Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 

AMENDMENT NO. 1 TO CREDIT AGREEMENT 

AMENDMENT NO. 1 TO CREDIT AGREEMENT, dated as of October 21, 2014 (this “Amendment”) to the Credit Agreement
dated as of December 24, 2013 (as amended, supplemented and otherwise modified from time to time prior to the date hereof, the “Credit Agreement”) among CYPRESS ENERGY PARTNERS, L.P., a limited partnership organized under the
Laws of the State of Delaware (the “Borrowers’ Agent”), CYPRESS ENERGY PARTNERS – TIR, LLC, a Delaware limited liability company (“CEP-TIR”), as a borrower, CYPRESS ENERGY PARTNERS, LLC, a Delaware limited
liability company (“CEP”), as a borrower, TULSA INSPECTION RESOURCES, LLC, a Delaware limited liability company (“TIR”), as a borrower, and together with the Borrowers’ Agent, CEP-TIR and CEP (each a
“Borrower” and collectively, the “Borrowers”), DEUTSCHE BANK AG, NEW YORK BRANCH (“DBNY”) as collateral agent (the “Collateral Agent”) and as Lender, Issuing Bank, Swing Line Lender
(all as defined below), DEUTSCHE BANK TRUST COMPANY AMERICAS, as administrative agent (the “Administrative Agent”), and the several banks and other financial institutions or entities from time to time parties to this Amendment, as
lenders (the “Lenders”). 
 RECITALS 

WHEREAS, the Borrowers have requested certain amendments to the Credit Agreement; and 

WHEREAS, the Lenders have agreed to amend the Credit Agreement solely upon the terms and conditions set forth herein; 

NOW, THEREFORE, in consideration of the premises and the agreements hereinafter set forth, the parties hereto hereby agree as follows: 

1. Defined Terms. Unless otherwise noted herein, terms defined in the Credit Agreement and used herein shall have the respective
meanings given to them in the Credit Agreement. 
 2. Amendments to Sections 1.1, (Defined Terms) of the Credit Agreement. 

(a) The definitions of “Acquisition Facility Commitment,” “Acquisition Facility Commitment Termination Date,”
“Acquisition Facility Maximum Amount,” “Adjusted Total Indebtedness,” “Annual Budget”, “Combined Capital,” “Combined EBITDA”, “Combined Interest Expense”, ‘Combined Net Income”,
“Combined Total Assets”, “Combined Total Indebtedness”, “Fiscal Year,” “Maximum Facility Increase Amount,” “Subsidiary,” “Working Capital Facility Commitment,” “Working Capital
Facility Commitment Termination Date” and “Working Capital Facility Maximum Amount” as set forth in Section 1.1 of the Credit Agreement are hereby amended as set forth below: 

 

	 	(i)	The last sentence of the definition of “Acquisition Facility Commitment” is hereby deleted in its entirety and replaced with the following: 

“As of the First Amendment Effective Date, the aggregate amount of the Acquisition Facility Commitment is $125,000,000.” 

 

	 	(ii)	The definition of “Acquisition Facility Commitment Termination Date” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Acquisition Facility Commitment Termination Date”: December 24, 2018, or if such date is not a Business Day, the
next preceding Business Day.” 

	 	(iii)	The definition of “Acquisition Facility Maximum Amount” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Acquisition Facility Maximum Amount”: $250,000,000.” 

 

	 	(iv)	The definition of “Adjusted Total Indebtedness” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Adjusted Total Indebtedness”: at any date, “Combined Total Indebtedness” adjusted to exclude (a) any
contingent reimbursement obligations (including obligations representing the aggregate amount then available for drawing under all Letters of Credit), (b) the outstanding amount of Working Capital Facility Loans and Swing Line Loans, and
(c) Excess Eligible Cash.” 
  

	 	(v)	The definition of “Annual Budget” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Annual Budget”: a consolidated budget of the Loan Parties with respect to a Fiscal Year of the Loan Parties prepared
by the Borrowers, which includes (a) for any Fiscal Year prior to and in which the CEP-TIR Acquisition Date occurs, (i) a projected combined cashflow statement and profit and loss account of financial position of the Loan Parties as of the
end of such Fiscal Year, and (ii) a summary of material underlying assumptions applicable to such projections and (b) for any Fiscal Year thereafter, (i) a projected consolidated cashflow statement and profit and loss account of
financial position of the Loan Parties as of the end of such Fiscal Year, and (ii) a summary of material underlying assumptions applicable to such projections.” 
  

	 	(vi)	The definition of “Combined Capital” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Combined Capital”: as of the date of determination, (i) for any date prior to the CEP-TIR Acquisition Date, the
sum of (a) the aggregate value of the capital accounts of the partners of the Borrowers’ Agent as shown on the Borrowers’ Agent consolidated balance sheet contained in the most recent financial statements delivered pursuant to
Section 7.1 and (b) the aggregate value of the capital accounts of the members of CEP-TIR as shown on the consolidated balance sheet of CEP-TIR contained in the most recent financial statements delivered pursuant to
Section 7.1, and (ii) for any date on or after the CEP-TIR Acquisition Date, the aggregate value of the capital accounts of the partners of the Borrowers’ Agent as shown on the Borrowers’ Agent consolidated balance sheet
contained in the most recent financial statements delivered pursuant to Section 7.1.” 
  

	 	(vii)	The definition of “Combined EBITDA” is hereby amended by deleting the phrase “for any period, for the Loan Parties on a combined basis, Combined Net Income of the Loan Parties for such period,” in
its entirety and inserting in lieu thereof, the following: 

 “for any period, for the Loan Parties (x) prior to the
CEP-TIR Acquisition Date, on a combined basis, and (y) on and after the CEP-TIR Acquisition Date, on a consolidated basis, in each case, Combined Net Income of the Loan Parties for such period,” 

  
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	 	(viii)	The definition of “Combined Interest Expense” is amended by deleting the phrase “for any period, for the Loan Parties, on a combined basis, an amount equal to, without duplication,” and inserting in
lieu thereof: 

 “for any period, for the Loan Parties, (x) at any time prior to the CEP-TIR Acquisition Date, on a
combined basis, and (y) at any time on and after the CEP-TIR Acquisition Date, on a consolidated basis, in each case, an amount equal to, without duplication,” 
  

	 	(ix)	The definition of “Combined Net Income” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Combined Net Income”: for any period, the net income (or loss) of the Loan Parties for any period (or portion thereof)
(x) prior to the CEP-TIR Acquisition Date, determined on a combined basis, and (y) on or after the CEP-TIR Acquisition Date, determined on a consolidated basis, in each case, in accordance with GAAP consistently applied as of such
date.” 
  

	 	(x)	The definition of “Combined Total Assets” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Combined Total Assets”: as of any date of determination thereof, total assets of the Loan Parties and their respective
Subsidiaries calculated (x) for any determination date prior to the CEP-TIR Acquisition Date, on a combined basis, and (y) for any determination date on or after the CEP-TIR Acquisition Date, determined on a consolidated basis, in each
case, in accordance with GAAP consistently applied as of such date.” 
  

	 	(xi)	The definition of “Combined Total Indebtedness” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Combined Total Indebtedness”: as of any date (x) prior to the CEP-TIR Acquisition Date, all Indebtedness of the
Loan Parties and their respective Subsidiaries determined on a combined basis, and (y) on and after the CEP-TIR Acquisition Date, all Indebtedness of the Loan Parties and their respective Subsidiaries at such date determined on a consolidated
basis, in each case, in accordance with GAAP.” 
  

