Document:

Exhibit 10.1

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

 

This AMENDMENT NO. 3 TO CREDIT AGREEMENT dated as of May 29, 2015 (this “Amendment”), is among TETRA TECH, INC., a Delaware corporation (the “Company”), TETRA TECH CANADA HOLDING CORPORATION, a Canadian corporation (together with the Company, collectively, the “Borrowers”), BANK OF AMERICA, N.A., in its capacities as the Administrative Agent (in such capacity, the “Administrative Agent”), L/C Issuer and a Lender, U.S. BANK NATIONAL ASSOCIATION, in its capacities as L/C Issuer and a Lender, each of the other Lenders party hereto and each of the Subsidiary Guarantors party hereto.

 

RECITALS:

 

A.                                 The Borrowers, the Lenders and the Administrative Agent have entered into an Amended and Restated Credit Agreement dated as of May 7, 2013 (as amended by that certain Amendment No. 1 to Credit Agreement dated as of September 27, 2013, and that certain Amendment No. 2 to Credit Agreement dated as of June 23, 2014, the “Credit Agreement”).  Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.

 

B.                                  The Subsidiary Guarantors and the Administrative Agent have entered into Subsidiary Guaranties dated of even date with the Credit Agreement (the “Subsidiary Guaranties”) and various Security Instruments.

 

C.                                  The Borrowers have requested to amend the Credit Agreement as set forth below.

 

D.                                 Subject to the terms and conditions set forth below, the parties hereto have agreed to so amend the Credit Agreement.

 

In furtherance of the foregoing, the parties agree as follows:

 

Section 1.                                 Amendments to Credit Agreement.  Subject to the covenants, terms and conditions set forth herein and in reliance upon the representations and warranties set forth herein, the Credit Agreement is amended as follows:

 

(a)                               The existing Schedule 2.01 is deleted in its entirety and Schedule 2.01 attached hereto is inserted in lieu thereof and the Commitments and Applicable Percentages of the Lenders shall be as set forth on such new Schedule 2.01.   Notwithstanding anything to the contrary in Section 10.06 of the Credit Agreement, no other documents or instruments, including any Assignment and Assumption, shall be executed in connection with these assignments (all of which requirements are hereby waived), and such assignments shall be deemed to be made with all applicable representations, warranties and covenants as if evidenced by an Assignment and Assumption.  On the effective date, the Lenders shall make full cash settlement with one another (including with any Lender whose commitments are being decreased or terminated), either directly or through the Administrative Agent, as the Administrative Agent may direct or approve, with respect to all assignments, reallocations and other changes in Commitments, such that after giving effect to such settlements each Lender shall have funded its Applicable Percentage of the Outstanding Amount of Loans under the Facilities.

 

(b)                              The existing pricing grid in the definition of “Applicable Rate” in Section 1.01 is deleted in its entirety and the following pricing grid is inserted in lieu thereof:

 

 

	
Pricing
    Level
    	
Consolidated
    Leverage Ratio
    	
Commitment
    Fee
    	
Eurocurrency   Rate
   Loans and
    Letter of Credit Fee
    	
Base
    Rate Loans
    
	
I
    	
Less than 0.75 to 1.00
    	
0.200%
    	
1.150%
    	
0.150%
    
	
II
    	
Greater than or equal to 0.75 to 1.00 but less than   1.25 to 1.00
    	
0.225%
    	
1.250%
    	
0.250%
    
	
III
    	
Greater than or equal to 1.25 to 1.00 but less than   1.75 to 1.00
    	
0.250%
    	
1.375%
    	
0.375%
    
	
IV
    	
Greater than or equal to 1.75 to 1.00 but less than   2.25 to 1.00
    	
0.300%
    	
1.625%
    	
0.625%
    
	
V
    	
Greater than or equal to 2.25 to 1.00
    	
0.350%
    	
2.000%
    	
1.000%
    

 

 

(c)                               The definitions of “Consolidated EBITDA”, “Consolidated Net Worth”, “Eurocurrency Rate”, “Fee Letters”, “L/C Issuer”, “Lending Office”, “Loan Notice”, “Maturity Date”, “Responsible Officer” and “Swing Line Loan Notice” in Section 1.01 are amended to read as follows:

 

“Consolidated EBITDA” means, for any period, for the Company and its Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for such period plus (a) the following to the extent deducted in calculating such Consolidated Net Income: (i) Consolidated Interest Charges for such period, (ii) the tax expense for Federal, state, local and foreign income taxes of the Company and its Subsidiaries for such period (net of tax benefit), (iii) depreciation and amortization expense for such period, (iv) other non-recurring expenses of the Company and its Subsidiaries reducing such Consolidated Net Income which do not represent a cash item in such period or any future period, (v) cost of employee services received in share-based payment transactions (in accordance with FASB ASC 718) which do not represent a cash item in such period or any future period, and (vi) up to $96,000,000 in the aggregate of non-cash charges associated with the wind-down of non-core construction activities in the Company’s Remediation and Construction Management segment through the end of fiscal year 2017 and minus (b) to the extent included in calculating such Consolidated Net Income, all non-cash items increasing Consolidated Net Income for such period.

 

“Consolidated Net Worth” means, as of any date of determination, consolidated stockholders’ equity of the Company and its Subsidiaries as of that date determined in accordance with GAAP, but excluding in such calculation the impact of accumulated other comprehensive income (or loss) reflected on the Company’s Consolidated Balances Sheets as a result of unrealized mark to market fluctuations from swaps and other hedging transactions.

 

“Eurocurrency Rate” means

 

(a)                               With respect to any Credit Extension:

 

(i)                                  denominated in a LIBOR Quoted Currency, the rate per annum equal to the London Interbank Offered Rate (“LIBOR”) or a comparable or successor rate which rate is approved by the Administrative Agent, as published on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business 

 

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Days prior to the commencement of such Interest Period, for deposits in the relevant currency (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period;

 

(ii)                              denominated in Australian dollars, the rate per annum equal to the Bank Bill Swap Reference Bid Rate (“BBSY”) or a comparable or successor rate, which rate is approved by the Administrative Agent, as published on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at or about 10:30 a.m. (Melbourne, Australia time) on the Rate Determination Date with a term equivalent to such Interest Period;

 

(iii)                          denominated in Canadian dollars, the rate per annum equal to the Canadian Dealer Offered Rate (“CDOR”), or a comparable or successor rate which rate is approved by the Administrative Agent, as published on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at or about 10:00 a.m. (Toronto, Ontario time) on the Rate Determination Date with a term equivalent to such Interest Period;

 

(iv)                          with respect to a Credit Extension denominated in a Non-LIBOR Quoted Currency other than those currencies listed above, the rate designated with respect to such currency at the time such currency was approved by the Administrative Agent and the Lenders pursuant to Section 1.06(a); and

 

(b)                          for any rate calculation with respect to a Base Rate Loan on any date, the rate per annum equal to LIBOR, at or about 11:00 a.m., London time determined two Business Days prior to such date for U.S. Dollar deposits with a term of one month commencing that day;

 

provided that to the extent a comparable or successor rate is approved by the Administrative Agent in connection with any rate set forth in this definition, the approved rate shall be applied in a manner consistent with market practice; provided, further that to the extent such market practice is not administratively feasible for the Administrative Agent, such approved rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent; and if the Eurocurrency Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.  The Administrative Agent does not warrant, nor accept responsibility, nor shall the Administrative Agent have any liability with respect to the administration, submission or any other matter related to the rates in this definition of “Eurocurrency Rate” or with respect to any comparable or successor rate thereto.

 

“Fee Letters” means (i) the letter agreement, dated May 15, 2015, among the Company, Bank of America and MLPFS (the “Agent Fee Letter”), (ii) the letter agreement, dated May 15, 2015, among the Company, Bank of America and the Arrangers, and (iii) the letter agreement, dated May 15, 2015, between the Company and U.S. Bank.

 

“L/C Issuer” means (a) each of Bank of America and U.S. Bank National Association, in each case subject to such sublimits as such L/C Issuer may establish with the Company from time to time for the issuance of Letters of Credit by such L/C Issuer under this Agreement, which sublimits shall initially be $75,000,000 (of which up to $12,500,000 may be used for financial Letters of Credit) in the case of Bank of America and $75,000,000 (of which up to $12,500,000 may be used for financial Letters of Credit) in the case of U.S. Bank, (b) any replacement letter of credit issuer arising under Section 9.06 and (c) any other Lender or any Affiliate of a Lender which has agreed in a writing (which writing shall set forth the initial sublimit for all Letters of 

 

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Credit to be issued by such L/C Issuer under this Agreement) to become an “L/C Issuer” hereunder and has been approved by the Company and the Administrative Agent; provided, in all cases that the aggregate sublimits established by all L/C Issuers shall not exceed the Letter of Credit Sublimit then in effect.  For the avoidance of doubt, any sublimit that an L/C Issuer may establish for Letters of Credit to be issued by it shall be part of and not in addition to the Letter of Credit Sublimit.  All singular references to the L/C Issuer shall mean any L/C Issuer, the L/C Issuer that has issued the applicable Letter of Credit, or all L/C Issuers, as the context may require.

 

“Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Company and the Administrative Agent which office may include any Affiliate of such Lender or any domestic or foreign branch of such Lender or such Affiliate. Unless the context otherwise requires each reference to a Lender shall include its applicable Lending Office.  Each Lender may make any Credit Extension through any Lending Office, provided that the exercise of this option shall not affect the obligation of any Borrower to repay the Credit Extension in accordance with the terms of this Agreement.

 

“Letter of Credit Sublimit” means an amount equal to the lesser of (a) the Aggregate Revolving Credit Commitments and (b) $150,000,000 (of which no more than $25,000,000 shall be available at any time for financial Letters of Credit).  The Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Revolving Credit Commitments.

 

“Loan Notice” means a notice of (a) a Term Loan Borrowing, (b) a Revolving Credit Borrowing, (c) a conversion of Loans from one Type to the other, or (d) a continuation of Eurocurrency Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit A (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Borrower.

 

“Maturity Date” means May 29, 2020; provided, however, that if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

 

“Responsible Officer” means the chief executive officer, president, chief financial officer, treasurer, assistant treasurer or controller of a Loan Party, solely for purposes of the delivery of incumbency certificates pursuant to Section 4.01, the secretary or any assistant secretary of a Loan Party and, solely for purposes of notices given pursuant to Article II, any other officer or employee of the applicable Loan Party so designated by any of the foregoing officers in a notice to the Administrative Agent or any other officer or employee of the applicable Loan Party designated in or pursuant to an agreement between the applicable Loan Party and the Administrative Agent.  Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

 

“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit B or such other form as approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approve by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Company.

 

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(d)                              The parenthetical at the end of part (b) of the definition of “Change of Control” in Section 1.01 is deleted in its entirety.

 

(e)                               (i) The definition of “Mandatory Cost” is deleted from Section 1.01 in its entirety,  (ii) Schedule 1.01(m) is deleted in its entirety, (iii) the reference to the addition of Mandatory Cost is deleted in clause (a) of the definition of “Default Rate” in Section 1.01 and in Section 2.08(a)(i), mutatis mutandis and (iv) clauses (i)(B) and (iii) of Section 3.04(a) are deleted in their entirety and “[intentionally deleted]” is inserted in lieu thereof.

 

(f)                                The definition of “Four Programs” in Section 1.01 is deleted in its entirety.

