Document:

EX-10.12

 EXHIBIT 10.12 

PETIQ, INC. 
 2017
OMNIBUS INCENTIVE PLAN 
 NONQUALIFIED STOCK OPTION AGREEMENT 

THIS NONQUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) is made effective as of
            (the “Grant Date”) by and between PetIQ, Inc., a Delaware corporation (the “Company”), and
            (the “Participant”), pursuant to the PetIQ, Inc. 2017 Omnibus Incentive Plan, as in effect and as amended from time to time (the “Plan”).
Capitalized terms that are not defined herein shall have the meanings given to such terms in the Plan. 
 WHEREAS, the Company desires from
time to time to grant options to purchase Shares to certain key Employees, Directors and Consultants of the Company and its Subsidiaries or Affiliates; 

WHEREAS, the Company has adopted the Plan in order to effect such grants; and 

WHEREAS, the Participant is an Eligible Recipient as contemplated by the Plan, and the Committee has determined that it is in the interest of
the Company to make this grant to the Participant. 
 NOW, THEREFORE, in consideration of the premises and subject to the terms and
conditions set forth herein and in the Plan, the parties hereto agree as follows: 
  

	1.	Shares Subject to Option; Exercise Price. 

 (a) Shares Subject to
Option. The Company shall grant to the Participant, effective as of the Grant Date, an option to purchase              Shares from the Company, which shall become exercisable, if at
all, as provided below in Section 2(a) (the “Option”). 
 (b) Exercise Price. The Option shall
have an Exercise Price of $            per Share, which is not less than the Fair Market Value per Share on the Grant Date. 

(c) Option Subject to Plan. By signing this Agreement, the Participant acknowledges that he or she has been provided a copy of
the Plan and has had the opportunity to review such Plan and agrees to be bound by all the terms and provisions of the Plan. 
 (d)
Character of Option. The Option granted hereunder is not intended to be an “incentive stock option” within the meaning of Code Section 422. 

  
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	2.	Vesting and Exercisability; Expiration. 

 (a) Vesting and Exercisability.
The Option shall vest and become exercisable in installments as follows: 
  

			
	 Vest Date
	  	 Vest Quantity

	[1st anniversary of Grant Date]	  	[NUMBER OF SHARES]
	[2nd anniversary of Grant Date]	  	[NUMBER OF SHARES]
	[3rd anniversary of Grant Date]	  	[NUMBER OF SHARES]
	[4th anniversary of Grant Date]	  	[NUMBER OF SHARES]
		  	[TOTAL NUMBER OF SHARES]

 The vesting of each installment of the Option set forth above is subject to the Participant’s continuous service with the
Company or a Subsidiary or Affiliate thereof, as applicable, whether as an Employee, Director, or Consultant (“Service”), from the Grant Date through each such anniversary of the Grant Date. Notwithstanding the foregoing, all or a
portion of the Option may also vest and become exercisable under the circumstances described in Section 4(b). 
 (b) Normal
Expiration Date. Unless the Option earlier terminates in accordance with Sections 2 or 4, the Option shall terminate on the tenth anniversary of the Grant Date (the “Normal Expiration Date”). Once a portion of the Option has
become exercisable pursuant to this Section 2, such portion of the Option may be exercised, subject to the provisions hereof, at any time and from time to time until the Normal Expiration Date. 

 

	3.	Method of Exercise and Payment. 

 All or part of the exercisable portion of
the Option may be exercised by the Participant upon (a) the Participant’s written notice to the Company of exercise and (b) the Participant’s payment of the Exercise Price in full at the time of exercise (i) in cash or cash
equivalents, (ii) in unrestricted Shares already owned by the Participant, valued at the Fair Market Value on the date of exercise, or (iii) by net exercise or broker’s cashless exercise procedure, or any other procedures approved by
the Committee from time to time. As soon as practicable after receipt of a written exercise notice and payment in full of the Exercise Price of any exercisable portion of the Option in accordance with this Section 3, but subject to
Section 7 below, the Company shall deliver to the Participant (or such other person or entity) a certificate, certificates or electronic book-entry notation representing the Shares acquired upon the exercise thereof, registered in the name of
the Participant (or such other person or entity); provided that, if the Company, in its sole discretion, shall determine that, under applicable securities laws, any certificates issued under this Section 3 must bear a legend restricting
the transfer of such Shares, such certificates shall bear the appropriate legend. 
  

