5.I(v).

 “Liquidator” has the meaning set forth in Section 13.2.A. 

“LP Act” means the Delaware Revised Uniform Limited Partnership Act, as it may be amended from time to time, and any
successor to such statute. 
 “LTIP Unit” means a Partnership Unit designated as a LTIP Unit by the General Partner with
the preferences, conversion or other rights, voting power or rights, restrictions, limitation as to distributions, qualifications or other terms or conditions set forth in this Agreement. 

“majority in interest” has the meaning set forth in Section 13.1. 

“Management Agreement” means that certain Management Agreement, dated as of January 29, 2015, between Hunt Utility Services,
LLC, the General Partner and the Partnership. 
 “Market Disruption Event” means the occurrence or existence for more than
a one-half hour period in the aggregate on any scheduled Trading Day for the Public REIT Common Stock of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the stock exchange or otherwise)
in the Public REIT Common Stock or in any options, contracts or future contracts relating to the Public REIT Common Stock, and such suspension or limitation occurs or exists at any time before 1:00 p.m. (New York City time) on such day. 

“Market Price” on any date means, with respect to the Public REIT Common Stock, the last sale price for the Public REIT
Common Stock, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, for the Public REIT Common Stock, in either case as reported in the principal consolidated transaction
reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Public REIT Common Stock is not listed or admitted to trading on the New York Stock Exchange, as reported on the principal
consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Common stock is listed or admitted to trading or, if the Public REIT Common Stock is not listed or admitted to
trading on any national securities exchange, the last quoted price, or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the National Association of Securities Dealers, Inc. Automated
Quotation System or, if such system is no longer in use, the principal other automated quotation system that may then be in use or, if the Public REIT Common Stock is not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the Public REIT Common Stock selected by the General Partner or, in the event that no trading price is available for the Public REIT Common Stock, the fair market value of the
Public REIT Common Stock, as determined in good faith by the General Partner. 
 “MC Common Units” means the Common Units
held by MC Transmission as of the date hereof. 

  
 -12- 

 “MC Transmission” means MC Transmission Holdings, Inc., an Affiliate of Marubeni
Corporation. 
 “Net Income” means, for any taxable period, the excess, if any, of the Partnership’s items of income
and gain for such taxable period over the Partnership’s items of loss and deduction for such taxable period. The items included in the calculation of Net Income shall be determined in accordance with Section 6.2.B. If an item of
income, gain, loss or deduction that has been included in the initial computation of Net Income is subjected to the special allocation rules in Section 6.5, Net Income or the resulting Net Loss, whichever the case may be, shall be
recomputed without regard to such item. 
 “Net Loss” means, for any taxable period, the excess, if any, of the
Partnership’s items of loss and deduction for such taxable period over the Partnership’s items of income and gain for such taxable period. The items included in the calculation of Net Loss shall be determined in accordance with
Section 6.2.B. If an item of income, gain, loss or deduction that has been included in the initial computation of Net Loss is subjected to the special allocation rules in Section 6.5, Net Loss or the resulting Net Income,
whichever the case may be, shall be recomputed without regard to such item. 
 “New Securities” means (i) any rights,
options, warrants or convertible or exchangeable securities having the right to subscribe for or purchase Shares, excluding grants under any Equity Incentive Plan, or (ii) any Debt issued by the General Partner that provides any of the rights
described in clause (i). 
 “Nonrecourse Built-in Gain” means, with respect to any Contributed Properties or Adjusted
Properties that are subject to a mortgage or negative pledge securing a Nonrecourse Liability, the amount of any taxable gain that would be allocated to the Partners pursuant to Section 6.6.B if such properties were disposed of in a
taxable transaction in full satisfaction of such liabilities and for no other consideration. 
 “Nonrecourse Deductions”
has the meaning set forth in Regulations Section 1.704-2(b)(1), and the amount of Nonrecourse Deductions for a Fiscal Year or other relevant period shall be determined in accordance with the rules of Regulations
Section 1.704-2(c). 
 “Nonrecourse Liability” has the meaning set forth in
Regulations Section 1.752-1(a)(2). 
 “Notice” has the meaning set forth in Section 10.6. 

“Notice of Redemption” means a Notice of Redemption substantially in the form of Exhibit B. 

“Operating Entity” has the meaning set forth in Section 7.4.E. 

“Original Agreement” has the meaning set forth in the recitals to this Agreement. 

“Parent Entity” has the meaning set forth in Section 7.4.E. 

  
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 “Partner” means the General Partner or a Limited Partner, and
“Partners” means the General Partner and the Limited Partners. 
 “Partner Nonrecourse Debt” has the
meaning set forth in Regulations Section 1.704-2(b)(4). 
 “Partner Nonrecourse Debt Minimum Gain” means an amount,
with respect to each Partner Nonrecourse Debt, equal to the Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations Section 1.704-2(i)(3).

 “Partner Nonrecourse Deductions” has the meaning set forth in Regulations Section 1.704-2(i), and the amount of
Partner Nonrecourse Deductions with respect to a Partner Nonrecourse Debt for a Fiscal Year or other relevant period shall be determined in accordance with the rules of Regulations Section 1.704-2(i)(2). 

“Partner Registry” means the Partner Registry maintained by the General Partner in the books and records of the Partnership
in substantially the form of the Partner Registry attached as Exhibit A to this Agreement and in accordance with Section 7.1.A(xxiii). 

“Partnership” means the limited partnership formed under the LP Act upon the terms and conditions set forth in the Original
Agreement and continued pursuant to this Agreement, or any successor to such limited partnership. 
 “Partnership Interest”
means a Limited Partnership Interest or General Partnership Interest and includes any and all benefits to which the holder of such Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such Person to
comply with this Agreement. A Partnership Interest may be expressed as a number of Partnership Units. 
 “Partnership Minimum
Gain” has the meaning set forth in Regulations Section 1.704-2(b)(2), and the amount of Partnership Minimum Gain, as well as any net increase or decrease in Partnership Minimum Gain, for a Fiscal Year or other relevant period shall be
determined in accordance with the rules of Regulations Section 1.704-2(d). 
 “Partnership Record Date” means the
record date established by the General Partner either (i) for the distribution of Cash From Operations pursuant to Section 5.1 hereof, which record date shall be the same as the record date established by the General Partner for a
distribution to its Stockholders of some or all of its portion of such distribution, (ii) if applicable, for determining the Partners entitled to Consent to any proposed action for which the Consent of the Partners is sought pursuant to
Section 14.2 hereof, or (iii) for any other proper Partnership purpose. 
 “Partnership Unit” means a
fractional, undivided share of the Partnership Interests of all Partners issued pursuant to Sections 4.1 and 4.2 of this Agreement and includes Common Units and LTIP Units and any other classes or series of Partnership Units
established pursuant to this Agreement. 
 “Partnership Unit Designation” has the meaning set forth in
Section 4.2.A. 

  
 -14- 

 “Percentage Interest” means, as to a Partner holding a class or series of
Partnership Interests, its interest in such class or series, determined by dividing the Partnership Units of such class or series owned by such Partner by the total number of Partnership Units of such class or series then outstanding as specified in
the Partner Registry. If the Partnership shall at any time have outstanding more than one class or series of Partnership Interests, the Percentage Interest attributable to each class or series of Partnership Interests shall be determined as set
forth in the amendment to the Partnership Agreement setting forth the rights and privileges of such additional class or series of Partnership Interest, as contemplated by Section 4.2.A. 

“Permitted Transferee” means (i) with respect to the Initial Limited Partner or any Hunt Group Member, an assignee or
transferee of Partnership Units that is a Hunt Group Member, a Service Provider Entity or a current or former employee or service provider of any Hunt Group Member who has or receives the right to receive distributions or transfers of such
Partnership Units pursuant to an agreement or other arrangement with any Hunt Group Member or Service Provider Entity, (ii) with respect to any Service Provider Entity, an assignee or transferee of Partnership Units that is any other Service
Provider Entity or a current or former employee or service provider of any Hunt Group Member who has or receives the right to receive distributions or transfers of such Partnership Units pursuant to an agreement or other arrangement with any Hunt
Group Member or Service Provider Entity, and (iii) with respect to any other Limited Partner, an assignee or transferee of Partnership Units that is a member of such Partner’s Immediate Family. 

“Person” means any individual, corporation, proprietorship, firm, partnership, limited partnership, limited liability
company, trust, association or other Entity. 
 “Plan Asset Regulation” means the U.S. Department of Labor regulation
located at 29 C.F.R. Section 2510.3-101, or any successor regulation thereto, as in effect at the time of reference, as modified by Section 3(42) of ERISA. 

“Predecessor General Partner” has the meaning set forth in the recitals to this Agreement. 

“Preferred Unit” means a Partnership Unit that is entitled to a preference as compared to the class of Partnership Interests
corresponding to common shares of beneficial interest (or other comparable Equity Interest) of the General Partner. 
 “Prohibited
Party” has the meaning set forth in the definition of “Unacceptable Investor” in this Article I. 

“Public REIT Common Stock” means common stock of the General Partner, par value $0.01 per share. 

“Publicly Traded” means listed or admitted to trading on the New York Stock Exchange, the NYSE Amex, the NASDAQ Stock Market
or another national securities exchange, or any successor to any of the foregoing. 
 “Qualified DRIP/COPP” means a
dividend reinvestment plan or a cash option purchase plan of the General Partner that permits participants to acquire Shares using the 

  
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proceeds of dividends paid by the General Partner or cash of the participant, respectively; provided, however, that if such shares are offered at a discount, such discount must
(i) be designed to pass along to the Stockholders the savings enjoyed by the General Partner in connection with the avoidance of stock issuance costs, and (ii) not exceed 5% of the Value of a Share as computed under the terms of such plan.

 “Qualified Energy Project” means an Electric Systems Project located within North America. 

“Qualified REIT Subsidiary” means any Subsidiary of the General Partner that is a “qualified REIT subsidiary”
within the meaning of Section 856(i) of the Code. 
 “Qualified Transferee” means an “Accredited Investor”
as defined in Rule 501 promulgated under the Securities Act. 
 “Recapture Income” means any gain recognized by the
Partnership (computed without regard to any adjustment required by Section 734 or Section 743 of the Code) upon the disposition of any property or asset of the Partnership, which gain is characterized either as ordinary income or as
“unrecaptured Section 1250 gain” (as defined in Section 1(h)(6) of the Code) because it represents the recapture of deductions previously taken with respect to such property or asset. 

“Redeemed Interest” has the meaning set forth in Section 7.9.E(iii). 

“Redeemed Limited Partner” has the meaning set forth in Section 7.9.E(iii). 

“Redeeming Partner” has the meaning set forth in Section 8.6.A(i). 

“Redemption Amount” means either the Cash Amount or the Shares Amount, as determined by the General Partner, in its sole and
absolute discretion. A Redeeming Partner shall have no right, without the General Partner’s consent, in its sole and absolute discretion, to receive the Redemption Amount in the form of the Shares Amount. 

“Redemption Effective Date” has the meaning set forth in Section 7.9.E(iii). 

“Redemption Right” has the meaning set forth in Section 8.6.A(i). 

“Redemption Value” means, with respect to a Redeemed Interest, the fair market value of such Redeemed Interest as of the
applicable Redemption Effective Date, as determined in good faith by the General Partner; provided, that, if the Regulatory Issue is a result of a breach of a representation, warranty or covenant made by the Redeemed Limited Partner or a
change in law applicable to the Redeemed Limited Partner, the Redemption Value shall be (in each case as determined in good faith by the General Partner) the lesser of (i) the fair market value of such Redeemed Interest on the applicable
Redemption Effective Date and (ii) the fair market value of the Redeemed Interest on the date on which cash is allocated to make redemption payments. In making such determination of fair market value, the General Partner shall assume that all
of the assets of the Partnership will be sold on the applicable date in a commercially reasonable manner and the proceeds of such sale, net of estimated closing costs, as reasonably determined by the

  
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General Partner, and all obligations of the Partnership (other than the redemption of the Redeemed Interests being redeemed as of such date), will be distributed to the Partners pursuant to this
Agreement. With respect to a Regulatory Issue that is not a result of a breach of a representation, warranty or covenant made by the Redeemed Limited Partner or a change in law, if the majority of such Redeemed Limited Partners disagree with the
General Partner’s determination of the Redemption Value of the applicable interests in the Partnership, such Redeemed Limited Partners shall negotiate in good faith to resolve such disagreement, and if such Redeemed Limited Partners continue to
disagree after negotiations arc held, either side may request that an independent valuation firm (who must be reasonably acceptable to the other party) be retained, whose valuation shall be final and binding on the Partnership and all of the
Partners. The Partnership will bear the cost of such independent valuation firm. 
 “Regulated Investor” has the meaning
set forth in Section 7.9.E(ii). 
 “Regulations” means the Treasury Regulations promulgated under the Code, as
such regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 
 “Regulatory
Allocations” has the meaning set forth in Section 6.5.H. 
 “Regulatory Issue” has the meaning set
forth in Section 7.9.E(ii). 
 “REIT” means a real estate investment trust under Section 856 of the Code.

 “REIT IPO” means the initial public offering of the General Partner. 

“REIT Rules” means the requirements for qualification as a REIT under the Code and the Regulations. 

“Residual Gain” or “Residual Loss” means any item of gain or loss, as the case may be, of the Partnership
recognized for U.S. federal income tax purposes resulting from a sale, exchange or other disposition of Contributed Property or Adjusted Property, to the extent such item of gain or loss is not allocated pursuant to Section 6.6.B.(i)(a)
or 6.6.B.(ii)(a) to eliminate Book-Tax Disparities. 
 “Safe Harbors” has
the meaning set forth in Section 11.6.F. 
 “Second Amended and Restated Agreement” has the meaning set forth
in the recitals to this Agreement. 
 “Secretary of State” means the Secretary of State of the State of Delaware. 

“Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute, and the rules and regulations
of the Commission thereunder, all as the same shall be in effect at the time of reference. 

  
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 “Service Provider Entity” means any Entity primarily owned or controlled by
individuals that are current or former employees or service providers of the Partnership, any Hunt Group Member or any of their respective Affiliates. 

“Share” means a share of common stock or preferred stock of the General Partner issued upon or following consummation of the
REIT IPO. 
 “Shares Amount” means a number of Shares equal to the product of the number of Partnership Units offered for
redemption by a Redeeming Partner times the Conversion Factor; provided, that, if the General Partner issues to all holders of Shares rights, options, warrants or convertible or exchangeable securities entitling such holders to subscribe for
or purchase Shares or any other securities or property (collectively, the “rights”) and clause (ii) of the definition of “Conversion Factor” does not apply to the issuances of such rights, the Shares Amount shall also
include such rights that a holder of that number of Shares would be entitled to receive. 
 “Specified Redemption Date”
means the tenth (10th) Business Day after receipt by the General Partner of a Notice of Redemption (or such other date agreed to by the General Partner and the Limited Partner exercising its Redemption Right); provided, that, if the
Shares are not Publicly Traded, the Specified Redemption Date means the thirtieth (30th) Business Day after receipt by the General Partner of a Notice of Redemption (or such other date agreed to by the General Partner and the Limited Partner
exercising its Redemption Right). 
 “Stockholder” means a Person who holds any Shares of the General Partner in such
Person’s capacity as a Stockholder in the General Partner. 
 “SU” means Sharyland Utilities, L.P., a Texas limited
partnership. 
 “Subscription Agreement” means a subscription agreement (including the exhibits, annexes and the Investor
Questionnaire thereto) pursuant to which each Limited Partner subscribes for Partnership Units in the Partnership. 

“Subsidiary” means, with respect to any Person, any corporation, limited liability company, trust, partnership or joint
venture, or other Entity of which a majority of (i) the voting power of the voting equity securities or (ii) the outstanding Equity Interests is owned, directly or indirectly, by such Person. 

“Substituted Limited Partner” means a Person who is admitted as a Limited Partner to the Partnership pursuant to
Section 11.4 or any Partnership Unit Designation. 
 “Successor Entity” has the meaning set forth in the
definition of “Conversion Factor” herein. 
 “Surviving Partnership” has the meaning set forth in Section
11.2.B. 
 “System Lease” means a lease of an Investment to a third party (which may be an Affiliate of Hunt) to
operate such Investment. 
 “Target Balance” has the meaning set forth in Section 6.5.I. 

  
 -18- 

 “Terminating Capital Transaction” means any sale or other disposition of all or
substantially all of the assets of the Partnership for cash or a related series of transactions that, taken together, result in the sale or other disposition of all or substantially all of the assets of the Partnership for cash. 

“Termination Transaction” has the meaning set forth in Section 11.2.B. 

“Trading Day” means a day during which (i) trading in shares of Public REIT Common Stock generally occurs,
(ii) there is no Market Disruption Event and (iii) a Market Price for Public REIT Common Stock (other than a Market Price referred to in the last sentence of the definition thereof) is available for such day; provided, that, if the
shares of Public REIT Common Stock are not admitted for trading or quotation on or by any exchange, bureau or other organization referred to in the definition of Market Price (excluding the last sentence of that definition), Trading Day shall mean
any Business Day. 
 “Transaction” has the meaning set forth in Section 4.4.E(vi). 

“Transfer” means, whether by operation of law or otherwise, any sale, transfer, distribution, assignment, bequest, lease,
pledge, hypothecation, encumbrance, grant of a security interest in, or grant, issue, sale or conveyance of any option, warrant or right to acquire or to otherwise dispose of, transfer, or permit to be transferred, during life or at death (including
(a) the granting of any option or entering into any agreement for the sale, transfer or other disposition of Shares or Partnership Units, (b) the sale, transfer, assignment or other disposition of any securities or rights convertible into
or exchangeable for Shares or Partnership Units, but excluding (i) the exchange or conversion of any security of the General Partner for Shares or the Partnership for Partnership Units, as applicable, (ii) the redemption of Partnership
Units pursuant to Section 8.6 or any Partnership Unit Designation or (iii) any conversion of LTIP Units into Common Units pursuant to Section 4.4.E, (c) any transfer or other disposition of any interest in Shares or
Partnership Units as a result of a change in the marital status of the holder thereof, and (d) any change in the citizenship, or the country of formation, incorporation, organization or domicile, of the holder of Shares or Partnership Units).
For clarity, a “Transfer” shall include any transaction, occurrence or event described in the foregoing clauses (a), (b), (c) or (d) that is effected, occurs or arises directly or indirectly, including the sale, transfer or
assignment of a controlling interest in a Partner or by way of a merger, consolidation, business combination or similar transaction; provided, however, for any Partner which has issued securities of a class that are Publicly Traded (or
securities of a class which are similarly traded publicly on a securities exchange or market in any other jurisdiction), “Transfer” shall not include a sale of any such securities of a class which are so publicly traded. The term
“Transferred” shall have a correlative meaning. Notwithstanding anything to the contrary in this definition, a “Transfer” shall not include any sale, transfer, distribution, assignment or other disposition of an interest in the
Initial Limited Partner to a partnership or limited liability company whose partners or members consist solely of Hunt Employee Investors, the members of their respective Immediate Family or Hunt Family Members. 

“Unacceptable Investor” means any Partner who is (a) a “designated national,” “specially designated
national,” “specially designated terrorist,” “specially designated global terrorist,” “foreign terrorist organization,” or “blocked person” (any of these a “Prohibited 

  
 -19- 

 
Party”) within the definitions set forth in the Foreign Assets Control Regulations of the United States Treasury Department; (b) acting on behalf of, or a Person owned or
controlled by, any Prohibited Party or government against whom the United States maintains economic sanctions or embargoes under the regulations of the United States Treasury Department, including, but not limited to, the “Government of
Sudan,” the “Government of Iran,” and the “Government of Cuba”; (c) designated as a Prohibited Party by the United States Treasury Department pursuant to Executive Order 13224—Blocking Property and Prohibiting
Transactions with Persons who Commit, Threaten to Commit, or Support Terrorism, effective September 24, 2001; (d) designated as a Prohibited Party by the United States Treasury Department pursuant to any of the following statutes or
regulations and executive orders issued thereunder: the Trading with the Enemy Act, the Iraq Sanctions Act, the National Emergencies Act, the Antiterrorism and Effective Death Penalty Act of 1996, the International Emergency Economic Powers Act, the
United Nations Participation Act, the International Security and Development Cooperation Act, the Nuclear Proliferation Prevention Act of 1994, the Foreign Narcotics Kingpin Designation Act, the Cuban Democracy Act, the Cuban Liberty and Democratic
Solidarity Act, and the Foreign Operations, Export Financing, and Related Programs Appropriations Act and any similar laws enacted by the U.S.; and (e) designated as a Prohibited Party by the United States or any other government under laws,
regulations or executive orders similar to, or any other law, regulation or executive order of similar import as, those set forth above under the preceding clauses (a) through (d), whether as to the United States or any non-U.S. country, if and
to the extent such laws, regulations or executive orders are in effect, or as any of the laws, regulations or executive or other orders in the preceding clauses may be amended, supplemented, adjusted, modified, reviewed or interpreted from time to
time. 
 “United States” or “U.S.” means the United States of America, its territories and possessions,
any state of the United States and the District of Columbia. 
 “Unrealized Gain” attributable to any item of Partnership
property means, as of any date of determination, the excess, if any, of (i) the fair market value of such property (as determined under Section 6.2.D) as of such date, over (ii) the Carrying Value of such property (prior to any
adjustment to be made pursuant to Section 6.2.D) as of such date. 
 “Unrealized Loss” attributable to any item
of Partnership property means, as of any date of determination, the excess, if any, of (i) the Carrying Value of such property (prior to any adjustment to be made pursuant to Section 6.2.D) as of such date, over (ii) the fair
market value of such property (as determined under Section 6.2.D) as of such date. 
 “Unvested LTIP Units” has
the meaning set forth in Section 4.4.D(ii). 
 “Valuation Date” means the date of receipt by the General
Partner of a Notice of Redemption or, if such date is not a Business Day, the first Business Day thereafter. 
 “Value”
means, with respect to either (x) any outstanding Shares of the General Partner that are Publicly Traded, or (y) any Public REIT Common Stock, the average of the daily market price per share for the ten (10) consecutive trading days
immediately preceding the date with respect to which value must be determined. The market price for each such trading day shall be the closing price, regular way, on such day, as reported by the national exchange on which the

  
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Public REIT Common Stock is listed and traded, or if no such sale takes place on such day, the average of the closing bid and asked prices on such day. If the outstanding Shares of the General
Partner are Publicly Traded and the Shares Amount includes rights that a holder of Shares would be entitled to receive, then the Value of such rights shall be determined by the General Partner acting in good faith on the basis of such quotations and
other information as it considers, in its reasonable judgment, appropriate. If the Shares of the General Partner are not Publicly Traded, the Value of the Shares Amount per Partnership Unit offered for redemption (which will be the Cash Amount per
Partnership Unit offered for redemption payable pursuant to Section 8.6.A) means the amount that a holder of one Partnership Unit would receive if each of the assets of the Partnership were to be sold for their fair market value on the
Specified Redemption Date, the Partnership were to pay all of its outstanding liabilities, and the remaining proceeds were to be distributed to the Partners in accordance with the terms of this Agreement. Such Value shall be determined by the
General Partner, acting in good faith and based upon a commercially reasonable estimate of the amount that would be realized by the Partnership if each asset of the Partnership (and each asset of each partnership, limited liability company, trust,
joint venture or other Entity in which the Partnership owns a direct or indirect interest) were sold to an unrelated purchaser in an arms’ length transaction where neither the purchaser nor the seller were under economic compulsion to enter
into the transaction (without regard to any discount in value as a result of the Partnership’s minority interest in any property or any illiquidity of the Partnership’s interest in any property). In connection with determining the Value of
the Partnership Interest for purposes of determining the number of additional Partnership Units issuable upon a Capital Contribution funded by an underwritten public offering or an arm’s length private placement of shares of beneficial interest
(or other comparable Equity Interest) of the General Partner, the Value of such shares shall be the public offering or arm’s length private placement price per share of such class of beneficial interest (or other comparable Equity Interest)
sold. 
 “Vested LTIP Units” has the meaning set forth in Section 4.4.D(ii). 

ARTICLE II 

ORGANIZATIONAL MATTERS 

Section 2.1 Organization 

The Partnership is a limited partnership organized pursuant to the provisions of the LP Act and upon the terms and conditions set forth in the
Original Agreement. The Partners hereby agree to continue the business of the Partnership on the terms set forth in this Agreement. Except as expressly provided herein to the contrary, the rights and obligations of the Partners and the
administration and termination of the Partnership shall be governed by the LP Act. The Partnership Interest of each Partner shall be personal property for all purposes. 

Section 2.2 Name 

The name of the Partnership is “InfraREIT Partners, LP.” The Partnership’s business may be conducted under any other name or
names deemed advisable by the General Partner, including the name of the General Partner or any Affiliate thereof. The words “Limited Partnership,” “LP,” “Ltd.” or similar words or letters shall be included in the
Partnership’s name 

  
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where necessary for the purposes of complying with the laws of any jurisdiction that so requires. The General Partner in its sole and absolute discretion may change the name of the Partnership at
any time and from time to time and shall notify the Limited Partners of such change in the next regular communication to the Limited Partners. 

Section 2.3 Registered Office and Agent; Principal Office 

The address of the registered office of the Partnership in the State of Delaware shall be located at Corporation Trust Center, 1209 Orange
Street, Wilmington, County of New Castle, Delaware 19801, and the registered agent for service of process on the Partnership in the State of Delaware at such registered office shall be The Corporation Trust Company. The principal office of the
Partnership shall be located at 1807 Ross Avenue, 4th Floor, Dallas, Texas 75201, or such other place as the General Partner may from time to time designate by notice to the Limited Partners. The
Partnership may maintain offices at such other place or places within or outside the State of Delaware as the General Partner deems advisable. 

Section 2.4 Power of Attorney 

A. Each Limited Partner and each Assignee constitutes and appoints each of the General Partner and any Liquidator (and any successor to any
thereof by merger, transfer, assignment, election or otherwise) and each of the authorized officers and attorneys-in-fact of each of the foregoing, and each of those acting singly, in each case, with full power of substitution, as its true and
lawful agent and attorney-in-fact, with full power and authority in its name, place and stead to: 
 (i) execute, swear to,
acknowledge, deliver, file and record in the appropriate public offices: (a) all certificates, documents and other instruments (including this Agreement and the Certificate and all amendments or restatements thereof) that the General Partner or
any Liquidator, as applicable, deems appropriate or necessary to form, qualify or continue the existence or qualification of the Partnership as a limited partnership (or a partnership in which the limited partners have limited liability) in the
State of Delaware and in all other jurisdictions in which the Partnership may conduct business or own property; (b) all instruments that the General Partner or any Liquidator, as applicable, deems appropriate or necessary to reflect any
amendment, change, modification or restatement of this Agreement made in accordance with the terms of this Agreement; (c) all conveyances and other instruments or documents that the General Partner or any Liquidator, as applicable, deems
appropriate or necessary to reflect the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement, including a certificate of cancellation; (d) all instruments relating to the admission, withdrawal, removal or
substitution of any Partner pursuant to, or other events described in, Articles XI, XII or XIII or the Capital Contribution of any Partner; and (e) all certificates, documents and other instruments relating to the
determination of the rights, preferences and privileges of Partnership Units, including any class of Partnership Units issued pursuant to Article IV; and 

  
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 (ii) execute, swear to, acknowledge and file all ballots, consents, approvals,
waivers, certificates and other instruments appropriate or necessary, in the sole discretion of the General Partner or any Liquidator, as applicable, to make, evidence, give, confirm or ratify any vote, consent, approval, agreement or other action
which is made or given by the Partners hereunder or is consistent with the terms of this Agreement or appropriate or necessary, in the discretion of the General Partner or any Liquidator, as applicable, to effectuate the terms or intent of this
Agreement. 
 Nothing contained in this Section 2.4 shall be construed as authorizing the General Partner or any Liquidator, as applicable, to
amend this Agreement except in accordance with Article XIV or as may be otherwise expressly provided for in this Agreement. 
 B. The
foregoing power of attorney is hereby declared to be irrevocable and a power coupled with an interest, in recognition of the fact that each of the Partners will be relying upon the power of the General Partner and any Liquidator, as applicable, to
act as contemplated by this Agreement in any filing or other action by it on behalf of the Partnership, and it shall survive and not be affected by the subsequent Incapacity of any Limited Partner or Assignee or the Transfer of all or any portion of
such Limited Partner’s or Assignee’s Partnership Units or Partnership Interests and shall extend to such Limited Partner’s or Assignee’s heirs, successors, assigns and personal representatives. Each such Limited Partner or
Assignee hereby agrees to be bound by any representation made by the General Partner or any Liquidator, as applicable, acting in good faith pursuant to such power of attorney; and each such Limited Partner or Assignee hereby waives any and all
defenses which may be available to it to contest, negate or disaffirm the action of the General Partner or any Liquidator, as applicable, taken in good faith under such power of attorney. Each Limited Partner or Assignee shall execute and deliver to
the General Partner or any Liquidator, as applicable, within 15 days after receipt of the General Partner’s or Liquidator’s, as applicable, request therefor, such further designation, powers of attorney and other instruments as the General
Partner or the Liquidator, as the case may be, deems necessary to effectuate this Agreement and the purposes of the Partnership. 

Section 2.5 Term 

The term of the Partnership commenced on December 16, 2009, and shall continue in existence until the dissolution and termination of the
Partnership pursuant to the provisions of Article XIII or as otherwise provided by Applicable Law. 
 ARTICLE III 

PURPOSE 

Section 3.1 Purpose and Business 

The purpose and nature of the business to be conducted by the Partnership is: 

(i) to conduct any business that may be lawfully conducted by a limited partnership organized pursuant to the LP Act; 

(ii) to engage in activities necessary, incidental or ancillary thereto; and 

  
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 (iii) to invest in or enter into any corporation, partnership, joint venture,
trust, limited liability company or other Entity to engage in any of the foregoing or acquire ownership of interests in any Entity engaged, directly or indirectly, in any of the foregoing; provided, however, that such business shall be
limited to and conducted in such a manner as to permit the General Partner at all times to be classified as a REIT unless the General Partner, in accordance with its Charter and the Bylaws, determines in its sole and absolute discretion, that it is
no longer in the best interests of the General Partner to continue to qualify as a REIT, in which case the General Partner may revoke or otherwise terminate the General Partner’s REIT election pursuant to applicable U.S. federal income tax law
and elect to be treated thereafter as a C corporation, partnership or other type of Entity as it determines in accordance with applicable U.S. federal income tax law. Without limiting the generality of the foregoing, the Partners acknowledge that
the status of the General Partner as a REIT inures to the benefit of all the Partners and not solely to the General Partner or its Affiliates. 

Section 3.2 Powers 

The Partnership is empowered to do any and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient for the
furtherance and accomplishment of the purposes and business described herein and for the protection and benefit of the Partnership, including full power and authority, directly or through its ownership interest in other Entities, to enter into,
perform and carry out contracts of any kind, borrow money and issue evidences of indebtedness, whether or not secured by mortgage, deed of trust, pledge or other lien, acquire, own, manage, improve and develop real property, and lease, sell,
transfer and dispose of real property; provided, however, that the Partnership shall not take, or shall refrain from taking, any action which, in the judgment of the General Partner, in its sole and absolute discretion, (i) could
adversely affect the ability of the General Partner to continue to qualify as a REIT, or could subject the General Partner to any taxes under Section 856, Section 857 or Section 4981 of the Code, unless the General Partner, as
provided in Section 3.1, has previously determined to terminate its REIT election for U.S. federal income tax purposes or (ii) could violate any law or regulation of any governmental body or agency having jurisdiction over either
the General Partner or its securities. 
 Section 3.3 Partnership Only for Purposes Specified 

The Partnership shall be a partnership only for tax purposes and the purposes specified in Section 3.1, and this Agreement shall
not be deemed to create a partnership among the Partners with respect to any activities whatsoever other than the activities within such purposes. Except as otherwise expressly provided in this Agreement, no Limited Partner shall have any authority
to act for, bind, commit or assume any obligation or responsibility on behalf of the Partnership, its properties or any other Partner. No Partner, in its capacity as a Partner under this Agreement, shall be responsible or liable for any indebtedness
or obligation of another Partner, nor shall the Partnership be responsible or liable for any indebtedness or obligation of any Partner, incurred either before or after the execution and delivery of this Agreement by such Partner, except as to those
responsibilities, liabilities, indebtedness or obligations incurred or assumed pursuant to and as limited by the terms of this Agreement and the LP Act. 

  
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 Section 3.4 Representations and Warranties by the Parties 

A. Each Partner that is an individual (including, without limitation, each Additional Limited Partner or Substituted Limited Partner as a
condition to becoming an Additional Limited Partner or a Substituted Limited Partner) represents and warrants to, and covenants with, each other Partner that (i) the consummation of the transactions contemplated by this Agreement to be
performed by such Partner will not result in a breach or violation of, or a default under, any material agreement by which such Partner or any of such Partner’s property is bound, or any statute, regulation, order or other law to which such
Partner is subject, (ii) if 5% or more (by value) of the Partnership’s interests are or will be owned by such Partner within the meaning of Section 7704(d)(3) of the Code, such Partner does not, and for so long as it is a Partner will
not, own, directly or indirectly, (a) stock of any corporation that is a tenant of (I) the General Partner or any Disregarded Entity with respect to the General Partner, (II) the Partnership or (III) any partnership, venture or limited
liability company of which the General Partner, any Disregarded Entity with respect to the General Partner, or the Partnership is a direct or indirect member or (b) an interest in the capital or net profits of any non-corporate tenant of
(I) the General Partner or any Disregarded Entity with respect to the General Partner, (II) the Partnership or (III) any partnership, venture, or limited liability company of which the General Partner, any Disregarded Entity with respect to the
General Partner, or the Partnership is a direct or indirect member, (iii) such Partner has the legal capacity to enter into this Agreement and perform such Partner’s obligations hereunder, and (iv) this Agreement is binding upon, and
enforceable against, such Partner in accordance with its terms. Notwithstanding the foregoing, a Partner that is an individual shall not be subject to the ownership restrictions set forth in clause (ii) of the immediately preceding sentence to
the extent such Partner obtains the written Consent of the General Partner prior to violating any such restrictions. Each Partner that is an individual shall also represent and warrant to the Partnership that such Partner is neither a “foreign
person” within the meaning of Section 1445(f) of the Code nor a foreign partner within the meaning of Section 1446(e) of the Code. 

B. Each Partner that is not an individual (including, without limitation, each Additional Limited Partner or Substituted Limited Partner as a
condition to becoming an Additional Limited Partner or a Substituted Limited Partner) represents and warrants to, and covenants with, each other Partner that (i) all transactions contemplated by this Agreement to be performed by it have been
duly authorized by all necessary action, including, without limitation, that of its general partner(s), committee(s), trustee(s), beneficiaries, directors and/or stockholder(s) (as the case may be) as required, (ii) the consummation of such
transactions shall not result in a breach or violation of, or a default under, its partnership or operating agreement, trust agreement, charter or bylaws (as the case may be) any material agreement by which such Partner or any of such Partner’s
properties or any of its partners, members, beneficiaries, trustees or stockholders (as the case may be) is or are bound, or any statute, regulation, order or other law to which such Partner or any of its partners, members, trustees, beneficiaries
or stockholders (as the case may be) is or are subject, (iii) if 5% or more (by value) of the Partnership’s interests are or will be owned by such Partner within the meaning of Section 7704(d)(3) of the Code, such Partner does not,
and for so long as it is a Partner will not, own, directly or indirectly, (a) stock of any corporation that is a tenant of (I) the General Partner or any Disregarded Entity with respect to the General Partner, (II) the Partnership or (III)
any partnership, venture or limited liability company of which the General Partner, any Disregarded Entity with respect to the General Partner, or the Partnership is a direct or indirect member or (b) an interest in the capital or net profits
of any non-corporate tenant of (I) the General Partner or any Disregarded Entity with respect to the General Partner, (II) the Partnership or (III) any partnership, venture, or limited liability company of which the General Partner, any
Disregarded Entity with respect to the General 

  
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Partner, or the Partnership is a direct or indirect member, and (iv) this Agreement is binding upon, and enforceable against, such Partner in accordance with its terms. Notwithstanding the
foregoing, (x) none of the Initial Limited Partner, MC Transmission or their respective Affiliates shall be subject to the ownership restrictions set forth in clause (iii) of the immediately preceding sentence and (y) any other
Partner that is not an individual shall not be subject to the ownership restrictions set forth in clause (iii) of the immediately preceding sentence to the extent such Partner obtains the written Consent of the General Partner prior to
violating any such restrictions. Each Partner that is not an individual shall also represent and warrant to the Partnership that such Partner is neither a “foreign person” within the meaning of Section 1445(f) of the Code nor a
foreign partner within the meaning of Section 1446(e) of the Code. 
 C. Each Partner (including, without limitation, each Additional
Limited Partner or Substituted Limited Partner as a condition to becoming an Additional Limited Partner or Substituted Limited Partner) represents, warrants and agrees that (i) it has acquired and continues to hold its interest in the
Partnership for its own account for investment purposes only and not for the purpose of, or with a view toward, the resale or distribution of all or any part thereof in violation of applicable laws, and not with a view toward selling or otherwise
distributing such interest or any part thereof at any particular time or under any predetermined circumstances in violation of applicable laws and (ii) it is a sophisticated investor, able and accustomed to handling sophisticated financial
matters for itself, particularly real estate investments, and that it has a sufficiently high net worth that it does not anticipate a need for the funds that it has invested in the Partnership in what it understands to be a highly speculative and
illiquid investment. 
 D. The representations and warranties contained in Sections 3.4.A, 3.4.B and 3.4.C hereof shall
survive the execution and delivery of this Agreement by each Partner (and, in the case of an Additional Limited Partner or a Substituted Limited Partner, the admission of such Additional Limited Partner or Substituted Limited Partner as a Limited
Partner in the Partnership) and the dissolution, liquidation and termination of the Partnership. 
 E. Each Partner (including, without
limitation, each Additional Limited Partner or Substituted Limited Partner as a condition to becoming an Additional Limited Partner or Substituted Limited Partner) hereby acknowledges that no representations as to potential profit, cash flows, funds
from operations or yield, if any, in respect of the Partnership or the General Partner have been made by any Partner or any employee or representative or Affiliate of any Partner, and that projections and any other information, including, without
limitation, financial and descriptive information and documentation, that may have been in any manner submitted to such Partner shall not constitute any representation or warranty of any kind or nature, express or implied. 

F. Notwithstanding the foregoing, the General Partner may, in its sole and absolute discretion, permit the modification of any of the
representations and warranties 

  
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contained in Sections 3.4.A, 3.4.B and 3.4.C above as applicable to any Partner (including, without limitation any Additional Limited Partner or Substituted Limited Partner
or any transferee of either), provided that such representations and warranties, as modified, shall be set forth in either (i) a Partnership Unit Designation applicable to the Partnership Units held by such Partner or (ii) a separate
writing addressed to the Partnership and the General Partner. 
 ARTICLE IV 

CAPITAL CONTRIBUTIONS AND ISSUANCES 

OF PARTNERSHIP INTERESTS 

Section 4.1 Capital Contributions of the Partners 

Each Partner has made (or shall be deemed to have made) the Capital Contributions to the Partnership and owns Partnership Units in the
respective amounts set forth for such Partner in the Partner Registry, as the same may be amended from time to time by the General Partner to the extent necessary to reflect accurately sales, exchanges, conversions or other Transfers, redemptions,
Capital Contributions, the issuance of additional Partnership Units or similar events having an effect on a Partner’s ownership of Partnership Units occurring after the date hereof in accordance with the terms of this Agreement. The Partner
Registry attached as Exhibit A hereto gives effect to all prior issuances of Partnership Units as of the date hereof. Except as provided in Sections 10.5 and 13.3 hereof or as may be provided in another agreement between the
Partnership and any Partner, the Partners shall have no obligation to make any additional Capital Contributions or provide any additional funding to the Partnership (whether in the form of loans, repayments of loans or otherwise). Except as
otherwise set forth in Section 13.3 hereof, no Partner shall have any obligation to restore any deficit that may exist in its Capital Account, either upon a liquidation of the Partnership or otherwise. 

Section 4.2 Issuances of Partnership Interests 

Subject to the rights of any Holder of any Partnership Units set forth in a Partnership Unit Designation: 

A. General. Subject to Section 7.9.E hereof, the General Partner may cause the Partnership from time to time to issue
additional Partnership Interests, in the form of Partnership Units, for any Partnership purpose, to the Partners (including the General Partner and its Affiliates) or other Persons (including in connection with any agreement to which the Partnership
is a party with respect to Contributed Property or otherwise) and to admit such Persons as Additional Limited Partners, for such consideration and on such terms and conditions as shall be established by the General Partner in its sole and absolute
discretion, subject to Delaware law, all without the approval of any Limited Partners. Without limiting the foregoing, the Partnership is expressly authorized to cause the Partnership to issue Partnership Units (i) upon the conversion,
redemption or exchange of any Debt, Partnership Units or other securities issued by the Partnership, (ii) for less than fair market value, so long as the General Partner concludes in good faith that such issuance is in the best interest of the
Stockholders and the Partnership, (iii) in connection with any merger of any other Person into the Partnership or any Subsidiary of the Partnership if the applicable merger agreement provides that Persons are to

  
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receive Partnership Units in exchange for their interests in the Person merging into the Partnership or any Subsidiary of the Partnership, (iv) in consideration for services rendered to or
for the benefit of the Partnership and (v) pursuant to the provisions of the Management Agreement, Development Agreement or any other agreement to which the Partnership is a party. Subject to Delaware law, any additional Partnership Units may
be issued in one or more classes, or in one or more series of any of such classes, with such designations, preferences and relative, participating, optional or other special rights, powers and duties (including rights, powers and duties senior to
existing classes of Partnership Units), all as shall be determined by the General Partner in its sole and absolute discretion without the approval of any Limited Partner or any other Person, and set forth in a written document thereafter attached to
and made an exhibit to this Agreement, which exhibit shall be an amendment to this Agreement and shall be incorporated herein by reference (each, a “Partnership Unit Designation”), without the approval of any Limited Partner or any
other Person. Without limiting the generality of the foregoing, the General Partner shall have authority to specify: (i) the allocations of items of Partnership income, gain, loss, deduction and credit to each such class or series of
Partnership Interests, (ii) the right of each such class or series of Partnership Interests to share in Partnership distributions, (iii) the rights of each such class or series of Partnership Interests upon dissolution and liquidation of
the Partnership, (iv) the voting rights, if any, of each such class or series of Partnership Interests, (v) the conversion, redemption or exchange rights applicable to each such class or series of Partnership Interests, and (vi) any
vesting conditions applicable to such class or series of Partnership Interests. Upon the issuance of any additional Partnership Interests, the General Partner shall amend the Partner Registry as appropriate to reflect such issuance. 

B. Issuances to the General Partner. No additional Partnership Units shall be issued to the General Partner unless (i) the
additional Partnership Units are issued to all Partners in proportion to their respective Percentage Interests with respect to the class of Partnership Units so issued, (ii) the additional Partnership Units are issued in connection with an
issuance of Shares and the General Partner directly or indirectly contributes or otherwise causes to be transferred to the Partnership the net cash proceeds or other net consideration, if any, received in connection with the issuance of such Shares,
or (iii) the additional Partnership Units are issued upon the conversion, redemption or exchange of Debt or other securities issued by the Partnership. If the Partnership issues Partnership Interests pursuant to this Section 4.2,
the General Partner shall make such revisions to this Agreement as it deems necessary to reflect the issuance of such Partnership Interests. 

C. Classes of Partnership Units. Subject to Section 4.2.B above, as of the date hereof the Partnership has two
(2) classes of Partnership Units entitled “Common Units” and “LTIP Units.” 
 (i)
Common Units may be issued by the General Partner in accordance with Section 4.2.A; provided, that any Partnership Unit that is not specifically designated by the General Partner as being of a particular class shall be deemed to
be a Common Unit. 
 (ii) LTIP Units, at the election of the General Partner in its sole and absolute discretion, but subject
to Sections 4.4.C, 4.4.D and 4.4.E, may be issued to newly admitted Partners as consideration for the performance of past or future services on behalf of the General Partner, the Partnership, or its Subsidiaries. 

  
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 D. Certificates for Partnership Units. The Partnership Units shall be uncertificated;
provided, however, that the General Partner may provide otherwise as to some or all of any classes or series of the Partnership Units; provided, further, that any Partner will be entitled, upon request, to receive a
certificate representing the Partnership Units held by such Partner in connection with a pledge of such Partnership Units permitted pursuant to Section 11.3. All Partnership Units held by a Partner shall be securities within the meaning
of, and governed by, (i) Article 8 of the Delaware Uniform Commercial Code and (ii) Article 8 of the Uniform Commercial Code of any other applicable jurisdiction. 

Section 4.3 Additional Funds and Capital Contributions. 

A. General. The General Partner may, at any time and from time to time, determine that the Partnership requires additional funds
(“Additional Funds”) for the acquisition of additional Partnership assets, for the redemption of Partnership Units or for such other Partnership purposes as the General Partner may determine in its sole and absolute discretion.
Additional Funds may be raised by the Partnership, at the election of the General Partner, in any manner provided in, and in accordance with, the terms of this Section 4.3. No Person shall have any preemptive, preferential or similar
right or rights to subscribe for or acquire any Partnership Interests. 
 B. Additional Capital Contributions. The Partnership may
raise all or any portion of such Additional Funds by accepting additional Capital Contributions from the Partners or from third parties on terms and conditions as shall be determined by the General Partner. In connection with any such additional
Capital Contributions (of cash or property), the General Partner is hereby authorized and directed to cause the Partnership to issue additional Partnership Units. In the event that the Partnership accepts additional Capital Contributions pursuant to
this Section 4.3.B, the General Partner shall make such additional revisions to this Agreement (including the Partner Registry) as are consistent with and necessary to reflect such additional Capital Contributions. 

C. Issuance of Securities by the General Partner. The General Partner shall not issue any additional Shares unless the General Partner
contributes directly or indirectly the cash proceeds or other consideration, if any, received from the issuance of such additional Shares to the Partnership in exchange for Partnership Units; provided, however, that notwithstanding the
foregoing, the General Partner may issue Shares (i) pursuant to Section 8.6, (ii) pursuant to a dividend or distribution (including any stock split) or otherwise pursuant to which there is an adjustment to the Conversion Factor
pursuant to the definition thereof, or (iii) pursuant to share grants or awards made pursuant to any Equity Incentive Plan. In the event of any issuance of additional Shares by the General Partner, and the direct or indirect contribution to the
Partnership, by the General Partner, of the cash proceeds or other consideration received from such issuance, the Partnership shall pay the General Partner’s expenses associated with such issuance, including any underwriting discounts or
commissions (it being understood that if the proceeds actually received by the General Partner are less than the gross proceeds of such issuance as a result of any underwriter’s discount or other expenses paid or incurred by the

  
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General Partner in connection with such issuance, then the General Partner shall be deemed to have made a Capital Contribution to the Partnership in the amount of the gross proceeds of such
issuance and the Partnership shall be deemed simultaneously to have reimbursed the General Partner for the amount of, or paid directly, as the case may be, such underwriter’s discount or other expenses). 

D. Loans by Third Parties. The General Partner, on behalf of the Partnership, may obtain any Additional Funds by causing the
Partnership to incur Debt to any Person upon such terms as the General Partner determines appropriate, including making such Debt convertible, redeemable or exchangeable for Partnership Units; provided, however, that the Partnership
shall not incur any such Debt if any Partner would be personally liable for the repayment of such Debt (unless such Partner otherwise agrees). 

E. General Partner Loans. The General Partner, on behalf of the Partnership, may obtain any Additional Funds by causing the Partnership
to incur Debt with the General Partner (a “General Partner Loan”), if (i) such Debt is, to the extent permitted by Applicable Law, on substantially the same terms and conditions (including interest rate, repayment schedule, and
conversion, redemption, repurchase and exchange rights) as Funding Debt incurred by the General Partner, the net proceeds of which are loaned to the Partnership to provide such Additional Funds or (ii) such Debt is on terms and conditions no
less favorable to the Partnership than would be available to the Partnership from any third party; provided, however, that the Partnership shall not incur any such Debt if (a) a breach, violation or default of such Debt would be
deemed to occur by virtue of the Transfer by any Limited Partner of any Partnership Interest or (b) such Debt is recourse to any Partner (unless such Partner otherwise agrees). 

Section 4.4 Equity Incentive Plan 

A. Establishment of Equity Incentive Plan. Nothing in this Agreement shall be construed or applied to preclude or restrain the General
Partner from adopting, modifying or terminating stock incentive plans for the benefit of employees, directors or other business associates of the General Partner, the Partnership or any of their Affiliates (“Equity Incentive
Plans”). The General Partner may implement such Equity Incentive Plans and any actions taken under such plans (such as the grant or exercise of options to acquire Shares or Partnership Units, the issuance of restricted Shares or Partnership
Units, or the issuance of LTIP Units), whether taken with respect to or by an employee or other service provider of the General Partner, the Partnership or its Subsidiaries, in a manner reasonably determined by the General Partner, which may be set
forth in plan implementation guidelines and/or Award Agreements that the General Partner may establish or amend from time to time. The Partners acknowledge and agree that, in the event that any such Equity Incentive Plan is adopted, modified or
terminated by the General Partner, amendments to this Agreement may become necessary or advisable and that any such amendments requested by the General Partner shall not require any Consent or approval by the Limited Partners. The Partnership is
expressly authorized to issue Partnership Units as contemplated by this Section 4.4 without any further act, approval or vote of any Partner or any other Persons. 