	 	(xii)	The definition of “Fiscal Year” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Fiscal Year”: the fiscal year of the Borrowers’ Agent, which consists of a twelve (12) month period
beginning on each January 1 and ending on each December 31.” 

  
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	 	(xiii)	The definition of “Maximum Facility Increase Amount” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Maximum Facility Increase Amount”: $125,000,000.” 

 

	 	(xiv)	 The definition of “Subsidiary” is hereby amended by deleting the last two sentences of such definition in their entireties and inserting in lieu thereof, the following: 

“Unless otherwise qualified, all references to “Subsidiary” or to “Subsidiaries” in this Agreement or any other Loan
Document shall refer to a Subsidiary or Subsidiaries of (x) prior to the CEP-TIR Acquisition Date, the Borrowers’ Agent, CEP and CEP-TIR, as applicable and (y) on and after the CEP-TIR Acquisition Date, the Borrowers’ Agent and
CEP, as applicable. As of the Closing Date, the Borrowers’ Agent’s, CEP’s, and CEP-TIR’s Subsidiaries are listed on Schedule 5.15, as amended.” 
  

	 	(xv)	The last sentence of the definition of “Working Capital Facility Commitment” is hereby deleted in its entirety and replaced with the following: 

“As of the First Amendment Effective Date, the aggregate amount of the Working Capital Facility Commitment is $75,000,000.” 

 

	 	(xvi)	 The definition of “Working Capital Facility Commitment Termination Date” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Working Capital Facility Commitment Termination Date”: December 24, 2018, or if such date is not a Business Day,
the next preceding Business Day.” 
  

	 	(xvii)	The definition of “Working Capital Facility Maximum Amount” is hereby deleted in its entirety and the following is inserted in lieu thereof: 

““Working Capital Facility Maximum Amount”: $200,000,000.” 

(b) The below defined terms shall be added as new defined terms in their appropriate alphabetical order in the Credit Agreement: 

““CEP-TIR Acquisition Date”: means the date on which each of TIR, Tulsa Inspection Resources – Nondestructive
Examination, LLC and Tulsa Inspection Resources Holdings LLC will be 100% owned (directly or indirectly) by the Borrowers’ Agent.” 

““Eligible Cash”: means, as of any date, the aggregate amount of (i) United States Dollars and (ii) the Dollar
Equivalent of Canadian Dollars, in each case, that qualify as Eligible Cash and Cash Equivalents.” 
 ““Excess Eligible
Cash”: means, for any date on which the Borrowing Base exceeds the Total Working Capital Facility Extensions of Credit, the maximum amount of such excess that could be attributed to Eligible Cash as a component of clause (i) of the
definition of the Borrowing Base as of such date.” 
 ““First Amendment Effective Date”: means October 21,
2014.” 

  
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 (c) The defined term “Reinvestment Deferred Amount” as set forth in Section 1.1 of
the Credit Agreement is hereby deleted in its entirety. 
 3. Amendment to Section 4.7(c) of the Credit Agreement (Mandatory
Prepayments). Section 4.7(c) of the Credit Agreement is hereby amended by adding the below language immediately after the phrase “in accordance with Section 4.7(d)” and immediately before the punctuation “;”

 “; provided that with respect to any Reinvestment Event for which a Reinvestment Notice is provided, on the earlier of
(i) the date occurring 12 months after such Reinvestment Notice and (ii) the date on which the applicable Loan Party shall have determined not to, or shall have otherwise ceased to, acquire assets (directly or through the purchase of the
Capital Stock of a Person pursuant to an Acquisition or otherwise) to replace, repair or upgrade the assets subject to the applicable Asset Sale or Recovery Event, then all remaining Net Cash Proceeds received in connection with such Asset Sale or
Recovery Event shall be applied toward the prepayment of the relevant Loans pursuant to Section 4.7(d);” 
 4. Amendment
to Section 7.1 of the Credit Agreement (Financial Statements). Section 7.1(a) and Section 7.1(b) of the Credit Agreement are hereby deleted in their respective entireties and inserted in lieu thereof are the following: 

“(a) 
 (i) as
soon as available, but in any event within one hundred twenty (120) days after the end of each Fiscal Year occurring prior to the Fiscal Year in which the CEP-TIR Acquisition Date occurs, a copy of (x) the audited consolidated balance
sheet of the Borrowers’ Agent as at the end of such year and the related consolidated statements of income and changes in members’ equity and cash flows for such year, (y) the audited consolidated balance sheet of CEP-TIR as at the
end of such year and the related consolidated statements of income and changes in members’ equity and cash flows for such year, and (z) the combined balance sheet of the Loan Parties as at the end of such year and the related combined
statements of income and changes in members’ equity and cash flows for such year prepared by the Borrowers’ Agent based on the audited financials referenced in clauses (x) and (y) above, and (A) in the case of each of
clauses (x) – (z), prepared in accordance with GAAP and setting forth in each case in comparative form the figures for the previous year, and (B) in the case of each of clauses (x) and (y), reported on without a
“going concern” or like qualification or exception, or qualification arising out of the scope of the audit, by Ernst & Young LLP or other independent certified public accountants of nationally recognized standing; and 

(ii) as soon as available, but in any event within one hundred twenty (120) days after the end of the Fiscal Year in which
the CEP-TIR Acquisition Date occurs and for each Fiscal Year thereafter, a copy of (x) the audited consolidated balance sheet of the Borrowers’ Agent as at the end of such year and the related consolidated statements of income and changes
in members’ equity and cash flows for such year, and (y) the consolidated balance sheet of the Loan Parties as at the end of such year and the related consolidated statements of income and changes in members’ equity and cash flows for
such year prepared by the Borrowers’ Agent based on the audited financials referenced in clause (x) above, and (A) in the case of each of clauses (x) and (y), prepared in accordance with GAAP and setting forth in each
case in comparative form the figures for the previous year, and (B) in the case of clause (x), reported on without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, by
Ernst & Young LLP or other independent certified public accountants of nationally recognized standing; 

  
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 (b) 

(i) as soon as available, but in any event not later than 45 days after the end of each calendar quarter (other than the fourth
calendar quarter) occurring prior to the calendar quarter in which the CEP-TIR Acquisition Date occurs, (x) the unaudited consolidated balance sheet of the Borrowers’ Agent as at the end of such calendar quarter and the related unaudited
consolidated statements of income and changes in members’ equity and cash flows for such quarter and the portion of the Fiscal Year through the end of such quarter, (y) the unaudited consolidated balance sheet of CEP-TIR as at the end of
such calendar quarter and the related unaudited consolidated statements of income and changes in members’ equity and cash flows for such quarter and the portion of the Fiscal Year through the end of such quarter, and (z) the unaudited
combined balance sheet of the Loan Parties as at the end of such calendar quarter and the related unaudited combined statements of income and changes in members’ equity and cash flows for such quarter and the portion of the Fiscal Year through
the end of such quarter prepared by the Borrowers’ Agent based on the unaudited financials referenced in clauses (x) and (y) above, and in the case of each of clauses (x) – (z), prepared in accordance with GAAP, and setting
forth, beginning with the calendar quarter ending on March 31, 2014, in each case in comparative form the figures for the previous year, certified by a Responsible Person of the Borrowers’ Agent, as being fairly presented in all material
respects (subject to normal year-end audit adjustments and the absence of footnotes); and 
 (ii) as soon as available, but
in any event not later than 45 days after the end of the calendar quarter (other than the fourth calendar quarter) in which the CEP-TIR Acquisition Date occurs and for each calendar quarter thereafter, (x) the unaudited consolidated balance
sheet of the Borrowers’ Agent as at the end of such calendar quarter and the related unaudited consolidated statements of income and changes in members’ equity and cash flows for such quarter and the portion of the Fiscal Year through the
end of such quarter, and (y) the unaudited consolidated balance sheet of the Loan Parties as at the end of such calendar quarter and the related unaudited consolidated statements of income and changes in members’ equity and cash flows for
such quarter and the portion of the Fiscal Year through the end of such quarter prepared by the Borrowers’ Agent based on the unaudited financials referenced in clause (x) above, and in the case of each of clauses (x) and (y),
prepared in accordance with GAAP, and setting forth, beginning with the calendar quarter ending in which the CEP-TIR Acquisition Date occurs and each calendar quarter thereafter, in each case in comparative form the figures for the previous year,
certified by a Responsible Person of the Borrowers’ Agent, as being fairly presented in all material respects (subject to normal year-end audit adjustments and the absence of footnotes); and” 

