Document:

ex10-4.htm

Exhibit 10.4

 

	WELLS FARGO	REVOLVING LINE OF CREDIT NOTE

 

 

	$2,000,000.00	Houston, Texas
	 	
September 3, 2014

 

                                                                                                                                             

FOR VALUE RECEIVED, the undersigned Spine Pain Management lnc. ("Borrower") promises to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION ("Bank") at its office at Private Banking - Houston, 1000 Louisiana St 2nd Floor, Houston, TX 77002, or at such other place as the holder hereof may designate, in lawful money of the United States of America and in immediately available funds, the principal sum of Two Million and 00/100 Dollars ($2,000,000.00), or so much thereof as may be advanced and be outstanding, with interest thereon, to be computed on each advance from the date of its disbursement as set forth herein.

  

1.    DEFINITIONS:

 

As used herein, the following terms shall have the meanings set forth after each, and any other term defined in this Note shall have the meaning set forth at the place defined:

 

1.1   "Daily One Month LlBOR" means, for any day, the rate of interest equal to LlBOR then in effect for delivery for a one (1) month period.

 

1.2   "LIBOR" means the rate of interest per annum determined by Bank based on the rate for United States dollar deposits for delivery of funds for one (1) month as reported on Reuters Screen LIBOR01 page (or any successor page) at approximately 11:00 a.m., London time, or, for any day not a London Business Day, the immediately preceding London Business Day (or if not so reported, then as determined by Bank from another recognized source or interbank quotation).

 

1.3   "London Business Day" means any day that is a day for trading by and between banks in dollar deposits in the London interbank market.

 

2.     INTEREST:

 

2.1   Interest.  The outstanding principal balance of this Note shall bear interest (computed on the basis of a 360- day year, actual days elapsed, unless such calculation would result in a usurious rate, in which case interest shall be computed on the basis of a 365/366-day year, as the case may be, actual days elapsed) at the lesser of (a) a fluctuating rate per annum determined by Bank to be two percent (2.00000%) above Daily One Month LIBOR in effect from time to time, or (b) the Maximum Rate. Bank is hereby authorized to note the date and interest rate applicable to this Note  and any payments made thereon on Bank's books and records (either manually or  by electronic entry) and/or on any schedule attached to this Note, which notations shall be prima facie evidence of the accuracy of the information noted.

 

2.2   Taxes and Regulatory Costs.  Borrower shall pay to Bank immediately upon demand, in addition to any other amounts due or to become due hereunder, any and all (a) withholdings, interest equalization taxes, stamp taxes or other taxes (except income and franchise taxes) imposed by any domestic or foreign governmental authority and related in any manner to LIBOR, and (b) costs, expenses and liabilities arising from or in connection with reserve percentages prescribed by the Board of Governors of the Federal Reserve System (or any successor) for "Eurocurrency Liabilities" (as defined in Regulation D of the Federal Reserve Board, as amended), assessment rates imposed by the Federal Deposit Insurance Corporation, or similar requirements or costs imposed by any domestic or foreign governmental authority or resulting from compliance by Bank with any request or directive (whether or not having the force of law) from any central bank or other governmental authority and related in any manner to LIBOR. In determining which of the foregoing are· attributable to any LIBOR option available to Borrower hereunder, any reasonable allocation made by Bank among its operations shall be conclusive and binding upon Borrower.

 

 

	
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2.3   Payment of Interest.   Interest accrued on this  Note  shall  be  payable  on  the  3rd  day  of  each  month, commencing October 3, 2014.

 

2.4   Default Interest.  From and after the maturity date of this Note, or such earlier  date as all principal owing hereunder becomes due and payable by acceleration or otherwise, or at Bank's option upon the occurrence, and during the continuance of an Event of Default, the outstanding principal balance of this Note shall bear interest at an increased rate per annum (computed on the basis of a 360-day year, actual days elapsed, unless such calculation would result in a usurious rate, in which case interest shall be computed on the basis of a 365/366-day year, as the case may be, actual days elapsed) equal to 4% above the rate of interest from time to time applicable to this Note, but in no event at a rate greater than the Maximum Rate.

 

3.     BORROWING AND REPAYMENT:

 

3.1   Borrowing and Repayment.  Borrower may from time to time during the term of this Note borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject to all of the limitations, terms and conditions of this Note and of any document executed in connection with or governing this Note; provided  however, that the total outstanding borrowings under this Note shall not at any time exceed the principal amount stated above. The unpaid principal balance of this obligation at any time shall be the total amounts advanced hereunder by the holder hereof less the amount of principal payments made hereon by or for Borrower, which balance may be endorsed hereon from time to time by the holder. The outstanding principal balance of this Note shall be due and payable in full on August 31, 2017.

 

3.2   Advances.  Advances  hereunder, to the total amount of the principal sum available hereunder, may be made by the holder at the oral or written request of (a) William F. Donovan, any one acting alone, who are authorized to request advances and direct the disposition of any advances until written notice of the revocation of such authority is received by the holder at the office designated above, or (b) any person, with respect to advances deposited to the credit of any deposit account of Borrower, which advances, when so deposited, shall be conclusively presumed to have been made to or for the benefit of Borrower regardless of the fact that persons other than those authorized to request advances may have authority to draw against such account. The holder shall have no obligation to determine whether any person requesting an advance is or has been authorized by Borrower.

 

3.3   Application of Payments.  Each payment made on this Note shall be credited first, to any interest then due and second, to the outstanding principal balance hereof.

 

4.     LATE CHARGE:

 

If any payment required hereunder or under any contract, instrument and other document required hereby, or at any time hereafter delivered to Bank in connection herewith, is not paid within fifteen (15) days following the date it becomes due, Borrower shall pay a late charge equal to five percent (5%) of the amount of such unpaid payment.

5.     EVENTS OF DEFAULT:

 

This Note is made pursuant to and is subject to the terms and conditions of that certain Credit Agreement between Borrower and Bank dated as of September 3, 2014, as amended from time to time (the "Credit Agreement"). Any default in the payment or performance of any obligation under this Note, or any defined event of default under the Credit Agreement, shall constitute an "Event of Default" under this Note.

 

6.     MISCELLANEOUS:

 

6.1   Remedies.  Upon the occurrence of any Event of Default, the holder of this Note, at the holder's option, may declare all sums of principal and accrued and unpaid interest outstanding hereunder to be immediately due and payable without presentment, demand, or any notices of any kind, including without limitation notice of nonperformance, notice of protest, protest, notice of dishonor, notice of intention to accelerate or notice of acceleration, all of which are expressly waived by Borrower, and the obligation, if any, of the holder to extend any further credit hereunder shall immediately cease and terminate. Borrower shall pay to the holder immediately upon demand the full amount of all payments, advances, charges, costs and expenses, including reasonable attorneys' fees (to include outside counsel fees and all allocated costs of the holder's in-house counsel to the extent permissible), expended or incurred by the holder in connection with the enforcement of the holder's rights and/or the

 

	
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collection of any amounts which become due to the holder under this Note, and the prosecution or defense of any action in any way related to this Note, including without limitation, any action for declaratory relief, whether incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank or any other person) relating to Borrower or any other person or entity.

6.2   Obligations Joint and Several.  Should more than one person or entity sign this Note as a Borrower, the obligations of each such Borrower shall be joint and several.

 

6.3   Governing Law.  This Note shall be governed by and construed in accordance with the laws of the State of Texas.

 

6.4   Savings Clause.  It is the intention of the parties to comply strictly with applicable usury laws. Accordingly, notwithstanding any provision to the contrary in this Note, or in any contract, instrument or document evidencing or securing the payment hereof or otherwise relating hereto (each, a "Related Document"}, in no event shall this Note or any Related Document require the payment or permit the payment, taking, reserving, receiving, collection or charging of any sums constituting interest under applicable laws that exceed the maximum amount permitted by such laws, as the same may be amended or modified from time to time (the "Maximum Rate"). If any such excess interest is called for, contracted for, charged, taken, reserved or received in connection with this Note or any Related Document, or in any communication by Bank or any other person to Borrower or any other person, or in the event that all or part of the principal or interest hereof or thereof shall be prepaid or accelerated, so that under any of such circumstances or under any other circumstance whatsoever the amount of interest contracted for, charged, taken, reserved or received on the amount of principal actually outstanding from time to time under this Note shall exceed the Maximum Rate, then in such event it is agreed that: (a) the provisions of this paragraph shall govern and control; (b) neither Borrower nor any other person or entity now or hereafter liable for the payment of this Note or any Related Document shall be obligated to pay the amount of such interest to the extent it is in excess of the Maximum Rate; (c) any such excess interest which is or has been received by Bank, notwithstanding this paragraph, shall be credited against the then unpaid principal balance hereof or thereof, or if this Note or any Related Document has been or would be paid in full by such credit, refunded to Borrower; and (d) the provisions of this Note and each Related Document, and any other communication to Borrower, shall immediately be deemed reformed and such excess interest reduced, without the necessity of executing any other document, to the Maximum Rate. The right to accelerate the maturity of this Note or any Related Document does not include the right to accelerate, collect or charge unearned interest, but only such interest that has otherwise accrued as of the date of acceleration. Without limiting the foregoing, all calculations of the rate of interest contracted for, charged, taken, reserved or received in connection with this Note and any Related Document which are made for the purpose of determining whether such rate exceeds the Maximum Rate shall be made to the extent permitted by applicable laws by amortizing, prorating, allocating and spreading during the period of the full term of this Note or such Related Document, including all prior and subsequent renewals and extensions hereof or thereof, all interest at any time contracted for, charged, taken, reserved or received. The terms of this paragraph shall be deemed to be incorporated into each Related Document.