	4.	Termination of Service. 

 (a) Any Termination. Except as otherwise
set forth below in this Section 4, in the event that the Participant’s Service terminates for any reason, any portion of the Option held by the Participant that is not then vested and exercisable shall terminate and be cancelled
immediately upon such termination of Service.  
 (b) Termination without Cause. In the event that the
Participant’s Service is terminated by the Company without Cause, then any unvested portion of the Option held by the Participant shall immediately vest in full as of the date of such termination of Service. The Option may be exercised by the
Participant at any time prior to the ninetieth (90th) day following the Participant’s termination of Service or the Normal Expiration Date of the Option, whichever period is shorter. The
Option shall terminate immediately thereafter. 

  
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 (c) Termination due to Death or Disability. In the event that the
Participant’s Service terminates by reason of the Participant’s death or Disability, any then-vested portion of the Option may be exercised by the Participant or the Participant’s beneficiary as designated in accordance with
Section 8, or if no such beneficiary is named, by the Participant’s estate, at any time prior to one (1) year following the Participant’s termination of Service or the Normal Expiration Date of the Option, whichever period is
shorter. The Option shall terminate immediately thereafter.  
 (d) Termination due to Retirement. In the event that the
Participant’s Service terminates by reason of the Participant’s Retirement, any then-vested portion of the Option may be exercised by the Participant at any time prior to one (1) year following the Participant’s termination of
Service or the Normal Expiration Date of the Option, whichever period is shorter. The Option shall terminate immediately thereafter. 

(e) Termination for Cause. In the event that the Participant’s Service terminates for Cause, the entire Option held by the
Participant, whether or not then vested and exercisable, shall terminate and be cancelled immediately upon such termination of Service. 

(f) Other Termination of Service. In the event that the Participant’s Service terminates for any reason other than
(i) without Cause, (ii) death or Disability, (iii) Retirement, or (iv) for Cause, any then-vested portion of the Option may be exercised by the Participant at any time prior to the ninetieth (90th) day following the Participant’s termination of Service (or, in the event that the Participant dies or becomes Disabled after the termination of Service, but within the period during which
the Option would otherwise be exercisable hereunder, such ninety (90) day period shall be extended to the date that is one (1) year after such termination) or the Normal Expiration Date of the Option, whichever period is shorter. The
Option shall terminate immediately thereafter.  
  

	5.	Tax Withholding. 

 Whenever Shares are to be issued pursuant to the exercise of
any portion of the Option or any cash payment is to be made hereunder, the Company or any Affiliate thereof shall, in accordance with Section 15 of the Plan, have the power to withhold, or require the Participant to remit to the Company or such
Affiliate thereof, an amount sufficient to satisfy federal, state, and local withholding tax requirements, both domestic and foreign, relating to such transaction, and the Company or such Affiliate thereof may defer payment of cash or issuance of
Shares until such requirements are satisfied; provided, however, that such amount may not exceed the maximum statutory withholding rate. The Participant shall be entitled to satisfy the amount of any such required tax withholding by having the
Company withhold from the Shares otherwise issuable upon exercise of the Option a number of Shares having a Fair Market Value equal to the amount of such required tax withholdings. 

 

	6.	Non-Compete; Non-Solicitation; Non-Disparagement. 

 (a) Non-Compete. During
the period of the Participant’s Service and for twelve (12) months following the termination thereof for any reason (the “Restricted Period”), the Participant agrees that he or she shall not, and shall not permit his or
her respective Affiliates to, 

  
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directly or indirectly through another Person, engage in a Competitive Business (defined below) by providing any services similar to those provided by the Participant during his or her
Service with the Company, in any geographic location in which the Company Group is engaged in business, which includes the United States (the “Geographic Area”). For purposes of this Agreement, “Competitive
Business” shall mean any business that is engaged in the acquisition, distribution, marketing, sale, resale, manufacture or production of veterinary pet prescription and over-the-counter medications or related products, and all matters and
services incidental or related thereto, or any other business in competition with the business conducted by (or actively being contemplated by) the Company, its Subsidiaries or any of its Affiliates (the “Company Group”).

 (b) Non-Solicitation. The Participant agrees that during his or her period of Service and during the Restricted Period,
the Participant shall not, and shall not permit his or her Affiliates to, directly or indirectly through another Person within the Geographic Area: 

(i) hire any Employee or independent contractor of the Company Group, or solicit, induce, recruit or encourage any such
Employee or independent contractor to leave the employ of, or reduce the services provided to, the Company Group, or encourage or attempt to do any of the foregoing, either for the Participant’s own purposes or for any other Person or entity;
or 
 (ii) (A) solicit, interfere with, subvert, disrupt or alter the relationship, contractual or otherwise, between the
Company Group and any client, customer, contractor, vendor, supplier, licensor or licensee of the Company Group, or any prospective client, customer, contractor, vendor, supplier, licensor or licensee of the Company Group, (B) divert or take
away or attempt to divert or take away the business or patronage (with respect to products or services of the kind or type developed, produced, marketed, furnished or sold by the Company) of any of the clients, customers or accounts, or prospective
clients, customers or accounts, of the Company, or (C) encourage or attempt to do any of the foregoing, either for the Participant’s own purposes or for any other Person or entity. 