B. Options Granted or Other Issuances of Shares. If at any time or from time to time, in connection with an Equity Incentive Plan, a
stock option to acquire Shares is duly 

  
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exercised or any Shares are otherwise issued (e.g., an award of restricted stock), (i) the General Partner shall, as soon as practicable after such exercise or issuance, make or cause to be
made directly or indirectly a Capital Contribution to the Partnership in an amount equal to the exercise price (if any) paid to the General Partner by such exercising party in connection with the exercise of such stock option or recipient in
connection with such other issuance of Shares and (ii) notwithstanding the amount of the Capital Contribution (if any) actually made upon any such exercise or issuance, the General Partner shall be deemed to have contributed directly or
indirectly to the Partnership, as a Capital Contribution, in consideration of an additional Limited Partnership Interest (expressed in and as additional Partnership Units), an amount equal to the Value of a Share as of the date of exercise or
issuance multiplied by the number of Shares then being issued in connection with the exercise of such stock option or otherwise. For purposes of this Section 4.4.B, in determining the Value of a Share, only the trading date immediately
preceding the exercise of the relevant stock option or other issuance of Shares under the Equity Incentive Plan shall be considered. 
 C.
Issuance of LTIP Units. The General Partner may from time to time issue LTIP Units to Persons who provide services to or for the benefit of the Partnership or its Subsidiaries, for such consideration as the General Partner may determine to be
appropriate, and admit such Persons as Limited Partners. Subject to the provisions of this Section 4.4, LTIP Units shall be treated as Common Units, with all of the rights, privileges and obligations attendant thereto. For purposes of
computing the Partners’ Percentage Interests, Holders of LTIP Units shall be treated as holders of Common Units and LTIP Units shall be treated as Common Units. In particular, the Partnership shall maintain at all times a one-to-one
correspondence between LTIP Units and Common Units for conversion, distribution and other purposes, including without limitation complying with the following procedures: 

(i) If an Adjustment Event (as defined below) occurs, then the General Partner shall make a corresponding adjustment to the
LTIP Units to maintain a one-for-one conversion and economic equivalence ratio between Common Units and LTIP Units. The following shall be “Adjustment Events”: (A) the Partnership makes a distribution on all outstanding Common
Units in Partnership Units, (B) the Partnership subdivides the outstanding Common Units into a greater number of units or combines the outstanding Common Units into a smaller number of units, or (C) the Partnership issues any Partnership
Units in exchange for its outstanding Common Units by way of a reclassification or recapitalization of its Common Units. If more than one Adjustment Event occurs, the adjustment to the LTIP Units need be made only once using a single formula that
takes into account each and every Adjustment Event as if all Adjustment Events occurred simultaneously. For the avoidance of doubt, the following shall not be Adjustment Events: (x) the issuance of Partnership Units in a financing,
reorganization, acquisition or other similar business transaction, (y) the issuance of Partnership Units pursuant to any employee benefit or compensation plan or distribution reinvestment plan, or (z) the issuance of any Partnership Units
to the General Partner in respect of a Capital Contribution to the Partnership of proceeds from the sale of securities by the General Partner. If the Partnership takes an action affecting the Common Units other than actions specifically described
above as “Adjustment Events” and in the opinion of the General Partner such action would require an adjustment to the LTIP Units to maintain the one-to-one correspondence 

  
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described above, the General Partner shall have the right to make such adjustment to the LTIP Units, to the extent permitted by law and by any Equity Incentive Plan, in such manner and at such
time as the General Partner, in its sole discretion, may determine to be appropriate under the circumstances. If an adjustment is made to the LTIP Units as herein provided, the Partnership shall promptly file in the books and records of the
Partnership an officer’s certificate setting forth such adjustment and a brief statement of the facts requiring such adjustment, which certificate shall be conclusive evidence of the correctness of such adjustment absent manifest error.
Promptly after the filing of such certificate, the Partnership shall mail a notice to each Holder of a LTIP Unit setting forth the adjustment to his or her LTIP Units and the effective date of such adjustment; and 

(ii) The Holders of LTIP Units shall, when, as and if authorized and declared by the General Partner out of assets legally
available for that purpose, be entitled to receive distributions in an amount per LTIP Unit equal to the distributions per Common Unit, paid to holders of Common Units on such Partnership Record Date established by the General Partner with respect
to such distribution. So long as any LTIP Units are outstanding, no distributions (whether in cash or in kind) shall be authorized, declared or paid on Common Units, unless equal distributions have been or contemporaneously are authorized, declared
and paid on the LTIP Units. Subject to the terms of any Award Agreement, a Holder of a LTIP Unit shall be entitled to transfer his or her LTIP Units to the same extent, and subject to the same restrictions as holders of Common Units are entitled to
transfer their Common Units pursuant to Article XI of this Agreement. 
 D. Special Provisions Applicable to LTIP Units. 

(i) Priority. Subject to the provisions of this Section 4.4.D and Section 4.4.E, the LTIP Units
shall rank pari passu with the Common Units as to the payment of regular and special periodic or other distributions. Immediately prior to any liquidation, dissolution or winding up of the Partnership, the General Partner shall exercise its right to
cause a Forced Conversion with respect to the maximum number of LTIP Units then eligible for conversion, taking into account any allocations that occur in connection with the liquidation, dissolution or winding up, at a value determined by the
General Partner in good faith using the value attributed to the Partnership Units in the context of the liquidation, dissolution or winding up (in which case the Conversion Date shall be the effective date of the liquidation, dissolution or winding
up). As to the payment of distributions and as to distribution of assets upon liquidation, dissolution or winding up, any class or series of Partnership Units or Partnership Interests which by its terms specifies that it shall rank junior to, on a
parity with, or senior to the Common Units shall also rank junior to, or pari passu with, or senior to, as the case may be, the LTIP Units. 

(ii) Award Agreements; Vesting. LTIP Units may, in the sole discretion of the General Partner, be issued subject to such
vesting, forfeiture and additional restrictions on transfer as are set forth in an award agreement entered into between the recipient and the General Partner and/or the Partnership (an “Award Agreement”). The

  
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terms of any Award Agreement may be modified by the General Partner from time to time in its sole discretion, subject to any restrictions on amendment imposed by the relevant Award Agreement or
by the Equity Incentive Plan, if applicable. LTIP Units that have vested under the terms of an Award Agreement are referred to as “Vested LTIP Units”; all other LTIP Units shall be treated as “Unvested LTIP Units.”

 (iii) Forfeiture. Unless otherwise specified in the Award Agreement, upon the occurrence of any event specified in
an Award Agreement as resulting in either the right of the Partnership or the General Partner to repurchase LTIP Units at a specified purchase price or some other forfeiture of any LTIP Units, then if the Partnership or the General Partner exercises
such right to repurchase or forfeiture in accordance with the applicable Award Agreement, the relevant LTIP Units shall immediately, and without any further action, be treated as cancelled and no longer outstanding for any purpose. Unless otherwise
specified in the Award Agreement, no consideration or other payment shall be due with respect to any LTIP Units that have been forfeited, other than any distributions declared with respect to a Partnership Record Date prior to the effective date of
the forfeiture. In connection with any repurchase or forfeiture of LTIP Units, the balance of the portion of the Capital Account of the Holder of the LTIP Units that is attributable to all of his or her LTIP Units shall be reduced by the amount, if
any, by which it exceeds the Target Balance (as determined and defined in Section 6.5.I), calculated with respect to such Holder’s remaining LTIP Units, if any. 

(iv) Redemption. The redemption right provided to Limited Partners under Section 8.6 shall not apply with
respect to LTIP Units unless and until they are converted to Common Units as provided in Section 4.4.E below. 

(v) Voting. LTIP Units shall not have any voting rights until such time as they are converted into Common Units as
provided herein. 
 (vi) Characterization as Profits Interests. Any LTIP Units to be issued under this Agreement are
intended to qualify as “profits interests” under IRS Revenue Procedures 93-27 and 2001-43, and the sections of this Agreement relating to such interests shall be interpreted and applied consistently therewith. In this regard, (x) any
such LTIP Units so issued shall have a Capital Account as of their issue date equal to $0 and (y) to the extent any portion of a distribution otherwise payable to a holder of LTIP Units would cause such holder to have a deficit balance in its
Adjusted Capital Account after taking into account all allocations of income, gain, loss and deduction expected to be made to such holder for the year in or for which the distribution is made, such portion of the distribution shall not be paid to
such holder until such time, if any, that the payment of such portion of the distribution would not have the result described in this clause (y). 

E. Conversion of LTIP Units. 

(i) Subject to Section 4.4.E(ii), a Holder of LTIP Units shall have the right (the “Conversion
Right”), at his or her option, at any time to convert all or a portion of his or her Vested LTIP Units into Common Units; provided, however, that a holder 

  
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may not exercise the Conversion Right for less than 100 Vested LTIP Units or, if such holder holds less than 100 Vested LTIP Units, all of the Vested LTIP Units held by such holder. A Holder of
LTIP Units shall not have the right to convert Unvested LTIP Units into Common Units until they become Vested LTIP Units; provided, however, that when a Holder of LTIP Units is notified of the expected occurrence of an event that will
cause his or her Unvested LTIP Units to become Vested LTIP Units, such Holder of LTIP Units may give the Partnership a Conversion Notice (as defined in Section 4.4.E(ii) below) conditioned upon and effective as of the time of vesting and
such Conversion Notice, unless subsequently revoked by such Holder of LTIP Units, shall be accepted by the Partnership subject to such condition. The General Partner shall have the right at any time to cause a conversion of Vested LTIP Units into
Common Units. In all cases, the conversion of any LTIP Units into Common Units shall be subject to the conditions and procedures set forth in this Section 4.4.E. 

(ii) A holder of Vested LTIP Units may convert such Units into an equal number of fully paid and nonassessable Common Units,
giving effect to all adjustments (if any) made pursuant to Section 4.4.D. Notwithstanding the foregoing, in no event may a holder of Vested LTIP Units convert a number of Vested LTIP Units that exceeds (x) the portion of the
Economic Capital Account Balance of such Limited Partner which is attributable to all the LTIP Units owned by such Limited Partner, divided by (y) the Common Unit Economic Balance, in each case as determined as of the effective date of
conversion (the “Capital Account Limitation”). In order to exercise his or her Conversion Right, a Holder of LTIP Units shall deliver a notice (a “Conversion Notice”) to the Partnership (with a copy to the General
Partner) which specifies the number of Vested LTIP Units to be converted and a conversion date (the “Conversion Date”) that is not less than 10 days, or more than 60 days, after the date of delivery of such Conversion Notice. Each
Holder of LTIP Units covenants and agrees with the Partnership that all Vested LTIP Units to be converted pursuant to this Section 4.4.E(ii) shall be free and clear of all liens. Notwithstanding anything herein to the contrary, a holder
of LTIP Units may deliver a Notice of Redemption pursuant to Section 8.6.A of this Agreement relating to those Common Units that will be issued to such holder upon conversion of such LTIP Units into Common Units in advance of the
Conversion Date; provided, however, that the redemption of such Common Units by the Partnership shall in no event take place until after the Conversion Date. For clarity, it is noted that the objective of this paragraph is to put a
Holder of LTIP Units in a position where, if he or she so wishes, the Common Units into which his or her Vested LTIP Units will be converted can be redeemed by the Partnership simultaneously with such conversion, with the further consequence that,
if the General Partner elects to assume the Partnership’s redemption obligation with respect to such Common Units under Section 8.6.B of this Agreement by delivering to such holder Shares rather than cash, then such holder can have
such Shares issued to him or her simultaneously with the conversion of his or her Vested LTIP Units into Common Units. The General Partner shall reasonably cooperate with a Holder of LTIP Units to coordinate the timing of the different events
described in the foregoing sentence. 

  
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 (iii) The Partnership, at any time at the election of the General Partner, may
cause any number of Vested LTIP Units held by a Holder of LTIP Units to be converted (a “Forced Conversion”) into an equal number of Common Units, giving effect to all adjustments (if any) made pursuant to Section 4.4.D;
provided, however, that the Partnership may not cause Forced Conversion of any LTIP Units that would not at the time be eligible for conversion at the option of such Holder of LTIP Units pursuant to Section 4.4.E(ii) (e.g.,
due to the application of the Capital Account Limitation). In order to exercise its right of Forced Conversion, the Partnership shall deliver a notice (a “Forced Conversion Notice”) to the applicable Holder of LTIP Units not less
than ten nor more than 60 days prior to the Conversion Date specified in such Forced Conversion Notice. 
 (iv) A conversion
of Vested LTIP Units for which the holder thereof has given a Conversion Notice or the Partnership has given a Forced Conversion Notice shall occur automatically after the close of business on the applicable Conversion Date without any action on the
part of such Holder of LTIP Units, as of which time such Holder of LTIP Units shall be credited on the books and records of the Partnership with the issuance as of the opening of business on the next day of the number of Common Units issuable upon
such conversion. After the conversion of LTIP Units as aforesaid, the Partnership shall deliver to such Holder of LTIP Units, upon his or her written request, a certificate of the General Partner certifying the number of Common Units and remaining
LTIP Units, if any, held by such person immediately after such conversion. The permitted Assignee of any Limited Partner pursuant to Article XI hereof and any applicable Award Agreement may exercise the rights of such Limited Partner pursuant
to this Section 4.4.E and such Limited Partner shall be bound by the exercise of such rights by the Assignee. 

(v) For purposes of making future allocations under Section 6.1 and applying the Capital Account Limitation, the
portion of the Economic Capital Account Balance of the applicable Holder of LTIP Units that is treated as attributable to his or her remaining LTIP Units shall be reduced, as of the date of conversion, by the product of the number of LTIP Units
converted and the Common Unit Economic Balance. 
 (vi) If the Partnership, the General Partner or the Partner shall be a
party to any transaction (including without limitation a merger, consolidation, unit exchange, self-tender offer for all or substantially all Common Units or other business combination or reorganization, or sale of all or substantially all of the
Partnership’s assets, but excluding any transaction which constitutes an Adjustment Event) in each case as a result of which Common Units shall be exchanged for or converted into the right, or the holders of Common Units shall otherwise be
entitled, to receive cash, securities or other property or any combination thereof (any of the foregoing being referred to herein as a “Transaction”), then, immediately prior to the Transaction, (x) in the event of a merger,
consolidation, exchange or other similar transaction resulting in a change of control of the Partnership, all Unvested LTIP Units shall immediately vest and (y) the General Partner shall exercise its right to cause a Forced Conversion with
respect to the maximum number of LTIP Units then eligible for conversion, 

  
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taking into account any allocations that occur in connection with the Transaction or that would occur in connection with the Transaction if the assets of the Partnership were sold at the
Transaction price or, if applicable, at a value determined by the General Partner in good faith using the value attributed to the Partnership Units in the context of the Transaction (in which case the Conversion Date shall be the effective date of
the Transaction). 
 In anticipation of such Forced Conversion and the consummation of the Transaction, the Partnership shall
use commercially reasonable efforts to cause each Holder of LTIP Units to be afforded the right to receive in connection with such Transaction, in consideration for the Common Units into which his or her LTIP Units will be converted, the same kind
and amount of cash, securities and other property (or any combination thereof) receivable upon the consummation of such Transaction by a holder of the same number of Common Units, assuming such holder of Common Units is not a Person with which the
Partnership consolidated or into which the Partnership merged or which merged into the Partnership or to which such sale or transfer was made, as the case may be, or an affiliate of such Person. In the event that holders of Common Units have the
opportunity to elect the form or type of consideration to be received upon consummation of the Transaction, prior to such Transaction the General Partner shall give prompt written notice to each Holder of LTIP Units of such election, and shall use
commercially reasonable efforts to afford the Holder of LTIP Units the right to elect, by written notice to the General Partner, the form or type of consideration to be received upon conversion of each LTIP Unit held by such holder into Common Units
in connection with such Transaction. If a Holder of LTIP Units fails to make such an election, such holder (and any of its transferees) shall receive upon conversion of each LTIP Unit held by him or her (or by any of his or her transferees) the same
kind and amount of consideration that a Holder of a Common Unit would receive if such Holder of a Common Unit failed to make such an election. 

(vii) Conversions under this Section 4.4 E shall not be treated as a Transfer (and, thus, shall not be subject to the
restrictions on Transfers). 
 Section 4.5 Dividend Reinvestment Plan or Cash Option Purchase Plan. 

Except as may otherwise be provided in this Article IV, all amounts received or deemed received by the General Partner in respect of
any Qualified DRIP/COPP, either (a) shall be utilized by the General Partner to effect open market purchases of Shares, or (b) if the General Partner elects instead to issue new Shares with respect to such amounts, shall be contributed by
the General Partner to the Partnership in exchange for additional Partnership Common Units. Upon such contribution, the Partnership will issue to the General Partner a number of Common Units equal to the quotient of (i) the new Shares so
issued, divided by (ii) the Conversion Factor then in effect. The Partnership is expressly authorized to issue Common Units as contemplated by this Section 4.5 without any further act, approval or vote of any Partner or any other
Persons. 

  
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 Section 4.6 Other Contribution Provisions 

If any Partner is admitted to the Partnership and is given a Capital Account in exchange for services rendered to the Partnership, such
transaction shall be treated by the Partnership and the affected Partner as if the Partnership had compensated such Partner in cash, and the Partner had contributed such cash to the capital of the Partnership. 

Section 4.7 No Interest on Capital 

No Partner shall be entitled to interest on its Capital Contributions or its Capital Account. 

Section 4.8 Separate Agreements 

In connection with the issuance of Partnership Units to certain Additional Limited Partners, the Partnership may enter into separate
agreements that set forth additional rights and obligations of such Additional Limited Partners and additional terms and conditions of such Additional Limited Partners’ Partnership Interests, subject to Section 7.9.E hereof. 

ARTICLE V 

DISTRIBUTIONS 

Section 5.1 Requirement and Characterization of Distributions 

A. General. Subject to the rights of any Holder of any Partnership Unit set forth in a Partnership Unit Designation, the General
Partner shall distribute Cash From Operations generated by the Partnership to the Partners who are Partners on the Partnership Record Date with respect to the applicable period as provided in Section 5.1.B. Notwithstanding anything to
the contrary contained herein, in no event may a Partner receive a distribution of Cash From Operations with respect to a Partnership Unit for an applicable period if such Partner is entitled to receive a distribution with respect to a Share for
which such Partnership Unit has been redeemed or exchanged. Unless otherwise expressly provided for herein or in an agreement from and after the time a new class or series of Partnership Interests is created in accordance with Article IV
hereof, no Partnership Interest shall be entitled to a distribution in preference to any other Partnership Interest. The General Partner shall make such reasonable efforts, as determined by it in its sole and absolute discretion and consistent with
the qualification of the General Partner as a REIT, to distribute Cash From Operations to the General Partner in an amount sufficient to enable the General Partner to make distributions to its Stockholders that will enable the General Partner to
(1) satisfy the requirements for qualification as a REIT under the REIT Rules and (2) avoid any U.S. federal income or excise tax liability. 

B. Method. 

(i) Each Holder of a class of Partnership Units that, as a class, is entitled to any preference in distribution shall be
entitled to a distribution in accordance with the rights of any such class of Partnership Units (and, within such class, pro rata in proportion to the respective Percentage Interests in such class on such Partnership Record Date); and 

  
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 (ii) To the extent there is Cash From Operations remaining after payment of any
preference in distribution in accordance with the foregoing clause (i), with respect to Partnership Interests that are not entitled to any preference in distribution, pro rata to each such class in accordance with the terms of such class (and,
within each such class, pro rata in proportion to the respective Percentage Interests in such class on such Partnership Record Date). 

Section 5.2 Distributions in-Kind 

No right is given to any Partner to demand and receive property other than cash as provided in this Agreement. The General Partner may
determine, in its sole and absolute discretion, to make a distribution in-kind of Partnership assets to the Holders of Partnership Units, and such assets shall be distributed in such a fashion as to ensure that the fair market value is distributed
and allocated in accordance with Articles V, VI and X. 
 Section 5.3 Amounts Withheld 

All amounts withheld pursuant to the Code or any provisions of any state or local tax law and Section 10.5 with respect to any
allocation, payment or distribution to the General Partner, the Limited Partners or Assignees shall be treated as amounts distributed to the General Partner, Limited Partners or Assignees pursuant to Section 5.1 for all purposes under
this Agreement. 
 Section 5.4 Distributions Upon Liquidation 

Proceeds from a Terminating Capital Transaction shall be distributed to the Partners in accordance with Section 13.2. 

Section 5.5 Revisions to Reflect Issuance of Partnership Interests 

If the Partnership issues Partnership Interests to the General Partner or any Additional Limited Partner pursuant to Article IV
hereof, subject to the rights of any Holder of any Partnership Interest set forth in a Partnership Unit Designation, the General Partner shall make such revisions to this Article V and the Partner Registry as it deems necessary to reflect the
issuance of such additional Partnership Interests without the requirements for any other consents or approvals. 
 Section 5.6
Restricted Distributions. Notwithstanding any provision to the contrary contained in this Agreement, neither the Partnership nor the General Partner, on behalf of the Partnership, shall make a distribution to any Partner on account of its
Partnership Interest if such distribution would violate the LP Act or other Applicable Law. 

  
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 ARTICLE VI 

ALLOCATIONS 

Section 6.1 Allocations For Capital Account Purposes 

For purposes of maintaining the Capital Accounts and in determining the rights of the Partners among themselves, the Partnership’s items
of income, gain, loss and deduction (computed in accordance with Section 6.2), shall, except as provided in Section 6.5, be allocated among the Partners (and determined separately for each class of Partnership Interest held
by each Partner) in each Fiscal Year (or portion thereof) as provided in this Section 6.1 below. 
 A. Net Income. After
giving effect to the special allocations set forth in Section 6.5, and subject to Section 6.1.C, Net Income for each Fiscal Year (or portion thereof) shall be allocated as follows: 

(i) first, to the General Partner until the cumulative Net Income allocated to the General Partner pursuant to this clause
(i) equals the cumulative Net Losses previously allocated to the General Partner pursuant to Section 6.1.B(iv); 

(ii) second, to the Holders of any Partnership Units that are entitled to any preference upon liquidation until the cumulative
Net Income allocated under this clause (ii) equals the cumulative Net Losses allocated to such Partners under Section 6.1.B(iii); 

(iii) third, to the Holders of any Partnership Units that are entitled to any preference in distribution (other than a
preferred return of capital) in accordance with the rights of any such class of Partnership Interests until each such Partnership Unit has been allocated, on a cumulative basis pursuant to this clause (iii), Net Income equal to the amount of any
such preference in distribution (other than a preferred return of capital) of such class of Partnership Units (and, within such class, pro rata in proportion to the respective Percentage Interests as of the last day of the period for which such
allocation is being made); and 
 (iv) thereafter with respect to Partnership Units that are not entitled to any preference
in the allocation of Net Income, pro rata to each such class in accordance with the terms of such class (and, within such class, pro rata in proportion to the respective Percentage Interests as of the last day of the period for which such allocation
is being made). 
 B. Net Losses. After giving effect to the special allocations set forth in Section 6.5, and subject to
Section 6.1.C, Net Losses for each Fiscal Year (or portion thereof) shall be allocated as follows: 
 (i) first,
to the Holders of Partnership Units, in proportion to and to the extent of the excess of (i) the cumulative Net Income previously allocated to such holders pursuant to Section 6.1.A(iv), over (ii) the sum of (A) the
aggregate distributions with respect to such Partnership Units pursuant to clause (ii) of Section 5.1.B, and (B) the cumulative allocations of Net Losses to such holders pursuant to this Section 6.1.B(i) for all
prior taxable years; 

  
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 (ii) second, with respect to classes of Partnership Units that are not entitled
to any preference in distribution upon liquidation, pro rata to each such class in accordance with the terms of such class (and, within such class, pro rata in proportion to the respective Percentage Interests as of the last day of the period for
which such allocation is being made); provided, that Net Losses shall not be allocated to any Partner pursuant to this Section 6.1.B(ii) to the extent that such allocation would cause such Partner to have an Adjusted Capital
Account Deficit (or increase any existing Adjusted Capital Account Deficit) (determined in the case of a Partner who also holds classes of Partnership Units that are entitled to any preferences in distribution upon liquidation, by subtracting from
such Partners’ Adjusted Capital Account the amount of such preferred distribution to be made upon liquidation) at the end of such Fiscal Year (or portion thereof)); 

(iii) third, with respect to classes of Partnership Interests that are entitled to any preference in distribution upon
liquidation, in reverse order of the priorities of each such class (and within each such class, pro rata in proportion to their respective Percentage Interests as of the last day of the period for which such allocation is being made;
provided, that Net Losses shall not be allocated to any Partner pursuant to this Section 6.1.B(iii) to the extent that such allocation would cause such Partner to have an Adjusted Capital Account Deficit (or increase any existing
Adjusted Capital Account Deficit) at the end of such Fiscal Year (or portion thereof); and 
 (iv) thereafter, to the General
Partner. 
 C. Special Allocations Upon Liquidation. Notwithstanding Sections 6.1.A and 6.1.B, in the event that the
Partnership disposes of all or substantially all of its assets in a transaction that will lead to a liquidation of the Partnership pursuant to Article XIII hereof, any Net Income or Net Losses realized in connection with such transaction
and thereafter (and, if necessary, constituent items of income, gain, loss and deduction) shall be specially allocated for such Fiscal Year or other relevant period (and to the extent permitted by Section 761(c) of the Code, for the immediately
preceding Fiscal Year or period) among the Holders as required so as to cause liquidating distributions pursuant to Section 13.2.A(v) hereof to be made in the same amounts and proportions as would have resulted had such distributions
instead been made pursuant to Article V hereof. In addition, if there is an adjustment to the Carrying Value of the assets of the Partnership pursuant to Section 6.2.D, allocations of Net Income or Net Losses arising from such
adjustment shall be allocated in the same manner as described in the prior sentence. 
 D. Allocation of Nonrecourse Debt. For
purposes of Regulations Section 1.752-3(a), the Partners agree that Nonrecourse Liabilities of the Partnership in excess of the sum of (i) the amount of Partnership Minimum Gain and (ii) the total amount of Nonrecourse Built-in Gain
shall be allocated by the General Partner by taking into account the facts and circumstances relating to each Partner’s respective interest in the profits of the Partnership. For this purpose, the General Partner will have discretion in any
Fiscal Year or other relevant period to allocate such excess Nonrecourse Liabilities among the Partners in any manner permitted under Section 752 of the Code and the Regulations thereunder. 

  
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 Section 6.2 Capital Accounts of the Partners 

A. The Partnership shall maintain for each Partner a separate Capital Account in accordance with the rules of Regulations
Section 1.704-1(b)(2)(iv). Such Capital Account shall be increased by (i) the amount of all Capital Contributions and any other deemed contributions made by such Partner to the Partnership pursuant to this Agreement and (ii) all items
of Partnership income and gain (including income and gain exempt from tax) computed in accordance with Section 6.2.B hereof and allocated to such Partner pursuant to Sections 6.1 and 6.5, and decreased by (x) the
amount of cash or Agreed Value of all actual and deemed distributions of cash or property made to such Partner pursuant to this Agreement and (y) all items of Partnership deduction and loss computed in accordance with Section 6.2.B
hereof and allocated to such Partner pursuant to Sections 6.1 and 6.5. 
 B. For purposes of computing the amount of any item
of income, gain, deduction or loss to be reflected in the Partners’ Capital Accounts, unless otherwise specified in this Agreement, the determination, recognition and classification of any such item shall be the same as its determination,
recognition and classification for U.S. federal income tax purposes determined in accordance with Section 703(a) of the Code (for this purpose all items of income, gain, loss or deduction required to be stated separately pursuant to
Section 703(a)(1) of the Code shall be included in taxable income or loss), with the following adjustments: 
 (i)
Except as otherwise provided in Regulations Section 1.704-1(b)(2)(iv)(i), the computation of all items of income, gain, loss and deduction shall be made without regard to any election under Section 754 of the Code which may be made by the
Partnership, provided that the amounts of any adjustments to the adjusted bases of the assets of the Partnership made pursuant to Section 734 of the Code as a result of the distribution of property by the Partnership to a Partner (to the
extent that such adjustments have not previously been reflected in the Partners’ Capital Accounts) shall be reflected in the Capital Accounts of the Partners in the manner and subject to the limitations prescribed in Regulations
Section 1.704-1(b)(2)(iv)(m)(4). 
 (ii) The computation of all items of income, gain, and deduction shall be made
without regard to the fact that items described in Sections 705(a)(1)(B) or 705(a)(2)(B) of the Code are not includible in gross income or are neither currently deductible nor capitalized for federal income tax purposes. 

(iii) Any income, gain or loss attributable to the taxable disposition of any Partnership property shall be determined as if
the adjusted basis of such property as of such date of disposition were equal in amount to the Partnership’s Carrying Value with respect to such property as of such date. 

(iv) In lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable
income or loss, there shall be taken into account Depreciation for such Fiscal Year or other relevant period. 

  
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 (v) In the event the Carrying Value of any Partnership asset is adjusted pursuant
to Section 6.2.D hereof, the amount of any such adjustment shall be taken into account as gain or loss from the disposition of such asset. 

(vi) Any items specially allocated under Section 6.5 of this Agreement shall not be taken into account. 

C. A transferee (including any Assignee) of a Partnership Unit shall succeed to a pro rata portion of the Capital Account of the transferor.

 D. 
 (i)
Consistent with the provisions of Regulations Section 1.704-1(b)(2)(iv)(f), and as provided in Section 6.2.D(ii), the Carrying Values of all Partnership assets shall be adjusted upward or downward to reflect any Unrealized Gain or
Unrealized Loss attributable to such Partnership property, as of the times of the adjustments provided in Section 6.2.D(ii) hereof, as if such Unrealized Gain or Unrealized Loss had been recognized on an actual sale of each such property
and allocated pursuant to Sections 6.1 and 6.5. 
 (ii) Such adjustments shall be made as of the following
times: (a) immediately prior to the acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis Capital Contribution or as consideration for the performance of services for or
on behalf of the General Partner, the Partnership or any Subsidiary; (b) immediately prior to the distribution by the Partnership to a Partner of more than a de minimis amount of property as consideration for an interest in the Partnership; and
(c) immediately prior to the liquidation of the Partnership within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g), provided, however, that adjustments pursuant to clauses (a) and (b) above shall be made
only if the General Partner determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Partners in the Partnership. 

(a) In accordance with Regulations Section 1.704-l(b)(2)(iv)(e), the Carrying Value of Partnership assets distributed
in-kind shall be adjusted upward or downward to reflect any Unrealized Gain or Unrealized Loss attributable to such Partnership property, as of the time any such asset is distributed. 

(b) In determining Unrealized Gain or Unrealized Loss for purposes of this Section 6.2, the aggregate Cash Amount
and fair market value of all Partnership assets (including cash or cash equivalents) shall be determined by the General Partner using such reasonable method of valuation as it may adopt, or in the case of a liquidating distribution pursuant to
Article XIII, shall be determined and allocated by the Liquidator using such reasonable methods of valuation as it may adopt. The General Partner, or the Liquidator, as the case may be, shall allocate such aggregate fair market value among
the assets of the Partnership in such manner as it determines in its sole and absolute discretion to arrive at a fair market value for individual properties. 

  
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 E. The provisions of this Agreement (including this Section 6.2) relating to the
maintenance of Capital Accounts are intended to comply with Regulations Section 1.704-1(b), and shall be interpreted and applied in a manner consistent with such Regulations. In the event the General Partner shall determine that it is prudent
to modify the manner in which the Capital Accounts, or any debits or credits thereto (including debits or credits relating to liabilities which are secured by contributed or distributed property or which are assumed by the Partnership, the General
Partner, or the Limited Partners) are computed in order to comply with such Regulations, the General Partner may make such modification without regard to Article XIV, provided that it is not likely to have a material effect on the
amounts distributable to any Person pursuant to Article XIII upon the dissolution of the Partnership. The General Partner also shall (i) make any adjustments that are necessary or appropriate to maintain equality between the Capital
Accounts of the Partners and the amount of Partnership capital reflected on the Partnership’s balance sheet, as computed for book purposes, in accordance with Regulations Section 1.704-1(b)(2)(iv)(q), and (ii) make any appropriate
modifications in the event unanticipated events might otherwise cause this Agreement not to comply with Regulations Section 1.704-1(b). 

Section 6.3 No Withdrawal 

No Partner shall be entitled to withdraw any part of its Capital Contribution or Capital Account or to receive any distribution from the
Partnership, except as provided in Articles IV, V, VII and XIII of this Agreement. 
 Section 6.4
Revisions to Allocations to Reflect Issuance of Partnership Interests 
 If the Partnership issues Partnership Interests to the General
Partner or any Additional Limited Partner pursuant to Article IV hereof, the General Partner shall make such revisions to this Article VI and the Partner Registry as it deems necessary to reflect the terms of the issuance of such
Partnership Interests, including making preferential allocations to classes of Partnership Interests that are entitled thereto. Such revisions shall not require the consent or approval of any other Partner. 

Section 6.5 Special Allocation Rules 

Notwithstanding any other provision of this Agreement, the following special allocations shall be made in the following order: 

A. Minimum Gain Chargeback. Notwithstanding the provisions of Section 6.1 or any other provisions of this
Section 6.5, if there is a net decrease in Partnership Minimum Gain during any Fiscal Year or other relevant period, each Partner shall be specially allocated items of Partnership income and gain for such year or period (and, if
necessary, subsequent years or periods) in an amount equal to such Partner’s share of the net decrease in Partnership Minimum Gain, as determined under Regulations Section 1.704-2(g). Allocations pursuant to the previous sentence shall be
made in proportion to the respective amounts required to be allocated to each Partner pursuant thereto. The items to be so allocated shall be determined in accordance 

  
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with Regulations Section 1.704-2(f)(6). This Section 6.5.A is intended to comply with the minimum gain chargeback requirements in Regulations Section 1.704-2(f) and for
purposes of this Section 6.5.A only, each Partner’s Adjusted Capital Account Deficit shall be determined prior to any other allocations pursuant to Section 6.1 of this Agreement with respect to such Fiscal Year or period
and without regard to any decrease in Partner Nonrecourse Debt Minimum Gain during such Fiscal Year or period. 
 B. Partner Minimum Gain
Chargeback. Notwithstanding any other provision of Section 6.1 of this Agreement or any other provisions of this Section 6.5 (except Section 6.5.A hereof), if there is a net decrease in Partner Nonrecourse
Debt Minimum Gain attributable to a Partner Nonrecourse Debt during any Fiscal Year or other relevant period, each Partner who has a share of the Partner Nonrecourse Debt Minimum Gain attributable to such Partner Nonrecourse Debt, determined in
accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated items of Partnership income and gain for such year or period (and, if necessary, subsequent years and periods) in an amount equal to such Partner’s share of
the net decrease in Partner Nonrecourse Debt Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(5). Allocations pursuant to the previous sentence shall be made in proportion
to the respective amounts required to be allocated to each General Partner and Limited Partner pursuant thereto. The items to be so allocated shall be determined in accordance with Regulations Section 1.704-2(i)(4). This
Section 6.5.B is intended to comply with the minimum gain chargeback requirement in such Section of the Regulations and shall be interpreted consistently therewith. Solely for purposes of this Section 6.5.B, each
Partner’s Adjusted Capital Account Deficit shall be determined prior to any other allocations pursuant to Section 6.1 or Section 6.5 with respect to such Fiscal Year or period, other than allocations pursuant to
Section 6.5.A hereof. 
 C. Qualified Income Offset. In the event any Partner unexpectedly receives any adjustments,
allocations or distributions described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), l.704-1(b)(2)(ii)(d)(5), or 1.704-l(b)(2)(ii)(d)(6), and after giving effect to the allocations required under Sections 6.5.A and 6.5.B hereof with
respect to such Fiscal Year or other relevant period, such Partner has an Adjusted Capital Account Deficit, items of Partnership income and gain (consisting of a pro rata portion of each item of Partnership income, including gross income and gain
for the Fiscal Year or period) shall be specifically allocated to such Partner in an amount and manner sufficient to eliminate, to the extent required by the Regulations, its Adjusted Capital Account Deficit created by such adjustments, allocations
or distributions as quickly as possible. This Section 6.5.C is intended to constitute a “qualified income offset” under Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 

D. Gross Income Allocation. In the event that any Partner has an Adjusted Capital Account Deficit at the end of any Fiscal Year or
other relevant period (after taking into account allocations to be made under the preceding paragraphs hereof with respect to such Fiscal Year or period), each such Partner shall be specially allocated items of Partnership income and gain
(consisting of a pro rata portion of each item of Partnership income, including gross income and gain for the Fiscal Year or period) in an amount and manner sufficient to eliminate, to the extent required by the Regulations, its Adjusted Capital
Account Deficit. 

  
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 E. Nonrecourse Deductions. Nonrecourse Deductions for any Fiscal Year or other relevant
period shall be allocated to the Partners in accordance with the number of Partnership Units owned by each such Partner. If the General Partner determines in its good faith discretion that the Partnership’s Nonrecourse Deductions must be
allocated in a different ratio to satisfy the safe harbor requirements of the Regulations promulgated under Section 704(b) of the Code, the General Partner is authorized, upon notice to the Limited Partners, to revise the prescribed ratio for
such Fiscal Year or period to the numerically closest ratio which would satisfy such requirements. 
 F. Partner Nonrecourse
Deductions. Any Partner Nonrecourse Deductions for any Fiscal Year or other relevant period shall be specially allocated to the Partner who bears the economic risk of loss with respect to the Partner Nonrecourse Debt to which such Partner
Nonrecourse Deductions are attributable in accordance with Regulations Sections 1.704-2(b)(4) and 1.704-2(i). 
 G. Code Section 754
Adjustments. To the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Section 734(b) or 743(b) of the Code is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in
determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such item of gain or
loss shall be specially allocated to the Partners in a manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such Section of the Regulations. 

H. Curative Allocations. The allocations set forth in paragraphs A.-G. of this Section 6.5 (the “Regulatory
Allocations”) are intended to comply with certain requirements of Regulations Sections 1.704-1(b) and 1.704-2. Notwithstanding any other provision of this Article VI (other than the Regulatory Allocations), the General Partner is
authorized to make offsetting special allocations of Partnership income, gain, loss or deduction in whatever manner it deems appropriate so that, after such offsetting allocations are made, each Partner’s Capital Account balance is, to the
extent possible, equal to the Capital Account balance such Partner would have had if the Regulatory Allocations were not part of this Agreement and all Partnership items were allocated pursuant to Section 6.1 and
Section 6.5.I. 
 I. Special Allocations Regarding LTIP Units. Notwithstanding the provisions of Section 6.1
above, (a) Liquidating Gains shall first be allocated to the Holders of LTIP Units until the portion of the Economic Capital Account Balance of each such Holder of LTIP Units that is attributable to all the LTIP Units owned by such Holder of
LTIP Units is equal to (i) the Common Unit Economic Balance, multiplied by (ii) the number of the LTIP Units owned by such Holder of LTIP Units (the “Target Balance”) and (b) prior to the time the result in
(a) is achieved, the amount of Net Income other than Liquidating Gains which is allocated under Section 6.1 to a Holder of LTIP Units in respect of each LTIP Unit for any Fiscal Year or other relevant period shall not exceed the
amount of distributions made in respect of such LTIP Unit for such Fiscal Year or other period. For purposes of this Agreement: 

(i) “Book-Up Target” for a LTIP Unit means (i) initially, the Common Unit Economic Balance as determined
on the date such LTIP Unit was granted, plus or 

  
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minus, as the case may be, (ii) the remaining amount, if any, required to be allocated to such LTIP Unit for the Economic Capital Account Balance of the holder of such LTIP Unit, to
the extent attributable to such LTIP Unit, to be equal to the Common Unit Economic Balance. 
 (ii) “Common Unit
Economic Balance” shall mean (i) the Capital Account balance of the General Partner, plus the amount of the General Partner’s share of any Partner Nonrecourse Debt Minimum Gain or Partnership Minimum Gain, in either case to the
extent attributable to the General Partner’s ownership of Common Units and computed on a hypothetical basis after taking into account all allocations through the date on which any allocation is made under this Section 6.5.I
(including, without limitation, any expenses of the Partnership reimbursed to the General Partner pursuant to Section 7.4), divided by (ii) the number of the General Partner’s Common Units. 

(iii) “Economic Capital Account Balances” of a Holder of LTIP Units shall mean an amount equal to the portion
of such Holder’s Capital Account balance which is attributable to all LTIP Units owned by such Holder, plus the amount of his or her allocable share of any Partner Nonrecourse Debt Minimum Gain or Partnership Minimum Gain attributable to such
LTIP Units. 
 (iv) “Liquidating Gains” means gains realized in connection with the sale or other
disposition of all or substantially all of the assets of the Partnership, including but not limited to Unrealized Gain resulting from an adjustment to the Carrying Value of Partnership assets pursuant to Section 6.2.D. 

(v) “Liquidating Losses” means losses realized in connection with the sale or other disposition of all or
substantially all of the assets of the Partnership, including but not limited to Unrealized Loss resulting from an adjustment to the Carrying Value of Partnership assets pursuant to Section 6.2.D. 

Liquidating Gain allocated to a Holder of LTIP Units under this Section 6.5.I will be attributed to specific LTIP Units of such Holder for
purposes of determining (i) allocations under this Section 6.5.I, (ii) the effect of the forfeiture or conversion of specific LTIP Units on such Holder’s Capital Account and (iii) the ability of such Holder of LTIP
Units or the Partnership to convert specific LTIP Units into Common Units pursuant to Section 4.4.E(ii) and Section 4.4.E(iii). Such Liquidating Gain allocated to such Holder of LTIP Units will generally be attributed in the
following order: (i) first, to Vested LTIP Units held for more than two years, (ii) second, to Vested LTIP Units held for two years or less, (iii) third, to Unvested LTIP Units that have remaining vesting conditions that only require
continued employment or service to the General Partner, the Partnership or an Affiliate of either for a certain period of time (with such Liquidating Gains being attributed in order of vesting from soonest vesting to latest vesting), and
(iv) fourth, to other Unvested LTIP Units (with such Liquidating Gains being attributed in order of issuance from earliest issued to latest issued). Within each category, Liquidating Gain will be allocated seriatim (i.e., entirely to the first
unit in a set, then entirely to the next unit in the set, and so on, until a full allocation is made to the last unit in the set) in the order of smallest Book-Up Target to largest Book-Up Target. After giving effect to the special allocations set
forth above, if, due to distributions with respect to Common Units in which a LTIP Unit does not 

  
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participate, forfeitures or otherwise, the Economic Capital Account Balance of any present or former Holder of LTIP Units attributable to such Holder’s LTIP Units, exceeds the Target
Balance, then Liquidating Losses shall be allocated to such Holder of LTIP Units, or Liquidating Gains shall be allocated to the other Partners, to reduce or eliminate the disparity; provided, however, that if Liquidating Losses or
Liquidating Gains are insufficient to completely eliminate all such disparities, such losses or gains shall be allocated among Partners in a manner reasonably determined by the General Partner. In the event that Liquidating Gains or Liquidating
Losses are allocated under this Section 6.5.I, Net Income and Net Losses allocable under Section 6.1 shall be recomputed without regard to the Liquidating Gains or Liquidating Losses so allocated. The parties agree that the
intent of this Section 6.5.I is (i) to make allocations of Liquidating Gains and Liquidating Loss so as to cause the Capital Account balance associated with each LTIP Unit to be economically equivalent to the Capital Account balance
associated with the General Partner’s Common Units (on a per-Common Unit/LTIP Unit basis) and (ii) to allow conversion of a Vested LTIP Unit into a Common Unit when sufficient Liquidating Gains have been allocated to such LTIP Unit
pursuant to Section 6.5.I so that either its initial Book-Up Target has been reduced to zero or the parity described in the definition of Target Balance has been achieved. 

Section 6.6 Allocations for Tax Purposes 

A. Except as otherwise provided in this Section 6.6, for U.S. federal and applicable state income tax purposes, each item of
income, gain, loss and deduction shall be allocated among the Partners in the same manner as its correlative item of “book” income, gain, loss or deduction is allocated pursuant to Section 6.1 and Section 6.5
hereof. 
 B. In an attempt to eliminate any Book-Tax Disparities attributable to a Contributed Property or Adjusted Property, items of
income, gain, loss, and deduction shall be allocated for U.S. federal income tax purposes among the Partners as follows: 

(i) (a) In the case of a Contributed Property, such items attributable thereto shall be allocated among the Partners consistent
with the principles of Section 704(c) of the Code to take into account the variation between the 704(c) Value of such property and its adjusted basis at the time of contribution (taking into account Section 6.6.C); and (b) any
item of Residual Gain or Residual Loss attributable to a Contributed Property shall be allocated among the Partners in the same manner as its correlative item of “book” gain or loss is allocated pursuant to Section 6.1 and
Section 6.5 hereof. 
 (ii) (a) In the case of an Adjusted Property, such items shall (A) first, be
allocated among the Partners in a manner consistent with the principles of Section 704(c) of the Code to take into account the Unrealized Gain or Unrealized Loss attributable to such property and the allocations thereof pursuant to
Section 6.1, Section 6.2.D and Section 6.5.I; (B) second, in the event such property was originally a Contributed Property, be allocated among the Partners in a manner consistent with Section 6.6.B(i);
and (b) any item of Residual Gain or Residual Loss attributable to an Adjusted Property shall be allocated among the Partners in the same manner its correlative item of “book” gain or loss is allocated pursuant to
Section 6.1 and Section 6.5 hereof. 
 (iii) all other items of income, gain, loss and deduction
shall be allocated among the Partners in the same manner as their correlative item of “book” gain or loss is allocated pursuant to Section 6.1 and Section 6.6 hereof. 

  
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 C. The Partnership shall use the “traditional” method as set forth in Regulations
Section 1.704-3(b), without curative or remedial allocations, to eliminate the disparities between the Carrying Value and adjusted basis of Contributed Property contributed prior to the date hereof. With respect to all other Contributed
Property, to the extent Regulations promulgated pursuant to Section 704(c) of the Code permit a partnership to utilize alternative methods to eliminate the disparities between the Carrying Value of property and its adjusted basis, the General
Partner shall, subject to the following, have the authority to elect the method to be used by the Partners and such election shall be binding on all Partners; provided, that, to the extent that the General Partner has agreed to use a
particular method with respect to a Contributed Property, the General Partner shall be bound by such agreement pursuant to the terms thereof. 

D. Recapture Income. Any gain allocated to the Partners upon the sale or other taxable disposition of any Partnership asset shall, to
the extent reasonably practicable after taking into account other required allocations of gain pursuant to Sections 6.5 and 6.6, be characterized as Recapture Income in the same proportions and to the same extent as such Partners have
been allocated any deductions directly or indirectly giving rise to the treatment of such gains as Recapture Income. 
 ARTICLE VII

 MANAGEMENT AND OPERATIONS OF BUSINESS 

Section 7.1 Management 

A. Powers of General Partner. Except as otherwise expressly provided in this Agreement, including any Partnership Unit Designation, all
management powers over the business and affairs of the Partnership are and shall be exclusively vested in the General Partner, and no Limited Partner shall have any right to participate in or exercise control or management power over the business
and affairs of the Partnership. The General Partner may not be removed by the Limited Partners with or without cause. In addition to the powers now or hereafter granted a general partner of a limited partnership under Applicable Law or which are
granted to the General Partner under any other provision of this Agreement, the General Partner, subject to Section 7.11 and the rights of any Holder of any Partnership Interest set forth in a Partnership Unit Designation, shall have
full power and authority to do all things deemed necessary or desirable by it to conduct the business of the Partnership, to exercise all powers set forth in Section 3.2 and to effectuate the purposes set forth in
Section 3.1, including: 
 (i) engaging in such investment activities as the General Partner may determine,
including purchasing, developing, constructing or otherwise acquiring, directly or indirectly, Qualified Energy Projects and Entities ancillary thereto, and leasing such assets pursuant to System Leases; 

  
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 (ii) the making of any expenditures, the lending or borrowing of money (including
making prepayments on loans and borrowing money to permit the Partnership to make distributions to its Partners in such amounts as are required under Section 5.1.A or will permit the General Partner (so long as the General Partner
qualifies as a REIT) to avoid the payment of any U.S. federal income tax (including, for this purpose, any excise tax pursuant to Section 4981 of the Code) and to make distributions to its Stockholders sufficient to permit the General Partner
to maintain its REIT status), the assumption or guarantee of, or other contracting for, indebtedness and other liabilities, the issuance of evidences of indebtedness (including the securing of same by mortgage, deed of trust or other lien or
encumbrance on the Partnership’s assets) and the incurring of any obligations the General Partner deems necessary for the conduct of the activities of the Partnership; 

(iii) the making of tax, regulatory and other filings, or rendering of periodic or other reports to governmental or other
agencies having jurisdiction over the business or assets of the Partnership; 
 (iv) the acquisition, development,
construction, leasing (including through System Leases), disposition, mortgage, pledge, encumbrance, hypothecation or exchange of any or all of the Investments and other assets of the Partnership or its Subsidiaries (including the exercise or grant
of any conversion, option, privilege or subscription right or other right available in connection with any assets at any time held by the Partnership) or the merger or other combination of the Partnership with or into another Entity on such terms as
the General Partner deems proper; 
 (v) the use of the Investments, the System Leases and other assets of the Partnership or
any of its Subsidiaries (including cash on hand) for any purpose consistent with the terms of this Agreement and on any terms it sees fit, including the financing of the conduct of the operations of the General Partner, the Partnership or any of the
Partnership’s Subsidiaries, the lending of funds to other Persons (including the General Partner, its Subsidiaries and the Partnership’s Subsidiaries) and the repayment of obligations of the Partnership and its Subsidiaries and any other
Person in which the Partnership has an equity investment and the making of capital contributions to its Subsidiaries; 
 (vi)
the repair, alteration, demolition or improvement of the Investments or any other real property or improvements owned by the Partnership or any Subsidiary of the Partnership or any Person in which the Partnership has made a direct or indirect equity
investment; 
 (vii) the negotiation, execution, and performance of any contracts, conveyances or other instruments that the
General Partner considers useful or necessary to the conduct of the Partnership’s operations or the implementation of the General Partner’s powers under this Agreement, including contracting with

  
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contractors, developers, consultants, accountants, legal counsel, other professional advisors and other agents and the payment of their expenses and compensation out of the Partnership’s
assets; 
 (viii) the mortgage, pledge, encumbrance or hypothecation of any assets of the Partnership, and the use of the
assets of the Partnership (including cash on hand) for any purpose consistent with the terms of this Agreement and on any terms it sees fit, including the financing of the conduct or the operations of the General Partner or the Partnership, the
lending of funds to other Persons (including any Subsidiaries of the Partnership) and the repayment of obligations of the Partnership, any of its Subsidiaries and any other Person in which it has an equity investment; 

(ix) the distribution of Partnership cash or other Partnership assets in accordance with this Agreement; 

(x) the holding, managing, investing and reinvesting of cash and other assets of the Partnership; 

(xi) the collection and receipt of revenues and income of the Partnership; 

(xii) the selection, designation of powers, authority and duties and the dismissal of employees of the Partnership (including
employees having titles such as “president,” “vice president,” “secretary” and “treasurer”) and agents, outside attorneys, accountants, consultants and contractors of the Partnership and the determination of
their compensation and other terms of employment or hiring; 
 (xiii) the maintenance of such insurance for the benefit of
the Partnership and the Partners as it deems necessary or appropriate; 
 (xiv) the formation of, or acquisition of an
interest (including non-voting interests in entities controlled by Affiliates of the Partnership or third parties) in, and the contribution of property to, any further limited or general partnerships, joint ventures, limited liability companies or
other relationships that it deems desirable (including the acquisition of interests in, and the contributions of funds or property to, or making of loans to, its Subsidiaries and any other Person in which it has an equity investment from time to
time, or the incurrence of indebtedness on behalf of such Persons or the guarantee of the obligations of such Persons); provided, that as long as the General Partner has determined to qualify, or to continue to qualify, as a REIT, the
Partnership may not engage in any such formation, acquisition or contribution that would cause the General Partner to fail to qualify as a REIT; 

(xv) the control of any matters affecting the rights and obligations of the Partnership, including the settlement, compromise,
submission to arbitration or any other form of dispute resolution or abandonment of any claim, cause of action, liability, Debt or damages due or owing to or from the Partnership, the commencement or defense of suits, legal proceedings,
administrative proceedings, arbitrations or other forms of dispute resolution, the representation of the Partnership in all suits or legal proceedings, administrative proceedings, arbitrations or other forms of dispute resolution, the incurring of
legal expense and the indemnification of any Person against liabilities and contingencies to the extent permitted by Applicable Law; 

  
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 (xvi) the determination of the fair market value of any Partnership property
distributed in-kind, using such reasonable method of valuation as the General Partner may adopt; 
 (xvii) the exercise,
directly or indirectly, through any attorney-in-fact acting under a general or limited power of attorney, of any right, including the right to vote, appurtenant to any assets or investment held by the Partnership; 

(xviii) the exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of or in connection
with any Subsidiary of the Partnership or any other Person in which the Partnership has a direct or indirect interest, individually or jointly with any such Subsidiary or other Person; 

(xix) the exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of any Person in which
the Partnership does not have any interest pursuant to contractual or other arrangements with such Person; 
 (xx) the
making, execution and delivery of any and all deeds, leases, notes, deeds to secure Debt, mortgages, deeds of trust, security agreements, conveyances, contracts, guarantees, warranties, indemnities, waivers, releases or other legal instruments or
agreements in writing necessary or appropriate in the judgment of the General Partner for the accomplishment of any of the powers of the General Partner enumerated in this Agreement; 

(xxi) the distribution of cash to acquire Partnership Units held by a Limited Partner in connection with a Limited
Partner’s exercise of its Redemption Right under Section 8.6; 
 (xxii) the determination regarding whether
a payment to a Limited Partner who exercises its Redemption Right under Section 8.6 that is assumed by the General Partner will be paid in the form of the Cash Amount or the Shares Amount, except as such determination may be limited by
Section 8.6; 
 (xxiii) the maintenance of the Partner Registry to reflect accurately at all times the Capital
Contributions and the number and class of Partnership Units held by the Partners as the same are adjusted from time to time to the extent necessary to reflect redemptions, Capital Contributions, the issuance of Partnership Units, the admission of
any Additional Limited Partner or any Substituted Limited Partner or otherwise; 
 (xxiv) the filing of applications,
communicating and otherwise dealing with any and all governmental agencies having jurisdiction over, or in any way affecting, the Partnership’s assets or any other aspect of the Partnership’s business; 

  
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 (xxv) the enforcement of any rights against any Partner pursuant to
representations, warranties, covenants and indemnities relating to such Partner’s contribution of property or assets to the Partnership; 

(xxvi) the issuance of additional Partnership Units, as appropriate and in the General Partner’s sole and absolute
discretion, in connection with Capital Contributions by Additional Limited Partners and additional Capital Contributions by Partners pursuant to Article IV; 

(xxvii) an election to dissolve the Partnership pursuant to Section 13.1; 

(xxviii) the taking of any action necessary or appropriate to enable the General Partner to qualify as a REIT (so long as the
General Partner desires to maintain its qualification as a REIT); and 
 (xxix) the taking of any action necessary or
appropriate to prevent the Partnership or the General Partner from being subject to regulation under the Investment Company Act. 
 B.
Authorized Persons. It is understood and agreed that each officer of the General Partner may act for and in the name of the General Partner, as the case may be, under this Agreement. In dealing with the General Partner acting for or on behalf
of the Partnership, no Person shall be required to inquire into, and Persons dealing with the Partnership are entitled to rely conclusively on, the right, power and authority of the General Partner, as the case may be, to bind the Partnership. 