 

To the extent that either Chapter 303 or 306, or both, of the Texas Finance Code apply in determining the Maximum Rate, Bank hereby elects to determine the applicable rate ceiling by using the weekly ceiling from time to time in effect, subject to Bank's right subsequently to change such method in accordance with applicable law, as the same may be amended or modified from time to time.

 

6.5   Right of Setoff; Deposit Accounts.  Upon and after the occurrence of an Event of Default, (a) Borrower hereby authorizes Bank, at any time and from time to time, without notice, which is hereby expressly waived by Borrower, and whether or not Bank shall have declared this Note to be due and payable in accordance with the terms hereof, to set off against, and to appropriate and apply to the payment of, Borrower's obligations and liabilities under this Note (whether matured or unmatured, fixed or contingent, liquidated or unliquidated, any and all amounts owing by Bank to Borrower (whether payable in U.S. dollars or any other currency, whether matured or unmatured, and in the case of deposits, whether general or special (except trust and escrow accounts), time or demand and however evidenced), and (b) pending any such action, to the extent necessary, to hold such amounts as collateral to secure such obligations and liabilities and to return as unpaid for insufficient funds any and all checks and other items drawn against any deposits so held as Bank, in its sole discretion, may elect. Borrower hereby grants to Bank a security interest in all deposits and accounts maintained with Bank and with any other financial institution to secure the payment of all obligations and liabilities of Borrower to Bank under this Note.

 

	
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6.6   Business Purpose.  Borrower represents and warrants that all loans evidenced by this Note are for a business, commercial, investment, agricultural or other similar purpose and not primarily for a personal, family or household use.

 

6.7   Certain Tri-Party Accounts.  Borrower and Bank agree that Chapter 346 of the Texas Finance Code (which regulates certain revolving credit loan accounts and revolving tri-party accounts) shall not apply to any revolving loan accounts created under this Note or maintained in connection herewith.

 

NOTICE: THIS NOTE AND ALL OTHER DOCUMENTS RELATING TO THE INDEBTEDNESS EVIDENCED HEREBY CONSTITUTE A WRITTEN LOAN AGREEMENT WHICH REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES RELATING TO THIS NOTE AND THE INDEBTEDNESS EVIDENCED HEREBY.

 

IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above.

 

Spine Pain Management Inc.   

              

By: /s/ William F. Donovan, President

William F. Donovan, President

 

 

	
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CREDIT AGREEMENT

 

THIS CREDIT AGREEMENT (this "Agreement") is entered into as of September 3, 2014, by and between SPINE PAIN MANAGEMENT, INC., a Delaware corporation ("Borrower"), and WELLS FARGO BANK, NATIONAL ASSOCIATION ("Bank").

 

RECITALS

 

Borrower has requested that Bank extend or continue credit to Borrower as described below, and Bank has agreed to provide such credit to Borrower on the terms and conditions contained herein.

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Bank and Borrower hereby agree as follows:

 

ARTICLE I

CREDIT TERMS

 

SECTION 1.1     LINE OF CREDIT.

 

(a)   Line of Credit.  Subject to the terms and conditions of this Agreement, Bank hereby agrees to make advances to Borrower from time to time up to and including August 31, 2017, not to exceed at any time the aggregate principal amount of Two Million and 00/100 Dollars ($2,000,000.00) ("Line of Credit"), the proceeds of which shall be used to provide the- company with short-term working capital.   Borrower's obligation to repay advances under the Line of Credit shall be evidenced by a Revolving Line of Credit Note dated as of September 3, 2014 ("Line of Credit Note"), all terms of which are incorporated herein by this reference.

 

(b)   Borrowing and Repayment.  Borrower may from time to time during the term of the Line of Credit borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject to all of the limitations, terms and conditions contained herein or in the Line of Credit Note; provided however, that the total outstanding borrowings under the Line of Credit shall not at any time exceed the maximum principal amount available thereunder, as set forth above.

 

SECTION 1.2     INTEREST/FEES.

 

(a)   Interest.  The outstanding principal balance of the Line of Credit shall bear interest at the rate of interest set forth in the Line of Credit Note.

 

(b)   Computation and Payment.  Interest shall be computed on the basis of a 360-day year, actual days elapsed, unless such calculation would result in a usurious rate, in which case interest shall be computed on the basis of a 365/366-day year, as the case may be, actual days elapsed. Interest shall be payable at the times and place set forth in each promissory note or other instrument or document required hereby.

 

SECTION 1.3     COLLATERAL.

 

As security for all indebtedness and other obligations of Borrower to Bank subject hereto, Borrower shall cause Peter L. Dalrymple and Marlene C. Dalrymple to grant to Bank a first lien security interest in account no. (s): XXXXXXXX maintained at the Wells Fargo Advisors, LLC.

 

All of the foregoing shall be evidenced by and subject to the terms of such security agreements,  financing statements, deeds or mortgages, and other documents as Bank shall reasonably require, all in form and substance satisfactory to Bank. Borrower shall pay to Bank immediately upon demand the full amount of all charges, costs and expenses (to include fees paid to third parties and all allocated costs of Bank personnel), expended or incurred by

 

 

	
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Bank in connection with any of the foregoing security, including without limitation, filing and recording fees and costs of appraisals, audits and title insurance.

 

SECTION 1.4     GUARANTIES.  The payment and performance of all indebtedness  and  other  obligations  of Borrower to Bank subject hereto shall be guaranteed jointly and severally by Peter L. Dalrymple, as evidenced by and subject to the terms of guaranties in form and substance satisfactory to Bank.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

 

Borrower makes the following representations and warranties to Bank, which representations and warranties shall survive the execution of this Agreement and shall continue in full force and effect until the full and final payment, and satisfaction and discharge, of all obligations of Borrower to Bank subject to this Agreement.

 

SECTION 2.1     LEGAL STATUS.  Spine Pain Management, Inc. is a corporation, duly organized and existing and in good standing under the laws of Delaware, and is qualified or licensed to do business (and is in good standing as a foreign corporation, if applicable) in all jurisdictions in which such qualification or licensing is required or in which the failure to so qualify or to be so licensed could have a material adverse effect on Borrower.

 

SECTION 2.2     AUTHORIZATION AND VALIDITY.  This Agreement and each  promissory  note,  contract, instrument and other document required hereby or at any time hereafter delivered to Bank in connection herewith (collectively, the "Loan Documents") have been duly authorized, and upon their execution and delivery in accordance with the provisions hereof will constitute legal, valid and binding agreements and obligations of Borrower or the party which executes the same, enforceable in accordance with their respective terms.

 

SECTION 2.3     NO VIOLATION.  The execution, delivery and performance by Borrower of each of the Loan Documents do not violate any provision of any law or regulation, or contravene any provision of the Articles of Incorporation or By-Laws of Borrower, or result in any breach of or default under any contract, obligation, indenture or other instrument to which Borrower is a party or by which Borrower may be bound.

SECTION 2.4     LITIGATION.  There are no pending, or to the best of Borrower's knowledge threatened, actions, claims, investigations, suits or proceedings  by or before any governmental authority, arbitrator,  court or administrative agency which could have a material adverse effect on the financial condition or operation of Borrower other than those disclosed by Borrower to Bank in writing prior to the date hereof.

SECTION 2.5     CORRECTNESS OF FINANCIAL STATEMENT.  All annual financial statements of Borrower, and all. interim financial statements prepared since the date of such annual financial statements, which have been delivered by Borrower to Bank prior to the date hereof, (a) are true, complete and correct and present fairly the financial condition of Borrower, and (b) disclose all liabilities of Borrower, whether liquidated or unliquidated, fixed or contingent. Since the dates of such financial statements there has been no material adverse change in the financial condition of Borrower, nor has Borrower mortgaged, pledged, granted a security interest in or otherwise encumbered any of its assets or properties except in favor of Bank or as otherwise permitted by Bank in writing.

SECTION 2.6     INCOME TAX RETURNS.  Borrower has no knowledge of any pending  assessments  or adjustments of its income tax payable with respect to any year.

SECTION 2.7     NO SUBORDINATION.  There is no agreement, indenture,  contract  or  instrument  to  which Borrower is a party or by which Borrower may be bound that requires the subordination in right of payment of any of Borrower's obligations subject to this Agreement to any other obligation of Borrower.

 

SECTION 2.8     PERMITS, FRANCHISES.  Borrower possesses, and will hereafter possess, all permits, consents, approvals, franchises and licenses required and rights to all trademarks, trade names, patents, and fictitious names, if any, necessary to enable it to conduct the business in which it is now engaged in compliance with applicable law.

 

SECTION 2.9     ERISA.  Borrower is in compliance in all material respects with all applicable provisions of the Employee Retirement Income Security Act of 1974, as amended or recodified from time to time ("ERISA"); Borrower has not violated any provision of any defined employee pension benefit plan (as defined in ERISA) maintained or

 

	
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contributed to by Borrower (each, a "Plan"); no Reportable Event as defined in ERISA has occurred and is continuing with respect to any Plan initiated by Borrower; Borrower has met its minimum funding requirements under ERISA with respect to each Plan; and each Plan will be able to fulfill its benefit obligations as they come due in accordance with the Plan documents and under generally accepted accounting principles.

