Document:

Exhibit 10.1

 

EXECUTION VERSION

 

 

 

 

 

LOAN AND SECURITY AGREEMENT

 

Dated as of April 3, 2017

 

among

 

STERLING CONSTRUCTION COMPANY, INC.,

as Borrower,

 

CERTAIN SUBSIDIARIES OF THE BORROWER PARTY HERETO,

as Guarantors,

 

THE LENDERS PARTY HERETO

and

 

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Agent

 

___________________________________________

 

TCB CAPITAL MARKETS,

as Lead Arranger

 

___________________________________________

 

 

 

 

 

 

 

 

 

     

     

    

 

LIST OF EXHIBITS AND SCHEDULES

 

	 	Schedule 1 	List of Guarantors
	 	Schedule 2 	List of Lenders
	 	Schedule 3 	Collateral Enhancement Requirement
	 	Schedule 4 	Permitted Dispositions
	 	Schedule 5 	Permitted Indebtedness
	 	Schedule 6 	Permitted Investments
	 	Schedule 7 	Permitted Liens
	 	Schedule 8 	UCC Filing Offices
	 	Schedule 9	Collective Bargaining Agreements
	 	Schedule 10 	Post-Closing Obligations
	 	 	 
	 	 	 
	 	Exhibit A 	Form of Secured Promissory Note
	 	Exhibit B 	Collateral Description
	 	Exhibit C 	Form of Landlord Waiver
	 	Exhibit D 	Form of Solvency Certificate
	 	Exhibit E 	Form of Intellectual Property Security Agreement
	 	Exhibit F 	Form of Assignment and Assumption Agreement
	 	Exhibit G 	Form of Notice of Borrowing
	 	Exhibit H 	Form of Joinder Agreement
	 	Exhibit I 	Reserved
	 	Exhibit J 	Reserved
	 	Exhibit K 	Form of Compliance Certificate
	 	Exhibit L-1	Form of U.S. Tax Compliance Certificate
	 	Exhibit L-2	Form of U.S. Tax Compliance Certificate
	 	Exhibit L-3 	Form of U.S. Tax Compliance Certificate
	 	Exhibit L-4	Form of U.S. Tax Compliance Certificate
	 	Exhibit M 	Form of Mortgage
	 	Exhibit N 	Form of Guaranty
	 	Exhibit O 	Form of Assignment of Claims Under Government Contract

 

 

 

     

     

    

LOAN AND SECURITY AGREEMENT

 

This LOAN AND SECURITY AGREEMENT, dated
as of April 3, 2017, is entered by and between Sterling Construction Company, Inc., a Delaware corporation (the “Borrower”);
the guarantors identified on Schedule 1 hereto (such guarantors, together with any entities required to become Guarantors
pursuant to the Joinder Requirements, are referred to hereinafter each individually as a “Guarantor”
and collectively as the “Guarantors” and together with the Borrower as the “Loan Parties”)
and Wilmington Trust, National Association, as agent (“Agent”) for the lenders identified on Schedule
2 hereto (such lenders, together with their respective successors and assigns are referred to hereinafter each individually
as a “Lender” and collectively as the “Lenders”), and the Lenders.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower (“Purchaser”)
has entered into that certain Stock Purchase Agreement dated as of March 8, 2017 (the “Acquisition Agreement”)
with the sellers identified on Exhibit A therein (each, a “Seller” and collectively, the “Sellers”)
and the Sellers’ Representative (as defined therein), providing for the acquisition of all of the issued and outstanding
shares of common stock of each of Tealstone Residential Concrete, Inc., a Texas corporation (“Tealstone Residential”),
and Tealstone Commercial, Inc., a Texas corporation (together with Tealstone Residential, collectively, the “Tealstone
Entities”) (such acquisition, the “Closing Date Acquisition”);

 

WHEREAS, the Borrower desires to obtain financing
for the Closing Date Acquisition, as well as to refinance certain existing indebtedness, to finance working capital and pay fees,
costs and expenses associated therewith;

 

WHEREAS, the Lenders have agreed to extend term
loans to the Borrower in an aggregate principal amount not to exceed $85,000,000;

 

WHEREAS, the Borrower has agreed to secure all
of its Obligations by granting to the Agent, for the benefit of the Agent and the Lenders, a first priority lien on substantially
all of its assets;

 

WHEREAS, each of the Guarantors has agreed to
guarantee the Obligations of the Borrower and to secure their respective Obligations by granting to the Agent, for the benefit
of the Agent and the Lenders, a first priority lien on substantially all of their assets; and

 

NOW, THEREFORE, in consideration of the covenants,
conditions and agreements set forth herein and intending to be legally bound, the parties hereto hereby agree as follows:

 

Article
1.            DEFINITIONS

 

The following capitalized terms shall have the
meanings set forth below:

 

“Accounts” shall mean
all accounts (as defined in the Code), payment intangibles (as defined in the Code) and other obligations owed Borrower in connection
with its sale or lease of goods, the licensing of Intellectual Property or the provision of services.

 

“Achieved Collateral Enhancement
Value” shall have the meaning given such term in Schedule 3 hereto.

 

“Acquisition Agreement”
shall have the meaning given such term in the Recitals.

 

“Acquisition Documentation”
shall mean the material acquisition documentation contemplating, or entered into in connection with, the Closing Date Acquisition
or any Permitted Acquisition, as applicable, including any acquisition agreement and any other material document or agreement related
thereto or entered into in connection therewith.

 

    	1

     

    

“Act” shall have the
meaning given such term in Section 11.18.

 

“Affiliate” shall
mean, with respect to any Person, any Person that owns or controls directly or indirectly nineteen and ninety-nine one hundredths
of one percent (19.99%) or more of the Equity Securities of such Person, any Person that controls or is controlled by or is under
common control with such Person or any Affiliate of such Person and each of such Person’s officers, directors, members, joint
venturers or partners. When used with respect to a Lender, Affiliate shall also include any Affiliate of Agent.

 

“Affiliated Entity”
shall mean each of (a) Myers & Sons Construction, L.P., a California limited partnership (“Myers”),
(b) Road and Highway Builders, LLC, a Nevada limited liability company (“RHB LLC”), (c) Road and Highway
Builders Inc., a Nevada corporation (“RHB Inc.”) and (d) Sterling Hawaii Asphalt, LLC, a Hawaii limited
liability company (“Sterling Hawaii”).

 

“Agent Fee Letter” shall
mean that certain fee letter agreement, dated on or about the date hereof, by and between the Agent and the Borrower.

 

“Agent Indemnitee”
shall have the meaning given such term in Section 10.10.

 

“Approved Fund” shall
mean any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender (c) an entity or an Affiliate of an
entity that administers or manages a Lender, or (d) the same investment advisor or an advisor under common control with such Lender,
Affiliate or advisor, as applicable.

 

“Bail-In Action” shall
mean the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability
of an EEA Financial Institution.

 

“Bail-In Legislation”
shall mean, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and
of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in
the EU Bail-In Legislation Schedule.

 

“Bonding Company”
shall mean Travelers Casualty and Surety Company of America or any other bonding company listed in the Department of Treasury’s
listing of approved sureties as of the most recent date for which financial statements have been delivered to Agent and Lenders
pursuant to Sections 6.01(a), (b) or (c).

 

“Books” shall mean
books and records (including each Loan Party’s Records indicating, summarizing, or evidencing such Loan Party’s assets
(including the Collateral) or liabilities, each Loan Party’s Records relating to such Loan Party’s business operations
or financial condition, and each Loan Party’s goods or General Intangibles related to such information).

 

“Business Day” shall
mean any day, except a Saturday, a Sunday or any other day on which commercial banks are authorized or required to close in the
State of California or the State of New York.

 

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

 

“Cash Collateral Liquidity”
shall mean, at any time, the aggregate amount of unrestricted cash and cash equivalents held in accounts of the Borrower and the
Guarantors that are subject to a control agreement in favor of the Agent.

 

“CFC” shall mean a
controlled foreign corporation as such term is defined in Section 957 of the IRC.

 

“Change in Law” shall
mean the occurrence, after the date of this Loan Agreement, of any of the following: (a) the adoption or taking effect of any law,
rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, implementation, interpretation
or application thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether
or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary,
(x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder
or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International
Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign
regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless
of the date enacted, adopted or issued.

 

    	2

     

    

“Change of Control”
shall mean an event or series of events by which: (a) any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such
plan), becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934,
except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or
group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an
“option right”)), directly or indirectly, of 35% or more of the Equity Securities of the Borrower entitled to vote
for members of the board of directors or equivalent governing body of the Borrower on a fully-diluted basis (and taking into account
all such Equity Securities that such “person” or “group” has the right to acquire pursuant to any option
right); (b) during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent
governing body of the Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body
on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals
referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board
or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved
by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination
at least a majority of that board or equivalent governing body (excluding, in the case of both clause (ii) and clause
(iii), any individual whose initial nomination for, or assumption of office as, a member of that board or equivalent governing
body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board
of directors); (c) any “change in control” (or comparable term) or mandatory redemption event or similar event occurs
under any agreement governing Material Indebtedness of any Loan Party or any of its Subsidiaries; (d) all or substantially all
of the Borrower’s and its Subsidiaries’ consolidated assets are sold, transferred or disposed; or (e) Borrower (directly
or indirectly) ceasing to own and control 100% of the economic and voting interests of each class of the outstanding Equity Securities
of each of its wholly-owned Subsidiaries, free and clear of all Liens (other than the (i) Liens in favor of the Agent to secure
the Obligations hereunder, (ii) Liens existing in such Person’s organizational documents in effect as of the date hereof
or (iii) restrictions on transfer under applicable federal and state securities laws), except where such failure is as a result
of a transaction expressly permitted hereunder.

 

“Charter” shall
have the meaning given such term in Section 4.01(a)(iii).

 

“Claim” shall have
the meaning given such term in Section 11.04.

 

“Closing Date” shall
mean the date on which the conditions precedent set forth in Article IV shall have been satisfied.

 

“Closing Date Acquisition”
shall have the meaning given such term in the recitals hereof.

 

“Closing Date Earn-Out”
shall mean the “Earn-Out Payments” as defined in the Acquisition Agreement as in effect on the Closing Date.

 

“Closing Date Deferred Payments”
shall mean the “Deferred Payments” as defined in the Acquisition Agreement as in effect on the Closing Date.

 

“Closing Date Seller Notes”
shall mean the “Promissory Notes” as defined in the Acquisition Agreement as in effect on the Closing Date, which Promissory
Notes shall be subordinated to the Obligations in all respects, including in respect of payment, pursuant to the Subordination
Agreement, and if so subordinated, such Closing Date Seller Notes shall constitute Subordinated Debt.

 

    	3

     

    

“Closing Date Subordination Agreement”
shall mean that certain Subordination Agreement, dated as of the Closing Date, by and among the Agent, for the Lenders, and the
Creditors (as defined therein) with respect to the Closing Date Seller Notes.

 

“Code” shall mean
the Uniform Commercial Code as in effect from time to time in the state of New York, and any successor statute, as in effect from
time to time (except that terms used herein which are defined in the Uniform Commercial Code as in effect in the State of New York
on the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment of such statute except
as Agent or the Required Lenders may otherwise determine).

 

“Collateral” shall
mean property described on Exhibit B attached hereto and the Real Property subject to the Mortgages; provided that
the Excluded Property shall not become Collateral until such time as (a) the Liens thereon in favor of Myers and RHB LLC as of
the Closing Date are (i) terminated, discharged or released in their entirety or (ii) subordinated to the Liens securing the Obligations
or (b) each of Myers and RHB subordinate their respective Liens in the Excluded Property to the Liens of the Agent securing the
Obligations, in which case, such Excluded Property shall automatically and immediately become and be deemed a part of the Collateral.

 

“Collateral Agency Agreement”
shall mean the Collateral Agency Agreement dated on or about the date hereof among Corporation Service Company (the “Vehicle
Collateral Agent”), the Agent and the Borrower.

 

“Collateral Enhancement Requirement”
shall have the meaning given such term in Schedule 3 hereto.

 

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

 

“Connection Income Taxes”
shall mean Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes
or branch profits Taxes.

 

“Consolidated Capital Expenditures”
shall mean, for any period, the aggregate amount of all expenditures (whether paid in cash or accrued as a liability and including
any expenditures resulting in Capital Lease Obligations) on used equipment of the Loan Parties and their respective Subsidiaries
during such period determined on a consolidated basis that, in accordance with GAAP, are or should be included in “purchase
of property and equipment” or similar items reflected in the consolidated statement of cash flows of the Loan Parties and
their respective Subsidiaries.

 

“Consolidated Current Assets”
shall mean, as at any date of determination, the total assets of the Loan Parties and their respective Subsidiaries which may properly
be classified as current assets (excluding deferred tax assets) on a consolidated balance sheet of the Loan Parties and their respective
Subsidiaries in accordance with GAAP, excluding cash and cash equivalents; provided that Consolidated Current Assets shall
be calculated without giving effect to the impact of purchase accounting.

 

“Consolidated Current Liabilities”
shall mean, as at any date of determination, the total liabilities (excluding deferred taxes and taxes payable) of the Loan Parties
and their respective Subsidiaries which may properly be classified as current liabilities (other than the current portion of any
Loans and other long-term liabilities, and accrued interest thereon) on a consolidated balance sheet of the Loan Parties and their
respective Subsidiaries in accordance with GAAP; provided that Consolidated Current Liabilities shall be calculated without
giving effect to the impact of purchase accounting.

 

    	4

     

    

“Consolidated EBITDA”
shall mean for any period, Consolidated Net Income,

 

plus (i) the sum, without duplication, of the amounts
for such period, but solely to the extent decreasing Consolidated Net Income for such period, of:

 

		(a)	Consolidated Interest Expense, plus
	 	 	 

		(b)	provisions for Taxes based on income, plus
	 	 	 

		(c)	non-cash expenses resulting from write-downs of assets (other than inventory, accounts receivable
or other current assets) and the impairment of goodwill, plus
	 	 	 

		(d)	non-cash non-recurring losses (including losses on asset sales and extinguishment of debt), plus
	 	 	 

		(e)	total depreciation expense, plus
	 	 	 

		(f)	total amortization expense, plus
	 	 	 

		(g)	non-cash stock-based compensation expense, plus
	 	 	 

		(h)	to the extent less than Twelve Million Dollars ($12,000,000) is received from the NTTA Matter,
an amount equal to the difference between Twelve Million Dollars ($12,000,000) and such amount so received; provided that, such
add-back pursuant to this clause (i)(h) shall be taken in the fiscal quarter in which such amount is received by the Borrower,
plus
	 	 	 

		(i)	one-time non-recurring costs and expenses incurred in connection with the Transactions in an amount
not to exceed Six Million Dollars ($6,000,000) to the extent disclosed to Agent and the Lenders in a sources of uses or funds flow
on or prior to the Closing Date; and

 

minus (ii) the sum, without duplication, of the
amounts for such period, but solely to the extent increasing Consolidated Net Income for such period, of:

 

		(a)	non-cash non-recurring gains (including gains on asset sales and extinguishment of debt), plus
	 	 	 

		(b)	interest income, plus
	 	 	 

		(c)	any benefit, including income tax credits and refunds, from income taxes (including franchise,
gross receipts and single business taxes imposed in lieu of income taxes), plus
	 	 	 

		(d)	to the extent more than Twelve Million Dollars ($12,000,000) is received from the NTTA Matter,
an amount equal to the difference between Twelve Million Dollars ($12,000,000) and such amount so received; provided that, such
deduction pursuant to this clause (ii)(d) shall be taken in the fiscal quarter in which such amount is received by the Borrower,
plus
	 	 	 

		(e)	any amount shown on the consolidated statement of cash flows of Borrower on the line item “distributions
to non-controlling interest owners”.

 

For the avoidance of doubt, Consolidated EBITDA
(and all component terms or definitions used therein) shall be calculated in accordance with Borrower’s historical numbers
set forth in its publicly filed Form 10-K or Form 10-Q or any other periodic or special report or registration statement which
Borrower has filed with the SEC or with any national securities exchange, as more specifically set forth on Schedule 3 hereto.
For the purposes of calculating Consolidated EBITDA in connection with determining the Total Secured Leverage Ratio or for the
calculation of Consolidated EBITDA pursuant to Section 6.17(f), in each case, for any measurement period, if at any time during
such measurement period Borrower or any of its Subsidiaries shall have made a Closing Date Acquisition or Permitted Acquisition,
Consolidated EBITDA for such measurement period shall be calculated after giving pro forma effect thereto (as if any such Closing
Date Acquisition or Permitted Acquisition occurred on the first day of such measurement period).

 

    	5

     

    

“Consolidated Interest Expense”
shall mean for any period, total cash interest expense (including that attributable to Capital Lease Obligations) of the Loan Parties
and their respective Subsidiaries for such period with respect to all outstanding Indebtedness of the Loan Parties and their respective
Subsidiaries (including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’
acceptance financing and net costs under swap agreements in respect of interest rates to the extent such net costs are allocable
to such period in accordance with GAAP).

 

“Consolidated Net Income”
shall mean for any period, the consolidated net income (or loss) of the Loan Parties and their respective Subsidiaries, determined
on a consolidated basis in accordance with GAAP, which shall be set forth in the Borrower’s publicly filed financial statements
as the “Net Income” or “Net Loss” line item; provided that there shall be excluded, without duplication,
the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with
any Loan Party or any of their respective Subsidiaries.

 

“Consolidated Secured Indebtedness”
shall mean, as of any date of determination, the aggregate amount of Indebtedness of the Loan Parties and their respective Subsidiaries
that, as of such date, is secured by a Lien on any asset or property of the Loan Parties or any of their respective Subsidiaries.

 

“Contract Backlog”
shall mean an amount equal to the average of (a) the “Backlog” or “Contract Backlog” amount, multiplied
by (b) gross margin included in such “Backlog” or “Contract Backlog”, in each case, calculated on a basis
consistent with historical reporting practices reflected in, and for the four fiscal quarter period most recently ended in, Borrower’s
latest Form 10-Q or Form 10-K; provided that, no amount for Tealstone Residential shall be included in such calculation; provided,
further, that to the extent any business, division or assets are divested or disposed of, or acquired, merged, consolidated or
amalgamated, in each case, as permitted hereunder, such calculation shall be made after giving pro forma effect to the portion
of “Backlog” or “Contract Backlog” attributed to such business, division or assets which is the subject
of such divestiture, disposition, acquisition, merger, consolidated or amalgamation.

 

“Contractual Obligation”
of any Person shall mean, any indenture, note, security, deed of trust, mortgage, security agreement, lease, license, sublicense,
guaranty, instrument, contract, agreement or other form of obligation or undertaking to which such Person is a party or by which
such Person or any of its property is bound.

 

“Copyrights” shall
mean any and all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship
and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now
or hereafter existing, created, acquired or held.

 

“Default” shall mean
any event or circumstance not yet constituting an Event of Default but which, with the giving of any notice or the lapse of any
period of time or both, would become an Event of Default.

 

“Default Rate” shall
mean, as of any date of determination, an interest rate per annum equal to two percent (2%) in excess of the rate per annum otherwise
applicable on such date.

 

“ECF Declined Amount”
shall have the meaning set forth in Section 2.02(d)(iii)(C).

 

“ECF Prepayment Offer”
shall have the meaning set forth in Section 2.02(d)(iii)(A).

 

“ECF Prepayment Offer Date”
shall have the meaning set forth in Section 2.02(d)(iii)(A).

 

“EEA Financial Institution”
shall mean (i) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision
of an EEA Resolution Authority, (ii) any entity established in an EEA Member Country which is a parent of an institution described
in clause (i) of this definition, or (iii) any financial institution established in an EEA Member Country which is a Subsidiary
of an institution described in clauses (i) or (ii) of this definition and is subject to consolidated supervision with its parent.

 

    	6

     

    

“EEA Member Country”
shall mean any of the member states of the European Union, Iceland, Liechtenstein and Norway.

 

“EEA Resolution Authority”
shall mean any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country
(including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Enhanced Rate” shall
mean, as of any date of determination, an interest rate per annum equal to the sum of (i) an amount equal to (a) one and one-half
percent (1.50%) multiplied by (b) a fraction the numerator of which is the Achieved Collateral Enhancement Value, and the denominator
of which is the Collateral Enhancement Requirement, and (ii) the rate per annum otherwise applicable on such date.

 

“Enhanced Rate Adjustment”
shall mean, in the event the Collateral Enhancement Value is not satisfied on or prior to the first anniversary of the Closing
Date, Borrower shall pay interest on outstanding Obligations at a per annum rate equal to the Enhanced Rate.

 

“Environmental Claims”
shall mean any and all liabilities, administrative, regulatory or judicial actions, suits, demands, demand letters, Claims, liens,
notices of noncompliance or violation, investigations or proceedings relating in any way to any Environmental Law, including, but
not limited to, (i) any and all Claims by governmental or regulatory authorities for enforcement, cleanup, removal, response, remedial
or other actions or damages pursuant to any applicable Environmental Law and (ii) any and all Claims by any third party seeking
damages, contribution, indemnification, cost recovery, compensation or injunctive relief resulting from the release or threatened
release of Hazardous Materials or arising from alleged injury or threat of injury from the release or threatened release of Hazardous
Materials.

 

“Environmental Law”
shall mean any past, present or future Requirement of Law relating to pollution, the protection of the environment or human or
public health or safety, or natural resources.

 

“Equity Securities”
of any Person shall mean (i) all common stock, preferred stock, participations, shares, partnership interests, membership
interests or other equity interests in and of such Person (regardless of how designated and whether or not voting or non-voting)
and (ii) all warrants, options and other rights to acquire any of the foregoing.

 

“ERISA” shall mean
the Employee Retirement Income Security Act of 1974, as amended.

 

“ERISA Affiliate”
shall mean any Person that is treated at a relevant time as a single employer with any Loan Party pursuant to Section 414(b) or
(c) of the IRC (and Sections 414(m) and (o) of the IRC for purposes of provisions relating to Section 412 of the IRC).

 

“ERISA Event” shall
mean (a) any of the events set forth in Section 4043(c) of ERISA occurs with respect to a Pension Plan, other than events for which
the thirty-day notice period has been waived by Governmental Rule, (b) the withdrawal of any Loan Party or any ERISA Affiliate
from a Pension Plan subject to Section 4063 of ERISA during a plan year in which such entity was a substantial employer (as defined
in Section 4001(a)(2) of ERISA) or a substantial cessation of operations by such Loan Party or ERISA Affiliate that is treated
as such a withdrawal from a Pension Plan under Section 4062(e) of ERISA; (c) a complete or partial withdrawal (as defined in Section
4203 and 4205 of ERISA, respectively) by any Loan Party or any ERISA Affiliate from a Multiemployer Plan, the assertion by a Multiemployer
Plan that a Loan Party or any ERISA Affiliate has incurred withdrawal liabilities (as described in Section 4201 of ERISA), or notification
to a Loan Party or ERISA Affiliate by a Multiemployer Plan sponsor that such Multiemployer Plan is or is expected to become insolvent
or experience a mass withdrawal (as such terms are defined in Title IV of ERISA); (d) a failure by a Loan Party or any ERISA
Affiliate to make required contributions to a Pension Plan or Multiemployer Plan; (e) the filing by the Pension Plan sponsor of
a notice of intent to terminate or the treatment by the PBGC of a plan amendment as a termination of a Pension Plan under Section
4041 of ERISA; (f) the institution by the PBGC of proceedings to terminate a Pension Plan; (g) the determination by the Pension
Plan or Multiemployer Plan actuary that any Pension Plan is considered an “at-risk” plan or a Multiemployer Plan is
in “endangered” or “critical” status within the meaning of Sections 430, 431 and 432 of the IRC or Sections
303, 304 and 305 of ERISA; (h) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon any Loan Party or any ERISA Affiliate; (i) any failure of a Plan intended to meet
the requirements of qualification under Section 401(a) of the IRC to so qualify; and (j) any other event that would reasonably
be expected to result in a material liability or obligation to any Loan Party under ERISA or the IRC with respect to a Plan.

 

    	7

     

    

“EU Bail-In Legislation Schedule”
shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect
from time to time.

 

“Event of Default”
shall have the meaning set forth in Article 9 of this Loan Agreement.

 

“Event of Loss” shall
mean the theft, loss, physical destruction or damage, seizure, taking or similar event with respect to any property or assets owned
by any Loan Party or any of its Subsidiaries which results in the receipt by any Loan Party or any of its Subsidiaries of any cash
insurance proceeds or condemnation award payable by reason thereof, whether by a third party or any Governmental Authority.

 

“Excluded Accounts”
shall mean those deposit or other bank accounts that are used (a) solely by the Loan Parties to fund payroll, (b) to cash collateralize
letter of credit obligations in the aggregate amount outstanding at any time not to exceed $5,000,000 and (c) solely as a cash
management account for Project Specific JVs to fund the initial capitalization of project costs or the ongoing operational costs
of the project for which such Project Specific JV was created or formed.

 

“Excluded Property”
means the “Collateral Security” as defined in each of those certain Deeds of Trust, Security Agreements, Assignments
of Rents and Financing Statements, dated as of March 11, 2016, granted by Texas Sterling Construction Co. in favor of Christopher
B. Welsh, Trustee, for the benefit of RHB LLC and Myers for property commonly known as (a) 3475 High River Rd., Fort Worth, Texas
76115, (b) 20800 Fernbush Lane, Houston, Texas 77073, (c) St. Hedwig Rd., San Antonio, Texas 78220 and (d) 5638 FM 1346, San Antonio,
Texas 78220.

 

“Excess Cash Flow”
shall mean for any fiscal quarter (or other period specified herein) of the Borrower, the excess, if any, of (a) the sum of (i)
Consolidated EBITDA for such period plus (ii) proceeds received by the Loan Parties or any of its Subsidiaries from Transfers (except,
in each case and without duplication, to the extent any such proceeds (A) arise from the Permitted Dispositions and/or the NTTA
Matter and are used to prepay the Loans pursuant to Section 2.02(d)(i) or (B) are used to prepay the Loans, are reinvested or otherwise
remain available to be reinvested pursuant to Section 2.02(d)(ii)(C)), minus, (b) without duplication (and only to the extent
added back or not deducted in determining Consolidated EBITDA for such period):

 

		(i)	Consolidated Interest Expense (excluding any Consolidated Interest Expense associated with intercompany
Indebtedness) paid in cash by the Loan Parties or any of its Subsidiaries (other than interest income), minus
	 	 	 

		(ii)	the aggregate amount actually paid by the Loan Parties or any of its Subsidiaries in cash before
the date the Excess Cash Flow payment for such period is actually made (provided that any amount so deducted in respect of any
period is not also deducted in respect of any subsequent period) on account of taxes accrued in respect of such period based on
income of the Loan Parties or any of its Subsidiaries (other than Tax refunds, credits and benefits), minus
	 	 	 

		(iii)	the aggregate amount actually paid by the Loan Parties or any of its Subsidiaries in cash before
the date the Excess Cash Flow payment for such period is actually made (provided that any amount so deducted in respect of any
period is not also deducted in respect of any subsequent period) on account of Consolidated Capital Expenditures to the extent
paid in cash (but excluding the principal amount of Loans or other Indebtedness incurred in connection with such expenditures,
any such expenditures financed with the proceeds of any issuance of Equity Securities or any amount reinvested pursuant to Section
2.02(d)(ii)(C)) and any such expenditures financed with insurance proceeds related to any Event of Loss), minus
	 	 	 
	

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		(iv)	any extraordinary, unusual, non-recurring or non-operating cash loss or expense paid or incurred
by the Loan Parties or any of its Subsidiaries during such period, minus
	 	 	 

		(v)	any internally generated cash paid by the Loan Parties or any of its Subsidiaries in connection
with the Closing Date Acquisition, the Transactions and/or any other acquisition permitted hereunder; and

 

adding or subtracting, as the case may be, decreases
(which, if negative, shall be the absolute value of the difference) or increases (if positive) in Net Working Capital (such adjustments,
the “Net Working Capital Adjustment”) during such period (measured as of the first and last days of such
period).

 

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

 

“Excluded Taxes” shall
mean, with respect to a Recipient of any payment to be made by or on account of any Obligation of any Loan Party, (a) Taxes imposed
on or measured by its net income (however denominated), franchise Taxes imposed on it, and branch profits Taxes, in each case,
(i) imposed by the jurisdiction (or any political subdivision thereof) under the laws of which such Recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable lending office is located (“Lending
Office”), or (ii) that are Other Connection Taxes, (b) in the case of a Lender, any U.S. federal withholding Tax
that is imposed on amounts payable to or for the account of such Lender pursuant to a law in effect at the time such Lender becomes
a party hereto (for the avoidance of doubt, whether as an original party hereto or as an assignee) (or designates a new Lending
Office), except to the extent that such Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending
Office (or assignment), to receive additional amounts from the Loan Parties with respect to such withholding Tax pursuant to Section
2.05, (c) Taxes attributable to a failure of a Recipient to comply with Section 2.05(f), and (d) any U.S. federal withholding Taxes
imposed under FATCA.

 

“Existing Bonding Letter”
shall mean that certain letter dated as of March 3, 2017, provided by Travelers Casualty and Surety Company of America to the Borrower,
and delivered to Oaktree prior to the Closing Date.

 

“Extraordinary Receipts”
shall mean any payments received by a Loan Party or any of its Subsidiaries not in the ordinary course of business (and not consisting
of proceeds described in Section 2.02(d)(i) )consisting of (a) proceeds of judgments, proceeds of settlements or other consideration
of any kind in connection with any cause of action, (b) indemnity payments (other than to the extent such indemnity payments are
(i) immediately payable to a Person that is not an Affiliate of a Loan Party or any of its Subsidiaries, or (ii) received by a
Loan Party or any of its Subsidiaries as reimbursement for any payment previously made to such Person), and (c) any purchase price
adjustment (other than a working capital adjustment) received in connection with any acquisition or purchase agreement.

 

“FATCA” shall mean
Sections 1471 through 1474 of the IRC, as of the date of this Loan Agreement (or any amended or successor version that is substantively
comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof,
any agreements entered into pursuant to Section 1471(b)(1) of the Code, or any intergovernmental agreement between a non-U.S. jurisdiction
and the United States with respect to the foregoing.

 

“Fee Letter” shall
mean that certain fee letter agreement, dated as of March 8, 2017, by and between Oaktree and the Borrower.

 

    	9

     

    

“Financial Covenants”
shall have the meaning given such term in Section 6.17.

 

“Financial Statements”
shall mean, with respect to any accounting period for any Person, statements of operations, cash flows and, with respect to audited
statements only, stockholder’s equity of such Person for such period, and a balance sheet of such Person as of the end of
such period, setting forth in each case in comparative form figures for the corresponding period in the preceding fiscal year if
such period is less than a full fiscal year or, if such period is a full fiscal year, corresponding figures from the preceding
fiscal year, all prepared in reasonable detail and in accordance with GAAP, except, in the case of unaudited Financial Statements,
for the absence of footnotes and normal year-end adjustments. Unless otherwise indicated, each reference to Financial Statements
of any Person shall be deemed to refer to Financial Statements prepared on a consolidated basis.

 

“Foreign Assets Control Regulations”
shall have the meaning given such term in Section 7.15.

 

“Foreign Holder” shall
mean any Recipient that is not a U.S. Person.

 

“Fund” shall mean
any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in
commercial loans and similar extensions of credit in the ordinary course of its business.

 

“Funding Date” shall
mean any date on which any Loan is made to or on account of Borrower under this Loan Agreement.

 

“GAAP” shall mean
generally accepted accounting principles in the United States of America as in effect from time to time as set forth in the opinions
and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and the statements
and pronouncements of the Financial Accounting Standards Board which are applicable to the circumstances as of the date of determination
consistently applied. Notwithstanding anything to the contrary contained herein, all financial statements delivered hereunder shall
be prepared, and all financial covenants contained herein shall be calculated, without giving effect to any election under the
Statement of Financial Accounting Standards No. 159 (or any similar accounting principle) permitting a Person to value its financial
liabilities or Indebtedness at the fair value thereof.

 

“Governmental Official”
shall mean any officer or employee of a Governmental Authority or any department, agency or instrumentality thereof, including
state-owned entities, or of a public organization or any person acting in an official capacity for or on behalf of any such government,
department, agency, or instrumentality or on behalf of any such public organization.

 

“Governmental Authority”
shall mean any domestic or foreign national, state or local government, any political subdivision thereof, any department, agency,
authority or bureau of any of the foregoing, or any other entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

 

“Governmental Rule”
shall mean any law (including common law), rule, regulation, ordinance, order, code interpretation, judgment, decree, directive,
guidelines, policy or similar form of decision of any Governmental Authority.

 

“Guaranty” shall mean
that certain Guaranty in favor of the Agent, for the benefit of the Agent and the Lenders, executed by the Guarantors, in substantially
the form attached hereto as Exhibit N, as amended, restated, amended and restated, supplemented or otherwise modified from
time to time.

 

“Hazardous Materials”
shall mean any chemical, material, or substance for which liability or standards of conduct may be imposed, or that is defined,
listed, regulated, or otherwise classified as a contaminant, pollutant, toxic pollutant, toxic, infectious or hazardous substance,
extremely hazardous substance or chemical or hazardous waste, under Environmental Laws, including any petroleum or petroleum products,
radioactive materials, friable asbestos, urea formaldehyde foam insulation, noise, odor or mold.

 

    	10

     

    

“Indebtedness” of
any Person shall mean and include the aggregate amount of, any liability, whether or not contingent, without duplication, consisting
of: (i) all obligations of such Person for borrowed money (whether or not the recourse of the lender is to the whole of the
assets of such Person or only to a portion thereof) and all Obligations (including, without limitation, any Prepayment Premium
or Make-Whole Amount), (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments,
(iii) all obligations of such Person to pay the deferred purchase price of property or services (whether contingent or otherwise,
including, without limitation, all earn-out obligations (determined as the greater of (x) the amount required to be shown as a
liability in accordance with GAAP at the time of the closing of the applicable acquisition pursuant to which such earn-out obligation
arises and (y) the amount of such earn-out obligation actually paid in connection with the subject transaction) and similar deferred
payment obligations) (other than accounts payable to a trade creditor incurred in the ordinary course of business of such Person
determined in accordance with GAAP and payable in accordance with customary trade practices), (iv) all obligations under Capital
Lease Obligations of such Person, (v) all obligations or liabilities of others secured by a lien on any asset of such Person,
whether or not such obligation or liability is assumed, (vi) all guaranties of such Person of the obligations of another Person
or any contractual obligation, contingent or otherwise, of such Person to pay or be liable for the payment of any indebtedness
described in this definition of another Person, including, without limitation, any such indebtedness, directly or indirectly guaranteed,
or any agreement to purchase, repurchase, or otherwise acquire such indebtedness, obligation or liability or any security therefor,
or to provide funds for the payment or discharge thereof, or to maintain solvency, assets, level of income, or other financial
condition, (vii) all obligations created or arising under any conditional sale or other title retention agreement with respect
to property acquired by such Person (even if the rights and remedies of the seller or lender under such agreement upon an event
of default are limited to repossession or sale of such property), (viii) all reimbursement and other payment obligations,
contingent or otherwise, in respect of surety bonds (whether bid, performance or otherwise), letters of credit, banker’s
acceptances, drafts or similar documents or instruments issued for such Person’s account, (ix) all obligations with respect
to redeemable stock and redemption or repurchase obligations under any Equity Securities or other equity securities issued by such
Person (including any obligation to pay dividends, other than dividends payable in shares of common stock), (x) all obligations,
liabilities and indebtedness of such Person (marked to market) arising under swap agreements, cap agreements and collar agreements
and other agreements or arrangements designed to protect such person against fluctuations in interest rates or currency or commodity
values, (xi) all obligations owed by such Person under license agreements with respect to non-refundable, advance or minimum guarantee
royalty payments, (xii) to the extent not bonded by a Bonding Company, indebtedness or obligations of any partnership or joint
venture in which such Person is a general partner or a joint venturer to the extent such Person is liable therefor pursuant to
a contractual obligation or as a result of such Person’s ownership interest in such entity, except for the avoidance of doubt,
any direct or indirect Subsidiary of such Person and (xiii) the principal and interest portions of all rental obligations of such
Person under any synthetic lease or similar off-balance sheet financing where such transaction is considered to be borrowed money
for tax purposes but is classified as an operating lease in accordance with GAAP.

 

“Indemnified Person”
shall have the meaning given such term in Section 11.04.

 

“Indemnified Taxes”
shall mean (a) Taxes imposed on or with respect to any payment made by or on account of any Obligation of any Loan Party under
any Transaction Document, other than Excluded Taxes, and (b) to the extent not otherwise described in clause (a), Other Taxes.

 

“Information Declination Notice”
shall have the meaning given such term in Section 6.01.

 

“Intellectual Property”
shall mean: (i) all inventions, designs, know-how, methods, processes, drawings, specifications or other data or information
and all memoranda, notes and records with respect to any research and development, and all embodiments or fixations thereof whether
tangible or intangible form; (ii) Copyrights, Trademarks, Patents and mask works; (iii) any and all trade secrets, and
any and all intellectual property rights in computer software and computer software products; (iv) any and all design rights;
(v) any and all claims for damages by way of past, present and future infringement of any of the rights included above, with
the right, but not the obligation, to sue for and collect such damages for said use or infringement of the intellectual property
rights identified above; (vi) all licenses or other rights to use any of the Copyrights, Patents, Trademarks, mask works,
or any other property rights described above; (vi) all amendments, renewals and extensions of any of the Copyrights, Trademarks,
Patents or mask works; and (vii) all proceeds and products of the foregoing.

 

    	11

     

    

“Intellectual Property Security
Agreement” shall mean each Intellectual Property Security Agreement executed and delivered by one or more Loan Parties
and Agent, in substantially the form of Exhibit E.

 

“Interest Period”
shall mean the period commencing on the Closing Date or the applicable date that the previous Interest Period is continued or the
date on which the Borrower selects a new Interest Period pursuant to Section 2.02(b) and ending on the date one, two, three or
six months thereafter, as determined pursuant to Section 2.02(b); provided that any Interest Period that would otherwise end on
a day that is not a Business Day shall be extended to the next succeeding Business Day.

 

“Interest Rate Agreement”
shall mean any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedging
agreement or other similar agreement or arrangement, each of which is (a) for the purpose of hedging the interest rate exposure
associated with the Loan Parties’ and their respective Subsidiaries’ operations, and (b) not for speculative purposes.

 

“Investment” shall
mean the purchase, acquisition or beneficial ownership of any Equity Securities, or any obligations, Indebtedness or other interest
in, or all or substantially all of the assets of, any Person, or the making of any advance, loan, extension of credit or capital
contribution to, or any other investment in, any Person.

 

“IRC” shall mean the
Internal Revenue Code of 1986, as in effect from time to time, and regulations promulgated thereunder.

 

“Joinder Requirements”
shall have the meaning given such term in Section 6.10.

 

“Landlord Waiver”
shall mean the Landlord Waiver substantially in the form attached as Exhibit C hereto.

 

“Lending Office” shall
have the meaning given such term in the definition of Excluded Taxes.

 

“LIBOR Rate” shall
mean for any Interest Period, (i) the rate per annum appearing on the page of the Reuters Screen which displays the London interbank
offered rate administered by ICE Benchmark Administration Limited (such page currently being the LIBOR01 page) (the “LIBOR
Rate”) for deposits with a term equivalent to such Interest Period in Dollars, determined as of approximately 11:00 a.m.
(London, England time), two Business Days prior to the commencement of such Interest Period, or (ii) in the event the rate referenced
in the preceding clause (i) does not appear on such page or service or if such page or service shall cease to be available, the
rate determined by the Agent (acting at the direction of the Required Lenders) or the Required Lenders to be the offered rate on
such other page or other service which displays the LIBO Rate for deposits with a term equivalent to such Interest Period in Dollars,
determined as of approximately 11:00 a.m. (London, England time) two Business Days prior to the commencement of such Interest Period;
provided, that, the LIBOR Rate shall not be less than 1.00% per annum.

 

“Lien” shall mean,
with respect to any property, any security interest, mortgage, pledge, lien, claim, charge or other encumbrance in, of, or on such
property or the income therefrom, including, without limitation, the interest of a vendor or lessor under a conditional sale agreement,
capital lease or other title retention agreement, or any agreement to provide any of the foregoing, and the filing of any financing
statement or similar instrument under the Code or comparable law of any jurisdiction.

 

“Loan” or “Term
Loan” shall mean the loans now or hereafter made by or on behalf of any Lender or by Agent for the account of any
Lender pursuant to this Loan Agreement as set forth in Article 2 hereof.

 

“Loan Agreement” shall
mean this Loan and Security Agreement, as amended, restated, amended and restated, modified or supplemented from time to time.

 

“Loan Documents” shall
mean, collectively, the Loan Agreement, the Guaranty, the Pledge Agreement, the Notes, the Intellectual Property Security Agreements,
the Perfection Certificate, the Landlord Waivers, the Mortgages, the Agent Fee Letter, the Fee Letter, the Collateral Agency Agreement,
any Subordination Agreement, and the other documents or agreements executed in connection herewith or therewith including any other
collateral or security document or agreement executed by a Loan Party in favor of Agent, for the benefit of the Agent and the Lenders,
in each case, as amended, restated, amended and restated, modified or supplemented from time to time.

 

    	12

     

    

“Loan Party” shall
have the meaning given such term in the recitals hereof.

 

“Loan Party Registered Intellectual
Property” shall have the meaning given such term in Section 5.15.

 

“Loan Party Intellectual Property”
shall have the meaning given such term in Section 5.15.

 

“Loan Party Intellectual Property
Licenses” shall have the meaning given such term in Section 5.15.

 

“Loan Percentage”
shall mean, with respect to a Lender, the percentage of each Loan specified opposite such Lender’s name on Schedule 2
hereto.

 

“LTIP” shall mean
the Borrower’s 2017 Incentive Compensation Plan, as approved by the stockholders of the Borrower, as amended, restated or
otherwise modified from time to time so long as such amendment, restatement or modification is approved by the requisite vote of
the stockholders of the Borrower, to the extent required by applicable law or the organizational documents of the Borrower.

 

“Make-Whole Amount”
shall mean, on any date of prepayment of all or any portion of a Loan, an amount in cash equal to the present value, as determined
by the Agent (acting at the direction of the Required Lenders) or the Required Lenders in consultation with the Borrower, of all
required interest payments due on the portion of the Loans that are prepaid from the date of prepayment through and including the
second anniversary of the Closing Date, discounted to the date of prepayment on a quarterly basis (assuming a 360-day year and
actual days elapsed) at a rate equal to the sum of the Treasury Rate plus 0.50%.

 

“Material Adverse Effect”
shall mean a material adverse effect on (i) the business, assets, performance, operations or financial or other condition
of the Loan Parties and their respective Subsidiaries, taken as a whole; (ii) the ability of the Loan Parties and their respective
Subsidiaries to pay or perform the Obligations in accordance with the terms of this Loan Agreement and the other Transaction Documents
and to avoid an Event of Default under any Transaction Document; (iii)  the legality, validity, enforceability, perfection
or priority of the Liens of Agent upon the Collateral; (iv) the Collateral or its value; or (v) the rights and remedies of any
Lender under this Loan Agreement and the other Transaction Documents.

 

“Material Indebtedness”
shall mean, with respect to any Person, Indebtedness (other than the Obligations) of such Person in an aggregate principal amount
exceeding $5,000,000.

 

“Material Titled Assets”
shall have the meaning given such term in Section 6.08(a).

 

“Minority Subsidiary”
shall mean any entity in which a Person, directly or indirectly, beneficially owns 50% or less of the Equity Securities.

 

“Mortgages” shall
mean all mortgages, deeds of trust, or deeds to secure debt, as applicable, delivered with respect to the Real Property substantially
in the form of Exhibit M (with such changes as are reasonably approved by the Required Lenders to account for local law
matters), as they may be amended, supplemented or otherwise modified from time to time.

 

“Multiemployer Plan”
shall mean any employee benefit plan of the type described in Section 4001(a)(3) of ERISA and subject to Title IV of ERISA to which
a Loan Party or any ERISA Affiliate makes or is obligated to make contributions, or with respect to which any Loan Party or ERISA
Affiliate has or could reasonably be expected to have any liability or obligation.

 

“Myers” shall have
the meaning given such term in the definition of “Affiliated Entity.”

 

    	13

     

    

“Negotiable Collateral”
shall mean letters of credit, letter-of-credit rights, instruments, promissory notes, drafts and documents (as each such term is
defined in the Code).

 

“Net Cash Proceeds”
shall mean (a) in connection with any Transfer or Event of Loss, the proceeds thereof in the form of cash and cash equivalents
(including any such proceeds received by way of deferred payment of principal pursuant to a note or installment receivable or purchase
price adjustment receivable or otherwise, but only as and when received), net of attorneys’ fees, accountants’ fees,
investment banking fees, amounts required to be applied to the repayment of Indebtedness secured by a Lien expressly permitted
hereunder on any asset that is the subject of such Transfer or Event of Loss (other than any Lien pursuant to any Loan Document)
and other customary and reasonable fees and expenses actually incurred in connection therewith and net of Taxes paid and the Borrower’s
reasonable and good faith estimate of income, franchise, sales, and other applicable Taxes required to be paid by any Loan Party
or any of its respective Subsidiaries in connection with such Transfer or Event of Loss in the taxable year that such Transfer
or Event of Loss is consummated, the computation of which shall, in each such case, take into account the reduction in Tax liability
resulting from any available operating losses and net operating loss carryovers, Tax credits, and Tax credit carry forwards, and
similar Tax attributes and, with respect to any Transfer, net of amounts provided as a reserve, in accordance with GAAP, against
any liabilities under any indemnification obligations associated with such Transfer (provided that, to the extent and at
the time any such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds), and (b) in connection
with any issuance or sale of Equity Securities (other than under the LTIP) or any incurrence of Indebtedness (other than the Loans),
the cash proceeds received from such issuance or incurrence, net of attorneys’ fees, investment banking fees, accountants’
fees, underwriting discounts and commissions and other customary and reasonable fees and expenses actually incurred in connection
therewith.

 

“Net Working Capital”
shall mean, at any time, Consolidated Current Assets at such time minus Consolidated Current Liabilities at such time.

 

“Net Working Capital Adjustment”
shall have the meaning ascribed to such term in the definition of “Excess Cash Flow”.

 

“NTTA Matter” shall
mean any settlement of any claim that the Borrower and/or any of its Subsidiaries (including Texas Sterling Construction Co., a
Delaware corporation) holds against, or relating to, the North Texas Transit Authority.

 

“Note” shall mean
a promissory note or notes of Borrower substantially in the form attached as Exhibit A hereto.

 

“Oaktree” shall mean
Oaktree Capital Management, L.P., on behalf of the funds and accounts within its Strategic Credit Strategy, and its successor,
and permitted assigns.

 

“Obligations” shall
mean and include all loans, advances, debts, liabilities, and obligations, including, without limitation, the noncancelable obligation
to make each payment scheduled to be made under each subsection of Section 2.02, howsoever arising, owed by Loan Parties
to Agent or any Lender and/or any of their Affiliates of every kind and description (whether or not evidenced by any note or instrument
and whether or not for the payment of money), whether as principal, surety, endorser, guarantor or otherwise, now existing or hereafter
arising under or pursuant to the terms of this Loan Agreement or the other Transaction Documents, including, without limitation,
all principal, interest, premium (including, without limitation, any Prepayment Premium or Make-Whole Amount), fees, charges, expenses,
attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by the Loan Parties hereunder and
thereunder, in each case, whether direct or indirect, absolute or contingent, due or to become due, and whether or not arising
after the commencement of a proceeding under Title 11 of the United States Code (11 U.S.C. Section 101 et seq.),
as amended from time to time (including post-petition interest), or any similar statute (including the payment of interest and
other amounts which would accrue and become due but for the commencement of such case, whether or not such amounts are allowed
or allowable in whole or in part in such case) and whether or not allowed or allowable as a claim in any such proceeding and whether
direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated,
or secured or unsecured; provided that, notwithstanding anything to the contrary, the Obligations of any Guarantor shall
exclude any Excluded Swap Obligations solely of such Guarantor.

 

    	14

     

    

“OFAC” shall mean
the U.S. Department of the Treasury’s Office of Foreign Assets Control.

 

“Other Taxes” shall
mean any present or future stamp or documentary Taxes or any other excise or recording Taxes, charges or similar levies which arise
from any payment made hereunder or from the execution, delivery, performance, enforcement or registration of, from the receipt
or perfection of a security interest under, or otherwise with respect to, this Loan Agreement or any other Transaction Documents
except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant
to Section 2.08).

 

“Patents” shall mean
all patents, patent applications and like protections, including without limitation improvements, divisions, continuations, renewals,
reissues, extensions and continuations-in-part of the same, now or hereafter existing, created, acquired or held.

 

“PBGC” shall mean
the Pension Benefit Guaranty Corporation or any entity succeeding to any of its principal functions under ERISA.

 

“Pension Plan” shall
mean any employee pension benefit plan within the meaning of Section 3(2) of ERISA (other than a Multiemployer Plan) that is maintained
or is contributed to by a Loan Party or any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum
funding standards under Section 412 of the IRC.

 

“Perfection Certificate”
shall mean the Perfection Certificate delivered by the Loan Parties to Agent and Lenders as of the Closing Date, as amended, restated,
amended and restated, modified, supplemented or updated from time to time.

 

“Permitted Acquisition”
shall mean an acquisition, directly or indirectly, by Borrower of the assets or equity interests of a Person and its respective
Subsidiaries pursuant to a purchase, sale, merger or other similar acquisition agreement in form and substance acceptable to the
Required Lenders, and subject to the satisfaction or waiver in writing by the Required Lenders in their sole discretion of the
conditions set forth below:

 

(a)       such
acquisition shall be structured as (a) an asset acquisition by the Borrower or Subsidiary of Borrower that is a Loan Party,
(b) a merger or consolidation of the target with and into Borrower or a Subsidiary of Borrower that is a Loan Party, with
Borrower or such Subsidiary, as applicable, as the surviving entity in such merger or consolidation, or (c) a purchase by
the Borrower or a Subsidiary of Borrower that is a Loan Party of 100% of the Equity Securities of the target;

 

(b)       the
Total Consideration paid or payable in connection with such acquisition shall not exceed a total of $50,000,000 in the aggregate,
or individually, for each such transaction (or series of related transactions); provided, that, such consideration shall only be
permitted to be paid with (i) the cash proceeds received by Borrower from a substantially concurrent issuance of Equity Securities
consisting of common stock or (ii) shares of common stock of Borrower;

 

(c)       no
Default or Event of Default shall have occurred or be continuing both before and immediately after giving effect to such acquisition;

 

(d)       such
acquisition shall not result in the incurrence by any Loan Party or any of its respective Subsidiaries (both before and after giving
effect to such acquisition) of any additional Indebtedness (except Permitted Indebtedness) or the granting of any additional Liens
(except Permitted Liens);

 

(e)       (i) Agent,
for the benefit of Agent and Lenders, shall be granted a first priority perfected Lien (subject only to Permitted Liens) on all
real and personal property being acquired pursuant to such acquisition (and, in the case of an acquisition involving the purchase
of any applicable Equity Securities of the target or its respective Subsidiaries, all of such purchased Equity Securities shall
be pledged to Agent for the benefit of Agent and Lenders, and such target and its respective Subsidiaries shall be required to
become a Required Guarantor Party and grant to Agent, for the benefit of Agent and Lenders, a first priority perfected Lien (subject
only to Permitted Liens) on its assets) and (ii) such Loan Party shall comply with the Joinder Requirements described in Section
6.10, and provide such other customary documents and instruments as Agent or the Lenders shall reasonably request to perfect or
maintain the perfection of its Lien on substantially all of the real and personal property of the target and its respective Subsidiaries,
as the case may be), all such documents to be delivered within five (5) Business Days of the closing of such acquisition;

 

    	15

     

    

(f)       all
material consents necessary for such acquisition shall have been acquired and such acquisition shall be consummated in accordance
with the applicable Acquisition Documentation and applicable law;

 

(g)       as
soon as practicable after the closing of such acquisition (and in any event within five (5) Business Days after such closing),
the Loan Parties shall deliver to Agent and Lenders copies of all the Acquisition Documentation executed in connection with such
acquisition, and any other material documents or agreements reasonably requested by the Required Lenders;

 

(h)       such
acquisition shall have been approved by the Board of Directors of the target (or similar governing body if such target is not a
corporation) which is the subject of such acquisition and such target shall not have announced that it will oppose such acquisition
or shall not have commenced any action which alleges that such acquisition shall violate applicable law;

 

(i)       the
Borrower shall have furnished Agent with ten (10) Business Days’ prior written notice of such intended acquisition and shall
have furnished the Agent with a current draft of the Acquisition Documentation to be entered into in connection with such acquisition
(and final copies thereof as and when executed), a summary of any due diligence undertaken by the Loan Parties in connection with
such acquisition, appropriate financial statements of the target and its Subsidiaries, pro forma projected financial statements
for the twelve (12) month period following such acquisition after giving effect to such acquisition (including balance sheets,
cash flows and income statements by quarter for the acquired target and its Subsidiaries, individually, and on a consolidated basis
with all Loan Parties), and such other information as the Required Lenders may reasonably require, all of which shall be in form
reasonably satisfactory to the Required Lenders; and

 

(j)       on
a pro forma basis, after giving effect to such acquisition, the Borrower shall be in compliance with each of the Financial Covenants
as of the last day of the most recent fiscal quarter for which Financial Statements are required to have been delivered hereunder,
with evidence of such compliance to be reflected in a certificate from the Responsible Officer of the Borrower delivered to the
Lenders as of the consummation of such acquisition, certifying as to such compliance.

 

“Permitted Dispositions”
shall mean the matters described on Schedule 4 hereto.

 

“Permitted Indebtedness”
shall mean: (i) Indebtedness of the Loan Parties in favor of Agent and Lenders arising under this Loan Agreement or any other
Loan Document; (ii) Indebtedness existing on the Closing Date and disclosed on Schedule 5 hereto; (iii) Indebtedness
secured by Liens described in clauses (v) and (vi) of the defined term “Permitted Liens,” provided (A) such Indebtedness
does not exceed the lesser of the cost or fair market value of the equipment financed with such Indebtedness and (B) such
Indebtedness does not exceed Six Million Dollars ($6,000,000) in the aggregate amount outstanding at any given time; (iv) amounts
in respect of the Closing Date Earn-Out up to an aggregate amount that does not exceed $15,000,000 outstanding at any time; (v) amounts
in respect of the Closing Date Deferred Payments up to an aggregate amount that does not exceed $10,000,000 outstanding at any
time; (vi) Indebtedness incurred under the Closing Date Seller Notes up to an aggregate principal amount that does not exceed $5,000,000
outstanding at any time; (vii) Indebtedness incurred for the acquisition of supplies or inventory on normal trade credit; (viii)
Indebtedness under Swap Agreements permitted by Section 7.09; (ix) endorsements for collection or deposit in the ordinary course
of business; (x) Indebtedness arising in the ordinary courses of business with respect to surety, bid, appeal, indemnity and performance
bonds, insurance obligations and other similar obligations, in each case, issued by a Bonding Company; (xi) amounts in respect
of the earn-out obligations set forth in Section 2.6.3 of that certain Purchase Agreement, dated as of August 1, 2011 (as amended
January 23, 2014), by and between Jerry Banicki, Ralph L. Wadsworth Construction Company, LLC and the Borrower, in effect as of
the date hereof; (xiii) Indebtedness of Borrower under that certain Secured Revolving Promissory Note dated as of March 11, 2016
(the “Secured Intercompany Note”) in the original principal amount of $13,000,000 in favor of RHB LLC
and Myers; provided, that, commencing on the date that is thirty (30) days following the Closing Date, the aggregate principal
amount outstanding at any time under such Secured Intercompany Note shall not exceed $2,000,000; (xiv) letters of credit to secure
self-insurance liabilities and obligations under project contracts in an aggregate amount that does not exceed $5,000,000 outstanding
at any time; and (v) extensions, refinancings, modifications, amendments and restatements of any item of Permitted Indebtedness
(i) through (iii) above.

 

    	16

     

    

“Permitted Investments”
shall mean: (i) Investments existing on the Closing Date and disclosed on Schedule 6 hereto; (ii) (A) marketable
direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any State thereof maturing
within one (1) year from the date of acquisition thereof, (B) commercial paper maturing no more than one (1) year from the
date of creation thereof and currently having rating of at least A 2 or P 2 from either Standard & Poor’s Corporation
or Moody’s Investors Service, Inc., and (C) certificates of deposit maturing no more than one (1) year from the date
of investment therein; (iii) Investments consisting of (A) travel advances, employee relocation loans and other employee
loans and advances in the ordinary course of business not to exceed Five Hundred Thousand Dollars ($500,000) during the term of
this Loan Agreement, (B) non-cash loans to employees, officers or directors relating to the purchase of Equity Securities
of Borrower pursuant to employee stock purchase plans or arrangements approved by Borrower’s board of directors and (C) advances
in the form of progress payments, prepaid rent or security deposits with respect to operating leases and other similar deposits,
in each case, made in the ordinary course of business; (v) Investments (including debt obligations) received in connection
with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes
with, customers or suppliers arising in the ordinary course of business; (vi) Investments consisting of notes receivable of,
or prepaid royalties from and other credit obligations of, customers, suppliers and debtors of Loan Parties, who are not Affiliates,
in the ordinary course of business; (vii) intercompany Investments made by, or the holding of Equity Securities of, (A) a Loan
Party or any of its respective Subsidiaries in a Loan Party and (B) a Subsidiary that is not a Loan Party in or to any other Subsidiary
that is not a Loan Party; (viii) Investments in the ordinary course of business consisting of endorsements of negotiable instruments
for collection or deposit; (ix) Permitted Acquisitions; (x) Investments by any of the Loan Parties or its Subsidiaries in the Affiliated
Entities in an aggregate amount not to exceed Five Million Dollars ($5,000,000) in the aggregate outstanding at any time; (xi)
Investments in Project Specific JVs solely for the purpose of forming or capitalizing such Project Specific JVs for the limited
purpose of performing construction work on a specific project in an aggregate amount not to exceed Ten Million Dollars ($10,000,000)
outstanding at any time; and (xii) so long as no Default or Event of Default exists prior to and immediately after giving pro forma
effect thereto, other Investments not otherwise permitted in each of the preceding clauses described in this definition hereof
in an aggregate amount not to exceed One Million Dollars ($1,000,000) during the term of this Loan Agreement.

 

“Permitted Liens”
shall mean and include: (i) Liens in favor of Agent, for the benefit of the Agent and the Lenders, and Liens securing payment
of the Obligations; (ii) Liens existing on the Closing Date and disclosed on Schedule 7 hereto; (iii) Liens of
carriers, warehousemen, mechanics, materialmen, vendors, and landlords incurred in the ordinary course of business for sums not
overdue or being contested in good faith that are not overdue for a period of more than 30 days or that are being contested in
good faith by appropriate proceedings and for which appropriate reserves in accordance with GAAP have been provided, provided provision
is made to the reasonable satisfaction of the Required Lenders for the eventual payment thereof if subsequently found payable;
(iv) non-exclusive licenses and sublicenses granted by a Loan Party and their respective Subsidiaries and leases or subleases
(by a Loan Party or any of its Subsidiaries as lessor or sublessor) to third parties in the ordinary course of business not interfering
in any material respect with the business of the Loan Parties and their respective Subsidiaries; (v) Liens upon or in any
equipment which was acquired or held by a Loan Party or any of its Subsidiaries to secure the purchase price of such equipment
(and any accessions, attachments, replacements or improvements thereon) or indebtedness incurred solely for the purpose of financing
the acquisition of such equipment (and any accessions, attachments, replacements or improvements thereon); (vi) Liens existing
on any equipment (and any accessions, attachments, replacements or improvements thereon) at the time of its acquisition, provided
that the Lien is confined solely to the property so acquired and any accessions, attachments, replacements or improvements thereon,
and the proceeds of such equipment (and any accessions, attachments, replacements or improvements thereon); (vii) bankers’
liens, rights of setoff and similar Liens incurred on deposits or securities accounts made in the ordinary course of business;
(viii) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default; (ix) Liens
for taxes, assessments or governmental charges or levies not yet due or delinquent or that are being contested in good faith by
appropriate proceedings, provided that adequate reserves with respect thereto are maintained on the Books of any Loan Party
or its respective Subsidiaries, as the case may be, in conformity with GAAP; (x) Liens incurred in connection with the extension,
renewal or refinancing of the indebtedness secured by Liens of the type described in clauses (i) and (ii) above, provided
that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal
amount of the indebtedness being extended, renewed or refinanced does not increase; (xi) restrictions on transfer or other Liens
contained in the Charter or other organizational documents of a Loan Party; (xii) restrictions on transfer under applicable federal
and state securities laws; (xiii) Liens arising in the ordinary course of business on cash or securities in connection with worker’s
compensation, unemployment compensation and other types of social security (excluding Liens arising under ERISA); (xiv) easements,
rights of way, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any property that do not
secure any monetary obligations and which in the aggregate do not materially impair the use of such property for the purposes of
which such property is held or materially impair the value of such property subject thereto; (xv) Liens securing the Indebtedness
described in clause (xiii) of the definition of Permitted Indebtedness; and (xvi) any other Liens approved by the Required Lenders.

 

    	17

     

    

“Person” shall mean
and include an individual, a partnership, a corporation (including a business trust), a joint stock company, a limited liability
company, an unincorporated association, a joint venture or other entity or a Governmental Authority.

 

“Plan” shall mean
any employee benefit plan within the meaning of Section 3(3) of ERISA maintained for employees of a Loan Party or any such Plan
to which a Loan Party is required to contribute or has or could reasonably be expected to have any liability or obligation (other
than a Multiemployer Plan).

 

“Pledge Agreement”
shall mean that certain Pledge Agreement in favor of the Agent, for the benefit of the Agent and the Lenders, executed by the Loan
Parties party thereto, in form and substance reasonably satisfactory to the Lenders, as amended, restated, amended and restated,
supplemented or otherwise modified from time to time.

 

“Pledged Companies”
shall mean each Person listed on Schedule 9 of the Perfection Certificate as a “Pledged Company”, together with
each other Person, all or a portion of whose Equity Securities are acquired or otherwise owned by a Loan Party after the Closing
Date. As of the Closing Date, Pledged Companies shall not include (y) RHB LLC, a Nevada limited liability company, or (z) Sterling
Hawaii Asphalt, LLC, a Hawaii limited liability company; provided, that if at any time either RHB LLC and/or Sterling Hawaii Asphalt,
LLC becomes, or is required to become, a Required Guarantor Party or the Borrower is otherwise able to cause the Equity Securities
in such entity to be pledged, in each case, pursuant to the terms of the Loan Documents, such entity shall automatically and immediately
be included in the term “Pledged Companies.”

 

“Pledged Operating Agreements”
shall mean all of each Loan Party’s rights, powers, and remedies under the limited liability company operating agreements
of each of the Pledged Companies that are limited liability companies.

 

“Pledged Partnership Agreements”
shall mean all of each Loan Party’s rights, powers, and remedies under the partnership agreements of each of the Pledged
Companies that are partnerships.

 

“Pledged Shares” shall
have the meaning given such term in the Pledge Agreement.

 

“Prepayment Premium”
shall mean (i) in the case of prepayments made pursuant to Section 2.02(d) (other than pursuant to Section 2.02(d)(i) or Section
2.02(d)(iii)), (a) with respect to a prepayment of all or any portion of a Loan occurring on or prior to the second anniversary
of the Closing Date, the Make-Whole Amount, (b) with respect to a prepayment of all or any portion of a Loan occurring after the
second anniversary of the Closing Date but on or prior to the third anniversary of the Closing Date, 5.00% of the aggregate principal
amount (including any interest, fees or amounts added to principal) of the Loans held by such Lender that is being prepaid, (c)
with respect to a prepayment of all or any portion of a Loan occurring after the third anniversary of the Closing Date but on or
prior to the fourth anniversary of the Closing Date, 2.50% of the aggregate principal amount (including any interest, fees or amounts
added to principal) of the Loans held by such Lender that is being prepaid, or (d) with respect to a prepayment of all or any portion
of a Loan after the fourth anniversary of the Closing Date and thereafter, 0.00% of the aggregate principal amount of the Loans
held by such Lender that is being prepaid, (ii) in the case of prepayments made pursuant to Section 2.02(d)(i), 1.00% of the aggregate
principal amount (including any interest, fees or amounts added to principal) of the Loans held by such Lender that is being prepaid,
or (iii) (a) in the case of prepayments made pursuant to Section 2.02(d)(iii)(A), 1.00% of the aggregate principal amount (including
any interest, fees or amounts added to principal) of the Loans held by such Lender that is being prepaid, or (b) in the case of
prepayments made pursuant to Section 2.02(d)(iii)(C) or in accordance with clause (vi) of Schedule 3 hereto, 3.00% of the
aggregate principal amount (including any interest, fees or amounts added to principal) of the Loans held by such Lender that is
being prepaid.

 

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“Project Specific JVs”
shall mean any project-specific joint ventures, whether created through a contractual arrangement or the ownership of Equity Securities,
by a Loan Party or any of its Subsidiaries, including any such project-specific joint ventures described in the Borrower’s
SEC filings pursuant to which a partner of such Project Specific JV acts as a sponsor or manager but may not hold Equity Securities
in such Project Specific JV.

 

“PTO” shall mean the
United States Patent and Trademark Office.

 

“Qualified ECP Guarantor”
shall mean, in respect of any Swap Agreement, each Guarantor that has total assets exceeding $10,000,000 at the time the relevant
Guaranty or grant of the relevant security interest becomes effective with respect to such Swap Agreement or such other person
as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder
and can cause another person to qualify as an “eligible contract participant” with respect to such Swap Agreement at
such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Real Property” shall
mean all right, title and interests in and to a parcel of real property, land, together with all buildings, structures, improvements
and fixtures located thereon, and all easements and other rights and interest appurtenant thereto, owned, leased or operated by
Borrower or its Subsidiaries, including such described on the Perfection Certificate.

 

“Recipient” shall
mean (a) the Agent and (b) any Lender.

 

“Record” shall mean
information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable
form.

 

“Registration Rights Agreement”
shall mean the Registration Rights Agreement, dated as of the Closing Date, by and among the Borrower and the holders of the Warrant(s),
as amended, restated, amended and restated, modified or supplemented from time to time.

 

“Required Guarantor Party”
shall have the meaning given such term in Section 6.10.

 

“Required Lenders”
shall mean, at any time, Lenders having Term Loans representing more than 50% of the aggregate outstanding Term Loans at such time.

 

“Requirement of Law”
applicable to any Person shall mean (i) any Governmental Rule applicable to such Person, (ii) any license, permit, approval
or other authorization granted by any Governmental Authority to or for the benefit of such Person and (iii) any judgment,
decision or determination of any Governmental Authority or arbitrator, in each case applicable to or binding upon such Person or
any of its property or to which such Person or any of its property is subject.

 

“Responsible Officer”
shall mean the chief executive officer, president, vice president, chief financial officer, treasurer, controller or comptroller
or other similar officer of the Loan Parties or, solely where applicable, their respective Subsidiaries, but in any event, with
respect to financial matters, the chief financial officer, treasurer, controller, comptroller, vice president finance or other
similar officer of such Loan Parties or solely, where applicable, their respective Subsidiaries.

 

    	19

     

    

“Restricted Payment”
shall have the meaning given such term in Section 7.04.

 

“RHB Inc.” shall have
the meaning given such term in the definition of “Affiliated Entity.”

 

“RHB LLC” shall have
the meaning given such term in the definition of “Affiliated Entity.”

 

“Sanctioned Country”
shall mean a country subject to a Sanctions program identified on the list maintained by OFAC and available at http://www.treas.gov/resource-center/sanctions/pages/default.aspx
or as otherwise published from time to time.

 

“Sanctioned Person”
shall mean any individual or entity that is the subject or target of Sanctions, including (a) (i) any Person named on any applicable
U.S. or non-U.S. sanctions- or export-related restricted party list, including, without limitation, the list of “Specially
Designated Nationals and Blocked Persons” maintained by OFAC and the EU Consolidated List, or (ii) any entity that is, in
the aggregate, 50 percent or greater owned, directly or indirectly, or otherwise controlled by a Person or Persons described in
clause (i), or (b) (i) an agency of the government of a Sanctioned Country, (ii) an organization controlled by a Sanctioned Country,
or (iii) a Person resident in or national of a Sanctioned Country, to the extent subject to a sanctions program administered by
OFAC.

 

“Sanctions” shall
mean all U.S. and non-U.S. laws relating to economic or trade sanctions, including, without limitation, the laws administered or
enforced by the United States (including by OFAC or the U.S. Department of State), the United Nations Security Council, and the
European Union.

 

“SEC” shall mean the
Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

 

“Secured Intercompany Note”
shall have the meaning given such term in the definition of “Permitted Indebtedness.”

 

“Solvent” shall mean,
at any time with respect to any Person, that at such time such Person (a) is able to pay its debts as they mature and has (and
has a reasonable basis to believe it will continue to have) sufficient capital (and not unreasonably small capital) to carry on
its business consistent with its practices as of the date hereof, and (b) the assets and properties of such Person at a fair valuation
(and including as assets for this purpose at a fair valuation all rights of subrogation, contribution or indemnification arising
pursuant to any guarantees given by such Person) are greater than the Indebtedness of such Person, and including subordinated and
contingent liabilities computed at the amount which, such Person has a reasonable basis to believe, represents an amount which
can reasonably be expected to become an actual or matured liability (and including as to contingent liabilities arising pursuant
to any guarantee the face amount of such liability as reduced to reflect the probability of it becoming a matured liability).

 

“Specified Keyman”
shall mean any of Con L. Wadsworth, Ronald A. Ballschmiede, Richard H. Buenting, Joseph A. Cutillo, Gary Roger Engasser II or Billy
Lee Wolff.

 

“Subordinated Debt”
shall mean indebtedness incurred by any Loan Party that is subordinated to all of such Loan Party’s Obligations (pursuant
to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to the Required Lenders entered
into among Agent, Lenders and the creditor of such Subordinated Debt), on terms acceptable to the Required Lenders. As of the Closing
Date, the Closing Date Seller Notes shall constitute Subordinated Debt.

 

“Subordination Agreement”
shall mean a Subordination Agreement, by and among the Agent and Lenders, on the one hand, and the creditors of Subordinated Debt,
on the other hand, in form and substance satisfactory to the Required Lenders, as amended, restated, amended and restated, modified
or supplemented from time to time. As of the Closing Date, the Closing Date Subordination Agreement shall constitute a Subordination
Agreement.

 

    	20

     

    

“Subsidiary” of any
Person shall mean (i) any corporation of which more than fifty percent (50%) of the issued and outstanding Equity Securities
having ordinary voting power to elect a majority of the Board of Directors of such corporation (irrespective of whether at the
time capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence of any
contingency) is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other
Subsidiaries or by one or more of such Person’s other Subsidiaries, (ii) any partnership, limited liability company,
joint venture, or other business entity of which more than fifty percent (50%) of the equity interest having the power to vote,
direct or control the management of such partnership, limited liability company, joint venture or other business entity is at the
time owned and controlled by such Person, by such Person and one or more of the other Subsidiaries or by one or more of such Person’s
other Subsidiaries, and (iii) any Person, whether majority- or minority-owned, required by GAAP to be consolidated in the financial
reporting of Borrower or any of its Subsidiaries, including, for the avoidance of doubt, any Affiliated Entities. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or
Subsidiaries of a Loan Party or any of its Subsidiaries and any reference to a Subsidiary without designation of the ownership
of such Subsidiary shall be deemed to refer to a Subsidiary of Borrower.

 

“Supporting Obligations”
shall mean supporting obligations (as such term is defined in the Code), and includes letters of credit and guaranties issued in
support of Accounts, Chattel Paper, documents, General Intangibles, instruments or Investment Property.

 

“Swap Agreement” shall
mean any agreement with respect to any swap, hedge, forward, future or derivative transaction or option or similar agreement (including
without limitation, any Interest Rate Agreement) involving, or settled by reference to, one or more rates, currencies, commodities,
equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing
risk or value or any similar transaction or any combination of these transactions.

 

“Swap Obligation”
shall mean, with respect to any Loan Party, any obligation to pay or perform under any agreement, contract or transaction that
constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act.

 

“Taxes” shall mean
all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Termination Date”
shall mean the earliest to occur of (i) the Term Loan Maturity Date and (ii) the date the Obligations (including, without
limitation, any Prepayment Premium) are required to be paid in full (whether on acceleration or otherwise), including pursuant
to Section 10.01.

 

“Term Loan Maturity Date”
shall mean April 4, 2022.

 

“Total Consideration”
shall mean (without duplication), with respect to a Permitted Acquisition, the sum of (a) the cash purchase price paid or payable
as consideration in connection with such Permitted Acquisition, plus (b) Indebtedness payable to or on behalf of the seller or
any other similar Person in connection with such Permitted Acquisition plus (c) earn-outs (determined in accordance with the definition
of Indebtedness), plus (d) any other deferred or contingent payment (determined as the greater of (x) the amount required to be
shown as a liability in accordance with GAAP at the time of the closing of such Permitted Acquisition and (y) the amount of such
deferred or contingent payment actually paid in connection with the subject transaction ), plus (e) the amount of Indebtedness
assumed or incurred in connection with such Permitted Acquisition, plus (f) all transaction costs incurred in connection therewith.

 

“Total Secured Leverage Ratio”
shall mean, as of the last day of any fiscal quarter, the ratio of (a) the Consolidated Secured Indebtedness outstanding on such
date to (b) Consolidated EBITDA for the four-fiscal quarter period ending on such date.

 

“Trademarks” shall
mean any trademark and service mark rights, whether registered or not, applications to register and registrations of the same and
like protections, and the entire goodwill connected with and symbolized by such trademarks, now or hereafter existing, created,
acquired or held.

 

    	21

     

    

“Trading With the Enemy Act”
shall have the meaning given such term in Section 7.15.

 

“Transactions” shall
have the meaning given such term in Section 4.01(a)(ii).

 

“Transaction Documents”
shall mean, collectively, the Loan Documents, the Warrants, the Registration Rights Agreement and the other documents or agreements
executed in connection herewith or therewith, in each case, as amended, restated, amended and restated, modified or supplemented
from time to time.

 

“Transfer” shall have
the meaning given such term in Section 7.02 hereof.

 

“Treasury Rate” shall
mean with respect to the Make-Whole Amount, a rate equal to the then current yield to maturity on actively traded U.S. Treasury
securities having a constant maturity and having a duration equal to (or the nearest available tenor) the period from the date
that payment is received to the date that falls on the first anniversary of the Closing Date.

 

“U.S. Tax Compliance Certificate”
shall have the meaning given such term in Section 2.05(f)(iii).

 

“Vehicle Collateral Agent”
shall have the meaning given such term in the definition of Collateral Agency Agreement.

 

“Warrant” shall mean
a warrant or warrants to purchase capital stock of the Borrower issued by Borrower to Lenders or their Affiliates as provided by
this Loan Agreement, as amended, restated, amended and restated, modified or supplemented from time to time.

 

“Write-Down and Conversion Powers”
shall mean, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority
from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are
described in the EU Bail-In Legislation Schedule.

All capitalized terms defined in the Code and not otherwise defined
herein shall have the respective meanings specified in the Code.

 

Article
2.            THE LOANS.

 

Section 2.01.            
Commitment. Subject to the terms and conditions of this Loan Agreement and in reliance upon the representations
and warranties set forth herein, each Lender severally agrees to make available to the Agent or directly to the Borrower on the
Closing Date such Lender’s Loan Percentage of a term loan in U.S. Dollars in the aggregate principal amount of EIGHTY
FIVE MILLION DOLLARS ($85,000,000) for the purposes hereinafter set forth. Upon receipt by the Agent of the proceeds of the
Term Loan made on the Closing Date, such proceeds will then be made available to the Borrower by the Agent, by wiring such proceeds
in accordance with the funds flow attached to the notice of borrowing as contemplated by Section 2.03(c). Borrower may prepay Loans
only in accordance with Section 2.02(d). Amounts prepaid may not be reborrowed.

 

Section 2.02.            
Interest and Payments.

 

		(a)	Interest. Subject to Section 6.18, Borrower shall pay interest in arrears on all outstanding
Obligations (including any Prepayment Premium) at the LIBOR Rate plus 8.75% per annum on the unpaid principal amount thereof (including,
to the extent permitted by law, on interest thereon not paid when due) from the date made or incurred until paid in full in cash.
Interest on the Loan shall be calculated based upon a year of 360 days and actual days elapsed. Each payment of interest only shall
be paid in cash and made on the last Business Day of each calendar month. If Borrower pays interest on the Loan which is determined
to be in excess of the then legal maximum rate, then that portion of each interest payment representing an amount in excess of
the then legal maximum rate shall be deemed a payment of principal and applied against the principal of the Loan.
	 	 	 
	

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		(b)	LIBOR Provisions. In the notice of borrowing delivered pursuant to Section 4.01(a)(v), the
Borrower shall specify the Interest Period used to determine the LIBOR Rate as of the Closing Date. Upon the expiration of each
Interest Period, in the absence of the Borrower providing written notice to the Agent not less than three (3) Business Days prior
to the end of such Interest Period electing a different Interest Period, the same Interest Period shall be used to determine the
LIBOR Rate for the immediately succeeding Interest Period. If the Borrower provides written notice electing a new Interest Period,
then such new Interest Period and the corresponding LIBOR Rate shall be used.
	 	 	 

		(c)	Payments of Principal. The principal amount of the Term Loan shall be repaid in full in
cash on the Termination Date.
	 	 	 

		(d)	Prepayment.
	 	 	 

		(i)	Voluntary Prepayment with Proceeds from the Permitted Dispositions and/or NTTA Matter. Upon
ten (10) Business Days’ prior written notice to Agent and the Lenders, Borrower may, at its option, use the proceeds arising
from the Permitted Dispositions and/or the NTTA Matter to make one or more prepayments on the Loans, in principal amounts not less
than $1,000,000 and in $1,000,000 increments in excess thereof, up to an amount not to exceed $30,000,000 in the aggregate, at
a prepayment price equal to (A) the principal amount of the Loans being prepaid, plus (B) accrued and unpaid interest thereon through
and including the date of such prepayment, plus (C) the applicable Prepayment Premium, plus (D) any other amounts then due to Agent
and Lenders. The notice of prepayment shall state the amount of principal to be prepaid under the Loan. All repayments or prepayments
under this Section 2.02(d)(i) shall be subject to any Prepayment Premium set forth in Section 2.02(e), but shall otherwise be prepaid
without premium or penalty. Interest on the principal amount prepaid shall be payable on any date that a repayment is made hereunder
through the date of repayment.
	 	 	 

		(ii)	Mandatory Prepayment. To the extent that, immediately after the prepayment of the Loans,
the applicable Net Cash Proceeds are not needed by the Borrower to be in pro forma compliance with Section 6.17(b) during the immediately
succeeding four fiscal quarters following the required date of prepayment arising under this Section 2.02(d)(ii) with respect to
the applicable event(s) described below:
	 	 	 

		(A)	Debt Issuances. Within one (1) Business Day of receipt by any Loan Party or any of its Subsidiaries
(other than Project Specific JVs) of proceeds from any Indebtedness other than Permitted Indebtedness, the Borrower shall prepay
the Loans in an aggregate amount equal to 100% of the Net Cash Proceeds of such Indebtedness received by the Loan Parties or any
of its Subsidiaries (except that with respect to any Affiliated Entities, only to the extent of the Net Cash Proceeds received
by the Loan Parties).
	 	 	 

		(B)	Issuances of Equity Securities. Within one (1) Business Day of receipt by any Loan Party
or any of their Subsidiaries (other than Project Specific JVs) of proceeds from any issuance of any Equity Securities (other than
(I) an issuance of Equity Securities the proceeds of which shall be used substantially concurrently with the consummation of, and
to finance, a Permitted Acquisition, or (II) distributions by a Loan Party, a Subsidiary of a Loan Party, an Affiliated Entity
or a Minority Subsidiary to a Loan Party or a Subsidiary of a Loan Party that is a Guarantor), the Borrower shall prepay the Loans
in an aggregate amount equal to 50% of the Net Cash Proceeds of such issuance of Equity Securities received by the Loan Parties
or any of its Subsidiaries (except that with respect to any Affiliated Entities or Minority Subsidiaries, only to the extent of
the Net Cash Proceeds received by the Loan Parties).
	 	 	 