 

(g)                               The following definition of “Rate Determination Date” is inserted in Section 1.01 in the appropriate alphabetical position therein:

 

“Rate Determination Date” means two (2) Business Days prior to the commencement of such Interest Period (or such other day as is generally treated as the rate fixing day by market practice in such interbank market, as determined by the Administrative Agent; provided that to the extent such market practice is not administratively feasible for the Administrative Agent, such other day as otherwise reasonably determined by the Administrative Agent).

 

(h)                              A new Section 2.02(f) is inserted that reads as follows:

 

(f)                                 Notwithstanding anything to the contrary in this Agreement, any Lender may exchange, continue or rollover all of the portion of its Loans in connection with any refinancing, extension, loan modification or similar transaction permitted by the terms of this Agreement, pursuant to a cashless settlement mechanism approved by the Company, the Administrative Agent, and such Lender.

 

(i)                                  A new Section 2.03(l) is inserted that reads as follows:

 

(l)                                  Reporting of Letter of Credit Information.  For so long as any Letter of Credit issued by an L/C Issuer other than Bank of America is outstanding under the Agreement, such L/C Issuer shall deliver to the Administrative Agent on the last Business Day of each calendar month, and on each date that an L/C Credit Extension occurs with respect to any such Letter of Credit, a report in the form of Exhibit H hereto, appropriately completed with the information for every outstanding Letter of Credit issued by such L/C Issuer.  The Administrative Agent shall deliver to the Lenders on a monthly basis a report of all outstanding Letters of Credit.

 

(j)                                  Schedule 2.07(a) is deleted in its entirety and Section 2.07(a) is amended to read as follows:

 

(a)                               Term Loans.  The Company shall repay to the Term Loan Lenders the aggregate principal amount of all Term Loans in quarterly principal installments of (i) $2,562,500 for the quarters ending on June 30, 2015 and the last Business Day of September 2015, December 2015 and March 2016 and (ii) $3,843,750 commencing June 30, 2016, and continuing on the last Business Day of each September, December, March and June thereafter (which principal amounts shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.05); provided, however, that the final principal repayment 

 

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installment of the Term Loans shall be repaid on the Maturity Date and in any event shall be in an amount equal to the aggregate principal amount of all Term Loans outstanding on such date.

 

(k)                              The following new sentence is added to the end of Section 2.10(a):

 

With respect to all Non-LIBOR Quoted Currencies, the calculation of the applicable interest rate shall be determined in accordance with market practice.

 

(l)                                  The references to “$150,000,000” in Section 2.15(a) and Section 7.03(k) are deleted and references to “$240,000,000” are inserted in lieu thereof.

 

(m)                          A new Section 3.01(g) is added that reads as follows:

 

(g)                               Treatment of Certain FATCA Matters.  Solely for purposes of determining withholding Taxes imposed under FATCA, from and after May 29, 2015, the Company and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) this Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

(n)                              A new Section 5.25 is inserted that reads as follows:

 

5.25                    Anti-Corruption Laws.  The Company and its Subsidiaries have conducted their businesses in compliance in all material respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar anti-corruption legislation in other jurisdictions, and have instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.

 

(o)                              A new Section 6.14 is inserted that reads as follows:

 

6.14                    Anti-Corruption Laws.  Conduct its businesses in compliance in all material respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar anti-corruption legislation in other jurisdictions, and maintain policies and procedures designed to promote and achieve compliance with such laws.

 

(p)                              The reference to “$20,000,000” in Section 7.03(e) is deleted and a reference to “$25,000,000” is inserted in lieu thereof.

 

(q)                              Sections 7.06(c) and (e) are amended to read as follows:

 

(c)                               so long as no Default shall have occurred and be continuing at the time of any action described below or would result therefrom and, after giving effect thereto (and any incurrence of Indebtedness in connection therewith), the Company and its Subsidiaries shall be in pro forma compliance with the financial covenants set forth in Section 7.11, such compliance to be determined on the basis of financial information most recently delivered to the Administrative Agent pursuant to Section 6.01(a) or (b), the Company may make unlimited Permitted Share Repurchases so long as the Consolidated Leverage Ratio is equal to or less than 2.00 to 1.00; provided, that, if at any time that the Consolidated Leverage Ratio exceeds 2.00 to 1.00, the aggregate additional Permitted Share Repurchases permitted pursuant to this clause (c) in any fiscal year, when taken together with all Permitted Share Repurchases previously consummated in such fiscal year,  shall not exceed the greater of $125,000,000 or 10% of Consolidated Net 

 

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Worth as of the end of the immediately preceding fiscal year (without any carry forward of unused portions of such basket to subsequent fiscal years);

 

(e)                               so long as no Default shall have occurred and be continuing at the time thereof or would result therefrom and, after giving effect thereto (and any incurrence of Indebtedness in connection therewith), the Company and its Subsidiaries shall be in pro forma compliance with the financial covenants set forth in Section 7.11, such compliance to be determined on the basis of financial information most recently delivered to the Administrative Agent pursuant to Section 6.01(a) or (b); provided that with respect to the Consolidated Leverage Ratio covenant in Section 7.11(b), the Company may still demonstrate pro forma compliance to the extent the Consolidated Leverage Ratio does not exceed 3.25 to 1.00 if the Company is permitted to invoke an Elevated Ratio Period or if an Elevated Ratio Period is then in effect, the Company may declare and pay cash dividends and distributions to its stockholders so long as the aggregate amount of cash dividends and distributions paid pursuant to this clause (e) during any fiscal year does not exceed $50,000,000.

 

(r)                                 Section 7.11(b) is amended to read as follows:

 

(b)                              Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio at any time during any period of four fiscal quarters of the Company to be greater than 3.00 to 1.00; provided that if an Acquisition or series of Acquisitions with aggregate consideration of $50,000,000 or more occurs during a fiscal quarter, the Company shall have the right to permit the Consolidated Leverage Ratio to exceed 3.00 to 1.00 during such fiscal quarter and the subsequent three fiscal quarters (the “Elevated Ratio Period”) so long as (i) the Consolidated Leverage Ratio does not exceed 3.25 to 1.00 at any time during the Elevated Ratio Period, and (ii) the Consolidated Leverage Ratio is not in excess of 3.00 to 1.00 at any time during the fiscal quarter that commences immediately after the end of the Elevated Ratio Period.

 

(s)                                The references to  “3.00 to 1.00” in Sections 7.02(g), 7.03(j) and 7.06(d) are deleted and references to “3.25 to 1.00” are inserted in lieu thereof

 

(t)                                  A new Section 7.17 is inserted that reads as follows:

 

7.17                    Anti-Corruption Laws.  Directly or indirectly use the proceeds of any Credit Extension for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar anti-corruption legislation in other jurisdictions.

 

(u)                              The parenthetical in the first sentence of Section 10.02(b) is deleted in its entirety and the following parenthetical is inserted in lieu thereof:

 

(including e-mail, FpML messaging and Internet or intranet websites)

 

(v)                              The following new sentence is added to the end of the first paragraph of Section 10.07:

 

In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Agents and the Lenders in connection with the administration of this Agreement, the other Loan Documents, and the Commitments.

 

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(w)                           Section 10.17 is amended and restated in its entirety to read as follows:

 

10.17            Electronic Execution of Assignments and Certain Other Documents.  The words “execute,” “execution,” “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Agreement and the transactions contemplated hereby (including without limitation Assignment and Assumptions, amendments or other modifications, Loan Notices, Swing Line Loan Notices, waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that notwithstanding anything contained herein to the contrary the Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it.

 

(x)                              The existing Exhibit D is deleted in its entirety and Exhibit D attached hereto is inserted in lieu thereof.

 

(y)                              A new Exhibit H is added in the form of Exhibit H attached hereto.

 

The amendments to the Credit Agreement are limited to the extent specifically set forth above and no other terms, covenants or provisions of the Loan Documents are intended to be affected hereby.

 

Section 2.                                 Conditions Precedent.  The parties hereto agree that the amendments set forth in Section 1 above shall not be effective until the satisfaction of each of the following conditions precedent:

 

(a)                               Documentation.  The Administrative Agent shall have received (i) a counterpart of this Amendment, duly executed and delivered by the Borrowers, the Subsidiary Guarantors and all Lenders then party to the Credit Agreement, (ii) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Borrower as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Amendment and the Loan Documents, (iii) such documents and certifications as the Administrative Agent may reasonably require to evidence that each Borrower is validly existing and in good standing in its jurisdiction of organization, (iv) favorable opinions of counsel to the Borrowers addressed to the Administrative Agent and each Lender, as to the matters concerning the Borrowers, this Amendment and the Loan Documents as the Administrative Agent may reasonably request, and (v) such other assurances, certificates, documents, consents or opinions as the Administrative Agent reasonably may require.

 

(b)                              Fees.  Any fees required to be paid on or before the effective date shall have been paid.

 

(c)                               Legal Fees and Expenses.  All fees and expenses of counsel to the Administrative Agent estimated to date shall have been paid in full (without prejudice to final settling of accounts for such fees and expenses).

 

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Section 3.                                 Representations And Warranties.

 

(a)                               In order to induce the Administrative Agent and the Lenders to enter into this Amendment, each Borrower represents and warrants to the Administrative Agent and the Lenders as follows:

 

(i)                                  The representations and warranties of the Borrowers and the other Loan Parties contained in Article V of the Credit Agreement or any other Loan Document are true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Amendment, the representations and warranties contained in Sections 5.05(a) and (b) of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to Sections 6.01(a) and (b) of the Credit Agreement, respectively.

 

(ii)                              Since the date of the Audited Financial Statements, there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.

 

(iii)                          No Default has occurred and is continuing or will exist after giving effect to this Amendment.

 

(b)                              In order to induce the Administrative Agent and the Lenders to enter into this Amendment, each Borrower and each Subsidiary Guarantor represents and warrants to the Administrative Agent and the Lenders that this Amendment has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation.

 

Section 4.                                 Miscellaneous.

 

(a)                               Ratification and Confirmation of Loan Documents.  Each Borrower and each Subsidiary Guarantor hereby consents, acknowledges and agrees to the amendments set forth herein and hereby confirms and ratifies in all respects the Loan Documents to which such Person is a party (including without limitation, with respect to each Subsidiary Guarantor, the continuation of its payment and performance obligations under the Subsidiary Guaranty to which it is a party upon and after the effectiveness of the amendments contemplated hereby and, with respect to each Borrower and each Subsidiary Guarantor, the continuation and extension of the liens granted under the Security Instruments to secure the Secured Obligations, in each case after giving effect to the amendments set forth herein).

 

(b)                              Fees and Expenses.  The Company shall pay on demand all reasonable costs and expenses of the Administrative Agent in connection with the preparation, negotiation, execution, and delivery of this Amendment and any other documents prepared in connection herewith, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent.

 

(c)                               Headings.  Section and subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose or be given any substantive effect.

 

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(d)                              Governing Law; Jurisdiction; Waiver of Jury Trial; Etc.  This Amendment shall be governed by and construed in accordance with the laws of the State of New York, and shall be further subject to the provisions of Sections 10.14 and 10.15 of the Credit Agreement.

 

(e)                               Counterparts.  This Amendment 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.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or electronic transmission (including .pdf file) shall be effective as delivery of a manually executed counterpart hereof.

 

(f)                                Entire Agreement.  This Amendment, together with all the Loan Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relating to such subject matter.  No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty.  Each of the parties hereto acknowledges that, except as otherwise expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other in relation to the subject matter hereof or thereof.  None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise except in writing in accordance with Section 10.01 of the Credit Agreement.