 

SECTION 2.10   OTHER OBLIGATIONS.  Borrower is not in default on any obligation for borrowed money, any purchase money obligation or any other material lease, commitment, contract, instrument or obligation.

 

SECTION 2.11   ENVIRONMENTAL MATTERS.  Except as disclosed by Borrower to Bank in writing prior to the date hereof, Borrower is in compliance in all material respects with all applicable federal or state environmental, hazardous waste, health and safety statutes, and any rules or regulations adopted pursuant thereto, which govern or affect any of Borrower's operations and/or properties, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Superfund Amendments and Reauthorization Act of 1986, the Federal Resource Conservation and Recovery Act of 1976, and the Federal Toxic Substances Control Act, as any of the same may be amended, modified or supplemented from time to time.  None of the operations of Borrower is the subject of any federal or state investigation evaluating whether any remedial  action involving a material expenditure is needed to respond to a release of any toxic or hazardous waste or substance into the environment. Borrower has no material contingent liability in connection with any release of any toxic or hazardous waste or substance into the environment.

 

ARTICLE III

CONDITIONS

 

SECTION 3.1     CONDITIONS OF INITIAL EXTENSION OF CREDIT.  The obligation of Bank to extend any credit contemplated by this Agreement is subject to the fulfillment to Bank's satisfaction of all of the following conditions:

 

(a)   Approval of Bank Counsel.  All legal matters incidental to the extension of credit by Bank shall be satisfactory to Bank's counsel.

 

(b)   Documentation.  Bank shall have received, in form and substance satisfactory to Bank, each of the following, duly executed:

 

	
(1)  

	
This Agreement.

	
(2)  

	
Each promissory note or other instrument or document required hereby.

	
(3)  

	
Security Agreement.

	
(4)  

	
Securities Account Control Agreement.

	
(5)  

	
Continuing Guaranty.

	
(6)  

	
Reg. U Statement of Purpose..

	
(7)  

	
Corporate Resolution.

	
(8)  

	
Certificate of Incumbency.

	
(9)  

	
Name Affidavit.

	
(10)  

	
Such other documents as Bank may require under any other Section of this Agreement.

 

(c)   Financial Condition.  There shall have been no material adverse change, as determined by  Bank, in the financial condition or business of Borrower or any guarantor hereunder, nor any material decline, as determined by Bank, in the market value of any collateral required hereunder or a substantial or material portion of the assets of Borrower or any such guarantor.

 

(d)   Insurance.  Borrower shall have delivered to Bank evidence of insurance coverage in form, substance, amounts, covering risks and issued by companies satisfactory to Bank, and where required by Bank, with lender loss payable endorsements in favor of Bank.

 

SECTION 3.2     CONDITIONS OF EACH EXTENSION OF CREDIT. The obligation  of  Bank  to  make  each extension of credit requested by Borrower hereunder shall be subject to the fulfillment to Bank's satisfaction of each of the following conditions:

 

(a)   Compliance.  The representations and warranties contained herein and in each of the other Loan Documents shall be true on and as of the date of the signing of this Agreement and on the date of each extension of credit by

 

 

	
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Bank pursuant hereto, with the same effect as though such representations and warranties had been made on and as of each such date, and on each such date, no Event of Default as defined herein, and no condition, event or act which with the giving of notice or the passage of time or both would constitute such an Event of Default, shall have occurred and be continuing or shall exist.

 

(b)   Documentation.  Bank shall have received all additional documents which may be required in connection with such extension of credit.

 

ARTICLE IV 

 

AFFIRMATIVE COVENANTS

 

Borrower covenants that so long as Bank remains committed to extend credit to Borrower pursuant hereto, or any liabilities (whether direct or contingent, liquidated or unliquidated) of Borrower to Bank under any of the Loan Documents remain outstanding, and until payment in full of all obligations of Borrower subject hereto, Borrower shall, unless Bank otherwise consents in writing:

 

SECTION 4.1      PUNCTUAL PAYMENTS.  Punctually pay all principal, interest, fees or other liabilities due under any of the Loan Documents at the times and place and in the manner specified therein, and immediately upon demand by Bank, the amount by which the outstanding principal balance of any credit subject hereto at any time exceeds any limitation on borrowings applicable thereto.

 

SECTION 4.2     ACCOUNTING RECORDS.  Maintain adequate books and records in accordance with Generally Accepted Accounting Principles, consistently applied, and permit any representative of Bank, at any reasonable time, to inspect, audit and examine such books and records, to make copies of the same, and to inspect the properties of Borrower.

 

SECTION 4.3     BUSINESS CONTINUITY.  Conduct its business in substantially the same manner and locations as such business is now and has previously been conducted.

 

SECTION 4.4     FINANCIAL STATEMENTS.  Provide to Bank, in form and detail satisfactory to Bank, due no later than each May 15th, company prepared financial statements reflecting its operations during such period, including, without limitation, a balance sheet, profit and loss statement, statement of cash flows, and disclosure of contingent liabilities, with supporting schedules; and in reasonable detail, prepared  on a basis consistent with that of the preceding year.  Such statements shall be certified as to their correctness by a principal financial officer of Borrower.

 

SECTION 4.5     TAX RETURNS.  Provide to Bank, in form and detail satisfactory to Bank, within 30 days of filing or by November 15th of each year, whichever is earlier, complete copies of Borrower's federal tax returns, together with all schedules thereto, including, without limitation all K-1 statements, each of which shall be signed and certified by Borrower to be true and complete copies of such returns.

SECTION 4.6     OTHER FINANCIAL INFORMATION.  Provide to Bank, in form and detail satisfactory to Bank, promptly such other information regarding the operation, business affairs, and financial condition of Borrower which Bank may reasonably request.

 

SECTION 4.7     NOTICE OF DEFAULT AND OTHER NOTICES.

 

(a)   Notice of Default.  Furnish to Bank immediately upon becoming aware of the existence of any condition or event which constitutes an Event of Default (as defined in the Loan Documents) or any event which, upon the giving of notice or lapse of time or both, may become an Event of Default, written notice specifying the nature and period of existence thereof and the action which Borrower is taking or proposes to take with respect thereto.

 

(b)   Other Notices.  Promptly notify Bank in writing of (i) any material adverse change in its financial condition or its business; (ii) any default under any agreement, contract or other instrument to which it is a party or by which any of its properties are bound, or any acceleration of the maturity of any indebtedness owing by Borrower; (iii) any material adverse claim against or affecting Borrower or any part of its properties; (iv) the commencement of, and any material determination  in, any litigation with any third party or any proceeding  before any  governmental  agency  or unit

 

 

	
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affecting Borrower; (v) at least 30 days prior thereto, any change in Borrower's name or address as shown herein, and/or any change in Borrower's structure; or (vi) any termination or cancellation of any insurance policy which Borrower is required to maintain, or any uninsured or partially uninsured loss through liability or property damage, or through fire, theft or any other cause affecting Borrower's property in excess of an aggregate of $25,000.00.

 

SECTION 4.8     COMPLIANCE.  Preserve and maintain all licenses, permits,  governmental  approvals,  rights, privileges and franchises necessary for the conduct of its business; and comply with the provisions of all documents pursuant to which Borrower is organized and/or which govern Borrower's continued existence and with the requirements of all laws, rules, regulations and orders of any governmental authority applicable to Borrower and/or its business.

 

SECTION 4.9     INSURANCE.  Maintain and keep in force, for each  business in which Borrower is engaged, insurance of the types and in amounts customarily carried in similar lines of business, including but not limited to fire, extended coverage, public liability, flood, and, if required, seismic property damage and workers' compensation, with all such insurance carried with companies and in amounts satisfactory to Bank, and deliver to Bank from time to time at Bank's request schedules setting forth all insurance then in effect, together with a lender's loss payee endorsement for all such insurance naming Bank as a lender loss payee.

 

SECTION 4.10   TAXES AND OTHER LIABILITIES.  Pay and discharge when due any and all indebtedness, obligations, assessments and taxes, both real or personal, including without limitation federal and state income taxes and state and local property taxes and assessments, except (a) such as Borrower may in good faith contest or as to which a bona fide dispute may arise, and (b) for which Borrower has made provision, to Bank's satisfaction, for eventual payment thereof in the event Borrower is obligated to make such payment.

SECTION 4.11   DEPOSIT RELATIONSHIP.  Maintain its primary depository account with Bank.

 

SECTION 4.12   ADDITIONAL THIRD PARTY FEES.  Pay any and all third party fees incurred by Bank  in connection with the credit facilities hereunder.

 

ARTICLE V 

 

NEGATIVE COVENANTS

 

Borrower further covenants that so long as Bank remains committed to extend credit to Borrower pursuant hereto, or any liabilities (whether direct or contingent, liquidated or unliquidated) of Borrower to Bank under any of the Loan Documents remain outstanding, and until payment in full of all obligations of Borrower subject hereto, Borrower will not without Bank's prior written consent:

 

SECTION 5.1     USE OF FUNDS.  Use any of the proceeds of any credit extended hereunder except for the purposes stated in Article I hereof.