	

    	23

     

    

	 	 	 

		(C)	Transfers or Events of Loss. To the extent Net Cash Proceeds received in connection with
any Transfer (other than Transfers permitted by Sections 7.02(i) through (iii)) or any Event of Loss are received by a Loan Party
or any of its Subsidiaries (other than Project Specific JVs) and are not used to purchase, replace, substitute, restore or acquire
fixed or capital assets of the Loan Parties or any of its Subsidiaries (other than Project Specific JVs) within 180 days of the
receipt of such Net Cash Proceeds, on the 181st day occurring after the receipt of such Net Cash Proceeds, the Borrower shall prepay
the Loans in an aggregate amount equal to 100% of such Net Cash Proceeds received by the Loan Parties or any of its Subsidiaries
(except that with respect to any Affiliated Entities, only to the extent of the Net Cash Proceeds received by the Loan Parties);
provided that, after the occurrence and during the continuance of an Event of Default, any Net Cash Proceeds received in connection
with any such Transfer or any such Event of Loss shall be promptly used to prepay the Loans (such prepayment to be applied as set
forth in Section 2.02(d)(ii)(E) below) and the Loan Parties and their respective Subsidiaries (other than Project Specific JVs)
shall not have the right to reinvest such Net Cash Proceeds; provided, further that, any Net Cash Proceeds subject to reinvestment
in accordance with the terms of this Section 2.02(d)(ii)(C) shall be subject to an aggregate cap of Ten Million Dollars ($10,000,000)
per fiscal year.
	 	 	 

		(D)	Extraordinary Receipts. Within one (1) Business Day of the date of receipt by a Loan Party
or any of its Subsidiaries (other than Project Specific JVs) of any Extraordinary Receipts in excess of One Million Dollars ($1,000,000)
in the aggregate during the term of this Loan Agreement, Borrower shall prepay the outstanding principal amount of the Obligations
in accordance with Section 2.02(d)(ii)(E) in an amount equal to 100% of such Extraordinary Receipts received by the Loan Parties
or any of its Subsidiaries (except that with respect to any Affiliated Entities, only to the extent of the Net Cash Proceeds received
by the Loan Parties), net of any reasonable expenses incurred in collecting such Extraordinary Receipts.
	 	 	 

		(E)	Application of Mandatory Prepayments. Amounts to be applied in connection with prepayments
made pursuant to Section 2.02(d)(ii) shall be applied to the prepayment of the Term Loans in accordance with Section 2.04(d). Each
prepayment of the Loans under this Section 2.02(d)(ii) shall be accompanied by accrued and unpaid interest to the date of such
prepayment on the amount prepaid.
	 	 	 

		(F)	Mandatory Prepayment Notice. The Borrower shall deliver to the Agent and the Lenders notice
of each prepayment of Loans in whole or in part pursuant to Section 2.02(d)(ii)(F) not less than ten (10) Business Days (or such
shorter period agreed to by the Required Lenders) prior to the date such prepayment shall be made. Each notice of prepayment shall
specify the proposed prepayment date, the principal amount of each Loan (or portion thereof) to be prepaid and the calculation
of the total amount of such prepayment proposed to be made in accordance with this Section 2.02(d)(ii).
	 	 	 

		(G)	Officer’s Certificate. The Borrower shall deliver to the Agent and the Lenders, at
the time of each prepayment required under this Section 2.02(d)(ii), a certificate signed by a Responsible Officer of the Borrower
setting forth in reasonable detail the calculation of the amount of such prepayment (and the Agent shall promptly provide the same
to each Lender).
	 	 	 

		(H)	Prepayment Premium. All prepayments under this Section 2.02(d) shall be subject to any Prepayment
Premium set forth in Section 2.02(e) and be accompanied by accrued and unpaid interest on the principal amount prepaid through
the date of prepayment.
	 	 	 
	

    	24

     

    

	 	 	 

		(iii)	Offer to Prepay Loans with Excess Cash Flow.
	 	 	 

		(A)	Excess Cash Flow. Within two (2) Business Days after the date on which the Borrower files
(or, if earlier, is required to file) its Form 10-Q or Form 10-K, as applicable, with the SEC, relating to the immediately preceding
fiscal quarter (such date, the “ECF Prepayment Offer Date”), commencing with the first full fiscal quarter
ending after the Closing Date and for every fiscal quarter thereafter, the Borrower shall offer (such offer, the “ECF
Prepayment Offer”) to prepay the Loans in an aggregate amount equal to (A) 75% of the Excess Cash Flow for such fiscal
quarter plus (B) accrued and unpaid interest thereon through and including the date of such prepayment, plus (C) the applicable
Prepayment Premium, plus (D) any other amounts then due to Agent and Lenders; provided that, to the extent any Net Working Capital
Adjustment has the effect of reducing Excess Cash Flow for any trailing four fiscal quarter period in an amount in excess of $5,000,000,
the Borrower shall prepay the Loans in an aggregate amount equal to the difference between such amount and $5,000,000.
	 	 	 

		(B)	Offer to Prepay Loans. The offer to prepay Loans contemplated by this Section 2.02(d)(iii)
shall be an offer to prepay, in accordance with and subject to this Section 2.02(d), the Loans held by each Lender on the date
of such ECF Prepayment Offer Date in accordance with Section 2.04(d).
	 	 	 

		(C)	Rejection; Acceptance. The Required Lenders may, on behalf of each Lender, accept or reject
the offer to prepay made pursuant to this Section 2.02(d)(iii) by causing a notice of such acceptance or rejection to be delivered
to Borrower (with a copy to Agent and the Lenders) not less than ten (10) Business Days after Lender’s receipt of such offer.
A failure by the Required Lenders to so respond to an offer to prepay made pursuant to this Section 2.02(d)(iii) shall be deemed
to constitute an acceptance of such offer by the Required Lenders on behalf of all Lenders. Notwithstanding any rejection of an
offer to prepay by the Required Lenders (such rejected prepayment offer amount, the “ECF Declined Amount”),
the Borrower may, at its option, nonetheless prepay the Loans in an aggregate amount equal to (A) 37.5% of the Excess Cash Flow
for such fiscal quarter plus (B) accrued and unpaid interest thereon through and including the date of such prepayment, plus (C)
the applicable Prepayment Premium, plus (D) any other amounts then due to Agent and Lenders, on a pro rata basis in accordance
with Section 2.04(d), with any residual ECF Declined Amount being retained by the Borrower.
	 	 	 

		(D)	Prepayment. Prepayment of the Loans to be prepaid pursuant to this Section 2.02(d)(iii)
(whether as part of an acceptance by the Required Lenders of an ECF Prepayment Offer or as part of a rejection of such ECF Prepayment
Offer) shall be accompanied with the applicable Prepayment Premium on the principal amount of such Loans being prepaid, together
with accrued and unpaid interest on such Loans accrued to the date of prepayment and will be payable in cash only. The prepayment
shall be made within two (2) Business Days of the acceptance or rejection (if Borrower so elects to make such prepayment in accordance
with Section 2.02(d)(iii)(C)) of the ECF Prepayment Offer.
	 	 	 

		(E)	Officer’s Certificate. The Borrower shall deliver to the Agent and the Lenders, at
the time of each prepayment required under this Section 2.02(d)(iii), a certificate signed by a Responsible Officer of the Borrower
setting forth in reasonable detail the calculation of the amount of such prepayment.
	 	 	 
	

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		(F)	Prepayment Premium. All prepayments under this Section 2.02(d)(iii) shall be subject to
any Prepayment Premium set forth in Section 2.02(e) and be accompanied by accrued and unpaid interest on the principal amount prepaid
through the date of prepayment.
	 	 	 

		(e)	Prepayment Premium. Notwithstanding anything herein to the contrary, in the event all or
any portion of the Loans or other Obligations are prepaid, repaid or accelerated for any reason (including, without limitation,
an acceleration (whether or not such acceleration occurs automatically) of the Loans and the other Obligations (including as a
result of any Event of Default, including, without limitation, any Event of Default under Section 9.01(e) or Section 9.01(f)),
upon the occurrence of any Event of Default (including, without limitation, a Change of Control), or upon any mandatory prepayment
or optional prepayment (except in connection with any prepayment described in the parenthetical set forth in Section 2.02(d)(ii)(C)
with proceeds received from an Event of Loss) or any prepayment contemplated by Schedule 3 hereto, such prepayments or repayments
shall be accompanied by a prepayment premium equal to the Prepayment Premium. If the Loans are accelerated for any reason under
this Loan Agreement, the Prepayment Premium shall be calculated as if the date of acceleration of such Loans was the date of prepayment
of such Loans. The parties hereto acknowledge and agree that, in light of the impracticality and extreme difficulty of ascertaining
actual damages, the Prepayment Premium set forth above is intended to be a reasonable calculation of the actual damages that would
be suffered by the Agent and the Lenders as a result of any such repayment or prepayment. The parties hereto further acknowledge
and agree that the Prepayment Premium is not intended to act as a penalty or to punish the Borrower for any such repayment or prepayment.
The Prepayment Premium, if any, shall also be payable in the event the Obligations (and/or this Loan Agreement) are satisfied or
released by foreclosure (whether by power of judicial proceeding), deed in lieu of foreclosure or by any other means. TO THE MAXIMUM
EXTENT NOT PROHIBITED BY APPLICABLE LAW, THE LOAN PARTIES EXPRESSLY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW
THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING PREPAYMENT PREMIUM IN CONNECTION WITH ANY SUCH ACCELERATION. The
Loan Parties expressly agree that (i) the Prepayment Premium is reasonable and is the product of an arm’s length transaction
between sophisticated business people, ably represented by counsel, (ii) the Prepayment Premium shall be payable notwithstanding
the then prevailing market rates at the time payment is made, (iii) there has been a course of conduct between Lenders and the
Loan Parties giving specific consideration in this transaction for such agreement to pay the Prepayment Premium, (iv) the Loan
Parties shall be estopped hereafter from claiming differently than as agreed to in this Section 2.02(e), (v) the agreement to pay
the Prepayment Premium is a material inducement to the Lenders to make the Loans, and (vi) the Prepayment Premium represents a
good faith, reasonable estimate and calculation of the lost profits or damages of the Lenders and that it would be impractical
and extremely difficult to ascertain the actual amount of damages to the Lenders or profits lost by the Lenders as a result of
any of the foregoing events.
	 	 	 

Section 2.03.       
Use of Proceeds; the Loans and the Notes; Disbursement.

 

		(a)	Use of Proceeds. The proceeds of the Loans shall be used to repay existing debt, fund the
Closing Date Acquisition, pay related fees and expenses, and for working capital.
	 	 	 

		(b)	The Loans and the Notes. The obligation of Borrower to repay the aggregate unpaid principal
amount of and interest on the Loan shall be evidenced by one or more Notes setting forth the principal amount of the Loans and
the payments due. Agent shall keep a record of the payments made under each Note on its Books which records shall be prima facie
evidence of the amounts paid under the Notes absent manifest error. Any failure by a Lender to obtain or retain a Note shall not
limit or otherwise affect the obligations of Borrower to pay amounts due hereunder with respect to the Loans.
	 	 	 

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Notice and Disbursement. Whenever
Borrower desires Lenders to make a Loan, Borrower shall deliver to Agent and Lenders an irrevocable notice of borrowing in writing
which shall be received by the Agent and Lenders prior to 9:00 A.M., Pacific time, one (1) Business Day prior to the anticipated
Closing Date, requesting that the Lenders make the Loan on the Closing Date and specifying the amount to be borrowed. Not later
than 1:00 P.M., Eastern time, on the Closing Date, each Lender shall either make available to the Agent at the funding office designated
by Agent or make Loans directly available to Borrower in an amount in immediately available funds equal to the Loan or Loans to
be made by such Lender. The Agent shall credit the account of the Borrower on the Books of such office of the Agent with the aggregate
of the amounts made available to the Agent by the Lenders in immediately available funds. Lenders’ obligation to make Loans
shall be subject to the satisfaction of the conditions set forth in Section 4.01(b). Subject to the satisfaction of the conditions
set forth in this Loan Agreement, each Lender shall disburse its pro rata portion of the Loan as specified in the funds flow attached
to the notice of borrowing on the Closing Date.

 

Section 2.04.       
Other Payment Terms.

 

		(a)	Place and Manner. All payments to be made by the Borrower shall be made without set off,
recoupment or counterclaim. Except as otherwise expressly provided herein, all payments by the Borrower shall be made to the Agent
for the account of the Lenders, at the account designated by the Agent and shall be made in U.S. Dollars and in immediately available
funds, no later than 1:00 p.m. (Eastern time) on the date specified herein. Any payment received by the Agent after such time shall
be deemed (for purposes of calculating interest only) to have been received on the following Business Day and any applicable interest
shall continue to accrue. For the avoidance of doubt, notwithstanding any other provision of any Loan Document to the contrary,
no payment received directly or indirectly from any Loan Party that is not a Qualified ECP Guarantor shall be applied directly
or indirectly by the Agent or otherwise to the payment of any Excluded Swap Obligations.
	 	 	 

		(b)	Date. Whenever any payment due hereunder shall fall due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day, and such extension of time shall be included in the computation
of interest or fees, as the case may be.
	 	 	 

		(c)	Default Rate. After the occurrence and during the continuance of an Event of Default, upon
written election of the Required Lenders or automatically upon any Event of Default pursuant to Section 9.01(a), 9.01(e) or 9.01(f),
Borrower shall pay interest on outstanding Obligations (including, without limitation, any Prepayment Premium) until such past
due amounts are paid in full, at a per annum rate equal to the Default Rate. All computations of such interest shall be based on
a year of 360 days and actual days elapsed. Interest accrued at the Default Rate shall be payable from time to time on demand.
	 	 	 

		(d)	Pro Rata Treatment and Payments. Except as otherwise may be agreed by the Borrower and the
Lenders, each payment (including each prepayment) by the Borrower on account of principal of and interest on the Loans shall be
made pro rata according to the respective outstanding principal amounts of the Loans then held by the Lenders. Amounts prepaid
on account of the Loans may not be reborrowed.
	 	 	 

		(e)	Calculation of Payments. Notwithstanding anything to the contrary contained herein, any
payment required to be made hereunder, whether as principal, interest, fees, premiums (including Prepayment Premiums or Make-Whole
Amounts) or other amounts payable hereunder or under any of the Loan Documents may, if requested by the Agent (acting at the direction
of the Required Lenders), and shall, if otherwise expressly set forth herein, be required be set forth in a certificate of a Responsible
Officer of the Borrower, setting forth in reasonable detail the calculation of the amount of such payment. Such calculation shall
be reviewed by the Agent and the Lenders and the determination of the accuracy of such calculation shall be made by the Required
Lenders, in their sole but reasonable discretion.

 

    	27

     

    

 

Section 2.05.        
Taxes.

 

		(a)	Payments Free of Taxes. Any and all payments by or on account of any Obligation of any Loan
Party under any Transaction Document shall, except as required by any Requirement of Law, be made free and clear of and without
deduction or withholding for any Taxes; provided that, if any Loan Party or the Agent shall be required by a Requirement of Law
to deduct or withhold any Taxes from such payments, then (i) the sum payable by the applicable Loan Party shall be increased as
necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section
2.05) the applicable Recipient, as the case may be, receives an amount equal to the sum it would have received had no such deductions
and withholdings have been made, (ii) the applicable Loan Party or Agent shall make such deductions and (iii) the applicable Loan
Party or Agent shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with
Requirements of Law.
	 	 	 

		(b)	Payment of Other Taxes by the Borrower. Without limiting the provisions of Section 2.05(a)
above, the Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with Requirements of
Law.
	 	 	 

		(c)	Indemnification by the Borrower. The Borrower shall indemnify each Recipient, within ten
(10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted
on or attributable to amounts payable under this Section 2.05) payable or paid by such Recipient, as the case may be, and any reasonable
expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower
by a Lender (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Lender, shall be conclusive absent
manifest error.
	 	 	 

		(d)	Indemnification by the Lender. Each Lender shall severally indemnify the Agent, within ten
(10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan
Party has not already indemnified the Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties
to do so), and (ii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Agent in connection
with any Transaction Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes
were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment
or liability delivered to any Lender by the Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the
Agent to set off and apply any and all amounts at any time owing to such Lender under any Transaction Document or otherwise payable
by the Agent to the Lender from any other source against any amount due to the Agent under this paragraph (d).
	 	 	 

		(e)	Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes or Other
Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the Agent and the relevant Lender the original
or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting
such payment or other evidence of such payment reasonably satisfactory to the Agent and the relevant Lender.
	 	 	 

		(f)	Status of Lenders.
	 	 	 

		(i)	Any Lender that is entitled to an exemption from or reduction of withholding Tax under the law
of the jurisdiction in which the Borrower is resident for Tax purposes, or any treaty to which such jurisdiction is a party, with
respect to payments hereunder or under any other Transaction Document shall deliver to the Borrower (with a copy to the Agent),
at the time or times prescribed by Requirements of Law or reasonably requested by the Borrower or the Agent, such properly completed
and executed documentation prescribed by Requirements of Law as will permit such payments to be made without withholding or at
a reduced rate of withholding. In addition, any Lender, if requested by the Borrower or the Agent, shall deliver such other documentation
prescribed by Requirements of Law or reasonably requested by the Borrower or the Agent as will enable the Borrower or the Agent
to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding
anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other
than such documentation set forth in Section 2.05(f)(ii) and Section 2.05(f)(iii)(A) through Section 2.05(f)(iii)(F)) shall not
be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to
any unreimbursed cost or expense or would prejudice the legal or commercial position of such Lender.
	 	 	 
	

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		(ii)	Without limiting the generality of the first paragraph of this Section 2.05(f), any Lender or Agent
that is a U.S. Person shall deliver to the Borrower and the Agent (in such number of copies as shall be requested by the recipient)
on or prior to the date on which such Person becomes a party to this Loan Agreement (and from time to time thereafter upon the
request of the Borrower or the Agent), duly completed copies of Internal Revenue Service Form W-9 certifying that such Person is
exempt from U.S. federal backup withholding tax.
	 	 	 

		(iii)	Without limiting the generality of the first paragraph of this Section 2.05(f), any Foreign Holder
shall deliver to the Borrower and the Agent (in such number of copies as shall be requested by the recipient) on or prior to the
date on which such Foreign Holder becomes a party to this Loan Agreement (and from time to time thereafter upon the request of
the Borrower or the Agent, but only if such Foreign Holder is legally entitled to do so), whichever one or more of the following
is applicable:
	 	 	 

		(A)	duly completed copies of Internal Revenue Service Form W-8BEN or W-8BEN-E claiming eligibility
for benefits of an income tax treaty to which the United States of America is a party,
	 	 	 

		(B)	duly completed copies of Internal Revenue Service Form W-8ECI or W-8EXP,
	 	 	 

		(C)	in the case of a Foreign Holder claiming the benefits of the exemption for portfolio interest under
section 881(c) of the IRC, (x) a certificate substantially in the form of Exhibit L-1 to the effect that such Foreign Holder
is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the IRC, (B) a “10-percent shareholder”
of the Borrower within the meaning of section 881(c)(3)(B) of the IRC, or (C) a “controlled foreign corporation” described
in section 881(c)(3)(C) of the IRC (a “U.S. Tax Compliance Certificate”) and (y) duly completed copies of Internal
Revenue Service Form W-8BEN or W-8BEN-E, as applicable,
	 	 	 

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

    	29

     

    

	 	 	 

		(E)	if a payment made to a Lender under any Transaction Document would be subject to a withholding
Tax imposed by FATCA as a result of such Lender failing to comply with the applicable reporting requirements of FATCA (including
those contained in Sections 1471(b) or 1472(b) of the IRC, as applicable), such Lender shall deliver such documentation or certifications
as are required to evidence compliance by the Foreign Holder with FATCA for purposes of determining if the Lender is subject to
such withholding Tax and such additional documentation reasonably requested by the Borrower or the Agent as may be necessary for
the Borrower and the Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such
Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment (solely for purposes
of this clause (5), “FATCA” shall include any amendments made to FATCA after the date of this Loan Agreement), or
	 	 	 

		(F)	any other form prescribed by Requirements of Law as a basis for claiming exemption from or a reduction
in United States federal withholding Tax duly completed together with such supplementary documentation as may be prescribed by
Requirements of Law to permit the Borrower to determine the withholding or deduction required to be made.

 

Each Lender and Agent agrees that if any form
or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or
certification or promptly notify the Borrower and the Agent in writing of its legal inability to do so. Notwithstanding anything
to the contrary in the foregoing, in no case shall a Lender be required to deliver any form, certification or documentation that
it is not legally entitled to deliver.

 

		(g)	Treatment of Certain Refunds. If any party determines, in its sole discretion exercised
in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.05 (including
by the payment of additional amounts pursuant to this Section 2.05), it shall pay to the indemnifying party an amount equal to
such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such
refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified
party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest
or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay
such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (g), in no event will the
indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would
place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax
subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification
payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any
indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential)
to the indemnifying party or any other Person.
	 	 	 

		(h)	Survival. Each party’s obligations under this Section 2.05 shall survive the resignation
or replacement of Agent or any assignment of rights by, or the replacement of, a Lender, or the repayment, satisfaction or discharge
of all other Obligations.

 

    	30

     

    

Section 2.06.        
Increased Costs and Reduction of Return.

 

		(a)	Increased Costs Generally. If any Change in Law shall:
	 	 	 

		(i)	impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge
or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender;
or
	 	 	 

		(ii)	subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses
(b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) with respect to this Loan Agreement or any
of the other Transaction Documents or any of its obligations hereunder or thereunder or any payments to such Lender of principal,
interest, fees or other amounts payable hereunder, or its deposits, reserves, other liabilities or capital attributable thereto;
	 	 	 

and the result of any of the foregoing
shall be to increase the cost to such Lender or other Recipient of making or maintaining any Note (or of maintaining its obligation
to make any such Note), or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal,
interest or any other amount) then, upon request of such Lender, the Borrower will pay to such Lender, as the case may be, such
additional amount or amounts as will compensate such Lender, as the case may be, for such additional costs incurred or reduction
suffered.

 

		(b)	Capital Requirements. If any Lender determines that any Change in Law affecting such Lender
or any purchasing office of such Lender or such Lender’s holding company, if any, regarding capital or liquidity requirements
has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s
holding company, if any, as a consequence of this Loan Agreement or the Notes received by such Lender, to a level below that which
such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such
Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy and liquidity),
then from time to time upon written request the Borrower will pay to such Lender, as the case may be, such additional amount or
amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.
	 	 	 

		(c)	Certificates for Reimbursement. A certificate of a Lender setting forth the amount or amounts
necessary to compensate such Lender or its holding company, as the case may be, as specified in Section 2.06(a) or (b) and delivered
to the Borrower shall be conclusive absent manifest error. The Borrower shall pay such Lender, as the case may be, the amount shown
as due on any such certificate within ten (10) days after receipt thereof.
	 	 	 

		(d)	Delay in Requests. Failure or delay on the part of any Lender to demand compensation pursuant
to this Section 2.06 shall not constitute a waiver of such Lender’s right to demand such compensation, provided that the
Borrower shall not be required to compensate a Lender pursuant to this Section 2.06 for any increased costs incurred or reductions
suffered more than nine months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s intention to claim compensation therefor (except that, if the Change in
Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended
to include the period of retroactive effect thereof).

 

Section 2.07.       Certificates
of Lenders. Any Lender claiming reimbursement or compensation under this Article 2 shall deliver to the Borrower (with
a copy to the Agent) a certificate setting forth in reasonable detail the amount payable to the Lender hereunder and such certificate
shall be conclusive and binding on the Borrower in the absence of manifest error.

 

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Section 2.08.        Mitigation Obligations. If any Lender requests compensation under Section 2.06, or requires the Borrower to pay
any Indemnified Taxes or any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant
to Section 2.05, then such Lender shall use reasonable efforts to designate a different purchasing office for funding or booking
its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate or materially reduce amounts payable pursuant to
Section 2.05 or 2.06, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense
and would not otherwise be disadvantageous to such Lender in its sole discretion. The Borrower hereby agrees to pay all reasonable
costs and expenses incurred by any Lender in connection with any such designation or assignment.

 

Section 2.09.         Survival. The agreements and obligations of the Borrower in this Article 2 shall survive the payment of all other
Obligations.

 

Article
3.          CREATION OF SECURITY
INTEREST.

 

Section 3.01.        Grant of Security Interest. Each Loan Party hereby unconditionally grants, assigns and pledges to Agent on behalf
of each Lender, a lien on, continuing security interest in and a right of set off against all of such Loan Party’s right,
title and interest in and to the Collateral, whether now owned or hereafter acquired or arising and wherever located, in order
to secure prompt payment of any and all Obligations and in order to secure prompt performance by the Loan Parties of each of its
covenants and duties under the Loan Documents. Notwithstanding termination of this Loan Agreement, Agent’s lien and security
interest on the Collateral shall remain in effect for so long as any Obligations (other than inchoate indemnity obligations) are
outstanding.

 

Article
4.         CLOSING.

 

Section 4.01.         
Conditions Precedent. The obligation of Lenders to fund the Loans shall be subject to the following conditions
precedent (except to the extent delivery of such items has been expressly deferred pursuant to Section 6.16):

 

		(a)	Conditions to Closing. Agent and Lenders shall have received in connection with the closing
in form and substance satisfactory to Agent and Lenders:
	 	 	 

		(i)	Loan Documents. (i) This Loan Agreement, duly executed and delivered by the Agent, the Lenders,
the Borrower and the Guarantors party thereto, (ii) the Notes, duly executed and delivered by the Borrower, (iii) the Guaranty,
duly executed and delivered by the Guarantors party thereto, (iv) the Pledge Agreement, duly executed and delivered by the Loan
Parties party thereto, (v) the Perfection Certificate, duly executed and delivered by the Loan Parties, (vi) the Vehicle Collateral
Agency Agreement, duly executed and delivered by the Agent and Loan Parties party thereto, and (vii) the Agent Fee Letter, duly
executed and delivered by the Agent and the Borrower.
	 	 	 

		(ii)	Closing Date Acquisition. The following transactions (collectively with the initial borrowings
hereunder and other transactions contemplated by the Transaction Documents on the Closing Date, the “Transactions”)
shall have been consummated substantially simultaneously with the making of the Loans, in each case on terms and conditions reasonably
satisfactory to the Lenders:
	 	 	 

		(A)	the Closing Date Acquisition shall have been consummated in accordance with applicable law and
the Acquisition Agreement, and no such terms or conditions thereunder shall have been waived other than with the consent of the
Lenders;
	 	 	 

		(B)	all conditions to the consummation of the Closing Date Acquisition set forth in the Acquisition
Documentation shall have been satisfied;
	 	 	 
	

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		(C)	the Agent and Lenders shall have received a fully executed Acquisition Agreement and all other
material Acquisition Documentation entered into in connection therewith (including, without limitation, any documentation evidencing
the Closing Date Deferred Payments, the Closing Date Earn-Outs, the Closing Date Seller Notes and any employment agreements or
non-competition or non-solicitation agreements), certified by a Responsible Officer to be a true and complete copies thereof; and
	 	 	 

		(D)	the Closing Date Subordination Agreement, duly executed and delivered by the Agent and each of
the holders of the Closing Date Seller Notes.
	 	 	 

		(iii)	Secretary’s Certificate; Certified Certificates of Organization. Copies, certified
by the Secretary or Assistant Secretary of each Loan Party, of: (A) the Articles of Organization or Articles or Certificate
of Incorporation or Certificate of Formation (“Charter”) and Bylaws or Limited Liability Company, Limited
Partnership or Operating Agreement of such Loan Party (in each case, as amended to, and in effect on, the date of this Loan Agreement),
(B) the resolutions adopted by such Loan Party’s board of directors, board of managers, managing or sole members, or
general partner (or other equivalent governing body) authorizing the transaction and the Transaction Documents being executed in
connection therewith, and (C) the incumbency of the officers executing this Loan Agreement and the other Transaction Documents
on behalf of such Loan Party.
	 	 	 

		(iv)	Good Standing Certificates. Long-form certificate(s) of good standing, existence or its
equivalent (including tax status if available) with respect to each Loan Party from such Loan Party’s state of incorporation
or organization and in each other jurisdiction in which qualification is necessary in order for such Loan Party to own or lease
its property and conduct its business, each as of a date within 20 days prior to the Closing Date.
	 	 	 

		(v)	Notice of Borrowing. A notice of borrowing, in the form of Exhibit G hereto, accompanied
by a funds flow, duly executed by Borrower and delivered to Agent and Lenders in accordance with Section 2.03(c).
	 	 	 

		(vi)	Insurance. Receipt of insurance certificates satisfying the requirements of Section 6.04
and evidence of the insurance coverage required by such section.
	 	 	 

		(vii)	Warrants. The Warrant(s) to be issued to the designees of the Lenders in forms provided
by Agent and agreed to by Borrower, duly executed by Borrower, together with a Registration Rights Agreement, duly executed and
delivered by the holders of such Warrant(s) and Borrower.
	 	 	 

		(viii)	Perfection Certificate. The Perfection Certificate, duly executed by the Loan Parties.
	 	 	 

		(ix)	Control Agreements. Control agreements sufficient to perfect a security interest in the
Loan Parties’ deposit accounts and securities accounts (other than the Excluded Accounts) executed by each applicable bank
or other financial institution.
	 	 	 

		(x)	Legal Opinions. Executed legal opinions of (i) Andrews Kurth Kenyon LLP, counsel to the
Loan Parties regarding New York, Texas and Delaware legal matters, (ii) Brownstein Hyatt Farber Schreck, LLP, California counsel
to the Loan Parties, (iii) Sacks Tierrey P.A., Arizona counsel to the Loan Parties, and (iv) Bennett, Tueller, Johnson &
Deers, Utah counsel to the Loan Parties.
	 	 	 

		(xi)	Fees and Expenses. Payment of (i) all reasonable and documented fees and expenses (including
attorneys’ fees) of the Agent and Lenders incurred in connection with any of the Transaction Documents and the transactions
contemplated thereby prior to such date and invoiced at least one (1) Business Day prior to such date, and (ii) all fees and expenses
as set forth in the Fee Letter and the Agent Fee Letter.
	 	 	 
	

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		(xii)	Financial Statements. Audited consolidated Financial Statements of the Borrower as of the
fiscal year ended December 31, 2016, prepared in accordance with GAAP, without any restatement of such financial statements and
which shall include an unqualified, signed audit opinion and which financial statements and opinion shall not include (i) any qualification
or exception to the scope of such audit; (ii) any qualification, exception or explanatory paragraph regarding the Borrower’s
status or ability to continue as a going concern or otherwise indicate any significant financial concerns; or (iii) any indication
of a material weakness in the Borrower’s internal control over financial reporting (whether or not remediated).
	 	 	 

		(xiii)	Approvals. All Governmental Approvals and consents and approvals of, or notices to, any
other Person required in connection with the Closing Date Acquisition, the execution and performance of the Transaction Documents,
the continuing operations of the Loan Parties and their respective Subsidiaries, the operations of the Loan Parties and their respective
Subsidiaries as expected to result from the Closing Date Acquisition and the other transactions contemplated hereby shall have
been obtained and be in full force and effect (including shareholder approvals, landlords’ consents and other consents),
and all applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that
could reasonably be expected to restrain, prevent or otherwise impose burdensome conditions on the Closing Date Acquisition or
the financing contemplated hereby.
	 	 	 

		(xiv)	Lien Searches. The results of a recent lien search where assets of the Loan Parties are
located, and such searches shall reveal no liens on any of the assets of the Loan Parties except for Permitted Liens or the discharge
of such liens on or prior to the Closing Date pursuant to documentation satisfactory to the Required Lenders.
	 	 	 

		(xv)	Payoff Letter. Receipt of a payoff letter in respect of the Loan Parties’ existing
credit facilities, including with Nations Equipment Finance, LLC and Frost Bank, and all amounts outstanding thereunder shall have
been repaid (or shall be repaid on such date in connection with the Transactions), and all such existing credit lines and any guarantees
and security in respect thereof shall have been cancelled and terminated.
	 	 	 

		(xvi)	Pledged Stock; Stock Powers; Pledged Notes. Receipt by Agent of original copies of (i) the
certificates representing the Pledged Shares pledged pursuant to this Loan Agreement and the Pledge Agreement, together with an
undated stock power for each such certificate executed in blank by a duly authorized officer of the pledgor thereof, and (ii) each
promissory note (if any) pledged to the Agent pursuant to this Loan Agreement, endorsed (without recourse) in blank (or accompanied
by an executed transfer form in blank) by the pledgor thereof.
	 	 	 

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

		(xviii)	Solvency Certificate. Receipt of a solvency certificate from the Responsible Officer of
the Borrower, substantially in the form of Exhibit D, certifying that each of the Loan Parties and its Subsidiaries, after
giving effect to the Transactions and the other transactions contemplated hereby, is Solvent.
	 	 	 
	

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		(xix)	Patriot Act. Receipt, prior to the Closing Date, of all documentation and other information
required by Governmental Authorities under applicable “know your customer” and anti-money-laundering rules and regulations,
including the Patriot Act.
	 	 	 

		(xx)	No Litigation. No litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or, to the knowledge of Borrower, any Guarantor or their respective Subsidiaries, threatened,
that calls into question the validity or enforceability of this Loan Agreement and the extensions of credit to be made hereunder.
	 	 	 

		(xxi)	Landlord Waiver. A Landlord Waiver covering each lease or ground lease to which a Loan Party
or its Subsidiary (other than the Affiliated Entities) is a party, duly executed by the applicable landlord at such location and
Agent.
	 	 	 

		(xxii)	Pro Forma Compliance with Financial Covenants. On a pro forma basis, after giving effect
to the Transactions, the Borrower shall be in compliance with each of the Financial Covenants as of the last day of the most recent
fiscal quarter for which Financial Statements are required to have been filed with the SEC, with evidence of such compliance to
be reflected in a certificate from the Responsible Officer of the Borrower delivered to Agent and the Lenders as of the Closing
Date, certifying as to such compliance.
	 	 	 

		(xxiii)	Other Documents. All other documents as Agent or Lenders shall have reasonably requested.
	 	 	 

		(xxiv)	Business and Legal Due Diligence. The Lenders shall be satisfied with the results of its
business due diligence and legal due diligence, with respect to the Transactions, including, but not limited to review of (x) the
Acquisition Agreement and other material agreements relative to the Closing Date Acquisition (including any non-competition or
employment agreements contemplated to be entered into in connection with, or substantially concurrently with, the Closing Date
Acquisition), and (y) the Loan Parties’ other material agreements.
	 	 	 

		(b)	Conditions to Funding of the Loans. Prior to the funding of the Loans, the following conditions
with respect to the Loans shall have been satisfied by Borrower or waived by the Lenders:
	 	 	 

		(i)	Note. Borrower shall have executed and delivered one or more Notes prepared by the Lenders
setting forth the terms of the Loans.
	 	 	 

		(ii)	No Event of Default. No Event of Default or Default shall have occurred and be continuing
or would directly or indirectly be caused as a result of the funding of the Loans.
	 	 	 

		(iii)	Material Adverse Effect. In Agent’s and the Lenders’ sole discretion, no event
shall have occurred or condition shall exist that has had or could be reasonably expected to have a Material Adverse Effect.
	 	 	 

		(iv)	Representations and Warranties. The representations and warranties contained in this Loan
Agreement and the other Transaction Documents to which Borrower is a party shall be true and correct in all material respects as
if made on the date of funding of the Loans and the items listed on any schedule shall be reasonably acceptable to the Required
Lenders, except to the extent such representations and warranties expressly refer to an earlier date, in which case they shall
be true and correct in all material respects as of such earlier date.
	 	 	 
	

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		(v)	Enforceability. Each of the Transaction Documents shall be in full force and effect.
	 	 	 

		(vi)	Other Documents and Agreements. Each of the Loan Parties shall have provided to the Lenders
and the Agent such documents, instruments and agreements, including notices of borrowing, financing statements or amendments to
financing statements, as the Lenders or the Agent shall reasonably request to evidence the perfection and priority of the security
interests granted to Agent.
	 	 	 

		(c)	Satisfaction of Conditions. Each Lender, by delivering its signature page to this Loan Agreement,
shall be deemed to have acknowledged receipt of, consent to, and/or approved of, each document, agreement, instrument or other
item required to be delivered to, consented to, and/or approved by, the Agent or any Lender, as applicable, pursuant to this Section
4.01 and to have acknowledged that each of the conditions set forth in this Section 4.01 has been satisfied to its satisfaction
(or otherwise waived by the Lenders).
	 	 	 

		(d)	Instruction for Collateral Agency Agreement. Each Lender, by delivering its signature page
to this Loan Agreement, hereby instructs the Agent to execute and deliver the Collateral Agency Agreement and hereby agrees that
the Collateral Agent (as defined therein) has been selected in good faith and that the Agent shall not be responsible for any act,
omission, negligence or misconduct of such Collateral Agent.
	 	 	 

Article
5.        REPRESENTATIONS
AND WARRANTIES.

 

The Loan Parties represent and warrant to Agent that:

 

Section 5.01.       Due Incorporation, Qualification, etc. Each of the Loan Parties and its Subsidiaries (i) is a registered
organization duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or formation;
(ii) has the power and authority to own, lease and operate its properties and carry on its business as now conducted; (iii) is
duly qualified, licensed to do business and in good standing as a foreign registered organization in each jurisdiction where the
failure to be so qualified or licensed could reasonably be expected to have a Material Adverse Effect and (iv) is in material compliance
with all Requirements of Law.

 

Section 5.02.    
Authority. The execution, delivery and performance by each of the Loan Parties of each Transaction Document to
be executed by such Loan Party and the consummation of the transactions contemplated thereby (i) are within the power of such
Loan Party and (ii) have been duly authorized by all necessary actions on the part of such Loan Party.

 

Section 5.03.      
Enforceability. Each Transaction Document executed, or to be executed, by the Loan Parties has been, or will
be, duly executed and delivered by such Loan Party and constitutes, or will constitute, a legal, valid and binding obligation of
such Loan Party, enforceable against such Loan Party in accordance with its terms, except as limited by bankruptcy, insolvency
or other similar laws of general application relating to or affecting the enforcement of creditors’ rights generally and
general principles of equity.

 

Section 5.04.     
Non-Contravention. The execution and delivery by each Loan Party of the Transaction Documents executed by such
Loan Party and the performance and consummation of the transactions contemplated thereby do not and will not (i) violate its
Charter or other organizational documents, (ii) violate in any material respect any Requirement of Law applicable to such
Loan Party; (ii) violate any provision of, or result in the breach or the acceleration of, or entitle any other Person to
accelerate (whether after the giving of notice or lapse of time or both), any material Contractual Obligation of such Loan Party;
or (iii) result in the creation or imposition of any Lien upon any property, asset or revenue of such Loan Party (except such
Liens as may be created in favor of Agent pursuant to this Loan Agreement or the other Transaction Documents).

 

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Section 5.05.        
Approvals. No consent, approval, order or authorization of, or registration, declaration or filing with, any
Governmental Authority or other Person (including, without limitation, the shareholders of any Person) is required in connection
with the execution and delivery of the Transaction Documents executed by any Loan Party and the performance and consummation of
the transactions contemplated thereby, other than (i) consents, approvals, orders or authorizations, or registrations, declarations
or filings that have already been obtained, (ii) state securities filings related to the Warrant, (iii) the filing with, and
approval of, the SEC of a registration statement pursuant to the Registration Rights Agreement, and (iv) the filing of financing
statements, Mortgages and other security instruments contemplated hereby or by the other Transaction Documents.

 

Section 5.06.        No Violation or Default. None of the Loan Parties nor any of their respective Subsidiaries is in violation of
or in default with respect to (i) its Charter or other organizational documents; (ii) any Requirement of Law; or (iii) any
Contractual Obligation (nor is there any waiver in effect which, if not in effect, would result in such a violation or default),
where, in each case, such violation or default, individually, or together with all such violations or defaults, could reasonably
be expected to have a Material Adverse Effect. No Event of Default or Default has occurred and is continuing.

 

Section 5.07.         Litigation. No actions (including, without limitation, derivative actions), suits, proceedings or investigations
are pending or, to the knowledge of any Loan Party, threatened against such Loan Party or its Subsidiaries at law or in equity
in any court or before any other Governmental Authority which if adversely determined (i) could reasonably be expected (alone
or in the aggregate) to have a Material Adverse Effect or (ii) seeks to enjoin, either directly or indirectly, the execution,
delivery or performance by any Loan Party of the Transaction Documents or the transactions contemplated thereby. Except as set
forth in the Perfection Certificate, no Loan Party has any commercial tort claims.

 

Section 5.08.         Title; Collateral; Liens; Investments. Each of the Loan Parties has title in fee simple to, or a valid leasehold
interest in, all its Real Property, and has good and marketable title to all Collateral, in each case, free and clear of all Liens,
other than Permitted Liens. Upon the filing of UCC-1 financing statements in the appropriate filing offices set forth on Schedule
8 hereto, Agent has (or in the case of after-acquired Collateral, at the time a Loan Party acquires rights therein, will have),
for the benefit of the Lenders, a first priority perfected security interest in the Collateral to the extent that a security interest
in the Collateral can be perfected by such filing, except for Permitted Liens. The Loan Parties have no deposit accounts or securities
accounts, other than the deposit accounts and securities accounts described in the Perfection Certificate, including the Excluded
Accounts. Except as described in the Perfection Certificate or as permitted under Section 6.08, the Collateral as of the Closing
Date is not in the possession of any third party bailee (such as at a warehouse). All inventory of the Loan Parties is in all material
respects of good and marketable quality, free from material defects and has been (or, in the case of hereafter produced inventory,
will be) produced in compliance in all material respects with applicable laws, including the Fair Labor Standards Act. All accounts
receivable and payment intangibles are genuine and, to the knowledge of a Responsible Officer of a Loan Party after due and diligent
inquiry, enforceable against the party obligated to pay the same and the originals of all documents evidencing all accounts receivable
and payment intangibles of each Loan Party and the only original books of account and records of such Loan Party relating thereto
are, and will continue to be, kept at the chief executive office or principal place of business of such Loan Party or such other
location where a Loan Party has expressly indicated that the Books and Records are maintained, in each case, to the extent set
forth on the Perfection Certificate. No Loan Party owns any Investment except Permitted Investments. As of the Closing Date, no
Loan Party has any Accounts or Chattel Paper which arises out of a contract or contracts with the United States of America or any
department, agency, or instrumentality thereof, which contract or contracts would be subject to the Federal Assignment of Claims
Act or other relevant applicable law.

 

Section 5.09.        
Financial Statements. The Financial Statements of the Loan Parties and their respective Subsidiaries which have
been delivered to Agent and the Lenders (i) are in accordance with the Books and Records of the Loan Parties and their respective
Subsidiaries, which have been maintained in accordance with good business practice; (ii) have been prepared in conformity
with GAAP (other than, with respect to interim Financial Statements, the absence of footnotes and normal year-end adjustments);
and (iii) fairly present in all material respects the consolidated financial position of the Loan Parties and their respective
Subsidiaries as of the dates presented therein and the results of operations, cash flows, and, if applicable stockholders’
equity, for the periods presented therein. As of the Closing Date, none of the Loan Parties nor any of their respective Subsidiaries
has any contingent obligations, liability for taxes or other outstanding obligations which are material in the aggregate, except
as disclosed in the most recent audited Financial Statements (including the notes thereto) furnished by Borrower to the Lenders
prior to the date hereof.

 

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Section 5.10.        
Taxes. Each of the Loan Parties and their respective Subsidiaries has filed or caused to be filed (i) all federal
and material state and other income Tax returns and reports and (ii) all other Tax returns that are required to be filed by it
except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. The Loan Parties and their
respective Subsidiaries have paid, or made provision for the payment of, all Taxes levied or imposed upon them or their properties
which have become due pursuant to said returns or otherwise, except such Taxes, if any, which are being contested in good faith
and as to which adequate reserves (determined in accordance with GAAP) have been provided or which could not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect if unpaid. There is no proposed Tax deficiency or assessment
known to any Loan Party nor any of its respective Subsidiaries against such Loan Parties or any of its respective Subsidiaries
that would, if made, individually or in the aggregate, have a Material Adverse Effect. Neither any Loan Party nor any of its Subsidiaries
is party to any Tax sharing agreement other than any such agreement among Loan Parties.

 

Section 5.11.        
Catastrophic Events; Labor Disputes. Neither the Loan Parties nor their respective Subsidiaries and none of their
properties is or has been affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail,
earthquake, embargo, act of God or other casualty that could reasonably be expected to have a Material Adverse Effect. There are
no actions, suits, proceedings, investigations, or disputes presently subject to the grievance procedure, arbitration or litigation
pending or, to the knowledge of any Loan Party, threatened, under any law, collective bargaining agreements, employment contract
or employee welfare or incentive plan to which any Loan Party or its Subsidiaries is a party, and there are no strikes, lockouts,
work stoppages or slowdowns, labor disputes, or, to the knowledge of any Loan Party, jurisdictional disputes or organizing activity
occurring or threatened which could reasonably be expected to have a Material Adverse Effect. As of the Closing Date, neither the
Loan Parties nor their respective Subsidiaries are subject or party to any collective bargaining agreements, collective bargaining
relationships, or other contracts with any labor organization except as set forth on Schedule 9 hereto.

 

Section 5.12.        
No Material Adverse Effect. No development or event has occurred and no condition exists (excluding general economic
conditions) which could reasonably be expected to have a Material Adverse Effect.

 

Section 5.13.         
First Priority. Assuming the timely filing of financing statements, execution of account control agreements covering
the Collateral and recording of the Mortgages, the security interest granted hereby constitutes a first priority security interest
in and Lien on all of the Collateral, subject only to Permitted Liens and the terms of any subordination or intercreditor agreements
entered into by Agent or Lenders.

 

Section 5.14.          Perfection Certificate. All of the information set forth in the Perfection Certificate delivered to the Lenders
and the Agent is true, complete and correct as of the Closing Date, and will be true, complete and correct as of the date of each
delivery of each updated Perfection Certificate that is required to be delivered to the Lenders and the Agent pursuant to the terms
hereof.

 

Section 5.15.         
Intellectual Property.

 

		(a)	As of the Closing Date: (i) Schedule 7 to the Perfection Certificate provides a complete
and correct list of all registered or issued Patents, Trademarks, and Copyrights owned by each Loan Party and all applications
for registration of Patents, Trademarks, and Copyrights filed by such Loan Party (“Loan Party Registered Intellectual
Property,” together with all other Intellectual Property owned or purported to be owned by such Loan Party, “Loan
Party Intellectual Property”); and (ii) Schedule 7 to the Perfection Certificate provides a complete and correct
list of all Intellectual Property licenses entered into by each Loan Party pursuant to which (A) such Loan Party has provided any
license or other material rights to use Intellectual Property owned by such Loan Party to any other Person (other than non-exclusive
agreements entered into with customers or end users or otherwise in the ordinary course of business) (“Loan Party Intellectual
Property Licenses”), or (B) any Person has granted to a Loan Party any license or other rights to use Intellectual
Property owned by such Person that is material to the business of such Loan Party (other than license agreements for commercially
available “off the shelf” or shrinkwrap software with an annual license fee of less than Twenty Five Thousand Dollars
($25,000)). All Loan Party Registered Intellectual Property is valid, subsisting and enforceable and in compliance with all legal
requirements, filings, and payments and other actions that are required to maintain such Intellectual Property in full force and
effect.
	 	 	 
	

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		(b)	No part of such Loan Party Intellectual Property has been judged invalid or unenforceable, in whole
or in part, and no claim has been made that any part of such Loan Party Intellectual Property is invalid or unenforceable. Each
Loan Party owns solely and exclusively free and clear of all Liens, except for Permitted Liens, or holds a valid, enforceable,
and written license in, all Intellectual Property that is material to the conduct of its business.
	 	 	 

		(c)	To the knowledge of the Loan Parties after due and diligent inquiry, no Loan Party has ever infringed
or misappropriated, and is not currently infringing or misappropriating, any Intellectual Property rights of any Person. There
are no infringement or misappropriation claims or proceedings pending, or to such Loan Party’s knowledge, threatened in writing
against such Loan Party. No Loan Party has received any written notice or other written communication within the past twelve (12)
months of any actual or alleged infringement or misappropriation of any Intellectual Property rights of any Person. To such Loan
Party’s knowledge, no Person has infringed or misappropriated, or is currently infringing or misappropriating, any such Loan
Party Intellectual Property.
	 	 	 

		(d)	Each Loan Party has taken commercially reasonable measures to maintain the confidentiality of all
trade secrets that are its applicable Loan Party Intellectual Property.
	 	 	 

		(e)	Upon filing of any copyright security agreement with the United States Copyright Office, filing
of any patent security agreement and any trademark security agreement with the PTO, and the filing of appropriate financing statements
in the jurisdictions listed on Schedule 8 hereto, all action necessary or desirable to perfect the security interest in
and on each Loan Party’s United States issued, registered and filed Patents, Trademarks, or Copyrights has been taken (provided
that additional filings may be necessary to perfect any security interest in any Intellectual Property acquired after the date
hereof) and such perfected security interest is enforceable as such as against any and all creditors of and purchasers from any
Loan Party, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium
or similar laws relating to or limiting creditors’ rights generally. All action by any Loan Party reasonably necessary to
perfect such security interest on each item of Intellectual Property constituting Collateral has been duly taken.

		(f)	No Loan Party Intellectual Property License requires any consent of any other Person that has not
been obtained or waived in order for the applicable Loan Party to such license to grant the security interest granted hereunder
in such Loan Party’s right, title or interest in or to such Loan Party Intellectual Property License.
	 	 	 

Section 5.16.         Subsidiaries; Affiliates; Capitalization; Solvency.

 

		(a)	No Loan Party has any direct or indirect Subsidiaries nor does any Loan Party own any Equity Securities
except for Permitted Investments or as set forth on Schedule 9(b) of the most recent Perfection Certificate delivered to
the Agent and the Lenders.
	 	 	 

		(b)	Each Loan Party is the record and beneficial owner of all of the issued and outstanding Equity
Securities of each of the Subsidiaries listed on Schedule 9(b) of the most recent Perfection Certificate delivered to the
Agent and the Lenders as being owned by such Loan Party and there are no proxies, irrevocable or otherwise, with respect to such
Equity Securities, and no Equity Securities of any of the Loan Parties or their respective Subsidiaries are or may become required
to be issued by reason of any options, warrants, rights to subscribe to, calls or commitments of any kind or nature and there are
no contracts, commitments, understandings or arrangements by which any Loan Party or Subsidiary is or may become bound to issue
additional Equity Securities or securities convertible into or exchangeable for such Equity Securities.
	 	 	 
	

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		(c)	The issued and outstanding Equity Securities of each Loan Party (other than the Borrower) are directly
and beneficially owned and held by the Persons indicated on Schedule 9(b) to the Perfection Certificate, and in each case
all of such Equity Securities have been duly authorized and are fully paid (to the extent required by the Charter or other organizational
documents of the applicable Loan Party) and non-assessable (except as such non-assessibility may be affected by applicable state
law), free and clear of all Liens of any kind, except with respect to the security interest therein granted to Agent pursuant to
the terms of this Loan Agreement and the other Loan Documents and restrictions on transfer arising under applicable federal and
state securities laws. As of the Closing Date, the Equity Securities of RHB Inc. owned by Borrower are uncertificated.
	 	 	 

		(d)	As of the Closing Date, after giving effect to the consummation of the Transactions on the Closing
Date, including the making of the Loans under this Loan Agreement on the Closing Date, and after giving effect to the application
of the proceeds of such Loans, the Loan Party and their respective Subsidiaries, taken as a whole, are Solvent and will continue
to be Solvent after the creation of the Obligations, the security interests of the Lenders and the other transactions contemplated
hereunder or under the Transaction Documents.

 

Section 5.17.        
Use of Proceeds. The proceeds of the Loans shall be used to repay existing debt, fund the Closing Date Acquisition,
pay related fees and expenses, and for working capital.

 

Section 5.18.        
Regulatory Compliance. No Loan Party is an “investment company” or a company “controlled”
by an “investment company” under the Investment Company Act of 1940, as amended. No Loan Party is engaged as one of
its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors).
Each Loan Party has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower, any Guarantor,
nor any of their respective Subsidiaries is a “holding company” or an “affiliate” of a “holding company”
or a “subsidiary company” of a “holding company” as each term is defined and used in the Public Utility
Holding Company Act of 2005. No Loan Party has violated any laws, ordinances or rules, the violation of which could reasonably
be expected to have a Material Adverse Effect on its business. Each Loan Party and each of its Subsidiaries have obtained all consents,
approvals and authorizations of, made all declarations or filings with, and given all notices to, all Governmental Authorities
that are necessary to continue their respective businesses as currently conducted.

 

Section 5.19.        
Anti-Terrorism Laws. No Loan Party or any Subsidiary thereof is or has been an “enemy” or an “ally
of the enemy” within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America (50 U.S.C.
App. §§ 1 et seq.), as amended. No Loan Party or any Subsidiary thereof is or has been in violation of (a) the
Trading with the Enemy Act, as amended, (b) any of the foreign assets control regulations of the United States Treasury Department
(31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto or (c) the Patriot
Act. No Loan Party or any Subsidiary thereof (i) is or has been a blocked person described in Section 1 of the Anti-Terrorism Order
or (ii) to the best of its knowledge, engages or has engaged in any dealings or transactions, or is or has otherwise been associated,
with any such blocked person.

 

Section 5.20.         Compliance with OFAC Rules and Regulations. None of the Loan Parties or their Subsidiaries nor, to the knowledge
of a Responsible Officer of the Loan Parties and their Subsidiaries after due and diligent inquiry, their respective Affiliates
(a) is or has been a Sanctioned Person, (b) has or has had assets in Sanctioned Countries, or (c) is or has been in violated of
Sanctions, (d) derives or has derived its operating income from investments in, or transactions with, Sanctioned Persons or Sanctioned
Countries. No part of the proceeds of the Loans hereunder will be used directly or indirectly to fund any operations in, finance
any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Country, or otherwise cause any Person
to violate Sanctions.

 

Section 5.21.        Compliance with the FCPA. Each of the Loan Parties and their Subsidiaries and, to the knowledge of a Responsible
Officer of the Loan Parties and their Subsidiaries after due and diligent inquiry, their respective Affiliates, are and have been
in compliance with the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd-l, et seq (“FCPA”),
and any foreign counterpart thereto. None of the Loan Parties or their Subsidiaries has made a payment, offering, or promise to
pay, or authorized the payment of, money or anything of value, directly or indirectly, to any Government Official or other Person
in violation of the FCPA or any foreign counterpart thereto.

 

Section 5.22.     
 The Company and its Subsidiaries have maintained complete and accurate books and records, including records of payments
to any agents, consultants, representatives, third parties and Government Officials.

 

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Section 5.23.            
Transactions with Affiliates. Borrower’s proxy statement filed pursuant to Section 14(a) of the Securities
Exchange Act of 1934 as of March 17, 2017 sets forth all transactions with Affiliates involving the Loan Parties or their respective
Subsidiaries existing as of the Closing Date.

 

Section 5.24.            
ERISA. Except as would not reasonably be expected to have a Material Adverse Effect, (i) each Plan has been established,
maintained, funded and administered in compliance in all respects with its terms, the terms of any applicable collective bargaining
or labor agreement, the applicable provisions of ERISA, the IRC, and all other applicable laws. Each Plan that is intended to qualify
under Section 401(a) of the IRC has received a favorable determination, opinion or advisory letter from the Internal Revenue Service
with respect to the form thereof and, to the knowledge of the Loan Parties, nothing has occurred which would prevent or could cause
the loss of such qualification. No ERISA Event has occurred or is reasonably expected to occur that when taken together with all
other existing ERISA Events could reasonably be expected to result in liability of the Loan Parties of more than $50,000.

 

Section 5.25.            
Environmental. Except to the extent it would not reasonably be expected to result in aggregate liability to the
Loan Parties (or any of them) in excess of $2,000,000 (to the extent not covered by insurance), (a) each of the Loan Parties and
their Subsidiaries are and have been in compliance with all Environmental Laws, including obtaining, maintaining and complying
with all permits required under Environmental Laws; (b) no Lien in favor of any Person securing, in whole or in part, any liabilities
under Environmental Law has attached to any property of any Loan Party or any of their Subsidiaries and no facts, circumstances
or conditions exist that could reasonably be expected to result in any such Lien attaching to any such property, and (c) none of
the Loan Parties or any of their respective Subsidiaries: (i) has assumed, provided an indemnity with respect to, or otherwise
become subject to, any liability of any other Person under any Environmental Law or relating to Hazardous Materials; (ii) is subject
to any pending or, to the knowledge of such Loan Party, threatened Environmental Claim alleging violations of, or liability under,
any Environmental Law; or (iii) manufactured, transported, disposed of, arranged for the disposal of, distributed, released, owned
or operated any property or facility which is or has been contaminated by, or exposed any Person to, Hazardous Materials, in each
case as would give rise to a liability under any Environmental Law.

 

Section 5.26.            
No Off-Balance-Sheet Liabilities. Each of the Loan Parties and their Subsidiaries does not have any ongoing off-balance-sheet
liabilities (other than operating leases and joint-venture liabilities but including any pension liabilities).

 

Section 5.27.            
Full Disclosure. No written representation, warranty or other statement of any Loan Party or any of its Subsidiaries
in any certificate or written statement given to Agent or Lenders, as of the date such representation, warranty, or other statement
was made, taken together with all such written certificates and written statements given to Agent or Lenders, contains any untrue
statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or
statements not misleading (it being recognized by Agent and Lenders that the projections and forecasts provided by any Loan Party
or any of its Subsidiaries in good faith and based upon reasonable assumptions are not viewed as facts and that actual results
during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results).

 

Article
6.            AFFIRMATIVE COVENANTS.

While any Obligations (other than contingent indemnity Obligations
to the extent no claim giving rise thereto has been asserted) remain outstanding or commitment to advance credit to Borrower remains
outstanding:

 

Section 6.01.            
Financial Statements. Borrower shall provide to the Lenders the financial statements or financial reports specified
in Sections 6.01(a) and (b), prepared in accordance with GAAP, consistently applied (except, in the case of unaudited Financial
Statements, for the absence of footnotes and normal year-end adjustments) and the other information specified below.

 

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		(a)	As soon as practicable (and in any event within ninety (90) days after the end of each fiscal year),
audited consolidated Financial Statements of the Borrower, the Guarantors and their respective Subsidiaries for such fiscal year,
setting forth in comparative form the corresponding figures for the preceding fiscal year, and accompanied by (1) a compliance
certificate in the form of Exhibit K (the “Compliance Certificate”) and (2) the unqualified opinion
of independent certified public accountants with respect to the audited consolidated Financial Statements, which accountants shall
be an independent accounting firm selected by the Borrower and acceptable to the Lenders (it being understood and agreed that any
“big four” accounting firm of nationally recognized standing shall be acceptable to the Lenders), and such audited
consolidated Financial Statements shall have been prepared in accordance with GAAP, and present fairly the financial condition,
results of operations and shareholders’ equity and cash flows for the Borrower, the Guarantors and their respective Subsidiaries
as of the end of and for the fiscal year then ended and shall not be subject to any “going concern” or like qualification
or exception or any qualification or exception as to the scope of such audit.
	 	 	 

		(b)	As soon as practicable (and in any event within forty-five (45) days after the end of each fiscal
quarter), unaudited consolidated Financial Statements of the Borrower, the Guarantors and their respective Subsidiaries for such
fiscal quarter, setting forth in comparative form the corresponding figures for (i) the corresponding portion of the preceding
fiscal year, and (ii) the corresponding fiscal quarter of the previous fiscal year, certified by Borrower’s Chief Executive
Officer or Chief Financial Officer to fairly present the consolidated financial condition, results of operations and shareholders’
equity and cash flows for the Borrower, the Guarantors and their respective Subsidiaries as of the end of such fiscal quarter in
accordance with GAAP (subject only to normal year-end audit adjustments and the absence of footnotes), accompanied by a Compliance
Certificate.
	 	 	 

		(c)	Substantially concurrently with the delivery of the Financial Statements required pursuant to clauses
(a) and (b) of this Section 6.01, Borrower shall hold a meeting (which meeting may, in the Lenders’ sole discretion, be held
telephonically) with Lenders to, among other things, review the financial results of the previous fiscal quarter and the financial
condition of the Borrower and its Subsidiaries as of such fiscal quarter (for the avoidance of doubt, such meeting shall be in
addition to any earnings call Borrower holds during such fiscal quarter).

 

Notwithstanding anything herein to the contrary,
documents required to be delivered pursuant to this Section 6.01 may be delivered by (x) electronic mail in accordance with Section
11.06 or (y) Borrower’s posting such documents, or providing a link thereto, on Borrower’s website on the Internet
at http://www.strlco.com/, and such documents shall be deemed delivered in the case of clause (y) on the date on which Agent receives
written notification of such posting (which notification may be made by electronic mail in accordance with Section 11.06). Notwithstanding
anything to the contrary contained in Section 6.01 and Section 6.02, effective immediately upon delivery of a written notice (an
“Information Declination Notice”) by Oaktree to (x) Agent and (y) Borrower that Oaktree no longer wishes
to receive the items described in such sections (or any subclauses thereof), neither Agent nor Borrower shall deliver any such
items to Oaktree, pursuant to the terms of this Loan Agreement or otherwise; provided, that it is acknowledged and agreed by the
parties hereto that Oaktree has been deemed to have delivered such Information Declination Notice to Agent and Borrower effective
as of the Closing Date. Oaktree may, in its sole discretion, rescind any Information Declination Notice by the delivery of written
notice of such rescission to (x) Agent and (y) Borrower, at which time any obligations to comply with Section 6.01 and/or Section
6.02 (or any subclauses thereof) shall be reinstated as of the date of delivery of such notice.

 

Section 6.02.            
Other Information. Each Loan Party shall, and cause each such Subsidiary to, promptly provide to Agent and Lenders
(after any of the same are available and in any event but in any event within the time periods set forth below):

 

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		(a)	within five (5) Business Days after a Responsible Officer obtains knowledge of the availability,
occurrence, event, condition or receiving service of any action, suit or proceeding before any Governmental Authority, which suit
or proceeding if decided adversely to such Loan Party or such Subsidiary could reasonably be expected to result in costs or damages
to such Loan Party or its Subsidiaries of One Million Dollars ($1,000,000) or more written notice thereof;
	 	 	 

		(b)	(i) within three (3) Business Days after a Responsible Officer obtains knowledge thereof, written
notice of any Default or Event of Default, and (ii) within five (5) Business Days after a Responsible Officer obtains knowledge
thereof, (A) any matter which has resulted or could reasonably be expected to result in a Material Adverse Effect, (B) any ERISA
Event, (C) any termination, suspension, material default or any other similar event arising with respect to any customer contracts
of any Loan Party or any of its Subsidiaries in existence as of the Closing Date or thereafter, in each case, with an individual
or aggregate value of Twenty-Five Million Dollars ($25,000,000) or more; or (D) any Event of Loss for which the amount claimed
exceeds Five Hundred Thousand Dollars ($500,000);
	 	 	 

		(c)	within five (5) Business Days of a Responsible Officer obtains knowledge thereof, written notice
of the receipt by any Loan Party or any of its Subsidiaries of any notice of violation of or potential liability or similar notice
under Environmental Law that would reasonably be expected to result in costs or damages to such Loan Party in excess of Two Million
Dollars ($2,000,000) in the aggregate (to the extent not covered by insurance);
	 	 	 

		(d)	within five (5) Business Days of a Responsible Officer obtains knowledge thereof, written notice
of the existence of any condition that could reasonably be expected to result in violations of or liabilities under, any Environmental
Law that would reasonably be expected to result in costs or damages to such Loan Party of Five Hundred Thousand Dollars ($500,000)
or more;
	 	 	 

		(e)	within five (5) Business Days of a Responsible Officer obtains knowledge thereof, written notice
of the receipt by any Loan Party of notification that any property of any Loan Party is subject to any Lien in favor of any Person
securing, in whole or in part, liabilities under Environmental Law;
	 	 	 

		(f)	written notice, within two (2) Business Days, of the provision or deposit by the Borrower or any
other Loan Party to any surety or bonding company, including but not limited to, Travelers Casualty and Surety Company of America,
of any assets, cash or contract funds in excess of $100,000 as collateral security for the obligations subject to such suretyship
or bonding arrangement;
	 	 	 

		(g)	within five (5) Business Days of receipt thereof by the Loan Parties, a copy of any definitive
letter provided by its certified public accountants citing a “material weakness”;
	 	 	 

		(h)	concurrently with the delivery of the Compliance Certificate referred to in Section 6.01(a)
or (b), an updated Perfection Certificate and updated schedules relating to the Collateral (including Schedule 8
hereto) (or a certification by the Borrower that there have been no changes to the most recent Perfection Certificate and Collateral
schedules delivered by the Borrower to the Agent hereunder); and
	 	 	 

		(i)	any additional information (including but not limited to tax returns, income statements, balance
sheets, and names of principal creditors) as Agent or Lenders shall reasonably request which is necessary to evaluate such Loan
Party’s continuing financial obligations, including such additional information regarding the business affairs, financial
condition or operations of any Loan Party or its Subsidiaries, or compliance with the terms of the Loan Documents.

 

Section 6.03.            
Corporate Identity. Each Loan Party shall notify Agent and Lenders in writing thirty (30) days prior to any change
in Borrower’s principal place of business or chief executive office and any change of such Loan Party’s name, identity,
state of incorporation or organization or corporate structure.

 

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Section 6.04.            
Insurance. Borrower shall, at its own expense, obtain and carry insurance in amounts and forms as are customarily
carried or maintained by similarly situated companies engaged in similar businesses, including insurance against loss or damage
to the Collateral and commercial general liability insurance and the key man life insurance policies required to be maintained
by the Loan Parties pursuant to the organizational documents of the Affiliated Entities. The insurance against loss or damage to
the Collateral shall name Agent as sole loss payee with respect to the Collateral, shall not be invalidated by any action of or
breach of warranty by Borrower of any provision thereof and shall waive subrogation against Agent. The liability policy(ies) shall
name Agent as an additional insured in the full amount of Borrower’s liability coverage limits (or the coverage limits of
any successor to Borrower or such successor’s parent which is providing coverage), be primary and without contribution as
respects any insurance carried by Agent and contain cross liability and severability of interest clauses. All policies of insurance
shall provide that Agent shall be given thirty (30) days’ notice of cancellation of coverage. On or prior to the Closing
Date and prior to each policy renewal, Borrower shall furnish to Agent, certificates of insurance or other evidence reasonably
satisfactory to Agent and Lenders that insurance complying with all of the above requirements is in effect. The proceeds of any
key man life insurance policies required to be maintained by the Loan Parties pursuant to the organizational documents of the Affiliated
Entities, including Myers and RHB LLC, shall be used to purchase or buy out all of the Equity Securities of such Affiliated Entity
held by a Person that is not a Loan Party or Subsidiary such that upon consummation of such purchase or buy out, such Affiliated
Entity shall become a wholly-owned direct Subsidiary of a Loan Party and provide a Guaranty in accordance with Section 6.10.

 

Section 6.05.            
Taxes. Each Loan Party shall pay, discharge or otherwise satisfy as the same shall become due and delinquent
in the normal conduct of its business, all of its obligations and liabilities in respect of material Taxes imposed upon it or upon
its income and its profits or in respect of its property and all other Governmental Authority assessments or before any penalty
attaches thereto, except as may be contested in good faith by the appropriate procedures and for which such Loan Party shall maintain
adequate reserves in accordance with GAAP; and timely file all required Tax returns and reports described in Section 5.10.

 

Section 6.06.            
Title. Each Loan Party shall promptly notify Agent and the Lenders in writing of any event which would adversely
affect the value of the Collateral in an amount equal to One Million Dollars ($1,000,000) in the aggregate or more, the ability
of such Loan Party or Agent to dispose of the Collateral, or the rights or remedies of Agent in relation thereto, including, but
not limited to, the levy of any legal process against the Collateral.

 

Section 6.07.            
Collateral. Each Loan Party hereby agrees (a) to perform all acts that may be necessary to maintain (ordinary
wear and tear excepted), preserve, protect and perfect the Collateral, the Lien granted to Agent herein, for the benefit of the
Agent and the Lenders, and the perfection and priority of such Lien, except for Permitted Liens; (b) not to use or permit
any Collateral to be used (i) in violation in any material respect of any Requirement of Law, or (ii) in violation of
any policy of insurance covering the Collateral; (c) to pay promptly when due all material Taxes and all Liens and all other
charges (other than Permitted Liens) now or hereafter imposed upon or affecting any Collateral, before delinquency or before any
penalty attaches thereto, except as may be contested in good faith by the appropriate procedures and for which such Loan Party
shall maintain adequate reserves in accordance with GAAP; (d) to procure, execute and deliver from time to time any endorsements,
assignments, financing statements and other writings reasonably deemed necessary or appropriate by Agent or any Lender to perfect,
maintain and protect its Lien hereunder and the priority thereof and to deliver promptly to Agent, for the benefit of the Agent
and the Lenders, all originals of Collateral consisting of instruments having an aggregate value or face amount of Two Hundred
Fifty Thousand Dollars ($250,000) or more; (e) to appear in and defend any action or proceeding which may affect its title
to or Agent’s or any Lender’s interest in the Collateral; (f) if Agent or any Lender gives value to enable any
Loan Party to acquire rights in or the use of any Collateral, to use such value for such purpose; (g) to keep separate, accurate
and complete Books and Records of the Collateral and to provide Agent or Lender with such Books and Records and such other reports
and information relating to the Collateral as Agent or Lender may reasonably request from time to time; (h) to collect, enforce
and receive delivery of the accounts receivable and payment intangibles in accordance with past practice until otherwise notified
by Agent or Lender; (i) to comply with all material Requirements of Law relating to the production, possession, operation,
maintenance and control of the Collateral (including the Fair Labor Standards Act) and (j) to permit Agent and Lenders (at the
sole cost of Borrower) and their respective representatives the right at any time, but no more than two times per calendar year
for the Agent and Lenders, collectively (or, during the continuation of an Event of Default, at any time), during normal business
hours, upon reasonable prior notice, to visit and inspect the properties of the Loan Parties and their respective Subsidiaries
and its corporate, financial and operating Records, and make abstracts therefrom, and to discuss such Loan Parties’ or their
respective Subsidiaries’ affairs, finances and accounts with its directors, officers and, if reasonably requested by Borrower,
in the presence of an officer or other representative of Borrower designated by Borrower for such purpose, independent public accountants.

 

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Section 6.08.            
Collateral Control; Motor Vehicles.

 

		(a)	Except for Collateral that is of a type that is moved from location to location in the ordinary
course of business, each Loan Party shall keep all items of Collateral at (a) the Loan Parties’ chief executive office
located at the address specified in the Perfection Certificate, (b) the other locations specified in the Perfection Certificate,
(c) any supplier’s facility located outside the United States or (d) such other places agreed to in writing by
Agent and Lenders. Each Loan Party shall be obligated to deliver, or note Agent’s Lien on, any certificates of title with
respect to any vehicles, airplanes or other assets subject to certificates of title, in each case, having an aggregate value in
excess of Fifty Thousand Dollars ($50,000) (such assets, the “Material Titled Assets”). Each Loan Party
shall furnish to Agent and Lenders from time to time such statements and schedules further identifying and describing the Collateral
and such other reports in connection with the Collateral as Agent or Lenders may reasonably request, all in reasonable detail.
	 	 	 

		(b)	Each Loan Party shall take such actions as are reasonably necessary or as Agent (acting at the
direction of the Required Lenders) or the Required Lenders may reasonably request from time to time to cause Agent to be listed
as the lienholder on each certificate of title or ownership covering any vehicles, airplanes or other assets subject to certificates
of title (“Titled Assets”); provided, that:
	 	 	 

		(i)	with respect to any Titled Assets owned by a Loan Party on the Closing Date, within thirty (30)
days after the Closing Date (or such later date as agreed to by the Required Lenders in their sole discretion) the Vehicle Collateral
Agent, on behalf of the Agent, shall have received all certificates of title (or equivalent certificate or document) evidencing
any Titled Assets, together with evidence that all Liens noted on such certificates of title have been released or arrangements,
to the satisfaction of the Vehicle Collateral Agent and Agent, shall have been made for such release;
	 	 	 

		(ii)	subsequent to the Closing Date, in the event that any Loan Party obtains any Titled Assets, such
Loan Party shall notify the Agent and within thirty (30) days of such acquisition (or such later date as agreed to by the Required
Lenders in their sole discretion), (A) deliver to the Agent (1) with respect to a new Titled Asset, a copy of the manufacturer’s
certificate or statement of origin or (2) with respect to a used Titled Asset, a copy of the certificate of title (or equivalent
certificate or document) reflecting the transfer of ownership to the applicable Loan Party, in each case reflecting the Agent’s
Lien thereon and (B) deliver to the Vehicle Collateral Agent the original certificate of title (or equivalent certificate or document)
evidencing such Titled Asset and reflecting the Agent’s Lien thereon (together with evidence that all Liens noted on such
certificate of title (or equivalent certificate or document) have been released, other than Liens in favor of the Agent); and
	 	 	 

		(iii)	unless an Event of Default has occurred and is continuing, the requirements of this Section 6.08(b)
shall apply only to Material Titled Assets.

 

Section 6.09.            
Intellectual Property.

 

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		(a)	Upon the reasonable request of Agent or Lenders, in order to facilitate filings with the PTO and
the United States Copyright Office, each Loan Party shall execute and deliver to Agent one or more Intellectual Property Security
Agreements to further evidence Agent's Lien on such Loan Party’s United States issued or filed Patents, registered or filed
Trademarks (other than any United States intent-to-use trademark application to the extent that, and solely during the period in
which, the grant, attachment, or enforcement of a security interest therein would impair the validity, registrability, or enforceability
of such intent-to-use trademark application under applicable federal law or any trademark registration that issues therefrom; provided,
that upon submission and acceptance by the PTO of a statement of use or an amendment to allege use pursuant to 15 U.S.C. Section
1060(a) (or any successor provision), a trademark security agreement shall be delivered for such intent-to-use trademark application),
or registered or filed Copyrights, and the General Intangibles of such Loan Party relating thereto or represented thereby. Each
Loan Party at its expense shall execute and deliver, or cause to be executed and delivered, to Agent any and all documents and
instruments, in form and substance reasonably satisfactory to Agent and Lenders, and take any and all action, which Agent or Lenders
may reasonably request from time to time, to perfect and continue perfected, maintain the priority of or provide notice of Agent’s
security interests, for the benefit of Lenders, in the Loan Party Intellectual Property. If a Loan Party refuses to execute and
deliver, or fails timely to execute and deliver, any of the documents it is requested to execute and deliver by Agent in accordance
with the foregoing, Agent shall have the right, in the name of such Loan Party, or in the name of Agent or otherwise, without notice
to or assent by such Loan Party, and such Loan Party hereby irrevocably constitutes and appoints Agent (and any of Agent's officers
or employees or agents designated by Agent) as Loan Party's true and lawful attorney-in-fact with full power and authority, (i)
to sign the name of such Loan Party on all or any of such documents or instruments and perform all other acts that Agent reasonably
deems necessary or advisable in order to perfect or continue perfected, maintain the priority or enforceability of or provide notice
of Agent's security interests in, the applicable Loan Party Intellectual Property, and (ii) to execute any and all other documents
and instruments, and to perform any and all acts and things for and on behalf of such Loan Party, which Agent or Lenders reasonably
may deem necessary or advisable to maintain, preserve and protect such Loan Party Intellectual Property and to accomplish the purposes
of this Loan Agreement, including (A) to defend, settle, adjust or institute any action, suit or proceeding with respect to such
Loan Party Intellectual Property, (B) to assert or retain any rights under any license agreement for any of such Loan Party Intellectual
Property, and (C) to execute any and all applications, documents, papers and instruments for Agent to use such Loan Party Intellectual
Property, to grant or issue any exclusive or non-exclusive license with respect to any Loan Party Intellectual Property, and to
assign, convey or otherwise transfer title in or dispose of such Loan Party Intellectual Property. The power of attorney set forth
in this Section 6.09(a), being coupled with an interest, is irrevocable so long as this Loan Agreement shall not have terminated
in accordance with the terms set forth herein.
	 	 	 

		(b)	Each Loan Party shall protect and diligently enforce and defend at such Loan Party's expense, to
the extent deemed appropriate in such Loan Party's reasonable business judgment, all material Loan Party Intellectual Property.
Each Loan Party further agrees, unless otherwise determined by such Loan Party in its reasonable business judgment, not to abandon
any material Loan Party Intellectual Property or Loan Party Intellectual Property License (in each case, respectively, other than
at the end of its statutory or contractual term). Each Loan Party hereby agrees, subject to the terms and conditions set forth
herein, to take the steps described in this Section 6.09(b) with respect to all newly developed or acquired Intellectual Property
to which it is now or later becomes entitled that is included in the Collateral.
	 	 	 

		(c)	Except as otherwise expressly provided herein, (i) each Loan Party acknowledges and agrees that
the Lenders shall have no duties with respect to any Loan Party Intellectual Property or Loan Party Intellectual Property Licenses;
and (ii) without limiting the generality of this Section 6.09(c), each Loan Party acknowledges and agrees that no Lender shall
be under any obligation to take any steps necessary to preserve rights in the Collateral consisting of Loan Party Intellectual
Property or Loan Party Intellectual Property Licenses against any other Person, but any Lender may do so at its option from and
after the occurrence and during the continuance of an Event of Default, and all expenses incurred in connection therewith (including
reasonable fees and out-of-pocket expenses of attorneys and other professionals) shall be for the sole account of Loan Party and
shall be chargeable to the account of such Loan Party.
	 	 	 
	

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		(d)	Any updated Perfection Certificate delivered pursuant to Section 6.02(h) shall include a list of
all new Copyrights, Patents and Trademarks that are registered or the subject of pending applications for registrations, and of
all Loan Party Intellectual Property Licenses, in each case, which were, as applicable, acquired, registered, or for which applications
for registration were filed by, or with regard to Loan Party Intellectual Property Licenses, were entered into by, any Loan Party
during the prior period and any statement of use or amendment to allege use with respect to intent-to-use trademark applications.
In the case of such registrations or applications therefor, which were acquired by a Loan Party, such Loan Party shall file the
necessary documents with the appropriate Governmental Authority identifying such Loan Party as the owner (or as a co-owner thereof,
if such is the case) of such Intellectual Property. In each of the foregoing cases, such Loan Party shall promptly cause to be
prepared, executed, and delivered to Agent supplemental schedules to the applicable Loan Documents to identify such Patent, Trademark
and Copyright registrations and applications therefor (with the exception of Trademark applications filed on an intent-to-use basis
for which no statement of use or amendment to allege use has been filed) and Loan Party Intellectual Property Licenses as being
subject to the security interests created thereunder.
	 	 	 