 

(g)                               Enforceability.  Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto.

 

(h)                              Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns (subject to Section 10.06 of the Credit Agreement).

 

(i)                                  Amendment Fees.  The amendment fees payable pursuant to Section 2(b) above shall be fully-earned upon execution and delivery by the applicable Lender of a signature page to this Amendment in accordance with such Section, shall be non-refundable for any reason whatsoever and shall be in addition to any other fee, cost, or expense payable pursuant to this Amendment or any other Loan Document.

 

[Remainder of page intentionally left blank; signature pages follow]

 

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The following parties have caused this Amendment to be executed as of the date first written above.

 

	
 
    	
BORROWERS:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
TETRA TECH, INC.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/S/ DAN L. BATRACK
    	
 
    
	
 
    	
Name:
    	
Dan L. Batrack
    	
 
    
	
 
    	
Title:
    	
Chairman and Chief   Executive Officer
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
TETRA TECH CANADA HOLDING   CORPORATION
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/S/ DAN L. BATRACK
    	
 
    
	
 
    	
Name:
    	
Dan L. Batrack
    	
 
    
	
 
    	
Title:
    	
President
    	
 
    

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

	
 
    	
SUBSIDIARY GUARANTORS:
    
	
 
    	
 
    
	
 
    	
ADVANCED MANAGEMENT   TECHNOLOGY, INC.
    
	
 
    	
AMERICAN ENVIRONMENTAL GROUP,   LTD.
    
	
 
    	
ARD, INC.
    
	
 
    	
ARDAMAN &   ASSOCIATES, INC.
    
	
 
    	
COSENTINI ASSOCIATES, INC.
    
	
 
    	
PRO-TELLIGENT, LLC
    
	
 
    	
ROONEY ENGINEERING, INC.
    
	
 
    	
TETRA TECH   CONSTRUCTION, INC.
    
	
 
    	
TETRA TECH EC, INC.
    
	
 
    	
TETRA TECH ES, INC.
    
	
 
    	
TETRA TECH TESORO, INC.
    
	
 
    	
WESTERN UTILITY   CONTRACTORS, INC.
    
	
 
    	
BPR INC.
    
	
 
    	
BPR - BÂTIMENT INC.
    
	
 
    	
BPR-ÉNERGIE INC.
    
	
 
    	
BPR-INFRASTRUCTURE INC.
    
	
 
    	
TETRA TECH EBA INC.
    
	
 
    	
PARKLAND PIELINE CONTRACTORS   LTD.
    
	
 
    	
PARKLAND PIPELINE EQUIPMENT   LTD.
    
	
 
    	
PARK L PROJECTS LTD.
    
	
 
    	
TETRA TECH INDUSTRIEL INC.
    
	
 
    	
TETRA TECH INDUSTRIES INC.
    
	
 
    	
TETRA TECH OGD INC.
    
	
 
    	
TETRA TECH WEI INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/S/ DAN L. BATRACK
    	
 
    
	
 
    	
Name:
    	
Dan L. Batrack
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
TETRA   TECH EXECUTIVE SERVICES, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/S/ DAN L. BATRACK
    	
 
    
	
 
    	
Name:
    	
Dan L. Batrack
    	
 
    
	
 
    	
Title:
    	
Chief Executive Officer
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
TETRA TECH HOLDING LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
TETRA TECH, INC.,   its Sole Member
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    	
/S/ DAN L. BATRACK
    	
 
    
	
 
    	
 
    	
Name:
    	
Dan L. Batrack
    	
 
    
	
 
    	
 
    	
Title:
    	
Chairman and Chief   Executive Officer
    	
 
    
								

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

	
 
    	
ADMINISTRATIVE   AGENT:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A., as Administrative Agent
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ ROBERT J.   RITTELMEYER
    	
 
    
	
 
    	
Name:
    	
Robert J. Rittelmeyer
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
					

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

	
 
    	
LENDERS:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A. (AS LENDER AND L/C ISSUER)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ MUKESH SINGH
    	
 
    
	
 
    	
Name:
    	
Mukesh Singh
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
					

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION (AS LENDER AND L/C ISSUER)
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ GLENN LEYRER
    	
 
    
	
 
    	
Name:
    	
Glenn Leyrer
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL ASSOCIATION,   
    	
 
    
	
 
    	
CANADA BRANCH
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ JOHN P. REHOB
    	
 
    
	
 
    	
Name:
    	
John P. Rehob
    	
 
    
	
 
    	
Title:
    	
VP & Principal   Officer
    	
 
    
					

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

	
 
    	
WELLS   FARGO BANK, N.A.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ CATHERINE ABE
    	
 
    
	
 
    	
Name:
    	
Catherine Abe
    	
 
    
	
 
    	
Title:
    	
Senior Vice President
    	
 
    
					

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

	
 
    	
BANK OF   MONTREAL
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ JOHN ARMSTRONG
    	
 
    
	
 
    	
Name:
    	
John Armstrong
    	
 
    
	
 
    	
Title:
    	
Managing Director
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
					

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

	
 
    	
HSBC   BANK USA, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/S/ STEVEN F. LARSEN
    	
 
    
	
 
    	
Name:
    	
Steven F. Larsen
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
					

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

	
 
    	
MUFG   UNION BANK, N.A.
    
	
 
    	
 
    
	
 
    	
By:
    	
/S/ CHARLES WILMOT
    	
 
    
	
 
    	
Name:
    	
Charles Wilmot
    	
 
    
	
 
    	
Title:
    	
Director
    	
 
    
					

 

	
 
    	
MUFG   UNION BANK, Canada Branch
    
	
 
    	
By:
    	
/S/ ANNE COLLINS
    	
 
    
	
 
    	
Name:
    	
Anne Collins
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
					

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

	
 
    	
SUMITOMO   MITSUI BANKING CORPORATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/S/ DAVID W. KEE
    	
 
    
	
 
    	
Name:
    	
David W. Kee
    	
 
    
	
 
    	
Title:
    	
Managing   Director
    	
 
    
					

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

	
 
    	
THE   BANK OF NOVA SCOTIA
    
	
 
    	
 
    
	
 
    	
By:
    	
/S/ WINSTON LUA
    	
 
    
	
 
    	
Name:
    	
Winston Lua
    	
 
    
	
 
    	
Title:
    	
Director
    	
 
    
					

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

	
 
    	
THE   NORTHERN TRUST COMPANY
    
	
 
    	
 
    
	
 
    	
By:
    	
/S/ JOHN LASCODY
    	
 
    
	
 
    	
Name:
    	
John Lascody
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
					

 

Tetra Tech, Inc.

Amendment No. 3 to Credit Agreement

Signature Page

 

 

SCHEDULE 2.01

 

COMMITMENTS AND APPLICABLE PERCENTAGES

 

	
 

 

 

 

Lender
    	
 
    	
Revolving
   Credit
   Commitment
    	
 
    	
Applicable
   Percentage
   (Revolving
   Credit Facility)
    	
 
    	
Term Loan
   Commitment
    	
 
    	
Applicable
   Percentage
   (Term Loan
   Facility)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Bank   of America, N.A.
    	
 
    	
$ 74,000,000.00
    	
 
    	
16.086956522%
    	
 
    	
$ 31,350,000.00
    	
 
    	
16.097560976%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
U.S.   Bank National Association
    	
 
    	
$ 74,000,000.00
    	
 
    	
16.086956522%
    	
 
    	
$ 31,350,000.00
    	
 
    	
16.097560976%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Wells   Fargo Bank, N.A.
    	
 
    	
$ 74,000,000.00
    	
 
    	
16.086956522%
    	
 
    	
$ 31,350,000.00
    	
 
    	
16.097560976%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Bank   of Montreal
    	
 
    	
$ 60,000,000.00
    	
 
    	
13.043478260%
    	
 
    	
$ 25,650,000.00
    	
 
    	
13.170731707%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
MUFG   Union Bank, N.A.
    	
 
    	
$ 60,000,000.00
    	
 
    	
13.043478260%
    	
 
    	
$ 25,650,000.00
    	
 
    	
13.170731707%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sumitomo   Mitsui Banking
   Corporation
    	
 
    	
$ 39,000,000.00
    	
 
    	
8.478260870%
    	
 
    	
$ 17,100,000.00
    	
 
    	
8.780487805%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The   Bank of Nova Scotia
    	
 
    	
$ 39,000,000.00
    	
 
    	
8.478260870%
    	
 
    	
$ 17,100,000.00
    	
 
    	
8.780487805%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
HSBC   Bank USA, National
   Association
    	
 
    	
$ 20,000,000.00
    	
 
    	
4.347826087%
    	
 
    	
$  7,600,000.00
    	
 
    	
3.902439024%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
The   Northern Trust Company
    	
 
    	
$  20,000,000.00
    	
 
    	
4.347826087%
    	
 
    	
$   7,600,000.00
    	
 
    	
3.902439024%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
$460,000,000.00
    	
 
    	
100.000000000%
    	
 
    	
$194,750,000.00
    	
 
    	
100.000000000%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Schedule 2.01

 

Commitments and Applicable Percentages

 

 

EXHIBIT D

 

FORM OF COMPLIANCE CERTIFICATE

 

Financial Statement Date: __________, _____

 

To:       Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Amended and Restated Credit Agreement, dated as of May 7, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Tetra Tech, Inc. (the “Company”), certain Subsidiaries of the Company (each a “Designated Borrower” and, together with the Company, the “Borrowers” and, each a “Borrower”), each Lender from time to time party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

 

The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the                                                                                    of the Company, and that, as such, he/she is authorized to execute and deliver this Compliance Certificate to the Administrative Agent on the behalf of the Company, and that:

 

[Use following paragraph 1 for fiscal year-end financial statements]

 

1.         The Company has delivered the audited financial statements required by Section 6.01(a) of the Agreement for the fiscal year of the Company ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section.

 

[Use following paragraph 1 for fiscal quarter-end financial statements]

 

1.         The Company has delivered the unaudited financial statements required by Section 6.01(b) of the Agreement for the fiscal quarter of the Company ended as of the above date.  Such financial statements fairly present the financial condition, results of operations and cash flows of the Company and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes.

 

2.         The undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Company during the accounting period covered by such financial statements.

 

3.         A review of the activities of the Company during such fiscal period has been made under the supervision of the undersigned with a view to determining whether during such fiscal period the Company performed and observed all its Obligations under the Loan Documents, and

 

[select one:]

 

[to the best knowledge of the undersigned during such fiscal period, the Company performed and observed each covenant and condition of the Loan Documents applicable to it, and no Default has occurred and is continuing.]

 

 

D-1

Form of Compliance Certificate

 

 

--or--

 

[to the best knowledge of the undersigned, during such fiscal period the following covenants or conditions have not been performed or observed and the following is a list of each such Default and its nature and status:]

 

4.         The representations and warranties of the Borrowers contained in Article V of the Agreement, and any representations and warranties of any Loan Party that are contained in any document furnished at any time under or in connection with the Loan Documents, are true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Compliance Certificate, the representations and warranties contained in Sections 5.05(a) and (b) of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to Section 6.01(a) and (b), respectively, of the Agreement, including the statements in connection with which this Compliance Certificate is delivered.

 

5.         The financial covenant analyses and information set forth on Schedules 1 and 2 attached hereto are true and accurate on and as of the date of this Compliance Certificate.