 

SECTION 5.2     OTHER INDEBTEDNESS.  Create, incur, assume or permit to exist any indebtedness or liabilities resulting from borrowings, loans or advances, whether secured or unsecured, matured or unmatured, liquidated or unliquidated, joint or several, direct or indirect, except (a) the  liabilities of Borrower to Bank, and (b) any other liabilities of Borrower existing as of, and disclosed to Bank prior to, the date hereof, (c) purchase money indebtedness (including capitalized leases) for the acquisition of fixed assets, provided that total purchase money indebtedness does not exceed $100,000.00 at any time outstanding; and (d) additional indebtedness or liabilities in an aggregate amount not to exceed $100,000.00 at any time.

 

SECTION 5.3     GUARANTIES.  Guarantee or become liable in any way as  surety,  endorser  (other  than  as endorser of negotiable instruments for deposit or collection in the ordinary course of business), accommodation endorser or otherwise for, nor  pledge or hypothecate any assets of Borrower as security for, any liabilities or obligations of any other person or entity, except any of the foregoing in favor of Bank.

 

SECTION 5.4     PLEDGE OF ASSETS.  Mortgage, pledge, grant or permit to exist a security interest in, or lien upon, all or any portion of Borrower's assets now owned or hereafter acquired, except (a) any of the foregoing in favor of Bank, (b) any of the foregoing which is existing as of, and disclosed to Bank in writing prior to, the date

 

 

	
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hereof, (c) security interests or liens which secure purchase money indebtedness otherwise allowed under this Agreement, and (d) any lien securing obligations incurred after the date hereof  in an amount not to exceed $100,000.00 in the aggregate at any time.

  

SECTION 5.5     GOVERNMENT INTERVENTION.  Permit the assertion or making of any seizure, vesting or intervention by or under authority of any governmental entity, as a result of which the management of Borrower or any guarantor is displaced of its authority in the conduct of its respective business or such business is curtailed or materially impaired.

 

ARTICLE VI 

 

EVENTS OF DEFAULT

 

SECTION 6.1     The occurrence of any of the following shall constitute an "Event of Default" under this Agreement:

 

(a)   Borrower shall fail to pay when due any principal, interest, fees or other amounts payable under any of the Loan Documents.

 

(b)   Any financial statement or certificate furnished to Bank in connection with, or any representation or warranty made by Borrower or any other party under this Note or any other Loan Document shall prove to be incorrect, false or misleading in any material respect when furnished or made.

 

(c)   Any default in the performance of or compliance with any obligation, agreement or other provision contained herein or in any other Loan Document (other than those specifically described as an "Event of Default" in this Note or in collateral value requirements under any Loan Document), and with respect to any such default that by its nature can be cured, such default shall continue for a period of twenty (20) days from its occurrence; provided that the foregoing cure period shall only be available once during each 12 month period for each such obligation, agreement or provision.

 

(d)   Any default in the payment or performance of any obligation, or any defined event of default, under the terms of any contract, instrument or document (other than any of the Loan Documents) pursuant to which Borrower, any guarantor hereunder or any general partner or joint venturer in Borrower if a partnership or joint venture (with each such guarantor, general partner, and/or joint venturer referred to herein as a "Third Party Obligor") has incurred any debt or other liability to any person or entity, including Bank.

 

(e)   Borrower or any Third Party Obligor shall become insolvent, or shall suffer or consent to or apply for the appointment of a receiver, trustee, custodian or liquidator of itself or any of its property, or shall generally fail to pay its debts as they become due, or shall make a general assignment for the benefit of creditors; Borrower or any Third Party Obligor shall file a voluntary petition in bankruptcy, or seeking reorganization, in order to effect a plan or other arrangement with creditors or any other relief under the Bankruptcy Reform Act, Title 11 of the United States Code, as amended or recodified from time to time ("Bankruptcy Code"), or under any state or federal law granting relief to debtors, whether now or hereafter in effect; or Borrower or any Third Party Obligor shall file an answer admitting the jurisdiction of the court and the material allegations of any involuntary petition; or Borrower or any Third Party Obligor shall be adjudicated a bankrupt, or an order for relief shall be entered against Borrower or any Third Party Obligor by any court of competent jurisdiction under the Bankruptcy Code or any other applicable state or federal law relating to bankruptcy, reorganization or other relief for debtors.

 

(f)   The filing of a notice of judgment lien against Borrower or any Third Party Obligor; or the recording of any abstract of judgment against Borrower or any Third Party Obligor in any county in which Borrower or such Third Party Obligor has an interest in real property; or the service of a notice of levy and/or of a writ of attachment or execution, or other like process, against the assets of Borrower or any Third Party Obligor; or the entry of a judgment against Borrower or any Third Party Obligor; or any involuntary petition or proceeding pursuant to the Bankruptcy Code or any other applicable state or federal law relating to bankruptcy, reorganization or other relief for debtors is filed or commenced against Borrower or any Third Party Obligor.

 

(g)   There shall exist or occur any event or condition that Bank in good faith believes impairs, or is substantially likely to impair, the prospect of payment or performance by Borrower, any Third Party Obligor, or the general partner of either if such entity is a partnership, of its obligations under any of the Loan Documents.

 

 

	
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(h)   The death or incapacity of Borrower or any Third Party Obligor if an individual. The dissolution or liquidation of Borrower or any Third Party Obligor if a corporation, partnership, joint venture or other type of entity; or Borrower or any such Third Party Obligor, or any of its directors, stockholders or members, shall take action seeking to effect the dissolution or liquidation of Borrower or such Third Party Obligor.

 

(i)   Any change in control of Borrower or any entity or combination of entities that directly or indirectly control Borrower, with "control" defined as ownership of an aggregate of twenty five percent (25%) or more of the common stock, members' equity or other ownership interest (other than a limited partnership interest).

 

(j)   Any sale, lease, transfer or other disposition (including, without limitation, transfers to a trust or other entity for estate planning purposes), except in the ordinary course of its business, of all or a substantial or material portion of the assets of Borrower or any Third Party Obligor.

 

SECTION 6.2     REMEDIES.  Upon the occurrence  of any  Event of Default:  (a) all principal and accrued  and unpaid interest outstanding under each of the Loan Documents, any term thereof to the contrary notwithstanding, shall at Bank's option and without notice become immediately due and payable without presentment, demand, or any notices of any kind, including without limitation notice of nonperformance, notice of protest, protest, notice  of dishonor, notice of intention to accelerate or notice of acceleration, all of which are hereby expressly waived by Borrower; (b) the obligation, if any, of Bank to extend any further credit under any of the Loan Documents shall immediately cease and terminate; and (c) Bank shall have all rights, powers and remedies available under each of the Loan Documents, or accorded by law, including without limitation the right to resort to any or all security for any credit subject hereto and to exercise any or all of the rights of a beneficiary or secured party pursuant to applicable law. All rights, powers and remedies of Bank may be exercised at any time by Bank and from time to time after the occurrence of an Event of Default, are cumulative and not exclusive, and shall be in addition to any other rights, powers or remedies provided by law or equity.

 

ARTICLE VII 

MISCELLANEOUS

 

SECTION 7.1     NO WAIVER. No delay, failure or discontinuance of Bank in exercising any right, power or remedy under any of the Loan Documents shall affect or operate as a waiver of such right, power or remedy; nor shall any single or partial exercise of any such right, power or remedy preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any other right, power or remedy. Any waiver, permit, consent or approval of any kind by Bank of any breach of or default under any of the Loan Documents must be in writing and shall be effective only to the extent set forth in such writing.

SECTION 7.2     NOTICES.  All notices, requests and demands which any party is required or may desire to give to any other party under any provision of this Agreement must be in writing delivered to each party at the following address:

 

	BORROWER:	Spine Pain Management, Inc.
	 	
5225 Katy Fwy. Suite 600

	 	
Houston, TX 77007

 

	BANK:	Wells Fargo Bank, National Association
	 	
Private Banking - Houston

	 	
1000 Louisiana St. 2nd Floor

Houston, TX 77002

 

or to such other address as any party may designate by written notice to all other parties. Each such notice, request and demand shall be deemed given or made as follows: (a) if sent by hand delivery, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3) days after deposit in the U.S. mail, first class and postage prepaid; and (c) if sent by telecopy, upon receipt.

 

SECTION 7.3     COSTS, EXPENSES AND ATTORNEYS' FEES.  Borrower shall pay to Bank immediately upon demand the full amount of all payments, advances, charges, costs and expenses, including reasonable attorneys' fees (to include outside counsel fees and all allocated costs of Bank's in-house counsel to the extent permissible),

 

 

	
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Loan Documents, Bank's continued administration hereof and thereof, and the preparation of any amendments and waivers hereto and thereto, (b) the enforcement of Bank's rights and/or the collection of any amounts which become due to Bank under any of the Loan Documents, and (c) the prosecution or defense of any action in any way related to any of the Loan Documents, including without limitation, any action for declaratory relief, whether incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank or any other person) relating to Borrower or any other person or entity.

 

SECTION 7.4     SUCCESSORS, ASSIGNMENT.  This Agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, legal representatives, successors and assigns of the parties; provided however, that Borrower may not assign or transfer its interests or rights hereunder without Bank's prior written consent. Bank reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Bank's rights and benefits under each of the Loan Documents. In connection therewith, Bank may disclose all documents and  information which Bank now has or may hereafter acquire relating to any credit subject hereto, Borrower or its business, any guarantor hereunder or the business of such guarantor, or any collateral required hereunder.

 

SECTION 7.5     AMENDMENT.  This Agreement may be amended or modified only in writing signed by each party hereto.