Section 6.10.            
Creation/Acquisition of Subsidiaries. Each Loan Party shall provide Agent and Lenders with at least fifteen (15)
days (or such shorter period as the Required Lenders may accept in their sole discretion) prior written notice of Borrower’s,
any Loan Party’s, or any of their respective Subsidiaries’ intention to create or, to the extent permitted pursuant
to this Loan Agreement, acquire (a) a new Subsidiary (other than any Project Specific JV) and (b) any Minority Subsidiary (other
than a Project Specific JV) and shall cause any such Subsidiary described in clause (a) or any such Minority Subsidiary described
in clause (b) (unless such Minority Subsidiary is contractually or otherwise prohibited from providing a Guaranty; provided,
that to the extent any such Minority Subsidiary (i) becomes a direct or indirect Subsidiary of a Loan Party or (ii) a Loan Party
or any Subsidiary is permitted or able to cause such Minority Subsidiary to become a Guarantor, whether by virtue of becoming a
majority-owned or wholly-owned Subsidiary of a Loan Party or otherwise, then such Minority Subsidiary shall no longer be excluded
from the requirements of becoming a Required Guarantor Party hereunder and shall immediately provide a Guaranty and become a Required
Guarantor Party hereunder) to provide a Guaranty; provided, that (i) any Minority Subsidiary that is contractually or otherwise
prohibited from providing a Guaranty shall not be required to provide a Guaranty hereunder, unless (A) such Minority Subsidiary
becomes a direct or indirect Subsidiary of a Loan Party or (B) a Loan Party or any Subsidiary is permitted or able to cause such
Minority Subsidiary to become a Guarantor, whether by virtue of becoming a majority-owned or wholly-owned Subsidiary of a Loan
Party or otherwise, in which case, such Minority Subsidiary shall no longer be excluded from the requirements of becoming a Required
Guarantor Party hereunder and shall immediately provide a Guaranty and become a Required Guarantor Party hereunder and (ii) to
the extent that a Loan Party is unable under the organizational documents of an Affiliated Entity (as in effect as of the Closing
Date) to restrict the creation of a Subsidiary of an Affiliated Entity, whether by the taking of any action or the refraining from
taking of such action any Subsidiary created by an Affiliated Entity shall not be required to provide a Guaranty hereunder (such
persons and entities in clauses (a) and (b), each a “Required Guarantor Party” and collectively,
the “Required Guarantor Parties”). Upon such creation or, to the extent permitted hereunder, acquisition
of any Required Guarantor Party or, upon any entity becoming, or upon any entity required to become, a Required Guarantor Party
pursuant to the terms hereof, any such Loan Party or Subsidiary shall promptly (and in any event within five (5) Business Days
of such creation or acquisition) take all such action (including any action as may be reasonably required by Agent and the Required
Lenders) to cause each such Required Guarantor Party to guarantee the Obligations under the Loan Documents and, in each case, grant
a continuing pledge and security interest in and to the assets of such Required Guarantor Party (substantially as described on
Exhibit B hereto); and the relevant Loan Party or Subsidiary shall grant and pledge to Agent, for the ratable benefit of
the Lenders, a perfected security interest in all of the stock, units or other evidence of ownership of each Required Guarantor
Party, and execute and deliver, or cause such Required Guarantor Party to execute and deliver, such other documentation as Agent
or the Lenders may reasonably request in connection with the foregoing, including, without limitation, appropriate UCC-1 financing
statements, Mortgages, any pledge amendments or supplements required pursuant to the Pledge Agreement, certified resolutions and
other organizational and authorizing documents of such Person and favorable opinions of counsel to such Person (which shall cover,
among other things, the legality, validity, binding effect and enforceability of the documentation referred to in this Section
6.10), a Joinder Agreement in substantially the form of Exhibit H hereto, an updated Schedule 8 hereto and an updated
Perfection Certificate, in each case, covering such new Person and its respective assets, all in form, content and scope reasonably
satisfactory to the Required Lenders (the foregoing collectively, the “Joinder Requirements”). For the
avoidance of doubt, (i) any Subsidiaries (other than Project Specific JVs) that are owned more than 50%, directly or indirectly,
by a Loan Party or any of its Subsidiaries shall be required to become a Guarantor hereunder and be deemed a Required Guarantor
Party and (ii) any Loan Party that holds any Equity Securities in a joint venture (whether minority- or majority-controlled), Minority
Subsidiary or any other Subsidiary (including any Affiliated Entities) (other than those which are not permitted to be pledged
as of the Closing Date pursuant to the terms of its organizational documents) shall be required to pledge its Equity Securities
in such entity to the Agent, for the benefit of the Agent and the Lenders, as collateral security for the Obligations.

 

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Section 6.11.            
Environmental Matters. Except to the extent not reasonably expected to result in liability to the Loan Parties
(or any of them) in excess of Two Million Dollars ($2,000,000) (to the extent not covered by insurance), (i) each of the Loan Parties
shall, and shall cause each of its Subsidiaries to, comply with, and maintain its properties and facilities (whether owned, leased,
subleased or otherwise operated or occupied) in compliance with, all Environmental Laws; and (ii) in the event of the presence
of any Hazardous Material on any property of any Loan Party, each Loan Party and its respective Subsidiaries, upon discovery thereof,
shall take all necessary steps to initiate and expeditiously complete all response, corrective and other action to mitigate and
eliminate any such violation or potential liability, and shall keep the Lenders reasonably informed on a regular basis of their
material actions and the results of such actions. Without limiting the foregoing, if an Event of Default is continuing, then each
Loan Party shall, promptly upon receipt of written request from the Required Lenders, cause the performance of, and allow the Lenders
(or their designees) and its representatives access to its properties and facilities for the purpose of conducting, such environmental
audits and assessments, including subsurface sampling of soil and groundwater, and cause the preparation of such reports, in each
case as the Required Lenders may from time to time reasonably request. Such audits, assessments and reports, to the extent not
conducted by the Lenders (or their designees) or any of its representatives, shall be conducted and prepared by reputable environmental
consulting firms reasonably acceptable to the Required Lenders and shall be in form and substance reasonably acceptable to the
Required Lenders.

 

Section 6.12.            
Maintenance as Public Entity. Borrower shall maintain its status as a publicly-listed entity and SEC filer.

 

Section 6.13.            
Real Property. With respect to each parcel of Real Property included as Collateral, Borrower shall provide prompt
notice to the Agent of any re-designation into or out of a “Special Flood Hazard Area” as determined by the Federal
Emergency Management Agency. Without limiting any other restrictions set forth in this Loan Agreement, if a Loan Party or any of
its Subsidiaries (other than (i) Affiliated Entities to the extent such Affiliated Entity is not a Required Guarantor Party or
Guarantor and (ii) Project Specific JVs) at any time acquires or otherwise comes to own any fee interests in any Real Property,
or the Permitted Liens on the Excluded Property are terminated, unless otherwise agreed by the Required Lenders, such Loan Party
or applicable Subsidiary shall promptly (but in no event later than sixty (60) days after the acquisition of such Real Property
or the termination of such Liens, subject to extension in the Required Lender’s sole discretion) execute and deliver to the
Agent such Mortgages, as may be necessary to cause the Agent to have a Lien in such property subject only to Permitted Liens. To
the extent any property in which a Mortgage is required is located in a jurisdiction with mortgage recording or similar tax, the
amount secured by the Mortgage with respect to such Real Property shall be limited to the fair market value of such Real Property
as determined in good faith based on the appraisal to be obtained by the Agent with respect to such Real Property subject to any
applicable laws in the relevant jurisdiction or such lesser amount agreed to in its sole discretion by the Required Lenders. In
addition, unless otherwise waived by Agent (acting at the direction of the Required Lenders) or the Required Lenders, Borrower
shall deliver:

 

		(a)	an opinion of counsel in each state in which Real Property is located with respect to the enforceability
of the Mortgages to be recorded in such state and such other matters as the Required Lenders may reasonably request;
	 	 	 

		(b)	Phase I environmental site assessment reports (to the extent not already provided) and reliance
letters with respect thereto and any other due diligence with respect to environmental due diligence on such Real Property as is
deemed necessary upon review of such Phase I environmental site assessment reports;
	 	 	 
	

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		(c)	the documents and instruments necessary in order to comply with the National Flood Insurance Reform
Act of 1994 and related legislation (including the regulations of the Board of Governors of the Federal Reserve System), including,
without limitation: (1) a completed standard flood hazard determination form, (2) if the improvement(s) to the improved Real Property
is located in a special flood hazard area, a notification to the Borrower that flood insurance coverage under the National Flood
Insurance Program is not available because the community does not participate in the National Flood Insurance Program, (3) documentation
evidencing Borrower’s receipt of the notification in clause (2), and (4) if flood insurance is available in the community
in which the property is located, a copy of the flood insurance policy, the Borrowers’ application for a flood insurance
policy plus proof of premium payment, a declaration page confirming that flood insurance has been issued, or such other evidence
of flood insurance reasonably satisfactory to the Required Lenders;
	 	 	 

		(d)	ALTA extended coverage lenders’ policies of title insurance or unconditional commitments
therefor insuring the Lien of each Mortgage on the Real Property described therein, free of any other Liens other than Permitted
Liens, issued by one or more nationally recognized title insurance companies reasonably satisfactory to the Required Lenders with
respect to such Real Property (each, a “title policy”), in amounts not to exceed the fair market value of such Real
Property, together with such customary endorsements as the Required Lenders may reasonably request and which are available at reasonable
rates in the jurisdiction where the applicable Real Property is located, and evidence satisfactory to the Required Lenders that
Borrower has paid to the title insurance company or to the appropriate Governmental Authorities all expenses and premiums of the
title insurance company and all other sums required in connection with the issuance of such title policy and all recording and
stamp taxes (including mortgage recording and intangible Taxes) payable in connection with recording the Mortgages for such Real
Property in the appropriate real estate records;
	 	 	 

		(e)	a survey of all Real Property (including all improvements, easements and other customary matters
thereon reasonably required by the Required Lenders) or the equivalent (including, without limitation, ExpressMaps) certified to
the Agent which: (i) is sufficient to cause the title insurance company to omit as an exception to each Title Policy the standard
printed survey exception, (ii) does not create any new exceptions to the Title Policy that are not Permitted Liens, and (iii) otherwise
meets Required Lender’s reasonable requirements; and
	 	 	 

		(f)	such Uniform Commercial Code financing statements as are necessary to perfect the security interests
created thereby, in each case in form appropriate for recording in the relevant jurisdiction

 

Section 6.14.            
Government Contracts. Other than Accounts and Chattel Paper of a Loan Party the aggregate value of which does
not at any one time exceed One Million Dollars ($1,000,000), if any Account or Chattel Paper of a Loan Party arises out of a contract
or contracts with the United States of America or any department, agency, or instrumentality thereof, each Loan Party shall promptly
(and in any event within five (5) Business Days of the creation thereof) notify Agent and the Lenders thereof and, promptly (and
in any event within five (5) Business Days) after request by Agent (acting at the direction of the Required Lenders) or the Required
Lenders, execute any instruments or take any steps reasonably required by Agent (acting at the direction of the Required Lenders)
or the Required Lenders in order that all moneys due or to become due under such contract or contracts shall be assigned to Agent,
for the benefit of the Lenders, and shall provide written notice thereof under the Federal Assignment of Claims Act or other relevant
applicable law, in substantially the form attached hereto as Exhibit O.

 

Section 6.15.            
Further Assurances. Each Loan Party shall promptly furnish to Agent and the Lenders from time to time such statements
and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as Agent
(acting at the direction of the Required Lenders) or the Required Lenders may reasonably request by prior written notice, all in
reasonable detail. The Loan Parties shall take such further actions as Agent (acting at the direction of the Required Lenders)
or the Required Lenders may reasonably request to perfect or maintain Agent’s security interest granted in this Loan Agreement
or to otherwise further the purposes of this Loan Agreement.

 

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Section 6.16.            
Post-Closing Obligations. Borrower shall, and shall cause each Loan Party and each of their respective Subsidiaries
to, complete each of the post-closing obligations and/or deliver to Agent and the Lenders each of the documents, instruments, agreements
and information listed on Schedule 10 hereto, the Post-Closing Obligations Schedule, on or before the date set forth for
each such item thereon (as the same may be extended by the Required Lenders in writing in their sole discretion), each of which
shall be completed or provided in form and substance reasonably satisfactory to the Required Lenders.

 

Section 6.17.            
Financial Covenants. Borrower covenants and agrees that, until termination of all of the commitments hereunder
and payment in full of the Obligations (other than contingent indemnity obligations) (such covenants set forth below, the “Financial
Covenants”):

 

		(a)	Total Secured Leverage Ratio. Borrower shall not permit the Total Secured Leverage Ratio,
as of the last day of any fiscal quarter ending on the date set forth in the table below, to exceed the ratio set forth opposite
such period:
	 	 	 

	 	Period Ending	Total Secured Leverage Ratio
	 	June 30, 2017	3.10:1.00
	 	September 30, 2017	2.70:1.00
	 	December 31, 2017	2.45:1.00
	 	March 31, 2018	2.35:1.00
	 	June 30, 2018	2.20:1.00
	 	September 30, 2018	2.00:1.00
	 	December 31, 2018	2.00:1.00
	 	March 31, 2019	2.00:1.00
	 	June 30, 2019	1.90:1.00
	 	September 30, 2019 and each quarter thereafter	1.80:1.00
	 	 	 

		(b)	Cash Collateral Liquidity. Borrower shall maintain, at all times, Cash Collateral Liquidity
in an amount of not less than (i) commencing on June 30, 2017 and continuing through September 30, 2017, $10,000,000, (ii) commencing
on October 1, 2017 and continuing through April 3, 2018, $15,000,000, and (iii) commencing April 4, 2018 and continuing thereafter,
$18,000,000; provided, however, that in the event (A) the Secured Intercompany Note is repaid in full and no longer in full force
and effect, (B) the Liens on the Excluded Property securing such Secured Intercompany Note are released in their entirety and (C)
such Excluded Property becomes and is deemed a part of the Collateral, the Cash Collateral Liquidity required pursuant to this
Section 6.17(b) shall be $15,000,000 at all times from and after April 4, 2018.
	 	 	 

		(c)	Contract Backlog. Borrower shall maintain Contract Backlog, as of the last day of each fiscal
quarter ending on the date set forth in the table below, at a minimum amount equal to or greater than the corresponding level set
forth opposite such period:
	 	 	 
	

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	 	Period Ending	Contract Backlog
	 	June 30, 2017	$60,000,000
	 	September 30, 2017	$60,000,000
	 	December 31, 2017	$60,000,000
	 	March 31, 2018	$65,000,000
	 	June 30, 2018	$65,000,000
	 	September 30, 2018	$65,000,000
	 	December 31, 2018	$65,000,000
	 	March 31, 2019 and each fiscal quarter thereafter	$70,000,000
	 	 	 

		(d)	Capital Expenditures. Borrower, the Guarantors and their respective Subsidiaries shall not
make or incur, in each consecutive four-fiscal quarter period, Consolidated Capital Expenditure, after deducting Net Cash Proceeds
received from the Transfer of any used equipment, in excess of $15,000,000 in the aggregate.
	 	 	 

		(e)	Bonding Capacity. Borrower shall maintain, at all times, bonding capacity in an amount of
not less than $1,000,000,000 (it is understood and agreed that compliance with the foregoing may be evidenced by delivery to Agent
and the Lenders of a letter issued by a Bonding Company, which letter shall be in form and substance substantially consistent with
the Existing Bonding Letter or any other form acceptable to the Required Lenders).
	 	 	 

		(f)	Tealstone Residential - Consolidated EBITDA. Commencing with the fiscal quarter ending June
30, 2017, Tealstone Residential shall maintain, as of the last day of any fiscal quarter for each consecutive four-fiscal quarter
period, Consolidated EBITDA in an amount of not less than $12,000,000.
	 	 	 

Section 6.18.            
Collateral Enhancement. The Loan Parties shall comply with the collateral enhancement and other requirements
and obligations set forth in Schedule 3 hereto, on or before the dates set forth therein; provided, however,
that if the Loan Parties are unable to comply with such requirements and obligations set forth in Schedule 3 hereto on or
prior to the first anniversary of the Closing Date, the then-applicable interest rate hereunder shall, automatically and immediately
effective as of April 4, 2018, without any further action by any of the parties hereto, be subject to the Enhanced Rate Adjustment;
provided, further, that the failure to continue to satisfy the Collateral Enhancement Requirement after the first anniversary of
the Closing Date could further subject the Loan Parties to the Enhanced Rate Adjustment implemented by the Required Lenders in
their sole discretion.

 

Article
7.            NEGATIVE COVENANTS.

 

While any Obligations (other than contingent indemnity Obligations
to the extent no claim giving rise thereto has been asserted) remain outstanding or commitment to advance credit to Borrower remains
outstanding:

 

Section 7.01.            
Liens. The Loan Parties shall not (i) in any way create or permit to exist any Lien with respect to any
of their or their Subsidiaries’ (other than Affiliated Entities and Project Specific JVs) property, except for Permitted
Liens, nor (ii) permit the inclusion in any contract to which it or a Subsidiary (other than an Affiliated Entity or Project
Specific JVs) becomes a party of any provisions that could restrict or invalidate the existence or granting of a security interest
to Agent, for the benefit of the Agent and the Lenders, in any of such Loan Party’s or such Subsidiary’s property or
revenues, whether now owned or hereafter acquired (other than (A) restrictions under this Loan Agreement, (B) restrictions
that would be unenforceable or ineffective pursuant to Section 9-408 of the Code or the Uniform Commercial Code as adopted
in any other applicable jurisdiction, or (C) restrictions in agreements governing property subject to a Lien that is otherwise
permitted pursuant to clause (v) or clause (vi) of the definition of Permitted Liens).

 

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Section 7.02.            
Dispositions. No Loan Party shall sell, transfer, assign, pledge, collaterally assign, exchange, or otherwise
dispose of (collectively, a “Transfer”), or permit any of its Subsidiaries (other than Affiliated Entities
or Project Specific JVs) to Transfer, all or any part of its business or property, other than Transfers: (i) of inventory
in the ordinary course of business, (ii) of non-exclusive licenses and similar arrangements for the use of the property of
such Loan Party or its Subsidiaries in the ordinary course of business, (iii) of substantially worn-out, damaged, unneeded
or obsolete equipment in the ordinary course of business, (iv) of equipment consistent with such Person’s historical practice
and in the ordinary course of business to the extent the Net Cash Proceeds of such Transfer are either used to prepay the Loans
in accordance with Section 2.02(d)(ii)(C) or reinvested in fixed or capital assets in accordance with Section 2.02(d)(ii)(C), (v)
of other property sold at fair market value not to exceed $1,000,000 in the aggregate during the term of the Loan Agreement not
in the ordinary course of business, or (vi) of the fee-simple ownership interests in the Excluded Property so long as the Net Cash
Proceeds of such Transfer are used to prepay the Loans in accordance with Section 2.02(d)(ii)(C); provided, that, such Net Cash
Proceeds described in this clause (vi) shall not be permitted to be reinvested in any assets of the Loan Parties or their respective
Subsidiaries as contemplated by Section 2.02(d)(ii)(C).

 

Section 7.03.            
Fundamental Changes. No Loan Party nor any of its respective Subsidiaries (other than Affiliated Entities or
Project Specific JVs) shall enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or Transfer all or substantially all of its property or business, except that (i) any Subsidiary
of the Borrower or a Guarantor (other than Tealstone Residential) may be merged or consolidated with or into Borrower (provided
that if Borrower is involved, Borrower shall be the continuing or surviving entity) or with or into any other Loan Party (provided
that such Loan Party shall be the continuing or surviving entity); (ii) any Loan Party (other than Borrower) or Subsidiary of the
Borrower (other than Tealstone Residential) may Transfer any or all of its assets to Borrower or any Guarantor (upon voluntary
liquidation or otherwise) and any Subsidiary that is not a Loan Party may Transfer all or any of its assets to any other Subsidiary
that is not a Loan Party; (iii) Transfers permitted by Section 7.02 may be made; and (iv) any Permitted Investment may be structured
as a merger, consolidation or amalgamation.

 

Section 7.04.            
Restricted Payments. Without the prior written consent of the Required Lenders, no Loan Party shall, nor shall
any of such Loan Parties’ Subsidiaries (other than Affiliated Entities) (each of the following, a “Restricted
Payment”), (i) pay any dividends or make any distributions on its Equity Securities; (ii) purchase, redeem,
retire, defease or otherwise acquire for value any of its Equity Securities; (iii) return any capital to any holder of its
Equity Securities as such; (iv) make any distribution of assets, Equity Securities, obligations or securities to any holder
of its Equity Securities as such; or (v) set apart any sum for any such purpose; provided, however, that (A)
Borrower may declare dividends payable solely in common stock, (B) any Subsidiary may make Restricted Payments to the Borrower
or any Guarantor that is its respective parent entity; and any Subsidiary that is not a Loan Party may make Restricted Payments
to any other Subsidiary that is not a Loan Party, and (C) with respect to the restrictions described in subclause (ii) above, with
respect to Borrower, repurchases pursuant to the terms of employee stock purchase plans, employee restricted stock agreements or
similar arrangements either (i) by the cancellation of Indebtedness or (ii) in an aggregate amount not to exceed One
Hundred Thousand Dollars ($100,000)).

 

Section 7.05.            
Indebtedness; Maximum Recourse Obligations. The Loan Parties and their Subsidiaries (other than Affiliated Entities
and Project Specific JVs) shall not create, incur, assume or suffer to exist (i) any Indebtedness, other than Permitted Indebtedness
nor (ii) any obligations for or on behalf of any of their respective non-wholly-owned or non-controlling Subsidiaries (including,
for the avoidance of doubt, joint ventures (other than Project Specific JVs), pursuant to which the holder of such obligations
has recourse against any Loan Parties.

 

Section 7.06.            
Investments. The Loan Parties and its Subsidiaries (other than Affiliated Entities and Project Specific JVs)
shall not directly or indirectly acquire or own, or make any Investment in or to any Person other than Permitted Investments; or
suffer or permit any Subsidiary (other than an Affiliated Entity or a Project Specific JV) to be a party to, or be bound by, an
agreement (other than a Loan Document) that restricts such Subsidiary from paying dividends or otherwise distributing property
to Borrower or any other Loan Party.

 

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Section 7.07.            
Transactions with Affiliates. The Loan Parties and their Subsidiaries (other than Affiliated Entities) shall
not directly or indirectly enter into or permit to exist any transaction with any Affiliate, except for transactions that are in
the ordinary course of such Person’s business, upon fair and reasonable terms that are no less favorable to such Loan Party,
or such Subsidiary, than would be obtained in an arms’ length transaction with a non-affiliated Person; provided that the
foregoing restriction shall not apply to (i) any transaction between such Loan Party or any of its Subsidiaries (other than
Affiliated Entities) or between any Subsidiaries (other than Affiliated Entities) that is not otherwise prohibited by this Loan
Agreement and (ii) compensation arrangements and benefit plans for officers and other employees of the Loan Parties and their
respective Subsidiaries (other than Affiliated Entities) entered into or maintained in the ordinary course of business and consistent
with such Loan Parties’ and such Subsidiaries’ historical practices, which are, in each case, approved by such Loan
Parties’ or such Subsidiaries’ board of directors (or equivalent governing body).

 

Section 7.08.            
Indebtedness Payments. The Loan Parties and its Subsidiaries (other than Affiliated Entities and Project Specific
JVs) shall not (i) prepay, redeem, purchase, defease or otherwise satisfy in any manner prior to the scheduled repayment thereof
any Indebtedness for borrowed money, including any Subordinated Debt or Closing Date Seller Notes (other than amounts due
under this Loan Agreement or permitted to be prepaid under this Loan Agreement or any lease obligations permitted to be incurred
under this Loan Agreement), (ii) amend, modify or otherwise change the terms of any Indebtedness (other than the Loans) or
Capital Lease Obligations so as to accelerate the scheduled repayment thereof, (iii) repay any Indebtedness to officers, directors
or shareholders or (iv) make any payment of the Closing Date Earn-Out unless at the time of, and after giving effect to, such payment,
no Default or Event of Default has occurred and is continuing and the Borrower is in compliance on a pro forma basis with the then-applicable
Financial Covenants as of the last date of the most recent four-fiscal quarter period for which Financial Statements have been
delivered or were required to be delivered pursuant to Section 6.01(a) or (b).

 

Section 7.09.            
Accounts. The Loan Parties shall not maintain any deposit accounts or securities accounts except accounts with
respect to which, concurrently with the establishment thereof, Agent has obtained a control agreement with the bank or other financial
institution sufficient to perfect a security interest in such deposit accounts or securities accounts; provided, however, that
this Section 7.09 shall not apply to Excluded Accounts.

 

Section 7.10.            
Swap Agreements. The Loan Parties and their respective Subsidiaries (other than Affiliated Entities and Project
Specific JVs) shall not enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which
the Loan Parties or any of their respective Subsidiaries (other than Affiliated Entities) has actual exposure (other than those
in respect of Equity Securities), (b) Excluded Swap Obligations and (c) Swap Agreements entered into to effectively cap, collar
or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect
to any interest-bearing liability or investment of the Loan Parties or any of their respective Subsidiaries (other than Affiliated
Entities), in each case, for bona fide hedging purposes and not for speculation.

 

Section 7.11.            
Changes in Fiscal Periods or Accounting Policies. No Loan Party shall permit (i) the fiscal year of such Loan
Party or any of its Subsidiaries (other than Affiliated Entities and Project Specific JVs) to end on a day other than December
31 or change the method of determining fiscal quarters or (ii) a change in the accounting policies or methods of such Loan Party
or any of its Subsidiaries (other than Affiliated Entities and Project Specific JVs), except in accordance with GAAP.

 

Section 7.12.            
Lines of Business. No Loan Party or any of its Subsidiaries (other than Affiliated Entities and Project Specific
JVs) shall enter into any business, either directly or through any Subsidiary (other than any Affiliated Entity or Project Specific
JV), except for (i) those businesses in which the Loan Parties and their respective Subsidiaries (other than Affiliated Entities)
are engaged on the date of this Loan Agreement (after giving effect to the Closing Date Acquisition) or that are reasonably related
thereto and (ii) those business acquired pursuant to Permitted Acquisitions to the extent the conditions and requirements set forth
in the definition thereof are satisfied.

 

Section 7.13.            
Amendments to Acquisition Documentation and Subordination Agreement. The Loan Parties and their Subsidiaries
(other than Affiliated Entities and Project Specific JVs) shall not (a) amend, supplement or otherwise modify (pursuant to a waiver
or otherwise) the terms and conditions set forth in the Acquisition Documentation such that after giving effect thereto such terms
and conditions shall be materially less favorable to the interests of the Loan Parties or the Agent or the Lenders with respect
thereto; (b) fail to enforce, in a commercially reasonable manner, the Loan Parties’ or their respective Subsidiaries’
rights (including rights to indemnification) under the Acquisition Documentation or (iii) amend, supplement or otherwise modify
any Subordinated Debt except as expressly permitted by the applicable Subordination Agreement.

 

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Section 7.14.            
Amendments to Organizational Documents. No Loan Party shall amend or permit any amendments to any Loan Party’s
organizational documents without obtaining the prior written consent of the Required Lenders; provided, however, that the Borrower
shall be permitted to amend its organizational documents in a manner that is not materially adverse to the interests of the Agent
or the Lenders.

 

Section 7.15.            
Foreign Assets Control Regulations, Etc. None of the requesting or borrowing of the Loans or the use of the proceeds
of any thereof will violate, or cause any Person to violate, the Trading With the Enemy Act (50 USC §1 et seq., as amended)
(the “Trading With the Enemy Act”), the FCPA or any foreign counterpart thereof, anti-money laundering
laws and regulations, or Sanctions, including but not limited to any of the foreign assets control regulations of the United States
Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) (the “Foreign Assets Control Regulations”)
or any enabling legislation, regulation or executive order relating thereto (including, but not limited to (a) Executive Order
13224 of September 21, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support
Terrorism (66 Fed. Reg. 49079 (2001)) (the “Anti-Terrorism Order”) and (b) the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56)). None of the Borrower
or any of its Subsidiaries or, to the knowledge of a Responsible Officer of the Loan Parties and their Subsidiaries after due and
diligent inquiry, other Affiliates, is or will become Sanctioned Person or a “blocked person” as described in the Anti-Terrorism
Order, the Trading with the Enemy Act, applicable Sanctions, or the Foreign Assets Control Regulations or engages or will engage
in any dealings or transactions, or be otherwise associated, with any such “blocked person” or Sanctioned Persons..

 

Section 7.16.            
ERISA. No Loan Party or ERISA Affiliate shall cause or, to the extent within the control of the Loan Parties
with respect to Affiliated Entities and Project Specific JVs, permit to exist any ERISA Event.

 

Section 7.17.            
Hazardous Materials. Except to the extent it would not reasonably be expected to have a Material Adverse Effect,
no Loan Party shall, and no Loan Party shall permit any of its Subsidiaries (other than the Affiliated Entities and Project Specific
JVs) to, cause or suffer to exist any release of, or exposure of any Person to, any Hazardous Material at, to or from any real
property owned, leased, subleased or otherwise operated or occupied by any Loan Party or any Subsidiary of any Loan Party that
would violate any Environmental Law, form the basis for any liabilities under Environmental Law or otherwise adversely affect the
value or marketability of any real property (whether or not owned by any Loan Party or any Subsidiary of any Loan Party).

 

Section 7.18.            
Bonding Arrangements. Tealstone Residential shall not enter into or become subject to any suretyship or bonding
arrangements.

 

Section 7.19.            
RHB Inc. Equity. Borrower shall not cause the Equity Securities of RHB Inc. to become certificated at any time
during the term of this Loan Agreement; provided, however, that in the event RHB Inc. issues any stock certificates representing
the Equity Securities of RHB Inc. owned by Borrower, Borrower shall pledge and deliver such original stock certificate(s) to the
Agent, together with an undated stock power for each such certificate(s) executed in blank by a duly authorized officer of Borrower,
within two (2) Business Days of the issuance of such stock certificate.

 

Section 7.20.            
Affiliated Entities; Minority Subsidiaries; Project Specific JVs. Notwithstanding anything to the contrary contained
herein or in any other Loan Document, to the maximum extent that a Loan Party or any Subsidiary has the right or ability under
the organizational documents or any similar document of an Affiliated Entity, Minority Subsidiary or Project Specific JV (that
is not otherwise subject to this Article 7) to restrict such Affiliated Entity, Minority Subsidiary or Project Specific JV from
taking an action (including by way of the approval, disapproval, affirmative vote or consent, waiver or rejection of an action
contemplated to be taken by such an Affiliated Entity, Minority Subsidiary or Project Specific JV) which such Affiliated Entity,
Minority Subsidiary or Project Specific JV would otherwise be restricted from taking under this Article 7 if such Affiliated Entity,
Minority Subsidiary or Project Specific JV were a Loan Party or a Subsidiary hereunder, then such Loan Party or Subsidiary with
such right or ability under the organizational documents or any similar document of such Affiliated Entity, Minority Subsidiary
or Project Specific JV shall restrict such Affiliated Entity, Minority Subsidiary or Project Specific JV from taking such action.

 

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Section 7.21.            
Closing Date Seller Notes. Within five (5) days of the Required Lenders’ request following the acceleration
by the Creditors (as defined in the Closing Date Subordination Agreement) of the Closing Date Seller Notes in accordance with the
terms of the Closing Date Seller Notes (as in effect on the date hereof), the Borrower shall convert the obligations under the
Closing Date Seller Notes into Equity Securities of the Borrower in accordance with the terms of the Closing Date Seller Notes
(as in effect on the date hereof).

 

Article
8.            PRESERVATION OF
COLLATERAL BY AGENT.

 

Should Borrower fail or refuse to make any payment,
perform or observe any other covenant, condition or obligation, or take any other action which Borrower is obligated under any
Loan Document to make, perform, observe, take or do at the time or in the manner provided in any Loan Document, then the Agent,
at the sole and absolute discretion of the Lenders, without notice to or demand upon Borrower and without releasing Borrower from
any obligation, covenant or condition in any Loan Document, may make, perform, observe, take or do the same in such manner and
to such extent as Agent or Lenders may deem necessary to protect its security interest in or the value of the Collateral. In furtherance
of the foregoing rights, Borrower does hereby irrevocably appoint Agent (which appointment is coupled with an interest), the true
and lawful attorney-in-fact of Borrower with full power of substitution, for it and in its name (i) to perform (but Agent
shall not be obligated to and shall incur no liability to Borrower or any third party for failure to perform) any act which Borrower
is obligated by this Loan Agreement to perform, (ii) to ask, demand, collect, receive, receipt for, and sue for any and all
rents, issues, profits, avails, distributions, income, payment draws and other sums in which a security interest is granted under
Section 3.01 with full power to settle, adjust or compromise any claim thereunder as fully as if Agent were Borrower itself,
(iii) to receive payment of and to endorse the name of Borrower to any items of Collateral (including checks, drafts and other
orders for the payment of money) that come into Agent’s possession or under Agent’s control, (iv) to make all
demands, consents and waivers, or take any other action with respect to, the Collateral, (v) in Agent ‘s discretion,
to file any claim or take any other action or institute proceedings, either in its own name or in the name of Borrower or otherwise,
which Agent may reasonably deem necessary or appropriate to protect and preserve the right, title and interest of Agent in and
to the Collateral, and (vi) to otherwise act with respect thereto as though Agent were the outright owner of the Collateral;
provided, however, that the power of attorney herein granted shall be exercisable only upon the occurrence and during
the continuation of an Event of Default. Borrower agrees to reimburse Agent and Lenders upon demand for all reasonable costs and
expenses, including attorneys’ fees and expenses, which Agent or Lenders may incur while Agent is acting as Borrower’s
attorney in fact or otherwise under this Article 8, all of which costs and expenses are included within the Obligations.

 

Article
9.            EVENTS OF DEFAULT.

 

Section 9.01.           Events of Default. The occurrence of any of the following shall constitute an “Event of Default”
under the Transaction Documents:

 

		(a)	Failure to Pay. Borrower or any other Loan Party shall fail to pay (i) any principal on
any of the Obligations owing hereunder or under any other Transaction Document when due, whether upon demand or otherwise, and
(ii) the interest or other payment or premium on any of the Obligations (including, without limitation, any Prepayment Premium)
or any fee, expense or other amount owing under the terms of this Loan Agreement or any other Transaction Document on the date
due and in the case of this clause (ii), such payment shall not have been made within five (5) Business Days of the due date; or
	 	 	 

		(b)	Breaches of Other Covenants. Any Loan Party or any of its Subsidiaries shall fail to perform
or observe (i) any of the covenants or agreements contained in Sections 6.01, 6.02(c), 6.02(h), 6.03, 6.04 (other than
with respect to the second to the last sentence of 6.04 relating to delivery of renewal certificates), 6.05, 6.10, 6.11, 6.12,
6.16 or 6.17 or Article 7 hereof or (ii) any other covenant, or agreement contained in any Transaction Document (other
than the other Events of Default specified in this Article 9) and such failure remains unremedied for ten (10) days from the
earlier of (i) the delivery of written notice thereof by the Agent or the Required Lenders to the Borrower or (ii) the date on
which such failure shall first become actually known to any Responsible Officer of a Loan Party or any of its Subsidiaries; or
	 	 	 
	

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		(c)	Representations and Warranties. Any representation, warranty, certificate, or other statement
(financial or otherwise) made or furnished by or on behalf of any Loan Parties or any of its Subsidiaries (including by any Responsible
Officer) to Agent in writing in connection with this Loan Agreement or any of the other Transaction Documents, or as an inducement
to Agent or Lenders to enter into the Transaction Documents, shall be false or misleading in any material respect when made or
furnished; or
	 	 	 

		(d)	Other Payment Obligations. Any Loan Party or any of its Subsidiaries shall (i) fail
to make any payment when due under the terms of any Material Indebtedness to be paid by such Person (excluding this Loan Agreement
and the other Transaction Documents but including any other Indebtedness of any Loan Party to Agent or any Lender) and such failure
shall continue beyond any period of grace provided with respect thereto, or (ii) shall default in the observance or performance
of any other agreement, term or condition contained in any such Material Indebtedness, and the effect of such failure or default
under (i) or (ii) above is to cause, or permit the holder or holders thereof to cause, any Material Indebtedness to become due
prior to its stated date of maturity; or
	 	 	 

		(e)	Voluntary Bankruptcy or Insolvency Proceedings. Any Loan Party or any of its Subsidiaries
shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a
substantial part of its property, (ii) be unable, or admit in writing its inability, to pay its debts generally as they mature,
(iii) make a general assignment for the benefit of its or any of its creditors, (iv) be dissolved or liquidated in full
or in part, (v) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect
to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such
relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding
commenced against it, or (vi) take any action for the purpose of affecting any of the foregoing; or
	 	 	 

		(f)	Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver,
trustee, liquidator or custodian of any Loan Party or any of its Subsidiaries or of all or a substantial part of the property thereof,
or an involuntary case or other proceeding seeking liquidation, reorganization or other relief with respect to any Loan Party or
any of its Subsidiaries or the debts thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall
be commenced and an order for relief entered or such proceeding shall not be dismissed, stayed or discharged within forty-five
(45) days of commencement; or
	 	 	 

		(g)	Judgments. A final judgment or order for the payment of money in excess of One Million Dollars
($1,000,000) (that is not covered by insurance) shall be rendered against any Loan Party or any of its Subsidiaries and the same
shall remain undischarged for a period of thirty (30) days during which execution shall not be effectively stayed, or any judgment,
writ, assessment, warrant of attachment, or execution or similar process shall be issued or levied against a substantial part of
the property of any Loan Party or any of its Subsidiaries and such judgment, writ, or similar process shall not be released, stayed,
vacated or otherwise dismissed within thirty (30) days after issue or levy; or
	 	 	 

		(h)	Transaction Documents. Any Transaction Document or any material term thereof shall cease
to be, or be asserted by any Loan Party or any of its Subsidiaries not to be, a legal, valid and binding obligation of such Loan
Party enforceable in accordance with its terms or if, after a Lender has properly filed financing statements and obtained control
agreements, the Liens of Agent in the Collateral shall cease to be or shall not be valid, perfected Liens subject only to Permitted
Liens and the terms of any subordination or intercreditor agreements entered into by Lenders or any Loan Party shall assert that
such Liens are not valid, perfected Liens; or
	 	 	 
	

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		(i)	Registration Statement. A breach of Section 2(a) of the Registration Rights Agreement shall
have occurred; or
	 	 	 

		(j)	ERISA Event. An ERISA Event shall occur that results in, or is reasonably expected to result
in, liability, individually or in the aggregate with other ERISA Events, to a Loan Party or ERISA Affiliate in an amount in excess
of One Million Dollars ($1,000,000); or
	 	 	 

		(k)	Bonding Arrangements. Any bond issued by any surety or bonding company, including, without
limitation, Travelers Casualty and Surety Company of America, on behalf of any Loan Party or any of its Subsidiaries is called
or declared to be in default and such surety or bonding company is required to perform or pay all or any portion of the obligations
under the underlying contract or project for which such bond was posted; or
	 	 	 

		(l)	Keyman. At any time the aggregate principal amount of outstanding Term Loans exceed $40,000,000:
	 	 	 

		(i)	Paul J. Varello shall cease to be engaged in the role (or a similar role) in which he is engaged
as of the Closing Date at any Loan Party or any of its Subsidiaries at any time on or before March 9, 2018; provided that, to the
extent Paul J. Varello continues to be a member of the board of directors of the Borrower, such an event shall not constitute an
Event of Default hereunder;
	 	 	 

		(ii)	any Specified Keyman shall cease to be engaged in the role (or a similar role) in which he is engaged
as of the Closing Date at any Loan Party or any of its Subsidiaries at any time on or before the third anniversary of the Closing
Date; provided that, to the extent the Borrower delivers a written notice to Agent and the Lenders within 30 days of any such event
outlining a plan and timeline to replace such Specified Keyman that is satisfactory to the Lenders in their sole discretion, such
an event shall not constitute an Event of Default hereunder; provided further, that any replacement of any such Specified Keyman
shall be acceptable to the Lenders in their sole discretion; or
	 	 	 

		(m)	Subordinated Debt. Any document, instrument, or agreement evidencing any Subordinated Debt
shall for any reason be revoked or invalidated or otherwise cease to be in full force and effect, any Person shall be in breach
thereof or contest in any manner the validity or enforceability thereof or deny that it has any further liability or obligation
thereunder, or the Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Loan Agreement
or the Subordination Agreement; or
	 	 	 

		(n)	Change of Control. A Change of Control occurs.

 

Article
10.         AGENT

 

Section 10.01.        
Rights of Agent upon Default. Upon the occurrence and during the existence of any Event of Default (other than
an Event of Default referred to in Sections 9.01(e) and 9.01(f)) and at any time thereafter during the continuance of such
Event of Default, Agent (at the direction of Required Lenders) shall, without demand or notice to any Loan Party, declare all outstanding
Obligations, including, without limitation, the noncancelable obligation to make each payment scheduled to be made under Section 2.02
(including, without limitation, any Prepayment Premium), payable by Borrower or any other Loan Party hereunder to be immediately
due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived,
anything contained herein or in the Notes to the contrary notwithstanding. Upon the occurrence or existence of any Event of Default
described in Sections 9.01(e) and 9.01(f), immediately and without demand or notice, all outstanding Obligations, including,
without limitation, the noncancelable obligation to make each payment scheduled to be made under Section 2.02 (including,
without limitation, any Prepayment Premium), payable by Borrower hereunder shall automatically become immediately due and payable,
without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything contained
herein or in the Notes to the contrary notwithstanding.

 

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Section 10.02.        
Rights Regarding Collateral. Borrower agrees that when any Event of Default has occurred and is continuing, Lenders,
or Agent on behalf of Lenders, shall have the rights, options, duties and remedies of a secured party as permitted by law and,
in addition to and without limiting the foregoing, Lenders or Agent may, at the election of Lenders, exercise any one or more or
all, and in any order, of the remedies herein set forth, including the following: (i) Agent or Lenders, personally or by agents
or attorneys, shall have the right (subject to compliance with any applicable mandatory legal requirements) to require Borrower
to assemble the Collateral and make it available to Agent at a place to be designated by Agent in New York or to take immediate
possession of the Collateral, or any portion thereof, and for that purpose may pursue the same wherever it may be found, and may
enter any premises of Borrower, with or without notice, demand, process of law or legal procedure, to the extent permitted by applicable
law, and search for, take possession of, remove, keep and store the same, or use and operate or lease the same until sold; (ii) Agent
or Lenders may, if at the time such action may be lawful and always subject to compliance with any mandatory legal requirements,
either with or without taking possession and either before or after taking possession, without instituting any legal proceedings
whatsoever, having first given notice of such sale by registered or certified mail to Borrower once at least ten (10) days prior
to the date of such sale, and having first given any other notice which may be required by law, sell and dispose of the Collateral,
or any part thereof, at a private sale or at public auction, to the highest bidder, in one lot as an entirety or in separate lots,
and either for cash or on credit and on such terms as Lenders may determine, and at any place (whether or not it be the location
of the Collateral or any part thereof) designated in the notice referred to above. Agent and its agents and any purchasers at or
after foreclosure are hereby granted a non-exclusive, irrevocable, perpetual, fully paid, royalty-free license or other right,
solely pursuant to the provisions of this Section 10.02, to use, without charge, each Loan Party’s Intellectual Property
that remains embedded or contained in the Collateral, including without limitation, labels, Patents, Copyrights, Trademarks, or
any property of a similar nature, now or at any time hereafter owned or acquired by any Loan Party or in which such Loan Party
now or at any time hereafter has any rights; provided, however, such license shall only be exercisable in connection
with the disposition of Collateral upon Agent’s or Lenders’ exercise of their remedies hereunder. To the extent permitted
by applicable law, any such sale or sales may be adjourned from time to time by announcement at the time and place appointed for
such sale or sales, or for any such adjourned sale or sales, without further published notice, and Borrower, Agent, Lenders, or
the holder or holders of a Note, or of any interest therein, may bid and become the purchaser at any such sale; and (iii) Agent
or Lenders may proceed to protect and enforce this Loan Agreement and the other Loan Documents by suit or suits or proceedings
in equity, at law or in bankruptcy, and whether for the specific performance of any covenant or agreement herein contained or in
execution or aid of any power herein granted; or for foreclosure hereunder, or for the appointment of a receiver or receivers for
any real property security or any part thereof, or for the recovery of judgment for the Obligations or for the enforcement of any
other proper, legal or equitable remedy available under applicable law. With respect to any of Borrower’s owned premises,
Borrower hereby grants Agent a license to enter into possession of such premises and to occupy the same, without charge, for up
to one hundred twenty (120) days in order to exercise any of Agent’s or Lenders’ rights or remedies provided herein,
at law, in equity, or otherwise.

 

Section 10.03.        
Agent’s Liability for Collateral. So long as Agent complies with its obligations, if any, under the Code,
neither Agent nor Lenders shall in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral;
(ii) any loss or damage thereto occurring or arising in any manner or fashion from any cause other than Agent’s or such
Lender’s gross negligence or willful misconduct; (iii) any diminution in the value thereof; or (iv) any act or
default of any carrier, warehouseman, bailee, forwarding agency, or other Person whomsoever. All risk of loss, damage or destruction
of the Collateral shall be borne by Loan Parties.

 

Section 10.04.        
Application of Collateral Proceeds. The proceeds of the Collateral, or any part thereof, resulting from Agent’s
or Lenders’ exercise of remedies hereunder (as well as any other amounts of any kind held by Agent at the time of, or received
by Agent after, the occurrence and during the continuance of, an Event of Default hereunder) shall be paid to and applied as follows:
(i) First, to the payment of reasonable costs and expenses, including all amounts expended to preserve the value of
the Collateral, of foreclosure or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all proper
fees, expenses, indemnities, liability and advances, including reasonable legal expenses and attorneys’ fees, incurred or
made hereunder by, or owing to, Agent or Lenders; (ii) Second, to the payment to Lenders pro rata in accordance with
the Loan Percentages of the amounts then owing or unpaid on the Notes, including each payment scheduled to be made under Sections 2.02(c),
2.02(d) and 2.02(e); (iii) Third, to the payment of other amounts then payable to Agent or Lenders under any of the
Transaction Documents; and (iv) Fourth, to the payment of the surplus, if any, to the applicable Loan Party, its successors
and assigns, or to whomsoever may be lawfully entitled to receive the same. In the event that, notwithstanding the foregoing, proceeds
of the Collateral, shall be received by a Lender in excess of its ratable share, then the portion of such payment or distribution
in excess of such Lender’s ratable share shall be received by such Lender in trust for and shall be promptly paid over to
the other Lenders ratably for application to the payments of amounts due to the other Lenders. For the avoidance of doubt, notwithstanding
any other provision of any Loan Document, no amount received directly or indirectly from any Loan Party that is not a Qualified
ECP Guarantor shall be applied directly or indirectly by the Agent or otherwise to the payment of any Excluded Swap Obligations
and Obligations arising under secured cash management agreements and secured Swap Obligations shall be excluded from the application
described above in clauses (i) - (iv) if the Agent has not received written notice thereof, together with such supporting documentation
from the applicable bank product provider of such cash management agreements or Swap Obligations, as the case may be, as may be
reasonably necessary to determine the amount of the Obligations owed thereunder.

 

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Section 10.05.        
Reinstatement of Rights. If Agent or any Lender shall have proceeded to enforce any right under this Loan Agreement
or any other Transaction Document by foreclosure, sale, entry or otherwise, and such proceedings shall have been discontinued or
abandoned for any reason or shall have been determined adversely, then and in every such case (unless otherwise ordered by a court
of competent jurisdiction), Agent and each Lender shall be restored to its former position and its rights hereunder with respect
to the property subject to the security interest created under this Loan Agreement shall be reinstated.

 

Section 10.06.        
Agency for Perfection. Each Lender hereby appoints Agent and each other Lender as agent and bailee for the purpose
of perfecting the security interests in and Liens upon the Collateral which, in accordance with the Code, can be perfected only
by possession or control (or where the security interest of a secured party with possession or control has priority over the security
interest of another secured party), and Agent and each Lender hereby acknowledges that it holds possession or control of any such
Collateral for the benefit of the Agent as secured party. Should any Lender obtain possession or control of any such Collateral,
such Lender shall notify the Agent thereof, and, promptly upon the Agent’s request therefor shall deliver possession or control
of such Collateral to the Agent or in accordance with the Agent’s instructions. Borrower by its execution and delivery of
this Loan Agreement hereby consents to the foregoing.

 

Section 10.07.        
Appointment Powers and Immunities. Each Lender irrevocably designates, appoints and authorizes Wilmington Trust,
National Association to act as Agent hereunder and under the other Loan Documents with such powers as are specifically delegated
to Agent by the terms of this Loan Agreement and of the other Loan Documents, together with such other powers as are reasonably
incidental thereto. Agent (a) shall have no duties or responsibilities except those expressly set forth in this Loan Agreement
and in the other Loan Documents, and shall not by reason of this Loan Agreement or any other Loan Document be a trustee or fiduciary
for any Lender; provided, however, that Agent hereby appoints, authorizes and directs each Lender to act as collateral
sub-agent for Agent and the Lenders for purposes of the perfection of all Liens with respect to the Collateral, including any Deposit
Account maintained by a Loan Party with, and cash and cash equivalents held by, such Lender, and may further authorize and direct
the Lenders to take further actions as collateral sub-agents for purposes of enforcing such Liens or otherwise to transfer the
Collateral subject thereto to Agent, and each Lender hereby agrees to take such further actions to the extent, and only to the
extent, so authorized and directed; (b) shall not be responsible to Lenders for, or have any duty to inquire into, any recitals,
statements, representations or warranties contained in this Loan Agreement or in any of the other Loan Documents, or in any certificate
or other document referred to or provided for in, or received by any of them under, this Loan Agreement or any other Loan Document,
or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Loan Agreement or any other Loan
Document or any other document referred to or provided for herein or therein or for any failure by the Borrower or any Guarantor
or any other Person to perform any of its obligations, covenants, agreements or other terms or conditions set forth hereunder or
thereunder; (c) shall not be responsible for any action taken or omitted to be taken by it hereunder or under any other Loan Document
or under any other document or instrument referred to or provided for herein or therein or in connection herewith or therewith,
except for its own gross negligence or willful misconduct (each as determined in a final, non-appealable judgment by a court of
competent jurisdiction); and (d) shall not be responsible or have any duty to ascertain or inquire into the satisfaction of any
condition set forth in Section 4.01 hereof or elsewhere herein or in any other Loan Document. The Agent shall not be required to
risk or expend its own funds in performing its obligations hereunder or under any other Loan Document. For the avoidance of doubt
and notwithstanding anything in this Loan Agreement to the contrary, the Agent shall not have any responsibility or obligation
to file any financing statements or continuation statements related hereto. No provision of this Loan Agreement or any other Loan
Document shall be deemed to impose any duty on the Agent to take any action if such action would expose it to personal liability,
is contrary to the terms hereof or is contrary to applicable law. The Agent shall not be responsible or liable for delays or failures
in performance resulting from acts beyond its control. Such acts shall include acts of God, strikes, lockouts, riots, acts of war,
epidemics, governmental regulations superimposed after the fact, fire, communication line failures, computer viruses, power failures,
earthquakes or other disasters. The Agent shall not have any liability for losses arising from (i) any cause beyond its control,
(ii) any delay, error, omission or default of any mail, telegraph, cable or wireless agency or operator or (iii) the acts or edicts
of any government or governmental agency or other group or entity exercising governmental powers. Agent may employ agents and attorneys
in fact and shall not be responsible for any act, omission, negligence or misconduct of any such agents or attorneys in fact selected
by it in good faith. Agent may deem and treat the payee of any Note as the holder thereof for all purposes hereof unless and until
the assignment thereof pursuant to an agreement (if and to the extent permitted herein) in form and substance reasonably satisfactory
to Agent shall have been delivered to and acknowledged by Agent. The provisions of this Article 10 are solely for the benefit
of the Agent and its successors and assigns and no Loan Party nor any other Person shall have any rights as a third party beneficiary
of any of the provisions hereof.

 

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Section 10.08.        
Reliance by Agent. Agent shall be entitled to rely upon any certification, notice, document or other communication
(including any thereof by telephone, telecopy, telex, telegram or cable) believed by it to be genuine and correct and to have been
signed or sent by or on behalf of the proper Person or Persons, and upon the advice and statements of legal counsel, independent
accountants and other experts selected by Agent. Agent may consult with legal counsel (who may be counsel for the Borrower), independent
accountants, and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with
the advice of any such counsel, accountants or experts. As to any matters not expressly provided for by this Loan Agreement or
any other Loan Document, Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder
in accordance with instructions given by the Required Lenders or all of Lenders as is required in such circumstance, and such instructions
of such Agents and any action taken or failure to act pursuant thereto, shall be binding on all Lenders. Notwithstanding anything
else to the contrary herein, whenever reference is made in this Loan Agreement or any other Loan Document, to any discretionary
action by, consent, designation, specification, requirement or approval of, notice, request or other communication from, or other
direction given or action to be undertaken or to be (or not to be) suffered or omitted by the Agent or to any election, decision,
opinion, acceptance, use of judgment, expression of satisfaction or other exercise of discretion, rights or remedies to be made
(or not to be made) by the Agent, it is understood that in all cases the Agent shall be fully justified in failing or refusing
to take any such action if it shall not have received written instruction, advice or concurrence from the Required Lenders (or
such other number or percentage of the Lenders as shall be expressly provided for herein or in any other Loan Document) in respect
of such action. The Agent shall have no liability for any failure or delay in taking any actions contemplated above as a result
of a failure or delay on the part of the Required Lenders to provide such instruction, advice or concurrence.

 

Section 10.09.        
Events of Default.

 

(a)                
Agent shall not be deemed to have knowledge or notice of, or be required to act upon (including the sending of any
notice related thereto), the occurrence of a Default or an Event of Default or other failure of a condition precedent to the Loans
hereunder, unless and until Agent has received written notice from a Lender, or the Borrower specifying such Event of Default or
any unfulfilled condition precedent, and stating that such notice is a “Notice of Default or Failure of Condition”.
In the event that Agent receives such a Notice of Default or Failure of Condition, Agent shall give prompt notice thereof to the
Lenders. Agent shall (subject to Section 10.12) take such action with respect to any such Event of Default or failure of condition
precedent as shall be directed by the Required Lenders to the extent provided for herein; provided, that, unless and until
Agent shall have received such directions, Agent may (but shall not be obligated to) take such action, or refrain from taking such
action, with respect to or by reason of such Event of Default or failure of condition precedent, as it shall deem advisable in
the best interest of Lenders.

 

(b)                
Except with the prior written consent of Agent, no Lender (other than Oaktree or any of its Affiliates) may assert
or exercise any enforcement right or remedy in respect of the Loans or other Obligations, as against any Loan Party or any of the
Collateral or other property of any Loan Party.

 

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Section 10.10.        
Indemnification. Lenders agree to indemnify Agent (to the extent not reimbursed by the Borrower hereunder and
without limiting any obligations of the Borrower hereunder), and its officers, directors, agents, employees, advisors and counsel
and their respective Affiliates (each such Person being an “Agent Indemnitee”) ratably, in accordance
with their Loan Percentages, for any and all losses, claims, damages, liabilities, costs and expenses (including attorneys’
fees and expenses) of any kind and nature whatsoever that may be imposed on, incurred by or asserted against any Agent Indemnitee
(including by any Lender) arising out of, or by reason of any investigation in, or in any way relating to or arising out of this
Loan Agreement or any other Transaction Document or any other documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby (including the costs and expenses that Agent is obligated to pay hereunder) or the
enforcement of any of the terms hereof or thereof or of any such other documents; provided, that, no Lender shall be liable
for any of the foregoing to the extent it arises from the gross negligence or willful misconduct of the party to be indemnified
as determined by a final non-appealable judgment of a court of competent jurisdiction. All amounts due under this Section 10.10
shall be payable on demand. The foregoing indemnity shall survive the resignation or replacement of Agent or any assignment of
rights by, or the replacement of, a Lender, or the repayment, satisfaction or discharge of the Obligations and the termination
of this Loan Agreement.

 

Section 10.11.        
Non-Reliance on Agent and Other Lenders. Each Lender agrees that it has, independently and without reliance on
Agent or other Lender, and based on such documents and information as it has deemed appropriate, made its own credit analysis of
the Loan Parties and has made its own decision to enter into this Loan Agreement and that it will, independently and without reliance
upon Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue
to make its own analysis and decisions in taking or not taking action under this Loan Agreement or any of the other Loan Documents.
Agent shall not be required to keep itself informed as to the performance or observance by any Loan Party of any term or provision
of this Loan Agreement or any of the other Loan Documents or any other document referred to or provided for herein or therein or
to inspect the properties or Books of any Loan Party. Agent will use commercially reasonable efforts to provide Lenders with any
information received by Agent from any Loan Party, which is required to be provided to Lenders hereunder or under the other Loan
Documents and with a copy of any Notice of Default or Failure of Condition received by Agent from the Borrower or any Lender; provided,
that, Agent shall not be liable to any Lender for any failure to do so, except to the extent that such failure is attributable
to Agent’s own gross negligence or willful misconduct. Except for notices, reports and other documents expressly required
to be furnished to Lenders by Agent pursuant to the terms of this Loan Agreement or the other Loan Documents or requested by Lenders
hereunder or thereunder, Agent shall not have any duty or responsibility to provide any Lender with any other credit or other information
concerning the affairs, financial condition or business of any Loan Party that may come into the possession of Agent.

 

Section 10.12.        
Failure to Act. Except for any action expressly required of Agent hereunder and under the other Loan Documents,
Agent shall in all cases be fully justified in failing or refusing to act hereunder and thereunder; provided that the foregoing
shall not prevent Agent from requiring further assurances from the Lenders, satisfactory to Agent in its sole discretion, of their
indemnification obligations under Section 10.10 hereof against any and all liability and expenses that may be incurred by it by
reason of taking or continuing to take any such action.

 

Section 10.13.        
Successor Agent. Agent may resign as Agent upon thirty (30) days’ (or such lesser time period as agreed
to by the Required Lenders and Agent) notice to Lenders and the Borrower or may be replaced as the Agent by the Lenders at the
direction of the Required Lenders upon five (5) days’ (or such lesser time period as agreed to by the Required Lenders and
Agent) prior written notice to the Agent, the other Lenders and the Borrower. If Agent resigns or is replaced under this Loan Agreement,
the Required Lenders shall appoint a successor agent for Lenders whereupon such successor agent shall succeed to the rights, powers
and duties of the retiring or replaced Agent, and the term “Agent” as used herein and in the other Loan Documents shall
mean such successor agent, and the retiring or replaced Agent’s appointment, powers and duties as Agent shall be terminated,
without any further act or deed on the part of such former Agent or any of the parties to this Loan Agreement. If no successor
agent is appointed prior to the effective date of the resignation of Agent, Agent may appoint, after consulting with Lenders, a
successor agent from among Lenders. Upon the acceptance by the Lender so selected of its appointment as successor agent hereunder,
such successor agent shall succeed to all of the rights, powers and duties of the retiring Agent and the term “Agent”
as used herein and in the other Loan Documents shall mean such successor agent, and the retiring Agent’s appointment, powers
and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent and Agent’s resignation
hereunder as Agent, the provisions of this Article 10 shall inure to its benefit as to any actions taken or omitted by it while
it was Agent under this Loan Agreement. If no successor agent has accepted appointment as Agent by the date which is thirty (30)
days after the date of a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nonetheless
thereupon become effective and Lenders shall perform all of the duties of Agent hereunder until such time, if any, as the Required
Lenders appoint a successor agent as provided for above.

 

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Section 10.14.        
Other Agent Designation. Oaktree may at any time and from time to time determine that a Lender may, in addition,
be a “Co-Agent”, “Syndication Agent”, “Documentation Agent”, “Agent”, “Control
Agent” or similar designation hereunder and enter into an agreement with such Lender to have it so identified for purposes
of this Loan Agreement. Any such designation shall be effective upon written notice by Agent or Oaktree to the Borrower of any
such designation. Any Lender that is so designated as a Co-Agent, Syndication Agent, Documentation Agent, Control Agent or such
similar designation by Oaktree shall have no right, power, obligation, liability, responsibility or duty under this Loan Agreement
or any of the other Loan Documents other than those applicable to all Lenders as such. Without limiting the foregoing, the Lenders
so identified shall not have or be deemed to have any fiduciary relationship with any Lender and no Lender shall be deemed to have
relied, nor shall any Lender rely, on a Lender so identified as a Co-Agent, Syndication Agent, Documentation Agent, Control Agent
or such similar designation in deciding to enter into this Loan Agreement or in taking or not taking action hereunder.

 

Section 10.15.        
Release of Collateral. Each Lender hereby consents to the release and hereby directs Agent to release (or in
the case of clause (b)(ii) below, release or subordinate) the following:

 

		(a)	any Guarantor if all of the Equity Securities of such Subsidiary owned by any Loan Party is sold
or transferred in a transaction permitted under the Loan Documents (including pursuant to a valid waiver or consent), to the extent
that, after giving effect to such transaction, such Subsidiary would not be required to guaranty any Obligations pursuant to any
Loan Document; and
	 	 	 

		(b)	any Lien held by Agent for the benefit of the Agent and the Lenders against (i) any Collateral
that is sold or otherwise disposed of by a Loan Party in a transaction permitted by the Loan Documents (including pursuant to a
valid waiver or consent), (ii) any Collateral subject to a Lien that is expressly permitted under clause (v) or (vi) of the definition
of the term "Permitted Lien" and (iii) all of the Collateral and all Loan Parties, upon (A) payment in full in cash of
all of the Obligations that Agent has theretofore been notified in writing by the holder of such Obligation are then due and payable
and (B) receipt by Agent and Lenders of liability releases from the Loan Parties in form and substance acceptable to Agent (acting
at the direction of the Required Lenders).

 

Upon request by the Agent at any time, the Required Lenders will
confirm the Agent's authority to release its interest in any particular item of Collateral pursuant to this Section 10.15.

 

Section 10.16.        
Setoff and Sharing of Payments. In addition to any rights now or hereafter granted under any applicable Requirements
of Law and not by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default,
each Lender is hereby authorized at any time without notice to any Loan Party or any other Person, any such notice being hereby
expressly waived, to setoff and to appropriate and to apply any and all balances held by it at any of its offices for the account
of the Loan Parties (regardless of whether such balances are then due to the Loan Parties) and any other properties or assets at
any time held or owing by that Lender or that holder to or for the credit or for the account of any Loan Party against and on account
of any of the Obligations that are not paid when due. Any Lender exercising a right of setoff or otherwise receiving any payment
on account of the Obligations in excess of its pro rata share thereof shall purchase for cash (and the other Lenders or holders
shall sell) such participations in each such other Lender's or holder's pro rata share of the Obligations as would be necessary
to cause such Lender to share the amount so offset or otherwise received with each other Lender or holder in accordance with their
respective pro rata shares of the Obligations. Each Loan Party agrees, to the fullest extent permitted by law, that (a) any Lender
may exercise its right to offset with respect to amounts in excess of its pro rata share of the Obligations and may purchase participations
in accordance with the preceding sentence and (b) any Lender so purchasing a participation in the Term Loan made or other Obligations
held by other Lenders or holders may exercise all rights of offset, bankers' lien, counterclaim or similar rights with respect
to such participation as fully as if such Lender or holder were a direct holder of the Term Loan and the other Obligations in the
amount of such participation. Notwithstanding the foregoing, if all or any portion of the offset amount or payment otherwise received
is thereafter recovered from the Lender that has exercised the right of offset, the purchase of participations by that Lender shall
be rescinded and the purchase price restored without interest.

 

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Section 10.17.        
Proof of Claims. Lenders hereby agree that after the occurrence of an Event of Default pursuant to Section 9.01(e)
or (f) in case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition, or other judicial proceeding relative to Lenders, Agent (irrespective of whether the principal amount of the Loans
shall be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Agent shall have made any
demand on Lenders) shall be entitled and empowered, by intervention in such proceeding or otherwise:

 

		(a)	to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect
of the Loans and any other Obligations that are owing and unpaid and to file such other papers or documents as may be necessary
or advisable in order to have the claims of Lenders and Agent (including any claim for the reasonable compensation, expenses, disbursements
and advances of Lenders, Agent, and their agents and counsel and all other amounts due Lenders and Agent) allowed in such judicial
proceeding;
	 	 	 

		(b)	to collect and receive any moneys or other property payable or deliverable on any such claims and
to distribute the same; and
	 	 	 

		(c)	any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to Agent and, in the event that Agent
shall consent to the making of such payments directly to Lenders, to pay to Agent any amount due for the compensation, expenses,
disbursements and advances of the Agent and their agents and counsel, and any other amounts due to Agent.

 

Nothing herein contained shall be deemed to authorize Agent to authorize
or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting
the Obligations or the rights of any Lender or to authorize Agent to vote in respect of the claim of any Lender in any such proceeding.
Further, nothing contained in this Section 10.17 shall affect or preclude the ability of any Lender to (i) file and prove such
a claim in the event that Agent has not acted within ten (10) days prior to any applicable bar date and (ii) require an amendment
of the proof of claim to accurately reflect such Lender's outstanding Obligations.

 

Article
11.         MISCELLANEOUS.

 

Section 11.01.        
Modifications, Amendments or Waivers.

 

		(a)	No amendment or waiver of any provision of any Loan Document, and no consent with respect to any
departure by any Loan Party therefrom, shall be effective unless the same shall be in writing and signed by Agent, the Required
Lenders (or by Agent with the consent of Required Lenders) and Borrower; provided that no such amendment, waiver or consent shall,
unless in writing and signed by all Lenders directly affected thereby (or by Agent with the consent of all Lenders directly affected
thereby), in addition to Agent, Required Lenders (or by Agent with the consent of Required Lenders) and Borrower, do any of the
following: (i) increase or decrease the amount of, or extend the term of, any Loan commitment (which shall be deemed to affect
all Lenders), (ii) reduce the principal of or rate of interest on (other than waiving the imposition of the Default Rate) any Term
Loan or reduce the amount of any fees payable under any Loan Document, (iii) postpone the date fixed for or reduce or waive any
scheduled installment of principal or any payment of interest or fees due to any Lender under the Loan Documents, (iv) release
or subordinate the Lien on all or substantially all of the Collateral, or consent to a transfer of all or substantially all of
the Collateral (which shall be deemed to affect all Lenders), (v) release a Loan Party from, or consent to a Loan Party's assignment
or delegation of, such Loan Party's obligations under the Loan Documents (which shall be deemed to affect all Lenders), except
as otherwise may be provided in any Loan Document, (vi) amend, modify, terminate or waive Section 10.16 or any other provision
providing for the pro rata sharing of payments or Section 11.01(a), or (vii) amend or modify the definition of “Required
Lenders” or any provision providing for the consent or other action by all Lenders.
	 	 	 
	

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		(b)	Notwithstanding any provision in this Section 11.01 to the contrary, (i) no amendment, modification,
termination or waiver affecting or modifying the rights or obligations of Agent under any Loan Document shall be effective unless
signed by Borrower, Agent and the Required Lenders, (ii) Agent may amend Schedule 2 to reflect assignments permitted hereunder,
and (iii) Agent (acting at the direction of the Required Lenders) and Borrower may amend or modify any Loan Document to (A) grant
a new Lien, extend an existing Lien over additional property or assets or join additional Persons as Loan Parties, in each case
for the benefit of the Agent and the Lenders and (B) correct any obvious mistake, error or omission.

 

Section 11.02.        
No Implied Waivers; Cumulative Remedies; Writing Required. No delay or failure of Agent or any Lender in exercising
any right, power or remedy hereunder shall affect or operate as a waiver thereof; nor shall any single or partial exercise thereof
or any abandonment or discontinuance of steps to enforce such a right, power or remedy preclude any further exercise thereof or
of any other right, power or remedy. The rights and remedies hereunder of Agent and the Lenders are cumulative and not exclusive
of any rights or remedies which they would otherwise have. Any waiver, permit, consent or approval of any kind or character on
the part of Agent or any Lender of any breach or default under this Loan Agreement or any such waiver of any provision or condition
of this Loan Agreement must be in writing and shall be effective only in the specified instance and to the extent specifically
set forth in such writing.

 

Section 11.03.        
Reimbursement. Borrower shall reimburse Agent and the Lenders for all costs and expenses, filing fees and taxes
paid or payable, including without limitation, reasonable attorneys’ fees and disbursements expended or incurred in any arbitration,
mediation, judicial reference, legal action or otherwise, in connection with (i) the preparation, negotiation, documentation,
execution and delivery of this Loan Agreement, the other Transaction Documents and the transactions contemplated hereby, (ii) the
amendment and enforcement of the Transaction Documents, including, without limitation, during any workout, attempted workout and/or
in connection with the rendering of legal advice as to Agent’s or Lenders’ rights, remedies and obligations under the
Transaction Documents, (iii) enforcing the Transaction Documents or collecting any sum which becomes due Agent or Lender under
any Transaction Document, (iv) any proceeding for declaratory relief, any counterclaim to any proceeding, or any appeal, or
(v) the protection, preservation or enforcement of any rights of Agent or Lenders, including, without limitation, in each
case: (a) all costs and expenses of filing or recording (including Uniform Commercial Code financing statement filing taxes and
fees, documentary taxes, and intangibles taxes and fees, if applicable); (b) costs and expenses and fees for insurance premiums,
environmental audits, title insurance premiums, surveys, assessments, engineering reports and inspections, appraisal fees and search
fees, background checks, costs and expenses of remitting loan proceeds, collecting checks and other items of payment, and establishing
and maintaining any deposit account subject to an account control agreement, together with Agent’s and the Lenders’
customary charges and fees with respect thereto; (c) costs and expenses of preserving and protecting the Collateral; (d) costs
and expenses paid or incurred in connection with obtaining payment of the Obligations, enforcing the security interests and Liens
of Agent and the other Lenders, selling or otherwise realizing upon the Collateral, and otherwise enforcing the provisions of this
Loan Agreement and the other Transaction Documents or defending any claims made or threatened against Agent or any Lender arising
out of the transactions contemplated hereby and thereby (including preparations for and consultations concerning any such matters);
and (e) the fees and disbursements of counsel (including legal assistants) to Agent and the Lenders, including any regulatory,
local or special counsel, in connection with any of the foregoing. For the purpose of this Section 11.03, attorneys’ fees
shall include, without limitation, fees incurred in connection with the following: (1) contempt proceedings; (2) discovery,
(3) any motion, proceeding or other activity of any kind in connection with an insolvency proceeding; (4) garnishment,
levy, and debtor and third party examinations; and (5) post-judgment motions and proceedings of any kind, including, without
limitation, any activity taken to collect or enforce any judgment. All of the foregoing costs and expenses shall be payable by
Borrower upon demand by Agent, and if not paid within thirty (30) days of presentation of invoices shall bear interest at the highest
applicable Default Rate.

 

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Section 11.04.        
Indemnification. Borrower and the Guarantors, jointly and severally, shall indemnify, reimburse and hold Agent
and the Lenders and their permitted assigns, each of Agent’s, Lenders’ or their permitted assigns’ members, and
each of their respective successors, assigns, agents, officers, directors, shareholders, members, servants, agents and employees
(each, an “Indemnified Person” and collectively, the “Indemnified Persons”)
harmless from and against all liabilities, losses, damages, actions, suits, demands, claims of any kind and nature (including claims
relating to environmental liabilities, discharge, cleanup or compliance), all costs and expenses whatsoever to the extent they
may be incurred or suffered by such indemnified party in connection therewith (including reasonable attorneys’ fees and expenses),
fines, penalties (and other charges of applicable governmental authorities), licensing fees relating to any item of Collateral,
damage to or loss of use of property (including consequential or special damages to third parties or damages to Borrower’s
property), or bodily injury to or death of any person (including any agent or employee of Borrower) and whether such claim is asserted
by any Lender, the Borrower, any Guarantor or any other Person (each, a “Claim”), (a) directly or indirectly
relating to or arising out of the Loan Documents or the use of the proceeds of the Loan, including the falsity of any representation
or warranty of Borrower or Borrower’s failure to comply with the terms of this Loan Agreement or any other Transaction Document,
(b) in connection with the enforcement of any Loan Party’s obligations under the Loan Documents (including this Section 11.04)
or (c) arising out of or otherwise involving any violation of, noncompliance with or liability under any Environmental Law or any
actual or alleged presence of Hazardous Materials applicable to the operations of any Loan Party or any of their respective Subsidiaries,
or any property of any Loan Party or their respective Subsidiaries; provided, however, that Borrower shall not indemnify
an Indemnified Person to the extent it is found in a final, non-appealable judgment by a court of competent jurisdiction to have
resulted primarily and directly from (i) the gross negligence or willful misconduct of such Indemnified Person or (ii) any liability
of such Indemnified Person owing to any other Indemnified Person caused solely by the actions of the first such Indemnified Person,
which does not involve, result from or relate to, directly or indirectly, any act or omission by a Loan Party (other than a Claim
against the Agent solely in its capacity as the Agent). Such indemnities shall continue in full force and effect, notwithstanding
the expiration or termination of this Loan Agreement. Upon Agent’s written demand, Borrower shall assume and diligently conduct,
at its sole cost and expense, the entire defense of an Indemnified Person against any indemnified Claim described in this Section 11.04.
Borrower shall not settle or compromise any Claim against or involving an Indemnified Person without first obtaining such Person’s
written consent thereto, which consent shall not be unreasonably withheld. The obligations in this Section 11.04 shall survive
the resignation or replacement of Agent and the payment of all other Obligations until all applicable statute of limitation periods
with respect to actions that may be brought against an Indemnified Person have run. All amounts owing under this Section 11.04
shall be paid within thirty (30) days after written demand. This Section 11.04 shall not apply with respect to Taxes other than
any Taxes that represent Claims arising from any non-Tax Claim.

 

Section 11.05.        
Limitation on Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LOAN AGREEMENT OR ANYWHERE
ELSE, EACH LOAN PARTY AGREES THAT IT SHALL NOT SEEK FROM AGENT OR ANY LENDER UNDER ANY THEORY OF LIABILITY (INCLUDING ANY THEORY
IN TORTS), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING LOST PROFITS) AND REGARDLESS OF THE FORUM OF ACTION.

 

Section 11.06.        
Notices. All notices and other communications given to or made upon any party hereto in connection with this
Loan Agreement shall be in writing and shall be delivered by certified mail, postage prepaid, return receipt requested, by a nationally
recognized overnight courier, by facsimile, by electronic mail or other means of electronic communication or personally delivered
to the respective parties, as follows:

 

	 	Loan Party:  	Sterling Construction Company, Inc.
	 	 	1800 Hughes Landing Blvd
	 	 	The Woodlands, TX 77380
	 	 	Telephone: (281) 214-0800
	 	 	Email: ronballschmiede@strlco.com
	 	 	Attention: Chief Financial Officer
	 	 	 
	 	with a copy to:	Andrews Kurth Kenyon, LLP
	 	 	600 Travis, Suite 4200
	 	 	Houston, TX 77002
	 	 	Telephone: (713) 220-4200
	 	 	Fax: (713) 220-4285
	 	 	Email: solson@andrewskurth.com
	 	 	Attention: Scott Olson
	 	 	 
	

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	 	Agent:	Wilmington Trust, National Association
	 	 	Rodney Square North
	 	 	1100 North Market Street
	 	 	Wilmington, Delaware 19890
	 	 	Telephone: (302) 636-5048
	 	 	Fax: (302) 636-4145
	 	 	Email: jkanderson@wilmingtontrust.com
	 	 	Attention: Jennifer K. Anderson
	 	 	 
	 	with a copy to:	Oaktree Capital Management, L.P.
	 	 	333 South Grand Avenue, 28th Floor
	 	 	Los Angeles, CA 90071
	 	 	Telephone: (213) 830-6805
	 	 	Email: nbasso@oaktreecapital.com
	 	 	Email: CorpActionAdmins@OakTreeCapital.com
	 	 	Attention: Nick Basso
	 	 	 
	 	with a copy to:	Kirkland & Ellis LLP
	 	 	333 South Hope Street, 29th Floor
	 	 	Los Angeles, CA 90071
	 	 	Telephone: (213) 680-8111
	 	 	Fax: (213) 808-8107
	 	 	Email: david.nemecek@kirkland.com
	 	 	Attention: David Nemecek, P.C.
	 	 	 
	 	with a copy to:	Kirkland & Ellis LLP
	 	 	333 South Hope Street, 29th Floor
	 	 	Los Angeles, CA 90071
	 	 	Telephone: (213) 680-8695
	 	 	Fax: (213) 808-8081
	 	 	Email: nisha.kanchanapoomi@kirkland.com
	 	 	Attention: Nisha Kanchanapoomi
	 	 	 
	 	Lender:	to the address specified in writing by such Lender to the Agent and the Borrower.

 

or in accordance with any subsequent written direction from any
party to the others. All such notices and other communications shall be effective, (i) in the case of delivery by messenger or
overnight delivery service, when left at the appropriate address; (ii) in the case of facsimile transmission, upon the sender’s
receipt of electronic confirmation of receipt; (iii) in the case of electronic mail, upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that transmissions may be made by electronic mail only if delivered in compliance with procedures
of Agent or the applicable Lenders applicable at the time and previously communicated to Borrower, (iv) in the case of notices
or communications posted to an Internet website, upon the deemed receipt by the intended recipient at its e-mail address as described
in the foregoing clause (iii) of notification that such notice or communication is available and identifying the website address
therefor; and (v) in all other cases, upon actual receipt however evidenced.

 

Section 11.07.        
Lenders and Allocations of Loans. Notwithstanding anything herein to the contrary, each Lender severally commits
to make such Lender’s Loan Percentage of each Loan. No Lender shall have liability for the commitment to make Loans of any
other Lender. Borrower agrees that by notice to Borrower, Agent may reallocate the Loan Percentages among the Lenders or among
the Lenders and other investment funds affiliated with Agent. Whether or not specified in any provision of this Loan Agreement,
all references to Agent in this Loan Agreement shall mean Agent for the benefit of the Lenders unless the context otherwise requires.

 

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Section 11.08.        
Severability. If any provision of any Transaction Document is held invalid or unenforceable to any extent or
in any application, the remainder of such Transaction Document and all other Transaction Documents, or the application of such
provision to different Persons or circumstances or in different jurisdictions, shall not be affected thereby.

 

Section 11.09.        
Reliance by Agent and the Lenders. All covenants, agreements, representations and warranties made herein by any
Loan Party shall be deemed to be material to and have been relied upon by Agent and the Lenders, notwithstanding investigation
by Agent.

 

Section 11.10.        
No Set-Offs by Borrower. All sums payable by any Loan Party pursuant to this Loan Agreement or any of the other
Transaction Documents shall be payable without notice or demand and shall be payable without set-off or deduction in any manner
whatsoever.

 

Section 11.11.        
Survival. All representations, warranties, covenants and agreements of Borrower contained herein or made in writing
in connection herewith shall survive the execution and delivery of the Transaction Documents, the making of Loans hereunder, the
granting of security and the issuance of the Notes.

 

Section 11.12.        
Confidentiality. Agent and the Lenders agree to hold non-public information regarding the Loan Parties received
in confidence and shall not disclose such information to third parties except on a confidential need-to-know basis to their employees,
members, partners or the partners of its affiliated investment funds, their lenders, and professional advisors to the foregoing,
including attorneys and accountants, and others under a similar duty of confidentiality, in each case, who have been informed of
the confidential nature of such information and have been advised of the obligation to keep information of this type confidential,
and as Agent or Lenders may deem necessary in its reasonable judgment to satisfy its legal obligations or to enforce Agent’s
or Lenders’ rights under any Transaction Document; provided, however, that nothing herein shall prevent any
Lender (including Oaktree) from disclosing any such information (i) with the Borrower’s prior consent, (ii) as required by
the order of any court or administrative agency or in any legal, judicial or administrative proceeding, (iii) as otherwise required
by any applicable law, rule, regulation (including, without limitation, in connection with filings, submissions and any other similar
documentation required or customary to comply with SEC filing requirements) or compulsory legal process, (iv) upon the request
or demand of any regulatory authority having jurisdiction over a Lender or its affiliates or managed funds, (v) in connection with
the proposed transactions and on a confidential basis to the shareholders, employees, directors, officers, legal counsel, lenders,
investors, limited partners, financing sources, independent auditors, professionals, advisors and other experts or agents of such
Lender or its affiliates or managed funds who are informed of the confidential nature of such information and have been advised
of their obligation to keep information of this type confidential, (vi) to any of such Lender’s respective affiliates or
managed funds solely in connection with the Transactions (provided, that any such affiliate is advised of its obligation
to retain such information as confidential), (vii) to the extent any such information (a) becomes publicly available other than
by reason of a breach of the confidentiality obligations set forth in this Section 11.12, (b) becomes available to such Lender
on a non-confidential basis from a source other than the Borrower or on its behalf and not in violation of any confidentiality
agreement or obligation owed to the Borrower, (3) was available to such Lender, as applicable, on a non-confidential basis prior
to its disclosure to such Lender by the Borrower, or (4) was independently developed by such Lender without reliance on confidential
information, (viii) for purposes of establishing any defense available under securities laws, including, without limitation, establishing
a “due diligence” defense or (ix) in protecting and enforcing such Lenders’ rights with respect to this Loan
Agreement and the other Loan Documents. Each Loan Party acknowledges that Lenders may issue press releases, advertisements, and
other promotional materials, either in print or on Lenders’ website(s), describing any successful outcome of services provided
on such Loan Party’s behalf; provided, that in the event any Loan Party identifies the Lenders by name in any such press
releases, advertisements or other promotional materials, such Lenders shall have the ability to review such press releases, advertisements
or other promotional materials prior to the issuance thereof. Each Loan Party agrees that Lenders shall have the right to identify
such Loan Party by name and use such Loan Party’s corporate name and logo in those materials or deal terms in “tombstones”
or other advertisements, public statements or marketing materials, solely for marketing purposes, and provide information concerning
the Loans set forth herein to reporting services or industry trade organizations. In no event shall this Section 11.12 or any other
provision of this Loan Agreement, any of the other Transaction Documents or applicable law be deemed: (A) to apply to or restrict
disclosure of information that has been or is made public by the Loan Parties or any third party or otherwise becomes generally
available to the public other than as a result of a disclosure in violation hereof, (B) to apply to or restrict disclosure of information
that was or becomes available to Agent or any Lender (or any Affiliate of any Lender) on a non-confidential basis from a Person
other than a Loan Party, or (C) to require Agent or any Lender to return any materials furnished by a Loan Party to Agent or a
Lender or prevent Agent or a Lender from responding to routine informational requests in accordance with the Code of Ethics for
the Exchange of Credit Information promulgated by The Robert Morris Associates or other applicable industry standards relating
to the exchange of credit information. The obligations of Agent and Lenders under this Section 11.12 shall supersede and replace
the obligations of Agent and Lenders under any confidentiality letter signed prior to the date hereof or any other arrangements
concerning the confidentiality of information provided by any Loan Party to Agent or any Lender.