 

IN WITNESS WHEREOF, the undersigned has executed this Compliance Certificate as of _______________, _____.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
TETRA   TECH, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
					

 

D-2

Form of Compliance Certificate

 

 

For the Quarter/Year ended ___________________(“Statement Date”)

 

SCHEDULE 1 
  to the Compliance Certificate 
 ($ in 000’s)

 

I.          Section 7.11(a) – Consolidated Fixed Charge Coverage Ratio.

 

	
A.
    	
Consolidated   EBITDA for four consecutive fiscal quarters ending on above date (“Subject   Period”):
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
1.                                    Consolidated Net Income for Subject   Period:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.                                    Consolidated Interest Charges for   Subject Period:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.                                    Net income taxes for Subject Period:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.                                    Depreciation expenses for Subject   Period:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
5.                                    Amortization expenses for Subject   Period:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
6.                                    Non-recurring non-cash reductions of   Consolidated Net Income for Subject Period:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
7.                                    FASB ASC 718 reductions of Consolidated Net Income   for Subject Period:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.                                    Non-cash charges incurred in connection   with the wind-down or non-core construction activities in the Company’s   Remediation and Construction Management segment through the end of fiscal   year 2017 (subject to an aggregate $96,000,000 cap):
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.                                    Non-cash additions to Consolidated Net   Income for Subject Period:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.                            Consolidated EBITDA (Lines I.A.1 + 2 +   3 + 4 + 5 + 6 + 7 + 8 - 9):
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
B.
    	
Capital   expenditures for Subject Period (excluding expenditures made connection with   the replacement, substitution or restoration of assets to the extent financed   (i) from insurance proceeds (or similar recoveries) paid on account of the   loss of or damage to the assets being replaced or restored, or (ii) with   awards of compensation arising from the taking by eminent domain or   condemnation of the assets being replaced):
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
C.
    	
Consolidated   Fixed Charges for Subject Period:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
1.                                    Consolidated Interest Charges paid or   required to be paid in cash for Subject Period:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.                                    Income taxes paid for Subject Period:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.                                    Required principal payments on   Indebtedness for Subject Period:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.                                    Consolidated Fixed Charges for Subject   Period (Lines I.C.1 + 2 + 3):
    	
 
    	
$                     
    

 

D-3

Form of Compliance Certificate

 

 

	
D.
    	
Consolidated   Fixed Charge Coverage Ratio ((Line I.A.10 — Line I.B) ÷ Line I.C.4):
    	
 
    	
                     to 1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Minimum   required:
    	
 
    	
1.25   to 1.00
    

 

 

II.        Section 7.11(b) – Consolidated Leverage Ratio.

 

	
A.
    	
Consolidated   Funded Indebtedness at Statement Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
1.                                    Outstanding principal amount of all   obligations for borrowed money:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.                                    Purchase money Indebtedness:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.                                    Direct obligations arising under letters   of credit, bankers’ acceptances, bank guaranties, surety bonds and similar   instruments:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.                                    Obligations in respect of the deferred   purchase price of property or services:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
5.                                    Attributable Indebtedness in respect of   capital leases and Synthetic Lease Obligations:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
6.                                    Guarantees with respect to outstanding   Indebtedness of the types specified in Lines II.A.1 through II.A.5 above of   Persons other than the Company or any Subsidiary:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
7.                                    Indebtedness of the types referred to   in Lines II.A.1 through II.A.6 above of any partnership or joint venture in   which the Company or a Subsidiary is a general partner or joint venturer:
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.         Consolidated Funded Indebtedness   (Lines II.A.1 + 2 + 3 + 4 + 5 + 6 + 7):
    	
 
    	
$                     
    
	
 
    	
 
    	
 
    	
 
    
	
B.
    	
Consolidated EBITDA for   Subject Period (Line I.A.10 above):
    	
 
    	
$                         
    
	
 
    	
 
    	
 
    	
 
    
	
C.
    	
Consolidated Leverage   Ratio (Line II.A.8 ÷ Line II.B):
    	
 
    	
                 to 1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Maximum   permitted:
    	
 
    	
[3.00] to 1.00 1
    

 

 

 

 

 

 

 

 

 

 

 

1  Subject to increase to 3.25 to 1.00 in the event an Elevated Leverage Ratio Period is in effect as a result of an Acquisition in accordance with Section 7.11(b).

 

D-4

Form of Compliance Certificate

 

 

For the Quarter/Year ended ___________________(“Statement Date”)

 

SCHEDULE 2 
  to the Compliance Certificate 
 ($ in 000’s)

 

Consolidated EBITDA 
  (in accordance with the definition of Consolidated EBITDA as set forth in the Agreement)

 

	
Consolidated   EBITDA
    	
 
    	
 

Quarter
   Ended

                   
    	
 
    	
 

Quarter
   Ended

                   
    	
 
    	
 

Quarter
   Ended

                   
    	
 
    	
 

Quarter
   Ended

                   
    	
 
    	
Twelve
   Months
   Ended

                   
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 

Consolidated Net   Income
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
+    Consolidated Interest Charges
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
+    net income taxes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
+    depreciation expense
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
+    amortization expense
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
+    non-recurring non-cash expenses
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
+    FASB ASC 718   expense
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
+    of non-cash charges associated with the   wind-down of non-core construction activities in the Company’s Remediation   and Construction Management segment through the end of fiscal year 2017   (subject to $96,000,000 aggregate cap)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
-     non-cash income
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
=    Consolidated EBITDA
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

EXHIBIT H

 

FORM OF REPORT OF LETTER OF CREDIT INFORMATION

 

	
To:   
    	
Bank   of America, N.A. as Administrative Agent
    
	
Attn:   
    	
 
    	
 
    	
 
    
	
Phone   No.:
    	
 
    	
 
    	
 
    
	
Fax   No.:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ref.:
    	
Letters   of Credit
    	
 
    	
 
    
	
 
    	
Issued   for the account of Tetra Tech, Inc. or any   Subsidiary thereof

under   the Credit Agreement dated as of May 7, 2013
    
	
 
    
					

 

Reporting Period :___/___/20__ through___/___/20__

 

	
L/C No.
    	
 
    	
Maximum
   Face
   Amount
    	
 
    	
Current
   Face
   Amount
    	
 
    	
Escalating
   Y/N(?)
   If “Y”
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   AmendmentSecurities
Purchase Agreement

 

This
Securities Purchase Agreement (this “Agreement”), dated as of May 27, 2015, is entered into by and between
Rich Pharmaceuticals, Inc., a Nevada corporation (“Company”),
and Typenex Co-Investment, LLC, a Utah limited liability company, its successors
and/or assigns (“Investor”).

A.Company and
Investor are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the
rules and regulations promulgated by the United States Securities and Exchange Commission (the “SEC”) under
the Securities Act of 1933, as amended (the “1933 Act”).

B.Investor desires
to purchase and Company desires to issue and sell, upon the terms and conditions set forth in this Agreement, a Secured Convertible
Promissory Note, in the form attached hereto as Exhibit A, in the original principal amount of $362,500.00 (the “Note”),
convertible into shares of common stock, $0.001 par value per share, of Company (the “Common Stock”), upon the
terms and subject to the limitations and conditions set forth in such Note.

C.This Agreement,
the Note, the Security Agreement (as defined below), the Pledge Agreement (as defined below), the Secured Investor Notes (as defined
below), and all other certificates, documents, agreements, resolutions and instruments delivered to any party under or in connection
with this Agreement, as the same may be amended from time to time, are collectively referred to herein as the “Transaction
Documents”.

D.For purposes
of this Agreement: “Conversion Shares” means all shares of Common Stock issuable upon conversion of all or any
portion of the Note; and “Securities” means the Note and the Conversion Shares.

NOW, THEREFORE,
in consideration of the above recitals and other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Company and Investor hereby agree as follows:

1.                  
Purchase and Sale of Securities.

1.1.             
Purchase of Securities. Company shall issue and sell to Investor and Investor agrees
to purchase from Company the Note. In consideration thereof, Investor shall pay (i) the amount designated as the initial cash purchase
price on Investor’s signature page to this Agreement (the “Initial Cash Purchase Price”),
and (ii) issue to Company the Secured Investor Notes (the sum of the initial principal amount of the Secured Investor Notes, together
with the Initial Cash Purchase Price, the “Purchase Price”). Subject to Section 1.5, the Secured Investor Notes
shall be secured by the Membership Interest Pledge Agreement substantially in the form attached hereto as Exhibit B, as
the same may be amended from time to time (the “Pledge Agreement”). The Purchase Price, the OID (as defined
below), and the Transaction Expense Amount (as defined below) are allocated to the Tranches (as defined in the Note) of the Note
as set forth in the table attached hereto as Exhibit C.

1.2.             
Form of Payment. On the Closing Date, (i) Investor shall pay the Purchase Price to
Company by delivering the following at the Closing: (A) the Initial Cash Purchase Price, which shall be delivered by wire transfer
of immediately available funds to Company, in accordance with Company’s written wiring instructions; (B) Secured Investor
Note #1 in the principal amount of $15,000.00 duly executed and substantially in the form attached hereto as Exhibit D (“Secured
Investor Note #1”); (C) Secured Investor Note #2 in the principal amount of $50,000.00 duly executed and substantially
in the form attached hereto as Exhibit D (“Secured Investor Note #2”); (D) Secured Investor Note #3 in
the principal amount of $50,000.00 duly executed and substantially in the form attached hereto as Exhibit D (“Secured
Investor Note #3”); (E) Secured Investor Note #4 in the principal amount of $50,000.00 duly executed and substantially
in the form attached hereto as Exhibit D (“Secured Investor Note #4”); (F) Secured Investor Note #5 in
the principal amount of $50,000.00 duly executed and substantially in the form attached hereto as Exhibit D (“Secured
Investor Note #5”); (G) Secured Investor Note #6 in the principal amount of $50,000.00 duly executed and substantially
in the form attached hereto as Exhibit D (“Secured Investor Note #6”); and (H) Secured Investor Note
#7 in the principal amount of $50,000.00 duly executed and substantially in the form attached hereto as Exhibit D (“Secured
Investor Note #7”, and together with Secured Investor Note #1, Secured Investor Note #2, Secured Investor Note #3, Secured
Investor Note #4, Secured Investor Note #5, and Secured Investor Note #6, the “Secured Investor Notes”); and
(ii) Company shall deliver the duly executed Note on behalf of Company, to Investor, against delivery of such Purchase Price.

    	1

    	 

    

1.3.             
Closing Date. Subject to the satisfaction (or written waiver) of the conditions set
forth in Section 5 and Section 6 below, the date and time of the issuance and sale of the Securities pursuant to this Agreement
(the “Closing Date”) shall be 5:00 p.m., Eastern Time on or about May 27, 2015, or such other mutually agreed
upon time. The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the
Closing Date by means of the exchange by express courier and email of .pdf documents, but shall be deemed to have occurred at the
offices of Hansen Black Anderson Ashcraft PLLC in Lehi, Utah.

1.4.             
Collateral for the Note. The Note shall be secured by the collateral set forth in that
certain Security Agreement attached hereto as Exhibit E listing all of the Secured Investor Notes as security for Company’s
obligations under the Transaction Documents (the “Security Agreement”).