5. Amendment to Section 7.12(c) of the Credit Agreement (Additional Collateral; Further Actions). Section 7.12(c) of the
Credit Agreement is hereby amended by replacing each instance of “Material Real Property” with “Material Real Estate”. 

6. Amendment to Sections 8.5(b) and (c) of the Credit Agreement (Restricted Payments). Sections 8.5(b) and (c) of the Credit
Agreement are hereby amended by deleting such Sections in their respective entireties and inserting in lieu thereof the following: 

  
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 “(b) prior to the CEP-TIR Acquisition Date, CEP-TIR may make Permitted Tax Distributions to
any Person that owns a direct Equity Interest in CEP-TIR, if at the time of such Restricted Payment pursuant to and after giving effect thereto (i) no Default or Event of Default has occurred and is continuing and (ii) the Loan Parties are
in compliance with the covenants set forth in Section 8.1 calculated on a pro forma basis after giving effect thereto; 

(c) prior to the CEP-TIR Acquisition Date, CEP-TIR may make Restricted Payments if at the time of such Restricted Payment and after giving
effect thereto (i) no Default or Event of Default has occurred and is continuing, (ii) the Loan Parties are in compliance with the covenants set forth in Section 8.1 calculated on a pro forma basis after giving effect
thereto, and (iii) both (x) the Borrowing Base exceeds the Total Working Capital Facility Extensions of Credit by, and (y) the aggregate Available Working Capital Facility Commitments equals, in the case of each clause (x) and
(y), an amount not less than $5,000,000;” 
 7. Amendment to Section 8.5(h) of the Credit Agreement (Restricted Payments).
Section 8.5(h) of the Credit Agreement is hereby amended by replacing the phrase “this clause (f)” with “this clause (h)”. 

8. Amendment to Section 9.1(e) of the Credit Agreement (Events of Default). Section 9.1(e) of the Credit Agreement is hereby
amended by replacing each instance of “$5,000,000” with “$10,000,000”. 
 9. Amendment to Schedule 1.0 of the Credit
Agreement (Lenders, Commitments, and Applicable Lending Offices). Schedule 1.0 of the Credit Agreement is hereby amended by deleting such schedule in its entirety and replacing it with the Schedule 1.0 attached hereto as Annex A. 

10. CEP-TIR Fundamental Change. In connection with certain corporate activity, the Borrowers hereby represent and warrant that CEP-TIR
will convey, sell, lease, assign, transfer or dispose of all, or substantially all, of its property, business or assets to another Loan Party in accordance with Section 8.4(c) of the Credit Agreement (the “CEP-TIR Asset
Disposition”). Upon the effectiveness of the CEP-TIR Asset Disposition, the Borrowers’ Representative shall provide (a) written notice to the Collateral Agent that the CEP-TIR Asset Disposition has occurred and (b) an updated
Schedule 5.15 to the Credit Agreement, and the Borrowers hereby agree to provide any reasonably requested materials to the Collateral Agent to evidence the same. 

11. Release of CEP-TIR. Upon receipt by the Collateral Agent of written notice from the Borrowers’ Representative, as provided in
the second sentence of Section 10, that the CEP-TIR Asset Disposition has occurred, the Lenders hereby agree that the Collateral Agent is authorized to release CEP-TIR as a Loan Party under the Loan Documents. 

12. Lenders and Commitment Allocations as of First Amendment Effective Date. 

(a) The parties hereto agree that as of the First Amendment Effective Date, (i) each Lender’s Commitment and
Commitment Percentage shall be as reflected on Annex A hereto and (ii) (A) each 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 Lenders as being required in order to cause each Lender’s portion of the outstanding Loans of all Lenders under each Facility to equal its Commitment Percentage (after giving effect to this Amendment), (B) the
Borrowers shall be deemed to have repaid all outstanding Loans of all the 

  
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Lenders under each Facility and reborrowed such repaid Loans from each Lender in amounts consistent with each Lender’s Commitment Percentage as of the First Amendment Effective Date (after
giving effect to this Amendment) and (C) the participations in Letters of Credit and Swingline Loans shall be adjusted to reflect changes in the applicable Commitment Percentages. The deemed payments made pursuant to this Section 12
in respect of each Eurodollar Loan shall be subject to indemnification by the Borrowers pursuant to the provisions Section 4.14 of the Credit Agreement if the deemed payment occurs other than on an Interest Payment Date; provided, that
the Administrative Agent and each Lender shall cooperate with the Borrowers to reduce and/or eliminate any such indemnification payments to the extent reasonably possible if such cooperation would not subject the Administrative Agent or such Lender,
as applicable, to any unreimbursed cost or expense and would not otherwise be disadvantageous to the Administrative Agent or such Lender. 

(b) By execution and delivery of their respective counterparts hereto, the Administrative Agent, the Swingline Lender and the
Issuing Bank shall be deemed to have approved as a Lender each Person listed on Annex A hereto as a Lender that was not a Lender prior to the First Amendment Effective Date. 

13. Representations and Warranties; No Default. To induce the Lenders to enter into this Amendment, each Loan Party that is a party
hereto (by delivery of its respective counterpart to this Amendment) hereby (i) represents and warrants to the Administrative Agent, the Collateral Agent, and the Lenders that after giving effect to this Amendment, its representations and
warranties contained in the Credit Agreement and other Loan Documents are true and correct in all material respects on and as of the date hereof with the same effect as though made on and as of the date hereof, except to the extent such
representations and warranties expressly relate to an earlier date (in which case such representations and warranties were true and correct in all material respects as of such earlier date); (ii) represents and warrants to the Administrative
Agent, the Collateral Agent, and the Lenders that it (x) has the requisite power and authority to make, deliver and perform this Amendment; (y) has taken all necessary corporate, limited liability company, limited partnership or other
action to authorize its execution, delivery and performance of this Amendment, and (z) has duly executed and delivered this Amendment and (iii) certifies that no Default or Event of Default has occurred and is continuing under the Credit
Agreement (after giving effect to this Amendment) or will result from the making of this Amendment. 
 14. Effectiveness of
Amendments. This Amendment shall become effective upon the first date on which each of the following conditions has been satisfied. 