 

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Section 11.13.        
Governing Law; Choice of Law and Venue; Jury Trial Waiver; Waivers.

 

(a)                
THIS LOAN AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). BORROWER,
EACH GUARANTOR, AGENT AND THE LENDERS HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE
SOUTHERN DISTRICT OF NEW YORK; provided that nothing in this Loan Agreement shall be deemed
to operate to preclude Agent or any Lender from bringing suit or taking other legal action in any other jurisdiction to realize
on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Agent or
such Lender.

 

(b)                
Borrower and each Guarantor expressly submit and consent in advance to such jurisdiction in any action or suit commenced
in any such court, and each Borrower and Guarantor, for itself and in connection with its properties, further agrees that the aforesaid
courts of the State of New York and of the United States of America for the Southern District of New York shall have exclusive
jurisdiction with respect to any claim or counterclaim of Borrower or any Guarantor based upon the assertion that the rate of interest
charged by or under this Loan Agreement or under the other Transaction Documents is usurious. Borrower and Guarantors hereby waive
any objection that they may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents
to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower and Guarantors hereby waive
personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons,
complaints, and other process may be made by registered or certified mail addressed to Borrower or Guarantors at the addresses
set forth in Section 11.02 of this Loan Agreement and that service so made shall be deemed completed upon the earlier to occur
of Borrower’s or any Guarantor’s, as applicable, actual receipt thereof or three (3) days after deposit in the U.S.
mails, proper postage prepaid.

 

(c)                
BORROWER, EACH GUARANTOR, AGENT AND THE LENDERS HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE TRANSACTION DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES
THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN
ENTERING INTO THIS LOAN AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY
HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 11.13 AND EXECUTED
BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
HERETO OR ANY OF THE OTHER TRANSACTION DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER.
IN THE EVENT OF LITIGATION, THIS LOAN AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

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(d)                
Each of Borrower and Guarantors hereby irrevocably and unconditionally waives, to the maximum extent not prohibited by law,
any right it may have to claim or recover in any legal action or proceeding referred to in this Section 11.13 any special, exemplary,
punitive or consequential damages.

 

Section 11.14.        
Successors and Assigns. This Loan Agreement and the other Transaction Documents shall be binding upon and inure
to the benefit of Agent and the Lenders, all future holders of a Note, Borrower and their respective successors and permitted assigns,
except that Borrower may not assign or transfer its rights hereunder or thereunder or any interest herein or therein without the
prior written consent of the Required Lenders. Agent or Lenders may grant a security interest or assign all or any portion of their
rights hereunder and under one or more Notes or any of the Loan Documents to any of its Affiliated investments funds or Affiliated
companies or to any one or more financial institutions or funds or companies or an agent or trustee for such financial institutions
or funds or companies (an “Assignee”) and may sell to any of its Affiliated investments funds or Affiliated
companies or to any one or more financial institutions or funds or companies or an agent or trustee for such financial institutions
or funds or companies (a “Participant”) participation interests in Agent’s or Lenders’ rights
hereunder and under one or more Notes; provided, however, that so long as no Event of Default has occurred and is continuing,
no Lender may assign or participate its interest under the Loan Agreement or under one or more Notes without Borrower’s prior
written consent (not to be unreasonably withheld, conditioned or delayed) unless such assignment or participation is made to an
Affiliate of Lender or an Approved Fund with respect to a Lender; provided, further, that (i) except as the
Agent and the Borrower may otherwise agree, no Assignee shall hold less than Five Million Dollars ($5,000,000) of the principal
amount of the Loans outstanding and (ii) any such assignment of interest in the Loans by any Lender shall be accomplished by Lender
providing to Borrower and Agent a duly executed Assignment and Assumption Agreement, in substantially the form of Exhibit F
hereto, identifying the Assignee and the amount of the Loan being assigned, together with any existing Note (or a lost note affidavit
in customary form) subject to such assignment.. Agent and the Lenders may disclose the Transaction Documents and any other financial
or other information relating to Borrower or any Subsidiary to any potential Assignee or Participant, provided that such Assignee
or Participant agrees to protect the confidentiality of such documents and information using the same measures that it uses to
protect its own confidential information and otherwise conform to the requirements of Section 11.12. The Agent shall maintain
at the Agent’s office listed on a register for the recordation of the names and addresses of the Lenders and principal amounts
(and stated interest) of the Notes or Loans owing to each Lender pursuant to the terms hereof from time to time, together with
any participations granted to any Participant (the “Register”). The Register shall be available for inspection
by the Borrower, and a redacted version of the Register showing the entries with respect to any Lender shall be available for inspection
by such Lender, at any reasonable time and from time to time upon reasonable prior notice. The entries in the Register shall be
conclusive and binding absent manifest error; provided, failure to make any such recordation, or any error in such recordation,
shall not affect the Obligations in respect of any Note or Loan. The Borrower, the Agent and the Lenders shall treat each Person
in whose name any Note or Loan hall be registered as the owner and the Lender thereof for all purposes hereof. Any agreement or
instrument pursuant to which a Lender sells a participation shall provide that such Lender shall retain the sole right to enforce
this Loan Agreement and to approve any amendment, modification or waiver of any provision of this Loan Agreement. The Borrower
agrees that each Participant shall be entitled to the benefits of Section 2.05 and Section 2.06 (subject to the requirements and
limitations therein, including the requirements under Section 2.05(f) (it being understood that the documentation required under
Section 2.05(f) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to this Section 11.14; provided that such Participant (A) agrees to be subject to the provisions
of Section 2.08 as if it were an assignee under this Section 11.14; and (B) shall not be entitled to receive any greater payment
under Section 2.05 or Section 2.06, with respect to any participation, than its participating Lender would have been entitled to
receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the
Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower’s request
and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.08 with respect
to any Participant.

 

    	69

     

    

Section 11.15.        
Counterparts. This Loan Agreement may be executed in any number of counterparts and by different parties hereto
on separate counterparts, each of which, when so executed and delivered, shall be an original, but all such counterparts shall
together constitute one and the same instrument.

 

Section 11.16.        
Further Assurances. Borrower will, and will cause each of the other Loan Parties to, at its own expense and at
Agent’s or the Lenders’ request, from time to time do, execute, acknowledge and deliver all and every further acts,
deeds, conveyances, transfers and assurances, and all financing and continuation statements and similar notices, reasonably necessary
or proper for the perfection of the security interest being herein provided for in the Collateral, whether now owned or hereafter
acquired.

 

Section 11.17.        
Entire Agreement. This Loan Agreement and each of the other Transaction Documents, taken together, constitute
and contain the entire agreement of the Loan Parties, Agent and the Lenders and supersede any and all prior agreements, negotiations,
correspondence, understandings and communications among the parties, whether written or oral, respecting the subject matter hereof.

 

Section 11.18.        
USA Patriot Act. The Agent and each Lender subject to the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001) (the “Act”) hereby notifies the Loan Parties that pursuant to the requirements
of the Act, it is required to obtain, verify and record information that identifies each Person who opens an account and/or enters
into a business relationship with it, which information includes the name and address of the Loan Parties and other information
that will allow the Agent or such Lender to identify such Person in accordance with the Act and any other applicable law. The Loan
Parties are hereby advised that any Loans hereunder are subject to satisfactory results of such verification.

 

Section 11.19.        
Rules of Construction. Notwithstanding anything to the contrary contained herein or in any of the Loan Documents,
whenever in this Loan Agreement or any of the other Loan Documents the words (i) “judgment”, “discretion”
or “determination, or words of similar import are used relating to the judgment, discretion or determination of the Agent,
such words shall mean (unless otherwise expressly provided herein) and refer to the judgment, discretion or determination of the
Agent, in each case, acting at the direction of the Required Lenders, or (ii) “consent”, “approval”, “satisfaction”,
“establishment” or words of similar import are used relating to the consent, approval, satisfaction, establishment
of the Agent, such words shall mean and refer to the consent, approval, satisfaction or establishment of the Agent, in each case,
acting at the direction of the Required Lenders. Any requirement herein for the delivery to or receipt by an Agent or words of
similar import relating to the delivery to or receipt by such Agent of any documents, agreements, deliverables, or any other item
shall mean and refer to the delivery to or receipt by such Agent and the Lenders. Any item or action requested by the Agent or
words of similar import relating to the request by the Agent of any documents, agreements, deliverables, or any other item or action
shall mean and refer to the request by the Agent or the Required Lenders.

 

Section 11.20.        
Termination of Security Interest. Upon the payment in full of all Obligations (other than inchoate indemnity
obligations) and the termination of any commitment to make Loans hereunder, the security interest granted herein shall terminate
and all rights to the Collateral shall revert to the applicable Loan Party. Upon Agent’s or the Lenders’ written verification
to Borrower of receipt of such payment, Agent and Lenders hereby authorize Borrower to file any UCC termination statements necessary
to effect such termination and Agent will return any Collateral in its possession to the applicable Loan Party and will execute
and deliver to the applicable Loan Party any additional documents or instruments as the applicable Loan Party shall reasonably
request to evidence such termination, all at Borrower’s or any other Loan Party’s sole cost and expense.

 

Section 11.21.        
Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary
in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges
that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured,
may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges
and agrees to be bound by:

 

		(a)	the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such
liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and
	 	 	 
	

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		(b)	the effects of any Bail-in Action on any such liability, including, if applicable, (i) a reduction
in full or in part or cancellation of any such liability, (ii) a conversion of all, or a portion of, such liability into shares
or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be
issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu
of any rights with respect to any such liability under this Loan Agreement or any other Loan Document or (iii) the variation of
the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

 

 

 

    	71

     

    

 

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

 

	AGENT:	

 

 

 

 

  

 

 

 

 

 

 

[Signature Page to Loan and
Security Agreement]

     

     

    

 

	BORROWER:	
	 	 
	GUARANTORS:	

 

 

 

[Signature
Page to Loan and Security Agreement]

     

     

    

 

	 	

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Loan
and Security Agreement]

     

     

    

 

	 	

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Loan and
Security Agreement]

     

     

    

 

	LENDERS:	

 

 

 

 

 

 

 

 

[Signature Page to Loan
and Security Agreement]

     

     

    

 

 

EXECUTION VERSION

 

 

 

 

 

 

 

EXHIBITS

 

to

 

LOAN AND SECURITY AGREEMENT

 

by and among

 

STERLING CONSTRUCTION COMPANY, INC.,

as Borrower,

 

THE GUARANTORS THAT ARE PARTIES THERETO

 

THE LENDERS THAT ARE PARTIES THERETO

 

and

 

Wilmington Trust, National Association

as the Agent

 

 

 

 

 

 

 

 

 

 

     

     

    

EXHIBIT A

 

FORM OF SECURED PROMISSORY NOTE

 

(Term Loan)

 

 

	$________________	Dated: ____________, 20__

 

FOR VALUE RECEIVED, the undersigned, Sterling
Construction Company, Inc., a Delaware corporation (“Borrower”), HEREBY PROMISES TO PAY to [_________]
(“Lender”) the principal amount of ______________________ Dollars ($__________) or such lesser amount
as shall equal the aggregate outstanding principal balance of the Loan made by Lender on the date hereof to Borrower pursuant to
the Loan and Security Agreement referred to below (as the same may be amended, restated, amended and restated, supplemented, refinanced
or otherwise modified from time to time, the “Loan Agreement”), plus all other payments arising under
Section 2.02 (excluding the portion of the payments representing the principal amounts) of the Loan Agreement with respect
to the Loan, on the dates and in the amounts set forth in the Loan Agreement. Capitalized terms used herein and not otherwise defined
have the respective meanings set forth in the Loan Agreement. To the extent that the terms, conditions, or other provisions of
this Note modify, supplement, or are inconsistent with the terms of the Loan Agreement, the terms, conditions, and other provisions
of the Loan Agreement shall govern.

 

The Borrower further promises to pay interest
at such address as required by the Loan Agreement, from the date hereof on the outstanding principal amount owing hereunder from
time to time, at the applicable rate per annum set forth in Section 2.02 of the Loan Agreement. Interest shall be payable in advance
as set forth in Section 2.02 of the Loan Agreement. Interest shall be calculated on the basis of a year of three hundred sixty
(360) days for the actual number of days elapsed. In no event shall interest hereunder exceed the maximum rate permitted under
applicable law.

 

All payments of principal and interest shall
be made in U.S. Dollars in immediately available funds as specified in the Loan Agreement. Amounts remaining unpaid on this Note
may be prepaid as provided in the Loan Agreement. Amounts repaid or prepaid hereunder may not be reborrowed. All other payments
due under this Note or under the Loan Agreement shall be payable as and when specified in the Loan Agreement.

 

Upon the occurrence and during the continuance
of any Event of Default, all amounts then remaining unpaid on this Note may become, or may be declared to be, immediately due and
payable as provided in the Loan Agreement.

 

This Note is one of the Notes referred to in,
and is entitled to the benefits of, the Loan and Security Agreement, dated as of April 3, 2017, by and among Borrower, the Guarantors
party thereto, the Agent and the Lenders party thereto. This Note and the obligation of Borrower to repay the unpaid principal
amount of the Loan, interest on the Loan, premium, if any, and all other amounts due Agent and Lenders under the Loan Agreement
is secured under the Loan Agreement.

 

This Note is secured by liens on and security
interests in certain property of the Borrower and the other Loan Parties that have been granted to the Agent, for itself and the
benefit of the other Lenders, pursuant to the Loan Agreement and the other Loan Documents. Reference is hereby made to the Loan
Documents for a description of the Collateral securing this Note, the terms and conditions upon which such liens and security interests
were granted and the rights of the holder of this Note in respect thereof.

 

 

Exhibit A – Form of Secured Promissory Note

     

     

     Presentment for payment, demand, notice of protest
and all other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Note
are hereby waived.

 

Borrower shall pay all reasonable fees and expenses,
including, without limitation, reasonable attorneys’ fees and costs, incurred by Agent or any Lender in the enforcement or
attempt to enforce any of Borrower’s obligations hereunder not performed when due.

 

THIS NOTE SHALL BE GOVERNED BY, AND INTERPRETED
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE. THE
BORROWER AND THE LENDER MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT
OF ANY CLAIM BASED HEREON. THE BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE OF NEW YORK, COUNTY OF NEW YORK, CITY OF NEW YORK OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS NOTE IN ACCORDANCE WITH THE TERMS OF SECTION 11.13 OF THE LOAN AGREEMENT.

 

 

 

 

 

 

 

 

Exhibit A – Form of Secured Promissory Note

     

     

    

IN WITNESS WHEREOF, Borrower has caused this
Note to be duly executed by one of its officers thereunto duly authorized on the date hereof.

 

	 	 	STERLING CONSTRUCTION COMPANY, INC.,
	 	 	a Delaware corporation,
	 	 	 
	 	 	By: 	 
	 	 	 	 
	 	 	Name:   	 
	 	 	 	 
	 	 	Title:	 
	 	 	 
	 	 	 

 

 

 

 

 

 

 

 

Exhibit A – Form of Secured Promissory Note

     

     

    

EXHIBIT B

 

COLLATERAL DESCRIPTION

 

All right, title, interest, claims and demands of the Loan Parties
in and to the following property, whether now owned or hereafter acquired or arising and wherever located:

 

		1.	All Accounts;
	 	 	 

		2.	All Books;
	 	 	 

		3.	All Chattel Paper;
	 	 	 

		4.	All Commercial Tort Claims, including any Commercial Tort Claims listed on Attachment 1;
	 	 	 

		5.	All Deposit Accounts and cash, cash equivalents or other assets of such Loan Party that now or
hereafter come into the possession, custody, or control of Agent (or its agent or designee) or any Lender;
	 	 	 

		6.	All Documents;
	 	 	 

		7.	All Equipment;
	 	 	 

		8.	All Farm Products;
	 	 	 

		9.	All Fixtures;
	 	 	 

		10.	All General Intangibles;
	 	 	 

		11.	All Goods;
	 	 	 

		12.	All Instruments and Negotiable Collateral;
	 	 	 

		13.	All Intellectual Property;
	 	 	 

		14.	All Inventory;
	 	 	 

		15.	All Investment Property;
	 	 	 

		16.	All Letter-of-Credit Rights;
	 	 	 

		17.	All Pledged Collateral (including all of such Loan Party’s Pledged Operating Agreements and
Pledged Partnership Agreements);
	 	 	 

		18.	All Securities Accounts;
	 	 	 

		19.	All Supporting Obligations;
	 	 	 

		20.	To the extent not otherwise included, all proceeds (as such term is defined in the Code) and products,
whether tangible or intangible, of any and all of the foregoing, and all accessions to, substitutions and replacements for, and
rents and profits of each of the foregoing including proceeds of insurance or Commercial Tort Claims covering or relating to any
or all of the foregoing, and any and all Accounts, Books, Chattel Paper, Deposit Accounts, Equipment, Fixtures, General Intangibles,
Inventory, Investment Property, Intellectual Property, Negotiable Collateral, Pledged Interests, Securities Accounts, Supporting
Obligations, money, or other tangible or intangible property resulting from the sale, lease, license, exchange, collection, or
other disposition of any of the foregoing, the proceeds of any award in condemnation with respect to any of the foregoing, any
rebates or refunds, whether for taxes or otherwise, and all proceeds of any such proceeds, or any portion thereof or interest therein,
and the proceeds thereof, and all proceeds of any loss of, damage to, or destruction of the above, whether insured or not insured,
and, to the extent not otherwise included, any indemnity, warranty, or guaranty payable by reason of loss or damage to, or otherwise
with respect to any of the foregoing (the “Proceeds”). Without limiting the generality of the foregoing,
the term “Proceeds” includes whatever is receivable or received when Investment Property or proceeds are sold, exchanged,
collected, or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes proceeds of any indemnity
or guaranty payable to any Loan Party or Agent from time to time with respect to any of the Investment Property.

 

    
Exhibit B – Collateral Description

     

    

All capitalized terms used in this Exhibit
B and not otherwise defined herein or in the Loan Agreement, shall have the respective meanings given to such terms in the
Uniform Commercial Code of the State of New York as in effect from time to time.

 

Notwithstanding anything contained in this Loan Agreement to the
contrary, the term “Collateral” shall not include: (i) Equity Securities of (y) Road and Highway Builders, LLC, a Nevada
limited liability company, or (z) Sterling Hawaii Asphalt, LLC, a Hawaii limited liability company; provided, that if at any time
either Road and Highway Builders, LLC and/or Sterling Hawaii Asphalt, LLC becomes, or is required to become, a Required Guarantor
Party or the Borrower is otherwise able to cause the Equity Securities in such entity to be pledged, in each case, pursuant to
the terms of the Loan Documents, the Equity Securities of such entity shall automatically and immediately be included in the term
“Collateral”; or (ii) any rights or interest in any contract, lease, permit, license, or license agreement covering
real or personal property of any Loan Party if under the terms of such contract, lease, permit, license, or license agreement,
or applicable law with respect thereto, the grant of a security interest or lien therein is prohibited as a matter of law or under
the terms of such contract, lease, permit, license, or license agreement and such prohibition or restriction has not been waived
or the consent of the other party to such contract, lease, permit, license, or license agreement has not been obtained (provided,
that, (A) the foregoing exclusions of this clause (ii) shall in no way be construed (1) to apply to the extent that any described
prohibition or restriction is ineffective under Section 9-406, 9-407, 9-408, or 9-409 of the Code or other applicable law, or (2)
to apply to the extent that any consent or waiver has been obtained that would permit Agent’s security interest or lien to
attach notwithstanding the prohibition or restriction on the pledge of such contract, lease, permit, license, or license agreement
and (B) the foregoing exclusions of clauses (i) and (ii) shall in no way be construed to limit, impair, or otherwise affect any
of Agent’s or any Lender’s continuing security interests in and liens upon any rights or interests of any Loan Party
in or to (1) monies due or to become due under or in connection with any described contract, lease, permit, license, license agreement,
or Equity Securities (including any Accounts or Equity Securities), or (2) any proceeds from the sale, license, lease, or other
dispositions of any such contract, lease, permit, license, license agreement, or Equity Securities); (iii) property subject to
Liens permitted by clause (vi) of the definition of Permitted Liens solely to the extent that a grant or perfection of a Lien in
favor of Agent on any such property is prohibited by or results in a breach or termination of, or constitutes a default under,
the documentation governing such Permitted Liens or the obligations secured by such Liens (other than to the extent that such terms
would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the Code (or any successor provision or provisions)
of any relevant jurisdiction and other than to the extent all necessary consents to creation, attachment and perfection of Agent’s
Liens thereon have been obtained) and, in any event, immediately upon the ineffectiveness, lapse or termination of such terms or
the obtainment of such consents, such property shall be included in the term Collateral; provided, however, that the term
Collateral shall include any and all proceeds of such property (other than to the extent that such proceeds are required to be
applied to the obligations they secure); or (iv) any United States intent-to-use trademark applications to the extent that, and
solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such
intent-to-use trademark applications under applicable federal law, provided that upon submission and acceptance by the PTO of an
amendment to allege use pursuant to 15 U.S.C. Section 1060(a) (or any successor provision), such intent-to-use trademark application
shall be considered Collateral.

 

 

    
Exhibit B – Collateral Description

     

    

Attachment 1

 

Commercial Tort Claims

 

None.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    
Exhibit B – Collateral Description

     

    

EXHIBIT C

 

FORM OF LANDLORD’S LIEN WAIVER, ACCESS AGREEMENT AND CONSENT

 

THIS LANDLORD’S LIEN WAIVER, ACCESS AGREEMENT AND CONSENT
(this “Agreement”) is made and entered into as of [, ] by and between [_______________________],
having an office at [___________________________________] (“Landlord”) and Wilmington Trust, National
Association, a national banking association, having an office at 1100 North Market Street, Wilmington, DE 19890, as agent (together
with any successors in such capacity, the “Agent”), for the benefit of the lenders (the “Lenders”)
under the Loan Agreement described below.

 

RECITALS:

 

A.                
Landlord is the record title holder and owner of the real property described in Exhibit A attached hereto (the
“Real Property”).

 

B.                
Landlord has leased all or a portion of the Real Property (the “Leased Premises”) to [________________]
(“Lessee”) pursuant to a certain lease agreement or agreements described in Exhibit B attached
hereto (collectively, and as amended, amended and restated, supplemented or otherwise modified from time to time, the “Lease”).

 

C.                
Lessee, Agent, and the Lenders have entered into that certain Loan and Security Agreement, dated as of April 3, 2017 (as
the same may be amended, restated, amended and restated, supplemented, refinanced or otherwise modified from time to time, the
“Loan Agreement”), and certain related loan documents (as such related loan documents may be amended,
restated, amended and restated, supplemented, refinanced or otherwise modified from time to time, together with the Loan Agreement,
collectively, the “Loan Documents”), which provide for, among other things, the making of certain loans
and other extensions of credit to Lessee by the Lenders.

 

D.                
As security for the payment and performance of Lessee’s obligations under the Loan Agreement and the other Loan Documents,
Agent (for its benefit and the benefit of the Lenders) has or will acquire a security interest in and lien upon all of Lessee’s
personal property, including without limitation, all inventory, accounts, goods, equipment, farm products and fixtures (together
with all additions, substitutions, replacements and improvements to, and proceeds of, the foregoing, collectively, the “Collateral”).

 

E.                 
Agent has requested, pursuant to its rights under the Loan Agreement, that Landlord execute this Agreement.

 

AGREEMENT:

 

NOW, THEREFORE, for and in consideration of the
premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord hereby
represents, warrants and agrees in favor of Agent, as follows:

 

1.                 
Landlord hereby waives and releases unto Agent (i) any contractual landlord’s lien and any other landlord’s
lien which it may be entitled to at law or in equity against any Collateral, (ii) any and all rights granted by or under any
present or future laws to levy or distrain for rent or any other charges which may be due to the Landlord against the Collateral
and (iii) any and all claims, liens and demands of every kind which it has or may hereafter have against the Collateral (including,
without limitation, any right to include the Collateral in any secured financing Landlord may become party to). Landlord acknowledges
that the Collateral is and will remain personal property and not fixtures even though it may be affixed to or placed on the Real
Property.

 

    
Exhibit C – Form of Landlord Waiver

     

    

2.                 
Landlord certifies that (i) Landlord is the landlord under the Lease described in Exhibit B attached hereto, (ii)
the Lease is in full force and effect and has not been amended, restated, supplemented, extended, renewed or otherwise modified
except as set forth in Exhibit B hereto, (iii) there is no defense, offset, claim or counterclaim by or in favor of
Landlord against Lessee under the Lease or against the obligations of Landlord under the Lease and (iv) no notice of default has
been given under or in connection with the Lease which has not been cured, and Landlord has no knowledge of any occurrence of any
other default under or in connection with the Lease.

 

3.                 
Landlord agrees that Agent has the right to remove the Collateral from the Leased Premises at any time prior to the occurrence
of a default under the Lease and, after the occurrence of such a default, during the Standstill Period (as hereinafter defined)
provided that Agent shall repair any damage arising from such removal. Landlord further agrees that, during the foregoing
periods, Landlord will not (i) remove any of the Collateral from the Leased Premises or (ii) hinder Agent’s actions
in removing Collateral from the Leased Premises or Agent’s actions in otherwise enforcing its security interest in the Collateral.
Agent shall not be liable for any diminution in value of the Leased Premises caused by the absence of Collateral actually removed
or by the need to replace the Collateral after such removal. Landlord acknowledges that Agent shall have no obligation to remove
the Collateral from the Leased Premises.

 

4.                 
Landlord acknowledges and agrees that Lessee’s granting of a security interest in the Collateral in favor of Agent
(for its benefit and the benefit of the Lenders) shall not constitute a default under the Lease nor permit Landlord to terminate
the Lease or re-enter or repossess the Leased Premises or otherwise be the basis for the exercise of any remedy by Landlord, and
Landlord hereby expressly consents to the granting of such security interest.

 

5.                 
Notwithstanding anything to the contrary contained in this Agreement or the Lease, in the event of a default by Lessee under
the Lease, Landlord agrees that (i) it shall provide to Agent at the address set forth in the introductory paragraph hereof
a copy of any notice of default delivered to Lessee under the Lease and (ii) it shall not exercise any of its remedies against
Lessee provided in favor of Landlord under the Lease or at law or in equity until, in the case of a monetary default, the date
which is 30 days after the date Landlord delivers written notice of such monetary default to Agent, and in the case of a non-monetary
default, the date which is 45 days after the date Landlord delivers written notice of such non-monetary default to Agent (such
30-day period for monetary defaults and such 45-day period for non-monetary defaults, as applicable, being referred to as the “Standstill
Period”), provided, however, if such non-monetary default by its nature cannot reasonably be cured
by Agent within such 45-day period, Agent shall have such additional period of time as may be reasonably necessary to cure such
non-monetary default, so long as Lessee commences such curative measures within such 45-day period and thereafter proceeds diligently
to complete such curative measures. In the event that any such non-monetary default by its nature cannot reasonably be cured by
Agent, Landlord shall, provided Agent has theretofore cured all monetary defaults (if any), upon the request of Agent enter into
a new lease with Agent (or its nominee) on the same terms and conditions as the Lease. Agent shall have the right, but not the
obligation, during the Standstill Period, to cure any such default and Landlord shall accept any such cure by Agent or Lessee.
If, during the Standstill Period, Agent or Lessee or any other person or entity cures any such default, then Landlord shall rescind
the notice of default.

 

6.                 
In the event of a termination, disaffirmance or rejection of the Lease for any reason, including, without limitation, pursuant
to any laws (including any bankruptcy or other insolvency laws) by Lessee or the termination of the Lease for any reason by Landlord,
Landlord will give Agent the right, within sixty (60) days of such event, to enter upon the Leased Premises during such sixty (60)
day period for the purpose of removing the Collateral therefrom.

 

    
Exhibit C – Form of Landlord Waiver

     

    

7.                 
Notwithstanding any provision to the contrary contained in the Lease, any acquisition of Lessee’s interest by Agent,
its nominee, shall not create a default under, or require Landlord’s consent under, the Lease.

 

8.                 
The terms and provisions of this Agreement shall inure to the benefit of and be binding upon the successors and assigns
of Landlord (including, without limitation, any successor owner of the Real Property) and Agent. Landlord will disclose the terms
and conditions of this Agreement to any purchaser or successor to Landlord’s interest in the Leased Premises. Notwithstanding
that the provisions of this Agreement are self-executing, Landlord agrees, upon request by Agent, to execute and deliver a written
acknowledgment confirming the provisions of this Agreement in form and substance satisfactory to Agent.

 

9.                 
All notices to any party hereto under this Agreement shall be in writing and sent to such party at its respective address
set forth above (or at such other address as shall be designated by such party in a written notice to the other party complying
as to delivery with the terms of this Section 9) by certified mail, postage prepaid, return receipt requested or by overnight delivery
service.

 

10.             
Within fifteen (15) days after written request therefor from Agent, but no more frequently than once per any twelve (12)
month period Landlord shall deliver to Agent (and any other party identified by Agent) an estoppel certificate signed by Landlord
in form reasonably designated by Agent that certifies as to: (a) the rent payable under the Lease; (b) the term of the Lease and
the rights of Tenant, if any, to extend the term of the Lease; (c) the nature of any defaults by Tenant alleged by Landlord; and
(d) any other matters reasonably requested by Agent.

 

11.             
This Agreement may not be changed or terminated orally.

 

12.             
No action by Agent or its agents, representatives and/or employees pursuant to this Agreement shall be deemed to be an assumption
by Agent of the Lease and, except as expressly provided herein, Agent shall not have any obligations to Landlord.

 

13.             
Agent may, without in any way affecting or limiting this Agreement, and without notice to Landlord, amend, restate (in whole
or in part), amend and restate, supplement, refinance or otherwise modify the Loan Documents.

 

14.             
The provisions of this Agreement shall continue in effect until Landlord shall have received Agent’s written certification
that all of Lessee’s obligations under the Loan Agreement and the other Loan Documents have been satisfied.

 

15.             
This Agreement and the rights and obligations of the parties hereunder shall be governed by, and shall be construed and
enforced in accordance with, the laws of the State in which the Leased Premises are located, without regard to conflicts of laws
principles.

 

16.             
Landlord agrees to execute, acknowledge and deliver such further instruments as Agent may request to allow for the proper
recording of this Agreement (including, without limitation, a revised landlord’s waiver in form and substance sufficient
for recording) or to otherwise accomplish the purposes of this Agreement.

 

    
Exhibit C – Form of Landlord Waiver

     

    

17.             
Landlord agrees that, so long as Lessee’s obligations under the Loan Agreement remain outstanding and Agent retains
an interest in the Collateral, no modification, alteration or amendment shall be made to the Lease without the prior written consent
of Agent if such modification, alteration or amendment could have a material adverse effect on the value or use of the Leased Premises
or Lessee’s obligations or rights under the Lease.

 

18.             
This Agreement may be executed in several counterparts, each of which shall be deemed an original, but together the counterparts
shall constitute one and the same document.

 

19.             
In the event of any conflicts between the terms and provisions of this Agreement and the terms and provisions of the Lease,
the terms and provisions of this Agreement shall control. The foregoing notwithstanding, however, nothing contained herein shall
be deemed to amend or modify the terms of the Lease as between Landlord and Tenant.

 

20.             
THE PARTIES HERETO WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR PERTAINING TO THIS AGREEMENT.

 

 

 

[Signature Page Follows.]

 

 

 

 

 

 

    
Exhibit C – Form of Landlord Waiver

     

    

IN WITNESS WHEREOF, Landlord and Agent have caused this Agreement
to be duly executed and delivered by their duly authorized officers as of the date first above written.

 

 

 

	 	 	LANDLORD:
	 	 	 
	 	 	[Landlord]
	 	 	 
	 	 	By: 	 
	 	 	 	Name:
	 	 	 	Title:
	 	 	 
	 	 	AGENT:
	 	 	 
	 	 	WILMINGTON TRUST, NATIONAL ASSOCIATION, 

as Agent
	 	 	 
	 	 	By:	
	 	 	 	Name:
	 	 	 	Title:
	 	 	 

 

 

 

 

    
Exhibit C – Form of Landlord Waiver

     

    

Exhibit A

 

Description of Real Property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    
Exhibit C – Form of Landlord Waiver

     

    

Schedule B

 

Description of Leases

 

	Lessor	Lessee	Dated	Modification	Location/

Property Address
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

    
Exhibit C – Form of Landlord Waiver

     

    

EXHIBIT D

 

FORM OF SOLVENCY CERTIFICATE

 

April 3, 2017

 

This Solvency Certificate is being executed
and delivered pursuant to Section 4.01(a)(xviii) of that certain Loan and Security Agreement, dated as of the date hereof
(as the same may be amended, restated, amended and restated, supplemented, refinanced or otherwise modified from time to time,
the “Loan Agreement”) by and among Wilmington Trust, National Association, a national banking association,
as agent (the “Agent”), the lenders party thereto from time to time (the “Lenders”),
Sterling Construction Company, Inc., a Delaware corporation (the “Borrower”) and the guarantors party
thereto from time to time (the “Guarantors” and together with the Borrower as the “Loan Parties”).
Capitalized terms used herein but not defined herein shall have the meanings ascribed to such terms as set forth in the Loan Agreement.

 

The undersigned, as the [Chief Financial Officer]
of the Borrower, in such capacity and not in any individual capacity, does hereby certify to the Agent on behalf of the Borrower
that:

 

		a)	I am the [Chief Financial Officer] of the Borrower, I am generally familiar with the businesses
and assets of the Loan Parties and their Subsidiaries, I have made such other investigations and inquiries as I have deemed appropriate
and I am duly authorized to execute this Solvency Certificate on behalf of the Loan Parties and their Subsidiaries pursuant to
the Loan Agreement. The financial information, projections and assumptions that underlie and form the basis for the certifications
made in this Solvency Certificate were made in good faith and were based on assumptions which provide a reasonable basis for the
projections contained therein and reflect Borrower’s judgment based on present circumstances of the most likely set of conditions
and course of action for the projected period (it being recognized by the Agent and the Lenders that projections are subject to
uncertainties and contingencies many of which are beyond  Borrower’s control and that no assurance can be given that
such projections will be realized and that projections are not to be viewed as facts and that the actual results during the period
or periods covered by such projections may vary from such projections and such variances may be material).

 

		b)	Based upon the review and examination described in paragraph (a) above, as of the date hereof,
after giving effect to the consummation of the Transactions on the Closing Date, including the making of the Loans under the Loan
Agreement on the date hereof, and after giving effect to the application of proceeds of such Loans, the Loan Parties and their
respective Subsidiaries, taken as a whole, are Solvent.

 

[Signature Page Follows]

 

 

 

 

 

    
Exhibit D – Form of Solvency Certificate

     

    

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

 

 

	 	 	STERLING CONSTRUCTION COMPANY, INC.,
	 	 	a Delaware corporation,
	 	 	 
	 	 	By:  	 
	 	 	 	 
	 	 	Name: 	 
	 	 	 	 
	 	 	Title:	 
	 	 	 
	 	 	 
	 	 	 

 

 

 

 

 

 

 

 

    
Exhibit D – Form of Solvency Certificate

     

    

EXHIBIT E

 

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT1

 

THIS [COPYRIGHT][PATENT][TRADEMARK] SECURITY
AGREEMENT, dated as of [●] (this “Security Agreement”), is made by Sterling Construction Company,
Inc., a Delaware Corporation (the “Grantor”), in favor of Wilmington Trust, National Association, as agent (in
such capacity, together with its successors and permitted assigns, the “Administrative Agent”) for the Lenders
(as defined in the Loan and Security Agreement referred to below).

 

WHEREAS, the Grantor, the Guarantors
(as defined in the Loan and Security Agreement referred to below), the Lenders and the Agent have entered into that certain Loan
and Security Agreement, dated as of April 3, 2017 (as amended, restated, supplemented or otherwise modified from time to time,
the “Loan and Security Agreement”), in favor of the Agent for the benefit of the Lenders; and

 

WHEREAS, the Loan and Security Agreement
requires the Grantor to execute and deliver this Security Agreement;

 

NOW, THEREFORE,
in consideration of the premises and in order to ensure compliance with the Loan and Security Agreement, the Grantor hereby agrees
as follows:

 

Section 1Defined
Terms. Capitalized terms used herein without definition are used as defined in the Loan and Security Agreement.

 

Section 2Grant
of Security Interest in [Copyright][Patent][Trademark] Collateral. The Grantor, as collateral security for the prompt and
complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Obligations of the
Grantor, hereby pledges and grants to the Agent for the benefit of the Lenders, and grants to the Agent for the benefit of the
Lenders, a security interest in, all of its right, title and interest in, to and under the following Collateral now owned or at
any time hereinafter acquired by Grantor, or in which Grantor now has or at any time in the future may acquire any right, title
and interest in, to and under (the “[Copyright][Patent][Trademark] Collateral”):

 

[(i)       all copyright rights, copyright applications,
copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished
and whether or not the same also constitutes a trade secret,, including, without limitation, those copyright applications and copyright
registrations referred to on Schedule I hereto;

 

(ii)       all
renewals, reversions and extensions of the foregoing; and

 

(iii)       all
income, royalties, proceeds and liabilities at any time due or payable or asserted under and with respect to any of the foregoing,
including, without limitation, all rights to sue and recover at law or in equity for any past, present and future infringement,
misappropriation, dilution, violation or other impairment thereof.]

 

[(i)       all of all patents, patent applications
and like protections, including, without limitation, those patents and patent applications referred to on Schedule I
hereto;

 

_______________

 

		1	Note to Draft: References to the Loan and Security Agreement to be removed in jurisdictions where reference thereto would require
such agreements to be filed with the applicable intellectual property office.

 

    
Exhibit E – Form of Intellectual Property Security Agreement

     

    

(ii)       all
improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the foregoing; and

 

(iii)       all
income, royalties, proceeds and liabilities at any time due or payable or asserted under and with respect to any of the foregoing,
including, without limitation, all rights to sue and recover at law or in equity for any past, present and future infringement,
misappropriation, dilution, violation or other impairment thereof.]

 

[(i)       all trademark and service mark rights,
whether registered or not, applications to register and registrations of the same and like protections, including, without limitation,
those registered trademarks and applications to register trademarks referred to on Schedule I hereto;

 

(ii)       all
renewals and extensions of the foregoing;

 

(iii)       all
goodwill connected with and symbolized by the foregoing; and

 

(iv)       all
income, royalties, proceeds and liabilities at any time due or payable or asserted under and with respect to any of the foregoing,
including, without limitation, all rights to sue and recover at law or in equity for any past, present and future infringement,
misappropriation, dilution, violation or other impairment thereof.

 

provided, however, that the foregoing grant of
security interest will not cover any United States intent-to-use trademark application to the extent that, and solely during the
period in which, the grant, attachment, or enforcement of a security interest therein would impair the validity, registrability,
or enforceability of such intent-to-use trademark application under applicable federal law or any trademark registration that issues
therefrom.]

 

Section 3      Loan
and Security Agreement. The security interest granted pursuant to this Security Agreement is granted in conjunction with
the security interest granted to the Agent pursuant to the Loan and Security Agreement, and the Grantor hereby acknowledges and
agrees that the rights and remedies of the Agent with respect to the security interest in the [Copyright][Patent][Trademark] Collateral
made and granted hereby are more fully set forth in the Loan and Security Agreement, the terms and provisions of which are incorporated
by reference herein as if fully set forth herein. In the event of any conflict between the terms of this Security Agreement and
the Loan and Security Agreement, the terms of the Loan and Security Agreement shall govern.

 

Section 4     Counterparts.
This Security Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.
Signature pages may be detached from multiple separate counterparts and attached to a single counterpart.

 

Section 5     Governing
Law. This Security Agreement and the rights and obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the law of the State of New York.

 

[Remainder of page intentionally left blank]

 

 

 

 

 

    
Exhibit E – Form of Intellectual Property Security Agreement

     

    

IN WITNESS WHEREOF, the Grantor has caused
this [Copyright][Patent][Trademark] Security Agreement to be executed and delivered by its duly authorized officer as of the date
first set forth above.

 

 

	 	 	GRANTOR:
	 	 	 
	 	 	[STERLING CONSTRUCTION COMPANY, INC.]
	 	 	 
	 	 	By: 	 
	 	 	 	Name:
	 	 	 	Title:

 

Acknowledged and Agreed to as of the date hereof:

 

AGENT:

 

WILMINGTON TRUST, NATIONAL ASSOCIATION

 

 

	By: 	 	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 

 

 

 

    
Exhibit E – Form of Intellectual Property Security Agreement

     

    

SCHEDULE I

 

[Copyrights][Patents][Trademarks]

 

1.      I.     REGISTERED
[COPYRIGHTS][PATENTS][TRADEMARKS]

 

[Include registration number and date]

 

2.      II.     [COPYRIGHT][PATENT][TRADEMARK]
APPLICATIONS

 

[Include application number and date]

 

 

 

 

 

 

 

    
Exhibit E – Form of Intellectual Property Security Agreement

     

    

EXHIBIT F

 

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This Assignment and Assumption Agreement (the
“Assignment and Assumption Agreement”) is dated as of [_______ ___, 20__] and is entered into by and
between [the][each] Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each]
Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and agreed that the
rights and obligations of [the Assignors][the Assignees] hereunder are several and not joint.][2] Capitalized terms
used but not defined herein shall have the meanings given to them in the Loan Agreement identified below (as the same may be amended,
restated, amended and restated, supplemented, refinanced or otherwise modified from time to time, the “Loan Agreement”),
receipt of a copy of which is hereby acknowledged by [the][each] Assignee. The Standard Terms and Conditions set forth in Annex
1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption Agreement
as if set forth herein in full.

 

For an agreed consideration, [the][each] Assignor
hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases
and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions
and the Loan Agreement, date hereof (i) all of [the Assignor’s][the respective Assignors’] rights and obligations in
[its capacity as a Lender][their respective capacities as Lenders] under the Loan Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding
rights and obligations of [the Assignor][the respective Assignors] under the respective facilities identified below (including
without limitation any guarantees included in such facilities) and (ii) to the extent permitted to be assigned under applicable
law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors
(in their respective capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with
the Loan Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or
in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice
claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant
to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses
(i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”). Each such sale and
assignment is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Assumption Agreement,
without representation or warranty by [the][any] Assignor.

 

	1.	Assignor[s]:	
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	2.	Assignee[s]:	 
	 	 	 
	 	 	 
	 	 	[for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]
	 	 	 

 

 

_______________

 

		2	Include bracketed language if there are either multiple Assignors or multiple Assignees.

 

	

    
Exhibit F – Form of Assignment and Assumption Agreement

     

    

	 	 	 
	3.	Borrower:	Sterling Construction Company, Inc., a Delaware corporation (“Borrower”)
	 	 	 
	4.	Agent:	Wilmington Trust, National Association, as the agent under the Loan Agreement (the “Agent”)
	 	 	 
	5.	Loan Agreement:	The Loan and Security Agreement dated as of April 3, 2017, by and among Borrower, the guarantors party thereto from time to time, Agent and each lender party thereto from time to time (the “Lenders”).
	 	 	 
	6.	 	 

 

	Assignor[s]	Assignee[s]	Facility

Assigned	Aggregate Amount of Loans for all Lenders	Amount of Loans Assigned	Percentage Assigned of Loans	CUSIP Number
	 	 	 	 	 	 	 

 

 

	[7.	Trade Date:	____________________]3

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

 

 _______________

 

		3	To be completed if the Assignor(s) and the Assignee(s) intend that the minimum assignment amount is to be determined as of
the Trade Date.

 

 

    
Exhibit F – Form of Assignment and Assumption Agreement

     

    

The terms set forth in this Assignment and Assumption Agreement
are hereby agreed to:

 

 

	 	 	ASSIGNOR[S]
	 	 	[NAME OF ASSIGNOR]
	 	 	 
	 	 	By: 	 
	 	 	Name: 	
	 	 	Title:	
	 	 	 	 
	 	 	ASSIGNEE[S]
	 	 	[NAME OF ASSIGNEE]
	 	 	 	 
	 	 	By: 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	Accepted:	 	 	 
	 	 	 	 
	WILMINGTON TRUST, NATIONAL ASSOCIATION,	 	 	 
	as Agent	 	 	 
	 	 	 	 
	By	 	 	 	 
	Name: 	 	 	 	 
	Title:	 	 	 	 
	 	 	 	 

 

    
Exhibit F – Form of Assignment and Assumption Agreement

     

    

ANNEX 1

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

1.       Representations
and Warranties.

 

1.1       Assignor[s].
[The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][the relevant] Assigned
Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has
full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption Agreement and
to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties
or representations made in or in connection with the Loan Agreement or any other Loan Document, (ii) the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Documents or any Collateral thereunder, (iii) the financial condition
of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the
performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

 

1.2.       Assignee[s].
[The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary,
to execute and deliver this Assignment and Assumption Agreement and to consummate the transactions contemplated hereby and to become
a Lender under the Loan Agreement, (ii) it meets all the requirements to be an assignee under the Loan Agreement (subject to such
consents, if any, as may be required under the Loan Agreement), (iii) from and after the Closing Date, it shall be bound by the
provisions of the Loan Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have
the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented
by the Assigned Interest and either it, or the person exercising discretion in making its decision to acquire the Assigned Interest,
is experienced in acquiring assets of such type, (v) it has received a copy of the Loan Agreement, and has received or has been
accorded the opportunity to receive copies of the most recent financial statements delivered, as applicable, and such other documents
and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption
Agreement and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Agent or any
other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Assignment and Assumption Agreement and to purchase [the][such] Assigned Interest, and (vii) if it is a Foreign
Lender, attached to the Assignment and Assumption Agreement is any documentation required to be delivered by it pursuant to the
terms of the Loan Agreement, duly completed and executed by [the][such] Assignee; and (b) agrees that (i) it will, independently
and without reliance on the Agent, [the][any] Assignor or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents,
and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required
to be performed by it as a Lender.

 

2.       Payments.
From and after the date hereof, the Agent shall make all payments in respect of [the][each] Assigned Interest (including payments
of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to but excluding
the date hereof and to [the][the relevant] Assignee for amounts which have accrued from and after the date hereof.

 

    
Exhibit F – Form of Assignment and Assumption Agreement

     

    

3.       General
Provisions. This Assignment and Assumption Agreement shall be binding upon, and inure to the benefit of, the parties hereto
and their respective successors and assigns. This Assignment and Assumption Agreement may be executed in any number of counterparts,
which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption Agreement by telecopy or other electronic method of transmission shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption Agreement. This Assignment and Assumption Agreement shall be governed by, and construed
in accordance with, the law of the State of New York.

 

[Remainder of page intentionally left blank]

 

 

 

 

 

 

 

 

 

    
Exhibit F – Form of Assignment and Assumption Agreement

     

    

EXHIBIT G

 

FORM OF NOTICE OF BORROWING

 

Date: _________ __, 201_

 

Wilmington Trust, National Association

as Agent for the Lenders referred to below

Attn: Jennifer Anderson

Rodney Square North

1100 North Market Street

Wilmington, DE 19890

 

		Re:	Sterling Construction Company, Inc. (the “Borrower”)

 

Ladies and Gentlemen:

 

Reference is made to that certain Loan and Security
Agreement, dated as of April 3, 2017 (as the same may be amended, restated, amended and restated, supplemented, refinanced or otherwise
modified from time to time, the “Loan Agreement”) by and among Wilmington Trust, National Association,
a national banking association, as agent (the “Agent”), the lenders party thereto from time to time (the
“Lenders”), the Borrower and the guarantors party thereto from time to time (the “Guarantors”
and together with the Borrower as the “Loan Parties”). Capitalized terms used herein but not defined
herein shall have the meanings ascribed to such terms as set forth in the Loan Agreement.

 

Borrower hereby gives you notice pursuant to
Section 2.03(c) [and Section 4.01(a)(v)] of the Loan Agreement that it requests the Lenders to make a Loan under the Loan
Agreement, and that in connection therewith sets forth below the terms on which such Loan is requested to be made:

The undersigned hereby requests a borrowing of Loans:

 

		1.	On [date] (a Business Day).
	 	 	 

		2.	In the amount of $[amount].
	 	 	 

		3.	The Interest Period will be [one / two / three / six] months.
	 	 	 

		4.	Borrower hereby irrevocably authorizes and directs the Agent to disburse the proceeds of the Loan
as set forth in the funds flow attached hereto as Exhibit A. For the avoidance of doubt, Borrower hereby authorizes
the payment of amounts under the Fee Letter and the reimbursement of the Agent’s and Lenders’ expenses, in each case
as required to be paid on the Closing Date and in accordance with Exhibit A hereto.

 

Borrower hereby represents and warrants on the
date of the proposed Borrowing that each of the conditions specified in Section 4.01(b) of the Loan Agreement is, or
will be, satisfied as of the date of the proposed borrowing of the Loan (specified above) (both immediately before and immediately
after giving effect to such borrowing).

 

[Signature Page Follows]

 

    
Exhibit G – Form of Notice of Borrowing

     

    

 

 

	 	 	STERLING CONSTRUCTION COMPANY, INC.
	 	 	as Borrower
	 	 	 
	 	 	By: 	        
	 	 	Name: 	
	 	 	Title:	

 

 

 

 

 

 

 

    
Exhibit G – Form of Notice of Borrowing

     

    

Exhibit A

 

FUNDS FLOW

 

[Attached]

 

 

 

 

 

 

 

 

 

 

 

 

 

    
Exhibit G – Form of Notice of Borrowing

     

    

EXHIBIT H

 

FORM OF JOINDER AGREEMENT

 

This Joinder Agreement (this “Joinder
Agreement”), dated as of ____________ 20___, is made by each of the parties listed on the signature pages hereto
as a “New Loan Party” (each, a “New Loan Party” and collectively, the “New Loan
Parties”) in favor of Wilmington Trust, National Association, as agent (“Agent”) for the
Lenders under the below-referenced Loan Agreement.

 

Reference is made
to the certain Loan and Security Agreement, dated as of April 3, 2017 (as the same may be amended, restated, amended and restated,
supplemented, refinanced or otherwise modified from time to time, the “Loan Agreement”) by and among
Agent, the lenders party thereto from time to time (the “Lenders”), Sterling Construction Company,
Inc., a Delaware corporation (the “Borrower”) and the guarantors party thereto from time to time (the
“Guarantors” and together with the Borrower as the “Loan Parties”). Capitalized
terms used herein but not defined herein shall have the meanings ascribed to such terms as set forth in the Loan Agreement.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower and Guarantors have entered
into the Loan Agreement in order to induce the Lenders to make the Loans; and

 

WHEREAS, pursuant to Section 6.10 of the Loan
Agreement, subject to certain limitations and exceptions set forth therein, each of the undersigned New Loan Parties is required
to become a Guarantor under the Loan Documents by executing a Joinder Agreement.

 

NOW, THEREFORE, the Agent and the New Loan Party
hereby agree as follows:

 

1.                 
Joinder as Guarantor. In accordance with Section 6.10 of the Loan Agreement, the New Loan Party by its signature
below becomes a Guarantor under the Loan Agreement and the Guaranty with the same force and effect as if originally named therein
as a Guarantor. Each New Loan Party (a) hereby jointly and severally guarantees, as a primary obligor and not as a surety to the
Agent and each Lender and their respective successors and assigns, the prompt payment in full when due (whether at stated maturity,
by required prepayment, declaration, demand, by acceleration or otherwise) of the Guaranteed Obligations (as defined in the Guaranty),
but in any event subject to the same terms, provisions and limitations set forth in the Guaranty and (b) unconditionally grants,
assigns, and pledges to Agent, for the benefit of the Lender, to secure the Obligations, a continuing security interest in and
to all of such New Loan Party’s right, title and interest in and to the Collateral. The New Loan Party hereby ratifies, as
of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the applicable Loan Documents,
including, without limitation (a) all of the applicable representations and warranties set forth in Article V of the
Loan Agreement, (b) all of the applicable representations and warranties set forth in Section 6 of the Guaranty, (c) all of
the affirmative and negative covenants set forth in Articles VI and VII of the Loan Agreement and (d) all of the affirmative
and negative covenants set forth in Section 7 of the Guaranty. Each reference to a Guarantor in the Loan Documents shall be deemed
to include the New Loan Party.

 

2.                 
Representations and Warranties. Upon updating Schedule 9 to the Loan Agreement and updating the Perfection
Certificate, in each case, as contemplated by Section 3 below, the New Loan Party represents and warrants that each of the representations
and warranties set forth in the Loan Agreement and each other Loan Document and applicable to the undersigned is true and correct
in all material respects both before and after giving effect to this Joinder Agreement, except to the extent that any such representation
and warranty relates solely to any earlier date, in which case such representation and warranty is true and correct as of such
earlier date; provided that, in each case, such materiality qualifier shall not be applicable to any representations and warranties
that already are qualified or modified by materiality in the text thereof.

 

    
Exhibit H – Form of Joinder

     

    

3.                 
Schedules and Perfection Certificate. Attached hereto as Exhibit A is an updated Schedule 9 to the
Loan Agreement and an updated Perfection Certificate, in each case, covering the New Loan Party and its assets, all in form, content
and scope reasonably satisfactory to Agent and the Lenders.

 

4.                 
Filing Authorization. Each New Loan Party authorizes Agent at any time and from time to time to file, transmit, or
communicate, as applicable, financing statements and amendments thereto (i) describing the Collateral as “all personal property
of debtor” or “all assets of debtor” or words of similar effect, (ii) describing the Collateral as being of equal
or lesser scope or with greater detail, or (iii) that contain any information required by part 5 of Article 9 of the Code for the
sufficiency or filing office acceptance. Each New Loan Party also hereby ratifies any and all financing statements or amendments
previously filed by Agent in any jurisdiction in connection with the Loan Documents.

 

5.                 
Further Assurances. The New Loan Party agrees that at any time and from time to time, upon the written request of
the Agent and the Lenders, it will execute and deliver such further documents and do such further acts as the Agent or the Lenders
may reasonably request in accordance with the terms and conditions of the Loan Documents in order to effect the purposes of this
Joinder Agreement.

 

6.                 
Severability. Any provision of this Joinder Agreement which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

 

7.                 
Counterparts. This Joinder is a Loan Document. This Joinder Agreement may be executed in counterparts, each of which
shall constitute an original. Delivery of an executed signature page to this Joinder Agreement by facsimile or electronic transmission
shall be as effective as delivery of a manually executed counterpart of this Joinder Agreement.

 

8.                 
No Waiver. Except as expressly supplemented hereby, the Loan Documents shall remain in full force and effect.

 

9.                 
Notices. All notices, requests and demands to or upon the New Loan Party, the Agent or any Lender shall be governed
by the terms of Section 11.06 of the Loan Agreement.

 

10.             
Choice of Law and Venue; Jury Trial Waiver. THIS JOINDER AGREEMENT SHALL BE SUBJECT TO THE PROVISIONS CHOICE OF LAW
AND VENUE, JURY TRIAL WAIVER, AND WAIVERS SET FORTH IN SECTION 11.13 OF THE LOAN AGREEMENT, AND SUCH PROVISIONS ARE INCORPORATED
HEREIN BY THIS REFERENCE, MUTATIS MUTANDIS.

 

    
Exhibit H – Form of Joinder

     

    

11.             
GOVERNING LAW. THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF
THE STATE OF NEW YORK. EACH NEW LOAN PARTY AND THE AGENT HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS
LOCATED IN THE SOUTHERN DISTRICT OF NEW YORK; provided that nothing in this JOINDER AGREEMENT
shall be deemed to operate to preclude Agent or NEW LOAN PARTY from bringing suit or taking other legal action in any other jurisdiction
to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor
of Agent or such NEW LOAN PARTY.

 

[Signature Pages Follow]

 

 

 

 

 

 

 

 

 

    
Exhibit H – Form of Joinder

     

    

IN WITNESS WHEREOF, the undersigned have caused this Joinder Agreement
to be duly executed and delivered by their duly authorized officers as of the day and year first above written.

 

 

	 	 	[Name of New Loan Party]
	 	 	 
	 	 	By: 	 
	 	 		Name: 
	 	 		Title:
	 	 	 	 
	 	 	WILMINGTON TRUST, NATIONAL ASSOCIATION,
	 	 	as Agent
	 	 	 	 
	 	 	By: 	 
	 	 	 	Name: 
	 	 	 	Title:

 

 
 

 

 

 

 

    
Exhibit H – Form of Joinder

     

    

Exhibit A

 

Revised Schedule 9 and Perfection Certificate

 

 

 

 

 

 

 

 

 

 

 

 

 

    
Exhibit H – Form of Joinder

     

    

EXHIBIT I

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    
Exhibit I – Reserved

     

    

EXHIBIT J

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

 

 

    
Exhibit J – Reserved

     

    

EXHIBIT K

 

FORM OF COMPLIANCE CERTIFICATE

 

Dated as of ______ __, 20__

 

The undersigned Chief Financial Officer of Sterling
Construction Company, Inc., a Delaware corporation, (the “Borrower”), delivers this Certificate (this
“Certificate”) pursuant to that certain Loan and Security Agreement dated as of April 3, 2017, by and
among Wilmington Trust, National Association, a national banking association, as agent (the “Agent”),
the lenders party thereto from time to time (the “Lenders”), the Borrower and the guarantors party thereto
from time to time (the “Guarantors” and together with the Borrower as the “Loan Parties”)
(as the same may be amended, restated, amended and restated, supplemented, refinanced or otherwise modified from time to time,
the “Loan Agreement”). The undersigned hereby certifies to the Agent and the Lenders, as of the date
first written above, as follows:

 

1.       I
am the duly elected Chief Financial Officer of the Borrower.

 

2.       I
have reviewed the terms of the Loan Agreement, and have made, or have caused to be made under my supervision, a review in reasonable
detail of the transactions and the financial condition of the Borrower, the Guarantors and their Subsidiaries, during the immediately
preceding fiscal [quarter] [year].

 

3.       The
review described in Section 2 above did not disclose the existence during or at the end of such fiscal [quarter] [year], and I
have no knowledge of the existence and continuance on the date hereof, of any condition or event which constitutes a Default or
an Event of Default, except as set forth on Schedule I attached hereto. Described on Schedule I attached hereto are
the exceptions, if any, to this Section 3 listing, in detail, the nature of the condition or event, the period during which it
has existed and the action which the Borrower or Guarantor has taken, is taking, or proposes to take with respect to such condition
or event.

 

4.       I
further certify that, based on the review described in Section 2 above, none of the Borrower or any Guarantor has at any time during
or at the end of such fiscal [quarter] [year], except as specifically described on Schedule II attached hereto or as permitted
by the Loan Agreement, done any of the following:

 

(a)       Changed
its respective corporate name, or transacted business under any trade name, style, or fictitious name, other than those previously
described to you and set forth in the Loan Documents.

 

(b)       Changed
the location of its chief executive office, changed its jurisdiction of incorporation or organization, changed its type of organization
or organization structure or changed the location of or disposed of any of its properties or assets (other than pursuant to the
sale of inventory in the ordinary course of its business or as otherwise permitted by Section 7.02 of the Loan Agreement), or,
except as previously disclosed in writing to Agent and the Lenders, established any new asset locations.

 

(c)       Permitted
or suffered to exist any security interest in or liens on any of its properties, whether real or personal, other than as specifically
permitted in the Loan Documents.

 

    Exhibit K – Form of Compliance Certificate

     

    

5.       Attached
hereto as Schedule III are the amounts and calculations setting forth, as of the end of the immediately preceding fiscal
quarter, whether Borrowers and Guarantors are in compliance with the financial covenants set forth in Section 6.18 of the Loan
Agreement for such fiscal quarter.

 

7.       Attached
hereto as Schedule IV are any updates to the Perfection Certificate to make the Perfection Certificate most recently delivered
to the Agent and the Lenders be true, correct and complete as of the date hereof.

 

8.       Except
as set forth on Schedule V attached hereto, the representations and warranties of Borrower and its Subsidiaries set forth
in the Loan Agreement and the other Loan Documents are true and correct in all material respects (except that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in
the text thereof) on and as of the date hereof (except to the extent that such representations and warranties relate solely to
an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that
such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified
by materiality in the text thereof) as of such earlier date.

 

Capitalized terms used herein without definition
have the meanings assigned to them in the Loan Agreement.

 

 

 

 

 

 

 

    Exhibit K – Form of Compliance Certificate

     

    

 

EXECUTED AND DELIVERED as of ______________
___, 201_.

 

	 	 	STERLING CONSTRUCTION COMPANY, INC.,
	 	 	a Delaware corporation,
	 	 	 
	 	 	 
	 	 	By: 	  
	 	 	Name: 	 
	 	 	Title:	 
	 	 	 
	 	 	 

 
 

 

 

    Exhibit K – Form of Compliance Certificate

     

    

[SCHEDULE I

 

Defaults and Events of Default]

 

 

 

 

 

 

 

 

 

 

 

 

 

    Exhibit K – Form of Compliance Certificate

     

    

[SCHEDULE II

 

Fundamental Changes]

 

 

 

 

 

 

 

 

 

 

 

 

    Exhibit K – Form of Compliance Certificate

     

    

SCHEDULE III

 

Financial Covenant Calculations

as of ______________

 

(Section 6.18 of the Loan Agreement)

 

	1.	Total Secured
Leverage Ratio	 	 	 
	 	 	 	 	 
	 	a. Actual:	Total Secured Leverage Ratio1	 	$	 
	 	 	 	 	 
	 	b. Required2:	At least	 	 
	 	 	 	 	 
	 	c. Compliance:	yes/no	 	 
	 	 	 	 	 
	2.	Cash Collateral
Liquidity	 	 	 
	 	 	 	 	 
	 	a. Actual:	 	 	$	 
	 	 	 	 	 
	 	b. Required:3	At least	 	$
	 

	 	 	 	 	 
	 	c. Compliance:	yes/no	 	 
	 	 	 	 	 

 

 

 

_______________

 

		1	Please show Total Secured Leverage Ratio calculations on Exhibit A hereto.

 

		2	Minimum Total Secured Leverage Ratio for each period set forth below measured as of the last day of the applicable period,
must exceed the ratio set forth opposite such period:

 

	Period Ending	Total Secured Leverage Ratio
	June 30, 2017	3.10:1.00
	September 30, 2017	2.70:1.00
	December 31, 2017	2.45:1.00
	March 31, 2018	2.35:1.00
	June 30, 2018	2.20:1.00
	September 30, 2018	2.00:1.00
	December 31, 2018	2.00:1.00
	March 31, 2019	2.00:1.00
	June 30, 2019	1.90:1.00
	September 30, 2019 and each quarter thereafter	1.80:1.00

 

		3	Minimum Cash Collateral Liquidity, of at least the amount set forth opposite such period:

 

    Exhibit K – Form of Compliance Certificate

     

    

 

	3.	Contract Backlog	 	 	 
	 	 	 	 	 
	 	a. Actual:	 	 	$	 
	 	 	 	 	 
	 	b. Required:4	At least	 	$	 
	 	 	 	 	 
	 	c. Compliance:	yes/no	 	 
	 	 	 	 	 
	4.	Consolidated Capital Expenditure	 	 	 
	 	 	 	 	 
	 	a. Actual:	 	 	$	 
	 	 	 	 	 
	 	b. Required:5	Maximum	 	$15,000,000

	 	 	 	 	 
	 	c. Compliance:	yes/no	 	 
	 	 	 	 	 

 

 

 

 

 

 

	Period Ending	Minimum Liquidity
	Commencing on June 30, 2017 and continuing through September 30, 2017	$10,000,000
	Commencing on October 1, 2017 and continuing through April 3, 2018	$15,000,000
	Commencing on April 4, 2018 and continuing thereafter:	 
	If (A) the Secured Intercompany Note is repaid in full and no longer in force and effect, (B) the Liens on the Excluded Property securing such Secured Intercompany Note are released in their entirety and (C) such Excluded Property becomes and is deemed a part of the Collateral (the “Conditions”)	$15,000,000
	If the Conditions (as defined in the row immediately above) have not been satisfied	$18,000,000

 

		4	Maintain Contract Backlog at a minimum amount equal to or greater than the corresponding level
set forth opposite such period:

 

	Period Ending	Contract Backlog
	June 30, 2017	$60,000,000
	September 30, 2017	$60,000,000
	December 31, 2017	$60,000,000
	March 31, 2018	$65,000,000
	June 30, 2018	$65,000,000
	September 30, 2018	$65,000,000
	December 31, 2018	$65,000,000
	March 31, 2019 and each fiscal quarter thereafter	$70,000,000

 

		5	Borrower, the Guarantors and their respective Subsidiaries shall not make or incur, in each consecutive
four-fiscal quarter period, Consolidated Capital Expenditure, after deducting Net Cash Proceeds received from the Transfer of any
used equipment, in excess of $15,000,000 in the aggregate.

 

 

    Exhibit K – Form of Compliance Certificate

     

    

 

	5.	Bonding Capacity	 	 	 
	 	 	 	 	 
	 	a. Actual:	 	 	$	 
	 	 	 	 	 
	 	b. Required:	At least	 	$1,000,000,000
	 	 	 	 	 
	 	c. Compliance:	yes/no	 	 
	 	 	 	 	 
	6.	Tealstone Residential - Consolidated EBITDA	 	 
	 	 	 	 	 
	 	a. Actual:	 	 	$	 
	 	 	 	 	 
	 	b. Required:6	At least	 	$12,000,000
	 	 	 	 	 
	 	c. Compliance:	yes/no	 	 
	 	 	 	 	 

 

 

 

 

 

_______________

 

		6	Commencing with the fiscal quarter ending June 30, 2017, maintain, as of the last day of any
fiscal quarter for any four-fiscal quarter period, Consolidated EBITDA in an amount of not less than $12,000,000.

 

    Exhibit K – Form of Compliance Certificate

     

    

Exhibit A

 

Total Secured Leverage Ratio Calculations

 

Total Secured Leverage Ratio = T1 / T2:

 

	T1	Consolidated Secured Indebtedness7 as of the last day of the fiscal quarter	 	$_________  
	 	 	 	 
	T2	Consolidated EBITDA for the four-fiscal quarter period ending on such date (from Line D1 below)	 	$_________  

 

Consolidated EBITDA:8

 

	A1	Consolidated Net Income which means, for any period, the consolidated net income (or loss) of the Loan Parties and their respective Subsidiaries, determined on a consolidated basis in accordance with GAAP, which shall be set forth in the Borrower’s publicly filed financial statements as the “Net Income” or “Net Loss” line item; provided that there shall be excluded, without duplication, the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with any Loan Party or any of their respective Subsidiaries	 	$_________  

Consolidated 

Net Income
	 	 	 	 
	B1	Consolidated Interest Expense which means, for any period, total cash interest expense (including that attributable to Capital Lease Obligations) of the Loan Parties and their respective Subsidiaries for such period with respect to all outstanding Indebtedness of the Loan Parties and their respective Subsidiaries (including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing and net costs under swap agreements in respect of interest rates to the extent such net costs are allocable to such period in accordance with GAAP)	 	$_________
	 	 	 	 
	B2	provisions for Taxes based on income	 	$_________
	 	 	 	 
	B3	non-cash expenses resulting from write-downs of assets (other than inventory, accounts receivable or other current assets) and the impairment of goodwill	 	$_________
	 	 	 	 
	B4	non-cash non-recurring losses (including losses on asset sales and extinguishment of debt)	 	$_________
	 	 	 	 

 

_______________

 

		7	The aggregate amount of Indebtedness of the Loan Parties and their respective Subsidiaries that,
as of such date, is secured by a Lien on any asset or property of the Loan Parties or any of their respective Subsidiaries.

 

		8	For the purposes of calculating Consolidated EBITDA in connection with determining the Total
Secured Leverage Ratio or for the calculation of Consolidated EBITDA pursuant to Section 6.17(f) of the Loan Agreement, in each
case, for any measurement period, if at any time during such measurement period Borrower or any of its Subsidiaries shall have
made a Closing Date Acquisition or Permitted Acquisition, Consolidated EBITDA for such measurement period shall be calculated after
giving pro forma effect thereto (as if any such Closing Date Acquisition or Permitted Acquisition occurred on the first day of
such measurement period).

 

    Exhibit K – Form of Compliance Certificate

     

    

	 	 	 	 
	B5	total depreciation expense	 	$_________
	 	 	 	 
	B6	total amortization expense	 	$_________
	 	 	 	 
	B7	non-cash stock-based compensation expense	 	$_________
	 	 	 	 
	B8	to the extent less than Twelve Million Dollars ($12,000,000) is received from the NTTA Matter, an amount equal to the difference between Twelve Million Dollars ($12,000,000) and such amount so received; provided that, such add-back pursuant to this Line B8 shall be taken in the fiscal quarter in which such amount is received by the Borrower	 	$_________
	 	 	 	 
	B9	one-time non-recurring costs and expenses incurred in connection with the Transactions in an amount not to exceed Six Million Dollars ($6,000,000) to the extent disclosed to Agent and the Lenders in a sources of uses or funds flow on or prior to the Closing Date	 	$_________
	 	 	 	 
	B10	The sum, without duplication, of the amounts for such period, but solely to the extent decreasing Consolidated Net Income for such period, of Line B1 through Line B9 	 	$_________
	 	 	 	 
	C1	non-cash non-recurring gains (including gains on asset sales and extinguishment of debt)	 	$_________
	 	 	 	 
	C2	interest income	 	$_________
	 	 	 	 
	C3	any benefit, including income tax credits and refunds, from income taxes (including franchise, gross receipts and single business taxes imposed in lieu of income taxes)	 	$_________
	 	 	 	 
	C4	to the extent more than Twelve Million Dollars ($12,000,000) is received from the NTTA Matter, an amount equal to the difference between Twelve Million Dollars ($12,000,000) and such amount so received; provided that, such deduction pursuant to this Line C4 shall be taken in the fiscal quarter in which such amount is received by the Borrower	 	$_________
	 	 	 	 
	C5	any amount shown on the consolidated statement of cash flows of Borrower on the line item “distributions to non-controlling interest owners”	 	$_________
	 	 	 	 
	C6	The sum, without duplication, of the amounts for such period, but solely to the extent increasing Consolidated Net Income for such period, of Line C1 through Line C5	 	$_________
	 	 	 	 
	D1	Line A1 plus Line B10 minus Line C6	 	
        $_________

        Consolidated 

EBITDA

 

 

    Exhibit K – Form of Compliance Certificate

     

    

[SCHEDULE IV

 

Perfection Certificate]

 

 

 

 

 

 

 

 

 

    Exhibit K – Form of Compliance Certificate

     

    

[SCHEDULE V

 

Representations and Warranties]

 

 

 

 

 

 

 

 

 

 

 

 

    
Exhibit K – Form of Compliance Certificate

     

    

EXHIBIT L-1

 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Loan and Security
Agreement dated as of April 3, 2017 (as the same may be amended, restated, amended and restated, supplemented, refinanced or otherwise
modified from time to time, the “Loan Agreement”), by and among Sterling Construction Company, Inc.,
a Delaware corporation (“Borrower”), the guarantors party thereto from time to time, Wilmington Trust,
National Association, a national banking association, as agent, and each lender party thereto from time to time.

 

Pursuant to the provisions of Section
2.05(f)(iii)(C) of the Loan Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner
of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is
not a bank within the meaning of Section 881(c)(3)(A) of the IRC, (iii) it is not a ten-percent shareholder of the Borrower within
the meaning of Section 871(h)(3)(B) of the IRC and (iv) it is not a controlled foreign corporation related to the Borrower as described
in Section 881(c)(3)(C) of the IRC.

 

The undersigned has furnished the Agent and
the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E, as applicable (or an applicable successor
form). By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes,
the undersigned shall promptly so inform the Borrower and the Agent, and (2) the undersigned shall have at all times furnished
the Borrower and the Agent with a properly completed and currently effective certificate in either the calendar year in which each
payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined
in the Loan Agreement and used herein shall have the meanings given to them in the Loan Agreement.

 

[NAME OF LENDER]

 

	By: 	 	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 
	Date:	_____________ __, 20[  ]	 	 
	 	 	 
	 	 	 

 

 

 

    
Exhibit L-1 – Form of U.S. Tax Compliance Certificate

     

    

EXHIBIT L-2

 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Loan and Security
Agreement dated as of April 3, 2017 (as the same may be amended, restated, amended and restated, supplemented, refinanced or otherwise
modified from time to time, the “Loan Agreement”), by and among Sterling Construction Company, Inc.,
a Delaware corporation (“Borrower”), the guarantors party thereto from time to time, Wilmington Trust,
National Association, a national banking association, as agent, and each lender party thereto from time to time.

 

Pursuant to the provisions of Section
2.05(f)(iii)(D) of the Loan Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner
of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section
881(c)(3)(A) of the IRC, (iii) it is not a ten-percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of
the IRC, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the
IRC.

 

The undersigned has furnished its participating
Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E, as applicable (or an applicable successor
form). By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes,
the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such
Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be
made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined
in the Loan Agreement and used herein shall have the meanings given to them in the Loan Agreement.

 

[NAME OF LENDER]

 

	By: 	 	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 
	Date:	_____________ __, 20[  ]	 	 
	 	 	 
	 	 	 

 

 

 

 

    
Exhibit L-2 – Form of U.S. Tax Compliance Certificate

     

    

EXHIBIT L-3

 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Loan and Security
Agreement dated as of April 3, 2017 (as the same may be amended, restated, amended and restated, supplemented, refinanced or otherwise
modified from time to time, the “Loan Agreement”), by and among Sterling Construction Company, Inc.,
a Delaware corporation (“Borrower”), the guarantors party thereto from time to time, Wilmington Trust,
National Association, a national banking association, as agent, and each lender party thereto from time to time.

 

Pursuant to the provisions of Section
2.05(f)(iii)(D) of the Loan Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation
in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners
of such participation, (iii) with respect to such participation, neither the undersigned nor any of its direct or indirect partners/members
is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the
meaning of Section 881(c)(3)(A) of the IRC, (iv) none of its direct or indirect partners/members is a ten-percent shareholder of
the Borrower within the meaning of Section 871(h)(3)(B) of the IRC and (v) none of its direct or indirect partners/members is a
controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the IRC.

 

The undersigned has furnished its participating
Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio
interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E, as applicable (or an applicable successor form), or (ii) an IRS Form W-8IMY
accompanied by an IRS Form W-8BEN or W-8BEN-E, as applicable (or an applicable successor form), from each of such partner’s/member’s
beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that
(1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned
shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar
year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined
in the Loan Agreement and used herein shall have the meanings given to them in the Loan Agreement.

 

[NAME OF LENDER]

 

	By: 	 	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 
	Date:	_____________ __, 20[  ]	 	 
	 	 	 

 

 

 

    
Exhibit L-3 – Form of U.S. Tax Compliance Certificate

     

    

EXHIBIT L-4

 

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Loan and Security
Agreement dated as of April 3, 2017 (as the same may be amended, restated, amended and restated, supplemented, refinanced or otherwise
modified from time to time, the “Loan Agreement”), by and among Sterling Construction Company, Inc.,
a Delaware corporation (“Borrower”), the guarantors party thereto from time to time, Wilmington Trust,
National Association, a national banking association, as agent, and each lender party thereto from time to time.

 

Pursuant to the provisions of Section
2.05(f)(iii)(D) of the Loan Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s)
(as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect
partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect
to the extension of credit pursuant to this Loan Agreement or any other Loan Document, neither the undersigned nor any of its direct
or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its
trade or business within the meaning of Section 881(c)(3)(A) of the IRC, (iv) none of its direct or indirect partners/members is
a ten-percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the IRC and (v) none of its direct or indirect
partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the IRC.

 

The undersigned has furnished the Agent and
the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming
the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E, as applicable (or an applicable successor form), or (ii)
an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or W-8BEN-E, as applicable (or an applicable successor form), from each of
such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By executing this certificate,
the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform
the Borrower and the Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Agent with a properly
completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned,
or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined
in the Loan Agreement and used herein shall have the meanings given to them in the Loan Agreement.

 

[NAME OF LENDER]

 

	By: 	 	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 
	Date:	_____________ __, 20[  ]	 	 
	 	 	 

 

 

    
Exhibit L-4 – Form of U.S. Tax Compliance Certificate

     

    

EXHIBIT M

 

FORM OF MORTGAGE

 

 

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,
YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS:
YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

 

	When recorded, return to:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	STATE OF TEXAS	 	§
	 	 	§   	KNOW ALL MEN BY THESE PRESENTS:
	COUNTY OF 	 	 	§
	 	 	§
	 	 	 

 

 

DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF RENTS, 

AND FINANCING STATEMENT

 

THIS DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT
OF RENTS AND FINANCING STATEMENT (“Deed of Trust”), is effective as of [], 20[__], by [______________],
a [__________] (“Grantor”), whose address for notice hereunder is [1800 Hughes Landing Blvd., Suite 250, The
Woodlands, TX 77380], and conveyed to [___________], as trustee (“Trustee”) , whose address is [],
for the benefit of WILMINGTON TRUST, NATIONAL ASSOCIATION, as Agent under the Loan Agreement (as defined below) (the “Beneficiary”),
whose address is Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890.

 

RECITALS:

 

WHEREAS, pursuant to that certain Loan
and Security Agreement, dated as of April 3, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified
from time to time, the “Loan Agreement”), by and among Grantor, the guarantors party thereto, the Beneficiary
and the Lenders, the Lenders have provided to the Borrower a term loan credit facility in an aggregate principal amount not to
exceed $85,000,000.00;

 

WHEREAS, it is a condition to the Lenders’
obligation to make and maintain such extension of credit that Grantor execute and deliver this Deed of Trust to the Trustee; and

 

WHEREAS, this Deed of Trust is given
by the Grantor to the Trustee for the benefit of the Beneficiary to secure the payment and performance of all of the Obligations.

 

    Exhibit M – Form of Mortgage

     

    

AGREEMENT:

 

Article
1.

 

Definitions

 

Capitalized terms used but not defined herein
shall have the respective meanings given thereto in the Loan Agreement. As used herein, the following terms shall have the following
meanings:

 

(a)               
“Beneficiary” shall have the meaning assigned to such term in the Preamble hereof.

 

(b)              
“Buildings” shall mean any and all buildings, structures and other improvements, and any appurtenances
thereto, now or at any time hereafter situated, placed or constructed upon the Land, Collateral, or any part thereof.

 

(c)               
“Collateral” shall have the meaning ascribed to such term in Section 2.1.

 

(d)              
“Event of Default” shall have the meaning ascribed to such term in the Loan Agreement.