1.5.             
Collateral for Secured Investor Notes. At the Closing, Investor shall execute the Pledge
Agreement, thereby granting to Company a security interest in the collateral described therein (the “Collateral”).
Investor also agrees to file a UCC Financing Statement (Form UCC1) with the Utah Department of Commerce in the manner set forth
in the Pledge Agreement in order to perfect Company’s security interest in the Collateral. Notwithstanding anything to the
contrary herein or in any other Transaction Document, Investor may, in Investor’s sole discretion, add additional collateral
to the Collateral covered by the Pledge Agreement, and may substitute Collateral as Investor deems fit, provided that the net fair
market value of the substituted Collateral may not be less than the aggregate principal balance of the Secured Investor Notes as
of the date of any such substitution. In the event of a substitution of Collateral, Investor shall timely execute any and all amendments
and documents necessary or advisable in order to properly release the original collateral and grant a security interest upon the
substitute collateral in favor of Company, including without limitation the filing of an applicable UCC Financing Statement Amendment
(Form UCC3) with the Utah Department of Commerce. Company agrees to sign the documents and take such other measures requested by
Investor in order to accomplish the intent of the Transaction Documents, including without limitation, execution of a Form UCC3
(or equivalent) termination statement against the Collateral within five (5) Trading Days after written request from Investor.
Company acknowledges and agrees that the Collateral may be encumbered by other monetary liens in priority and/or subordinate positions.
The intent of the parties is that the net fair market value of the Collateral (less any other prior liens or encumbrances) will
be equal to or greater than the aggregate outstanding balance of the Secured Investor Notes. To the extent the fair market value
of the Collateral (less any other liens or encumbrances) is less than the total outstanding balance of all the Secured Investor
Notes, then the Collateral will be deemed to only secure those Secured Investor Notes with an aggregate outstanding balance that
is less than or equal to such net fair market value of the Collateral, applied in numerical order of the Secured Investor Notes.
By way of example only, if the fair market value of the Collateral is determined by appraisal to be $200,000.00 and the Collateral
is encumbered by $85,000.00 of prior liens, then the net fair market value for purposes of this section is $115,000.00 ($200,000.00
- $85,000.00). Accordingly, the Collateral will be deemed to secure only Secured Investor Note #1, Secured Investor Note #2, and
Secured Investor Note #3, while Secured Investor Note #4, Secured Investor Note #5, Secured Investor Note #6, and Secured Investor
Note #7 shall be deemed unsecured. If the Collateral is subsequently appraised for $400,000.00 with all prior liens removed, then
the Collateral will automatically be deemed to secure all of the Secured Investor Notes.

1.6.             
Original Issue Discount; Transaction Expenses. The Note carries an original issue discount
of $32,500.00 (the “OID”). In addition, Company agrees to pay $5,000.00 to Investor to cover Investor’s
legal fees, accounting costs, due diligence, monitoring and other transaction costs incurred in connection with the purchase and
sale of the Securities (the “Transaction Expense Amount”), all of which amount is included in the initial principal
balance of the Note. The Purchase Price, therefore, shall be $325,000.00, computed as follows: $362,500.00 original principal balance,
less the OID, less the Transaction Expense Amount. The Initial Cash Purchase Price shall be the Purchase Price less the sum of
the initial principal amounts of the Secured Investor Notes. The portion of the OID and the Transaction Expense Amount allocated
to the Initial Cash Purchase Price are set forth on Exhibit C.

2.                  
Investor’s Representations and Warranties. Investor represents and warrants to
Company that: (i) this Agreement has been duly and validly authorized; (ii) this Agreement constitutes a valid and binding agreement
of Investor enforceable in accordance with its terms; (iii) Investor is an “accredited investor” as that term is defined
in Rule 501(a) of Regulation D of the 1933 Act; and (iv) this Agreement, the Pledge Agreement, and the Secured Investor Notes have
been duly executed and delivered on behalf of Investor.

3.                  
Representations and Warranties of Company. Company represents and warrants to Investor
that: (i) Company is a corporation duly organized, validly existing and in good standing under the laws of its state of

    	2

    	 

    

incorporation and has the requisite
corporate power to own its properties and to carry on its business as now being conducted; (ii) Company is duly qualified as a
foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted or property
owned by it makes such qualification necessary; (iii) Company has registered its Common Stock under Section 12(g) of the Securities
Exchange Act of 1934, as amended (the “1934 Act”), and is obligated to file reports pursuant to Section 13
or Section 15(d) of the 1934 Act; (iv) each of the Transaction Documents and the transactions contemplated hereby and thereby
have been duly and validly authorized by Company; (v) this Agreement, the Note, the Security Agreement, and the other Transaction
Documents have been duly executed and delivered by Company and constitute the valid and binding obligations of Company enforceable
in accordance with their terms, subject as to enforceability only to general principles of equity and to bankruptcy, insolvency,
moratorium, and other similar laws affecting the enforcement of creditors’ rights generally; (vi) the execution and delivery
of the Transaction Documents by Company, the issuance of Securities in accordance with the terms hereof, and the consummation by
Company of the other transactions contemplated by the Transaction Documents do not and will not conflict with or result in a breach
by Company of any of the terms or provisions of, or constitute a default under (a) Company’s formation documents or bylaws,
each as currently in effect, (b) any indenture, mortgage, deed of trust, or other material agreement or instrument to which Company
is a party or by which it or any of its properties or assets are bound, including any listing agreement for the Common Stock, or
(c) any existing applicable law, rule, or regulation or any applicable decree, judgment, or order of any court, United States federal
or state regulatory body, administrative agency, or other governmental body having jurisdiction over Company or any of Company’s
properties or assets; (vii) no further authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory
organization, or stock exchange or market or the stockholders or any lender of Company is required to be obtained by Company for
the issuance of the Securities to Investor; (viii) none of Company’s filings with the SEC contained, at the time they were
filed, any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary
to make the statements made therein, in light of the circumstances under which they were made, not misleading; (ix) Company has
filed all reports, schedules, forms, statements and other documents required to be filed by Company with the SEC under the 1934
Act on a timely basis or has received a valid extension of such time of filing and has filed any such report, schedule, form, statement
or other document prior to the expiration of any such extension; (x) Company has not consummated any financing transaction that
has not been disclosed in a periodic filing with the SEC under the 1934 Act; (xi) Company is not, nor has it ever been, a “Shell
Company,” as such type of “issuer” is described in Rule 144(i)(1) under the 1933 Act or is in compliance with
Rule 144(i)(2) under the 1933 Act; (xii) with respect to any commissions, placement agent or finder’s fees or similar payments
that will or would become due and owing by Company to any person or entity as a result of this Agreement or the transactions contemplated
hereby (“Broker Fees”), any such Broker Fees will be made in full compliance with all applicable laws and regulations
and only to a person or entity that is a registered investment adviser or registered broker-dealer; (xiii) Investor shall have
no obligation with respect to any Broker Fees or with respect to any claims made by or on behalf of other persons for fees of a
type contemplated in this subsection that may be due in connection with the transactions contemplated hereby and Company shall
indemnify and hold harmless each of Investor, Investor’s employees, officers, directors, stockholders, members, managers,
agents, and partners, and their respective affiliates, from and against all claims, losses, damages, costs (including the costs
of preparation and attorneys’ fees) and expenses suffered in respect of any such claimed or existing Broker Fees; (xiv) when
issued, the Conversion Shares will be duly authorized, validly issued, fully paid for and non-assessable, free and clear of all
liens, claims, charges and encumbrances; (xv) neither Investor nor any of its officers, directors, stockholders, members, managers,
employees, agents or representatives has made any representations or warranties to Company or any of its officers, directors, employees,
agents or representatives except as expressly set forth in the Transaction Documents and, in making its decision to enter into
the transactions contemplated by the Transaction Documents, Company is not relying on any representation, warranty, covenant or
promise of Investor or its officers, directors, stockholders, members, managers, employees, agents or representatives other than
as set forth in the Transaction Documents; and (xvi) Company has performed due diligence and background research on Investor and
its affiliates including, without limitation, John M. Fife, and, to its satisfaction, has made inquiries with respect to all matters
Company may consider relevant to the undertakings and relationships contemplated by the Transaction Documents including, among
other things, the following: http://investing.businessweek.com/research/stocks/people/person.asp?personId=7505107&ticker=UAHC;SEC
Civil Case No. 07-C-0347 (N.D. Ill.); SEC Civil Action No. 07-CV-347 (N.D. Ill.); and FINRA Case #2011029203701. Company, being
aware of the matters described in subsection (xvi) above, acknowledges and agrees that such matters, or any similar matters, have
no bearing on the transactions contemplated by the Transaction Documents and covenants and agrees it will not use any such information
as a defense to performance of its obligations under the Transaction Documents or in any attempt to avoid, modify or reduce such
obligations and shall not pay such proceeds to any other party pursuant to any financing transaction effected prior to the date
hereof.

    	3

    	 

    

4.                  
Company Covenants. Until all of Company’s obligations under all of the Transaction
Documents are paid and performed in full, or within the timeframes otherwise specifically set forth below, Company shall comply
with the following covenants: (i) so long as Investor beneficially owns any of the Securities and for at least twenty (20) Trading
Days thereafter, Company shall file all reports required to be filed with the SEC pursuant to Sections 13 or 15(d) of the
1934 Act, and shall take all reasonable action under its control to ensure that adequate current public information with respect
to Company, as required in accordance with Rule 144 of the 1933 Act, is publicly available, and shall not terminate its status
as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would permit
such termination; (ii) the Common Stock shall be listed or quoted for trading on any of (a) NYSE, (b) NASDAQ, (c) OTCQX, (d) OTCQB,
or (e) OTC Pink Current Information; (iii) when issued, the Conversion Shares will be duly authorized, validly issued, fully paid
for and non-assessable, free and clear of all liens, claims, charges and encumbrances; (iv) Company shall use the net proceeds
received hereunder for working capital and general corporate purposes only and shall not pay such proceeds to any other party pursuant
to any financing transaction effected prior to the date hereof; (v) trading in Company’s Common Stock shall not be suspended,
halted, chilled, frozen, reach zero bid or otherwise cease on the Company’s principal trading market; and (vi) Company shall
not transfer, assign, sell, pledge, hypothecate or otherwise alienate or encumber the Secured Investor Notes in any way without
the prior written consent of Investor. 

5.                  
Conditions to Company’s Obligation to Sell. The obligation of Company hereunder
to issue and sell the Securities to Investor at the Closing is subject to the satisfaction, at or before the Closing Date, of each
of the following conditions:

5.1.             
Investor shall have executed this Agreement, the Pledge Agreement, and the Secured Investor
Notes, and delivered the same to Company.

5.2.             
Investor shall have delivered the Initial Cash Purchase Price to Company in accordance with
Section 1.2 above.

6.                  
Conditions to Investor’s Obligation to Purchase. The obligation of Investor hereunder
to purchase the Securities at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following
conditions, provided that these conditions are for Investor’s sole benefit and may be waived by Investor at any time in its
sole discretion:

6.1.             
Company shall have executed this Agreement and delivered the same to Investor.

6.2.             
Company shall have delivered to Investor the duly executed Note in accordance with Section
1.2 above.

6.3.             
Company shall have delivered to Investor a fully executed Irrevocable Letter of Instructions
to Transfer Agent substantially in the form attached hereto as Exhibit F acknowledged in writing by Company’s transfer
agent (the “Transfer Agent”).

6.4.             
Company shall have delivered to Investor a fully executed Secretary’s Certificate substantially
in the form attached hereto as Exhibit G evidencing Company’s approval of the Transaction Documents.

6.5.             
Company shall have delivered to Investor a fully executed Share Issuance Resolution substantially
in the form attached hereto as Exhibit H to be delivered to the Transfer Agent.