(a) Amended Loan Documents. The Collateral Agent shall have received this Amendment executed and delivered by a duly
authorized officer of each Loan Party party hereto and duly executed counterparts to this Amendment from (x) the Lenders constituting the Required Lenders and (y) with respect to any Lender increasing its aggregate Commitments pursuant to
this Amendment, such Lender. 
 (b) Amended Notes. Each Lender that has requested amended Notes to reflect its revised
Commitments under the Credit Agreement shall have received such requested Notes in substantially the form of Exhibits A-1 through A-3, as applicable. 

(c) Fees and Expenses. The Borrowers shall have paid to the Administrative Agent for the account of DBNY and the other
Lenders: (i) the amount of any and all reasonable fees, costs and expenses that are for the account of the Borrowers pursuant to Section 11.6 of the Credit Agreement, including all such fees, costs and expenses incurred in connection with
this Amendment and (ii) all other fees on the terms and conditions offered by the Borrowers’ Agent in connection with this Amendment. 

  
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 15. Limited Effect. Except as expressly provided hereby, all of the terms and provisions
of the Credit Agreement and the other Loan Documents are and shall remain in full force and effect. The amendments contained herein shall not be construed as a waiver or amendment of any other provision of the Credit Agreement or the other Loan
Documents or for any purpose, except as expressly set forth herein, or a consent to any further or future action on the part of any Loan Party that would require the waiver or consent of the Lenders. This Amendment shall constitute a “Loan
Document” for all purposes of the Credit Agreement and the other Loan Documents. 
 16. GOVERNING LAW. THIS AMENDMENT
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAW OF THE STATE OF NEW YORK. 

17. Counterparts. This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the
same agreement, and any of the parties hereto may execute this Amendment by signing any such counterpart. Delivery of an executed counterpart hereof by facsimile or email transmission shall be effective as delivery of a manually executed counterpart
hereof. 
 18. Headings. Section or other headings contained in this Amendment are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Amendment. 
 19. Guarantor Acknowledgement. Each Guarantor party hereto hereby
(i) consents to the modifications to the Credit Agreement contemplated by this Amendment and (ii) acknowledges and agrees that its guaranty pursuant to the Guaranty is, and shall remain, in full force and effect after giving effect to the
Amendment. 
 20. Lender Acknowledgement. Each undersigned Lender, by its signature hereto, hereby authorizes and directs DBTCA in its
capacity as Administrative Agent and DBNY in its capacity as Collateral Agent to execute this Amendment. 
 (Signature Pages
Follow) 

  
 9 

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

			
	BORROWERS:
	
	 CYPRESS ENERGY PARTNERS, L.P.,

as Borrowers’ Agent and as a Borrower

By: Cypress Energy Partners GP, LLC,
 its general
partner

	
	 CYPRESS ENERGY PARTNERS, LLC,

	 CYPRESS ENERGY PARTNERS – TIR, LLC,

		
	 By:
	 	/s/ G. Les Austin
	 Name:
	 	G. Les Austin
	Title:	 	Vice President and Chief Financial Officer
	
	 TULSA INSPECTION RESOURCES, LLC,

		
	 By:
	 	/s/ Randall Lorett
	 Name:
	 	Randall Lorett
	 Title:
	 	President and Chief Executive Officer

 [Signature Page to Amendment No. 1 to Credit Agreement] 

 
			
	GUARANTORS:
	
	 Cypress Energy Services, LLC

Cypress Energy Partners – Pecos SWD, LLC
 Cypress Energy
Partners – Orla SWD, LLC
 Cypress Energy Partners – Williams SWD, LLC

Cypress Energy Partners – Bakken, LLC
 Cypress Energy
Partners – Texas, LLC
 Cypress Energy Partners – Mountrail SWD, LLC

Cypress Energy Partners – SBG, LLC
 Cypress Energy Partners
– Tioga SWD, LLC
 Cypress Energy Partners – Manning SWD, LLC

Cypress Energy Partners – Grassy Butte SWD, LLC
 Cypress
Energy Partners – 1804 SWD, LLC
 Cypress Energy Partners – Green River SWD, LLC

		
	 By:
	 	/s/ G. Les Austin
	 Name:
	 	G. Les Austin
	 Title:
	 	Vice President and Chief Financial Officer
	
	 Tulsa Inspection Resources Holdings, LLC

Tulsa Inspection Resources – Nondestructive Examination, LLC

Tulsa Inspection Resources – Canada, ULC
 Tulsa Inspection
Resources – Acquisition ULC
 Foley Inspection Services ulc

		
	By:	 	/s/ Randall Lorett
	Name:	 	Randall Lorett
	Title:	 	Chief Executive Officer

 [Signature Page to Amendment No. 1 to Credit Agreement] 

 
			
	 DEUTSCHE BANK AG, NEW YORK BRANCH,

as Lender, Swing Line Lender, Issuing Bank, and Collateral Agent

		
	 By:
	 	/s/ Chris Chapman
	 Name:
	 	Chris Chapman
	 Title:
	 	Director
		
	 By:
	 	/s/ Vanuza Pereira-Bravo
	 Name:
	 	Vanuza Pereira-Bravo
	 Title:
	 	AVP

 [Signature Page to Amendment No. 1 to Credit Agreement] 

 
			
	DEUTSCHE BANK TRUST COMPANY AMERICAS, as Administrative Agent
	
	 By: Deutsche Bank National Trust Company

		
	 By:
	 	/s/ Randy Kahn
	 Name:
	 	Randy Kahn
	 Title:
	 	Vice President
		
	 By:
	 	/s/ Mary Coseo
	 Name:
	 	Mary Coseo
	 Title:
	 	Vice President

 [Signature Page to Amendment No. 1 to Credit Agreement] 

 
			
	BMO HARRIS BANK, N.A.,
	as a Lender and Joint Lead Arranger
		
	By:	 	/s/ Kimberly A. Yates
	Name:	 	Kimberly A. Yates
	Title:	 	Director

 [Signature Page to Amendment No. 1 to Credit Agreement] 

 
			
	 BOKF, NA d/b/a Bank of Oklahoma,

as a Lender

		
	 By:
	 	/s/ Steven E. Warrick
	 Name:
	 	Steven E. Warrick
	 Title:
	 	Senior Vice President

 [Signature Page to Amendment No. 1 to Credit Agreement] 

 
			
	 COMERICA BANK,

as a Lender

		
	By:	 	/s/ Evan Elsea
	Name:	 	Evan Elsea
	Title:	 	Relationship Manager

 [Signature Page to Amendment No. 1 to Credit Agreement] 

 
			
	 BANK SNB,
 as a Lender

		
	By:	 	/s/ David L. York
	Name:	 	David L. York
	Title:	 	Market President

 [Signature Page to Amendment No. 1 to Credit Agreement] 

 
			
	 CITIZENS SECURITY BANK,
 as a
Lender

		
	 By:
	 	/s/ Joe Mann
	 Name:
	 	Joe Mann
	 Title:
	 	SVP, Market President BA

 [Signature Page to Amendment No. 1 to Credit Agreement] 

 
			
	 ARVEST BANK,
 as a
Lender

		
	 By:
	 	/s/ Brett Myers
	 Name:
	 	Brett Myers
	 Title:
	 	Vice President

 [Signature Page to Amendment No. 1 to Credit Agreement] 

 
			
	 MACQUARIE BANK LIMITED,
 as a
Lender

		
	 By:
	 	/s/ Alan D Cameron
	 Name:
	 	Alan D Cameron
	 Title:
	 	 Executive Director
 Fixed Income &
Currencies
 Macquarie Bank Ltd