(c) Other Covenants. For the avoidance of doubt, the restrictive covenants set forth in this Section 6 are in addition to, and not
in lieu of, any restrictive covenants to which the Participant may otherwise be subject, whether under the terms of his or her employment or services agreement or otherwise. 

(d) Severability. The covenants contained in this Section 6 shall be construed as a series of separate covenants, one for each
county, city, state or any similar subdivision in any Geographic Area. Except for geographic coverage, each such separate covenant shall be deemed identical in terms to the covenant contained in the preceding sections. If, in any judicial
proceeding, a court refuses to enforce any of such separate covenants (or any part thereof), then such unenforceable covenant (or such part) shall be eliminated from this Agreement to the extent necessary to permit the remaining separate covenants
(or portions thereof) to be enforced. In the event that the provisions of this Section 6 are deemed to exceed the time, geographic or scope limitations permitted by applicable law, then such provisions shall be reformed to the maximum time,
geographic or scope limitations, as the case may be, permitted by applicable law. 

  
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 (e) Acknowledgments. The Participant acknowledges that the restrictions set forth in
Sections 6(a) and 6(b) are fair and reasonable in all respects. Without limiting the foregoing, the Participant makes the following acknowledgments: 

(i) The Participant will, by virtue of the Participant’s position with the Company, have and gain a high level of inside
knowledge regarding the Company Group and its business, and as a result, will have the ability to harm or threaten its legitimate business interests, including, without limitation, its goodwill, technologies, intellectual property, business plans,
processes, methods of operation, customers, customer lists, referral sources, vendors and vendor contracts, financial and marketing information, and other trade secrets. 

(ii) The Participant will provide services or have significant presence or influence on behalf of the Company Group within the
entire Geographic Area due to the nature of the Company Group’s business, which is conducted extensively throughout the Geographic Area. 

(iii) The type of activities restricted by Sections 6(a) and 6(b) would be in direct competition with the Company Group’s
business. 
 (iv) The Participant has received sufficient consideration in exchange for the covenants made herein. 

(f) Remedies for Breach. 

(i) The Participant acknowledges and agrees that in the event of the Participant’s actual or threatened breach of any of
the restrictive covenants contained in this Section 6, the Company will have no adequate remedy at law. The Participant accordingly agrees that, in the event of any actual or threatened breach by the Participant of any of said covenants, the
Company will be entitled to seek immediate injunctive and other equitable relief, without bond and without the necessity of showing actual monetary damages. Nothing in this Section 6 will be construed as prohibiting the Company from pursuing
any other remedies available to it for such breach or threatened breach, including the recovery of any damages that it is able to prove. 

(ii) In addition, and not in limitation of the foregoing, in the event of the Participant’s breach of any of the
restrictive covenants set forth in this Section 6, (A) the Option (whether vested or unvested) shall immediately be forfeited, (B) the Company shall be entitled to recover any Shares previously acquired upon the exercise of the
Option, and (C) if the Participant has previously sold any of the Shares derived from the Option, the Company shall also have the right to recover from the Participant the economic value thereof. 

 

	7.	Nontransferability of Awards. 

 The Option granted hereunder may not be sold,
transferred, pledged, assigned, encumbered or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution or, on such terms and conditions as the Committee shall establish, to a permitted

  
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transferee. All rights with respect to the Option granted to the Participant hereunder shall be exercisable during his or her lifetime only by such Participant or, if permitted by the Committee,
a permitted transferee. Following the Participant’s death, all rights with respect to the Option that were exercisable at the time of the Participant’s death and have not terminated shall be exercised by his or her designated beneficiary,
his or her estate or, if designated by the Committee, a permitted transferee. 
  

	8.	Beneficiary Designation. 

 The Participant may from time to time name any
beneficiary or beneficiaries (who may be named contingently or successively) by whom any right under the Plan and this Agreement is to be exercised in case of his or her death. Each designation will revoke all prior designations by the Participant,
shall be in a form reasonably prescribed by the Committee, and will be effective only when filed by the Participant in writing with the Committee during his or her lifetime. 
  

	9.	Adjustments. 

 The Shares subject to the Option may be adjusted in any manner as
contemplated by Section 5 of the Plan. 
  

	10.	Requirements of Law. 

 The issuance of Shares pursuant to the Option shall be
subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. No Shares shall be issued upon exercise of any portion of the Option granted hereunder, if
such exercise would result in a violation of applicable law, including the U.S. federal securities laws and any applicable state or foreign securities laws. 
  