 

SECTION 7.6     NO THIRD PARTY BENEFICIARIES.  This Agreement is made and entered into for the sole protection and benefit of the parties hereto and their respective permitted successors and assigns, and no other person or entity shall be a third party beneficiary of, or have any direct or indirect cause of action or claim in connection with, this Agreement or any other of the Loan Documents to which it is not a party.

 

SECTION 7.7     TIME.  Time is of the essence of each and every provision of this Agreement and each other of the Loan Documents.

 

SECTION 7.8     SEVERABILITY OF PROVISIONS.  If any provision of this Agreement shall be prohibited by or invalid und.er applicable  law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or any remaining provisions of this Agreement.

 

SECTION 7.9     OBLIGATION JOINT AND SEVERAL.  The obligations of Borrower under this Agreement and the other Loan Documents to which borrower is a party shall be joint and several with all other obligors hereof and thereof.

 

SECTION 7.10   COUNTERPARTS.  This Agreement may be executed in any  number of counterparts,  each of which when executed and delivered shall be deemed to be an original, and all of which when taken together shall constitute one and the same Agreement.

 

SECTION 7.11   GOVERNING LAW.  This Agreement shall be governed by and construed in accordance with the laws of the State of Texas.

 

SECTION 7.12   SAVINGS CLAUSE.   It is the intention of the parties to comply strictly with applicable usury laws. Accordingly, notwithstanding any provision to the contrary in the Loan Documents, ·in no event shall any of the Loan Documents require the payment or permit the payment, taking, reserving, receiving, collection or charging of any sums constituting interest under applicable laws that exceed the maximum amount permitted by such laws, as the same may be amended or modified from time to time (the "Maximum Rate").  If any such excess interest is called for, contracted for,  charged,  taken,  reserved or  received  in connection with  any of the  Loan Documents,  or in any communication by Bank or any other person to Borrower or any other person, or in the event that all or part of the principal or interest hereof or thereof shall be prepaid or accelerated, so that under any of such circumstances or under any other circumstance whatsoever the amount of interest contracted for, charged, taken, reserved or received on the amount of  principal actually  outstanding  from  time to time  under the Loan Documents shall exceed the Maximum Rate, then in such event it is agreed that: (a) the provisions of this paragraph shall govern and control; (b) neither Borrower nor any other person or entity now or hereafter liable for the payment of any of the Loan Documents shall be obligated to pay the amount of such interest to the extent it is in excess of the Maximum Rate; (c) any such excess interest which is or has been received by Bank, notwithstanding this paragraph, shall be credited against the then unpaid principal balance hereof or thereof, or if any of the Loan Documents has been or would be paid in full by

 

 

	
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such credit, refunded to Borrower; and (d) the prov1s1ons of each of the Loan Documents, and any other communication to Borrower, shall immediately be deemed reformed and such excess interest reduced, without the necessity of executing any other document, to the Maximum Rate. The right to accelerate the maturity of the Loan Documents does not include the right to accelerate, collect or charge unearned interest, but only such interest that has otherwise accrued as of the date of acceleration. Without limiting the foregoing, all calculations of the rate of interest contracted for, charged, taken, reserved or received in connection with any of the Loan Documents which are made for the purpose of determining whether such rate exceeds the Maximum Rate shall be made to the extent permitted by applicable laws by amortizing, prorating, allocating and spreading during the period of the full term of such Loan Documents, including all prior and subsequent renewals and extensions hereof or thereof, all interest at any time contracted for, charged, taken, reserved or received by Bank. The terms of this paragraph shall be deemed to be incorporated into each of the other Loan Documents.

 

To the extent that' either Chapter 303 or 306, or both, of the Texas Finance Code apply in determining the Maximum Rate, Bank hereby elects to determine the applicable rate ceiling by using the weekly ceiling from time to time in effect, subject to Bank's right subsequently to change such method in accordance with applicable law, as the same may be amended or modified from time to time.

 

SECTION 7.13   RIGHT OF SETOFF; DEPOSIT ACCOUNTS.  Upon and after the occurrence  of an  Event of Default, (a) Borrower hereby authorizes Bank, at any time and from time to time, without notice, which is hereby expressly waived by Borrower, and whether or not Bank shall have declared any credit subject hereto to be due and payable in accordance with the terms  hereof, to set off against, and to appropriate and apply to the payment of, Borrower's obligations and liabilities under the Loan Documents (whether matured or unmatured, fixed or contingent, liquidated or unliquidated), any and all amounts owing by Bank to Borrower (whether payable in U.S. dollars or any other currency, whether matured or unmatured, and in the case of deposits, whether general or special (except trust and escrow accounts), time or demand and however evidenced), and (b) pending any such action, to the extent necessary, to hold such amounts as collateral to secure such obligations and liabilities and to return as unpaid for insufficient funds any and all checks and other items drawn against any deposits so held as Bank, in its sole discretion, may elect. Borrower hereby grants to Bank a security interest in all deposits and accounts maintained with Bank and with any other financial institution to secure the payment of all obligations and liabilities of Borrower to Bank under the Loan Documents.

 

SECTION 7.14   BUSINESS PURPOSE.  Borrower represents and warrants that each credit subject hereto is for a business, commercial, investment, agricultural, or other similar purpose and not primarily for a personal, family or household use.

 

SECTION 7.15   ARBITRATION.

 

(a)   Arbitration.  The parties hereto agree, upon demand by any party, to submit to binding arbitration all claims, disputes and controversies between or among them (and their respective employees, officers, directors, attorneys, and other agents), whether in tort, contract or otherwise in any way arising out of or relating to (i) any credit subject hereto, or any of the Loan Documents, and their negotiation, execution, collateralization, administration, repayment, modification, extension, substitution, formation, inducement, enforcement, default or termination; or (ii) requests for additional credit. In the event of a court ordered arbitration, the party requesting arbitration shall be responsible for timely filing the demand for arbitration and paying the appropriate filing fee within 30 days of the abatement order or the time specified by the court. Failure to timely file the demand for arbitration as ordered by the court will result in that party's right to demand arbitration being automatically terminated.

(b)   Governing Rules.  Any arbitration proceeding will (i) proceed in a location in Texas selected by the American. Arbitration Association ("AAA"); (ii) be governed by the Federal Arbitration Act (Title 9 of the United States Code), notwithstanding  any conflicting  choice of law provision in any of the documents  between the parties; and (iii) be conducted by the AAA, or such other administrator as the parties shall mutually agree upon, in accordance with the AAA's  commercial  dispute  resolution  procedures,  unless  the  claim  or  counterclaim  is  at  least  $1,000,000.00 exclusive  of  claimed  interest,  arbitration  fees  and  costs  in  which  case  the  arbitration  shall  be  conducted  in accordance  with  the AAA's  optional  procedures for  large, complex  commercial  disputes  (the commercial  dispute resolution procedures or the optional procedures for large, complex commercial disputes to be referred to herein, as applicable, as the "Rules").   If there is any inconsistency  between the terms hereof and the Rules, the terms and procedures set forth herein shall control.  Any party who fails or refuses to submit to arbitration following a demand by any other party shall bear all costs and expenses incurred by such other party in compelling arbitration of any

 

 

	
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dispute. Nothing contained herein shall be deemed to be a waiver by any party that is a bank of the protections afforded to it under 12 U.S.C. §91 or any similar applicable state law.

 

(c)   No Waiver of Provisional Remedies. Self-Help and Foreclosure.  The arbitration requirement does not limit the right of any party to (i) foreclose against real or personal property collateral; (ii) exercise self-help remedies relating to collateral or proceeds of collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such as replevin, injunctive relief, attachment or the appointment of a receiver, before during or after the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of any party to submit any dispute to arbitration or reference hereunder, including those arising from the exercise of the actions detailed in sections (i), (ii) and (iii) of this paragraph.

 

(d)   Arbitrator Qualifications and Powers.  Any arbitration proceeding in which the amount  in controversy is $5,000,000.00 or less will be decided by a single arbitrator selected according to the Rules, and who shall not render an award of greater than $5,000,000.00. Any dispute in which the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote of a panel of three arbitrators; provided however, that all three arbitrators must actively participate in all hearings and deliberations. The arbitrator will be a neutral attorney licensed in the State of Texas with a minimum of ten years experience in the substantive law applicable to the subject matter of the dispute to be arbitrated. The arbitrator will determine whether or not an issue is arbitratable and will give effect to the statutes of limitation in determining any claim. In any arbitration proceeding the arbitrator will decide (by documents only or with a hearing at the arbitrator's discretion) any pre-hearing motions which are similar to motions to dismiss for failure to state a claim or motions for summary adjudication. The arbitrator shall resolve all disputes  in accordance with the substantive law of Texas and may grant any remedy or relief that a court of such state could order or grant within the scope hereof and such ancillary relief as is necessary to make effective any award. The arbitrator shall also have the power to award recovery of all costs and fees, to impose sanctions and to take such other action as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the Texas Rules of Civil Procedure or other applicable law. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The institution and maintenance of an action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a waiver of the right of any party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests such action for judicial relief.

 

(e)   Discovery.  In any arbitration proceeding, discovery will be permitted in accordance with the Rules. All discovery shall be expressly limited to matters directly relevant to the dispute being arbitrated and must be completed no later than 20 days before the hearing date. Any requests for an extension of the discovery periods, or any discovery disputes, will be subject  to final determination by the arbitrator upon a showing that the request for discovery is essential for the party's presentation and that no alternative means for obtaining information is available.