6.6.             
Company shall have delivered to Investor fully executed copies of the Pledge Agreement, the
Security Agreement and all other Transaction Documents required to be executed by Company herein or therein.

7.                  
Reservation of Shares. At all times during which the Note is convertible, Company will
reserve from its authorized and unissued Common Stock to provide for the issuance of Common Stock upon the full conversion of the
Note at least three (3) times the quotient obtained by dividing the Outstanding Balance (as defined in the Note) by the Conversion
Price (as defined in the Note) (the “Share Reserve”), but in any event not less than 150,000,000 shares of Common
Stock shall be reserved at all times for such purpose (the “Transfer Agent Reserve”). Company further agrees
that it will cause the Transfer Agent to immediately add shares of Common

    	4

    	 

    

Stock to the Transfer Agent Reserve
in increments of 25,000,000 shares as and when requested by Investor in writing from time to time, provided that such incremental
increases do not cause the Transfer Agent Reserve to exceed the Share Reserve. In furtherance thereof, from and after the date
hereof and until such time that the Note has been paid in full, Company shall require the Transfer Agent to reserve for the purpose
of issuance of Conversion Shares under the Note, a number of shares of Common Stock equal to the Transfer Agent Reserve. Company
shall further require the Transfer Agent to hold such shares of Common Stock exclusively for the benefit of Investor and to issue
such shares to Investor promptly upon Investor’s delivery of a conversion notice under the Note. Finally, Company shall require
the Transfer Agent to issue shares of Common Stock pursuant to the Note to Investor out of its authorized and unissued shares,
and not the Transfer Agent Reserve, to the extent shares of Common Stock have been authorized, but not issued, and are not included
in the Transfer Agent Reserve. The Transfer Agent shall only issue shares out of the Transfer Agent Reserve to the extent there
are no other authorized shares available for issuance and then only with Investor’s written consent.

8.                  
Miscellaneous. The provisions set forth in this Section 8 shall apply to this Agreement,
as well as all other Transaction Documents as if these terms were fully set forth therein.

8.1.             
Original Signature Pages. Each party agrees to deliver its original signature pages
to the Transaction Documents to the other party within five (5) Trading Days of the date hereof. Notwithstanding the foregoing,
the Transaction Documents shall be fully effective upon exchange of electronic signature pages by the parties and payment of the
Initial Cash Purchase Price by Investor. For the avoidance of doubt, the failure by either party to deliver its original signature
pages to the other party shall not affect in any way the validity or effectiveness of any of the Transaction Documents, provided
that such failure to deliver original signatures shall be a breach of the party’s obligations hereunder.

8.2.             
Arbitration of Claims. The parties shall submit all Claims (as defined in Exhibit
I) arising under this Agreement or any other Transaction Document or other agreements between the parties and their affiliates
to binding arbitration pursuant to the arbitration provisions set forth in Exhibit I attached hereto (the “Arbitration
Provisions”). The parties hereby acknowledge and agree that the Arbitration Provisions are unconditionally binding on
the parties hereto and are severable from all other provisions of this Agreement. By executing this Agreement, Company represents,
warrants and covenants that Company has reviewed the Arbitration Provisions carefully, consulted with legal counsel about such
provisions (or waived its right to do so), understands that the Arbitration Provisions are intended to allow for the expeditious
and efficient resolution of any dispute hereunder, agrees to the terms and limitations set forth in the Arbitration Provisions,
and that Company will not take a position contrary to the foregoing representations. Company acknowledges and agrees that Investor
may rely upon the foregoing representations and covenants of Company regarding the Arbitration Provisions.

8.3.             
Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance
with the laws of the State of Utah for contracts to be wholly performed in such state and without giving effect to the principles
thereof regarding the conflict of laws. Each party consents to and expressly agrees that exclusive venue for arbitration of any
dispute arising out of or relating to any Transaction Document or the relationship of the parties or their affiliates shall be
in Salt Lake County or Utah County, Utah; provided, however, that notwithstanding anything herein to the contrary, enforcement
of Investor’s rights under the Security Agreement will occur in accordance with the Uniform Commercial Code of the applicable
state(s) under the Security Agreement and enforcement of Company’s rights over the Collateral will occur in accordance with
the laws of the state in which the Collateral is located. Without modifying the parties obligations to resolve disputes hereunder
pursuant to the Arbitration Provisions, for any litigation arising in connection with any of the Transaction Documents, each party
hereto hereby (i) consents to and expressly submits to the exclusive personal jurisdiction of any state or federal court sitting
in Salt Lake County, Utah, (ii) expressly submits to the exclusive venue of any such court for the purposes hereof, and (iii) waives
any claim of improper venue and any claim or objection that such courts are an inconvenient forum or any other claim or objection
to the bringing of any such proceeding in such jurisdictions or to any claim that such venue of the suit, action or proceeding
is improper.

8.4.             
Calculation Disputes. Notwithstanding the Arbitration Provisions, in the case of a
dispute as to any determination or arithmetic calculation under the Transaction Documents, including without limitation, calculating
the Outstanding Balance, Conversion Price, Conversion Shares, or VWAP (as defined in the Note) (each, a “Calculation”),
Company or Investor (as the case may be) shall submit any disputed Calculation via email or facsimile with confirmation of receipt
(i) within two (2) Trading Days after receipt of the applicable notice giving rise to such dispute to Company or Investor (as the
case may be) or (ii) if no notice gave rise to such dispute, at any

    	5

    	 

    

time after Investor learned of the circumstances
giving rise to such dispute. If Investor and Company are unable to agree upon such Calculation within two (2) Trading Days of such
disputed Calculation being submitted to Company or Investor (as the case may be), then Investor shall, within two (2) Trading Days,
submit via email or facsimile the disputed Calculation to Unkar Systems Inc. (“Unkar Systems”). Company shall
cause Unkar Systems to perform the Calculation and notify Company and Investor of the results no later than ten (10) Trading Days
from the time it receives such disputed Calculation. Unkar Systems’ determination of the disputed Calculation shall be binding
upon all parties absent demonstrable error. Unkar Systems’ fee for performing such Calculation shall be paid by the incorrect
party, or if both parties are incorrect, by the party whose Calculation is furthest from the correct Calculation as determined
by Unkar Systems. In the event Company is the losing party, no extension of the Delivery Date (as defined in the Note) shall be
granted and Company shall incur all effects for failing to deliver the applicable shares in a timely manner as set forth in the
Transaction Documents. Notwithstanding the foregoing, Investor may, in its sole discretion, designate an independent, reputable
investment bank or accounting firm other than Unkar Systems to resolve any such dispute and in such event, all references to “Unkar
Systems” herein will be replaced with references to such independent, reputable investment bank or accounting firm so designated
by Investor.

8.5.             
Counterparts. Each Transaction Document may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which together shall constitute one instrument. The parties hereto confirm
that any electronic copy of another party’s executed counterpart of a Transaction Document (or such party’s signature
page thereof) will be deemed to be an executed original thereof.

8.6.             
Headings. The headings of this Agreement are for convenience of reference only and
shall not form part of, or affect the interpretation of, this Agreement.

8.7.             
Severability. In the event that any provision of this Agreement is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform to such statute or rule of law. Any provision hereof which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

8.8.             
Entire Agreement. This Agreement, together with the other Transaction Documents, contains
the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set
forth herein or therein, neither Company nor Investor makes any representation, warranty, covenant or undertaking with respect
to such matters.

8.9.             
No Reliance. Company acknowledges and agrees that neither Investor nor any of its officers,
directors, stockholders, members, managers, representatives or agents has made any representations or warranties to Company or
any of its officers, directors, representatives, agents or employees except as expressly set forth in the Transaction Documents
and, in making its decision to enter into the transactions contemplated by the Transaction Documents, Company is not relying on
any representation, warranty, covenant or promise of Investor or its officers, directors, members, managers, agents or representatives
other than as set forth in the Transaction Documents.

8.10.          
Amendments. No provision of this Agreement may be waived or amended other than by an
instrument in writing signed by the parties hereto.

8.11.          
Notices. Any notice required or permitted hereunder shall be given in writing (unless
otherwise specified herein) and shall be deemed effectively given on the earliest of: (i) the date delivered, if delivered by personal
delivery as against written receipt therefor or by email to an executive officer, or by facsimile (with successful transmission
confirmation), (ii) the earlier of the date delivered or the third Trading Day after deposit, postage prepaid, in the United States
Postal Service by certified mail, or (iii) the earlier of the date delivered or the third Trading Day after mailing by express
courier, with delivery costs and fees prepaid, in each case, addressed to each of the other parties thereunto entitled at the following
addresses (or at such other addresses as such party may designate by five (5) calendar days’ advance written notice similarly
given to each of the other parties hereto):

    	6

    	 

    

If to Company:

 

Rich Pharmaceuticals,
Inc.

Attn: Ben Chang

9595 Wilshire Blvd,
Suite 900

Beverly Hills, California 90212

 

If to Investor:

 

Typenex Co-Investment, LLC

Attn: John Fife

303 East Wacker Drive, Suite 1040

Chicago, Illinois 60601

 

With a copy to (which copy shall not constitute notice):

 

Hansen Black Anderson Ashcraft PLLC

Attn: Jonathan K. Hansen

3051 West Maple Loop Drive, Suite 325

Lehi, Utah 84043

 

8.12.          
Successors and Assigns. This Agreement or any of the severable rights and obligations
inuring to the benefit of or to be performed by Investor hereunder may be assigned by Investor to a third party, including its
financing sources, in whole or in part, without the need to obtain Company’s consent thereto. Company may not assign its
rights or obligations under this Agreement or delegate its duties hereunder without the prior written consent of Investor.

8.13.          
Survival. The representations and warranties of Company and the agreements and covenants
set forth in this Agreement shall survive the Closing hereunder notwithstanding any due diligence investigation conducted by or
on behalf of Investor. Company agrees to indemnify and hold harmless Investor and all its officers, directors, employees, attorneys,
and agents for loss or damage arising as a result of or related to any breach or alleged breach by Company of any of its representations,
warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement
of expenses as they are incurred.

8.14.          
Further Assurances. Each party shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents,
as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

8.15.          
Investor’s Rights and Remedies Cumulative; Liquidated Damages. All rights, remedies,
and powers conferred in this Agreement and the Transaction Documents are cumulative and not exclusive of any other rights or remedies,
and shall be in addition to every other right, power, and remedy that Investor may have, whether specifically granted in this Agreement
or any other Transaction Document, or existing at law, in equity, or by statute, and any and all such rights and remedies may be
exercised from time to time and as often and in such order as Investor may deem expedient. The parties acknowledge and agree that
upon Company’s failure to comply with the provisions of the Transaction Documents, Investor’s damages would be uncertain
and difficult (if not impossible) to accurately estimate because of the parties’ inability to predict future interest rates
and future share prices, Investor’s increased risk, and the uncertainty of the availability of a suitable substitute investment
opportunity for Investor, among other reasons. Accordingly, any fees, charges, and default interest due under the Note and the
other Transaction Documents are intended by the parties to be, and shall be deemed, liquidated damages (under Company’s and
Investor’s expectations that any such liquidated damages will tack back to the Closing Date for purposes of determining the
holding period under Rule 144 under the 1933 Act). The parties agree that such liquidated damages are a reasonable estimate of
Investor’s actual damages and not a penalty, and shall not be deemed in any way to limit any other right or remedy Investor
may have hereunder, at law or in equity. The parties acknowledge and agree that under the circumstances existing at the time this
Agreement is entered into, such liquidated damages are fair and reasonable and are not penalties. All fees, charges, and default
interest provided for

    	7

    	 

    

in the Transaction Documents are agreed
to by the parties to be based upon the obligations and the risks assumed by the parties as of the Closing Date and are consistent
with investments of this type. The liquidated damages provisions of the Transaction Documents shall not limit or preclude a party
from pursuing any other remedy available at law or in equity; provided, however, that the liquidated damages provided for
in the Transaction Documents are intended to be in lieu of actual damages.