 

(e)               
“Fixtures” shall mean all machinery, apparatus, equipment, fittings, fixtures, improvements and articles
of personal property of every kind, description and nature whatsoever now or hereafter attached or affixed to the Land, Buildings
or any other improvement used in connection with the use and enjoyment of the Land, Buildings or any other improvement or the maintenance
or preservation thereof, which by the nature of their location thereon or attachment thereto are real property or fixtures under
the UCC or any other applicable laws, including, without limitation, all HVAC equipment, boilers, electronic data processing, telecommunications
or computer equipment, refrigeration, electronic monitoring, power, waste removal, elevators, maintenance or other systems or equipment,
utility systems, fire sprinkler and security systems, drainage facilities, lighting facilities, all water, sanitary and storm sewer,
drainage, electricity, steam, gas, telephone and other utility equipment and facilities, pipes, fittings and other items of every
kind and description now or hereafter attached to or located on the Land.

 

(f)               
“Governmental Authority” shall have the meaning ascribed to such term in the Loan Agreement.

 

(g)              
“Grantor” shall have the meaning assigned to such term in the Preamble hereof.

 

(h)              
“Impositions” shall mean all real estate and personal property taxes; water, gas, sewer, electricity
and other utility rates and charges; charges for any easement, license or agreement maintained for the benefit of the Property;
and all other taxes and charges of any kind and nature whatsoever which at any time prior to or after the execution hereof may
be assessed, levied or imposed upon the Property or the use, occupancy or enjoyment thereof.

 

    Exhibit M – Form of Mortgage

     

    

(i)                
“Land” shall mean the real property or interest therein described in Exhibit A attached hereto,
and all rights, titles and interest appurtenant thereto, including any improvements.

 

(j)                
 “Leases” shall mean, collectively, any and all interests of the Grantor, as landlord, in all leases
and subleases of space, tenancies, franchise agreements, licenses, occupancy or concession agreements now existing or hereafter
entered into, whether or not of record, relating in any manner to the Land or the Buildings and any and all amendments, modifications,
supplements, replacements, extensions and renewals of any thereof, whether now in effect or hereafter coming into effect.

 

(k)              
“Lender” shall have the meaning ascribed to such term in the Loan Agreement.

 

(l)                
“Lien” shall have the meaning ascribed to such term in the Loan Agreement.

 

(m)            
“Loan Agreement” shall have the meaning assigned to such term in the Recitals hereof.

 

(n)              
“Loan Documents” shall have the meaning ascribed to such term in the Loan Agreement.

 

(o)              
“Material Adverse Effect” shall have the meaning ascribed to such term in the Loan Agreement.

 

(p)              
“Obligations” shall have the meaning ascribed to such term in the Loan Agreement.

 

(q)              
“Permitted Liens” shall have the meaning ascribed to such term in the Loan Agreement.

 

(r)                
“Proceeds” shall mean, collectively, any and all cash proceeds and noncash proceeds and shall include
all (i) proceeds of the conversion, voluntary or involuntary, of any of the Collateral or any portion thereof into cash or liquidated
claims, (ii) proceeds of any insurance, indemnity, warranty, guaranty or claim payable to the Beneficiary or to the Grantor from
time to time with respect to any of the Collateral, (iii) payments (in any form whatsoever) made or due and payable to the Grantor
from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any portion of
the Collateral by any Governmental Authority (or any person acting on behalf of a Governmental Authority), (iv) products of the
Collateral and (v) other amounts from time to time paid or payable under or in connection with any of the Collateral, including,
without limitation, refunds of real estate taxes and assessments, including interest thereon.

 

(s)               
“Property” shall mean the Land, Buildings and Fixtures, together with:

 

		i.	all rights, privileges, tenements, hereditaments, rights-of-way, easements, appendages and appurtenances
in anywise appertaining thereto, and all right, title and interest, if any, of Grantor in and to any streets, ways, alleys, strips
or gores of land adjoining the Land or any part thereof; and
	 	 	 
	

    Exhibit M – Form of Mortgage

     

    

	 	 	 

		ii.	all betterments, additions, alterations, improvements, appurtenances, substitutions, replacements
and revisions thereof and thereto and all reversions and remainders therein; and
	 	 	 

		iii.	all of Grantor’s right, title and interest in and to any awards, remunerations, reimbursements,
settlements or compensation heretofore made or hereafter to be made by any Governmental Authority pertaining to the Land, Buildings
or Fixtures, including, but not limited to, those for any vacation of, or change of grade in, any streets affecting the Land or
the Buildings and those for municipal utility district or other utility costs incurred in connection with the Land; and
	 	 	 

		iv.	all rights to utility availability applicable to the Land granted by any city, municipal utility
district or other governmental or quasi-governmental authority.

As used in this Deed of Trust, the
term “Property” shall be expressly defined as meaning all, or where the context permits or requires, any portion, of
the above, and all or, where the context permits or requires, any interest therein.

 

(t)                
“Records” shall mean, collectively, any and all right, title and interest of the Grantor in and to any
and all drawings, plans, specifications, file materials, operating and maintenance records, catalogues, tenant lists, correspondence,
advertising materials, operating manuals, warranties, guarantees, appraisals, studies and data relating to the Collateral or the
construction of any alteration relating to the Land or Buildings.

 

(u)              
“Rents” shall mean, collectively, any and all rents, additional rents, royalties, cash, guaranties, letters
of credit, bonds, sureties or securities deposited under any Lease to secure performance of the tenant’s obligations thereunder,
revenues, earnings, profits and income, advance rental payments, payments incident to assignment, sublease or surrender of a Lease,
claims for forfeited deposits and claims for damages, now due or hereafter to become due, with respect to any Lease, any indemnification
against, or reimbursement for, sums paid and costs and expenses incurred by the Grantor under any Lease or otherwise, and any award
in the event of the bankruptcy of any tenant under or guarantor of a Lease.

 

(v)              
“UCC” means the Uniform Commercial Code as adopted in the State of Texas, as amended or otherwise modified
from time to time.

 

    Exhibit M – Form of Mortgage

     

    

Article
2.

 

Grant

 

2.1             
Grant of Collateral. To secure the full and timely payment of the Obligations, and
in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00) and other valuable consideration in hand paid by Beneficiary to
Grantor, the receipt and legal sufficiency of which are hereby acknowledged, Grantor hereby GRANTS, BARGAINS, ASSIGNS, SELLS and
CONVEYS unto the Trustee, its successors and assigns, in trust, with power of sale and right of entry and possession, for the
use and benefit of the Beneficiary, and hereby grants on behalf of and for the Beneficiary (for the benefit of the Lenders), a
security interest in and upon, all of the Grantor’s estate, right, title and interest in, to and under all the following
described property, whether now owned or held or hereafter acquired from time to time (collectively, the “Collateral”):

 

(a)               
Property;

 

(b)              
Leases;

 

(c)               
Rents;

 

(d)              
Records; and

 

(e)               
Proceeds

 

TO HAVE AND TO HOLD the Collateral, IN TRUST FOREVER, with power
of sale, together with all estate, right, title and interest of the Grantor and anyone claiming by, through or under the Grantor
in and to the Collateral and all rights and appurtenances relating thereto, unto the Trustee, its successors and assigns, for the
benefit of the Beneficiary for the purpose of securing the payment and performance in full of all the Obligations.

 

2.2             
Secured Obligations1.1. This Deed of Trust secures, and the Collateral is collateral
security for, the payment and performance in full when due of the Obligations.

 

2.3             
Future Advances. This Deed of Trust shall secure all Obligations, including, without limitation, future advances
whenever hereafter made with respect to or under the Loan Agreement or the other Loan Documents and shall secure not only Obligations
with respect to presently existing indebtedness under the Loan Agreement or the other Loan Documents, but also any and all other
indebtedness which may hereafter be owing by the Grantor to the Lenders under the Loan Agreement or the other Loan Documents, however
incurred, whether interest, discount or otherwise, and whether the same shall be deferred, accrued or capitalized, including future
advances and re-advances, pursuant to the Loan Agreement or the other Loan Documents, whether such advances are obligatory or to
be made at the option of the Lenders, or otherwise, and any extensions, refinancings, modifications or renewals of all such Obligations
whether or not Grantor executes any extension agreement or renewal instrument and, in each case, to the same extent as if such
future advances were made on the date of the execution of this Deed of Trust.

 

    Exhibit M – Form of Mortgage

     

    

2.4             
No Release. Nothing set forth in this Deed of Trust shall relieve the Grantor from the performance of any term, covenant,
condition or agreement on the Grantor’s part to be performed or observed under or in respect of any of the Collateral or
from any liability to any person under or in respect of any of the Collateral or shall impose any obligation on the Trustee, Beneficiary
or any Lender to perform or observe any such term, covenant, condition or agreement on the Grantor’s part to be so performed
or observed or shall impose any liability on the Trustee, Beneficiary or any Lender for any act or omission on the part of the
Grantor relating thereto or for any breach of any representation or warranty on the part of the Grantor contained in this Deed
of Trust or any other Loan Document, or under or in respect of the Collateral or made in connection herewith or therewith. The
obligations of the Grantor contained in this Section 2.4 shall survive the termination hereof and the discharge of the Grantor’s
other obligations under this Deed of Trust and the other Loan Documents.

 

Article
3.

 

Affirmative Covenants

 

Grantor hereby unconditionally covenants and
agrees as follows:

 

3.1             
First Lien Status: Except for Permitted Liens, Grantor will protect the first lien status of this Deed of Trust.
Except for Permitted Liens, Grantor will not place, or permit to be placed, or otherwise mortgage, hypothecate or encumber the
Collateral with, any other Lien, regardless of whether same is allegedly or expressly inferior to the Lien created by this Deed
of Trust, and, if any such Lien is asserted against the Collateral, Grantor will promptly, but in no event more than thirty (30)
days after receiving notice of same, give Beneficiary notice of such Lien, and at its own cost and expense pay the underlying claim
in full, take such other action so as to cause same to be released, or bond around same.

 

3.2             
Repair: Grantor will keep the Collateral in good condition and will make all repairs,
replacements, and improvements thereof and thereto which are necessary or reasonably appropriate to keep the same in such order
and condition (but in no event in a better condition than the condition as of the date hereof), except where the failure to do
so would not reasonably be expected to result in a Material Adverse Effect, and will prevent any act or occurrence which might
impair the value of the Collateral, except where the failure to do so would not reasonably be expected to result in a Material
Adverse Effect.

 

3.3             
Authority: Grantor hereby represents and warrants that it has full power and authority to make and enter into this
Deed of Trust and all necessary consents and approvals of any persons, entities, governmental or regulatory authorities and securities
exchanges have been obtained to effectuate the validity of this Deed of Trust.

 

3.4             
Only Deed of Trust: Grantor hereby represents and warrants that no other Deed of Trust has been made and no other
security interest, other than the one created by this Deed of Trust, has attached to or been perfected on the Collateral and that
no financing statement covering the same has been filed in any jurisdiction, except those for which the underlying debt has been
paid-off in full and which Grantor shall promptly hereafter obtain releases of lien with respect to same.

 

    Exhibit M – Form of Mortgage

     

    

3.5             
Insurance: Grantor will keep all insurable Collateral insured against the risks covered by policies of fire, casualty,
and other extended coverage insurance and such other risk as required in the Loan Agreement.

 

3.6             
Taxes: Grantor will pay all material Taxes and assessments against or affecting the Collateral as the same become
due and delinquent.

 

3.7             
Due on Sale: Except as otherwise permitted in the Loan Agreement, if the Grantor sells, conveys, or alienates all
of any portion of the Collateral described herein, or shall be divested of title or any interest of the Collateral in any manner
or way, whether voluntary or involuntary, any indebtedness or obligation under the Note secured hereby shall immediately become
due and payable. In any of the events or circumstances described in this provision shall occur prior to the maturity date of the
Note, the maturity date of the Note shall be automatically accelerated, and shall be the date any such event or circumstance occurs.

 

Article
4.

 

Negative Covenants

 

Grantor hereby covenants and agrees that, until
all of the Obligations (other than contingent indemnity Obligations) have been paid in full and fully performed and discharged:

 

4.1             
Use Violations: Grantor will not use, maintain, operate or occupy, or knowingly allow the use, maintenance, operation
or occupancy of, the Collateral in any manner which (a) violates any requirement of law, (b) may be dangerous unless safeguarded
as required by all requirements of law or (c) constitutes a public or private nuisance, in each case such as could reasonably be
expected to have a Material Adverse Effect.

 

4.2             
Waste: Grantor will not commit or permit any waste of the Collateral such as could reasonably be expected to have
a Material Adverse Effect.

 

4.3             
Prohibition of Transfer or Encumbrance: Except as otherwise permitted by the Loan Agreement, the Grantor shall not
encumber, sell, transfer, or otherwise dispose, whether by operation of law or otherwise, of all or any part of the Collateral.
Except for Permitted Liens, Grantor shall not in any way create or permit to exist any Lien with respect to any of the Collateral.

 

4.4             
No Subordinate Loan or Mortgage: Grantor will not, without the prior written consent of Trustee, execute or deliver
any pledge, security agreement, mortgage or deed of trust covering all or any portion of the Collateral.

 

Article
5.

 

Remedies and Foreclosure

 

5.1             
Remedies: If an Event of Default shall occur and such default remains uncured following the expiration of applicable
notice and cure periods, the Beneficiary may, at Beneficiary’s sole election and by or through the Trustee or otherwise,
exercise any or all of the following rights, remedies and recourses:

 

    Exhibit M – Form of Mortgage

     

    

(a)               
Acceleration: Declare the Obligations to be immediately due and payable, without notice of intent to accelerate,
notice of acceleration or any further notice, presentment, protest, demand or action of any nature whatsoever (each of which hereby
is expressly waived by Grantor), whereupon the same become immediately due and payable.

 

(b)              
Entry on Property: Enter upon the Property and take exclusive possession of the Collateral and of all books and records
relating thereto. Beneficiary may invoke any and all legal remedies to dispossess Grantor, including specifically one or more actions
for forcible detainer, trespass to try title and writ of restitution.

 

(c)               
Operation of Collateral: Hold, lease, manage, operate or otherwise use or permit the use of the Collateral, either
by itself or by other persons, entities, in such manner, for such time and upon such other terms as Beneficiary may deem to be
prudent and reasonable under the circumstances.

 

(d)              
Foreclosure and Sale: Sell or offer for sale the Collateral in such portions, order and parcels as Beneficiary may
determine, with or without having first taken possession of same, to the highest bidder for cash at public auction. Such sale shall
be made at the location designated by the commissioner’s court of the county where the Land is situated pursuant to V.T.C.A.
Property Code Section 51.002 or if no such designation has been made, at the courthouse door of the county where the Land is situated
(or if the Land is situated in more than one county, then the Collateral shall be sold at the designated location or the courthouse
door of any of such counties as designated in the notices of sale provided for herein) on the first Tuesday of any month between
10:00 A.M. and 4:00 P.M. after giving adequate legal notice of the time, place and terms of sale, by posting or causing to be posted
written or printed notices thereof for at least twenty-one (21) consecutive days preceding the date of said sale at the courthouse
door of the foregoing county, and if the Land is situated in more than one county, one notice shall be posted at the courthouse
door of each county in which the Land is situated, and by Beneficiary serving written notice of such proposed sale on each debtor
obligated to pay the Obligations, at least twenty-one (21) days preceding the date of said sale by certified mail at the most recent
address for such parties in the records of Beneficiary, or by accomplishing all or any of the aforesaid in such manner as permitted
or required by V.T.C.A. Property Code Section 51.002 (as now written or as hereafter amended or succeeded) relating to the sale
of real estate and/or by Chapter 9 of the UCC relating to the sale of collateral after default by a debtor, or by any other present
or subsequent laws. At any such sale (i) Trustee shall not be required to have physically present, or to have constructive
possession of, the Collateral (Grantor hereby covenants and agrees to deliver to Trustee any portion of the Collateral not actually
or constructively possessed by Trustee immediately upon demand by Trustee) and the title to and right of possession of any such
property shall pass to the purchaser thereof as completely as if the same had been actually present and delivered to purchaser
at such sale; (ii) each instrument of conveyance executed by Trustee shall contain a general warranty of title, binding upon Grantor;
(iii) each and every recital contained in any instrument of conveyance made by Trustee shall conclusively establish the truth
and accuracy of the matters recited therein, including, without limitation, nonpayment of the Obligations, advertisement and conduct
of such sale in the manner provided herein and otherwise by law and by appointment of any successor Trustee hereunder; (iv) any
and all prerequisites to the validity of such sale shall be conclusively presumed to have been performed; (v) the receipt of Trustee
or of such other party making the sale shall be a sufficient discharge to the purchaser for his purchase money and no such purchaser,
or his assigns or personal representatives, shall thereafter be obligated to see to the application of such purchase money or be
in any way answerable for any loss, misapplication or nonapplication thereof; (vi) Grantor shall be completely and irrevocably
divested of all of its right, title, interest, claim and demand whatsoever, either at law or in equity, in and to the Collateral
sold and such sale shall be a perpetual bar both at law and in equity against Grantor, and against any and all other persons claiming
or to claim the Collateral sold or any part thereof; and (vii) Beneficiary may be a purchaser at any such sale.

 

    Exhibit M – Form of Mortgage

     

    

(e)               
Deficiency. In the event the Collateral is sold at any foreclosure sale hereunder, and the proceeds thereof are not
sufficient to satisfy all of the indebtedness secured hereby, then the holder of the indebtedness secured hereby may bring an action
seeking recovery of such deficiency. In such event, Grantor may have the right, pursuant to relevant state law, to request that
a determination of the fair market value of the Collateral as of the date of the foreclosure sale be made.

 

(f)               
Trustee or Receiver: Upon, or at any time after, commencement of foreclosure of the Lien provided for herein or any
legal proceedings hereunder, make application to a court of competent jurisdiction as a matter of strict right and without notice
to Grantor or regard to the adequacy of the Collateral for the repayment of the Obligations, for appointment of a receiver of the
Collateral, and Grantor does hereby irrevocably consent to such appointment. Any such receiver shall have all the usual powers
and duties of receivers in similar cases, including the full power to rent, maintain and otherwise operate the Collateral upon
such terms as may be approved by the court, and shall apply such Rents in accordance with the provisions of Section 2.04(d) of
the Loan Agreement.

 

(g)              
Other: Exercise any and all other rights, remedies and recourses granted under the Loan Documents (including, without
limitation, those set forth in Articles 6 and 8 herein below) or now or hereafter existing in equity, at law, by virtue of statute
or otherwise.

 

5.2             
Separate Sales and Installment Sales: The Property may be sold in one or more parcels and in such manner and order
as Trustee, in his sole discretion, may elect, it being expressly understood and agreed that the right of sale arising out of any
Event of Default shall not be exhausted by any one or more sales.

 

5.3             
Remedies Cumulative. Concurrent and Nonexclusive: Beneficiary shall have all rights, remedies and recourses granted
in the Loan Documents or herein and available at law or equity (including specifically those granted by the UCC in effect and applicable
to the Collateral or any portion thereof and same (a) shall be cumulative and concurrent, (b) may be pursued separately, successively
or concurrently against Grantor or others obligated to repay amounts advanced pursuant to the Loan Agreement, or against the Collateral,
or against any one or more of them, at the sole discretion of Beneficiary, (c) may be exercised as often as occasion therefor shall
arise, it being agreed by Grantor that the exercise or failure to exercise any of same shall in no event be construed as a waiver
or release thereof or of any other right, remedy or recourse and (d) are intended to be, and shall be, nonexclusive).

 

    Exhibit M – Form of Mortgage

     

    

5.4             
No Conditions Precedent to Exercise of Remedies: Neither Grantor nor any other person hereafter obligated for payment
of all or any part of the Obligations shall be relieved of such obligation by reason of (a) the failure of Trustee to comply with
any request of Grantor or of any other person so obligated to foreclose the lien of this Deed of Trust or to enforce any provisions
of the other Loan Documents, (b) the release, regardless of consideration, of the Collateral or the addition of any other property
to the Collateral, (c) any agreement or stipulation between any subsequent owner of the Collateral and Beneficiary extending, renewing,
rearranging or in any other way modifying the terms of the Loan Documents without first having obtained the consent of, given notice
to or paid any consideration to Grantor or such other person, and in such event Grantor and all such other persons shall continue
to be liable to make payment according to the terms of any such extension or modification agreement unless expressly released and
discharged in writing by Beneficiary or (d) by any other act or occurrence save and except the complete payment and fulfillment
of the Obligations.

 

5.5             
Release of and Resort to Collateral: Beneficiary may release, regardless of consideration, any part of the Collateral
without, as to the remainder, in any way impairing, affecting, subordinating or releasing the Lien created in or evidenced by this
Deed of Trust or its priority status. For payment of the Obligations, Beneficiary may resort to any other security therefor held
by Trustee in such order and manner as Beneficiary may elect.

 

5.6             
WAIVER OF REDEMPTION. NOTICE AND MARSHALLING OF ASSETS: (a) notwithstanding
the provisions of Sections 51.003, 51.004 and 51.005 of the Texas Property Code (as the same may be amended from time to time),
TO THE FULLEST EXTENT PERMITTED BY LAW, GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES AND RELEASES (A) ALL BENEFIT
THAT MIGHT ACCRUE TO GRANTOR BY VIRTUE OF ANY PRESENT OR FUTURE LAW EXEMPTING THE COLLATERAL FROM ATTACHMENT, LEVY OR SALE ON EXECUTION
OR PROVIDING FOR ANY STAY OF EXECUTION, EXEMPTION FROM CIVIL PROCESS, REDEMPTION OR EXTENSION OF TIME FOR PAYMENT, (B) ALL NOTICES
OF ANY EVENT OF DEFAULT (EXCEPT AS OTHERWISE PROVIDED FOR IN THE LOAN AGREEMENT OR HEREIN) OR OF TRUSTEE’S ELECTION TO EXERCISE
OR HIS ACTUAL EXERCISE OF ANY RIGHT, REMEDY OR RECOURSE PROVIDED FOR UNDER THE LOAN DOCUMENTS AND (C) ANY RIGHT TO A MARSHALLING
OF ASSETS OR A SALE IN INVERSE ORDER OF ALIENATION. Grantor expressly recognizes that this Section 5.6 constitutes a waiver of
the above-cited provisions of the Texas Property Code, which would otherwise permit Grantor and other persons against whom recovery
of deficiencies is sought or any guarantor independently (even absent the initiation of deficiency proceedings against them) to
present competent evidence of the fair market value of the Collateral as of the date of the foreclosure sale and offset against
any deficiency the amount by which the foreclosure sale price is determined to be less than such fair market value. Grantor further
recognizes and agrees that this waiver creates an irrebuttable presumption that the foreclosure sale price is equal to the fair
market value of the Collateral for purposes of calculating deficiencies owed by Grantor, any guarantor and others against whom
recovery of a deficiency is sought.

 

    Exhibit M – Form of Mortgage

     

    

(b)       Alternatively,
in the event the waiver provided for in Section 5.6(a) is determined by a court of competent jurisdiction to be unenforceable,
the following shall be the basis for the finder of fact’s determination of the fair market value of the Collateral as of
the date of the foreclosure sale in proceedings governed by Sections 51.003, 51.004 and 51.005 of the Texas Property Code (as amended
from time to time): (a) the Collateral shall be valued in an “as is” condition as of the date of the foreclosure sale,
without any assumption or expectation that the Collateral will be repaired or improved in any manner before a resale of the Property
after foreclosure; (b) the valuation shall be based upon an assumption that the foreclosure purchaser desires a resale of the Collateral
for cash promptly (but no later than twelve (12) months) following the foreclosure sale; (c) all reasonable closing costs customarily
borne by the seller in commercial real estate transactions should be deducted from the gross fair market value of the Collateral,
including, without limitation, brokerage commissions, title insurance, a survey of the Collateral, tax prorations, attorney’s
fees, and marketing costs; (d) the gross fair market value of the Collateral shall be further discounted to account for any estimated
holding costs associated with maintaining the Collateral pending sale, including, without limitation, utilities expenses, property
management fees, taxes and assessments (to the extent not accounted for in (iii) above), and other maintenance, operational and
ownership expenses; and (e) any expert opinion testimony given or considered in connection with a determination of the fair market
value of the Collateral must be given by persons having at least five (5) years’ experience in appraising property similar
to the Collateral and who have conducted and prepared a complete written appraisal of the Collateral taking into consideration
the factors set forth above.

 

5.7             
Discontinuance of Proceedings: In case Beneficiary shall have proceeded to invoke any right, remedy or recourse permitted
under the Loan Documents and shall thereafter elect to discontinue or abandon same for any reason, Beneficiary shall have the unqualified
right so to do and, in such an event, Grantor and Beneficiary shall be restored to their former positions with respect to the Obligations,
the Loan Documents, the Collateral and otherwise, and the rights, remedies, recourses and powers of Beneficiary shall continue
as if same had never been invoked.

 

5.8             
Application of Proceeds: The proceeds of any sale of and other amounts generated by the holding, leasing, operation
or other use of, the Collateral shall be applied by Beneficiary or Trustee (or the receiver, if one is appointed) to the extent
that funds are so available therefrom in the manner set forth in Section 2.04(d) of the Loan Agreement.

 

Article
6.

 

Security Agreement

 

Grantor hereby grants to Beneficiary a security
interest in and to certain property as follows:

 

6.1             
Grant: The This Deed of Trust shall also constitute and serve as a “Security Agreement” on personal property
within the meaning of, and shall constitute a first and prior security interest under Chapter 9 of the UCC, with respect to the
Fixtures, Leases and Rents, subject only to Permitted Liens. To this end, Grantor has granted, bargained, conveyed, assigned, transferred
and set over, and by these presents does grant, bargain, convey, assign, transfer and set over, unto Trustee, for the benefit of
Beneficiary as a secured party, a first and prior security interest (subject only to Permitted Liens) and all of Grantor’s
right, title and interest in, to and under the Fixtures, Leases and Rents, in trust, to secure the full and timely payment and
performance of the Obligations.

 

    Exhibit M – Form of Mortgage

     

    

6.2             
Assignee. Beneficiary, as well as Trustee on Beneficiary’s behalf, shall have all the rights, remedies and
recourses with respect to the Fixtures, Leases and Rents afforded a “Secured Party” by Chapter 9 of the UCC and afforded
an “Assignee” by Chapter 64 of the Texas Property Code, as now written or as hereafter amended or succeeded, in addition
to, and not in limitation of, the other rights, remedies and recourses afforded Beneficiary or Trustee by the Loan Documents.

 

6.3             
No Possession: The security interest herein granted shall not be deemed or construed to constitute Trustee or Beneficiary
as a party in possession of the Property, to obligate Trustee or Beneficiary to lease the Property, or to take any action, incur
any expenses or perform any obligation whatsoever under any of the Leases or otherwise.

 

6.4             
Financing Statement: As to the Fixtures, Leases and Rents, this Deed of Trust shall be effective as a financing statement
when filed for record in the Deed of Trust Records of any county in which any portion of the Land is located. The record owner
of the Land is Grantor, whose mailing address for purposes of such financing statement is set forth in the opening recital hereinabove.
Information concerning the security interest created by this instrument may be obtained from Beneficiary at its address similarly
set forth in such opening recital. This Deed of Trust shall constitute a “fixture filing” for the purpose of the Code.

 

Article
7.

 

Assignment of Future Rents

 

7.1             
Assignment: To further secure the full and timely payment of the Obligations, Grantor hereby grants to Beneficiary,
as well as to Trustee on Beneficiary’s behalf, a security interest in all the rights of the lessor and the landlord, and
all of Grantor’s other rights, titles and interests, in, to and under any Leases made upon the Property, and all Rents that
arise, accrue or are derived from the Property, whether or not pursuant to any future leases or rental agreements.

 

7.2             
Payments to Beneficiary: Upon and during the continuance of an Event of Default, a demand on any tenant by Beneficiary
for the payment of rent shall be sufficient to warrant said tenant to make future payments of rent to Beneficiary without the necessity
of any consent by Grantor.

 

7.3             
INDEMNITY: BENEFICIARY SHALL NOT BE OBLIGATED TO PERFORM OR DISCHARGE, NOR DOES IT HEREBY UNDERTAKE TO PERFORM OR
DISCHARGE, ANY OBLIGATION, DUTY OR LIABILITY UNDER ANY LEASES WHICH WERE NOT CONSENTED TO BY BENEFICIARY, OR UNDER OR BY REASON
OF THIS DEED OF TRUST, AND GRANTOR SHALL AND DOES HEREBY AGREE TO INDEMNIFY BENEFICIARY FOR AND TO HOLD BENEFICIARY HARMLESS OF
AND FROM ANY AND ALL LIABILITY, LOSS OR DAMAGE WHICH IT MAY OR MIGHT INCUR UNDER ANY OF THE LEASES WHICH WERE NOT CONSENTED TO
BY BENEFICIARY OR UNDER OR BY REASON OF THIS ARTICLE 6 AND OF AND FROM ANY AND ALL CLAIMS AND DEMANDS WHATSOEVER WHICH MAY BE ASSERTED
AGAINST IT BY REASON OF ANY ALLEGED OBLIGATIONS OR UNDERTAKINGS ON ITS PART TO PERFORM OR DISCHARGE ANY OF THE TERMS, COVENANTS
OR AGREEMENTS CONTAINED IN ANY OF THE LEASES OR THIS DEED OF TRUST, EXCEPT FOR THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF BENEFICIARY.
SHOULD BENEFICIARY INCUR ANY SUCH LIABILITY, LOSS OR DAMAGE UNDER ANY OF THE LEASES WHICH WERE NOT CONSENTED TO BY BENEFICIARY
OR UNDER OR BY REASON OF THIS ARTICLE 6, OR IN THE DEFENSE OF ANY SUCH CLAIMS OR DEMANDS, THE AMOUNT THEREOF, INCLUDING ALL COSTS,
EXPENSES AND REASONABLE ATTORNEYS’ FEES, SHALL BE SECURED HEREBY, AND GRANTOR SHALL REIMBURSE BENEFICIARY THEREFOR (WITH
INTEREST THEREON AT THE DEFAULT RATE) IMMEDIATELY UPON DEMAND.

 

    Exhibit M – Form of Mortgage

     

    

Article
8.

 

Condemnation

 

8.1             
General: Promptly upon its obtaining knowledge of the institution or the threatened institution of any proceeding
for the condemnation of the Property, Grantor shall notify Trustee and Beneficiary of such fact. Grantor shall then file or defend
its claim thereunder and prosecute same with due diligence to its final disposition and shall cause any awards or settlements to
be paid over to Beneficiary for disposition pursuant to the terms of this Deed of Trust. Beneficiary shall have the right to participate
in any such condemnation proceedings at Beneficiary’s sole cost and expense. If the Property is taken or diminished in value,
or if a consent settlement is entered, by or under threat of such proceeding, the award or settlement payable to Grantor by virtue
of its interest in the Property shall be subject to the prepayment provisions set forth in the Loan Agreement.

 

Article
9.

 

Concerning the Trustee

 

9.1             
No Required Action: Trustee shall not be required to take any action toward the execution and enforcement of the
trust hereby created or to institute, appear in or defend any action, suit or other proceeding in connection therewith where in
his opinion such action will be likely to involve him in expense or liability, unless requested so to do by a written instrument
signed by Beneficiary.

 

9.2             
Certain Rights: With the approval of Beneficiary, Trustee shall have the right to take any and all lawful action
as Beneficiary may instruct Trustee to take to protect or enforce Beneficiary’s rights hereunder.

 

9.3             
Retention of Moneys: All moneys received by Trustee shall, until used or applied as herein provided, be held in trust
for the purposes for which they were received, but need not be segregated in any manner from any other moneys (except to the extent
required by law), and Trustee shall be under no liability for interest on any moneys received by him hereunder.

 

    Exhibit M – Form of Mortgage

     

    

9.4             
Successor Trustees: Beneficiary shall have full power to appoint a substitute trustee and, if preferred, several
substitute trustees in succession who shall succeed to all the estate, rights, powers and duties of the aforenamed Trustee. Such
appointment may be executed by any authorized agent of Beneficiary.

 

9.5             
Perfection of Appointment: Should any deed, conveyance or instrument of any nature be required from Grantor by any
successor Trustee to more fully and certainly vest in and confirm to such new Trustee such estates, rights, powers and duties,
then, upon request by such Trustee, any and all such deeds, conveyances and instruments shall be made, executed, acknowledged and
delivered and shall be caused to be recorded and/or filed by Grantor.

 

9.6             
Succession Instruments: Any new Trustee appointed pursuant to any of the provisions hereof shall, without any further
act, deed or conveyance, become vested with all the estates, properties, rights, powers and trusts of its or his predecessor in
the rights hereunder with like effect as if originally named as Trustee herein.

 

Article
10.

Miscellaneous

 

10.1         
Beneficiary’s Right to Perform the Obligations: If Grantor shall fail, refuse or neglect to make any payment
or perform any act required by this Deed of Trust beyond any applicable notice and cure period, then at any time thereafter, and
without notice to or demand upon Grantor and without waiving or releasing any other right, remedy or recourse Beneficiary may have
because of same, Beneficiary may (but shall not be obligated to) make such payment or perform such act for the account of and at
the expense of Grantor, and shall have the right to enter upon the Land and into the Buildings for such purpose and to take all
such action thereon and with respect to the Collateral, as it may deem necessary or appropriate. All sums paid by Beneficiary pursuant
to this Section, shall constitute additions to the Obligations and shall be secured by the Liens created by this Deed of Trust.

 

10.2         
Further Assurances: Grantor, upon the request of Trustee, will execute, acknowledge, deliver and record and/or file
such further instruments, in a form reasonably acceptable to Grantor, and do such further acts as may be necessary, desirable or
proper to carry out more effectively the purpose of this Deed of Trust.

 

10.3         
Recording and Filing: Grantor authorizes Beneficiary to record, file, re-record and refile this Deed of Trust and
all amendments, modifications and supplements hereto and substitutions in such manner and in such places as Trustee or Beneficiary
shall reasonably request.

 

10.4         
Notices: All notices or other communications required or permitted to be given pursuant to this Deed of Trust shall
be in writing and shall be considered as properly given if mailed by first class United States mail, postage prepaid, registered
or certified with return receipt requested, or by delivering same in person to the intended addressee or by prepaid telegram. Notice
so mailed shall be effective upon its deposit. Notice given in any other manner shall be effective only if and when received by
the addressee. For purposes of notice, the addresses of the parties shall be as set forth in the Preamble of this Deed of Trust;
provided, however, that either party shall have the right to change its address for notice hereunder to any other location within
the continental United States by the giving of thirty (30) days’ notice to the other party in the manner set forth hereinabove.

 

    Exhibit M – Form of Mortgage

     

    

10.5         
Compliance with Usury Laws: Reference is hereby made to the provisions of the Loan Agreement regarding compliance
with usury laws. Such provisions are hereby incorporated herein by this reference.

 

10.6         
No Waiver: Any failure by Trustee or Beneficiary to insist, or any election by Trustee or Beneficiary not to insist,
upon strict performance by Grantor of any of the terms, provisions or conditions of the Loan Documents shall not be deemed to be
a waiver of same or of any other terms, provision or condition thereof and Trustee or Beneficiary shall have the right at any time
or times thereafter to insist upon strict performance by Grantor of any and all of such terms, provisions and conditions.

 

10.7         
Covenants Running with the Land: All obligations contained in this Deed of Trust are intended by the parties to be,
and shall be construed as, covenants running with the Property until this Deed of Trust is released by Beneficiary.

 

10.8         
Successors and Assigns: All of the terms of this Deed of Trust shall apply to, be binding upon and inure to the benefit
of the parties hereto, their successors, assigns, heirs and legal representatives, and all other persons claiming by, through or
under them.

 

10.9         
Severability: If any provision of this Deed of Trust or the application thereof to any person or circumstance shall,
for any reason and to any extent, be invalid or unenforceable, then neither the remainder of this Deed of Trust in which such provision
is contained nor the application of such provision to other persons or circumstances shall be affected thereby, but rather shall
be enforced to the greatest extent permitted by law.

 

10.10     
Modification: This Deed of Trust and the other Loan Documents contain the entire agreements between the parties relating
to the subject matter hereof and thereof. This Deed of Trust may not be amended, revised, waived, discharged, released or terminated
orally but only by a written instrument or instruments executed by the party against which enforcement of the amendment, revision,
waiver, discharge, release or termination is asserted. Any alleged amendment, revision, waiver, discharge, release or termination
which is not so documented shall not be effective as to any party.

 

10.11     
Release: If all the Obligations has been paid, then the Lien created by this Deed of Trust shall be released by Beneficiary
upon request of Grantor, at Grantor’ cost and expense, by instrument reasonably satisfactory to Beneficiary.

 

10.12     
Applicable Law: This Deed of Trust shall be governed by and construed
according to the internal laws of the State of Texas from time to time in effect, without giving effect to its choice of law principles.

 

    Exhibit M – Form of Mortgage

     

    

10.13     
Headings: The Article and Section entitlements hereof are inserted for convenience of reference only and shall in
no way alter, modify or define, or be used in construing, the text of such Articles or Sections.

 

10.14     
Gender and Plurals: In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine
or neuter, and the singular number includes the plural, and conversely.

 

10.15     
Right of Sale. Grantor specifically understands and agrees that, in the event of Default, any sale or disposition
by Trustee or Beneficiary of any or all of the Rents, Fixtures, Property, or other Collateral pursuant to the terms of this Deed
of Trust may be effected by Trustee or Beneficiary at times and in manners which could result in the proceeds of such sale being
significantly and materially less than might have been received if such sale had occurred at different times or in different manners
and that such a sale under this Deed of Trust will likely result in proceeds substantially less than fair market value. Grantor
expressly releases Trustee, and its agents and representatives, from and against any and all obligations and liabilities arising
out of or relating to the timing or manner of any such sale.

 

10.16     
Entire Agreement. THIS DEED OF TRUST AND THE OTHER LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES
HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING
TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.

 

 

 

 

    Exhibit M – Form of Mortgage

     

    

EXECUTED on this ____ day of March, 2017, but effective for all purposes
as of the date first written above:

 

GRANTOR:

 

Sterling Construction Company, Inc.,

a Delaware corporation

 

	By: 	 	 	 
	 	 	 
	Name: 	 	 	 
	 	 	 
	Title: 	 	 	 

 

 

	STATE OF TEXAS	§	 	 
	§	 	 
	COUNTY OF MONTGOMERY  	§	 	 

 

On this              day of              , 20     , before the
undersigned authority, personally appeared              , the                (title) of              who proved to me on the basis
of satisfactory evidence to be the person Deed of Trust, Security Agreement, Assignment of Rents and Financing Statement and acknowledged
to me that he executed the same in his authorized capacity, and that by his signature on the instrument, the entity upon behalf
of which he acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of
Texas that the foregoing paragraph is true and correct.

 

 

WITNESS my hand and official seal.

 

 

 

	 	 	 
	Notary Public, State of Texas	 	 
	 	 	 	 

 

 

 

    Exhibit M – Form of Mortgage

     

    

Exhibit A

 

Land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    
Exhibit M – Form of Mortgage

     

    

EXHIBIT N

 

FORM OF GUARANTY

 

[Attached]

 

    	 	Exhibit N – Form of Guaranty	 

    	EXECUTION VERSION

    

 

 

 

 

 

GUARANTY

 

Dated as of April 3, 2017

 

From

 

EACH OF THE GUARANTORS PARTY
HERETO

 

in favor of

 

THE AGENT AND THE LENDERS REFERRED TO IN

THE LOAN AGREEMENT REFERRED TO HEREIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

    	 

    

 

T A B L E O F C O N T E N T S

 

	Section	Page
	Section 1.   Guaranty	1
	Section 2.   Guaranty Absolute	2
	Section 3.   Waivers and Acknowledgments	3
	Section 4.   Subrogation	4
	Section 5.   Payments Free and Clear of Taxes, Etc.	4
	Section 6.   Representations and Warranties	4
	Section 7.   Covenants.	5
	Section 8.   Amendments, Etc.	5
	Section 9.   Notices, Etc.	5
	Section 10.   No Waiver; Remedies	5
	Section 11.   Right of Set-off	5
	Section 12.   Indemnification.	6
	Section 13.   Subordination	6
	Section 14.   Continuing Guaranty; Assignments under the Loan Agreement	7
	Section 15.   Execution in Counterparts	7
	Section 16.   Governing Law.	7

 

 

 

    	 	2	 

    	 

    

 

GUARANTY

 

GUARANTY dated as of April 3, 2017 (the “Guaranty”)
made by the undersigned (the “Guarantors”), and, solely with respect to Section 13 hereof, Sterling
Construction Company, Inc., a Delaware corporation (“Borrower”), in favor of the Agent and the Lenders
(as defined in the Loan Agreement referred to below).

 

PRELIMINARY STATEMENT

 

Borrower and the Guarantors party thereto have
entered into a Loan and Security Agreement dated as of April __, 2017 (as may hereafter be amended, amended and restated, supplemented
or otherwise modified from time to time, the “Loan Agreement”; the capitalized terms defined therein
and not otherwise defined herein being used herein as therein defined) with certain Lenders party thereto, and Wilmington Trust,
National Association, a national banking association, as Agent for such Lenders. The Guarantors will derive substantial direct
and indirect benefits from the transactions contemplated by the Loan Agreement. It is a condition precedent to the making of Loans
by the Lenders under the Loan Agreement that the Guarantors shall have executed and delivered this Guaranty.

 

NOW, THEREFORE, in consideration of the premises
and in order to induce the Lenders to make Loans under the Loan Agreement, the Guarantors hereby agree as follows:

 

Section 1.  Guaranty

 

(a)                
The Guarantors hereby absolutely, unconditionally and irrevocably guarantee the punctual payment when due, whether at scheduled
maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all Obligations of each other Loan
Party now or hereafter existing under or in respect of the Loan Documents (including, without limitation, any extensions, modifications,
substitutions, amendments or renewals of any or all of the foregoing Obligations), whether direct or indirect, absolute or contingent,
and whether for principal, interest, premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise (such
Obligations being the “Guaranteed Obligations”), and agree to pay any and all expenses (including, without
limitation, fees and expenses of counsel) in accordance with and to the extent provided in Section 11.03 of the Loan Agreement
incurred by the Agent or any Lender in enforcing any rights under this Guaranty or any other Loan Document. Without limiting the
generality of the foregoing, the Guarantors' liability shall extend to all amounts that constitute part of the Guaranteed Obligations
and would be owed by any other Loan Party to any Lender under or in respect of the Loan Documents but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such other
Loan Party. The Guarantors understand and agree that the guarantee contained herein shall be construed as a continuing guarantee
of payment and performance and not merely of collectability.

 

(b)                
Notwithstanding any other provision hereof, the right of recovery against the Guarantors under Section 1 hereof shall not exceed
$1.00 less than the lowest amount which would render the Guarantors' obligations under Section 1 hereof void or voidable under
applicable law, including, without limitation, the Uniform Fraudulent Conveyance Act, Uniform Fraudulent Transfer Act or any similar
foreign, federal or state law to the extent applicable to the guaranty set forth herein and the obligations of the Guarantors hereunder.
To effectuate the foregoing, the Agent and the Guarantors hereby irrevocably agree that the Guaranteed Obligations of each Guarantor
in respect of the guarantee set forth in Section 1 hereof at any time shall be limited to the maximum amount as will result in
the Guaranteed Obligations of such Guarantor with respect thereto not constituting a fraudulent transfer or conveyance after giving
full effect to the liability under such guarantee set forth in Section 1 hereof and its related contribution rights but before
taking into account any liabilities under any other guarantee by such Guarantor. For purposes of the foregoing, all guarantees
of such Guarantor other than the guarantee under Section 1 hereof will be deemed to be enforceable and payable after the guaranty
under Section 1 hereof. The Guarantors hereby unconditionally and irrevocably agree that in the event any payment shall be required
to be made to Agent or any Lender under this Guaranty or any other guaranty, it will contribute, to the maximum extent permitted
by law, such amounts to any other Guarantor so as to maximize the aggregate amount paid to the Agent and the Lenders under or in
respect of the Loan Documents.

 

     

    	 

    

 

(c)                
Keepwell. If any Guarantor is a Qualified ECP Guarantor, such Guarantor, hereby, together with each other Guarantor that
is a Qualified ECP Guarantor, jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds
or other support to each Loan Party that is party to a Swap Agreement with respect to the Swap Agreements as may be needed by such
Loan Party from time to time to honor all of its obligations under this Guaranty and the other Loan Documents in respect of the
Swap Agreements (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering
such Qualified ECP Guarantor’s obligations and undertakings under this Section 1 or otherwise hereunder voidable under applicable
law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations and undertakings
of each Qualified ECP Guarantor under this Section 1 shall remain in full force and effect until the Obligations have been indefeasibly
paid in full in cash (other than inchoate indemnity obligations). Each Qualified ECP Guarantor intends this Section 1 to constitute,
and this Section 1 shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support, or other agreement”
for the benefit of, each Specified Loan Party for all purposes of Section 1(a)(18)(A)(v)(II) of the Commodity Exchange Act. For
purposes of this Section 1(c), “Specified Loan Party” means any Loan Party that is not an “eligible
contract participant” under the Commodity Exchange Act (determined prior to giving effect to this Section 1(c)).

 

Section 2.  Guaranty Absolute

 

The Guarantors guarantee that the Guaranteed
Obligations will be paid strictly in accordance with the terms of the Loan Documents, regardless of any law, regulation or order
now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Lender with respect thereto. The
Obligations of the Guarantors under or in respect of this Guaranty are independent of the Guaranteed Obligations or any other Obligations
of any other Loan Party under or in respect of the Loan Documents, and a separate action or actions may be brought and prosecuted
against the Guarantors to enforce this Guaranty, irrespective of whether any action is brought against the Borrower or any other
Loan Party or whether the Borrower or any other Loan Party is joined in any such action or actions. The liability of the Guarantors
under this Guaranty shall be irrevocable, absolute and unconditional irrespective of, and the Guarantors hereby irrevocably waive,
to the extent permitted by applicable law, any defenses the Guarantors may now have or hereafter acquire (other than the defense
of payment in full of the Guaranteed Obligations) in any way relating to, any or all of the following:

 

(a)                
any lack of validity or enforceability of any Loan Document or any agreement or instrument relating thereto;

 

(b)                
any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations or any
other Obligations of any other Loan Party under or in respect of the Loan Documents, or any other amendment or waiver of or any
consent to departure from any Loan Document, including, without limitation, any increase in the Guaranteed Obligations resulting
from the extension of additional credit to any Loan Party or any of its Subsidiaries or otherwise;

 

(c)                
any taking, exchange, release, lapse in perfection, or non-perfection of any Collateral or any other collateral, or any taking,
release or amendment or waiver of, or consent to departure from, any other guaranty, for all or any of the Guaranteed Obligations;

 

(d)                
any manner of application of Collateral or any other collateral, or proceeds thereof, to all or any of the Guaranteed Obligations,
or any manner of sale or other disposition of any Collateral or any other collateral for all or any of the Guaranteed Obligations
or any other Obligations of any Loan Party under the Loan Documents or any other assets of any Loan Party or any of its Subsidiaries;

 

(e)                
any change, restructuring or termination of the corporate structure or existence of any Loan Party or any of its Subsidiaries and
any corresponding restructuring of the Guaranteed Obligations;

 

(f)                 
any failure of any Lender to disclose to any Loan Party any information relating to the business, condition (financial or otherwise),
operations, performance, properties or prospects of any other Loan Party now or hereafter known to such Lender (the Guarantors
waiving any duty on the part of the Lenders to disclose such information);

 

    	 	2	 

    	 

    

 

(g)                
the failure of any other Person to execute or deliver this Guaranty or any other guaranty or agreement or the release or reduction
of liability of the Guarantors or any other guarantors or surety with respect to the Guaranteed Obligations;

 

(h)                
any failure or omission to assert or enforce or agreement or election not to assert or enforce, delay in enforcement, or the stay
or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any
right, power or remedy (whether arising under any Loan Documents, at law, in equity or otherwise) with respect to the Guaranteed
Obligations or any agreement relating thereto, or with respect to any other guaranty of or security for the payment of the Guaranteed
Obligations;

 

(i)                  any settlement, compromise, release, or discharge
of, or acceptance or refusal of any offer of payment or performance with respect to, or any substitutions for, the Guaranteed Obligations
or any subordination of the Guaranteed Obligations to any other obligations; or

 

(j)                  any other circumstance (including, without
limitation, any statute of limitations) or any existence of or reliance on any representation by the Agent or any Lender that might
otherwise constitute a defense available to, or a discharge of, any Loan Party or any other guarantors or surety (other than, subject
to the next sentence, payment in full of the Guaranteed Obligations).

 

This Guaranty shall continue to be effective or be reinstated, as
the case may be, if at any time any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by
the Agent or any Lender or any other Person upon the insolvency, bankruptcy or reorganization of the Borrower or any other Loan
Party or otherwise, all as though such payment had not been made.

 

Section 3.  Waivers and Acknowledgments

 

(a)                
The Guarantors hereby unconditionally and irrevocably waive, to the extent permitted by applicable law, promptness, diligence,
notice of acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protest or dishonor
and any other notice with respect to any of the Guaranteed Obligations and this Guaranty and any requirement that the Agent or
any Lender protect, secure, perfect or insure any Lien or any property subject thereto or exhaust any right or take any action
against any Loan Party or any other Person or any Collateral.

 

(b)                
The Guarantors hereby unconditionally and irrevocably waive, to the extent permitted by applicable law, any right to revoke this
Guaranty and acknowledge that this Guaranty is continuing in nature and applies to all Guaranteed Obligations, whether existing
now or in the future.

 

(c)                
The Guarantors hereby unconditionally and irrevocably waive, to the extent permitted by applicable law, (i) any defense arising
by reason of any claim or defense based upon an election of remedies by any Lender that in any manner impairs, reduces, releases
or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of the Guarantors
or other rights of the Guarantors to proceed against any of the other Loan Parties, any other Guarantors or any other Person or
any Collateral and (ii) any defense based on any right of set-off or counterclaim against or in respect of the Obligations of the
Guarantors hereunder.

 

(d)                
The Guarantors acknowledges that the Agent may, in accordance with the Loan Documents, without notice to or demand upon the Guarantors
and without affecting the liability of the Guarantors under this Guaranty, foreclose under any Mortgage by nonjudicial sale, and
the Guarantors hereby waive any defense to the recovery by the Agent and the Lenders against the Guarantors of any deficiency after
such nonjudicial sale and any defense or benefits that may be afforded by applicable law.

 

(e)                
The Guarantors hereby unconditionally and irrevocably waive, to the extent permitted by applicable law, any duty on the part of
any Lender to disclose to the Guarantors any matter, fact or thing relating to the business, condition (financial or otherwise),
operations, performance, properties or prospects of any other Loan Party or any of its Subsidiaries now or hereafter known by such
Lender.

 

    	 	3	 

    	 

    

 

(f)                 
The Guarantors acknowledge that they will receive substantial direct and indirect benefits from the financing arrangements contemplated
by the Loan Documents and that the waivers set forth in Section 2 and this Section 3 are knowingly made in contemplation
of such benefits.

 

Section 4.  Subrogation

 

The Guarantors hereby unconditionally and irrevocably
agree not to exercise any rights that they may now have or hereafter acquire against the Borrower or any other Loan Party that
arise from the existence, payment, performance or enforcement of the Guarantors’ Obligations under or in respect of this
Guaranty or any other Loan Document, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution
or indemnification and any right to participate in any claim or remedy of the Agent or any Lender against the Borrower or any other
Loan Party or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common
law, including, without limitation, the right to take or receive from the Borrower, any other Loan Party or any other insider guarantors,
directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such
claim, remedy or right, unless and until all of the Guaranteed Obligations and all other amounts payable under this Guaranty shall
have been paid in full in cash (other than inchoate indemnity obligations). If any amount shall be paid to the Guarantors in violation
of the immediately preceding sentence at any time prior to the latest of (a) the payment in full in cash of the Guaranteed Obligations
and all other amounts payable under this Guaranty (in each case, other than inchoate indemnity obligations) and (b) the Termination
Date, such amount shall be received and held in trust for the benefit of the Agent and the Lenders, shall be segregated from other
property and funds of the Guarantors and shall forthwith be paid or delivered to the Agent in the same form as so received (with
any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other amounts payable
under this Guaranty, whether matured or unmatured, in accordance with the terms of the Loan Documents, or to be held as Collateral
for any Guaranteed Obligations or other amounts payable under this Guaranty thereafter arising. If (i) the Guarantors shall make
payment to the Agent or any Lender of all or any part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations and
all other amounts payable under this Guaranty shall have been paid in full in cash (other than inchoate indemnity obligations)
and (iii) the Termination Date shall have occurred, the Agent and the Lenders will, at the Guarantors’ request and expense,
execute and deliver to the Guarantors appropriate documents, without recourse and without representation or warranty, necessary
to evidence the transfer by subrogation to the Guarantors of an interest in the Guaranteed Obligations resulting from such payment
made by the Guarantors pursuant to this Guaranty.

 

Section 5.   Payments
Free and Clear of Taxes, Etc. Any and all payments by or on account of any obligation of the
Guarantors hereunder or under any other Loan Document shall be made without set-off or counterclaim, free and clear of and without
deduction or withholding for any Indemnified Taxes or Other Taxes on the same terms and to the same extent that payments by the
Borrowers are required to be made free and clear of Indemnified Taxes and Other Taxes pursuant to Section 2.05 of the Loan Agreement.

 

Section 6.  Representations and Warranties

 

Each Guarantor hereby makes each representation
and warranty made in the Loan Documents by the Borrower with respect to the Guarantors and each Guarantor hereby further represents
and warrants as follows:

 

(a)                
There are no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or waived.

 

(b)                
The Guarantors have, independently and without reliance upon the Agent or any Lender and based on such documents and information
as they have deemed appropriate, made their own credit analysis and decision to enter into this Guaranty and each other Loan Document
to which they are or will be a party, and the Guarantors have established adequate means of obtaining from each other Loan Party
on a continuing basis information pertaining to, and is now and on a continuing basis will be completely familiar with, the business,
condition (financial or otherwise), operations, performance, properties and prospects of such other Loan Party.

 

    	 	4	 

    	 

    

 

Section 7.  Covenants.

 

(a)                
Affirmative Covenants. The Guarantors covenant and agree that, so long as any part of the Guaranteed Obligations shall remain
unpaid (other than inchoate indemnity obligations), the Guarantors will perform and observe, and cause each of their Subsidiaries
to perform and observe, all of the terms, covenants and agreements set forth in the Loan Documents on its or their part to be performed
or observed or that the Borrower have agreed to cause their Subsidiaries to perform or observe.

 

(b)                
Negative Covenants. The Guarantors covenant and agree that, so long as any part of the Guaranteed Obligations shall remain
unpaid (other than inchoate indemnity obligations), the Guarantors will not enter into or conduct any business, or engage in any
activity other than as permitted by Section 7.12 of the Loan Agreement.

 

Section 8.  Amendments, Etc.

 

No amendment or waiver of any provision of this
Guaranty and no consent to any departure by the Guarantors therefrom shall in any event be effective unless in accordance with
Section 11.01 of the Loan Agreement; provided, however, that no amendment, waiver or consent shall, unless in writing
and signed by all of the Lenders (or signed by the Agent with the consent of all of the Lenders), change this Section 8.

 

Section 9.  Notices, Etc.

 

All notices and other communications provided
for hereunder shall be in writing and shall be delivered by certified mail, postage prepaid, return receipt requested, by a nationally
recognized overnight courier, by facsimile, by electronic mail or other means of electronic communication or personally delivered
to the respective parties at the address specified in Section 11.06 of the Loan Agreement. All such notices and other communications
shall be effective, (i) in the case of delivery by messenger or overnight delivery service, when left at the appropriate address;
(ii) in the case of facsimile transmission, upon the sender’s receipt of electronic confirmation of receipt; (iii) in the
case of electronic mail, upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return
receipt requested” function, as available, return e-mail or other written acknowledgement); (iv) in the case of notices or
communications posted to an Internet website, upon the deemed receipt by the intended recipient at its e-mail address as described
in the foregoing clause (iii) of notification that such notice or communication is available and identifying the website address
therefor; and (v) in all other cases, upon actual receipt however evidenced.

 

Section 10.  No Waiver; Remedies

 

Neither Agent nor any Lender shall by any act
(except by a written instrument pursuant to Section 8), delay, indulgence, omission or otherwise be deemed to have waived any right
or remedy hereunder or to have acquiesced in any Default or Event of Default. No failure on the part of the Agent or any Lender
to exercise, and no delay by the Agent or any Lender in exercising, any right, remedy, power or privilege hereunder shall operate
as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or privilege. A waiver by the Agent or any Lender
of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which such Agent or
Lender would otherwise have on any future occasion. The rights, remedies, powers and privileges herein provided are cumulative
and not exclusive of any rights, remedies, powers and privileges provided by law.

 

Section 11.  Right of Set-off

 

Upon (a) the occurrence and during the continuance
of an Event of Default under Section 9.01(a) of the Loan Agreement or (b) an exercise of remedies under Section 10.01 of the Loan
Agreement, the Agent and each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and
other obligations at any time owing by the Agent or such Lender to or for the credit or the account of the Guarantors against any
and all of the Obligations of the Guarantors now or hereafter existing under the Loan Documents, irrespective of whether the Agent
or such Lender shall have made any demand under this Guaranty or any other Loan Document and although such Obligations may be unmatured
or contingent. The Agent and each Lender agrees promptly to notify the Guarantors after any such set-off and application; provided,
however, that the failure to give such notice shall not affect the validity of such set-off and application. The rights
of the Agent and each Lender under this Section 11 are in addition to other rights and remedies (including, without limitation,
other rights of set-off) that the Agent and such Lender may have.

 

    	 	5	 

    	EXECUTION VERSION

    

 

Section 12.  Indemnification; Expenses.

 

(a)                
The terms and conditions of Section 11.03 and Section 11.04 of the Loan Agreement are hereby incorporated by reference herein as
if fully set forth herein, and each Guarantor agrees that the terms of Section 11.03 and Section 11.04 of the Loan Agreement shall
apply to such Guarantor, mutatis mutandis.

 

(b)                
Without prejudice to the survival of any of the other agreements of the Guarantors under this Guaranty or any of the other Loan
Documents, the agreements and obligations of the Guarantors contained in Section 1(a) (with respect to enforcement expenses),
the last sentence of Section 2, Section 5 and this Section 12 shall survive the payment in full of the Guaranteed
Obligations and all of the other amounts payable under this Guaranty and the resignation and removal of the Agent from the Loan
Documents.

 

Section 13.  Subordination

 

Borrower and the Guarantors hereby subordinate
any and all debts, liabilities and other obligations owed to the Borrower or to the Guarantors by each other Loan Party (the “Subordinated
Obligations”) to the Guaranteed Obligations to the extent and in the manner hereinafter set forth in this Section
13:

 

(a)                
Prohibited Payments, Etc. The Borrower or the Guarantors may receive regularly scheduled payments from any other Loan Party
on account of the Subordinated Obligations so long as (i) no Event of Default under the Loan Agreement has occurred and is continuing
and (ii) the Borrower shall not have received written notice from Agent of its intent to block any such payment (it being understood
and agreed that no such notice shall be required in the case of an Event of Default under Sections 9.01(a) or 9.01(e) or 9.01(f)
of the Loan Agreement (any such Event of Default, a “Specified Event of Default”)); provided that
upon the waiver, remedy or cure of each such Event of Default, so long as no other Event of Default under the Loan Agreement shall
have occurred and be then continuing, such payments shall be permitted, including any payment to bring any missed payments during
the period of such Event of Default, current; provided, further, that the foregoing shall not prohibit the Borrower
or the Guarantors from receiving Restricted Payments which are permitted to be made notwithstanding the existence of an Event of
Default. After the sending of the notice referred to in the preceding clause (a)(ii) however (or, to the extent applicable, after
the occurrence and during the continuance of a Specified Event of Default), neither the Borrower nor the Guarantors shall demand,
accept or take any action to collect any payment on account of the Subordinated Obligations.

 

(b)                
Prior Payment of Guaranteed Obligations. In any proceeding under any bankruptcy, insolvency or other similar law now or
hereafter in effect relating to any other Loan Party, the Borrower and the Guarantors agree that the Lenders shall be entitled
to receive payment in full in cash of all Guaranteed Obligations (including all interest and expenses accruing after the commencement
of a proceeding under any bankruptcy, insolvency or other similar law now or hereafter in effect, whether or not constituting an
allowed claim in such proceeding (“Post Petition Interest”)) before the Borrower and the Guarantors receive
payment of any Subordinated Obligations.

 

(c)                
Turn-Over. Upon (a) the occurrence and during the continuance of an Event of Default under Section 9.01(a) of the Loan Agreement
or (b) an exercise of remedies under Section 10.01 of the Loan Agreement, the Borrower and the Guarantors shall, if the Agent or
any Lender so requests, collect, enforce and receive payments on account of the Subordinated Obligations as trustee for the Lenders
and deliver such payments to the Agent or any Lender on account of the Guaranteed Obligations (including all Post Petition Interest),
together with any necessary endorsements or other instruments of transfer, but without reducing or affecting in any manner the
liability of the Borrower and the Guarantors under the other provisions of this Guaranty.

 

    	 	6	 

    	 

    

 

(d)                
Agent Authorization. Upon (a) the occurrence and during the continuance of an Event of Default under Section 9.01(a) of
the Loan Agreement or (b) an exercise of remedies under Section 10.01 of the Loan Agreement, the Agent (at the direction of the
Lenders) is authorized and empowered (but without any obligation to so do), in its discretion, (i) in the name of the Borrower
and the Guarantors, to collect and enforce, and to submit claims in respect of, Subordinated Obligations and to apply any amounts
received thereon to the Guaranteed Obligations (including any and all Post Petition Interest), and (ii) to require the Borrower
and the Guarantors (A) to collect and enforce, and to submit claims in respect of, Subordinated Obligations and (B) to pay any
amounts received on such obligations to the Agent for application to the Guaranteed Obligations (including any and all Post Petition
Interest).

 

Section 14.  Continuing Guaranty;
Assignments under the Loan Agreement

 

This Guaranty is a continuing guaranty and shall
(a) remain in full force and effect until the latest of (i) the payment in full in cash of the Guaranteed Obligations
and all other amounts payable under this Guaranty (in each case, other than inchoate indemnity obligations) and (ii) the Termination
Date, (b) be binding upon the Guarantors, their successors and permitted assigns and (c) inure to the benefit of and
be enforceable by the Agent and the Lenders and their successors, permitted transferees and permitted assigns. Without limiting
the generality of clause (c) of the immediately preceding sentence, any Lender may assign or otherwise transfer all or any
portion of its rights and obligations under the Loan Agreement (including, without limitation, the Loans owing to it and the Note
or Notes held by it) to any other Person, and such other Person shall thereupon become vested with all the benefits in respect
thereof granted to such Lender herein or otherwise, in each case as and to the extent provided in Section 11.14 of the Loan
Agreement. The Guarantors shall not have the right to assign their rights hereunder or any interest herein without the prior written
consent of the Lenders.

 

Section 15.  Additional Guarantors

 

The initial Guarantors hereunder shall be such
of the Subsidiaries of the Borrower as are signatories hereto on the date hereof. From time to time subsequent to the date hereof,
Subsidiaries of the Borrower may become parties hereto as additional Guarantors in accordance with Section 6.10 of the Loan and
Security Agreement (each an “Additional Guarantor”), by executing a counterpart signature page of this Guaranty. Upon
delivery of any such executed counterpart to Agent, notice of which is hereby waived by the Guarantors, each such Additional Guarantor
shall be a Guarantor and shall be as fully a party hereto as if such Additional Guarantor were an original signatory hereof. Each
Guarantor expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release
of any other Guarantor hereunder. This Guaranty shall be fully effective as to any Guarantor that is or becomes a party hereto
regardless of whether any other Person becomes or fails to become or ceases to be a Guarantor hereunder.

 

Section 16.  Execution in Counterparts

 

This Guaranty and each amendment, waiver and consent
with respect hereto may be executed in any number of counterparts and by different parties thereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Guaranty by telecopier or other electronic means of written communication
shall be effective as delivery of an original executed counterpart of this Guaranty.

 

Section 17.  Governing Law.

 

Section 11.13 of the Loan and Security Agreement (Governing Law; Choice
of Law and Venue; Jury Trial Waiver; Waivers) is hereby incorporated by reference, mutatis mutandis.

 

[Remainder of Page Intentionally Left Blank]

 

    	 	7	 

    	 

    

  

IN WITNESS WHEREOF, the Guarantors have caused this Guaranty to be
duly executed and delivered by their respective officers thereunto duly authorized as of the date first above written.

 

	 	RALPH L. WADSWORTH CONSTRUCTION COMPANY, LLC,
	 	a Utah limited liability company
	 	 	 
	 	By:	Sterling Construction Company, Inc.,
	 	 	its manager
	 	 	 
	 	By: _______________________________________
	 	Name:    Ronald A. Ballschmiede
	 	Title:      Chief Financial Officer
	 	 	 
	 	 	 
	 	J. BANICKI CONSTRUCTION, INC.,
	 	an Arizona corporation
	 	 	 
	 	By: _______________________________________
	 	Name:    Ronald A. Ballschmiede
	 	Title:     Chief Financial Officer
	 	 	 
	 	 	 
	 	ROAD AND HIGHWAY BUILDERS OF CALIFORNIA, INC.,
	 	a California corporation
	 	 	 
	 	By: _______________________________________
	 	Name:    Ronald A. Ballschmiede
	 	Title:      Chief Financial Officer
	 	 	 
	 	 	 
	 	RALPH L. WADSWORTH CONSTRUCTION CO. LP,
	 	a California limited partnership
	 	 	 
	 	By:	Ralph L. Wadsworth Construction Company, LLC,
	 	 	its general partner 
	 	 	 
	 	By:	Sterling Construction Company, Inc.,
	 	 	its manager
	 	 	 
	 	By: _______________________________________
	 	Name:    Ronald A. Ballschmiede
	 	Title:     Chief Financial Officer

 

     

     

    

 

 

	 	TEALSTONE RESIDENTIAL CONCRETE, INC.,
	 	a Texas corporation
	 	 
	 	 
	 	By: _______________________________________
	 	Name:    Ronald A. Ballschmiede
	 	Title:      Vice President - Finance
	 	 
	 	 
	 	TEALSTONE COMMERCIAL, INC.,
	 	a Texas corporation
	 	 
	 	 
	 	By: _______________________________________
	 	Name:    Ronald A. Ballschmiede
	 	Title:      Vice President - Finance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

	 	TEXAS STERLING CONSTRUCTION CO.,
	 	a Delaware corporation
	 	 
	 	 
	 	By: _______________________________________
	 	Name:    Brady A. Janes
	 	Title:      Chief Financial Officer
	 	 
	 	 
	 	TEXAS STERLING-BANICKI, JV LLC,
	 	a Texas limited liability company
	 	 
	 	 
	 	By: _______________________________________
	 	Name:    Brady A. Janes
	 	Title:      Chief Financial Officer

 

 

 

 

 

 

 

 

 

     

     

    

 

THE FOREGOING IS

ACKNOWLEDGED AND AGREED:

 

	 	STERLING CONSTRUCTION COMPANY, INC.,
	 	a Delaware corporation,
	 	as Borrower
	 	 
	 	 
	 	By: _______________________________________
	 	Name:    Ronald A. Ballschmiede
	 	Title:      Chief Financial Officer

 

 

 

 

 

 

 

     

     

    

 

THE FOREGOING IS

ACKNOWLEDGED AND AGREED:

 

	 	WILMINGTON TRUST, NATIONAL ASSOCIATION,
	 	as Agent
	 	 
	 	 
	 	By: _______________________________________
	 	Name:    
	 	Title:      

 

 

 

 

 

 

     

     

    

 

EXHIBIT O

 

FORM OF ASSIGNMENT OF CLAIMS UNDER GOVERNMENT CONTRACT

 

FOR VALUE RECEIVED, the undersigned [ ], a [
] (the “Assignor”), with an address of [ ] hereby assigns, transfers and sets over (under the Assignment of
Claims Act of 1940, as amended (31 U.S.C. § 3727 and 41 U.S.C. §6305)) unto Wilmington Trust, National Association,
in its capacity as administrative agent and collateral agent, and its successors and assigns (the “Assignee”),
whose address is Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890, all monies due and to become due from
[ ], together with all rights to receive the same, under a certain Contract No. [ ] dated [ ], entered into between the Assignor
and [ ] (the “Payer”) for [ ], and under any and all further amendments thereof and supplements thereto (collectively,
the “Contract”).

 

The Assignor hereby authorizes and directs the
Payer to make all payments due under the Contract directly to the Assignee by checks or other orders, payable to the order of the
Assignee, and constitutes and appoints the Assignee its true and lawful attorney, irrevocably with full power of substitution for
it and in its name or in the name of the Assignor or otherwise, to ask, require, demand and receive and give acquittance for any
and all said monies due or to become due, and to endorse the name of the Assignor to any checks, drafts or other orders for the
payment of money payable to the Assignor in payment thereof.

 

The Assignor warrants that it is the lawful
owner of all rights under the Contract; that it has good right to assign same; that its said rights are free from all liens and
encumbrances and that it will warrant and defend the same against the claims and demands of all persons. The Assignor agrees (1)
that, if any future payments under said the Contract shall be made to the Assignor, it will receive and hold the same in trust
for the Assignee and will forthwith upon receipt deliver the same to the Assignee in the identical form of payment received by
the Assignor; and (2) that it will execute and deliver all such further instruments and do all such further acts and things as
the Assignee may reasonably request or as shall be necessary or desirable to further and more perfectly assure to the Assignee
its rights under the Contract.

 

This Assignment is made pursuant to the Assignment
of Claims Act of 1940, as amended.

 

[Remainder of page intentionally left blank.]

 

 

 

 

 

 

    
Exhibit O - Form of Assignment of Claims Under Government Contract

     

    

IN WITNESS WHEREOF, Assignor has executed this
assignment in several originals this ____ day of ___________, 20__.

 

 

SEAL

 

	 	 	[ASSIGNOR]
	 	 	 
	 	 	By:  	 
	 	 	Name:  	 
	 	 	Title:	 
	 	 	 
	 	 	 

 

 

 

 

 

 

 

 

 

    
Exhibit O - Form of Assignment of Claims Under Government Contract

     

    

State of [__________]

 

COUNTY OF [__________]

 

On ________________, ______, before me ________________________,
a Notary Public in and for said count and state, personally appeared _________________________ personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

Witness my hand and official seal.

 

	 	 	 
	 	 	(Seal)
	 	 	 
	 	 	 
	 	 	 

 

 

 

 

 

 

 

    
Exhibit O - Form of Assignment of Claims Under Government Contract

     

    

notice
of assignment of claims under government contract

 

To: [        ]

 

This has reference to Contract No. [     ] dated [     ], entered into between
[     ] (the “Assignor”), with an address at [     ] and [ ] for [     ] (the “Contract”).

 

PLEASE TAKE NOTICE that moneys due or to become due under the Contract
described above have been assigned to the undersigned assignee, Wilmington Trust, National Association, in its capacity as administrative
agent and collateral agent and its successors and assigns (the “Assignee”) under the provisions of the Assignment
of Claims Act of 1940, as amended, (31 U.S.C. 3727, 41 U.S.C. 6305).

 

Payments due or to become due under this Contract should be made
to the Assignee at the addresses and instructions set forth below depending on the nature of the payment made:

 

	Payment by mail:	Payment made by ACH or wire:
	
         

         

         

         

         

         
	 

 

 

Please return to the undersigned the three enclosed copies of this
notice with appropriate notations showing the date and hour of receipt, and signed by the person acknowledging receipt on behalf
of the addressee.

 

[Remainder of page intentionally left blank.]

 

 

 

 

    
Exhibit O - Form of Assignment of Claims Under Government Contract

     

    

 

	 	 	Very truly yours,
	 	 	 
	 	 	WILMINGTON TRUST, NATIONAL ASSOCIATION
	 	 	 
	 	 	By: 	 
	 	 	Name: 	 
	 	 	Title:	 
	 	 	 
	 	 	Rodney Square North, 1100 North Market Street, 

Wilmington,
Delaware 19890
	 	 	 
	Acknowledgement	 	 
	 	 	 
	Receipt is acknowledged of the above notice and of a copy of the
instrument of assignment. They were received ____(a.m.) (p.m.) on ______, 20___.
	 	 	 
	 	 	 
	[Signature]	 	 

 

[      ]

[      ]

 

 

 

 

 

Exhibit O - Form of Assignment of Claims Under Government ContractExhibit 4.1

 

Execution Version

	
 
    

 

NGL ENERGY PARTNERS LP

 

 

$250,000,000

 

 

6.65% Senior Secured Notes due June 19, 2022

 

 

AMENDED AND RESTATED

NOTE PURCHASE AGREEMENT

 

 

Dated March 31, 2017 with an effective date as of December 31, 2016

	
 
    

 

 

TABLE OF CONTENTS

 

	
SECTION
    	
 
    	
HEADING                        
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 1.
    	
 
    	
AUTHORIZATION OF NOTES; AMENDMENT AND RESTATEMENT
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 2.
    	
 
    	
SALE AND PURCHASE OF NOTES
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 3.
    	
 
    	
RESTATEMENT
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 4.
    	
 
    	
CONDITIONS TO RESTATEMENT
    	
 
    	
2
    
	
Section 4.1.
    	
 
    	
Representations and Warranties
    	
 
    	
2
    
	
Section 4.2.
    	
 
    	
Performance; No Default; No Material Adverse   Effect
    	
 
    	
2
    
	
Section 4.3.
    	
 
    	
Officer’s Certificates
    	
 
    	
2
    
	
Section 4.4.
    	
 
    	
Opinions of Counsel
    	
 
    	
2
    
	
Section 4.5.
    	
 
    	
Payment of Fees
    	
 
    	
3
    
	
Section 4.6.
    	
 
    	
Changes in Corporate Structure
    	
 
    	
3
    
	
Section 4.7.
    	
 
    	
Certain Documents
    	
 
    	
3
    
	
Section 4.8.
    	
 
    	
Proceedings and Documents
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 5.
    	
 
    	
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
    	
 
    	
5
    
	
Section 5.1.
    	
 
    	
Organization; Power and Authority
    	
 
    	
5
    
	
Section 5.2.
    	
 
    	
Authorization, Etc.
    	
 
    	
6
    
	
Section 5.3.
    	
 
    	
Disclosure
    	
 
    	
6
    
	
Section 5.4.
    	
 
    	
Organization and Ownership of Shares of   Subsidiaries; Affiliates
    	
 
    	
6
    
	
Section 5.5.
    	
 
    	
Financial Statements; Material Liabilities
    	
 
    	
7
    
	
Section 5.6.
    	
 
    	
Compliance with Laws, Other Instruments, Etc.
    	
 
    	
7
    
	
Section 5.7.
    	
 
    	
Governmental Authorizations, Etc.
    	
 
    	
7
    
	
Section 5.8.
    	
 
    	
Litigation; Observance of Agreements, Statutes   and Orders
    	
 
    	
7
    
	
Section 5.9.
    	
 
    	
Taxes
    	
 
    	
8
    
	
Section 5.10.
    	
 
    	
Title to Property; Leases
    	
 
    	
8
    
	
Section 5.11.
    	
 
    	
Licenses, Permits, Etc.
    	
 
    	
8
    
	
Section 5.12.
    	
 
    	
Compliance with ERISA
    	
 
    	
9
    
	
Section 5.13.
    	
 
    	
Private Offering by the Company
    	
 
    	
10
    
	
Section 5.14.
    	
 
    	
Use of Proceeds; Margin Regulations
    	
 
    	
10
    
	
Section 5.15.
    	
 
    	
Existing Indebtedness; Future Liens
    	
 
    	
10
    
	
Section 5.16.
    	
 
    	
Foreign Assets Control Regulations, Etc.
    	
 
    	
11
    
	
Section 5.17.
    	
 
    	
Status under Certain Statutes
    	
 
    	
11
    
	
Section 5.18.
    	
 
    	
Environmental Matters
    	
 
    	
11
    
	
Section 5.19.
    	
 
    	
[Reserved]
    	
 
    	
12
    
	
Section 5.20.
    	
 
    	
Security Interests
    	
 
    	
12
    
	
Section 5.21.
    	
 
    	
Solvency
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 6.
    	
 
    	
REPRESENTATIONS OF THE PURCHASERS
    	
 
    	
13
    
	
Section 6.1.
    	
 
    	
Purchase for Investment
    	
 
    	
13
    
	
Section 6.2.
    	
 
    	
Source of Funds
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 7.
    	
 
    	
INFORMATION AS TO COMPANY
    	
 
    	
15
    
	
Section 7.1.
    	
 
    	
Financial and Business Information
    	
 
    	
15
    
	
Section 7.2.
    	
 
    	
Compliance Certificate
    	
 
    	
17
    

 

i

 

	
Section 7.3.
    	
 
    	
Visitation
    	
 
    	
17
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 8.
    	
 
    	
PAYMENT AND PREPAYMENT OF THE NOTES
    	
 
    	
18
    
	
Section 8.1.
    	
 
    	
Required Prepayments
    	
 
    	
18
    
	
Section 8.2.
    	
 
    	
Optional Prepayments with Make-Whole Amount
    	
 
    	
18
    
	
Section 8.3.
    	
 
    	
Offer to Prepay Notes in the Event of a Change   of Control
    	
 
    	
18
    
	
Section 8.4.
    	
 
    	
Required Prepayments in the Event of Certain   Dispositions or Incurrence of Prohibited Indebtedness
    	
 
    	
20
    
	
Section 8.5.
    	
 
    	
Allocation of Partial Prepayments
    	
 
    	
20
    
	
Section 8.6.
    	
 
    	
Maturity; Surrender, Etc.
    	
 
    	
20
    
	
Section 8.7.
    	
 
    	
Purchase of Notes
    	
 
    	
20
    
	
Section 8.8.
    	
 
    	
Make-Whole Amount
    	
 
    	
20
    
	
Section 8.9.
    	
 
    	
Additional Interest
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 9.
    	
 
    	
AFFIRMATIVE COVENANTS
    	
 
    	
23
    
	
Section 9.1.
    	
 
    	
Compliance with Laws
    	
 
    	
23
    
	
Section 9.2.
    	
 
    	
Insurance
    	
 
    	
24
    
	
Section 9.3.
    	
 
    	
Businesses and Properties
    	
 
    	
25
    
	
Section 9.4.
    	
 
    	
Taxes
    	
 
    	
25
    
	
Section 9.5.
    	
 
    	
Corporate Existence, Etc.
    	
 
    	
25
    
	
Section 9.6.
    	
 
    	
Books and Records
    	
 
    	
26
    
	
Section 9.7.
    	
 
    	
ERISA
    	
 
    	
26
    
	
Section 9.8.
    	
 
    	
Environmental Matters
    	
 
    	
26
    
	
Section 9.9.
    	
 
    	
End of Fiscal Year
    	
 
    	
26
    
	
Section 9.10.
    	
 
    	
Perform Other Covenants
    	
 
    	
27
    
	
Section 9.11.
    	
 
    	
Receivables and Other Collateral Matters
    	
 
    	
27
    
	
Section 9.12.
    	
 
    	
Hedging Strategy; Risk Management Policy
    	
 
    	
27
    
	
Section 9.13.
    	
 
    	
Security Documents
    	
 
    	
28
    
	
Section 9.14.
    	
 
    	
Filing and Recording
    	
 
    	
28
    
	
Section 9.15.
    	
 
    	
Guarantors; Joinder Agreements
    	
 
    	
28
    
	
Section 9.16.
    	
 
    	
Further Assurances
    	
 
    	
30
    
	
Section 9.17.
    	
 
    	
Matters Relating to Owned Real Property Collateral
    	
 
    	
30
    
	
Section 9.18.
    	
 
    	
Information Required by Rule 144A
    	
 
    	
34
    
	
Section 9.19.
    	
 
    	
Covenant to Secure Notes Equally
    	
 
    	
34
    
	
Section 9.20.
    	
 
    	
Future Guarantors
    	
 
    	
34
    
	
Section 9.21.
    	
 
    	
Notes and Guaranty Agreements to Rank Pari Passu
    	
 
    	
34
    
	
Section 9.22.
    	
 
    	
Working Capital Facility
    	
 
    	
34
    
	
Section 9.23.
    	
 
    	
Post-Closing Deliveries
    	
 
    	
35
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 10.
    	
 
    	
NEGATIVE COVENANTS
    	
 
    	
35
    
	
Section 10.1.
    	