C. No Approval by Limited Partners. Except as provided in Section 7.11 or as may otherwise be provided in another agreement
and subject to the rights of any Holder of any Partnership Interest set forth in a Partnership Unit Designation, each of the Limited Partners agrees that the General Partner is authorized to (i) execute, deliver and perform the above-mentioned
agreements and transactions on behalf of the Partnership and (ii) execute and deliver any affidavit, agreement, certificate, consent, instrument, notice, power of attorney, waiver or other writing or document in the name and on behalf of the
Partnership and to otherwise exercise any power of the General Partner under this Agreement and the LP Act on behalf of the Partnership, in each case without any further act, approval or vote of the Partners or any other Persons, notwithstanding any
other provision of this Agreement, the LP Act or any Applicable Laws to the full extent permitted under the LP Act or other Applicable Laws, and, in the absence of any specific corporate action on the part of the General Partner to the contrary, the
taking of any action or the execution of any such document or writing by an officer of the General Partner, in the name and on behalf of the General Partner, in its capacity as the general partner of the Partnership, shall conclusively evidence
(a) the approval thereof by the General Partner, in its capacity as the general partner of the Partnership, (b) the General Partner’s determination that such action, document or writing is necessary, advisable, appropriate, desirable
or prudent to conduct the business and affairs of the Partnership, exercise the powers of the Partnership under this Agreement and the LP Act or effectuate the purposes of the Partnership, or any other determination by the General Partner required
by this Agreement in connection with the taking of such action or execution of such document or writing, and (c) the authority of such officer 

  
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with respect thereto. The execution, delivery or performance by the General Partner or the Partnership of any agreement authorized or permitted under this Agreement shall not constitute a breach
by the General Partner of any duty that the General Partner may owe the Partnership or the Limited Partners or any other Persons under this Agreement or of any duty stated or implied by law or equity. 

D. Insurance. At all times from and after the date hereof, the General Partner may cause the Partnership to obtain and maintain
(i) casualty, liability and other insurance on the properties of the Partnership, (ii) liability insurance for the Covered Persons hereunder, and (iii) such other insurance as the General Partner, in its sole and absolute discretion,
determines to be necessary. 
 E. Working Capital and Other Reserves. At all times from and after the date hereof, the General
Partner may cause the Partnership to establish and maintain working capital reserves in such amounts as the General Partner, in its sole and absolute discretion, deems appropriate and reasonable from time to time, including upon liquidation of the
Partnership under Article XIII. 
 F. No Obligations to Consider Tax Consequences of Limited Partners. In exercising its
authority under this Agreement, the General Partner may, but shall be under no obligation to, take into account the tax consequences to any Partner (including the General Partner) of any action taken (or not taken) by any of them. The General
Partner and the Partnership shall not have liability to a Limited Partner for monetary damages or otherwise for losses sustained, liabilities incurred or benefits not derived by such Limited Partner in connection with such decisions, provided that
the General Partner has acted in good faith and pursuant to its authority under this Agreement. 
 Section 7.2 Certificate of
Limited Partnership 
 The General Partner has previously filed the Certificate with the Secretary of State. To the extent that such
action is determined by the General Partner to be reasonable and necessary or appropriate, the General Partner shall file amendments to and restatements of the Certificate and do all the things to maintain the Partnership as a limited partnership
(or a partnership in which the limited partners have limited liability) under the laws of the State of Delaware and each other state, the District of Columbia or other jurisdiction in which the Partnership may elect to do business or own property.
Subject to the terms of Section 8.5.A(iv), the General Partner shall not be required, before or after filing, to deliver or mail a copy of the Certificate or any amendment thereto to any Limited Partner. The General Partner shall use all
reasonable efforts to cause to be filed such other certificates or documents as may be reasonable and necessary or appropriate for the formation, continuation, qualification and operation of a limited partnership (or a partnership in which the
limited partners have limited liability) in the State of Delaware and any other state, the District of Columbia or other jurisdiction in which the Partnership may elect to do business or own property. 

  
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 Section 7.3 Title to Partnership Assets 

Title to Partnership assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the
Partnership as an Entity, and no Partners, individually or collectively, shall have any ownership interest in such Partnership assets or any portion thereof. Title to any or all of the Partnership assets may be held in the name of the Partnership,
the General Partner or one or more nominees, as the General Partner may determine, including Persons controlled by the General Partner. The General Partner hereby declares and warrants that any Partnership assets for which legal title is held in the
name of the General Partner or any nominee of or Person controlled by the General Partner shall be held for the use and benefit of the Partnership in accordance with the provisions of this Agreement. All Partnership assets shall be recorded as the
property of the Partnership in its books and records, irrespective of the name in which legal title to such Partnership assets is held. 

Section 7.4 Reimbursement of the General Partner 

A. No Compensation. Except as provided in this Section 7.4 and elsewhere in this Agreement (including the provisions of
Articles V and VI regarding distributions, payments and allocations to which it may be entitled), the General Partner shall not be compensated for its services as the general partner of the Partnership. 

B. Responsibility for Partnership Expenses. The Partnership shall be responsible for and shall pay all expenses relating to the
Partnership’s organization, the ownership of its assets and its operations. The General Partner shall be reimbursed on a monthly basis, or such other basis as the General Partner may determine in its sole and absolute discretion, for all
expenses it incurs relating to the ownership and operation of, or for the benefit of, the Partnership (including expenses related to the operations of the General Partner and to the management and administration of any Subsidiaries of the General
Partner or the Partnership or Affiliates of the Partnership, such as auditing expenses and filing fees). The General Partner shall determine in good faith the amount of expenses incurred by it related to the ownership and operation of, or for the
benefit of, the Partnership. If certain expenses are incurred for the benefit of the Partnership and other Entities (including the General Partner), such expenses will be allocated to the Partnership and such other Entities in such a manner as the
General Partner in its sole and absolute discretion deems fair and reasonable. Such reimbursements shall be in addition to any reimbursement to the General Partner pursuant to Section 10.3.C and as a result of indemnification pursuant to
Section 7.7. All payments and reimbursements hereunder shall be characterized for U.S. federal income tax purposes as expenses of the Partnership incurred on its behalf, and not as expenses of the General Partner. 

C. Partnership Interest Issuance Expenses. The General Partner shall also be reimbursed for all expenses it incurs relating to any
issuance of Partnership Interests, Shares or Debt of the Partnership or the General Partner or rights, options, warrants or convertible or exchangeable securities pursuant to Article IV (including all costs, expenses, damages and other
payments resulting from or arising in connection with litigation related to any of the foregoing), all of which expenses are considered by the Partners to constitute expenses of, and for the benefit of, the Partnership. 

D. Reimbursement not a Distribution. If and to the extent any reimbursement made pursuant to this Section 7.4 is determined
for U.S. federal income tax purposes not to 

  
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constitute a payment of expenses of the Partnership, the amount so determined shall constitute a guaranteed payment with respect to capital within the meaning of Section 707(c) of the Code,
shall be treated consistently therewith by the Partnership and all Partners and shall not be treated as a distribution for purposes of computing the Partners’ Capital Accounts. 

E. Funding for Certain Capital Transactions. In the event that the General Partner shall undertake to acquire (whether by merger,
consolidation, purchase, or otherwise) the assets or Equity Interests of another Person and such acquisition shall require the payment of cash by the General Partner (whether to such Person or to any other selling party or parties in such
transaction or to one or more creditors, if any, of such Person or such selling party or parties), (i) the Partnership shall advance to the General Partner the cash required to consummate such acquisition if, and to the extent that, such cash
is not to be obtained by the General Partner through an issuance of Shares described in Section 4.2 or pursuant to a transaction described in Section 4.3.C, (ii) the General Partner shall immediately, upon consummation
of such acquisition, transfer to the Partnership (or cause to be transferred to the Partnership), in full and complete satisfaction of such advance and as required by Section 4.3, the assets or Equity Interests of such Person acquired by
the General Partner in such acquisition, and (iii) pursuant to and in accordance with Section 4.2 and Section 4.3.C, the Partnership shall issue to the General Partner Partnership Interests and/or rights, options,
warrants or convertible or exchangeable securities of the Partnership having designations, preferences and other rights that are substantially the same as those of any additional Shares, other equity securities, New Securities and/or debt
securities, as the case may be, issued by the General Partner in connection with such acquisition (whether issued directly to participants in the acquisition transaction or to third parties in order to obtain cash to complete the acquisition). In
addition to, and without limiting the foregoing, in the event that the General Partner engages in a transaction in which (x) the General Partner (or a wholly owned direct or indirect Subsidiary of the General Partner) merges with another Entity
(referred to as the “Parent Entity”) that is organized in the “UPREIT format” (i.e., where the Parent Entity holds all or substantially all of its assets and conducts all or substantially all of its operations through a
partnership, limited liability company or other Entity (referred to as an “Operating Entity”)) and the General Partner survives such merger, (y) such Operating Entity merges with or is otherwise acquired by the Partnership in
exchange in whole or in part for Partnership Interests, and (z) the General Partner is required or elects to pay part of the consideration in connection with such merger involving the Parent Entity in the form of cash and part of the
consideration in the form of Shares, the Partnership shall distribute to the General Partner with respect to its existing Partnership Interest an amount of cash sufficient to complete such transaction and the General Partner shall cause the
Partnership to cancel a number of Partnership Units (rounded to the nearest whole number) held by the General Partner equal to the product attained by multiplying the number of additional Shares of the General Partner that the General Partner would
have issued to the Parent Entity or the owners of the Parent Entity in such transaction if the entire consideration therefor were to have been paid in Shares by a fraction, the numerator of which is one and the denominator of which is the Conversion
Factor. 
 Section 7.5 Outside Activities of the General Partner 

The General Partner shall not, directly or indirectly, enter into or conduct any business, other than in connection with (a) the
ownership, acquisition and disposition of Partnership Interests as General Partner, (b) the management of the business of the Partnership, 

  
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(c) if the General Partner becomes a reporting company with a class (or classes) of securities registered under the Exchange Act, the operation of the General Partner as such, (d) financing
or refinancing of any type related to the Partnership or its assets or activities, (e) any of the foregoing activities as they relate to a Subsidiary of the Partnership and (f) such activities as are incidental thereto. Nothing contained
herein shall be deemed to prohibit the General Partner from executing guarantees of Debt of the Partnership for which it would otherwise be liable in its capacity as General Partner. 

Section 7.6 Transactions With Partners and Affiliates 

A. Transactions with Certain Affiliates. Except as expressly permitted by this Agreement, the Partnership shall not, directly or
indirectly, sell, transfer or convey any property to, or purchase any property from, or borrow funds from, or lend funds to, any Partner or any Affiliate of the Partnership that is not also a Subsidiary of the Partnership, except pursuant to
transactions that are on terms that are fair and reasonable and no less favorable to the Partnership than would be obtained from an unaffiliated third party. 

B. Permitted Transactions. 

(i) The General Partner is expressly authorized to enter into, in the name and on behalf of the Partnership, a right of first
opportunity arrangement and other conflict avoidance agreements, including the Development Agreement, with any Partner or any of its Affiliates on such terms as the General Partner, in its sole and absolute discretion, believes are advisable. 

(ii) The Partnership may lend or contribute funds or other assets to its Subsidiaries or other Persons in which it has an
equity investment, and such Persons may borrow funds from the Partnership, on terms and conditions established in the sole and absolute discretion of the General Partner. The foregoing authority shall not create any right or benefit in favor of any
Subsidiary or any other Person. 
 (iii) The Partnership may transfer assets to joint ventures, limited liability companies,
partnerships, corporations, business trusts or other business entities in which it is or thereby becomes a participant upon such terms and subject to such conditions consistent with this Agreement and Applicable Law as the General Partner, in its
sole and absolute discretion, believes to be advisable. 
 Section 7.7 Limitation on Liability and Indemnification 

A. Limitation of Liability. To the maximum extent permitted under the LP Act in effect from time to time, no Covered Person shall be
liable to the Partnership or to any Partner for (i) any act or omission performed or failed to be performed by it, or for any losses, claims, costs, damages or liabilities arising from any such act or omission, provided that such loss, claim,
cost, damage or liability did not result from such Covered Person’s gross negligence, willful misconduct or fraud or any act or omission constituting a breach of such Covered Person’s duty of loyalty or good faith and fair dealing, or
(ii) any tax liability imposed on the Partnership, provided that such tax liability did not result from such Covered Person’s gross negligence, willful misconduct or fraud, or (iii) any losses due to the negligence (gross or

  
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ordinary), dishonesty or bad faith of any agents of the Partnership that are not Covered Persons or Affiliates of any Covered Person, as long as such Persons are selected with reasonable care.
Without limiting the generality of the foregoing, each such Person shall, in the performance of his, her or its duties, be fully protected in relying in good faith upon the records of the General Partner or the Partnership and upon information,
opinions, reports or statements presented to such Person by the General Partner or by any other Person as to matters such Person reasonably believes are within such other Person’s professional or expert competence and who has been selected with
reasonable care by or on behalf of the General Partner or the Partnership. Any repeal or modification of this Section 7.7.A shall not adversely affect any right or protection of a Person existing at the time of such repeal or
modification. 
 B. Indemnification. To the maximum extent permitted under the LP Act in effect from time to time, the Partnership
shall indemnify each Covered Person against any losses, claims, costs, damages or liabilities to which such Covered Person may become subject in connection with the business or affairs of the Partnership or one of its direct or indirect Subsidiaries
or serving at the Partnership’s or one of the Partnership’s direct or indirect Subsidiary’s request as a director, trustee, officer, partner, employee or agent of another foreign or domestic corporation, partnership, joint venture,
trust or other enterprise or employee benefit plan, provided that such loss, claim, cost, damage or liability did not result from such Covered Person’s gross negligence, willful misconduct or fraud or any act or omission constituting a breach
of such Covered Person’s duty of loyalty or good faith and fair dealing. If for any reason (other than such Covered Person’s gross negligence, willful misconduct or fraud or any act or omission constituting a breach of such Covered
Person’s duty of loyalty or good faith and fair dealing), the foregoing indemnification is unavailable to such Covered Person, or is insufficient to hold it harmless, then the Partnership shall contribute to the amount paid or payable to the
Covered Person as a result of such loss, claim, cost, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by the Partnership on the one hand and such Covered Person on the other hand but also
the relative fault of the Partnership and such Covered Person, as well as any relevant equitable considerations. The General Partner shall use reasonable efforts to cause a Covered Person to repay amounts paid by the Partnership for indemnification
of such Covered Person pursuant to this Section 7.7.B if and to the extent such Covered Person recovers such amounts from insurance recoveries or other source of payment. 

C. Advancement of Expenses. Reasonable expenses expected to be incurred by a Covered Person shall be paid or reimbursed by the
Partnership in advance of the final disposition of any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative made or threatened against a Covered Person upon receipt by the Partnership of (i) a
written affirmation by the Covered Person of the Covered Person’s good faith belief that the standard of conduct necessary for indemnification by the Partnership as authorized in this Section 7.7 has been met and (ii) a written
undertaking by or on behalf of the Covered Person to repay the amount if it shall ultimately be determined that the standard of conduct has not been met. 

D. No Limitation of Rights. The indemnification provided by this Section 7.7 shall be in addition to any other rights to
which a Covered Person or any other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue as to a Covered Person who has ceased to serve in such capacity unless
otherwise provided in a written agreement pursuant to which such Covered Person is indemnified. 

  
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 E. Insurance. The Partnership shall purchase and maintain insurance on behalf of the
Covered Persons and such other Persons as the General Partner shall determine against any liability that may be asserted against or expenses that may be incurred by such Person in connection with the Partnership’s activities, regardless of
whether the Partnership would have the power to indemnify such Person against such liability under the provisions of this Agreement. 
 F.
No Personal Liability for Partners. Notwithstanding anything in this Agreement to the contrary (including in this Section 7.7), any indemnification or other obligation of the Partnership relating to the matters covered in this
Section 7.7 shall be provided out of and to the extent of Partnership assets only and no Partner (unless such Partner otherwise agrees in writing or is found in a final decision by a court of competent jurisdiction to have personal
liability on account thereof) shall have personal liability on account thereof or shall be required to make additional Capital Contributions (other than as required in any other agreement between the Partnership and a Partner) to help satisfy such
indemnity of the Partnership. In no event may a Covered Person subject any of the Partners to personal liability by reason of the indemnification provisions set forth in this Agreement. 

G. Interested Transactions. A Covered Person shall not be denied indemnification in whole or in part under this Section 7.7
because the Covered Person had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement. 

H. Benefit. The provisions of this Section 7.7 are for the benefit of the Covered Persons, their employees, officers,
directors, trustees, heirs, successors, assigns and administrators and shall not be deemed to create any rights for the benefit of any other Persons. Any amendment, modification or repeal of this Section 7.7, or any provision hereof,
shall be prospective only and shall not in any way affect the limitation on the Partnership’s liability to any Covered Person under this Section 7.7 as in effect immediately prior to such amendment, modification or repeal with
respect to claims arising from or related to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted. 

I. Indemnification Payments Not Distributions. If and to the extent any payments to the General Partner pursuant to this
Section 7.7 constitute gross income to the General Partner (as opposed to the repayment of advances made on behalf of the Partnership), such amounts shall constitute guaranteed payments within the meaning of Section 707(c) of the
Code, shall be treated consistently therewith by the Partnership and all Partners, and shall not be treated as distributions for purposes of computing the Partners’ Capital Accounts. 

J. Exception to Indemnification. Notwithstanding anything to the contrary in this Agreement, the General Partner shall not be entitled
to indemnification hereunder for any loss, claim, damage, liability or expense for which the General Partner is obligated to indemnify the Partnership under any other agreement between the General Partner and the Partnership. 

  
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 Section 7.8 Liability of the General Partner 

A. No Obligation to Consider Separate Interests of Limited Partners. The Limited Partners expressly acknowledge that the General
Partner is acting on behalf of the Partnership, that the General Partner is under no obligation to consider the separate interests of the Limited Partners (including the tax consequences to Limited Partners or Assignees) in deciding whether to cause
the Partnership to take (or decline to take) any actions, and that the General Partner shall not be liable for monetary damages for losses sustained, liabilities incurred or benefits not derived by Limited Partners in connection with such decisions,
provided that the General Partner has acted in good faith. 
 B. Actions of Agents. Subject to its obligations and duties as
General Partner set forth in Section 7.1.A, the General Partner may exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its agents. The
General Partner shall not be responsible for any misconduct or negligence on the part of any such agent appointed by the General Partner in good faith. 

C. Effect of Amendment. Notwithstanding any other provision contained herein, any amendment, modification or repeal of this
Section 7.8 or any provision hereof shall be prospective only and shall not in any way affect the limitations on the General Partner’s liability to the Partnership and the Limited Partners under this Section 7.8 as in
effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise
or be asserted. 
 Section 7.9 Other Matters Concerning the General Partner 

A. Reliance on Documents. The General Partner may rely and shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture or other paper or document believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties. 

B. Reliance on Advisors. The General Partner may consult with legal counsel, accountants, appraisers, management consultants,
investment bankers and other consultants and advisers selected by it, and any act taken or omitted to be taken in reliance upon the opinion of such Persons as to matters which the General Partner reasonably believes to be within such Person’s
professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such opinion. 

C. Action Through Agents. The General Partner shall have the right, in respect of any of its powers or obligations hereunder, to act
through any of its duly authorized officers and a duly appointed attorney or attorneys-in-fact. Each such attorney shall, to the extent provided by the General Partner in the power of attorney, have full power and authority to do and perform all and
every act and duty which is permitted or required to be done by the General Partner hereunder. 

  
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 D. Actions to Maintain REIT Status or Avoid Taxation of the General Partner.
Notwithstanding any other provisions of this Agreement or non-mandatory provision of the LP Act, any action of the General Partner on behalf of the Partnership or any decision of the General Partner to refrain from acting on behalf of the
Partnership undertaken in the good faith belief that such action or omission is necessary or advisable in order (i) to protect the ability of the General Partner to qualify as a REIT or (ii) to allow the General Partner to avoid incurring
any liability for taxes under Section 856, Section 857 or Section 4981 of the Code, is expressly authorized under this Agreement and is deemed approved by all of the Limited Partners. 

E. Regulatory Matters. 

(i) Each Limited Partner acknowledges that the assets of the Partnership are not intended to constitute plan assets of such
Limited Partner for purposes of any applicable non-U.S., state or local law governing the investment and management of the assets of that Limited Partner, and that, as a result, none of the Partnership, the General Partner or any of their Affiliates
intends to be acting as a fiduciary within the meaning of any applicable non-U.S., state or local law relating to governmental plans or foreign plans with respect to such Limited Partner or the Partnership assets; provided, however,
that this provision is not intended to negate the fiduciary duties imposed upon a general partner under the LP Act. 
 (ii)
In the event that the General Partner believes (a) that the investment in the Partnership by a Limited Partner which is a governmental plan, foreign plan or other regulated Entity (other than a Benefit Plan Investor) (each, a “Regulated
Investor”) may result in (1) any violation of any law applicable to such Regulated Investor, (2) the treatment of the assets of the Partnership as assets of such Regulated Investor or (3) the treatment of the Partnership or
the General Partner as a fiduciary under any law applicable to such Regulated Investor, and (b) if, in the reasonable judgment of the General Partner, any of the foregoing conditions results in or may result in any adverse consequences to the
Partnership, the General Partner, the directors or officers of the General Partner (both of (a) and (b), a “Regulatory Issue”), then the General Partner, in its sole discretion, (x) may require that such Regulated Investor
provide an opinion of counsel (such opinion and counsel reasonably acceptable to the General Partner) that no Regulatory Issue exists, or (y) in the event such an opinion is not delivered within a reasonable time after being requested, may take
any of the following actions in its sole discretion and considering the best interests of the Partnership: (A) in accordance with the provisions of Section 14.1 amend this Agreement to avoid any material consequences, (B) cause
the Partnership to redeem such Regulated Investor’s interest in the Partnership, in whole or in part in a manner consistent with the procedures of Section 7.9.E(iii) and (iv), (C) require such Regulated Investor to sell
its interest in the Partnership, in whole or in part, to one or more other Partners at the Redemption Value, or (D) cause a dissolution of the Partnership and wind up its affairs in accordance with Article XIII. The reasonable expense of
obtaining an opinion described in the preceding sentence shall be shared equally by the Partnership and such Regulated Investor. 

  
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 (iii) Effective upon the date specified by the General Partner in the notice sent
to a Limited Partner, notifying such Limited Partner of the General Partner’s determination to completely or partially redeem such Limited Partner’s interest in the Partnership pursuant to Section 7.9.E(ii) (the
“Redemption Effective Date”), such Limited Partner (the “Redeemed Limited Partner”) shall cease to be a Partner of the Partnership with respect to the withdrawn portion of its interest (the “Redeemed
Interest”) only and, in addition to its right to receive payment for the Redeemed Interest as provided in Section 7.9.E(iv), shall continue to be entitled, with respect to its remaining interest only, if any, to the rights of a
Partner under this Agreement (including the right to have any allocations made to its Capital Account (as such may be adjusted) pursuant to Article VI, the right to receive distributions pursuant to Article V and upon dissolution of
the Partnership pursuant to Article XIII and the right to vote on matters as provided in this Agreement). 
 (iv) The
Redemption Value shall be paid by the Partnership to such Redeemed Limited Partner in cash by paying to such Limited Partner a “pro rata portion” of each distribution payable to the Redeemed Limited Partners until the Redemption Value has
been fully paid; provided, that the General Partner shall be under no obligation to sell, finance or refinance any Partnership property or assets or to take any other action to effect such redemption which, in the judgment of the General
Partner, may affect adversely the Partnership (taking into account the liquidity needs of the Partnership) or any Partner. For purposes of the preceding sentence, a Redeemed Limited Partner’s “pro rata portion” of a distribution shall
be an amount equal to the amount such Redeemed Limited Partner would have received in respect of the Redeemed Interest had such interest not been redeemed. 

F. Unacceptable Investor. If the General Partner determines that a Partner is an Unacceptable Investor, the Partnership may withhold
such Partner’s distributions and Partnership Units, remove such Partner as a Limited Partner of the Partnership upon terms deemed appropriate by the General Partner in its sole discretion and take such other actions as may be desirable or
necessary to comply with Applicable Law. 
 Section 7.10 Reliance By Third Parties 

Notwithstanding anything to the contrary in this Agreement, any Person dealing with the Partnership shall be entitled to assume that the
General Partner has full power and authority, without consent or approval of any other Partner or Person, to encumber, sell or otherwise use in any manner any and all assets of the Partnership, to enter into any contracts on behalf of the
Partnership and to take any and all actions on behalf of the Partnership, and such Person shall be entitled to deal with the General Partner as if the General Partner were the Partnership’s sole party in interest, both legally and beneficially.
Each Limited Partner hereby waives any and all defenses or other remedies which may be available against such Person to contest, negate or disaffirm any action of the General Partner in connection with any such dealing. In no event shall any Person
dealing with the General Partner or its representatives be obligated to ascertain that the terms of this Agreement have been complied with or to inquire into the necessity or expedience of any act or action of the General Partner or its
representatives. Each and every certificate, document or other instrument executed on behalf of the Partnership 

  
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by the General Partner or its representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that (i) at the time of the execution and
delivery of such certificate, document or instrument, this Agreement was in full force and effect, (ii) the Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on behalf of
the Partnership, and (iii) such certificate, document or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Partnership. 

Section 7.11 Restrictions On General Partner’s Authority 

The General Partner may not (i) take any action in contravention of an express prohibition or limitation of this Agreement,
(ii) perform any act that would subject a Limited Partner to liability as a general partner in any jurisdiction or any other liability except as provided herein or under the LP Act, or (iii) enter into any contract, mortgage, loan or other
agreement that restricts, or has the effect of prohibiting or restricting, the ability of a Limited Partner to exercise its Redemption Right, except in each case with the written Consent of (a) all Partners adversely affected or (b) such
lower percentage of the Limited Partnership Interests as may be specifically provided for under a provision of this Agreement or the LP Act. 

ARTICLE VIII 
 RIGHTS
AND OBLIGATIONS OF LIMITED PARTNERS 
 Section 8.1 Limitation Of Liability 

No Limited Partner shall have any liability under this Agreement except as expressly provided in this Agreement, including
Section 10.5, or another agreement entered into by such Limited Partner relating to the Partnership (including such Limited Partner’s Subscription Agreement) or under the LP Act. 

Section 8.2 Management Of Business 

No Limited Partner or Assignee (other than the General Partner, any of its Affiliates, or any officer, director, employee, partner, agent or
trustee of the General Partner, the Partnership or any of their Affiliates, in their capacity as such) shall take part in the operation, management or control (within the meaning of the LP Act) of the Partnership’s business, transact any
business in the Partnership’s name or have the power to sign documents for or otherwise bind the Partnership. The transaction of any such business by the General Partner, any of its Affiliates or any officer, director, employee, partner, agent
or trustee of the General Partner, the Partnership or any of their Affiliates, in their capacity as such, shall not affect, impair or eliminate the limitations on the liability of the Limited Partners or Assignees under this Agreement. 

Section 8.3 Outside Activities of Limited Partners 

Subject to any agreements entered into by a Limited Partner or its Affiliates with the General Partner (including the Development Agreement),
the Partnership or any Affiliate thereof (including any employment agreement), any Limited Partner and any Assignee, officer, 

  
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director, employee, agent, trustee, Affiliate, member or shareholder of any Limited Partner shall be entitled to and may have business interests and engage in business activities in addition to
those relating to the Partnership, including business interests and activities that are in direct or indirect competition with the Partnership or that are enhanced by the activities of the Partnership. Neither the Partnership nor any Partner shall
have any rights by virtue of this Agreement in any business ventures of any Limited Partner or Assignee. Subject to such agreements, none of the Limited Partners nor any other Person shall have any rights by virtue of this Agreement or the
partnership relationship established hereby in any business ventures of any other Person (other than the General Partner, to the extent expressly provided herein), and such Person shall have no obligation pursuant to this Agreement, subject to any
agreements entered into by a Limited Partner or its Affiliates with the General Partner, the Partnership or any Affiliate thereof, to offer any interest in any such business ventures to the Partnership, any Limited Partner or any such other Person,
even if such opportunity is of a character that, if presented to the Partnership, any Limited Partner or such other Person, could be taken by such Person. 

Section 8.4 Return Of Capital 

Except pursuant to the right of redemption set forth in Section 8.6 or in any Partnership Unit Designation, no Limited Partner
shall be entitled to the withdrawal or return of its Capital Contribution, except to the extent of distributions made pursuant to this Agreement or upon termination of the Partnership as provided herein. No Limited Partner or Assignee shall have
priority over any other Limited Partner or Assignee either as to the return of Capital Contributions (except as permitted by Section 4.2.A) or, except to the extent provided by Article VI, in any Partnership Unit Designation or as
permitted by Sections 4.2.A, 5.1.B(i), 6.1.A(ii) and 6.1.B(iii), or otherwise expressly provided in this Agreement, as to profits, losses, distributions or credits. 

Section 8.5 Rights Of Limited Partners Relating to the Partnership 

A. General. In addition to other rights provided by this Agreement or by the LP Act, and except as limited by
Section 8.5.D, each Limited Partner shall have the right, for a purpose reasonably related to such Limited Partner’s interest as a limited partner in the Partnership, upon written demand with a statement of the purpose of such
demand and at such Limited Partner’s own expense: 
 (i) to obtain a copy of the most recent annual and quarterly
reports filed with the Commission by either the General Partner or the Partnership pursuant to the Exchange Act; 
 (ii) to
obtain a copy of the Partnership’s U.S. federal, state and local income tax returns for each Fiscal Year; 
 (iii) to
obtain a current list of the name and last known business, residence or mailing address of each Partner; 
 (iv) to obtain a
copy of this Agreement and the Certificate and all amendments thereto, together with executed copies of all powers of attorney pursuant to which this Agreement, the Certificate and all amendments thereto have been executed; and 

(v) to obtain true and full information regarding the amount of cash and a description and statement of any other property or
services contributed by each Partner and which each Partner has agreed to contribute in the future, and the date on which each became a Partner. 

  
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 B. Notice of Conversion Factor. The Partnership shall notify each Limited Partner upon
request of the then current Conversion Factor and any changes that have been made thereto. 
 C. Confidentiality. Notwithstanding any
other provision of this Section 8.5, the General Partner may keep confidential from the Limited Partners, for such period of time as the General Partner determines in its sole and absolute discretion to be reasonable, any information
that (i) the General Partner reasonably believes to be in the nature of trade secrets or other information the disclosure of which the General Partner in good faith believes is not in the best interests of the Partnership or could damage the
Partnership or its business or (ii) the Partnership is required by Applicable Law or by agreements with unaffiliated third parties to keep confidential. 

Section 8.6 Redemption Right 

A. General. 

(i) Subject to Section 8.6.C, on or after the date that is (1) with respect to Partnership Units issued prior
to or as of the REIT IPO (other than the MC Common Units), a twelve (12) month period ending on the day before the first (1st) anniversary of February 4, 2015, (2) with respect to Partnership Units (other than the MC Common Units)
issued after the completion of the REIT IPO, a twelve (12) month period ending on the day before the first (1st) anniversary of the issuance of such Partnership Units and (3) with respect to the MC Common Units, the six (6) month
anniversary of the issuance of the MC Common Units on February 4, 2015, each Limited Partner shall have the right (the “Redemption Right”) to require the Partnership to redeem all or a portion of the Partnership Units held by such
Limited Partner, with such redemption to occur on the Specified Redemption Date and at a redemption price equal to and in the form of the Cash Amount to be paid by the Partnership. Any such Redemption Right shall be exercised pursuant to a Notice of
Redemption delivered to the Partnership (with a copy to the General Partner) by the Limited Partner who is exercising the Redemption Right (the “Redeeming Partner”). 

(ii) The Redeeming Partner shall have no right with respect to any Partnership Units so redeemed to receive any distributions
paid after the Specified Redemption Date with respect to such Partnership Units. 
 (iii) The Assignee of any Limited Partner
may exercise the rights of such Limited Partner pursuant to this Section 8.6, and such Limited Partner shall be deemed to have assigned such rights to such Assignee and shall be bound by the exercise of such rights by such Limited
Partner’s Assignee. In connection with any exercise of 

  
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such rights by such Assignee on behalf of such Limited Partner, the Cash Amount shall be paid by the Partnership directly to such Assignee and not to such Limited Partner. 

B. General Partner Assumption of Right. 

(i) If a Limited Partner has delivered a Notice of Redemption, the General Partner may, in its sole and absolute discretion,
elect to assume directly and satisfy a Redemption Right by paying to the Redeeming Partner either the Cash Amount or the Shares Amount, as the General Partner determines in its sole and absolute discretion, on the Specified Redemption Date,
whereupon the General Partner shall acquire the Partnership Units offered for redemption by the Redeeming Partner and shall be treated for all purposes of this Agreement as the owner of such Partnership Units. Unless the General Partner, in its sole
and absolute discretion, shall exercise its right to assume directly and satisfy the Redemption Right, the General Partner shall not have any obligation to the Redeeming Partner or to the Partnership with respect to the Redeeming Partner’s
exercise of the Redemption Right. If the General Partner shall exercise its right to satisfy the Redemption Right in the manner described in the first sentence of this Section 8.6.B and shall fully perform its obligations in connection
therewith, the Partnership shall have no right or obligation to pay any amount to the Redeeming Partner with respect to such Redeeming Partner’s exercise of the Redemption Right, and each of the Redeeming Partner, the Partnership and the
General Partner shall, for U.S. federal income tax purposes, treat the transaction between the General Partner and the Redeeming Partner as a sale of the Redeeming Partner’s Partnership Units to the General Partner. Nothing contained in this
Section 8.6.B shall imply any right of the General Partner to require any Limited Partner to exercise the Redemption Right afforded to such Limited Partner pursuant to Section 8.6.A. 

(ii) If the General Partner determines to pay the Redeeming Partner the Redemption Amount in the form of Shares, the total
number of Shares to be paid to the Redeeming Partner in exchange for the Redeeming Partner’s Partnership Units shall be the applicable Shares Amount. If this amount is not a whole number of Shares, the Redeeming Partner shall be paid
(a) that number of Shares which equals the nearest whole number less than such amount plus (b) an amount of cash which the General Partner determines, in its reasonable discretion, to represent the fair value of the remaining fractional
Share which would otherwise be payable to the Redeeming Partner. The Shares Amount, if applicable, shall be delivered as duly authorized, validly issued, fully paid and nonassessable Shares and, if applicable, free of any pledge, lien, encumbrance
or restriction, other than those provided in the Charter or the Bylaws, the Securities Act, relevant state securities or blue sky laws and any applicable registration rights agreement with respect to such Shares entered into by the Redeeming
Partner. Notwithstanding any delay in such delivery (but subject to Section 8.6.C(i)), the Redeeming Partner shall be deemed the owner of such Shares for all purposes, including rights to vote or consent, and receive dividends, as of the
Specified Redemption Date. In addition, the Shares for which the Partnership Units might be exchanged shall also bear such restrictive legends that the General Partner determines are appropriate to mark transfer, ownership or other restrictions and
limitations applicable to the Shares. 
 (iii) Each Redeeming Partner agrees to execute such documents as the General Partner
may reasonably require in connection with the issuance of Shares upon exercise of the Redemption Right. 

  
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 C. Exceptions to Exercise of Redemption Right. 

(i) Notwithstanding the provisions of this Section 8.6 or any other provision of this Agreement, a Limited Partner
(a) shall not be entitled to effect a Redemption for cash or an exchange for Shares to the extent the ownership or right to acquire Shares pursuant to such exchange by such Limited Partner on the Specified Redemption Date could cause such
Limited Partner or any other Person to violate the restrictions on ownership and transfer of Shares set forth in the Charter of the General Partner and (b) shall have no rights under this Agreement to acquire Shares which would otherwise be
prohibited under the Charter. To the extent any attempted exercise of the Redemption Right or exchange for Shares would be in violation of this Section 8.6.C(i), it shall be null and void ab initio and such Limited Partner shall not
acquire any rights or economic interest in the cash otherwise payable upon such exercise of such Redemption Right or the Shares otherwise issuable upon such exchange. Notwithstanding the foregoing, the General Partner shall, and shall cause the
Partnership to, take reasonable steps to cooperate with any Limited Partner who exercises the Redemption Right to structure any such Redemption that would otherwise violate the restrictions on ownership and transfer of Shares set forth in the
Charter of the General Partner in a manner that will permit the Redemption without violating such restrictions. Such steps may include (x) satisfying the Redemption of any Partnership Units with respect to which the issuance of Shares would
result in the violation of the restrictions on ownership through the payment of the Cash Amount, (y) the General Partner selling in a registered or private offering Shares and causing the Redemption of Partnership Units with the proceeds from
such sales, or (z) otherwise structuring any sales by holders of Shares in a registered offering in manner that would not result in a Limited Partner violating the ownership restrictions set forth in the Charter of the General Partner. 

(ii) Notwithstanding the provisions of Sections 8.6.A and 8.6.B, a Partner shall not be entitled to exercise the
Redemption Right pursuant to Section 8.6.A if (but only as long as) the delivery of Shares to such Partner on the Specified Redemption Date would be prohibited under applicable U.S. federal or state securities laws or regulations (in
each case regardless of whether the General Partner would in fact assume and satisfy the Redemption Right). 
 D. Notwithstanding anything
herein to the contrary (but subject to Section 8.6.C), with respect to any exercise of the Redemption Right or exchange for Shares pursuant to this Section 8.6: (i) all Partnership Units acquired by the General Partner
pursuant thereto shall automatically, and without further action required, be converted into and deemed to be General Partnership Interests comprised of the same number and class of Partnership Units; (ii) without

  
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the consent of the General Partner, each Limited Partner may exercise the Redemption Right only one time in each fiscal quarter; (iii) without the consent of the General Partner, each
Limited Partner may not exercise its Redemption Right for less than one thousand (1,000) Partnership Units or, if the Limited Partner holds less than one thousand (1,000) Partnership Units, all of the Partnership Units held by such Limited
Partner; (iv) without the consent of the General Partner, each Limited Partner may not exercise its Redemption Right during the period after the Partnership Record Date with respect to a distribution and before the record date established by
the General Partner for a distribution to its Stockholders of some or all of its portion of such distribution; (v) the consummation of any exercise of the Redemption Right or exchange for Shares shall be subject to the expiration or termination
of the applicable waiting period, if any, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; and (vi) each Redeeming Partner shall continue to own all Partnership Units subject to any Redemption or exchange for Shares,
and be treated as a Limited Partner with respect to such Partnership Units for all purposes of this Agreement, until such Partnership Units are transferred to the General Partner and paid for or exchanged on the Specified Redemption Date. Until a
Specified Redemption Date, the Redeeming Partner shall have no rights as a Stockholder with respect to such Redeeming Partner’s Partnership Units. 

E. No Liens on Partnership Units Delivered for Redemption. Each Limited Partner covenants to the Partnership and the General Partner
that all Partnership Units delivered for redemption shall be delivered to the Partnership or the General Partner, as the case may be, free and clear of all liens; and, notwithstanding anything contained herein to the contrary, neither the General
Partner nor the Partnership shall be under any obligation to acquire Partnership Units which are or may be subject to any liens. Each Limited Partner further agrees that, if any state or local property transfer tax is payable as a result of the
transfer of its Partnership Units to the Partnership or the General Partner, such Limited Partner shall assume and pay such transfer tax. 

F. Additional Partnership Interests. If the Partnership issues Partnership Interests to any Additional Limited Partner pursuant to
Article IV, the General Partner shall make such revisions to this Section 8.6 as it determines are necessary to reflect the issuance of such Partnership Interests (including setting forth any restrictions on the exercise of the
Redemption Right with respect to such Partnership Interests). 
 ARTICLE IX 

BOOKS, RECORDS, ACCOUNTING AND REPORTS 

Section 9.1 Records and Accounting 

The General Partner shall keep or cause to be kept at the principal office of the Partnership appropriate books and records with respect to
the Partnership’s business, including all books and records necessary to provide to the Limited Partners any information, lists and copies of documents required to be provided pursuant to Section 8.5. Any records maintained by or on
behalf of the Partnership in the regular course of its business may be kept on, or be in the form of, punch cards, magnetic tape, photographs, micrographics or any other information storage device, provided that the records so maintained are
convertible into clearly legible written form within a reasonable period of time. The books of the Partnership shall be maintained, for financial and tax reporting purposes, on an accrual basis in accordance with GAAP. 

  
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 Section 9.2 Reports 

A. Annual Reports. As soon as practicable, but in no event later than five (5) Business Days after the date on which the General
Partner mails its annual report to its Stockholders, the General Partner shall cause to be mailed to each Limited Partner an annual report, as of the close of the most recently ended Fiscal Year, containing consolidated financial statements of the
Partnership, or of the General Partner if such statements are prepared solely on a consolidated basis with the Partnership, for such Fiscal Year, presented in accordance with GAAP, such statements to be audited by a nationally recognized firm of
independent registered public accountants selected by the General Partner. 
 B. Quarterly Reports. If and to the extent that the
General Partner mails quarterly reports to its Stockholders, as soon as practicable, but in no event later than the date on which such reports are mailed, the General Partner shall cause to be mailed to each Limited Partner a report containing
unaudited condensed consolidated financial statements of the Partnership, or of the General Partner if such statements are prepared solely on a consolidated basis with the Partnership, as of the last day of each fiscal quarter, presented in
accordance with GAAP, together with an update of material developments of the Investments and such other information as may be required by Applicable Laws or as the General Partner determines to be appropriate. 

C. Availability of Reports. The General Partner shall have satisfied its obligations under Section 9.2.A and 9.2.B
hereof by posting or making available the reports required by this Section 9.2 on the website maintained from time to time by the Partnership or the General Partnership provided that such reports are able to be printed or downloaded from
such website. 
 ARTICLE X 

TAX MATTERS 

Section 10.1 Preparation of Tax Returns 

The General Partner shall arrange for the preparation and timely filing of all returns of Partnership income, gains, deductions, losses and
other items required of the Partnership for U.S. federal and state income tax purposes and shall use all reasonable efforts to furnish, within one hundred and five (105) days of the close of each taxable year, the tax information reasonably
required by Limited Partners for U.S. federal and state income tax reporting purposes. 
 Section 10.2 Tax Elections 

Except as otherwise provided herein, the General Partner shall, in its sole and absolute discretion, determine whether to make any available
election pursuant to the Code; provided, however, that the General Partner shall make the election under Section 754 of the 

  
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Code in accordance with applicable regulations thereunder. The General Partner shall have the right to seek to revoke any such election (including the election under Section 754 of the Code)
upon the General Partner’s determination in its sole and absolute discretion that such revocation is in the best interests of the Partners. 

Section 10.3 Tax Matters Partner 

A. General. The General Partner shall be the “tax matters partner” of the Partnership for U.S. federal income tax purposes.
Pursuant to Section 6223(c)(3) of the Code, upon receipt of notice from the IRS of the beginning of an administrative proceeding with respect to the Partnership, the tax matters partner shall furnish the IRS with the name, address, taxpayer
identification number and profit interest of each of the Limited Partners and any Assignees; provided, however, that such information is provided to the Partnership by the Limited Partners. 

B. Powers. The tax matters partner is authorized, but not required: 

(i) to enter into any settlement with the IRS with respect to any administrative or judicial proceedings for the adjustment of
Partnership items required to be taken into account by a Partner for income tax purposes (such administrative proceedings being referred to as a “tax audit” and such judicial proceedings being referred to as “judicial review”),
and in the settlement agreement the tax matters partner may expressly state that such agreement shall bind all Partners, except that such settlement agreement shall not bind any Partner (i) who (within the time prescribed pursuant to the Code
and Regulations) files a statement with the IRS providing that the tax matters partner shall not have the authority to enter into a settlement agreement on behalf of such Partner or (ii) who is a “notice partner” (as defined in
Section 6231(a)(8) of the Code) or a member of a “notice group” (as defined in Section 6223(b)(2) of the Code); 

(ii) if a notice of a final administrative adjustment at the Partnership level of any item required to be taken into account by
a Partner for tax purposes (a “final adjustment”) is mailed to the tax matters partner, to seek judicial review of such final adjustment, including the filing of a petition for readjustment with the Tax Court or the filing of a complaint
for refund with the United States Claims Court or the District Court of the United States for the district in which the Partnership’s principal place of business is located; 

(iii) to intervene in any action brought by any other Partner for judicial review of a final adjustment; 

(iv) to file a request for an administrative adjustment with the IRS at any time and, if any part of such request is not
allowed by the IRS, to file an appropriate pleading (petition or complaint) for judicial review with respect to such request; 

(v) to enter into an agreement with the IRS to extend the period for assessing any tax which is attributable to any item
required to be taken into account by a Partner for tax purposes, or an item affected by such item; and 
 (vi) to take any
other action on behalf of the Partners of the Partnership in connection with any tax audit or judicial review proceeding to the extent permitted by Applicable Law or regulations. 

  
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 The taking of any action and the incurring of any expense by the tax matters partner in
connection with any such proceeding, except to the extent required by Applicable Law, is a matter in the sole and absolute discretion of the tax matters partner and the provisions relating to indemnification of the General Partner set forth in
Section 7.7 shall be fully applicable to the tax matters partner in its capacity as such. 
 C. Reimbursement. The tax
matters partner shall receive no compensation for its services. All third party costs and expenses incurred by the tax matters partner in performing its duties as such (including legal and accounting fees and expenses) shall be borne by the
Partnership. Nothing herein shall be construed to restrict the Partnership from engaging an accounting firm and/or law firm to assist the tax matters partner in discharging its duties hereunder, so long as the compensation paid by the Partnership
for such services is reasonable. 
 Section 10.4 [Reserved] 

Section 10.5 Withholding 

Each Limited Partner hereby authorizes the Partnership to withhold from or pay on behalf of or with respect to such Limited Partner any amount
of U.S. federal, state, local, or foreign taxes that the General Partner determines that the Partnership is required to withhold or pay with respect to any amount distributable or allocable to such Limited Partner pursuant to this Agreement,
including any taxes required to be withheld or paid by the Partnership pursuant to Section 1441, 1442, 1445, 1446 or 1471-1474 of the Code. Any amount paid on behalf of or with respect to a Limited Partner shall constitute a loan by the
Partnership to such Limited Partner, which loan shall be repaid by such Limited Partner within fifteen (15) days after notice from the General Partner that such payment must be made unless (i) the Partnership withholds such payment from a
distribution which would otherwise be made to the Limited Partner or (ii) the General Partner determines, in its sole and absolute discretion, that such payment may be satisfied out of the available funds of the Partnership which would, but for
such payment, be distributed to the Limited Partner. Any amounts withheld pursuant to the foregoing clauses (i) or (ii) shall be treated as having been distributed to such Limited Partner. Each Limited Partner hereby unconditionally and
irrevocably grants to the Partnership a security interest in such Limited Partner’s Partnership Interest to secure such Limited Partner’s obligation to pay to the Partnership any amounts required to be paid pursuant to this
Section 10.5. If a Limited Partner fails to pay any amounts owed to the Partnership pursuant to this Section 10.5 when due, the General Partner may, in its sole and absolute discretion, elect to make the payment to the
Partnership on behalf of such defaulting Limited Partner, and in such event shall be deemed to have loaned such amount to such defaulting Limited Partner and shall succeed to all rights and remedies of the Partnership as against such defaulting
Limited Partner (including the right to receive distributions). Any amounts payable by a Limited Partner hereunder shall bear interest at the base rate on corporate loans at large United States money center commercial banks, as published from time
to time in the Wall Street Journal, plus four (4) percentage points (but not higher than the maximum lawful rate under the laws of the State of Texas) from the date such 

  
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amount is due (i.e., fifteen (15) days after demand) until such amount is paid in full. Each Limited Partner shall take such actions as the Partnership or the General Partner shall request
to perfect or enforce the security interest created hereunder. 
 Section 10.6 Code Section 83 Safe Harbor Election 

By executing this Agreement, each Partner authorizes and directs the Partnership to elect to have the “Safe Harbor” described in the
proposed Revenue Procedure set forth in Internal Revenue Service Notice 2005-43 (the “Notice”) apply to any LTIP Units and any other interest in the Partnership transferred to a service provider by the Partnership on or after the
effective date of such Revenue Procedure in connection with services provided to the Partnership. For purposes of making such Safe Harbor election, the tax matters partner is hereby designated as the “partner who has responsibility for federal
income tax reporting” by the Partnership and, accordingly, execution of such Safe Harbor election by the tax matters partner constitutes execution of a “Safe Harbor Election” in accordance with Section 3.03(1) of the Notice. The
Partnership and each Partner hereby agree to comply with all requirements of the Safe Harbor described in the Notice, including the requirement that each Partner shall prepare and file all U.S. federal income tax returns reporting the income tax
effects of each “Safe Harbor Partnership Interest” (as described in Section 3.02 of the Notice) issued by the Partnership in a manner consistent with the requirements of the Notice. Each Partner authorizes the tax matters partner to
amend this Section 10.6 to the extent necessary to achieve substantially the same tax treatment with respect to any interest in the Partnership transferred to a service provider by the Partnership in connection with services provided to
the Partnership as set forth in Section 4 of the Notice (e.g., to reflect changes from the rules set forth in the Notice in subsequent IRS guidance), provided, that such amendment is not materially adverse to any Partner (as
compared with the after-tax consequences that would result if the provisions of the Notice applied to all interests in the Partnership transferred to a service provider by the Partnership in connection with services provided to the Partnership).