		
	 By:
	 	/s/ Nathan Booker
	 Name:
	 	Nathan Booker
	 Title:
	 	Division Director
	
	(Macquarie POA Ref: #1721 dated 9 October 2014, signed in Sydney)

 [Signature Page to Amendment No. 1 to Credit Agreement]EX-4.2

 Exhibit 4.2 

EXECUTION VERSION 

WGL HOLDINGS, INC., 

Issuer 
 AND 

THE BANK OF NEW YORK MELLON, 

Trustee 
  

 
 FIRST
SUPPLEMENTAL INDENTURE 
 dated as of October 24, 2014 

to 
 Indenture 

dated as of August 28, 2014 

relating to 
 2.25% Senior Notes
due 2019 
  
  

 FIRST SUPPLEMENTAL INDENTURE 

FIRST SUPPLEMENTAL INDENTURE, dated as of October 24, 2014 (this “Supplemental Indenture”), between WGL Holdings, Inc.,
a corporation organized under the laws of the Commonwealth of Virginia, and The Bank of New York Mellon, as trustee, to the Base Indenture (as defined below). 

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of August 28, 2014 (the “Base
Indenture”), providing for the issuance from time to time of its debt securities, to be issued in one or more series as therein provided; 

WHEREAS, pursuant to the terms of the Base Indenture, the Company desires to provide for the establishment of a series of notes to be known as
its 2.25% Senior Notes due 2019 (the “Notes”), the form and substance of such Notes and the terms, provisions and conditions thereof to be set forth as provided in the Base Indenture and this Supplemental Indenture (together, the
“Indenture”); and 
 WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental Indenture
and all requirements necessary to make this Supplemental Indenture a valid instrument in accordance with its terms, and to make the Notes, when executed by the Company and authenticated and delivered by the Trustee, the valid and legally binding
obligations of the Company, and all acts and things necessary have been done and performed to make this Supplemental Indenture enforceable in accordance with its terms, and the execution and delivery of this Supplemental Indenture has been duly
authorized in all respects. 
 NOW, THEREFORE, in consideration of the premises and the purchase of the Notes by the holders thereof, it is
mutually covenanted and agreed as follows for the equal and ratable benefit of the holders of Notes: 
 ARTICLE I 

DEFINITIONS, ETC. 

Section 1.1. Definitions of Terms. The terms defined in this Section 1.1 (except as herein otherwise expressly
provided or unless the context otherwise requires) for all purposes of this Supplemental Indenture shall have the respective meanings specified in this Section 1.1 and shall include the plural as well as the singular. All other terms
used in this Supplemental Indenture but not defined in this Supplemental Indenture are defined in the Base Indenture. 
 “Base
Indenture” has the meaning provided in the recitals. 
 “Comparable Treasury Issue” means the United States
Treasury security or securities selected by an Independent Investment Banker as having an actual or interpolated maturity comparable to the remaining term of the Notes being redeemed that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the remaining term of such Notes. 

“Comparable Treasury Price” means, with respect to any redemption date, (a) the average of the Reference Treasury Dealer
Quotations for such redemption date, after excluding 

 
the highest and lowest of such Reference Treasury Dealer Quotations, or (b) if the Independent Investment Banker is provided with fewer than four such Reference Treasury Dealer Quotations,
the average of all such quotations. 
 “Indenture” has the meaning provided in the recitals. 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company. 

“Notes” has the meaning provided in the recitals. 

“Reference Treasury Dealer” means one Primary Treasury Dealer (defined herein) selected by Wells Fargo Securities, LLC and
three other primary U.S. government securities dealers in The City of New York, New York (a “Primary Treasury Dealer”) selected by the Company. If any Reference Treasury Dealer shall cease to be a Primary Treasury Dealer, the
Company will select another Primary Treasury Dealer which will be substituted for that dealer. 
 “Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such redemption date. 

“Supplemental Indenture” has the meaning provided in the preamble. 

“Treasury Rate” means with respect to any redemption date, the rate per year equal to the semiannual equivalent yield to
maturity or interpolated (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date;
provided that, if the Reference Treasury Dealers shall determine that there is no such Comparable Treasury Issue, such rate per year shall be equal to the estimated semiannual equivalent yield to maturity that a United States Treasury security
having a maturity comparable to the remaining term of the Notes to be redeemed would bear, if such security were available, such estimate to be made by the Reference Treasury Dealers on the basis of interpolation, extrapolation and other accepted
financial practices, taking into account (a) the yields to maturity of United States Treasury securities of other maturities, (b) yields to maturity of other Dollar denominated debt securities having a maturity comparable to the remaining
term of the Notes to be redeemed and (c) applicable interest rate spreads between United States Treasury securities and such other debt securities, all as of 5:00 p.m., New York City time, on the third Business Day preceding such redemption
date. 
 Section 1.2. References. References in this Supplemental Indenture to article numbers, section numbers and exhibits
shall be deemed to be references to articles and section numbers of, and exhibits to, this Supplemental Indenture, unless otherwise specified. 

  
 2 

 ARTICLE II 

GENERAL TERMS AND CONDITIONS OF THE NOTES 

Section 2.1. Designation and Principal Amount. 

The Notes are hereby authorized and are designated the 2.25% Senior Notes due 2019, unlimited in aggregate principal amount. The Notes issued
on the date hereof pursuant to the terms of the Indenture shall be in an aggregate principal amount of $100,000,000, which amount shall be set forth in the written order of the Company for the authentication and delivery of the Notes pursuant to
Section 2.4 of the Base Indenture. 
 Section 2.2. Maturity. 

Unless an earlier redemption has occurred, the principal amount of the Notes shall mature and be due and payable on November 1, 2019,
together with any accrued interest thereon to, but not including, such date. 
 Section 2.3. Form and Payment. 

The Notes shall be issued as a Global Security and in the minimum denominations of one thousand Dollars ($1,000) and in integral multiples of
$1,000 in excess thereof. 
 The Notes and the Trustee’s certificate of authentication to be endorsed thereon are to be substantially
in the form of Exhibit A, which form is hereby incorporated in and made a part of this Supplemental Indenture. 
 The terms and
provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Supplemental Indenture, and the Company and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms
and provisions and to be bound thereby. 
 Payments of principal, premium, if any, and/or interest on the Notes shall initially be paid to
Cede & Co, as nominee of the Depositary. 
 The Global Security representing the Notes shall be deposited with, or on behalf of,
the Depositary and shall be registered in the name of the Depositary or a nominee of the Depositary. The Global Security representing the Notes may not be transferred except as a whole by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, or by the Depositary or such nominee to a successor of the Depositary or a nominee of such successor. 

Section 2.4. Interest. 

Interest on the Notes shall accrue at the rate of 2.25% per annum. The Interest Payment Dates for the Notes shall be May 1 and
November 1 of each year, commencing May 1, 2015, and the Regular Record Date for the Notes shall be April 15 and October 15, as the case may be, next preceding the applicable Interest Payment Date. Interest on the Notes shall be
payable semi-annually in arrears on each Interest Payment Date for the Notes. Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day months. If any Interest

  
 3 

 
Payment Date or maturity date for the Notes falls on a day that is not a Business Day, the required payment of principal or interest will be made on the next Business Day as if made on the date
that payment was due, and no interest will accrue on that payment for the period from and after the Interest Payment Date or maturity date, as the case may be, to the date of the payment on the next Business Day. 