8.16.          
Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement
or the other Transaction Documents, if at any time Investor shall or would be issued shares of Common Stock under any of the Transaction
Documents, but such issuance would cause Investor (together with its affiliates) to beneficially own a number of shares exceeding
the Maximum Percentage (as defined in the Note), then Company must not issue to Investor the shares that would cause Investor to
exceed the Maximum Percentage. The shares of Common Stock issuable to Investor that would cause the Maximum Percentage to be exceeded
are referred to herein as the “Ownership Limitation Shares”. Company will reserve the Ownership Limitation Shares
for the exclusive benefit of Investor. From time to time, Investor may notify Company in writing of the number of the Ownership
Limitation Shares that may be issued to Investor without causing Investor to exceed the Maximum Percentage. Upon receipt of such
notice, Company shall be unconditionally obligated to immediately issue such designated shares to Investor, with a corresponding
reduction in the number of the Ownership Limitation Shares. For purposes of this Section, beneficial ownership of Common Stock
will be determined under Section 13(d) of the 1934 Act.

8.17.          
Attorneys’ Fees and Cost of Collection. In the event of any arbitration or action
at law or in equity to enforce or interpret the terms of this Agreement or any of the other Transaction Documents, the parties
agree that the party who is awarded the most money shall be deemed the prevailing party for all purposes and shall therefore be
entitled to an additional award of the full amount of the attorneys’ fees, deposition costs, and expenses paid by such prevailing
party in connection with arbitration or litigation without reduction or apportionment based upon the individual claims or defenses
giving rise to the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s or a court’s power to
award fees and expenses for frivolous or bad faith pleading. If (i) the Note is placed in the hands of an attorney for collection
or enforcement prior to commencing arbitration or legal proceedings, or is collected or enforced through any arbitration or legal
proceeding, or Investor otherwise takes action to collect amounts due under the Note or to enforce the provisions of the Note;
or (ii) there occurs any bankruptcy, reorganization, receivership of Company or other proceedings affecting Company’s
creditors’ rights and involving a claim under the Note; then Company shall pay the costs incurred by Investor for such collection,
enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without
limitation, attorneys’ fees, expenses, deposition costs, and disbursements.

8.18.          
Waiver. No waiver of any provision of this Agreement shall be effective unless it is
in the form of a writing signed by the party granting the waiver. No waiver of any provision or consent to any prohibited action
shall constitute a waiver of any other provision or consent to any other prohibited action, whether or not similar. No waiver or
consent shall constitute a continuing waiver or consent or commit a party to provide a waiver or consent in the future except to
the extent specifically set forth in writing.

8.19.          
Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS
SUCH PARTY MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT
OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY
ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH
PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

8.20.          
Time of the Essence. Time is expressly made of the essence with respect to each and
every provision of this Agreement and the other Transaction Documents.

[Remainder of page intentionally left blank;
signature page follows]

    	8

    	 

    

IN WITNESS WHEREOF,
the undersigned Investor and Company have caused this Agreement to be duly executed as of the date first above written.

SUBSCRIPTION AMOUNT:

 

Principal Amount of Note:$362,500.00

 

Initial Cash Purchase Price:$10,000.00

 

 

INVESTOR:

 

Typenex
Co-Investment, LLC

 

By: Red Cliffs Investments, Inc., its
Manager

 

By:/s/ John Fife

John M. Fife, President

 

 

COMPANY:

 

Rich
Pharmaceuticals, Inc.

 

By:/s/ Ben Chang, CEO

Printed Name: Ben Chang

Title: CEO

 

 

 

ATTACHED EXHIBITS:

 

		Exhibit	A                      
Note

		Exhibit	B                      
Membership Interest Pledge Agreement

		Exhibit	C                      
Allocation of Purchase Price

		Exhibit	D                      
Form of Secured Investor Note

		Exhibit	E                      
Security Agreement

		Exhibit	F                       
Irrevocable Transfer Agent Instructions

		Exhibit	G                      
Secretary’s Certificate

		Exhibit	H                     
Share Issuance Resolution

		Exhibit	I                        
Arbitration Provisions

 

 

 

    	9

    	 

    

Exhibit
I

 

ARBITRATION PROVISIONS

 

1.Dispute Resolution. For
purposes of this Exhibit I, the term “Claims” means any disputes, claims, demands, causes of action,
liabilities, damages, losses, or controversies whatsoever arising from related to or connected with the transactions contemplated
in the Transaction Documents and any communications between the parties related thereto, including without limitation any claims
of mutual mistake, mistake, fraud, misrepresentation, failure of formation, failure of consideration, promissory estoppel, unconscionability,
failure of condition precedent, rescission, and any statutory claims, tort claims, contract claims, or claims to void, invalidate
or terminate the Agreement or any of the other Transaction Documents. The term “Claims” specifically excludes a dispute
over Calculations and enforcement of Investor’s rights and remedies against the personal property described in the Security
Agreement under the applicable provisions of the Uniform Commercial Code. The parties hereby agree that the arbitration provisions
set forth in this Exhibit I (“Arbitration Provisions”) are binding on the parties hereto and are severable
from all other provisions in the Transaction Documents. As a result, any attempt to rescind the Agreement or declare the Agreement
or any other Transaction Document invalid or unenforceable for any reason is subject to these Arbitration Provisions. These Arbitration
Provisions shall also survive any termination or expiration of the Agreement. Any capitalized term not defined in these Arbitration
Provisions shall have the meaning set forth in the Agreement.

2.Arbitration. Except as otherwise
provided herein, all Claims must be submitted to arbitration (“Arbitration”) to be conducted exclusively in
Salt Lake County, Utah or Utah County, Utah and pursuant to the terms set forth in these Arbitration Provisions. The parties agree
that the award of the arbitrator (the “Arbitration Award”) shall be final and binding upon the parties (subject
to the appear right set forth in Section 4 below); shall be the sole and exclusive remedy between them regarding any Claims, counterclaims,
issues, or accountings presented or pleaded to the arbitrator; and shall promptly be payable in United States dollars free of any
tax, deduction or offset (with respect to monetary awards). Any costs or fees, including without limitation attorneys’ fees,
incident to enforcing the arbitrator’s award shall, to the maximum extent permitted by law, be charged against the party
resisting such enforcement. The award shall include Default Interest (as defined in the Note) both before and after the award.
Judgment upon the award of the arbitrator will be entered and enforced by a state court sitting in Salt Lake County, Utah. The
parties hereby incorporate herein the provisions and procedures set forth in the Utah Uniform Arbitration Act, U.C.A. § 78B-11-101
et seq. (as amended or superseded from time to time, the “Arbitration Act”). Pursuant to Section 105
of the Arbitration Act, in the event of conflict between the terms of these Arbitration Provisions and the provisions of the Arbitration
Act, the terms of these Arbitration Provisions shall control.

3.Arbitration Proceedings.
Arbitration between the parties will be subject to the following procedures:

3.1Pursuant
to Section 110 of the Arbitration Act, the parties agree that a party may initiate Arbitration by giving written notice to the
other party (“Arbitration Notice”) in the same manner that notice is permitted under Section 8.11 of the Agreement;
provided, however, that the Arbitration Notice may not be given by email or fax. Arbitration will be deemed initiated as
of the date that the Arbitration Notice is deemed delivered under Section 8.11 of the Agreement (the “Service Date”).
After the Service Date, information may be delivered, and notices may be given, by email or fax pursuant to Section 8.11 of the
Agreement or any other method permitted thereunder. The Arbitration Notice must describe the nature of the controversy, the remedies
sought, and the election to commence Arbitration proceedings. All Claims in the Arbitration Notice must be pleaded consistent with
the Utah Rules of Civil Procedure.

3.2Within ten
(10) calendar days after the Service Date, Investor shall select and submit to Company the names of three (3) arbitrators that
are designated as “neutrals” or qualified arbitrators by Utah ADR Services (http://www.utahadrservices.com) (such three
(3) designated persons hereunder are referred to herein as the “Proposed Arbitrators”). For the avoidance of
doubt, each Proposed Arbitrator must be qualified as a “neutral” with Utah ADR Services. Within ten (10) calendar days
after Investor has submitted to Company the names of the Proposed Arbitrators, Company must select, by written notice to Investor,
one (1) of the Proposed Arbitrators to act as the arbitrator for the parties under these Arbitration Provisions. If Company fails
to select one of the Proposed Arbitrators in writing within such 10-day period, then Investor may select the arbitrator from the
Proposed Arbitrators by providing written notice of such selection to Company. If Investor fails to identify the Proposed Arbitrators
within the time period required above, then Company may at any time prior to Investor designating the Proposed Arbitrators, select
the names of three (3) arbitrators that are designated as “neutrals” or qualified arbitrators by Utah ADR Service by
written notice to Investor. Investor may then, within ten (10) calendar days after Company has submitted notice of its selected
arbitrators to Investor, select, by written notice to Company, one (1) of the selected arbitrators to act as the arbitrator for
the parties under these Arbitration Provisions. If Investor fails to

    	10

    	 

    

select in writing and within such 10-day
period one of the three (3) arbitrators selected by Company, then Company may select the arbitrator from its three (3) previously
selected arbitrators by providing written notice of such selection to Investor. Subject to Paragraph 3.12 below, the cost of the
arbitrator must be paid equally by both parties; provided, however, that if one party refuses or fails to pay its portion
of the arbitrator fee, then the other party can advance such unpaid amount (subject to the accrual of Default Interest thereupon),
with such amount added to or subtracted from, as applicable, the award granted by the arbitrator. If Utah ADR Services ceases to
exist or to provide a list of neutrals, then the arbitrator shall be selected under the then prevailing rules of the American Arbitration
Association. The date that the selected arbitrator agrees in writing to serve as the arbitrator hereunder is referred to herein
as the “Arbitration Commencement Date”.

3.3An answer
and any counterclaims to the Arbitration Notice, which must be pleaded consistent with the Utah Rules of Civil Procedure, shall
be required to be delivered to the other party within twenty (20) calendar days after the Service Date. Upon request, the arbitrator
is hereby instructed to render a default award, consistent with the relief requested in the Arbitration Notice, against a party
that fails to submit an answer within such time period.

3.4The party
that delivers the Arbitration Notice to the other party shall have the option to also commence concurrent legal proceedings with
any state court sitting in Salt Lake County, Utah (“Litigation Proceedings”), subject to the following: (i)
the complaint in the Litigation Proceedings is to be substantially similar to the claims set forth in the Arbitration Notice, provided
that an additional cause of action to compel arbitration will also be included therein, (ii) so long as the other party files an
answer to the complaint in the Litigation Proceedings and an answer to the Arbitration Notice, the Litigation Proceedings will
be stayed pending an Arbitration Award hereunder, (iii) if the other party fails to file an answer in the Litigation Proceedings
or an answer in the Arbitration Proceedings, then the party initiating Arbitration shall be entitled to a default judgment consistent
with the relief requested, to be entered in the Litigation Proceedings, and (iv) any legal or procedural issue arising under the
Arbitration Act that requires a decision of a court of competent jurisdiction may be determined in the Litigation Proceedings.
Any award of the arbitrator may be entered in such Litigation Proceedings pursuant to the Arbitration Act.