 

(f)   Class Proceedings and Consolidations.  No party hereto shall be entitled to join or consolidate disputes by or against others in any arbitration, except parties who have executed any Loan Document, or to include in any arbitration any dispute as a representative or member of a class, or to act in any arbitration in the interest of the general public or in a private attorney general capacity.

 

(g)   Payment Of Arbitration Costs And Fees.  The arbitrator shall award all costs and expenses of the arbitration proceeding.

 

(h)   Miscellaneous.  To the maximum extent practicable, the AAA, the arbitrators and the parties shall take all action required to conclude any arbitration proceeding within 180 days of the filing of the dispute with the AAA. No arbitrator or other party to an arbitration proceeding may disclose the existence, content or results thereof, except for disclosures of information by a party required in the ordinary course of its business or by applicable law or regulation. If more than one agreement for arbitration by or between the parties potentially applies to a dispute, the arbitration provision most directly related to the Loan Documents or the subject matter of the dispute shall control. This arbitration provision shall survive termination, amendment or expiration of any of the Loan Documents or any relationship between the parties.

 

(i)   Small Claims Court.  Notwithstanding anything herein to the contrary, each party retains the right to pursue in Small Claims Court any dispute within that court's jurisdiction. Further, this arbitration provision shall apply only to disputes in which either party seeks to  recover an amount of money (excluding attorneys' fees and costs) that exceeds the jurisdictional limit of the Small Claims Court.

 

 

	
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NOTICE: THIS DOCUMENT AND ALL OTHER DOCUMENTS RELATING TO THE INDEBTEDNESS CONSTITUTE A WRITTEN LOAN AGREEMENT WHICH REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES RELATING TO THE INDEBTEDNESS.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first written above.

 

Spine Pain Management, Inc.

 

By:  /s/ William F. Donovan, President

William F. Donovan, President

 

Wells Fargo Bank, National Association

 

By:  /s/ Matt Milner

Matt Milner, Senior Private Banker

 

	
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0007204, #7829235617EX-10.1

 Exhibit 10.1 

Execution Version 

AMENDMENT NO. 2 TO 5-YEAR CREDIT AGREEMENT 

This Amendment No. 2 to 5-Year Credit Agreement (this “Agreement”) dated as of May 12, 2015 (the “Effective
Date”) is among National Oilwell Varco, Inc. (the “Borrower”), the Lenders party hereto, the Issuing Lenders party hereto, the Swingline Lenders party hereto, and Wells Fargo Bank, National Association, as administrative
agent (in such capacity, the “Administrative Agent”). 
 RECITALS 

A. The Borrower, the Administrative Agent, the issuing lenders party thereto from time to time (“Issuing Lenders”) the
lenders party thereto from time to time (“Lenders”), the swing line lenders party thereto from time to time (“Swingline Lenders”) and the Administrative Agent are parties to that certain 5-Year Credit Agreement
dated as of September 28, 2012 (as previously amended, and as further amended, restated, supplemented or otherwise modified, the “Credit Agreement”). 

B. The Borrower has requested that (i) the Lenders set forth on Schedule A attached hereto increase their respective Revolving
Commitments (as defined in the Credit Agreement) pursuant to Section 2.15 of the Credit Agreement (such Lenders, the “Subject Lenders”) and (ii) the Majority Lenders (as defined in the Credit Agreement) make certain other
amendments as provided herein and subject to the terms and conditions set forth herein. 
 NOW, THEREFORE, the parties hereto hereby agree
as follows: 
 Section 1. Defined Terms; Other Definitional Provisions. As used in this Agreement, each of the
terms defined in the opening paragraph and the Recitals above shall have the meanings assigned to such terms therein. Each term defined in the Credit Agreement and used herein without definition shall have the meaning assigned to such term in the
Credit Agreement, unless expressly provided to the contrary. The words “hereof”, “herein”, and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement. The term “including” means “including, without limitation,”. Paragraph headings have been inserted in this Agreement as a matter of convenience for reference only and it is agreed that such
paragraph headings are not a part of this Agreement and shall not be used in the interpretation of any provision of this Agreement. 

Section 2. Increase in Revolving Commitments. Each Subject Lender hereby agrees and acknowledges that their
respective Revolving Commitments shall be increased by the amount set forth next to their respective names under the caption “Increase Amount” on Schedule A attached hereto. After giving effect to the foregoing increases, each of
the Lenders’ respective Revolving Commitments shall be the amount set forth next to their respective names under the caption “Revolving Commitments” on Schedule 1.1(a) attached hereto. Each Lender’s share of the
Letter of Credit Exposure on the Effective Date shall automatically be deemed to equal such Lender’s applicable pro rata share of such Letter of Credit Obligations (such pro rata share for such Lender to be determined as of the Effective Date
in accordance with its Revolving Commitment on such date as a percentage of the aggregate Revolving Commitment on such date) without further action by any party. 

 Section 3. Amendments to Credit Agreement. 

(a) The cover page to the Credit Agreement is hereby amended by replacing the reference to “$3,500,000,000” contained
therein with “$4,500,000,000”. 
 (b) Section 1.1 (Certain Defined Terms) of the Credit Agreement
is hereby amended by deleting the definition of “Sanctioned Entity” in its entirety. 
 (c) Section 1.1
(Certain Defined Terms) of the Credit Agreement is hereby further amended by deleting the definitions of “DNB Markets Fee Letter”, “Eurocurrency Adjusted Base Rate”, “FATCA”, “Issuing
Lender”, “Revolving Commitment”, “Sanctioned Person” and “Wells Fargo Fee Letter” in their entirety and replacing them with the following corresponding definitions: 

“DNB Markets Fee Letter” means (a) the letter agreement dated as of September 4, 2012 between the Borrower and
DNB Markets, Inc., and (b) the letter agreement dated as of April 20, 2015 between the Borrower and DNB Markets, Inc., in each case as modified or amended from time to time. 

“Eurocurrency Adjusted Base Rate” means, the rate per annum (rounded upward to the nearest whole multiple of 1/100th of 1%)
equal to the rate for deposits in the relevant currency (for delivery on the first day of such Interest Period) appearing on the Reuters “LIBOR01” screen (or on any successor or substitute screen provided by Reuters, or any successor to or
substitute for such service, providing rate quotations comparable to those currently provided on such screen), as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to deposits
in the relevant currency for delivery on the first day of such Interest Period in immediately available funds in the approximate amount of the Eurocurrency Rate Advance being made, continued or converted by the Administrative Agent and with a term
equivalent to such Interest Period would be offered by the Administrative Agent’s London Branch (or other branch or Affiliate of the Administrative Agent) to major banks in the London interbank market for such currency or, if such market is
unavailable, then the principal offshore interbank market for such currency at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period; provided that, in each case, if such rate is
less than zero, such rate shall be deemed to be zero for purposes of this Agreement. 
 “FATCA” means Sections 1471 through
1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any
agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code and any law, regulation or practice adopted pursuant to any such
intergovernmental agreement. 

  
 -2- 

 “Issuing Lender” means (a) with respect to each Existing Letter of
Credit, the Lender that issued such Letter of Credit, (b) with respect to all other Letters of Credit, (i) Wells Fargo, (ii) DNB Bank ASA, New York Branch, (iii) Barclays Bank plc, (iv) JPMorgan Chase Bank, N.A.,
(v) Citibank, N.A., and (vi) The Bank of Tokyo-Mitsubishi UFJ, Ltd., each in their respective capacity as an issuer of Letters of Credit hereunder, and (c) any Lender acting as a successor issuing lender pursuant to Section 8.6.

 “Revolving Commitment” means, with respect to any Lender, the amount set opposite such Lender’s name on
Schedule 1.1(a) as its Revolving Commitment, or if such Lender has entered into any Assignment and Acceptance or such Lender is an Additional Lender, the amount set forth for such Lender as its Revolving Commitment in the Register maintained by
the Administrative Agent pursuant to Section 9.6(d), as such amount may be reduced pursuant to Section 2.4. 

“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons
maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, or by the Canadian Governmental Authority, the United Nations Security Council, the European Union, any European Union member
state, or Her Majesty’s Treasury of the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses
(a) or (b). 
 “Wells Fargo Fee Letter” means (a) the letter agreement dated as of September 4, 2012
among the Borrower, Wells Fargo and Wells Fargo Securities, LLC and (b) the letter agreement dated as of April 20, 2015 among the Borrower, Wells Fargo and Wells Fargo Securities, LLC, in each case, as modified or amended from time to
time. 
 (d) Section 1.1 (Certain Defined Terms) of the Credit Agreement is hereby further amended by inserting the
following new definitions in the appropriate alphabetical order: 
 “Amendment No. 2 Effective Date” means
May 12, 2015. 
 “Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to
the Borrower or any of its Subsidiaries from time to time concerning or relating to bribery or corruption. 
 “Letter of
Credit Maximum Amount” means (a) as to all the Issuing Lenders in the aggregate, $2,500,000,000, and (b) with respect to each Issuing Lender, a sublimit thereof as agreed between such Issuing Lender and the Borrower from time to
time; provided that, on and after the Maturity Date, the Letter of Credit Maximum Amount shall be zero. As of the Amendment No. 2 Effective Date, the individual sublimits are as follows: 

 

					
	 Issuing Lender
	  	Sublimit	 
	 Wells Fargo
	  	$	850,000,000	  
	 DNB Bank ASA, New York Branch
	  	$	850,000,000	  
	 Barclays Bank plc
	  	$	200,000,000	  
	 JPMorgan Chase Bank, N.A.
	  	$	200,000,000	  
	 Citibank, N.A.
	  	$	200,000,000	  
	 The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	  	$	200,000,000	  

  
 -3- 

 “Sanctioned Country” means, at any time, a country or territory which is
itself the subject or target of any Sanctions. 
 “Sanctions” means all economic or financial sanctions or trade
embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, (b) the
United Nations Security Council, the European Union, any European Union member or Her Majesty’s Treasury of the United Kingdom or (c) the Canadian Governmental Authority. 