 Section 10.7 Limitation to Preserve REIT Status 

To the extent that any amount paid or credited to the General Partner or any of its officers, trustees, employees or agents pursuant to
Section 7.4 or Section 7.7 would constitute gross income to the General Partner for purposes of Section 856(c)(2) or 856(c)(3) of the Code (a “General Partner Payment”) then, notwithstanding any other
provision of this Agreement, the amount of such General Partner Payment for any Fiscal Year shall not exceed the lesser of: 
 A. an amount
equal to the excess, if any, of (a) 4% of the General Partner’s total gross income (not including the amount of any General Partner Payment) for the Fiscal Year over (b) the amount of gross income (within the meaning of
Section 856(c)(2) of the Code) derived by the General Partner from sources other than those described in subsections (A) through (I) of Section 856(c)(2) of the Code (not including the amount of any General Partner Payment); or

 B. an amount equal to the excess, if any of (a) 24% of the General Partner’s total gross income (not including the amount of
any General Partner Payment) for the Fiscal Year over (b) the amount of gross income (within the meaning of Section 856(c)(3) of the Code) 

  
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derived by the General Partner from sources other than those described in subsections (A) through (I) of Section 856(c)(3) of the Code (not including the amount of any General
Partner Payment); provided, however, that General Partner Payments in excess of the amounts set forth in paragraphs A. and B. above may be made if the General Partner, as a condition precedent, obtains an opinion of tax counsel that
the receipt of such excess amounts would not adversely affect the General Partner’s ability to qualify as a REIT. To the extent General Partner Payments may not be made in any Fiscal Year due to the foregoing limitations, such General Partner
Payments shall carry over and be treated as arising in the following Fiscal Year; provided however, that (i) as General Partner Payments are made, such payments shall be applied first to carry over amounts outstanding, if any, and
(ii) with respect to carry over amounts for more than one Fiscal Year, such payments shall be applied to the earliest Fiscal Year first. 

ARTICLE XI 
 TRANSFERS
AND WITHDRAWALS 
 Section 11.1 Transfer 

No Partnership Interest shall be Transferred, in whole or in part, except in accordance with the terms and conditions set forth in this
Article XI. Any Transfer or purported Transfer of a Partnership Interest not made in accordance with this Article XI shall be null and void. No part of the interest of a Limited Partner shall be subject to the claims of any creditor or
any spouse for alimony or support or to legal process, and may not be voluntarily or involuntarily alienated or encumbered except as may be specifically provided for in this Agreement. 

Section 11.2 Transfers of Partnership Interests of General Partner 

A. Except as provided in Section 11.2.B or Section 11.2.C, and subject to the rights of any Holder of any Partnership
Interest set forth in a Partnership Unit Designation, the General Partner may not Transfer all or any portion of its Partnership Interest (whether by sale, disposition, statutory merger or consolidation, liquidation or otherwise) without the Consent
of the Limited Partners. It is a condition to any Transfer of a Partnership Interest of a General Partner otherwise permitted hereunder (including any Transfer permitted pursuant to Section 11.2.B or Section 11.2.C) that:
(i) coincident with such Transfer, the transferee is admitted as a General Partner pursuant to Section 12.1 hereof; (ii) the transferee assumes, by operation of law or express agreement, all of the obligations of the transferor
General Partner under this Agreement with respect to such transferred Partnership Interest; and (iii) the transferee has executed such instruments as may be necessary to effectuate such admission and to confirm the agreement of such transferee
to be bound by all the terms and provisions of this Agreement with respect to the Partnership Interest so acquired and the admission of such transferee as a General Partner. 

B. Subject to the rights of any Holder of any Partnership Interest set forth in a Partnership Unit Designation, the General Partner may,
without the Consent of the Limited Partners, Transfer all of its Partnership Interest in connection with (a) a merger, consolidation or other combination of its or the Partnership’s assets with another entity, (b) a sale of all or

  
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substantially all of its or the Partnership’s assets not in the ordinary course of the Partnership’s business or (c) a reclassification, recapitalization or change of any
outstanding shares of the General Partner’s stock or other outstanding equity interests (each, a “Termination Transaction”) if: 

(i) in connection with such Termination Transaction, all of the Limited Partners will receive, or will have the right to elect
to receive, for each Partnership Unit an amount of cash, securities or other property equal to the product of the Conversion Factor and the greatest amount of cash, securities or other property paid to a holder of one Share in consideration of one
Share pursuant to the terms of such Termination Transaction; provided, that if, in connection with such Termination Transaction, a purchase, tender or exchange offer shall have been made to and accepted by the holders of the outstanding
Shares, each holder of Partnership Units shall receive, or shall have the right to elect to receive, the greatest amount of cash, securities or other property which such holder of Partnership Units would have received had it exercised its Redemption
Right pursuant to Section 8.6 hereof and received Shares in exchange for its Partnership Units immediately prior to the expiration of such purchase, tender or exchange offer and had thereupon accepted such purchase, tender or exchange
offer and then such Termination Transaction shall have been consummated; or 
 (ii) all of the following conditions are met:
(w) substantially all of the assets directly or indirectly owned by the surviving entity are owned directly or indirectly by the Partnership or another limited partnership or limited liability company which is the survivor of a merger,
consolidation or combination of assets with the Partnership (in each case, the “Surviving Partnership”); (x) Limited Partners that held Partnership Units immediately prior to the consummation of such Termination Transaction own
a percentage interest of the Surviving Partnership based on the relative fair market value of the net assets of the Partnership and the other net assets of the Surviving Partnership immediately prior to the consummation of such transaction;
(y) the rights, preferences and privileges in the Surviving Partnership of such Limited Partners are at least as favorable as those in effect with respect to the Partnership Units immediately prior to the consummation of such transaction and as
those applicable to any other limited partners or non-managing members of the Surviving Partnership; and (z) the rights of such Limited Partners include at least one of the following: (a) the right to redeem their interests in the
Surviving Partnership for the consideration available to such persons pursuant to Section 11.2.B(i) or (b) the right to redeem their interests in the Surviving Partnership for cash on terms substantially equivalent to those in
effect with respect to their Partnership Units immediately prior to the consummation of such transaction, or, if the ultimate controlling person of the Surviving Partnership has publicly traded common equity securities, such common equity
securities, with an exchange ratio based on the determination of relative fair market value of such securities and the Shares. 
 C.
Notwithstanding the other provisions of this Article XI (other than Section 11.6.E hereof), the General Partner may Transfer all of its Partnership Interests at any time to any Person that is, at the time of such Transfer, an Affiliate
of the General Partner, including any 

  
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“qualified REIT subsidiary” (within the meaning of Section 856(i)(2) of the Code), without the Consent of any Limited Partners. The provisions of Section 11.2.B,
11.3, 11.4.A and 11.5 hereof shall not apply to any Transfer permitted by this Section 11.2.C. 
 D. Except
in connection with Transfers permitted in this Article XI and as otherwise provided in Section 12.1 in connection with the Transfer of the General Partner’s entire Partnership Interest, the General Partner may not voluntarily
withdraw as a general partner of the Partnership without the Consent of the Limited Partners. 
 Section 11.3 Limited Partners’
Rights to Transfer 
 A. General. Subject to the provisions of Sections 11.3.C, 11.3.D, 11.3.E, 11.4
and 11.6, a Limited Partner (other than the General Partner) may transfer, with the consent of the General Partner, which may be granted or withheld in the sole and absolute discretion of the General Partner, all or any portion of its
Partnership Interest, or any of such Limited Partner’s rights as a Limited Partner, provided that prior written notice of such proposed Transfer is delivered to the General Partner. Notwithstanding the foregoing, any Limited Partner may,
at any time, without prior notice to the General Partner, Transfer all or any portion of its Partnership Interest to the General Partner or, subject to Section 11.3.C-E and Section 11.6, any Permitted Transferee. Any Transfer
to a Permitted Transferee will require coordination with the General Partner to ensure that such Transfer does not violate Section 11.3.C-E and Section 11.6, and the General Partner may require, as a condition to any such
Transfer, reasonable assurances that no such violation has occurred. 
 It is a condition to any transfer otherwise permitted hereunder
(excluding pledges of a Partnership Interest, but including any transfer of the pledged Partnership Interest, whether to the secured party or otherwise, pursuant to the secured party’s exercise of its remedies under such pledge or the related
loan or extension of credit) that (i) the transferee assumes by operation of law or express agreement all of the obligations of the transferor Limited Partner under this Agreement with respect to such Transferred Partnership Interest,
(ii) no such Transfer (other than a Transfer to a Permitted Transferee, a Transfer to a Qualified Transferee or a Transfer pursuant to a statutory merger or consolidation wherein all obligations and liabilities of the transferor Partner are
assumed by a successor corporation by operation of law) shall relieve the transferor Partner of its obligations under this Agreement without the approval of the General Partner, in its reasonable discretion, and (iii) such Transfer is effective
as of the first day of a fiscal quarter of the Partnership. Any transferee, whether or not admitted as a Substituted Limited Partner, shall take the Transferred Partnership Interest subject to the obligations of the transferor hereunder. Unless
admitted as a Substituted Limited Partner, no transferee, whether by a voluntary Transfer, by operation of law or otherwise, shall have rights hereunder, other than the rights of an Assignee as provided in Section 11.5. 

B. Incapacitated Limited Partners. If a Limited Partner is subject to Incapacity, the executor, administrator, trustee, committee,
guardian, conservator or receiver of such Limited Partner’s estate shall have all the rights of a Limited Partner, but not more rights than those enjoyed by other Limited Partners for the purpose of settling or managing the estate and such
power as the Incapacitated Limited Partner possessed to transfer all or any part of its interest in the Partnership. The Incapacity of a Limited Partner, in and of itself, shall not dissolve or terminate the Partnership. 

  
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 C. No Transfers Violating Securities Laws. The General Partner may prohibit any Transfer
of Partnership Units by a Limited Partner unless the Partnership receives a written opinion of legal counsel (which opinion and counsel shall be reasonably satisfactory to the Partnership) to such Limited Partner or the Partnership (or other
evidence reasonably satisfactory to the General Partner) that such Transfer would not require the filing of a registration statement under the Securities Act, would not require the General Partner to register as an investment adviser under the
Advisers Act, would not require the Partnership to register as an investment company under the Investment Company Act, and would not otherwise violate any U.S. federal or state securities laws or regulations applicable to the General Partner, the
Partnership or the Partnership Units. 
 D. No Transfers Affecting Tax Status of Partnership. No Transfer of Partnership Units by a
Limited Partner (including a redemption or exchange pursuant to Section 8.6) may be made to any Person if (i) in the opinion of legal counsel for the Partnership, it would create a material risk of the Partnership being treated as
an association taxable as a corporation for U.S. federal income tax purposes or would result in a termination of the Partnership for U.S. federal income tax purposes (except as a result of the redemption or exchange for Shares of all Partnership
Units held by all Limited Partners other than the General Partner or any Subsidiary of the General Partner or pursuant to a transaction expressly permitted under Section 11.2), (ii) in the opinion of legal counsel for the General
Partner, it would adversely affect the ability of the General Partner to continue to qualify as a REIT or would subject the General Partner to any additional taxes under Section 856, Section 857 or Section 4981 of the Code or
(iii) such Transfer is effectuated through an “established securities market” or a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code (provided that this clause
(iii) shall not be the basis for limiting or restricting in any manner the exercise of the Redemption Right under Section 8.6 unless, and only to the extent that, outside tax counsel provides to the General Partner an opinion to the
effect that, in the absence of such limitation or restriction, there is a significant risk that the Partnership will be treated as a “publicly traded partnership” and, by reason thereof, taxable as a corporation). 

E. No Transfers to Holders of Nonrecourse Liabilities. No pledge or other Transfer of any Partnership Units may be made to a lender to
the Partnership or any Person who is related (within the meaning of Section 1.752-4(b) of the Regulations) to any lender to the Partnership whose loan constitutes a Nonrecourse Liability unless (i) the General Partner is provided notice
thereof and (ii) the lender enters into an arrangement with the Partnership and the General Partner to exchange or redeem for the Redemption Amount any Partnership Units in which a security interest is held simultaneously with the time at which
such lender would be deemed to be a partner in the Partnership for purposes of allocating liabilities to such lender under Section 752 of the Code. 

Section 11.4 Substituted Limited Partners 

A. Consent of General Partner. No Limited Partner shall have the right to substitute a transferee as a Limited Partner in its place.
The General Partner shall, however, have 

  
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the right to consent to the admission of a transferee of the interest of a Limited Partner pursuant to this Section 11.4 as a Substituted Limited Partner, which consent may be given
or withheld by the General Partner in its reasonable discretion; provided, that in the case of a Transfer to a Permitted Transferee or a Transfer to a Qualified Transferee, the General Partner shall have no right to consent to the admission
of such Permitted Transferee or Qualified Transferee, as applicable, as a Substituted Limited Partner if such Permitted Transferee or Qualified Transferee assumes all of the obligations of the transferor Limited Partner under this Agreement with
respect to such Partnership Units. If the General Partner denies admission of a proposed transferee of Partnership Units, the General Partner shall provide to the transferor or proposed transferor of such Partnership Units written notice setting
forth the reasons for such denial. 
 B. Rights of Substituted Limited Partner. A transferee who has been admitted as a Substituted
Limited Partner in accordance with this Article XI shall have all the rights and powers and be subject to all the restrictions and liabilities of a Limited Partner under this Agreement. The admission of any transferee as a Substituted Limited
Partner shall be conditioned upon the transferee executing and delivering to the Partnership an acceptance of all the terms and conditions of this Agreement and such other documents or instruments as may be required to effect the admission. 

C. Partner Registry. Upon the admission of a Substituted Limited Partner, the General Partner shall include the name, address, Capital
Account and number and class of Partnership Units of such Substituted Limited Partner on the Partner Registry and eliminate or adjust, if necessary, the name, address, Capital Account and number and class of Partnership Units of the predecessor of
such Substituted Limited Partner on the Partner Registry. 
 Section 11.5 Assignees 

If the General Partner, in its reasonable discretion, does not consent to the admission of any permitted transferee under
Section 11.3 as a Substituted Limited Partner, as described in Section 11.4, such transferee shall be considered an Assignee for purposes of this Agreement. An Assignee shall be entitled to all the rights of an assignee of a
limited partnership interest under the LP Act, including the right to receive distributions from the Partnership and the share of Net Income, Net Losses, gain, loss and Recapture Income attributable to the Partnership Units assigned to such
transferee, and shall have the rights granted to the Limited Partners under Section 8.6, but shall not be deemed to be a holder of Partnership Units for any other purpose under this Agreement, and shall not be entitled to vote such
Partnership Units in any matter presented to the Limited Partners for a vote (such Partnership Units being deemed to have been voted on such matter in the same proportion as all other Partnership Units held by Limited Partners are voted). If any
such transferee desires to make a further assignment of any such Partnership Units, such transferee shall be subject to all the provisions of this Article XI to the same extent and in the same manner as any Limited Partner desiring to make an
assignment of Partnership Units. 
 Section 11.6 General Provisions 

A. Withdrawal of Limited Partner. No Limited Partner may withdraw from the Partnership other than as a result of a permitted Transfer
of all of such Limited Partner’s Partnership Units in accordance with this Article XI or pursuant to redemption of all of its Partnership Units under Section 8.6 and/or pursuant to any Partnership Unit Designation. 

  
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 B. Termination of Status as Limited Partner. Any Limited Partner who shall transfer all of
its Partnership Units in a Transfer permitted pursuant to this Article XI or pursuant to redemption of all of its Partnership Units under Section 8.6 shall cease to be a Limited Partner. 

C. Timing of Transfers. Transfers pursuant to this Article XI may only be made upon three Business Days prior notice, unless the
General Partner otherwise agrees. 
 D. Allocations. If any Partnership Interest is transferred during any quarterly segment of the
Partnership’s Fiscal Year in compliance with the provisions of this Article XI or redeemed pursuant to Section 8.6, Net Income, Net Losses, each item thereof and all other items attributable to such interest for such Fiscal
Year shall be divided and allocated between the transferor Partner and the transferee Partner by taking into account their varying interests during the Fiscal Year in accordance with Section 706(d) of the Code, using the interim closing of the
books method (unless the General Partner, in its sole and absolute discretion, elects to adopt a daily, weekly, or a monthly proration period, in which event Net Income, Net Losses, each item thereof and all other items attributable to such interest
for such Fiscal Year shall be prorated based upon the applicable method selected by the General Partner). Solely for purposes of making such allocations, each of such items for the calendar month in which the transfer or redemption occurs shall be
allocated to the Person who is a Partner as of midnight on the last day of said month. All distributions of Cash From Operations attributable to any Partnership Unit with respect to which the Partnership Record Date is before the date of such
Transfer or redemption shall be made to the transferor Partner or the Redeeming Partner, as the case may be, and, in the case of a Transfer other than a redemption, all distributions of Cash From Operations thereafter attributable to such
Partnership Unit shall be made to the transferee Partner. 
 E. Additional Restrictions. In addition to any other restrictions on
Transfer herein contained, including the provisions of this Article XI, in no event may any Transfer of a Partnership Interest by any Partner (including pursuant to Section 8.6) be made without the express consent of the General
Partner, in its sole and absolute discretion, (i) to any Person who lacks the legal right, power or capacity to own a Partnership Interest; (ii) in violation of Applicable Law; (iii) of any component portion of a Partnership Interest,
such as the Capital Account, or rights to distributions, separate and apart from all other components of a Partnership Interest; (iv) if in the opinion of legal counsel to the Partnership such Transfer would cause a termination of the
Partnership for U.S. federal or state income tax purposes (except as a result of the redemption or exchange for Shares of all Partnership Units held by all Limited Partners or pursuant to a transaction expressly permitted under
Section 11.2); (v) if in the opinion of counsel to the Partnership, such Transfer would cause the Partnership to cease to be classified as a partnership for U.S. federal income tax purposes (except as a result of the redemption or
exchange for Shares of all Partnership Units held by all Limited Partners or pursuant to a transaction expressly permitted under Section 11.2); (vi) if such Transfer would cause the Partnership Interests of Benefit Plan Investors to
become “significant,” within the meaning of the Plan Asset Regulation or would cause the Partnership to become, with respect to any Benefit Plan Investor, a “party-in-interest” (as defined in Section 3(14) of ERISA) or a
“disqualified person” (as defined in Section 4975(c) of the Code); (vii) if such Transfer requires the 

  
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registration of such Partnership Interest pursuant to any applicable federal or state securities laws; (viii) if such Transfer is effectuated through an “established securities
market” or a “secondary market” (or the substantial equivalent thereof) within the meaning of Section 7704 of the Code or such Transfer causes the Partnership to become a “publicly traded partnership,” as such term is
defined in Section 469(k)(2) or Section 7704(b) of the Code (provided that this clause (viii) shall not be the basis for limiting or restricting in any manner the exercise of the Redemption Right under Section 8.6
unless, and only to the extent that, outside tax counsel provides to the General Partner an opinion to the effect that, in the absence of such limitation or restriction, there is a significant risk that the Partnership will be treated as a
“publicly traded partnership” and, by reason thereof, taxable as a corporation); (ix) if such Transfer subjects the Partnership to regulation under the Investment Company Act or the Advisers Act; (x) such Transfer could adversely
affect the ability of the General Partner to remain qualified as a REIT; or (xi) if in the opinion of legal counsel for the transferring Partner (which opinion and counsel shall be reasonably satisfactory to the Partnership) or legal counsel
for the Partnership, such Transfer would adversely affect the ability of the General Partner to qualify as a REIT or subject the General Partner to any taxes under Section 856, Section 857 or Section 4981 of the Code. 

F. Avoidance of “Publicly Traded Partnership” Status. The General Partner shall monitor the Transfers of interests in the
Partnership to determine (i) if such interests are being traded on an “established securities market” or a “secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code and
(ii) whether additional Transfers of interests would result in the Partnership being unable to qualify for at least one of the “safe harbors” set forth in Regulations Section 1.7704-1 (or such other guidance subsequently
published by the IRS setting forth safe harbors under which interests will not be treated as “readily tradable on a secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Code) (the
“Safe Harbors”). The General Partner shall take all steps reasonably necessary or appropriate to prevent any trading of interests or any recognition by the Partnership of Transfers made on such markets and, except as otherwise
provided herein, to insure that at least one of the Safe Harbors is met; provided, however, that the foregoing shall not authorize the General Partner to limit or restrict in any manner the right of any holder of a Partnership Unit to
exercise the Redemption Right in accordance with the terms of Section 8.6 unless, and only to the extent that, outside tax counsel provides to the General Partner an opinion to the effect that, in the absence of such limitation or
restriction, there is a significant risk that the Partnership will be treated as a “publicly traded partnership” and, by reason thereof, taxable as a corporation. 

G. Indemnification. 

(i) The transferor and transferee of a Partner’s interest shall be jointly and severally obligated to reimburse the
Partnership for all expenses (including legal fees) incurred by or on behalf of the Partnership in connection with any Transfer. If, under Applicable Law, a Transfer of an interest in the Partnership that does not comply with this Article XI
is nevertheless legally effective, the transferor and transferee shall be jointly and severally liable to the Partnership for, and shall indemnify and hold harmless the Partnership against, any losses, damages or expenses (including attorneys’
fees, judgments, fines and amounts paid in settlement) actually and reasonably incurred by them in connection with such Transfer. 

  
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 (ii) To the fullest extent permitted under Applicable Law, each Partner shall
indemnify and hold harmless the Partnership and all other Partners who were or are parties, or are threatened to be made parties, to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or
investigative, by reason of or arising from any actual or alleged misrepresentation, misstatement of facts or omission to state facts made (or omitted to be made), noncompliance with any agreement or failure to perform any covenant by any such
Partner in connection with any Transfer of all or any portion of such Partner’s interest (or any economic interest therein) in the Partnership, against any losses, damages or expenses (including attorneys’ fees, judgments, fines and
amounts paid in settlement) actually and reasonably incurred by it or them in connection with such action, suit or proceeding and for which it or they have not otherwise been reimbursed. 

ARTICLE XII 
 ADMISSION
OF PARTNERS 
 Section 12.1 Admission of a Successor General Partner 

A successor to all of the General Partner’s General Partnership Interest pursuant to Section 11.2 who is proposed to be
admitted as a successor General Partner shall be admitted to the Partnership as the General Partner, effective upon such Transfer. Any such successor shall carry on the business of the Partnership without dissolution. In such case, the admission
shall be subject to such successor General Partner executing and delivering to the Partnership an acceptance of all of the terms and conditions of this Agreement and such other documents or instruments as may be required to effect the admission.

 Section 12.2 Admission of Additional Limited Partners 

A. General. No Person shall be admitted as an Additional Limited Partner without the consent of the General Partner, which consent may
be given or withheld in the General Partner’s sole and absolute discretion, subject to Section 7.9.E. A Person who makes a Capital Contribution to the Partnership in accordance with this Agreement, including under
Section 4.2.A, or who exercises an option to receive Partnership Units shall be admitted to the Partnership as an Additional Limited Partner only with the consent of the General Partner and only upon furnishing to the General Partner
(i) evidence of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement, and (ii) such other documents or instruments as may be required in the discretion of the General Partner to effect
such Person’s admission as an Additional Limited Partner. The admission of any Person as an Additional Limited Partner shall become effective on the date upon which the name of such Person is recorded in the Partner Registry, following the
consent of the General Partner to such admission. 
 B. Allocations to Additional Limited Partners. If any Additional Limited Partner
is admitted to the Partnership on any day other than the first day of a Fiscal Year, then Net Income, Net Losses, each item thereof and all other items allocable among Partners and Assignees for such Fiscal Year shall be allocated among such
Additional Limited Partner and all 

  
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other Partners and Assignees by taking into account their varying interests during the Fiscal Year in accordance with Section 706(d) of the Code, using the interim closing of the books
method (unless the General Partner, in its sole and absolute discretion, elects to adopt a daily, weekly or monthly proration method, in which event Net Income, Net Losses, and each item thereof would be prorated based upon the applicable period
selected by the General Partner). Solely for purposes of making such allocations, each of such items for the calendar month in which an admission of any Additional Limited Partner occurs shall be allocated among all the Partners and Assignees
including such Additional Limited Partner. All distributions of Cash From Operations with respect to which the Partnership Record Date is before the date of such admission shall be made solely to Partners and Assignees other than the Additional
Limited Partner, and all distributions of Cash From Operations thereafter shall be made to all the Partners and Assignees including such Additional Limited Partner. 

Section 12.3 Amendment of Agreement and Certificate of Limited Partnership 

For the admission to the Partnership of any Partner, the General Partner shall take all steps necessary and appropriate under the LP Act to
amend the records of the Partnership and, if necessary, to prepare as soon as practical an amendment of this Agreement and, if required by Applicable Law, shall prepare and file an amendment to the Certificate. 

Section 12.4 Limit on Number of Partners 

Unless otherwise permitted by the General Partner, no Person shall be admitted to the Partnership as an Additional Limited Partner if the
effect of such admission would be to cause the Partnership to have a number of Partners that would cause the Partnership to become a reporting company under the Exchange Act. 

ARTICLE XIII 

DISSOLUTION AND LIQUIDATION 

Section 13.1 Dissolution 

The Partnership shall not be dissolved by the admission of Substituted Limited Partners or Additional Limited Partners or by the admission of
a successor General Partner in accordance with the terms of this Agreement. Upon the withdrawal of the General Partner, any successor General Partner shall continue the business of the Partnership. The Partnership shall dissolve, and its affairs
shall be wound up, upon the first to occur of any of the following (“Liquidating Events”): 
 (i) an event
of withdrawal of the General Partner, as defined in the LP Act (other than an event of bankruptcy), unless within ninety (90) days after the withdrawal a “majority in interest” (as defined below) of the remaining Partners consent in
writing to continue the business of the Partnership and to the appointment, effective as of the date of withdrawal, of a substitute General Partner; 

(ii) an election to dissolve the Partnership made by the General Partner that is approved by the Holders of at least a majority
in interest (and all Holders of Partnership Units hereby expressly consent that such approval may be effected upon written consent of said applicable percentage of such outstanding Partnership Units); 

  
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 (iii) entry of a decree of judicial dissolution of the Partnership pursuant to
the provisions of the LP Act; 
 (iv) the sale of all or substantially all of the assets and properties of the Partnership
for cash or for marketable securities; 
 (v) a good faith determination by the General Partner that dissolution of the
Partnership is necessary or desirable to avoid any material adverse consequences to the Partnership, the General Partner, the directors or the officers of the General Partner as a result of any law applicable to a Regulated Investor; or 

(vi) a final and non-appealable judgment is entered by a court of competent jurisdiction ruling that the General Partner is
bankrupt or insolvent, or a final and non-appealable order for relief is entered by a court with appropriate jurisdiction against the General Partner, in each case under any federal or state bankruptcy or insolvency laws as now or hereafter in
effect, unless prior to or at the time of the entry of such order or judgment a “majority in interest” (as defined below) of the remaining Partners consent in writing to continue the business of the Partnership and to the appointment,
effective as of a date prior to the date of such order or judgment, of a substitute General Partner. 
 As used in this Article XIII,
a “majority in interest” shall refer to Partners (including the General Partner) who hold more than fifty percent (50%) of the outstanding Partnership Units. 

Section 13.2 Winding Up 

A. General. Upon the occurrence of a Liquidating Event, the Partnership shall continue solely for the purposes of winding up its
affairs in an orderly manner, liquidating its assets, and satisfying the claims of its creditors and Partners. No Partner shall take any action that is inconsistent with, or not necessary to or appropriate for, the winding up of the
Partnership’s business and affairs. The General Partner (or, if there is no remaining General Partner, any Person elected by a majority in interest of the Limited Partners (the “Liquidator”)) shall be responsible for overseeing
the winding up and dissolution of the Partnership and shall take full account of the Partnership’s liabilities and property and the Partnership property shall be liquidated as promptly as is consistent with obtaining the fair value thereof, and
the proceeds therefrom (which may, to the extent determined by the General Partner, include equity or other securities of the General Partner or any other Entity) shall be applied and distributed in the following order: 

(i) First, to the payment and discharge of all of the Partnership’s liabilities to creditors other than the Partners; 

(ii) Second, to the payment and discharge of all of the Partnership’s liabilities to the General Partner; 

  
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 (iii) Third, to the payment and discharge of all of the Partnership’s
liabilities to the Limited Partners; 
 (iv) Fourth, to the Holders of Partnership Units that are entitled to any preference
in distribution upon liquidation in accordance with the rights of any such class or series of Partnership Units, including Preferred Units (and, within each such class or series, to each holder thereof pro rata based on the proportion of the total
number of outstanding units of such class or series represented by such holder’s units of such series or class) and as otherwise provided in Article V; and 

(v) The balance, if any, to the Partners in accordance with the positive balances of their respective Capital Accounts, after
taking into account all adjustments to their Capital Accounts for all periods. 
 It is the intention of the Partners that distributions made pursuant to
clause (v) of this Section 13.2.A shall be made in the same manner as if such distributions were made pursuant to Section 5.1. 

The General Partner shall not receive any additional compensation for any services performed pursuant to this Article XIII. 

B. Deferred Liquidation. Notwithstanding the provisions of Section 13.2.A which require liquidation of the assets of the
Partnership, but subject to the order of priorities set forth therein, if prior to or upon dissolution of the Partnership the Liquidator determines that an immediate sale of part or all of the Partnership’s assets would be impractical or would
cause undue loss to the Partners, the Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation of any assets except those necessary to satisfy liabilities of the Partnership (including to those Partners as
creditors) or distribute to the Partners, in lieu of cash, as tenants in common and in accordance with the provisions of Section 13.2.A, undivided interests in such Partnership assets as the Liquidator deems not suitable for liquidation.
Any such distributions in-kind shall be made only if, in the good faith judgment of the Liquidator, such distributions in-kind are in the best interest of the Partners, and shall be subject to such conditions relating to the disposition and
management of such properties as the Liquidator deems reasonable and equitable and to any agreements governing the operation of such properties at such time. The Liquidator shall determine the fair market value of any property distributed in-kind
using such reasonable method of valuation as it may adopt. 
 Section 13.3 Compliance With Timing Requirements of Regulations; Restoration of
Deficit Capital Accounts 
 A. Timing of Distributions. If the Partnership is “liquidated” within the meaning of
Regulations Section 1.704-1(b)(2)(ii)(g), distributions shall be made under this Article XIII to the General Partner and Limited Partners who have positive Capital Accounts in compliance with Regulations
Section 1.704-1(b)(2)(ii)(b)(2). In the discretion of the General Partner, a pro rata portion of the distributions that would otherwise be made to the General Partner and Limited Partners pursuant to this Article XIII may be:
(A) distributed to a trust established for the benefit of the General Partner and Limited Partners for the purposes of 

  
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liquidating Partnership assets, collecting amounts owed to the Partnership and paying any contingent or unforeseen liabilities or obligations of the Partnership or of the General Partner arising
out of or in connection with the Partnership (in which case the assets of any such trust shall be distributed to the General Partner and Limited Partners from time to time, in the reasonable discretion of the General Partner, in the same proportions
as the amount distributed to such trust by the Partnership would otherwise have been distributed to the General Partner and Limited Partners pursuant to this Agreement); or (B) withheld to provide a reasonable reserve for Partnership
liabilities (contingent or otherwise) and to reflect the unrealized portion of any installment obligations owed to the Partnership; provided, that such withheld amounts shall be distributed to the General Partner and Limited Partners as soon
as practicable. 
 B. Restoration of Deficit Capital Accounts Upon Liquidation of the Partnership. If any Partner has a deficit
balance in its Capital Account (after giving effect to all contributions, distributions and allocations for all taxable years, including the year during which such liquidation occurs), such Partner shall have no obligation to make any contribution
to the capital of the Partnership with respect to such deficit, and such deficit shall not be considered a Debt owed to the Partnership or to any other Person for any purpose whatsoever, except as otherwise expressly agreed in writing by the
affected Partner and the Partnership after the date hereof. 
 Section 13.4 Rights of Limited Partners 

Except as otherwise provided in this Agreement and subject to the rights of any Holder of any Partnership Interest set forth in a Partnership
Unit Designation, each Limited Partner shall look solely to the assets of the Partnership for the return of its Capital Contributions and shall have no right or power to demand or receive property other than cash from the Partnership. Except as
otherwise expressly provided in this Agreement, no Limited Partner shall have priority over any other Limited Partner as to the return of its Capital Contributions, distributions, or allocations. 

Section 13.5 Notice of Dissolution 

If a Liquidating Event occurs or an event occurs that would, but for provisions of an election or objection by one or more Partners pursuant
to Section 13.1, result in a dissolution of the Partnership, the General Partner shall, within thirty (30) days thereafter, provide written notice thereof to each of the Partners and to all other parties with whom the Partnership
regularly conducts business (as determined in the discretion of the General Partner). 
 Section 13.6 Cancellation of Certificate of
Limited Partnership 
 Upon the completion of the liquidation of the Partnership cash and property as provided in
Section 13.2, the Partnership shall be terminated and the Certificate and all qualifications of the Partnership as a foreign limited partnership in jurisdictions other than the State of Delaware shall be canceled and such other actions
as may be necessary to terminate the Partnership shall be taken. 

  
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 Section 13.7 Reasonable Time For Winding Up 

A reasonable time shall be allowed for the orderly winding up of the business and affairs of the Partnership and the liquidation of its assets
pursuant to Section 13.2, to minimize any losses otherwise attendant upon such winding-up, and the provisions of this Agreement shall remain in effect among the Partners during the period of liquidation. 

Section 13.8 Waiver of Partition 

Each Partner hereby waives any right to partition of the Partnership property. 

Section 13.9 Liability of Liquidator 

The Liquidator shall be indemnified and held harmless by the Partnership in the same manner and to the same degree as a Covered Person may be
indemnified pursuant to Section 7.7. 
 ARTICLE XIV 

AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS 

Section 14.1 Amendments 

A. General. Amendments to this Agreement may be proposed by the General Partner. Following such proposal (except an amendment pursuant
to Section 14.1.B), the General Partner shall submit any proposed amendment to the Partners. The General Partner shall seek the written vote of the Partners on the proposed amendment or shall call a meeting to vote thereon and to
transact any other business that it may deem appropriate. For purposes of obtaining a written vote, the General Partner may require a response within a reasonable specified time, but not less than fifteen (15) days, and failure to respond in
such time period shall constitute a vote which is consistent with the General Partner’s recommendation with respect to the proposal. Except as provided in this Agreement (including Sections 14.1.B, 14.1.C and 14.1.D), a
proposed amendment shall be adopted and be effective as an amendment hereto if it is approved by the General Partner and it receives the Consent of Partners holding a majority of the Partnership Units (including Partnership Units held by the General
Partner). 
 B. Amendments Not Requiring Limited Partner Approval. Notwithstanding Section 14.1.A, the General Partner
shall have the power, without the Consent of the Partners, to amend this Agreement as may be required to facilitate or implement any of the following purposes: 

(i) to add to the obligations of the General Partner or surrender any right or power granted to the General Partner or any
Affiliate of the General Partner for the benefit of the Limited Partners; 
 (ii) to reflect the admission, substitution,
termination, or withdrawal of Partners in accordance with this Agreement; 
 (iii) to set forth the designations, rights,
powers, duties, and preferences of the holders of any additional Partnership Interests issued pursuant to Article IV; 

  
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 (iv) to reflect a change that does not adversely affect the Limited Partners in
any material respect, or to cure any ambiguity, correct or supplement any provision in this Agreement not inconsistent with Applicable Law or with other provisions of this Agreement, or make other changes with respect to matters arising under this
Agreement that will not be inconsistent with Applicable Law or with the provisions of this Agreement; 
 (v) to satisfy any
requirements, conditions, or guidelines contained in any order, directive, opinion, ruling or regulation of a U.S. federal, state or local agency or contained in U.S. federal, state or local law; 

(vi) to change the name of the Partnership, the location of the principal place of business of the Partnership, the registered
agent of the Partnership or the registered office of the Partnership; 
 (vii) to effect a change that, in the sole
discretion of the General Partner, is necessary or appropriate to qualify or continue the qualification of the Partnership as a limited partnership or a partnership in which the limited partners have limited liability under the laws of any state or
that is necessary or advisable in the opinion of the General Partner to ensure that the Partnership will not be treated as an association taxable as a corporation or otherwise taxed as an Entity for U.S. federal income tax purposes; 

(viii) to effect a change in the Fiscal Year or taxable year of the Partnership and any changes that, in the sole discretion of
the General Partner, are necessary or appropriate as a result of a change in the Fiscal Year or taxable year of the Partnership; 

(ix) to adopt an amendment that is necessary, in the opinion of counsel to the Partnership, to prevent the Partnership or the
General Partner or its directors or officers from in any manner being subjected to the provisions of the Investment Company Act or the Advisers Act; 

(x) to take such actions contemplated in Section 7.9.E(ii); 

(xi) to adopt any amendment expressly permitted in this Agreement to be made by the General Partner acting alone; 

(xii) to reflect such actions as may be necessary or appropriate to avoid the Partnership assets being treated for any purpose
of ERISA or Section 4975 of the Code as assets of any “employee benefit plan” as defined in and subject to ERISA or of any “plan” subject to Section 4975 of the Code (or any corresponding provisions of succeeding law)
or to avoid the Partnership’s engaging in a prohibited transaction as defined in Section 406 of ERISA or Section 4975(c) of the Code; 

(xiii) to the extent the taxation of the “carried interest” of the Holders of Class B Units is adversely affected by
any change in Applicable Law, as determined by the General Partner, in its sole discretion, to achieve tax efficiency with respect to the carried interest so long as such amendment does not adversely affect the interest of any Partner; and 

(xiv) to effect any other amendments of a substantially similar nature to the foregoing. 

  
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 The General Partner shall notify the Limited Partners when any action under this
Section 14.1.B is taken in the next regular communication to the Limited Partners; provided, however, that no notice need be given of any amendment of this Agreement to reflect the admission, substitution, termination, or
withdrawal of Partners in accordance with this Agreement. For purposes of the immediately preceding sentence, notwithstanding any other means by which the General Partner may provide any such notice to the Limited Partners, such notice requirement
shall be deemed to have been satisfied upon the filing with the Commission by the Partnership of any amendment to this Agreement permitted under this Section 14.1.B as an exhibit to (i) a registration statement filed by the
Partnership under the Securities Act or (ii) any report or other document filed by the Partnership under the Exchange Act. 
 C.
Other Amendments Requiring Limited Partner Approval. Notwithstanding anything in this Section 14.1 to the contrary, (i) no amendment or modification to this Agreement shall take away any right of any Partner hereunder which
is personal to that Partner and different from the rights of other Partners without the Consent of such Partner and (ii) no amendment or modification to this Agreement that would adversely affect any Partner in a materially disproportionate
manner compared to other Partners shall be effective against such adversely affected Partner without the prior written consent of such adversely affected Partner. 

D. Minimum Vote for Certain Amendments. Notwithstanding the provisions of Sections 14.1.A and 14.1.B, no provision of
this Agreement that establishes a minimum Percentage Interest of Partnership Units (or any class or series thereof) required to take any action shall be amended, altered, changed, repealed or rescinded in any respect that would have the effect of
reducing such voting requirement unless such amendment is approved by the written consent or the affirmative vote of holders of such Percentage Interest that constitutes not less than the voting requirement sought to be reduced. No amendment to this
Agreement, nor any adoption of a new limited partnership agreement in lieu of this Agreement, may be effected by a merger, consolidation or other extraordinary transaction involving the Partnership unless such amendment or the adoption of such new
limited partnership agreement has been approved in accordance with the terms of this Section 14.1. 
 Section 14.2
Meetings of the Partners 
 A. General. Meetings of the Partners may be called by the General Partner and shall be called upon
the receipt by the General Partner of a written request by Limited Partners holding a majority in interest or more of the Partnership Units. The call shall state the nature of the business to be transacted. Notice of any such meeting shall be given
to all Partners not less than ten (10) days or more than ninety (90) days prior to the date of such meeting. Partners may vote in person or by proxy at such meeting. Whenever the vote or Consent of Partners is permitted or required under
this Agreement, such vote or Consent may be given at a meeting of Partners or may be given in accordance with the procedure prescribed in Section 14.1.A. 

  
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Except as otherwise expressly provided in this Agreement, the Consent of holders of a majority of the Partnership Units held by the Partners (including Partnership Units held by the General
Partner) shall control. 
 B. Actions Without a Meeting. Any action required or permitted to be taken at a meeting of the Partners
may be taken without a meeting if a written Consent setting forth the action so taken is signed by Partners who own a majority of the Partnership Units, including Partnership Units owned by the General Partner (or such other percentage as is
expressly required by this Agreement). Such Consent may be in one instrument or in several investments, and shall have the same force and effect as a vote of a majority of the Partnership Units held by the Partners (or such other percentage as is
expressly required by this Agreement). Such Consent shall be filed with the General Partner. An action so taken shall be deemed to have been taken at a meeting held on the effective date so certified. 

C. Proxy. Each Limited Partner may authorize any Person or Persons to act for such Limited Partner by proxy on all matters in which a
Limited Partner is entitled to participate, including waiving notice of any meeting, or voting or participating at a meeting. Every proxy must be signed by the Limited Partner or such Limited Partner’s attorney-in-fact. No proxy shall be valid
after the expiration of eleven (11) months from the date thereof unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the Limited Partner executing it, such revocation to be effective upon the
Partnership’s receipt of written notice thereof. 
 D. Conduct of Meeting. Each meeting of Partners shall be conducted by the
General Partner or such other Person as the General Partner may appoint pursuant to such rules for the conduct of the meeting as the General Partner or such other Person deems appropriate. 

ARTICLE XV 
 GENERAL
PROVISIONS 
 Section 15.1 Addresses and Notice 

In order to be deemed effective, all documents to be delivered and all notices, approvals, authorizations, demands, requests, reports and/or
consents to be given or obtained by any party to this Agreement shall be deemed received, unless earlier received, (i) if sent by certified or registered mail, return receipt requested, when actually delivered as aforesaid, except that such
delivery shall be prior to 5:00 p.m., recipient’s time, on any Business Day and if a notice is not delivered on a Business Day or is delivered after 5:00 p.m., recipient’s time, such notice shall be deemed to have been received by such
recipient at the commencement of such recipient’s first Business Day next following the time of delivery, (ii) if sent by overnight mail or international courier, when actually delivered as aforesaid, except that such delivery shall be
prior to 5:00 p.m., recipient’s time, on any Business Day and if a notice is not delivered on a Business Day or is delivered after 5:00 p.m., recipient’s time, such notice shall be deemed to have been received by such recipient at the
commencement of such recipient’s first Business Day next following the time of delivery, (iii) if sent by email or facsimile transmission, prior to 5:00 p.m., recipient’s time, on any Business Day and if a notice is not transmitted on
a Business Day 

  
 -87- 

 
or is transmitted after 5:00 p.m., recipient’s time, such notice shall be deemed to have been received by such recipient at the commencement of such recipient’s first Business Day next
following transmission of such notice, provided that confirmatory notice is sent promptly thereafter by first-class mail, postage prepaid, and (iv) if delivered by hand, on the date of receipt, at the address set forth on the books of the
Partnership or such other address as the Partner or assignee of Partnership Units shall notify the General Partner in writing. 

Section 15.2 Further Action 

The parties shall execute and deliver all documents, provide all information and take or refrain from taking action as may be necessary or
appropriate to achieve the purposes of this Agreement. 
 Section 15.3 Binding Effect 

Subject to any provisions hereof restricting Transfers, all covenants and agreements in this Agreement by or on behalf of any of the parties
hereto shall bind and inure to the benefit of their respective successors, assigns, heirs, legal representatives and permitted assigns. 

Section 15.4 Creditors 

Other than as expressly set forth herein with regard to any Covered Person, this Agreement is solely for the benefit of the parties hereto and
(i) none of the provisions of this Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the Partnership and (ii) no provisions of this Agreement shall be deemed to confer upon any other party any remedy,
claim, liability, reimbursement, cause of action or other right. 
 Section 15.5 Waiver 

Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege or insist on strict performance
under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall
any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is
signed by the party asserted to have granted such waiver. 
 Section 15.6 Counterparts 

This Agreement may be executed and delivered in one or more counterparts (including by means of facsimile or electronic mail transmission),
each of which when so executed and delivered shall be deemed an original, none of which need contain the signatures of each of the parties hereto and all of which together shall constitute one and the same instrument binding on all the parties
hereto. Each party shall become bound by this Agreement immediately upon affixing its signature hereto. 

  
 -88- 

 Section 15.7 Applicable Law 

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO THE PRINCIPLES OF
CONFLICTS OF LAWS. 
 Section 15.8 Waiver of Jury Trial 

TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 15.9 Forum Selection and Consent to
Jurisdiction 
 ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT, SHALL BE BROUGHT AND
MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN OR IN A UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN. EACH OF THE PARTIES HEREBY EXPRESSLY
AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN AND OF A UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN FOR THE PURPOSE OF
ANY SUCH LITIGATION AS SET FORTH ABOVE. EACH OF THE PARTIES HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN
ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
 Section 15.10
Invalidity of Provisions 
 A. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be
effective and valid under Applicable Law, however, if performance of any provision of this Agreement, at the time such performance shall be due, shall transcend the limit of validity prescribed by Applicable Law, then the obligation to be
performed shall be reduced to the limit of such validity; and if any clause or provision contained in this Agreement operates or would operate to invalidate this Agreement, in whole or in part, then such clause or provision only shall be held
ineffective, as though not herein contained, and the remainder of this Agreement shall remain operative and in full force and effect. The parties shall negotiate in good faith a replacement clause or provision as consistent with the ineffective
clause or provision as is practicable under Applicable Law. 
 B. If any rights or powers of the Partnership Units set forth hereof are
invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, all other rights or powers of the Partnership Units set forth in this Agreement which can be given effect

  
 -89- 

 
without the invalid, unlawful or unenforceable rights or powers of the Partnership Units shall, nevertheless, remain in full force and effect, and no rights or powers of the Partnership Units
herein set forth shall be deemed dependent upon any other such rights or powers of the Partnership Units unless so expressed herein. 

Section 15.11 Determinations 

The General Partner, on behalf of the Partnership, shall be solely responsible for making all calculations called for hereunder. The General
Partner shall make all such calculations in good faith. Absent manifest error, such calculations shall be final and binding on all Holders of Partnership Units. 

Section 15.12 Entire Agreement 

This Agreement contains the entire understanding and agreement among the parties with respect to the subject matter hereof and supersedes any
prior written or oral understandings or agreements among them with respect thereto. Except as otherwise expressly provided in this Agreement, no amendment, modification or discharge of this Agreement shall be valid or binding unless set forth in
writing and duly executed by each of the parties hereto. 
 Section 15.13 No Rights as Stockholders 

Nothing contained in this Agreement shall be construed as conferring upon the Holders of the Partnership Units any rights whatsoever as
Stockholders, including any right to receive dividends or other distributions made to Stockholders or to vote or to consent or receive notice as Stockholders in respect to any meeting of Stockholders for the election of members of the board of
directors of the General Partner or any other matter. 
 Section 15.14 No Presumption Against Drafter 

Each of the parties hereto have jointly participated in the negotiation and drafting of this Agreement. In the event of an ambiguity or a
question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by each of the parties hereto and no presumptions or burdens of proof shall arise favoring any party by virtue of the authorship of any of the
provisions of this Agreement. 
 Section 15.15 Rules of Construction 

Unless the context otherwise requires: (i) a technical accounting term not otherwise defined has the meaning assigned to it in accordance
with GAAP; (ii) “or” is not exclusive; (iii) references to “Articles,” “Sections” “and “Exhibits” refer to the articles, sections and the exhibits to this Agreement, unless explicitly stated or
the context requires otherwise; (iv) “herein,” “hereof” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section, Exhibit or other subdivision; (v) references to
statutes, regulations and rules include subsequent amendments and successors thereto unless the context otherwise requires; (vi) the various headings of this Agreement are provided herein for convenience only and shall not affect the meaning or
interpretation of this Agreement or any provision hereof; (vii) wherever from the context it appears appropriate, each term stated in 

  
 -90- 

 
either the singular or the plural shall include the singular and the plural, and pronouns stated in either the masculine, the feminine or the neuter gender shall include the masculine, feminine
and neuter; (viii) “including” means “including, without limitation”; and (ix) if any payment hereunder shall become due on any day which is not a Business Day, such payment shall be made on the next succeeding Business
Day. 

  
 -91- 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written
above. 
  

			
	GENERAL PARTNER:
	
	INFRAREIT, INC.
		
	By:		 /s/ Benjamin D. Nelson

	Name:		Benjamin D. Nelson
	Title:		Senior Vice President and General Counsel
	
	LIMITED PARTNERS:
	
	HUNT-INFRAREIT, L.L.C.
		
	By:		 /s/ Benjamin D. Nelson

	Name:		Benjamin D. Nelson
	Title:		Senior Vice President
	
	MC TRANSMISSION HOLDINGS, INC.
		
	By:		 /s/ Takashi Fujinaga

	Name:		Takashi Fujinaga
	Title:		President

 Signature Page to Third Amended and Restated Agreement of Limited Partnership of InfraREIT Partners,
LP 

 EXHIBIT A 

PARTNER REGISTRY 
  

							
	 Name and Address of Partner
	  	Class and Number of
Partnership Units	 	  	 
			
	 General Partner:

InfraREIT, Inc.

1807 Ross Avenue, 4th Floor

Dallas, Texas 75201
	  	 
	43,565,495 Common Units
	  
	  	
			
	 Limited Partners:

 
 Hunt-InfraREIT, L.L.C.