	11.	No Guarantee of Continued Service. 

 Nothing in this Agreement shall interfere
with or limit in any way the right of the Company or an Affiliate thereof to terminate the Participant’s Service at any time or confer upon the Participant any right to continued Service. 

 

	12.	No Rights as Stockholder. 

 Except as otherwise required by law, the Participant
shall not have any rights as a stockholder with respect to any Shares covered by the Option granted hereunder until such time as the Shares issuable upon exercise of such Option have been so issued. 

 

	13.	Interpretation; Construction. 

 Any determination or interpretation by the
Committee under or pursuant to this Agreement shall be final and conclusive on all persons affected hereby. Except as otherwise expressly provided in the Plan, in the event of a conflict between any term of this Agreement and the terms of the Plan,
the terms of the Plan shall control. 

  
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	14.	Amendments. 

 The Committee may, in its sole discretion, at any time and
from time to time, alter or amend this Agreement and the terms and conditions of the unvested portion of any Option (but not any previously granted vested Options) in whole or in part, including without limitation, amending the criteria for vesting
and exercisability set forth in Section 2 hereof, substituting alternative vesting and exercisability criteria and imposing certain blackout periods on Options; provided that such alteration, amendment, suspension or termination shall
not adversely alter or impair the rights of the Participant under the Option without the Participant’s consent. The Company shall give written notice to the Participant of any such alteration or amendment of this Agreement as promptly as
practicable after the adoption thereof. This Agreement may also be amended by a writing signed by both the Company and the Participant. 
  

	15.	Miscellaneous. 

 (a) Notices. All notices, requests, demands,
letters, waivers and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally, mailed, certified or registered mail with postage prepaid, sent
by next-day or overnight mail or delivery, or sent by fax, as follows: 
  

	 	(i)	If to the Company: 

 PetIQ, Inc. 

500 E. Shore Drive, Suite 120 

Eagle, ID 83616 
 Attention:
General Counsel 
 Phone: 208-939-8900 
  

	 	(ii)	If to the Participant, to the Participant’s last known home address, 

 or to such other person or
address as any party shall specify by notice in writing to the Company. All such notices, requests, demands, letters, waivers and other communications shall be deemed to have been received (w) if by personal delivery on the day after such
delivery, (x) if by certified or registered mail, on the fifth business day after the mailing thereof, (y) if by next-day or overnight mail or delivery, on the day delivered, or (z) if by fax, on the day delivered, provided
that such delivery is confirmed. 
 (b) Binding Effect; Benefits. This Agreement shall be binding upon and
inure to the benefit of the parties to this Agreement and their respective successors and assigns. Nothing in this Agreement, express or implied, is intended or shall be construed to give any person other than the parties to this Agreement or their
respective successors or assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein. 

(c) No Guarantee of Future Awards. This Agreement does not guarantee the Participant the right to or expectation of future Awards
under the Plan or any future plan adopted by the Company. 

  
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 (d) Waiver. Either party hereto may by written notice to the other (i) extend the
time for the performance of any of the obligations or other actions of the other under this Agreement, (ii) waive compliance with any of the conditions or covenants of the other contained in this Agreement and (iii) waive or modify
performance of any of the obligations of the other under this Agreement. Except as provided in the preceding sentence, no action taken pursuant to this Agreement, including, without limitation, any investigation by or on behalf of either party,
shall be deemed to constitute a waiver by the party taking such action of compliance with any representations, warranties, covenants or agreements contained herein. The waiver by either party hereto of a breach of any provision of this Agreement
shall not operate or be construed as a waiver of any preceding or succeeding breach and no failure by either party to exercise any right or privilege hereunder shall be deemed a waiver of such party’s rights or privileges hereunder or shall be
deemed a waiver of such party’s rights to exercise the same at any subsequent time or times hereunder. 
 (e) Entire Agreement.
This Agreement, together with the Plan, constitutes the entire obligation of the parties with respect to the subject matter of this Agreement and supersedes any prior written or oral expressions of intent or understanding with respect to such
subject matter (provided, that this Agreement shall not supersede any written employment agreement or other written agreement between the Company and the Participant, including, but not limited to, any written restrictive covenant agreements). 

(f) Code Section 409A Compliance. This Option is intended to be exempt from the requirements of Code Section 409A and this
Agreement shall be interpreted accordingly. Notwithstanding any provision of this Agreement, to the extent that the Committee determines that any portion of the Option granted under this Agreement is subject to Code Section 409A and fails to
comply with the requirements of Code Section 409A, notwithstanding anything to the contrary contained in the Plan or in this Agreement, the Committee reserves the right to amend, restructure, terminate or replace such portion of the Option in
order to cause such portion of the Option to either not be subject to Code Section 409A or to comply with the applicable provisions of such section. 