Section 2.5. Optional Redemption. 

At any time prior to October 1, 2019, the Company may, at its option, redeem the Notes in whole or in part, from time to time, at a
redemption price equal to the greater of (a) 100% of the principal amount of the Notes being redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued
to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 15 basis points plus, in each case, accrued and unpaid interest to, but not
including, the redemption date. 
 At any time on and after October 1, 2019, the Company may, at its option, redeem the Notes in whole
or in part, from time to time, at a redemption price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. 

ARTICLE III 
 AMENDMENTS
TO BASE INDENTURE 
 The following amendments shall be made to the Base Indenture: 

Section 3.1. Definitions. Section 1.1 of the Base Indenture is hereby amended to add the following definitions in the
appropriate alphabetical locations: 
 “Capital Lease” means any Indebtedness represented by a lease obligation incurred
with respect to real property or equipment acquired or leased and used in its business that is required to be recorded as a capital lease in accordance with GAAP. 

“Consolidated Net Worth” means at any time the consolidated stockholders’ equity of the Company and its subsidiaries
calculated on a consolidated basis as of such time. For purposes of calculating the Consolidated Net Worth, “subsidiaries” means, at any time, the subsidiaries of the Company whose financial data is, in accordance with GAAP, reflected in
the Company’s consolidated financial statements. 
 “GAAP” means generally accepted accounting principles in the
United States. 
 “Indebtedness” means any indebtedness in respect of borrowed money of the Company. 

“Lien” means any lien, security interest, charge or encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature thereof, and any agreement to give any security interest). 

  
 4 

 Section 3.2. Limitation on Liens. Article IV of the Base Indenture is hereby amended
to add the following new Section 4.7, which new Section 4.7 shall be for the benefit of the Securityholders of the Notes only, and not any other series of Securities, unless any amendment or supplement to the Indenture provides otherwise
(it being understood that only a series of Securities that so benefits from Section 4.7 of the Base Indenture shall have any rights with respect to said Section 4.7 or be deemed to be affected by said Section 4.7 within the meaning of
Section 9.2 of the Base Indenture and otherwise): 
 Section 4.7. Limitation on Liens. The Company covenants
that the Company and its Subsidiaries will not create or incur any Lien on any property of the Company or any of its Subsidiaries, whether now owned or hereafter acquired, in order to secure any Indebtedness, without effectively providing that the
Securities of any series which by their express terms benefit from this Section 4.7 shall be equally and ratably secured until such time as such Indebtedness is no longer secured by such Lien, except: 

(a) Liens existing as of the date of initial issuance of the Securities of such series; 

(b) Liens granted after the date of initial issuance of the Securities of such series created in favor of the Securityholders
of such series; 
 (c) Liens securing Indebtedness which are incurred to extend, renew or refinance Indebtedness which is
secured by Liens permitted to be incurred under this Section 4.7; 
 (d) Liens created in substitution of or as
replacements for any Lien permitted by clause (a), (b) or (c) of this Section 4.7; provided that based on a good faith determination of the Company, the property encumbered under any such substitute or replacement Lien is
substantially similar in nature to the property encumbered by the otherwise permitted Lien which is being replaced; 
 (e)
Liens on any assets, created solely to secure obligations incurred to finance the refurbishment, improvement or construction of such asset, which obligations are incurred no later than 12 months after completion of such refurbishment, improvement or
construction, and all renewals, extensions, refinancings, replacements or refundings of such obligations; 
 (f) Liens given
to secure the payment of the purchase price incurred in connection with the acquisition (including acquisition through merger or consolidation) of any property, including Capital Lease transactions in connection with any such acquisition, and
(ii) Liens existing on any property at the time of acquisition thereof or at the time of acquisition by the Company or any of its Subsidiaries of any Person then owning such property whether or not such existing Liens were given to secure the
payment of the purchase price of the property to which they attach; provided that with respect to clause (i), the Liens shall be given within 12 months after such acquisition and shall attach solely to the property acquired or purchased and any
improvements then or thereafter placed thereon and any proceeds thereof; 
 (g) pre-existing Liens on assets acquired after
the date of initial issuance of the Securities of such series; 

  
 5 

 (h) Liens in favor of the Company or any of its Subsidiaries; 

(i) purchase money Liens or purchase money security interests upon or in any property acquired or held by the Company or any of
its Subsidiaries in the ordinary course of business to secure the purchase price of such property or to secure Indebtedness incurred solely for the purpose of financing the acquisition of such property; 

(j) Liens on any property in favor of the United States or any State thereof or any political subdivision thereof to secure
progress or other payments or to secure Indebtedness incurred for the purpose of financing the cost of acquiring, constructing or improving such property; 

(k) the pledge or assignment in the ordinary course of business of electricity, gas (either natural or artificial) or steam,
accounts receivable or customers’ installment paper; 
 (l) Liens securing hedges, swaps, derivatives and other similar
transactions entered into in the ordinary course of business; 
 (m) Liens incurred in connection with an acquisition of
assets or a project financed on a non-recourse basis; 
 (n) Liens for taxes, assessments or governmental charges for the
then current year and taxes, assessments or governmental charges not then delinquent; 
 (o) Liens for workers’
compensation awards and similar obligations not then delinquent; 
 (p) mechanics’, laborers’, materialmen’s
and similar Liens not then delinquent; 
 (q) judgment Liens; 

(r) easements or reservations in respect of the Company’s property or property of a Subsidiary for the purpose of roads,
pipelines, utility transmission and distribution lines or other rights-of-way and similar purposes; 
 (s) zoning ordinances,
regulations, reservations, restrictions, covenants, party wall agreements, conditions of record and other encumbrances, other than to secure the payment of money, none of which, in the opinion of counsel, are such as to interfere with the proper
operation and development of the affected property for its intended use in the Company’s business or the business of any of its Subsidiaries; 

(t) any defects of title and any terms, conditions, agreements, covenants, exceptions and reservations in deeds or other
instruments under which we or a Subsidiary has acquired or may in the future acquire any property, none of which, in the opinion of counsel, materially adversely affects the operation of the Company’s properties and those of its Subsidiaries,
taken as a whole; 

  
 6 

 (u) rights reserved to or vested in others to take or receive any part of the
electricity, gas (either natural or artificial), steam or any by-products generated or produced by or from any of the Company’s or any of its Subsidiary’s properties or with respect to any other rights concerning electricity, gas (either
natural or artificial) or steam supply, transportation or storage which are in use in the ordinary course of the electricity, gas (either natural or artificial) or steam business; 

(v) Liens created or assumed by the Company or any of its Subsidiaries in connection with the issuance of tax-exempt state and
local bonds for purposes of financing, in whole or in part, the acquisition or construction of property to be used by the Company or any of its Subsidiaries, provided the Liens are limited to the property financed and the related real estate; 

(w) Liens incurred in the creation or existence of leases made, or existing on property acquired, in the ordinary course of
business; and 
 (x) any extension, renewal, substitution or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Lien referred to in this Section 4.7. 
 Notwithstanding anything to the contrary in
this Section 4.7, the Company and any of its Subsidiaries may, without equally and ratably securing the Securities of any series which by their express terms benefit from this Section 4.7, create or incur Liens which would
otherwise be subject to the restrictions set forth in this section if, after giving effect thereto, the aggregate principal amount of Indebtedness incurred after the date of initial issuance of such Securities and secured by Liens not permitted
under this Section 4.7 does not exceed the greater of (i) 15% of Consolidated Net Worth calculated as of the date of the creation or incurrence of such Lien or (ii) 15% of Consolidated Net Worth calculated as of the date of the
initial issuance of such Securities. 
 ARTICLE IV 

MISCELLANEOUS 

Section 4.1. Application of Supplemental Indenture. 