1807 Ross Avenue, 4th Floor

Dallas, Texas 75201
	  	 
	13,663,095 Common Units
	  
	  	
			
	 MC Transmission Holdings, Inc., c/o

Marubeni Corporation

375 Lexington Avenue

New York, NY 10017-5644
	  	 	3,325,874 Common Units	  	  	
			
	 Ellen Wolf
	  	 	5,632 Common Units	  	  	4,000 LTIP Units
	 Hal Logan
	  	 	5,632 Common Units	  	  	4,000 LTIP Units
	 W. Kirk Baker
	  				  	4,000 LTIP Units
	 John Gates
	  				  	4,000 LTIP Units
	 Storrow Gordon
	  				  	4,000 LTIP Units
	 Trudy Harper
	  				  	4,000 LTIP Units
	 Harvey Rosenblum
	  				  	4,000 LTIP Units

 Exhibit A - 1 

 EXHIBIT B 

NOTICE OF REDEMPTION 
 The
undersigned hereby irrevocably (i) redeems                  Partnership Units in InfraREIT Partners, LP in accordance with the terms of the Third Amended and
Restated Agreement of Limited Partnership of InfraREIT Partners, LP, as amended or restated through the date hereof, and the Redemption Right referred to therein, (ii) surrenders such Partnership Units and all right, title and interest therein
and (iii) directs that the Cash Amount or Shares Amount (as determined by the General Partner) deliverable upon exercise of the Redemption Right be delivered to the address specified below, and if Shares are to be delivered, such Shares be
registered or placed in the name(s) and at the address(es) specified below. The undersigned hereby represents, warrants, and certifies that the undersigned (a) has marketable and unencumbered title to such Partnership Units, free and clear of
the rights of or interests of any other person or entity, (b) has the full right, power and authority to redeem and surrender such Partnership Units as provided herein and (c) has obtained the consent or approval of all persons or
entities, if any, having the right to consent or approve such redemption and surrender. 
  

											
			Dated:		  
				Name of Limited Partner:		  

					
									  

									(Signature of Limited Partner)
					
									  

									(Street Address)		
					
									  

									(City)		(State) (Zip Code)

  

									
					Signature Guaranteed by:				  

									

  

					
			If Shares are to be issued, issue to:

					
			
			  Name:
		
 

					
			  Social Security or tax identifying number:
		  

 Exhibit B - 1ex1.htm

Exhibit 10.1

 

 Execution Version

 

 

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

among

NEWPARK RESOURCES, INC.,
as Borrower,

THE LENDERS FROM TIME TO TIME PARTIES HERETO,

and

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent

 

BANK OF AMERICA, N.A.,

as Syndication Agent 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Documentation Agent

Dated as of March 6, 2015

  

 

J.P. MORGAN SECURITIES LLC,
as Sole Bookrunner and Joint Lead Arranger,

 

and

 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

 

and

 

WELLS FARGO SECURITIES, LLC,

 

as Joint Lead Arrangers

 

 

 

 

 

 

 

 

 

	
TABLE OF CONTENTS

	 
	
 
	  	Page  
	 	 	 
	
ARTICLE I

	
DEFINITIONS

	 
	
Section 1.1
	
Defined Terms
	
1

	
Section 1.2
	
Other Definitional Provisions
	
22

	 	 	 
	
ARTICLE II

	
AMOUNT AND TERMS OF COMMITMENTS

	 
	
Section 2.1
	
Commitments
	
23

	
Section 2.2
	
Procedure for Loan Borrowing
	
24

	
Section 2.3
	
Commitment Fees, etc.
	
26

	
Section 2.4
	
Termination or Reduction of Commitments
	
26

	
Section 2.5
	
Optional Prepayments.
	
26

	
Section 2.6
	
Mandatory Prepayments
	
27

	
Section 2.7
	
Revolving Loan Conversion and Continuation Options.
	
27

	
Section 2.8
	
Limitations on Eurodollar Tranches
	
27

	
Section 2.9
	
Interest Rates and Payment Dates
	
27

	
Section 2.10
	
Computation of Interest and Fees
	
28

	
Section 2.11
	
Inability to Determine Interest Rate
	
28

	
Section 2.12
	
Pro Rata Treatment and Payments
	
29

	
Section 2.13
	
Requirements of Law
	
30

	
Section 2.14
	
Taxes
	
31

	
Section 2.15
	
Indemnity
	
34

	
Section 2.16
	
Change of Lending Office
	
35

	
Section 2.17
	
Replacement of Lenders
	
35

	
Section 2.18
	
Defaulting Lenders
	
35

	
Section 2.19
	
General
	
37

	 
	
ARTICLE III

	
LETTERS OF CREDIT

	 
	
Section 3.1
	
Specified L/C Commitments
	
38

	
Section 3.2
	
Procedure for Issuance of Letter of Credit
	
38

	
Section 3.3
	
Fees and Other Charges
	
39

	
Section 3.4
	
L/C Participations
	
39

	
Section 3.5
	
Reimbursement Obligation of the Borrower
	
40

	
Section 3.6
	
Obligations Absolute
	
40

	
Section 3.7
	
Letter of Credit Payments
	
41

	
Section 3.8
	
Applications
	
41

	 
	
ARTICLE IV

	
REPRESENTATIONS AND WARRANTIES

	 
	
Section 4.1
	
Financial Condition
	
41

	
Section 4.2
	
No Change
	
42

	
Section 4.3
	
Existence; Compliance with Law
	
42

	
Section 4.4
	
Power; Authorization; Enforceable Obligations
	
42

	
Section 4.5
	
No Legal Bar
	
42

	
Section 4.6
	
Litigation
	
42

	
Section 4.7
	
No Default
	
43

  

 

i 

 

 

	
Section 4.8
	
Ownership of Property; Liens
	
43

	
Section 4.9
	
Intellectual Property
	
43

	
Section 4.10
	
Taxes
	
43

	
Section 4.11
	
Federal Regulations
	
43

	
Section 4.12
	
Labor Matters
	
43

	
Section 4.13
	
ERISA
	
43

	
Section 4.14
	
Investment Company Act; Other Regulations
	
44

	
Section 4.15
	
Subsidiaries
	
44

	
Section 4.16
	
Use of Proceeds
	
44

	
Section 4.17
	
Environmental Matters
	
45

	
Section 4.18
	
Accuracy of Information, etc
	
45

	
Section 4.19
	
Security Documents
	
46

	
Section 4.20
	
Solvency
	
46

	
Section 4.21
	
Anti-Corruption Laws and Sanctions
	
46

	 
	
ARTICLE V

	
CONDITIONS PRECEDENT

	 
	
Section 5.1
	
Conditions to Closing Date
	
46

	
Section 5.2
	
Conditions to Each Extension of Credit
	
49

	
Section 5.3
	
Conditions to Convertible Notes Revolver Borrowings
	
49

	 
	
ARTICLE VI

	
AFFIRMATIVE COVENANTS

	 
	
Section 6.1
	
Financial Statements
	
50

	
Section 6.2
	
Certificates; Other Information
	
50

	
Section 6.3
	
Payment of Obligations
	
51

	
Section 6.4
	
Maintenance of Existence; Compliance
	
51

	
Section 6.5
	
Maintenance of Property; Insurance
	
52

	
Section 6.6
	
Inspection of Property; Books and Records; Discussions
	
52

	
Section 6.7
	
Notices
	
52

	
Section 6.8
	
Environmental Laws
	
52

	
Section 6.9
	
Additional Collateral, etc
	
53

	
Section 6.10
	
Convertible Senior Notes
	
54

	
Section 6.11
	
Post-Closing Matters
	
54

	 
	
ARTICLE VII

	
NEGATIVE COVENANTS

	 
	
Section 7.1
	
Financial Condition Covenants
	
54

	
Section 7.2
	
Indebtedness
	
55

	
Section 7.3
	
Liens
	
56

	
Section 7.4
	
Fundamental Changes
	
57

	
Section 7.5
	
Disposition of Property
	
57

	
Section 7.6
	
Restricted Payments
	
58

	
Section 7.7
	
Investments
	
58

	
Section 7.8
	
Transactions with Affiliates
	
59

	
Section 7.9
	
Sales and Leasebacks
	
59

	
Section 7.10
	
Swap Agreements
	
59

	
Section 7.11
	
Changes in Fiscal Periods
	
59

	
Section 7.12
	
Negative Pledge Clauses
	
59

	
Section 7.13
	
Clauses Restricting Subsidiary Distributions
	
60

	
Section 7.14
	
Lines of Business
	
60

  

 

ii 

 

 

	
Section 7.15
	
Redemption of Senior Notes; Amendment of Indenture
	
60

	
Section 7.16
	
Use of Proceeds
	
60

	 
	
ARTICLE VIII

	
EVENTS OF DEFAULT; REMEDIES

	 
	
Section 8.1
	
Events of Default
	
61

	
Section 8.2
	
Remedies
	
62

	 
	
ARTICLE IX

	
THE AGENTS

	 
	
Section 9.1
	
Appointment
	
63

	
Section 9.2
	
Delegation of Duties
	
63

	
Section 9.3
	
Exculpatory Provisions
	
63

	
Section 9.4
	
Reliance by Administrative Agent
	
64

	
Section 9.5
	
Notice of Default
	
64

	
Section 9.6
	
Non-Reliance on Agents and Other Lenders
	
64

	
Section 9.7
	
Indemnification
	
65

	
Section 9.8
	
Agent in Its Individual Capacity
	
65

	
Section 9.9
	
Successor Administrative Agent
	
65

	
Section 9.10
	
Arrangers, Documentation Agent and Syndication Agent
	
66

	 	 	 
	
ARTICLE X

	
MISCELLANEOUS

	 	 	 
	
Section 10.1
	
Amendments and Waivers
	
66

	
Section 10.2
	
Notices
	
66

	
Section 10.3
	
No Waiver; Cumulative Remedies
	
68

	
Section 10.4
	
Survival of Representations and Warranties
	
68

	
Section 10.5
	
Payment of Expenses and Taxes
	
68

	
Section 10.6
	
Successors and Assigns; Participations and Assignments
	
69

	
Section 10.7
	
Adjustments; Set off
	
71

	
Section 10.8
	
Counterparts
	
72

	
Section 10.9
	
Severability; Maximum Lawful Rate
	
72

	
Section 10.10
	
Integration
	
72

	
Section 10.11
	
Governing Law
	
73

	
Section 10.12
	
Submission To Jurisdiction; Waivers
	
73

	
Section 10.13
	
Acknowledgements
	
73

	
Section 10.14
	
Releases of Guarantees and Liens
	
73

	
Section 10.15
	
Confidentiality
	
74

	
Section 10.16
	
WAIVERS OF JURY TRIAL
	
75

	
Section 10.17
	
PATRIOT Act
	
75

	
Section 10.18
	
No Adverse Interpretation of Other Agreements
	
75

	
Section 10.19
	
No Fiduciary Duty
	
75

	
Section 10.20
	
Judgment Currency
	
76

	
Section 10.21
	
Flood Insurance Regulations
	
76

 

iii 

 

 

Schedules and Exhibits

 

	
Schedule 1.1(a)
	
Commitments

	
Schedule 1.1(b)
	
Specified L/C Commitments

	
Schedule 1.1(c)
	
Mortgaged Property

	
Schedule 1.1(d)
	
Existing Letters of Credit

	
Schedule 4.4
	
Consents, Authorizations, Filings and Notices

	
Schedule 4.15
	
Subsidiaries

	
Schedule 4.19(a)
	
UCC Filing Jurisdictions

	
Schedule 4.19(b)

Schedule 6.11
	
Mortgage Filing Jurisdictions

Post-Closing Matters

	
Schedule 7.2(d)
	
Existing Indebtedness

	
Schedule 7.3(f)
	
Existing Liens

	  	  
	
Exhibit A
	
Form of Amended and Restated Guarantee and Collateral Agreement

	
Exhibit B-1
	
Form of Compliance Certificate

	
Exhibit B-2
	
Form of Interim Compliance Certificate

	
Exhibit C-1
	
Form of Omnibus Officer’s Certificate

	
Exhibit C-2
	
Form of Secretary’s Certificate

	
Exhibit D-1
	
Form of Mortgage 

	
Exhibit D-2
	
Form of Amended and Restated Mortgage 

	
Exhibit E
	
Form of Assignment and Assumption

	
Exhibit F-1
	
Form of Legal Opinion of Andrews Kurth LLP

	
Exhibit F-2
	
Form of Legal Opinion of the Borrower’s General Counsel

	
Exhibit F-3
	
Form of Legal Opinion of King, Krebs & Jurgens, PLLC, Louisiana Counsel to the Borrower  

	Exhibit G-1	Form of U.S. Tax Certificate (For Non-U.S. Lenders that are not Partnerships for U.S. Federal Income Tax Purposes)
	Exhibit G-2	U.S. Tax Certificate (For Non-U.S. Lenders that are Partnerships for U.S. Federal Income Tax Purposes)
	Exhibit G-3	U.S. Tax Certificate (For Non-U.S. Participants that are not Partnerships for U.S. Federal Income Tax Purposes)
	Exhibit G-4	U.S. Tax Certificate (For Non-U.S. Participants that are Partnerships for U.S. Federal Income Tax Purposes)
	
Exhibit H
	
Form of Commitment Increase Supplement

	
Exhibit I
	
Form of Augmenting Lender Supplement

	
Exhibit J
	
Form of Revolving Note

	
Exhibit K
	
Form of Swingline Note

	
Exhibit L
	
Form of Borrowing Notice

  

 

iv 

 

  

THIRD AMENDED AND RESTATED CREDIT AGREEMENT, dated as of March 6, 2015, among Newpark Resources, Inc., a Delaware corporation (the “Borrower”), the several banks and other financial institutions or entities from time to time parties to this Agreement (the “Lenders”), JPMorgan Chase Bank, N.A., as the Administrative Agent (as defined below), Bank of America, N.A., as syndication agent (in such capacity, the “Syndication Agent”) and Wells Fargo Bank, National Association, as documentation agent (in such capacity, the “Documentation Agent”).

 

RECITALS

 

WHEREAS, prior to the date hereof, the Borrower and certain subsidiaries of the Borrower entered into a Term Credit Agreement, dated as of August 18, 2006 (the “Original Credit Agreement”) with the lenders from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent and Wilmington Trust Company, as collateral agent;

 

WHEREAS, subsequent thereto and to amend and restate the Original Credit Agreement, the Borrower and certain subsidiaries of the Borrower entered into an Amended and Restated Credit Agreement, dated as of December 21, 2007 (as amended from time to time, the “First Amended and Restated Credit Agreement”) with the lenders from time to time parties thereto, and JPMorgan Chase Bank, N.A. as administrative agent (among other parties); 

 

WHEREAS, subsequent thereto and to amend and restate the First Amended and Restated Credit Agreement, the Borrower and certain subsidiaries of the Borrower entered into a Second Amended and Restated Credit Agreement, dated as of November 22, 2011 (as amended from time to time, the “Second Amended and Restated Credit Agreement”) with the lenders from time to time parties thereto, and JPMorgan Chase Bank, N.A. as administrative agent (among other parties); and

 

WHEREAS, the parties hereto wish to, and have agreed to, amend and restate the Second Amended and Restated Credit Agreement as provided in this Agreement.

 

NOW THEREFORE, in consideration of the premises and the terms and conditions set forth in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I
DEFINITIONS

 

Section 1.1     Defined Terms. As used in this Agreement, the terms listed in this Section 1.1 shall have the respective meanings set forth in this Section 1.1.

 

“ABR”: for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1% and (c) the one-month Eurodollar Rate as of any date of determination plus 1.0%, provided that, the Eurodollar Rate for any day shall be based on the Eurodollar Base Rate at approximately 11:00 A.M. London time on such day, subject to the interest rate floor set forth in the definition of “Eurodollar Base Rate”. Any change in the ABR due to a change in the Prime Rate, the Federal Funds Effective Rate or the Eurodollar Rate shall be effective as of the opening of business on the effective day of such change in the Prime Rate, the Federal Funds Effective Rate or the Eurodollar Rate, respectively.

 

“ABR Loans”: Revolving Loans the rate of interest applicable to which is based upon the ABR.

  

 

 

 

 

“Acquisition”: any transaction, or any series of related transactions, consummated on or after the Closing Date, by which any Loan Party (a) acquires any going business or all or substantially all of the assets of any Person, whether through purchase of assets, merger or otherwise or (b) directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes) of the Capital Stock issued by a Person which has ordinary voting power for the election of directors or other similar management personnel of a Person (other than Capital Stock having such power only by reason of the happening of a contingency).

 

“Adjustment Date”: as defined in the Applicable Pricing Grid.

 

“Administrative Agent”: JPMCB, together with its affiliates, as arranger of the Commitments and as the administrative agent for the Lenders under this Agreement and the other Loan Documents, together with any of its successors.

 

“Affiliate”: as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” of a Person means the power, directly or indirectly, either to (a) vote 10% or more of the securities having ordinary voting power for the election of directors (or persons performing similar functions) of such Person or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

 

“Agents”: the collective reference to the Administrative Agent, Syndication Agent and the Documentation Agent.

 

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

 

“Anti-Corruption Laws”: all laws, rules, and regulations of any jurisdiction concerning or relating to bribery or corruption as applicable from time to time, respectively, to the Borrower or any of its Subsidiaries, as the case may be.

 

“Applicable Margin”: for each Type of Loan, the rate per annum determined pursuant to the Applicable Pricing Grid.

 

“Applicable Percentage”: as to any Lender at any time, the percentage which such Lender’s Commitment then constitutes of the Total Commitments or, at any time after the Commitments shall have expired or terminated, the percentage which the aggregate principal amount of such Lender’s Revolving Loans then outstanding constitutes of the aggregate principal amount of the Revolving Loans then outstanding, provided, that, in the event that the Loans are paid in full prior to the reduction to zero of the Total Extensions of Credit, the Applicable Percentages shall be determined in a manner designed to ensure that the outstanding Extensions of Credit (after giving effect to the payment in full of the Loans) shall be held by the Lenders on a comparable basis.

 

“Applicable Pricing Grid”: the table set forth below:

 

	
Level
	
Consolidated Leverage Ratio
	
Libor Margin
	
ABR Margin

	
I
	
Less than 1.00x
	
1.75%
	
.75%

	
II
	
Greater than or equal to 1.00x but less than 1.50x
	
2.00%
	
1.00%

	
III
	
Greater than or equal to 1.50x but less than 2.00x
	
2.25%
	
1.25%

	
IV
	
Greater than or equal to 2.00x but less than 2.50x
	
2.50%
	
1.50%

	
V
	
Greater than or equal to 2.50
	
2.75%
	
1.75%

  

 

2

 

 

For purposes of the Applicable Pricing Grid, changes in the Applicable Margin resulting from changes in the Consolidated Leverage Ratio shall become effective on the date (the “Adjustment Date”) that is three Business Days after the date on which financial statements are delivered to the Lenders pursuant to Section 6.1 and shall remain in effect until the next change to be effected pursuant to this paragraph. If any financial statements referred to above are not delivered within the time periods specified in Section 6.1, then, until the date that is three Business Days after the date on which such financial statements are delivered, the highest rate set forth in each column of the Applicable Pricing Grid shall apply. In addition, at all times while an Event of Default shall have occurred and be continuing, the highest rate set forth in each column of the Applicable Pricing Grid shall apply. Each determination of the Consolidated Leverage Ratio for purposes of the Applicable Pricing Grid shall be made in a manner consistent with the determination thereof pursuant to Section 7.1. 

 

“Application”: an application, in such form as the applicable Issuing Lender may specify from time to time, requesting the Issuing Lender to open a Letter of Credit.

 

“Approved Fund”: as defined in Section 10.6(b).

 

“Arrangers”: the Lead Arrangers and Sole Bookrunner identified on the cover page of this Agreement. 

 

“Assignee”: as defined in Section 10.6(b).

 

“Assignment and Assumption”: an Assignment and Assumption, substantially in the form of Exhibit E.

 

“Attributable Debt”: any sale and leaseback transaction under which the Borrower or any Subsidiary is at the time liable, at any date as of which the amount thereof is to be determined, the then present value of the minimum rental obligations under such sale and leaseback transaction during the remaining term thereof (after giving effect to any extensions at the option of the lessor) computed by discounting the respective rental payments at the actual interest factor included in such payments or, if such interest factor cannot be readily determined, at the rate of ten percent (10%) per annum. The amount of any rental payment required to be made under any such sale and leaseback transaction shall exclude amounts required to be paid by the lessee on account of maintenance and repairs, insurance, taxes, assessments, utilities, operating and labor costs and similar charges.

 

“Augmenting Lender”: as defined in Section 2.1(c).

 

“Available Commitment”: as to any Lender at any time, an amount equal to the excess, if any, of (a) such Lender’s Commitment then in effect over (b) such Lender’s Extensions of Credit then outstanding.

 

“Benefitted Lender”: as defined in Section 10.7(a).

 

“Board”: the Board of Governors of the Federal Reserve System of the United States (or any successor).

 

“Borrower”: as defined in the preamble hereto.

 

“Borrowing Date”: any Business Day specified by the Borrower as a date on which the Borrower requests the relevant Lenders to make Loans hereunder.

  

 

3

 

 

“Business”: as defined in Section 4.17(b).

 

“Business Day”: a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close, provided, that with respect to notices and determinations in connection with, and payments of principal and interest on, Eurodollar Loans, such day is also a day for trading by and between banks in Dollar deposits in the London interbank market.

 

“Capital Lease Obligations”: as to any Person, the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP and, for the purposes of this Agreement, the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP.

 

“Capital Stock”: any and all shares, interests, participations or other equivalents (however designated) of capital stock issued by a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants, rights or options to purchase any of the foregoing, including, without limitation, the Convertible Notes.

 

“Cash Equivalents”: (a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States Government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits or overnight bank deposits having maturities of six months or less from the date of acquisition issued by any Lender or by any commercial bank organized under the laws of the United States or any state thereof having combined capital and surplus of not less than $500,000,000; (c) commercial paper of an issuer rated at least A-1 by Standard & Poor’s Ratings Services (“S&P”) or P-1 by Moody’s Investors Service, Inc. (“Moody’s”), or carrying an equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of commercial paper issuers generally, and maturing within six months from the date of acquisition; (d) repurchase obligations of any Lender or of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than 30 days, with respect to securities issued or fully guaranteed or insured by the United States government; (e) securities with maturities of one year or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least A-1 by S&P or P-1 by Moody’s; (f) securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any Lender or any commercial bank satisfying the requirements of clause (b) of this definition; (g) money market mutual or similar funds that invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition; or (h) money market funds that (i) are rated A-1 by S&P and P-1 by Moody’s and (ii) have portfolio assets of at least $5,000,000,000.

 

“Closing Date”: the date on which the conditions precedent set forth in Section 5.1 shall have been satisfied.

 

“Code”: the Internal Revenue Code of 1986, as amended from time to time.

 

“Collateral”: all property of the Loan Parties, now owned or hereafter acquired, upon which a Lien is purported to be created by any Security Document.

  

 

4

 

 

“Commitment”: as to any Lender, the obligation of such Lender to make Revolving Loans, participate in Letters of Credit and to acquire participations in Swingline Loans in an aggregate principal and/or face amount not to exceed the amount set forth under the heading “Commitment” opposite such Lender’s name on Schedule 1.1(a), or in the Assignment and Assumption or Augmenting Lender Supplement pursuant to which such Lender became a party hereto, as the same may be changed from time to time pursuant to the terms hereof. The original amount of the Total Commitments is $200,000,000.

 

“Commitment Fee Rate”: 0.375% per annum. 

 

“Commitment Period”: the period from and including the Closing Date to the Termination Date.

 

“Commodity Exchange Act”: the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

 

“Commonly Controlled Entity”: (a) any entity, whether or not incorporated, that is under common control with a Group Member within the meaning of Section 4001(a)(14) of ERISA; (b) any corporation that is a member of a controlled group of corporations within the meaning of Section 414(b) of the Code of which a Group Member is a member; (c) any trade or business (whether or not incorporated) that is a member of a group of trades or businesses under common control within the meaning of Section 414(c) of the Code of which a Group Member is a member; and (d) with respect to any Group Member, any member of an affiliated service group within the meaning of Section 414(m) or (o) of the Code of which that Group Member, any corporation described in clause (b) above or any trade or business described in clause (c) above is a member. 

 

“Compliance Certificate”: a certificate duly executed by a Responsible Officer substantially in the form of Exhibit B-1.

 

“Consolidated EBITDA”: for any period, Consolidated Net Income for such period plus, without duplication and to the extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of (a) tax expense (excluding sales taxes and ad valorem taxes on real property), (b) interest expense, amortization or writeoff of debt discount and debt issuance costs and commissions, discounts and other fees and charges associated with Indebtedness (including the Loans), (c) depreciation and amortization expense, (d) amortization of intangibles (including, but not limited to, goodwill) and organization costs, (e) any extraordinary or non-recurring non-cash expenses or losses (including, whether or not otherwise includable as a separate item in the statement of such Consolidated Net Income for such period, non-cash losses on sales of assets outside of the ordinary course of business) and (f) any non-cash Capital Stock based compensation expenses, and minus, (a) to the extent included in the statement of such Consolidated Net Income for such period, the sum of (i) interest income, (ii) any extraordinary, unusual or non-recurring income or gains (including, whether or not otherwise includable as a separate item in the statement of such Consolidated Net Income for such period, gains on the sales of assets outside of the ordinary course of business), (iii) income tax credits (to the extent not netted from income tax expense) and (iv) any other non-cash income and (b) any cash payments made during such period in respect of items described in clause (e) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were reflected as a charge in the statement of Consolidated Net Income, all as determined on a consolidated basis. 

 

“Consolidated Interest Expense”: for any period, total interest expense (including that attributable to Capital Lease Obligations and Attributable Debt) of the Borrower and its Subsidiaries for such period with respect to all outstanding Indebtedness of the Borrower and its Subsidiaries (including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing and net costs under Swap Agreements in respect of interest rates to the extent such net costs are allocable to such period in accordance with GAAP).

  

 

5

 

 

“Consolidated Leverage Ratio”: as at the last day of any period, the ratio of (a) Consolidated Total Debt on such day to (b) Consolidated EBITDA for such period.

 

“Consolidated Net Income”: for any period, the consolidated net income (or loss) of the Borrower and its Subsidiaries, determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary of the Borrower or is merged into or consolidated with the Borrower or any of its Subsidiaries, (b) the income (or deficit) of any Person (other than a Subsidiary of the Borrower) in which the Borrower or any of its Subsidiaries has an ownership interest, except to the extent that any such income is actually received by the Borrower or such Subsidiary in the form of dividends or similar distributions, (c) the undistributed earnings of any Subsidiary of the Borrower to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any Contractual Obligation (other than under any Loan Document) or Requirement of Law applicable to such Subsidiary, and (d) the net income of any Person or business or attributable to any property or asset sold, transferred, abandoned or otherwise Disposed of or closed by the Borrower or any Subsidiary during such period calculated on a pro forma basis as if such Disposition or closure had occurred on the first date of such period; and provided further that there shall be included the net income of any Person or business or attributable to any property or asset acquired by the Borrower or any Subsidiary during such period, which shall be calculated on pro forma basis as if such acquisition had occurred on the first date of such period.

 

“Consolidated Tangible Net Assets”: the total assets of the Borrower and its Subsidiaries as of the most recent fiscal quarter end for which a consolidated balance sheet of the Borrower and its Subsidiaries is publicly available, minus all current liabilities (excluding the current portion of any long-term debt) of the Borrower and its Subsidiaries reflected on such balance sheet and minus total goodwill and other intangible assets of the Borrower and its Subsidiaries reflected on such balance sheet, all calculated on a consolidated basis in accordance with GAAP.

 

“Consolidated Total Debt”: at any date, the aggregate principal amount of all Indebtedness of the Borrower and its Subsidiaries at such date determined on a consolidated basis in accordance with GAAP; provided, that for purposes of calculating the Consolidated Leverage Ratio and the Senior Secured Leverage Ratio, L/C Obligations shall be included in the calculation of Consolidated Total Debt; it being expressly agreed and acknowledged, for the avoidance of doubt, that for purposes of the Applicable Pricing Grid, L/C Obligations shall not be included in the calculation of Consolidated Total Debt.

 

“Contractual Obligation”: as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

 

“Convertible Notes”: the Borrower’s 4.00% Convertible Senior Notes due 2017 issued pursuant to the Indenture described in clause (a) of the definition thereof.

 

“Convertible Notes Maturity Date”: the date of maturity of the Convertible Notes pursuant to the Indenture. 

 

“Convertible Notes Redemption Amount”: the amount in Dollars required to repurchase, redeem, convert and/or refinance all of the outstanding Convertible Notes on the Convertible Notes Maturity Date. 

  

 

6

 

 

“Convertible Notes Revolver Borrowing”: any borrowing of Loans by the Borrower hereunder the proceeds of which are used to (a) repurchase, redeem, convert and/or refinance the Convertible Notes or (b) make a Requisite Escrow Deposit. 

 

“Default”: any of the events specified in Section 8.1, whether or not any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

 

“Defaulting Lender”: any Lender, as reasonably determined by the Administrative Agent, that has (a) failed to fund any portion of its Loans or participations in Letters of Credit or Swingline Loans within three Business Days of the date required to be funded by it hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, (b) notified the Borrower, the Administrative Agent, the Issuing Lender or any Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement unless such verbal notice or writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied, (c) failed, within three Business Days after request by the Administrative Agent, to confirm that (i) it will comply with the terms of this Agreement relating to its obligations to fund prospective Loans and participations in then outstanding Letters of Credit or Swingline Loans and (ii) it is financially capable of doing so, (d) otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within three Business Days of the date when due, unless the subject of a good-faith dispute, or (e) (i) become or is insolvent or has a parent company that has become or is insolvent or (ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has consented to, approved of or acquiesced in any such proceeding or appointment or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has consented to, approved of or acquiesced in any such proceeding or appointment; provided that (i) if a Lender would be a “Defaulting Lender” (A) solely by reason of events relating to a parent company of such Lender or solely because a Governmental Authority has been appointed as receiver, conservator, trustee or custodian for such Lender, in each case as described in clause (e) above, or (B) solely by reason of the ownership or control by a Governmental Authority of a parent company of such Lender, the Administrative Agent may in the case of sub-clause (A) above and shall in the case of sub-clause (B) above, in its reasonable discretion, determine that such Lender is not a “Defaulting Lender” if and for so long as the Administrative Agent is satisfied that such Lender will continue to perform its funding obligations hereunder and (ii) the Administrative Agent may, by notice to the Borrower and the Lenders, declare that a Defaulting Lender is no longer a “Defaulting Lender” if the Administrative Agent determines, in its reasonable discretion, that the circumstances that resulted in such Lender becoming a “Defaulting Lender” no longer apply.

 

“Disqualified Capital Stock”: any Capital Stock that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Capital Stock (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Indebtedness or redeemable for any consideration other than other Capital Stock (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is one year after the earlier of (a) the Termination Date and (b) the date on which there are no Loans (including Swingline Loans), L/C Exposure or other obligations hereunder outstanding and the Total Commitments are terminated.

  

 

7

 

 

“Disposition”: with respect to any property, any sale, lease, sale and leaseback, assignment, conveyance, transfer or other disposition thereof. The terms “Dispose” and “Disposed of” shall have correlative meanings.

 

“Documentation Agent”: as defined in the preamble hereto.

 

“Dollars” and “$”: dollars in lawful currency of the United States.

 

“Domestic Permitted Acquisition”: any Permitted Acquisition pursuant to which (a) any acquired or newly formed Subsidiary is a Domestic Subsidiary or (b) the assets that are the subject of such Permitted Acquisition are acquired by a Domestic Subsidiary and are located in the United States. If the acquired or newly formed Subsidiaries in a Permitted Acquisition are in part Domestic Subsidiaries and in part Foreign Subsidiaries or the assets acquired in a Permitted Acquisition are in part located in the United States and in part outside of the United States, such Permitted Acquisition shall be treated for all purposes of this Agreement as a Domestic Permitted Acquisition to the extent of the domestic component (as determined by the Borrower in good faith) and as Foreign Permitted Acquisition to the extent of the foreign component (as determined by the Borrower in good faith).

 

“Domestic Subsidiary”: any Subsidiary of the Borrower organized under the laws of any jurisdiction within the United States.

 

“ECP”: an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity Exchange Act or any regulations promulgated thereunder and the applicable rules issued by the Commodity Futures Trading Commission and/or the SEC. 

 

“Environmental Laws”: any and all foreign, Federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements of any Governmental Authority or other Requirements of Law (including common law) regulating, relating to or imposing liability or standards of conduct concerning protection of public health or the environment, as now or may at any time hereafter be in effect.

 

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

 

“ERISA Event”: (a) any Reportable Event; (b) the existence with respect to any Plan of a Prohibited Transaction; (c) the failure of any Group Member or Commonly Controlled Entity to make by its due date a required installment under Section 430(j) of the Code with respect to any Pension Plan or any failure by any Pension Plan to satisfy the minimum funding standards (within the meaning of Section 412 of the Code or Section 302 of ERISA) applicable to such Pension Plan, whether or not waived in accordance with Section 412(c) of the Code or Section 302(c) of ERISA; (d) the filing pursuant to Section 412 of the Code or Section 302 of ERISA of an application for a waiver of the minimum funding standard with respect to any Pension Plan; (e) the failure by any Group Member or any of its Commonly Controlled Entities to make any required contribution to a Multiemployer Plan pursuant to Sections 431 or 432 of the Code; (f) the incurrence by any Group Member or any Commonly Controlled Entity of any liability under Title IV of ERISA with respect to the termination of any Pension Plan, including but not limited to the imposition of any Lien in favor of the PBGC or pursuant to Section 430(k) of the Code or pursuant to Section 303(k) or 4068 of ERISA with respect to any Pension Plan; (g) a determination that any Pension Plan is, or is expected to be, in “at risk” status (within the meaning of Section 430 of the Code or Section 303 of ERISA); (h) the receipt by any Group Member or any Commonly Controlled Entity from the PBGC or a plan administrator of any notice relating to an intention to terminate any Pension Plan or to appoint a trustee to administer any Pension Plan under Section 4042 of ERISA; (i) the incurrence by any Group Member or any Commonly Controlled Entity of any liability with respect to the withdrawal or partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Pension Plan or Multiemployer Plan; (j) the receipt by any Group Member or any Commonly Controlled Entity of any notice, or the receipt by any Multiemployer Plan from a Group Member or any Commonly Controlled Entity of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, Insolvent, in Reorganization, in “endangered” or “critical” status (within the meaning of Sections 431 or 432 of the Code or Sections 304 and 305 of ERISA) or terminated, (within the meaning of Section 4041A of ERISA) or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA; (k) the withdrawal by any Group Member or any of their respective Commonly Controlled Entities from any Pension Plan with two or more contributing sponsors or the termination of any such Pension Plan resulting in liability to any Group Member or any of their respective Affiliates pursuant to Section 4063 or 4064 of ERISA; or (l) the imposition of liability on any Group Member or any of their respective Commonly Controlled Entities pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA.

  

 

8

 

 

“Eurocurrency Reserve Requirements”: for any day as applied to a Eurodollar Loan, the aggregate (without duplication) of the maximum rates (expressed as a decimal fraction) of reserve requirements in effect on such day (including basic, supplemental, marginal, emergency or supplemental reserves) under any regulations of the Board or other Governmental Authority having jurisdiction with respect thereto dealing with reserve requirements prescribed for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board) maintained by a member bank of the Federal Reserve System. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation. The Eurocurrency Reserve Requirements shall be adjusted automatically on and as of the effective date of any change in any reserve. 

 

“Eurodollar Base Rate”: with respect to any Eurodollar Loan for any Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for U.S. Dollars for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion; in each case the “LIBO Screen Rate”) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period; provided that if the LIBO Screen Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement; provided further that if the LIBO Screen Rate shall not be available at such time for such Interest Period (an “Impacted Interest Period”) then the Eurodollar Base Rate shall be the Interpolated Rate; provided that if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Eurodollar Loans”: Revolving Loans the rate of interest applicable to which is based upon the Eurodollar Rate.

 

“Eurodollar Rate”: with respect to each day during each Interest Period pertaining to a Eurodollar Loan, a rate per annum determined for such day in accordance with the following formula (rounded upward to the nearest 1/100th of 1%):

 

	
Eurodollar Base Rate

	
1.00 - Eurocurrency Reserve Requirements

  

 

9

 

 

“Eurodollar Tranche”: the collective reference to Eurodollar Loans, the then current Interest Periods with respect to all of which begin on the same date and end on the same later date (whether or not such Loans shall originally have been made on the same day).

 

“Event of Default”: any of the events specified in Section 8.1, provided that any requirement for the giving of notice, the lapse of time, or both, has been satisfied.

 

“Excluded Foreign Subsidiary”: any Foreign Subsidiary in respect of which either (a) the pledge of all of the Capital Stock issued by such Subsidiary as Collateral or (b) the guaranteeing by such Subsidiary of the Obligations, would, in the good faith judgment of the Borrower, result in adverse tax consequences to the Borrower.

 

“Excluded Swap Obligation”: with respect to any Loan Party, any Specified Swap Obligation if, and to the extent that, all or a portion of the guarantee of such Loan Party of, or the grant by such Loan Party of a security interest to secure, such Specified Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Loan Party’s failure for any reason to constitute an ECP at the time the guarantee of such Loan Party or the grant of such security interest becomes effective with respect to such Specified Swap Obligation. If a Specified Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Specified Swap Obligation that is attributable to swaps for which such guarantee or security interest is or becomes illegal. 

 

“Existing Letters of Credit”: the letters of credit outstanding as of the Closing Date which are listed on Schedule 1.1(d).

 

“Existing Mortgage”: that certain Deed of Trust, Security Agreement and Assignment of Rents and Leases dated April 30, 2014 made by Newpark Drilling Fluids LLC, as Grantor, to Bruce Caldwell, as Trustee, for the use and benefit of JPMorgan Chase Bank, N.A., as Administrative Agent, Beneficiary upon certain real property located in Harris County, Texas. 

 

“Existing Mortgaged Property”: as defined in Section 5.1(k)(i).

 

“Extensions of Credit”: as to any Lender at any time, an amount equal to the sum of (a) the aggregate principal amount of all Revolving Loans held by such Lender then outstanding and (b) such Lender’s Swingline Exposure and its Applicable Percentage of the L/C Obligations then outstanding.

 

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

 

“Federal Funds Effective Rate”: for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the JPMCB from three federal funds brokers of recognized standing selected by it; provided, that, if the Federal Funds Effective Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

  

 

10

 

 

“Fee Letter”: that certain letter agreement among the Borrower, J.P. Morgan Securities LLC and the Administrative Agent, dated as of January 29, 2015.

 

“Fee Payment Date”: (a) the third Business Day following the last day of each March, June, September and December and (b) the last day of the Commitment Period.

 

“Financial Letter of Credit”: any standby Letter of Credit that is not a Performance Letter of Credit.

 

“First Amended and Restated Credit Agreement”: as defined in the recitals hereof.

 

“Flood Insurance Regulations”: (a) the National Flood Insurance Act of 1968, (b) the Flood Disaster Protection Act of 1973, (c) the National Flood Insurance Reform Act of 1994, (d) the Flood Insurance Reform Act of 2004, and (e) the Biggert-Waters Flood Reform Act of 2012, as such statutes may be amended or re-codified from time to time, any substitution therefor and any regulations promulgated thereunder.

 

“Foreign Benefit Arrangement”: any employee benefit arrangement mandated by non-US law that is maintained or contributed to by any Group Member or any Commonly Controlled Entity.

 

“Foreign Currency”: Euros, Pounds Sterling, Canadian Dollars, Australian Dollars, New Zealand Dollars, New Romanian Leus, Hungarian Forint, Mexican Pesos, Hong Kong Dollar and any other legal currency agreed to by the relevant Issuing Lender.

 

“Foreign Permitted Acquisition”: any Permitted Acquisition that is not a Domestic Permitted Acquisition. If the acquired or newly formed Subsidiaries in a Permitted Acquisition are in part Domestic Subsidiaries and in part Foreign Subsidiaries or the assets acquired in a Permitted Acquisition are in part located in the United States and in part outside of the United States, such Permitted Acquisition shall be treated for all purposes of this Agreement as Domestic Permitted Acquisition to the extent of the domestic component (as determined by the Borrower in good faith) and as Foreign Permitted Acquisition to the extent of the foreign component (as determined by the Borrower in good faith).

 

“Foreign Plan”: each employee benefit plan (within the meaning of Section 3(3) of ERISA, whether or not subject to ERISA) that is not subject to US law and is maintained or contributed to by any Group member or any Commonly Controlled Entity.

 

“Foreign Subsidiary”: any Subsidiary of the Borrower that is not a Domestic Subsidiary.

 

“Funding Office”: the office of the Administrative Agent specified in Section 10.2 or such other office as may be specified from time to time by the Administrative Agent as its funding office by written notice to the Borrower and the Lenders.

 

“GAAP”: generally accepted accounting principles in the United States as in effect from time to time, except that for purposes of Section 7.1, GAAP shall be determined on the basis of such principles in effect on the date hereof and consistent with those used in the preparation of the most recent audited financial statements referred to in Section 4.1. In the event that any “Accounting Change” (as defined below) shall occur and such change results in a change in the method of calculation of financial covenants, standards or terms in this Agreement, then the Borrower and the Administrative Agent agree to enter into negotiations in order to amend such provisions of this Agreement so as to reflect equitably such Accounting Changes with the desired result that the criteria for evaluating the Borrower’s financial condition shall be the same after such Accounting Changes as if such Accounting Changes had not been made. Until such time as such an amendment shall have been executed and delivered by the Borrower, the Administrative Agent and the Majority Lenders, all financial covenants, standards and terms in this Agreement shall continue to be calculated or construed as if such Accounting Changes had not occurred. “Accounting Changes” refers to changes in accounting principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants or, if applicable, the SEC.

  

 

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“Governmental Authority”: any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization (including the National Association of Insurance Commissioners).

 

“Group Members”: the collective reference to the Borrower and its Subsidiaries.

 

“Guarantee and Collateral Agreement”: the Third Amended and Restated Guarantee and Collateral Agreement to be executed and delivered by the Borrower and each Subsidiary Guarantor, substantially in the form of Exhibit A.

 

“Guarantee Obligation”: as to any Person (the “guaranteeing person”), any obligation, including a reimbursement, counterindemnity or similar obligation, of the guaranteeing Person that guarantees or in effect guarantees, or which is given to induce the creation of a separate obligation by another Person (including any bank under any letter of credit) that guarantees or in effect guarantees, any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the “primary obligor”) in any manner, whether directly or indirectly, including any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business or any guarantees by the Borrower or any Group Member guaranteeing the obligations of any other Group Member to perform or deliver work or services in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability in respect thereof as determined by the Borrower in good faith.

 

“Impacted Interest Period” has the meaning assigned to it in the definition of “Eurodollar Base Rate.”

 

“Increasing Lender”: as defined in Section 2.1(c).

  

 

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“Indebtedness”: of any Person at any date, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services (other than current trade payables incurred in the ordinary course of such Person’s business), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all Capital Lease Obligations and Attributable Debt of such Person, (f) all obligations of such Person, contingent or otherwise, as an account party or applicant under or in respect of acceptances, letters of credit, surety bonds or similar arrangements, (g) the liquidation value of all mandatorily redeemable preferred Capital Stock issued by such Person, (h) all Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (g) above, (i) all obligations of the kind referred to in clauses (a) through (h) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation and (j) for the purposes of Section 8.1(e) only, all obligations of such Person in respect of Swap Agreements. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness expressly provide that such Person is not liable therefor.

 

“Indenture”: (a) that certain Indenture dated as of October 4, 2010, among the Borrower, as issuer, certain Subsidiaries as guarantors and Wells Fargo Bank, National Association, a national banking association, as trustee, as supplemented by the First Supplemental Indenture dated as of October 4, 2010 to Indenture dated as of October 4, 2010, and (b) any indenture, note purchase agreement or other agreement pursuant to which Indebtedness under Section 7.2(g) or any Permitted Refinancing Debt is issued, in each case, as hereafter amended or supplemented pursuant to Section 7.15.

 

“Insolvency”: with respect to any Multiemployer Plan, the condition that such Plan is insolvent within the meaning of Section 4245 of ERISA.

 

“Insolvent”: pertaining to a condition of Insolvency.

 

“Intellectual Property”: the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including copyrights, copyright licenses, patents, patent licenses, trademarks, trademark licenses, technology, know-how and processes, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom.

 

“Interest Coverage Ratio”: as at the last day of any period, the ratio of (a) Consolidated EBITDA for such period to (b) Consolidated Interest Expense for such period.

 

“Interest Payment Date”: (a) as to any ABR Loan, the last day of each March, June, September and December (or, if an Event of Default is in existence, the last day of each calendar month) to occur while such Loan is outstanding and the final maturity date of such Loan, (b) as to any Eurodollar Loan having an Interest Period of three months or less, the last day of such Interest Period, (c) as to any Eurodollar Loan having an Interest Period longer than three months, each day that is three months, or a whole multiple thereof, after the first day of such Interest Period and the last day of such Interest Period and (d) as to any Eurodollar Loan or Swingline Loans, the date of any repayment or prepayment made in respect thereof.

  

 

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“Interest Period”: as to any Eurodollar Loan, (a) initially, the period commencing on the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and ending one, two, three or six months thereafter, as selected by the Borrower in its notice of borrowing or notice of conversion, as the case may be, given with respect thereto; and (b) thereafter, each period commencing on the last day of the next preceding Interest Period applicable to such Eurodollar Loan and ending one, two, three or six months thereafter, as selected by the Borrower by irrevocable notice to the Administrative Agent not later than 11:00 A.M., New York City time, on the date that is three Business Days prior to the last day of the then current Interest Period with respect thereto; provided that, all of the foregoing provisions relating to Interest Periods are subject to the following:

 

(i)     if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest Period shall end on the immediately preceding Business Day;

 

(ii)     the Borrower may not select an Interest Period that would extend beyond the Termination Date; and

 

(iii)     any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month.

 

“Interim Compliance Certificate”: a certificate duly executed by a Responsible Officer substantially in the form of Exhibit B-2.

 

“Interpolated Rate”: at any time of determination, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period for which the LIBO Screen Rate is available) that is shorter than the Impacted Interest Period; and (b) the LIBO Screen Rate for the shortest period (for which that LIBO Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time. 

 

“Investments”: as defined in Section 7.7.

 

“Issuing Lender”: any Lender in its capacity as issuer of any Letter of Credit. In the event that there is more than one Issuing Lender at any time, references herein and in the other Loan Documents to the Issuing Lender shall be deemed to refer to the Issuing Lender in respect of the applicable Letter of Credit or to all Issuing Lenders, as the context requires.

 

“JPMCB”: JPMorgan Chase Bank, N.A. 

 

“L/C Commitment”: $75,000,000.

 

“L/C Exposure”: at any time, a Lender’s Applicable Percentage of the total L/C Obligations at such time.

 

“L/C Obligations”: at any time, an amount equal to the sum of (a) the aggregate then undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount of drawings under Letters of Credit that have not then been reimbursed pursuant to Section 3.5. 

  

 

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“L/C Participants”: the collective reference to all the Lenders other than the Issuing Lender.

 

“Lenders”: as defined in the preamble hereto; provided, that unless the context otherwise requires, each reference herein to the Lenders shall be deemed to include the Swingline Lender and the Issuing Lender.

 

“Letters of Credit”: as defined in Section 3.1(a).

 

“LIBO Screen Rate” has the meaning assigned to it in the definition of “Eurodollar Base Rate.”

 

“Lien”: any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or other security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement and any capital lease having substantially the same economic effect as any of the foregoing).

 

“Loans”: the Revolving Loans and/or Swingline Loans, as the context requires.

 

“Loan Documents”: this Agreement, the Security Documents, the Notes and any amendment, waiver, supplement or other modification to any of the foregoing.

 

“Loan Parties”: the Borrower and the Subsidiary Guarantors identified in clauses (i) through (iv) of the definition thereof and each Group Member that becomes a party to a Loan Document after the Closing Date.

 

“Majority Lenders”: the holders of more than 50% of the aggregate unpaid principal amount of the Total Extensions of Credit outstanding, or prior to any termination of the Commitments, the holders of more than 50% of the Total Commitments.

 

“Material Adverse Effect”: a material adverse effect on (a) the business, property, operations, condition (financial or otherwise) or prospects of the Borrower and its direct and indirect Subsidiaries taken as a whole or (b) the validity or enforceability of this Agreement or any of the other Loan Documents or the rights or remedies of the Administrative Agent or the Lenders hereunder or thereunder.

 

“Material Domestic Subsidiary”: any Subsidiary of the Borrower (a) (i) that, as of the most recent fiscal quarter end of the Borrower for the period of four consecutive fiscal quarters then ended, contributes greater than three percent (3%) of the Borrower’s Consolidated EBITDA for such period or (ii) the consolidated total assets of which as of the end of such fiscal quarter were greater than three percent (3%) of the Borrower’s consolidated total assets as of such date; provided that, if at any time the aggregate amount of the Consolidated EBITDA contributed by, or consolidated total assets of, all Domestic Subsidiaries that are not Material Domestic Subsidiaries exceeds, respectively, five percent (5%) of the Borrower’s Consolidated EBITDA for any such period or five percent (5%) of the Borrower’s consolidated total assets as of the end of any such fiscal quarter, the Borrower (or, in the event the Borrower has failed to do so within ten days, the Administrative Agent) shall designate sufficient Domestic Subsidiaries as “Material Domestic Subsidiaries” to eliminate such excess, and such designated Domestic Subsidiaries shall for all purposes of this Agreement constitute Material Domestic Subsidiaries or (b) incurs, or guarantees, any Indebtedness for borrowed money in either case the outstanding principal amount of which is in excess of $5,000,000; provided that in the case of clause (a), a Domestic Subsidiary with a net book value of less than $5,000,000 calculated as of the end of the most recent fiscal quarter or whose revenues for the immediately preceding twelve month period, calculated as of the end of the most recent fiscal quarter, were less than $5,000,000 shall not be or become a Material Domestic Subsidiary.

  

 

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“Material Real Property”: (a) any real property that is fee owned by a Group Member having a net book value (together with improvements thereon) in excess of $5,000,000 and (b) in the reasonable discretion of the Administrative Agent (in consultation with the Borrower), any real property that is fee owned by a Group Member that is located adjacent to or contiguous with or that otherwise constitutes part of a site or facility with, any real property described in clause (a) above. 

 

“Materials of Environmental Concern”: any gasoline or petroleum (including crude oil or any fraction thereof) or petroleum products or any hazardous or toxic substances, materials or wastes, defined or regulated as such in or under any Environmental Law, including asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

 

“Maturity Date”: March 6, 2020 (the “Scheduled Maturity Date”); provided that if as of the Springing Maturity Date the Borrower has not (a) made the Requisite Escrow Deposit or (b) repurchased, redeemed, converted and/or refinanced the full amount of the Convertible Notes, “Maturity Date” shall mean the Springing Maturity Date. 