(g) Applicable Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the law of the State of Delaware,
regardless of the law that might be applied under principles of conflict of laws. 
 (h) Section and Other Headings. The section and
other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. 

(i) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all
of which together shall be deemed to be one and the same instrument. 
 (j) Erroneously Awarded Compensation. Notwithstanding any
provision in the Plan or in this Agreement to the contrary, this Award shall be subject to any compensation recovery and/or recoupment policy that may be adopted and amended from time to time by the Company to comply with applicable law, including,
without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or to comport with good corporate governance practices. 

[Signature Page Follows] 

  
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 Notwithstanding anything in this Agreement or in the Plan to the contrary, the Committee hereby reserves
the right, in its sole discretion, to terminate or cancel this Award if the Participant fails to accept this Agreement on or prior to             . 

IN WITNESS WHEREOF, the Company and the Participant have duly executed this Agreement as of the date first above written. 

 

			
	PETIQ, INC.

 
			
		
	By:	 	  

 
			
		
	Name:	 	  

 
			
		
	Title:	 	  

 
			
	
	PARTICIPANT
	
	  
 Name:

 [Signature Page to Nonqualified Stock Option Agreement]Blueprint

 

EXHIBIT 10.1

 

INCREASE
AND JOINDER AGREEMENT

 

This
Increase and Joinder Agreement is dated as of June 30, 2017 (this
“Agreement”), and is among
the Persons identified on the signature pages hereof as Lenders
(which Persons (1) include each Person identified on the
signature pages hereof as a new Lender (each, a “New Lender”) and each
Person identified on the signature pages hereof as an existing
Lender, and (2) constitute the Required Lenders), WELLS FARGO
BANK, NATIONAL ASSOCIATION, a national banking association
(“Wells
Fargo”), as agent for the Lenders (Wells Fargo, in
that capacity, “Agent”), PAC-VAN, INC.,
an Indiana corporation (“Pac-Van”), LONE STAR TANK
RENTAL INC., a Delaware corporation (“Lone Star”), GFN REALTY
COMPANY, LLC, a Delaware limited liability company
(“GFNRC”), and SOUTHERN
FRAC, LLC, a Texas limited liability company
(“Southern
Frac” and, together with Pac-Van, Lone Star and GFNRC,
each a “Borrower”).

 

The
Lenders, Agent, and Borrowers are party to an Amended and Restated
Credit Agreement dated as of April 7, 2014 (as amended,
restated, supplemented, or otherwise modified before the date of
this Agreement, the “Credit
Agreement”).

 

Borrowers desire to
effect an Increase under the Credit Agreement.

 

The
parties therefore agree as follows:

 

1. Definitions. Defined terms used but not
defined in this Agreem
ent are as defined in the Credit
Agreement.

 

2. Increase; Joinder by New
Lender.

 

(a) Borrowers desire to
effect an Increase in accordance with Section 2.14 of the
Credit Agreement in the amount of $7,000,000, such that the Maximum
Revolver Amount, after giving effect to that Increase, would
increase from $210,000,000 to $217,000,000. In connection with that
proposed Increase,  Agent invited each existing Lender to
increase its Revolver Commitment;  none of the existing
Lenders has agreed to increase its Revolver Commitment; and
 each New Lender has agreed to provide a new Revolver
Commitment. Agent, Lenders, and the Loan Parties desire that the
proposed Increase become effective as of the effective date of this
Agreement.

 

(b) The parties hereby
acknowledge the following: that, for purposes of the GFC 2021
Notes Indenture, Borrowers will be deemed to have exercised
$25,000,000 in accordion increases under Section 2.14 of the
Credit Agreement after giving effect to the proposed Increase;
 that the Maximum Revolver Amount will be $217,000,000 after
giving effect to the proposed Increase;  that this Agreement
is an Increase Joinder;  that the Increase Date for the
proposed Increase will be the effective date of this Agreement;
 that each existing Lender is a Pre-Increase Revolving Lender;
and  that each New Lender is a Post-Increase Revolving
Lender.

 

(c) Each New Lender
hereby does the following: confirms that it has received copies of
the Credit Agreement and the other Loan Documents, together with
copies of the financial statements referred to therein and such
other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this
Agreement; agrees that it will, independently and without reliance
upon Agent or any other Lender, based upon such documents and
information as it deems appropriate at the time, continue to make
its own credit decisions in taking or not taking any action under
the Loan Documents; appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers under the
Loan Documents as are delegated to Agent by the terms thereof,
together with such powers as are reasonably incidental thereto; and
agrees that it will perform in accordance with their terms all of
the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

 1

 

 

(d) As of the effective
date of this Agreement, each New Lender will be a party to the
Credit Agreement and have the rights and obligations of a Lender
thereunder and under the other Loan Documents.