(e) Section 2.11 (Taxes) of the Credit Agreement is hereby amended by inserting the following new clause (j) in the
appropriate numerical order: 
 (j) For purposes of determining withholding Taxes imposed under FATCA, from and after the Amendment
No. 2 Effective Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Agreement as not qualifying as a “grandfathered obligation” within the meaning of
Treasury Regulation Section 1.1471-2(b)(2)(i). 
 (f) Section 2.13 (Letters of Credit) of the Credit Agreement is
hereby amended by deleting clause (b) in its entirety and replacing it with the following: 
 (b) Limitations. No Letter of
Credit will be issued (or deemed issued as to the Existing Letters of Credit), increased, or extended (i) if such issuance, increase, or extension would cause the sum of the Letter of Credit Exposure plus the aggregate Dollar Amount of
all outstanding Revolving Advances and Swingline Advances at such time to exceed the Letter of Credit Maximum Amount; (ii) unless such Letter of Credit has an Expiration Date not later than the earlier of (A) sixty months after the date of
issuance thereof and (B) twenty-four months after the Maturity Date; (iii) unless such Letter of Credit (or, if applicable, the amendment to a Letter of Credit) is in form and substance acceptable to the applicable Issuing Lender in its
sole discretion; (iv) unless the Borrower has delivered to the applicable Issuing Lender a completed and executed letter of credit application on such Issuing Lender’s standard form, which shall contain terms no more restrictive than the
terms of this Agreement; (v) unless such Letter of Credit is governed by the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600 (“UCP”), the
International Standby Practices (ISP 98), International Chamber of Commerce Publication No. 590 (“ISP”) or any successor to the UCP or ISP and, to the extent not inconsistent therewith, the New York Uniform

  
 -4- 

 
Commercial Code, as in effect from time to time; or (vi) if any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain an
Issuing Lender from issuing or providing such Letter of Credit, or any Legal Requirements applicable to such Issuing Lender shall prohibit the issuance or provision of such type of Letter of Credit generally or such Letter of Credit in particular or
shall impose upon such Issuing Lender with respect to such Letter of Credit any restriction, reserve or capital requirement (for which such Issuing Lender is not otherwise compensated hereunder) not in effect on the date hereof or shall impose upon
such Issuing Lender any unreimbursable loss, cost or expense which was not applicable on the date hereof and which such Issuing Lender in good faith deems material. If the terms of any letter of credit application referred to in the foregoing
clause (iv) conflicts with the terms of this Agreement, the terms of this Agreement shall control. 
 (g) Section 2.15
(Increase of Revolving Commitment) of the Credit Agreement is hereby amended by deleting such section in its entirety and replacing it with “[Reserved]”.  

(h) Section 4.18 (OFAC; Anti-Terrorism) of the Credit Agreement is hereby amended by deleting it in its entirety and
replacing it with the following: 
 Section 4.18 Anti-Corruption Laws and Sanctions. The Borrower and its Subsidiaries
and to the knowledge of the Borrower and its Subsidiaries, their respective directors, officers, agents and employees are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of (a) the Borrower, any
Subsidiary or to the knowledge of the Borrower or such Subsidiary any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, any agent of the Borrower or any Subsidiary that will act in any capacity in
connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No Borrowing or Letter of Credit, use of proceeds or other transaction contemplated by this Agreement will violate any Anti-Corruption Law or applicable
Sanctions. 
 (i) Section 5.1 (Compliance with Laws, Etc.) of the Credit Agreement is hereby amended by inserting the
following new sentence at the end of such section: 
 Borrower will maintain in effect and enforce policies and procedures designed
and reasonably intended to procure compliance, in all material respects, by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. 

(j) Article VI (Negative Covenants) of the Credit Agreement is hereby amended by inserting the following new Section 6.9 in
the appropriate numerical order: 
 Section 6.9 Use of Proceeds. Borrower will not, and will not permit any Subsidiary
to (a) directly or, to the knowledge of Borrower or any Subsidiary, indirectly, use the proceeds of any Borrowing or LC Credit Extension, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or
any other Person, to fund any activities of or business with any 

  
 -5- 

 
Person, or in any Sanctioned Country, that, at the time of such funding, is the subject of any Sanction, or in any other manner that will result in a violation by the Borrower, any Subsidiary,
any Arranger, or any Lender, Administrative Agent, Letter of Credit Issuer, Swing Line Lender, or other party to the Credit Agreement, of Sanctions, or (b) directly or, to the knowledge of Borrower or any Subsidiary, indirectly, use the
proceeds of any Borrowing or Letter of Credit for any purpose which would breach any Anti-Corruption Laws. 
 (k) Schedule 1.1(a)
to the Credit Agreement is hereby deleted in its entirety and replaced with the Schedule 1.1(a) attached hereto. 

Section 4. Representations and Warranties. Borrower represents and warrants that: (a) the
representations and warranties contained in the Credit Agreement are true and correct in all material respects, except to the extent that such representations and warranties expressly relate solely to an earlier date, in which case they are true and
correct all material respects as of such earlier date; and (b) the execution, delivery and performance of this Agreement are within the Borrower’s corporate authority and have been duly authorized by appropriate governing action and
proceedings, and this Agreement constitutes the legal, valid, and binding obligation of the Borrower enforceable in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws
affecting the rights of creditors generally and general principles of equity. 
 Section 5. Condition to
Effectiveness. This Agreement shall become effective on the Effective Date and enforceable against the parties hereto and the other parties to the Credit Agreement upon the occurrence of the following conditions which may occur prior to or
concurrently with the closing of this Agreement: 
 (a) the Administrative Agent shall have received: 

(1)  (A) this Agreement executed by the Borrower, the Administrative Agent and the Majority Lenders, and (B) if
requested by a Lender, a new Revolving Note executed by a duly authorized officer of the Borrower reflecting the revised Revolving Commitment of such Lender as set forth on Schedule 1.1(a) attached hereto; 

(2) a certificate of a Responsible Officer of the Borrower stating that both before and after giving effect to the Commitment
Increase contemplated hereby (A) no Material Adverse Effect shall have occurred since December 31, 2014, (B) no Event of Default has occurred and is continuing and (C) all representations and warranties made by the Borrower in
the Credit Agreement are true and correct in all material respects, except to the extent that such representations and warranties expressly relate solely to an earlier date, in which case they are true and correct all material respects as of such
earlier date; and 
 (3) legal opinion of the general counsel of the Borrower, in form and substance satisfactory to the
Administrative Agent. 
 (b) The Borrower shall have paid (1) all fees and expenses of the Administrative Agent’s outside counsel
pursuant to all invoices presented for payment at least one Business Day prior to the Effective Date and (2) the fees as agreed to by the Borrower pursuant to the Fee Letters. 

  
 -6- 

 Section 6. Acknowledgments and Agreements. The Borrower
acknowledges that on the date hereof all outstanding Obligations are payable in accordance with their terms and the Borrower waives any defense, offset, counterclaim or recoupment with respect thereto. The Borrower, the Administrative Agent, the
Issuing Lenders party hereto and the Lenders party hereto do hereby adopt, ratify, and confirm the Credit Agreement, as amended hereby, and acknowledge and agree that the Credit Agreement, as amended hereby, is and remains in full force and effect,
and the Borrower acknowledges and agrees that its liabilities and obligations under the Credit Agreement are not impaired in any respect by this Agreement. From and after the Effective Date, all references to the Credit Agreement, shall mean the
Credit Agreement as amended by this Agreement. This Agreement is a Credit Document for the purposes of the provisions of the other Credit Documents. 

Section 7. Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be
an original and all of which, taken together, constitute a single instrument. This Agreement may be executed by facsimile signature or by other electronic submission and all such signatures shall be effective as originals. 

Section 8. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted pursuant to the Credit Agreement. 
 Section 9.
Invalidity. In the event that any one or more of the provisions contained in this Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not
affect any other provision of this Agreement. 
 Section 10. Governing Law. This Agreement shall be deemed
a contract under, and shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable to contracts made and to be performed entirely within such state, without regard to conflicts of laws principles
(other than Section 5-1401 and Section 5-1402 of the General Obligations Law of the State of New York). 
 Section 11.
Entire Agreement. THIS WRITTEN AGREEMENT AND THE CREDIT DOCUMENTS, AS DEFINED IN THIS AGREEMENT, REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. 
 [The remainder of this page has been left blank intentionally.] 

  
 -7- 

 EXECUTED to be effective as of the date first above written. 

 

			
	NATIONAL OILWELL VARCO, INC.
		
	By:		 /s/ Trevor Martin

			Trevor Martin
			Vice President & Treasurer

 Signature Page to Amendment No. 2 to 5-Year Credit Agreement 

(National Oilwell Varco, Inc.) 