 
    	
Transactions with Related Parties
    	
 
    	
35
    
	
Section 10.2.
    	
 
    	
Mergers, Consolidations and Dispositions and   Acquisitions of Assets
    	
 
    	
35
    
	
Section 10.3.
    	
 
    	
Nature of Business
    	
 
    	
37
    
	
Section 10.4.
    	
 
    	
Terrorism Sanctions Regulations
    	
 
    	
37
    
	
Section 10.5.
    	
 
    	
Liens
    	
 
    	
37
    
	
Section 10.6.
    	
 
    	
Financial Covenants
    	
 
    	
39
    
	
Section 10.7.
    	
 
    	
Indebtedness
    	
 
    	
39
    
	
Section 10.8.
    	
 
    	
Contingent Liabilities
    	
 
    	
42
    

2

ii

 

	
Section 10.9.
    	
 
    	
Investments, Loans
    	
 
    	
42
    
	
Section 10.10.
    	
 
    	
ERISA Compliance
    	
 
    	
43
    
	
Section 10.11.
    	
 
    	
Change in Accounting Method
    	
 
    	
44
    
	
Section 10.12.
    	
 
    	
Redemption, Dividends, Equity Issuance, Distributions   and Payments
    	
 
    	
44
    
	
Section 10.13.
    	
 
    	
Sale of Receivables
    	
 
    	
45
    
	
Section 10.14.
    	
 
    	
Sale and Lease-Back Transactions
    	
 
    	
45
    
	
Section 10.15.
    	
 
    	
Change of Name or Place of Business
    	
 
    	
45
    
	
Section 10.16.
    	
 
    	
Restrictive Agreements
    	
 
    	
45
    
	
Section 10.17.
    	
 
    	
Tax Consolidation
    	
 
    	
46
    
	
Section 10.18.
    	
 
    	
Deposit Accounts
    	
 
    	
46
    
	
Section 10.19.
    	
 
    	
Organizational Documents; Tax Sharing Agreements
    	
 
    	
46
    
	
Section 10.20.
    	
 
    	
Most Favored Lender Status
    	
 
    	
46
    
	
Section 10.21.
    	
 
    	
Credit Agreement Financial Covenants
    	
 
    	
47
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 11.
    	
 
    	
EVENTS OF DEFAULT
    	
 
    	
47
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 12.
    	
 
    	
REMEDIES ON DEFAULT, ETC.
    	
 
    	
49
    
	
Section 12.1.
    	
 
    	
Acceleration
    	
 
    	
49
    
	
Section 12.2.
    	
 
    	
Other Remedies
    	
 
    	
50
    
	
Section 12.3.
    	
 
    	
Rescission
    	
 
    	
50
    
	
Section 12.4.
    	
 
    	
No Waivers or Election of Remedies, Expenses,   Etc.
    	
 
    	
51
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 13.
    	
 
    	
REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES
    	
 
    	
51
    
	
Section 13.1.
    	
 
    	
Registration of Notes
    	
 
    	
51
    
	
Section 13.2.
    	
 
    	
Transfer and Exchange of Notes
    	
 
    	
51
    
	
Section 13.3.
    	
 
    	
Replacement of Notes
    	
 
    	
52
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 14.
    	
 
    	
PAYMENTS ON NOTES
    	
 
    	
52
    
	
Section 14.1.
    	
 
    	
Place of Payment
    	
 
    	
52
    
	
Section 14.2.
    	
 
    	
Home Office Payment
    	
 
    	
52
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 15.
    	
 
    	
EXPENSES, ETC.
    	
 
    	
53
    
	
Section 15.1.
    	
 
    	
Transaction Expenses
    	
 
    	
53
    
	
Section 15.2.
    	
 
    	
Indemnification
    	
 
    	
53
    
	
Section 15.3.
    	
 
    	
Survival
    	
 
    	
54
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 16.
    	
 
    	
SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE   AGREEMENT
    	
 
    	
54
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 17.
    	
 
    	
AMENDMENT AND WAIVER
    	
 
    	
54
    
	
Section 17.1.
    	
 
    	
Requirements
    	
 
    	
54
    
	
Section 17.2.
    	
 
    	
Solicitation of Holders of Notes
    	
 
    	
55
    
	
Section 17.3.
    	
 
    	
Binding Effect, Etc.
    	
 
    	
56
    
	
Section 17.4.
    	
 
    	
Notes Held by Company, Etc.
    	
 
    	
56
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 18.
    	
 
    	
NOTICES
    	
 
    	
56
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 19.
    	
 
    	
REPRODUCTION OF DOCUMENTS
    	
 
    	
57
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 20.
    	
 
    	
CONFIDENTIAL INFORMATION
    	
 
    	
57
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SECTION 21.
    	
 
    	
SUBSTITUTION OF PURCHASER
    	
 
    	
58
    

 

iii

 

	
SECTION 22.
    	
 
    	
MISCELLANEOUS
    	
 
    	
58
    
	
Section 22.1.
    	
 
    	
Successors and Assigns
    	
 
    	
58
    
	
Section 22.2.
    	
 
    	
Payments Due on Non-Business Days
    	
 
    	
58
    
	
Section 22.3.
    	
 
    	
Accounting Terms
    	
 
    	
59
    
	
Section 22.4.
    	
 
    	
Severability
    	
 
    	
59
    
	
Section 22.5.
    	
 
    	
Construction, Etc.
    	
 
    	
59
    
	
Section 22.6.
    	
 
    	
Counterparts
    	
 
    	
59
    
	
Section 22.7.
    	
 
    	
Governing Law
    	
 
    	
60
    
	
Section 22.8.
    	
 
    	
Jurisdiction and Process; Waiver of Jury Trial
    	
 
    	
60
    
	
Section 22.9.
    	
 
    	
Transaction References
    	
 
    	
60
    
	
Section 22.10.
    	
 
    	
Effect of Amendment and Restatement
    	
 
    	
61
    

 

 

	
SCHEDULE A
    	
 
    	
—
    	
 
    	
INFORMATION RELATING TO PURCHASERS
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE B
    	
 
    	
—
    	
 
    	
DEFINED TERMS
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 4.7(b)
    	
 
    	
—
    	
 
    	
Guarantors
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 4.7(h)
    	
 
    	
—
    	
 
    	
Deposit Accounts
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 5.3
    	
 
    	
—
    	
 
    	
Disclosure Materials
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 5.4
    	
 
    	
—
    	
 
    	
Subsidiaries of the Company and Ownership of Subsidiary   Equity Interests
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 5.5
    	
 
    	
—
    	
 
    	
Financial Statements
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 5.15
    	
 
    	
—
    	
 
    	
Existing Indebtedness
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 5.20
    	
 
    	
—
    	
 
    	
UCC Financing Statements
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 9.12
    	
 
    	
—
    	
 
    	
Risk Management Policy
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 9.15
    	
 
    	
—
    	
 
    	
Exempted Joint Ventures
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 9.17
    	
 
    	
—
    	
 
    	
Mortgaged Properties
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 9.23
    	
 
    	
—
    	
 
    	
Post-Closing Deliverables
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 10.1
    	
 
    	
—
    	
 
    	
Existing Affiliate Transactions
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 10.5
    	
 
    	
—
    	
 
    	
Existing Liens
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 10.7
    	
 
    	
—
    	
 
    	
Existing Indebtedness
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SCHEDULE 10.9
    	
 
    	
—
    	
 
    	
Existing Investments
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT 1
    	
 
    	
—
    	
 
    	
Form of 6.65% Senior Secured Note due   June 19, 2022
    

 

iv

 

	
EXHIBIT 4.4(a)
    	
 
    	
—
    	
 
    	
Form of Opinion of Special Counsel for the Note   Parties
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT 4.4(b)
    	
 
    	
—
    	
 
    	
Form of Opinion of Local Counsel for certain   Note Parties
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT 5.20(a)
    	
 
    	
—
    	
 
    	
Form of Patent Security Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT 5.20(b)
    	
 
    	
—
    	
 
    	
Form of Trademark Security Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT 5.20(c)
    	
 
    	
—
    	
 
    	
Form of Copyright Security Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT B-1
    	
 
    	
—
    	
 
    	
Form of Compliance Certificate
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT B-2
    	
 
    	
—
    	
 
    	
Form of Guaranty Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT B-3
    	
 
    	
—
    	
 
    	
Form of Intercreditor Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT B-4
    	
 
    	
—
    	
 
    	
Form of Joinder Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT B-5
    	
 
    	
—
    	
 
    	
Form of Mortgage
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EXHIBIT B-6
    	
 
    	
—
    	
 
    	
Form of Security Agreement
    

 

v

 

NGL ENERGY PARTNERS LP
 6120 South Yale Avenue
 Suite 805
 Tulsa, Oklahoma  74136

 

6.65% Senior Secured Notes due June 19, 2022

 

March 31, 2017

 

TO EACH OF THE HOLDERS LISTED ON

THE SIGNATURE PAGES HERETO:

 

Ladies and Gentlemen:

 

NGL Energy Partners LP, a Delaware limited partnership (the “Company”), agrees with each of the holders of Notes as follows:

 

SECTION 1.                         AUTHORIZATION OF NOTES; AMENDMENT AND RESTATEMENT.

 

The Company has authorized the issue and sale of, and on June 19, 2012 issued and sold, $250,000,000 aggregate principal amount of its 6.65% Senior Secured Notes due June 19, 2022 (as amended and restated effective as of the Restatement Effective Date, and as otherwise amended, restated supplemented or otherwise modified from time to time, the “Notes”, such term to include any such notes issued in substitution therefor pursuant to Section 13) pursuant to a Note Purchase Agreement dated as of June 19, 2012 (such Note Purchase Agreement, as heretofore amended, supplemented or otherwise modified and as in effect immediately prior to the execution and delivery of this Agreement, the “Existing Note Agreement”), among the Company and the Purchasers.  After the Restatement, the Notes will be substantially in the form set out in Exhibit 1.  Certain capitalized and other terms used in this Agreement are defined in Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.

 

The Company and the holders of Notes desire to amend and restate the Existing Note Agreement and, accordingly, the Company and each holder of Notes agree that the Existing Note Agreement is hereby amended and restated in its entirety to read as provided in this Agreement.

 

SECTION 2.                         SALE AND PURCHASE OF NOTES.

 

Subject to the terms and conditions of the Existing Note Agreement, the Company issued and sold to each Purchaser, and each Purchaser purchased from the Company, the Notes in the principal amount specified opposite such Purchaser’s name in Schedule A attached to the Existing Note Agreement at the purchase price of 100% of the principal amount thereof.  As of the date of this Agreement, each holder of a Note holds such Note in the principal amount specified opposite such holder’s name on Schedule A attached hereto.  The holders’ obligations

 

 

under this Agreement are several and not joint obligations and no holder has any liability to any Person for the performance or non-performance of any obligation by any other holder hereunder.

 

SECTION 3.                         RESTATEMENT.

 

The sale and purchase of the Notes occurred at the offices of Baker Botts L.L.P., 2001 Ross Avenue, Dallas, Texas 75201, at 10:00 a.m., Central time, at a closing (the “Original Closing”) on June 19, 2012 (the “Original Closing Date”).  The amendment and restatement (the “Restatement”) of the Existing Note Agreement shall become effective as of December 31, 2016 (the “Restatement Effective Date”), subject to the fulfillment to each holder’s satisfaction of all conditions specified in Section 4.

 

SECTION 4.                         CONDITIONS TO RESTATEMENT.

 

The effectiveness of this Agreement is subject to the fulfillment to each holder’s satisfaction of the following conditions:

 

Section 4.1.           Representations and Warranties.  The representations and warranties of the Note Parties in this Agreement and the other Note Documents shall be correct when made.

 

Section 4.2.           Performance; No Default; No Material Adverse Effect.  Each Note Party shall have performed and complied with all agreements and conditions contained in this Agreement and the other Note Documents required to be performed or complied with by it prior to or on the date hereof.  After giving effect to the Restatement, no Default or Event of Default shall have occurred and be continuing.  Since the most recently delivered Annual Audited Financial Statement by the Company pursuant to Section 7.1(b) of the Existing Note Agreement, there shall have been no change in the financial condition, operations, business or properties of the Company and its Subsidiaries, taken as a whole, except changes that individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect.

 

Section 4.3.           Officer’s Certificates.

 

(a)           Officer’s Certificate.  Each Note Party shall have delivered to such holder an Officer’s Certificate, dated the date hereof, certifying that the conditions specified in Sections 4.1, 4.2, 4.6 and 4.7(k) have been fulfilled.

 

(b)           Secretary’s Certificate.  Each Note Party shall have delivered to such holder a certificate of its Secretary or Assistant Secretary, and one additional officer of such Note Party, dated the date hereof, certifying as to (i) the resolutions attached thereto and other corporate (or similar) proceedings relating to the authorization, execution and delivery of the Notes, this Agreement and the other Note Documents executed by such Note Party, (ii) such Note Party’s Organizational Documents as then in effect and (iii) the names, titles and true signatures of the officers of such Note Party who are authorized and will be signing the Note Documents to which such Note Party is a party and any other documents to be delivered by such Note Party hereunder or in connection herewith.

 

Section 4.4.           Opinions of Counsel.  Such holder shall have received opinions in form and substance satisfactory to such holder, dated the date hereof (a) from Winston & Strawn LLP,

 

2

 

counsel for the Note Parties, covering the matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions contemplated hereby as such holder or its counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to the holders), (b)(i) from in-house counsel to the Company,  (ii) from Norton Rose Fulbright, special Alberta counsel for certain Note Parties, (iii) from Davis & Cannon, LLP, special Wyoming counsel for certain Note Parties, and (iv) from Parr Brown Gee & Loveless, special Utah counsel for certain Note Parties, in each case covering the matters set forth in Exhibit 4.4(b) and covering such other matters incident to the transactions contemplated hereby as such holder or its counsel may reasonably request (and the Company hereby instructs such counsel to deliver such opinions to the holders), and (c) from Baker Botts L.L.P., the holders’ special counsel in connection with such transactions, covering such matters incident to such transactions as such holder may reasonably request.

 

Section 4.5.           Payment of Fees.

 

(a)           Without limiting the provisions of Section 15.1, the Company shall have paid the fees, charges and disbursements of the holders’ special counsel referred to in Section 4.4(c) to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the date hereof.

 

(b)           Without limiting the provisions of Section 15.1, the Company shall have paid to each holder a fee in an amount equal to 0.20% of the aggregate principal amount of Notes held by such holder on the date hereof.

 

Section 4.6.           Changes in Corporate Structure.  None of the Note Parties shall have changed its jurisdiction of incorporation or organization, as applicable, at any time following the date of the most recent financial statements referred to in Schedule 5.5.

 

Section 4.7.           Certain Documents.  Such holder shall have received the following:

 

(a)           The Note(s) held by such holder as of the Restatement, amended and restated to contemplate the amendment and restatement of the Existing Note Agreement as evidenced by this Agreement, which shall be in form and substance reasonably satisfactory to such holder.

 

(b)           The Guaranty Agreement executed by each Guarantor listed on Schedule 4.7(b), which shall be in form and substance reasonably satisfactory to such holder.

 

(c)           The Risk Management Policy, including positions and other limits, in the form of Schedule 9.12.

 

(d)           Certificates from the Secretary of State or other appropriate public official as to the continued existence and good standing (or its equivalent) of each Note Party in its applicable jurisdiction of formation, dated within thirty (30) days of the date hereof.

 

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(e)           Evidence of all such actions as such holder shall reasonably require to perfect the Liens created pursuant to the Security Documents, including (i) the delivery to the Collateral Agent of all property with respect to which possession is necessary or desirable for the purpose of perfecting such Liens, (ii) with respect to collateral covered by the Security Documents, the filing of appropriately completed and duly authorized Uniform Commercial Code financing statements and the PPSA financing statements, (iii) with respect to all collateral constituting certificated equity interests in any Note Party or any of their Subsidiaries, delivery to the Collateral Agent of original stock certificates and stock transfer powers with regard to all of the applicable equity interests, and (iv) with respect to all collateral consisting of Intellectual Property, delivery to the Collateral Agent of appropriate documents to be filed in the U.S. Patent and Trademark Office and the United States Copyright Office, as applicable.

 

(f)            Evidence reasonably satisfactory to such holder that the Liens created by the Security Documents constitute perfected first priority Liens (except for any Liens expressly permitted in the Note Documents), including satisfactory Uniform Commercial Code or other applicable search reports.

 

(g)           Certificates of insurance satisfactory to such holder in all respects evidencing the existence of all insurance required to be maintained by the Note Parties and all other terms of the Note Documents, together with loss payable endorsements in favor of the Collateral Agent and additional insured endorsements in favor of the Collateral Agent and the holders of Notes.

 

(h)           Evidence that the applicable Note Parties, the Collateral Agent and the applicable financial institutions listed in Schedule 4.7(h) shall have entered into the Control Agreements with respect to each deposit account listed on such schedule (other than the Excluded Deposit Accounts listed on Schedule 4.7(h)).

 

(i)            Evidence that the Credit Agreement is in full force and effect, together with a fully executed copy thereof and of each other Loan Document (as defined in the Credit Agreement) requested by such holder, which shall be in form and substance satisfactory to such holder.

 

(j)            A certificate of a responsible officer of the Note Parties certifying on behalf of the Note Parties as to the solvency of the Note Parties and their Subsidiaries (taken as a whole), as of the Restatement Effective Date and the date hereof, after giving effect to the Restatement, in form and substance satisfactory to such holder.

 

(k)           A certificate of the Chief Financial Officer of the Company confirming that the Note Parties are in compliance with the financial covenants set forth in Section 10.6 after giving effect to the Restatement, including supporting calculations.

 

(l)            Each Annual Audited Financial Statement and Quarterly Unaudited Financial Statement, together with each Compliance Certificate, that was required to be delivered prior to the date hereof pursuant to Section 7.1 and Section 7.2 of the Existing Note Agreement.

 

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(m)          The “management case” projected financial data of the Note Parties for the Restatement Effective Date through March 31, 2021, on a consolidated basis, together with one or more schedules demonstrating prospective compliance with all financial covenants contained in this Agreement, such projections disclosing all material assumptions made by the Note Parties in formulating such projections.

 

Section 4.8.           Proceedings and Documents.  All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such holder and its special counsel, and such holder and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as such holder or such special counsel may reasonably request.

 

SECTION 5.                         REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company represents and warrants to each holder that:

 

Section 5.1.           Organization; Power and Authority.  The Company is a limited partnership duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign limited partnership and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The Company has the organizational power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement, the Notes and the other Note Documents to which it is a party and to perform the provisions hereof and thereof.

 

Section 5.2.           Authorization, Etc.  This Agreement, the Notes and the other Note Documents to which the Company is a party have been duly authorized by all necessary organizational action on the part of the Company, and this Agreement constitutes, and upon execution and delivery thereof each Note and each other Note Document to which the Company is a party will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).  Each Note Document to which a Guarantor is a party has been duly authorized by all necessary organizational action on the part of such Guarantor, and each such Note Document, upon execution and delivery thereof will constitute, a legal, valid and binding obligation of such Guarantor enforceable against such Guarantor in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

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Section 5.3.           Disclosure.  This Agreement, the other Note Documents and the documents, certificates or other writings delivered to the holders by or on behalf of the Company in connection with the transactions contemplated hereby and identified in Schedule 5.3, and the financial statements listed in Schedule 5.5 (this Agreement, the other Note Documents and such documents, certificates or other writings and such financial statements delivered to each holder prior to the date hereof being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made; provided that, with respect to financial estimates, projected financial information present in the “management case” financial data delivered pursuant to Section 4.7(m) and other forward-looking information, it is understood that such information was prepared in good faith based upon assumptions believed by the Company to be reasonable at the time of preparation and furthermore that (i) such financial statements, projected financial information and forward-looking statements are not to be viewed as facts, that actual results during the period or periods covered thereby may differ from the projected results (and that such differences may be material) and (ii) no representation or warranty is made with respect to information of a general economic or industry-specific nature.  Since the most recently delivered Annual Audited Financial Statements pursuant to Section 7.1(b) of the Existing Note Agreement, there has been no change in the financial condition, operations, business or properties of the Company or any Subsidiary  except changes that individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect.  There is no fact known to the Company that could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents.

 

Section 5.4.           Organization and Ownership of Shares of Subsidiaries; Affiliates.  (a) Schedule 5.4 contains (except as noted therein) complete and correct lists (i) of the Company’s Subsidiaries showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, its organizational identification number and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary, (ii) of each Person (other than Subsidiaries) in which the Company, directly or indirectly, owns an ownership interest, and (iii) of the Company’s directors and senior officers.

 

(b)           All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.4 and except for the Lien created by the Security Documents).

 

(c)           Each Subsidiary is a corporation or other legal entity duly organized, validly existing and, where applicable, in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and, where applicable, is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and

 

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proposes to transact, to execute and deliver the Note Documents to which it is a party and to perform the provisions thereof.

 

(d)           No Subsidiary is a party to, or otherwise subject to any legal, regulatory, contractual or other restriction (other than this Agreement, the Credit Agreement and the agreements listed on Schedule 5.4 and customary limitations imposed by corporate law or similar statutes) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary.

 

Section 5.5.           Financial Statements; Material Liabilities.  The Company has delivered to each holder copies of the financial statements of the Company and its Subsidiaries listed on Schedule 5.5.  All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial position of the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments).   The Company and its Subsidiaries do not have any Material liabilities that are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.

 

Section 5.6.           Compliance with Laws, Other Instruments, Etc.  The execution, delivery and performance by the Company of this Agreement, the Notes and the other Note Documents to which it is a party, and the execution, delivery and performance by each Guarantor of the Note Documents to which it is a party, will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien (except as contemplated by the Security Documents) in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, Organizational Document, or any other agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary.

 

Section 5.7.           Governmental Authorizations, Etc.  Except for filings to perfect or to continue the perfection of the Liens created by the Security Documents, no consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement, the Notes or any other Note Document to which it is a party or by any Guarantor of any Note Document to which it is a party.

 

Section 5.8.           Litigation; Observance of Agreements, Statutes and Orders.  (a) There are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any property of the Company

 

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or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

(b)           Neither the Company nor any Subsidiary is (i) in default under any term of any agreement or instrument to which it is a party or by which it is bound, (ii) in violation of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or (iii) in violation of any applicable law, ordinance, rule or regulation of any Governmental Authority (including, without limitation, Environmental Laws, the USA PATRIOT Act or any of the other laws and regulations that are referred to in Section 5.16), which default or violation, individually or in the aggregate for all matters addressed by clauses (i) - (iii) above, could reasonably be expected to have a Material Adverse Effect.

 

Section 5.9.           Taxes.  The Company and its Subsidiaries have filed all material tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which is not individually or in the aggregate Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP.  The Company knows of no basis for any other tax or assessment that could reasonably be expected to have a Material Adverse Effect.  The charges, accruals and reserves on the books of the Company and its Subsidiaries in respect of material U.S. federal, state or other taxes for all fiscal periods are adequate.  The U.S. federal income tax liabilities of the Company and its Subsidiaries have been finally determined (whether by reason of completed audits or the statute of limitations having run) for all fiscal years up to and including the fiscal year ended March 31, 2011.

 

Section 5.10.        Title to Property; Leases.  The Company and its Subsidiaries have good and sufficient title to their respective properties that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business or otherwise in accordance with this Agreement), in each case free and clear of Liens prohibited by this Agreement.  All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all material respects.

 

Section 5.11.        Licenses, Permits, Etc.  (a) The Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known conflict with the rights of others.

 

(b)           To the knowledge of the Company, the conduct of the respective businesses (including the products and services)of the Company or any of its Subsidiaries as currently conducted does not, in any material respect, infringe, misappropriate or otherwise violate any

 

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patent, copyright, service mark, trademark or other Intellectual Property right owned by any other Person.

 

(c)           To the best knowledge of the Company, there is no Material violation by any Person of any right of the Company or any of its Subsidiaries with respect to any patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by the Company or any of its Subsidiaries.

 

Section 5.12.        Compliance with ERISA.  (a)  The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that could reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to section 430(k) of the Code or to any such penalty or excise tax provisions under the Code or Federal law applicable to employee benefit plans or section 4068 of ERISA or by the granting of a security interest in connection with the amendment of a Plan, other than such liabilities or Liens as would not be individually or in the aggregate Material.

 

(b)           The present value of the aggregate benefit liabilities under each of the Plans, determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities.  The term “benefit liabilities” has the meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified in section 3 of ERISA.

 

(c)           The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material.

 

(d)           The expected postretirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Company and its Subsidiaries is not Material.

 

(e)           The execution and delivery of this Agreement will not, and the issuance and sale of the Notes under the Existing Note Agreement did not, involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code.  The representation by the Company (i) to each Purchaser in the first sentence of Section 5.12(e) of the Existing Note Agreement was, and (ii) to such holder in the first sentence of this Section 5.12(e) is, in each case made in reliance

 

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upon and subject to the accuracy of each Purchaser’s or such holder’s, respectively, representation in Section 6.2 of the Existing Note Agreement or Section 6.2 of this Agreement, as applicable, as to the sources of the funds used to pay the purchase price of the Notes.

 

Section 5.13.        Private Offering by the Company.  Neither the Company nor anyone acting on its behalf offered the Notes under the Existing Note Agreement or any similar Securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the holders and not more than 15 other Institutional Investors, each of which was offered the Notes at a private sale for investment.  Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

 

Section 5.14.        Use of Proceeds; Margin Regulations.  The Company applied the proceeds of the sale of the Notes for general corporate purposes, including business combinations and repayment of Indebtedness permitted pursuant to the Existing Note Agreement.  No part of the proceeds from the sale of the Notes was used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any Securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).  Margin stock does not constitute more than 5% of the value of the consolidated assets of the Company and its Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 5% of the value of such assets.  As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.

 

Section 5.15.        Existing Indebtedness; Future Liens.  (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Indebtedness of the Company and its Subsidiaries as of the date hereof (including a description of the obligors and obligees, principal amount outstanding and collateral therefor, if any, and guaranty thereof, if any).  Neither the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary, and no event or condition exists with respect to any material Indebtedness of the Company or any Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such material Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

 

(b)           Neither the Company nor any Subsidiary has agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by Section 10.5.

 

(c)           Neither the Company nor any Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company or such Subsidiary, any agreement relating thereto or any other agreement (including, but not limited to,

 

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its Organizational Documents) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company or any Subsidiary, except as specifically indicated in Schedule 5.15.

 

Section 5.16.        Foreign Assets Control Regulations, Etc.  (a)  Neither the Company nor any Controlled Entity is (i) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by the Office of Foreign Assets Control, U.S. Department of Treasury (“OFAC”) (an “OFAC Listed Person”) or (ii) a department, agency or instrumentality of, or is otherwise controlled by or acting on behalf of, directly or indirectly, (x) any OFAC Listed Person or (y) any Person, entity, organization, foreign country or regime that is subject to any OFAC Sanctions Program (each OFAC Listed Person and each other Person, entity, organization and government of a country described in clause (ii), a “Blocked Person”).

 

(b)           No part of the proceeds from the sale of the Notes hereunder constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used, directly by the Company or indirectly through any Controlled Entity, in connection with any investment in, or any transactions or dealings with, any Blocked Person.

 

(c)           To the Company’s actual knowledge after making due inquiry, neither the Company nor any Controlled Entity (i) is under investigation by any Governmental Authority for, or has been charged with, or convicted of, money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes under any applicable law (collectively, “Anti-Money Laundering Laws”), (ii) has been assessed civil penalties under any Anti-Money Laundering Laws or (iii) has had any of its funds seized or forfeited in an action under any Anti-Money Laundering Laws. The Company has taken reasonable measures appropriate to the circumstances (in any event as required by applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable current and future Anti-Money Laundering Laws.

 

(d)           No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for any improper payments to any governmental official or employee, political party, official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage.  The Company has taken reasonable measures appropriate to the circumstances (in any event as required by applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable current and future anti-corruption laws and regulations.

 

Section 5.17.        Status under Certain Statutes.  Neither the Company nor any Subsidiary is subject to regulation under the Investment Company Act of 1940, as amended, the Public Utility Holding Company Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or the Federal Power Act, as amended.

 

Section 5.18.        Environmental Matters.  (a) Neither the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim, and no proceeding has been instituted raising any claim against the Company or any of its Subsidiaries or any of their respective real properties now or formerly owned, leased or operated by any of them or other

 

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assets, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect.

 

(b)           Neither the Company nor any Subsidiary has knowledge of any facts which would reasonably be expected to give rise to any claim, public or private, of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets or their use, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect.

 

(c)           Neither the Company nor any Subsidiary has stored any Hazardous Substances on real properties now or formerly owned, leased or operated by any of them and has not disposed of any Hazardous Substances in a manner contrary to any Environmental Laws in each case in any manner that could reasonably be expected to result in a Material Adverse Effect.

 

(d)           All buildings on all real properties now owned, leased or operated by the Company or any Subsidiary are in compliance with applicable Environmental Laws, except where failure to comply could not reasonably be expected to result in a Material Adverse Effect.

 

Section 5.19.        [Reserved].

 

Section 5.20.        Security Interests.  Each of the Security Documents creates in favor of the Collateral Agent, for the benefit of the holders of Notes and the other Secured Parties, a legal, valid and enforceable security interest in the Collateral secured thereby.  The previous (a) filing of the Uniform Commercial Code and PPSA financing statements described in Schedule 5.20 and, to the extent governed by United States federal law, as applicable, and (b) recording of a patent security agreement in the form of Exhibit 5.20(a) hereto, a trademark security agreement in the form of Exhibit 5.20(b) hereto and a copyright security agreement in the form of Exhibit 5.20(c) hereto (the “Intellectual Property Security Agreements”), in the United States Patent and Trademark Office and the United States Copyright Office, as applicable, in each case perfected the security interests as first priority security interests (subject, as to priority, only to Liens permitted under Section 10.5 that, as a matter of law, would be prior to the Liens of the Collateral Agent) in and Liens on the Collateral granted thereby that may be perfected by such aforementioned filings or recordings, and no further recordings or filings are or will be required in connection with the creation, perfection or enforcement of such security interests and Liens, other than (i) the filing of continuation statements in accordance with applicable law and (ii) the recording of the Intellectual Property Security Agreements in the United States Patent and Trademark Office and the United States Copyright Office, as applicable, with respect to after-acquired Patent, Trademark and Copyright applications and registrations acquired after the date hereof.

 

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Section 5.21.        Solvency.

 

(a)           The value of the assets of the Note Parties taken as a whole, based on a fair valuation thereof, is not less than the amount that will be required to be paid on or in respect of the probable liability on the existing debts and other liabilities (including contingent liabilities) of the Note Parties taken as a whole, as they are expected to become absolute and mature.

 

(b)           The assets of the Note Parties taken as a whole, do not constitute unreasonably small capital for of the Note Parties taken as a whole to carry out their business as now conducted and as proposed to be conducted including the capital needs of the Note Parties, taking into account (i) the nature of the business conducted by the Note Parties, (ii) the particular capital requirements of the business conducted by the Note Parties, (iii) the anticipated nature of the business to be conducted by the Note Parties in the future, and (iv) the projected capital requirements and capital availability of such current and anticipated business.

 

(c)           The Note Parties taken as a whole do not intend to incur debts beyond their ability to pay such debts as they mature.  The cash flow of the Note Parties taken as a whole, after taking into account all anticipated uses of the cash of the Note Parties taken as a whole, should at all times be sufficient to pay all such amounts on or in respect of debt of the Note Parties when such amounts are anticipated to be required to be paid.

 

SECTION 6.                         REPRESENTATIONS OF THE PURCHASERS.

 

Section 6.1.           Purchase for Investment.  Each Purchaser that purchases any Note after the Restatement severally represents that it is purchasing such Note for its own account or for one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of such Purchaser’s or their property shall at all times be within such Purchaser’s or their control.  Each such Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes.

 

Section 6.2.           Source of Funds.  Each Purchaser that purchases any Note after the Restatement severally represents that at least one of the following statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser hereunder:

 

(a)           the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the NAIC (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the 

 

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total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or

 

(b)           the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or

 

(c)           the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or

 

(d)           the Source constitutes assets of an “investment fund” (within the meaning of Part VI of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part VI of the QPAM Exemption), no employee benefit plan’s assets that are managed by the QPAM in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, represent more than 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM maintains an ownership interest in the Company that would cause the QPAM and the Company to be “related” within the meaning of Part VI(h) of the QPAM Exemption and (i) the identity of such QPAM and (ii) the names of any employee benefit plans whose assets in the investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization, represent 10% or more of the assets of such investment fund, have been disclosed to the Company in writing pursuant to this clause (d); or

 

(e)           the Source constitutes assets of a “plan(s)” (within the meaning of section IV of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in section IV(d) of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or

 

(f)            the Source is a governmental plan; or

 

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(g)           the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this clause (g); or

 

(h)           the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA.

 

As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA.

 

SECTION 7.                         INFORMATION AS TO COMPANY.

 

Section 7.1.           Financial and Business Information.  The Company shall deliver to each holder of a Note that is an Institutional Investor:

 

(a)           Quarterly Statements — within 45 days after the end of each of the first three quarterly fiscal periods in each fiscal year of the Company, Quarterly Unaudited Financial Statements;

 

(b)           Annual Statements — not later than the earlier to occur of (i) the 15th day after the Form 10-K Annual Report of the Company is filed with the SEC with respect to the end of each fiscal year of the Company and (ii) the 100th day after the end of each fiscal year of the Company, Annual Audited Financial Statements;

 

(c)           Management Letters — as soon as available and in any event within 10 Business Days after the date of issuance thereof (if any such management letter is ever issued), any management letter prepared by the independent public accountants who reported on the financial statements provided for in Section 7.1(b) above, with respect to the internal audit and financial controls of the Company and its Subsidiaries;

 

(d)           Annual Budget — on or prior to April 30 of each fiscal year of the Company, a management-prepared budget of the Company and its Subsidiaries for such fiscal year (which budget shall be limited to a Capital Expenditure line and an income statement presenting profitability to the EBITDA line and shall not include a balance sheet or cash flow statement);

 

(e)           Notice of Default or Event of Default — promptly, and in any event within five Business Days after a Responsible Officer of the Company or any of its Subsidiaries becoming aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 11(f), a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto;

 

(f)            Litigation, Material Adverse Effect, etc. — promptly, and in any event within five Business Days after any Responsible Officer of the Company or any of its Subsidiaries acquires knowledge of the occurrence of, or if the Company or any of its Subsidiaries causes or intends to cause, as the case may be, any of the following:

 

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(i)            the institution of any lawsuit, administrative proceeding or investigation affecting the Company or any of its Subsidiaries, including any examination or audit by the IRS, the adverse determination under which could reasonably be expected to cause a Material Adverse Effect;

 

(ii)           any development or change in the business or affairs of the Company or any of its Subsidiaries which has had or which is likely to have, in the reasonable judgment of any Responsible Officer of the Company or any of its Subsidiaries, a Material Adverse Effect;

 

(iii)          the occurrence of a default or event of default by the Company or any of its Subsidiaries under any agreement or series of related agreements to which it is a party, which default or event of default could reasonably be expected to have a Material Adverse Effect; and

 

(iv)          any written notice of any violation by, or investigation of the Company or any of its Subsidiaries in connection with any actual or alleged violation of any Legal Requirement imposed by the Environmental Protection Agency, the Occupational Safety Hazard Administration or any other Governmental Authority which has or is likely to have, in the reasonable judgment of any Responsible Officer of the Company or any of its Subsidiaries, a Material Adverse Effect.

 

(g)           Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries or relating to the ability of any Note Party to perform its obligations hereunder, under any Note Document and under the Notes as from time to time may be reasonably requested by any such holder of a Note;

 

(h)           Borrowing Base Certificate — a Borrowing Base Certificate and Product Position Report, each in form and substance reasonably acceptable to the Required Holders (i)(x) in the case of a Borrowing Base Certificate, within 15 Business Days of the end of each month certifying the Borrowing Base (as of the applicable Borrowing Base Reference Time) and (y) in the case of a Product Position Report, within 15 Business Days of the end of each month, (ii) at such other times as the Credit Parties shall elect, and (iii) following the occurrence of an Event of Default, at such other times as the Required Holders may request for the period covered thereby, in each case together with supporting documentation; and

 

(i)            Secured Qualified Hedging Obligations — promptly, and in any event within five Business Days after a Responsible Officer of the Company becomes aware of the occurrence of any ECP Collateral Shortfall under Section 2.5(f) of the Credit Agreement (as in effect on February 14, 2017) or that the Administrative Agent or any other Person has given any notice or taken any action with respect to a claimed Collateral insufficiency thereunder, a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto, in each case together with supporting documentation.

 

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Section 7.2.           Compliance Certificate.  Each set of financial statements delivered to a holder of a Note pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Financial Officer of the Company:

 

(a)           Covenant Compliance — setting forth the information (including detailed calculations) required in order to establish whether the Company was in compliance with the requirements of Sections 10.2(f)(5), 10.5(o), 10.6, 10.7(b), 10.7(f), 10.7(h), 10.7(i), 10.7(j), 10.7(m), 10.9(c), 10.9(f), 10.9(g), 10.9(h), 10.9(i), 10.9(k) and 10.12(a) during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence), and stating that no Test One Failure or Test Two Failure has occurred or, if a Test One Failure or Test Two Failure has occurred, specifying the nature and period of existence thereof and whether a Reset Event has occurred or will occur upon delivery of such statements and certification;

 

(b)           Event of Default — certifying that such Financial Officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including, without limitation, any such event or condition resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto;

 

(c)           Subsidiaries — identifying each Subsidiary of the Company that is otherwise required by the provisions of Section 9.15 to become a Guarantor but which has not yet done so as of the date of such certificate, and providing an explanation of the reasons why each such Subsidiary is not a Guarantor;

 

(d)           Guarantors — certifying that each Guarantor is and was a Subsidiary of the Company from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate.

 

Section 7.3.           Visitation.  The Company shall permit the representatives of each holder of a Note that is an Institutional Investor:

 

(a)           No Default — if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers, and to visit the other offices and properties of the Company and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and

 

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(b)           Default — if a Default or Event of Default then exists, at the expense of the Company to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries so long as the Company is afforded the opportunity to have a representative present), all at such times and as often as may be requested.

 

SECTION 8.                         PAYMENT AND PREPAYMENT OF THE NOTES.

 

Section 8.1.           Required Prepayments.  On December 19, 2017 and on each June 19 and December 19 thereafter to and including December 19, 2021 (subject to Section 22.2) the Company will prepay $25,000,000 principal amount (or such lesser principal amount as shall then be outstanding) of the Notes at 100% of the principal amount so prepaid and without payment of the Make-Whole Amount or any premium, provided that upon any partial prepayment of the Notes pursuant to Section 8.2, Section 8.3 or Section 8.4, the principal amount of each required prepayment of the Notes becoming due under this Section 8.1 on and after the date of such prepayment shall be reduced in the same proportion as the aggregate unpaid principal amount of the Notes is reduced as a result of such prepayment.

 

Section 8.2.           Optional Prepayments with Make-Whole Amount.  The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less than $1,000,000 (or any integral multiple of $100,000 in excess thereof) of the aggregate principal amount of the Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount.  The Company will give each holder of Notes written notice of each optional prepayment under this Section 8.2 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment.  Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.5), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Financial Officer of the Company as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation.  Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes a certificate of a Financial Officer of the Company specifying the calculation of such Make-Whole Amount as of the specified prepayment date.

 

Section 8.3.           Offer to Prepay Notes in the Event of a Change of Control.

 

(a)           Notice of Change of Control.  The Company will, within five Business Days after any Responsible Officer of the Company or any of its Subsidiaries has knowledge of the occurrence of any Change of Control or, in the case of any Change of Control the consummation or finalization of which would involve any action of the Company, at least 20 days prior to such Change of Control, give written notice of such Change of Control to each

 

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holder of Notes.  If a Change of Control has occurred, such notice shall contain and constitute an offer by the Company to prepay the Notes as described in Section 8.3(b) and shall be accompanied by the certificate described in Section 8.3(e).  The Company shall, on or before the day on which it gives such written notice of such impending Change of Control, give telephonic notice thereof to each holder of Notes which shall have designated a recipient of such notices in Schedule A or by notice in writing to the Company.

 

(b)           Offer to Prepay Notes.  The offer to prepay Notes contemplated by Section 8.3(a) shall be an offer to prepay, in accordance with and subject to this Section 8.3, all, but not less than all, the Notes held by each holder (in this case only, “holder” in respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean such beneficial owner) on a date specified in such offer (the “Proposed Change of Control Prepayment Date”).  Such Proposed Change of Control Prepayment Date shall be not less than 10 days and not more than 30 days after the date of such offer (if the Proposed Change of Control Prepayment Date shall not be specified in such offer, the Proposed Change of Control Prepayment Date shall be the 20th day after the date of such offer).

 

(c)           Acceptance; Rejection.  The Company shall, on or before the seventh day prior to the Proposed Change of Control Prepayment Date, give telephonic re-notification and confirmation thereof to each holder which shall have designated a recipient of such notices in either Schedule A or by notice in writing to the Company.  A holder of Notes may accept the offer to prepay made pursuant to this Section 8.3 by causing a notice of such acceptance to be delivered to the Company on or before the second day prior to the Proposed Change of Control Prepayment Date.  A failure by a holder of Notes to respond to an offer to prepay made pursuant to this Section 8.3 on or before such date shall be deemed to constitute an acceptance of such offer by such holder.  Two Business Days prior to the Proposed Change of Control Prepayment Date, the Company shall deliver to each holder of Notes a certificate of a Financial Officer of the Company specifying the calculation of the Make-Whole Amount as of the Proposed Change of Control Prepayment Date.

 

(d)           Prepayment.  Prepayment of the Notes to be prepaid pursuant to this Section 8.3 shall be at (i) 100% of the principal amount of the Notes, plus (ii) interest accrued to the actual date of such prepayment, plus (iii) the Make-Whole Amount.  The prepayment shall be made on the Proposed Change of Control Prepayment Date.

 

(e)           Officer’s Certificate.  Each offer to prepay the Notes pursuant to this Section 8.3 shall be accompanied by a certificate, executed by a Financial Officer of the Company and dated the date of such offer, specifying: (i) the Proposed Change of Control Prepayment Date; (ii) that such offer is made pursuant to this Section 8.3; (iii) the principal amount of each Note offered to be prepaid; (iv) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed Change of Control Prepayment Date; (v) the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the Proposed Change of Control Prepayment Date); (vi) that the conditions of this Section 8.3 have been fulfilled; and (vii) in reasonable detail, the nature and date of the Change of Control.

 

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Section 8.4.           Required Prepayments in the Event of Certain Dispositions or Incurrence of Prohibited Indebtedness.  In the event that either (a) any Note Party makes a prepayment in respect of any Credit Agreement Obligations due to a Disposition that occurs while an Event of Default exists or from proceeds of a Disposition held by the Collateral Agent in a Controlled Account while a Default or an Event of Default exists or would result from such Disposition, or (b) any Note Party incurs any Indebtedness (other than Permitted Indebtedness), the Company shall prepay the principal amount of the Notes equal to the Ratable Portion of the Net Proceeds of such Disposition or received by such Note Party as the result of such incurrence of Indebtedness, as the case may be, at 100% of the principal amount prepaid together with accrued interest thereon to the date of prepayment and the Make-Whole Amount, if any, with respect thereto.  Each prepayment under clause (a) above shall be made at the time of such prepayment of the Credit Agreement Obligations.  Each prepayment under clause (b) above shall be made not later than five Business Days following the incurrence of the Indebtedness described in clause (b).  The provisions of this Section 8.4 shall not be deemed to be implied consent to any Disposition or incurrence of Indebtedness otherwise prohibited by the terms and conditions of this Agreement.

 

Section 8.5.           Allocation of Partial Prepayments.  In the case of each partial prepayment of the Notes pursuant to Section 8.1, Section 8.2 or Section 8.4, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

 

Section 8.6.           Maturity; Surrender, Etc.  In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment, together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any.  From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue.  Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note.

 

Section 8.7.           Purchase of Notes.  The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes.  The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment or prepayment of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes.

 

Section 8.8.           Make-Whole Amount.

 

“Make-Whole Amount” means, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero.  For the purposes of determining the Make-Whole Amount, the following terms have the following meanings:

 

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“Called Principal” means, with respect to any Note, the principal of such Note that is to be prepaid pursuant to Section 8.2, Section 8.3 or Section 8.4 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.

 

“Discounted Value” means, with respect to the Called Principal of any Note, the amount obtained by (i) discounting to present value all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal.

 

“Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50% over the yield to maturity implied by yield(s) reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on-the-run U.S. Treasury securities (“Reported”) having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there are no such U.S. Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to maturity will be determined by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between the yields Reported for the applicable most recently issued actively traded on-the-run U.S. Treasury securities with the maturities (1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.  `

 

If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then “Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50% over the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.

 

“Remaining Average Life” means, with respect to any Called Principal, the number of years obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of years, computed on the basis of a 360-day year composed of twelve 30-day months, that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

 

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“Remaining Scheduled Payments” means, with respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.6 or Section 12.1.

 

“Settlement Date” means, with respect to the Called Principal of any Note, the date on which such Called Principal is to be prepaid pursuant to Section 8.2, Section 8.3 or Section 8.4 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.

 

Section 8.9.           Additional Interest.  With respect to all Notes:

 

(a)           upon the occurrence of a Trigger Event, (i) (A) solely with respect to a Test One Failure, the interest rate with respect to the Notes shall be immediately and automatically increased by 0.50% per annum for the remaining life of the Notes (subject to the provisions of Section 8.9(b)), and (B) with respect to a Test Two Failure, the interest rate with respect to the Notes shall be immediately and automatically increased by an additional 0.50% per annum (which such increase will be in addition to the then existing increase specified in clause (A) of this Section 8.9(a)(i) for an aggregate increase in the interest rate with respect to the Notes of 1.00% per annum) for the remaining life of the Notes (subject to the provisions of Section 8.9(b)) and (ii) the Company shall, on the next date on which interest payments are due to be made under the terms of the Notes (each such date, an “Interest Payment Date”) following any such Trigger Event, pay to each holder of such Notes a one-time payment for such Trigger Event in an amount equal to the product of (x)(I) if such Trigger Event resulted solely as a result of a Test One Failure, 0.50%, (II) if such Trigger Event resulted solely as a result of a Test Two Failure, 0.50% (i.e., a Test One Failure had occurred in a prior period and no Reset Event had occurred for such Test One Failure) and (III) if such Trigger Event exists as a result of both a Test One Failure and a Test Two Failure, 1.00%, (y) the aggregate principal amount of Notes held by such holder or its predecessor holder as of the end of the most recently completed fiscal quarter of the Company for which the Company is required to deliver financial statements pursuant to Sections 7.1 (a) or (b), as the case may be, and giving effect to any reduction in principal of the Notes since the end of such fiscal quarter, and (z) a fraction, the numerator of which is the number of days from and including the end of the most recently completed fiscal quarter described in the immediately preceding clause (y) to, but excluding the date of, the occurrence of the Trigger Event and the denominator of which is 360;

 

(b)           if, at any time following (I) a Trigger Event where a Test Two Failure existed, no Test Two Failure shall continue to exist or (II) a Trigger Event where a Test One Failure existed, no Test One Failure shall continue to exist (each a “Reset Event”; provided, however, that such Reset Event shall be deemed to occur on the date upon which the Company delivers its quarterly or annual financial statements and accompanying certificates pursuant to Sections 7.1 and 7.2 demonstrating satisfaction of the aforementioned conditions), (i) the interest rate with respect to the Notes shall be immediately and automatically reduced by 0.50% (or, with

 

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respect to a Reset Event occurring as a result of the satisfaction of both clauses (I) and (II) above, 1.00%) per annum for the remaining life of the Notes (subject to the provisions of Sections 8.9(a) and (c)) and (ii) each holder of Notes shall apply a one-time credit, on the next Interest Payment Date of the Notes following such Reset Event, to the accrued interest owed by the Company with respect to the Notes by an amount equal to the product of (x)(A) if only one of the above clauses (I) and (II) caused the Reset Event, 0.50% or (B) if both of the above clauses (I) and (II) caused the Reset Event, 1.00%, (y) the aggregate principal amount of Notes held by such holder or its predecessor holder as of the end of the most recently completed fiscal quarter of the Company for which the Company is required to deliver financial statements pursuant to Section 7.1 (a) or (b), as the case may be, and giving effect to any reduction in principal of the Notes since the end of such fiscal quarter, and (z) a fraction, the numerator of which is the number of days from and including the end of the most recently completed fiscal quarter described in the immediately preceding clause (y) to, but excluding the date of, the occurrence of the Reset Event and the denominator of which is 360;

 

(c)           notwithstanding anything in this Section 8.9 to the contrary, another Trigger Event may follow a Reset Event, in which case the provisions of Sections 8.9(a) and (b) shall apply; and

 

(d)           for the avoidance of doubt and notwithstanding anything in this Section 8.9 or otherwise in this Agreement to the contrary, upon the occurrence and during the continuance of an Event of Default, the interest rate with respect to the Notes shall be at the default rate as set forth in clause (b) of the first paragraph of each Note, and such rate shall be automatically increased by the applicable rate specified in Section 8.9(a) for all periods during which a Trigger Event continues to exist.

 

SECTION 9.                         AFFIRMATIVE COVENANTS.

 

From the Restatement Effective Date and thereafter so long as any of the Notes are outstanding, the Company covenants that:

 

Section 9.1.           Compliance with Laws.  Without limiting Section 10.4, the Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, ERISA, Environmental Laws, the USA PATRIOT Act and the other laws and regulations that are referred to in Section 5.16, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

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Section 9.2.           Insurance.

 

(a)           The Company will, and will cause each Guarantor to, maintain the insurance required by this Section 9.2 at all times by financially sound and reputable insurers (or, to the extent consistent with prudent business practice, a program of self-insurance).

 

(b)           The Company will, and will cause each of Guarantor to, maintain insurance, to such extent, on such of its Properties and against such liabilities, casualties, risks and contingencies, including fire, flood and other risks insured against by extended coverage, employee liability, business interruption, worker’s compensation and public liability insurance against claims for personal injury or death or property damage occurring upon, in, about or in connection with its operations and with the use of any Properties owned, occupied or controlled by the Company or any of its Subsidiaries, in each case at least as is customary with companies similarly situated and in the same or similar businesses, and subject to deductibles that are no greater than are customary with such companies, provided, however, that such insurance shall insure the Property of the Company and the Guarantors against all risk of physical damage, including loss by fire, explosion, flood, theft, fraud and such other casualties as may be reasonably satisfactory to the Required Holders, but in no event at any time in an amount less than the replacement value of the Collateral.

 

(c)           The Company will, and will cause each of Guarantor to, maintain such other insurance as may be required by applicable law and furnish to any holder of Notes, upon written request, full information as to the insurance carried.

 

(d)           All insurance covering Property subject to a Lien in favor of the Collateral Agent for the benefit of the Secured Parties granted pursuant to the Security Documents shall provide that, in the case of each separate loss, the full amount of insurance proceeds shall be payable to the Collateral Agent, and all liability insurance maintained by the Note Parties shall name the Collateral Agent and the holders of Notes as additional insured.  All such property and liability insurance shall further provide for at least thirty (30) days’ (ten (10) days’ with respect to cancellation for non-payment of premium or at the request of the insured) prior written notice to the Collateral Agent of the cancellation thereof. The Company shall provide prompt written notice to the Collateral Agent of the substantial modification of such insurance.  If any Note Party fails to maintain such insurance, the Collateral Agent may, but shall not be obligated to, arrange for such insurance, but at the Company’s expense and without any responsibility on the Collateral Agent’s part for obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the collection of claims.  Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent shall have the sole right, in the name of the holders of Notes, any Note Party and its Subsidiaries, to file claims under any insurance policies, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies.  The Note Parties shall deliver to the Collateral Agent and any holder of Notes requesting same certificates evidencing renewal of the insurance required hereunder and evidence that the premiums have been paid before termination of any insurance policies required hereunder.  The Note Parties shall deliver to the Collateral Agent and any holder of Notes requesting same copies of the underlying insurance policies.

 

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(e)           If a Mortgaged Property is a Flood Hazard Property, the Company will, and will cause each Guarantor to, use commercially reasonable efforts to obtain flood insurance in such reasonable total amount as the Collateral Agent may from time to time reasonably require, and otherwise to ensure compliance with the NFIP as set forth in applicable Flood Laws.

 

Section 9.3.           Businesses and Properties.  Except as could not reasonably be expected to result in a Material Adverse Effect, the Company will, and will cause each Guarantor to, at all times: (a) do or cause to be done all things necessary to obtain, preserve, renew and keep in full force and effect its existence and the rights, licenses, permits, franchises, and Intellectual Property material to the conduct of its businesses; (b) maintain and operate such businesses in the same general manner in which they are presently conducted and operated; (c) comply in all material respects with all Legal Requirements applicable to such businesses and the operation thereof, whether now in effect or hereafter enacted (including all Legal Requirements relating to public and employee health and safety and all Environmental Laws); and (d) maintain, preserve and protect all Property material to the conduct of such businesses and keep such Property in good repair, working order and condition, and from time to time make, or cause to be made, all needful and proper repairs, renewals, additions, improvements and replacements thereto reasonably necessary in order that the business carried on in connection therewith may be properly conducted at all times. Notwithstanding the foregoing provisions of this Section 9.3, the Note Parties shall not be required to comply with the requirements of clauses (a), (b) or (d) of this Section 9.3 with respect to any Properties (i) at which operations shall have been permanently discontinued and (ii) to the extent the Note Parties shall have determined that the preservation and maintenance of such Properties and the rights, licenses and permits related to such Properties, as applicable, are no longer desirable in the conduct of the business of the Note Parties and their Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any material respect to the holders of Notes, or that the preservation or maintenance thereof is not necessary in connection with any transaction permitted under the Note Documents.

 

Section 9.4.           Taxes.  The Company will, and will cause each of its Subsidiaries to, pay and discharge promptly when due all material taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or in respect of its Property before the same shall become delinquent or in default, as well as all lawful material claims for labor, materials and supplies or otherwise, which, if unpaid, might give rise to Liens upon such Property or any part thereof, unless being diligently contested in good faith by appropriate proceedings and as to which adequate reserves in an amount not less than the aggregate amount secured by such Liens have been established in accordance with GAAP; provided, however, that such contested amounts giving rise to such Liens shall be promptly paid upon commencement of any procedure or proceeding to foreclose any of such Liens unless the same shall be validly stayed by a court of competent jurisdiction or a surety bond, which is satisfactory in all respects to the Required Holders and is delivered to the holders of Notes in an amount no less than such contested amounts.

 

Section 9.5.           Corporate Existence, Etc.  The Company will at all times preserve and keep its organizational existence in full force and effect.  Subject to Sections 10.2, the Company will at all times preserve and keep in full force and effect the organizational existence of each of Guarantor and all rights and franchises of the Company and the Guarantors unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force

 

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and effect such corporate existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect.

 

Section 9.6.           Books and Records.  The Company will, and will cause each of its Subsidiaries to, maintain financial records and books in accordance with accepted financial practice and GAAP.

 

Section 9.7.           ERISA.  The Company will, and will cause each of its Subsidiaries to, at all times:  (a) make contributions to each Plan in a timely manner and in an amount sufficient to comply with the minimum funding standards requirements of ERISA, except where a failure to do so would not reasonably be expected to result in a material liability to any Note Party; (b) promptly upon acquiring knowledge of (i) any Reportable Event in connection with any Plan or (ii) any Prohibited Transaction in connection with any Plan, that in each case, would reasonably be expected to result in a material liability to any Note Party, furnish the holders of Notes a statement setting forth the details thereof and the action, if any, which such Note Party proposes to take with respect thereto and, if any and when known, any action taken by the IRS or Department of Labor with respect thereto; (c) notify the holders of Notes promptly upon receipt by any Note Party thereof of any notice of the institution of any proceedings or other actions which would reasonably be expected to result in the termination of any Plan by the PBGC and furnish the holders of Notes with copies of such notice; (d) pay when due, or within any applicable grace period allowed by the PBGC, all required premium payments to the PBGC, except where a failure to do so would not reasonably be expected to result in a material liability to any Note Party; (e) furnish the holders of Notes with copies of the annual report for each Plan filed with the IRS not later than 10 Business Days after any holder of Notes requests such report; (f) furnish the holders of Notes with copies of any request for waiver of the funding standards or extension of the amortization periods required by sections 302 and 304 of ERISA or sections 412 and 431 of the Code promptly after the request is submitted to the Secretary of the Treasury, the Department of Labor or the IRS, as the case may be; and (g) pay when due all installment contributions required under section 303 of ERISA or section 430 of the Code, except where a failure to do so would not reasonably be expected to result in a material liability to any Note Party, or within 30 days of a failure to make any such required contributions when due furnish each holder of Notes with written notice of such failure.

 

Section 9.8.           Environmental Matters.  Without limiting the generality of Section 9.3(c), the Company will, and will cause each of its Subsidiaries to, (a) comply in all material respects with each Environmental Law and each Environmental Permit; (b) obtain and maintain in effect all Environmental Permits necessary to the conduct of its business, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) keep its Real Property Assets free of any Environmental Claims or Environmental Liabilities that could reasonably be expected to have a Material Adverse Effect.  In the event that the Company or any of its Subsidiaries receives any written demand or claim from any Person with respect to any such Environmental Liabilities, the Company agrees to promptly take action and thereafter diligently pursue the same to completion in accordance with Environmental Law.

 

Section 9.9.           End of Fiscal Year.  The Company will cause each of its fiscal years and the fiscal years of each of its Subsidiaries to end on March 31st of the applicable year.

 

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Section 9.10.        Perform Other Covenants.  The Company will, and will cause each of its Subsidiaries to, duly comply with all of the terms and covenants contained in this Agreement and in each of the other Note Documents at all times and places and in the manner set forth therein, and except for the filing of continuation statements and the making of other filings at the direction of the Collateral Agent, at all times take all actions necessary to maintain the Liens and security interests provided for under or pursuant to this Agreement and the Security Documents as valid perfected first priority Liens on the Collateral intended to be covered thereby (subject only to other Liens expressly permitted by Section 10.5) and supply all reasonably requested information to the Collateral Agent necessary for such maintenance.

 

Section 9.11.        Receivables and Other Collateral Matters.  The Company will, and will cause each Guarantor to, maintain books and records pertaining to the respective Collateral owned by each of them in detail, form and scope as the Collateral Agent shall reasonably require, and concurrently with the delivery by any Note Party to the Collateral Agent of any accounts receivable aging or any sales report summary under the Credit Agreement, the Note Parties will disclose to the Collateral Agent which Receivables, if any, arise out of contracts with the United States or any department, agency or instrumentality thereof, and will, upon request from the Collateral Agent, use commercially reasonable efforts to execute or cause to be executed any instruments and take any steps required by the Collateral Agent in order that all monies due or to become due under any such contract shall be assigned to the Collateral Agent for the benefit of the Secured Parties and notice thereof given under the Federal Assignment of Claims Act.  The Company will, and will cause each Guarantor to, promptly after any Responsible Officer of any of them learns thereof, report to the Collateral Agent and any holder of Notes requesting same any material loss or destruction of, or substantial damage to, any portion or component of the Collateral with a Fair Market Value in excess of $5,000,000, and any other matters materially affecting the value, enforceability or collectability of any of the Collateral with a Fair Market Value in excess of $5,000,000.

 

Section 9.12.        Hedging Strategy; Risk Management Policy.  The Company will, and will cause each of its Subsidiaries to:

 

(a)           Only enter into Hedging Agreements in the ordinary course of business consistent with prudent industry practices, and not enter into any Hedging Agreements that are speculative in nature.

 

(b)           (i) Keep the Risk Management Policy in full force and effect, and in accordance therewith, conduct its business in compliance with the Risk Management Policy, and (ii) ensure that the Note Parties’ Net Open Positions at no time exceed (A) 350,000 barrels or barrel equivalents of Crude Oil, (B) 450,000 barrels of Natural Gas Liquids, (C) 1,500,000 MMBTUs of Natural Gas or (D) 550,000 barrels or barrel equivalents of Refined Petroleum Products (including renewables) and Renewable Products.

 

(c)           Provide written notice to the holders of Notes of any material amendment, modification, supplement or other change to the Risk Management Policy not later than 10 Business Days after any such amendment, modification, supplement or other change; provided that changes in personnel reflected in the Risk Management Policy will not be deemed “material” for purposes of this Section 9.12(c) and provided further that no changes shall be

 

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made by the Note Parties that would have the effect of causing the Note Parties’ Net Open Positions to exceed (i) 350,000 barrels or barrel equivalents of Crude Oil, (ii) 450,000 barrels of Natural Gas Liquids, (iii) 1,500,000 MMBTUs of Natural Gas or (iv) 550,000 barrels or barrel equivalents of Refined Petroleum Products and Renewable Products.

 

Section 9.13.        Security Documents.  The Notes and the Guaranty Agreement shall be secured by the Collateral and the holders of Notes are entitled to the benefits thereof.  The Company will, and will cause each Guarantor to, duly execute and deliver the Security Documents, all consents of third parties necessary to permit the effective granting of the Liens created thereby (subject only to Liens permitted under Section 10.5), and other documents, consistent with the terms of this Agreement and the other Note Documents, as may be reasonably required by the Required Holders to grant to the Collateral Agent, for the ratable benefit of the Secured Parties, a valid, perfected and enforceable first priority Lien on and security interest in the Collateral (subject only to the Liens permitted under Section 10.5), including any and all original stock certificates, stock transfer powers, assignments and other documents and instruments necessary or desirable under the laws of any applicable jurisdiction with regard to the Equity Interests covered by any Security Document.

 

Section 9.14.        Filing and Recording.  The Company will, and will cause each Guarantor to, at their sole cost and expense, cooperate with the Collateral Agent in causing all financing statements, Intellectual Property Security Agreements and other Security Documents to be duly recorded and/or filed or otherwise perfected in all places necessary or desirable in the Collateral Agent’s discretion to perfect the Liens of the Collateral Agent, and the Note Parties shall take such other actions as the Collateral Agent may reasonably request, in order to perfect and protect the Liens of the Collateral Agent, for the ratable benefit of the Secured Parties, in the Collateral.  The Company, on behalf of itself and each Guarantor, to the extent permitted by law, hereby authorizes the Collateral Agent to file any financing statement in respect of any Lien created pursuant to the Security Documents which may at any time be required to perfect such Liens or which, in the opinion of the Collateral Agent, may at any time be desirable and file the same, and the Note Parties hereby irrevocably designate the Collateral Agent, its respective agents, representatives and designees as its agent and attorney-in-fact for this purpose.  In the event that any re-recording or refiling thereof (or the filing of any statements of continuation or assignment of any financing statement) is required to protect and preserve such Lien, the Company will, and will cause each Guarantor to, at the Note Parties’ cost and expense, cause the same to be recorded and/or refiled at the time and in the manner requested by the Collateral Agent.  Any such financing statements, continuation statements and amendments may describe the Collateral covered thereby as “all assets of the debtor” (or other words to that effect) and include such other information that the Collateral Agent may deem necessary or desirable.

 

Section 9.15.        Guarantors; Joinder Agreements.  The Company will promptly inform the holders of Notes of the creation or acquisition of any Subsidiary (other than an Excluded Subsidiary) of the Company or any Subsidiary (other than an Excluded Subsidiary) of the Company ceasing to be an Immaterial Subsidiary and, not later than 30 days (or such additional time, not to exceed 30 days, as the Collateral Agent (or with respect to deliveries under clause (c)(ii) below, the Required Holders, shall agree)) following such creation or acquisition or cessation of Immaterial Subsidiary status, cause each such Subsidiary (other than an Excluded Subsidiary) that is not an Immaterial Subsidiary to (x) become a Guarantor by execution and

 

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delivery to the holders of Notes of a joinder to the Guaranty Agreement, in the form attached to the Guaranty Agreement, and (y) become a party to the Security Agreement by execution and delivery to the holders of Notes and the Collateral Agent a Joinder Agreement, and cause:

 

(a)           (i) a first priority perfected security interest to be granted to the Collateral Agent in (w) all of the Equity Interests issued by a direct or indirect Domestic Subsidiary to the Note Parties or any Domestic Subsidiary thereof, (x) all of the Equity Interests issued to any such Domestic Subsidiary or any Note Party by any foreign Subsidiary that is not an Excluded Subsidiary, (y) all of the Equity Interests issued to a foreign Subsidiary that is not an Excluded Subsidiary by any Subsidiary that is not an Excluded Subsidiary and (z) 65% of the voting Equity Interests and all of the non-voting Equity Interests issued to such Domestic Subsidiary by any Excluded Subsidiary or issued by any Excluded Subsidiary to any foreign Subsidiary that is not an Excluded Subsidiary;

 

(b)           each such Subsidiary (other than an Excluded Subsidiary) to grant to the Collateral Agent a security interest (subject only to Liens permitted under Section 10.5), in all of its personal property (other than Equity Interests, which shall be governed by clause (a) above) and all products and proceeds thereof (subject to similar exceptions as set forth in the Security Documents); provided that (1) no filings shall be required to be delivered with respect to Leasehold Property; (2) no Control Agreements shall be required to be delivered with respect to Excluded Deposit Accounts, and (3) the Collateral Agent’s lien will not be required to be noted on the certificate of title of any motor vehicle or rolling stock and such certificates of title need not be delivered to the Collateral Agent; and

 

(c)           such Subsidiary to deliver (i) to the Collateral Agent such other joinder agreements, security agreements, pledge agreements, Control Agreements, other Security Documents, Uniform Commercial Code and other customary lien search reports, legal opinions and other documents (including Organizational Documents and the documentation and other information required by regulatory authorities under applicable know your customer and Anti-Money Laundering Laws) as the Collateral Agent may reasonably require (with copies of the foregoing being delivered by the Company to the holders of the Notes), each in form and substance reasonably satisfactory to the Collateral Agent, and (ii) to the holders of the Notes, such guaranties (or joinders to the Guaranty Agreement), legal opinions and other related documents as the Required Holders may reasonably require, each in form and substance reasonably satisfactory to the Required Holders; provided, however, that (x) any such Subsidiary that is an Excluded Subsidiary shall not be required to become a Guarantor or grant any Liens hereunder or under any other Note Document; (y) until such Subsidiary becomes a party to the Guaranty Agreement pursuant to the terms of this Agreement it shall not become a Note Party; and (z) deliveries, if any, required by this clause (c) shall be due within 45 days of such creation or acquisition (which period may be extended by the Collateral Agent in the case of items to be delivered pursuant to clause (i) above and by the Required Holders in the case of items to be delivered pursuant to clause (ii) above); provided that, no Subsidiary that has been designated by the Company as an Exempted Joint Venture shall be required to become a Guarantor or grant any Liens hereunder or under any other Note Document to the extent that such Subsidiary continues to qualify as an Exempted Joint Venture; it being understood that no Exempted Joint Venture shall be eligible for an exemption from the requirements of this

 

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Section 9.15(c) if at the time of designation by the Company, the Investment basket set forth in Section 10.9(l) of this Agreement has been exhausted.

 

Notwithstanding the foregoing, the “Collateral” shall exclude, and the Collateral Agent shall not be required to take Liens upon, those assets as to which the Collateral Agent determines in its discretion the cost of obtaining a Lien therein in favor of the Collateral Agent or the perfection thereof are excessive in relation to the benefit to the holders of Notes and the Secured Credit Agreement Obligations afforded by such Lien.  In addition, the Liens on the Collateral securing the Note Obligations and the Secured Credit Agreement Obligations will be released and the Note Obligations and the Secured Credit Agreement Obligations will become and remain unsecured, at the election of the Company, so long as at the time of such election (a “Collateral Release Date”), (a) the Company has an Investment Grade Rating from at least two of S&P, Moody’s and/or Fitch, (b) no other Liens shall exist except for Liens permitted by Section 10.5, (c) no Default shall exist and (d) the Company has delivered to the holders of Notes and the Collateral Agent a certificate of a Responsible Officer thereof certifying that the foregoing conditions have been satisfied and stating that such certificate shall constitute a “Collateral Release Notice”; provided that upon the occurrence of any Collateral Reinstatement Date, all Liens on all property and assets of the Note Parties that would have constituted Collateral in favor of the Collateral Agent but for such release on the Collateral Release Date shall, at the sole cost and expense of the Note Parties, be automatically reinstated without further act or consent by any Person on each Collateral Reinstatement Date and all actions necessary, or requested by the Collateral Agent to provide to the Collateral Agent, for the benefit of the Secured Parties, valid, first priority perfected security interests (subject only to Liens permitted by Section 10.5) in such Collateral (including without limitation the delivery of documentation and taking of actions of the type described in clause (b) and (c) above and Section 9.17) shall be taken within (x) with respect to the filing of UCC-1 financing statements and similar PPSA filings on all reinstated Collateral that can be perfected by such a filing under 9-310 of the UCC, 30 days from such Collateral Reinstatement Date, (y) with respect to the execution of Control Agreements on all reinstated Collateral that qualifies as “investment property” or “deposit accounts” (as defined in the UCC), 60 days from such Collateral Reinstatement Date, and (z) with respect to (i) all leasehold interests on personal property, and (ii) all Mortgages, 90 days from such Collateral Reinstatement Date; provided that in the case of clause (z) the Collateral Agent may extend such deadline by up to 75 days by notifying the Company and the holders of the Notes of such extension upon a request for such an extension from the Company.  Each holder of a Note expressly approves the release and the retaking of the Collateral as set forth above.  The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any Lender as consideration for or as an inducement to the entering into by Lender of any waiver or amendment of any of the terms and provisions of the Credit Agreement in connection with the above-described collateral release unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of a Note.

 

Section 9.16.        Further Assurances.  Upon request by the Collateral Agent, the Company will, and will cause each Guarantor to, promptly execute and deliver any and all other and further agreements and instruments and take such further action as may be reasonably

 

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requested by the Collateral Agent to grant, preserve, protect and perfect the first priority Liens created or intended to be created by the Security Documents in the Collateral.

 

Section 9.17.        Matters Relating to Owned Real Property Collateral.

 

(a)           As of the date hereof, Schedule 9.17 sets forth the list of all Real Property Assets subject to a Mortgage in favor of the Collateral Agent for the benefit of the Secured Parties (each such Real Property Asset and any additional Real Property Asset that becomes subject to a Mortgage, a “Mortgaged Property”).  Subject to Section 9.23, from and after the date hereof, in the event that (i) any Note Party acquires any fee interest in any Real Property Asset other than an Excluded Real Property Asset, or (ii) at the time any Person becomes a Subsidiary (other than a Subsidiary that is not required to become Guarantor) or, if later, a Guarantor, such Person owns or holds any fee interest in any Real Property Asset other than an Excluded Real Property Asset, such Note Party shall deliver to the Collateral Agent (with copies to each holder of a Note) within 45 days (which period may be extended in the Collateral Agent’s discretion) after such Person acquires such Mortgaged Property or becomes a Subsidiary or Guarantor, as applicable, the following:

 

(i)            Mortgages.  A fully executed (and where required, notarized) Mortgage, in proper form for recording in the applicable jurisdiction, encumbering the interest of such Note Party in such Mortgaged Property (and upon the delivery of any Mortgage, in proper form for recording, to the Collateral Agent with respect to any Real Property Asset, Schedule 9.17 shall be deemed to be modified to include a reference to such Mortgaged Property), and the Collateral Agent shall have the right in its sole discretion to record such Mortgage;

 

(ii)           Deeds.    Copies of all deeds by which such Note Party received title with respect to each Mortgaged Property that is a fee interest in a Real Property Asset;

 

(iii)          Flood Hazard.  With respect to such Mortgaged Property: (A) a completed standard “life of loan” flood hazard determination form (“Flood Determination Form”); (B) if the improvement(s) to the Mortgaged Property is located in a special flood hazard area, a notification to the Company (or other Note Party) (the “Company Notice”) and (if applicable) notification to the applicable Note Party that flood insurance coverage under the National Flood Insurance Program (“NFIP”) is not available because the community does not participate in the NFIP; and (C) if the Company Notice is required to be given and flood insurance is available in the community in which the property is located, a copy of one of the following: the flood insurance policy, the Note Party’s application for a flood insurance policy plus proof of premium payment, a declaration page confirming that flood insurance has been issued, or such other evidence of flood insurance reasonably satisfactory in coverage and amounts to the Collateral Agent;

 

(iv)          Surveys.  With respect to each Mortgaged Property with a Fair Market Value exceeding $5,000,000 to the extent required by the Collateral Agent, maps or plats of an as-built survey of each Mortgaged Property certified to the Collateral Agent and the Title Company in a manner reasonably satisfactory to the Collateral Agent and the Title Company, dated a date reasonably satisfactory to the Collateral Agent and the Title

 

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Company by an independent professional licensed land surveyor, which maps or plats and the surveys on which they are based shall be made in accordance with the Minimum Standard Detail Requirements for Land Title Surveys jointly established and adopted by the American Land Title Association and the American Congress on Surveying and Mapping in 2005 with all items from Table A thereof completed, except for Nos. 5 and 12 (or such other survey standards acceptable to the Collateral Agent), as well as the Collateral Agent’s own survey requirements;

 

(v)           Appraisals.  With respect to each Mortgaged Property with a Fair Market Value exceeding $5,000,000 to the extent required by the Collateral Agent, a current appraisal of each Mortgaged Property addressed to the Collateral Agent prepared by a qualified independent appraiser acceptable to the Collateral Agent who is a member of the American Institute of Real Estate Appraisers which must have been prepared in accordance with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and must comply with Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (or such other appraisal standards acceptable to the Collateral Agent).  The appraisal must show an appraised value of the Mortgaged Property which is reasonably satisfactory to the Collateral Agent, and all assumptions on which the appraisal is based must be reasonably acceptable to the Collateral Agent;

 

(vi)          Zoning.  With respect to each Mortgaged Property with a Fair Market Value exceeding $5,000,000 to the extent required by the Collateral Agent, evidence reasonably satisfactory to the Collateral Agent that each Mortgaged Property, and the uses of each Mortgaged Property, are in compliance in all material respects with all applicable zoning laws (the evidence submitted as to which should include the zoning designation made for each Mortgaged Property, the permitted uses of each such Mortgaged Property under such zoning designation and, if available, zoning requirements as to parking, lot size, ingress, egress and building setbacks);

 

(vii)         Title Insurance.  With respect to each Mortgaged Property with a Fair Market Value exceeding $5,000,000 to the extent required by the Collateral Agent (1) 2006 ALTA loan title insurance policies or other title insurance policies acceptable to the Collateral Agent (the “Mortgage Policies”) issued by the Title Company with respect to the Mortgaged Property, in an amount not less than the Fair Market Value of the Mortgaged Property, or such lesser amount as may be reasonably satisfactory to the Collateral Agent, insuring fee simple title to each such Mortgaged Property vested in such Note Party and assuring the Collateral Agent that such Mortgage creates a valid and enforceable first priority Lien on such Mortgaged Property (any easements benefitting the Mortgaged Property shall be additional insured parcels under the Mortgage Policy), subject only to any standard or other exceptions as may be reasonably acceptable to the Collateral Agent and which appear as exceptions on Schedule B to the applicable Mortgage Policy, which Mortgage Policy shall include endorsements (to the extent available) for customary matters reasonably requested by the Collateral Agent; and (2) evidence reasonably satisfactory to the Collateral Agent that such Note Party has (a) delivered to the Title Company all certificates and affidavits required by the Title Company in connection with the issuance of the Mortgage Policy and (b) paid to the Title

 

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Company or to the appropriate Governmental Authorities all expenses and premiums of the Title Company in connection with the issuance of the Mortgage Policy and all recording and stamp taxes (including mortgage recording taxes, fees and other charges and intangible taxes) payable in connection with recording the Mortgage in the appropriate real estate records;

 

(viii)        Title Related Documents.  Copies of all recorded documents listed as exceptions to title or otherwise referred to in each Mortgage Policy;

 

(ix)          Opinion of Counsel.  With respect to each Mortgaged Property with a Fair Market Value exceeding $5,000,000 to the extent required by the Collateral Agent, (1) a favorable opinion of counsel (which counsel shall be reasonably satisfactory to the Collateral Agent), as to the due authorization, execution and delivery by such Note Party of such Mortgage and such other matters as the Collateral Agent may reasonably request, and (2) an opinion of counsel (which counsel shall be reasonably satisfactory to the Collateral Agent) in the state in which such Mortgaged Property is located with respect to the enforceability of the form of Mortgages to be recorded in such state and such other reasonable and customary matters (including any matters governed by the laws of such state regarding personal property security interests in respect of any Collateral) as the Collateral Agent may reasonably request, in each case in form and substance reasonably satisfactory to the Collateral Agent;

 

(x)           Environmental Audit.  With respect to each Mortgaged Property with a Fair Market Value exceeding $5,000,000, to the extent required by the Collateral Agent, a Phase I environmental site assessment report or reports for such Mortgaged Property in form, scope and substance reasonably satisfactory to the Collateral Agent and prepared by environmental consultants reasonably satisfactory to the Collateral Agent and accompanied by reliance letters where applicable; and

 

(xi)          Taxes.  Evidence reasonably satisfactory to the Collateral Agent that there are no outstanding material taxes, levies, duties, imposts, deductions, charges (including water and sewer charges), withholdings, assessments or impositions of any kind which have been due and payable for more than thirty (30) days with respect to such Mortgaged Property, except to the extent that any such matters are being contested in accordance with the terms of Section 9.4.

 

(b)           If at any time the book value of any Real Property Asset that at the time of its acquisition qualified as an Excluded Real Property Asset is subsequently written up as required by GAAP such that it exceeds the applicable value threshold to remain an Excluded Real Property Asset, such Real Property Asset shall cease to be an Excluded Real Property Asset and the applicable Note Party shall comply with the requirements of Section 9.17(a) with respect to such Real Property Asset, as if such Real Property Asset had been acquired on the date of such write-up.

 

(c)           If at any time the aggregate book value of all Real Property Assets that are Excluded Real Property Assets exceeds an amount equal to 5.0% of Partners’ Capital (the amount of any such excess, the “Excess Amount”), the company shall designate Excluded Real

 

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Property Assets having an aggregate book value equal to or in excess of the Excess Amount to be encumbered by a Mortgage in favor of the Collateral Agent.  The applicable Note Party shall comply with the requirements of Section 9.17(a) with respect to such designated Real Property Assets as if such Real Property Assets had been acquired on the date of such designation and all such designated Real Property Assets shall cease to be Excluded Real Property Assets while the applicable Note Parties pursue with reasonable diligence compliance with such Section 9.17(a) requirements.

 

Section 9.18.        Information Required by Rule 144A.  The Company will, upon the request of the holder of any Note, provide such holder, and any Qualified Institutional Buyer designated by such holder, such financial and other information as such holder may reasonably determine to be necessary in order to permit compliance with the information requirements of Rule 144A under the Securities Act in connection with the resale of Notes, except at such times as the Company is subject to the reporting requirements of section 13 or 15(d) of the Securities Exchange Act of 1934.

 

Section 9.19.        Covenant to Secure Notes Equally.  The Company will, if it or any Subsidiary shall create or assume any Lien upon any of its property or assets, whether now owned or hereafter acquired, other than Liens permitted by the provisions of Section 10.5 (unless prior written consent to the creation or assumption thereof shall have been obtained pursuant to Section 17.1), make or cause to be made effective provision whereby the Notes and the Guaranty Agreement will be secured by such Lien equally and ratably with any and all other Indebtedness thereby secured so long as any such other Indebtedness shall be so secured.

 

Section 9.20.        Future Guarantors.  Without limiting the provisions of Section 9.15, the Company will cause each Subsidiary (including any Subsidiary existing as of the date hereof and any subsequently acquired or organized Subsidiary) that Guarantees or becomes a co-obligor with the obligations of the Company or any of its Subsidiaries under the Credit Agreement or any other Indebtedness of the Company or any Subsidiary of the Company, in each case, to execute and deliver (i) the Guaranty Agreement and each other applicable Note Document in favor of the holders, each of which shall be duly executed by a Responsible Officer of such Subsidiary and (ii) such other certificates, resolutions, opinions and other documents (including the documentation and other information required by regulatory authorities under applicable know your customer and Anti-Money Laundering Laws) as the Required Holders shall reasonably request, each of which shall be in form and substance satisfactory to the Required Holders.