 

(e) In connection with
the proposed Increase and a substantially concurrent assignment
made in accordance with Section 13.1, Schedule C-1 to the
Credit Agreement is updated to read in its entirety as set forth in
Exhibit A to this Agreement.

 

(f) In accordance with
Section 2.14(e) of the Credit Agreement, each existing Lender
shall assign to each New Lender, and each New Lender shall purchase
from each existing Lender, at the principal amount thereof, such
interests in the Revolving Loans and participation interests in
Letters of Credit on the Increase Date for the proposed Increase as
are necessary in order that, after giving effect to all such
assignments and purchases, such Revolving Loans and participation
interests in Letters of Credit will be held by each existing Lender
and each New Lender ratably in accordance with its Pro Rata Share
after giving effect to the proposed Increase.

 

3. Representations. To induce Agent and the
Lenders to enter into this Agreement, each Borrower hereby
represents to Agent and the Lenders as follows:

 

(1)

that that Borrower
is duly authorized to execute and deliver this Agreement and is and
will continue to be duly authorized to borrow monies under the
Credit Agreement and to perform its obligations under the Credit
Agreement;

 

(2)

that the execution
and delivery of this Agreement and the performance by that Borrower
of its obligations under the Credit Agreement do not and will not
conflict with any provision of law or of the Governing Documents of
that Borrower or of any agreement binding upon that
Borrower;

 

(3)

that the Credit
Agreement is a legal, valid, and binding obligation of that
Borrower, enforceable against that Borrower in accordance with its
terms, except as enforceability is limited by bankruptcy,
insolvency, or other similar laws of general application affecting
the enforcement of creditors’ rights or by general principles
of equity limiting the availability of equitable
remedies;

 

(4)

that the
representations and warranties set forth in Section 4 of the
Credit Agreement are true and correct in all material respects (but
if any representation or warranty is by its terms qualified by
concepts of materiality, that representation or warranty is true
and correct in all respects), in each case with the same effect as
if such representations and warranties had been made on the date of
this Agreement, with the exception that all references to the
financial statements mean the financial statements most recently
delivered to Agent except for such changes as are specifically
permitted under the Credit Agreement and except to the extent that
any such representation or warranty expressly relates to an earlier
date;

 2

 

 

(5)

that that Borrower
has complied with and is in compliance with all of the covenants
set forth in the Credit Agreement including those set forth in
Section 5, Section 6, and Section 7 of the Credit
Agreement; and

 

(6)

that as of the date
of this Agreement, no Default or Event of Default has occurred and
is continuing.

 

4. Conditions. The effectiveness of this
Agreement is subject to satisfaction of the following
conditions:

 

(1)

that Agent has
received the following documents:

 

(A)

this Agreement
executed by Agent, the Lenders, and Borrowers;

 

(B)

a Guarantor
Acknowledgment in the form attached to this Agreement, executed by
each Guarantor; and

 

(C)

copies (executed or
certified, as appropriate) of all other legal documents or minutes
of proceedings taken in connection with the execution and delivery
of this Agreement to the extent Agent or its counsel reasonably
requests; and

 

(2)

that all legal
matters incident to the execution and delivery of this Agreement
are satisfactory to Agent and its counsel.

 

5. Release. Each Loan Party hereby waives
and releases any and all current existing claims, counterclaims,
defenses, or set-offs of every kind and nature which it has or
might have against Agent or any Lender arising out of, pursuant to,
or pertaining in any way to the Credit Agreement, any and all
documents and instruments delivered in connection with or relating
to the foregoing, or this Agreement. Each Loan Party hereby further
covenants and agrees not to sue Agent or any Lender or assert any
claims, defenses, demands, actions, or liabilities against Agent or
any Lender which occurred prior to or as of the date of this
Agreement arising out of, pursuant to, or pertaining in any way to
the Credit Agreement, any and all documents and instruments
delivered in connection with or relating to the foregoing, or this
Agreement.

 

6. Miscellaneous.

 

(a) This Agreement is
governed by, and is to be construed in accordance with, the laws of
the State of Illinois. Each provision of this Agreement is
severable from every other provision of this Agreement for the
purpose of determining the legal enforceability of any specific
provision.

 

(b) This Agreement
binds Agent, the Lenders, and Borrowers and their respective
successors and assigns, and will inure to the benefit of Agent, the
Lenders, and Borrowers and the successors and assigns of Agent and
each Lender.