 

“Mortgage Amendments”: as defined in Section 5.1(k)(i).

 

“Mortgaged Properties”: the real properties listed on Schedule 1.1(c), as to which the Administrative Agent for the benefit of the Lenders has been granted a Lien pursuant to the Mortgages, and any other real property with respect to which a mortgage or deed of trust has been delivered pursuant to Section 6.9(b).

 

“Mortgages”: any mortgages or deeds of trust, including the Existing Mortgage, made or amended pursuant to Section 5.1(k) or Section 6.9(b), as applicable.

 

“Multiemployer Plan”: a Plan that is a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 

“Non-Excluded Taxes”: as defined in Section 2.14(a).

 

“Non-U.S. Lender”: any Lender that is not a U.S. Person.

 

“Notes”: the collective reference to any promissory note evidencing Loans in the form of the Revolving Note or Swingline Note attached hereto as Exhibits J and K, respectively.

 

“Obligations”: the unpaid principal of and interest on the Loans (including interest accruing after the maturity of the Loans and Reimbursement Obligations and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) and all other obligations and liabilities of the Borrower to the Administrative Agent or to any Lender (or, in the case of Specified Swap Agreements, any affiliate of any Lender), whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, this Agreement, any other Loan Document, the Letters of Credit, any Specified Swap Agreement, any Specified Cash Management Services Agreement or any other document made, delivered or given in connection herewith or therewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including all fees, charges and disbursements of counsel to the Administrative Agent or to any Lender that are required to be paid by the Borrower pursuant hereto) or otherwise; provided that the definition of “Obligations” shall not create or include any guarantee by any Loan Party of (or grant of security interest by any Loan Party to support, as applicable) any Excluded Swap Obligations of such Loan Party for purposes of determining any obligations of any Loan Party.

  

 

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“Original Credit Agreement”: as defined in the recitals hereof.

 

“Other Taxes”: any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document.

 

“Participant”: as defined in Section 10.6(c).

 

“PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Section 4002 of ERISA (or any successor).

 

“Pension Plan”: any Plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA and in respect of which any Group Member or any Commonly Controlled Entity is (or, if such Plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in section 3(5) of ERISA.

 

“Performance Letter of Credit”: any standby Letter of Credit, or similar arrangement, however named or described, which represents an irrevocable obligation to the beneficiary on the part of the issuer to make payment on account of any default by the account party in the performance of a non financial or commercial obligation.

 

“Permitted Acquisitions”: Acquisitions that satisfy the following requirements: (a) (i) the acquired company or assets are in the same or similar line of business as the Borrower or its Subsidiaries; (ii) (A) the Borrower or a Guarantor (or a Subsidiary that becomes a Guarantor contemporaneously with such Acquisition) is the surviving entity holding the acquired Capital Stock issued by the Acquisition target or (B) a Subsidiary that is not a Guarantor is the surviving entity holding one hundred percent (100%) of the Capital Stock issued by the Acquisition target; (iii) no Event of Default or Default shall exist before or after such Acquisition; (iv) such Acquisition shall be completed in accordance with material applicable laws; (v) the Administrative Agent shall be provided with reasonably satisfactory opinions with regard to such Acquisition if and as it may reasonably request; (vi) the terms of Section 6.9 are satisfied; (vii) the board of directors or similar governing body of the acquired company approves the Acquisition; and (viii) after giving effect to the Acquisition, on a pro forma basis, the Borrower is in compliance with Section 7.1 as of the last day of the fiscal quarter immediately preceding such Acquisition for which financial statements are publicly available; and (b) if such Acquisition is a Foreign Permitted Acquisition, the cumulative aggregate consideration (defined as total net cash to be paid, plus Indebtedness to be assumed in connection with such Acquisition), together with the aggregate amount of Investments under Section 7.7(h) (without duplication) does not exceed the limits set forth in said Section 7.7(h).

 

“Permitted Refinancing Debt”: Indebtedness (for purposes of this definition, “new Debt”) incurred in exchange for, or proceeds of which are used to refinance, all of any other Indebtedness (the “Refinanced Debt”); provided that (a) such new Debt is in an aggregate principal amount not in excess of the sum of (i) the aggregate principal amount then outstanding of the Refinanced Debt (or, if the Refinanced Debt is exchanged or acquired for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration thereof, such lesser amount) and (ii) an amount necessary to pay any fees and expenses, including premiums, related to such exchange or refinancing; (b) such new Debt has a stated maturity no earlier than the stated maturity of the Refinanced Debt and an average life no shorter than the average life of the Refinanced Debt; (c) such new Debt does not have a stated interest rate in excess of the stated interest rate of the Refinanced Debt; (d) such new Debt does not contain any covenants which are more onerous to the Borrower and its Subsidiaries than those imposed by the Refinanced Debt, (e) such new Debt (and any guarantees thereof by the Borrower or any Subsidiary Guarantor) is subordinated in right of payment to the Obligations to at least the same extent as the Refinanced Debt and such new Debt does not does not have a maturity date prior to the date that is ninety-one (91) days after the Termination Date.

  

 

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“Person”: an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature.

 

“Plan”: any employee benefit plan as defined in Section 3(3) of ERISA, including any employee welfare benefit plan (as defined in Section 3(1) of ERISA), any employee pension benefit plan (as defined in Section 3(2) of ERISA), and any plan which is both an employee welfare benefit plan and an employee pension benefit plan, and in respect of which any Group Member or any Commonly Controlled Entity is an “employer” as defined in Section 3(5) of ERISA.

 

“Prime Rate”: the rate of interest per annum publicly announced from time to time by JPMCB as its prime rate in effect at its office located at 270 Park Avenue, New York, New York; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.

 

“Prohibited Transaction”: as defined in Section 406 of ERISA and Section 4975(c) of the Code.

 

“Properties”: as defined in Section 4.17(a).

 

“Redemption”: with respect to any Indebtedness, the repurchase, redemption, prepayment, repayment, defeasance or any other acquisition or retirement for value (or the segregation of funds with respect to any of the foregoing) of such Indebtedness. “Redeem” has the correlative meaning thereto.

 

“Register”: as defined in Section 10.6(b).

 

“Regulation U”: Regulation U of the Board as in effect from time to time.

 

“Reimbursement Obligation”: the obligation of the Borrower to reimburse the Issuing Lender pursuant to Section 3.5 for amounts drawn under Letters of Credit.

 

“Related Parties”: with respect to any specified Person, such Person's Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person's Affiliates.

 

“Reorganization”: with respect to any Multiemployer Plan, the condition that such plan is in reorganization within the meaning of Section 4241 of ERISA.

 

“Reportable Event”: any of the events set forth in Section 4043(c) of ERISA, other than those events as to which the thirty day notice period is in fact waived under subsections .27, .28, .29, .30, .31, .32, .34 or .35 of PBGC Reg. § 4043.

 

“Requirement of Law”: as to any Person, the Certificate of Incorporation and By Laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

  

 

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“Requisite Escrow Deposit”: a deposit made by the Borrower of cash or cash equivalents into a segregated account (the “Escrow Account”) maintained by the Administrative Agent or an escrow agent reasonably acceptable to the Administrative Agent in a minimum amount equal to the Convertible Notes Redemption Amount, which deposit shall be subject to a limitation on withdrawals by the Borrower to up to 20 withdrawals solely to repurchase, redeem, convert and/or refinance the Convertible Notes, including both principal and interest and all other amounts, if any, due thereunder. For the avoidance of doubt, the Requisite Escrow Deposit may be made by Borrower with any funds on hand or in banks or otherwise available to Borrower, except that the Requisite Escrow Deposit may be funded with the proceeds of Indebtedness incurred by Borrower or its Subsidiaries only as follows: (x) the net proceeds of any unsecured Indebtedness having a maturity date at least ninety-one (91) days after the Scheduled Maturity Date and (y) up to $100,000,000 of proceeds of Convertible Notes Revolver Borrowings, each as deposited by the Borrower into the Escrow Account. 

 

“Responsible Officer”: the chief executive officer, president or chief financial officer of the Borrower, but in any event, with respect to financial matters, the chief financial officer, treasurer or controller of the Borrower.

 

“Restricted Payment”: as defined in Section 7.6.

 

“Reuters Exchange Rate”: for any relevant date of determination and for any relevant Foreign Currency, the Dollar average exchange rate in the interbank market expressed as the amount of such Foreign Currency per one Dollar for settlement on the same day at 2:00 p.m. (New York, New York time), published on Reuters Page PEBCR05, rounded to the fourth decimal point (or, if not available at such page, then at any other replacement page of the Reuters Service displaying such rate or on the relevant pages of Bloomberg Financial Markets).

 

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

 

“Revolving Loans”: the loans made under Section 2.1(a).

 

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

 

“Sanctioned Country”: at any time, a country, region or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Crimea, Cuba, Iran, North Korea, Sudan and Syria).

 

“Sanctioned Person”: at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, or by the United Nations Security Council, the European Union or any European Member State, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons.

 

“SEC”: the Securities and Exchange Commission, any successor thereto and any analogous Governmental Authority.

  

 

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“Second Amended and Restated Credit Agreement”: as defined in the recitals hereof.

 

“Security Documents”: the collective reference to the Guarantee and Collateral Agreement, the Mortgages and all other security documents hereafter delivered to the Administrative Agent granting a Lien on any property of any Person to secure the obligations and liabilities of any Loan Party under any Loan Document.

 

“Scheduled Maturity Date”: as defined in the definition of “Maturity Date”.

 

“Senior Notes”: the Convertible Notes and any Indebtedness issued by the Borrower under Section 7.2(g).

 

“Senior Secured Leverage Ratio”: as at the last day of any period, the ratio of (a) Consolidated Total Debt less all Indebtedness of the Borrower and its Subsidiaries outstanding on such date which is neither (i) contractually subordinated in a right of payment to the Obligations nor (ii) secured by any Lien to (b) Consolidated EBITDA for such period.

 

“Solvent”: when used with respect to any Person, means that, as of any date of determination, (a) the amount of the “present fair saleable value” of the assets of such Person will, as of such date, exceed the amount of all “liabilities of such Person, contingent or otherwise”, as of such date, as such quoted terms are determined in accordance with applicable federal and state laws governing determinations of the insolvency of debtors, (b) the present fair saleable value of the assets of such Person will, as of such date, be greater than the amount that will be required to pay the liability of such Person on its debts as such debts become absolute and matured, (c) such Person will not have, as of such date, an unreasonably small amount of capital with which to conduct its business and (d) such Person will be able to pay its debts as they mature. For purposes of this definition, (i) “debt” means liability on a “claim”, and (ii) “claim” means any (x) right to payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (y) right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured.

 

“Specified Cash Management Services Agreement”: any agreement to provide management services, including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management services entered into by the Borrower or any Subsidiary and any Person that is a Lender or an affiliate of a Lender at the time such Cash Management Services Agreement is entered into.

 

“Specified L/C Commitment”: as to any Issuing Lender, the obligation of such Issuing Lender to issue Letters of Credit in an aggregate principal and/or face amount not to exceed the amount set forth under the heading “Specified L/C Commitment” opposite such Issuing Lender’s name on Schedule 1.1(b), or in the Assignment and Assumption or Augmenting Lender Supplement pursuant to which such Lender became a party hereto, as the same may be changed from time to time pursuant to the terms hereof.

 

“Specified Swap Agreement”: any Swap Agreement in respect of interest rates or currency exchange rates entered into by the Borrower or any Subsidiary and any Person that is a Lender or an affiliate of a Lender at the time such Swap Agreement is entered into. 

 

“Specified Swap Obligation”: any obligation to pay or perform under any Specified Swap Agreement. 

  

 

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“Springing Maturity Date”: the date that is ninety-one (91) days prior to the Convertible Notes Maturity Date.

 

“Subsidiary”: as to any Person, a corporation, partnership, limited liability company or other entity the shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

“Subsidiary Guarantor”: (i) Newpark Drilling Fluids LLC, a Texas limited liability company, (ii) Excalibar Minerals LLC, a Texas limited liability company, (iii) Newpark Mats & Integrated Services LLC, a Texas limited liability company, (iv) Newpark Drilling Fluids International LLC, a Texas limited liability company, and (v) each other Material Domestic Subsidiary of the Borrower, if any, which guarantees the Obligations pursuant to Section 6.9(c).

 

“Swap Agreement”: any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or any of its Subsidiaries shall be a “Swap Agreement”.

 

“Swingline Commitment”: as to any Lender (a) the amount set forth opposite such Lender’s name on Schedule 1.01(a) hereof or (b) if such lender has entered into an Assignment and Assumption, the amount set forth for such lender as its Swingline commitment in the Register maintained by the Administrative Agent pursuant to Section 10.06(b)(iv).

 

“Swingline Exposure”: at any time, the aggregate principal amount of all Swingline Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall be the sum of (a) its Applicable Percentage of the total Swingline Exposure at such time other than with respect to any Swingline Loans made by such Lender in its capacity as a Swingline Lender and (b) the aggregate principal amount of all Swingline Loans made by such Lender as a Swingline Lender outstanding at such time (less the amount of participations funded by the other Lenders in such Swingline Loans).

 

“Swingline Lender”: JPMCB and any other Lender approved by the Administrative Agent and the Borrower that has agreed to act as a “Swingline Lender” hereunder, each in its capacity as lender of Swingline Loans. 

 

“Swingline Loans”: the loans made under Section 2.1(b).

 

“Syndication Agent”: as defined in the preamble hereto.

 

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

  

 

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“Termination Date”: the earlier of (i) the Maturity Date and (ii) the date the Total Commitments are terminated under Section 2.4, Section 5.1 or Article VIII.

 

“Total Commitments”: at any time, the aggregate amount of the Commitments then in effect.

 

“Total Extensions of Credit”: at any time, the aggregate amount of the Extensions of Credit of the Lenders outstanding at such time.

 

“Type”: as to any Loan, its nature as an ABR Loan or a Eurodollar Loan.

 

“United States”: the United States of America.

 

“U.S. Person”: a "United States person" within the meaning of Section 7701(a)(30) of the Code. 

 

“Wholly Owned Subsidiary”: as to any Person, any other Person all of the Capital Stock of which (other than directors’ qualifying shares required by law) is owned by such Person directly and/or through other Wholly Owned Subsidiaries.

 

“Wholly Owned Subsidiary Guarantor”: any Subsidiary Guarantor that is a Wholly Owned Subsidiary of the Borrower.

 

“Withdrawal Liability”: any liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are used in Sections 4203 and 4205, respectively, of ERISA.

 

Section 1.2     Other Definitional Provisions. (a) Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when used in the other Loan Documents or any certificate or other document made or delivered pursuant hereto or thereto.

 

(b)     As used herein and in the other Loan Documents, and any certificate or other document made or delivered pursuant hereto or thereto, (i) accounting terms relating to any Group Member not defined in Section 1.1 and accounting terms partly defined in Section 1.1, to the extent not defined, shall have the respective meanings given to them under GAAP, (ii) the words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”, (iii) the word “incur” shall be construed to mean incur, create, issue, assume, become liable in respect of or suffer to exist (and the words “incurred” and “incurrence” shall have correlative meanings), (iv) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, Capital Stock, securities, revenues, accounts, leasehold interests and contract rights and (v) references to agreements or other Contractual Obligations shall, unless otherwise specified, be deemed to refer to such agreements or Contractual Obligations as amended, supplemented, restated or otherwise modified from time to time (subject to any restrictions on such amendments, supplements, restatements or modifications set forth herein).

 

(c)     The words “hereof”, “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and references to a Section, Schedule or Exhibit references are to a Section, Schedule or Exhibit to this Agreement unless otherwise specified.

 

(d)     The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

  

 

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ARTICLE II
AMOUNT AND TERMS OF COMMITMENTS

 

Section 2.1     Commitments. Subject to the terms and conditions hereof, each Lender severally agrees to (i) make Revolving Loans to the Borrower, (ii) participate in Letters of Credit and (iii) participate in Swingline Loans and the Swingline Lender agrees to make Swingline Loans to the Borrower. The Borrower shall repay all outstanding Loans on the Termination Date.

 

(a)     Revolving Loans. Each Lender severally agrees to make Revolving Loans in Dollars to the Borrower from time to time during the Commitment Period in an aggregate principal amount at any one time outstanding which, when added to such Lender’s L/C Exposure and such Lender’s Swingline Exposure then outstanding, does not exceed the amount of such Lender’s Commitment. During the Commitment Period the Borrower may use the Commitments by borrowing, prepaying the Revolving Loans in whole or in part, and reborrowing, all in accordance with the terms and conditions hereof. The Revolving Loans may from time to time be Eurodollar Loans or ABR Loans, as determined by the Borrower and notified to the Administrative Agent in accordance with Sections 2.2 and 2.7.

 

(b)     Swingline Loans. Subject to the terms and conditions set forth herein, each Swingline Lender severally shall make Swingline Loans under this Section to the Borrower from time to time, in an aggregate principal amount at any time outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline Loans made by such Swingline Lender exceeding such Swingline Lender’s Swingline Commitment, (ii) such Swingline Lender’s Revolving Exposure exceeding its Commitment, (iii) the Swingline Exposure exceeding $15,000,000 or (iv) the sum of the Total Extensions of Credit exceeding the total Commitments; provided that a Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan. Within the foregoing limits and subject to the conditions herein, any such Swingline Loan repaid prior to the Termination Date may be reborrowed pursuant to the terms of this Agreement. 

 

(c)     Incremental Revolving Facility. The Borrower may from time to time elect to increase the Commitments in a minimum amount of $25,000,000 (or such lesser amount as the difference between $125,000,000 and the amount of any previous increase of the Commitments hereunder) so long as, after giving effect thereto, the Total Commitments do not exceed $325,000,000. The Borrower may arrange for any such increase to be provided by one or more Lenders (each Lender so agreeing to an increase in its Commitment, an “Increasing Lender”), or by one or more banks, financial institutions or other entities not previously a Lender (each such bank, financial institution or other entity, an “Augmenting Lender”), to become a party hereto and provide a Commitment; provided that (i) each Augmenting Lender, shall be subject to the approval of the Borrower and shall be reasonably acceptable to the Administrative Agent and each Issuing Lender, (ii) (x) in the case of an Increasing Lender, the Borrower and such Increasing Lender execute an agreement substantially in the form of Exhibit H hereto, and (y) in the case of an Augmenting Lender, the Borrower and such Augmenting Lender execute an agreement substantially in the form of Exhibit I hereto and (iii) no Lender shall have any obligation to participate in any such increase of the Commitments. Increases and new Commitments created pursuant to this clause shall become effective on the date agreed by the Borrower, the Administrative Agent and the relevant Increasing Lenders and/or Augmenting Lenders, as the case may be, and the Administrative Agent shall notify each affected Lender thereof. Notwithstanding the foregoing, no increase in the Commitments (or in the Commitment of any Lender), shall become effective under this paragraph unless, (i) on the proposed date of the effectiveness of such increase, the conditions set forth in paragraphs (a) and (b) of Section 5.2 shall be satisfied or waived by the Majority Lenders and the Administrative Agent shall have received a certificate to that effect dated such date and executed by a Responsible Officer of the Borrower, (ii) the Administrative Agent shall have received documents consistent with those delivered on the Closing Date under Section 5.1(g) as to the corporate power and authority of the Borrower to borrow hereunder after giving effect to such increase and, if requested, a legal opinion of counsel to the Borrower and (iii) if Indebtedness is proposed to be incurred under the Commitments on the proposed date of the effectiveness of such increase, after giving effect to any Indebtedness incurred under the increased Commitments, on a pro forma basis, the Borrower is in compliance with Section 7.1 as of the last day of the immediately preceding fiscal quarter for which financial statements have been delivered pursuant to Section 6.1. On the effective date of any increase in the Commitments, (i) each relevant Increasing Lender and Augmenting Lender shall make available to the Administrative Agent such amounts in immediately available funds as the Administrative Agent shall determine, for the benefit of the other relevant Lenders, as being required in order to cause, after giving effect to such increase and the use of such amounts to make payments to such other relevant Lenders, each Lender’s portion of the outstanding Revolving Loans of all the Lenders to equal its Applicable Percentage of such outstanding Revolving Loans, (ii) the Borrower shall be deemed to have repaid and reborrowed all outstanding Revolving Loans as of the date of any increase in the Commitments (with such reborrowing to consist of the Types of Loans, with related Interest Periods if applicable, specified in a notice delivered by the Borrower in accordance with the requirements of Section 2.2), (iii) the risk participations in outstanding Letters of Credit and Swingline Loans shall be automatically adjusted such that each Lender shall have a risk participation in each outstanding Letter of Credit and Swingline Loan equal to its Applicable Percentage and (iv) the Borrower shall pay all outstanding accrued interest and fees through the effective date. The deemed payments made pursuant to clause (ii) of the immediately preceding sentence in respect of each Eurodollar Loan shall be subject to indemnification by the Borrower pursuant to the provisions of Section 2.15 if the deemed payment occurs other than on the last day of the related Interest Periods.

  

 

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Section 2.2     Procedure for Loan Borrowing. 

 

(a)     Revolving Loans. The Borrower may borrow Revolving Loans under the Commitments during the Commitment Period on any Business Day, provided that the Borrower shall give the Administrative Agent irrevocable notice, which notice must be received by the Administrative Agent prior to 11:00 A.M., New York City time, (i) three Business Days prior to the requested Borrowing Date, in the case of Eurodollar Loans or (ii) on the day of the requested Borrowing Date, in the case of ABR Loans (provided that any such notice of a borrowing of ABR Loans to finance payments required by Section 3.5 may be given not later than 10:00 A.M., New York City time, on the date of the proposed borrowing), specifying (1) the amount and Type of Revolving Loans to be borrowed, (2) the requested Borrowing Date, (3) in the case of Eurodollar Loans, the respective amounts of each such Type of Revolving Loan and the respective lengths of the initial Interest Period therefor and (4) the use of proceeds of such Revolving Loan (including whether such borrowing is a Convertible Notes Revolver Borrowing). Unless otherwise specifically requested in the respective borrowing notice, any Revolving Loans made on the Closing Date shall initially be ABR Loans. Each borrowing under the Commitments shall be in an amount equal to (x) in the case of ABR Loans, $1,000,000 or a whole multiple thereof (or, if the then aggregate Available Commitments are less than $1,000,000, such lesser amount) and (y) in the case of Eurodollar Loans, $5,000,000 or a whole multiple of $1,000,000 in excess thereof. Upon receipt of any such notice from the Borrower, the Administrative Agent shall promptly notify each Lender thereof. Each Lender will make the amount of its pro rata share of each borrowing available to the Administrative Agent for the account of the Borrower at the Funding Office prior to 12:00 Noon, New York City time, on the Borrowing Date requested by the Borrower in funds immediately available to the Administrative Agent. Such borrowing will then be made available to the Borrower by the Administrative Agent crediting the account of the Borrower on the books of such office with the aggregate of the amounts made available to the Administrative Agent by the Lenders and in like funds as received by the Administrative Agent.

  

 

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(b)     Swingline Loans. (i) The Borrower may borrow Swingline Loans under the Commitments during the Commitment Period on any Business Day, provided, that the Administrative Agent shall receive written or telegraphic notice from the Borrower on or before 2:00 p.m. New York City time on the day of the proposed Swingline Loan and the amount of such borrowing (which shall be in a minimum amount of $1,000,000 and an integral multiple of $1,000,000). Each such notice shall be irrevocable and shall specify the requested borrowing date (which shall be a Business Day), the amount of the requested Swingline Loan and the use of proceeds of such Swingline Loan (including if such borrowing is a Convertible Notes Revolver Borrowing). The Administrative Agent will promptly advise the Swingline Lenders of any such notice received from the Borrower. Each Swingline Lender shall make its ratable portion of the requested Swingline Loan (such ratable portion to be calculated based upon such Swingline Lender’s Swingline Commitment to the total Swingline Commitments of all of the Swingline Lenders) available to the Borrower by means of a credit to an account of the Borrower with the Administrative Agent designated for such purpose (or, in the case of a Swingline Loan made to finance the reimbursement of any draft paid under any Letter of Credit as provided in Section 3.05, by remittance to the Issuing Bank) by 3:00 p.m., New York City time, on the requested date of such Swingline Loan. 

 

(ii) The failure of any Swingline Lender to make its ratable portion of a Swingline Loan shall not relieve any other Swingline Lender of its obligation hereunder to make its ratable portion of such Swingline Loan on the date of such Swingline Loan, but no Swingline Lender shall be responsible for the failure of any other Swingline Lender to make the ratable portion of a Swingline Loan to be made by such other Swingline Lender on the date of any Swingline Loan. 

 

(iii) Any Swingline Lender may by written notice given to the Administrative Agent require the Lenders to acquire participations in all or a portion of its Swingline Loans outstanding. Such notice shall specify the aggregate amount of Swingline Loans in which Lenders will participate. Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each Lender, specifying in such notice such Lender's Applicable Percentage of such Swingline Loans. Each Lender hereby absolutely and unconditionally agrees, promptly upon receipt of such notice from the Administrative Agent (and in any event, if such notice is received by 12:00 noon, New York City time, on a Business Day, by no later than 5:00 p.m. New York City time on such Business Day and if received after 12:00 noon, New York City time, on a Business Day, by no later than 10:00 a.m. New York City time on the immediately succeeding Business Day), to pay to the Administrative Agent, for the account of such Swingline Lenders, such Lender's Applicable Percentage of such Swingline Loans. Each Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. Each Lender shall comply with its obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.02(a) with respect to Loans made by such Lender (and Section 2.02(a) shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to such Swingline Lenders the amounts so received by it from the Lenders. The Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent and not to such Swingline Lenders. Any amounts received by a Swingline Lender from the Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan after receipt by such Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent to the Lenders that shall have made their payments pursuant to this paragraph and to such Swingline Lenders, as their interests may appear; provided that any such payment so remitted shall be repaid to such Swingline Lender or to the Administrative Agent, as applicable, if and to the extent such payment is required to be refunded to the Borrower for any reason. The purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any default in the payment thereof. 

  

 

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(iv) As to each Swingline Loan, on the earlier of (i) the Termination Date and (ii) the first date after such Swingline Loan is made that is the 15th day thereafter or last day of a calendar month and is at least two Business Days after such Swingline Loan is made, the Borrower shall repay to the Swingline Lender the then unpaid principal amount of such Swingline Loan; provided that on each date that a Revolving Loan is borrowed, the Borrower shall repay all Swingline Loans then outstanding.

 

(c)     Notices under this Section 2.2 shall be made by a Responsible Officer on behalf of the Borrower.

 

Section 2.3     Commitment Fees, etc. (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee for the period from and including the date hereof to the last day of the Commitment Period, computed at the Commitment Fee Rate on the average daily amount of the Available Commitment of such Lender during the period for which payment is made, payable quarterly in arrears on each Fee Payment Date, commencing on the first such date to occur after the date hereof. For purposes of calculating the commitment fee, Swingline Loans will not be considered a use of the Available Commitment.

 

(b)     The Borrower agrees to pay to the Administrative Agent the fees in the amounts and on the dates as set forth in the Fee Letter and to perform any other obligations contained therein.

 

Section 2.4     Termination or Reduction of Commitments. (a)      The Borrower shall have the right, upon not less than three Business Days’ notice to the Administrative Agent, to terminate the Commitments or, from time to time, to reduce the amount of the Commitments; provided that no such termination or reduction of Commitments shall be permitted if, after giving effect thereto and to any prepayments of the Revolving Loans made on the effective date thereof, the Total Extensions of Credit would exceed the Total Commitments. Any such reduction shall be in an amount equal to $1,000,000, or a whole multiple thereof, and shall reduce permanently the Commitments then in effect.

 

(b)     Notices under this Section 2.4 shall be made by a Responsible Officer on behalf of the Borrower.

 

Section 2.5     Optional Prepayments. (a) Revolving Loans. The Borrower may at any time and from time to time prepay the Revolving Loans, in whole or in part, without premium or penalty, upon irrevocable notice delivered to the Administrative Agent no later than 11:00 A.M., New York City time, (i) in the case of Eurodollar Loans, three Business Days prior thereto and (ii) in the case of ABR Loans one Business Day prior thereto, which notice shall specify the date and amount of prepayment and whether the prepayment is of Eurodollar Loans or ABR Loans; provided, that if a Eurodollar Loan is prepaid on any day other than the last day of the Interest Period applicable thereto, the Borrower shall also pay any amounts owing pursuant to Section 2.15. Upon receipt of any such notice, the Administrative Agent shall promptly notify each relevant Lender thereof. If any such notice is given, the amount specified in such notice shall be due and payable on the date specified therein, together with (except in the case of Loans that are ABR Loans) accrued interest to such date on the amount prepaid.   

 

(b)     Swingline Loans. Optional prepayments of Swingline Loans shall be permitted on the same day as written notice is received by the Administrative Agent and the Swingline Lender. 

  

 

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Section 2.6     Mandatory Prepayments. The Loans shall be prepaid, and the Letters of Credit shall be cash collateralized or replaced, to the extent such extensions of credit exceed the amount of Total Extensions of Credit; provided however, that Liens on cash collateral to secure Letters of Credit in accordance with the foregoing provisions of this Section 2.6 shall not be used to determine Borrower’s compliance with the $30,000,000 limitation set forth in Section 7.3(k). 

 

Section 2.7     Revolving Loan Conversion and Continuation Options. (a) The Borrower may elect from time to time to convert Eurodollar Loans to ABR Loans by giving the Administrative Agent prior irrevocable notice of such election no later than 11:00 A.M., New York City time, on the Business Day preceding the proposed conversion date, provided that any such conversion of Eurodollar Loans may only be made on the last day of an Interest Period with respect thereto. The Borrower may elect from time to time to convert ABR Loans to Eurodollar Loans by giving the Administrative Agent prior irrevocable notice of such election no later than 11:00 A.M., New York City time, on the third Business Day preceding the proposed conversion date (which notice shall specify the length of the initial Interest Period therefor), provided that no ABR Loan may be converted into a Eurodollar Loan when any Event of Default has occurred and is continuing and the Administrative Agent or the Majority Lenders have determined in its or their sole discretion not to permit such conversions. Upon receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender thereof.

 

(b)     Any Eurodollar Loan may be continued as such upon the expiration of the then current Interest Period with respect thereto by the Borrower giving irrevocable notice to the Administrative Agent, in accordance with the applicable provisions of the term “Interest Period” set forth in Section 1.1, of the length of the next Interest Period to be applicable to such Loan, provided that no Eurodollar Loan may be continued as such when any Event of Default has occurred and is continuing and the Administrative Agent has, or the Majority Lenders have, determined in its or their sole discretion not to permit such continuations, and provided, further, that if the Borrower shall fail to give any required notice as described above in this paragraph or if such continuation is not permitted pursuant to the preceding proviso, each such Loan shall be automatically converted to an ABR Loan on the last day of such then expiring Interest Period. Upon receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender thereof.

 

(c)     Notices under this Section 2.7 shall be made by a Responsible Officer on behalf of the Borrower.

 

Section 2.8     Limitations on Eurodollar Tranches. Notwithstanding anything to the contrary in this Agreement, all borrowings, conversions and continuations of Eurodollar Loans and all selections of Interest Periods shall be in such amounts and be made pursuant to such elections so that (a) after giving effect thereto, the aggregate principal amount of the Eurodollar Loans comprising each Eurodollar Tranche shall be equal to $5,000,000 or a whole multiple of $1,000,000 in excess thereof and (b) no more than ten Eurodollar Tranches shall be outstanding at any one time.

 

Section 2.9     Interest Rates and Payment Dates. (a)   Each Eurodollar Loan shall bear interest for each day during each Interest Period with respect thereto at a rate per annum equal to the Eurodollar Rate determined for such day plus the Applicable Margin.

 

(b)     Each ABR Loan and each Swingline Loan shall bear interest at a rate per annum equal to the ABR plus the Applicable Margin.

  

 

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(c)     (i) If all or a portion of the principal amount of any Loan or Reimbursement Obligation shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), all outstanding Loans and Reimbursement Obligations (whether or not overdue) shall bear interest at a rate per annum equal to (x) in the case of the Loans, the rate that would otherwise be applicable thereto pursuant to the foregoing provisions of this Section plus 2% or (y) in the case of Reimbursement Obligations, the rate applicable to ABR Loans plus 2%, and (ii) if all or a portion of any interest payable on any Loan or Reimbursement Obligation or any commitment fee or other amount payable hereunder shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), such overdue amount shall bear interest at a rate per annum equal to the rate then applicable to ABR Loans plus 2%, in each case, with respect to clauses (i) and (ii) above, from the date of such non payment until such amount is paid in full (as well after as before judgment).

 

(d)     Interest shall be payable in arrears on each Interest Payment Date, provided that interest accruing pursuant to paragraph (c) of this Section shall be payable from time to time on demand.

 

(e)     In the event that any financial statement delivered pursuant to Section 6.1 or any Compliance Certificate is shown to be inaccurate (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher or lower Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, the Borrower shall immediately (i) deliver to the Administrative Agent a corrected Compliance Certificate for such Applicable Period, (ii) determine the Applicable Margin for such Applicable Period based upon the corrected Compliance Certificate and (iii) immediately pay to the Administrative Agent for the benefit of the Lenders the net accrued additional interest and other fees, if any, owing as a result of such modifications to the Applicable Margin for such Applicable Period, which payment shall be promptly distributed by the Administrative Agent to the Lenders entitled thereto.

 

Section 2.10     Computation of Interest and Fees. (a) Interest and fees payable pursuant hereto shall be calculated on the basis of a 360 day year for the actual days elapsed, except that, with respect to ABR Loans the rate of interest on which is calculated on the basis of the Prime Rate, the interest thereon shall be calculated on the basis of a 365- (or 366-, as the case may be) day year for the actual number of days elapsed. The Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders of each determination of a Eurodollar Rate. Any change in the interest rate on a Loan resulting from a change in the ABR or the Eurocurrency Reserve Requirements shall become effective as of the opening of business on the day on which such change becomes effective. The Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders of the effective date and the amount of each such change in interest rate.

 

(b)     Each determination of an interest rate by the Administrative Agent pursuant to any provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in the absence of manifest error. The Administrative Agent shall, at the request of the Borrower, deliver to the Borrower a statement showing the quotations used by the Administrative Agent in determining any interest rate pursuant to Section 2.9(a).

 

Section 2.11     Inability to Determine Interest Rate. If prior to the first day of any Interest Period:

 

(a)     the Administrative Agent shall have determined (which determination shall be conclusive and binding upon the Borrower) that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period, or

  

 

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(b)     the Administrative Agent shall have received notice from the Majority Lenders that the Eurodollar Rate determined or to be determined for such Interest Period will not adequately and fairly reflect the cost to such Lenders (as conclusively certified by such Lenders) of making or maintaining their affected Loans during such Interest Period, the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and the relevant Lenders as soon as practicable thereafter. If such notice is given (x) any Eurodollar Loans requested to be made on the first day of such Interest Period shall be made as ABR Loans, (y) any Loans that were to have been converted on the first day of such Interest Period to Eurodollar Loans shall be continued as ABR Loans and (z) any outstanding Eurodollar Loans shall be converted, on the last day of the then-current Interest Period, to ABR Loans. Until such notice has been withdrawn by the Administrative Agent, no further Eurodollar Loans shall be made or continued as such, nor shall the Borrower have the right to convert Loans to Eurodollar Loans.

 

Section 2.12     Pro Rata Treatment and Payments. (a) Each borrowing by the Borrower from the Lenders hereunder, each payment by the Borrower on account of any commitment fee and any reduction of the Commitments of the Lenders shall be made pro rata according to the respective Applicable Percentages, as the case may be, of the relevant Lenders, provided that payments with respect to Swingline Loans shall be for the account of the Swingline Lender unless a Lender has funded its participation in such Swingline Loan, in which case such payments shall be for the account of the funding Lender.

 

(b)     Each payment (including each prepayment) by the Borrower on account of principal of and interest on the Revolving Loans shall be made pro rata according to the respective outstanding principal amounts of the Revolving Loans then held by the Lenders.

 

(c)     All payments (including prepayments) to be made by the Borrower hereunder, whether on account of principal, interest, fees or otherwise, shall be made without setoff, deduction or counterclaim and shall be made prior to 12:00 Noon, New York City time, on the due date thereof to the Administrative Agent, for the account of the Lenders, at the Funding Office, in Dollars and in immediately available funds, except that payments pursuant to Sections 2.13, 2.14, 2.15 and 10.5 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute such payments to each relevant Lender promptly upon receipt in like funds as received. If any payment hereunder (other than payments on the Eurodollar Loans) becomes due and payable on a day other than a Business Day, such payment shall be extended to the next succeeding Business Day. If any payment on a Eurodollar Loan becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding Business Day unless the result of such extension would be to extend such payment into another calendar month, in which event such payment shall be made on the immediately preceding Business Day. In the case of any extension of any payment of principal pursuant to the preceding two sentences, interest thereon shall be payable at the then applicable rate during such extension.

 

(d)     Unless the Administrative Agent shall have been notified in writing by any Lender prior to a borrowing that such Lender will not make the amount that would constitute its share of such borrowing available to the Administrative Agent, the Administrative Agent may assume that such Lender is making such amount available to the Administrative Agent, and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower a corresponding amount. If such amount is not made available to the Administrative Agent by the required time on the Borrowing Date therefor, such Lender shall pay to the Administrative Agent, on demand, such amount with interest thereon, at a rate equal to the greater of (i) the Federal Funds Effective Rate and (ii) a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, for the period until such Lender makes such amount immediately available to the Administrative Agent. A certificate of the Administrative Agent submitted to any Lender with respect to any amounts owing under this paragraph shall be conclusive in the absence of manifest error. If such Lender’s share of such borrowing is not made available to the Administrative Agent by such Lender within three Business Days after such Borrowing Date, the Administrative Agent shall also be entitled to recover such amount with interest thereon at the rate per annum applicable to ABR Loans, on demand, from the Borrower.

  

 

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(e)     Unless the Administrative Agent shall have been notified in writing by the Borrower prior to the date of any payment due to be made by the Borrower hereunder that the Borrower will not make such payment to the Administrative Agent, the Administrative Agent may assume that the Borrower is making such payment, and the Administrative Agent may, but shall not be required to, in reliance upon such assumption, make available to the Lenders their respective pro rata shares of such prepayment. If such payment is not made to the Administrative Agent by the Borrower within three Business Days after such due date, the Administrative Agent shall be entitled to recover, on demand, from each Lender to which any amount which was made available pursuant to the preceding sentence, such amount with interest thereon at the rate per annum equal to the daily average Federal Funds Effective Rate. Nothing herein shall be deemed to limit the rights of the Administrative Agent or any Lender against the Borrower.

 

Section 2.13     Requirements of Law. (a) If the adoption of or any change in any Requirement of Law or in the interpretation or application thereof or compliance by any Lender with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority made subsequent to the date hereof:

 

(i)     shall subject any Lender to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit, any Application or any Eurodollar Loan made by it, or change the basis of taxation of payments to such Lender in respect thereof (except for Non-Excluded Taxes covered by Section 2.14 and changes in the rate of tax on the overall net income of such Lender);

 

(ii)     shall impose, modify or hold applicable any reserve, special deposit, compulsory loan, liquidity or similar requirement against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any office of such Lender that is not otherwise included in the determination of the Eurodollar Rate; or

 

(iii)     shall impose on such Lender any other condition, cost or expense;

 

and the result of any of the foregoing is to increase the cost to such Lender, by an amount that such Lender deems to be material, of making, converting into, continuing or maintaining Eurodollar Loans or issuing or participating in Letters of Credit or Swingline Loans, or to reduce any amount receivable hereunder in respect thereof, then, in any such case, the Borrower shall promptly pay such Lender, upon its demand, any additional amounts necessary to compensate such Lender for such increased cost or reduced amount receivable. If any Lender becomes entitled to claim any additional amounts pursuant to this paragraph, it shall promptly notify the Borrower (with a copy to the Administrative Agent) of the event by reason of which it has become so entitled which notice shall include computations reflecting the amounts owed under this Section 2.13(a).

 

(b)     If any Lender shall have determined that the adoption of or any change in any Requirement of Law regarding capital adequacy or liquidity or in the interpretation or application thereof or compliance by such Lender or any corporation controlling such Lender with any request or directive regarding capital adequacy or liquidity (whether or not having the force of law) from any Governmental Authority made subsequent to the date hereof shall have the effect of reducing the rate of return on such Lender’s or such corporation’s capital as a consequence of its obligations hereunder or under or in respect of any Letter of Credit to a level below that which such Lender or such corporation could have achieved but for such adoption, change or compliance (taking into consideration such Lender’s or such corporation’s policies with respect to capital adequacy or liquidity, as applicable) by an amount deemed by such Lender to be material, then from time to time, after submission by such Lender to the Borrower (with a copy to the Administrative Agent) of a written request therefor which request shall include computations reflecting the amounts owed under this Section 2.13(b), the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender or such corporation for such reduction. 

  

 

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(c)     A certificate as to any additional amounts payable pursuant to this Section submitted by any Lender to the Borrower (with a copy to the Administrative Agent) shall be conclusive in the absence of manifest error. Notwithstanding anything to the contrary in this Section, the Borrower shall not be required to compensate a Lender pursuant to this Section for any amounts incurred more than nine months prior to the date that such Lender notifies the Borrower of such Lender’s intention to claim compensation therefor; provided that, if the circumstances giving rise to such claim have a retroactive effect, then such nine-month period shall be extended to include the period of such retroactive effect. The obligations of the Borrower pursuant to this Section shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

 

For the purposes of this Section 2.13, the Dodd Frank Wall Street Reform and Consumer Protection Act, Basel III and all rules, regulations, orders, requests, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign Governmental Authorities in connection therewith are deemed to have been adopted and gone into effect after the date of this Agreement.

 

Section 2.14     Taxes. (a) All payments made by the Borrower under this Agreement shall be made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, excluding net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the Administrative Agent or any Lender as a result of a present or former connection between the Administrative Agent or such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection arising solely from the Administrative Agent or such Lender having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement or any other Loan Document). If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded Taxes”) or Other Taxes are required to be withheld from any amounts payable to the Administrative Agent or any Lender hereunder, the amounts so payable to the Administrative Agent or such Lender shall be increased to the extent necessary to yield to the Administrative Agent or such Lender (after payment of all Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Agreement, provided, however, that the Borrower shall not be required to increase any such amounts payable to any Lender with respect to any Non-Excluded Taxes (i) that are attributable to such Lender’s failure to comply with the requirements of paragraph (d) or (e) of this Section or (ii) that are United States withholding taxes imposed on amounts payable to such Lender at the time such Lender becomes a party to this Agreement, except to the extent that such Lender’s assignor (if any) was entitled, at the time of assignment, to receive additional amounts from the Borrower with respect to such Non-Excluded Taxes pursuant to this paragraph.

 

(b)     In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.

  

 

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(c)     Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly as possible thereafter, the Borrower shall send to the Administrative Agent for its own account or for the account of the relevant Lender, as the case may be, a certified copy of an original official receipt received by the Borrower showing payment thereof. If the Borrower fails to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to the Administrative Agent the required receipts or other required documentary evidence, the Borrower shall indemnify the Administrative Agent and the Lenders for any incremental taxes, interest or penalties that may become payable by the Administrative Agent or any Lender as a result of any such failure. The Borrower shall indemnify the Administrative Agent and each Lender, within 10 days after written demand thereof, for the full amount of any Non-Excluded Taxes or Other Taxes (including Non-Excluded Taxes and Other Taxes imposed or asserted on or attributed to amounts payable under this Section 2.17) paid by the Administrative Agent or such Lender, as the case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Non-Excluded Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender, or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

(d)     (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.14(d)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

 

(ii)     Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

 

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

 

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

 

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

  

 

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(2)     in the case of a Non-U.S. Lender claiming that its extension of credit will generate U.S. effectively connected income, executed originals of IRS Form W-8ECI;

 

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

 

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

 

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

 

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

 

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

  

 

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(e)     A Lender that is entitled to an exemption from or reduction of non-U.S. withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable law or reasonably requested by the Borrower, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate, provided that such Lender is legally entitled to complete, execute and deliver such documentation and in such Lender’s judgment such completion, execution or submission would not materially prejudice the legal position of such Lender.

 

(f)     If the Administrative Agent or any Lender determines, in its sole discretion, that it has received a refund of any Non-Excluded Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section 2.14, it shall pay over such refund to the Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section 2.14 with respect to the Non Excluded Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided, that the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority. This paragraph shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to the Borrower or any other Person.

 

(g)     The agreements in this Section shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

 

Section 2.15     Indemnity. The Borrower agrees to indemnify each Lender for, and to hold each Lender harmless from, any loss or expense that such Lender may sustain or incur as a consequence of (a) default by the Borrower in making a borrowing of, conversion into or continuation of Eurodollar Loans after the Borrower has given a notice requesting the same in accordance with the provisions of this Agreement, (b) default by the Borrower in making any prepayment of or conversion from Eurodollar Loans after the Borrower has given a notice thereof in accordance with the provisions of this Agreement or (c) the making of a prepayment of Eurodollar Loans on a day that is not the last day of an Interest Period with respect thereto. Such indemnification may include an amount equal to the excess, if any, of (i) the amount of interest that would have accrued on the amount so prepaid, or not so borrowed, converted or continued, for the period from the date of such prepayment or of such failure to borrow, convert or continue to the last day of such Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such failure) in each case at the applicable rate of interest for such Loans provided for herein (excluding, however, the Applicable Margin included therein, if any) over (ii) the amount of interest (as reasonably determined by such Lender) that would have accrued to such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank eurodollar market. A certificate as to any amounts payable pursuant to this Section and including the basis therefor and a calculation of such amount, all in reasonable detail, submitted to the Borrower by any Lender shall be conclusive in the absence of manifest error. This covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

  

 

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Section 2.16     Change of Lending Office. Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 2.13 or 2.14(a) with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to designate another lending office for any Loans affected by such event with the object of avoiding the consequences of such event; provided, that such designation is made on terms that, in the sole judgment of such Lender, cause such Lender and its lending office(s) to suffer no economic, legal or regulatory disadvantage, and provided, further, that nothing in this Section shall affect or postpone any of the obligations of the Borrower or the rights of any Lender pursuant to Section 2.13 or 2.14(a).

 

Section 2.17     Replacement of Lenders. The Borrower shall be permitted to replace any Lender that (a) requests reimbursement for amounts owing pursuant to Section 2.13 or 2.14(a), (b) becomes a Defaulting Lender (in such case, for so long as such Lender is a Defaulting Lender) or (c) does not consent to any proposed amendment, supplement, modification, consent or waiver of any provision of this Agreement or any other Loan Document that requires the consent of each of the Lenders or each of the Lenders affected thereby (so long as the consent of the Majority Lenders (with the percentage in such definition, for this purpose, being deemed to be 80% of the aggregate amount of the Commitments) has been obtained), with a replacement financial institution; provided that (i) such replacement does not conflict with any Requirement of Law, (ii) no Event of Default shall have occurred and be continuing at the time of such replacement, (iii) prior to any such replacement, such Lender shall have taken no action so as to eliminate the continued need for payment of amounts owing pursuant to Section 2.13 or 2.14(a), (iv) the replacement financial institution shall purchase, at par, all Revolving Loans and other amounts owing to such replaced Lender on or prior to the date of replacement, (v) the Borrower shall be liable to such replaced Lender under Section 2.15 if any Eurodollar Loan owing to such replaced Lender shall be purchased other than on the last day of the Interest Period relating thereto, (vi) the replacement financial institution shall be reasonably satisfactory to the Administrative Agent and each Issuing Lender, (vii) the replaced Lender shall be obligated to make such replacement in accordance with the provisions of Section 10.6 (provided that the Borrower shall be obligated to pay the registration and processing fee referred to therein), (viii) until such time as such replacement shall be consummated, the Borrower shall pay all additional amounts (if any) required pursuant to Section 2.13 or 2.14(a), as the case may be, and (ix) any such replacement shall not be deemed to be a waiver of any rights that the Borrower, the Administrative Agent or any other Lender shall have against the replaced Lender.