 

Section 9.21.        Notes and Guaranty Agreements to Rank Pari Passu.  The Notes and the Guaranty Agreement and all other obligations hereunder or thereunder are and will be maintained at all times as direct and, except as provided in Section 9.15, secured obligations of the Company and the Guarantors, ranking pari passu with the Secured Credit Agreement Obligations and the other obligations, if any, under the Credit Agreement.

 

Section 9.22.        Working Capital Facility.  The Company will at all times maintain a committed revolving working capital facility in an amount not less than $150,000,000, with a remaining term of at least 12 months.

 

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Section 9.23.        Post-Closing Deliveries.  The Company will, and will cause its Subsidiaries to, deliver to the holders of Notes and the Collateral Agent each item set forth on Schedule 9.23 in form and substance reasonably satisfactory to the Required Holders within the time periods established for each such item on such Schedule.

 

SECTION 10.                  NEGATIVE COVENANTS.

 

From the Restatement Effective Date and thereafter so long as any of the Notes are outstanding, the Company covenants that:

 

Section 10.1.        Transactions with Related Parties.  Except for any Permitted Affiliate Transactions, the Company will not, and will not permit any Subsidiary to, enter into any other transaction, contract, license or agreement of any kind with any Affiliate, officer or director of the Company or any of its Subsidiaries, unless such transaction, contract or agreement is made upon terms and conditions not less favorable to the Company or such Subsidiary than those which could have been obtained from wholly independent and unrelated third parties.

 

Section 10.2.        Mergers, Consolidations and Dispositions and Acquisitions of Assets.  The Company will not, and will not permit any Subsidiary to, in any single transaction or series of related transactions, directly or indirectly:

 

(a)           wind up its affairs, liquidate or dissolve;

 

(b)           be a party to any merger or consolidation;

 

(c)           sell, convey, lease, transfer or otherwise dispose of all or any portion of any Property (except for the sale of Inventory in the ordinary course of business) of any Note Party, or agree to take any such action;

 

(d)           sell, assign, pledge, transfer or otherwise dispose of, or in any way part with control of, any Equity Interests of any of its Subsidiaries or any Indebtedness or obligations of any character of any of its Subsidiaries, or permit any such Subsidiary to do so with respect to any Equity Interests of any other Subsidiary or any Indebtedness or obligations of any character of any Note Party or any of their Subsidiaries, or permit any of their Subsidiaries to dissolve or liquidate, or to issue any additional Equity Interests other than to the Note Parties;

 

(e)           take any board of director or shareholder action with a view toward dissolution, liquidation or termination; or

 

(f)            purchase or otherwise acquire, directly or indirectly, in a single transaction or a series of related transactions, all or a substantial portion of the assets of any Person or any Equity Interests of, or similar interest in, any Person;

 

provided, however that notwithstanding the foregoing, any of the following described actions may be undertaken:

 

(1)           any wholly-owned Subsidiary of the Company may merge or consolidate with the Company or any other Subsidiary of the

 

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Company, provided, that (i) if the Company is a party to such merger or consolidation, the Company must be the surviving entity, and (ii) where one of the parties to such merger or consolidation is a Guarantor, the surviving entity must be a Note Party;

 

(2)           any of the Company’s wholly-owned Subsidiaries may sell, lease, transfer or otherwise dispose of any of its assets to a Note Party or any other wholly-owned Subsidiary of a Note Party, provided, that if the entity selling, leasing, transferring or otherwise disposing of its assets is a Note Party, the transferee must be a Note Party;

 

(3)           any wholly-owned Subsidiary may be dissolved or liquidated, so long as such dissolution or liquidation results in all assets of such Subsidiary being owned by a Note Party or a wholly-owned Subsidiary; provided, that if the entity dissolving or liquidating is a Note Party, the entity to whom all assets of such dissolving or liquidating entity are transferred is must be a Note Party;

 

(4)           any of the Note Parties may (i) sell or otherwise dispose of motor vehicles and other rolling stock (A) in the ordinary course of business or (B) that are obsolete, worn out or no longer needed in the business of the Note Parties, (ii) sell, exchange or otherwise dispose of Dollars, Canadian Dollars and Cash Equivalents in the ordinary course of business; (iii) terminate, surrender or sublease a lease of real Property in the ordinary course of business or which is no longer needed in the business of the Note Parties; and (iv) sell or otherwise dispose of equipment and fixtures that are obsolete, worn out or no longer needed in the business of the Note Parties; and

 

(5)           the Note Parties may sell, exchange, lease, transfer or otherwise dispose of (in each case for reasonably equivalent value), in any fiscal year, other Property having, together with any Property sold, exchanged, leased, transferred or otherwise disposed of in such fiscal year pursuant to this Section 10.2 and not reinvested in newly acquired Property useful in the business of the Note Parties of equal or greater value within 180 days of such disposition, in an amount equal to an aggregate Fair Market Value not to exceed 7.5% of Consolidated Total Assets in the aggregate as most recently reported to the holders of Notes pursuant to Section 7.1 at the time of such Disposition; and only so long as no Default or Event of Default exists both immediately before and after giving effect to any such disposition; provided that the aggregate Fair Market Value of Property sold in reliance on this clause (5) during the term of this Agreement (such Agreement term deemed to commence on the Restatement Effective Date) shall not exceed 25.0% of Consolidated Total Assets in the aggregate as most recently reported to the holders of Notes pursuant to Section 7.1 at the time of such Disposition; provided, further, that this clause (5) shall not be applicable to any disposition of 

 

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assets acquired pursuant to a Permitted Acquisition made within 90 days of such acquisition;

 

(6)           the Note Parties may consummate transactions permitted by Sections 10.9, 10.12 and 10.13;

 

(7)           the Note Parties may consummate Permitted Acquisitions; and

 

(8)           the Company may issue preferred or additional common Equity Interests to Persons that are not Note Parties.

 

Section 10.3.        Nature of Business.  The Company and its Subsidiaries (taken as a whole) will not change the nature of their business, enter into any business which is substantially different from the business in which they are engaged as of the date hereof or enter into any business that would cause the Company to fail to qualify as a master limited partnership (giving effect to any exceptions under applicable law that would allow the Note Parties to engage in businesses that are ancillary or reasonably related to the businesses they are engaged in as of the date hereof).

 

Section 10.4.        Terrorism Sanctions Regulations.  The Company will not and will not permit any Controlled Entity to (a) become a Blocked Person or (b) have any investments in or engage in any dealings or transactions with any Blocked Person if such investments, dealings or transactions would cause any holder of a Note to be in violation of any laws or regulations that are applicable to such holder.

 

Section 10.5.        Liens.  The Company will not, and will not permit any Subsidiary to, directly or indirectly, create or suffer to exist any Lien upon any of its Property now owned or hereafter acquired; provided, however, that the Note Parties may create or suffer to exist:

 

(a)           Liens in effect on the date of this Agreement and which are described on Schedule 10.5, provided, that the Property covered thereby does not increase in scope and such Liens may not be renewed and extended (other than continuation filings or similar filings to maintain the effectiveness of any such Lien), unless such renewal and extension is with respect to Refinancing Indebtedness permitted by Section 10.7(h);

 

(b)           Liens against the Collateral in favor of the Collateral Agent as security for the Note Obligations and the Secured Credit Agreement Obligations; provided that such Liens are subject to the terms of the Intercreditor Agreement;

 

(c)           Liens incurred and pledges and deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance, pensions and other social security benefits (not including any lien described in section 430(k) of the Code);

 

(d)           Liens imposed by law, such as carriers’, warehousemen’s, landlord’s, mechanics’, materialmen’s, processors’ and vendors’ liens and other similar liens, incurred in good faith in the ordinary course of business and securing obligations which are incurred in the ordinary course of business and are not overdue for a period of more than thirty (30) days or which are

 

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being contested in good faith by appropriate, diligently pursued proceedings as to which the Note Parties or any of their Subsidiaries, as the case may be, shall, to the extent required by GAAP, consistently applied, have set aside on its books and against the Credit Agreement’s appropriate borrowing base categories adequate reserves;

 

(e)           Liens securing the payment of taxes, assessments and governmental charges or levies, that are not delinquent, are permitted by Section 9.4, or are being diligently contested in good faith by appropriate proceedings and as to which adequate reserves have been established in accordance with GAAP;

 

(f)            zoning restrictions, easements, licenses, reservations, provisions, covenants, conditions, waivers, restrictions on the use of property or minor irregularities of title (and with respect to leasehold interests, mortgages, obligations, liens and other encumbrances incurred, created, assumed or permitted to exist and arising by, through or under a landlord or owner of the leased property, with or without consent of the lessee) which do not in the aggregate materially detract from the value of its property or assets or materially impair the use thereof in the operation of its business;

 

(g)           Liens securing the performance of bids, tenders, leases, contracts (other than for the repayment of borrowed money), statutory obligations, surety, customs and appeal bonds and other obligations of like nature, incurred as an incident to and in the ordinary course of business, including security given in the ordinary course of business to a public utility or a Governmental Authority where required by such public utility or Governmental Authority in connection with the operations of any Note Party;

 

(h)           purchase money Liens securing the Indebtedness permitted by Section 10.7(b), provided, as a result of the creation of any such Lien, (i) no Default or Event of Default shall have occurred, (ii) the principal amount of such Lien does not exceed 100% of the purchase price of the asset acquired with such permitted Indebtedness, (iii) such Lien shall not apply to any other Property other than the asset acquired with such purchase money Indebtedness, and (iv) such Lien is incurred within 10 days of the acquisition of such Property;

 

(i)            Liens arising from judgments, orders, or other awards not constituting an Event of Default;

 

(j)            all rights reserved to or vested in any Governmental Authority by the terms of any lease, franchise, grant or permit held by any Note Party or by any statutory provision to terminate any such lease, license, franchise, grant or permit or to require annual or periodic payments as a condition of the continuation thereof, or to distrain against or to obtain a Lien on any Property of any Note Party in the event of failure to make such annual or other periodic payments;

 

(k)           rights of tenants, subtenants, licensees or other parties in possession, if any, but only (i) as tenants or licensees or otherwise to the extent of their possessory rights or interests and (ii) so long as such rights do not, in the aggregate, materially detract from the value of the Properties of the Note Parties or materially impair the use thereof in the operation of the business of the Note Parties;

 

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(l)            the rights of the landlord to any leased property and the terms and conditions contained in the corresponding lease;

 

(m)          Permitted Non-Compete Liens;

 

(n)           First Purchaser Liens;

 

(o)           Liens not otherwise permitted pursuant to this Section 10.5 that attach to Property with a Fair Market Value not to exceed 5.0% of Partners’ Capital at any time; provided that, notwithstanding the foregoing, the Company shall not, and shall not permit any of its Subsidiaries to, secure any Indebtedness outstanding under or pursuant to the Credit Agreement or any renewals, extensions or replacements thereof that constitute the primary bank credit facility of the Company and its Subsidiaries pursuant to this Section 10.5(o) unless and until the Note Obligations shall be concurrently secured equally and ratably with such Indebtedness pursuant to documentation reasonably acceptable to the Required Holders in substance and in form, including, without limitation, an intercreditor agreement and opinions of counsel to the Company from attorneys that are reasonably acceptable to the Required Holders;

 

(p)           Liens arising from the posting of cash or Cash Equivalents in favor of a Qualified Counterparty as and when required pursuant to Hedging Agreements permitted under Section 9.12; and

 

(q)           Liens arising under any indenture or other instrument governing Permitted Term Indebtedness to secure obligations in favor of the trustee, agent or representative under such indenture or other instrument; provided, that (i) such Liens are solely for the benefit of the trustees, agents or representatives in their capacities as such and not for the benefit of the holders of or lenders under such Indebtedness and (ii) the obligations secured by such Liens shall not exceed $2,000,000 in the aggregate at any time.

 

Section 10.6.        Financial Covenants.

 

(a)           Commencing with the fiscal quarter ended December 31, 2016, the Company will not permit the Leverage Ratio of the Note Parties to be greater than 4.75 to 1.00 as of the close of business for the last day of any fiscal quarter of the Company.

 

(b)           Commencing with the fiscal quarter ended December 31, 2016, the Company will not permit the Senior Secured Leverage Ratio of the Note Parties to be greater than 3.25 to 1.00 as of the close of business for the last day of any fiscal quarter of the Company.

 

(c)           Commencing with the fiscal quarter ending June 30, 2012, the Company will not permit the Interest Coverage Ratio of the Note Parties to be less than 2.75 to 1.00 as of the last day of any fiscal quarter.

 

Section 10.7.        Indebtedness.  The Company will not, and will not permit any Subsidiary to, create, incur, suffer or permit to exist, or assume or guarantee, directly or indirectly, or become or remain liable with respect to any Indebtedness, whether direct, indirect, absolute, contingent, or otherwise, except the following:

 

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(a)           the Note Obligations;

 

(b)           purchase money Indebtedness (including the amount of any Capital Lease Obligations required to be capitalized and included as a liability on the consolidated balance sheet of the Note Parties incurred to finance Capital Expenditures) including under conditional sales agreements and other title retention arrangements but excluding purchase money Indebtedness incurred in respect of Inventory; provided that the sum of (w) the aggregate amount of Indebtedness permitted by this clause (b), plus (x) the aggregate amount of Indebtedness permitted by clause (f) below, plus without duplication (y) the aggregate amount of Indebtedness permitted by clause (i) below, plus (z) any Refinancing Indebtedness in respect of any of the foregoing permitted by clause (h), does not exceed 5.0% of Partners’ Capital in the aggregate at any time outstanding;

 

(c)           other liabilities existing on the date of this Agreement and set forth on Schedule 10.7, with no renewals, extensions, modifications or increases thereof being permitted, unless the same constitutes Refinancing Indebtedness;

 

(d)           Indebtedness of any Note Party to any other Note Party, provided, that, if such Indebtedness is evidenced by an intercompany note, such intercompany note is pledged and delivered to the Collateral Agent, for the benefit of the Secured Parties, as security for the Note Obligations and the Secured Credit Agreement Obligations;

 

(e)           Contingent Obligations of a Note Party with respect to Indebtedness of another Note Party that is permitted hereunder;

 

(f)            Indebtedness of any Person that becomes a Subsidiary after the date hereof pursuant to a Permitted Acquisition and Indebtedness of any Person secured by assets acquired in a Permitted Acquisition, provided, that (i) such Indebtedness exists at the time such Person becomes a Subsidiary or such assets are acquired and is not created in contemplation of or in connection with such Person becoming a Subsidiary or such assets being acquired, and (ii) the sum of (w) the aggregate amount of Indebtedness permitted by this clause (f), plus (x) the aggregate amount of Indebtedness permitted by clause (b) above, plus (y) the aggregate amount of Indebtedness permitted by clause (i) below, plus without duplication (z) any Refinancing Indebtedness in respect of any of the foregoing permitted by clause (h), does not exceed 5.0% of Partners’ Capital in the aggregate at any time outstanding;

 

(g)           Indebtedness of any Note Party in respect of performance bonds, bid bonds, appeal bonds, surety bonds and similar obligations, in each case provided in the ordinary course of business;

 

(h)           Refinancing Indebtedness, to the extent the same relates to any Indebtedness permitted by Sections 10.7(b), (c), (f) and (i); provided that the sum of the aggregate amount of Indebtedness permitted by clauses (b), (f) and (i) of this Section 10.7, and any Refinancing Indebtedness in respect of any of the foregoing permitted by this clause (h), does not exceed 5.0% of Partners’ Capital in the aggregate at any time outstanding;

 

(i)            unsecured Indebtedness not otherwise permitted pursuant to this Section, provided that the sum of (w) aggregate amount of Indebtedness permitted by this clause (i), plus (x) the

 

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aggregate amount of Indebtedness permitted by clause (b) above, plus without duplication (y) the amount of outstanding Indebtedness permitted by clause (f) above, plus (z) any Refinancing Indebtedness in respect of any of the foregoing permitted by clause (h), does not exceed five percent (5.0%) of Partners’ Capital in the aggregate at any time outstanding;

 

(j)            Permitted Non-Compete Indebtedness and other obligations issued, undertaken or assumed as the deferred purchase price of property or services;

 

(k)           Indebtedness existing or arising under any Hedging Agreement permitted by Section 9.12;

 

(l)            Credit Agreement Obligations, provided that any Liens securing the Credit Agreement Obligations also secure the Note Obligations, and such Liens are subject to the terms of the Intercreditor Agreement; and

 

(m)          private placement or other term Indebtedness of a Note Party (the “Permitted Term Indebtedness”); provided, that:

 

(i)            such Indebtedness and any Permitted Term Indebtedness Agreement governing the terms thereof do not impose on any Note Party any covenants to maintain any financial ratio that are more onerous than the covenants set forth in Section 10.6 of this Agreement;

 

(ii)           such Indebtedness shall not require any scheduled payment on account of principal (whether by redemption, purchase, retirement, defeasance, set-off or otherwise) prior to April 5, 2022;

 

(iii)          to the extent that such Indebtedness is secured, the Liens securing such Indebtedness shall be subordinate to the Liens securing the Note Obligations and such Indebtedness and Liens shall be subject to an intercreditor agreement in form and substance satisfactory to the Collateral Agent and to the holders of all the Notes;

 

(iv)          the Note Parties are in compliance with Section 10.6 immediately after giving effect to the incurrence of any such Indebtedness (and giving pro forma effect to the expected application of proceeds thereof) based upon the Total Indebtedness immediately after giving effect to such incurrence (and application of proceeds) and Consolidated EBITDA for the four fiscal quarters most recently ended on or before the date of such incurrence and the maximum Leverage Ratio allowed as of the end of the fiscal quarter most recently ended on or prior to the date of such incurrence; 

 

(v)           no Default or Event of Default exists both immediately before and after giving effect to the incurrence of such Indebtedness;

 

(vi)          the Collateral Agent has received, if applicable, new ALTA mortgagee title insurance policies (or appropriate endorsements to existing ALTA mortgagee title policies) meeting the requirements of Section 9.17(a)(vii) and otherwise in form and substance reasonably acceptable to the Collateral Agent;

 

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(vii)         the Collateral Agent has received upon request a favorable opinion of counsel (which counsel shall be reasonably satisfactory to the Collateral Agent) with respect to any additional Note Documents or amendments to any Note Documents to be entered into in connection with the incurrence of such Indebtedness, including opinions regarding the continuing validity and perfection of the Liens securing the Note Obligations, such opinion to be in form and substance reasonably acceptable to the Collateral Agent; and

 

(viii)        such Indebtedness and any Permitted Term Indebtedness Agreement governing the terms thereof shall not in any way prohibit or restrict (i) any Note Party from paying or prepaying the Note Obligations, (ii) any Note Party from granting, creating or otherwise imposing any Lien on any of its Property, whether now owned or hereafter acquired, to secure the Note Obligations, or (iii) the transfer of any Property, including the payment of any dividends or other distributions, by a Subsidiary of any Note Party to such Note Party, or the repayment of any Indebtedness owed by a Subsidiary of any Note Party to such Note Party.

 

Section 10.8.        Contingent Liabilities.  The Company will not, and will not permit any Subsidiary to, create, incur, suffer or permit to exist, directly or indirectly, any Contingent Obligations, other than:

 

(a)           the obligations of the Guarantors to the holders of Notes under the terms of the Guaranty Agreement;

 

(b)           Contingent Obligations of the Note Parties under any Hedging Obligations permitted by Section 9.12;

 

(c)           the guarantees by the Note Parties of any obligations of any other Note Party that are not prohibited by this Agreement or of any Indebtedness of any other Note Party if such Indebtedness so guaranteed is permitted under the terms of Section 10.7; and

 

(d)           Contingent Obligations of the Note Parties, excluding the Contingent Obligations permitted under the above clauses (a) through (c), not to exceed in the aggregate at any one time outstanding, 1.0% of Partners’ Capital.

 

Section 10.9.        Investments, Loans.  The Company will not, and will not permit any Subsidiary to, make, directly or indirectly, any Investment in or loan or advance to any Person, or make any commitment to make such loan, advance or Investment, except:

 

(a)           loans, advances and Investments as of the date hereof set forth on Schedule 10.9 (but not any increases thereof);

 

(b)           Dollars, Canadian Dollars and Cash Equivalents;

 

(c)           Investments constituting non-cash consideration received in connection with a Permitted Disposition so long as such consideration does not exceed 25% of the aggregate consideration received, determined at the time the Permitted Disposition occurs;

 

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(d)           Permitted Acquisitions;

 

(e)           loans otherwise permitted by the provisions of Section 10.7(d);

 

(f)            loans to employees of any Note Party made in the ordinary course of business, so long as the aggregate amount of all such loans outstanding at any time does not exceed $500,000;

 

(g)           loans or advances to, or Investments in, any Note Party or Subsidiary that the Note Parties retain more than 50% of the Equity Interests, provided that the maximum amount of loans or advances to, or Investments in, foreign Subsidiaries that are not Note Parties which loans, advances and Investments are made after the date hereof shall not at any time exceed 1.5% of Partners’ Capital; provided further that with respect to each Investment hereunder, the Note Parties shall be in pro forma compliance with the financial covenants set forth in Section 10.6 immediately after giving effect to such Investment;

 

(h)           Investments in the form of purchases of (i) Indebtedness expressly permitted by Section 10.7(m), and (ii) the Notes expressly permitted by Section 8.7 following an amendment of Section 8.7 pursuant to Section 17.1(c) (together with the Indebtedness described in clause (i) of this Section 10.9(h), the “Senior Notes”); provided, that such Senior Notes are cancelled promptly after being purchased by any Note Party; provided, further, that immediately after giving effect to such cancellation, the Note Parties shall be in pro forma compliance with the financial covenants set forth in Section 10.6;

 

(i)            ownership of Equity Interests in the General Partner by the Company solely to the extent such Equity Interests (i) were acquired by the Company in a transaction permitted by Section 10.12(a) and (ii) become subject to a first priority Lien in favor of the Collateral Agent pursuant to the Security Documents;

 

(j)            Investments in Hedging Agreements permitted by Section 9.12;

 

(k)           other loans, advances or Investments not covered by clauses (a) through (j) above, not to exceed in an aggregate amount at any time outstanding, the greater of (i) $50,000,000 and (ii) 2.5% of Partners’ Capital; and

 

(l)            loans or advances to, or Investments in, any Exempted Joint Venture; provided that (i) the aggregate amount of all such loans, advances and Investments permitted under this provision shall not exceed $500,000,000 at any time outstanding and (ii) with respect to each such loan, advance, or Investment, the Note Parties shall be in pro forma compliance with the financial covenants set forth in Section 10.6 of this Agreement immediately before and after giving effect to such loan, advance or Investment.

 

Section 10.10.      ERISA Compliance.  The Company will not, and will not permit any Subsidiary to:

 

(a)           at any time engage in any Prohibited Transaction with respect to a Plan which would reasonably be expected to result in a material liability to any Note Party; or permit any

 

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Plan to be terminated in a manner which could result in the imposition of a Lien on any Property of any Note Party or any of their Subsidiaries pursuant to ERISA;

 

(b)           engage in any transaction in connection with which any Note Party or any Subsidiary thereof would reasonably be expected to be subject to a material civil penalty assessed pursuant to the provisions of section 502 of ERISA;

 

(c)           terminate any Plan in a “distress termination” under section 4041 of ERISA, or take any other action which would reasonably be expected to result in a material liability of any Note Party or any Subsidiary thereof to the PBGC;

 

(d)           except where such failure would not reasonably be expected to result in a material liability to any Note Party, (i) fail to make payment when due of all amounts which, under the provisions of any Plan, any Note Party or any Subsidiary thereof is required to pay as contributions thereto, or, (ii) with respect to any Plan, fail to satisfy the minimum funding standard (as described in section 302 of ERISA and section 412 of the Code, whether or not waived, with respect thereto);

 

(e)           adopt an amendment to a Plan which amendment would be restricted by section 436 of the Code; or

 

(f)            without obtaining the prior consent of the Required Holders (which consent shall not be unreasonably withheld), engage in any transaction or enter into any agreement that would require any Note Party to establish, maintain, contribute to, or become liable (whether contingent or otherwise) to a Multiemployer Plan that, as of the date on which the Note Party engages in such transaction or enters into such agreement, has been determined by the Multiemployer Plan’s actuary to be in “endangered” or “critical” status under section 432 of the Code.

 

Section 10.11.      Change in Accounting Method.  The Company will not, and will not permit any Subsidiary to, make or permit any change in accounting method or financial reporting practices except as may be required by GAAP, as in effect from time to time.

 

Section 10.12.      Redemption, Dividends, Equity Issuance, Distributions and Payments.  The Company will not, and will not permit any Subsidiary to, at any time:

 

(a)           redeem (whether as a result of mandatory or optional redemption obligations or rights), purchase, retire or otherwise acquire, directly or indirectly, any of the Company’s Equity Interests or any of such Subsidiary’s Equity Interests that are not owned by a Note Party or any wholly-owned Subsidiary thereof, or set aside any amount for any such purpose, except for the redemption, purchase, retirement or other acquisition: (i) by the Company of Equity Interests in the Company or Equity Interests in the General Partner (A) for an amount not to exceed $15,000,000 in the aggregate in any fiscal year or $50,000,000 in the aggregate during the term of this Agreement (such Agreement term deemed to commence on the Restatement Effective Date), in each case, exclusive of redemptions, purchases, retirements or other acquisitions permitted under any other clause of this Section 10.12(a), (B) with the net cash proceeds from a substantially concurrent issuance of new Equity Interests in the Company or (C) made in exchange for newly issued Equity Interests in the Company (provided that the aggregate amount of redemptions, purchases, retirements or other acquisitions of Equity Interests in the General

 

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Partner pursuant to the preceding clauses (B) and (C) shall not exceed $200,000,000 in the aggregate during the term of this Agreement (such Agreement term deemed to commence on the Restatement Effective Date); (ii) by the Company of the Company Preferred Equity to the extent that, solely with respect to this clause (ii), immediately before and after giving pro forma effect to such redemption, (1) the Leverage Ratio is less than 3.25 to 1.00 and (2) the Revolving Availability (as defined in the Credit Agreement as of the date hereof) is greater than or equal to $200,000,000; and (iii) in connection with a Permitted Acquisition made in satisfaction of an indemnity obligation owed to a Note Party or Affiliate thereof, with respect to any redemption under this Section 10.12(a), so long as, in each case, no Default or Event of Default exists both immediately before and after giving effect to such redemption, purchase, retirement or other acquisition;

 

(b)           declare or pay, directly or indirectly, any dividend, except (i) dividends paid to a Note Party which is a direct parent of the Note Party paying a dividend, (ii) non-cash dividends paid to the holders of any Equity Interests of the Company in the form of additional Equity Interests of the Company, and (iii) Cash Dividends to the holders of any Equity Interests of the Company, so long as (x) no Default or Event of Default exists both immediately before and after giving effect to the declaration and the payment of such Cash Dividend and (y) such Cash Dividend does not exceed Available Cash for such quarterly period; or

 

(c)           make any other distribution of any Property, cash, securities or a combination thereof, with respect to (whether by reduction of capital or otherwise) any Equity Interests except as permitted in Section 10.12(b).

 

Section 10.13.      Sale of Receivables.  The Company will not, and will not permit any Subsidiary to, sell, assign, discount, transfer or otherwise dispose of any Receivables, promissory notes, drafts or trade acceptances or other rights to receive payment held by it, with or without recourse, except to the extent in the ordinary course of business consistent with past practices.

 

Section 10.14.      Sale and Lease-Back Transactions.  The Company will not, and will not permit any Subsidiary to, enter into any arrangement, directly or indirectly, with any Person whereby any Note Party shall sell or transfer any Property, real or personal, which is used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such Property or other Property which such Note Party intends to use for substantially the same purpose or purposes as the Property being sold or transferred.

 

Section 10.15.      Change of Name or Place of Business.  The Company will not, and will not permit any Note Party to, change its name, jurisdiction of organization, location of its chief executive office or principal place of business or the place it keeps its material books and records, unless the Company has notified the Collateral Agent of such change in writing at least 10 Business Days (or such lesser time as is acceptable to the Collateral Agent) before the effective date of such change.

 

Section 10.16.      Restrictive Agreements.  Other than as provided in this Agreement, the Credit Agreement or any Permitted Term Indebtedness Agreement, the Company will not, and will not permit any Subsidiary to, directly or indirectly, agree to restrict or

 

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condition (i) the payment of any dividends or other distributions to or by any Note Party; provided that the Company may agree, in connection with the issuance of preferred Equity Interests in the Company not prohibited under this Agreement, to restrict or condition the payment of dividends or other distributions on its Equity Interests; (ii) the payment of any Indebtedness owed to any Person, including any Note Party; (iii) the making of any loans or advances to any Person, including any Note Party; (iv) the transfer of any of its Properties to any Person, including any Note Party or (v) the granting of any Liens on any of its Properties, except for (a) restrictions limited to Property serving as collateral for Indebtedness permitted pursuant to Section 10.7 and Refinancing Indebtedness in respect thereof (so long as the restrictions in such Refinancing Indebtedness are not more burdensome on the Note Parties as the Indebtedness being refinanced), (b) customary non-assignment provisions arising under leases, subleases, licenses, joint venture agreements and other similar agreements entered into in the ordinary course of business, and (c) customary restrictions imposed with respect to Property being acquired pursuant to a Permitted Acquisition or sold pursuant to a Permitted Disposition.

 

Section 10.17.      Tax Consolidation.  The Company will not, and will not permit any Subsidiary to, file, or consent to the filing of, any consolidated income tax return with any Person other than another Note Party.

 

Section 10.18.      Deposit Accounts.  The Company will not, and will not permit any Subsidiary to, (a) establish any deposit accounts other than those listed on Schedule 4.7(h) (as updated from time to time pursuant to the terms hereof in accordance with Section 17.1), or (b) maintain or permit to exist any deposit account, in each case of clause (a) or (b), unless such deposit accounts are (i) Controlled Accounts or (ii) Excluded Deposit Accounts.

 

Section 10.19.      Organizational Documents; Tax Sharing Agreements.  The Company will not, and will not permit any Subsidiary to, modify any of their Organizational Documents in a manner that is materially adverse to the holders of Notes or enter into or modify any tax sharing agreement in either case in a manner that is materially adverse to the holders of Notes.

 

Section 10.20.      Most Favored Lender Status.  The Company will not, and will not permit any Subsidiary to, enter into, assume or otherwise be bound or obligated (including, without limitation, by amendment to the Credit Agreement) under the Credit Agreement, or under any agreement creating or evidencing Indebtedness in excess of $20,000,000 issued in an institutional private placement (the Credit Agreement and any such other agreement each being an “MFL Agreement”), in either case containing one or more Additional Covenants (other than those in the Credit Agreement on the date hereof) or Additional Defaults (other than those in the Credit Agreement on the date hereof), unless prior written consent to such MFL Agreement shall have been obtained pursuant to Section 17.1; provided, however, in the event the Company or any Subsidiary shall enter into, assume or otherwise become bound by or obligated under any such MFL Agreement without the prior written consent of the Required Holder(s), the terms of this Agreement shall, without any further action on the part of the Company or any of the holders of Notes, be deemed to be amended automatically to include each Additional Covenant and each Additional Default contained in such MFL Agreement.  The Company further covenants to promptly execute and deliver at its expense (including the fees and expenses of counsel for the holders of Notes) an amendment to this Agreement in form and substance satisfactory to the

 

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Required Holder(s) evidencing the amendment of this Agreement to include such Additional Covenants and Additional Defaults, provided that the execution and delivery of such amendment shall not be a precondition to the effectiveness of such amendment as provided for in this Section 10.20, but shall merely be for the convenience of the parties hereto.

 

Section 10.21.      Credit Agreement Financial Covenants.  The Company shall not, and shall not permit, the financial covenants contained in Section 7.11 (or any successor Section) of the Credit Agreement and the defined terms referenced therein to be amended or otherwise modified in any significant manner that is different than the financial covenants contained in Section 10.6 of this Agreement and the defined terms referenced therein without providing the holders with (a) at least 20 Business Days prior written notice of the Company’s proposed amendments or modifications to such financial covenants and/or definitions and (b) an opportunity to review and discuss such proposed amendments and modifications with a Financial Officer of the Company prior to their effectiveness.  For purposes of this Section 10.21, any such amendment or modification that (1)(x) introduces a separate maximum secured leverage ratio in addition to a maximum total leverage ratio or (y) modifies the working capital loan exception in the numerator of such leverage ratio shall be deemed “significant” and (2) increases or decreases the maximum total leverage ratio shall not be deemed “significant.”  Regardless of whether any such amendment or modification is “significant” for purposes of this Section 10.21, the holders expressly reserve their rights under Section 10.20 with respect to any amendment or modification of the Credit Agreement.

 

SECTION 11.                  EVENTS OF DEFAULT.

 

An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing:

 

(a)           the Company defaults in the payment of any principal or Make-Whole Amount, if any, on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or

 

(b)           the Company defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and payable; or

 

(c)           (x) the Company defaults in the performance of or compliance with any term contained in Sections 5.14, 7.1(a), 7.1(b), 7.1(e), 7.1(f), 7.2, 9.15 or Section 10, or (y) the Company defaults in the performance of or compliance with any term contained in Sections 9.2 or 9.12(b)(ii) and such default is not remedied within three Business Days after the earlier of (i) a Responsible Officer of a Note Party obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this Section 11(c)(y)); or

 

(d)           the Company or any other Note Party defaults in the performance of or compliance with any term contained herein (other than those referred to in Sections 11(a), (b) and (c)) or in any other Note Document and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer of a Note Party obtaining actual knowledge of such default

 

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and (ii) the Company receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this Section 11(d)); or

 

(e)           any representation or warranty made in writing by or on behalf of the Company or any other Note Party or by any officer of the Company or any other Note Party in this Agreement, any other Note Document or in any writing furnished in connection with the transactions contemplated hereby proves to have been false or incorrect in any material respect on the date as of which made; or

 

(f)            (i) any “Event of Default” as defined in the Credit Agreement occurs, or (ii) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness that is outstanding in an aggregate principal amount of at least $10,000,000 beyond any period of grace provided with respect thereto, or (iii) the Company or any Subsidiary is in default in the performance of or compliance with any term of any evidence of any Indebtedness in an aggregate outstanding principal amount of at least $10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been declared (or one or more Persons are entitled to declare such Indebtedness to be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iv) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Indebtedness to convert such Indebtedness into equity interests), (x) the Company or any Subsidiary has become obligated to purchase or repay Indebtedness (other than as a result of the giving of a notice of voluntary prepayment or repurchase) before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $10,000,000, or (y) one or more Persons have the right to require the Company or any Subsidiary so to purchase or repay such Indebtedness; or

 

(g)           the Company or any Subsidiary (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or

 

(h)           a court or other Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company or any of its Subsidiaries, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any of its Subsidiaries, or any such petition shall be filed against

 

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the Company or any of its Subsidiaries and such petition shall not be dismissed within 60 days; or

 

(i)            any Note Party or any of their Subsidiaries shall suffer any writ of attachment or execution or any similar process to be issued or levied against it or any substantial part of its Property which is not released, stayed, bonded or vacated within thirty (30) days after its issue or levy; or one or more judgments, orders, or awards for the payment of money involving an aggregate amount of $10,000,000, or more (except to the extent fully covered (other than to the extent of customary deductibles) by insurance pursuant to which the insurer has not denied coverage) is entered or filed against a Note Party or any of its Subsidiaries, or with respect to any of their respective Property, and either (i) there is a period of 90 consecutive days, with respect to any such judgment less than or equal to $50,000,000, or 45 days with respect to any such judgment greater than $50,000,000, in each case, at any time after the entry of any such judgment, order, or award during which (1) the same is not discharged, satisfied, vacated, or bonded pending appeal, or (2) a stay of enforcement thereof is not in effect, or (ii) enforcement proceedings are commenced upon such judgment, order, or award; or

 

(j)            any of the following shall occur where such occurrence, individually or in the aggregate, would reasonably be expected to result in any material liability:  (i) a Reportable Event shall have occurred with respect to a Plan; (ii) the filing by any Note Party, any ERISA Affiliate, or an administrator of any Plan of a notice of intent to terminate such Plan under the provisions of section 4041 of ERISA; (iii) the receipt of notice by any Note Party, any ERISA Affiliate or an administrator of a Plan that the PBGC has instituted proceedings to terminate (or appoint a trustee to administer) such a Plan; (iv) any other event or condition exists which could reasonably be expected to constitute grounds under the provisions of section 4042 of ERISA for the termination of or the appointment of a trustee to administer any Plan by the PBGC; (v) a Plan shall fail to maintain a minimum funding standard required by section 412 of the Code for any plan year or a waiver of standard is sought or granted under the provisions of section 412(c) of the Code; (vi) any Note Party or any ERISA Affiliate has incurred, or could reasonably be expected to incur, a liability under the provisions of section 4062, 4063, 4064 or 4201 of ERISA; (vii) any Note Party or any ERISA Affiliate fails to pay the full amount of an installment required under section 430(j) of the Code; or (viii) any Prohibited Transaction involving any Plan; or

 

(k)           this Agreement, any Note, the Guaranty Agreement, any of the Security Documents or any other Note Document, or any material provision thereof, shall for any reason cease to be, or shall be asserted by any Note Party not to be, a legal, valid and binding obligation of any Note Party, enforceable in accordance with its terms, or the Lien purported to be created by any of the Security Documents shall for any reason cease to be, or be asserted by any Note Party not to be, a valid, first priority perfected Lien against any portion of the Collateral with a Fair Market Value exceeding $5,000,000 (except to the extent otherwise permitted under this Agreement or any of the Security Documents).

 

SECTION 12.                  REMEDIES ON DEFAULT, ETC.

 

Section 12.1.        Acceleration.  (a)  If an Event of Default with respect to the Company described in Section 11(g) or (h) (other than an Event of Default described in clause (i) of

 

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Section 11(g) or described in clause (vi) of Section 11(g) by virtue of the fact that such clause encompasses clause (i) of Section 11(g)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable.

 

(b)           If any other Event of Default has occurred and is continuing, the Required Holders may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and payable.

 

(c)           If any Event of Default described in Section 11(a) or (b) has occurred and is continuing, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable.

 

Upon any Notes becoming due and payable under Section 12.1, whether automatically or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount determined in respect of such principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.  The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances.

 

Section 12.2.        Other Remedies.  If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the holder of any Note at the time outstanding and/or the Collateral Agent may proceed to protect and enforce the rights of such holder and/or the Collateral Agent, as the case may be, by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note or any other Note Document, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.  The holders of Notes shall have the other remedies contained in the Intercreditor Agreement, the Guaranty Agreement and the Security Documents.

 

Section 12.3.        Rescission.  At any time after any Notes have been declared due and payable pursuant to Section 12.1(b) or (c), the Required Holders, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of and Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured

 

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or have been waived pursuant to Section 17, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes.  No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon.

 

Section 12.4.                         No Waivers or Election of Remedies, Expenses, Etc.  No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies.  No right, power or remedy conferred by this Agreement or by any Note or any other Note Document upon any holder of a Note or upon the Collateral Agent shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise.  Without limiting the obligations of the Company under Section 15, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 12, including, without limitation, reasonable attorneys’ fees, expenses and disbursements.

 

SECTION 13.                  REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

 

Section 13.1.                         Registration of Notes.  The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes (including the principal amount and stated interest thereon).  The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register.  If any holder of one or more Notes is a nominee, then the name and address of the beneficial owner of such Note or Notes shall also be registered in such register as an owner and holder thereof.  Prior to due presentment for registration of transfer, the Person(s) in whose name any Note(s) shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary.  The Company shall give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.

 

Section 13.2.                         Transfer and Exchange of Notes.  Upon surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)), for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of each transferee of such Note or part thereof), within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note.  Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of Exhibit 1.  Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon.  The Company may require payment of a sum sufficient to cover any transfer and stamp taxes or governmental charge imposed in respect of any such transfer of Notes.  Notes shall not 

 

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be transferred in denominations of less than $100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000.  Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representation set forth in Section 6.2.

 

Section 13.3.                         Replacement of Notes.  Upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and

 

(a)                                 in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $10,000,000 or a Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or

 

(b)                                 in the case of mutilation, upon surrender and cancellation thereof,

 

within ten Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

 

SECTION 14.                  PAYMENTS ON NOTES.

 

Section 14.1.                         Place of Payment.  Subject to Section 14.2, payments of principal, Make-Whole Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, New York at the principal office of JPMorgan Chase Bank, N.A. in such jurisdiction.  The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction.

 

Section 14.2.                         Home Office Payment.  So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount, if any, interest and all other amounts becoming due hereunder by the method and at the address specified for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1.  Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such Purchaser will, at its election, 

 

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either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2.  The Company will afford the benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchasers have made in this Section 14.2.

 

SECTION 15.                  EXPENSES, ETC.

 

Section 15.1.                         Transaction Expenses.  Whether or not the transactions contemplated hereby are consummated, the Company will pay all costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement, the Notes or any other Note Document (whether or not such amendment, waiver or consent becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement, the Notes or any other Note Document or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement, the Notes or any other Note Document, or by reason of being a holder of any Note, (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes and the other Note Documents and (c) the costs and expenses incurred in connection with the initial filing of this Agreement and all related documents and financial information with the SVO provided, that such costs and expenses under this clause (c) shall not exceed $7,500.  The Company will pay, and will save each Purchaser and each other holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes).

 

Section 15.2.                         Indemnification.  The Company hereby agrees to indemnify the Purchasers, the holders of Notes, the Collateral Agent and each of their Related Parties (each such Person being called an “Indemnitee”) from, and hold each Indemnitee harmless against, any and all losses, claims (including Environmental Claims), damages, liabilities (including Environmental Liabilities) and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any Person (other than such Indemnitee and its Related Parties, but including the Company or any of its Subsidiaries) arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Note Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Note or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Substance on or from any property owned by the Company or any of its Subsidiaries, or any Environmental Liability related in any way to the Company or any of its Subsidiaries, (iv) any actual or prospective claim, litigation, investigation or proceeding relating 

 

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to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Company or any of its Subsidiaries, and regardless of whether any Indemnitee is a party thereto, (v) ownership by any holder of Notes or the Collateral Agent of any Property following foreclosure under the Security Documents, to the extent such losses, liabilities, claims or damages arise out of or result from any Hazardous Substance, located in, on or under such Property prior to or at the time of such foreclosure, including losses, liabilities, claims or damages which are imposed upon Persons under laws relating to or regulating Hazardous Substances, solely by virtue of ownership, or (vi) any holder of Notes or the Collateral Agent being deemed an operator of any such Property by a court or other regulatory or administrative agency or tribunal or other third party, to the extent such losses, liabilities, claims or damages arise out of or result from any Hazardous Substance located in, on or under such Property at or prior to any foreclosure thereon under the Security Documents; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Company or any other Note Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Note Document, if the Company or such Note Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction.  This Section 15.2 shall not apply with respect to taxes.

 

Section 15.3.                         Survival.  The obligations of the Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement, the Notes or any other Note Document, and the termination of this Agreement.

 

SECTION 16.                                                                  SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

 

All representations and warranties contained herein and in each other Note Document shall survive the execution and delivery of this Agreement, the Notes and the other Note Documents, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser or any other holder of a Note.  All statements contained in any certificate or other instrument delivered by or on behalf of the Company or any other Note Party pursuant to this Agreement or any other Note Document shall be deemed representations and warranties of the Company or such other Note Party, as applicable, under this Agreement.  Subject to the preceding sentence, this Agreement, the Notes and the other Note Documents embody the entire agreement and understanding between each Purchaser and the Company and, subject to Section 22.10, supersede all prior agreements and understandings relating to the subject matter hereof.

 

SECTION 17.                                                                  AMENDMENT AND WAIVER.

 

Section 17.1.                         Requirements.  This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or 

 

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prospectively), only with the written consent of the Company and the Required Holders, except that:

 

(a)                                 no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing;

 

(b)                                 no amendment or waiver may, without the written consent of each Purchaser and the holder of each Note at the time outstanding, (i) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of (x) interest on the Notes or (y) the Make-Whole Amount, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any amendment or waiver, or (iii) amend any of Section 8 (except as set forth in Section 17.1(c)), 11(b), 12, 17 or 20; and

 

(c)                                  the provisions of Section 8.7 may be amended or waived to permit offers to purchase made by the Company or an Affiliate pro rata to the holders of all Notes at the time outstanding upon the same terms and conditions only with the written consent of the Company and the Super-Majority Holders.

 

Section 17.2.                         Solicitation of Holders of Notes.

 

(a)                                 Solicitation.  The Company will provide each holder of a Note with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof, of the Notes or of any other Note Document.  The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 17 to each holder of a Note promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.

 

(b)                                 Payment.  The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of a Note as consideration for or as an inducement to the entering into by such holder of any waiver or amendment of any of the terms and provisions hereof, or of any Note or of any other Note Document unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of a Note even if such holder did not consent to such waiver or amendment.

 

(c)                                  Consent in Contemplation of Transfer.  Any consent made pursuant to this Section 17 by a holder of Notes that has transferred or has agreed to transfer its Notes to the Company, any Subsidiary or any Affiliate of the Company pursuant to a waiver under Section 17.1(c) or subsequent to Section 8.7 having been amended pursuant to Section 17.1(c) and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected 

 

55

 

or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder.

 

Section 17.3.                         Binding Effect, Etc.  Any amendment or waiver consented to as provided in this Section 17 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver.  No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.  No course of dealing between the Company and any holder of a Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note.

 

Section 17.4.                         Notes Held by Company, Etc.  Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement, the Notes or any other Note Document, or have directed the taking of any action provided herein, in the Notes or in any other Note Document to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.

 

SECTION 18.                  NOTICES.

 

All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by an internationally recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by an internationally recognized overnight delivery service (with charges prepaid).  Any such notice must be sent:

 

(i)                                     if to any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in Schedule A, or at such other address as such Purchaser or nominee shall have specified to the Company in writing,

 

(ii)                                  if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing, or

 

(iii)                               if to the Company, to the Company at its address set forth at the beginning hereof to the attention of Craig S. Jones, Chief Financial Officer, or at such other address as the Company shall have specified to the holder of each Note in writing.

 

Notices under this Section 18 will be deemed given only when actually received.

 

56

 

SECTION 19.                  REPRODUCTION OF DOCUMENTS.

 

This Agreement, the other Note Documents and all documents relating hereto and thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Original Closing (except the Notes themselves) and the date hereof, and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any  photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced.  The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.  This Section 19 shall not prohibit the Company or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

 

SECTION 20.                  CONFIDENTIAL INFORMATION.

 

For the purposes of this Section 20, “Confidential Information” means information delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available.  Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes), (ii) its auditors, financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor to which it sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (v) any Person from which it offers to purchase any Security of the Company or any Subsidiary (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio, or (viii) any other Person to which such delivery or 

 

57

 

disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes, this Agreement and the other Note Documents.  Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 20 as though it were a party to this Agreement.  On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying the provisions of this Section 20.

 

In the event that as a condition to receiving access to information relating to the Company or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser is required to agree to a confidentiality undertaking (whether through Intralinks or otherwise) which is different from the terms of this Section 20, the terms of this Section 20 shall, as between such Purchaser and the Company, supersede the terms of any such other confidentiality undertaking.

 

SECTION 21.                  SUBSTITUTION OF PURCHASER.

 

Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 6.  Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall be deemed to refer to such Affiliate in lieu of such original Purchaser.  In the event that such Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to such original Purchaser all of the Notes then held by such Affiliate, upon receipt by the Company of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this Agreement (other than in this Section 21), shall no longer be deemed to refer to such Affiliate, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.

 

SECTION 22.                  MISCELLANEOUS.

 

Section 22.1.                         Successors and Assigns.  All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or not.

 

Section 22.2.                         Payments Due on Non-Business Days.  Anything in this Agreement, the Notes or any other Note Document to the contrary notwithstanding, any payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other than a Business Day 

 

58

 

shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of any Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

 

Section 22.3.                         Accounting Terms.  All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP.  Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP.  For purposes of determining compliance with the financial covenants contained in this Agreement, any election by the Company to measure any financial liability using fair value (as permitted by Accounting Standard Codification Topic No. 825-10-25 - Fair Value Option or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made.  If any Note Party is required after the date of the Restatement Effective Date to implement any change(s) in its accounting principles and practice as a result of any changes in GAAP mandated by the Financial Accounting Standards Board or any successor organization, and if such change(s) result in any material change in the method of calculation of the Leverage Ratio, the Senior Secured Leverage Ratio or the Interest Coverage Ratio, then for all periods after the date of implementation of such change(s) until one or more appropriate amendments of this Agreement addressing such change(s) in GAAP are negotiated, executed and delivered by the parties hereto in a form acceptable to all such parties, the Leverage Ratio, the Senior Secured Leverage Ratio or the Interest Coverage Ratio, as applicable, shall be calculated hereunder utilizing GAAP as in effect prior to such change(s).

 

Section 22.4.                         Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section 22.5.                         Construction, Etc.  Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.  Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

 

For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be deemed to be a part hereof.

 

Section 22.6.                         Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one 

 

59

 

instrument.  Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.

 

Section 22.7.                         Governing Law.  This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

 

Section 22.8.                         Jurisdiction and Process; Waiver of Jury Trial.  (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement, the Notes and the other Note Documents to which it is a party.  To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

(b)                                 The Company consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address specified in Section 18 or at such other address of which such holder shall then have been notified pursuant to said Section.  The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it.  Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.

 

(c)                                  Nothing in this Section 22.8 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

 

(d)                                 THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.

 

Section 22.9.                         Transaction References.  The Company agrees that Prudential may (i) refer to its role in originating the purchase of the Notes from the Company, as well as the identity of the Company and the aggregate principal amount and issue date of the Notes, on its internet site or in marketing materials, press releases, published “tombstone” announcements or any other print or electronic medium and (ii) display the Company’s corporate logo in conjunction with any such reference.

 

60

 

Section 22.10.      Effect of Amendment and Restatement.  As of the Restatement on the Restatement Effective Date, the Existing Note Agreement shall be amended, restated and superseded in its entirety by this Agreement.  The parties hereto acknowledge and agree that (a) this Agreement and the other Note Documents, whether executed and delivered in connection herewith or otherwise, do not constitute a novation, payment or reborrowing, or termination of the Note Obligations under the Existing Note Agreement as in effect prior to the Restatement on the Restatement Effective Date, (b) such Note Obligations are in all respects continuing (as amended and restated hereby) with only the terms thereof being modified as provided in this Agreement and the other Note Documents, and (c) the Liens granted under the Security Documents or any other Note Document are continuing and in full force and effect and the amendment and restatement of the Existing Note Agreement and any other Note Document shall not constitute a novation, termination, extinguishment, new grant or re-grant of such Liens.  Each reference to the Existing Note Agreement in any Note Document shall be deemed to be a reference to this Agreement.

 

*    *    *    *    *

 

61

 

If you are in agreement with the foregoing, please sign the form of agreement on a counterpart of this Agreement and return it to the Company, whereupon this Agreement shall become a binding agreement between you and the Company.

 

Very truly yours,

 

NGL ENERGY PARTNERS LP, a Delaware limited partnership

 

	
 
    	
By:
    	
NGL   Energy Holdings LLC,
    
	
 
    	
 
    	
its   general partner
    

 

 

	
 
    	
By:
    	
/s/   Robert “Trey” Karlovich III
    
	
 
    	
Name:
    	
Robert   “Trey” Karlovich III
    
	
 
    	
Title:
    	
Chief   Financial Officer and 
    
	
 
    	
 
    	
Executive   Vice President
    

 

Signature Page to

Amended and Restated Note Purchase Agreement

 

 

This Agreement is hereby

accepted and agreed to on

the date first above written,

effective as of the Restatement

Effective Date.

 

	
 
    	
THE PRUDENTIAL INSURANCE   COMPANY OF AMERICA,   as a holder
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian Lemons
    
	
 
    	
 
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PRUCO   LIFE INSURANCE COMPANY,   as a holder
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian Lemons
    
	
 
    	
 
    	
Assistant   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
UNIVERSAL PRUDENTIAL ARIZONA REINSURANCE   COMPANY, as a   holder
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PGIM, Inc., as investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Brian Lemons
    
	
 
    	
 
    	
 
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PRUDENTIAL ARIZONA REINSURANCE CAPTIVE   COMPANY, as a holder
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PGIM, Inc., as investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Brian Lemons
    
	
 
    	
 
    	
 
    	
Vice   President
    
	
 
    	
 
    	
 
    
					

 

Signature Page to

Amended and Restated Note Purchase Agreement

 

 

	
 
    	
PRUDENTIAL ARIZONA REINSURANCE UNIVERSAL   COMPANY, as a holder
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PGIM, Inc., as investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Brian Lemons
    
	
 
    	
 
    	
 
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PRUDENTIAL RETIREMENT INSURANCE   AND ANNUITY COMPANY,   as a holder
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
PGIM, Inc., as investment manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Brian Lemons
    
	
 
    	
 
    	
 
    	
Vice   President
    
	
 
    	
 
    	
 
    

 

Signature Page to

Amended and Restated Note Purchase Agreement

 

 

AMERICAN GENERAL LIFE INSURANCE COMPANY (successor by merger to

AMERICAN GENERAL LIFE AND ACCIDENT INSURANCE COMPANY)

AMERICAN GENERAL LIFE INSURANCE COMPANY (successor by merger to

AMERICAN GENERAL LIFE INSURANCE COMPANY OF DELAWARE)

AMERICAN GENERAL LIFE INSURANCE COMPANY (successor by merger to

SUNAMERICA ANNUITY AND LIFE ASSURANCE COMPANY)

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

(successor by merger to First SunAmerica Life Insurance Company)

AMERICAN HOME ASSURANCF COMPANY

NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA

AIG PROPERTY CASUALTY COMPANY (f/k/a CHARTIS PROPERTY CASUALTY  COMPANY)

 

	
By:
    	
AIG   ASSET MANAGEMENT (U.S.), LLC, Investment Adviser
    
	
 
    
	
By: 
    	
/s/ Michael Reynolds
    	
 
    
	
Name:
    	
     Michael   Reynolds
    
	
Title:
    	
     Vice   President
    

 

Signature Page to

Amended and Restated Note Purchase Agreement

 

 

	
 
    	
TEACHERS   INSURANCE AND ANNUITY ASSOCIATION OF AMERICA, as a holder
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lisa M. Ferraro
    
	
 
    	
Name:
    	
Lisa   M. Ferraro
    
	
 
    	
Title:
    	
Managing   Director
    
				

 

Signature Page to

Amended and Restated Note Purchase Agreement

 

 

	
 
    	
SUN LIFE ASSURANCE COMPANY OF   CANADA,
    
	
 
    	
as a holder
    
	
 
    
	
 
    	
By:
    	
/s/   Steve Theofanis
    
	
 
    	
Name:
    	
Steve   Theofanis
    
	
 
    	
Title:
    	
Managing   Director — Private Fixed Income
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen Kicinski
    
	
 
    	
Name:
    	
 Stephen Kicinski
    
	
 
    	
Title:
    	
Senior   Managing Director — Private Fixed Income
    
	
 
    	
 
    
						

 

Signature Page to

Amended and Restated Note Purchase Agreement

 

 

NGL ENERGY PARTNERS LP

 

INFORMATION RELATING TO PURCHASERS

 

[See Purchaser Schedules beginning on following page]

 

 

PURCHASER SCHEDULE

NGL Energy Partners LP

6.65% Senior Secured Notes due 2022

 

	
 
    	
 
    	
 
    	
 
    	
Aggregate
   Principal
   Amount of Notes
   to be Purchased
    	
 
    	
Note
   Denomination(s)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
    	
 
    	
$
    	
57,970,000
    	
 
    	
$
    	
40,150,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
17,820,000
    	
 
    
	
(1)
    	
 
    	
All payments on account of Notes held by such   purchaser shall be made by wire transfer of immediately available funds for   credit to:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
JPMorgan Chase Bank

New York, NY

ABA No.: 021-000-021
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Account Name: Prudential Managed Portfolio

Account No.: P86188 (please do not include spaces)   (in the case of payments on account of the Note originally issued in the   principal amount of $40,150,000)
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Account Name: Privest Plus

Account No.: P86288 (please do not include spaces)   (in the case of payments on account of the Note originally issued in the   principal amount of $17,820,000)
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Each such wire transfer shall set forth the name of   the Company, a reference to “6.65% Senior Secured Notes due 2022, Security   No. INV11502, PPN 62913M A*8” and the due date and application (as among   principal, interest and Make-Whole Amount) of the payment being made.
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(2)
    	
 
    	
Address for all communications and notices:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Prudential Insurance Company of America

c/o Prudential Capital Group

2200 Ross Avenue, Suite 4300

Dallas, TX 75201

 

Attention: Managing Director, Energy Finance Group -   Oil & Gas

 

and for all notices relating solely to scheduled   principal and interest payments to: 
    	
 
    	
 
    	
 
    	
 
    	
 
    
										

 

 

	
 
    	
 
    	
The Prudential Insurance Company of America

c/o PGIM, Inc.

Prudential Tower

655 Broad Street

14th Floor - South Tower

Newark, NJ 07102
   Attention: PIM Private Accounting Processing Team

Email: Pim.Private.Accounting.Processing.Team@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(3)
    	
 
    	
Address for Delivery of Notes:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)                                 Send   physical security by nationwide overnight delivery service to:

 

PGIM, Inc.

655 Broad Street

14th Floor - South   Tower

Newark, NJ 07102

 

Attention: Michael   Iacono - Trade Management manager

 

(b)                                 Send   copy by email to:

 

jaya.mcclure@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(4)
    	
 
    	
Tax Identification No.: 22-1211670
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
 
    	
 
    	
Aggregate
   Principal
   Amount of Notes
   to be Purchased
    	
 
    	
Note
   Denomination(s)
    	
 
    
	
 
    	
 
    	
PRUCO LIFE INSURANCE COMPANY
    	
 
    	
$
    	
4,720,000
    	
 
    	
$
    	
3,590,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1,130,000
    	
 
    
	
(1)
    	
 
    	
All payments on account of Notes held by such   purchaser shall be made by wire transfer of immediately available funds for   credit to:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
JPMorgan Chase Bank

New York, NY

ABA No.: 021-000-021
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Account Name: Pruco Life Private Placement

Account No.: P86192 (please do not include spaces)   (in the case of payments on account of the Note originally issued in the   principal amount of $3,590,000)
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Account Name: PLAZ MVA PCG Privates

Account No.: P01352 (please do not include spaces)   (in the case of payments on account of the Note originally issued in the   principal amount of $1,130,000)
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Each such wire transfer shall set forth the name of   the Company, a reference to “6.65% Senior Secured Notes due 2022, Security   No. INV11502, PPN 62913M A*8”, and the due date and application (as   among principal, interest and Make-Whole Amount) of the payment being made.
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(2)
    	
 
    	
Address for all communications and notices:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Pruco Life Insurance Company

c/o Prudential Capital Group

2200 Ross Avenue, Suite 4300

Dallas, TX 75201

 

Attention: Managing Director, Energy Finance Group -   Oil & Gas

 

and for all notices relating solely to scheduled principal   and interest payments to:

 

Pruco Life Insurance Company

c/o PGIM, Inc.

Prudential Tower

655 Broad Street
    	
 
    	
 
    	
 
    	
 
    	
 
    
										

 

 

	
 
    	
 
    	
14th Floor - South Tower

Newark, NJ 07102

Attention: PIM Private Accounting Processing Team

Email: Pim.Private.Accounting.Processing.Team@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(3)
    	
 
    	
Address for Delivery of Notes:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)                                 Send   physical security by nationwide overnight delivery service to:

 

PGIM, Inc.

655 Broad Street

14th Floor - South   Tower

Newark, NJ 07102

 

Attention: Michael   Iacono - Trade Management manager

 

(b)                                 Send   copy by email to:

 

jaya.mcclure@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(4)
    	
 
    	
Tax Identification No.: 22-1944557
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
 
    	
 
    	
Aggregate
   Principal
   Amount of Notes
   to be Purchased
    	
 
    	
Note
   Denomination(s)
    	
 
    
	
 
    	
 
    	
UNIVERSAL PRUDENTIAL ARIZONA REINSURANCE COMPANY
    	
 
    	
$
    	
2,680,000
    	
 
    	
$
    	
2,680,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(1)
    	
 
    	
All payments on account of Notes held by such   purchaser shall be made by wire transfer of immediately available funds for credit   to:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Citibank/NYC

ABA No.: 021-000-089

Account Name: Citibank N.A. NY Trust and Custody

Account No.: 36859933

SWIFT: CITIUS33

FFC Account Name: UPARC PLAZ Trust 2

FFC Account No.: 240220
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Each such wire transfer shall set forth the name of   the Company, a reference to “6.65% Senior Secured Notes due 2022, Security   No. INV11502, PPN 62913M A*8”, and the due date and application (as   among principal, interest and Make-Whole Amount) of the payment being made.
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(2)
    	
 
    	
Address for all communications and notices:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Universal Prudential Arizona Reinsurance Company

c/o Prudential Capital Group

2200 Ross Avenue, Suite 4300

Dallas, TX 75201

 

Attention: Managing Director, Energy Finance Group -   Oil & Gas

 

and for all notices relating solely to scheduled   principal and interest payments to:

 

Universal Prudential Arizona Reinsurance Company

c/o PGIM, Inc.

Prudential Tower

655 Broad Street

14th Floor - South Tower

Newark, NJ 07102

Attention: PIM Private Accounting Processing Team

Email:   Pim.Private.Accounting.Processing.Team@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
										

 

 

	
(3)
    	
 
    	
Address for Delivery of Notes:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)                                 Send   physical security by nationwide overnight delivery service to:

 

PGIM, Inc.

655 Broad Street

14th Floor - South   Tower

Newark, NJ 07102

 

Attention: Michael Iacono - Trade Management manager

 

(b)                                 Send   copy by email to:

 

jaya.mcclure@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(4)
    	
 
    	
Tax Identification No.: 41-2214052
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
 
    	
 
    	
Aggregate
   Principal
   Amount of Notes
   to be Purchased
    	
 
    	
Note
   Denomination(s)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PRUDENTIAL ARIZONA REINSURANCE CAPTIVE COMPANY
    	
 
    	
$
    	
3,000,000
    	
 
    	
$
    	
3,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(1)
    	
 
    	
All payments on account of Notes held by such   purchaser shall be made by wire transfer of immediately available funds for   credit to:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Citibank/NYC

ABA No.: 021-000-089

Account Name: Citibank N.A. NY Trust and Custody

Account No.: 36859933

SWIFT: CITIUS33

FFC Account Name: PARCC PLAZ Trust 1

FFC Account No.: 240212
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Each such wire transfer shall set forth the name of   the Company, a reference to “6.65% Senior Secured Notes due 2022, Security   No. INV11502, PPN 62913M A*8”, and the due date and application (as   among principal, interest and Make-Whole Amount) of the payment being made.
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(2)
    	
 
    	
Address for all communications and notices:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Prudential Arizona Reinsurance Captive Company

c/o Prudential Capital Group

2200 Ross Avenue, Suite 4300

Dallas, TX 75201

 

Attention: Managing Director, Energy Finance Group -   Oil & Gas

 

and for all notices relating solely to scheduled   principal and interest payments to:

 

Prudential Arizona Reinsurance Captive Company

c/o PGIM, Inc.

Prudential Tower

655 Broad Street

14th Floor - South Tower

Newark, NJ 07102

Attention: PIM Private Accounting Processing Team

Email:   Pim.Private.Accounting.Processing.Team@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
										

 

 

	
(3)
    	
 
    	
Address for Delivery of Notes:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)                                 Send   physical security by nationwide overnight delivery service to:

 

PGIM, Inc.

655 Broad Street

14th Floor - South   Tower

Newark, NJ 07102

 

Attention: Michael   Iacono - Trade Management manager

 

(b)                                 Send   copy by email to:

 

jaya.mcclure@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(4)
    	
 
    	
Tax Identification No.: 33-1095301
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
 
    	
 
    	
Aggregate
   Principal
   Amount of Notes
   to be Purchased
    	
 
    	
Note
   Denomination(s)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PRUDENTIAL ARIZONA REINSURANCE UNIVERSAL COMPANY
    	
 
    	
$
    	
4,630,000
    	
 
    	
$
    	
4,630,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(1)
    	
 
    	
All payments on account of Notes held by such   purchaser shall be made by wire transfer of immediately available funds for   credit to:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
JPMorgan Chase Bank

New York, NY

ABA No.: 021-000-021

Account Name: Prudential Arizona Reinsurance   Universal Company - privates

Account No.: P01372 (please do not include spaces)
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Each such wire transfer shall set forth the name of   the Company, a reference to “6.65% Senior Secured Notes due 2022, Security   No. INV11502, PPN 62913M A*8”, and the due date and application (as   among principal, interest and Make-Whole Amount) of the payment being made.
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(2)
    	
 
    	
Address for all communications and notices:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Prudential Arizona Reinsurance Universal Company

c/o Prudential Capital Group

2200 Ross Avenue, Suite 4300

Dallas, TX 75201

 

Attention: Managing Director, Energy Finance Group -   Oil & Gas

 

and for all notices relating solely to scheduled   principal and interest payments to:

 

Prudential Arizona Reinsurance Universal Company

c/o PGIM, Inc.

Prudential Tower

655 Broad Street

14th Floor - South Tower

Newark, NJ 07102

Attention: PIM Private Accounting Processing Team

Email:   Pim.Private.Accounting.Processing.Team@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
										

 

 

	
(3)
    	
 
    	
Address for Delivery of Notes:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)                                 Send   physical security by nationwide overnight delivery service to:

 

PGIM, Inc.

655 Broad Street

14th Floor - South   Tower

Newark, NJ 07102

 

Attention: Michael   Iacono - Trade Management manager

 

(b)                                 Send   copy by email to:

 

jaya.mcclure@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(4)
    	
 
    	
Tax Identification No.: 45-2941561
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

	
 
    	
 
    	
 
    	
 
    	
Aggregate
   Principal
   Amount of Notes
   to be Purchased
    	
 
    	
Note
   Denomination(s)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY   COMPANY
    	
 
    	
$
    	
27,000,000
    	
 
    	
$
    	
27,000,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(1)
    	
 
    	
All payments on account of Notes held by such   purchaser shall be made by wire transfer of immediately available funds for   credit to:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
JP Morgan Chase Bank

New York, NY

ABA No. 021000021

Account Name: PRIAC

Account No. P86329 (please do not include   spaces)
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Each such wire transfer shall set forth the name of   the Company, a reference to “6.65% Senior Secured Notes due 2022, Security   No. INV11502, PPN 62913M A*8” and the due date and application (as among   principal, interest and Make-Whole Amount) of the payment being made.
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(2)
    	
 
    	
Address for all communications and notices:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Prudential Retirement Insurance and Annuity Company

c/o Prudential Capital Group

2200 Ross Avenue, Suite 4300

Dallas, TX 75201

 

Attention: Managing Director, Energy Finance Group -   Oil & Gas

 

and for all notices relating solely to scheduled   principal and interest payments to:

 

Prudential Retirement Insurance and Annuity Company

c/o PGIM, Inc.

Prudential Tower

655 Broad Street

14th Floor - South Tower

Newark, NJ 07102

Attention: PIM Private Accounting Processing Team

Email:   Pim.Private.Accounting.Processing.Team@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
										

 

 

	
(3)
    	
 
    	
Address for Delivery of Notes:
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)                                 Send   physical security by nationwide overnight delivery service to:

 

PGIM, Inc.

655 Broad Street

14th Floor - South   Tower

Newark, NJ 07102

 

Attention: Michael   Iacono - Trade Management manager

 

(b)                                 Send   copy by email to:

 

jaya.mcclure@prudential.com
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(4)
    	
 
    	
Tax Identification No.: 06-1050034
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

AMERICAN GENERAL LIFE INSURANCE COMPANY

 

Issuer:  NGL Energy Partners LP

 

Par Amount:  $15,000,000

 

(1)                                 All payments to be by wire transfer of immediately available funds, with sufficient information (including PPN #, interest rate, maturity date, interest amount, principal amount and premium amount, if applicable) to identify the source and application of such funds, to:

 

The Bank of New York Mellon

ABA # 021-000-018

Account Name:  BNYM Income

Account Number:  GLA111566

For Further Credit to:  AMERICAN GENERAL LIFE INS. CO. PHYSICAL; Account No. 886623

Reference:  PPN #62913M A*8 and Prin.: $          ; Int.: $

 

(2)           Payment notices, audit confirmations and related note correspondence to:

 

American General Life Insurance Company (886623)

c/o AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  PCG Investment Portfolio Support

Email:  PPGIPS@aig.com

 

(3)          Duplicate payment notices (only) to:

 

American General Life Insurance Company (886623)

c/o The Bank of New York Mellon

Attn:  P & I Department

Email:   aigteam@bnymellon.com

 

(4)           * Compliance reporting information (financial docs, officer’s certificates, etc.) to:

 

AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  Private Placements Compliance

Email:  complianceprivateplacements@aig.com

 

* Note:  Only two (2) complete sets of compliance information are required for all companies for which AIG Asset Management Group serves as investment adviser.

 

(5)           Note to be issued in the nominee name of:  HARE & CO., LLC (Tax ID #:  13-6062916)

 

(6)           Tax I.D. Number for American General Life Insurance Company:  25-0598210

 

(7)           Physical Delivery Instructions:

 

DTCC

570 Washington Blvd.

Jersey City, NJ 07310

Attn: BNY Mellon / Branch Deposit Department — 5th Floor

Contact:  Andre Granville; Phone:  (315) 414-3068

BNYM Participant Number:  901

BNYM Account Name:  AMERICAN GENERAL LIFE INSURANCE COMPANY

BNYM Account Number:  886623

 

 

AMERICAN GENERAL LIFE INSURANCE COMPANY

 

Issuer:   NGL Energy Partners LP

 

Par Amount:  $6,000,000

 

(1)                                 All payments to be by wire transfer of immediately available funds, with sufficient information (including PPN #, interest rate, maturity date, interest amount, principal amount and premium amount, if applicable) to identify the source and application of such funds, to:

 

The Bank of New York Mellon

ABA # 021-000-018

Account Name:  BNYM Income

Account Number:  GLA111566

For Further Credit to:  AMERICAN GENERAL LIFE INS. CO. PHYSICAL; Account No. 886623

Reference:  PPN #62913M A*8 and Prin.: $          ; Int.: $

 

(2)          Payment notices, audit confirmations and related note correspondence to:

 

American General Life Insurance Company (886623)

c/o AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  PCG Investment Portfolio Support

Email:  PPGIPS@aig.com

 

(3)          Duplicate payment notices (only) to:

 

American General Life Insurance Company (886623)

c/o The Bank of New York Mellon

Attn:  P & I Department

Email:   aigteam@bnymellon.com

 

(4)           * Compliance reporting information (financial docs, officer’s certificates, etc.) to:

 

AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  Private Placements Compliance

Email:  complianceprivateplacements@aig.com

 

* Note:  Only two (2) complete sets of compliance information are required for all companies for which AIG Asset Management Group serves as investment adviser.

 

(5)           Note to be issued in the nominee name of:  HARE & CO., LLC (Tax ID #:  13-6062916)

 

(6)          Tax I.D. Number for American General Life Insurance Company:  25-0598210

 

(7)           Physical Delivery Instructions:

 

DTCC

570 Washington Blvd.

Jersey City, NJ 07310

Attn: BNY Mellon / Branch Deposit Department — 5th Floor

Contact:  Andre Granville; Phone:  (315) 414-3068

BNYM Participant Number:  901

BNYM Account Name:  AMERICAN GENERAL LIFE INSURANCE COMPANY

BNYM Account Number:  886623

 

 

THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF NEW YORK

 

Issuer:  NGL Energy Partners LP

 

Par Amount:  10,000,000

 

(1)                                 All payments to be by wire transfer of immediately available funds, with sufficient information (including PPN #, interest rate, maturity date, interest amount, principal amount and premium amount, if applicable) to identify the source and application of such funds, to:

 

JPMorgan Chase Bank, N.A.

ABA # 021-000-021

Account Name:  AIG PHYSICAL WIRE ACCOUNT

Account Number:  780153941

FFC to:  P68423

Reference:  PPN PPN #62913M A*8 and Prin.: $          ; Int.: $

 

(2)           Payment notices, audit confirmations and related note correspondence to:

 

The United States Life Insurance Company in the City of New York (P68423)

c/o AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  PCG Investment Portfolio Support

Email:  PPGIPS@aig.com

 

(3)          Duplicate payment notices (only) to:

 

The United States Life Insurance Co. in the City of New York (P68423)

c/o JPMorgan Client Services

Email:  physical.abs.income@jpmorgan.com

 

(4)          * Compliance reporting information (financial docs, officer’s certificates, etc.) to:

 

AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  Private Placements Compliance

Email:  complianceprivateplacements@aig.com

 

* Note:  Only two (2) complete sets of compliance information are required for all companies for which AIG Asset Management Group serves as investment adviser.

 

(5)           Note to be issued in the nominee name of:  CUDD & CO (Tax ID #:  13-6022143)

 

(6)                                 Tax ID Number for The United States Life Insurance Company in the City of New York:  13-5459480

 

(7)           Physical Delivery Instructions:

 

JPMorgan Chase Bank, N.A.

4 Chase Metrotech Center

Brooklyn, New York 11245-0001

Attn:  Physical Receive Department — 3rd Floor (for overnight mail) OR

Physical Receive Dept. — 1st Floor, Window 5 (for messenger, use Willoughby Entrance)

Contact:  Aubrey M. Reuben; Phone:  (718) 242-0269

JPM Participant Number:  902

JPM Account Name:  THE UNITED STATES LIFE INSURANCE COMPANY IN THE CITY OF N. Y.

JPM Account Number:  P68423

 

 

AMERICAN HOME ASSURANCE COMPANY

 

Issuer:  NGL Energy Partners LP

 

Par Amount:  $7,000,000

 

(1)                                 All payments to be by wire transfer of immediately available funds, with sufficient information (including PPN #, interest rate, maturity date, interest amount, principal amount and premium amount, if applicable) to identify the source and application of such funds, to:

 

The Bank of New York Mellon

ABA # 021-000-018

Account Name:  BNYM Income

Account Number:  GLA111566

For Further Credit to:  AMERICAN HOME ASSURANCE CO.; Account No:  554933

Reference:  PPN #62913M A*8 and Prin.: $          ; Int.: $

 

(2)          Payment notices, audit confirmations and related note correspondence to:

 

American Home Assurance Company (554933)

c/o AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  PCG Investment Portfolio Support

Email:  PPGIPS@aig.com

 

(3)          Duplicate payment notices (only) to:

 

American Home Assurance Company (554933)

c/o The Bank of New York Mellon

Attn:  P & I Department

Fax:  (718) 315-3076

 

(4)          * Compliance reporting information (financial docs, officer’s certificates, etc.) to:

 

AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  Private Placements Compliance

Email:  complianceprivateplacements@aig.com

 

* Note:  Only two (2) complete sets of compliance information are required for all companies for which AIG Asset Management Group serves as investment adviser.

 

(5)           Note to be issued in the nominee name of:  HARE & CO., LLC (Tax ID #:  13-6062916)

 

(6)           Tax I.D. Number for American Home Assurance Company:  13-5124990

 

(7)           Physical Delivery Instructions:

 

DTCC

570 Washington Blvd.

Jersey City, NJ 07310

Attn: BNY Mellon / Branch Deposit Department — 5th Floor

Contact:  Andre Granville; Phone:  (315) 414-3068

BNYM Participant Number:  901

BNYM Account Name:  AMERICAN HOME ASSURANCE COMPANY

BNYM Account Number:  554933

 

 

NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA

 

Issuer:  NGL Energy Partners LP

 

Par Amount:  $7,000,000

 

(1)                                 All payments to be by wire transfer of immediately available funds, with sufficient information (including PPN #, interest rate, maturity date, interest amount, principal amount and premium amount, if applicable) to identify the source and application of such funds, to:

 

The Bank of New York Mellon

ABA # 021-000-018

Account Name:  BNYM Income

Account Number:  GLA111566

For Further Credit to:  NATIONAL UNION FIRE INSURANCE CO.; Account No:  554910

Reference:  PPN #62913M A*8 and Prin.: $          ; Int.: $

 

(2)          Payment notices, audit confirmations and related note correspondence to:

 

National Union Fire Insurance Co. of Pittsburgh, PA (554910)

c/o AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas   77019-2155

Attn:  PCG Investment Portfolio Support

Email:  PPGIPS@aig.com

 

(3)           Duplicate payment notices (only) to:

 

National Union Fire Insurance Co. of Pittsburgh, PA (554910)

c/o The Bank of New York Mellon

Attn:  P & I Department

Fax:  (718) 315-3076

 

(4)          * Compliance reporting information (financial docs, officer’s certificates, etc.) to:

 

AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  Private Placements Compliance

Email:   complianceprivateplacements@aig.com

 

* Note:  Only two (2) complete sets of compliance information are required for all companies for which AIG Asset Management Group serves as investment adviser.

 

(5)          Note to be issued in the nominee name of:  HARE & CO., LLC (Tax ID #:  13-6062916)

 

(6)                                 Tax I.D. Number for National Union Fire Insurance Company of Pittsburgh, PA:  25-0687550

 

(7)          Physical Delivery Instructions:

 

DTCC

570 Washington Blvd.

Jersey City, NJ 07310

Attn: BNY Mellon / Branch Deposit Department — 5th Floor

Contact:  Andre Granville; Phone:  (315) 414-3068

(a)           BNYM Participant Number:  901

BNYM Account Name:  NATIONAL UNION FIRE INSURANCE CO. OF PITTSBURGH, PA

BNYM Account Number:  554910

 

 

AMERICAN GENERAL LIFE INSURANCE COMPANY

 

Issuer:  NGL Energy Partners LP

 

Par Amount:  $5,000,000

 

(1)                                 All payments to be by wire transfer of immediately available funds, with sufficient information (including PPN #, interest rate, maturity date, interest amount, principal amount and premium amount, if applicable) to identify the source and application of such funds, to:

 

The Bank of New York Mellon

ABA # 021-000-018

Account Name:  BNYM Income

Account Number:  GLA111566

For Further Credit to:  AMERICAN GENERAL LIFE INS. CO. PHYSICAL; Account No. 886623

Reference:  PPN #62913M A*8 and Prin.: $          ; Int.: $

 

(2)           Payment notices, audit confirmations and related note correspondence to:

 

American General Life Insurance Company (886623)

c/o AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  PCG Investment Portfolio Support

Email:  PPGIPS@aig.com

 

(3)           Duplicate payment notices (only) to:

 

American General Life Insurance Company (886623)

c/o The Bank of New York Mellon

Attn:  P & I Department

Email:   aigteam@bnymellon.com

 

(4)           * Compliance reporting information (financial docs, officer’s certificates, etc.) to:

 

AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  Private Placements Compliance

Email:  complianceprivateplacements@aig.com

 

* Note:  Only two (2) complete sets of compliance information are required for all companies for which AIG Asset Management Group serves as investment adviser.

 

(5)           Note to be issued in the nominee name of:  HARE & CO., LLC (Tax ID #:  13-6062916)

 

(6)           Tax I.D. Number for American General Life Insurance Company:  25-0598210

 

(7)           Physical Delivery Instructions:

 

DTCC

570 Washington Blvd.

Jersey City, NJ 07310

Attn: BNY Mellon / Branch Deposit Department — 5th Floor

Contact:  Andre Granville; Phone:  (315) 414-3068

BNYM Participant Number:  901

BNYM Account Name:  AMERICAN GENERAL LIFE INSURANCE COMPANY

BNYM Account Number:  886623

 

 

AIG PROPERTY CASUALTY COMPANY

 

Issuer:  NGL Energy Partners LP

 

Par Amount:  $5,000,000

 

(1)                                 All payments to be by wire transfer of immediately available funds, with sufficient information (including PPN #, interest rate, maturity date, interest amount, principal amount and premium amount, if applicable) to identify the source and application of such funds, to:

 

The Bank of New York Mellon

ABA # 021-000-018

Account Name:  BNYM Income

Account Number:  GLA111566

For Further Credit to:  AIG PROPERTY CASUALTY CO.; Account No:  554903

Reference:  PPN PPN #62913M A*8 and Prin.: $          ; Int.: $

 

(2)           Payment notices, audit confirmations and related note correspondence to:

 

AIG Property Casualty Company (554903)

c/o AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas   77019-2155

Attn:  PCG Investment Portfolio Support

Email:  PPGIPS@aig.com

 

(3)          Duplicate payment notices (only) to:

 

AIG Property Casualty Company (554903)

c/o The Bank of New York Mellon

Attn:  P & I Department

Fax:  (718) 315-3076

 

(4)          * Compliance reporting information (financial docs, officer’s certificates, etc.) to:

 

AIG Asset Management

2929 Allen Parkway, A36-04

Houston, Texas  77019-2155

Attn:  Private Placements Compliance

Email:   complianceprivateplacements@aig.com

 

* Note:  Only two (2) complete sets of compliance information are required for all companies for which AIG Asset Management Group serves as investment adviser.