 

(c) Except as
specifically modified or amended by the terms of this Agreement,
all other terms and provisions of the Credit Agreement and the
other Loan Documents are incorporated by reference in this
Agreement and in all respects continue in full force and effect.
Each Borrower, by execution of this Agreement, hereby reaffirms,
assumes, and binds itself to all of the obligations, duties,
rights, covenants, terms, and conditions that are contained in the
Credit Agreement and the other Loan Documents.

 3

 

 

(d) [Reserved].

 

(e) This Agreement is a
Loan Document. Each Borrower acknowledges that Agent’s
reasonable costs and out-of-pocket expenses (including reasonable
attorneys’ fees) incurred in drafting this Agreement and in
amending the Loan Documents as provided in this Agreement
constitute Lender Group Expenses.

 

(f) The parties may
sign this Agreement in several counterparts, each of which will be
deemed to be an original but all of which together will constitute
one instrument.

 

[Signature pages to
follow]

 

 
4

 

The
parties are signing this Increase and Joinder Agreement as of the
date stated in the introductory clause.

 

	
 

	

PAC-VAN, INC.,

as a
Borrower

 

 

By:           
/s/ Christopher A.
Wilson

Name:       Christopher A.
Wilson

Title:    
    Secretary

 

 

	

LONE
STAR TANK RENTAL INC.,

as a
Borrower

  

 

By:            /s/
Christopher A. Wilson

Name:       Christopher A.
Wilson

Title:    
    Secretary

 

	

GFN REALTY
COMPANY, LLC,

as a
Borrower

  

 

By:           
/s/ Christopher A.
Wilson

Name:       Christopher A.
Wilson

Title:    
    Secretary

 

 

	

SOUTHERN
FRAC, LLC,

as a
Borrower

  

By:    
GFN Manufacturing Corporation,

   
       a Delaware corporation, as
Manager

 

By:           
/s/ Christopher A.
Wilson

Name:       Christopher A.
Wilson

Title:    
    Secretary

 

	
 

 

Signature
page to Increase and Joinder Agreement (Pac-Van | Associated
Bank)

 

 

	
 

	
 

	
 

	
 

	
 

	

WELLS
FARGO BANK, NATIONAL ASSOCIATION,

as
Agent and as a Lender

 

	
 

	

By:  

	

/s/ Brian Hynds

	
 

	

Name: 

	

Brian Hynds

	
 

	
 

	

Its Authorized Signatory

	
 

	
 

	
 

 

 

Signature
page to Increase and Joinder Agreement (Pac-Van | Associated
Bank)

 

 

 

	
 

	
 

	
 

	
 

	
 

	

ASSOCIATED
BANK, N.A.,

as a
new Lender

 

	
 

	

By:  

	

/s/ Matthew Kaney

	
 

	

Name: 

	

Matthew Kaney

	
 

	
 

	

Its Authorized Signatory

	
 

	
 

	
 

 

 

 

Signature
page to Increase and Joinder Agreement (Pac-Van | Associated
Bank)

 

 

	
 

	
 

	
 

	
 

	
 

	

EAST
WEST BANK,

as an
existing Lender

 

	
 

	

By:  

	

/s/ John E. Kolg

	
 

	

Name: 

	

John E. Kolg

	
 

	
 

	

Its Authorized Signatory

 

 

 

Signature
page to Increase and Joinder Agreement (Pac-Van | Associated
Bank)

 

 

	
 

	
 

	
 

	
 

	
 

	

CIT
BANK, N.A.,

f/k/a
OneWest Bank N.A.,

successor
in interest to OneWest Bank, FSB,

as an
existing Lender

 

	
 

	

By:  

	

/s/ Prapti Basnet

	
 

	

Name: 

	

Prapti Basnet

	
 

	
 

	

Its Authorized Signatory

 

 

 

Signature
page to Increase and Joinder Agreement (Pac-Van | Associated
Bank)

 

 

	
 

	
 

	
 

	
 

	
 

	

THE
PRIVATEBANK AND TRUST COMPANY,

as an
existing Lender

 

	
 

	

By:  

	

/s/ Scott Dvornik

	
 

	

Name: 

	

Scott Dvornik

	
 

	
 

	

Its Authorized Signatory

 

 

 

Signature
page to Increase and Joinder Agreement (Pac-Van | Associated
Bank)

 

 

	
 

	
 

	
 

	
 

	
 

	

KEYBANK,
NATIONAL ASSOCIATION,

as an
existing Lender

 

	
 

	

By:  

	

/s/ Nadine M. Eames

	
 

	

Name: 

	

Nadine M. Eames

	
 

	
 

	

Its: Vice President

 

 

 

Signature
page to Increase and Joinder Agreement (Pac-Van | Associated
Bank)

 

 

	
 

	
 

	
 

	
 

	
 

	