 

Section 2.18     Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:

 

(a)     Commitment fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 2.3;

 

(b)     the Commitment and Revolving Exposure of such Defaulting Lender shall not be included in determining whether all Lenders or the Majority Lenders have taken or may take any action hereunder (including any consent to any amendment or waiver or other modification pursuant to Section 10.1), provided that any waiver, amendment or modification that (x) reduces the amounts of any fees payable hereunder or the amount of principal of or the rate at which interest is payable on the Revolving Loans, (y) increases the Defaulting Lender’s Commitment or (z) extends the dates fixed for payments of principal or interest on the Loans shall require the approval or consent of such Defaulting Lender;

 

(c)     if any Swingline Exposure or L/C Obligations exist at the time a Lender becomes a Defaulting Lender then:

  

 

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(i)     all or any part of such Defaulting Lender’s Swingline Exposure and L/C Exposure shall be reallocated ratably among the non-Defaulting Lenders in accordance with their respective Commitments and this obligation to reallocate shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to reallocation that any non-Defaulting Lender may have or have had against an Issuing Lender, the Borrower or any other Lender (including the Defaulting Lender); provided that such L/C Exposure shall be reallocated among the non-Defaulting Lenders only to the extent that (x) the sum of all non-Defaulting Lenders’ Loans and all non-Defaulting Lenders’ L/C Exposure plus such Defaulting Lender’s L/C Exposure does not exceed the total of all non-Defaulting Lenders’ Commitments, (y) the sum of each non-Defaulting Lender’s Loans and such non-Defaulting Lender’s L/C Exposure plus its reallocated share of such Defaulting Lender’s L/C Exposure does not exceed such non-Defaulting Lender’s Commitment and (z) the conditions set forth in Section 5.2 are satisfied at such time;

 

(ii)     if in accordance with the immediately foregoing clause (i) of this Section 2.18(c), the reallocation described therein cannot, or can only partially, be effected, the Borrower shall, within one Business Day following notice by the Administrative Agent, provide cash collateral to the Administrative Agent in an amount equal to 100% of such Defaulting Lender’s L/C Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) for so long as such L/C Exposure is outstanding;

 

(iii)     if the Borrower cash collateralizes any portion of such Defaulting Lender’s L/C Exposure pursuant to this Section 2.18(c), the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 3.3 with respect to such Defaulting Lender’s L/C Exposure during the period such Defaulting Lender’s L/C Exposure is cash collateralized;

 

(iv)     if the L/C Exposure of the non-Defaulting Lenders are reallocated pursuant to Section 2.18(c)(i), then during the period of such reallocation the fees payable to the Lenders pursuant to Section 3.3 and (b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages; and

 

(v)     to the extent that any Defaulting Lender’s L/C Exposure are neither cash collateralized nor reallocated pursuant to Section 2.13(c), then, without prejudice to any rights or remedies of an Issuing Lender or any Lender hereunder, the portion of Letter of Credit fees payable under Section 3.3 corresponding to such Defaulting Lender’s L/C Exposure that are neither so cash collateralized nor reallocated shall be payable to an Issuing Lender until such L/C Exposure are cash collateralized and/or reallocated;

 

(d)     If any Swingline Exposure exists at the time a Lender becomes a Defaulting Lender then:

 

(i)     all or any part of such Defaulting Lender’s Swingline Exposure shall be reallocated among the non-Defaulting Lenders in accordance with their respective Revolving Exposures (calculated without regard to such Defaulting Lender’s Commitment) but only to the extent (x) the sum of all non-Defaulting Lenders’ Revolving Exposures plus such Defaulting Lender’s L/C Exposure does not exceed the total of all non-Defaulting Lenders’ Commitments and (y) the conditions set forth in Section 5.2 are satisfied at such time;

 

(ii)     if the reallocation described in clause (i) above cannot, or can only partially, be effected, then the Borrower shall within one (1) Business Day following notice by the Administrative Agent prepay such Defaulting Lender’s Swingline Exposure (after giving effect to any partial reallocation pursuant to clause (i) above); or

  

 

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(iii)     if the Swingline Exposure of the non-Defaulting Lenders is reallocated pursuant to this Section 2.18(d), then the fees payable to the Lenders pursuant to Section 2.3 shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages (calculated without regard to such Defaulting Lender’s Commitment);

 

(e)     so long as any Lender is a Defaulting Lender, no Swingline Lenders shall be required to fund any Swingline Loan and an Issuing Lender shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral that will be provided by the Borrower, and participating interests in any such newly issued or increased Swingline Loan or Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.18(c)(i) (and Defaulting Lenders shall not participate therein); and

 

(f)     any amount due and payable to such Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise and including any amount that would otherwise be payable to such Defaulting Lender) shall, to the extent permitted by applicable law, in lieu of being distributed to such Defaulting Lender, be retained by the Administrative Agent in a segregated account and, subject to any applicable requirements of law, be applied at such time or times as may be determined by the Administrative Agent (i) first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; (ii) second, to the payment of any amounts owing by such Defaulting Lender to any Issuing Lender hereunder, (iii) third, to the funding of any Loan or the funding or cash collateralization of any participating interest in any Letter of Credit or Swingline Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, (iv) fourth, if so determined by the Administrative Agent and the Borrower, held in such account as cash collateral for future funding obligations of the Defaulting Lender under this Agreement, (v) fifth, pro rata, to the payment of any amounts owing to the Borrower or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by the Borrower or any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement and (vi) sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if such payment is (x) a prepayment of the principal amount of any Loans or reimbursement obligations in respect of a Defaulting Lender’s L/C Exposure and (y) made at a time when the conditions set forth in Section 5.2 are satisfied, such payment shall be applied solely to prepay the Loans of, and reimbursement obligations owed to, all non-Defaulting Lenders pro rata prior to being applied to the prepayment of any Loans, or reimbursements obligations owed to, any Defaulting Lender. In the event that the Administrative Agent, the Borrower, each Swingline Lender and the Issuing Lender each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be Defaulting Lender, then the Swingline Exposure and L/C Exposure of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Revolving Loans of the other Lenders (other than Swingline Loans) as necessary in order for such Lender to hold such Revolving Loans in accordance with its Applicable Percentage.

 

It is expressly agreed and acknowledged that the provisions of this Section 2.18 and their application are not intended to, and shall not, prejudice in any way the rights and remedies of any Loan Party against a Defaulting Lender.

 

Section 2.19     General. When used in this Article II, the term “certificate” shall mean a certificate that includes (to the extent applicable), in reasonable detail, (i) a description of the reason(s) substantiating the action being taken by a Lender and (ii) a calculation of any amounts payable by the Borrower to such Lender. It is also agreed that at any time that any Lender exercises its rights pursuant to Sections 2.11, 2.13 or 2.14, it shall do so not only with respect to the Borrower but in accordance with its policies or other requirements applicable to borrowers similarly situated to the Borrower.

  

 

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ARTICLE III
LETTERS OF CREDIT

 

Section 3.1     Specified L/C Commitments. (a) Subject to the terms and conditions hereof, the Issuing Lenders, in reliance on the agreements of the other Lenders set forth in Section 3.4(a), agree to issue letters of credit (“Letters of Credit”) for the account of the Borrower or any Subsidiary on any Business Day during the Commitment Period in such form as may be approved from time to time by the Administrative Agent and such Issuing Lender; provided that the Issuing Lenders shall have no obligation to issue any Letter of Credit if, after giving effect to such issuance, (i) the L/C Obligations would exceed the L/C Commitment, (ii) the L/C Obligations of any Issuing Lender would exceed such Issuing Lender’s Specified L/C Commitment, (iii) the Extension of Credit of any Lender would exceed its Commitment or (iv) the aggregate amount of the Available Commitments would be less than zero. Letters of Credit may be denominated in Dollars or in any Foreign Currency, shall have a tenor acceptable to the Administrative Agent and may provide for the renewal thereof; provided, however, that any Letter of Credit with an expiration date later than five Business Days prior to the Maturity Date shall be cash collateralized in a manner and an amount acceptable to the relevant Issuing Lender in its sole discretion. To determine compliance with the requirements of the foregoing sentence as to any Issuing Lender’s Specified L/C Commitment and the Available Commitments, Letters of Credit denominated in a currency other than Dollars shall be converted to Dollars in accordance with the Reuters Exchange Rate on the date of issuance thereof. Thereafter, the amount of any such Letters of Credit denominated in a Foreign Currency shall be converted to Dollars as of the last day of each fiscal quarter until the expiration of any such Letter of Credit. In the event that fluctuations in the Reuters Exchange Rate applicable to the conversion from the applicable Foreign Currency to Dollars result in any Issuing Lender’s Specified L/C Commitment or the Available Commitments being exceeded as of the end of any such fiscal quarter, Borrower agrees to provide cash collateral in the amount of such excess for such period as such excess may exist. 

 

(b)     An Issuing Lender shall not at any time be obligated to issue any Letter of Credit if such issuance would conflict with, or cause such Issuing Lender or any L/C Participant to exceed any limits imposed by, any applicable Requirement of Law. Notwithstanding anything herein to the contrary, the Issuing Lenders shall have no obligation hereunder to issue, amend, renew or extend, and shall not issue, amend, renew or extend any Letter of Credit the proceeds of which would be made available to any Person (i) to fund any activity or business of or with any Sanctioned Person, or in any country or territory that, at the time of such funding, is the subject of any Sanctions or (ii) in any manner that would result in a violation of any Sanctions by any party to this Agreement.

 

(c)     The parties hereto agree that the Existing Letters of Credit will automatically, without any further action on the part of any Person, be deemed to be Letters of Credit issued hereunder on the Closing Date for the account of the Borrower.

 

Section 3.2     Procedure for Issuance of Letter of Credit. The Borrower may from time to time request that the Issuing Lender issue a Letter of Credit (or amend, renew or extend an outstanding Letter of Credit) by delivering to the Issuing Lender at its address for notices specified herein an Application therefor (reasonably in advance of the requested date of such issuance, amendment, renewal or extension, but in any event no less than three Business Days), completed to the satisfaction of the Issuing Lender, and such other certificates, documents and other papers and information as the Issuing Lender may request. If requested by the Issuing Bank, the Borrower also shall submit an Application on the Issuing Bank's standard form in connection with any request for a Letter of Credit. The Issuing Lender shall furnish a copy of such Letter of Credit to the Borrower promptly following the issuance thereof. The Issuing Lender shall promptly furnish to the Administrative Agent, who shall in turn promptly furnish to the Lenders, notice of the issuance of each Letter of Credit (including the amount thereof).

  

 

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Section 3.3     Fees and Other Charges. (a) The Borrower will pay a fee on the face amount of all outstanding Financial Letters of Credit at a per annum rate equal to the Applicable Margin then in effect with respect to Eurodollar Loans and a fee on the face amount of all outstanding Performance Letters of Credit at a per annum rate as set forth in the table below, such fees to be shared ratably among the Lenders and payable quarterly in arrears on each Fee Payment Date after the issuance date. For purposes of calculating such fees, the face amount of Letters of Credit denominated in a Foreign Currency shall be converted to Dollars in accordance with the Reuters Exchange Rate as in effect on the payment due date of such fees.

 

	
Level
	
Consolidated Leverage Ratio
	
Performance L/C Fee

	
I
	
Less than 1.00x
	
1.25%

	
II
	
Greater than or equal to 1.00x but less than 1.50x
	
1.50%

	
III
	
Greater than or equal to 1.50x but less than 2.00x
	
1.75%

	
IV
	
Greater than or equal to 2.00x but less than 2.50x
	
2.00%

	
V
	
Greater than or equal to 2.50x 
	
2.25%

 

(b)     In addition to the foregoing fees, the Borrower shall pay or reimburse the Issuing Lender for such normal and customary costs and expenses as are incurred or charged by the Issuing Lender in issuing, negotiating, effecting payment under, amending or otherwise administering any Letter of Credit.

 

Section 3.4     L/C Participations. (a) The Issuing Lender irrevocably agrees to grant and hereby grants to each L/C Participant, and, to induce the Issuing Lender to issue Letters of Credit (or to amend an outstanding Letter of Credit in order to increase the amount thereof), each L/C Participant irrevocably agrees to accept and purchase and hereby accepts and purchases from the Issuing Lender, on the terms and conditions set forth below, for such L/C Participant’s own account and risk an undivided interest equal to such L/C Participant’s Applicable Percentage in the Issuing Lender’s obligations and rights under and in respect of each Letter of Credit and the amount available to be drawn thereunder. Each L/C Participant agrees with the Issuing Lender that, if a draft is paid under any Letter of Credit for which the Issuing Lender is not reimbursed in full by the Borrower in accordance with the terms of this Agreement, such L/C Participant shall pay to the Issuing Lender upon demand at the Issuing Lender’s address for notices specified herein an amount equal to such L/C Participant’s Applicable Percentage of the amount of such draft, or any part thereof, that is not so reimbursed, provided that, if such reimbursement obligation is in connection with a Letter of Credit issued in a Foreign Currency, the amount of such reimbursement obligation shall be paid in Dollars, such amount to be determined by converting such Foreign Currency draw to Dollars using the Reuters Exchange Rate on the date on which the Letter of Credit was issued. Each L/C Participant’s obligation to pay such amount shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any setoff, counterclaim, recoupment, defense or other right that such L/C Participant may have against the Issuing Lender, the Borrower or any other Person for any reason whatsoever, (ii) any amendment, renewal or extension of any Letter of Credit, the occurrence or continuance of a Default or an Event of Default, the reduction or termination of the Commitments, or the failure to satisfy any of the other conditions specified in Article V, (iii) any adverse change in the condition (financial or otherwise) of the Borrower, (iv) any breach of this Agreement or any other Loan Document by the Borrower, any other Loan Party or any other L/C Participant or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.

  

 

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(b)     If any amount required to be paid by any L/C Participant to the Issuing Lender pursuant to Section 3.4(a) in respect of any unreimbursed portion of any payment made by the Issuing Lender under any Letter of Credit is not paid to the Issuing Lender within three (3) Business Days after the date such payment is due, such L/C Participant shall pay to the Issuing Lender on demand an amount equal to the product of (i) such amount, times (ii) the daily average Federal Funds Effective Rate during the period from and including the date such payment is required to the date on which such payment is immediately available to the Issuing Lender, times (iii) a fraction the numerator of which is the number of days that elapse during such period and the denominator of which is 360. If any such amount required to be paid by any L/C Participant pursuant to Section 3.4(a) is not made available to the Issuing Lender by such L/C Participant within three (3) Business Days after the date such payment is due, the Issuing Lender shall be entitled to recover from such L/C Participant, on demand, such amount with interest thereon calculated from such due date at the rate per annum applicable to ABR Loans. A certificate of the Issuing Lender submitted to any L/C Participant with respect to any amounts owing under this Section shall be conclusive in the absence of manifest error.

 

(c)     Whenever, at any time after the Issuing Lender has made payment under any Letter of Credit and has received from any L/C Participant its pro rata share of such payment in accordance with Section 3.4(a), the Issuing Lender receives any payment related to such Letter of Credit (whether directly from the Borrower or otherwise, including proceeds of collateral applied thereto by the Issuing Lender), or any payment of interest on account thereof, the Issuing Lender will distribute to such L/C Participant its pro rata share thereof; provided, however, that in the event that any such payment received by the Issuing Lender shall be required to be returned by the Issuing Lender, such L/C Participant shall return to the Issuing Lender the portion thereof previously distributed by the Issuing Lender to it.

 

Section 3.5     Reimbursement Obligation of the Borrower. If any draft is paid under any Letter of Credit, the Borrower shall reimburse the Issuing Lender for the amount of (a) the draft so paid and (b) any taxes, fees, charges or other costs or expenses incurred by the Issuing Lender in connection with such payment, not later than 12:00 Noon, New York City time, on (i) the Business Day that the Borrower receives notice of such draft, if such notice is received on such day prior to 10:00 A.M., New York City time, or (ii) if clause (i) above does not apply, the Business Day immediately following the day that the Borrower receives such notice. Each such payment shall be made to the Issuing Lender at its address for notices referred to herein in Dollars (and in the case of a Letter of Credit denominated in a Foreign Currency, such Foreign Currency) and in immediately available funds. Interest shall be payable on any such amounts from the date on which the relevant draft is paid until payment in full at the rate set forth in (x) until the Business Day next succeeding the date of the relevant notice, Section 2.9(b) and (y) thereafter, Section 2.9(c).

 

Section 3.6     Obligations Absolute. The Borrower’s obligations under this Article III shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment that the Borrower may have or have had against the Issuing Lender, any beneficiary of a Letter of Credit or any other Person. The Borrower also agrees with the Issuing Lender that the Issuing Lender shall not be responsible for, and the Borrower’s Reimbursement Obligations under Section 3.5 shall not be affected by, among other things, (a) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (b) the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged in any respect, or any statement therein being untrue or inaccurate in any respect, (c) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, (d) any dispute between or among the Borrower and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee, or (e) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 3.6, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower's obligations hereunder. Neither the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Bank; provided that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to special, indirect, consequential or punitive damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank's failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

  

 

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Section 3.7     Letter of Credit Payments. The Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy) of such demand for payment and whether the Issuing Bank has made or will make a disbursement under such Letter of Credit; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the Lenders with respect to any such disbursement.

 

Section 3.8     Applications. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of Application or other agreement submitted by the Borrower to, or entered into by the Borrower with, any Issuing Lender relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

 

ARTICLE IV
REPRESENTATIONS AND WARRANTIES

 

To induce the Administrative Agent and the Lenders to enter into this Agreement and to make the Loans and issue or participate in the Letters of Credit, the Borrower hereby represents and warrants to the Administrative Agent and each Lender, as of the Closing Date and as of any date that the representations and warranties set forth below are made or deemed to be made, that:

 

Section 4.1     Financial Condition. The audited consolidated balance sheets of the Borrower as at December 31, 2012, December 31, 2013 and December 31, 2014, and the related consolidated statements of income and of cash flows for the fiscal years ended on such dates, reported on and accompanied by an unqualified report from Deloitte & Touche LLP, present fairly the consolidated financial condition of the Borrower as at such dates and the consolidated results of its operations and its consolidated cash flows for the respective fiscal years then ended. All such financial statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP applied consistently throughout the periods involved (subject to normal year-end audit adjustments and except as approved by the aforementioned firm of accountants and disclosed therein). No Group Member has any material Guarantee Obligations, contingent liabilities of material liabilities for taxes or any long term leases or unusual forward or long term commitments, including any interest rate or foreign currency swap or exchange transaction or other obligation in respect of derivatives, that are not reflected in the most recent financial statements referred to in this paragraph. During the period from December 31, 2014 to and including the date hereof, there has been no Disposition by any Group Member of any material part of its business or property that has not been disclosed by Borrower to the Administrative Agent.

  

 

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Section 4.2     No Change. Since December 31, 2014, there has been no development or event that has had or could reasonably be expected to have a Material Adverse Effect.

 

Section 4.3     Existence; Compliance with Law. Each Group Member (a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (b) has the power and authority, and the legal right, to own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged, (c) is duly qualified as a foreign corporation or other organization and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification, except to the extent failure to so qualify or be in good standing could not reasonably be expected to have a Material Adverse Effect and (d) is in compliance with all Requirements of Law except to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

Section 4.4     Power; Authorization; Enforceable Obligations. Each Loan Party has the power and authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a party and, in the case of the Borrower, to obtain extensions of credit hereunder. Each Loan Party has taken all necessary organizational action to authorize the execution, delivery and performance of the Loan Documents to which it is a party and, in the case of the Borrower, to authorize the extensions of credit on the terms and conditions of this Agreement. No consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person is required in connection with the extensions of credit hereunder or with the execution, delivery, performance, validity or enforceability of this Agreement or any of the Loan Documents, except (i) consents, authorizations, filings and notices described in Schedule 4.4, which consents, authorizations, filings and notices have been obtained or made and are in full force and effect and (ii) the filings referred to in Section 4.19. Each Loan Document has been duly executed and delivered on behalf of each Loan Party party thereto. This Agreement constitutes, and each other Loan Document upon execution will constitute, a legal, valid and binding obligation of each Loan Party party thereto, enforceable against each such Loan Party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

Section 4.5     No Legal Bar. The execution, delivery and performance of this Agreement and the other Loan Documents, the issuance of Letters of Credit, the borrowings hereunder and the use of the proceeds thereof will not violate any Requirement of Law or any Contractual Obligation of any Group Member and will not result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any such Contractual Obligation (other than the Liens created by the Security Documents). No Requirement of Law or Contractual Obligation applicable to the Borrower or any of its Subsidiaries could reasonably be expected to have a Material Adverse Effect.

 

Section 4.6     Litigation. No litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower, threatened by or against any Group Member or against any of their respective properties or revenues (a) with respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby, or (b) that could reasonably be expected to have a Material Adverse Effect.

  

 

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Section 4.7     No Default. No Group Member is in default under or with respect to any of its Contractual Obligations in any respect that could reasonably be expected to have a Material Adverse Effect. No Default or Event of Default has occurred and is continuing.

 

Section 4.8     Ownership of Property; Liens. Each Group Member has title in fee simple to, or a valid leasehold interest in, all its real property, and good title to, or a valid leasehold interest in, all its other property, and none of such property is subject to any Lien except (i) as set forth in the title policies and/or endorsements delivered in connection with the Original Credit Agreement or the First Amended and Restated Credit Agreement and (ii) as permitted by Section 7.3.

 

Section 4.9     Intellectual Property. Each Group Member owns, or is licensed to use, all Intellectual Property necessary for the conduct of its business as currently conducted. No material claim has been asserted and is pending by any Person challenging or questioning the use of any Intellectual Property or the validity or effectiveness of any Intellectual Property, nor does the Borrower know of any valid basis for any such claim. The use of Intellectual Property by each Group Member does not infringe on the rights of any Person in any material respect.

 

Section 4.10     Taxes. Each Group Member has filed or caused to be filed all Federal, state and other material tax returns that are required to be filed and has paid all taxes shown to be due and payable on said returns or on any assessments made against it or any of its property and all other taxes, fees or other charges imposed on it or any of its property by any Governmental Authority (other than any the amount or validity of which are currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of the relevant Group Member); to the Borrower’s knowledge, no tax Lien has been filed and no claim is being asserted, with respect to any such tax, fee or other charge.

 

Section 4.11     Federal Regulations. No part of the proceeds of any Loans, and no other extensions of credit hereunder, will be used (a) for “buying” or “carrying” any “margin stock” (within the respective meanings of each of the quoted terms under Regulation U) in violation of Regulation U. If requested by any Lender or the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR Form U 1, as applicable, referred to in Regulation U.

 

Section 4.12     Labor Matters. Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect: (a) there are no strikes or other labor disputes against any Group Member pending or, to the knowledge of the Borrower, threatened; (b) hours worked by and payment made to employees of each Group Member have not been in violation of the Fair Labor Standards Act or any other applicable Requirement of Law dealing with such matters; and (c) all payments due from any Group Member on account of employee health and welfare insurance have been paid or accrued as a liability on the books of the relevant Group Member. 

 

Section 4.13     ERISA. (a) Except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect: (i) each Group Member and each Commonly Controlled Entity is in compliance with the applicable provisions of ERISA and the provisions of the Code relating to Plans and the regulations and published interpretations thereunder; (ii) no ERISA Event has occurred or is reasonably expected to occur; and (iii) all amounts required by applicable law with respect to, or by the terms of, any retiree welfare benefit arrangement maintained by any Group Member or any Commonly Controlled Entity or to which any Group Member or any Commonly Controlled Entity has an obligation to contribute have been accrued in accordance with ASC Topic 715-60. The present value of all accumulated benefit obligations under each Pension Plan (based on the assumptions used for purposes of ASC Topic 715-30) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than a material amount the fair market value of the assets of such Pension Plan allocable to such accrued benefits. 

  

 

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(b)     Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (i) all employer and employee contributions required by applicable law or by the terms of any Foreign Benefit Arrangement or Foreign Plan have been made, or, if applicable, accrued in accordance with normal accounting practices; (ii) the accrued benefit obligations of each Foreign Plan required to be funded (based on those assumptions used to fund such Foreign Plan) with respect to all current and former participants do not exceed by more than a material amount the fair market value of the assets of such Foreign Plan allocable to such accrued benefits, and all amounts required by applicable law to provide benefits with respect to all current and former participants under each Foreign Plan not required to be funded (based on applicable assumptions) have been accrued in accordance with applicable law and are reflected on the most recent financial statements of the applicable Loan Party or any Commonly Controlled Entity; (iii) each Foreign Plan that is required to be registered has been registered and has been maintained in good standing with applicable regulatory authorities; and (iv) each such Foreign Benefit Arrangement and Foreign Plan is in compliance (A) with all material provisions of applicable law and all material applicable regulations and published interpretations thereunder with respect to such Foreign Benefit Arrangement or Foreign Plan and (B) with the terms of such plan or arrangement.

 

Section 4.14     Investment Company Act; Other Regulations. No Loan Party is an “investment company”, or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended. No Loan Party is subject to regulation under any Requirement of Law (other than Regulation X of the Board) that limits its ability to incur Indebtedness.

 

Section 4.15     Subsidiaries. Except as disclosed to the Administrative Agent by the Borrower in writing from time to time after the Closing Date, (a) Schedule 4.15 sets forth the name and jurisdiction of incorporation of each Subsidiary and the percentage of each class of Capital Stock issued by such Subsidiary and owned by any Loan Party and (b) there are no outstanding subscriptions, options, warrants, calls, rights or other agreements or commitments of any nature relating to the Capital Stock issued by any Subsidiary (other than directors’ qualifying shares and any agreements pursuant to which a partner or shareholder or holder of other equity interest issued by a Subsidiary proposes to sell, convey or otherwise transfer its interest in such Subsidiary to a Group Member).

 

Section 4.16     Use of Proceeds. The proceeds of the Loans and the Letters of Credit shall be used to finance the working capital needs and general corporate purposes of the Borrower and its direct or indirect Subsidiaries so long as no violation of Regulation U results therefrom, including, but not limited to, (a) the repurchase, redemption, conversion and/or refinancing of the Convertible Notes or Capital Stock and the payment of dividends thereon and for other Restricted Payments permitted pursuant to this Agreement, (b) making a Requisite Escrow Deposit and (c) other uses not prohibited by this Agreement. The Borrower shall not make more than $100,000,000 of Convertible Notes Revolver Borrowings in the aggregate, but it is agreed and acknowledged, for the avoidance of doubt, that the foregoing limitation on the use of the proceeds of Loans and the Letters of Credit is not intended to limit Borrower’s use of funds other than Convertible Notes Revolver Borrowings available to Borrower to repurchase, redeem, convert, and/or refinance the Convertible Notes or fund the Requisite Escrow Deposit. 

  

 

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Section 4.17     Environmental Matters. Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect:

 

(a)     the facilities and properties owned, leased or operated by any Group Member (the “Properties”) do not contain, and have not previously contained, any Materials of Environmental Concern in amounts or concentrations or under circumstances that constitute or constituted a violation of, or could reasonably be expected to create liability under, any applicable Environmental Law in effect as of the date this representation is made or deemed made;

 

(b)     no Group Member has received or is aware of any written notice of violation, alleged violation, non-compliance, liability or potential liability under any applicable Environmental Laws with regard to any of the Properties or the business operated by any Group Member (the “Business”), nor does the Borrower have knowledge or reason to believe that any such notice will be received or is being threatened;

 

(c)     Materials of Environmental Concern have not been transported or disposed of from the Properties in violation of, or in a manner or to a location that could reasonably be expected to create liability under, any applicable Environmental Law in effect as of the date this representation is made or deemed made, nor have any Materials of Environmental Concern been generated, treated, stored or disposed of at, on or under any of the Properties in violation of, or in a manner that could reasonably be expected to create liability under, any applicable Environmental Law in effect as of the date this representation is made or deemed made;

 

(d)     no judicial proceeding or governmental or administrative action is pending or, to the knowledge of the Borrower, threatened, under any applicable Environmental Law to which any Group Member is or will be named as a party with respect to the Properties or the Business; nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders or other administrative or judicial requirements outstanding under, any applicable Environmental Law with respect to the Properties or the Business;

 

(e)     there has been no release or threat of release of Materials of Environmental Concern at or from the Properties, or arising from or related to the operations of any Group Member in connection with the Properties or otherwise in connection with the Business in violation, or in amounts or in a manner that could reasonably be expected to create liability under any applicable Environmental Law in effect as of the date this representation is made or deemed made; and

 

(f)     the Properties and all operations at the Properties are in compliance, and have in the last five years been in compliance, with all applicable Environmental Laws, and there is no contamination at, under or about the Properties in violation of any applicable Environmental Law with respect to the Properties or the Business.

 

Section 4.18     Accuracy of Information, etc. No statement or information contained in this Agreement, any other Loan Document or any other document, certificate or statement furnished by or on behalf of any Loan Party to the Administrative Agent or the Lenders, or any of them, for use in connection with the transactions contemplated by this Agreement or the other Loan Documents, contained as of the date such statement, information, document or certificate was so furnished, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements contained herein or therein not misleading. The projections, annual budgets and pro forma financial information contained in the materials referenced above are based upon good faith estimates and assumptions believed by management of the Borrower to be reasonable at the time made, it being recognized by the Administrative Agent and the Lenders that such financial information as it relates to future events is not to be viewed as fact and that actual results during the period or periods covered by such financial information may differ from the projected results set forth therein by a material amount. There is no fact known to any Loan Party that could reasonably be expected to have a Material Adverse Effect that has not been expressly disclosed herein, in the other Loan Documents or in any other documents, certificates and statements furnished to the Administrative Agent and the Lenders for use in connection with the transactions contemplated hereby and by the other Loan Documents.

  

 

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Section 4.19     Security Documents. (a) The Guarantee and Collateral Agreement is effective to create in favor of the Administrative Agent, for the benefit of the Lenders, a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof. In the case of the Pledged Stock (as defined in the Guarantee and Collateral Agreement), when stock certificates representing such Pledged Stock are delivered to the Administrative Agent, and in the case of the other Collateral described in the Guarantee and Collateral Agreement, when financing statements and other filings specified on Schedule 4.19(a) in appropriate form are filed in the offices specified on Schedule 4.19(a), the Guarantee and Collateral Agreement shall constitute a perfected Lien on, and security interest in, all right, title and interest of the Loan Parties in such Collateral and the proceeds thereof, as security for the Obligations (as defined in the Guarantee and Collateral Agreement), in each case prior and superior in right to any other Person (except, in the case of Collateral other than Pledged Stock, Liens permitted by Section 7.3).

 

(b)     Each of the Mortgages is effective to create in favor of the Administrative Agent, for the benefit of the Lenders, a legal, valid and enforceable Lien on the Mortgaged Properties described therein and proceeds thereof, and when the Mortgages or Mortgage Amendments, as applicable, are filed in the offices specified on Schedule 4.19(b), each of the Mortgages or Mortgage Amendments, as applicable, shall constitute a perfected Lien on, and security interest in, all right, title and interest of the Loan Parties in the Mortgaged Properties and the proceeds thereof, as security for the Obligations (as defined in the relevant Mortgage), in each case prior and superior in right to any other Person.

 

Section 4.20     Solvency. After giving effect to the transactions contemplated hereby, the Borrower and the Subsidiary Guarantors, taken as a whole, are Solvent. 

 

Section 4.21     Anti-Corruption Laws and Sanctions. The Borrower has implemented and maintains in effect policies and procedures reasonably intended to procure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower, its Subsidiaries and to the knowledge of the Borrower, their respective officers, employees, directors and agents, are in compliance in all material respects with Anti-Corruption Laws and Sanctions respectively applicable to the Borrower, each of its Subsidiaries and their respective officers, employees, directors and agents. None of the Borrower or any Subsidiary or, to the knowledge of the Borrower, any of their respective directors, officers, employees or agents that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No Loan or Letter of Credit or use of proceeds will at the time of funding violate Anti-Corruption Laws or applicable Sanctions.

 

ARTICLE V
CONDITIONS PRECEDENT

 

Section 5.1     Conditions to Closing Date. The amendment and restatement of the Second Amended and Restated Credit Agreement effected hereby and the obligations of the Lenders to make or maintain Loans and of the Issuing Lenders to issue Letters of Credit shall not become effective until the date on which each of the following conditions is satisfied:

  

 

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(a)     Credit Agreement; Guarantee and Collateral Agreement. The Administrative Agent shall have received (i) this Agreement, executed and delivered by the Administrative Agent, the Borrower and each Person listed on Schedule 1.1(a), and (ii) the Guarantee and Collateral Agreement, executed and delivered by the Borrower and each Subsidiary Guarantor. 

 

(b)     Financial Statements. The Lenders shall have received audited consolidated financial statements of the Borrower for the 2012, 2013 and 2014 fiscal years.

 

(c)     Projections. The Lenders shall have received satisfactory projections (including a projected balance sheet, income statement and cash flow statement together with detailed management assumptions) through 2020 (which condition the Administrative Agent acknowledges has already been satisfied upon the execution hereof).

 

(d)     Approvals. All material governmental and third party approvals necessary in connection with the continuing operations of the Group Members and the transactions contemplated hereby, if any, shall have been obtained on satisfactory terms and be in full force and effect. There shall not exist any action, investigation, litigation or proceeding pending or threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to have a Material Adverse Effect or a material adverse effect on any of the transactions contemplated hereby.

 

(e)     Lien Searches. The Administrative Agent shall have received the results of a recent lien search in each of the jurisdictions where the Loan Parties are organized, and such search shall reveal no Liens on any of the assets of the Loan Parties except for Liens permitted by Section 7.3 or discharged on or prior to the Closing Date pursuant to documentation satisfactory to the Administrative Agent.

 

(f)     Fees. The Lenders, the Arrangers and the Administrative Agent shall have received all fees required to be paid on the Closing Date, and all reasonable out-of-pocket expenses for which invoices have been presented at least three (3) Business Days prior to the Closing Date (including the reasonable fees and expenses of legal counsel), on or before the Closing Date. All such amounts will be paid with proceeds of Loans made on the Closing Date and will be reflected in the funding instructions given by the Borrower to the Administrative Agent on or before the Closing Date.

 

(g)     Closing Certificates; Certified Certificate of Incorporation; Good Standing Certificates. The Administrative Agent shall have received (i) an omnibus officers’ certificate executed by the Borrower in substantially the form of Exhibit C-1, (ii) a secretary’s certificate of each Loan Party, dated the Closing Date, substantially in the form of Exhibit C-2, with appropriate insertions and attachments, including the certificate of incorporation of each Loan Party that is a corporation certified by the relevant authority of the jurisdiction of organization of such Loan Party and (iii) a long form good standing certificate for each Loan Party from its jurisdiction of organization.

 

(h)     Legal Opinions. The Administrative Agent shall have received an executed legal opinion of (i) Andrews Kurth LLP, counsel to the Borrower and its Subsidiaries, substantially in the form of Exhibit F-1, (ii) Mark Airola, Esq., Borrower’s General Counsel, substantially in the form of Exhibit F-2, and (iii) King, Krebs & Jurgens, PLLC, local counsel to the Borrower and its Subsidiaries, substantially in the form of Exhibit F-3.

 

(i)     Pledged Stock; Stock Powers; Pledged Notes. To the extent not already delivered, the Administrative Agent shall have received (i) the certificates representing the shares of Capital Stock pledged pursuant to the Guarantee and Collateral Agreement, together with an undated stock power for each such certificate executed in blank by a duly authorized officer of the pledgor thereof and (ii) each promissory note (if any) pledged to the Administrative Agent pursuant to the Guarantee and Collateral Agreement endorsed (without recourse) in blank (or accompanied by an executed transfer form in blank) by the pledgor thereof.

  

 

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(j)     Filings, Registrations and Recordings. Each document (including any Uniform Commercial Code financing statement) required by the Security Documents or under law and reasonably requested by the Administrative Agent to be filed, registered or recorded in order to create in favor of the Administrative Agent, for the benefit of the Lenders, a perfected Lien on the Collateral described therein, prior and superior in right to any other Person (other than with respect to Liens expressly permitted by Section 7.3), shall be in proper form for filing, registration or recordation.

 

(k)     Mortgages, etc. 

 

(i)     Existing Mortgage. With respect to each Mortgaged Property listed on Schedule 1.1(c)(i), (each an “Existing Mortgaged Property”), the Administrative Agent shall have received (A) an amendment and restatement (each a “Mortgage Amendment”) to each Existing Mortgage in form and substance reasonably satisfactory to the Administrative Agent and substantially in the form of Exhibit D-2, (B) (x) if available in the relevant jurisdiction at a reasonable cost, a date down endorsement shall be obtained for title policies previously provided (but no new title policies shall be required) or (y) if no such endorsement is available in the applicable jurisdiction, a title search of the Existing Mortgaged Property and such search shall show that such property is subject to no Liens other than Liens permitted by Section 7.3 and (C) a legal opinion of Andrews Kurth LLP, counsel to the Borrower and its Subsidiaries, substantially in the form of Exhibit F-1. 

 

(ii)     Closing Date Mortgages. With respect to each Mortgaged Property listed on Schedule 1.1(c)(ii), the Administrative Agent shall have received (A) a first priority Mortgage, in favor of the Administrative Agent, for the benefit of the Lenders, covering such real property in form and substance reasonably satisfactory to the Administrative Agent and substantially in the form of Exhibit D-1 and (B) a legal opinion of King, Krebs & Jurgens, PLLC, Louisiana counsel to the Borrower and its Subsidiaries, substantially in the form of Exhibit F-3. 

 

(iii)     With respect to any Mortgaged Property, if such real property is located in an area that has been identified by the Secretary of Housing and Urban Development as an area having special flood hazards, the Administrative Agent shall have received (A) a policy of flood insurance that covers such real property and is written in an amount not less than the outstanding principal amount of the indebtedness secured by the Mortgage on such real property that is reasonably allocable to such real property or the maximum limit of coverage made available with respect to such real property under applicable Flood Insurance Regulations, whichever is less and (B) confirmation that the Borrower has received the notice required pursuant to Section 208.25(i) of Regulation H of the Board, each of the foregoing in form and substance reasonably satisfactory to the Administrative Agent. 

 

(iv)     The Administrative Agent shall have received evidence satisfactory to it that all charges for mortgage recording tax, and all related expenses, if any, have been paid.

 

(l)     Insurance. The Administrative Agent shall have received insurance certificates satisfying the requirements of Section 5.2(b) of the Guarantee and Collateral Agreement.

 

(m)     Patriot Act. The Administrative Agent shall have received, at least five (5) Business Days prior to the Closing Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act; provided that the same shall have been provided to the Borrower at least seven (7) Business Days prior to said deadline for the Administrative Agent to have received the same.

  

 

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(n)     Other. The Administrative Agent shall have received such other information as it shall have reasonably requested at least three (3) Business Days prior to the Closing Date.

 

For the purpose of determining compliance with the conditions specified in this Section 5.1, each Lender that has signed this Agreement shall be deemed to have accepted, and to be satisfied with, each document or other matter required under this Section 5.1 unless the Administrative Agent shall have received written notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

 

The Administrative Agent shall notify the Borrower and the Lenders of the Closing Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 10.01) at or prior to 3:00 p.m., New York City time, on March 31, 2015 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

 

Section 5.2     Conditions to Each Extension of Credit. The agreement of each Lender to make any extension of credit requested to be made by it on any date (including its initial extension of credit) is subject to the satisfaction of the following conditions precedent:

 

(a)     Representations and Warranties. Each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents shall be true and correct in all material respects on and as of such date as if made on and as of such date (provided that if any representation or warranty is qualified in any respect by materiality, then such representation and warranty shall be true and correct in all respects).

 

(b)     No Default. No Default or Event of Default shall have occurred and be continuing on such date or after giving effect to the extensions of credit requested to be made on such date.

 

Each borrowing by and issuance of a Letter of Credit on behalf of the Borrower hereunder shall constitute a representation and warranty by the Borrower as of the date of such extension of credit that the conditions contained in this Section 5.2 have been satisfied.

 

Section 5.3     Conditions to Convertible Notes Revolver Borrowings. To the extent the Borrower requests a Convertible Notes Revolver Borrowing, the agreement of each Lender to make any such extension of credit requested to be made by it on any date (including its initial extension of credit) is subject to, at the time of and after giving effect to any such Convertible Notes Revolver Borrowing, on a pro forma basis, the satisfaction of the following conditions precedent: 

 

(a)     The Borrower’s Consolidated Leverage Ratio shall not exceed 2.5 to 1.0 as of the last day of the immediately preceding fiscal quarter for which financial statements are publicly available.

 

(b)     The Borrower shall have aggregate unused Available Commitments of all Lenders in an amount equal to not less than 40% of the Total Commitments of all Lenders.

 

(c)     The Administrative Agent shall have received an Interim Compliance Certificate executed by a Responsible Officer in substantially the form of Exhibit B-2 containing all information and calculations necessary for determining compliance with the provisions of Section 5.3(a) and (b). 

  

 

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Each Convertible Notes Revolver Borrowing by the Borrower hereunder shall constitute a representation and warranty by the Borrower as of the date of such extension of credit that the conditions contained in this Section 5.3 have been satisfied.

 

ARTICLE VI
AFFIRMATIVE COVENANTS

 

The Borrower hereby agrees that, so long as the Commitments remain in effect, any Letter of Credit remains outstanding or any Loan or other amount is owing to any Lender or the Administrative Agent hereunder, the Borrower shall and, as applicable, shall cause its Subsidiaries to:

 

Section 6.1     Financial Statements. The Borrower shall furnish to the Administrative Agent and each Lender:

 

(a)     as soon as available, but in any event within 60 days after the end of each fiscal year of the Borrower, a copy of (i) the audited consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such year and the related audited consolidated statements of income and of cash flows for such year, setting forth in each case in comparative form the figures for the previous year, reported on without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, by Deloitte & Touche LLP or other independent certified public accountants of nationally recognized standing and (ii) the unaudited consolidating balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such year and the related unaudited consolidating statements of income and of cash flows for such year, setting forth in each case in comparative form the figures for the previous year; and

 

(b)     as soon as available, but in any event not later than 45 days after the end of each of the first three quarterly periods of each fiscal year of the Borrower, the unaudited consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such quarter and the related unaudited consolidated statements of income and of cash flows for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in comparative form the figures for the previous year, certified by a Responsible Officer as being fairly stated in all material respects (subject to normal year end audit adjustments).

 

All such financial statements shall be complete and correct in all material respects and shall be prepared in reasonable detail and in accordance with GAAP applied (except as approved by such accountants or officer, as the case may be, and disclosed in reasonable detail therein) consistently throughout the periods reflected therein and with prior periods.

 

Documents required to be delivered pursuant to Sections 6.1(a) and (b) (to the extent such documents are filed with the SEC) may be delivered electronically and if so delivered, shall be considered delivered on the earliest of the date: (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet at www.newpark.com; (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or sponsored by the Administrative Agent); or (iii) electronically filed with the SEC. The Administrative Agent shall have no obligation to maintain copies of the documents referred to in Sections 6.1(a) and (b), and in any event the Administrative Agent shall have no obligation to request the delivery of the documents referred to in Section 6.1(a) or (b).

 

Section 6.2     Certificates; Other Information. The Borrower shall furnish to the Administrative Agent and each Lender:

  

 

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(a)     concurrently with the delivery of any financial statements pursuant to Section 6.1, (i) a certificate of a Responsible Officer stating that, to the best of each such Responsible Officer’s knowledge, each Loan Party during such period has observed or performed all of its covenants and other agreements and satisfied every condition contained in this Agreement and the other Loan Documents to which it is a party to be observed, performed or satisfied by it, and that such Responsible Officer has obtained no knowledge of any Default or Event of Default except as specified in such certificate and (ii) in the case of quarterly or annual financial statements, (x) a Compliance Certificate containing all information and calculations necessary for determining compliance with the provisions of this Agreement referred to therein as of the last day of the fiscal quarter or fiscal year of the Borrower, as the case may be, and (y) to the extent not previously disclosed to the Administrative Agent, (1) a description of any change in the jurisdiction of organization of any Loan Party, (2) a list of any material Intellectual Property acquired by any Loan Party which has been registered with the U.S. Patent and Trademark Office or the U.S. Copyright Office as of the date of such certificate, (3) a description of any Person that has become a Group Member, in each case since the date of the most recent report delivered pursuant to this clause (y) (or, in the case of the first such report so delivered, since the Closing Date) and (4) a list of Material Real Property owned by any Group Member and the net book value thereof (including improvements thereon) as of the date of such certificate; 

 

(b)     Three (3) Business Days prior to the Borrower or any of its Subsidiaries making any Restricted Payment in accordance with Section 7.6, an Interim Compliance Certificate executed by a Responsible Officer in substantially the form of Exhibit B-2 containing all information and calculations necessary for determining compliance with the provisions of Section 7.6.

 

(c)     promptly following receipt thereof, copies of any documents described in Sections 101(k) or 101(1) of ERISA that any Group Member or any Commonly Controlled Entity may request with respect to any Multiemployer Plan or any documents described in Section 101(f) of ERISA that any Group Member or any Commonly Controlled Entity may request with respect to any Pension Plan; provided, that if the relevant Group Members or Commonly Controlled Entities have not requested such documents or notices from the administrator or sponsor of the applicable Multiemployer Plans, then, upon reasonable request of the Administrative Agent, such Group Member or Commonly Controlled Entity shall promptly make a request for such documents or notices from such administrator or sponsor and the Borrower shall provide copies of such documents and notices to the Administrative Agent promptly after receipt thereof; 

 

(d)     concurrently with the delivery of any financial statements pursuant to Section 6.1(a), a copy of the Borrower’s most recently approved annual budget; and

 

(e)     promptly, such additional financial and other information as any Lender may from time to time reasonably request.

 

Section 6.3     Payment of Obligations. The Borrower shall, and shall cause each of its Subsidiaries to, pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its material obligations of whatever nature, except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided on the books of the relevant Group Member.

 

Section 6.4     Maintenance of Existence; Compliance. The Borrower shall, and shall cause each of its Subsidiaries to: (a)(i) pay, preserve, renew and keep in full force and effect its organizational existence and (ii) take all reasonable action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of its business, except, (A) in each case, as otherwise permitted by Section 7.4 and (B) in the case of clause (ii) above, to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (b) comply with all Contractual Obligations and Requirements of Law, except to the extent that failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect. The Borrower shall maintain in effect and enforce policies and procedures reasonably intended to procure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

  

 

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Section 6.5     Maintenance of Property; Insurance. The Borrower shall, and shall cause each of its Subsidiaries to, (a) keep all property useful and necessary in its business in good working order and condition, ordinary wear and tear excepted and (b) maintain with financially sound and reputable insurance companies insurance on all such property in at least such amounts and against at least such risks (but including in any event, public liability, product liability and business interruption insurance) as are usually insured against in the same general area by companies engaged in the same or a similar business.

 

Section 6.6     Inspection of Property; Books and Records; Discussions. The Borrower shall, and shall cause each of its Subsidiaries to, (a) keep proper books of records and account in which full, true and correct entries in conformity with GAAP and all Requirements of Law shall be made of all dealings and transactions in relation to its business and activities and (b) permit representatives of the Administrative Agent or any Lender to visit and inspect any of its properties and examine and make abstracts from any of its books and records at any reasonable time and as often as may reasonably be desired and to discuss the business, operations, properties and financial and other condition of the Group Members with officers and employees of the Group Members and with their independent certified public accountants.

 

Section 6.7     Notices. The Borrower shall promptly give notice to the Administrative Agent and each Lender of:

 

(a)     the occurrence of any Default or Event of Default;

 

(b)     any (i) default or event of default under any Contractual Obligation of any Group Member or (ii) litigation, investigation or proceeding that may exist at any time between any Group Member and any Governmental Authority, that in either case, if not cured or if adversely determined, as the case may be, could reasonably be expected to have a Material Adverse Effect;

 

(c)     any litigation or proceeding affecting any Group Member (i) that, if adversely determined, could reasonably be expected to have a Material Adverse Effect or (ii) which relates to any Loan Document;

 

(d)     the occurrence of any ERISA Event, as soon as possible and in any event within ten days after the Borrower knows or has actual reason to know thereof; and

 

(e)     any development or event that has had or could reasonably be expected to have a Material Adverse Effect.

 

Each notice pursuant to this Section 6.7 shall be accompanied by a statement of a Responsible Officer setting forth details of the occurrence referred to therein and stating what action the relevant Group Member proposes to take with respect thereto.

 

Section 6.8     Environmental Laws. The Borrower shall, and shall cause each of its Subsidiaries to, (a) comply in all material respects with, and ensure compliance in all material respects by all tenants and subtenants, if any, with, all applicable Environmental Laws, and obtain and comply in all material respects with and maintain, and ensure that all tenants and subtenants obtain and comply in all material respects with and maintain, any and all licenses, approvals, notifications, registrations or permits required by applicable Environmental Laws.

  

 

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(b)     Conduct and complete all investigations, studies, sampling and testing, and all remedial, removal and other actions required under applicable Environmental Laws and promptly comply in all material respects with all lawful orders and directives of all Governmental Authorities regarding applicable Environmental Laws.

 

Section 6.9     Additional Collateral, etc. (a) With respect to any property acquired after the Closing Date by the Borrower or any Subsidiary Guarantor (other than (1) any property described in paragraph (b), (c) or (d) below and (2) any property subject to a Lien expressly permitted by Section 7.3) as to which the Administrative Agent, for the benefit of the Lenders, does not have a perfected Lien, the Borrower shall, and shall cause such Subsidiary Guarantor to, promptly (i) execute and deliver to the Administrative Agent such amendments to the Guarantee and Collateral Agreement or such other documents as the Administrative Agent deems necessary or advisable to grant to the Administrative Agent, for the benefit of the Lenders, a Lien in such property and (ii) take all actions necessary or advisable to grant to the Administrative Agent, for the benefit of the Lenders, a perfected first priority Lien in such property, including the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by the Guarantee and Collateral Agreement or by law or as may be reasonably requested by the Administrative Agent.

 

(b)     With respect to any Material Real Property acquired after the Closing Date by any Group Member (or any real property of any Group Member that becomes Material Real Property) other than an Excluded Foreign Subsidiary (other than any such real property subject to a Lien expressly permitted by Section 7.3), such Group Member shall promptly (i) execute and deliver a first priority Mortgage, in favor of the Administrative Agent, for the benefit of the Lenders, covering such real property, (ii) if requested by the Administrative Agent, provide the Lenders with (x) title and extended coverage insurance covering such real property in an amount at least equal to the purchase price of such real property (or such lesser amount as shall be reasonably specified by the Administrative Agent) as well as a current ALTA survey thereof (or an existing survey, together with any affidavits required by the title insurance company, as shall be sufficient to enable such title insurance company to remove any standard survey exceptions from the title insurance policy), (y) any consents or estoppels reasonably deemed necessary or advisable by the Administrative Agent in connection with such Mortgage and (z) if such real property is located in an area that has been identified by the Secretary of Housing and Urban Development as an area having special flood hazards, (A) a policy of flood insurance that covers such real property and is written in an amount not less than the outstanding principal amount of the indebtedness secured by the Mortgage on such real property that is reasonably allocable to such real property or the maximum limit of coverage made available with respect to such real property under applicable Flood Insurance Regulations, whichever is less and (B) confirmation that the Borrower has received the notice required pursuant to Section 208.25(i) of Regulation H of the Board, each of the foregoing in form and substance reasonably satisfactory to the Administrative Agent and (iii) if requested by the Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative Agent.

 

(c)     With respect to any new Material Domestic Subsidiary created or acquired after the Closing Date by any Group Member (or any Domestic Subsidiary that becomes a Material Domestic Subsidiary), such Group Member shall promptly (A) execute and deliver to the Administrative Agent such amendments to the Guarantee and Collateral Agreement as the Administrative Agent deems necessary or advisable to grant to the Administrative Agent, for the benefit of the Lenders, a perfected first priority Lien in the Capital Stock issued by such new Material Domestic Subsidiary and owned by any Group Member, (B) deliver to the Administrative Agent the certificates representing such Capital Stock, together with undated stock powers, in blank, executed and delivered by a duly authorized officer of such Group Member, (C) cause such new Material Domestic Subsidiary (1) to become a party to the Guarantee and Collateral Agreement, (2) to take such actions necessary or advisable to grant to the Administrative Agent for the benefit of the Lenders a perfected first priority Lien in the Collateral described in the Guarantee and Collateral Agreement and owned by such new Material Domestic Subsidiary, including the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by the Guarantee and Collateral Agreement or by law or as may be requested by the Administrative Agent and (3) to deliver to the Administrative Agent a certificate of such new Material Domestic Subsidiary, substantially in the form of Exhibit C-2, with appropriate insertions and attachments and (D) deliver to the Administrative Agent such legal opinions as the Administrative Agent may reasonably request relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative Agent.

  

 

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(d)     With respect to any new Excluded Foreign Subsidiary created or acquired after the Closing Date by any Group Member (other than by any Group Member that is an Excluded Foreign Subsidiary) which satisfies the assets or revenue requirements set forth in the definition of “Material Domestic Subsidiary” (subject to the provisos therein set forth), such Group Member shall promptly (i) execute and deliver documentation as the Administrative Agent deems necessary or advisable to grant to the Administrative Agent, for the benefit of the Lenders, a perfected first priority Lien in the Capital Stock issued by such new Excluded Foreign Subsidiary and owned by any such Group Member (provided that in no event shall more than 66% of the total outstanding voting Capital Stock issued by any such new Excluded Foreign Subsidiary be required to be so pledged), (ii) deliver to the Administrative Agent the certificates representing such Capital Stock, together with undated stock powers, in blank, executed and delivered by a duly authorized officer of such Group Member, and take such other action as may be necessary or, in the opinion of the Administrative Agent, desirable to perfect the Administrative Agent’s Lien therein and (iii) deliver to the Administrative Agent legal opinions relating to the matters described above as the Administrative Agent may reasonably request, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative Agent.