 
			
	 WELLS FARGO BANK,

NATIONAL ASSOCIATION

	as Administrative Agent, a Swingline Lender, an Issuing Lender and a Lender
		
	By:		 /s/ W. Hunter Johnson

			W. Hunter Johnson
			Assistant Vice President

 Signature Page to Amendment No. 2 to 5-Year Credit Agreement 

(National Oilwell Varco, Inc.) 

 
			
	 DNB BANK ASA, NEW YORK BRANCH

as an Issuing Lender

		
	By:		 /s/ Nikolai A. Nachamkin

	Name:		Nikolai A. Nachamkin
	Title:		Senior Vice President
		
	By:		 /s/ Sybille Andaur

	Name:		Sybille Andaur
	Title:		Vice President
	
	 DNB BANK ASA, GRAND CAYMAN BRANCH

as a Swingline Lender

		
	By:		 /s/ Nikolai A. Nachamkin

	Name:		Nikolai A. Nachamkin
	Title:		Senior Vice President
		
	By:		 /s/ Sybille Andaur

	Name:		Sybille Andaur
	Title:		Vice President
	
	 DNB CAPITAL LLC
 as a
Lender

		
	By:		 /s/ Nikolai A. Nachamkin

	Name:		Nikolai A. Nachamkin
	Title:		Senior Vice President
		
	By:		 /s/ Sybille Andaur

	Name:		Sybille Andaur
	Title:		Vice President

 Signature Page to Amendment No. 2 to 5-Year Credit Agreement 

(National Oilwell Varco, Inc.) 

 
			
	BARCLAYS BANK PLC
	as a Swingline Lender, an Issuing Lender and a Lender
		
	By:		 /s/ Louise Brechin

	Name:		Louise Brechin
	Title:		Director

 Executed in Aberdeen, United Kingdom 

Signature Page to Amendment No. 2 to 5-Year Credit Agreement 

(National Oilwell Varco, Inc.) 

 
			
	JPMORGAN CHASE BANK, N.A.
	as an Issuing Lender and a Lender
		
	By:		 /s/ Thomas Okamoto

	Name:		Thomas Okamoto
	Title:		Authorized Officer

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	LLOYDS BANK PLC
	as a Lender
		
	By:		 /s/ Erin Doherty

	Name:		Erin Doherty
	Title:		Assistant Vice President – D006
		
	By:		 /s/ Daven Popat

	Name:		Daven Popat
	Title:		Senior Vice President – P003

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
	as an Issuing Lender and a Lender
		
	By:		 /s/ Mark Oberreuter

	Name:		Mark Oberreuter
	Title:		Vice President

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	CITIBANK, N.A.
	as an Issuing Lender and a Lender
		
	By:		 /s/ Maureen Maroney

	Name:		Maureen Maroney
	Title:		Vice President

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	EXPORT DEVELOPMENT CANADA
	as a Lender
		
	By:		 /s/ Tamara Fathi

	Name:		Tamara Fathi
	Title:		Senior Associate
		
	By:		 /s/ Christiane de Billy

	Name:		Christiane de Billy
	Title:		Senior Financing Manager

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	FIFTH THIRD BANK
	as a Lender
		
	By:		 /s/ Mathew Lewis

	Name:		Mathew Lewis
	Title:		Vice President

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	HSBC BANK USA, NATIONAL ASSOCIATION
	as a Lender
		
	By:		 /s/ Steven Smith

	Name:		Steven Smith
	Title:		Director #20290

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	PNC BANK, NATIONAL ASSOCIATION
	as a Lender
		
	By:		  

	Name:		
	Title:		

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	 SKANDINAVISKA ENSKILDA BANKEN AB

(PUBL)

	as a Lender
		
	By:		 /s/ Penny Neville-Park

	Name:		Penny Neville-Park
	Title:		
		
	By:		 /s/ Duncan Nash

	Name:		Duncan Nash
	Title:		

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	THE BANK OF NOVA SCOTIA
	as a Lender
		
	By:		 /s/ John Frazell

	Name:		J. Frazell
	Title:		Director

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	U.S. BANK NATIONAL ASSOCIATION
	as a Lender
		
	By:		 /s/ John Prigge

	Name:		John Prigge
	Title:		Vice President

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	UNICREDIT BANK AG, NEW YORK BRANCH
	as a Lender
		
	By:		 /s/ Julien Tizorin

	Name:		Julien Tizorin
	Title:		Director
		
	By:		 /s/ Jeffrey Ferris

	Name:		Jeffrey Ferris
	Title:		Director

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	STANDARD CHARTERED BANK
	as a Lender
		
	By:		 /s/ Steven Aloupis

	Name:		Steven Aloupis A2388
	Title:		Managing Director, Capital Markets
		
	By:		 /s/ Hsing H. Huang

	Name:		Hsing H. Huang
	Title:		Associate Director, Standard Chartered Bank NY

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	DANSKE BANK, NORWEGIAN BRANCH
	 (f/k/a FOKUS BANK – NORWEGIAN BRANCH

OF DANSKE BANK)
 as a Lender

		
	By:		 /s/ Ivar Løvberget

	Name:		Ivar Løvberget
	Title:		Senior Client Executive
		
	By:		 /s/ Pål Thormod Mitlid

	Name:		Pål Thormod Mitlid
	Title:		Head of Large Corporates Norway

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	 NORDEA BANK FINLAND PLC, NEW YORK

BRANCH

	as a Lender
		
	By:		 /s/ Mogens R. Jensen

	Name:		Mogens R. Jensen
	Title:		Senior Vice President
		
	By:		 /s/ Lars Christian Eriksen

	Name:		Lars Christian Eriksen
	Title:		Vice President

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	ROYAL BANK OF CANADA
	as a Swingline Lender and a Lender
		
	By:		 /s/ Mohannad Hammad

	Name:		Mohannad Hammad
	Title:		Vice President NCG - Finance

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 
			
	SVENSKA HANDELSBANKEN AB (PUBL)
	as a Lender
		
	By:		 /s/ Mark Cleary

	Name:		Mark Cleary
	Title:		Senior Vice President
		
	By:		 /s/ Toril Westermann

	Name:		Toril Westermann
	Title:		VP - Senior Account Manager

  
 Signature Page to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 Schedule A 

Increase Amounts 
  

					
	 Lender
	  	Increase Amount	 
	 Wells Fargo Bank, N.A.
	  	$	27,000,000.00	  
	 DNB Capital LLC
	  	$	27,000,000.00	  
	 Barclays Bank PLC
	  	$	73,000,000.00	  
	 Citibank, N.A.
	  	$	73,000,000.00	  
	 JPMorgan Chase Bank, N.A.
	  	$	73,000,000.00	  
	 Lloyds Bank plc
	  	$	73,000,000.00	  
	 The Bank of Nova Scotia
	  	$	143,000,000.00	  
	 The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	  	$	73,000,000.00	  
	 Export Development Canada
	  	$	39,000,000.00	  
	 Fifth Third Bank
	  	$	39,000,000.00	  
	 HSBC Bank USA, National Association
	  	$	39,000,000.00	  
	 Skandinaviska Enskilda Banken AB (publ)
	  	$	39,000,000.00	  
	 UniCredit Bank AG, New York Branch
	  	$	39,000,000.00	  
	 U.S. Bank National Association
	  	$	39,000,000.00	  
	 Fokus Bank
	  	$	124,000,000.00	  
	 Standard Chartered
	  	$	20,000,000.00	  
	 Nordea Bank Finland Plc, New York Branch
	  	$	20,000,000.00	  
	 Royal Bank of Canada
	  	$	20,000,000.00	  
	 Svenska Handelsbanken AB (publ)
	  	$	20,000,000.00	  

  
 Schedule A to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.) 

 Schedule 1.1(a) 

Revolving Commitments 
  

					
	 Lender
	  	Revolving Commitment	 
	 Wells Fargo Bank, N.A.
	  	$	317,000,000.00	  
	 DNB Capital LLC
	  	$	317,000,000.00	  
	 Barclays Bank PLC
	  	$	308,000,000.00	  
	 Citibank, N.A.
	  	$	308,000,000.00	  
	 JPMorgan Chase Bank, N.A.
	  	$	308,000,000.00	  
	 Lloyds Bank plc
	  	$	308,000,000.00	  
	 The Bank of Nova Scotia
	  	$	308,000,000.00	  
	 The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	  	$	308,000,000.00	  
	 Export Development Canada
	  	$	204,000,000.00	  
	 Fifth Third Bank
	  	$	204,000,000.00	  
	 HSBC Bank USA, National Association
	  	$	204,000,000.00	  
	 Skandinaviska Enskilda Banken AB (publ)
	  	$	204,000,000.00	  
	 UniCredit Bank AG, New York Branch
	  	$	204,000,000.00	  
	 U.S. Bank National Association
	  	$	204,000,000.00	  
	 Fokus Bank
	  	$	204,000,000.00	  
	 PNC Bank, National Association
	  	$	165,000,000.00	  
	 Standard Chartered
	  	$	125,000,000.00	  
	 Nordea Bank Finland Plc, New York Branch
	  	$	100,000,000.00	  
	 Royal Bank of Canada
	  	$	100,000,000.00	  
	 Svenska Handelsbanken AB (publ)
	  	$	100,000,000.00	  
	 TOTAL:
	  	$	4,500,000,000.00	  

  
 Schedule 1.1(a) to
Amendment No. 2 to 5-Year Credit Agreement 
 (National Oilwell Varco, Inc.)

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