 

(5)           Note to be issued in the nominee name of:  HARE & CO., LLC (Tax ID #:  13-6062916)

 

(6)           Tax I.D. Number for AIG Property Casualty Company:  25-1118791

 

(7)           Physical Delivery Instructions:

 

DTCC

570 Washington Blvd.

Jersey City, NJ 07310

Attn: BNY Mellon / Branch Deposit Department — 5th Floor

Contact:  Andre Granville; Phone:  (315) 414-3068

BNYM Participant Number:  901

BNYM Account Name:  AIG PROPERTY CASUALTY COMPANY

BNYM Account Number:  554903

 

 

PURCHASER SCHEDULE

NGL Energy Partners LP

6.65% Senior Secured Notes due 2022

 

 

	
 
    	
 
    	
 
    	
 
    	
Aggregate
   Principal
   Amount of Notes
   to be Purchased
    	
 
    	
Note
   Denomination(s)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF   AMERICA
    	
 
    	
$
    	
55,000,000
    	
 
    	
$
    	
55,000,000
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(1)
    	
 
    	
All payments on account of Notes shall be made in   immediately available funds on the due date by electronic funds transfer,   through the Automated Clearing House System, to:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
JPMorgan Chase Bank, N.A.
   ABA # 021-000-021
   Account Number: 900-9-000200
   Account Name: TIAA
   For Further Credit to the Account Number: G07040
   Reference: PPN: 62913M A*8 / NGL Energy Partners LP
   Maturity Date: June 19, 2022 / Interest Rate: 6.65% / P&I Breakdown
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(2)
    	
 
    	
Address for all notices relating to payments:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Teachers Insurance and Annuity Association of   America
   730 Third Avenue
   New York, New York 10017
   Attention: Securities Accounting Division
   Phone: (212) 916-5504
   E-mail: jpiperato@tiaa.org or mwolfe@tiaa.org

 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
With a copy to:
    
   JPMorgan Chase Bank, N.A.
   P.O. Box 35308
   Newark, New Jersey 07101

 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
And to:

 

Teachers Insurance and   Annuity Association of America

730 Third Avenue

New York, New York   10017

Attention: Energy and   Infrastructure

Telephone:            (212) 916-6547(Lisa Ferraro)

Facsimile:              (212) 916-6140

Email:                    lisa.ferraro@tiaainvestments.com

 

and to:

 

Teachers Insurance and   Annuity Association of America

560 Mission Street

San Francisco, California  94105

Attention:  Energy and Infrastructure
    	
 
    	
 
    	
 
    	
 
    
									

 

 

	
 
    	
 
    	
Telephone:            (415) 882-3529(Vikram Singh)

Email:                    vikram.singh@tiaainvestments.com
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Contemporaneous written confirmation of any   electronic funds transfer shall be sent to the above addresses setting forth   (1) the full name, private placement number, interest rate and maturity   date of the Notes, (2) allocation of payment between principal,   interest, Make-Whole Amount, other premium or any special payment and   (3) the name and address of the bank from which such electronic funds   transfer was sent.
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(3)
    	
 
    	
Address for all other communications and notices:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Teachers Insurance and   Annuity Association of America

730 Third Avenue

New York, New York   10017

Attention: Energy and   Infrastructure

Telephone:            (212) 916-6547(Lisa Ferraro)

Facsimile:              (212) 916-6140

Email:                    lisa.ferraro@tiaainvestments.com

 

and to:

 

Teachers Insurance and   Annuity Association of America

560 Mission Street

San Francisco, California  94105

Attention:  Energy and Infrastructure

Telephone:            (415) 882-3529(Vikram Singh)

Email:                    vikram.singh@tiaainvestments.com
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(5)
    	
 
    	
Address for Delivery of Notes:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Send physical security by nationwide overnight   delivery service to:
    
   JPMorgan Chase Bank, N.A.
   4 Chase Metrotech Center
   3rd Floor
   Brooklyn, New York 11245-0001
   Attention: Physical Receive Department
   For TIAA A/C #G07040
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(6)
    	
 
    	
Tax Identification No.: 13-1624203
    	
 
    	
 
    	
 
    	
 
    

 

 

PURCHASER SCHEDULE

NGL Energy Partners LP

6.65% Senior Secured Notes due 2022

 

	
(1)
    	
Name   and Address of Purchaser
    	
 
    	
Principal   Amount
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Sun   Life Assurance Company of Canada
    	
 
    	
$40,000,000
    
	
 
    	
150   King Street West
    	
 
    	
 
    
	
 
    	
Toronto,   Ontario, Canada M5H 1J9
    	
 
    	
 
    
	
 
    	
Attn:   Private Fixed Income
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(2)
    	
Payments:
    	
 
    	
 
    
	
 
    	
All   payments on or in respect of the Notes shall be made in immediately available   funds on the due date by electronic funds transfer via International Wire   Payment, through the Automated Clearing House System, to:
    

 

	
 
    	
DESTINATION BANK:
    	
Wachovia   Bank, N.A.
   New York, NY

 

SWIFT   CODE:  PNBPUS3NNYC

 

FEDWIRE   ABA #026005092 “Or” CHIPS Participant ABA    #0509 
    
	
 
    	
 
    	
 
    
	
 
    	
BENEFICIARY’S BANK:
    	
Bank of   Montreal

International   Banking, Head Office

129 St.   James

Montreal,   Quebec

 

SWIFT   CODE:  BOFMCAM2 “Or” CHIPS UID 046440

 

Account   #:   2000192009878
    
	
 
    	
 
    	
 
    
	
 
    	
BENEFICIARY:
    	
24234600338

Sun Life   Assurance Company of Canada

227 King   Street South

Waterloo,   Ontario  N2J 4C5

 

Refer:  (For Private Fixed Income - 302F37)
    

 

	
(3)
    	
Payment   Notices:
    	
 
    	
 
    
	
 
    	
All   notices with respect to payments and prepayments of the Notes shall be sent   to:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Sun   Life Assurance Company of Canada
    	
 
    	
 
    
	
 
    	
227   King Street South
    	
 
    	
 
    
	
 
    	
Waterloo,   Ontario, Canada N2J 4C5
    	
 
    	
 
    
	
 
    	
Attention:   Donna Kutchcoski (Private Placement Specialist)
    	
 
    	
 
    
	
 
    	
Phone:   (519) 888-2703
    	
 
    	
 
    
	
 
    	
Facsimile:   (519) 888-3666
    	
 
    	
 
    
	
 
    	
E-mail: donna.kutchcoski@sunlife.com
    	
 
    	
 
    

 

 

	
 
    	
With   a copy to:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Sun   Life Assurance Company of Canada
    	
 
    	
 
    
	
 
    	
1155   Metcalfe Street, suite 2156
    	
 
    	
 
    
	
 
    	
Montreal,   Quebec, Canada H3B 2V9
    	
 
    	
 
    
	
 
    	
Attention: Maurice Primeau
    	
 
    	
 
    
	
 
    	
Phone: (514) 866-6419
    	
 
    	
 
    
	
 
    	
Facsimile: (519) 866-1449
    	
 
    	
 
    
	
 
    	
E-mail: maurice.primeau@sunlife.com
    	
 
    	
 
    

 

	
 
    	
Contemporaneous   written confirmation of any electronic funds transfer shall be sent to the   above addresses setting forth (1) the full name, private placement   number, interest rate and maturity date of the Notes, (2) allocation of   payment between principal, interest, Make-Whole Amount, other premium or any   special payment and (3) the name and address of the bank from which such   electronic funds transfer was sent.  
    

 

	
(4)
    	
Other   Notices and Communications:
    	
 
    	
 
    
	
 
    	
All   other notices and communications shall be delivered or mailed to:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Sun   Life Assurance Company of Canada
    	
 
    	
 
    
	
 
    	
1155   Metcalfe Street, suite 2156
    	
 
    	
 
    
	
 
    	
Montreal,   Quebec, Canada H3B 2V9
    	
 
    	
 
    
	
 
    	
Attention: Maurice Primeau
    	
 
    	
 
    
	
 
    	
Phone: (514) 866-6419
    	
 
    	
 
    
	
 
    	
Facsimile: (519) 866-1449
    	
 
    	
 
    
	
 
    	
E-mail: maurice.primeau@sunlife.com
    	
 
    	
 
    

 

	
(5)
    	
Recipient   of telephonic prepayment notices:
    	
 
    	
 
    
	
 
    	
Phone: (514) 866-6419 (Maurice Primeau)
    	
 
    	
 
    
	
 
    	
Facsimile: (519) 866-1449
    	
 
    	
 
    

 

	
(6)
    	
Taxpayer   Identification Number:
    	
Canada Revenue   Agency Business Number is 105071005.
    

 

	
(7)
    	
Physical   Delivery of Notes:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Sun   Life Assurance Company of Canada
    	
 
    	
 
    
	
 
    	
227   King Street South
    	
 
    	
 
    
	
 
    	
Waterloo,   Ontario, Canada N2J 4C5
    	
 
    	
 
    
	
 
    	
Attention:   Donna Kutchcoski (Private Placement Specialist)
    	
 
    	
 
    
	
 
    	
Phone:   (519) 888-2703
    	
 
    	
 
    
	
 
    	
Facsimile:   (519) 888-3666
    	
 
    	
 
    
	
 
    	
E-mail: donna.kutchcoski@sunlife.com
    	
 
    	
 
    

 

 

DEFINED TERMS

 

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

 

“Acquisition Consideration” means the purchase consideration for any Permitted Acquisition and all other payments by the Company or any other Note Party in exchange for, or as part of, or in connection with, such Permitted Acquisition, whether paid in cash or by exchange of equity interests or of properties or otherwise and whether payable at or prior to the consummation of such Permitted Acquisition or deferred for payment at any future time, whether or not any such future payment is subject to the occurrence of any contingency, and includes any and all payments representing the purchase price and any assumptions of Indebtedness, “earn-outs” and other agreements to make any payment the amount of which is, or the terms of payment of which are, in any respect subject to or contingent upon the revenues, income, cash flow or profits (or the like) of any Person or business; provided, that any such future payment that is subject to a contingency shall be considered Acquisition Consideration only to the extent of the reserve, if any, required under GAAP at the time of such sale to be established in respect thereof by the Company or any other Note Party.

 

“Acquisition Determination Date” means the date of execution by any Note Party of any binding agreement to undertake a Permitted Acquisition.

 

“Additional Covenants” means any affirmative or negative covenant or similar restriction applicable to the Company or any Subsidiary (regardless of whether such provision is labeled or otherwise characterized as a covenant) the subject matter of which either (i) is similar to that of any covenant in Section 9 or 10 of this Agreement, or related definitions in Schedule B of this Agreement, but contains one or more percentages, amounts or formulas that is more restrictive than those set forth herein or more beneficial to the holder or holders of the Indebtedness created or evidenced by the document in which such covenant or similar restriction is contained (and such covenant or similar restriction shall be deemed an Additional Covenant only to the extent that it is more restrictive or more beneficial) or (ii) is different from the subject matter of any covenant in Section 9 or 10 of this Agreement, or related definitions in Schedule B of this Agreement.

 

“Additional Defaults” means any provision contained in any document or instrument creating or evidencing Indebtedness of the Company or any Subsidiary which permits the holder or holders of Indebtedness to accelerate (with the passage of time or giving of notice or both) the maturity thereof or otherwise requires the Company or any Subsidiary to purchase such Indebtedness prior to the stated maturity thereof and which either (i) is similar to any Default or Event of Default contained in Section 11 of this Agreement, or related definitions in Schedule B of this Agreement, but contains one or more percentages, amounts or formulas that is more restrictive or has a shorter grace period than those set forth herein or is more beneficial to the holders of such other Indebtedness (and such provision shall be deemed an Additional Default only to the extent that it is more restrictive, has a shorter grace period or is more beneficial) or (ii) is different from the subject matter of any Default or Event of Default contained in Section 11 of this Agreement, or related definitions in Schedule B of this Agreement.

 

Schedule B

(to Note Purchase Agreement)

 

 

“Administrative Agent” means Deutsche Bank Trust Company Americas, in its capacity as administrative agent pursuant to the Credit Agreement or any successor administrative agent appointed pursuant to the provisions thereof.

 

“Affiliate” of any Person means any other Person which directly or indirectly through one or more intermediaries controls or is controlled by or under common control with such first-mentioned Person.  For purposes of this definition, “control” (including “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person through the ability to exercise voting power, by contract or otherwise.  Without limiting the generality of the foregoing, control of the right to vote 10% or more of all voting securities of a Person or beneficial ownership of 10% of the outstanding equity interests in such Person shall be deemed to be control.

 

“Agreement” means this Agreement as it may be amended or supplemented from time to time.

 

“Annual Audited Financial Statements” means (a) the annual audited financial statements of the Company and its Subsidiaries, including all notes thereto, which statements shall include, on a consolidated basis, a balance sheet as of the end of such fiscal year and a statement of operations, a statement of changes in equity and a statement of cash flows for such fiscal year, all setting forth in comparative form the corresponding figures from the previous fiscal year consistently applied and accompanied by a report and opinion of Grant Thornton LLP or another firm of independent certified public accountants of national standing reasonably acceptable to the Required Holders, which report shall not contain any qualification (and be without comment as to the accountants’ opinion whether such Person is a “going concern” or can continue to be a “going concern”), except that such report may contain qualifications with respect to new accounting principles mandated by the Financial Accounting Standards Board (or its successor organization), and shall state that such financial statements, in the opinion of such accountants, present fairly, in all material respects, the financial position of the Company and its Subsidiaries as of the date thereof and the results of its operations and cash flows for the period covered thereby in conformity with GAAP consistently applied, and (b) annual unaudited business line financial statements of the Company and its Subsidiaries prepared in reasonable detail.

 

“Anti-Money Laundering Laws” is defined in Section 5.16(c).

 

“Available Cash” has the meaning ascribed to such term in the Agreement of Limited Partnership of the Company as in effect as of the Original Closing Date.

 

“Bank Products” means any of the following a Secured Party provides to, or enters into with, a Note Party:

 

(a)                                 any deposit, lockbox or other cash management arrangement; or

 

(b)                                 any other traditional commercial bank product, service or agreement pursuant to which a Note Party or Subsidiary of a Note Party may be indebted or owe obligations to a Lender or one of its Affiliates, including credit cards for commercial customers (including 

 

B-2

 

“commercial credit cards” and purchasing cards), stored value cards and treasury management services (including controlled disbursement, automated clearinghouse transactions, returned items, overdrafts and interstate depository network services).

 

“Blocked Person” is defined in Section 5.16(a).

 

“Borrowing Base Certificate” means a certificate completed in the form of Exhibit G attached to the Credit Agreement (and otherwise in form and substance satisfactory to the Purchasers), signed by a Responsible Officer of the Company.

 

“Borrowing Base Reference Time” means, with respect to any Borrowing Base Certificate, the close of business as of the last day of the period covered by such Borrowing Base Certificate.

 

“Business Day” means (a) for the purposes of Section 8.8 only, any day other than a Saturday, a Sunday or a day on which commercial banks in New York City are required or authorized to be closed, and (b) for the purposes of any other provision of this Agreement, any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed.

 

“Business Entity” means corporations, partnerships, joint ventures, joint stock associations, business trusts, limited liability companies, unlimited liability companies, and other business entities.

 

“Canadian Dollars” means dollars in lawful currency of Canada.

 

“Capital Expenditures” means, with respect to any Person for any period, all capital expenditures of such Person, on a consolidated basis, for such period determined in accordance with GAAP.

 

“Capital Lease Obligations” means the obligations of a Person to pay rent or other amounts under a lease of (or other agreement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person under GAAP.

 

“Cash Dividends” means, with respect to any Person for any period, all cash dividend and cash distribution payments actually made on any Equity Interests of such Person for such period.

 

“Cash Equivalents” means (a) securities with maturities of ninety (90) days or less from the date of acquisition or acceptance that are issued or fully guaranteed or insured by the United States government or any agency thereof, (b) certificates of deposit and eurodollar time deposits with maturities of ninety (90) days or less from the date of acquisition and overnight bank deposits of any Lender or of any commercial bank with commercial paper rated, on the day of such purchase, at least A-1 or the equivalent thereof by S&P or P-1 or the equivalent by Moody’s, (c) repurchase obligations of any Lender or of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than thirty (30) days with respect to securities issued or fully guaranteed or insured by the United States government, (d)

 

B-3

 

commercial paper of a domestic issuer rated at least A-1 or the equivalent thereof by S&P or P-1 or the equivalent thereof by Moody’s and in either case maturing within ninety (90) days after the day of acquisition, (e) securities with maturities of ninety (90) days or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United States, by any political subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are rated at least A by S&P or A by Moody’s, (f) securities with maturities of ninety (90) days or less from the date of acquisition backed by standby letters of credit issued by any Lender or any commercial bank satisfying the requirements of clause (b) of this definition or (g) shares of money market mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition.

 

“Change of Control” means the occurrence of any of the following events: (a) the Company fails to directly or indirectly own and control beneficially and of record (free and clear of Liens other than Liens permitted under Section 10.5) the percentage of the Equity Interests of each Guarantor as set forth on Schedule 5.4 (other than as a result of a Permitted Disposition); (b) the General Partner shall fail to directly own and control beneficially and of record (free and clear of Liens other than Liens permitted under Section 10.5) 100% of the general partner interests of the Company; (c) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan, and any Permitted Holder) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire (such right, an “option right”), whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of 35% or more of the voting Equity Interests of the General Partner on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right); or (d) a majority of the members of the board of managers or other equivalent governing body of the General Partner (excluding vacant seats) cease to be Continuing Members.

 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time.

 

“Collateral” means all collateral and security as described in the Security Documents.

 

“Collateral Agent” means Deutsche Bank Trust Company Americas, in its capacity as collateral agent pursuant to the Intercreditor Agreement or any successor collateral agent appointed pursuant to the provisions thereof.

 

“Collateral Reinstatement Date” means the first date following any Collateral Release Date on which the Company ceases to have an Investment Grade Rating from at least two of S&P, Moody’s and/or Fitch.

 

“Collateral Release Date” is defined in Section 9.15.

 

B-4

 

“Company” means NGL Energy Partners LP, a Delaware limited partnership.

 

“Company Notice” is defined in Section 9.17.

 

“Company Preferred Equity” means the class A preferred Equity Interests in the Company.

 

“Compliance Certificate” means a certificate substantially in the form of Exhibit B-1 and otherwise in form and substance satisfactory to the Required Holders.

 

“Confidential Information” is defined in Section 20.

 

“Consolidated EBITDA” means, for any period, for the Note Parties 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 Expense for such period, (ii) income tax expense, (iii) the amount of depreciation and amortization expense deducted in determining such Consolidated Net Income, (iv) any extraordinary non-cash charges for such period, (v) any other non-cash charges for such period (but excluding any non-cash charges in respect of an item that was included in Consolidated Net Income in a prior period), (vi) fees and expenses incurred during such period in connection with any proposed or actual issuance of any Indebtedness or Equity Interests, or any proposed or actual acquisitions, investments, asset sales or divestitures permitted hereunder, and any losses during such period attributable to cash payments relating to early extinguishment of Indebtedness, (vii) any marked to market net unrealized gains on Product that is physical inventory on the consolidated balance sheet of the Note Parties and their Subsidiaries at the end of such period where the lower of cost or market expenses, or losses on associated hedge transactions, as applicable, have been realized in Consolidated Net Income for such period, and (viii) any marked to market net unrealized gains on financial derivatives and fixed price forward contracts relating to the purchase of sale of Product held by the Note Parties and their Subsidiaries at the end of such period; provided, however that the amount of adjustments pursuant to clause (viii) above shall not exceed 5.0% of the Consolidated EBITDA reflected in the most recently delivered Compliance Certificate, and minus (b) the following to the extent included in Consolidated Net Income:  (i) extraordinary gains and any non-cash items of income for such period and (ii) all cash payments made during such period in respect of non-cash charges described in clause (a)(v) above in a prior period; provided, however, that the results of operations of all Persons in which the Note Parties have an ownership interest (other than a Subsidiary or other Person that the Note Parties retain at least 50% of the ownership interests in) shall only be included in Consolidated EBITDA to the extent that the relevant Note Party actually receives cash distributions in respect of its ownership interests in such Person during such period for which Consolidated EBITDA is being calculated (provided that in the event of any Disposition of the Note Parties’ ownership interests in such Person, any cash distributions received by the Note Parties in respect of such Disposition included in the calculation of Consolidated EBITDA shall be deducted therefrom for such period).  Consolidated EBITDA shall be calculated for each period, on a pro forma basis, after giving effect to, without duplication, any Major Permitted Business Expansion Project, any Permitted Acquisition and any Material Disposition occurring during each period, as the case may be, and as if such Major Permitted Business Expansion Project, Permitted Acquisition and Material Disposition occurred or was completed on the first day of such period; provided that

 

B-5

 

with regard to each Permitted Acquisition (x) such pro forma adjustment shall not exceed by more than 15.0%, either (1) the actual EBITDA of the Person or assets being acquired for the immediately preceding four fiscal quarters ending on or prior to the date of determination or (2) the actual EBITDA of the Person or assets being acquired for the immediately preceding eight fiscal quarters ending on or prior to the date of determination divided by two, as elected by the Company, and (y) no such pro forma adjustments shall be allowed unless, not less than five Business Days (or such lesser period as is acceptable to the Required Holders) prior to the applicable Acquisition Determination Date, the holders of Notes shall have received the documentation required in connection with such Permitted Acquisition and the calculations supporting such pro forma adjustments.  In making the pro forma calculation contemplated by the preceding sentence, adjustments to Consolidated EBITDA shall be determined in good faith by the Company based on reasonable assumptions; provided that (A) any such pro forma adjustments to Consolidated EBITDA shall be acceptable to the Required Holders and (B) with regard to each Major Permitted Business Expansion Project, excluding the Grand Mesa Project, such pro forma adjustment (x) shall be based upon forecasted income that is either (1) derived from binding, non-contingent contracts or (2) is deemed highly probable by the applicable Note Party and such determination is acceptable to the Required Holders in their discretion, in each case of clauses (1) and (2), less appropriate direct and indirect costs to realize such income and (y) when aggregated with all pro forma adjustments attributable to Major Permitted Business Expansion Projects, excluding the Grand Mesa Project, shall not exceed 15.0% of the Consolidated EBITDA reflected in the most recently delivered Compliance Certificate, net of any actual Consolidated EBITDA realized from such Major Permitted Business Expansion Projects (excluding the Grand Mesa Project) and without giving effect to increases in such Consolidated EBITDA arising from such Major Permitted Business Expansion Projects for such pro forma period; provided that with respect to pro forma adjustments attributable to Major Permitted Business Expansion Projects, excluding the Grand Mesa Project, derived from highly probable forecasted income pursuant to clause (x)(2) above, the aggregate adjustments shall not exceed 5.0% of the Consolidated EBITDA reflected in the most recently delivered Compliance Certificate; provided, further, that with respect to the Grand Mesa Project, such pro forma adjustment to Consolidated EBITDA shall be based on (i) forecasted income to be derived from binding, non-contingent contracts less appropriate direct and indirect costs to realize such income and (ii)  income from FERC required walk-up volume capped at 10,000 bpd ((X) in the case of the immediately preceding clause (i), net of any actual Consolidated EBITDA realized from the Grand Mesa Project, and (Y) subject to the limitation that the sum of the immediately preceding clauses (i) and (ii) shall not exceed $140,000,000 for any four quarters ending on or prior to the date of determination) multiplied by the applicable GMP Completion Percentage as of the end of such period; provided, further, that to the extent the Grand Mesa Project is not complete as of December 31, 2016, the contribution of the Grand Mesa Project to Consolidated EBITDA will be reduced by 25% per quarter for each quarter commencing with the fiscal quarter ending December 31, 2016.

 

“Consolidated Interest Expense” means, for any period, for the Note Parties on a consolidated basis, an amount equal to, without duplication, (a) all interest, premium payments, debt discount, fees, charges and related expenses of the Note Parties in connection with borrowed money (including capitalized interest and letter of credit fees) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP (but excluding amortized non-cash financing costs), plus (b) the portion of rent expense

 

B-6

 

of the Note Parties with respect to such period attributable to interest under Capital Lease Obligations and Synthetic Leases whether or not treated as interest in accordance with GAAP, plus (c) the net amount payable under interest rate Hedging Agreements accrued during such period (whether or not actually paid during such period) minus (d) the net amount receivable under interest rate Hedging Agreements accrued during such period (whether or not actually received during such period).  “Consolidated Interest Expense” shall be calculated for each period, on a pro forma basis, after giving effect to, without duplication, any incurrence or repayment of Indebtedness, any Permitted Acquisition and any Disposition occurring during each period, as the case may be, and as if such incurrence, acquisition or disposition (as applicable) occurred or was completed on the first day of such period.

 

“Consolidated Net Income” means, for any period, for the Note Parties, the net income (or loss) of the Note Parties for that period determined on a consolidated basis without duplication in accordance with GAAP.

 

“Consolidated Total Assets” means, as of the date of any determination thereof, total assets of the Company and its Subsidiaries calculated on a consolidated basis in accordance with GAAP consistently applied as of such date.

 

“Contingent Obligation” means, as to any Person (the “guarantor”), any obligation of such guarantor guaranteeing the payment or performance of any Indebtedness, leases, dividends or other obligations (collectively “primary obligations”) of any other Person (the “primary obligor”), whether directly or indirectly, including any obligation of such guarantor (a) to purchase any such primary obligation or other property constituting direct or indirect security therefor, (b) assume or contingently agree to become or be secondarily liable in respect of any such primary obligation, (c) to advance or supply funds (i) for the purchase or payment of any such primary obligation or (ii) to maintain working capital or equity capital for the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (d) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation, or (e) otherwise to assure or hold harmless the owner of such primary obligation against loss in respect thereof; provided, however, that the term “Contingent Obligation” shall not include endorsements of checks or other negotiable instruments in the ordinary course of business.

 

“Continuing Member” means (a) individuals who, on the date hereof, constituted the board of managers or other equivalent governing body of the General Partner and (b) any new members of the board of managers or other equivalent governing body of the General Partner whose election or nomination for election by the holders of the Equity Interests of the General Partner was approved by at least a majority of the members then still in office (or a duly constituted committee thereof) either who were members on the date hereof or whose election or nomination for election was previously so approved.

 

“Control Agreements” collectively means the deposit account, securities account, commodity account or blocked account control agreements, in form and substance satisfactory to the Collateral Agent, to be executed and delivered by and among the Collateral Agent, the Note Parties required by the Collateral Agent and the applicable financial institutions described in

 

B-7

 

Schedule 4.7(h), together with all modifications and/or replacements thereof which are approved in writing by the Collateral Agent, for purposes of evidencing control by the Collateral Agent in one or more deposit accounts or securities accounts maintained by the applicable Note Parties with any such specified financial institution, in the case of the Collateral Agent, for purposes of perfection of the Collateral Agent’s Lien in such accounts.

 

“Controlled Account” means a deposit account or a securities account of any Note Party that, in each case, is subject to a Control Agreement.

 

“Controlled Entity” means any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled Affiliates. As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Copyrights” has the meaning specified for such term in the definition of “Intellectual Property.”

 

“Credit Agreement” means the Amended and Restated Credit Agreement dated as of February 14, 2017, by and among the Company, the Subsidiaries of the Company party thereto, the Lenders, the Issuing Banks, the Administrative Agent, the Collateral Agent, the Technical Agent and the other parties thereto, as such agreement may be modified, amended, restated, supplemented, joined or restated in accordance with its terms, or as replaced in its entirety as the primary bank credit facility of the Note Parties by a single credit agreement or similar agreement.

 

“Credit Agreement Obligations” means the “Obligations” as defined in the Credit Agreement.

 

“Crude Oil” means liquid petroleum regardless of gravity, produced at the well by ordinary production methods and which are not the result of condensation of gas before or after it leaves the reservoir.

 

“Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.

 

“Default Rate” means that rate of interest per annum that is the greater of (i) 2.00% over the rate of interest that would otherwise be in effect for the Notes or (ii) 2.00% over the rate of interest publicly announced by JPMorgan Chase Bank, N.A. in New York, New York as its “base” or “prime” rate.

 

“Disclosure Documents” is defined in Section 5.3.

 

“Disposition” means the sale, transfer, lease or other disposition (including pursuant to a merger resulting in the subject Property no longer being owned by a Note Party) of any Property.

 

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

 

B-8

 

“Domestic Subsidiary” means any Subsidiary of the Company that is organized and domiciled in the United States of America.

 

“DRE” has the meaning assigned to such term in the definition of “Excluded Subsidiary”.

 

“ECP Collateral Shortfall” has the meaning specified for such term in the Credit Agreement as in effect on February 14, 2017.

 

“Environmental Claim” means any third party (including any Governmental Authority) action, lawsuit, claim or proceeding (including claims or proceedings at common law) which seeks to impose or alleges any liability for (a) pollution or contamination by, or releases or threatened releases of, Hazardous Substances into the air, surface water, ground water or land or the clean-up, abatement, removal, remediation or monitoring of such pollution, contamination or Hazardous Substances; (b) generation, recycling, reclamation, handling, treatment, storage, disposal or transportation of Hazardous Substances; (c) exposure to Hazardous Substances; or (d) the safety or health of employees.  An “Environmental Claim” includes a proceeding to issue, modify or terminate an Environmental Permit to the extent that such a proceeding attempts to redress violations of the applicable permit, license, or regulation as alleged by any Governmental Authority.

 

“Environmental Law” means all applicable requirements imposed by any law (including the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation, and Liability Act, the Clean Water Act, the Clean Air Act, and any state analogues of any of the foregoing), rule, regulation, or order of any Governmental Authority now or hereafter in effect that relate to (a) pollution, protection or clean-up of the air, surface water, ground water or land; (b) Hazardous Substance generation, recycling, reclamation, release, threatened release, handling, treatment, storage, disposal or transportation; (c) exposure of Persons or property to Hazardous Substances; or (d) occupational health and safety.

 

“Environmental Liabilities” means all liabilities, contingent or otherwise, arising from any Environmental Claim, Environmental Permit or Environmental Law, at law or in equity, and whether based on negligence, strict liability or otherwise, including:  remedial, removal, response, abatement, restoration (including natural resources), investigative, or monitoring liabilities, personal injury and damage to property or natural resources, and any other related costs, expenses, losses, damages, penalties, fines, liabilities, indemnities and obligations, including attorney’s fees and court costs.

 

“Environmental Permit” means any permit, license, approval or other authorization required under any Environmental Law.

 

“Equity Interests” means as to a Business Entity, all capital stock, partnership interests, membership interests, beneficial interests in a trust or other indicia of equity rights issued by a Business Entity from time to time, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest.

 

B-9

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and all rules, regulations rulings and interpretations adopted by the IRS or the Department of Labor thereunder.

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) which, together with any Note Party or any Subsidiary of any Note Party, is treated as a single employer under section 414(b) or (c) of the Code or, solely with respect to section 412 or 430 of the Code, section 414(m) or (o) of the Code.

 

“Event of Default” is defined in Section 11.

 

“Excluded Deposit Account” means any deposit account with a balance of less than $5,000,000; provided that the aggregate amount on deposit in all Excluded Deposit Accounts shall not, at any time, exceed 5.0% of Partners’ Capital.

 

“Excluded Real Property Asset” means any (a) Leasehold Property and (b) any other Real Property Asset with a book value of less than $5,000,000 (in each case of clauses (a) and (b), other than each Real Property Asset that the Note Parties have elected to designate as a Mortgaged Property); provided that the aggregate value of all Real Property Assets (including Leasehold Property) that qualifies as Excluded Real Property Assets shall not, at any time, exceed 5.0% of Partners’ Capital.

 

“Excluded Subsidiary” means any (a) Subsidiary that is not a Domestic Subsidiary and is not disregarded as an entity separate from its owner within the meaning of Treas. Reg. § 301.7701-1 (a “DRE”) and (b) any foreign Subsidiary that is treated as a DRE and owns (directly or indirectly through one or more DREs) a Subsidiary that is (i) not a Domestic Subsidiary and (ii) not a DRE.

 

“Exempted Joint Venture” means, at any time, any Business Entity that is not a Note Party (i) whose Equity Interests are directly held legally or beneficially by a Note Party (or group of Note Parties) in an amount not to exceed 75% of the outstanding Equity Interests of such Business Entity, determined as of the date the Company designated such Business Entity to be an “Exempted Joint Venture” consistent with (iii) below, (ii) all of whose Equity Interests held by any Note Party are subject to a first priority perfected security interest for the benefit of the Secured Parties pursuant to the Security Agreement (except that such Equity Interests shall not be deemed “Excluded Assets” as defined in the Security Agreement), (iii) that has been designated, in writing, by the Company to the holders of the Notes to be an “Exempted Joint Venture”, and (iv) that is engaged in a business consistent with Section 10.3 of this Agreement.  The Exempted Joint Ventures as of the date hereof are listed on Schedule 9.15.

 

“Existing Note Agreement” is defined in Section 1.

 

“Fair Market Value” means the price that would be agreed to by a willing buyer and a willing seller, where neither the buyer nor the seller is under any compulsion to buy or sell, as the fair market value of the Property in an orderly Disposition thereof; provided, that if the Company and the Required Holders cannot agree on the Fair Market Value with respect to a specific Property or Properties, the Fair Market Value shall be determined, at the cost and

 

B-10

 

expense of the Company, by an independent appraiser selected by the Required Holders, who is of national standing with experience valuing comparable properties.

 

“Financial Officer” means, with respect to any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person.

 

“First Purchaser Lien” means a Lien as defined in Texas Bus. & Com. Code Section 9.343, or comparable laws of the states of Oklahoma, Kansas, Mississippi, Wyoming, or New Mexico, or any other state.

 

“Fitch” means Fitch Ratings.

 

“Flood Determination Form” is defined in Section 9.17.

 

“Flood Hazard Property” means a Mortgaged Property the improvements on which are located in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards and requiring either a Note Party or the Collateral Agent to purchase special flood insurance.

 

“Flood Laws”  means, collectively, the Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994.

 

“GAAP” means, as to a particular Person, those principles and practices that (a) are recognized as such by the Financial Accounting Standards Board or successor organization, and (b) are consistently applied (or with respect to which any change in principles and practice mandated by the Financial Accounting Standards Board or successor organization are disclosed in writing to the holders of Notes) for all periods after the date of this Agreement in a manner consistent with the manner in which such principles and practices were applied to the most recent audited financial statements of the relevant Person furnished to the holders of Notes prior to the Restatement Effective Date (or with respect to which any change in principles and practice mandated by the Financial Accounting Standards Board or successor organization are disclosed in writing to the holders of Notes, subject to the provisions of Section 22.3).

 

“General Partner” means NGL Energy Holdings LLC, a Delaware limited liability company.

 

“GMP Completion Percentage” with respect to the determination of Consolidated EBITDA for any period, the percentage of completion for the Grand Mesa Project determined as the quotient (expressed as a percentage) of the costs incurred by the Note Parties as of the end of the applicable period over the estimated total project cost of the Grand Mesa Project at such time.

 

“Governmental Authority” means the United States of America, any state of the United States, and any political subdivision of any of the foregoing, any other nation or government, or any state, provincial or other subdivision thereof, or supranational authority, and any agency, instrumentality, department, commission, board, bureau, central bank, authority, court or other tribunal, in each case whether executive, legislative, judicial, regulatory or administrative.

 

B-11

 

“Grand Mesa Project” means that certain crude oil pipeline beginning in Weld County, Colorado and terminating in Cushing, Oklahoma.

 

“Guarantors” means each Subsidiary of the Company listed on Schedule 4.7(b), each other Subsidiary of the Company added as a guarantor pursuant to Section 9.15 and each other  Subsidiary that the Company shall elect to add as a guarantor in its discretion; provided, in each case, that such Person is a party to the Guaranty Agreement.  “Guarantor” means any one of such Guarantors.

 

“Guaranty Agreement” means the Amended and Restated Guaranty Agreement dated as of the date hereof, in substantially the form of Exhibit B-2, executed by each Guarantor in favor of the holders of Notes, as the same may be amended, restated, supplemented or otherwise modified from time to time (including, without limitation, by any supplement thereto executed and delivered after the date hereof pursuant to Section 9.15 in order to effect the joinder of any additional Guarantor).

 

“Hazardous Substance” means any hazardous or toxic waste, substance or material defined as or regulated as “hazardous” or “toxic” or a “pollutant” by any Environmental Law, including dangerous waste (as defined under the Resource Conservation and Recovery Act or its regulations, as amended from time to time), any carcinogenic, mutagenic or infectious wastes or substances, petroleum and any constituent thereof, and any radioactive materials and waste; provided, however, the words “Hazardous Substance” shall not mean or include any such Hazardous Substance that may be naturally occurring in any ambient air, surface water, ground water, land surface or subsurface strata.

 

“Hedging Agreement” means an agreement relating to any swap, cap, floor, collar, option, forward, futures contract, cross right or obligation, or combination thereof or similar transaction, with respect to interest rate, foreign exchange, currency, commodity (including any of the commodities described in the definition of “Product”), commodity supply, credit or equity risk.

 

“Hedging Obligations” means, with respect to any Person, any and all obligations of such Person, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under any Hedging Agreements and any and all cancellations, buy backs, reversals, terminations or assignments of any of the foregoing.

 

“holder” means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company pursuant to Section 13.1, provided, however, that if such Person is a nominee, then for the purposes of Sections 7, 12, 17.2 and 18 and any related definitions in this Schedule B, “holder” shall mean the beneficial owner of such Note whose name and address appears in such register.

 

“Immaterial Subsidiary” means any Subsidiary (other than an Excluded Subsidiary) of any Note Party designated as such by the Company; provided, that, (i) the total assets of all Immaterial Subsidiaries, determined in accordance with GAAP as of the date of the most recent financial statements delivered pursuant to Section 7.1, shall not exceed five percent (5%) of the

 

B-12

 

Consolidated Total Assets of the Company and its Subsidiaries as of such date and (ii) the Consolidated EBITDA of all Immaterial Subsidiaries, calculated on a pro forma basis as if all such Immaterial Subsidiaries were Note Parties for the purpose of such calculation, shall not exceed, as of any date of determination, 5% of the Consolidated EBITDA of all Note Parties.  The Immaterial Subsidiaries as of the date hereof are identified on Schedule 5.4.

 

“Indebtedness” means, as to any Person, without duplication:  (a) all indebtedness of such Person for borrowed money; (b) any other indebtedness which is evidenced by a bond, note debenture or similar instrument or upon which interest charges are traditionally paid; (c) all Capital Lease Obligations of such Person; (d) all obligations of such Person for the deferred purchase price of Property or services (except current trade accounts payable arising in the ordinary course of business and payable in accordance with customary trade practices); (e) all reimbursement obligations, contingent or otherwise, of such Person in respect of outstanding letters of credit, acceptances and similar obligations created for the account of such Person; (f) all indebtedness, liabilities, and obligations secured by any Lien on any Property owned by such Person even though such Person has not assumed or has not otherwise become liable for the payment of any such indebtedness, liabilities or obligations secured by such Lien; (g) net liabilities of such Person in respect of Hedging Obligations; (h) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person; (i) all obligations of such Person to pay the principal portion under any Synthetic Lease (calculated as the net present value of the rental payments thereunder with the implicit rate of interest of such Synthetic Lease as the discount factor); (j) all Indebtedness of another entity to the extent such Person is liable therefor (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor; (k) all Contingent Obligations of such Person with respect to Indebtedness of others; and (l) all mandatory obligations of such Person to purchase, redeem, retire or defease any Equity Interests in such Person or any other Person prior to June 20, 2022, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends.

 

“INHAM Exemption” is defined in Section 6.2(e).

 

“Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note holding (together with one or more of its affiliates) more than 5% of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any Note.

 

“Intellectual Property” means all U.S. and foreign (a) patents, patent applications, patent disclosures, and all related continuations, continuations-in-part, divisionals, reissues, re-examinations, substitutions, and extensions thereof (“Patents”), (b) trademarks, service marks, trade names, domain names, logos, slogans, trade dress, and other similar designations of source or origin, together with the goodwill symbolized by any of the foregoing (“Trademarks”), (c) copyrights and copyrightable subject matter (“Copyrights”), (d) rights of publicity, (e) moral rights and rights of attribution and integrity, (f) computer programs (whether in source code,

 

B-13

 

object code, or other form), databases, compilations and data, technology supporting the foregoing, and all documentation, including user manuals and training materials, related to any of the foregoing, (g) trade secrets and all confidential information, know-how, inventions, proprietary processes, formulae, models, and methodologies, (h) all rights in the foregoing and in other similar intangible assets, (i) all applications and registrations for the foregoing, and (j) all rights and remedies against infringement, misappropriation, or other violation thereof.

 

“Intellectual Property Security Agreement” shall have the meaning attributed to such term in Section 5.20.

 

“Intercreditor Agreement” means the Amended and Restated Collateral Agency and Intercreditor Agreement dated as of February 14, 2017, in substantially the form of Exhibit B-3, among the Collateral Agent, the Administrative Agent, the Technical Agent, the Purchasers, the Issuing Banks, the Lenders and the Note Parties, as it may be amended, restated, supplemented or otherwise modified from time to time in accordance with its terms.

 

“Interest Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated EBITDA for the period of four fiscal quarters ending on such date to (b) Consolidated Interest Expense for such period.

 

“Interest Payment Date” is defined in Section 8.9(a).

 

“Inventory” means all inventory (as such term is used in the UCC), goods and merchandise now owned and hereafter acquired by any Note Party, wherever located, to be furnished under any contract of service or held for sale or lease, all returned goods, raw materials, other materials and supplies of any kind, nature or description which are or will be used or consumed in the business of any Note Party or used in connection with the packing, shipping, advertising, selling or finishing of such goods, merchandise and such other personal property, and all documents of title or other documents representing any of them.

 

“Investment” means the purchase or other acquisition of any securities or Indebtedness of, or the making of any loan, advance, extension of credit or capital contribution to (or the transfer of Property having the effect of any of the foregoing), or the incurring of any Contingent Obligation in respect of the Indebtedness of, any Person (in each case other than accounts receivable arising in the ordinary course of business).  The amount of any Investment shall be determined as the initial cost of such investment and all additional costs of such Investment less the aggregate amount of all repayments of principal and returns of capital on such Investment; provided, that the amount of any Investment shall not be less than zero.

 

“Investment Grade Rating” means, with respect to any Person, the long term senior unsecured noncredit enhanced credit rating of which is BBB- or higher by S&P, if rated by S&P, Baa3 or higher by Moody’s, if rated by Moody’s, or BBB- or higher by Fitch, if rated by Fitch.

 

“IRS” means the United States Internal Revenue Service.

 

“Issuing Bank” means each Lender designated as an issuer of letters of credit under the Credit Agreement, in its capacity as an issuer of letters of credit thereunder.

 

B-14

 

“Joinder Agreement” means an agreement in substantially the form of Exhibit B-4 and otherwise in form and substance satisfactory to the Required Holders, executed by a Subsidiary of a Note Party in accordance with Section 9.15, pursuant to which such Subsidiary joins in the execution and delivery of any Security Document.

 

“Krimbill Parties” means Michael Krimbill, KrimGP2010, LLC, Krim2010, LLC and any trusts or family partnerships of Michael Krimbill and his family members established for estate planning purposes; provided, that KrimGP2010, LLC, Krim2010, LLC and such trusts or family partnerships are directly or indirectly controlled by Michael Krimbill.

 

“Leasehold Property” means any leasehold interest of any Note Party as lessee under any lease of a Real Property Asset.

 

“Legal Requirement” means any law, statute, ordinance, decree, requirement, order, judgment, rule, regulation (or interpretation of any of the foregoing) of, and the terms of any license or permit issued by, any Governmental Authority.

 

“Lender” means each lender party to the Credit Agreement on February 14, 2017, and each Eligible Assignee (as defined in the Credit Agreement) that shall become a party to the Credit Agreement pursuant to the terms thereof, in each case so long as such Person is a “Lender” under the Credit Agreement.

 

“Leverage Ratio” means, as of any date of determination, the ratio of (a) Total Indebtedness as of such date to (b) Consolidated EBITDA for the period of the four fiscal quarters most recently ended.

 

“Lien” means, with respect to any asset of any Person, (a) any mortgage, pledge, charge, encumbrance, security interest, collateral assignment or other lien or restriction of any kind on such asset, whether based on common law, constitutional provision, statute or contract, (b) the interest of any vendor or a lessor under any conditional sale agreement, title retention agreement or capital lease relating to such asset, (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities, or (d) any other right of or arrangement with any creditor to have such creditor’s claim satisfied out of such assets, or the proceeds therefrom, prior to the general creditors of such Person owning such assets.

 

“Major Permitted Business Expansion Project” means a Permitted Business Expansion Project with respect to which one or more Note Parties have made Capital Expenditures in excess of $5,000,000.

 

“Make-Whole Amount” is defined in Section 8.8.

 

“Material” means material in relation to the business, assets (including the Collateral), operations or financial condition of the Company and its Subsidiaries taken as a whole.

 

“Material Adverse Effect” means (a) a material adverse change in or a material adverse effect on the business, assets (including the Collateral), operations or financial condition of the Note Parties (taken as a whole), (b) a material impairment of the ability of the Company or the Guarantors (taken as a whole) to perform any of their respective obligations under this

 

B-15

 

Agreement, the Notes or any other Note Document, or (c) the legality, validity, binding effect or enforceability of this Agreement, the Notes or any other Note Document, or (d) a material impairment of the rights of, remedies of or benefits available to the Secured Parties under this Agreement, the Notes or any other Note Document.

 

“Material Disposition” means any Disposition of Property or series of related Dispositions of Property that either has a fair market value, or yields gross proceeds to the Note Parties in excess of $5,000,000.

 

“MFL Agreement” is defined in Section 10.20.

 

“Moody’s” means Moody’s Investors Service, Inc. or any successor thereto.

 

“Mortgage” means (a) a security instrument (whether designated as a deed of trust, a deed to secure debt, a mortgage, a leasehold mortgage, a leasehold deed of trust, a leasehold deed to secure debt, an assignment of leases and rents or by any similar title) executed and delivered by any Note Party in substantially the form of Exhibit B-5 annexed hereto, or in such other form as may be approved by the Collateral Agent, in each case with such changes thereto as may be recommended by the Collateral Agent’s local counsel based on local laws or customary local practices, and (b) at the Collateral Agent’s option, an amendment to an existing Mortgage, in form satisfactory to the Collateral Agent, adding any Real Property Assets to the Mortgaged Property encumbered by such existing Mortgage, in either case as such security instrument or amendment may be amended, supplemented or otherwise modified from time to time.  “Mortgages” means all such instruments.

 

“Mortgage Policy” is defined in Section 9.17(a)(vii).

 

“Mortgaged Property” has the meaning specified for such term in Section 9.17(a).

 

“Multiemployer Plan” means a plan as defined in section 3(37) or section 4001(a)(3) of ERISA.

 

“NAIC” means the National Association of Insurance Commissioners or any successor thereto.

 

“Natural Gas” means natural gas and Natural Gas Liquids (including propane).

 

“Natural Gas Liquids” means liquid hydrocarbons, including as ethane, propane, butane, and pentane, that in each case, are extracted from field gas.

 

“Net Open Position” with respect to either Crude Oil, Natural Gas Liquids, Refined Petroleum Products and Renewable Products, as applicable, the number of barrels of such Product obtained by subtracting (a) the sum of (i) the number of barrels of such Product which the Note Parties have committed to buy, or can be required to buy, or will receive under a commodity contract, on a future date at a fixed price; and (ii) the number of barrels of such Product that the Note Parties have in Inventory from (b) the number of barrels of such Product that the Note Parties have committed to sell, or can be required to sell, or will deliver under a commodity contract, on a future date at a fixed price.

 

B-16

 

“Net Proceeds” means, with respect to any event, (a) the cash proceeds received in respect of such event including (i) any cash received in respect of any non-cash proceeds (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise, but excluding any interest payments), but only as and when received, (ii) in the case of a casualty, insurance proceeds and (iii) in the case of a condemnation or similar event, condemnation awards and similar payments, net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third parties (other than Affiliates) in connection with such event, (ii) in the case of a sale, transfer or other disposition of an asset (including pursuant to a sale and leaseback transaction or a casualty or a condemnation or similar proceeding), the amount of all payments required to be made as a result of such event to repay Indebtedness (other than the Credit Agreement Obligations and the Note Obligations) secured by such asset or otherwise subject to mandatory prepayment as a result of such event and (iii) the amount of all taxes paid (or reasonably estimated to be payable) and the amount of any reserves established to fund contingent liabilities reasonably estimated to be payable, in each case during the year that such event occurred or the next succeeding year and that are directly attributable to such event (as determined reasonably and in good faith by a Financial Officer of the Company).

 

“NFIP” is defined in Section 9.17(a)(iii).

 

“Note Documents” means this Agreement, the Notes, the Guaranty Agreement, the Security Documents, the Intercreditor Agreement, the Perfection Certificate and all other instruments, certificates and other documents now or hereafter executed and delivered by or on behalf of a Note Party pursuant to or in connection with any of the foregoing or any of the transactions contemplated hereby, and any and all amendments, supplements and other modifications to any of the foregoing.

 

“Note Obligations” means all of the monetary obligations owed by the Company or any Guarantor to any holder of Notes under the Note Agreement, the Notes, the Guaranty Agreement, the Security Documents or any other Note Document, and related agreements, documents, and instruments, including, without limitation (but for certainty without duplication), (a) the outstanding principal amount of, accrued and unpaid interest on, and any unpaid Make-Whole Amount due with respect to, the Notes, and (b) any other unpaid amounts (including amounts in respect of fees, expenses, indemnification and reimbursement) due from the Company or any Guarantor under any of the Note Agreement, the Notes, the Guaranty Agreement, the Security Documents or any other Note Document.

 

“Note Parties” means the Company and the Guarantors.  “Note Party” means any one of such Note Parties.

 

“Notes” is defined in Section 1.

 

“OFAC” is defined in Section 5.16(a).

 

“OFAC Listed Person” is defined in Section 5.16(a).

 

B-17

 

“OFAC Sanctions Program” means any economic or trade sanction that OFAC is responsible for administering and enforcing.  A list of OFAC Sanctions Programs may be found at http://www.ustreas.gov/offices/enforcement/ofac/programs/.

 

“Officer’s Certificate” means a certificate of a Financial Officer or of any other officer of the applicable Note Party whose responsibilities extend to the subject matter of such certificate.

 

“Organizational Documents” means, with respect to a corporation, the certificate of incorporation, articles of incorporation and bylaws of such corporation; with respect to a limited partnership, the limited partnership agreement and certificate of limited partnership of such limited partnership; with respect to a joint venture, the joint venture agreement establishing such joint venture; with respect to a limited liability company, the articles of organization or certificate of formation and regulations or limited liability company agreement of such limited liability company; and with respect to a trust, the instrument establishing such trust; in each case including any and all modifications thereof as of the date of the Note Document referring to such Organizational Document and any and all future modifications thereof.

 

“Original Closing” is defined in Section 3.

 

“Original Closing Date” is defined in Section 3.

 

“Partners’ Capital” means, as of the date of determination, the aggregate value of the capital accounts of the partners of the Company as shown on the Company’s consolidated balance sheet contained in the most recent financial statements delivered pursuant to Section 7.1.

 

“Patents” shall have the meaning specified for such term in the definition of “Intellectual Property.”

 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.

 

“Perfection Certificate” means a certificate dated as of the Original Closing Date, duly executed by the Note Parties and in form and substance satisfactory to each Purchaser, describing the Note Parties’ Properties owned or leased as of the Original Closing Date, and certifying to the other matters contained therein.

 

“Permitted Acquisition” means the acquisition by the Note Parties, in one or a series of related transactions, of all or substantially all of the assets of one or more Persons, or all of the Equity Interests of any Person, or assets constituting a separate line of business, division or operating location, or any other acquisition of assets classified as a “business combination” in accordance with GAAP, in each case by purchase, merger or otherwise; provided, that such transaction or series of related transactions is not otherwise prohibited by this Agreement and each of the following conditions are met:

 

(a)                                 the Note Parties comply with the requirements of Sections 9.15, 9.16 and 9.17 of this Agreement in connection with such Permitted Acquisition;

 

B-18

 

(b)           the assets acquired or the assets of the Person so acquired are free and clear of all Liens other than Liens permitted under Section 10.5;

 

(c)           any such Person acquired is organized in the United States or Canada;

 

(d)           the acquired assets, or the assets of the Person so acquired, are located in the United States or Canada and substantially all of such assets are energy-related and master limited partnership-qualified after giving effect to such Permitted Acquisition;

 

(e)           except for financing the portion of the purchase price attributable to acquired working capital assets, no Working Capital Revolving Loans are used to finance such acquisition or any costs, fees, expenses or other amounts related to such transaction or series of related transactions;

 

(f)            the holders of Notes shall have received at least five (5) Business Days (or such lesser period as is acceptable to Required Holders) prior to the applicable Acquisition Determination Date, (A) a certificate executed by a Responsible Officer of the Note Parties setting forth calculations demonstrating that immediately after giving effect to such Permitted Acquisition, the Note Parties are in pro forma compliance with the financial covenants set forth in Section 10.6, and (B) if an adjustment is being made to Consolidated EBITDA in connection with such acquisition, a copy of the acquisition model prepared by the Company; provided, however, the Company will additionally deliver (i) to the extent available, annual financial statements (including audited financial statements) for the business to be acquired prepared by the seller for the three year period prior to the Acquisition Determination Date, and (ii) to the extent available, financial statements for the most recent interim period prior to the Acquisition Determination Date;

 

(g)           no Note Party shall, in connection with any such transaction or series of related transactions, assume or remain liable with respect to any Indebtedness of the applicable sellers or the business, Person or assets acquired except to the extent permitted under Section 10.7;

 

(h)           all transactions in connection therewith shall be consummated in all material respects in accordance with all applicable laws of all applicable Governmental Authorities;

 

(i)            the holders of Notes shall have received such further due diligence information as any such holder may reasonably request;

 

(j)            no Default or Event of Default then exists or would result therefrom; and

 

(k)           the acquisition is consensual and has been approved by the board of directors or other governing body of the Person so acquired.

 

“Permitted Affiliate Transactions” means any of the following:  (a) transactions between Note Parties; (b) customary directors’ fees, customary directors’ indemnifications and similar arrangements for officers and directors of the Note Parties entered into in the ordinary course of business, together with any payments made under any such indemnification

 

B-19

 

arrangements; (c) customary and reasonable loans, advances and reimbursements to officers, directors and employees of the Note Parties for travel, entertainment, moving and other relocation expenses, in each case made in the ordinary course of business; (d) the incurrence of intercompany Indebtedness permitted pursuant to Section 10.7(d) and Contingent Obligations permitted pursuant to Section 10.7(e), (e) employment agreements and arrangements entered into with directors, officers and employees of the Note Parties in the ordinary course of business; (f) Cash Dividends permitted by Section 10.12(b); (g) other transactions, contracts or agreements existing on the date of the Restatement Effective Date and which are set forth on Schedule 10.1, together with any renewals and extensions of such existing transactions, contracts or agreements, so long as such renewals and extensions are upon terms and conditions substantially identical to the terms and conditions set forth in such existing transactions, contracts and agreements (or otherwise no less favorable to the Note Parties, as applicable); and (h) other transactions between a Note Party and any Person that is a seller in any Permitted Acquisition or an Affiliate of such a Person entered into prior to 

(or in conjunction with the closing of) and as part of such Permitted Acquisition and such Person becomes a director, officer or employee of a Note Party as a result of such Permitted Acquisition.

 

“Permitted Business Expansion Project” means an expansion of the Note Parties’ business through the construction of fixed or capital assets provided each of the following conditions are met:

 

(a)           the assets of such expansion are acquired and owned by such Note Party free and clear of all Liens other than Liens permitted under Section 10.5 and (ii) pledged as Collateral pursuant to the terms of the Note Documents, and the Collateral Agent is granted a first priority, perfected Lien therein (subject, as to priority, only to Liens permitted under Section 10.5(d), (e) and (f));

 

(b)           substantially all of the acquired assets are master limited partnership-qualified energy-related assets after giving effect to such Permitted Business Expansion Project;

 

(c)           no Working Capital Revolving Loans are used to finance such expansion or any costs, fees, expenses or other amounts relating thereto;

 

(d)           the holders of Notes shall have received at least five Business Days (or such lesser amount as is acceptable to the Required Holders) prior notice of the proposed expansion, which notice shall include the following in connection with any project that involves a capital investment of $5,000,000 or more: (i) a description of the project and a summary financial analysis supporting the decision to undertake an expansion of the Note Parties’ business through construction of fixed or capital assets, and (ii) a certificate executed by a Responsible Officer of the Company setting forth calculations demonstrating (A) that immediately after giving effect to such Permitted Business Expansion Project, the Note Parties are in pro forma compliance with the financial covenants set forth in Section 10.6, and (B) the EBITDA attributable to the contracts to be acquired in connection with such project;

 

B-20

 

(e)           no Note Party, in connection with any such expansion, incurs or assumes any Indebtedness except to the extent permitted under Section 10.7(l);

 

(f)            all transactions in connection therewith shall be consummated in accordance with all applicable laws in all material respects of all applicable Governmental Authorities; and

 

(g)           no Default or Event of Default then exists or would result therefrom.

 

“Permitted Disposition” means a Disposition permitted by Section 10.2.

 

“Permitted Holder” means Michael Krimbill and each Krimbill Party, so long as such Krimbill Party is controlled, directly or indirectly, by Michael Krimbill.

 

“Permitted Indebtedness” means Indebtedness permitted by Section 10.7.

 

“Permitted Non-Compete Agreement” means an agreement entered into in connection with a Permitted Acquisition between one or more Note Parties and the relevant sellers and other related parties pursuant to which such Note Party agrees to pay a portion of the Acquisition Consideration for a Permitted Acquisition over time in exchange for non-compete, non-solicitation, confidentiality or other undertakings from such sellers and other related parties as part of such Permitted Acquisition; provided that such non-compete, non-solicitation, confidentiality or other undertakings shall be in form and substance satisfactory to the Collateral Agent in any case where the seller thereunder is granted a Lien over any asset of any Note Party.

 

“Permitted Non-Compete Indebtedness” shall mean Indebtedness consisting of deferred purchase price, seller notes, and other obligations owing to the sellers or related parties in connection with a Permitted Acquisition; provided, that (a) any such Indebtedness incurred in connection with any Permitted Acquisition shall not exceed 25% of the total Acquisition Consideration therefor, and (b) no such Indebtedness shall be payable over a period exceeding 10 years from the date of the initial closing date of such Permitted Acquisition.

 

“Permitted Non-Compete Liens” shall mean any Lien in favor of a seller or related party securing Permitted Non-Compete Indebtedness owing to such seller and/or related party in connection with a Permitted Acquisition; provided, that (a) such Lien may only attach to real Property and bulk storage tanks acquired from such seller or a related party in the Permitted Acquisition in connection with which such Permitted Non-Compete Indebtedness was incurred and no other Property, (b) the aggregate Fair Market Value of all real Property and bulk storage tanks subject to such Liens shall not, at any time, exceed 2.5% of Partners’ Capital, (c) the documentation relating to such Liens shall be in form and substance reasonably acceptable to the Required Holders, and (d) such real Property and bulk storage tanks shall be subject to second priority Liens (junior only to such Permitted Non-Compete Liens and to Liens permitted by Sections 10.5(d), (e) and (f)) and Mortgages in favor of the Collateral Agent.

 

“Permitted Term Indebtedness” is defined in Section 10.7(m).

 

“Permitted Term Indebtedness Agreement” means any indenture, note purchase agreement, credit agreement or other similar agreement by and among any Note Party, as issuer

 

B-21

 

or borrower, and any trustee, agent, note purchaser or lender pursuant to which any Permitted Term Indebtedness is issued or incurred in accordance with Section 10.7(m), as the same may be amended, restated, supplemented or otherwise modified from time to time to the extent permitted under this Agreement.

 

“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority.

 

“Plan” means any plan subject to Title IV of ERISA, other than a Multiemployer Plan, which is sponsored, maintained, or contributed to by any Note Party or any ERISA Affiliate of any Note Party or with respect to which any Note Party or any ERISA Affiliate of any Note Party is required to contribute or otherwise has any liability.

 

“PPSA” means the Personal Property Security Act (Alberta), as in effect from time to time.

 

“Product” has the meaning specified for such term in the Credit Agreement as in effect on February 14, 2017.

 

“Product Position Report” means a report in form and substance satisfactory to the Purchasers detailing inventory, derivative contracts on Product, including futures, and fixed price Product purchase and sale agreements.

 

“Prohibited Transaction” means any non-exempt transaction set forth in Section 406 of ERISA or section 4975 of the Code.

 

“Property” means any interest in any kind of property or asset, whether real, personal or mixed, tangible or intangible.

 

“Prudential” means PGIM, Inc. and its successors.

 

“PTE” is defined in Section 6.2(a).

 

“Purchaser” or “Purchasers” means each of the purchasers whose signatures appear at the end of the Existing Note Agreement and such Purchaser’s successors and assigns (so long as any such assignment complies with Section 13.2), provided, however, that any Purchaser of a Note that ceases to be the registered holder or a beneficial owner (through a nominee) of such Note as the result of a transfer thereof pursuant to Section 13.2 shall cease to be included within the meaning of “Purchaser” of such Note for the purposes of this Agreement upon such transfer.

 

“Qualified Bank Product” means a Bank Product that at the time of entry into such product, was entered between a Note Party and a Qualified Counterparty.

 

“Qualified Counterparty” means any counterparty to a Hedging Agreement or Bank Product entered into between any Note Party and a Person that, at the time such Hedging Agreement or Bank Product was entered into, is a Lender or an Affiliate of a Lender; provided that any such Person that is not a Lender at such time shall be a “Qualified Counterparty” with

 

B-22

 

respect to a Hedging Agreement or Bank Product solely to the extent such Person has delivered a duly executed Qualified Counterparty Joinder to the Technical Agent.

 

“Qualified Counterparty Joinder” means a joinder agreement executed and delivered by a counterparty to a Hedging Agreement in substantially the form of Exhibit O attached to the Credit Agreement.

 

“Qualified Hedging Agreement” means a Hedging Agreement that at the time of entry into the specific trade or execution of the applicable confirmation, was entered between a Note Party and a Qualified Counterparty, as determined by the Technical Agent in its discretion exercised in good faith.

 

“Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer” within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.

 

“Quarterly Unaudited Financial Statements” means the quarterly unaudited financial statements of the Company and its Subsidiaries, which statements shall include (a) a balance sheet as of the end of the respective fiscal quarter, (b) a statement of operations for such respective fiscal quarter and for the fiscal year to date setting forth in comparative form the corresponding figures for the corresponding period of the preceding fiscal year and (c) a statement of cash flows for the fiscal year to date setting forth in comparative form the corresponding figures in the corresponding period of the preceding fiscal year, all prepared in reasonable detail and in accordance with GAAP and certified by a Financial Officer of the Company as fairly and accurately presenting in all material respects the financial condition and results of operations of the Company and its Subsidiaries, on a consolidated basis, at the dates and for the periods indicated therein, subject to normal year-end adjustments.  The Quarterly Unaudited Financial Statements for the Note Parties shall be prepared on a consolidated basis and shall also include business line financial statements prepared in reasonable detail.

 

“Ratable Portion” shall mean, with respect to any prepayment of Notes pursuant to Section 8.4, a portion of all Net Proceeds of the applicable Disposition or incurrence of Indebtedness, as the case may be, referred to in such Section equal to the percentage equivalent of a fraction, (i) the numerator of which is the aggregate outstanding principal amount of the Notes immediately prior to such prepayment and (ii) the denominator of which is the sum of (a) the aggregate outstanding principal amount of the Notes at such time plus (b) the outstanding principal amount of loans outstanding under the Credit Agreement at such time.

 

“Real Property Asset” means, at any time of determination, any fee ownership or leasehold interest of any Note Party in or to any real Property.

 

“Receivables” means and include all of the accounts, instruments, documents, chattel paper and general intangibles of the Note Parties, whether secured or unsecured, whether now existing or hereafter created or arising, and whether or not specifically assigned to the Collateral Agent.

 

“Refinancing Indebtedness” means any Indebtedness of the Note Parties issued in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund, other Indebtedness of such Person, provided, that:

 

B-23

 

(a)           the principal amount of such Refinancing Indebtedness does not exceed the sum of (i) the then outstanding principal amount of the Indebtedness so extended, refinanced, renewed, replaced, defeased or refunded, and (ii) the reasonable and customary transactional costs and expenses incurred by the Note Parties in connection with incurring such Refinancing Indebtedness;

 

(b)           the interest rate or rates to accrue under such Refinancing Indebtedness reflect current market rates available to similarly situated borrowers in substantially similar financings to the Indebtedness so extended, refinanced, renewed, replaced, defeased or refunded;

 

(c)           the maturities, amortization schedules, covenants, defaults, remedies, subordination provisions, collateral security provisions (or absence thereof) and other terms of such Refinancing Indebtedness are in each case, as determined by the Required Holders in their reasonable discretion, substantially the same as, or more favorable to the applicable Note Party as those in the Indebtedness so extended, refinanced, renewed, replaced, defeased or refunded; and

 

(d)           no Default or Event of Default has occurred and is continuing or would result from the issuance or origination of such Refinancing Indebtedness.

 

“Refined Petroleum Products” means product from the refining of crude oil, including diesel fuel, gasoline, jet fuel and other heavier fuel oils but excluding Natural Gas Liquids.

 

“Related Fund” means, with respect to any holder of any Note, any fund or entity that (i) invests in Securities or bank loans, and (ii) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor.

 

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates.

 

“Renewable Products” means fuels produced from renewable resources, including biodiesel and ethanol.

 

“Reportable Event” means a “reportable event” as defined in Section 4043(c) of ERISA, excluding those for which the provision for 30-day notice to the PBGC has been waived by regulation.

 

“Required Holders” means at any time on or after the Restatement, the holders of at least 50.1% in principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its Affiliates).

 

“Reset Event” is defined in Section 8.9(b).

 

“Responsible Officer” means, with respect to any Person, the chief executive officer, chief operating officer, president, chief financial officer, treasurer, controller, or general counsel (if any) of such Person.

 

B-24

 

“Restatement” is defined in Section 3.

 

“Restatement Effective Date” is defined in Section 3.

 

“Risk Management Policy” means the policies, operating procedures and limits of the Company and its Subsidiaries designed to minimize the firm’s financial exposure to various risks as noted in the policies attached as Schedule 9.12 as approved by the board of directors (or other equivalent governing body) of the Company and as set forth on Schedule 9.12 as modified from time to time.

 

“S&P” means S&P Global Ratings Inc., a division of The McGraw-Hill Companies, Inc.  or any successor to the rating agency business thereof.

 

“SEC” means the Securities and Exchange Commission of the United States, or any successor thereto.

 

“Secured Credit Agreement Obligations” means the Credit Agreement Obligations; provided, that the Secured Credit Agreement Obligations shall exclude Credit Agreement Obligations arising from Qualified Hedging Agreements and Qualified Bank Products to the extent that the aggregate amount of such Credit Agreement Obligations arising from Qualified Hedging Agreements and Qualified Bank Products exceeds $300,000,000.

 

“Secured Obligations” has the meaning specified in the Intercreditor Agreement.

 

“Secured Party” means each holder of a Note, the Collateral Agent, the Administrative Agent, the Technical Agent, each Issuing Bank, each Lender, each Qualified Counterparty and in each case their respective successor and permitted assigns; provided that, in the case of a permitted assignee of a Qualified Counterparty, such assignee shall be acceptable to the Technical Agent and shall have executed a Qualified Counterparty Joinder.

 

“Security Agreement” means the Amended and Restated Pledge and Security Agreement dated as of February 14, 2017, in substantially the form of Exhibit B-6, among the Note Parties and the Collateral Agent, as the same may be amended, restated, supplemented or otherwise modified from time to time (including, without limitation, by any Joinder Agreement or by any other supplement thereto executed and delivered after February 14, 2017 pursuant to Section 9.15 in order to effect the joinder of any additional Guarantor).

 

“Security Documents” means the Security Agreement, all related financing statements and any and all other agreements, security agreements, pledge agreements, collateral assignments, Intellectual Property Security Agreements, Mortgages, chattel mortgages, Control Agreements, guaranties, assignments of income, standby agreements, subordination agreements, undertakings and other instruments and financing statements now or hereafter executed and delivered as security for the payment and performance of the Note Obligations and the Secured Credit Agreement Obligations, as any of them may from time to time be amended, modified, restated or supplemented.

 

“Securities” or “Security” shall have the meaning specified in section 2(a)(1) of the Securities Act.

 

B-25

 

“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

 

“Senior Secured Indebtedness” means, at any time, the Total Indebtedness that is not subordinated in right of payment to the Secured Obligations and which is secured by a Lien on any assets or property of any Note Party or any Subsidiary of any Note Party.

 

“Senior Secured Leverage Ratio” means, as of any date of determination, the ratio of (a) Senior Secured Indebtedness as of such date to (b) Consolidated EBITDA for the period of the four fiscal quarters most recently ended.

 

“Source” is defined in Section 6.2.

 

“Subsidiary” means, with respect to any Person (the “parent”) at any date, any Business Entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other Business Entity of which Equity Interests representing more than 50% of the Equity Interests or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held.  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company.

 

“Super-Majority Holders” means at any time the holders of at least 80% in principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its Affiliates).

 

“SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.

 

“Swingline Loans” shall have the meaning specified for such term in the Credit Agreement, and shall include any replacement or additional revolving swingline facility under the Credit Agreement that constitutes the primary swingline facility of the Note Parties.

 

“Synthetic Lease” means any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which lease or other arrangement is required or is permitted to be classified and accounted for as an operating lease under GAAP but which is intended by the parties thereto for tax, bankruptcy, regulatory, commercial law, real estate law and all other purposes as a financing arrangement.

 

“Technical Agent” means Deutsche Bank AG, New York Branch, in its capacity as technical agent pursuant to the Credit Agreement or any successor technical agent appointed pursuant to the provisions thereof.

 

“Test One Failure” shall mean, at any time, (i) the failure of the Company to deliver its quarterly or annual financial statements and accompanying certificates to the holders of the Notes within the time period and otherwise as required by Sections 7.1 and 7.2 or (ii) the existence of a Leverage Ratio (measured quarterly as of the end of each fiscal quarter) which is greater than 4.25 to 1.00.

 

B-26

 

“Test Two Failure” shall mean, at any time, the existence of a Leverage Ratio (measured quarterly as of the end of each fiscal quarter) which is greater than 4.50 to 1.00.

 

“Title Company” means Chicago Title Insurance Company or one or more other title insurance companies reasonably satisfactory to the Collateral Agent.

 

“Total Indebtedness” means, at any date, all Indebtedness of the Note Parties and their Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP; provided, that Total Indebtedness shall exclude (a) all Hedging Obligations not then due and owing, (b) any contingent reimbursement obligations (including obligations representing the aggregate amount then available for drawing under all Letters of Credit), and (c) the outstanding amount of Working Capital Revolving Loans and Swingline Loans owed to Working Capital Revolving Lenders; provided that the aggregate amount of Indebtedness excluded from Total Indebtedness pursuant to this clause (c) shall not exceed $1,100,000,000.

 

“Trademarks” shall have the meaning specified for such term in the definition of “Intellectual Property.”

 

“Trigger Event” shall mean the occurrence of a Test One Failure or Test Two Failure; provided, however, that, upon the occurrence of a Test One Failure or Test Two Failure, a Trigger Event shall be deemed to occur on the date upon which the Company delivers its quarterly or annual financial statements and accompanying certificates demonstrating the occurrence of a Test One Failure or Test Two Failure as required by Sections 7.1 and 7.2 or fails to deliver its quarterly or annual financial statements and accompanying certificates as required by Sections 7.1 and 7.2, as the case may be.

 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York.

 

“USA PATRIOT Act” means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

 

“Working Capital Revolving Lenders” shall have the meaning specified for such term in the Credit Agreement, and shall include the lenders providing any replacement or additional revolving credit facility under the Credit Agreement that constitutes the primary working capital facility of the Note Parties.

 

“Working Capital Revolving Loans” shall have the meaning specified for such term in the Credit Agreement, and shall include any replacement or additional revolving credit facility under the Credit Agreement that constitutes the primary working capital facility of the Note Parties.

 

B-27

 

[SCHEDULES]

 

 

 

[FORM OF NOTE]

 

NGL ENERGY PARTNERS LP

 

6.65% SENIOR SECURED NOTE DUE JUNE 19, 2022

 

	
No. [     ]
    	
 
    	
[Date]
    
	
$ [       ]
    	
 
    	
PPN 62913M A*8
    

 

 

FOR VALUE RECEIVED, the undersigned, NGL ENERGY PARTNERS LP (herein called the “Company”), a limited partnership organized and existing under the laws of the State of Delaware, hereby promises to pay to [            ], or registered assigns, the principal sum of [                     ] DOLLARS (or so much thereof as shall not have been prepaid) on June 19, 2022 (the “Maturity Date”), with interest (computed on the basis of a 360-day year of twelve 30 day months) (a) on the unpaid balance hereof at the rate of 6.65% per annum plus any additional amount as required pursuant to Section 8.9 of the below described Note Purchase Agreement from the date hereof, payable quarterly, on the 19th day of March, June, September and December in each year, commencing with the March, June, September and December next succeeding the date hereof, and on the Maturity Date, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment of interest and, during the continuance of an Event of Default, on such unpaid balance and on any overdue payment of any Make-Whole Amount, at a rate per annum from time to time equal to the greater of (i) 8.65% plus any additional amount as required pursuant to Section 8.9 of the below described Note Purchase Agreement or (ii) 2.00% over the rate of interest publicly announced by JPMorgan Chase Bank, N.A. from time to time in New York, New York as its “base” or “prime” rate, payable quarterly as aforesaid (or, at the option of the registered holder hereof, on demand).

 

Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at the principal office of JPMorgan Chase Bank, N.A. in New York, New York, or at such other place in the State of New York as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.

 

This Note is one of a series of Senior Secured Notes (herein called the “Notes”) issued pursuant to the Amended and Restated Note Purchase Agreement dated March 31, 2017 with an effective date as of December 31, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Note Purchase Agreement”), between the Company and the respective holders named therein and is entitled to the benefits thereof.  Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.

 

Exhibit 1

(to Amended and Restated Note Purchase Agreement)

 

 

This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

 

The Company will make required prepayments of principal on the dates and in the amounts specified in the Note Purchase Agreement.  This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.

 

This Note is guaranteed by the Guarantors pursuant to the Guaranty Agreement, and this Note is secured by the Security Documents.

 

If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.

 

This Note shall be construed and enforced in accordance with, and the rights of the Company and the holder of this Note shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

 

	
 
    	
NGL   ENERGY PARTNERS LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
[Title]
    

 

2

 

FORM OF OPINION OF SPECIAL COUNSEL

TO THE NOTE PARTIES

 

Matters To Be Covered in

Opinion of Special Counsel to the Note Parties

 

1.             Each Delaware Note Party being validly existing and in good standing in its jurisdiction of formation.

 

2.             The Company having requisite organizational power and authority to issue and sell the Notes and to execute, deliver and perform the Agreement, the Notes and each other Note Document to which it is a party.

 

3.             Each other Delaware Note Party having requisite organizational power and authority to execute, deliver and perform the Note Documents to which it is a party.

 

4.             Due authorization, execution and delivery of the Note Documents and such documents being legal, valid, binding and enforceable.

 

5.             Execution, delivery and performance of Note Documents not conflicting with charter documents, laws, rules or regulations, or other specified material agreements.

 

6.             All governmental and third party consents required to issue and sell the Notes and to execute, deliver and perform the Note Documents having been obtained.

 

7.             No litigation questioning validity of Note Documents.

 

8.             The Notes not requiring registration under the Securities Act of 1933, as amended; no need to qualify an indenture under the Trust Indenture Act of 1939, as amended.

 

8.             No violation of Regulations T, U or X of the Federal Reserve Board.

 

9.             No Note Party being an “investment company” under the Investment Company Act of 1940, as amended.

 

10.          The Security Documents creating valid security interests in that portion of the collateral in which a security interest can be created under the UCC.

 

11.          The filing of the financing statements perfecting the security interests described in paragraph 10 above insofar as such security interests may be perfected by filing.

 

The opinion shall be limited to matters governed by the federal laws of the United States of America and the laws of the States of New York and Delaware and shall expressly state that it is delivered at the request of the Company pursuant to Section 4.4(a) of the Note Agreement and may be relied upon by all current and subsequent holders of Notes and by Baker Botts L.L.P. for purposes of rendering their opinion under the Agreement.

 

Exhibit 4.4(b)

(to Amended and Restated Note Purchase Agreement)

 

 

FORM OF OPINION OF LOCAL COUNSEL

TO CERTAIN NOTE PARTIES

 

Matters To Be Covered in

Opinion of Local Counsel to certain Note Parties

 

1.             Applicable Note Party being validly existing and in good standing in its jurisdiction of formation (the “State”).

 

2.             Each other Note Party having requisite organizational power and authority to execute, deliver and perform the Note Documents to which it is a party.

 

3.             Due authorization, execution and delivery of the Note Documents to which applicable Note Party is a party.

 

4.             Execution, delivery and performance of the Note Documents to which the applicable Note Party is a party not conflicting with charter documents or laws, rules or regulations of the State.

 

5.             All governmental consents in the State required to execute, deliver and perform the Note Documents to which the applicable Note Party is a party having been obtained.

 

6.             The filing of the financing statements (or similar document) in the State perfecting the security interests granted under the Security Agreement insofar as such security interests may be perfected by filing.

 

The opinion shall be limited to matters governed by the laws of the State and shall expressly state that it is delivered at the request of the Company pursuant to Section 4.4(b) of the Note Agreement and may be relied upon by all current and subsequent holders of Notes and by Baker Botts L.L.P. for purposes of rendering their opinion under the Agreement.

 

2

 

Exhibit 5.20(a)

 

Form of Patent Security Agreement

 

(see attached)

 

 

Exhibit 5.20(a)

(to Amended and Restated Note Purchase Agreement)

 

 

Exhibit 5.20(b)

 

Form of Trademark Security Agreement

 

(see attached)

 

 

Exhibit 5.20(b)

(to Amended and Restated Note Purchase Agreement)

 

 

Exhibit 5.20(c)

 

Form of Copyright Security Agreement

 

(see attached)

 

 

Exhibit 5.20(c)

(to Amended and Restated Note Purchase Agreement)

 

 

Exhibit B-1

 

Form of Compliance Certificate

 

(see attached)

 

 

Exhibit B-1

(to Amended and Restated Note Purchase Agreement)

 

 

Exhibit B-2

 

Form of Guaranty Agreement

 

(see attached)

 

 

Exhibit B-6

(to Amended and Restated Note Purchase Agreement)

 

 

Exhibit B-3

 

Form of Intercreditor Agreement

 

(see attached)

 

 

Exhibit B-6

(to Amended and Restated Note Purchase Agreement)

 

 

Exhibit B-4

 

Form of Joinder Agreement

 

(see attached)

 

 

Exhibit B-6

(to Amended and Restated Note Purchase Agreement)

 

 

Exhibit B-5

 

Form of Mortgage

 

(see attached)

 

 

Exhibit B-6

(to Amended and Restated Note Purchase Agreement)

 

 

Exhibit B-6

 

Form of Security Agreement

 

(see attached)

 

 

Exhibit B-6

(to Amended and Restated Note Purchase Agreement)

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