 

Section 6.10     Convertible Senior Notes. On the Springing Maturity Date, the Borrower shall (a) repurchase, redeem or convert the Convertible Notes, and/or refinance the Convertible Notes to have a maturity date of at least ninety-one (91) days after the Scheduled Maturity Date, or (b) have made the Requisite Escrow Deposit.

 

Section 6.11     Post-Closing Matters. Cause to be delivered or performed the documents and other agreements and actions set forth on Schedule 6.11 within the time frames specified on such Schedule 6.11.

 

ARTICLE VII
NEGATIVE COVENANTS

 

The Borrower hereby agrees that, so long as the Commitments remain in effect, any Letter of Credit remains outstanding or any Loan or other amount is owing to any Lender or the Administrative Agent hereunder, the Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly:

 

Section 7.1     Financial Condition Covenants.

  

 

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(a)     Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as at the last day of any period of four consecutive fiscal quarters of the Borrower to exceed 4.0 to 1.0.

 

(b)     Senior Secured Leverage Ratio. Permit the Senior Secured Leverage Ratio as of the last day of any period of four consecutive fiscal quarter of the Borrower to exceed 3.0 to 1.0.

 

(c)     Interest Coverage Ratio. Permit the Interest Coverage Ratio as of the last day of any period of four consecutive fiscal quarter of the Borrower to be less than 2.5 to 1.0.

 

Section 7.2     Indebtedness. Create, issue, incur, assume, become liable in respect of or suffer to exist any Indebtedness, except:

 

(a)     Indebtedness of any Loan Party pursuant to any Loan Document (including after any increase of the Commitments pursuant to Section 2.1(c));

 

(b)     Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary;

 

(c)     Guarantee Obligations incurred in the ordinary course of business by the Borrower or any of its Subsidiaries of obligations of any Subsidiary to the extent such obligations are permitted to be incurred hereunder;

 

(d)     Indebtedness outstanding on the date hereof and listed on Schedule 7.2(d) and any refinancings, refundings, renewals or extensions thereof (without increasing, or shortening the maturity of, the principal amount thereof);

 

(e)     Indebtedness (including, without limitation, Capital Lease Obligations) secured by Liens permitted by Section 7.3(g) in an aggregate principal amount not to exceed $10,000,000 at any one time outstanding;

 

(f)     Indebtedness of any Foreign Subsidiary (i) to any Loan Party, provided that the loan or advance is permitted by Section 7.7 or (ii) to any other Foreign Subsidiary;

 

(g)     unsecured Indebtedness of the Borrower or any of its Subsidiaries in an aggregate principal amount (for the Borrower and all Subsidiaries) not to exceed $300,000,000 at any one time outstanding; provided that (i) after giving effect to such Indebtedness, on a pro forma basis, the Borrower is in compliance with Section 7.1 as of the last day of the immediately preceding fiscal quarter for which financial statements have been delivered pursuant to Section 6.1 and (ii) such Indebtedness has a final maturity date that is at least 91 days after the Maturity Date;

 

(h)     Indebtedness of any Foreign Subsidiary to any Person other than the Borrower or any Subsidiary in an aggregate principal amount not to exceed $10,000,000 at any time outstanding; provided that such Indebtedness is not guaranteed by the Borrower or any other Loan Party; 

 

(i)     additional Indebtedness, including Attributable Debt, of the Borrower or any of its Subsidiaries in an aggregate principal amount (for the Borrower and all Subsidiaries) not to exceed $40,000,000 at any one time outstanding; and

 

(j)     Indebtedness in respect of Specified Swap Agreements, subject to the limitations set forth in Section 7.10, and Specified Cash Management Services Agreements.

  

 

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Section 7.3     Liens. Create, incur, assume or suffer to exist any Lien upon any of its property (other than treasury stock of the Borrower to the extent Regulation U would be violated by restrictions under this Section 7.3), whether now owned or hereafter acquired, except:

 

(a)     Liens for taxes not yet due or that are being contested in good faith by appropriate proceedings, provided that adequate reserves with respect thereto are maintained on the books of the Borrower or its Subsidiaries, as the case may be, in conformity with GAAP;

 

(b)     carriers’, landlord’s, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business that are not overdue for a period of more than 30 days or that are being contested in good faith by appropriate proceedings;

 

(c)     pledges or deposits in connection with workers’ compensation, unemployment insurance and other social security legislation and inchoate Liens in connection with workers’ compensation, unemployment insurance or other social security, old age pension or public liability obligations which are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP;

 

(d)     deposits to secure the performance of bids, trade contracts (other than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business;

 

(e)     easements, rights-of-way, restrictions and other similar encumbrances incurred in the ordinary course of business that, in the aggregate, are not substantial in amount and that do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the Borrower or any of its Subsidiaries;

 

(f)     Liens in existence on the date hereof listed on Schedule 7.3(f), securing Indebtedness permitted by Section 7.2(d), provided that no such Lien is spread to cover any additional property after the Closing Date and that the amount of Indebtedness secured thereby is not increased;

 

(g)     Liens securing Indebtedness of the Borrower or any other Subsidiary in an aggregate principal amount not to exceed the amount permitted under Section 7.2(e) to finance the acquisition of fixed or capital assets, provided that (i) such Liens shall be created substantially simultaneously with the acquisition of such fixed or capital assets, (ii) such Liens do not at any time encumber any property other than the property financed by such Indebtedness and (iii) the amount of Indebtedness secured thereby is not increased;

 

(h)     Liens created pursuant to the Loan Documents;

 

(i)     any interest or title of a lessor under any lease entered into by the Borrower or any other Subsidiary in the ordinary course of its business and covering only the assets so leased;

 

(j)     Lien securing Indebtedness permitted by Section 7.2(h); provided that such Liens only attach to the property of Foreign Subsidiaries or the Capital Stock of the Foreign Subsidiary incurring such Indebtedness; 

 

(k)     Liens on cash collateral in respect of letters of credit issued for the account of the Borrower or any of its Subsidiaries and/or reimbursement obligations in respect thereof in an aggregate principal amount not to exceed $30,000,000, subject, however to the proviso set forth in Section 2.6; 

  

 

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(l)     Liens arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or similar rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution, provided that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board; 

 

(m)     judgment and attachment Liens not giving rise to an Event of Default, provided that any appropriate legal proceedings which may have been duly initiated for the appeal or other review of such judgment shall not have been finally terminated or the period within which such proceeding may be initiated shall not have expired and no action to enforce such Lien has been commenced; 

 

(n)     Liens securing Specified Swap Agreements, subject to the restrictions of Section 7.10, and Specified Cash Management Services Agreements; 

 

(o)     Liens not otherwise permitted by this Section so long as neither (i) the aggregate outstanding principal amount of the obligations secured thereby nor (ii) the aggregate fair market value (determined as of the date such Lien is incurred) of the assets subject thereto exceeds (as to the Borrower and all Subsidiaries) $40,000,000 at any one time; and

 

(p)     Liens on any assets of any direct or indirect Foreign Subsidiary not otherwise permitted by this Section so long as neither (i) the aggregate outstanding principal amount of the obligations secured thereby nor (ii) the aggregate fair market value (determined as of the date such Lien is incurred) of the assets subject thereto exceeds (as to all Foreign Subsidiaries) $20,000,000 at any one time outstanding.

 

Section 7.4     Fundamental Changes. Enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of all or substantially all of its property or business, except that:

 

(a)     any Subsidiary of the Borrower may be merged or consolidated with or into the Borrower (provided that the Borrower shall be the continuing or surviving corporation) or with or into any Subsidiary Guarantor (provided that the Subsidiary Guarantor shall be the continuing or surviving corporation); 

 

(b)     any Subsidiary of the Borrower may Dispose of any or all of its assets (i) to the Borrower or any Subsidiary Guarantor (upon voluntary liquidation or otherwise) or (ii) pursuant to a Disposition permitted by Section 7.5;

 

(c)     any Investment expressly permitted by Section 7.7 may be structured as a merger, consolidation or amalgamation; and

 

(d)     any Subsidiary may liquidate (i) if the Board of Directors of the Borrower determines in good faith that such liquidation is in the best interest of the Borrower and is not materially disadvantageous to the Lenders and if any material assets of such Subsidiary are transferred to a Loan Party or (ii) if such Subsidiary’s material assets have been Disposed of prior to Closing Date or are Disposed of in a Disposition permitted hereunder.

 

Section 7.5     Disposition of Property. Dispose of any of its property whether now owned or hereafter acquired (other than treasury stock of the Borrower (i) issued pursuant to any employee or director benefit plan approved by the shareholders of the Borrower or (ii) to the extent Regulation U would be violated by restrictions under this Section 7.5) or, in the case of any Subsidiary, issue or sell any shares of such Subsidiary’s Capital Stock to any Person, except:

  

 

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(a)     the Disposition of obsolete or worn out property or equipment no longer used or useful in the business of the Group Members, in each case in the ordinary course of business;

 

(b)     the sale of inventory (including wooden and composite mats removed from the Borrower’s or its Subsidiaries’ rental fleet and sold as used mats) in the ordinary course of business;

 

(c)     Dispositions permitted by clause (i) of Section 7.4(b) and Dispositions of Cash Equivalents for cash or other Cash Equivalents;

 

(d)     the sale or issuance of any Subsidiary’s Capital Stock to the Borrower or any Subsidiary Guarantor; and

 

(e)     the Disposition of other property (including, but not limited to, the Capital Stock issued by any Subsidiary) having a book value in the aggregate not to exceed 5% of Consolidated Tangible Net Assets per fiscal year and 15% of Consolidated Tangible Net Assets during the term of this Agreement beginning with the Closing Date and ending on the Termination Date.

 

Section 7.6     Restricted Payments. Declare or pay any dividend (other than dividends payable solely in common stock of the Person making such dividend) on, or make any payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase, repurchase, redemption, defeasance, retirement, conversion, refinancing or other acquisition of, any Capital Stock issued by the Borrower, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of any Group Member (any of the foregoing, a “Restricted Payment”), except that the Borrower may declare, pay, make or otherwise effect or undertake any one or more Restricted Payments provided that at the time of and after giving effect to such Restricted Payment, on a pro forma basis, (i) the Borrower’s Consolidated Leverage Ratio does not exceed 2.5 to 1.0 as of the last day of the immediately preceding fiscal quarter for which financial statements are publicly available, (ii) no Default or Event of Default has occurred and is continuing or would result from such Restricted Payment, and (iii) the Borrower shall have aggregate unused Available Commitments of all Lenders not less than 40% of the Total Commitments of all Lenders.

 

Section 7.7     Investments. Make any advance, loan, extension of credit (by way of guaranty or otherwise) or capital contribution to, or purchase any Capital Stock, bonds, notes, debentures or other debt securities of, or any assets constituting a business unit of, or make any other investment in, any Person (all of the foregoing, “Investments”), except:

 

(a)     extensions of trade credit in the ordinary course of business;

 

(b)     investments in Cash Equivalents and other Investments existing on the Closing Date;

 

(c)     Guarantee Obligations permitted by Section 7.2;

 

(d)     loans and advances to employees of any Group Member in the ordinary course of business (including for travel, entertainment and relocation expenses) in an aggregate amount for all Group Members not to exceed $2,500,000 at any one time outstanding;

  

 

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(e)     Investments in assets useful in the business of the Borrower and its Subsidiaries made by the Borrower or any of its Subsidiaries with the proceeds of any Disposition permitted by Section 7.5; 

 

(f)     intercompany Investments by any Group Member in the Borrower or any Person that, prior to such investment, is a Wholly Owned Subsidiary Guarantor; 

 

(g)     Permitted Acquisitions and the formation of Subsidiaries of the Borrower in connection with Permitted Acquisitions; and

 

(h)     in addition to Investments otherwise expressly permitted by this Section, any Investment made after the Closing Date by the Borrower or any of its Subsidiaries which is a Foreign Permitted Acquisition or an Investment in a Person who is not a Subsidiary (after giving effect to such Investment); provided that (i) the aggregate amount of all Foreign Permitted Acquisitions and Investments in non-Subsidiaries does not exceed 15% of Consolidated Tangible Net Assets (calculated as of the date such Investment is made based on the most recently delivered financial statements) and (ii) with respect to Investments in non-Subsidiaries, (A) no Event of Default or Default shall exist before or after such Investment and (B) after giving effect to the Investment, on a pro forma basis, the Borrower is in compliance with Section 7.1 as of the last day of the fiscal quarter immediately preceding such Investment for which financial statements are publicly available. 

 

Section 7.8     Transactions with Affiliates. Enter into any transaction, including any purchase, sale, lease or exchange of property, the rendering of any service or the payment of any management, advisory or similar fees, with any Affiliate (other than the Borrower or any Subsidiary Guarantor) unless such transaction is (a) in the ordinary course of business of the relevant Group Member and (b) upon fair and reasonable terms no less favorable to the relevant Group Member than it would obtain in a comparable arm’s length transaction with a Person that is not an Affiliate; provided, however, that the foregoing limitations shall not apply to transactions between or among Subsidiary Guarantors nor transactions between the Borrower and any Subsidiary Guarantor.

 

Section 7.9     Sales and Leasebacks. Enter into any arrangement with any Person providing for the leasing by any Group Member of real or personal property that has been or is to be sold or transferred by such Group Member to such Person or to any other Person to whom funds have been or are to be advanced by such Person on the security of such property or rental obligations of such Group Member except with respect to personal property Disposed of in a Disposition permitted by Section 7.5. 

 

Section 7.10     Swap Agreements. Enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which the Borrower or any Subsidiary has actual exposure (other than those in respect of Capital Stock) and (b) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from floating rates to fixed rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of the Borrower or any Subsidiary.

 

Section 7.11     Changes in Fiscal Periods. Permit the fiscal year of the Borrower to end on a day other than December 31 or change the Borrower’s method of determining fiscal quarters.

 

Section 7.12     Negative Pledge Clauses. Enter into or suffer to exist or become effective any agreement that prohibits or limits the ability of any Group Member to create, incur, assume or suffer to exist any Lien upon any of its property or revenues, whether now owned or hereafter acquired, to secure its obligations under the Loan Documents to which it is a party other than (a) this Agreement and the other Loan Documents and (b) any agreements governing any purchase money Liens or Capital Lease Obligations otherwise permitted hereby (in which case, any prohibition or limitation shall only be effective against the assets financed thereby).

  

 

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Section 7.13     Clauses Restricting Subsidiary Distributions. Enter into or suffer to exist or become effective any consensual encumbrance or restriction on the ability of any Subsidiary of the Borrower to (a) make Restricted Payments in respect of any Capital Stock issued by such Subsidiary held by, or pay any Indebtedness owed to, the Borrower or any other Subsidiary of the Borrower, (b) make loans or advances to, or other Investments in, the Borrower or any other Subsidiary of the Borrower or (c) transfer any of its assets to the Borrower or any other Subsidiary of the Borrower, except for such encumbrances or restrictions existing under or by reason of (i) any restrictions existing under the Loan Documents, and (ii) any restrictions with respect to a Subsidiary imposed pursuant to an agreement that has been entered into in connection with the Disposition of all or substantially all of the Capital Stock or assets of such Subsidiary.

 

Section 7.14     Lines of Business. Enter into any business, either directly or through any Subsidiary, except for those businesses in which the Borrower and its Subsidiaries are engaged on the date of this Agreement or that are reasonably related thereto.

 

Section 7.15     Redemption of Senior Notes; Amendment of Indenture. The Borrower will not, and will not permit any Subsidiary to, prior to the date that is ninety-one (91) days after the Maturity Date: (i) call, make or offer to make any optional or voluntary Redemption of or otherwise optionally or voluntarily Redeem (whether in whole or in part) the Senior Notes or any Permitted Refinancing Debt in respect thereof; provided that the Borrower may exchange Senior Notes for Capital Stock (other than Disqualified Capital Stock) of the Borrower and/or repay the Senior Notes with (A) the proceeds of any Permitted Refinancing Debt, (B) the net cash proceeds of any sale of Capital Stock (other than Disqualified Capital Stock) of the Borrower or (C) other cash on hand to the extent the Borrower could make a Restricted Payment under Section 7.6, or (ii) amend, modify, waive or otherwise change, consent or agree to any amendment, modification, waiver or other change to, any of the terms of the Senior Notes, any Permitted Refinancing Debt or the Indenture if (A) the effect thereof would be to shorten the maturity or average life or increase the amount of any payment of principal thereof or increase the rate or shorten any period for payment of interest thereon or (B) such action requires the payment of a material consent fee (howsoever described), provided that the foregoing shall not prohibit the execution of supplemental indentures associated with the incurrence of additional notes to the extent permitted by Section 7.2(g), the execution of other indentures or agreements in connection with the issuance of Permitted Refinancing Debt or the execution of supplemental indentures to add guarantors if required by the terms of any Indenture provided such Person is a Subsidiary Guarantor. 

 

Section 7.16     Use of Proceeds. The Borrower will not request any Loan or Letter of Credit, and the Borrower shall not use, and shall take all reasonable steps to procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Loan or Letter of Credit, at the time of such funding (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country to the extent such activities, business or transaction would be prohibited by Sanctions if conducted by a corporation incorporated in the United States, or (c) in any manner that would result in the violation of any Sanctions applicable to any party hereto. The Borrower will not request greater than $100,000,000 Convertible Notes Revolver Borrowings in the aggregate. 

  

 

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ARTICLE VIII
EVENTS OF DEFAULT; REMEDIES

 

Section 8.1     Events of Default. One or more of the following events shall constitute an “Event of Default”.

 

(a)     the Borrower shall fail to pay any principal of any Loan or Reimbursement Obligation when due and payable in accordance with the terms hereof; or the Borrower shall fail to pay any interest on any Loan or Reimbursement Obligation, or any other amount payable hereunder or under any other Loan Document, within five days after any such interest or other amount becomes due and payable in accordance with the terms hereof; or

 

(b)     any representation or warranty made or deemed made by any Loan Party herein or in any other Loan Document or that is contained in any certificate, document or financial or other statement furnished by it at any time under or in connection with this Agreement or any such other Loan Document shall prove to have been inaccurate in any material respect on or as of the date made or deemed made; or

 

(c)     any Loan Party shall default in the observance or performance of any agreement contained in clause (i) or (ii) of Section 6.4(a) (with respect to the Borrower only), Section 6.7(a), Section 6.10 or Article VII of this Agreement or Sections 5.5 and 5.7(b) of the Guarantee and Collateral Agreement; or

 

(d)     any Loan Party shall default in the observance or performance of any other agreement contained in this Agreement or any other Loan Document (other than as provided in paragraphs (a) through (c) of this Section), and such default shall continue unremedied for a period of 30 days after notice to the Borrower from the Administrative Agent or the Majority Lenders; or

 

(e)     any Group Member shall (i) default in making any payment of any principal of any Indebtedness (including any Guarantee Obligation, but excluding the Loans) on the scheduled or original due date with respect thereto; or (ii) default in making any payment of any interest on any such Indebtedness beyond the period of grace, if any, provided in the instrument or agreement under which such Indebtedness was created; or (iii) default in the observance or performance of any other agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition is to cause, or to permit the holder or beneficiary of such Indebtedness (or a trustee or agent on behalf of such holder or beneficiary) to cause, with the giving of notice if required, such Indebtedness to become due prior to its stated maturity or (in the case of any such Indebtedness constituting a Guarantee Obligation) to become payable; provided, that a default, event or condition described in clause (i), (ii) or (iii) of this paragraph (e) shall not at any time constitute an Event of Default unless, at such time, one or more defaults, events or conditions of the type described in clauses (i), (ii) and (iii) of this paragraph (e) shall have occurred and be continuing with respect to Indebtedness the outstanding principal amount of which exceeds in the aggregate $25,000,000 and any applicable grace periods, if any, shall have expired; or

 

(f)     (i) any Group Member shall commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or any Group Member shall make a general assignment for the benefit of its creditors; or (ii) there shall be commenced against any Group Member any case, proceeding or other action of a nature referred to in clause (i) above that (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed or undischarged for a period of 60 days; or (iii) there shall be commenced against any Group Member any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets that results in the entry of an order for any such relief that shall not have been vacated, discharged, or stayed or bonded pending appeal within 60 days from the entry thereof; or (iv) any Group Member shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) any Group Member shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become due; or

  

 

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(g)     (i) an ERISA Event shall have occurred, (ii) a trustee shall be appointed by a United States district court to administer any Pension Plan, (iii) the PBGC shall institute proceedings to terminate any Pension Plan(s), or (iv) any Group Member or any Commonly Controlled Entity shall have been notified by the sponsor of a Multiemployer Plan that it has incurred or will be assessed Withdrawal Liability to such Multiemployer Plan and such entity does not have reasonable grounds for contesting such Withdrawal Liability or is not contesting such Withdrawal Liability in a timely and appropriate manner; and in each case in clauses (i) through (iv) above, such event or condition, when taken together with all other such events or conditions, if any, could, in the judgment of the Majority Lenders, reasonably be expected to result in a Material Adverse Effect; or

 

(h)     one or more judgments or decrees shall be entered against any Group Member involving in the aggregate a liability (not paid or fully covered by insurance as to which the relevant insurance company has acknowledged coverage) of $25,000,000 or more, and all such judgments or decrees shall not have been vacated, discharged, stayed or bonded pending appeal within 30 days from the entry thereof; or

 

(i)     any of the Loan Documents shall cease, for any reason, to be in full force and effect, or any Loan Party shall so assert, or any Lien on a material portion of the Collateral created by any of the Security Documents shall cease to be enforceable and of the same effect and priority purported to be created thereby; or

 

(j)     the guarantee contained in Article II of the Guarantee and Collateral Agreement shall cease, for any reason, to be in full force and effect or any Loan Party shall so assert; or

 

(k)     any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d) 5 under the Exchange Act), directly or indirectly, of more than 30% of the outstanding common stock of the Borrower; but it is agreed and acknowledged that neither an “ownership change” for purposes of Section 382 of the Code nor the Borrower’s disclosure of same in its filings with the SEC or otherwise shall constitute a Default or an Event of Default (unless a Default or Event of Default under this Section 8(k) shall have otherwise occurred). 

 

Section 8.2     Remedies. In the case of an Event of Default, then, and in any such event, (A) if such event is an Event of Default specified in Section 8.1(f)(i) or Section 8.1(f)(ii) with respect to the Borrower, automatically the Commitments shall immediately terminate and the Loans (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents (including all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) shall immediately become due and payable, and (B) if such event is any other Event of Default, either or both of the following actions may be taken: (i) with the consent of the Majority Lenders, the Administrative Agent may, or upon the request of the Majority Lenders, the Administrative Agent shall, by notice to the Borrower declare the Commitments to be terminated forthwith, whereupon the Commitments shall immediately terminate; and (ii) with the consent of the Majority Lenders, the Administrative Agent may, or upon the request of the Majority Lenders, the Administrative Agent shall, by notice to the Borrower, declare the Loans (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents (including all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) to be due and payable forthwith, whereupon the same shall immediately become due and payable. With respect to all Letters of Credit with respect to which presentment for honor shall not have occurred at the time of an acceleration pursuant to this paragraph, the Borrower shall at such time deposit in a cash collateral account opened by the Administrative Agent an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit. Amounts held in such cash collateral account shall be applied by the Administrative Agent to the payment of drafts drawn under such Letters of Credit, and the unused portion thereof after all such Letters of Credit shall have expired or been fully drawn upon, if any, shall be applied to repay other obligations of the Borrower hereunder and under the other Loan Documents. After all such Letters of Credit shall have expired or been fully drawn upon, all Reimbursement Obligations shall have been satisfied and all other obligations of the Borrower hereunder and under the other Loan Documents shall have been paid in full, the balance, if any, in such cash collateral account shall be returned to the Borrower (or such other Person as may be lawfully entitled thereto). Except as expressly provided above in this Section, presentment, demand, protest and all other notices of any kind are hereby expressly waived by the Borrower.

  

 

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ARTICLE IX
THE AGENTS

 

Section 9.1     Appointment. Each Lender hereby irrevocably designates and appoints the Administrative Agent as the agent of such Lender under this Agreement and the other Loan Documents, and each such Lender irrevocably authorizes the Administrative Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement and the other Loan Documents and to exercise such powers and perform such duties as are expressly delegated to the Administrative Agent by the terms of this Agreement and the other Loan Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Administrative Agent.

 

Section 9.2     Delegation of Duties. The Administrative Agent may execute any of its duties under this Agreement and the other Loan Documents by or through agents or attorneys in fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any agents or attorneys-in fact selected by it with reasonable care.

 

Section 9.3     Exculpatory Provisions. Neither any Agent nor Lender nor any of their respective officers, directors, employees, agents, advisors, attorneys in fact or affiliates shall be (i) liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from its or such Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Agents under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party a party thereto to perform its obligations hereunder or thereunder. The Agents shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan Party.

  

 

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Section 9.4     Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any instrument, writing, resolution, notice, consent, certificate, affidavit, letter, telecopy or email message, statement, order or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including counsel to the Borrower), independent accountants and other experts selected by the Administrative Agent. The Administrative Agent may deem and treat the payee of any Note as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with the Administrative Agent. The Administrative Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Majority Lenders (or, if so specified by this Agreement, all Lenders) as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Majority Lenders (or, if so specified by this Agreement, all Lenders), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the Revolving Loans.

 

Section 9.5     Notice of Default. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless the Administrative Agent has received notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”. In the event that the Administrative Agent receives such a notice, the Administrative Agent shall give notice thereof to the Lenders. The Administrative Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Majority Lenders (or, if so specified by this Agreement, all Lenders); provided that unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of the Lenders.

 

Section 9.6     Non-Reliance on Agents and Other Lenders. Each Lender expressly acknowledges that neither the Agents nor any of their respective officers, directors, employees, agents, advisors, attorneys in fact or affiliates have made any representations or warranties to it and that no act by any Agent hereafter taken, including any review of the affairs of a Loan Party or any affiliate of a Loan Party, shall be deemed to constitute any representation or warranty by any Agent to any Lender. Each Lender represents to the Agents that it has, independently and without reliance upon any Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates and made its own decision to make its Loans hereunder and enter into this Agreement. Each Lender also represents that it will, independently and without reliance upon any Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates. Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of any Loan Party or any affiliate of a Loan Party that may come into the possession of the Administrative Agent or any of its officers, directors, employees, agents, advisors, attorneys in fact or affiliates.

  

 

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Section 9.7     Indemnification. The Lenders agree to indemnify each Agent and its officers, directors, employees, affiliates, agents, advisors and controlling persons (each, an “Agent Indemnitee”) (to the extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do so), ratably according to their respective Applicable Percentages in effect on the date on which indemnification is sought under this Section (or, if indemnification is sought after the date upon which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with such Applicable Percentages immediately prior to such date), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against such Agent Indemnitee in any way relating to or arising out of, the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent Indemnitee under or in connection with any of the foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from such Agent Indemnitee’s gross negligence or willful misconduct. The agreements in this Section shall survive the payment of the Loans and all other amounts payable hereunder.

 

Section 9.8     Agent in Its Individual Capacity. Each Agent and its affiliates may make loans to, accept deposits from and generally engage in any kind of business with any Loan Party as though such Agent were not an Agent. With respect to its Loans made or renewed by it and with respect to any Letter of Credit issued or participated in by it, each Agent shall have the same rights and powers under this Agreement and the other Loan Documents as any Lender and may exercise the same as though it were not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in its individual capacity.

 

Section 9.9     Successor Administrative Agent. The Administrative Agent may resign as Administrative Agent upon 10 days’ notice to the Lenders and the Borrower and otherwise in accordance with the terms of this Section 9.9. If the Administrative Agent shall resign as Administrative Agent under this Agreement and the other Loan Documents, then the Majority Lenders shall appoint from among the Lenders a successor agent for the Lenders, which successor agent shall (unless an Event of Default under Section 8.1(a) or Section 8.1(f) with respect to the Borrower shall have occurred and be continuing) be subject to approval by the Borrower (which approval shall not be unreasonably withheld or delayed), whereupon such successor agent shall succeed to the rights, powers and duties of the Administrative Agent, and the term “Administrative Agent” shall mean such successor agent effective upon such appointment and approval, and the former Administrative Agent’s rights, powers and duties as Administrative Agent shall be terminated, without any other or further act or deed on the part of such former Administrative Agent or any of the parties to this Agreement. If no successor agent has accepted appointment as Administrative Agent by the date that is 10 days following a retiring Administrative Agent’s notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and perform all of the duties of the Administrative Agent hereunder until such time, if any, as the Majority Lenders appoint a successor agent as provided for above. After any retiring Administrative Agent’s resignation as Administrative Agent, the provisions of this Article IX and of Section 10.5 shall continue to inure to its benefit.

  

 

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Section 9.10     Arrangers, Documentation Agent and Syndication Agent. Neither the Arrangers, the Documentation Agent nor the Syndication Agent shall have any duties or responsibilities hereunder in its capacity as such.

 

ARTICLE X
MISCELLANEOUS

 

Section 10.1     Amendments and Waivers. Neither this Agreement, any other Loan Document, nor any terms hereof or thereof may be amended, supplemented or modified except in accordance with the provisions of this Section 10.1. The Majority Lenders and each Loan Party party to the relevant Loan Document may, or, with the written consent of the Majority Lenders, the Administrative Agent and each Loan Party party to the relevant Loan Document may, from time to time, (a) enter into written amendments, supplements or modifications hereto and to the other Loan Documents for the purpose of adding any provisions to this Agreement or the other Loan Documents or changing in any manner the rights of the Lenders or of the Loan Parties hereunder or thereunder or (b) waive, on such terms and conditions as the Majority Lenders or the Administrative Agent, as the case may be, may specify in such instrument, any of the requirements of this Agreement or the other Loan Documents or any Default or Event of Default and its consequences; provided, however, that no such waiver and no such amendment, supplement or modification shall (i) forgive the principal amount or extend the final scheduled date of maturity of any Loan or reduce the stated rate of any interest or fee payable hereunder (except (x) in connection with the waiver of applicability of any post-default increase in interest rates (which waiver shall be effective with the consent of the Majority Lenders) and (y) that any amendment or modification of defined terms used in the financial covenants in this Agreement shall not constitute a reduction in the rate of interest or fees for purposes of this clause (i)) or extend the scheduled date of any payment thereof, or increase the amount or extend the expiration date of any Lender’s Commitment, in each case without the written consent of each Lender directly affected thereby; (ii) eliminate or reduce the voting rights of any Lender under this Section 10.1 without the written consent of such Lender; (iii) consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement and the other Loan Documents, release all or substantially all of the Collateral or release all or substantially all of the Subsidiary Guarantors from their obligations under the Guarantee and Collateral Agreement, in each case without the written consent of all Lenders; (iv) amend, modify or waive any provision of Section 2.12 without the written consent of each of the Lenders directly affected thereby; (v) reduce the percentage specified in the definition of Majority Lenders without the written consent of all Lenders; (vi) amend, modify or waive any provision of Section 9 or any other provision of any Loan Document that affects the Administrative Agent without the written consent of the Administrative Agent; (vii) amend, modify or waive any provision of Article III without the written consent of the Issuing Lender; or (viii) amend, modify or waive any provision of Section 2.18 without the written consent of the Administrative Agent, the Swingline Lenders, the Issuing Lender and the Majority Lenders. Any such waiver and any such amendment, supplement or modification shall apply equally to each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the Administrative Agent and all future holders of the Loans. In the case of any waiver, the Loan Parties, the Lenders and the Administrative Agent shall be restored to their former position and rights hereunder and under the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right consequent thereon.

 

Section 10.2     Notices. All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three Business Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, addressed as follows in the case of the Borrower and the Administrative Agent, and as set forth in an administrative questionnaire delivered to the Administrative Agent in the case of the Lenders, or to such other address as may be hereafter notified by the respective parties hereto:

  

 

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Borrower:
	
Newpark Resources, Inc. 

9320 Lakeside Blvd., Suite 100

The Woodlands, TX 77381

Attention: Treasurer

Telecopy: (281) 362-6801

Telephone: (281) 362-6841

Email: bfeldott@newpark.com

 

with a copy to:

 

Newpark Resources, Inc. 

9320 Lakeside Blvd., Suite 100

The Woodlands, TX 77381

Attention: General Counsel

Telecopy: (281) 362-6801 

Telephone: (281) 362-6818 

Email: mairola@newpark.com

 

	
Administrative Agent:
	
JPMorgan Chase Bank, N.A.

Loan and Agency Services

10 South Dearborn, Floor 7

Chicago, IL 60603-2300

Attention: Sherese J. Cork

Telecopy: 1 (888) 303-9732

Telephone: (312) 732-4843

Email: sherese.cork@jpmchase.com

 

with a copy to:

 

JPMorgan Chase Bank, N.A.

712 Main Street, 12th Floor

Houston, TX 77002

Attention: Stephanie Balette

Telecopy: (713) 216-7794

 

provided that any notice, request or demand to or upon the Administrative Agent or the Lenders shall not be effective until received and it being expressly agreed and acknowledged that notice received by a recipient designated to receive a copy as set forth above shall not constitute notice for purposes hereof unless and until notice is also provided as otherwise set forth above.

 

Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

  

 

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Section 10.3     No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Administrative Agent or any Lender, any right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

 

Section 10.4     Survival of Representations and Warranties. All representations and warranties made hereunder, in the other Loan Documents and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the making of the Loans and other extensions of credit hereunder.

 

Section 10.5     Payment of Expenses and Taxes. The Borrower agrees (a) to pay or reimburse the Administrative Agent for all its reasonable out-of-pocket costs and expenses incurred in connection with the development, preparation and execution of, and any amendment, supplement or modification to, this Agreement and the other Loan Documents and any other documents prepared in connection herewith or therewith, and the consummation and administration of the transactions contemplated hereby and thereby, including the reasonable fees and disbursements of counsel to the Administrative Agent and filing and recording fees and expenses, with statements with respect to the foregoing to be submitted to the Borrower at least three (3) Business Days prior to the Closing Date (in the case of amounts to be paid on the Closing Date) and from time to time thereafter on a quarterly basis or such other periodic basis as the Administrative Agent shall deem appropriate, (b) to pay or reimburse each Lender and the Administrative Agent for all its out-of-pocket costs and expenses incurred in connection with the enforcement or preservation of any rights under this Agreement, the other Loan Documents and any such other documents, including the fees and disbursements of counsel (including the allocated fees and expenses of in-house counsel) to each Lender and of counsel to the Administrative Agent, (c) to pay, indemnify, and hold each Lender and the Administrative Agent harmless from, any and all recording and filing fees and any and all liabilities with respect to, or resulting from any delay in paying, stamp, excise and other taxes, if any, that may be payable or determined to be payable in connection with the execution and delivery of, or consummation or administration of any of the transactions contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the other Loan Documents and any such other documents and (d) to pay, indemnify, and hold each Lender and the Administrative Agent and their respective officers, directors, employees, affiliates, agents, advisors and controlling persons (each, an “Indemnitee”) harmless from and against any and all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits or reasonable costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement, the other Loan Documents and any such other documents, including any of the foregoing relating to the use of proceeds of the Loans, the issuance of or participation in Letters of Credit or the violation of, noncompliance with or liability under, any Environmental Law applicable to the operations of any Group Member or any of the Properties and the reasonable fees and expenses of legal counsel in connection with claims, actions or proceedings by any Indemnitee against any Loan Party under any Loan Document (all the foregoing in this clause (d), collectively, the “Indemnified Liabilities”), provided, that the Borrower shall have no obligation hereunder to any Indemnitee with respect to Indemnified Liabilities to the extent such Indemnified Liabilities are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnitee. Without limiting the foregoing, and to the extent permitted by applicable law, the Borrower agrees not to assert and to cause its Subsidiaries not to assert, and hereby waives and agrees to cause its Subsidiaries to waive, all rights for contribution or any other rights of recovery with respect to all claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature, under or related to Environmental Laws that any of them might have by statute or otherwise against any Indemnitee. All amounts due under this Section 10.5 shall be payable not later than 30 days after written demand therefor. Statements payable by the Borrower pursuant to this Section 10.5 shall be submitted to the Borrower in accordance with Section 10.2. The agreements in this Section 10.5 shall survive repayment of the Loans and all other amounts payable hereunder.

  

 

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Section 10.6     Successors and Assigns; Participations and Assignments. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any affiliate of the Issuing Lender that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section.

 

(b)     (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees other than a natural person (each, an “Assignee”), all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitments and the Loans at the time owing to it) with the prior written consent of:

 

(A)     the Borrower (such consent not to be unreasonably withheld or delayed), provided that no consent of the Borrower shall be required for an assignment to a Lender, an affiliate of a Lender, an Approved Fund (as defined below) or, if an Event of Default has occurred and is continuing, any other Person, and provided further that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof; and

 

(B)     the Administrative Agent (such consent not to be unreasonably withheld or delayed).

 

(ii)     Assignments shall be subject to the following additional conditions: 

 

(A)     except in the case of an assignment to a Lender, an affiliate of a Lender or an Approved Fund or an assignment of the entire remaining amount of the assigning Lender’s Commitments or Loans, the amount of the Commitments or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that (1) no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing and (2) such amounts shall be aggregated in respect of each Lender and its affiliates or Approved Funds, if any; 

 

(B)     (1) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500 and (2) the assigning Lender shall have paid in full any amounts owing by it to the Administrative Agent; 

  

 

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(C)     the Assignee, if it shall not be a Lender prior to such assignment, shall deliver to the Administrative Agent an administrative questionnaire in which the Assignee designates one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Borrower and its Affiliates and their related parties or their respective securities) will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable laws, including Federal and state securities laws; and

 

(D)     no assignment may be made to the Borrower or any of its Affiliates.

 

For the purposes of this Section 10.6, “Approved Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an affiliate of a Lender or (c) an entity or an affiliate of an entity that administers or manages a Lender.

 

(iii)     Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) below, from and after the effective date specified in each Assignment and Assumption, the Assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.13, 2.14, 2.15 and 10.5). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 10.6 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (c) of this Section.

 

(iv)     The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amount of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, absent manifest error, and the Borrower, the Administrative Agent, the Issuing Lender and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.

 

(v)     Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an Assignee, the Assignee’s completed administrative questionnaire (unless the Assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.

  

 

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(c)     Any Lender may, without the consent of the Borrower or the Administrative Agent, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitments and the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent, the Issuing Lender and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver that (i) requires the consent of each Lender directly affected thereby pursuant to the proviso to the second sentence of Section 10.1 and (ii) directly affects such Participant. Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.17 with respect to any Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.13, 2.14 and 2.15 (subject to the requirements and limitations therein, including the requirements under Section 2.14(d) (it being understood that the documentation required under Section 2.14(d) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (i) agrees to be subject to the provisions of Sections 2.13 and 2.14 as if it were an assignee under paragraph (b) of this Section and (ii) shall not be entitled to receive any greater payment under Sections 2.13 or 2.14, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from an adoption of or any change in any Requirement of Law or in the interpretation or application thereof or compliance by any Lender with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority made subsequent to the date hereof that occurs after the Participant acquired the applicable participation. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.7(b) as though it were a Lender, provided such Participant shall be subject to Section 10.7(a) as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under any Loan Document) except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

(d)     Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or Assignee for such Lender as a party hereto.

 

(e)     The Borrower, upon receipt of written notice from the relevant Lender, agrees to issue Notes to any Lender requiring Notes to facilitate transactions of the type described in paragraph (d) above.

 

Section 10.7     Adjustments; Set off. (a) Except to the extent that this Agreement, any other Loan Document or a court order expressly provides for payments to be allocated to a particular Lender or to the Lenders, if any Lender (a “Benefitted Lender”) shall receive any payment of all or part of the Obligations owing to it (other than in connection with an assignment made pursuant to Section 10.6), or receive any collateral in respect thereof (whether voluntarily or involuntarily, by set off, pursuant to events or proceedings of the nature referred to in Section 8.1(f), or otherwise), in a greater proportion than any such payment to or collateral received by any other Lender, if any, in respect of the Obligations owing to such other Lender, such Benefitted Lender shall purchase for cash from the other Lenders a participating interest in such portion of the Obligations owing to each such other Lender, or shall provide such other Lenders with the benefits of any such collateral, as shall be necessary to cause such Benefitted Lender to share the excess payment or benefits of such collateral ratably with each of the Lenders; provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefitted Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest.

  

 

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(b)     In addition to any rights and remedies of the Lenders provided by law, each Lender shall have the right, without notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable law, upon any Obligations becoming due and payable by the Borrower (whether at the stated maturity, by acceleration or otherwise), to apply to the payment of such Obligations, by setoff or otherwise, any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender, any affiliate thereof or any of their respective branches or agencies to or for the credit or the account of the Borrower. Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any such application made by such Lender, provided that the failure to give such notice shall not affect the validity of such application.

 

Section 10.8     Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile or email transmission shall be effective as delivery of a manually executed counterpart hereof. A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent.

 

Section 10.9     Severability; Maximum Lawful Rate. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal on the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

 

Section 10.10     Integration. This Agreement and the other Loan Documents represent the entire agreement of the Borrower, the Administrative Agent and the Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents.

  

 

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Section 10.11     Governing Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

Section 10.12     Submission To Jurisdiction; Waivers. To the extent permitted by applicable law, the Borrower hereby irrevocably and unconditionally:

 

(a)     submits for itself and its property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non exclusive general jurisdiction of the courts of the State of New York, the courts of the United States for the Southern District of New York, and appellate courts from any thereof;

 

(b)     consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

 

(c)     agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the Borrower, as the case may be at its address set forth in Section 10.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto;

 

(d)     agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

 

(e)     waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages.

 

Section 10.13     Acknowledgements. The Borrower hereby acknowledges that:

 

(a)     it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents;

 

(b)     neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty to the Borrower arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between Administrative Agent and Lenders, on one hand, and the Borrower, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

 

(c)      no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the Borrower and the Lenders.

 

Section 10.14     Releases of Guarantees and Liens. (a) Notwithstanding anything to the contrary contained herein or in any other Loan Document, the Administrative Agent is hereby irrevocably authorized by each Lender (without requirement of notice to or consent of any Lender except as expressly required by Section 10.1) to take any action requested by the Borrower having the effect of releasing any Collateral or guarantee obligations (i) to the extent necessary to permit consummation of any transaction not prohibited by any Loan Document or that has been consented to in accordance with Section 10.1 or (ii) under the circumstances described in paragraph (b) below. The Administrative Agent agrees, at the sole expense of the Borrower, to take all actions reasonably requested by the Borrower to effect such release or releases.

  

 

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(b)     At such time as the Loans, the Reimbursement Obligations and the other obligations under the Loan Documents (other than obligations under or in respect of Swap Agreements) shall have been paid in full in cash, the Commitments have been terminated and no Letters of Credit shall be outstanding, the Collateral shall be released from the Liens created by the Security Documents, and the Security Documents and all obligations (other than those expressly stated to survive such termination) of the Administrative Agent and each Loan Party under the Security Documents shall terminate, all without delivery of any instrument or performance of any act by any Person.

 

Section 10.15     Confidentiality. Each of the Administrative Agent and each Lender agrees to keep confidential all non-public information provided to it by any Loan Party, the Administrative Agent or any Lender pursuant to or in connection with this Agreement that is designated by the provider thereof as confidential; provided that nothing herein shall prevent the Administrative Agent or any Lender from disclosing any such information (a) to the Administrative Agent, any other Lender or any affiliate thereof and to its and its affiliates' directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such information and instructed to keep such information confidential), (b) to the extent requested by any Governmental Authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower, (h) to the extent such information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis from a source other than the Borrower. or (i) pertaining to this Agreement routinely provided by arrangers to data service providers, including league table providers, that serve the lending industry. Any Person required to maintain the confidentiality of information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such information as such Person would accord to its own confidential information.

 

Each Lender (a) acknowledges that information furnished to it pursuant to this Agreement or the other Loan Documents may include material non-public information concerning the Borrower and its Affiliates and their related parties or their respective securities and (b) confirms that it (i) has developed compliance procedures regarding the use of material non-public information and (ii) will handle such material non-public information in accordance with those procedures and applicable law, including Federal and state securities laws.

 

All information, including requests for waivers and amendments, furnished by the Borrower or the Administrative Agent pursuant to, or in the course of administering, this Agreement or the other Loan Documents will be syndicate-level information, which may contain material non-public information about the Borrower and its Affiliates and their related parties or their respective securities. Accordingly, each Lender represents to the Borrower and the Administrative Agent that it has identified in its administrative questionnaire a credit contact who may receive information that may contain material non-public information in accordance with its compliance procedures and applicable law, including Federal and state securities laws.

  

 

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Section 10.16     WAIVERS OF JURY TRIAL. THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

Section 10.17     PATRIOT Act. (a) The Lender hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it may be required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow the Lender to identify the Borrower in accordance with the Patriot Act.

 

(b)     If the addition of any new Loan Party obliges the Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall promptly upon the request of the Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Lender (for itself or on behalf of any prospective new Lender) in order for the Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable Requirements of Law

 

Section 10.18     No Adverse Interpretation of Other Agreements. This Credit Agreement may not be used to interpret another indenture, loan, security or debt agreement of the Borrower or any Subsidiary thereof. No such indenture, loan, security or debt agreement may be used to interpret this Credit Agreement.

 

Section 10.19     No Fiduciary Duty. Each of the Administrative Agent, the Syndication Agent, the Documentation Agents, each Lender and their Affiliates (collectively, solely for purposes of this paragraph, the “Lenders”), may have economic interests that conflict with those of the Borrower. The Borrower agrees that nothing in the Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other similar duty between the Lenders and the Borrower, its stockholders or its Affiliates. The Borrower acknowledges and agrees that (a) the transactions contemplated by the Loan Documents are arm’s-length commercial transactions between the Lenders, on the one hand, and the Borrower, on the other, (b) in connection therewith and with the process leading to such transaction each of the Lenders is acting solely as a principal and not the agent or fiduciary of the Borrower, its management, stockholders, creditors or any other person, (c) no Lender has assumed an advisory or fiduciary responsibility in favor of the Borrower with respect to the transactions contemplated hereby or the process leading thereto (irrespective of whether any Lender or any of its Affiliates has advised or is currently advising the Borrower on other matters) or any other obligation to the Borrower except the obligations expressly set forth in the Loan Documents and (d) the Borrower has consulted its own legal and financial advisors to the extent it deemed appropriate. The Borrower further acknowledges and agrees that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto. The Borrower agrees that it will not claim that any Lender has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Borrower, in connection with such transaction or the process leading thereto.

  

 

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Section 10.20     Judgment Currency.

 

(a)     If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder in Dollars into another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase Dollars with such other currency at JPMCB’s principal office in London at 11:00 a.m. (London time) on the Business Day preceding that on which final judgment is given.

 

(b)     If for the purposes of obtaining judgment in any court it is necessary to convert a sum due hereunder in a foreign currency into Dollars, the parties agree to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase such foreign currency with Dollars at JPMCB’s principal office in London at 11:00 a.m. (London time) on the Business Day preceding that on which final judgment is given.

 

(c)     The obligation of the Borrower in respect of any sum due from it in any currency (the “Primary Currency”) to any Lender or the Administrative Agent hereunder shall, notwithstanding any judgment in any other currency, be discharged only to the extent that on the Business Day following receipt by such Lender or the Administrative Agent (as the case may be), of any sum adjudged to be so due in such other currency, such Lender or the Administrative Agent (as the case may be) may in accordance with normal banking procedures purchase the applicable Primary Currency with such other currency; if the amount of the applicable Primary Currency so purchased is less than such sum due to such Lender or the Administrative Agent (as the case may be) in the applicable Primary Currency, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify such Lender or the Administrative Agent (as the case may be) against such loss, and if the amount of the applicable Primary Currency so purchased exceeds such sum originally due to any Lender or the Administrative Agent (as the case may be) in the applicable Primary Currency, such Lender or the Administrative Agent (as the case may be) agrees to remit to the Borrower such excess.

 

Section 10.21     Flood Insurance Regulations. JPMCB has adopted internal policies and procedures that address requirements placed on federally regulated lenders under the Flood Insurance Regulations. JPMCB, as Administrative Agent, will post on the applicable electronic platform (or otherwise distribute to each Lender) documents that it receives in connection with the Flood Insurance Regulations. However, JPMCB reminds each Lender and Participant that, pursuant to the Flood Insurance Regulations, each federally regulated lender (whether acting as a Lender or Participant) is responsible for assuring its own compliance with the requirements of the Flood Insurance Regulations.

 

[SIGNATURES BEGIN NEXT PAGE]

  

 

76

 

 

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

 

	  	
NEWPARK RESOURCES, INC., as Borrower

	  	 	  
	  	 	  
	  	By:	
/s/ Gregg Piontek 

	  	Name:	
Gregg Piontek

	  	Title:	
Chief Financial Officer and Vice President

 

 

Signature Page
Third Amended and Restated Credit Agreement

 

 

 

 

	  	
JPMORGAN CHASE BANK, N.A., as Administrative Agent

	  	 	  
	  	 	  
	  	By:	
/s/ Stephanie Balette

	  	Name:	
Stephanie Balette

	  	Title:	
Authorized Officer

 

 

Signature Page
Third Amended and Restated Credit Agreement

 

 

 

 

	 	JPMORGAN CHASE BANK, N.A., as an Issuing Bank, a Lender and the Swingline Lender
	 	  	  
	 	  	  
	 	By:	
/s/ Stephanie Balette

	 	Name:  	
Stephanie Balette

	 	Title:  	
Authorized Officer

 

 

Signature Page
Third Amended and Restated Credit Agreement

 

 

 

 

	  	
BANK OF AMERICA, N.A., as Syndication Agent and as a Lender

	  	 	  
	  	 	  
	  	By:	
/s/ Anthony Eastman

	  	Name:	
Anthony Eastman

	  	Title:	
Vice President

 

 

Signature Page
Third Amended and Restated Credit Agreement

 

 

 

  

	  	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Documentation Agent and as a Lender

	  	 	  
	 	 	 
	  	 	  
	  	By:	
/s/ David Herrick, Jr.

	  	Name:	
David Herrick, Jr.

	  	Title:	
Director

 

 

Signature Page
Third Amended and Restated Credit Agreement

 

 

 

 

	  	
COMERICA BANK, as a Lender

	  	 	  
	  	 	  
	  	By:	
/s/ Bradley Kuhn

	  	Name:	
Bradley Kuhn

	  	Title:	
AVP

 

 

Signature Page
Third Amended and Restated Credit Agreement

 

 

 

  

	  	
BOKF, NA dba BANK OF TEXAS, as a Lender

	  	 	  
	  	 	  
	  	By:	
/s/ Jeffrey R. Dunn

	  	Name:	
Jeffrey R. Dunn

	  	Title:	
Executive Vice President

 

 

Signature Page
Third Amended and Restated Credit Agreement

 

 

 

  

	  	
CREDIT SUISSE AG, Cayman Islands Branch, as a Lender

	  	 	  
	  	 	  
	  	By:	
/s/ Nupur Kumar

	  	Name:	
Nupur Kumar

	  	Title:	
Authorized Signatory

	 	 	 
	 	By:	/s/ Samuel Miller
	 	Name:	Samuel Miller
	 	Title:	Authorized Signatory

 

 

Signature Page
Third Amended and Restated Credit Agreement

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