3.5Pursuant
to Section 118(8) of the Arbitration Act, the parties agree that discovery shall be conducted in accordance with the Utah Rules
of Civil Procedure; provided, however, that incorporation of such rules will in no event supersede the Arbitration Provisions
set forth herein, including without limitation the time limitation set forth in Paragraph 3.9 below, and the following:

a.Discovery will
only be allowed if the likely benefits of the proposed discovery outweigh the burden or expense, and the discovery sought is likely
to reveal information that will satisfy a specific element of a claim or defense already pleaded in the Arbitration. The party
seeking discovery shall always have the burden of showing that all of the standards and limitations set forth in these Arbitration
Provisions are satisfied. The scope of discovery in the Arbitration proceedings shall also be limited as follows:

(i)To
facts directly connected with the transactions contemplated by the Agreement.

(ii)To
facts and information that cannot be obtained from another source that is more convenient, less burdensome or less expensive.

b. No party shall
be allowed (i) more than fifteen (15) interrogatories (including discrete subparts), (ii) more than fifteen (15) requests for admission
(including discrete subparts), (iii) more than ten (10) document requests (including discrete subparts), or (iv) more than three
depositions (excluding expert depositions) for a maximum of seven (7) hours per deposition.

3.6Any party
submitting any written discovery requests, including interrogatories, requests for production, subpoenas to a party or a third
party, or requests for admissions, must prepay the estimated attorneys’ fees and costs, as determined by the arbitrator,
before the responding party has any obligation to produce or respond.

(a)All discovery
requests must be submitted in writing to the arbitrator and the other party before issuing or serving such discovery requests.
The party issuing the written discovery requests must include with such discovery requests a detailed explanation of how the proposed
discovery requests satisfy the requirements of these Arbitration Provisions and the Utah Rules of Civil Procedure. Any party will
then be allowed, within ten (10) calendar days of receiving the proposed discovery requests, to submit to the arbitrator an estimate
of the attorneys’ fees and costs associated with responding to such written discovery requests and a written challenge to
each applicable discovery request. After receipt of an estimate of attorneys’ fees and costs and/or challenge(s) to one or
more discovery requests, the arbitrator will make a finding as to the likely attorneys’ fees and costs associated with responding
to the discovery requests and issue an order that (A) requires the requesting party to prepay the attorneys’ fees and costs
associated with responding to the discovery requests, and (B) requires the responding party to respond to the discovery requests
as limited by the arbitrator within a certain period of time after receiving payment from the requesting party. If a party entitled
to submit an estimate of attorneys’ fees and costs and/or a

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challenge to discovery requests fails
to do so within such 10-day period, the arbitrator will make a finding that (A) there are no attorneys’ fees or costs associated
with responding to such discovery requests, and (B) the responding party must respond to such discovery requests (as may be limited
by the arbitrator) within a certain period of time as determined by the arbitrator.

(b)In order to
allow a written discovery request, the arbitrator must find that the discovery request satisfies the standards set forth in these
Arbitration Provisions and the Utah Rules of Civil Procedure. The arbitrator must strictly enforce these standards. If a discovery
request does not satisfy any of the standards set forth in these Arbitration Provisions or the Utah Rules of Civil Procedure, the
arbitrator may modify such discovery request to satisfy the applicable standards, or strike such discovery request in whole or
in part.

(c)Discovery
deadlines will be set forth in a scheduling order issued by the arbitrator. The parties hereby authorize and direct the arbitrator
to take such actions and make such rulings as may be necessary to carry out the parties’ intent for the arbitration proceedings
to be efficient and expeditious.

3.7Each party
may submit expert reports (and rebuttals thereto), provided that such reports must be submitted by the deadlines established by
the arbitrator. Expert reports must contain the following: (a) a complete statement of all opinions the expert will offer at trial
and the basis and reasons for them; (b) the expert’s name and qualifications, including a list of all publications within
the preceding 10 years, and a list of any other cases in which the expert has testified at trial or in a deposition or prepared
a report within the preceding 10 years; and (c) the compensation to be paid for the expert’s report and testimony. The parties
are entitled to depose any other party’s expert witness one time for no more than 4 hours. An expert may not testify in a
party’s case-in-chief concerning any matter not fairly disclosed in the expert report.

3.8All information
disclosed by either party during the Arbitration process (including without limitation information disclosed during the discovery
process) shall be considered confidential in nature. Each party agrees not to disclose any confidential information received from
the other party during the discovery process unless (i) prior to or after the time of disclosure such information becomes public
knowledge or part of the public domain, not as a result of any inaction or action of the receiving party, (ii) such information
is required by a court order, subpoena or similar legal duress to be disclosed if such receiving party has notified the other party
thereof in writing and given it a reasonable opportunity to obtain a protective order from a court of competent jurisdiction prior
to disclosure; or (iii) disclosed to the receiving party’s agents, representatives and legal counsel on a need to know basis
who each agree in writing not to disclose such information to any third party. Pursuant to Section 118(5) of the Arbitration Act,
the arbitrator is hereby authorized and directed to issue a protective order to prevent the disclosure of privileged information
and confidential information upon the written request of either party.

3.9The parties
hereby authorize and direct the arbitrator to take such actions and make such rulings as may be necessary to carry out the parties’
intent for the arbitration proceedings to be efficient and expeditious. Pursuant to Section 120 of the Arbitration Act, the parties
hereby agree that an Arbitration Award must be made within 150 days after the Arbitration Commencement Date. The arbitrator is
hereby authorized and directed to hold a scheduling conference within ten (10) calendar days after the Arbitration Commencement
Date in order to establish a scheduling order with various binding deadlines for discovery, expert testimony, and the submission
of documents by the parties to enable the arbitrator to render a decision prior to the end of such 150-day period. The Utah Rules
of Evidence will apply to any final hearing before the arbitrator.

3.10The arbitrator
shall have the right to award or include in the Arbitration Award any relief which the arbitrator deems proper under the circumstances,
including, without limitation, specific performance and injunctive relief, provided that the arbitrator may not award exemplary
or punitive damages.

3.11If any part
of these Arbitration Provisions is found to violate applicable law or to be illegal, then such provision shall be modified to the
minimum extent necessary to make such provision enforceable under applicable law.

3.12The arbitrator
is hereby directed to require the losing party to (i) pay the full amount of any unpaid costs and fees of the arbitrator, and (ii)
reimburse the prevailing party the reasonable attorneys’ fees, arbitrator costs, deposition costs, and other discovery costs
incurred by the prevailing party.

4.Appeals.

4.1Following
the entry of the Arbitration Award, either party (the “Appellant”) shall have a period of thirty (30) days in
which to notify the other party (the “Appellee”), in writing, that it elects to appeal (the “Appeal”)
the Arbitration Award (such notice, an “Appeal Notice”). The date the Appellant delivers an Appeal Notice to
the Appellee is referred to herein as the “Appeal Date”. The Appeal Notice must be delivered to the Appellee
in accordance with the provisions of Paragraph 3.1 above with respect to delivery of an Arbitration Notice and must describe the
nature of the appeal and the remedies sought. In addition, together with its delivery of an Appeal Notice to the Appellee, the
Appellant must also pay for (and provide proof of such payment to the Appellee together with

    	12

    	 

    

its delivery of the Appeal Notice) a
bond in the amount of 110% of the sum it owes to the Appellee as a result of the final decision made by the arbitrators that it
is appealing. In the event neither party delivers an Appeal Notice to the other within the deadline prescribed in this Paragraph
4.1, each party shall lose its right to appeal and the decision of the arbitrator shall be final.

4.2In the event
an Appellant delivers an Appeal Notice to the Appellee in compliance with the provisions of Paragraph 4.1 above, the following
provisions shall apply with respect to the Appeal:

(a)The Appeal
will be heard by a three (3) person arbitration panel (the “Appeal Panel”). Within ten (10) calendar days after
the Appeal Date, the Appellee shall select and submit to the Appellant the names of five (5) arbitrators that are designated as
“neutrals” or qualified arbitrators by Utah ADR Services (http://www.utahadrservices.com) (such five designated persons
hereunder are referred to herein as the “Proposed Appeal Arbitrators”). For the avoidance of doubt, each Proposed
Appeal Arbitrator must be qualified as a “neutral” with Utah ADR Services. Within ten (10) calendar days after the
Appellee has submitted to the Appellant the names of the Proposed Appeal Arbitrators, the Appellant must select, by written notice
to the Appellee, three (3) of the Proposed Appeal Arbitrators to act as the members of the Appeal Panel. If the Appellant fails
to select three (3) of the Proposed Appeal Arbitrators in writing within such 10-day period, then the Appellee may select such
three (3) arbitrators from the Proposed Appeal Arbitrators by providing written notice of such selection to the Appellant. If the
Appellee fails to identify the Proposed Appeal Arbitrators within the time period required above, then the Appellant may at any
time prior to the Appellee designating the Proposed Appeal Arbitrators, select the names of the five (5) Proposed Appeal Arbitrators.
The Appellee may then, within ten (10) calendar days after the Appellant has submitted notice of its Proposed Appeal Arbitrators
to the Appellee, select, by written notice to the Appellant, three (3) of the Proposed Appeal Arbitrators to serve on the Appeal
Panel. If the Appellee fails to select in writing and within such 10-day period the three (3) members of the Appeal Panel, then
the Appellant may select such three (3) members of the Appeal Panel by providing written notice of such selection to the Appellee.
After the three (3) members of the Appeal Panel are selected, the Appellee shall designate in writing to the Appellant the name
of one of such three (3) arbitrators to serve as the lead arbitrator. Subject to Paragraph 4.2(d) below, the cost of the Appeal
Panel must be paid entirely by the Appellant. If Utah ADR Services ceases to exist or to provide a list of neutrals, then the arbitrators
shall be selected under the then prevailing rules of the American Arbitration Association. The date that all three (3) selected
arbitrators agree in writing to serve as the arbitrators hereunder is referred to herein as the “Appeal Commencement Date”.

(b)Within seven
(7) days of the Appeal Commencement Date, Appellant shall deliver to the Appeal Panel and to Appellee a memorandum in support of
appeal describing in detail its basis and arguments for appealing the Arbitration Award (the “Memorandum in Support”).
Within seven (7) days of Appellant’s delivery of the Memorandum in Support, Appellee shall deliver to the Appeal Panel and
to Appellant a memorandum in opposition to the Memorandum in Support (the “Memorandum in Opposition”). Within
seven (7) days of Appellee’s delivery of the Memorandum in Opposition, Appellant shall deliver to the Appeal Panel and to
Appellee a reply memorandum to the Memorandum in Opposition.

(c)The parties
hereby agree that the Appeal must be heard by the Appeal Panel within thirty (30) calendar days of the Appeal Commencement Date
and that the Appeal Panel’s Arbitration Award must be made within thirty (30) days after the Appeal is heard, and in any
event within sixty (60) days of the Appeal Commencement Date. The Utah Rules of Evidence will apply to any final hearing before
the Appeal Panel.

(d)The Appeal
Panel is hereby directed to require the losing party to (i) pay the full amount of any unpaid costs and fees of the Appeal Panel,
and (ii) reimburse the prevailing party the reasonable attorneys’ fees, arbitrator costs, deposition costs, and other discovery
costs incurred by the prevailing party. 

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