BANK
HAPOALIM B.M.,

as an
existing Lender

 

	
 

	

By:  

	

/s/ Lenroy Hackett

	
 

	

Name: 

	

Lenroy Hackett, Senior Vice President

	
 

	
 

	

Its Authorized Signatory

	
 

	
 

	
 

	
 

	

By:  

	

/s/ Maxine Levy

	
 

	

Name: 

	

Maxine Levy, First Vice President

	
 

	
 

	

Its Authorized Signatory

 

 

 

 

Signature
page to Increase and Joinder Agreement (Pac-Van | Associated
Bank)

 

 

	
 

	
 

	
 

	
 

	
 

	

GACP I,
L.P.,

a
Delaware limited partnership,

as an
existing Lender

 

	
 

	

By:  

	

/s/ John Ahn

	
 

	

Name: 

	

John Ahn

	
 

	
 

	

Its Authorized Signatory

 

 

 

 

Signature
page to Increase and Joinder Agreement (Pac-Van | Associated
Bank)

 

GUARANTOR
ACKNOWLEDGMENT

 

This
Guarantor Acknowledgment refers to, and is attached to, an Increase
and Joinder Agreement dated as of June 30, 2017, among
Pac-Van, Inc., an Indiana corporation (“Pac-Van”), Lone Star Tank
Rental Inc., a Delaware corporation (“Lone Star”),
GFN Realty Company, LLC, a Delaware limited liability
company (“GFNRC”), Southern
Frac, LLC, a Texas limited liability company
(“Southern
Frac” and, together with Pac-Van, Lone Star, and
GFNRC, each a “Borrower”), the Lenders
identified on the signature pages thereof as Lenders, and Wells
Fargo Bank, National Association, a national banking association,
as agent for the Lenders (the “Increase Agreement”).
Defined terms used but not defined in this Guarantor Acknowledgment
are as defined in the Increase Agreement.

 

Each of
the undersigned, in its capacity as a Guarantor, hereby does the
following: (1) consents to the Increase Agreement;
(2) acknowledges that the Increase Agreement does not in any
way modify, limit, or release any of its obligations under the
Guaranty and Security Agreement to which it is a party;
(3) ratifies and confirms its obligations under the Guaranty
and Security Agreement to which it is a party and acknowledges that
those obligations continue in full force and effect; and
(4) acknowledges that its consent to any other modification to
any Loan Document will not be required as a result of the consent
set forth in this Guarantor Acknowledgment having been obtained,
except to the extent, if any, required by the specific terms of
that Loan Document.

 

Dated
as of the date of the Increase Agreement.

 

	

PV ACQUISITION
CORP.,

an
Alberta corporation

 

 

By:            /s/
Christopher A. Wilson

Name:       Christopher A.
Wilson

Title:    
    Secretary

 

	

GFN MANUFACTURING
CORPORATION,

a
Delaware corporation

 

By:            /s/
Christopher A. Wilson

Name:       Christopher A.
Wilson

Title:    
    Secretary

 

 

 

Guarantor
Acknowledgment to Increase and Joinder Agreement (Pac-Van |
Associated Bank)

 

EXHIBIT A

 

Replacement Schedule C-1 to Credit Agreement

 

(See
attached.)

 

 

SCHEDULE C-1

 

Commitments

 

	
 

Lender

	
 

Revolver Commitment

 

	
 

Last-Out Term Loan Commitment

 

	
 
 

Total Commitment

 

	

Wells Fargo Bank, National Association

	
 $67,000,000 

	
 $0 

	
 $67,000,000 

	

East West Bank

	
 $40,000,000 

	
 $0 

	
 $40,000,000 

	

CIT Bank, N.A. (f/k/a OneWest Bank N.A., successor in interest
to OneWest Bank, FSB)

	
 $35,000,000 

	
 $0 

	
 $35,000,000 

	

The PrivateBank and Trust Company

	
 $25,000,000 

	
 $0 

	
 $25,000,000 

	

KeyBank, National Association

	
 $20,000,000 

	
 $0 

	
 $20,000,000 

	

Bank Hapoalim B.M.

	
 $15,000,000 

	
 $0 

	
 $15,000,000 

	

Associated Bank, N.A.

	
 $15,000,000 

	
 $0 

	
 $15,000,000 

	

GACP I, L.P.

	
 $0 

	
 $20,000,000 

	
 $20,000,000 

	
 

	
    

	
    

	
    

	

All Lenders

	
 $217,000,000 

	
 $20,000,000 

	
 $237,000,000 

 

 

In accordance with the Credit Agreement, the Last-Out Term Loan
Commitment terminated upon the making of the Last-Out Term Loan on
the Amendment No. 6 Effective Date.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00272-of-00352.parquet"}]]