This Supplemental Indenture shall amend and supplement the Base Indenture in the manner and to the extent herein and therein provided. 

Section 4.2. Trust Indenture Act Controls. 

If any provision hereof limits, qualifies or conflicts with the duties imposed by Sections 310 through 317 of the Trust Indenture Act, the
imposed duties shall control. 
 Section 4.3. Conflict with Base Indenture. 

To the extent not expressly amended or modified by this Supplemental Indenture, the Base Indenture shall remain in full force and effect. If
any provision of this Supplemental Indenture relating to the Notes is inconsistent with any provision of the Base Indenture, the provision of this Supplemental Indenture shall control. 

  
 7 

 Section 4.4. Governing Law. 

THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. 

Section 4.5. Successors. 

All agreements of the Company in the Base Indenture, this Supplemental Indenture and the Notes shall bind its successors. All agreements of
the Trustee in the Base Indenture and this Supplemental Indenture shall bind its successors. 
 Section 4.6. Counterparts. 

This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument. 
 Section 4.7. Trustee Disclaimer. 

The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture other than as to the validity of its
execution and delivery by the Trustee. The recitals and statements herein are deemed to be those of the Company and not the Trustee. 

[Remainder of page intentionally left blank] 

  
 8 

 IN WITNESS WHEREOF, the parties to this Supplemental Indenture have caused it to be duly executed
as of the day and year first above written. 
  

			
	WGL HOLDINGS, INC.
		
	By:	 	 /s/ Anthony M. Nee

		 	Name: Anthony M. Nee
		 	Title:   Vice President and Treasurer
	
	THE BANK OF NEW YORK MELLON, as Trustee
		
	By:	 	 /s/ Francine Kincaid

		 	Name: Francine Kincaid
		 	Title:   Vice President

 Exhibit A 

Form of Global Note representing the Notes 

WGL HOLDINGS, INC. 
 2.25% SENIOR
NOTE DUE 2019 
 THIS IS A SECURITY IN GLOBAL FORM WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREINAFTER. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”), TO
THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT
IN PART, TO NOMINEES OF THE DEPOSITARY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF. 
  

					
	CUSIP No. 92924FAA4	 		  	
	ISIN No. US92924FAA49	 		  	
	No. 1	 		  	Principal Amount $100,000,000

 WGL HOLDINGS, INC. 

2.25% SENIOR NOTES DUE 2019 
 WGL
Holdings, Inc., a corporation organized under the laws of the Commonwealth of Virginia (the “Company”), for value received, hereby promises to pay to Cede & Co. or registered assigns the principal sum of one hundred million United
States Dollars ($100,000,000), at the Company’s office or agency for said purposes, on November 1, 2019 (the “Stated Maturity”) or upon earlier redemption. 

The Company promises to pay interest on the principal amount of this Security at the rate of 2.25% per annum. The Company will pay
interest semi-annually in arrears on May 1 and November 1 of each year (each, an “Interest Payment Date”), commencing on May 1, 2015. 

 Interest on this Security will accrue from October 24, 2014 or from the most recent Interest Payment Date to
which interest on the Notes has been paid or duly provided for, until payment of said principal sum has been made or duly provided for. The Company will pay interest to the Person in whose name this Security is registered at the close of business on
April 15 and October 15, as the case may be, next preceding the applicable Interest Payment Date, except that the Company will pay the interest payable at the Stated Maturity or any redemption date of this Security to the Person or Persons
to whom principal is payable. The Company will pay interest in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. The Company will make payments in
respect of Notes in global form (including principal and interest) to the Securityholder thereof or a nominee of the Securityholder, by wire transfer of immediately available funds as of the close of business on the date such payments are due. 

Payments of interest on this Security will include interest accrued to but excluding the respective Interest Payment Date. Interest on this
Security will be computed on the basis of a 360-day year consisting of twelve 30-day months. If any Interest Payment Date or maturity date for this Security falls on a day that is not a Business Day, the required payment of principal or interest
will be made on the next Business Day as if made on the date that payment was due, and no interest will accrue on that payment for the period from and after the Interest Payment Date or maturity date, as the case may be, to the date of the payment
on the next Business Day. A “Business Day” means any day other than a day on which Federal or State banking institutions in The City of New York or place of payment, are authorized or obligated by law, executive order or regulation to
close. 
 Payment of the principal and interest due at the Stated Maturity or earlier redemption of the Security shall be made upon the
surrender of the Security at the Corporate Trust Office of the Trustee (as defined below). Principal of and any premium and interest on the Security will, at the option of the Company, be paid either (i) by check mailed to the Person entitled
to such payment at its address set forth in the Security Register or (ii) wired to such account at a banking institution in the United States as may be designated in writing to the Trustee by the Person entitled to such payment at least 16 days
prior to the date of such payment. 
 Reference is made to the further provisions set forth on the reverse hereof, including the definitions
of certain capitalized terms. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. 

This Security shall not be valid or obligatory until the certificate of authentication hereon shall have been duly signed by The Bank of New
York Mellon, as trustee (the “Trustee”) acting under the Indenture dated as of August 28, 2014 between the Company and the Trustee. 

  
 4 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

					
	Dated: October 24, 2014	 		 	
		
		 	WGL HOLDINGS, INC.
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities issued under the within-mentioned Indenture. 

 

					
	Dated: October 24, 2014	 		 	
		
		 	THE BANK OF NEW YORK MELLON, as Trustee
			
		 	By:	 	  

		 		 	Authorized Signatory

 REVERSE OF SECURITY 

WGL HOLDINGS, INC. 
 2.25% Senior
Notes Due 2019 
 This Security is one of a duly authorized issue of debt securities of the Company, of the series hereinafter specified,
all issued or to be issued under a Supplemental Indenture, dated as of October 24, 2014 (the “Supplemental Indenture”), to an Indenture, dated as of August 28, 2014 (the “Base Indenture” and, together with the
Supplemental Indenture, the “Indenture”), and duly executed and delivered by the Company to The Bank of New York Mellon, as trustee (hereinafter, the “Trustee”). Reference to the Indenture is hereby made for a description of the
respective rights and duties thereunder of the Trustee, the Company and the Securityholders of the Securities. This Security is one of a series designated as the “2.25% Senior Notes Due 2019” of the Company (hereinafter called the
“Notes”), issued under the Indenture. Each Securityholder by accepting a Note, agrees to be bound by all terms and provisions of the Indenture, as amended from time to time, applicable to the Notes. 

The Notes issued under the Indenture are senior unsecured obligations of the Company and will mature on November 1, 2019. The Notes rank
on parity with all other existing and future senior unsecured obligations of the Company. 
 At any time prior to October 1, 2019, the
Company may, at its option, redeem the Notes in whole or in part, from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of the Notes being redeemed or (b) the sum of the present values of the
remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the
Treasury Rate plus 15 basis points plus, in each case, accrued and unpaid interest to, but not including, the redemption date. For purposes of the Notes, the following terms have the following meanings: 

“Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent
Investment Banker as having an actual or interpolated maturity comparable to the remaining term of the Notes being redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues
of corporate debt securities of a comparable maturity to the remaining term of such Notes. 
 “Comparable Treasury
Price” means, with respect to any redemption date, (a) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (b) if
the Independent Investment Banker is provided with fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company. 

 “Reference Treasury Dealer” means one Primary Treasury Dealer (defined
herein) selected by Wells Fargo Securities, LLC and three other primary U.S. government securities dealers in The City of New York, New York (a “Primary Treasury Dealer”) selected by the Company. If any Reference Treasury Dealer shall
cease to be a Primary Treasury Dealer, the Company will select another Primary Treasury Dealer which will be substituted for that dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date,
the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by
such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such redemption date. 

“Treasury Rate” means with respect to any redemption date, the rate per year equal to the semiannual equivalent yield
to maturity or interpolated (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption
date; provided that, if the Reference Treasury Dealers shall determine that there is no such Comparable Treasury Issue, such rate per year shall be equal to the estimated semiannual equivalent yield to maturity that a United States Treasury security
having a maturity comparable to the remaining term of the Notes to be redeemed would bear, if such security were available, such estimate to be made by the Reference Treasury Dealers on the basis of interpolation, extrapolation and other accepted
financial practices, taking into account (a) the yields to maturity of United States Treasury securities of other maturities, (b) yields to maturity of other Dollar denominated debt securities having a maturity comparable to the remaining
term of the Notes to be redeemed and (c) applicable interest rate spreads between United States Treasury securities and such other debt securities, all as of 5:00 p.m., New York City time, on the third Business Day preceding such redemption
date. 
 At any time on and after October 1, 2019, the Company may, at its option, redeem the Notes in whole or in part, from time to
time, at a redemption price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. 

Except in the case of a conditional redemption, once notice of redemption on the Notes is given, the Notes called for redemption become due
and payable on the redemption date at the redemption price stated in the notice. A notice of redemption of the Notes may be conditioned and provide that it is subject to the occurrence of any event described in the notice before the date fixed for
the redemption. A notice of conditional redemption will be of no effect unless all conditions to the redemption have occurred before the redemption date or have been waived by the Company. 

The Notes are not entitled to any sinking fund, and no Securityholder of the Notes may require the Company to make any mandatory redemption of
the Notes or purchase or make an offer to purchase the Notes. 

  
 2 

 The Notes are subject to satisfaction and discharge pursuant to Article XI of the Base Indenture.

 In case an Event of Default shall have occurred and is continuing with respect to the Notes, the principal hereof may be declared, and
upon such declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture. The Indenture provides that in certain circumstances such declaration and its consequences may be waived by
the Securityholders of not less than a majority in aggregate principal amount of the Notes then Outstanding. However, any such consent or waiver by the Securityholder shall not affect any subsequent default or impair any right consequent thereon.

 The Base Indenture permits the Company and the Trustee, without the consent of the Securityholders of the Notes for certain situations
and with the consent of not less than a majority of the Securityholders in aggregate principal amount of the Outstanding Notes of each series affected by such supplemental indenture in other situations, to execute supplemental indentures adding to,
modifying, or changing various provisions of, the Base Indenture; provided that no such supplemental indenture, without the consent of the Securityholder of each Outstanding Note affected thereby, shall (i) change the maturity date of any
Securities of any series, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof, (ii) reduce the amount of principal of an
Original Issue Discount Security or any other Security payable upon acceleration of maturity, (iii) change the currency in which any Security or any premium or interest is payable, (iv) impair the right to receive payment of principal of
and interest on any Security (whether upon redemption, repurchase, maturity, or otherwise) or payment or delivery of any amounts due upon conversion of Securities of any series that are convertible into shares of common stock or other securities on
or after the due dates or to institute suit for the enforcement of any payment on or with respect to any Security, (v) adversely change the right to convert or exchange, including decreasing the conversion rate or increasing the conversion
price of, that Security (if applicable), (vi) if the Securities are secured, change the terms and conditions pursuant to which the Securities are secured in a manner adverse to the holders of the Securities, (vii) reduce the percentage in
principal amount of outstanding Securities of any series, the consent of whose holders is required for modification or amendment of the Indenture or for waiver of compliance with any provision of the Indenture, (viii) reduce the requirements
contained in the Indenture for a quorum for a meeting or for voting, (ix) change any obligations of the Company to maintain an office or agency in the places and for the purposes required by the Indenture, (x) in the case such series of
Securities is subordinated to other indebtedness of the Company pursuant to a supplement indenture, modify the subordination provisions in such supplemental indenture in a manner adverse to the holders of such Securities, or (xi) modify
Sections 9.1 or 9.2 of the Base Indenture. 
 No reference herein to the Indenture and no provision of this Security or of the
Indenture shall alter or impair the obligations of the Company, which are absolute and unconditional, to pay the principal of or interest on this Security at the respective times and at the rate herein prescribed. 

The Notes are issuable in registered form without coupons in minimum denominations of $1,000 and in integral multiples of $1,000 in excess
thereof. A Securityholder may exchange the Notes for a like aggregate principal amount of Notes of other authorized denominations in the manner and subject to the limitations provided in the Indenture. 

  
 3 

 Upon due presentment for registration of transfer of the Notes at the office or agency for said
purpose of the Company, a new Note or Notes of authorized denominations, for a like aggregate principal amount, will be issued to the transferee as provided in the Indenture. No service charge shall be made for any such transfer, but the Company may
require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto. 
 Prior to due
presentation of this Security for registration of transfer, the Company, the Trustee, and any agent of the Company or the Trustee, may deem and treat the Securityholder hereof as the owner of this Security (whether or not any payment with respect to
this Security shall be overdue), for the purpose of receiving payment of principal of and (subject to the provisions of the Indenture) interest hereon and for all other purposes whatsoever, whether or not any payment with respect to this Security
shall be overdue, and neither the Company, nor the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 

No recourse shall be had for the payment of the principal of or interest on this Security, for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, or because of the creation of any indebtedness represented thereby, against any incorporator, shareholder, officer or director, as such, past, present or
future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAW OF THE STATE OF NEW YORK. 

All terms used in this Security (and not otherwise defined in this Security) that are defined in the Indenture shall have the meanings
assigned to them in the Indenture. 

  
 4 

 ASSIGNMENT FORM 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto: 

PLEASE INSERT SOCIAL SECURITY NUMBER OR OTHER IDENTIFYING NUMBER OF ASSIGNEE 
  

 
 (Name and address of Assignee,
including zip code, must be printed or typewritten) 
  
  

 
  

the within Note, and all rights thereunder, hereby irrevocably, constituting and appointing 

 
  
  

 
 to transfer the said Note on the books of WGL
Holdings, Inc. with full power of substitution in the premises. 
  

					
	Dated:                     	 		 	  

		 		 	 NOTICE: The signature to this assignment must

correspond with the name as it appears upon the
 face of the
within Note in every particular, without
 alteration or enlargement or any change whatever.

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE 

The initial outstanding principal amount of this Global Note is $100,000,000. The following exchanges of a part of this Global Note for an
interest in another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made: 

 

									
	 Date of Exchange
	  	Amount of decrease
in Principal Amount of
this Global Note	  	Amount of
increase
in Principal
Amount of
this
Global Note	  	Principal
Amount of
this Global
Note
following
such
decrease or
increase	  	Signature of
authorized
signatory of
Trustee, Depositary
or Custodian

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